Evening star., 1933-09-09
n. R. A. LABOR ROW
MAY GUST ADVISERS
Crisis Precipitated by John
sons Ban on "Merit"
Clause.
BY DAVID LAWRENCE,

The Industrial Advisory Board of the
N. r. A. has come to the climax Of its
labors.
Unless Gen. Hugh S. johnson and
the Labor Advisory Board can develop
a satisfactory formula or proclaim
labor policy satisfactory to all the in
terests concerned. the industrial leaders
here have q feeling that there is moth
ing left for them to do but resign.
Talk of a resignation Of the entire
Industrial Advisory Board has persisted
ever since Dudley Gates, assistant ad-
ministrator for industry, retired after
q disagreement on the fundamentals Of
labor policy.
The crisis has been precipitated
again by the announcement by Gen.
johnson that he would not permit the
inclusion in any more codes OF the
same paragraph which was inserted IN
the automobile industry's code-namely.
the right of employers to hire or fire
employees or to advance them on the
basis of merit and efficiency.
The Industrial Advisory Board Ad-
dressed to Gen. johnson last week .
letter setting forth its views and asking
him for q statement on the points IN
controversy. The general did not make
q written reply.
Resignation Postponed.
The industrial leaders had a private
meeting of their own group and sug-
gestions were made that the board re-
81 4 in q body. It was felt that such q
course, however, might be mtsunder.
stood, and it was finally decided that
A. Id %n 10 n nndaQVnT 0YlG9
more to reach an agreement. Accord
ingly, a tentative draft Of labor policy
was drawn to be signed Jointly by the
Industrial and Labor Advisory Boards,
and a meeting held Thursday night at
which the whole subject was discussed.
A subcommittee Of both boards was
finally appointed to try its hand AT
phrasing the declaration.
It was the self-same pfoolem 01
words which wrecked President Wiison
capital and labor conference IN 1919,
and there Are evidences that unless
some common sense is attained oy the
partisans, who have magnmeo the con-
troyersy out of all proportion TO It's
PRACTICAL importance, there will be dis
agreement and confusion throughout
industry and an increase in strikes.
Groups In Dissention.
As matters rest today, the leadership
has irifted out of the hands Of the
Government entirely. No effort Is be-
ing made to make both capital and labor
toe the mark.
The groups themselves are pulling and
hauling. Thus there are about 12S
codes ON file in which the same clause
granted to the automobile industry has
been copied word for word. II the
Government refuses to grant other IN
dustries what it has given the automo-
of having granted q special privilege.
And under the Roosevelt banner the
day of special privilege IS over.
So the N. r. A. cannot pass up the
issue and forget about 1t. Something
has to be done to placate all the indus
tries which are demanding the same
rights as the automobile industry. The
labor crowd, which has dominated the
situation to date, had put Gen. johnson
In an awkward spot by threats Of pub
lie fight against his action when he
permitted the merit clause to be put
into the automobile code. He righted
himself with the labor group by say
ing "Never again"
Mistake Confessed.
He confessed 1t was q mistake Of
policy and said the declaration In the
auto code was meaningless anyhow. !,
But the industrial leaders think It Is
far from meaningless. As . matter Of
fact, both sides are probably overcon-
cerned. The labor group Is unduly ap-
prehensive about the famous section Z
and its collective bargaining clause.
The common law, Of course, protects
anybody In his negotiations with any
body else against interference In max
ing contracts. Employers are equally
entitled to hire or fire whomever they
Continued on Page 2, Column -