Evening star., 1933-08-06
RECOVERY FINANCE
USING SURPRISES
Organized Labor Facing as
Big Problem as Industry
in Recovery Set-Up.
BY DAVID LAWRENCE.


Tales of how business and industry
are meeting the supreme test Of the
blanket code-how so finance it-are
coming in here in the same undramatic
and unspectacular fashion that char
acteriZed employer cooperation during
the war.
One company called directors meet
ing. calculated the cost of complying
with the blanket agreement at 100000
a year, took cogniZance in the minutes
of the fact that there was an operating
deficit, but voted unanimously, never
theless, to increase the pay roll expense
to conform to the requirements OF
minimum wages and shorter hours.
In the instance cited the money came
out of surplus. The stockholders have
not had any dividends during the past
year and may not get any this year, but
the directors felt the chances of ac-
celebrating a return to dividends were
immeasurably aided by going along with
the national recovery plan than by
ignoring it.
Case After Case Reported.
Case after case is being reported in
which the increases run anywhere from
$4,000 to S5000O0 a year Much of
but was cut down when the def1ation
process started two years ago. Not a
little of the increased purchasing power
is being created in the white-collar
groups Thus banks and business Offices
which have not had much of any syS-
tenn about the relationship of office
hours to rates of pay for their help,
ranging all the way from charwomen TO
Office boys and stenographerS have COM
piled with the requirements in a way
that is likely to mean permanent bet
termert of the condition of those en-
ployeS. And the interesting thing Is
that where this equalization has oc-
CURED there is an ungrudging attitude
toward those who in the past should
have received better treatment but who
have been more or less neglected. For
few companies have well developed per-
sonnel systems.
1t is quite possible that union leaders
will seek to take advantage of the sit
uation to organize the unorganized and
assume credit for the improvement II
the pay envelope, but, while it is human
nature to join things that lead to better
pay, it is often difficult for the unions
to hold members on dues-paying basis
when the advantages have been at
tanned.
Thus when the codes are in opera
tion in individual businesses and indus
tries, the unions will be just as much
under the Jurisdiction of the Govern
ment as the employers. Both will have
signed contracts, the violation of which
becomes a matter of grave compllca-
tions. If, as is currently believed here,
the codes are the beginning of new
sort of constitutional government IN
industry, then the value Of continued
dues-paying will be something the union
organizer may have a hard time i'm
pressing on the one-time members.
Statistics show that during war time
the labor unions increased their men,
bership to the highest point in their
history. but in the decade following the
membership rolls declined. The de-
preston has seen the desertion by tens
OF thousands who could not keep up
their dues
Unquestionably. however. the trade
unions are going to acquire thousands
of new members as a result of the
recognition that has been given the idea
of collective bargaining and group rep
resentation.
EmpIoye Councils Active Again.
A quiet but impressive competition IS
going on between the company union or
employe representation on company
cOuQClS ana UIle general ldDOI uilIOli
affiliated with the American Federation
of Labor In many instances these erl-
ploye councils, which were once or
ganized and then remained dormant for
many years, are being revived and i'm
provements made so as to insure greater
satisfaction to the employees and prevent
their turning to outside unions.
AS the outside organizers come into
the businesses which have hitherto
known no unionization, the employers
are getting busy with employe group
plans. The Government says it IS
legitimate for the workers to join any
organizations "of their own choosing"
and there must be no coercion from
employer or outside unions or union
members upon their fellow workmen.
This is a difficult job to police, and the
upshot will be that the employees will
accept the plan that seems to afford
them most assurance of continued good
pay. We shall. see quite number of
revised employe representation or COM
pany union plans in the next few
months, with attractive features OF un-
employment insurance or reserves
dangled as a bait to those who agree
to cast their lot with the arrangements
they have Loyalty served for years.
(Copyripht 1o33)