Evening star., 1933-06-22
RAILROADS AGREE
. TO DELAY PAY CUT
Managers and Labor Heads
Heed Eastman's Plea to
Aid in Recovery.
BY the Associated Press.

BY the Associated Press.
Railroads have needed q plea of the
administration to postpone until June
80, 1884, proposed new 1872 per cent
pay cut for their workers.
AS result, organized railroad labor
until the middle Of next year will con-
tinue to work on the present schedule
the old basic wage, less 10 per cent.
BY that time. Government and rail-
roads both hope all need for pay cuts
will be passed.
This agreement between railroad
managers and labor executives was the
first big achievement Of Joseph B. East
man since he became co-ordnator of
transportation. When he 'unofficially''
stepped in, the situation was this:
Rail labor, under an agreement
reached last December and operative
until next November !, had been work. !
ing for wages fixed in January. 1882,
less 10 per cent Railroads decided an
additional 1917 per cent cut should be
tween employe and employer were held |
The whole thing was threat to unin-
terrupted transportation service.
Then Eastman met the railroad man
ayers and labor executives. He asked
them to delay action until the effect of
the administrations recovery program
could be seen His proposal was ac- |
oepted after two days of conferences.
Work With Administration.
That agreement, Eastman said, was
"reached because both the railroads and /
the employees wish to do nothing which |
would in any way embarrass or
threaten the present policy OF the ad-
ministration.'
They realize" he added, that the |
Government has now embarked upon a
wholly new policy designed to promote |
business and industrial activity and to |
further the general welfare.
The concord must yet be ratified by |
Individual unions belonging to the Rail |
way Labor Executives Association, but |
that is considered just formality.
Notice had been given by the rail- |
roads on June Is of 22l2 per cent !
wage reduction on November l. This is !
Cancelled by yesterdays agreement. which !
continues the 10 per cent reduction |
effective for the last 18 months. The |
agreement, which carries out to the let |
ter the request Of the administration, |
followed two days of conferences be- |
tween Eastman and the Conference |
Committee of managers OF the rail-
roads and the Railway Labor Executives |
Association.
End Comes Suddenly.
The end of the fight came suddenly |
after the co-ordinator had announced !
that the situation would be allowed to |
simmer for while" He spoke at the |
close Of a conference with the union |
chiefs which followed protracted dis
cussion with the railroad managers.
A. F. Whitney, spokesman for labor; |
w. H. Thiehoff. chairman Of the Man.
ayers Committee, and Kenneth Bur-
CESS, attorney for the managers. were
hurriedly called into conference last |
night, and the agreement was drawn |
and signed shortly before 8 O'Clock.
Eastman made it plain that the view |
of neither side as to what wages should |
be had been changed, but that their |
differences would be set aside for the |
period settled upon.
The agreement stood as the first !
effort of Eastman as q mediator in
railroad problems, and although under
taken unoficially and outside his ca
pacity as co-ordinator, it was considered
a victory for the administration in it's
fight to keep the industrial situation
on an amicable foundation pending the
outcome of the business recovery moves.
Eastman's announcement follows:
The railroad managers and the rail-
road labor executives have entered into
an agreement under which the arrange
ment by which 10 per cent is being
deducted from the pay checks of en-
ployes will be extended from October
81, 1888. until June 80. 1884, and under |
which the date on which either party |
can submit notice in accordance with ,
the provisions Of the railway labor act |
indicating desire to change the basic |
rates Of pay will be extended from |
June Is, 1888, to February Is, 1884.
Pay Cut Plan Cancelled.
Under this agreement the railroads !
will surrender for a period Of eight |
months their right to seek further |
reduction in employees compensation |
and the employees will surrender for an !
equal period Of time their opportunity
to secure an elimination Of the present /
10 per cent reduction.
The notice given by the railroads on
June IS Of an intention 10 seek 22l2
per cent reduction in the basic rates OF
pay will be Cancelled
This agreement has been reached
because both the railroads and the en-
ployes wish to do nothing which would
in any way embarrass or threaten the
present policy of the administration.
They realize that the Government
has now embarked upon a wholly new
policy designed to promote business and
industrial activity and 10 further the
general welfare
They appreciate that until the re-
suits of this policy can be more clearly
determined it will be difficult to deal
wisely with this wage controversy and
that the active prosecution of such a
controversy at the present time might
have most disturbing and unsettling
effect
Neither side relinquishes in any way
Its views as TO what the wages should
be. but they have agreed TO a post
ponement Of the controversy out Of
Difference to what they believe to be
the desire and policy OF the administra-
tion and in the general public interest
This agreement has been reached
voluntarily in a spirit Of cooperation
and I desire TO express my very whole
hearted appreciation Of the attitude Of
both parties. They have been reason
able and amicable and they merit the
commendation OF the country"