Henderson daily dispatch., 1934-07-06
BY ROGER w. BABSON
Copyright, 1884, Publishers Finan-


period during the last decade troubles
me. Furthermore, none Of the re-
cent strike settlements is permanent.
Eventually, we will have further labor
troubles unless the root causes are
| removed.
LatOr Tie-UpS Narrowly
! AVertei
Three major s:rlKes so far this year
have been avoided only by last
minute efforts. When the automobile
situation reached an acute crisis last
March, the President himself had to
TO step in and prevent a monkey
wrench being thrown into the wheels
| OF recovery. After the strike call had
actually been issued in the textile in
dustry in May, the administration
succeeded in making a temporary
compromise. A shutdown of the steel
industry was recently averted but
only after some of the companies had
erected barbed wire fences and INSTALL
ed cots for strike-breakers repeat:
These serious disturbances have been
merely postponed unless the seat of
the trouble is removed.
The strikes which took place last
summer were healthy symbol of ris-
ing business activity But since that
period a new element has come into
the picture under the now-famous col
lective bargaining section of the NRA
(Sect1on 7A). Under this section,
labor unions, which had been slipping
badly, were given a new lease on life.
! Wherever the American Federation of
Labor had a toe-hold on an industry
before the NRA was enacted it has
since attempted to run up it's mem
bershlp and dominate that industry.
L do not doubt the sincerity of labor
leaders, but it is to the interest of
union heads to stir up agitation and to
swell their treasures with a fresh flow
of membership fees.
Major Strikes Unlikely
Some people are now growing ap-
prehensive over this spreading power
of the unions and feel that a real
showdown is inevitable. These peo-
pie are strongly represented in the
management of automobile and steel
industries. They undoubtedly believe
that it is better to have the issue def
initely settled now rather than to let
it drag on for years under unsaisfac-
tory stop-gap compromises. Mean
while, the administration has been
keeping keen eye on developments
Nothing would do more to upset the
recovery applicant and discredit the
administration than a widespread
strike in a major industry this spring
or summer. For this reason, I have
not been apprehensive at any time
over the possibilities of a .erious labor
tie-up
There are certain elements in the
picture, however, which will keep the
labor problem before the public eye
Labor leaders realize that the NRA
has given them the most valuable and
effective weapon that they have ever
had. While the American Federation
of Labor is the most powerful single
organization, it does not represent the
entire strength of organized labor
There are younger and more militant
groups outside the federation which
are hard to keep in check. The recent
steel negotiations are sTood illustra-
tion. Labor leaders themselves were
not sure steel workers would back a
decision to shut down. AL this means
that labor is sufficiently at odds with
itself so that a united front" on an
issue is practically impossible.
Company Unions A Blind"
Meanwhile, the company union is
under fire. Some employers are sus-
pected by both labor and NRA Off
cials because of their activities in
connection with company unions. 1t
has been charged that the company
union is being developed in defiance
of both the letter and spirit of Sec
tion IA of the NRA. It is claimed
that of the cases which have come
before the National Labor Board,
about three-fourths have been due to
refusal of employers to grant collec-
tive bargaining, to interference with
efforts of company unions to organize,
and to discrimination against union
members. Employers, therefore, as
well as workers are adding to cur
rent restlessness.
| What does this mean in the period
ahead? Anyone with half an eye can
see that the labor situation has only
been patched up. No basic problem
has been finally settled The real is
sue revolves around the question Of
control-not around the problem of
hours and wages. The present sea-
sonal let-down in business is prevent
ing labor from making any violent
demonstration right now. When busi-
ness begins to pick up again as fall
approaches, there may be another
furry of strike threats. But I be-
lieve the administration will continue
to keep it's hand on the throttle and
not be scalded by the steam Of
labor tie-up. t will continue to bridge
the period between now and the first
of the year with temporary compro-
misses.
Broad Labor Legislation
Then the President will lay before
the incoming Congress a comprehen-
sive labor program. This new legR-
lation will be designed to provide a
reasonable degree of job security to
workers and to subordinate the root
question of recognition and unioniza-
tin. If this can be done much of the
restlessness which both labor leaders
and reactionary employers are at
tempting to stir up will be avoided.
Such a program will call for appropria
tions of big funds, but believe that It