The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-27
LABOR INCOME
PROBLEM FACES
ADMINISTRATION
Reasonable Annual Pay as
Well as Proper Hourly
Wages Will Be Sought.
This is the ninth of several stories on
Congressional problems.

| Congressional problems.
BIZ United Press
WASHINGTON, Dec. 27.-New
Deal brain truSters are baffled by
the problem of providing for work.
erS a proper annual income as dis
tinguished from satisfactory hourly
wage scales.
There has been no indication that
the Administration is ready with
any plan to deal with that ques-
ton. Yet it is one of the frequently
discussed issues when officials con-
sid9r privately the problems of re-
&C very.
The question arises in its most
aggravated form in the housing in
dustry which lags far behind most
others in activity and employment.
Some Government officials and in
dutrial leaders generally are of the
opinion that the high hourly wage
rates prevailing for labor in the con-
struction industry represent an OBJ
stable to revived building.
Hour Reduction Urged
1t is argued that the purposes of
Federal economy and industrial re-
covery would be served if labor
could be persuaded to reduce it's
hourly scale in return for some as
surance that over a 12-month period
the income for each worker would
be greater by reason of increased
employment.
It is obvious enough that a skilled
worker employed for 40 weeks of 30
hours each at 81 an hour would earn
$1,000 while employment for 20 weeks
at $3.50 an hour brings him only
S90i 1t is possible that reduction
of hourly wage scales would so slim
ulate construction that the supply
of jobs would double.
But when labor is approached on
such programs the first question
asked in behalf of the workers is
who is going to guarantee increased
employment to compensate for re-
duction of union wage scales.
Neither Mr.. Roosevelt nor his aides
has devised any answer to that
question.
PWA Administrator Harold Ickes
recently spoke of the problem, but
offered no solution.
There are great possibilities" he
said, lin being able to offer a larger
annual income with a smaller hour
ly wage"
List Prevailing Ratios
Mr.. IckeS is familiar with the wage
problem. The National Industrial
Recovery Act which created PWA
provided for wage scales which, in
effect, give labor where it is well
organized the rates established for
union labor. The act stipulated a
30-hour week on construction jobs
financed by the Government.
These wage scales are expected to
provide a reasonable standard of
living.
The country was divided into
three zones for which PWA hourly
rates were established for skilled
and unskilled labor, as follows:
Southern zone, skilled 81, unskiled
40 cents; central zone, skilled $110,
unskilled As cents; northern zone,
skilled $120, unskilled so cents.
The United Press was informed
at PWA that in areas where labor
had obtained acceptance of wage
scales in excess of the foregoing,
the prevailing rates were paid.
1t would be possible for the Ad-
ministration to take the initiative
in reducing hourly rates by some
limitation on wage scales to be
paid on jobs financed in the future
with Federal funds. But organized
labor would find substantial con-
greSsional support in opposition to
any plan which did not guarantee
a larger annual income under any
downward revision of hourly wage
rates.