Evening star., 1936-07-28
WALSH-HEALYLAW
HELD PROTECTION
.S.CONTRACTS
Seen Help in Eliminating
SWeatShop Conditions in
Producing Supplies.
DISCRETION is GRANTED
TO SECRETARY OF LABOR
Regulations Designed to Safe.
guard Government Against
Increase in Prices.
BY WILL p. KENNEDY.

The Department of Labor expects
the Walsh-Healy law for regulation
of labor conditions on Government
contracts to make a start toward elm
mating sweatshop conditions in the
production of all supplies used by the
Government. Regulations being for
mulated by the department, however,
are designed to safeguard the Govern
ment from increased prices.
Because manufacturers everywhere
have been fearful that the law might
work adversely to those seeking Gov
ernment business, the Chamber Of
Commerce of the United States has
been making an intensive study of it.
After conferences with the Depart
ment Of Labor, chamber representa-
tives feel that the law will work to
better advantage than was at first
thought.
The law is not entirely satisfactory
to the Labor Department. which acted
in an advisory capacity when the bill
was under consideration. The big
achievement will be to wipe out the
abuses of substandard manufacturers
having an advantage in getting those
Government contracts where a broker
underbid a standard manufacturer
and then shopped around to get the
goods made by cheap labor.
Although this measure became law
June 80 it cannot become effective
as to any Government contract en-
tered into before September %.
Extensive Discretion Granted.
Extensive discretion is granted to
the Secretary of Labor, including the
authority to make regulations. The
tentative draft Of these is about COM
pleted and the various Government
agencies are now being canvassed SO
they may make suggestions for re-
vision or amendment prior to Sep
tember /.
The law provides that no male un-
der Is years of age and no female
under 18 years of age and no convict
is to be employed by the contractor in
the performance of the contract. No
employe may work in excess of eight
hours a day or 40 hours a week.
Wherever the Secretary of Labor per-
mits an increase in the maximum
hours stipulated in the contract, the
Secretary is to set rate of pay for
any overtime. This rate is not to be
less than 112 times the basic hourly
rate.
Even after the law becomes opera
| tive, the requirements as to compli-
ance with minimum wage rates are
to apply only to contracts in indus
tries for which the Secretary of Labor
has made a specific determination Of
the prevailing minimum wage. The
plan is to take up the industries one
at time, and to hold formal hearings.
The industries to be taken up first
are those which have shown the Wild
est deviation from the old N. r. A..
code standards.
Minimum Wage Specified.
The minimum wage provision speci-
fies that all persons employed on a
contract are to be paid not less than
the prevailing minimum wage for
persons employed on similar work.
or in the particular or similar indus
tries. This stipulation Is being con-
strued by labor officials to authorize
the Secretary to specify what wage
rate constitutes the lowest that can
be applied.
The new statute contains a number
| Of provisions which are considered
difficult of exact Interpretation. The
regulations may clarity these.
The act exempts purchases of such
material, "as may usually be bought
in the open market" 1t is understood
that this applies to all kinds of goods
ordinarily available for immediate sale
and requiring no further processing or
fabrication prior to delivery. Dairy,
nursery or live stock poducts, or agri-
culture or farm products for sale by
the oiginal producers also are exempt.
The act is limited to contracts ex-
ceeding $4,000. Although not ex-
pressly mentioned contracts for con-
struction are obviously excluded.