The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1938-09-08
MERIT RATING

his MERIT RATING
the major decision must be made in practically
ppr States in the immediate future Although pro-
iiaions for automatic merit rating have been writ
toh into 27 plans and provisions for adminstra-
- IN decision, guaranteed plans and exempt plans
naltten into others, such provisions did not seem
.ious until time for action approached. All such
uoans necessitate record-breaking, complicate ad-
of nistration and add to it's COSTS
'tiv The principle of merit rating is carried over
IeSm commercial insurance in which profits are
woe control. But the purpose of social security is
Urt to make profits but to provide security for
,1rkerS against those emergencies beyond the con-
psol of employers and workers. Neither an en-
pooyer nor an industry guarantee against the
ths and downs in the business cycle or the ups and
Lawns of an industry For example, the carriage
Sud wagon industry prominent and
urishing industry with reasonably predictable
r derS. Then came the period of Decline giving
Eay before the automotive vehicle, and those en-
uDyed in the industry had to find new employment
: t hateveg OF merit due to the industry for
clable employment in it's prime was completely
Ulped out in It's decline. If an industry does not
1rovide against inevitable decline change, it be-
sumes dependent in old age and the workers attach
-Dt to it become charges on wealth producing ac-
ayities of Society Merit rating is in last analysis
valy another attempt by industries to shift respon-
fability for payment for security of the workers.
vi Merit rating does not provide sufficient decrease
vB payments into the unemployment fund to
'unterbalance the reduction in payroll costs by
lying off employees as production may decline.
merit rating is proposed stimulus to regular
tfatlOn OF employment but it's most probable con-
rm1bution will be merely longer hours for the reg
p,ar work force to avoid spreading the work There
l. little that an employer can do about unempoy-
Ient SO to give him concessions for few en-
Uoyes receiving unemployment benefits, is to re-
bard what is only good luck. If merit rating is
be an accepted policy, wiser way of administer
lg it would be to increase the payments of un-
lAcky employers However, to attempt to use ,n-
Employment compensation to STABILIZE industry is
: W disregard its purpose 1t is concerned with OBJ
itctves quite alien to providing security for work
VS. denied jobs
"'4 So-called merit rating is established with ref
renee to the numbers of workers laid off by a firm
Ipon whom benefits paid. The firm may have
large turnover of workers employed so as to fall
o1ort of requirements for benefits. In addition the
Iflerential afforded by merit rating is not enough
p counterbalance the saving of labor costs through
hy-of, if orders do not warrant continuing the
tsual work force Merit rating does nothing to
assure greater security to unemployed workers
which is the purpose of unemployment compensa-
aon. 1t is in reality device to decrease employer
dayment rates and thus to decrease security for
11orkers.
i Merit rating is costly and cumbersome device
ihat complexities administrative records and adds
ieavily to administrative costs. 1t seeks to in
ivdualize participation in a great social purpose
those effectiveness depends upon having few, SIM
lie and general standards
"A >,
1t is high time we recognize the real purpose
Of merit rating and take steps to free our unem-
iloyment system from this provision.