The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1939-11-23
Federation Seeks
Stable PdY Boosts
Permanent Wage Increases
Based on Smaller Labor
Costs Per Unit

Washington, ID. Cit is impera-
lively necessary that working men
and women in the United States re-
ceive their full share Of the rapidly
rising national income, but it is equal
~ necessary that wage increases
which determine that share must be
based upon smalled production unit
labor costs if the higher pay is to
become permanent.
This double declaration was the key
note expressed in the current issue
Of the Monthly Survey of Business
Of the American Federation of Labor"
in its feature article entitled Labor
Wants Permanent Gains"
Events Of the last two months are
Of particular interest to Labor for
several reasons" the Business Survey
said.
Thousands of JobIess Get Work
"The rise in production means hun
dreds Of thousands Of jobs in manu-
featuring and other industries. In
factories alone, 10000 went back to
work in August, 100000 in September,
and more than 100000 in October.
On railroads, in mines, in street trans
portation, and trade thousands more
will be needed. Although figures are
not yet available, it is not unreason-
able to estimate that about a million
and quarter have gone back to work
since August i. Growing payrolls are
already bringing important increases
in retail trade.
Good Outlook For Business
eve must recognize that the ex-
ceptional business increase this fall is
due chiefly to expectation Of large
orders from foreign countries in the
near future. Business firms have
built up their inventories, as they did
with disastrous results in 1887.
eve have no way of knowing what
the demand from abroad will be. If
/ beillgerents continue the war of wait
ing demands for heavy materials will
probably be very much below expec-
tations. We can only count surely on
our own home market, which depends
on the buying power Of American
wage earners.
ForecasterS are now expecting first
quarter 1910 business to be 10 per
cent below the last quarter of 1889.
For unless we have very large orders
from abroad we cannot maintain our
heavy industries at present produc-
ton. The buyers panic has subsidized
and domestic orders are decreasing.
Labor Must Secure Full Share Of
Large National Income
| Rising production means decreas-
| ing unit labor costs, enabling indus
try to pay higher wages. 1t is essen
tial that labor receive its foil share
OF the increasing national income if
recovery is TO be maintained. Wage
increases must, however, be based on
decreased labor costs per unit of pro-
duction, for labor wants permanent
gains. No general rule can be laid
down for the amount of wage increase
which will give labor its just share.
This must be determined by examin-
ing the operating records of each
company.
Earnings Of leading industrial cor
porations for the full year 1899 are
expected to be 20 per cent above 1898
and close to 1856 and 1897 levels.
ESPECIALLY in the following indus
tries, earnings may be expected to
improve: Aircraft, chemicals, ma
chinery, metal fabricating, non-fer-
rous metals, petroleum, railroad equip
mcnt, shipbuilding, steel, sugar, auto
mobiles, automobile parts, paper, rail
roads, retail. trade and textiles.
Unions Should Seek Sustained Wage
Increases
ONIONS should plan for wage in
| creases which can be sustained over
the long term by a gradual and con-
tlnuous industrial rise.
"The increase in basic minimum
wages which has just gone into effect
under the Fair Labor Standards Act,
is most timely and necessary. 1t is
estimated that 100000 wage earners
were due to receive increases, and
2,3S2,CO0 to receive a 42 hour week.
"The minimum wage for all COM
panies engaged in interstate com
nerce was raised from % to 80 cents
per hour and hours reduced from ii
to y on October q, 1899"