Evening star., 1940-03-01
{. |. 0. Unit Feels
JobIess Act Changes
Stop Too Short
Kotz Says D. c. System
Would Still Be Less
Liberal Than Stutes
BY DON S. WARREN.

Declarations that the pending Nc
Gehee bill to lberalize the Districts
Unemployment Compensation Act
would leave the system less liberal
than it should be, or than the pro-
visions of the laws of some States,
we're made today by spokesman
for the District Industrial Union
Council of the c. I. o.
In lengthy analysis of the
McGehee measure, sent to Commits
sioner Melvin c. Hazen, chairman
of the Unemployment Compensa-
ton Board, Sidney R. Katz, secre-
tary-treasurer of the council, also
took issue with some of the pro-
posed changes in the bill suggested
by the Board of Trade and other
business groups.
Insisting that the District does
not yet have "real' system of
unemployment compensation, Mr..
KatZ wrote:
"As you probably know. we are
In favor of the reduction in the
tax rate to 2.7 per cent, if this is
to be accompanied by a liberalYa-
ton of the unemployment compen-
sation benefits. A mere wholesale
reduction in rates, as would be pro-
vided for in the plan submitted by
the Board of Trade and their sup
porters, might hinder for long
time to come any further liberal
tzation of the District law"
/: Agreed to Raising Maximum.
Board of Trade officials had
agreed to the proposals for raising
the maximum benefit payment from
SIS to $40 and to make the maxi
mum duration 20 weeks as SUBJ
stitute for the present provisions
which provide for basic maximum
of is weeks, or for 26 weeks if the
applicant has worked over period
of five years.
Mr.. Katz said his group considered
as sound" the section of the Nc
Gehee bill which calls for further
study of the employer experience
rating system, under which lower
pay roll tax rates may be earned by
employers accordingly as they main
tain steady employment for their
workers.
Business groups are seeking to
have perfected rating plan placed
in operation here next year, fear
ing that mere requirement for
further study would mean the plan
would be laid aside The laws of
80 States now provide for such sys-
TENS and in four States they have
gone into effect.
Arguments Against Bill.
In his arguments that the Nc
Gehee bill was not liberal enough,
Mr. Katz wrote Commissioner
Hazen:
l. That to become qualified for
joblesS insurance a person must
have earned $3.50 in the past year,
whereas the present law requires
work during 13 weeks without re-
gard to the size of the earnings. He
held the new plan would be less lib
eral.
2. That while the bill calls for a
maximum benefit payment of $40
instead of SIS, in some respects this
& would be less liberal because the
new plan would eliminate any in
crease in payments because the ap-
plicant had dependents, as allowed
under the present law.
3 That the new bill reduces the
duration of benefit payments from
a present maximum of 26 weeks
to 20.
4. That the proposal to raise the
minimum from nothing to S., should
be made at least 81. He reported
that five States have a 81 mini
mum and three others still higher
S. That the McGehee bill provides
for disqualification in the event the
worker participates in a labor dis
pute. There is no basis for any
belief that worker will go out on
strike and remain on strike to COL
lect unemployment compensation
benefits" he said.
6. That the waiting period should
be reduced to mandatory one
week. rather than leaving it to the
discretion of the board.
Ml. Adth dlSO uISeQ PROVISION
for an advisory board, and sug-
gested that the membership of the
D. U. c. Board be enlarged to pro-
vide for two labor and two employer
representatives, instead of the pres
ent one each.
He also suggested the board be
directed to study means of providing
a special set of benefits for do
mestic workers, reporting there are
more than 10000 here. They are
not covered" in the present law. /