Evening star., 1941-11-06
Rail Union Heads Meet
To Map Next Move in
Pay Raise Demands
Strike Threut Grows
As Leaders Refuse to
Back Boards Proposals

As Leaders Refuse to
Back Boards Proposals
The threat of a railroad strike
hung over the Nation today as the
leaders of organized railroad work
ers. disappointed over recommen-
dation for wage increases far short
Of their demands, called a confer
ence in Chicago to map their next
move-possibly the announcement
of a strike date.
Reporting at the White House
yesterday, the Presidents Emergency
Fact-Finding Board for settling the
dispute proposed temporary in
creases approximating s270,0OO, ,000-
much less than the figure set by
the unions, whose demands have
been estimated by the carriers to
entail expenditure of 5000, ,OOO, 600
annually. Chiefs of the five operat-
ing brotherhoods said the proposals
were most disappointing" and that
they could not recommend them to
the rank and file of union member
ship. The IA incorporating BROTH
erhoods still are to be heard from,
but like reaction from that quarter
is considered not unlikely. Under
the railroad mediation law, how
ever, no strike can be called for 80
days.
Increased Rail Rates.
Spokesmen for the carriers also
voiced disappointment at the rec
concentrations, committees of
Eastern Western and Southeastern
lines saying the burden would be
too great. Railroad bonds, however,
advanced on the stock market.
The recommendations, which in
cluded vacations for the 1000
members of the incorporating
unions, were advanced, the board
said, on the assumption that the
roads could obtain permission to
increase their freight and passen-
ger rates to meet the added ex-
pense. Average increases of about
5 per cent would cover the increased
cost, the board figured.
The operating unions, with $50 900
members, had asked wage increases
OF about 30 per cent from an esti-
mated present minimum of s506 a
day. The board recommended in
creases of 7l2 per cent.
The incorporating groups want
ed 30 to 40 cents an hour more
than the 38c to $1.21 an hour they
now receive. The board suggested
an additional cents an hour, or
an average increase of 1872 per cent
The board also proposed that the
10000 or more employees Of the
Railway Express Co. be granted in
creases of 71a cents an hour over
unannounced present scales.
Retroactive to September.
All wage recommendations as
proposed by the board would be
retroactive to September /, 1941,
and terminate automatically on De-
cember 81, 1912, unless an extension
was agreed on. This was suggested
the board said, because the many
uncertainties besetting any analysis
of the economy of this country for
the existing national emergency
make it unwise to recommend
changes in basic wage rates at this
time" except for certain minimum
rates which the board proposed.
1t was suggested that the wage
structure of the railroads be ex-
amined about December 81, 1912, in
light of existing economic condi-
tions" of the industry and the coun-
try
The board also recommended:
l. One-Week vacations, effective
January l, for the employe members
of the IA incorporating unions.
2. A permanent basic minimum
wage of 40 cents an hour for en-
ployes of short-line roads, and
permanent basic minimum wage of
Is cents an hour for employees Of
class A roads and the railway ex-
press agency.
8. That a dispute between the
unions and the roads over working
rules be resubmitted for further con-
sideration under the Railway Labor
Act.
Labor Deserves Pay Raise.
"The board is satisfied the re-
port said, that the wage increases
recommended are fair and reason
able, and that, if the financial con-
Gitions of the railroads do not make
1t possible for them to make suff]-
Cient profits on the basis of pres
ent traffic rates and still pay such
wage increases, then traffic rates
should be increased. The public
fpuld not be justified in expecting
Hilroad labor to continue to work
on the basis of its present wage
rates in light of the wage increase
trends in industry generally. the
rising cost of living, and the i'm
portance of the services performed
by railroad labor in this time OF
national emergency"
The five members of the board
presented their report in person to
the President. They are Chairman
Wayne L. Morse, dean Of law at
the University of Oregon; Thomas
r. Powell, Harvard law professor;
James C. Bonbright of Columbia
University, Joseph H. Willis Of the
Rockefeller Foundation, New York,
and Huston Thompson, Washing
ton attorney.
The board was named under the
anti-strike machinery of the Media
ton Act after the National Railway
Mediation Board had failed to ad-
lust the differences between the
roads and the unions. The workers
voted to strike if their demands
were not met.
Bock-to-Work Move