Evening star., 1942-06-20
BY ]. A. FOX.

changes in the District unem-
ployment compensation law.
BY ]. A. FOX.
The District of Columbia unem-
ployment compensation law will be
among the three or four best in the
country, if not actually the best,
from the standpoint of labor, under
the amendments proposed by Rep
resentative McGehee of Mississippi,
in the opinion OF those concerned
with its administration.
Mr.. McGehee's bill, which he
hopes to report to the full District
Committee from a judiciary sub
committee Monday would enable a
workman thrown into involuntary
idleneSs to draw a $40 weekly bene-
fit for 20 weeks, as compared to Sl8
for 10 weeks now payable. 1t would
also cut from two weeks to one the
so-called waiting period"-that is,
the period of inactivity which must
expire before a workman becomes
eligible for compensation. The
measure leaves unchanged the pres,
ent minimum benefit of $6 weekly
the average payment here is $12.83-
nor does it affect the dependency al
lowance of So weekly.
Would Cut Payroll Tax.
The liberalization of benefits is
one of the two principal objectives
of the McGehee bill, which also
would cut the payroll tax paid by
employers to finance the unemploy-
ment compensation grants, the rate
proposed being 05 per cent as COM
pared to the present rate of 2.7.
With the reserve for benefits now
exceeding s28,0O0,000, and annual
benefits amounting to but a fraction
of that figure, Mr.. McGehee is seek
ing to "unfreeze" this reserve, which
long has been attacked as constitut-
ing an uneconomic drain on the re-
sources of commercial and industrial
concerns here. The lowered tax rate,
over a period of years, would permit
some of the reserve to be absorbed.
The Central Labor Union, repre-
sentins thousands OF workers in
American Federation of Labor
unions, is strongly in favor OF the
legislation.
I'VE think the surplus should be
decreased, and believe also that the
employers are entitled to a reduc-
ton in the tax" Fred S. Walker,
CLU spokesman says. Mr.. walker
appeared in behalf of the legisla-
ton several months ago when hear
ings were held by the subcommittee
in charge of the bill, as did John
Locher, secretary Of the AFL Build
ing Trades Council for the District,
who is the employe representative
on the District Unemployment Com
pensation Board.
Opposite View Taken.
A directly opposite view Is taken
by Sidney R. Katz, secretary treas
urer of the CIO Maryland and Dis
trict of Columbia Industrial Union
Council, who says that "the Nc
Gehee bill makes no significant i'm
provements in the unemployment
compensation law insofar as ben
efits are concerned except that 1t
benefits those whom the law was
never intended to benefit directly,
namely District Of Columbia en-
ployers."
More adequate benefits and exten-
sion of coverage to classes now ex-
empted are urged by Mr.. Katz, who
says also that Congress "can allo-
cate by legislation part of this re-
serve to a United States pool from
which the millions Of industrial
workers now employed in war-crest-
ed industries can derive unemploy-
ment benefits following the war"
A report from the Social Security
Board on the status OF unemploy-
ment compensation laws shows the
favorable position that would be oc-
cupied by the local statute with the
proposed amendments
The Territory of Hawaii and Mich
igan and Utah are the only places
where the benefit rate is at the
s2O-for-20-weeks level now. The
coverage in those jurisdictions Is not,
however, as broad as that here,
where concerns having but one en-
ploye are subject to the law. with
out regard to the length Of time the
employe is in service. Elsewhere
time limit is applied. Minimum
payments also are lower.
Would Strengthen Appeals.
The McGehee bill would strength
en- the appellate procedure available
to workmen who have been denied
benefits because their idleness is due
to a labor dispute. While the law
is silent on this point, the Unem-
ployment Compensation Board has
followed the practice of giving hear
ings if employees contend that their
being idle is due to strikes with
which they have no connection. Un-
der the new bill this hearing becomes
q matter of right.
John A. Marshall, executive Of
ficer of the Unemployment Com
pensation Board, one OF the pr1n-
cipal advocates of the McGehee bill,
SAYS it would make the District law
rank with the most advanced in the
unemployment compensation sys-
tenn, if it did not top the list. The
law was amended two years ago to
provide added benefits for labor.