Evening star., 1942-02-12
War Labor Board
Reduces DifferentiaI
In AIcoa Plant
Southern Workers Given
7-Cent Increase Instead
Of 18 to 20 Cents Asked
BY J. A. FOX.

In a decision narrowing the
wage differential between North
ern and Southern plants of the
Aluminium Co. of America, the
National War Labor Board to-
day declared that labor, espe-
cially workers in the high-paid
brackets, have no right to ex-
pect that they should receive
wage increases during this war
period that will enable them to
keep day for day pace with up
ward changes in the cost of liv-
ing"
The boards IA decision gave
workers in the South a 7-cent-an-
hour increase instead of the 18 to 20
cents demanded. 1t was viewed as
important because it, was the first
wage pronouncement by the board
which now has pending before it
demands by the C. I. o. Steel Work.
ers' Organizing Committee for ST.
a-day increase in Little Steel" The
c. I. o. United Automobile Workers
also is demanding a 81 daily in
crease from General Motors in the
negotiations which eventually may
come to the board for settlement.
At the same time, Price Administra-
tor Leon Henderson has warned the
board that he feared broad wage
advances would force prices up to
inflationary heights despite the new
ce-control law.
Union Asked Elimination.
In the Aluminium Co. case. the
c. I. o. Aluminium Workers of
America had demanded elimination
Of the -20-cent differential be-
tween Southern plants in Alcoa,
Tenn. and Badin, N. c., and those
in the North at Detroit, Edwegater,
N. j.. and New Kensington, Pa, and
a uniform wage for beginners of rs
cents an hour with a corresponding
revision of other rates which would
increase the pay roll $3,500,000 an
nually.
The three public members Of the
board, Chairman William H. Davis,
Wayne L. Morse and DR.. Frank P.
Graham, joined the four labor men,
bers of the board, Thomas Ken
nedy, George Meany. r. J. Thomas
and Robert Watt, in the majority
opinion on the differential which
granted the C. I. o. demands in
part. The four employer members
A. w. Hawkes., E. c. Mcmillan,
Roger D. Lapham and Richard r.
Dupree-lined up solidly against the
7-cent change and recommended
that the differential should not be
narrowed by more than 3 cents,
although they offered scent COM
promise.
The board in another issue split
7 to to award and cent increases
for night shifts at New Kensington.
DR.. Graham, Mr.. Taylor and Chair
man Davis and four industry men,
bers. George H. Mead. Mr.. Hawks,
Mr.. Mcmillan and Mr.. Lapham were
in the majority here Mr.. Morse,
Matthew Woll, Mr.. Kennedy, Mr..
Thomas and Mr.. Watt were in the
minority.
Wages Above Prevailing Rate.
The company, in opposing any
change in the differential. had con-
tended that it was paying wages
equal to or above the prevailing
rates In each community; said that
differences in the cost of living and
other factors justified the differen-
tials. and added that the wage rights
could not properly or justifiably be
cased on costs of production, profits
or selling prices.
The majority opinion. written by
Mr.. Morse, indicated clearly its be-
lief that North-South wage differ
entails ultimately should be wiped
out, but that 1t should be done a step
at time in the interest of sound
economics. The public members,
Mr.. Morse said, were impressed with
the fact that the Aluminium Co. of
America stands in a very good posi-
ton in the Alcoa and Badin areas
to set an example and take the lead
in the narrowing of the North
South wage differential.
1T is the opinion of the majority
of the board that the 7-cent figure
will not disturb unreasonably or det-
rimentally the economy Of the Alcoa
and Badin areas, but on the other
hand will prove to- be in the long
run a very sound wage policy for
the Aluminium Co. sof America and
the Southern area In which its
plants are located.,r
Unless some industry takes the
(see ALCOA,F Page A-6)