Evening star., 1942-11-26
Employers Make MosI
Pay-Raise Requests,
WLB Chairman Says
Seek to Hold Employees,
Davis Asserts in Forum
'ToIk With WolIing

1uVIS tASSSItS III OJOW
ToIk With WolIing
Most OF the requests made Of th'
War Labor Board concerning in
creases in wages and salaries undel
the new "stabilization program" hav'
come from employers who want t.
raise wages to hold employees o.
attract new workers, William II
Davis, WLB chairman, revealed II
a National Radio Forum discussion
arranged by The Star and broadcas
over WMAL and the Blue Networi
last night.
Mr.. Davis and L. Metcalfe Walling
administrator Of the Wage and Houl
and Public Contracts Divisions oi
the Labor Department, covered the
administrative phases of the sta
bilization program which is designed
to bring into balance the wages
people earn and the prices for things
they must buy.
The WLB, it was noted, will ex.
ercise control over all wages and
salaries up to 5000 year, with the
exception Of supervisory or profess
sional employees not represented by
recognized unions. The commits
sioner of internal revenue has juris-
diction oyer the adjustment Of all
other salaries, Mr.. Davis pointed out
viii Measure Requests.
Mr.. Waliing explained that ex-
ecutive order No $3.50, issued Octo-
Der 3, provides that the War Labor
Board shall not approve any in
creases in the rates prevailing on
September IS unless such increase
is necessary to correct maladjust-
ments or inequalities, to eliminate
standards of living, to correct
gross inequities, or to aid in the
effective prosecution Of the war"
Il assume. Mr.. Davis said Mr.
walling, that the board will meas
ure every request for an increase on
the basis of whether it is necessary
for the effective prosecution of the
war"
MIR. Davis said:
Certainly but most OF the re-
quests which we have been receiving
under that clause are requests from
employers who want to raise wages
or salaries In order to hold their
employees or to attract new workers. "
When the answer elected the COM
ment from Mr.. Walling that that
seems like a manpower problem,
Mr.. Davis said:
Eyes, the board thinks of it as a
manpower problem rather than q
wage problem. In its policy, the
board said 1t will not approve wage
increases for the purpose of inf1u-
encing or directing the flow of man
power" II
Mr.. Davis added:
IF, in a particular case. man
agement and labor, in Cooperation
with the War Manpower Commis-
sion and other Government agen-
cies, take concerted action to solve
a manpower need, the board will
consider a request in that case to
correct whatever inequalities or
gross inequities may then need cor
yection."
Walling Explains Procedure.
The procedure to be followed In
applying for approval of wage and
salary adjustments starts in Mr..
Wallings Office, it was explained,
and the administrator summarized
this procedure as follows:
/. Employers or employees who
wish to determine whether or not
1t is necessary to obtain the ap-
proval of the board onswage and
salary adjustments should inquire
Of the nearest Office of the Wage
and Hour Division of the Labor. De-
partment. There are II regional
branches and field offices.
2. If such approval is not neces-
sary, the division gives the en-
ployer this opinion in writing. If
approval is required, the division
states so.
Mr.. Walling pointed out that there
are certain conditions under which
wage and salary changes can be
made without approval.
Eight Employees or Less.
These were cited as follows:
/. Establishments employing eight
workers or less can make increases
without approval, except in the case
where one employer operates num-
ber of establishments, each of which
employs eight or fewer workers
2. An increase can be given with
out board approval If it is covered by
an existing wage agreement or es-
tablished wage rate schedule and if
1t is the result of individual promo
ton or reclaSSification.
8. If the increase is an individual
merit increase within established
rate ranges.
4. If the increase can be granted
under the operation of an estab-
lished plan of wage or salary in
creases based on length of service.
S. If the increase Is granted fol
Increased productivity under
piece work or incentive plan.
6. If the, increase results from the
operation of an apprentice OF
trainee system.
Bonuses Can Be Continued.
In answer to inquiries which thu
Wage and Hour Division is receiving
concerning the payment of bonuses
Mr.. Davis explained that a bonus
fee, gift, corpmission or other form
of compensation customarily paic
employees can be continued in the
future without approval by thu
board, with two provisos.
These provisos are:
/. II a bonus, say, Is a fixet
amount, the total amount paid dur.
ing the current bonus year must no.
exceed the total paid an employ,
for like work during the preceding
bonus year.
2. If bonus is computed on {
percentage, incentive or similal
basis, the rate and method of com.
putation cannot be changed durint
the current bonus year unless the,
yield no more than they did durinl
the preceding year.
It was explained that the board
oa,narol ordar M II ipfordad !.