Evening star., 1942-10-23
WB Acts 10 Halt
Labor Piracy by Ban
On Higher Pay Offers
Policy Also Set Forth
To Meet Wage Rote
Problems in New Plants
BY the Associated Press

IVDISIUS III I\SW IOi1tS
BY the Associated Press.
Seeking to strengthen the bars
against labor piracy, the War
Labor Board has forbidden an
employer to hire workers for pay
higher than the established rate
for the job at his plant.
WLB ruled yesterday that hiring
an employe for more money than
was paid workers of similar skill
and productive ability in the plant
amounted to a wage increase within
the meaning Of President Roose-
velt's wage sterilization order and
would require approval of the board.
Established Rates.
The order does not necessarily
prevent an employe who has been
paid, for instance, ST an hour from
taking a similar job in another plant
for $1.l0 an hour, provided that
$l.l0 rate had already been estab-
lisned. But it prevents the en-
ployer of the second plant from
raising the $110 rate to lure new
employees without first getting WLB
approval.
In the same general order, No. 6,
the board also set forth a policy for
meeting the wage rate problems of
newly established plants where no
job classilcations had been pre-
viously established. In effect, it
provides that the wage ceiling in
such plants shall be the prevailing
rate for the area in which the plant
is located unless the board approves
higher rate.
At the same time the board issued
Interpretations of three of its pre-
vious general orders in an effort
to answer large number of in
Quiries.
General Order No. 3.
In general order No. 3, on October
I, the board tentatively approved
all wage increases put into effect
on or before October g." the date
OF President Roosevelt's order
stabilizing wages. In three interpre-
tacionS, the board decided that:
Il. Wage increases to be ap-
proved under the terms of general
order No. 3, must have been in
cluded in a written agreement en-
tered into on or before October 3
or have been communicated to the
employees by formal action on or
before that date. To be approved,
such increases must have been ap-
plicable to work done prior to Octo-
ber 3, though they need not have
been reflected in a payroll on or
before that date.
2. No increases resulting from
the award or decision of an arbi-
traitor or referee made after October
3 Is approved, under the terms of
general order No. 3, even though the
agreement to arbitrate was made
prior to that date.
"3. No change in wage rates. un-
less otherwise exempted, can be
made in the future without approval
of the board, even If such changes
are called for in collective bargain
ing agreements. Typical cases are
contracts calling for automatic ad-
justments tied to changes in the
cost of living"
Periodic Increase Cases.
Another typical case is the con-
tract for periodic wage increase,
such as three months or six months
after the date Of signing, regardless
r>f urto ~ i1,{x, fo ofN
is tied to it. Such increases cannot |
be put into effect without board ap-
proval.
In general order No. 4 the board |
exempted wage adjustments by en-
ployes of eight individuals or less. |
In two interpretations of this order
the board said:
Il. This exemption does not apply !
to employers who own or operate |
more than one plant or unit if the |
total number of employees in all |
these plants or units exceeds eight |
Chain stores are typical of the en-
ployers who are not exempted.
%. The exemption does not apply
to employers If the wages, hours, or
working conditions of their employees
have been established or negotiated
on an industry, association, area or
other similar basis, whether by mas
ter contract or by separate but SIM
liar or Identical contracts. If a
number of stores in city, for in
stance, all employing eight or less
persons, are covered by a master
contract with union, an individual
store could not make a wage adjust |