Evening star., 1943-09-28
Special Board Award,
Operating Rai|men
AZ Per Cent Raise


An emergency board has recon-
mended a raise of Az per cent In
the pay of more than 100000
operating employees of the Ma
tion's railroads, the White House
disclosed today. The proposed
increase applies to five unions
who had asked a 80 per cent in
crease.
The boards report said that AZ
per cent was the maximum that
could be given to the rail workers
under the Little Steer' formula,
limiting pay increases to Is per cent
above the level of January !. l94l.
The increase would amount to 81
cents on the basic day rate, or 4
cents an hour.
The cost to the carriers was es-
tirnated at S40,000,000 annually by
the Association of American Rail-
roads.
The board, appointed by Presi-
dent Roosevelt after the brother
hoods and railroad management
were unable to reach an agreement
by negotiation, divided two to one
on the issue. The dissident men,
Der, Frank Swacker, said the men
were entitled to 6a4 cents hourly or
Ia per cent under the Little Steel
formula
Vinson Must Apnroye.
The recommended scale is subject
to the approval of Sterilization Di-
rector Fred M Vinson, who earlier
turned down proposed award of
per cent for 100000 incorporating
railroad employees on the ground
that they have already received a
wage increase equivalent to that
provided under the Little Steel
formula.
ceiyed an increase early in 1912, but
the train and yard employees re-
ceived only approximately 105 per
cent, the board said, which would
permit them to get the additional
Az per cent and still conform to the
Presidents stabilization policy.
The increase would be retroactive
to April l, 1943 The wage negotia-
tions have been hanging fire for a
little more than a year.
TWO Sign Report.
The report was signed by Chair
man Walter P. Stacy, chief justice
of the Supreme Court of North
Carolina. and DR. l. l.. Sharfman of
the University of Michigan.
DR.. Sharfman headed the panel in
the incorporating employees case
whose recommendations were re-
jected by Mr. Vinson.
The report was submitted to Mr..
Roosevelt Saturday but was only
made public--in summary form
today. The board summed up its
views as follows:
1T is the opinion of the emer-
gency board that the employees in
volved in this dispute have made
out strong case for a wage increase
to correct gross inequities and to aid
in the effective prosecution of the
war.
In view, however. of the order of
the economic stabilization director
of June %, 1943, and his memo
randum opinion of June 80, 1943, in
the incorporating (unions) case
this board is compelled to conclude
that, there being no substandards
of living in the present dispute, the
operating employees may be granted
such increase only; as may be justi-
fed under the Little Steel formula,
Further Raise Justified.
'Since January, 1941, the train
and engine and the yard service en-
ployes, as a group, have received an
increase of approximately 105 per
cent on the basis of average
straight-time hourly earnings, as Of
that date of 800 cents. Hence, In
order to give effect to the full Is
per cent increase of the Little Steel
formula they are entitled to a fur
ther increase of Az per cent of the
base rate, which increase amounts
to cents an hour.
The board recommends, there
fore, that the employees involved in
this dispute receive an increase of
80 cents per minimum basic day, or
4 cents per hour, to become effec-
tive as of April l, 1943."
There was no estimate given as
to what this retroactive pay would
total
Swacker Dissents.
In mis- dissent, Mr.. Swacker said
he believed his associates on the
board had interpreted too narrowly
Director Wilson'S decision denying
the increase to. the non operating
brotherhoods.
He said the board was concluding
that it had no power to make rec
concentrations on wages except
under the Little Steel formula ano
that he regarded this as "a mis-
conception"
His view, he continued, is that thu
operating unions are subject to ar
inequity of at least 16 per cent il
their wage as compared with thost
OF non-railroad workmen despite
their increase of two years ago: tina
their productivity and hazard have
greatly increased and that theil
cost of living, particularly with re-
spect to the 'away-from- home
costs peculiar TO this industry, ha
increased from beyond the Littl
Steel formula" For that reason. h,
said, it would seem that at leas
71a per cent of this wage dis
crepancy could be recognized as
gross inequity" subject to correc
ton.
Conductors Union Head
I'm. a.