Evening star., 1943-12-03
AFL 10 Fight Postwar
Cuts in Basic Wages,
Green Tells Senators

VCCu ICIIJ JCIloIVI9
President William Green of the
American Federation of Labor
served notice on the Truman Com
mittee today that labor will resist
any attempts to reduce basic hourly
pay rates after the war.
Contending that pay rates have
been frozen, he said workers have
had to depend on overtime pay from
longer hours to meet increased liv-
ing costs, adding that labor will en-
deayor ito restore equity by insist
ing that peacetime hours standards
shall be established without reduc-
tions in earnings" He explained
later that he meant hourly earnings.
Mr.. Green said the adjustment
of wages to absorb increased costs
of living has been far from auto
matte, as the report seems to i'm
ply" referring to the Senate COM
mittee's recent report on postwar
conversion problems.
Says Pact Was Not Kept.
"Quite the contrary" Mr.. Green
continued, labor made no-strike
pledge to the President and accept
ed membership responsibility in a
tri-partite board to stabilize wages
But the administrators part of
that agreement has not been kept
The National War Labor Board was
deprived Of its status and authority
and wages have been frozen The
autocratic veto power of the director
of economic stabilization was then
extended to other agencies deter
mining wages.
Workers have relied upon work
ing long hours to get income to meet
increased living costs While work
ers are denied the right to increase
wage rates to accord with increased
productivity and employers capacity
to pay, We shall endeavor to restore
equity oy insisting that time
hours standards shall be estab-
lished without reductions in earn
ings."
Contending that high wage rates
do not necessarily mean high labor
costs, Mr.. Green said the committee
tell into the same error that many
business people do in its emphasis
in stating that the cost of labor
constitutes large portion OF the
costs of production.
Comments on Realism.
Commenting on that part CT the
report which urged labor to be
realistic" about wage adjustments
after the war. Mr.. Green construed
the word realistic to mean down.
ward wage revisions.
rs such revision economically ad-
visable?" he asked. If industry
adopts such a plan on a Nation
wide scale, it will be cutting off its
own nose. An example will illus
trate this point.
In manufacturing when the work
week is reduced from 48 to 40 hours
and when the number of war work
ers is reduced by what will undoubt-
.edly be approximately about one
third from the war peak, these fac
tors would reduce the annual take
.home-pay to about one-half of the
workers income at the time of wal
peak, if no counteraction is taken
Thus, If the annual payroll. which
is really the market for consumer
goods, is around 10000. 900 900 a.
war peak. the market will be reduced
to around $4,000 100000 per annun
after the war. Would not industry
prefer to have a market of $40 .OOO.-
100000 to compete for rather than
one-half that size?"
Top Policy Council.
Mr.. Green recommended creation
Of a top policy council on postwar
adjustment. made up Of spokesmen
for management. labor. farmers and
the two branches of Congress.
He said labor does not want a repe
tltion of what occurred after the
last war. when Government stock
piles were held off the market. thus
creating an artificial scarcity. with
resultant imitation, Nor do we want
tlle reverse procedure dumping OF
property on the market, thus pre-
venting speedy conversion and re-
covery OF industry and mass un-
employment"
The labor leader suggested that
WPB would be admirably adapted
to guiding reconversion. subject tc
the supervision of the proposed tor
policy council, and revision of exist
ing industry committees to give
labor adequate representation.
Mr.. Green indorsed WPB Chair.
man Donald NJ. Nelson as the mar
most fitted to guide the postwar re.
conversion program.
Because of his valuable trainins
and experience" Mr.. Green said
Mr.. Nelson is especially we'll equip
ped for this job. know of no MAJ
who has rendered a more valuable
service during the war"