Evening star., 1943-05-13

cations necessary for the mainte-
nance of productive efficiency.
Veto Power Provided.
2. AL wage adjustments made by
the board which may furnish the
basis either to increase price ceilings
or to resist otherwise justifiable re-
ductions in price ceilings, or if no
price ceilings are involved which
may increase the production costs
above the level prevailing in COM
parable plants or establishments,
shall become effective only If also
approved by the economic stabili-
zation director. The board shall CO.
operate with the Office of Price Ad-
ministration or such other agency
as the economic stabilization direc-
tor may designate with a view to
supplying the economic stablization
director with the data necessary to
judge the effect of any proposed
wage adjustment on price ceilings
and the levels of production costs.
Summarizing the directive, Mr..
Byrnes said that it
(a) Reaffirms the little steel for
mula;
Co Makes clear the authority of
the board to make wage adjust
ments under the authority contained
in the order provided such adjust
ments are within the existing price
structure and within existing levels
OF production costs;
Co Makes clear that any wage
adjustments which may furnish the
basis either to increase price cell
lngs or increase production costs
cannot become effective until ap-
proved by the director.
Considered in Conferences.
The directive was formulated and
issued after series of conferences
between members of the War Labor
Board and Director Byrnes as to the
Interpretation of the Presidents
order and the policies to be pursued
in applying it.
Immediately after the Presidents
order was issued, Director Byrnes
invited the board to lay before him,
as soon as they had sufficient expert
ence under the new order, any situ-
ations which might necessitate clari-
f1cation through policy directives.
The members OF the board dis
cussed with the director the going
wage data which the board for some
time had been engaged in gathering
which in the opinion of the board
would furnish definite and objec-
tive guide in keeping wage rate ad-
justments from exceeding the going
rates now prevailing for recognized
categories of employment in the
various labor markets.
In issuing the general policy di-
rective, Director Byrnes states:
The directive which I have issued
today Is intended to clear up Ger
tain questions which have arisen
with respect to the Interpretation
Of Executive Order No. 1923 and the
authority of the National War Labor
Board hereunder.
Consideration Restricted.
l.. The directive makes clear that
alleged maladjustments between the
cost OF living and existing wage
schedules will be considered by the
board only to the extent necessary
to eliminate substandard conditions
OF living or to determine wage ad-
justments within the Is per cent
limit Of the little steel formula.
2. The directive makes clear the
ancillary authority of the board to
make wage adjustments to keep the
minimum differentialS between i'm
mediately interrelated job classifi-
cation necessary to maintain pro-
ductive efficiency.
This authority is needed to enable
the board to avoid intra-plant in
equities which would otherwise be
created by wage adjustments or
dered by the board to eliminate sub
standard conditions of living or to
satisfy the little steel formula.
Similar adjustments for immedi-
ately interrelated salary job classifi-
cation may be necessitated, and are
authorized, when a longer work
week Is adopted which creates a
maladjustment between the pay of
workers on an hourly basis and
those on a salary basis.
"Staggered" Adjustments.
Adjustments Of this character
are to be so staggered as to avoid
the, need for adjustment in higher
wage or salary brackets.
3. The directive also makes clear
the authority of the board to make
wage adjustments within the exist
Ing levels of production costs for
the purpose of stabilizing wage
schedules for recognized categories
of employment in various labor mar
kets. 1t does not permit adjust
ments to correct Inequalities"
which were permitted by the Execu-
tive Order Of October 3, 1912. 1t
does. however, permit the board
to make adjustments in accordance
with the language OF the Act of
Congress of October 2. 1892 ito aid
in the prosecution Of the war or cor
rect gross inequities," provided such
adjustments do not increase prices
or increase production costs.
Such adjustments, except where
necessary to eliminate substandard
conditions of living or to give effect
to the little steel formula, are not
to bring the wages of the worker
affected above the minimum of the
going rates for comparable work in
comparable plants or establishments
in the same labor market.
Seasonal Labor May Be Raised.
In rare and unusual cases where
critical war production cannot other
wise be obtained, the minimum of
the pre-existing going rates may be
stepped up to the next lowest of
the going rates for other most nearly
comparable work in the same labor
market. A good example of such a
case in the situation found in the
SIN MoMiz