Evening star., 1943-02-14
Drop in Production
Feared if Overtime
Pay Is Abolished
Officials Soy Factories
Would Be Delayed by
New Wage Bargaining
By JAMES Y. NEWTON.

pay pIOVlSiUllS VI Ullt "dS6-llOuI
law would spread confusion in
munitions plants and interfere
seriously with the war effort, in
the opinion of top officials ham
ding the Nations war produc-
ton.
officials believe adoption of the
48-hour work week will have the
effect of increasing production of
some lines of war weapons, espe-
cially if it is extended beyond the
80 labor shortage areas where it
will become mandatory after March
81, though most workers carrying
out the must programs already
are putting in at least that much
time. The vital machine tools in
dustry, for example, works an aver
age of more than so hours.
Repeal Of the wage-hour section
providing time e-and-a-h half pay for
overtime would reopen bargaining
in nearly every shop in the country
and slow down production Just as
it shows signs of hitting full stride,
high official said yesterday.
|. ~ Reed to Call Up Bill.
President Roosevelt's 4s hour
week order heightened interest in
action to abolish overtime premium
payments throughout the country.
Senator Reed, Republican. of Kan
sas announced he would call up this
week his bill which would amend
the law so that premium pay
ments would not begin until AZ
hours had been worked He expects
considerable backing in the move.
Great pressure is being placed on
Congress for favorable action on
the Reed bill, it was said.
Meanwhile, an once of Price Ad-
ministration official contradicted
charges that the heightened work
week with premium overtime pay
would tend to accelerate the in
hationary spiral. He said that while
1t was true that workers would have
more money to spend, the increased
amount Of civilian goods produced
as result Of longer operation Of
plants was expected to absorb sur
plus earnings.
The Official declared that the
profit position of a vast majority
OF firms was so favorable that they
would be able to absorb increased
labor costs without necessitating
action from OPA to bump" prices
OF goods they sell Profit margins
he said, generally are allowed tc
! fall below the pre-war level before
OPA will consider relief in the way
OF increased prices.
Coal Industry Cited.
AS an example OF the slight effect
Of extending the work week on thu
cost OF goods TO the consumer, tn,
official cited the coal industry. Tht
industry recently was placed on z
slx-day week with time land "a hal
pay for the sixth day. He said i
was necessary to raise coal price.
only about 25 cents a ton to off
set labor costs, through coal is e;
poor mans industry'-one operati
on an unusually low profit margin.
The inevitable effect of abolshinr
premium overtime pay would be K
disturb greatly r-management
relations in nearly all the Aation.
war plants high official com
mented. Consciously or uncon-
sciously there would be slow downs
We can't afford to risk anything ol
that sort now"
Declaring that cancella ton oi
vertime pay would amount TO a pay
cut for war workers, the oficial
said the action would be accom-.
panied by move on the part of al
labor TO make up the dif1erenc,
through increased hourly rates. HI
said that on expiration OF contract,
which provide for premium pay
there would ensue Wrangles between
workers and industry which coulc
only have the effect of greatly cur
failing plant output.
An Official handling aircraft pro.
duction declared that while a yeal