Montana labor news., 1944-02-10

! The report was signed by Pres. r. j.
Thomas of the United Auto Workers
(CIO) and AFL ec.-Treas. George
Meany, labor members Of the National
war Labor Board subcommittee appoint
ed by President Roosevelt more than 8
months ago to study the cost Of living.
Pointing out a discrepancy Of 28.5e6
between the actual cost Of living and the
1870 wage adjustment allowed under the
Little Steel formula, the report found
that "as a matter Of essential justice and
practical necessity" wages should be ad-
justed upward by at least that amount.
Sole reliance on the BIS index as a
basis for wage adjustments during the
war period, the report said, will result
in continued serious injustice to wage
earners and lower-salaried workers. .
Failure of the BIS index to reflect actual
increases is due to 5 main deficiencies,
it said:
Food prices have gone up 1920.
according to the BIS index. Actual
figure is 1920. Not only does index fail
to cover a sufficient number Of food
items, but those not listed are the ones
not affected by OPA price control and
subsidies. -" Prices Of foods not
priced by BIS have risen twice as fast
as prices of the priced foods. the report
said. Other factors include failure to
take quality deterioration and upgrad-
ing into account, failure to note absence
Of weekend sales, and failure to note
price ceiling violations.
2-Clothing prices have gone up 72.2eo
since 1941, more than double the 1870
figure shown in the BIS index. The
index ignores disappearance Of cheaper
items and the shift to higher priced
lines. This is most striking in clothing,
said the report, and is also a large factor
in house furnishings, food and housing.
3-Rents have increased 1870 between
January 1941 INT December 1913, the
report said. According to the index, the
increase is only go. Most striking rea-
sons for the index inadequacy on This
score are:
(a)-Only large cities are sampled.
while smaller cities and boom towns
which have felt a greater wal impact
are neglected.
(b)-Index samples are taken from
within the city limits only, though major
changes have occurred in outskirts and
suburban towns.
(c)-Rents in rOoming houses, board
ing houses, trailer camps and light
housekeeping apartments are left out Of
the index, although these types are a
major factor in housing war workers
in such cities as Detroit, Seattle, Nor
folk and other war centers."
Cd)-Until recently, rent reports were
obtained for the index from large rental
agencies rather than from tenants. Even
though this has been changed to include
reports from tenants, the change was
not made until the most active period
Of rent changes was completed-the
period before rent control.
(e)-The index does not reflect ceiling
violations, increases in sales prices OF
homes, failure to register rentals. de-
terioration in quality of housing, de
creased services, repairs and the like.
1.-The BIS index lists increases in
costs Of house furnishings at 27.8eo.
Actual increase, said the report, was
over 62q6. quality deterioration and
disappearance of low-cost items, par
ticularly in house furnishings, are IN
accounted for in the index.
In addition, index findings are based
on samples from mail order houses and
large department stores, ignoring smaller
specially stores although they sell more
than 8 times the amount Of goods and
are subject to a minimum price control.
aside from these 4 major deficien-
cies, the report said, the index does not
reflect the following factors.
Black markets; wartime changes in
family expenditures, more money spent
for meals away from home, ETC.. NOV
ing expenses to new war centers. dual
residences maintained by war workers
due to migration; increased taxes; and
war bonds and other forms Of savings
that cut into disposable income.