Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-04-04
Little Steel Formula
Is Workers Torment,
AFL Tells WLB Panel
Living Costs Up 1870,
George Meony Asserts
At Opening Of Hearing
By the Associated Press

! os LIE ASSOCIATED PTeSS.
The American Federation of
Labor today opened the second
major attack on wage controls
in two weeks with an assertion
that the Little Steel formula
has become an economic
thumbscrew to torment the
working people of America and
their families"
| Secretary-Treasurer George Meany
outlined the AFL's case before a
War Labor Board panel specially
appointed to hear it's demand for a
realistic modification" of the for
mula.
Mr.. Meany did not specify sta
tistically what the new wage ceilings
should be, but declared that living
costs since January /, 1941, have
risen far more than the Is per cent
allowed under the formula, "even on
the basis of the sawdust chart" of
the Bureau of Labor Statistics.
4S Per Cent Rise Reported.
1--WE say the costs are up at least
43 per cent" he declared, land the
Department of Agriculture agrees
that as far as farmers are concerned,
that figure is about right"
Two weeks ago another board
panel heard the CLIO United Steel
Workers assail the formula for four
days. Both panels are limited to
Iact-fndlng reports to the board,
which then may order further in
vestigation of the entire subject of
wage sterilization.
The board itself cannot alter the
formula, but may recommend a
change to President Roosevelt. Tt
refused to make such a recommen-
daUion three weeks ago on motion
of the AFI..
our purpose" Mr. Meany told
the panel, lis not to add to the
workers wartime standards of liv-
ing. Nor is it our intention to de-
stroy the wage sterilization pro-
gram. The AFL seeks only to re-
cover the losses in the preWar
standard of living which the work.
ers OF this Nation have suffered as
result of the Little Steel formula.
This remedy is available within the
limits of the wage sterilization pro-
gram
Formula Attacked.
Mr., Meany, himself a presidential
appolntee to the WLB, said in his
opening remarks to the panel that
the whole StabiliZat ton program
and the Little Steel formula itself
were based on making wage rates
stay even with living costs. The
Little Steel formula was concocted
to prevent imitation. 1t has had
exactly the opposite effect. 1t has
submerged wages further and fur
Their below the constantly mounting
rise in prices.
The Little Steel formula ignores
the depreciation in quality which
has accompanied increases in costs.
Articles of food and clothing, hous-
ing facilities and transportation
have deteriorated in quality so that
the worker gets less in quality while
he pays more and ever more for the
same quantity.
Our Government has completely
failed to give the workers of our
Nation the benefits of real social
insurance which other nations i'm
mediately increased when war
broke out. That is one reason for
all the demands for severance pay,
sick leave, group insurance plans
and other such costly substitutes
which some unions are demanding
and which some companies are will
ing to pay since the Government
is paying the bill plus a surcharge
for commercial handling and profits.
A far more realistic approach to
this problem would be an honest
aboveboard pay raise to meet the
| higher cost of living