Evening star., 1944-01-23

various devices for skirting the ends
of the "hold-the- line" stabilization pro-
gram.
The railroad brotherhoods are the
latest beneficiaries of the polite flctions
being employed to raise pay rates while
ostensibly living up to the spirit of the
Little Steel" formula. Prior to the
rail agreement, which was born of
strike threat and Government seizure
OF the carriers, new elements were dis
covered for injection into the long
drawn-out negotiations involving the
United Mine Workers to provide more
money and settle controversy which
bred four strikes.
Now, with the CIO steel workers
pressing wage demands, and a similar
movement gaining force in other quar-
ters, notably aluminium, textiles and
motors, the country may expect conces-
sions of some sort for these groups also,
as precedent is bound to weigh heavily
in their favor, although this policy runs
counter to President Roosevelt's budget
message admonition that increases in
income should be limited to reasonable
rewards for additional effort"
The Little Steel formula, devised
midway in 1912. is not, of course, an
absolute barrier to wage increases, al
though 1t sometimes is so interpreted
1t simply provides that base rates may
be raised as much as Is per cent to
compensate for the increase in living
costs since January l, 1941-a purpose,
1t might be said, which it now falls
about 10 per cent short of accomplish
ing. The formula, however, permits in
creases for other than the living cost
factor-to correct substandard wages,
or adjust inequities, for example-and
1t also allows other wage concessions
that do not affect basic rates. 1t is
in this field outside the ost-of living
area that the miners and rail workers
made their gains, leaving a puzzled
public to try and figure out just why
the lnf1ationary effect of wage SEEM
ingly should depend on the nature of
the payment.
Have Overtime Allowance.
The railroad case presents some in
terestlng paradoXes. First of all is the
fact that the brotherhoods are receiving
as part OF their settlement an overtime
allowance based on the 40-hour work.
week principle of the Wage-Hour Act,
although they were excluded specifically
from that legislation at their own re-
quest in 1888 because they preferred
their traditional collective bargaining
procedure. and bolstered this plea with
the argument that the 40-hour stand
ard was not practical for the railroad
industry. Further, train and enginemen
work on an hourly and mileage schedule
that virtually precludes overtime
service.
Another unusual aspect is that the
Is incorporating brotherhoods, compos-
ing such classes as skilled tradesmen
and clerks. emerge from the fight with
an hourly increase of from to II cents.
which is estimated to be worth about
$252,000,00O annually, although they
once were willing to settle for cents,
amounting, on the basis of current en-
ployment, to about s215,OOO 900, accord
ing to the estimate of the Association
OF American Railroads The 8-cent
hike, recommended by an emergency
board, was in the basic rate of pay, and
was turned down by Sterilization Di-
rector Fred M. Vinson as inf1ationarv
and in violation of the Little Steel"
formula 70 II
theoretically noninfationary overtime
allowance for their standard 48-hour
week, superimposed on the 4-to-1O-cent
basic wage increase which Director
Vlnson said was the maximum per-
mitted under the formula-and which
the unions spurned.
The five train, engine and yard broth
erhoods get approximately S88 900 900
out of the settlement according to the
Association of American Railroads, cal
cula tions, and there is room for specu-
lation as to whether the refusal of
Director Vinson to sanction the cents
for the "nonops' did not actually
serve to increase the amount received
by the operating unions. Had the g.
cent rate prevailed, the operating unions
would have had poor gounds for asking
more. AS it is, they get cents, plus a
vacation allowance of cents The
cost of the latter innovation is estimated
at $16,000,000 to bring the total intake
OF the five unions to more than $780,
100000, and that of all the brotherhoods
to approximately $35O000,0OO And this
despite the fact that Accent raise for
the operating unions was the sum total
savailable to the rail workers as a whole
for a cost-of-living adjustment under
Little Steel' because of an increase
received in 1941.
Worked Out by President.
The vacation pay was one of three
allowances made to the train service
unions, who received cents hourly as
basic increase, in accordance with the
original award Of a wage board, and S
cents lin lieu Of claims for time and a
half for overtime in excess of 40 hours
a week and for expenses while away
from home" The overtime expenses
vacation formula was worked out by the
President when he took over the wage
dispute himself after the brotherhoods
threatened to strike in protest at the f.
cent award. Whether payment for ex-
penses away from home and for vaca-
tions is justified is matter of opinion.
The overtime allowance is in a differ
ent category. 1t carries the implication
that the train service employees have
operated at a disadvantage on the