The union times., 1944-08-05
Showdown Sought
 On Steel Formula
Labor Leaders Ready To Force Issue On Freezing Of Wages-Contend That Nine Months Of Delay
 Is "More Than Enough"

There were many significant devel- opments this week in the battle o1 organized labor for a fair deal or wages:
 l-Condemning ''stalling," la- bor leaders prepared for show down battle to obtain a long Over- due revision of the unfair Little SteeI'' wage formula and of the ''doctored'' cost-of-living index.
 2-The A. F. of L. warned that unless wages are raised now, both civilian workers and returning ser- vice men, even if they have jobs, will not earn enough to live on after the war, when the work-week drops to 40 hours or less.
 3-Alvin H. Hansen, topflight government economist and an ad- wiser to the Federal Reserve Sys- tenn, predicted a grave postwar economic collapse because work ers' wages have not kept pace with their phenOmenally increased pro- ductivity.
 A report put out by the A. E. of L. showed that profits have ad- vanced much faster and farther than workers wages-in other words, that toilers have been left ''hOlding the bag"
 Labor chiefs are bitter because the administration has done nothing about either the restrictive Little Steer' formula or the Department of Labor deceptive price index, despite over whelming evidence presented by labor that both are working an injustice on labor.
 As readers know, the formula limits general wage increases to Is per cent above the level prevailing in January, l94l. When the for mula was put over by the National War Labor Board, in the middle of 1922, living costs had risen about the same amount, and the board, in adopting the formula, said it was designed to maintain peacetime purchasing power of workers.
 Since then, however, living costs have skyrocketed. The Department oi Labor, in its index conceded the rise to be over g per cent, but over a year ago organized labor started challenging the correctness of that yardstick.
 Finally, as a result of labor's at- tacks, President Roosevelt, back in October, last year, set up "cost of living committee to check the ac- curacy of the index. He named Chairman William H. Davis of the w. L. B. as head of the committee, and appointed two employer and two labor members-the latter Sec retary-Treasurer George Meany of the A. F. of L. and R. J. Thomas of the C. I. O. He gave the commit tee ''6O days'' in which to complete its study.
 Those 60 days have stretched into nine months, and still the committee hasn't reported to the President, Meany declared. "Its just about the finest example of a runaround you have ever seen."
 Back last January, tired of the com mittee's stalling, Meany and Thomas formulated their own report, based or an exhaustive checkup made by labor economists. It showed that living costs had actually vaulted 43.5 per cent, or almost twice the figure re- corded in the Labor Department index
 Since then economists of the Blu. reau of Labor Statistics, as we'll as three others appointed by Davis. took pOtshOts at the labor report. but in each case they conceded many of labOr's charges were right and that the index understated the true rise in living costs.
 Whereupon Meany and Thomas suggested that, as means of bring ing the controversy to head, various economists of labor and the govern ment get together and draw up z statement on the shortcomings of the index upon which all could agree.
 A fortnight ago the cost-of-living committee voted unanimously to have that done, but few days later Davi: changed his mind, explaining that hi: economists didn't like that procedure
 Meany and Thomas sharply pro tested this about-face and called for another meeting to get a show. down. They contended that nine mOnhs of delay was ''enough.''
 Their battle against further stall ing was bolstered by significant re port carried in the A. F. of L Monthly Survey" which showed tha workers and war veterans will be il a serious plight, from the standpoin of living wage, should the war sooi end.
 Because of wage freezing, work ers' straight-time hourly earning: have been kept far below a decen
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