Montana labor news., 1944-09-21
BREAK LITTLE STEEL
FORMULA OR CHAOS
WILL FOLLOW

WASHINGTON. - (FP) - The Little
steel formula must be broken now lest
America face the spectre of millions of
unemployed, breadInes and closed fac
tories.
only by breaking the restrictions on
wage increases can America achieve the
hope of full production and full employ
ment after the war.
That, in essence, is the supplemental
opinion of the labor members of the
National War Labor Boards steel panel
released Sept. IA and backed up by lib
eral quotes fro mthe report of the public
members, facts and figures from govern
ment officials and agencies.
Concerning the general wage increase,
the labor memberss said "The findings
of fact submitted by the public members
of the panel completely support and
Justify the request of the union that
the WIB recommend to the President Of
the United States that he exercise the
authority vested in him under the Oc-
tober, 1912, price control law to direct
the WLB to order the steel companies
involved in this proceeding to grant the
unions request of a general wage ad-
iustnent of II cents an hour
1t is emphasized that "the President
has the legal authority under the Oc-
tober, 1912, law to act in accordance
with the unions request" and further
that Congress specifically rejected an
amendment to prevent the President
from revising the Little Steel formula
in the event of the cost o. living rose
beyond the is per cent allowed under
such formula"
Public members wrote in their report
that "the BIS Index is inadequate as a
measure of changes in the cost of living
of wage earners in the sense of reflect
ing necessary family expenditures re-
sulting from involuntary changes III
living habits"
These include higher rents, higher
medical and dental care, greater trans
portation costs, curtailment of shop
ping for bargains and elimination o.
low-priced items from the general mar
ket
When the 18th Congress knocked ou
the hope of President Roosevelt and hi
advisers in OPA and WLB for the ex
tended use of subsidies to prevent pricl
increases and to roll back prices to level
of Sept. is, 1912, it also adopted amend
ments to the price control law prohibit
ing their extended use, (which elimin
etes any hope for future roll back 0
prices" the labor members report sale
The labor members point out that tn
return to the 40-hour week will meal
a 25 per cent cut in total income to tn
workers of America now on a 48-hou
week, and use statements from the re
port of the public members to sho'
that the wage increase Of IT cents a
hour will not have any inflationary as
pect
Public members, considering the effeC
of wage rate changes on initiation sal
~dhey) have played relatively minc
role"
Included in the report is an eXhat
tive summary of the profits OF industi
and the statement that public membe
have accepted the contention OF u
union that "in considering ability to ps
wage increases the profits oil u
companies before taxes is the prop
test because wages, like other buslne
exnenses. come out of gross receiptS
IT is also stated by the public member
with the labor members in accord' Ih
if the wage increase is allowed, breakn
the Little steel formula, the net pro
its of the companies will be IN exec
of their average annual net profits du
ing the peaee-time era OF 1868
'sDuring the war" the labor par
cold industry has received ample pI
lection. 1t has built up tremendous
serves. In addition, it has already
ceived legislative assistance for the
conversion and postwar periods
But one essential factor is lacking
purchasing power of the people"
The report asks how many wa
earners will be able TO afford the eXpe
diture of their savings for the purch'
of new goods when confronted with
per cent cut in their weekly earning
Pointing to the picture of hope hea
and full employment after the war
painted in the Baruch report the pan
labor members said "these anticipa
hopes will be smashed If the peo