Evening star., 1945-08-18
Lobor-Monogement
Crisis Seen on Wuy
Employers Face Many Problems
Under New Ruling, Says Writer
By David Laurence

AiHpiOySIS IdCC Nldly IOOiCHhS
Under New Ruling, Says Writer
BY David Laurence
A. labor-management crisis of far
reaching proportions is on the way. The
sudden removal from the jurisdiction of
the War Labor Board of voluntary in
creases in pay-either agreed upon by
an employer and his employees or acqui-
esced in by his employees conditioned
on the willingness of the employer to
forgo any increase in the prices of his
product.
But where the employer thinks the
increased cost of wages merits rise in
price OF his goods, he will have to get
War Labor Board approval and also
that Of the OPA. The big question is
what is going to happen when the en-
ployes think the raise can be given
without the price increase and when
they declare that the increased wage
should come out of profits.
One argument will be made that the
cost of the increased wages is a de-
ductible expense from taxes and hence
costs the employer only 20 or 80 per
cent OF the amount of the increase in
volved. Another argument will be that
since overtime pay would be offset by
increased wages and shorter hours, the
product will not need price rise. There
is fallacy in this, of course, because re-
duced hours mean reduced output per
man unless some speedup process is
developed
Management Problems.
Plant. management, under the rules
hitting the lid on voluntary wage in
creases, is going to face a lot of con-
troversial problems and 1t must not be
overlooked that what the President has
announced applies only to wage in
creases. No reduction in wages can be
made without War Labor Board ap-
proVal. This may in some instances
even prevent reduction in overtime nav
where it was customarily paid before
October, 1912.
Ihe Wage and Salary Sterilization
Law, which provides the authority tn
approve or disapprove wage increases,
runs until July l, 1916, and it specifi-
caLy states that wage reductions are
prohibited unless approved by the War
LABOR Board of the Bureau of Internal
Revenue, which handles the items above
$4,000 year.
Inc immediate effect of the action
taken IN the last "a hours may be to
stimulate wave of strikes. The new
oroer catches both management and
LABOR by surprise. The unions in par
tlcular are not ready for it. Their
spoKeSmen in many instances have been
using the threat of a strike vote or a
work stoppage to force employers and
even the War Labor Board to act. Now.
however, they will not have any Gov
ernment agency to fall back on. They
Will really have to take the RESPONSE
olnty for ordering a strike and their
members will have to vote knowing that
strike may actually mean a work
stoppage and loss of pay.
The same thing applies to the en-
ployer who has upon occasion stalled
along and refused to make concessions
believing that the buck could be passed
to the War Labor Board and a strike
thus avoided or indefinitely deferred.
When an employer turns down a union
demand now, he may be risking the
outbreak of strike. He must take re-
sponslolhty for his decisions and will
not be able to depend on a Govern
ment agency to help him out.
Time for Forbearance.
There are advantages and disadvan.
tases IN such situation. Where labor
ana management units have DEVELOPED
sense OF responsibility and mutual
respect, there will be agreements or
submission to arbitration and an avoid
ance OF strikes. Where exploiting union
politicians or where inflexible minded
employers are involved, there is going
10 be lot of friction and unemploy-
ment. 1t is time when patience and
1orbearance will be needed more than
ever before. Strikes will not be popular
With the workers. EMPLOYERS. anxious
to have time for reconversion and we'll
heeled In war profits, may think the
present a time for an economic clash.
with the workers.
President Truman has announced that
he will call a labor management con-
ference for September. Some agency of
public members and regional panels
Will undoubtedly be set up to act as
successor to the War Labor Board and
Its regional boards. But this will not
be a compulsory arbitration agency, 1t
will be mediation tribunal supple
mented by strong group of Govern
ment conciliators. The agency may make
Investigations and issue public state
ments on labor issues and on specific
disputes.
Public opinion may be the chief re-
lance of the future in compelling both
labor and management to assume greater
responsibility. Congress will be asked to
enact legislation carrying out such pur-
poses. The labor problem will soon be-
come the top news of the country.
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