Evening star., 1945-09-18
Public Seen Indifferent
To Labor War Issues
Question Is More Than Demand
for Wage Hike, Writer Says
By David Laurence


Indifference to the issues of economic
war inside the United States is one Of
the principal reasons why public opin-
ion does not exercise restraining in
fluence on the individuals responsible
for strikes and lockcuts.
Thus how many people have taken
the time and trouble to find out what
are the underlying questions that seem
to be back of the coming tieup of the
automobile industry? The headlines say
the workers demand 80 per cent in
crease in pay. There is apparently an
unwillingneSs on the part of the en-
ployers to pay it unless they can get
from the OPA an authorization to in
crease prices to the public. The issues
are not SO simply stated.
When there is such a dispute affect
ing price ceilings, the War Labor Board
takes charge and it. is a violation of
law in such instances for the employer
to grant the increases without the con-
sent and certification of the War La
Dor Board
But SO long as the unions give the
proper notice under the Smith-Con-
nally law, they may strike and there
is no penalty. The statute does not
and no-lockout" pledge, it really be-
came obsolete with the ending of the
war despite protestations to the con-
trary.
Fundamentals in Dispute
But what are the fundamentals in
volved in the dispute? The Auto Work
ers Union points to the wartime profits
Of the auto manufacturers and say
they can stand a 80 per cent rise in
basic wages, for the expense will be
the same as if the 43-hour week had
been maintained In other words, the
argument of the union leaders is that
reduction from a 48 to a 40-hour
week means a 30 per cent decrease in
take-home pay.
But the union spokesmen insist that
they do not want the entire 80 per cent
just for actual wages. They propose
that portion go to new social Sc
curity fund based on per cent of the
payroll and that of this fund one
third should take care of death bene-
fits to the employees family, and two
thirds for lberalized program of sick
benefits, with surgical care, hospitali-
zation and similar expenses taken care
of on basis of so per cent of weekly
wages for a period of 50 weeks.
The union leaders point to the war
time profits of the auto manufacturers
but, of course, they customarily give the
figures before Federal and State taxes.
forgetting that there was a huge excess
profits tax up to 95 per cent enacted
which took large slice of the profits
and made comparisons with prewar
earnings unfavorable rather than IA
vorable.
Likewise, the union leaders probably
would be the first to say that they are
against monopoly or assistance to big
business and that they want an era Of
competition in our economic system.
Yet as one examines the trend, it ap-
parentIy imposes on the high-cost as
well as the low-cost producer the same
increases in wages The new demand
is that there be industry-wide wage
schedules.
Plight of New Business.
The higher the wage scales become,
however, the more difficult it is for
new businesses to enter the field to
seek a part of the volume of sales al
ready possessed by the intrenched few.
The weather. corporations may we'll be
smiling up their sleeves at the new
allies which they have gotten. They
may protest publicly perhaps about
these wage increases, but they know the
unions are at the same time making
it more and more difficult for any new
competitors to enter the field
The public, of course, wants low
cost transportation and it is important
in the future index of the cost of liv-
ing that the automobile, which has be-
come necessity for suburban as we'll
as urban life, should not reach prohibi-
tive prices. archaeological improvements,
it will be argued. will tend to keep the
costs down, but it is questionable
whether any stabilized price system can
be made to work in the absence of any
stabilized program of wages that can
be related to increased output per man.
Demand based simply on the age-old
cry of more out of the employers prof.
its. irrespective of the fair return to
invested savings, tends to defeat itself.
For while the larger industrial units
in the auto business may stand the
gaff. there is economic danger when
all other sorts of businesses are con-
fronted with the precedent established
in the auto industry.
The issues are by no means insur-
mountable. They ought to be settled
around the bargaining table and with
out devastating strike. But will they
be settled without governmental con-
ciliation and perhaps intervention? One
may doubt it.
Reproduction Rights Reserved.
(innnnoro