Montana labor news., 1945-02-15

THE WAGE
FREEZE
Labor is dissatisfied with the present
wage policy. This is reflected in the
requests Of the AFLl the CLIO, and the
Railroad Brotherhoods for a revision Of
the Little steel Formula Of July, 1912.
A brief review of recent wage policy his
tory is needed to understand that dis
satisfaction.
The Little Steel Formula vas a deci-
sion Of the National Wal Labor Board
approving a general wage increase OF Is
per cent over the level Of Januady J.,
1871, to allow for the increase supposed
" in the same degree in the cost Of hv-
ing between January 1871 and May 1912.
Labor protested at the time that the
increase was not adequate in that it did
not correspond with the actual rise in
the cost Of living and that the Little
teel Formula could only be maintained
if the price line we're held at May, 1912
levels.
It was labor's position that if wages
we're to be frozen, then in justice to
working people and the nation, all Of
the points in the Presidents overall
program to combat initiation had to be
put into effect concurrently. This was
also recognized by the President in his
presentation of the s%even-Point Pro
gram shortly prior to the Little Steel
cases.
The S%even-Point Program was an at
tempt to keep the nations economy on
an v keel, despite the tremendous
war expenditures, without penahzing any
one section Of the people. While the
armed forces were asked to face the Ill
innate sacrifice, corporate business was
merely asked to prevent excess profits
high-salaried executives to accept no
more than $25, 1000 a year, farmers to
stabilize the prices of farm products, and
workers to accept stabilized wages. Prices
of consumer goods and services were to
emain fixed at March, 1912, levels.
Labor wa in agreement with this pro-
gram which the President had offered as
overall and mdivisible. 1t was just that
all of the country should share the bur
den Of the a However. under the
pressure Of a powerful business lobby,
the limitation on SIS, 600 a year eXecu-
tive salaries was rescinded by the Con
gress. Corporate profits have SCARED be-
ond pre-depression boom days. Farm
ers and meat packers have been given
generous subsidies denied in similar pro-
norton to consumers, so that subsidies
have been only partially used with the
result that prices of consumer goods and
services have risen. The WLB, however.
rigidly enforced the Little Steel Formula.
OF this Seven-Point Program, wages
alone have been frozen at May, 1912
levels. These factors have brought about
the present request Of labor for a reyi-
sion Of the Little Steel Formula,
Rise in Living Costs
In various cases before the WLB, both
AT Land CLIO have asked for an increase
in wages to compensate for a rise in the
cost Of living since the Little Steel
Formula. This rise, labor contends, is
approximately 43 per cent to date. 1t is
everywhere conceded that a rise has
taken place, even by the Presidents Cost
of Living Committee Of which William
H. Davis, chairman Of the WLB, is also
chairman.
The report of the Committee on the
Cost of Living is based on the indices Of
the Bureau of Labor Statistics. The
Bureaus index figures show an increase
Of approximately % per cent in the cost
of living since January, 1941. George
Meany, secretary of the AFL, and r. j.
Thomas, President of the United Auto
Workers, CLIO, the labor members of the
Committee on the Cost of Living, assert
ed in a separate report that living costs
have risen 40 per cent in the SAINT
; lperiod. The difference between the
two figures is in part explained by the
Bureaus own admission that the in
dices are largely a measure Of retail
prices. Thus, their figures did not con
2 slider such factors as the lowered quality
of goods, the gradual disappearance o.
lower-priced items. the purchase Of wal
2 bonds. the cost of the war workers faml'
{ lies of moving to crowded war plan
t areas where limited housing, fewel
stores, curtailed living facilities pushe'
{ prices up even faster than in the larg'
cities. Labor vigorously protested th'
BIS figures, contending that unless
decent standard of living were main
tanned it would be impossible PHYSICAL,
and psychologically for war workers T.
maintain the maximum production need
ed 70 rthe war.
These arguments advanced forcibly il
various cases before the board-amonl
- others. the Steel cases, Textile, Packing
g. Electrical Workers, Federal Workers
1 have not to date brought about the de
sired revision of the Little Steel Form
Y ula. In its decision, November 20, 1914
o. in the Little Steel cases, WLB declined
- to act on a request for an increase, bu
- referred this TO the President togethe
with the report by the COST Of Livlnl
% Committee.
Notwithstanding strong pressure by