Evening star., 1945-09-24
Strikes Laid to Delay
In Reconversion Plans

III NS(OI1NSTSIOn TIOnS
Partial Controls Retard Supply
And Demand, Writer Contends
By David Laurence
Responsibility for the wave of strikes
facing the country Is not dificult to
place. 1t is due to the failure of the
administration and Congress to plan
carefully for the readjustments Of the
reconversion period.
No matter how distasteful to the
public strikes may be they represent
In many instances a deep-rooted sriev-
ance. A worker who had been getting
$40 . week for 40 hours in prewar
days but who during the war has
accustomed himself and his family to
q 48-hour week and $50 pay does not
readily 60 back to his prewar pay-a
reduction Of 80 per cent. Nor does $40
mean that amount after the employer,
at the behest of the Government, with
holds tax of about So so that the
worker really has to 60 back to q $32
level Of living whereas in 1899 and 1910
taxes were not so high.
Tho administration knew this prob
lem was coming. Industry and business
management knew it was coming. La
Dor issued many a warning on the sub
ject. What did the Government do
about it?
Plainly No Solution.
First, it was announced that wage
sterilization rules would be removed
only insofar as an employer and his
workers could agree on voluntary in
creases that wouldn't upset price CELL
ings. This was plainly no solution
because labor would claim that man
agement could pay the increases out
Of profits without raising prices while
management would claim that it needed
higher prices in order to absorb the
new costs.
Second, it was announced that price
regulation would be maintained on
certain commodities and removed al
together on others. This means that
for many articles the worker buys there
is no price ceiling and for many goods
that are vitality needed there is no
incentive to plan expansion Of produc-
tion because uncertainty prevails as to
wage levels.
Instead OF blending the wage problem
and the price problem together, as was
done during the war, the Government
relaxed its hold on both and told the
two major factors in our economic
life-management and labor - to shift
for themselves as best they could COL
lisions were inevitable. The surprising
thing is that there are so few strikes
though, to be sure, the number Of wage
readjustments going on now throughout
the country which will take time to
resolve and which may burst into more
strikes later cannot be calculated at
the moment.
Precedents Built Up.
Both labor and management wanted
return to collective bargaining un-
impeded by the compulsory feature OF
the War Labor Boards decisions. But
that agency did far more than direct
a judgment In dispute. 1t built up a
body of precedents and experience in
labor controversies and 1t educated
many labor and management repre-
sentatives who served on numerous
panels on how to bring disputants to
an agreement. Now apparently all this
is waved aside and the clock is turned
back to the jungle attitude of free-for-
all fighting which, after the most horri-
BILE war in history, doesn't speak well
for the restoration of the processes of
reason and order as against the proc
esses that breed friction find violence.
What is most needed is Federal ma
chinery for the settlement of disputes.
Government can play useful part as
mediator or conciliator and even as fact
finder, so as to reveal to the public
the truth about the issues. Senator
Brien Mcmahon of Connecticut, Demo-
crat, has introduced constructive piece
Of legislation along that very line.
But this by itself will not bring labor
peace. There is need for a rudder in
our economic system, and a Nation
which accepted wage and price control
cannot be expected now to adjust it
self easily to partial controls that are
plainly inequitable and actually retard
the operation of the laws of supply and
demand. If there is no danger of o,
need for imitation controls, then no re.
strictions on prices or wages at all ar,
needed. If Government must hold tn,
line against imitation a mistake ha
been made in failing to permit pric
increases wherever necessary to absorl
justified increases in wage costs
Certainly reduction of living stand
ards is not compatible at the momen
with the idea Of full employment unde
the private enterprise system. An up
ward movement of prices is logical il
many instances. Government alone car
prevent runaway or unneeded price in
creases. Some measure of control
therefore, is absolutely essential If the
reconversion period is not to result in
an era of economic distress.
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