Evening star., 1945-03-11
WLB Industry Group
Says Fringe Issues
Menace Sterilization
By the Assoc .sted Press

FIcII0Ic JIoUllILdIIUlI
By the Associated Press.
Industry members of the War La
Dor Board asserted in report made
public last night that fringe wage
issues are Threatening the f1anks'
of the Little Steel Formula.
II not brought under control,
they said, the attack may destroy
the entire wage stabilization line.
The assertion came in a state
ment on a wage report to President
Roosevelt February 20, in which
public members of the board rec
commended that no change be made
now in the Little Steel Formula, but
that wage controls be removed in
the postwar period
Permissible Increases Granted.
Declaring permissible increases
under the formula largely have been
granted, industry members termed
demands for fringe increases as
nov the weakest segment of ou1
line" and called for their control
under fixed standards
(The industry members wage
report was drawn up before
issuance of the Vinson directive
Thursday in which "stabilizing
limits" or standards, were set
for the four most common types
of fringe" increases. WLB
since has announced that similar
standards will be established for
other secondary adjustments)
The Little Steel formula limits
basic wage boosts to IS per cent of
the rate of January, l941. Fringe
issues involve such side issues as
vacation pay, shift differentias,
provision of tools and safety equip
nlent, and the like.
While expressing agreement with
the stand of public members on the
Little Steel formula, industry repre-
sentatives took issue on four counts
with what they termed "unsound
reconversion policies" recommended
in the report.
Call Some Increases Abnormal.
Asserting that certain types of
wartime wage increases are wholly
abnormal" the industry members
said they regard as unwise the sug-
gestion that war caused innovations
be made postwar norms." Public
members had declared that the
Little Steel Formula will have to
give way in peacetime to a general
rise in wage standards to maintain
high-level production.
Wartime adjustment of wage rate
inequities between plants, industry
members contended, has, in many
cases, been "only peg upon which
to hang concealed general wage
increase" Commenting on the
statement by public members that
such adjustments would be an i'm
portant part of postwar economic
planning, the industry report
stated:
"The overall adjustment should
result in little or no overall
increase in the total wage bill"
A proposal by public members for
postwar legislation pegging certain
wage rates in key industries, the in
dustry statement said, would make
rigid and infleXible" the entire ma
tional wage structure.
ANY attempt by the Government
to formulate wage schedules for ev-
cry industry" it added, would
bring only endless confusion and
endless disputes. The functioning
of the free enterprise system calls
for flexible wage rates, free to ad-
just in accord with economic, not
political, factors.
High Wages "Overemphasized."
Declaring the public members re-
port overemphasized the importance
of high wages to economic prosper
ity, industry representatives said
real wages, not dollars, are the i'm
portant thing"
A postwar race between prices and
wages, they forecast, would result in
fewer jobs and growing Govern
ment relief program.
The industry members issued their
commentary as coming from all Of
them, without individual signatures
At the same time, CIO members
of the board termed the public men,
bers' report "an empty exercise in
iugglery' and called on
the President to direct prompt up
ward revision of the Little Steel
formula.
Declaring the public members
"concede" that the cost of living
has increased 80 per cent while
wages have risen 20 per cent, their
report to the President said the
conclusion is inescapable" that
10 per cent wage rate increase
should be granted retroactive to the
date when the inequity developed.
See Foundation of Sand"
Public members, the CIO report
said, are seeking to change the
foundation of wage stabilization
from wage rates, or hourly labor
prices, to actual earnings, thereby
replacing "a foundation of stone
with one of sand
Those arguments paralleled the
position taken by AF'L members in
their own report week ago.
"The WLB chairman has repeat
edly pointed out, and Congress has
accepted the fact, that to stabilize
@take-home' pay, weekly or hourly
earnings, would put brake on war
production" the CIO mem bers said
yesterday.
Reductions in war procurement
and overall employment make it
economic nonsense" the CIO rep
resentatives declared, to regard in
fation as a menace. cit is defation
we need to guard against" they de-
clared.
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