The Waterbury Democrat., 1945-10-31

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 sions been the first to point out that the continued intervention of Gov ernment must spell the end of our system of free enterprise"
 Believe in Collective Bargaining
 The President carefully refrained from setting any precise amount by which wages should be raised, n1ak- ing clear that this should be deter mined by collective bargaining 'in good faith"
 But he provided labor with one argument for the bargaining table. He estimated that the take-home pay of most workers had dropped 25 per cent or more since V-J Day and that increases were needed to prevent defiation and consequent wide employment.
 He urged industry to give careful consideration to labor's requests and in turn asked labor to be reason able" An it's demands.
 we must not kill the goose which lays the golden egg," he said.
 Declaring that he, like others, has been 'distressed in recent weeks" by mounting labor unrest, MT. Truman bluntly placed part of the blame on the doorstep of Congress.
 Congress Criticized
 He criticized Congress in general and two House committees in par ttcular for failure to carry out three of his important reconversion recommendations expanded unen1- ployment compensation, full ern- ployment legislation, and continued Federal control of the U. s. Employ ment Service.
 MT. Truman said the 26 per cent cut in workers take-home pay had resulted from these factors: Loss of wartime overtime pay, down-grad- ing from higher paying jobs and the fact that peace-tifne jobs pay less than war jobs.
 These three factors added to- gether mean Q drastic cut in the take-home pay of millions of work ers," he said. "1f nothing is done to help the workers in this situation, millions of families will have to tighten their belts-and by several notcleS.
 Tt has been estimated that, un- less checked, the annual wage and salary bill in private industry will shrink by over $20, 900 900, 900 that is not going to do anybody any good labor, business, agriculture or the general public"
 Drop Should Be Moderate
 MT. Truman warned workers that 1t would be impossible to maintain the Identical take.home pay level that prevailed during the war.
 There will have to be a drop," he conceded. "But the nation cannot afford to have that drop too drastic.
 Wage increases are therefore imperative - to cushion the shock to our workers, to sustain adequate purchasing power and to raise the national income"
 The President said there was room in the existing price structure for business aS a whole to raise wages.
 The President reaffirmed his wage-price policy order of last Aug. IS. He said this allowed manage 1nent to make wage increases of any amount without Governmental ap. proval If they did not require price increases, but which required ap- provai before the increase could be reflected in higher prices.
 Outlines Three Situations
 He said that his amendments to this order set forth three situations where wage increases would be al. lowed irrespective of price conse. QnenosS. These were:
 1. Where increases in average straight time hourly earnings have not equalied the rise In the cost of living between January, i04l, and September, 1046. (The cost of living rose 32 per cent in that period but average straight time hourly earn- ings in virtually oil manufacturing went up 36 per cent)
 2. Where necessary to corerct In. equities among plants in the same industry or locality.
 3. Where necessary to insure full production essential to reconversion.
 Assures American Way
 He asked the country to be pa. tient until the parties get back in the practice of collective bargaining.
 T know that this Is not an easy way to solve the wage problem, but N Is the sound way" he said. Tt N