Evening star., 1946-10-13
Operators Describe
Workers Demands
As Exorbitunt

i statement OF Joseph T.. MCNTW-
i rdghy, attorney for the hotels,
Il broadcast by him ouer Radio Sta
i ton WMAL last night:
The principles involved in the
disagreement between management
and the unions are simple in the
extreme. The details of the wage
contract involving numerous changes
sought by the union are compli-
Gated, would require lengthy dis
cussion and are best understood by
Representatives of the hotels and OF
the unions who have been in nego-
| tiation for many weeks.
For the past five years employees
| of the Washington hotels have been
given wage increases each and every
year. Increases in some categories
have been over 100 per cent. In
every instance every accepted for
mulae for wage increase has been
met.
There has been no reduction in
hours of work, no change IN job
classification, no reduction. in take
home pay. Every cost of living per-
lcentage index has been exceeded by
wage increases.
Compared With Other Cities.
In comparison with other cities,
Washington hotels are operating
with an overall wage scale in ex-
cess of that in. the hotel industry in
all of the cities OF the Eastern Sea-
board.
Hotels In the main are stated
by the domestic type of employe.
All are paid favorably in comparison
with the current labor scales for
this type of help and in excess OF
minimum wages fixed by the Dis
trict of Columbia minimum wage
board. Pay for the skilled workers
runs to high figures.
These facts are well known to the
union leaders. They also know that
hotel patronage in Washington
within the past several months has
been on steady decline. Figures
prepared by the independent ac-
counting firm of Horwath g. Hor-
warth since June have revealed
Washington as the only city in COM
parative studies to show minus
figure in all departments OF oper-
alton.
The Hotels of Washington had
hoped to avoid this strike. Even in
the face of uneconomic demands, the
18 hotels involved did offer wage
increases which would have result
ed in the addition of approximately
81 ,00O, 900 to their yearly payrolls.
They were willing to pay this price
for labor peace.
Serious Principles.
It is obvious that hotels cannot
operate profitably if they are to be
forced to accept never ending de-
mands for higher wages possessing
no economic justification. We have
reached the point where, unless the
exorbitant demands Of labor are
resisted, capital will cease to be in
terested in the hotel business as a
safe investment.
When we bear In mind that the
tourist and convention business in
the Nations Capital normally is Sec
ond only to the Federal Govern
ment in it's effect upon our local
economy, the seriousness of the
principles involved in the present
controversy becomes crystal clear.
The hotels are mindful of their
responsibilities to the public. The
service they can render at this time
is necessarily curtailed through no
fault or choice of theirs. The only
food service they can give will be
to the sick or aged who are un-
able to leave their rooms.
Unable to Meet Demands.
To the extent that it is possible,
permanent and transient guests now
residing in the hotels will be taken
care of.
This unfortunate situation exists