Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1946-12-06
BY
Clayton
Rusch
Chairman

SponSlble a n d progressive
unions must use a good share
of their resources and energy
in promoting sales and in
creasing profits for the en-
ployers.
The argument runs thus
that wages come out of profits
and that therefore if labor
wants more wages we must
see to it that the boss gets
larger profits.
AS long as this silly philo-
sophy appeared only in publ
cations such as the Liberty
Magazine and the viewpoint
was expressed in articles sign.
ed by spokesman for industry,
it hardly merited the space
required to answer it.
However, when such distor-
ton of economic facts as this
view involves appears in an
article by a labor leader
(who boasts of his status)
and is reprinted as a paid ad-
vertisement in the JOURNAL,
this time has come to analize
and expose the flaws in this
specious reasoning.
The articles in question ap-
peared in last weeks JOUR-
NAL and was a reprint of one
which originally appeared in
the Readers Digest. 1t was
written by Walter Cenarazzo,
President of the American
Watch Workers Union.
It must be clearly under.
stood that there can be no
objection to such an article
appearing in a labor paper,
especially when the space is
paid for as this article ap-
peared in a paid advertise
ment. The only mistake would
be for labor leaders of a diff
ferent point of view to allow
such an argument to remain
unchallenged.
Let us examine the conten-
tion that great profits and in
creased production should be
an essential aim of organized
labor.
This theory holds that the
more goods a worker can
produce in a day, the more
goods the company will be
able to sell. This of course
means (according to the argu-
ment) greater profits, and will
make possible higher wages.
In the first place, the COM
panies, probably not with the
aid of the unions as such, but
certainly with the aid of en-
ployees who belong to the
unions, have already done a
magnificent job Of tooling
their plants In such a way as
to get the maximum amount
of production from each work
er. The average worker today,
due to chronological improve
ments, produces more goods
than he did in a given period,
before the war. At the same
time, despite wage raises his
real wages, that is, his pur-
chasing power, has declined.
In other words, purchasing
power must keep pace with
production, or, regardless of
the need for commodities the
workers will not be able to
buy back the goods they pro-
duce.
FACTORS
Three factors must enter
into any solution of the eco
nomic problem. 1. Wages must
be high enough to enable the
workers to buy back what
they produce. 2. Hours must
be short enough to assure
employment to all who need
it. 3. Profits must not be high
enough to disturb this equili.
brium.
The relationship of wages
to prices and prices to pur-
chasing power is not too diff
cult to understand If one takes
the time and trouble to an
alyze the situation.
Articles like the one writ
ten by Brother CenarazZo
tend to confuse the issue.
Such writings are to be ex.
pected from the represent
atives of industry, but labor
leaders have an obligation to
be more factual before they
give way to the urge to write
articles on "what is wrong
with the union"
The fact is, we did not cook
up the economic mess, and
while we cannot escape stew
ing in it, we need not accept the
sponsibility rests squarely on
the shoulders of the short
sighted, greedy corporations
and their stooges in the State
and National Legislatures.
AS long as our economic
articles are in the fairyland
category, why not write one
about that mythical election
day when the workers all
went to the polls and elected
representatives of the COM
mon people to office, who then
proceeded to draft a legisla-
tive program bases on jobs at
living wages for all.