Evening star., 1946-01-05
Transit Wage Boost
Will Increase Fares,
Reilly Maintains


The wage increase granted
Capital Transit Co. workers will
saddle the public with an unjus.
titled fare increase and repre-.
sents. a wage scale paid in only
two other cities, in both Of
which transit lines are operated
at deficits betrayed by the mu-
nicipality, James Francis Reilly
company representative on the
arbitration board making the
award, declared in a dissenting
opinion filed today.
Mr.. Reilly's opinion, which was
flled with Aaron Horovitz of New
York, arbitration board chairman
disagrees with the majority opinion
expressed by the board in the wage
dispute on every point except the
November 8, 1945, date selected as
that to which the pay increase would
be retroactive. The majority opinion
approved an increase to $1.14 ar
hour from the previous rate of 95
cents, plus 7-cent bonus.
Defends Users Interest.
THE users of the service have a
definite interest in a decision which
in my opinion, will require the Dis
trist of Columbia Public Utilities
Commission to order substantial in
creases in existing rates of fare, if
the company is to be able to provide
and maintain type and frequency
of service to which the public is en-
titled Mr.. Reilly said.
The two cities in which the wage
scale is comparable to the increased
pay for Capital Transit workers OF
s1.14 an hour were said by Mr.. Reilly
TO be Detroit and Boston. The basic
wage rate in Detroit is $1.22 an
hour, but, he said, the transit lines
there are municipality owned, are
operating at a 81 1,000,0 deficit and
attempts are now being made to in
crease fares from 5 and 6 cents to
10 cents.
In Boston the rate is 81 .06 an hour
workers theoretically getting more
than that due to the fact they are
paid on an 8-hour basis for 7 hours
and 20 minutes of work. Deficits are
met there by tax assessments levied
on the communities served, Mr.
Reilly said.
Certainly neither of these cities
should be used as measuring stick
for Washington" he said.
During arbitration proceedings
Mr.. Reilly said, a rate of $l.0s
based on 44-hour week, was estab.
lished in Baltimore with union con-
cuErence, and the rate in Philadel-
phia and Newark is 95 cents an hour
Living Cost Cited.
The Federal Government esti.
mates the rise in living costs since
January, 1941, at 80 per cent. The
evidence in the transit case shows
the increase to be 80 per cent. The
wages the transit employees already
are getting as the result of previ-
GUS increases are 29.5 per cent over
l941 figures, Mr.. Reilly said.
An increase in their wages to
s1.05 an hour, 9 cents less than the
award made, would ) bring their
wages in line with : Government
figures. he said. The increase ap-
proved by the board would give
them an increase of 44.3 per cent
over 1941 figures, he added
Mr.. Reilly pointed out the follow
ing additional reasons for dissent
ing:
/. The Capital Transit CO. IS a
regulated public service corpora
tion." whose books, property, secur-
tiles, equipment, expenses, revenues
and rate of return are the subject
of continuing scrutiny by the Public
Utilities Commission. The latter has
said the company's net profits rep
resent fair return on capital in
vestment.
2. Any inability of the company
to hold its present passenger traffic
will inevitably lead to adverse re-
action on the employees.
3. The company's average weekly
decrease in revenues for the four
weeks ended December % was rs
per cent and revenues have declined
every week since vi day.
Agreed to Award.
4. Only two months before the
union demanded its hour
wage increase, it had agreed to an
award made by a National War
Labor Board-appointed arbitration
board which provides a pension plan
and other benefits and which will
cost the company 81 ,000, 600 annual
lg. The report of this board clearly
Indicates that the award made
represents the limit of the COM
pany's ability to pay. TT is difficult
to accept any reasoning which at
tempts to justify an award which
fixes an additional burden of
81 l,5o0,000 on the company less than
three months afterward," Mr.. Reilly
said.
S. Comparison during arbitration
hearings OF the Capital Transit Co
with shipbuilding and aircraft in
dustries, on which Mr.. Reilly said
he majority relied in arguing for
the increase granted, is unfair
These industries are of the nom
regulated type, were engaged in war
work and have had tremendous cut
backs with resultant wholesale un-
employment, whereas the transit
company offers stable employment
and earnings.
e Government employees, the prin-
cipal transit users, have received
only one 16 per cent raise in their
basic wages since 1880 and Presi-
deEt Truman's request for a 20 per
cent increase is meeting vigorous
opposition.
E66, 900 Brides |
HI L