The union times., 1947-03-15
Says Industrial Peace Depends On Management
With Profits And Production At Record Peaks, All Can
 Work Together

The AFL this week warned industry that ''nOw is the time to plan for three adjust. ments;" Wage increases without price increases; e. Tax reductions; and 3-Price reductions.
 The AFL Labor's Monthly Survey pointed out that For la Dor, present conditions mean that many employers can now raise wages without increasing prices. The key question as we look a. head is this: Will employers, through peaceful negotiations, a. gree to the wage increases which today's favorable situation makes possible? Or will employers make it necessary for workers to strike in order to obtain fair wage gains ?"
 RECORD PROFITS
 After noting that industrial pro- fits reached a peacetime peak last year and are still rising, the AFL monthly called attention to the way in which workers buying power has been falling behind. ''This cut in workers income is serious for two reasons:
 "1.-It means a decline in work. ers' living standards, especially since it comes at time when prices have risen drasticaIIy;
 "Z.-Unless workers income is increased, the market for indus. try's product will be cut at just the time when market support is most needed.
 "The nations 4O,OOO,OOO wage and salaried workers" said the AFL, "buy great deal larger share of industry's consumer goods products than the l0OO0,OOO farmers and business men.
 Until now the huge purchases of retail stores to restock their shelves have created an important part of the unprecedented demand for industry's product.
 This inventory buying already shows signs of slackening, and by the second half of 1947, American indus tries will be depending to a far greater extent on current consumer buying to maintain production"
 The first two months of 1o47 have brought constructive business develop ments so that factors threatening a serious business depression are being corrected, the survey says. This is due in no small measure to two things:
 'l. Labor management team work to get out production, over come shortages and increase the supply of goods to consumers. This brings price readjustment nearer.
 ''2. Economic dangers have been clearly pointed out to the American public through the Presi- dents Economic Report and the constant flow of other information, so that business men could correct situations causing immediate ecOn- Omic danger."
 As result, business observers re- port that "the economic situation is strong in many respects, with heal thy demand for goods, inhationary preSSures easing, investment expand ing, and the needs of foreign countries adding to the home market for our products Therefore the coming down. ward price adjustment should be pos Sible without causing a business reces- sion. A strong demand for building construction, both for homes and in dustrial plants, should keep building tradesmen fully employed.
 TOday's demand for production is due largely to workers buying power accumulated over the war years. TOmOrrOw's production will depend on tOday's >''reaI' wage in- creases.
 Concerning tax reductions, the sur vey says:
 Congress can take a vital step to maintain the market for full produc- ton by reducing taxes of low income groups. Money thus released to low income consumers will be spent practi- cally 100@o to buy goods and services"