The union times., 1947-10-18

SAN FRANCISCO. = The most powerful force which can furnish leadership in the solution of our economic problems must come from the trade union move ment in the United States, .Secre- tary of Labor L. B. Schwellen- bach declared here before the convention of the American Fed eration of Labor.
 CAN'T BLAME LABOR
 The Secretary said he was con- vinced this statement was true be- cause this force represents the largest factor in our population. Also that it touches more intimately than any other factor the prob lems of the great mass of the American people, whether they are within or without the organized labor groups.
 One of the problems facing the United States at the present time dis cussed by the Secretary was the high cost of living. He said that for two years the favorite vocation of those opposed to trade uniorliS1n has been to attempt to blame each price increase upon wage increases.
 'SI think we should fight with all of our vigOr any effort 10 con. tinue the campaign to tie upon the wage earners of the country the label of being exclusively respOn- sible for the increase" SchweIlen- bach remarked. The Secretary con- tinued by saying that there is a relationship between wage increases and prices but that it is not a push process or a pulling up process.
 REMEMBER THESE!
 Giving some statistics on costs. of living he pointed out that in the last fifteen months living costs have in. creased 20 percent Weekly and hourly earnings of factory workers have risen less than Is percent The $4o or $50 take-home-pay of the average worker today buys just about the same goods and services that his $33 did just after Pearl Harbor. Thus Schwe1lenbach maintained that wage increases have not been the cause of price increases because they have never succeeded in attaining a goal of level of price-wage relationship.
 Schwellenbach remarked further that the fact is that the prices of food products have increased 72 per cent over prewar prices; the prices of manufactured products have increased 48 percent during the same period. Very largely the people who grew and prOcessed the food products are not organized into unions. Almost universally the people who produce the manufac- tured products are organized into unions.
 Therefore, the facts support the proposition that, regardless of wage increases brought about through col lective-bargaining contracts, the in- crease in prices due to other causes greatly exceeded that in the field where labor unions operated.
 PROFITS vs. SAVINGS
 Discussing profits and savings, the Secretary said he objected to people who contend for the right to make their corporations secure and also contend that the wage earners of America should dip into their savings and let their personal futures take care of themselves. 'sI think the wage earner is as much entitled to get nest-egg of insur- ance for the future as is corpora tiOn," he said. It is a proved fact that savings by wage earners de- creased AS percent as between 1945 and 1946.
 'It is a proved fact that the present savings of the great mass of the American people are 30 per- cent below what they were on VI. Day" On the other hand, he said that profits of corporations for the first quarter of l947 were $857,- 100000 compared with $323, ,OOO,- 900 for the same period year ago.
 The Secretary called attention to the Presidents program of voluntary reduction. He said that it must work and that it can work and he asked the American Federation of Labor to join III that cooperation.
 On the subject of the minimum wage, Secretary SchweIlenbach said that during the last Congress and this one he had advocated an in- crease to 65 cents, with a scaling upward to 75 cents an hour.
 In conclusion he asked the support of the organized labor movement in keeping strong Department of Labor. "The Department was created for you and for all of the unorganized workers of America. We need your, support" he said.