Evening star., 1947-09-22
Capital Transit Fights
3596 Pay Raise Plea
Al Arbitration Hearinq

A three-man arbitration board,
today at the Raleigh Hotel,
was asked to deny request of
Capital Transit Co. employees for a
IS per cent wage increase to help
halt this vicious spiral Of inf1a-
ton"
Edward D. Merrill, company pres
ident, who asked that the wage boost
be denied, pointed out that the
company employs nearly 5000 per-
sons, half of them actually engaged
in vehicle operation.
He warned I'VE must not drive
fares so high that substantial
part of the patronage is lost" add
ing a large share of the patrons
were Federal Government employees.
"We submit to this board that
there should not be an increase in
wage rates at this time to i'm
mediately absorb all or any sub
stantial part of the increase in
rates" granted by the Public Util-
tiles Commission last May II, Mr..
Merrill said. ise E7
Postwar Raises Cited.
He contended' that because of
annual wage increases and other
benefits since the war, the company's
employees are in a preferred class
where no further increases are
justified or where certainly there
is, within the range of the COM
pany's proposals, a. possibility of
adjustment involving more money
to the men with no increased cost
to the company" He said this
could be accomplished by added out
put of work.
The arbitration board is headed
by DR.. George w. Taylor, former
chairman of the old War Labor
Board, as public representative;
Edmund L. Jones, the company's
general counsel, and o. David Zim-
ring, director of the Labor Bureau
of the Middle West, representing
Division $50 of the Amalgamated
Association Of Street, Electric, Rail-
way and Motor Coach Employees.
The association is an AFL group.
Merrill Presents Case.
Mr.. Merrill began his presenta-
ton after Eli D. Oliver, union rep
resentative and Washington direc-
tor of the Labor Bureau of the
Middlewest, had outlined the unions
case.
Mr.. Oliver said the issues fall
into two general classes-wages and
working conditions.
The union wants new sick leave
rules, as there is no provision for
this now in the Capital Transit Co.,
he said. The union also is asking
for changes in computing overtime
three weeks vacation for older en-
ployes, improvements for extra
workers, an increase in the night
shift differential and improved pay
for storm and snow work.
"The increase of IS per cent in
wages is fully justified by the evil
dence," Mr.. Oliver contended. He
pointed out that living costs have
gone up and wage levels have riser
in industry.
Union Demands Critized.
Mr.. Merrill, in his presentation
asked the arbitrators to consider
annual wages received by the mer
rather than hourly rates and con,
tended the union is asking slightly
increased pay for less work by urg-
ing two days off week when the
company is short of men.
1.-THE company is asked either tc
bankrupt itself or charge much
higher rates to the public-maybe
both-to permit men to work fewer
hours" Mr.. Merrill asserted.
He pointed to "the losses result
ing from suburban service" anc
asked whether the company was
to give up the outlying territory te
bus companies from the outside who
operate at lower wage costs.
Public Utilities Commission Chair.
man James H. Flanagan said hi
was not in a position to comment
on the possibility of a company Pc
tition for fare boost if the union
obtains its requested wage increase
PUG Not Concerned Yet.
In any event, he explained, the
PUG is not now officially con.
cerned with the arbitration move
and would make its. own investiga-
ton If asked later to allow any fare
raise. This, he recalled, was the
procedure followed last spring when
the 20 per cent fare increase was
granted.
"It is safe to say" a company
ofncial commented, that II such an
increase were granted we would
have to ask the Public Utilities Com