The union times., 1947-02-22


 FINAL REPORT
 That's the highlight of a final report on the subject, just conn pleted by Murray w. Latimer, former chairman of the Railroad Retirement Board. Latimer devoted year to the annual wage study, on an assignment by the White House. He prepared preliminary review last November, key portions of which were carried in THE UNION TIMES. His windup report was submitted this week to the advisory board of the Office of War Mobilization and Re conversion at the White House. That board consists of representatives of labor, management and government.
 N. A. M. Throws Bricks
 No sooner was the document drafted than brickbats started flying. The Ma tional Association of Manufacturers, for example, said that an annual wage guarantee would encourage "idleness" and take away the incentive" for un- employed workers to look for jobs. That's the same canard which was raised when the unemployment insur- ance was first proposed years ago.
 However, Latimer's report contains a strong answer to that criticism.
 Far from leading to unemploy- ment, an annual wage system would help stabilize the economy, stimulate industrial peace and bring a higher level of employ ment and production, he contend ed.
 Guaranteed wage plans will aid in removing the dead hand of fear from 1abor-management relations and from the economy, permitting the lifting of those restrictions on productivity which have been characteristic of ern- ployment insecurity" Latimer said. Can Lead to ssLasting Prosperity The guaranteed wage, used with care, can become an integral part of a rounded program for greater securi- ty, for harmonious industrial relations, and for more lasting prosperity
 Latimer pointed out that as of Jan uary, 1946, about lo6 guaranteed wage plans, covering 800 plants, were known to be operating. In general these 'have been highly successful" and, though the number is small, they demonstrate the feasibility of such wage security, he said.
 Latimer proposed a two-fold ap- proach to the problem. First, he would have the present scale of unemploy- ment benefits increased to a level of 65 per cent of an employees normal earnings, with maximum of $32.5O a week Reserves in unemployment funds are great enough to pay that scale without higher cost, he stressed.
 Would DOvetail Two Systems
 Then he would remove from state laws present provisions which bar job less benefits to laid-off workers who are drawing guaranteed wage pay ments. Thus it would be possible to dovetail unemployment insurance with annual wage plans.
 To assure their workers year. around wages, which would cover periods of layoffs, employers would only have to make up the difference between jobless bene- fits and the amount of the wage guarantee. Latimer suggested that such guarantee be set at an average of 90 per cent of work er's normal earnings.
 He also proposed that Federal tax laws be revised so that trust funds set up by employers to finance wage guar antees would be regarded as "cost of doing business" and thus be freed of taxation. That's permitted now in the case of pension funds established by private corporations.
 Cost Held Small
 If the changes are made, the cost to companies putting into effect annual wages would be negligible, Latimer re- yealed. He showed that in the case of such big corporations as General Mo tors and U. S. Steel. it would be equi-
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