Evening star., 1947-03-23
Unions Split
On Wage Plan
Year.'Round Guarantee
Backed by CIO as
Stabilizer
Bv Georqe Tucker

troversial question of a guaranteed
annual wage for labor is coming in
for serious study by people in Gov
ernment, business and labor.
If careful analysis should indicate
the plan could stand on its own
feet, without benefit Of subsidy, or
without working financial injury
to employers, many manufacturers,
labor leaders and economists claim
it would become powerful stabiliz-
ing force and say they would favor it.
Many others, however, feel that
the plan, if adopted universally,
would hurt the national economy in
short order: ...-.-.-
They claim small businesses lack
the necessary reserve to make good
! on commitments in bad times, and
large businesses in good times would
hesitate to expand because Of addi-
tional guarantees necessary for addi-
tional workers. e.
While some of the big CIO unions
are expected to stump for year.
round wage contracts, the plan is
by no means a labor project exclu-
sively. Many unions vigorously op-
pose it, and others regard 1t with
apathy.
A Pertinent Point.
The International Ladies' Gar
ment Workers want no part of an
annual wage commitment, claiming
their immediate goal is ito create
stability among employers" many of
whom fade after a few months
operation. They ask what good is a
contract when the boss goes bank
rupt?
A pertinent point concerning man
ufacturers and workers alike is
whether year round guarantees
could succeed in a free economy.
Some independent fact = finding
boards, such as National Industrial
Conference Board, Inc, and some
unions, like the National Maritime
Union, say a guaranteed wage is
possible only under a regulated
economy,
Philip Murray, arguing for the
move, said that guaranteed wages
would stabilize economy and ward
off depressions.
"It is automatic that where work.
ers are assured full employment and
economic security, they furnish the
backbone for the mass purchasing
power so essential for the continued
turning of the wheels of industry, y
Mr.. Murray said.
Describing this as "cart-before-
the horse reasoning" Irving s. Olds,
board chairman of United States
Steel observed, lit is futile to expect
such a program to correct dimin-
ished buying of particular products
1t Is customers buying that
rules the distribution of wages to
workers"
A careful study of the entire wage
guarantee question, made by repre-
sentatives of industry. labor and
the public and sponsored by the
Office of War Mobilization and Re-
conversion, is now being analyzed
by the Presidents Council of Eco
nomic Advisers.
Two Types Of Plans.
OWMR's chief conclusion: "The
guaranteed wage is a significant
but not an all-sufficient tool"
It's chief recommendation: That
adoption of this or any similar plan
be left to free collective bargaining
rather than be made the subject OF
Legislative action.
There are two types of guarantee
plans, both employing this basic
principle: The employer promises
to provide eligible workers with a
specified amount of income or en-
ployment for a specified period.
If it Is purely wage guarantee.
the employees compensation is esti-
mated on a yearly basis and is paid
to him in period installments re-
gardless of production or fiuctua-
tions in hours of work.
The other type guarantees a def
mite amount Of work over specified
period, but during this period the
workers earnings may vary.
distributed BY the Associated rrs'so