Evening star., 1949-10-20
Capital Transit
Arbitration on
Wages Opens
Union Says Company
Logs Behind Other
Utilities on Pay

sssssSS VII ~
Arbitration of the wage dispute
between the Capital Transit Co.
and its union employees got under
way today, with the union con-
tending the company has Jagged
behind leading transit concerns
In the country and other public
utilities in Washington in respect
to wages.
E. D. Merrill. president Of the
company, replied Immediately that
there is no justification at this
time for any increase in cost of
service, whether through higher
wages or additional fringe bene-
fits. He said higher fares may
be necessary even with present
costs and that the fares now
shave got up toward the point of
diminishing return"
The arbitration is being con-
Quoted by a board of five men,
bers holding hearings at the
Hamilton Hotel.
The union case is being pre-
sented by E. L. Oliver of the Labor
Bureau Of the Middlewest. In his
opening statement, Mr.. Oliver said
the union believes that moves for
higher wages in the transit indus
try should not be judged on the
basis of the financial condition
OF the employer. He said that
after wages are fixed at a fair
level it is up to the regulatory
bodies to determine what the fare
shall be on the basis of the COM
pany's income.
25-Cent Raise Asked.
The union is asking wage in
crease of Is cents an hour plus
fringe benefits which the COM
pany says amount to an additional
8 cents an hour.
The company has asserted that
acceptance of the full demands
would mean added expenses of
$3,910,o00.
Mr.. Oliver said wage rates in
American industry have risen
more than II cents an hour since
the middle of 1947 and that the
average hourly earnings in the
street railway industry has risen
81 cents.
He said railway express drivers
In the District are now receiving
$l.542, an increase of 81 cents
over 1947.
He asserted that wages should
not be allowed to lag behind liv-
ing costs. He said the Bureau
of Labor Statistics reports that
the cost of living for a normal
family in Washington is s3,e25.
Obligation Cited.
Mr.. Merrill said the company's
obligation to the people of WASH
ington "is one which is constantly
before us and to this we must give
great weight" This is not the
time to advance farther along the
road to imitation, he said.
"The income of the company is
now far below a fair return" he
said. 1T is far below the amount
necessary to maintain the equip
ment properly and. to replace it
when worn out
He said hourly rates have risen
faster than the cost of living. Mr..
Oliver had said that real wages,
however, had declined in the last
three years due to price rises. Mr..
Merrill said the company's en-
ployes' living standards are above
prewar and that there has been no
rise in the cost of living since
wages went up to S1.45 an hour
last July.
1943 Rates Recalled.
He said there is no reason for
increased wage costs to the COM
pany because of increased pro-
duction per man hour. Actual
passengers carried per vehicle
mile, which is our product, is sub
stantially less than in 1943, when
hourly rates were less than three
quarters of the present"
Justice to the people of Wash
ington, he said, requires that there
should be no increased wage costs
at this time because such increases
will have to be borne by the fare
paying public.
About 4,300 Capital Transit en-
ployes are members of the union,
! Division $50 of the Amalgamated
street, Electric Railway and Motor
Coach Employees. At present oper-
Ators, about 1900 In number, re-
ceite $l.45 an hour, top mechan-
les ffom $1.52 to $1.58 an hour,
and top helpers, $1.32.
The company says fringe bene-
fits increase those figures substan-
TALLY. It has tried to put into an
effect an economy plan which il
estimated would cut expenses by
about 100000 a year. The COM
pany insisted this would not af-
feet the workers take-home pay
but the union opposed it.
Agreement to refer the differ
l.