Evening star., 1949-12-25

g. 4ll1S ID 11OG Vic OP4AAAS1A Va Wiz
snap judgment of an itinerant
observer, but the conviction OF a
majority Of the men responsible
for 5000. 900, 900 worth Of Ameri-
can-owned sugar cane plantations,
sugar mills. banks, railroads, fac
tories, shipping companies and
other interests. It Is the subject
of every dinner-table conversation
in Havana. or wherever groups Of
Americans gather together. It is
the opinion of many Cubans in
high places. It is also q dem
onstrated fact.
At least, by their arbitrary de-
mands and actions, as well as by
their systematic harassment Of
private business interests, they are
gradually driving many firms to
the wall, SO that many are COM
PEELED to get out or sell out. usu-
ally to interests friendly to, if not
connected with, the government
itself.
Some Close Shop
The larger American manufac-
turing companies which operate
branch plants, are usually able.
without loss, to close their doors
and go home when the pressure
becomes too great. The Ford Mo-
tor Co. has already closed its
branch Office. So has the Singer
Sewing Machine Co. Singer,
known for its ability to get along
with governments all over the
world, and even successful in SELL
ing machines to primitive Andean
Indians on the installment plan,
admitted publicly that Cuba is
the most difficult country in
which we have ever tried to do
business"
The question of labor relations
wages, hours of work, social
benefits and other privileges
are not matters of negotiation or
collective bargaining between the
employees and the employers. as
we know it in this country. They
are invariably a matter Of gov
ernmental DEGREES, and organized
labor is so powerful it is usually
able to get any kind Of decree
1t wants.
The procedure is simple. De-
mands for wage increases or other
benefits are first made to the firm
itself by the unions. II the COM
pany hesitates or argues about
the matter, there is likely to. be
an immediate and crippling strike.
regardless Of previous agreements
and understandings. Most COM
panies try to avoid such strikes.
because they know that worse
will probably follow. If the COM
pany finds it impossible to meet
the demands in full or in part.
the question goes to the govern
ment, that is the Labor Depart
ment, which is more likely than
not to decide in favor Of the
union.
Sell-Outs Forced
In some cases, the government
intervenes, appointing some one
to take over and handle the busi-
ness while Investigations are be-
ing made. It is this action that
most companies fear more than
anything else. While the gov
eminent interventor officially op-
orators for the account Of the
company. and he may eventually
turn the concern back to the
owners, the inef6ciency Of gov
ernment operation usually leaves
a tremendous deficit, so that the
firm is worse of than it was be-
fore. 5.
Recently, in one or two cases.
American companies like Coca
Cola, Pepsi Cola and others, have
been able ato weather the storm
after government Intervention,
but only. after tremendous influ-
ence had been brought to bear
in political circles. In other cases,
political pressure is such that the
owners of the firm are forced
to sell out and usually on the
terms of the buyers. The Bur-
lington Textile Mills had to sell
out at tremendous loss or go
completely broke.
Foreign companies that render
public service, like hydroelectric
and telephone companies. are in
q particularly difficult position.
For them, strikes without warning
or any other sudden stoppage Of
operations. are not only disastrous,
but it is easy to build up popular
sentiment against them. They are
always targets for labor politicians
and Communist propagandists,
who charge them with exploiting
the. country and the people. Such
organizations have for years been
the whipping boys for extremist
laDos leaders
Wages Doubled
United States shipping COM
panies are probably more at the
mercy OF unscrupulous union lead
ers than any others. Shipping Is
not only. one of the largest but
one Of the most important Of for
eign enterprises on the island.
Cuba Is strictly an exporting and
importing country, and its COM
merce is chiefly with the United
States. We not only buy most Of
its sugar, but American companies
are among the largest producers
of the product. We also supply
the preponderance Of Cuba's Inn
ports, even q major portion Of its
food and foreign raw materials.
AT least, no American business on
the island Is more harassed and
hamstrung.
Wages Of all employees, from
janitors to stevedores, have more
than doubled In recent years.