The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-11-17
AFL BARS ANY HALTING
OF WAGE-RATE RAISES

Washington. = In a clear-cut
statement of wage policy to Con
gress, AFL President William
Green said "there is no apparent
reason" why wage increases nego-
tiated by free collective bargain
ing SHOULD be halted at this time.
Mr.. Green made the statement
in reply to question from the
Joint Congressional Committee on
the Economic Report which asked:
"What do you believe would be the
effect of fourth round of wage
increases on the level of unemploy-
ment?" Following is the text of
Mr.. Green's important policy state
ment in reply:
"There is large element of fall
lacy in the whole popular concept
of rounds as applied to wage ne
gotiations, insofar as it implies
that a more or less sudden and uni
form upward impetus is applied to
wage levels generally at certain
period each year. Wage negotia-
tions are a continuous and decen-
tralized process. and their results
are determined by a complex of
factors that vary from situation to
situation, from time to time, and
from industry to industry.
"The term would be- in the ques-
tion seems to imply an element of
suspense that does not in fact ex-
ist. Wage negotiations and settle
ments have been taking place all
year, practically every day in the
year, and the great majority of
settlements have involved we'll
earned and justified wage in
creases, with no adverse effects on
employment or the soundness of
the economy. AS for more recent
weeks, summary by the Bureau
of National Affairs of more than
175 wage settlements reported for
many different industries during
the two-week period ending Sept
ember IL reveals that only 2 cases
involved decreases, about 80 cases
involved no wage increases but did
provide for additional benefits or
for later reopening on wages, and
in the remaining 145 cases, sub
stantial wage increases ranging up
to 80 cents an hour, were granted.
Reduced to essentials, the gist
of the opinions expressed by the
main body of business economists
and 'editorialists generally seems to
be that 'far-sighted' and 'respon-
sible' trade union policy is one
which foregoes wage increase
during period of prosperity, in
order to prevent initiation, and ac-
cepts a wage decrease during a
period of depression, in order to re-
duce the cost of production. Need
less to say, we are not impressed
by the logic of such arguments.
Insofar as any valid general OBJ
servation can be made in answer
to the question, it can be said that
an economy in which wages, liv-
ing standards and conditions of
steadily advance and
improve is the most conducive to
high-level employment.
There is no apparent reason why
this process of Improvement should
be halted at this time, and it can
only be relied upon to go forward |
under free collective bargaining,
and free collective bargaining is
the only means by which this func-
tion can be carried out realistically
and progressively over the long
run.
at should also be noted that
sustained upward pressure on the
part of wages, where downward
competitive pressure on prices ex-
sts, places premium on effic-
ency, and stimulates and encour-
ages improvements in technology
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