The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-07-14
Probe Asked On
Jobless Pay
Insurance Funds

Washington (LPA) - With un-
employment figures rising, AFL
President William Green called
this week for an investigation of
what employers have done with five
billion dollars in effect refunded to
them from unemployment insur-
ance funds for the purpose of sta
bilizing employment.
In letter to Oscar r. Ewing,
Federal Security Administrator,
Green pointed out that according to
official figures there were "three
and three-quarters million unem-
ployed workers in the United
States last month" and that "it is
estimated that this may soon rise
to five million" He also noted that
during the past 10 years employ
ers have saved more than five bill
ion dollars in unemployment insur-
ance taxes under the employer ex-
perience rating provisions of the
state laws.
These provisions of state laws
are theoretically designed to re-
ward employers who stabilize en-
ployment by reducing their unem-
ployment insurance taxes. Labor
leaders have long questioned their
value.
CAS- you know" Green wrote to
Ewing, "these huge reductions
which accrue to the benefit of en-
ployers are supposed to represent
a reward for the stabilization of
employment. 1t now seems ap-
propriate in the light of the re-
cent sharp increases in unemploy-
ment to call for a thorough evalu-
alton Of any employment stabiliza-
tion programs that may have been
developed within the states.
'In other words, what have the
workers Of America and what has
the nation gotten by way Of stabi-
lized employment in return for the
five billion dollars which has in eff
feet been paid to employers as
reward for stabilizing employment
within the industries covered by
the program ?"
Ewing was asked to obtain from
each state within the next month
reports on any employment stabi-
lization programs which have been
developed and any evidence it may
have that the employer experience
rating provisions have contributed
to the stabililzation of employ
ment.
Green predicated his demand for
an investigation upon statement
that with joblessness rising there
should be an appraisal of "the eff
fectiveness of the various state un-
: m p o Y m ent compensation pro-
grams as a means of tiding over
wage earners who are involuntar-
lily unemployed"
GAS we have observed the trends
developing over the past several
years with respect to state unem-
ployment compensation laws" he
said, eve are convinced that they
nave been considerably weakened
50 far as their ability to maintain
power is concerned.
This is a result of successful eff
'orts to restrict eligibility and to
write into laws technical qualifca-
ion standards not directly related
20 the voluntary and involuntary
nature of the unemployment"
Green's letter said he wanted to
all particular attention to the loss
n revenue to the insurance fund
from the employer exper-
ence rating provisions. This loss
# revenue, he said, had amounted
o 81, ,709 200, 900 between 1889 and
-948 which was S2.6 percent of the
paid out in benefits to un-
Employed workers during this per-
cd. In 1948 alone, Green added,
employers saved S1,161 100000,
which was almost half again as
much as was paid out that year to
obless workers.