The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-11-16
Labor To Drive For Better
Lows On Compensation

Washington (LPA) - Organized
labor is planning now to campaign
for liberalization of state unem-
ployment compensation laws wher
al state legislatures meet next
year.
Labor wants weekly benefits in
creased, the compensation period
heightened, allowances for depend
ents added or increased, and COW
erage broadened.
In the last three years some SO
states have liberalized the maxi
mum potential benefits in bene-
fit year. Twenty-one states now
limit coverage to firms employing
eight or more workers; II states
to firms with one or more workers;
and IL to firms with three, four, or
six workers. Many states in recent
years have cut unemployment tax
contribution rates for employers,
Organized labor in many states
will seek repeal of the so-called ex-
perience or merit rating provisions
under which employers with low
labor turnover records are now able
in most states to obtain lower tax
rates.
New York now authorizes tax
credits to employers with stable
employment in years when the re-
serve in the unemployment insur-
ance trust fund is deemed large
enough. Under the standards estab-
lished in the law, however, the re-
serve in the fund this year fell
nearly $50,000,000 short of the
minimum balance Of $4,000, ,0OC
which would have been necessary
on Sept. 80 to make available any
tax concessions for next year.
Despite the fact that the number
of jobless workers in New York
State is now at the lowest leveI
since VI Day, all employers COW
cred by the law will have to con-
tinue paying the full statutory pay
roll tax of 2.7 percent. The full
rate also is in effect this year, but
in 1949 the state distributed $127,-
100000 in tax credits to employers
with relatively low labor turnover
Rebates for the three preceding
years totafed $309,000,000.
Employer groups next year will
urge the New York legislature ia
cut the minimum reserve for tax
credits and cut the amount paid
out in benefits. Organized labor
will press for complete abolition
of the system of tax credits and
will demand more liberal benefits.
More liberal benefits and repeal
of all merit rating provisions also
will be sought in New Jersey. The
1850 legislature raised the bene-
fits to their present $26 level from
$22 week.
Labor groups in Indiana want
unemployment maximum benefits
boosted from $40 to $50 week and
will demand that merit rating be
abolished. Similar proposals will be
revived in Massachusetts.
The Montana Federation of
Labor has proposed that unemploy-
ment compensation benefits be
raised to at least $26 a week and
to $50 if possible for a minimum
of 20 weeks.
Employers in Missouri will bene-
fit from proposed plans to cut their
unemployment compensation tax
rates. Gov. Forrest Smith thinks a
reserve fund of $l50,000,000 is
ample to carry out an expanded
unemployment insurance program
The fund now has $194 ,467, ,033,
and he will propose a lower rate
schedule to the next session of the
legislature.
The labor committee Of the Wis
consin State Legislative Council
has recommended that the waiting
period for benefits be reduced from
two weeks to one week and that
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