Evening star., 1951-03-07
Labor Peace Formula
May Bring Agreement
Over Wage Controls
By james Y. Newton


A settlement of some of organ
ized labor's differences with tht
administration was in sight toda!
but the controversy with Mobili
zation Director Charles E. Wilson
ragged on unabated.
The part that seemed possible
of settlement was the differenc,
over the wage control program
Union leaders made known theil
terms on that one and the majol
demand was for new and ex.
panded Wage Sterilization Boart
with authority to settle dispute!
as we'll as to set and adminiStel
wage control policy.
Economic Stabilizer Eric A
Johnston was meeting with toI
leaders of industry in an apparen
effort to win management's agree
ment to the labor peace formula
He conferred yesterday. and will
do so again tomorrow. with mem.
bers of the United Labor Polio.
Committee, representing the AFL
CIO and rail unions.
In the all-day meeting with Mr.
Johnston were the industry mem.
bers of his labor management ad-
visory committee, and Charles S
Murphy. President Truman's spe.
cial counsel. The committet
members are C. E. Wilson, presi'
dent of General Motors Corp
BENJAMIN F. Fairless. president O.
United States Steel Corp: Johr
Collyer, president of B. F. Good.
rich Co., and Fowler Mccormick
chairman of the Internationa
Harvester Co.
Wilson to See Humphrey.
Mr.. Wilson. fresh from a con-
ference with President Truman ir
Key West. Fla, scheduled q
luncheon meeting with Senator
Humphrey, Democrat. of Mime
sofa. A subject of discussion will
be labor's demand for a policy
making role in the defense mobil-
ization program.
Senator Humphrey is chairman
of a Senate labor subcommittee
which is investigating the labor
rift with the administration and
the Walkout of union representa-
tives from defense agencies.
The break with MIR. Wilson ap-
parently was widened as a result
of statements attributed to thai
official in Florida yesterday. He
was quoted as saying the main
issue in dispute was labor's de-
mand for a voice in handling de-
fense manpower problems, in
the ALLEGATION of man.
power to the armed services.
The Labor Policy Committee
quickly replied that what Mr.
Wilson was quoted as saying was
"shockingly untrue" and that he
knew labor was concerned only
with homefront manpower poll.
cies. The committee added that
Mr.. Wilson also knew there were
many other issues besides man.
power involved in the dispute.
Talked With Truman.
After a three-hour talk with
the President, Mr.. Wilson saio
that neither he nor Mr.. Truman
knew what all of the shouting by
labor was about.
He added that neither he nor
the President had the slightest
idea" when labor might come back
to the fold. Mr.. Truman, he said
is in agreement that nothing and
must interfere" with the
defense program.
But the union leaders let it be
known that they were willing to
iron out differences over the wage
control program with the admin
lstration separately from the con-
troversy with Mr.. Wilson.
A problem facing Mr.. Johnston
was to sell industry officials on the
idea of reconstructed wage
board with authority to handle dis
putes. many of which are sure to
result from control policies. Man
agement spokesmen have strongly
giving a single board a
dual role such as was held by the
old War Labor Board.
Other Conditions.
In addition there are these other
conditions from labor for peace
with the economic controls pro-
gram:
l. Provision for adjustments
every three months in the 10 pei
cent wage increase formula to ado
on any new increase in the cost
Of living.
2. Approval for an indefinite
period of living cost "escalator'
clauses now written into labor.
management contracts. Present
policy provides for approval-of such
wage adjustments only through
June 80.
3. Provide for the handling o1
hardship" wage cases and ap.
prove so-called fringe" benefit!
such as pensions, health and wei.
fare funds without charging then
against the 10 per cent wage cell.
ing.