Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-04-12

all for our economic problems and
could not head OF depression. They
regard it, rather, in the language Of
the JAW, as the beginning and the
focal point Of general attack on
the basic problem of maintaining
full employment in peacetime." In
event of imminent economic depres-
sion, the Latimer report stated a
guarantee of annual wages would
provide a breathing spell until
major measures could be brought
into operation"
The pessimistS believe general
application of q guaranteed wage
would tend to cause a depression
and increase unemployment. They
argue it would decrease the mobility
Of industry and labor; might inn
pede expansion of the economy and
discourage chronological improve
mentS. Some argue that unemploy-
ment might be increased because
fewer workers would be required for
even increased production.
There is nothing new about the
guaranteed annual wage idea. The
first plan was put into operation in
1894 by the National Wallpaper As
ISOLATION. It died in 1880 after 80
years due to the impact of the great
depression and to disputes with en-
ployes over administration.
The Latimer group found that in
1916, a total of 1876 employers had
guaranteed wage plans in operation.
covering 500 different establishments
and over $4,000 employees. The
Bureau Of Labor Statistics states
that last year about 246,000 work.
erS under union contracts were COW
cred by some form of wage guar
antee, mostly on weekly or month
ly basis. Only 20 employers guar
anteed about 10000 workers their
wages for as long as year.
Oldest Working Plan
The oldest plan now in operation
was started in 1923 by the Proctor
& Gamble Co., manufacturers Of
soaps and cooking fats. The COM
pany guarantees hourly-paid en-
ployes 48 weeks of work year, or
full pay if work is not available.
However, there are several reserva-
lions. The company reserves the
right to limit the hours Of work to-
IS per cent of the established work.
week, and to end or modify the plan
at any time. So far Proctor g.
Gamble has not used the IS per
cent limitation. -
The success of this plan is attrib-
uted to the company's indignation
of production and marketing to a
remarkable degree. The company
has never been forced to pay out on
the financial guarantee more than
per cent of annual payroll land
that was an exceptional year." Be-
cause of the plan, the company
qualities for greatly reduced unem-
ployment tax rates.
The George A. HORNED Co., meat
packers, has in operation perhaps
the most widely publicized guarantee
plan. It covers 5000 workers and
in recent years has been written
into the company's contract with
the Go United clearinghouse Work.
ers. It was started in 1881. Under
it, employees are guaranteed pay for
as many as 1880 hours of work a
year, the equivalent of So 40-hour
weeks. The company, however, is
exempted from having to pay pre-
MUM rates for work over 40 hours
a week. And the plan may be can
celed at any time. ....
The Latimer report said that in
voluntary idleness in the II years
from 1929 to 1941 cost the people
$275 billion of real income. That
was enough, the group estimated,
to build all the railroads in the
country, substantially rebuild the
cities and permit replacement of all
the obsolete and obsoleScent equip
ment in the country.
The JAW is dead set on stopping
this kind of waste, Mr.. Reuther told
cheering convention delegates the
other day:
I'VE hope we can do it the easy
way, the sensible way, but tell the
boys and girls back home to get
ready to do it the hard way If that
is the only way industry will do il"