Evening star., 1954-04-30
Accord Seen
On $50 DC.
Job|ess Pay
Budget Bureau
Expected to Clear
Bill With Figure
By Colt HendIey, Jr.

A dispute over unemployment
compensation payments in the
District probably will be settled
in the next few days.
The Federal Budget Bureau
has under study, for transmits
sion to Congress, a bill calling
for maximum payment of $50
q week for % weeks for unem-
ployed workers here. The bill
was prepared by the District
Unemployment Com p n sation
Board.
Indications are that the bill
will be sent to Congress with the
$50 figure still in it. The maxi
mum payment now is $40 a week
for 20 weeks.
The delay in getting the meas
ure before Congress resulted from
efforts by the Labor Department
to raise the recommended fig
ureS to $33 for 26 weeks.
The department considered
this to be in line with a policy
recommended by President Eisen-
hover in his state of the Union
message and economic report to
Congress.
Recommended 26 Weeks,
The President described as a
desirable goal the raising of the
maximum weekly payments 80
that the payments to the great
majority of the beneflciaries may
equal at least half their regular
earnings" He also recon-
mended a uniform 26 weeks
duration of the payments.
He said the payments should
be increased in line with the rise
in wages and living standards
so the program can accomplish
its purpose.
Using this as a criterion, the
Labor Department came up with
the figures of $33 a week for 26
weeks for the District. Last year,
the average weekly wage in the
District was $65.28.
The $50 a week for % weeks,
recommended by the District
board is a compromise figure
arrived at after many confer
ences of employers and labor.
The employers wanted less and
the unions more.
Other Differences.
Although the two main points
in controversy between the board
and the Labor Department con-
Germ the amount and duration
of the payments, there are other
differences.
One involves the system of
disqualification penalties. The
bill provides for maximum dis
qualification up to nine weeks,
with matching benefit cancela-
ton.
It is understood the Labor
Department objects to this, for
one thing, as a doubling up"
of penalty, adding to the post
ponement of benefits the cancela-
ton of up to nine weeks of
benefits.
Another concerns dependency
allowance. The bill would retain
the maximum payment as a
ceiling despite dependency claims.
In other words. only bene-
ficiary drawing less than the
maximum could receive the 81
additional for up to three de-
pendentS.
The Labor Department takes
the position that no State pays
as little as 81, that payments in
IL States with dependency al
lowances range up to SIS a week,
and that no other State main
tains the same ceiling with or
without dependency.
Still another difference in
wolves a provision of the bill for
weekly notice to the principal
employer of benefit payments
chargeable to his account. The
department holds this an expense
with doubtful justification, since
the employer is notified of the
filing Of claim.
Unemployment compensation
Is insurance against temporary
unemployment of workers, which
the employer pays completely.
Every businessman in the Dis
trict who hires workers has an
account with the board. There
are some 19.700 accounts.
The employer pays all the
costs through an assessment of
his payroll, varying from one
tenth of / per cent to 2.7 per
cent, depending on his turnover
rate.
Government workers are not
covered. They have to take care
OF themselves through accumu-
lated annual leave. A bill to
place Federal workers under
unemployment compensation is
pending in Congress. however.
Studied Several Years.
The move to increase the un-
employment payments has been
under study for several years.
1t was goal Of the Labor De-
partment under the Democrats
and President Eisenhower's rec
concentrations put new life into
the situation.
The District board shows a
healthy $3.50 million reserve ac-
cumulated since the program
started here in 1886. Employers
have paid nearly STA million
since inception of the program.
an annual average of SAL mil
lion. Payments made to unem-
ployed workers have averaged
$1.9 million year.
Owing to a squirt of unem-
ployment in the closing months
of last year, the District board
paid out $2.3 million to 1927