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1972). When a person carries on the trade or business of making, fabricating or as sembling a product by manual labor or machinery sale to other persons he is a "manufacturer" within the definition provided by the Economic Stabilization Regulations, 6 CFR 300.5, 36 F.R. 23974 (December 16, 1971), and his prices are governed by 6 CFR 300.12 36 F.R. 23974 (December 16, 1971).

To the extent that the company has taken unsold newspapers and magazines and sorted them as to color and texture and bundled the sorted materials, the

company has altered that product so as to make a distinctly separate product (i.e., bundles of sorted newspapers and magazines as to color and texture). The company therefore fits the definition of a manufacturer and all such transactions are governed by the Regulations. Accordingly, the sale of the newspapers and magazines as described in the facts not qualify as used products.

This ruling has been approved by the General Counsel of the Cost of Living Council. [37 F.R. 3770, Feb. 19, 1972]



200 Organization and information. 201

Stabilization of wages and salaries. 202 Prenotification and reporting. 205 Pay Board procedural regulations.

Rulings Internal Revenue Service/Pay Board.


Subpart A-Organization (Reserved)

Subpart B Public Information Sec. 200.20 Availability of records; exceptions. 200.21 Index of available material. 200.22 Requests for inspection of records. 200.23 Records not suficiently identified. 200.24 Records not in possession of Pay

Board. 200.25 Determination of availability of

records. 200.26 Requests for reconsideration of non

availability. 200.27 Final determination of availability. 200.28 Fees.

AUTHORITY: The provisions of this Part 200 are issued under the Economic Stabilization Act of 1970, as amended (Public Law 91-379, 84 Stat. 799; Public Law 91-558, 84 Stat. 1468; Public Law 92–8, 85 Stat. 13; Public LAW 92–15, 85 Stat. 38; Public Law 92–210, 85 Stat. 743), Executive Order 11627 (36 F.R. 20139, October 16, 1971), as amended. Cost of Living Council Order No. 8 (36 F.R. 20202, October 16, 1971), and 5 U.S.C. 552.

SOURCE: The provisions of this Part 200 appear at 37 FR. 2479, Feb. 1, 1972, unless otherwise noted Subpart A-Organization (Revised)

Subpart B Public Information $ 200.20 Availability of records ; excep

tions. (a) In general. All documents and exhibits filed by any party with the Pay

Board in the course of its proceedings are part of the records of the Board, available for inspection and copying by members of the public, except to the extent and in the manner specified in this subpart, and except to the extent such information is of the nature specified in 5 U.S.C. 552(b) (1)-(9).

(b) Identifying details omitted; authority to disclose. Information furnished to requesting members of the public may have identifying details omitted to avoid the possibility of violations of 18 U.S.C. 1905. That statute imposes criminal penalties for the disclosure of trade secrets, financial data, and other confidential information. However, the Chairman of the Pay Board, in his discretion, is specifically authorized to divulge or disclose to a complainant, or to an individual with specific knowledge of a complaint, the nature and result of the investigation of said complaint in circumstances where no violation has been found. $ 200.21 Index of available material.

Pursuant to the requirements of 5 U.S.C. 552(a) (2), the Board will compile and maintain a current index setting forth in detail the information, records, and other data which will be made available to the public.

$ 200.22 Requests for inspection of said person, the requested record to that records.

extent will be made available for inspec(a) Place, time, etc. Requests for in

tion. To the extent that the decision is spection and copying of records may be

adverse to the request, the reason(s) for filed, in person or by mail, with the Di

the denial will be stated. A decision upon rector of the Office of Public Affairs, Pay

review as provided herein shall constiBoard, 2000 M Street NW., Washington,

tute the final action of the Board as to DC, between 8:30 a.m. and 5 p.m., Mon

the availability of a requested record. day through Friday, except holidays. $ 200.28 Fees. (b) Forms, identification of informa

The Executive Director of the Board tion. Such requests shall be made on a

will establish such fees and charges for specified Pay Board form, and should identify with specificity the documents

record searching, reproduction, and reor other information sought. Copies of

lated expenses incurred with respect to that form will be available in the Office

records made available to the public as is

deemed reasonable and appropriate. If of Public Affairs.

the Director, or his designee, determines $ 200.23 Records not sufficiently identi- that a record can be furnished without fied.

significant disruption of other business If a record cannot be identified, the

activities (and the record may otherwise request will be returned to the person

be disclosed), he may make it available who initiated it and he will be advised

without charge. why the record is not identifiable and what additional clarification, if any, he

PART 201—STABILIZATION OF may submit to assist in its identification.

WAGES AND SALARIES $ 200.24 Records not in possession of

Subpart A Introduction Pay Board.


201.1 Purpose. If the record is not in the Board's pos- 2012 Extent to which the regulations session, the person initiating the request

under this chapter supersede or will be so notified.

affect prior regulations and other

published matter. $ 200.25 Determination of availability 201.3 Definitions. of records.

Subpart B-Pay Stabilization If the record is of the nature described

201.10 General wage and salary standard. in 5 U.S.C. 552 (b) (1)-(9) or is otherwise

201.11 Criteria for exceptions. not available, the requesting party will 201.12 Reduction of wages and salaries.

201.13 be informed in writing of the specific

Scheduled increases in wages and

salaries for services rendered after reason(s) why the record may not be

August 15, 1971, and before Nodisclosed.

vember 14, 1971.

201.14 Wage and salary increases effective $ 200.26 Requests for reconsideration

after November 13, 1971. of nonavailability.

201.15 Unaffected wages and salaries. Any person whose request to inspect a

201.16 Retroactivity; self-determinations; record has been denied because the rec

criteria for severe inequities.

201.17 Violations. ord was not made available for stated reason(s) may request a reconsideration Subpart D-Executive and Variable Compensation of the initial denial. Such reconsidera- 201.71 Scope. tion will be made by the Chairman of

201.72 Definitions.

201.73 Executive salaries and job perthe Pay Board, and will be based upon

quisites. the original request, the denial, and any

201.74 Incentive compensation plans (other written argument submitted by the per

than stock options). son requesting the review.

201.75 Incentive compensation practices $ 200.27 Final determination of avail

(other than stock options). ability.

201.76 Stock options.

201.77 Sales, commission, and production The decision upon review, as provided

incentive plans or practices. for in $ 200.26, will be promptly made in 201.78 New or revised plans or practices. writing and transmitted to the person 201.79 New organizations. requesting such reconsideration. If the 201.80 Employee productivity incentive decision is wholly or partly in favor of

plans or practices.

Appendix A-Policies Governing Pay Ad- provisions of this chapter shall be justments Adopted by the Pay Board No

controlling. vember 8, 1971.

(b) To the extent that neither the Appendix B-Interpretative Decisions

Cost of Living Council nor the Pay Board Adopted by the Pay Board. Appendix C-Definitional Decisions

issues regulations with respect to specific Adopted by the Pay Board.

matters concerning wages and salaries, Appendix DProcedural Decisions Adopted such matters shall continue to be subject by the Pay Board.

to Economic Stabilization Regulation AUTHORITY: The provisions of this part 201

No. 1, as amended, and the circulars issued under Economic Stabilization Act of issued pursuant thereto. 1970, as amended (Public Law 91–379, 84

& 201.3 Definitions. Stat. 799; Public Law 91-558, 84 Stat. 1468; Public Law 92–8, 85 Stat. 13; Public Law For purposes of this part, unless other92–15, Stat. 39), Executive Order No. 11627 wise restricted herein(36 F.R. 20139, Oct. 16, 1971), and cost of “Act” means the Economic StabilizaLiving Council Order No. 3 (36 F.R. 20202,

tion Act of 1970, as amended. Oct. 16, 1971), unless otherwise noted.

“Appropriate employee unit” includes SOURCE: The provisions of this part 201 a group composed of all employees in a appear at 36 F.R. 21791, Nov. 13, 1971, unless

bargaining unit or in a recognized emotherwise noted.

ployee category. Such bargaining unit or Subpart A—Introduction

employee category may exist in a plant

or other establishment or in a depart& 201.1 Purpose.

ment thereof, or in a company, or in an The purpose of these regulations is to industry and shall be determined so as establish rules and standards to stabilize to preserve, as nearly as possible, conwages and salaries, as defined in § 201.3,

tractual or historical wage and salary in accordance with the provisions of

relationships. Executive Order No. 11627 (3 CFR, 1971 “Employment contract” includes, but Comp., 36 F.R. 20139), and to pro

is not limited to, collective bargaining vide guidance and procedures for an

agreements and individual contracts of orderly transition from the 90-day gen

employment. eral freeze imposed by Executive Order

“Party at interest” means: No. 11615 (3 CFR, 1971 Comp., 36 F.R.

(1) A bargaining representative of 15727). All persons are required by

employers who could be required to pay law to comply with the provisions of the

the wages and salaries in question, or in Economic Stabilization Act of 1970 as

the absence of such bargaining repreamended, and all Executive orders, regu

sentative, an employer who could be relations (including this regulation), circu

quired to pay the wages and salaries in lars, and orders issued thereunder, and

question; or all persons are expected to comply vol

(2) A bargaining representative of untarily with such law, orders, and

employees who could receive payment of regulations. The policies governing pay

wages and salaries in question, or in the adjustments, adopted by the Pay Board

absence of such bargaining representaon November 8, 1971, are attached as tive, an employee who could receive payAppendix A to this part. Appendix B and

ment of wages and salaries in question. Appendix C are attached to include In

Person” includes any individual, terpretive Decisions and Definitional estate, trust, partnership, association, Decisions, respectively, which have been company, labor organization, State or adopted by the Pay Board.

local governmental unit or instrumental[36 F.R. 21791, Nov. 13, 1971, as amended at

ity of such governmental unit, but does 36 F.R. 21952, Nov. 17, 1971)

not include a foreign corporation in a

foreign country, a foreign government, 8 201.2 Extent to which the regulations

an instrumentality of a foreign governunder this chapter supersede or affect

ment, or an organization that includes prior regulations and other published within its membership foreign governmatter.

ments or instrumentalities thereof. (a) To the extent that any provision “Tandem relationship” means, for purof Economic Stabilization Regulation poses of 8 201.13(c), a well-established No. 1, as amended (32A CFR, Ch. I), or and consistently maintained practice any provision of the circulars issued pur- whereby the precise timing, amount, and suant thereto is inconsistent with the nature of general increases in wages and provisions set forth in this chapter, the salaries of a given appropriate employee

unit have so followed those of another such unit of employees of the same employer or of other employers within a commonly recognized industry (such as standard industrial classification twodigit category) that a general increase, in the normal operation of the practice, would have been put into effect and have been applicable to work performed on or before November 13, 1971, but for the operation of the freeze.

“Wages and salaries" include all forms of direct and indirect remuneration or inducement to employees by their employers for personal services, which are reasonably subject to valuation, including but not limited to: Vacation and holiday payments; bonuses; layoff and severance pay plans; supplemental unemployment benefits; night shift, overtime, and incentive pay; employer contributions for insurance plans (but not including public plans, e.g. old-age, survivors, health, and disability insurance under the Social Security system, Railroad Retirement Acts, Federal Insurance Contributions Acts, Federal Unemployment Tax Acts and Civil Service Retirement Acts); savings, pension, profit sharing, annuity funds, and other deferred compensation and welfare benefits; payments in kind; job prerequisites; housing allowances; uniform and other work clothing allowances (but not including employer-required uniforms and work clothing whether or not for safety purposes); cost-of-living allowances; commision rates, stock options, and other fringe benefits; and benefits which result in more pay per hour or other unit of work or production (e.g. by shortening the workday without a proportionate decrease in pay). [36 F.R. 21791, Nov. 13, 1971, as amended at 36 F.R. 23219, Dec. 7, 1971; 36 F.R. 25428, Dec. 31, 1971]

Subpart B-Pay Stabilization 8 201.10 General wage and salary stand

ard. Effective on and after November 14, 1971, the general wage and salary standard (hereinafter referred to as the "standard") is established as 5.5 percent. The standard shall apply to any wage and salary increase payable with respect to an appropriate employee unit pursuant to an employment contract entered into or modified on or after November 14, 1971, or to a pay practice established, modified or administered with discretion on or after November 14, 1971. Except as

otherwise provided in the Regulations under this title or by decision of the Pay Board, the standard shall be used to compute the maximum permissible annual aggregate wage and salary increase. The appropriateness of the standard will be reviewed periodically by the Pay Board to insure that it is generally fair and equitable, that it calls for generally comparable sacrifice by business and labor as well as other segments of the economy and that it takes into account such factors as changes in productivity and the cost of living as well as other factors consistent with the purposes of the Act. [36 F.R. 25428, Dec. 31, 1971) $ 201.11 Criteria for

Criteria for exceptions. (a) In general. Subject to the provisions in paragraph (c) of this section, on and after November 14, 1971, wage and salary increases in excess of the standard shall be permitted pursuant to the following criteria for exceptions

(1) Tandem relationships. (i) If a party at interest demonstrates to the Pay Board (or its delegate) that,

(a) the wage and salary increase in the employment contract or pay practice to which a tandem relationship is claimed is in excess of the standard;

(6) such contract or pay practice became effective not more than 6 months prior to the proposed effective date of the wage and salary increase in the tandemclaiming unit;

(c) the amount and nature of the wage and salary increases in the tandem-claiming unit have been generally equal in value to and the timing has been directly related to those of another unit of employees of the same employer or of other employers within a commonly recognized industry or local labor market area; and

(d) the tandem relationship has been established as a past pactice for 5 consecutive years or in the immediately preceding two consecutive collective bargaining agreements.

(ii) The maximum permissible annual aggregate wage and salary increase pursuant to this subparagraph shall not exceed 7 percent.

(iii) The provisions of this subparagraph shall be subject to periodic review by the Board.

(2) Essential employees. (i) If an employer demonstrates to the Pay Board (or its delegate) that,

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