(E) The Pennsylvania Greyhound and the Street Electric Railway Workers (AFL) escalator plan is contingent on the continuation of the old Consumers' Price Index, and may involve termination if there is disagreement on a conversion formula:

Continuance of the cost-of-living allowance shall be contingent upon the continued availability of official monthly Bureau of Labor Statistics Price Index in its present form and calculated on same basis as Index for September 1950, unless otherwise agreed upon by parties.

(F) The Landers Corp. and the Textile Workers Union (CIO) provide for complete termination of the escalator provision if there is any change in the form of the Consumers' Price Index:

This cost-of-living allowance is dependent upon the availability of the official monthly BLS Consumers' Price Index in its present form and calculated on the same basis as the June 1950 Index. It is hereby understood and agreed to by both parties to this agreement that this entire section (6) terminates if: (1) The BLS Consumers' Price Index is discontinued, or

(2) Its method of calculation changed, or

(3) The base period is changed (1935-1939=100). (G) Specific plans for converting from the "old" to the "new" or adjusted index have already been worked out by some employers and unions. A notable example is the General Motors-UAW (CIO) "Memorandum of Understanding" of March 3, 1951. This provides for use of the "old" index until it is discontinued by the Bureau of Labor Statistics. Thereafter, the "new" or adjusted index is to be used:

4. If, in this transition, any disparity in Index points exists between

(i) the "Old" Index, for the last month of its issuance, plus the "new unit rent bias" correction in effect at the time . . . and

(ii) the "New" Index . . . for the same month, the index points brackets in the table in Paragraph 101 (g) of the May 29, 1950, National Agreement between the parties, shall be adjusted up or down, as the case may be, by the amount of such disparity, if any, so that the transition, as such, from the "Old" Index to the "New" Index will not increase or decrease the amounts of the Cost-of-Living Allowances provided for in Paragraph 101 (g) of the National Agreement between the parties.

5. It is understood that either party may at any time initiate discussion concerning changing from the "Old" Index to the "New" Index.

Under the GM-UAW conversion formula, a change-over from the "old" to the adjusted CPI would be comparatively simple, given the cut-off date. If, for example, March 15, 1951, had been the conversion date and, allowing for the 0.8 point "new unit rent bias" correction adopted by General Motors and the UAW, the method would be:

184. 5 (U. S. Average, All Items (Old CPI-315-51))

+0.8 (Correction for new unit rent bias)

Neither the cost-of-living allowance nor the spread of 1.14 index points within each bracket is changed by the transition to the new index.

Several important considerations are involved in converting from the "old" to the adjusted CPI: (1) The conversion should be made in a period for which both "old" and adjusted series are published.

(2) The spread between the "new" and the "old" series should be considered in adjusting the base figure. One way of doing this is the General Motors-UAW method previously described. An alternative is available, if the date of the base figure in the current contract is January 15, 1950,

or later, inasmuch as the Bureau of Labor Statistics has computed both the "old" and "new" series of the CPI as far back as that date. In such cases the parties to the contract could substitute the adjusted CPI for the "old" CPI of the base date, and thereafter measure change according to the adjusted CPI.

(3) If a correction has been added to the "old" index for the downward bias in the rent index (as in the GM-UAW, Pennsylvania GreyhoundStreet Electric Railway Workers, and other contracts), allowance should be made for it in converting to the "new" index, which has been corrected to eliminate the understatement of the rent component.

(4) Since the spread between the "old" and "new" series may vary from month to month, the choice of date for converting to the adjusted series is an important factor.

(5) If the original ratio of wage adjustments to point changes in the CPI was derived from average hourly rates and an "old" CPI, a new ratio, based on the new adjusted index may have to be calculated, although the difference would probably be insignificant. For example, the CPI for January 1950 was 166.9 computed under the old and 168.2 under the new method. If average hourly rates were $1.50, the ratio of hourly wage adjustment to index change would be 1 cent to 1.11 points (166.9÷$1.50) if the old CPI were used and 1 cent to 1.12 points (168.2÷$1.50) if the adjusted CPI were used.

(6) Where percent changes, either in wages or the CPI or both, are involved in any wage adjustment clause, the conversion problem is relatively simple. The parties could substitute the adjusted CPI for the "old" CPI of the current date, and thereafter measure percentage wage or index changes according to the adjusted CPI.

"Of the Bureau's Division of Prices and Cost of Living and Division of Industrial Relations, respectively.

1 This estimate represents the minimum coverage of workers by cost-ofliving escalator provisions in collective bargaining agreements. The estimate is based on labor contracts on file with or otherwise available to the Bureau of Labor Statistics. It is probable that similar provisions exist in some additional contracts, especially for smaller companies, that have not come to the attention of the Bureau.

The estimate includes workers covered by several important contracts which are under review by the Wage Stabilization Board. On April 25, 1951, the Economic Stabilization Administrator approved an increase of 6 cents an hour for the million or so railroad nonoperating workers covered by the largest of these contracts. This increase, which exceeded the 10 percent ceiling set by General Regulation No. 6, was made on the recommendation of a special railway labor panel appointed by the Administrator.

2 The 1 cent to 1.14 point ratio first appeared in the General MotorsUnited Automobile Workers' agreement of May 1948 and was obtained by dividing the average hourly rate of GM workers (approximately $1.485 in the spring of 1948) into the National CPI for April 15, 1948 (169.3).

Over a million workers-most of them railroad nonoperating employeesare covered by contracts providing for quarterly wage adjustments in April, July, October, and January, based on the CPI for February, May, August, and November, respectively. Contracts between the UAW-CIO and large automobile and machinery companies provide for a quarterly review of wages in March, June, September, and December, based largely on the CPI for January, April, July, and October, respectively. These metalworking contracts, together with textile and a scattering of other agreements, bring the total number of workers eligible for adjustments in March and each third month thereafter to well over a million. Relatively few workers receive wage adjustments during the other four months of the year.

For a full discussion of the nature of the adjustment, see Interim Adjustment of Consumers' Price Index by Doris P. Rothwell of the Division of Prices and Cost of Living in the April 1951 Monthly Labor Review.

See Monthly Labor Review, July 1948 (p. 3) for original schedule of cost-of-living allowances continued in the May 1950 agreement.

941298-51-2

Work Stoppages During 1950

ANN J. HERLIHY*

WITH THE GENERAL UPTURN in business activity in 1950, labor-management tensions, which in recent years had gradually subsided from their wartime peak, became more evident, especially in certain industries. As a result, the number of strikes increased sharply to near-record levels.1

Proposals for improved health, insurance, and/or pension plans, which had been accelerated in 1949, continued to be prominent in many important collective-bargaining negotiations in 1950, especially during the first 6 months. In many instances, such benefit plans were established by agreements, without resort to work stoppages, in such diverse industries as automobiles, apparel, textiles, rubber, public utilities, and flat glass. Also covered by employee-benefit agreements were industries characterized by casual employment (e. g., building trades, longshoring, maritime, etc.) in which few, if any, insurance or pension programs existed prior to 1950. These issues, either alone or combined with wage demands, accounted for more than 50 percent of the total strike idleness during the year.

In the field of wages, the General Motors 5year agreement with the United Automobile Workers (CIO), harmoniously concluded on May 24, gave prominent evidence of the effect that expanding business activity and sustained near-capacity production levels had on labor-management relations. The agreement retained the cost-ofliving wage provisions, increased the annual improvement factor, provided for a pension fund,

*Assisted by BERNARD YAPROFF and DANIEL P. WILLIS, JR., of the Bureau's Division of Industrial Relations.

and established a modified union shop. This set tlement influenced the peaceful conclusion of wage agreements by the Chrysler Corp. on August 25, and the Ford Motor Co. on September 4, as well as in a number of other industries.

After the outbreak of the Korean war in mid1950, demands for wage increases came to the forefront. Unions, anticipating early institution of Federal wage controls with a resultant loss in real earnings because of rising prices, proposed and, with few exceptions, obtained wage increases substantially greater than those sought in the first 6 months.

Few serious breakdowns in collective bargaining occurred in 1950, despite the large number of stoppages. Significant exceptions were the widespread coal stoppage continuing from 1949; several walkouts by railroad employees; prolonged strikes at the Chrysler Corp., International Harvester Co., and Deere & Co.; and disputes affecting large numbers of workers at General Electric Co., Western Electric Co., and at various construction projects.

The 4,843 work stoppages recorded in 1950 exceeded by a third the 3,606 counted in 1949.2 This was in marked contrast to the relatively even and substantially lower strike levels of the postwar years after 1946 when the all-time high of 4,985 strikes was recorded. However, the number of workers involved was lower in 1950 than in 1949-2,410,000 compared with 3,030,000.3 Man-days idle also declined-23 percent-from 50.5 millions in 1949 (the second highest figure on record) to 38.8 million in 1950.

In the first 3 months of the year, strikes declined slightly below levels in corresponding periods in 1947 and 1949. In the second quarter, following customary patterns of increasing labormanagement contract negotiations, strikes rose substantially and continued upward in the summer and early autumn. Although the number of controversies declined seasonally in the final quarter of the year, it was higher than in comparable periods of the preceding postwar years (1946-49).

Twenty-two stoppages in 1950 involved 10,000 or more workers, compared with 18 stoppages in 1949, 20 in 1948, and 15 in 1947. On the other hand, approximately half the 1950 strikes involved

fewer than 100 workers each. These accounted for a relatively small proportion of workers and man-days idle, in contrast to the 22 large stoppages which included almost a third of all strike participants and over half the aggregate idleness (table 1).

Average duration of all strikes declined to 19.2 calendar days in 1950, the lowest level in recent postwar years. Strike duration for 1946, 1947, 1948, and 1949 was, respectively, 24.2, 25.6, 21.8, and 22.5 days. The 1950 decline was attributable to the large proportion of relatively brief strikes and the absence of long Nation-wide strikes (except coal) involving large numbers of workers.

"National Emergency" Disputes

Labor-management disputes, generally designated as "national emergency" disputes, are of two types: (1) Disputes specified in the Labor Management Relations Act as imperiling the "national health and safety" and (2) disputes designated under the Railway Labor Act "which threaten substantially to interrupt interstate commerce to a degree such as to deprive any section of the country of essential transportation service."

During 1950, the national emergency procedures provided under the Labor Management Relations Act were invoked only once-in connection with the protracted bituminous-coal dispute. No recourse was made to this machinery in 1949; in 1948 it had been invoked on seven occasions, four of which resulted in work stoppages.

Bituminous-Coal Controversy. The coal stoppage first began in September 1949 as an industrywide walkout over new contract terms and continued for approximately 6 weeks. Subsequently sporadic stoppages recurred in various coal fields until the first week of February 1950 when the stoppage again became general throughout the industry. The major issues centered on the union's demand for (1) increased employer contributions to the union pension and welfare fund, (2) wage increases, and (3) a reduction in the workday. The mine operators insisted on elimination of certain provisions previously included in the contract, e. g., the union-shop clause, the "willing and able" to work clause, and the clause permitting the union to halt work during "memorial periods." On February 6, 1950, after all efforts to obtain voluntary agreement between the coal operators and the United Mine Workers (Ind.) had failed, the President invoked the national emergency provisions of the Labor Management Relations Act and appointed a board of inquiry to investigate the dispute and report by February 13.

The Board's report, submitted on February 11, noted that immediate settlement of the dispute was unlikely. A court restraining order, issued the same day, directed that the strike be discontinued and production resumed for a 10day period (later extended for the full 80 days provided by law). The miners' refusal to return to work, despite instructions by their president calling for compliance with the court order, resulted in contempt charges filed against the union on February 20. When the proceedings were dismissed on March 2 on the ground that the charges had not been supported by sufficient evidence, President Truman recommended to Congress that the mines be seized by the Government. Such action was made unnecessary by settlement of the dispute on March 5.

The agreement provided for increases of 70 cents in the basic daily wage and of 10 cents per ton-from 20 to 30 cents-in the employers' payment into the welfare and retirement fund; continuance of the union shop "to the extent. permitted by law"; limitation of memorial period stoppages; and elimination of the "able and willing" clause. The new contract, effective until July 1, 1952, permitted reopening on wage questions after April 1, 1951.*

Railroad Disputes. During 1950, several serious work stoppages and one critical Nation-wide strike threat involved the railroad industry. Three of these disputes, two of which resulted in Federal seizure of railroad properties, are described here.

DIESEL CASE: A 7-day strike by 18,000 members of the Brotherhood of Locomotive Firemen and Enginemen beginning on May 10, idled approximately 175,000 workers on five large railroads: the Pennsylvania; New York Central; Southern; Atchison, Topeka and Santa Fe; and Union Pacific. (The last-named system became involved when its firemen refused to operate trains over Santa Fe tracks.)

The dispute involved a long-standing union proposal, twice refused by Presidential emergency boards, that an extra fireman (helper) be placed on multiple-unit Diesel locomotives as an added safety measure. However, the specific terms of the settlement, reached on May 16, did not deal directly with this issue. The parties agreed to correct some wage differentials for firemen on different types of locomotives. They also agreed to arbitrate a union claim that employment of "special duty" men, instead of firemen, to perChart 1. Trends in

form certain maintenance work on high-speed passenger Diesel locomotives violated the terms of existing agreement; and on the question of employing firemen on small switching Diesels.

SWITCHMEN'S CASE. The strike of members of the Switchmen's Union of North America (AFL), which occurred June 25 on 5 western and midwestern railroads, idled approximately 59,000 workers. It followed the union's rejection of an emergency board's recommendations to reduce the workweek for yard-service employees from 48 to 40 hours, with a partially compensating wage increase of 18 cents an hour. It was largely terminated on July 6 when the union ordered resumption of work on four of the railroads. However, continuance of the walkout on the Chicago, Rock Island and Pacific Railroad, resulted in an Executive Order (on July 8), directing the Army to seize and operate this road.

The men returned to their jobs in compliance with a Federal District Court order issued on the same day. Settlement of the dispute occurred on September 1 when the union and 10 western and midwestern railroads agreed to a 3-year contract which provided for a wage increase of 23 cents an hour and a cost-of-living escalator clause. Work Stoppages

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1920

1925

UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS

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