The Labor Month in Review

THE UPWARD MOVEMENT of prices and wages continued in December 1950. The first mandatory price and wage orders froze December 1 prices and wages in the passenger automobile industry until March 1, 1951, pending the working out of control policies and the organization of administrative machinery. A mediated agreement in the disputes of railroad operating employees was rejected by the unions. Employment changes were mainly seasonal but were influenced by conversion plans and scattered shortages of materials. The manpower program included plans for regional and area labor-management committees. Unions organized a United Labor Policy Committee.

Continued Rise of Prices and Wages

Prices continued their advance. The November consumers' price index reached a new peak, 0.5 percent above the October level and 3.2 percent higher than in June. After November 15, food prices advanced sharply, contrary to seasonal trends. The general index of wholesale prices rose 2.3 percent in the 4 weeks ending January 2, reaching a new peak 12.6 percent above the May 24-June 24 average.

There were many scattered wage increases which included some voluntary reopenings of wage contracts and some additions to the already large number of agreements with cost-of-living escalator clauses and annual improvement factors. Thus, the Chrysler Corp. on December 11, for the second time in 1950, voluntarily modified its contract with the United Automobile Workers by bringing it substantially into line with the General Motors and Ford agreements. Cost-of-living and improvement factor clauses were included and the contract period was extended to August 31, 1955.

The Price-Wage Stabilization Program

The Economic Stabilization Agency on December 17, 1950, issued its first price control order.

Following announcements of price increases on passenger automobiles, it froze prices at December 1 levels until March 1, 1951. The price order was followed on December 22, upon recommendation by the Wage Stabilization Board, by a freezing of wages in the industry until March 1. "Fair standards" for voluntary price control published on December 19 requested that prices generally be stabilized at substantially the December 1 levels, subject to the specified standards. It was widely assumed that mandatory general regulation of both prices and wages awaited the formulation of policies and the organization of administrative machinery.

The price and wage orders applying to the automobile industry were particularly significant because of the prevalence in that industry of collective agreements which provide for flexible wage adjustments. Officials of some of the companies and of the United Automobile Workers and other unions expressed grave concern over the effects certain proposed price and wage stabilization policies might have on these contractual arrangements.

Employment and the Manpower Program

The rapid rise in employment during recent months showed signs of leveling off in November and December. Some lay-offs were attributed to scarcity of materials. Nonfarm employment in November was at almost the same level as in October. Changes in the industry distribution of employment were mainly of a seasonal nature. The December labor force report reflected a sharp seasonal drop in farm employment and a rise, largely seasonal, of 354,000 in nonfarm employment. The number unemployed was 2,229,000, virtually the same as in November.

Preparation for expanded defense production, still largely in the planning stage, included arrangements for setting up management-labor manpower committees in 13 regional centers, conforming to the general plan for defense agencies, and in all labor-market areas in which significant manpower problems exist or may arise. These committees, together with the national committee, will emphasize the working out of programs of labormanagement cooperation to reduce job shopping, prevent labor pirating, promote maximum utilization of manpower resources, and aid in develop

ing needed community facilities such as transportation, housing, and childcare.

The United Labor Policy Committee

The need of unions for collaboration during the national crisis brought about the formation in mid-December of the United Labor Policy Committee. The committee of 14, representing the AFL, CIO, Machinists, and the Railway Labor Executives Association, includes the heads of these groups.

Unions have contended that public agencies should have a larger representation of union officials at the higher policy-making levels. The United Labor Policy Committee, however, will have no direct relationship to any Government agency. It is designed for the purpose of working out agreements among unions as to major public policies, particularly in such fields as manpower, production, wages, prices, and the appointment of union officials to public posts.

An early step taken by the committee was the presentation to the President of the committee's views on economic stabilization. Wage stabilization, the committee stated, calls for removal of limitations on the control of prices, especially of foods and housing. It was asserted that the invalidation of existing collective agreements, such as those providing for future wage adjustments, would lead to industrial unrest and defeat the aim of stabilization. Contractual and legal arrangements for premium pay should be held inviolate because they provide a stimulus for lengthening the workweek and increasing production. The Wage Stabilizatior Board, the committee further stated, should be made more than an advisory group and be given explicit authority in its field.

Railroad Labor-Management Disputes

Negotiations by unions of operating employees with the railroad companies, beginning in 1949, had been accompanied by the rejection of emergency board recommendations, strike notices for August 28 by the unions of conductors and trainmen, and the taking over of the railroads by the

Government on August 27. Unrest among yardmen over the long-deferred settlement led in mid-December to brief scattered walkouts.

Renewed mediation efforts brought about a 3-year agreement on December 21, retroactive to October 1, with representatives of the engineers and the firemen and enginemen, as well as the conductors and the trainmen. The agreement included compromise wage increases, a few changes in rules, a cost-of-living escalator clause, and certain conditional clauses relating to a deferred 40-hour week for yardmen, some additional rules changes for roadmen, and an improvement factor. The disputes remained unsettled, however, because the unions directed their negotiators to seek better terms.

Other Labor Developments

The President, on January 10, 1951, signed a bill authorizing unions covered by the Railway Labor Act to bargain collectively for a union shop and check-off of dues. This right, limited by the requirement of union shop elections, is available to other unions under the Labor Management Relations Act.

Work stoppages in December, as in recent earlier months, were generally small and of short duration. The Deere & Co. strike, by members of the United Automobile Workers, lasted 107 days and involved about 13,000 workers. It was ended on December 16 by an agreement on substantial wage increases.

The president of the International Association of Machinists announced on January 4 that the members of his union had voted by a large majority to reaffiliate with the AFL. Earlier negotiations had adjusted long-standing jurisdictional disputes with the International Brotherhood of Carpenters.

The International Confederation of Free Trade Unions adopted early in December a Southeast Asia program recommended by an ICFTU mission of last fall. The program calls for ICFTU information and advisory centers, labor colleges, active participation in UN work in that region, and measures to combat reactionary labor policies.