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The increase that we are requesting is because of the increasing role that we are being called upon to play and the increasing importance of this factor in general.

Mr. Chairman, if you would like me to go into any more detail I would be happy to do so.

EXPLANATION OF HOW INCREASED FUNDS WOULD BE SPENT

Senator HILL. Just give a detailed statement of how these increased funds you are asking for would be spent.

Mr. LODGE. Yes, sir. Four of the eight new professional positions would be in our Office of Country Programs. The addition of these four area specialists, as we call them, would mean that we would have one full-time, permanent employee of the Department for each geographic area. His job would be to collect this information from our labor attachés, from the American labor movement, from a number of sources, and to analyze it and then to develop recommendations for foreign policy development. These are the men who would sit on the working groups and councils of the Government developing foreign policy.

The number of such working groups and committees on which we have been called upon to participate has doubled in the past year, and these are important groups wherein policy for each country is being developed. So four of these new positions would be in that Office of Country Programs development.

NEW POSITIONS NEEDED

One additional position would be in our Office of International Organizations Affairs which handles the labor aspects of the United Nations activity and the specialized agencies, particularly the International Labor Organization. In recent years we have endeavored to take even more active leadership in the ILO and I think we have been successful in a number of ways. Last year we led the move resulting in the rejection of the credentials of the Hungarian Government. We have brought the issue of forced labor to a head in the ILO, much to the embarrassment of the Soviet Union.

We have I think tended to develop our participation in the ILO so that the objectives that we are seeking to accomplish in that organization are being accomplished. However, as we take this role of leadership we do need a great deal more staff assistance to prepare the work, do the research, and we are asking for one more man. I might say that we are also being called upon to participate more actively in the development of U.S. policy toward the United Nations and the Economic and Social Council.

We are asking for two new positions for our Office of International Personnel and Management. This office is responsible for our part of the labor attaché program. It is responsible for the recruitment of Americans to serve abroad in the international labor field. Here again this is a rapidly growing situation.

Last year there were 44 labor attachés. If Congress approves the State Department's budget request this year, there will be 62. This means that under the agreement that we have with the State Department we are responsible for assisting in the recruitment of these men,

and we have been trying to do an exceptionally good job, if I may say so, sir, in getting top-notch people for these jobs, and it is very timeconsuming.

Also an example of the increased workload is the briefing and the training that we are called upon to give Foreign Service officers going abroad and the briefings to Ambassadors. For example, in 1958 we briefed six Ambassadors. In 1959, we briefed 21. This is the kind of increased staff assistance which we have been called upon to give.

We service the labor attachés abroad and as the numbers of these men increase, the requests and the need for backstopping increases, and that is why we are asking for two new positions there.

The other position is in the area of foreign trade and tariff. The General Agreement on Tariffs and Trade negotiations which will be going on this year will take the one man which we have had working on this out of the office for almost 6 months of the year. The rapidly increasing significance of this whole trade and tariff problem, particularly as it bears on labor, is going to mean that we are going to have a very heavy workload in that area, and so we are asking for one additional man there.

That makes it eight. The new clerical positions are spread around among those.

FOREIGN TRADE UNIONS

Senator HILL. Mr. Secretary, you made a statement that interested The very much when you spoke about the trade unions of many of these foreign countries being of a different nature, so to speak, from the trade unions that we know and have here in America. I wish you would amplify on that a little bit.

Mr. LODGE. Yes, sir; I would be glad to, Mr. Chairman. It might be well to take an example of India. The trade union movement of India, and this is typical of many, many countries in Asia, Africa, and Latin America, first of all was not a mass movement in the sense that it grew out of the needs of a congested mass of factory workers, as did the trade unions of Western countries.

It was a movement largely superimposed on a not unreceptive rural population by intellectuals, reformers, and independent political Leaders. Mahatma Gandhi was very active in the early days of the formation of Indian labor federation. The economic function in these labor movements necessarily is minimal because the wealth of the ration of course is not great and so their collective bargaining opera*ions are scanty.

What they are, however, is one of the few, if not in some cases the only, organization in a very unorganized society that has taps into The people, and to the working people, and they more or less serve he function of a Community Chest, the Red Cross, a fraternal organization, in some ways a religious organization, and a social welfare organization.

POLITICAL FUNCTIONS OF UNIONS

They are everything rolled into one with a little bit of collective argaining thrown in where the industry can afford it. Of course, as these countries develop the economic aspect of it will increase, but

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their main function actually, and I should have put this first, is their political function, because they operate as the machines of the political parties.

They are financed largely by the political parties and they are what we would call the machine of the party.

Senator HILL. The organization.

Mr. LODGE. The organization; that's right. Of course that means that the presidents of these countries and the political leaders of these countries by and large come out of these organizations and so they are extremely important for us to know about, be aware of, and

be sensitive to.

Senator HILL. You brought us a most interesting and, I would say, most enlightening statement.

Is there anything you would like to add now, Mr. Dodson?

Mr. DODSON. No, sir; except I think this concludes our group of witnesses and I want to say that I appreciate the understanding manner in which you have received all of our witnesses.

Senator HILL. Thank you, sir. We have been very happy to have you here and you are always most helpful, and we are certainly delighted to have you here, too, Mr. Secretary.

Mr. LODGE. Thank you very much, Mr. Chairman.
Senator HILL. Thank you very, very much.

NATIONAL LABOR RELATIONS BOARD

STATEMENT OF HON. BOYD LEEDOM, CHAIRMAN; ACCOMPANIED BY STUART ROTHMAN, GENERAL COUNSEL; AND CLARENCE S. WRIGHT, ACTING DIRECTOR, DIVISION OF ADMINISTRATION

APPROPRIATION ESTIMATE

"NATIONAL LABOR RELATIONS BOARD

"SALARIES AND EXPENSES

"For expenses necessary for the National Labor Relations Board to carry out the functions vested in it by the Labor-Management Relations Act, 1947 as amended (29 U.S.C. 141-167, 73 Stat. 541-546) and other laws, including rental of [temporary] space in the District of Columbia area, and uniforms, or allowances therefor, as authorized by the Act of September 1, 1954, as amended (5 U.S.C. 2131), [$14,230,000】 $17,300,000: Provided, That no part of this appropriation shall be available to organize or assist in organizing agricultural laborers or used in connection with investigations, hearings, directives, or orders concerning bargaining units composed of agricultural laborers as referred to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152), and as amended by the Labor-Management Relations Act, 1947, as amended, and as defined in section 3(f) of the Act of June 25, 1938 (29 U.S.C. 203), and including in said definition employees engaged in the maintenance and operation of ditches, canals, reservoirs, and waterways when maintained or operated on a mutual, nonprofit basis and at least 95 per centum of the water stored or supplied thereby is used for farming purposes.

"[For an additional amount for 'Salaries and expenses', including rental of office space in the District of Columbia, $500,000.]”

[blocks in formation]

Enacted appropriation fiscal year 1960_.

Supplemental appropriation proposed for later transmission_.

[blocks in formation]

$14,730, 000 750,000

15, 480, 00017, 300, 000

+1,820,000

+282, 800 53, 500 1, 483, 700

1, 820, 000

A. Mandatory items:

DETAIL OF CHANGES

I. Annualization of 1960 grade and within-grade promo-
tions to a full-year basis in 1961 (promotions effective
at various times during 1960 require funds for a full
year in 1961; provision has been made in this cate-
gory for 287 grade promotions and 535 within-grade
promotions) __

II. Cost of 275 within-grade promotions expected to be-
come effective during 1961_.

III. 1 less day of pay (in 1960 employees on the rolls for
the full year will be paid for 262 days; in 1961 such
such employees will be paid for 261 days).
IV. Cost of the new employee health benefits program (Pub-
lic Law 86-382) which becomes effective July 1, 1960–
V. Annualization of salary rate increases made effective
during 1960 by the International Wage Board___.

Total mandatory items..

B. Administrative items:

I. Cost of 80 grade promotions expected to be made during
1961___.

Total administrative items_.

C. Program items:

I. It is estimated that about 450 more cases will be investigated in 1961 than in 1960; about 250 of these will involve unfair labor practice charges, and about 200 will involve representation petitions; after investigation these cases will either be withdrawn, settled, dismissed, or prepared for for formal processing 1.

1

II. It is estimated that about 115 more trial examiner hearings
will be held and about 135 more intermediate reports will
be issued in 1961 than in 1960____.
III. It is estimated that about 420 more contested cases will be
adjudicated by the Board in 1961 than in 1960; about 195
of these will involve unfair labor practice charges and
about 225 will involve representation petitions__
IV. The number of cases requiring followup action to secure com-
pliance with Board orders is expected to be about 280
greater in 1961 than in 1960; about 210 of these will involve
unfair labor practice charges and about 70 will involve
representation petitions; the number of cases requiring
court litigation is expected to be about 30 higher in 1961
than in 1960---

Notes: (a) Included in the above items is an in-
crease in the cost of office space rent in Washington,
D.C., from $240,000 in 1960 to $715,000 in 1961.

(b) The number of employees in the 1961 estimate is the same as in 1960; all of the man-year increases in the budget represent annualization of 1960 employment.

Total program items_

+$181, 550

+28, 350

-31, 500 +104.000

400

+282, 800

53, 500 +53, 500

+127, 400

+346, 700

+178, 200

+291, 400

+1,483, 700

1 Formal processing includes issuance of a complaint; trial examiner hearings and intermediate reports: adjudication by the Board; and securing of compliance with Board orders. Litigation in the courts is involved in about 25 percent of the unfair labor practice cases which require compliance action.

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