standards, that this does not preclude us from paying the rates and applying the Fair Labor Standards Act to those people working on our base. Accordingly, this legislation would relieve a great deal of doubt as to our position in the operation of our bases and in the construction of any potential bases that we might have in being. That is about as general as I can get. But I believe it covers the problem that we are faced with. In Okinawa we do not think that the Fair Labor Standards Act applies. However, this area of doubt applies to Okinawa as well as to Japan or any other country wherein we have bases being constructed, and perhaps some degree of commerce that would warrant the applicability of the Fair Labor Standards Act. We feel that an uncertainty has been created, an uncertainty that has been in existence for a number of years now, and that we can operate better, we can have better relations with our allies, we will understand the proposition better if it is clarified. This bill clarifies it. We think we need it. We think we need it right now. Mr. CHUDOFF. Mr. Chairman, could I ask one question? Mr. ELIOTT. Yes. Mr. CHUDOFF. Colonel, it appears that both you and Admiral Parks are concerned about the military problems in these various bases, and that as far as you are concerned, as far as the Department of Defense is concerned, as long as we maintain the status quo as far as the military is concerned with the hiring of employees, you have no objection to what we do with the bills as far as private industry is concerned. Is that correct? Colonel HERR. Our client is the Secretary of Defense. Our interest is in preventing defense money from being used in a way that would dissipate it and would not benefit the United States or our purposes. Accordingly, we have no voice one way or the other on the question of the commercial aspects of it. Mr. CHUDOFF. Thank you, Colonel. Mr. ELLIOTT. Do you have any questions? Mr. LANDRUM. No questions. Mr. ELLIOTT. Any questions? Mr. Coon. No questions. Mr. FJARE. No questions. Mr. ELLIOTT. Thank you very much, Colonel Herr. Mr. CHUDOFF. Mr. Chairman, Congressman Roosevelt had to leave, and he asked me to offer for the record a communication addressed to Walter J. Mason, legislative representative of the AFL-CIO, in response to a communication addressed to the Embassy of the Philippines. And the answer is from the Minister-Counselor. Mr. ELLIOTT. Without objection, the letter will be made a part of the record at this point. (The letter referred to follows:) Mr. WALTER J. MASON, EMBASSY OF THE PHILIPPINES, Representative, Legislative Department, American Federation of Labor and Congress of Industrial Organizations, Washington, D. C. My DEAR MR. MASON: In compliance with your request made to Dr. Urbano A. Zafra of this Embassy, I take pleasure in giving hereunder information and data received from the Philippine Government in Manila in connection with the recruitment and employment of Filipino laborers in Guam and Wake Island: 1. Under an exchange of notes between the American Embassy in Manila and the Philippine Department of Foreign Affairs in 1947, the Philippine Government agreed to permit Filipino laborers to be recruited for employment in Guam, Wake, and other islands in the Pacific where the United States Army and Navy have military installations. Approximately 13,000 Filipino laborers are employed in Guam and some 200 in Wake Island. These constitute the bulk of the labor population in these islands. 2. The Filipino laborers were engaged under contract which provided for a minimum wage equivalent to the prevailing Philippine wage rate plus 25 cents overseas differential, free board and lodging, and fringe benefits. 3. Brown-Pacific-Maxon, contractors of United States Navy, employs some 4,000 to 4,500 laborers under various categories; Vinell Reconstruction employs 3,400 in stevedoring and waterfront activities, and also laborers under various categories. Minimum wage paid in both companies, 69 cents per hour, minus 372 cents deducted for services supplied laborers, leaving a net wage of 311⁄2 cents per hour. 4. United States Air Force employs indirectly over 2,000 Filipinos under different categories with a minimum wage of 53 cents per hour, minus $22 a month for board and lodging. 5. Commercial private firms employ about 3,000, with generally higher wages. 6. The Philippine consulate in Guam reports that "practically no Guamanians are receiving less than the minimum wage provided in the Fair Labor Standards Act of 1938, as amended. I trust the foregoing information may be of value to you. I wish to take this opportunity to thank you and your organization for the stand you took at the hearings this morning on the proposed amendment to the Fair Labor Standards Act of 1938, as amended, on behalf of the Filipino laborers in Guam and Wake Island. Sincerely yours, MAURO CALINGO, P. S.-Enclosed is a copy of Ambassador Romulo's note to the Secretary of State dated February 24, 1956, which was inserted this morning in the records of the hearings of the subcommittee by Congressman Roosevelt. Mr. ELLIOTT. Now, is next Wednesday satisfactory with you, Colonel Herr, to come back and discuss first in executive session the classified information that we have referred to? That is next Wednesday at 10 o'clock. Colonel HERR. Yes, sir. Mr. ELLIOTT. Thereafter the representatives of the State Department will be heard. Now, Mr. Derrickson, do we have other witnesses that we can schedule for Wednesday? Mr. DERRICKSON. Yes, sir. We have a witness, Mr. Munro of the labor union concerned in the Canal Zone, and we have the possibility of Mr. Vaiinupo Ala'ilima, and that is all. Mr. ELLIOTT. Very well. The committee will stand adjourned until 10 o'clock Wednesday, and we will expect to have sessions on Wednesday and Thursday of next week. (Whereupon, at 12 noon, the committee was recessed, to be reconvened at 10 a. m., Wednesday, March 7, 1956.) MINIMUM WAGES IN CERTAIN TERRITORIES, POSSESSIONS, AND OVERSEA AREAS OF THE UNITED STATES WEDNESDAY, MARCH 7, 1956 HOUSE OF REPRESENTATIVES, ON EDUCATION AND LABOR, The subcommittee met at 10 a. m., pursuant to recess, in room 429 of the Old House Office Building, Hon. Carl Elliott (chairman of the subcommittee) presiding, Present: Representatives Elliott, Landrum, Chudoff, Roosevelt, Holt, Coon, and Fjare. Present also: Fred G. Hussey, chief clerk; John O. Graham, minority clerk; Kennedy W. Ward, assistant general counsel; and Russell C. Derrickson, chief investigator. Mr. ELLIOTT. The committee will be in order. The schedule, first, this morning is our hearing in executive session of the Navy Department for the Department of Defense on classified matters relating to the subject of this inquiry. We should be finished with the Navy Department in about how long, Admiral Parks? Admiral PARKS. I think it would not take over a half hour. Mr. ELLIOTT. We should be through by 11 o'clock or maybe a little sooner. And if the other witnesses and other parties in interest can return at that time it will be appreciated by the committee. (Whereupon, the committee proceeded in executive session, which proceedings were not recorded, after which the following ensued:) Mr. ELLIOTT. The committee is now in open session, and we will ask Admiral Parks of the Navy Department to summarize the materials that he has brought, in such a manner as not to violate the classification of those materials. STATEMENT OF REAR ADM. JOEL D. PARKS, DEPUTY CHIEF, BUREAU OF SUPPLIES AND ACCOUNTS, DEPARTMENT OF THE NAVY, ACCOMPANIED BY WILLIAM SELLMAN, COUNSEL, BUREAU OF SUPPLIES AND ACCOUNTS; AND T. L. JONES, LABOR RELATIONS OFFICER, BUREAU OF YARDS AND DOCKS, DEPARTMENT OF THE NAVY-Resumed Admiral PARKS. Mr. Chairman, I have summarized in executive session certain classified information showing how much money has been spent and is contemplated to be spent throughout the world in these leased bases in outlying territories of the United States. As the committee has observed, it amounts to many millions of dollars. The result of the application of the minimum wage law to all these areas would result retrocatively in many more millions. It would be difficult to compute the retrocative liability. However, we will en deavor to give you a rough figure. It will be the best we can compute, and it will be something which you can look at and consider. Now the further liability of the United States in case of the application of this act to these outlying areas would also be very difficult to compute, the reason being that the wages vary, and the actual decision as to which laborers would be covered is difficult to determine. However, it is self-evident that if we raise the wages of the people who are legally covered, then we must raise the wages of all the others comparatively. We have, as I mentioned before, estimated that our possible liability for the past in Guam is in the neighborhood of $3 million, and that the future liability in case of the application of this act is in the neighborhood of $10 million a year. Throughout the world it would undoubtedly be inany, many millions more. I cannot impress upon the committee too strongly that in this time when the appropriations of the Defense Department, I am informed, are the most that this country can spend on defense, any additional expense for which value is not received will result in a lowered defense posture for this Nation. Now the committee asked me to get comparative rates paid by private firms in Guam by civilian occupations. The best information which I could obtain was from our own Civil Service Commission, which has recently made a survey in that area. This report has its limitations, in that it does not cover employees in commercial sales activities. However, it covers those positions which the Civil Service Commission thought might be competitive with United States-appointed positions, and in my opinion it covers the majority of positions which might be covered under this act. It will be noted that the wages paid are all in excess of $1 an hour at the present time. I want to submit that for the record. Mr. ELLIOTT. Without objection, the material will become a part of the record at this point. (The material referred to follows:) Average rates paid by private firms in Guam for certain positions, October 1955 * 1 The survey covered 46 key positions. Only the 9 positions listed here occurred in enough companies so that their average rates can be released without risk of revealing rates paid by specific companies. Companies contributing salary data were pledged that rates paid by individual companies would not be disclosed. Rates paid to Filipino contract employees are excluded, as are rates reported for positions which do not appear to match the key jobs properly and rates which deviate excessively from the general level for a job. The survey covered primarily white-collar positions comparable to positions in the Federal service. It did not cover enough blue-collar jobs to be representative of blue-collar wage levels. Many white-collar positions excluded because they were not comparable to Federal positions (e. g., salespeople) might be even more important in the local economy than positions surveyed. Descriptions used for the 9 jobs listed are attached. 2 Note that the samples in some cases are so small that some question may be raised about the representative character of the rates found. Clerk II Performs routine clerical duties under supervision, such as tabulating and posting data in various record books, checking calculations, balancing cash registers, making out bills, taking sales orders, and similar work of average difficulty. Requires some experience with the ability to complete assignments with a minimum of instruction. May do typing or stenographic work incidental to clerical duties. Clerk III Performs general clerical work typified by such tasks as serving as receptionist and information clerk in an office; reviewing, registering, and routing office mail; assembling and compiling data and preparing routine periodic reports; and preparing simple correspondence in accordance with instructions or standard procedures such as letters of acknowledgment or transmittal. May do typing or stenographic work incidental to clerical duties. Clerk IV Performs a variety of tasks of an administrative nature in an office, requiring the application of judgment and initiative and with an absence of day-to-day supervision. Typical tasks are to provide information to callers with responsibility for deciding what can be told or determining where the information can be obtained, and either securing it or referring the caller to the source of information. Reads incoming mail, decides what can be answered, and composes replies, obtaining such facts and information as are necessary. This may involve contacting company officials or conducting extensive searches through files and records. In the event, during the review of correspondence, the matter cannot be answered, refers it to an appropriate supervisory official for reply and includes such comment, files, or references as appear necessary to making a reply. Compiles tabular material and information by researching records and extracting appropriate facts and prepares a presentation of this material, including detailed reports. Is responsible for setting up files and records, and establishes internal routine procedural statements as guides for subordinate help. May supervise clerk-stenographers or typists. Accountant I This is the entering level for graduates of accounting schools. Under direct supervision of higher level accountants, maintains varied accounting records. Takes trial balances and makes varied accounting records; prepares profit and loss, inventory, receipt disbursement, balance sheets, and other reports; computes and distributes labor, material, and overhead costs. May supervise and review the work of accounting clerks, bookkeeping machine operators, and clerks. Work assignments are reviewed periodically by supervisor prior to completion. Accountant II Has full responsibility for administration of company accounting program. Performs a variety of accounting functions as required including the supervision of the maintenance of accounting records and preparation of financial statements. Manager, branch office or plant Is responsible for the efficient management of a branch office or plant of a commercial or industrial corporation (e. g., mail order house, insurance company, food processing company). Coordinates the operations of the various departments such as production, distribution, and selling departments. Determines local administrative policies, and executes them through subordinate managers. Is responsible for control of expenditures and meeting production standards. Laborer, material handling A worker employed in a warehouse, manufacturing plant, store, or other establishment whose duties involve one or more of the following: Loading and unloading various materials and merchandise on or from freight cars, trucks, or other transporting devices; unpacking, shelving, or placing materials or merchandise in proper storage location; transporting materials or merchandise by hand truck, car, or wheelbarrow. Longshoremen who load and unload ships are excluded. |