As explained above, it was decided not to vest the emergency board with authority to mediate. It seemed unnecessary to specify its duration. This should be within the discretion of the President. Provision is made for preserving board records with the Mediation and Conciliation Service.. Originally, it was provided that a separate board should be appointed for each dispute. In some instances it might be wise to have a new board composed of men with special experience in a given technology (e. g., mining) or a special industrial problem (e. g, health funds). Other circumstances might make desirable the use of the same board for a series of disputes to achieve uniformity and to capitalize upon accumulated experience. It was decided that Congress lacks prescience sufficient to determine in advance the nature of the board required at any given time. The only limitation was to exclude as members of a board those who are officers or employees of the disputants. This test was substituted for "interest" in the dispute which was deemed too vague. Section 214. (a) President to designate Government agency to operate facilities. (b) As noted above, Government possession is to terminate(1) on settlement of dispute; (2) when President finds continued possession not necessary; (3) sixty days after issuance of a seizure order unless Congress extends by concurrent resolution. (c) Just as other sections are designed to create an incentive to a union disputant to bargain and settle, this subsection would generate pressure upon employer disputants. During the first 30 days following the issuance of a seizure order income would be the same as if the Government were not in possession. After the first 30 days, the Government would impound and hold all revenue and would be reimbursed for its operating expenses. The owners of the enterprises would be entitled to just compensation. Certain standards for computing just compensation are defined. Consideration is to be given to the fact that possession was taken or continued when operations were disrupted or about to be disrupted by a stoppage of work or operations; to the fact that Government possession would have been terminated whenever the dispute was settled; to the value the enter prise would have had if the Government had not taken possession. Absent such standards compensation would be all income less actual operating expenses without figuring in the expenses of the Govern ment. Without the factors prescribed, a company whose property is operated by the Government would experience no financial hardship and, indeed, seizure would insure it against any loss it otherwise might suffer. This feature was not contained in any other seizure proposal. The committee considers it an essential ingredient of this type of legislation. In the bill as introduced the holding of funds and the application of the compensation factors was to date from the beginning of Govern ment operation. It was suggested that a period be allowed in which the anticipation of these provisions would create the desired incentive to settle. The actual application of these provisions, it is felt, will tend to make continued Government possession undesirable to management. In the bill as introduced a factor to be weighed in determining just compensation was which party rejected an emergency board's recom mendations. If the company did, its compensation would be diminished accordingly. If the union did, the fact that possession was taken or continued because of a threatened strike would not weigh s heavily, if at all, against the company. The effect upon the other factors would be similar. This provision was eliminated because it was considered tantamount to compulsory arbitration. Rather than encourage bargaining, it would encourage one party or the other to insist upon the precise recommendations of a board. While the recommendations would serve as an excellent point of departure for bargaining, it is not intended to have this bill erect a scheme for imposing conditions for the settlement of emergency disputes. Any increase or change in computation of compensation which results in an increase may be agreed to retroactively for all or part of the period of Government possession. This proviso makes clear that the increase for all or part of the period of possession could be treated as costs or expenses for that time. In computing just compensation the increase would be allocated as costs or expenses for the period for which they are to be retroactive. The owners could pay the prorated retroactive increase from the funds held by the Government for that period rather than from income received before or after Government possession. Of course, if an increase is to be retroactive to a time before seizure or the date of impounding, that increase for the earlier period could not be charged off as a cost or expense for the period during which funds were impounded. This provision is for the protection of the owners and to remove doubts that might preclude or discourage retroactive increases. which otherwise would be negotiated. (d) The duty of all parties to bargain collectively is to continue during Government possession. This merely emphasizes existing law. The one change which appears rectified a typographical error. (e) (1) The President is authorized to appoint a compensation board which would determine just compensation under the standards. prescribed in section 214 (c). Appointment of a board is not required. If a Board were not appointed, the standards would govern negotiations between the Government and owners and any subsequent court test. (2) Provides for clerical and other facilities for compensation boards. (3) The award of the compensation board would be binding upon the parties unless a party to the award proceeding moves to have it set aside or modified in the United States Court of Claims. Section 215. After a dispute is settled the President is to submit a comprehensive report and any recommendations he may have to Congress. Experience may indicate the advisability of amendments. The reports would constitute a rich source of material on industrial disputes. Section 2 of the bill provides that the act would become effective immediately upon enactment. Section 3. At the time of its introduction the bill provided that the emergency board provisions would not apply to existing disputes and that a board of inquiry already appointed under section 206 of the LMRA, 1947, would be deemed to be an emergency board for the purposes of this bill. These provisions were designed to cover a contingency which has not materialized, i. c., invocation of TaftHartley emergency dispute procedures, and were eliminated as un necessary. Section 4. This section of the bill as introduced provided that the bill would not apply to any matter subject to the Railway Labor Act. Present section 212 of the Taft-Hartley Act which would be retained as renumbered section 217 so provides. Section 4 is therefore un necessary. CHANGES IN EXISTING LAW In accordance with subsection (4) of rule XXIX of the Standing Rules of the Senate, the changes in existing law are as follows: 1. Present sections 211 and 212 of the Labor Management Relations Act, 1947, as amended, are renumbered as sections 216 and 217. 2. The bill inserts new sections 211 through 215. 25 VIII-b. (Source: Congress of the United States. In S. 2999 (Morse-Humphrey bill), Senate Committee on Labor and Public Welfare, 82d Cong., 2d sess. (1952)) 82D CONGRESS 2D SESSION Calendar No. 1998 S. 2999 [Report No. 2073] IN THE SENATE OF THE UNITED STATES APRIL 9 (legislative day, APRIL 2), 1952 Mr. MORSE introduced the following bill; which was read twice and referred to the Committee on Labor and Public Welfare JULY 2 (legislative day, JUNE 27), 1952 Reported by Mr. HUMPHREY, with amendments [Omit the part struck through and insert the part printed in italic] A BILL To amend the Labor Management Relations Act, 1947, so as to provide a more effective method of dealing with labor disputes in vital industries which affect the public interest. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That sections 206 and 207 of the Labor Management Rela4 tions Act, 1947, are amended to read as follows: 5 SECTION 1. That title II of the Labor Management Rela6 tions Act, 1947, is amended by renumbering present sections 7 211 and 212 as sections 216 and 217, respectively, and 8 inserting the following after section 210: 9 "SEC. 206 211. Whenever the head of an appropriate 10 department or independent agency reports to the President, 2 1 and the President finds, that a national emergency is threat2 ened or exists because a stoppage of work or operations has 3 resulted or threatens to result from a labor dispute (including 4 the expiration of a collective-bargaining agreement) in a vital 5 industry or plant which seriously affects the publie interest 6 security of the United States, and the Director of the Fed7 eral Mediation and Conciliation Service advises the President 8 that all possibilities of mediation and conciliation have been 9 exhausted without success, he the President shall issue a 10 proclamation to that effect and call upon the parties to the 11 dispute to refrain from a stoppage of work or operations, or, 12 if such stoppage has occurred, to resume work and operations 13 in the public interest. 14 15 "PROCEDURE FOLLOWING PROCLAMATION "SEC. 298 212. (a) At any time Immediately after 16 issuing a proclamation pursuant to section 206 211, the 17 President my shall submit to the Congress for considera18 tion and appropriate action a full statement of the case 19 based upon such information as has been made available to 20 him through the appropriate agencies of the Government 21 together with such recommendations as he may see fit to 22 make as to procedures for effecting final settlement of the 23 dispute and, pending settlement, for maintaining operation 24 of the enterprise or enterprises involved. 25 “(1) In any euse in which a strike or lock-out occurs |