relations problems that would not otherwise be encountered as a result of restrictions on the latitude of parties to bargain over wages. Meeting the problems of seniority, for example, which comes into being as new people are brought in the work force and other people are taken out of the work force to go to the armed services-hosts of problems of that nature are created by the need to mobilize for the defense effort.

In 1950, even prior to the establishment of wage controls, the strike trend was on the upgrade. Since January of this year, after wage controls and increased plant conversion for defense, the trend has continued upward. Experience would seem to make it clear that as wage controls and over-all conversion take increasing hold, friction between management and labor will become more difficult to over

come.

At the same time, we must be concerned lest those frictions erupt into stoppages which would impair the output of goods. The need for some means of settling labor disputes, in addition to those already at hand for normal use, is apparent.

Executive Order 10233, issued April 21, 1951, establishes a form of disputes settlement machinery which is uniquely geared to the present requirements of the defense effort. It consigns to the Board a very carefully defined jurisdiction in the settlement of labor disputes.

Mr. MURDOCK. May we at this point designate the copy of Executive Order 10233 dated April 21, 1951, as exhibit 1, and may it be printed in the record at the conclusion of the doctor's remarks.

Senator HUMPHREY. I suggest that that be done and that it be printed in the record at this point in your remarks.

Dr. TAYLOR. Yes, sir.

(Executive Order 10233 was marked "Exhibit No. 1" and is as follows :)

[Immediate release, April 21, 1951]

EXECUTIVE ORDER

AMENDING EXECUTIVE ORDER NUMBER 10161 WITH RESPECT TO WAGE
STABILIZATION AND SETTLEMENT OF LABOR DISPUTES

WHEREAS the maintenance of wage stabilization under the Defense Production Act of 1950 is essential at this time in the interest of the national defense; and

WHEREAS the maintenance of effective wage stabilization imposes limitations on the processes of free collective bargaining, making necessary the development of machinery to facilitate the settlement of labor disputes in conjunction with the administration of wage stabilization; and

WHEREAS on April 17, 1951, the National Advisory Board on Mobilization Policy made the following recommendation to the President:

"1. The Wage Stabilization Board shall be reconstituted as an 18-man tripartite Board with six representing the public, six representing management, and six representing labor.

"2. The reconstituted Wage Stabilization Board shall be empowered to assume jurisdiction of any labor dispute which is not resolved by collective bargaining or by the prior full use of conciliation and mediation facilities and which threatens an interruption of work affecting the national defense where:

"(i) The parties to any such dispute jointly agree to submit such dispute to the Board, or

"(ii) The President is of the opinion that the dispute is of a character which substantially threatens the progress of national defense and certifies such dispute to the Board.

"(3). In any such case certified to the Board by the President or in any such case where the parties jointly agree to submit the case to the Board for their recommendations, the Board shall investigate and inquire into the issues in dispute and promptly report to the President thereon with their recommendations to the parties as to fair and equitable terms of settlement.

"4. In any such case where the parties jointly agree to be bound by the decision of the Board, the Board shall render a decision on the issues in dispute which decision shall be binding on the parties."

AND WHEREAS I deem it necessary and desirable that such recommendation be carried out,

Now, THEREFORE, by virtue of the authority vested in me by the Constitution and statutes, including the Defense Production Act of 1950, and as President of the United States and Commander in Chief of the armed forces, it is hereby ordered as follows:

SECTION 1. Part IV of Executive Order No. 10161 of September 9, 1950, is hereby amended by revoking sections 403 and 404 thereof and by inserting after section 402 thereof the following new sections:

"SEC. 403. (a) There shall be in the Agency a Wage Stabilization Board (hereafter in this Part referred to as the Board) composed of eighteen members who shall be appointed by the President. Six of the members so appointed shall be representative of the public, six shall be representative of labor, and six shall be representative of business and industry. There shall be a chairman and a vice chairman of the Board, each of whom shall be designated by the President from among the members representative of the public.

"(b) In addition to the functions assigned to it by the provisions of the following sections of this Part IV, the Board shall perform such other functions with respect to wage stabilization as may be determined by the Administrator after consultation with the Board.

"SEC. 404. To the maximum extent consistent with the maintenance of effective economic stabilization, the provisions of this Part shall be administered in such a way as to preserve collective bargaining between labor and management. "SEC. 405. The Board may assume jurisdiction of any labor dispute which is not resolved by collective bargaining or by the prior full use of conciliation and mediation facilities and which threatens an interruption of work affecting the national defense where:

"(a) The parties to any such dispute jointly agree to submit such dispute to the Board for recommendation or decision, if the Board agrees to accept such dispute, or

"(b) The President is of the opinion that the dispute is of a character which substantially threatens the progress of national defense and refers such dispute to the Board.

"SEC. 406. In any case referred to the Board by the President under section 405 the Board shall investigate and inquire into the issues in dispute and promptly report to the President thereon with its recommendations to the parties as to fair and equitable terms of settlement.

"SEC. 407. In any case where the parties jointly agree to submit the case to the Board for its recommendations under section 405, the Board shall investigate and inquire into the issues in dispute and shall advise the parties of its recommendations for fair and equitable terms of agreement.

"SEC. 408. In any case submitted or referred to the Board under section 405 where the parties jointly agree to be bound by the decision of the Board, the Board shall render a decision on the issues in dispute, which decision shall be binding on the parties.

"SEC. 409. Any wage action taken by the Board with respect to any case submitted or referred to it under section 405 shall be consistent with stabilization policies.

"SEC. 410. Such panels and subsidiary agencies of the Board as may be deemed necessary may be constituted under this Part, and in order to carry out its functions under this Executive Order, the Board may promulgate rules, regulations, orders, and directives."

SECTION. 2. All orders, regulations, rules, certificates, directives, and other actions relating to any function affected by the amendment made by the provisions of section 1 of this Executive Order (including the appointments of members of the Board in office on the date hereof) shall remain in effect except as they are inconsistent herewith or are hereafter amended, revoked, or terminated under proper authority.

SECTION 3. Nothing in this Executive Order shall be deemed to supersede any provision of Executive Order No. 10193 of December 16, 1950.

SECTION 4. No action inconsistent with the provisions of the Fair Labor Standards Act of 1938, as amended, other Federal labor standards statutes, the LaborManagement Act, 1947, or with other applicable laws shall be taken under this Executive Order.

THE WHITE HOUSE, April 21, 1951.

HARRY S. TRUMAN.

Dr. TAYLOR. The Board can act in only two situations: The first arises where the parties themselves jointly agree to submit their differences to the Board for final decision or for recommendations as to settlements. The choice belongs to the parties, not to the Board. The Board itself has no power to take jurisdiction of a dispute on its own motion.

Further, even where the parties jointly request the Board to take their case, the Board need not take jurisdiction unless it believes it to be in the national interest to do so under criteria to be developed by it.

The only other way the Board may be used to facilitate the settlement of labor disputes is in those cases in which the President is of the opinion that the matter is of a character substantially threatening the progress of the national defense and refers the case to the Board.

The Board is then required to investigate the issues in dispute and promptly report to the President with recommendations as to the equitable terms of settlement.

The exact role to be played by the Board in the field of labor disputes should be fully understood. First, it should be made plain that the Board's procedures are not intended either as a substitute for collective bargaining or as a replacement for existing agencies of mediation. The order expressly and I refer to Order No. 10233prohibits the Board from acting in any case in which collective bargaining and the full use of mediation facilities have not been exhausted. The Board is now entering into an arrangement with the Federal Mediation and Conciliation Service to assure faithful adherence to this principle.

Second, the Board is not a device to supersede or duplicate the procedures or jurisdiction established by the Labor-Management Relations Act. The Board is expressly prohibited from taking any action inconsistent with that act. This means that the Board may not intrude upon matters which are within the sole and exclusive jurisdiction of the National Labor Relations Board.

The Wage Stabilization Board and the National Labor Relations Board are in the process of establishing procedures to insure consistency of action. Nor is there any conflict between the Board's machinery and the national emergencies procedures of the TaftHartley Act. The two are quite different.

The principle of voluntarism is the underlying concept of the Board's procedures even in cases referred to it by the President. No compulsion is involved in these cases, either in respect to making parties appear before the Board or as an incident of any action that may be taken by it. The Board has no subpena powers. It can only invite the parties to appear before it in its investigation of the dispute. The Board can issue no binding decisions. It can only make recommendations for settlements-recommendations arrived at by the informed process of tripartite participation. On the other hand, boards of inquiry convened under the Taft-Hartley procedures do

have powers of compulsory process and they operate in the compulsive setting of court injunctions to enforce the maintenance of uninterrupted production.

The Norris-LaGuardia Act ceases to be a bar to the enjoining of a strike or lock-out only after Taft-Hartley procedures become operative. The Board's procedures, however, may well reduce the need for resorting to injunctions as a method of insuring uninterrupted production. They may properly, therefore, be considered not as a substitute for any existing methods of settlement, but as an additional method based upon the principle of voluntarism.

Finally, it should be emphasized that the machinery of the Wage Stabilization Board is peculiarly adapted to the settlement of disputes in a period of wage control. Even where the parties reach peaceful agreement on wage issues, there can be no final settlement of the matter without resort to the Board to determine conformance with the national wage policy. Experience has sufficiently demonstrated that when parties cannot agree, the subject of wages is not usually isolated from other terms and conditions of employment. The procedure of the Board provides disputants with an opportunity not otherwise available to reach a settlement of all their differences at the same time and place. Moreover, resort to the processes of the Board assures the parties that, if they choose to avail themselves of the Board's procedures, their problems will be treated by an agency upon which they have direct representation because of the tripartite composition of the Board.

This new instrument for the settlement of labor disputes is in full harmony with the needs of the emergency. It represents the minimal technique which the Government could provide to meet the problem of labor disputes occasioned by and having impact upon the mobilization effort. It makes available an additional means to encourage parties to settle differences affecting the defense effort in a peaceful way and without endangering the goal that must be reached if freedom as we know it is to be made secure.

That completes my prepared statement, Mr. Chairman.

Senator HUMPHREY. We have here just two items in the appendix of your statement.

Dr. TAYLOR. Yes.

Senator HUMPHREY. The one was Executive Order 10233 and the other was the biographical material on the members of the Wage Stabilization Board.

Dr. TAYLOR. Yes, sir.

Senator HUMPHREY. Since the Executive order was included in the earlier part of your statement we will now at this point in the record include the Wage Stabilization Board biographical sketches of the membership of that Board.

Dr. TAYLOR. Very well, sir.

(The information referred to follows:)

[For immediate release, Tuesday, May 8, 1951]

WAGE STABILIZATION BOARD

TEMPO E BUILDING

New members of the reconstituted 18-man Wage Stabilization Board were sworn in today by Supreme Court Justice Hugo Black. The Board held an executive session immediately after the ceremonies to consider an agenda and pro

cedures for acting on the many policy matters and wage-adjustment cases which have accumulated since its nine-man predecessor became inoperative last February 15.

The organization meeting was called by Dr. George W. Taylor, of the University of Pennsylvania, who was appointed by President Truman as chairman of the enlarged WSB consisting of six public, six industry, and six labor representatives.

Eight of the members of the new Board served on the original WSB. Cyrus S. Ching, Chairman of the initial nine-man Board, returned recently to his post as Director of the Federal Mediation and Conciliation Service, from which he was on leave.

Dr. Clark Kerr, of the University of California, a public member of the first Wage Board, was appointed by President Truman as Vice Chairman of the reconstituted Board. Other members of the new Board are:

Public: John T. Dunlop, professor of economics at the Littauer School of Public Administration, Harvard University, a member of the original WSB; Nathan P. Feinsinger, professor of law at the University of Wisconsin; William M. Hepburn, dean of law at Emory University, Atlanta, Ga., and Frederick H. Bullen, former secretary of the New York State Mediation Board.

Labor: Harry C. Bates, president of the AFL Bricklayers, Emil Rieve, presiIdent of the CIO Textile Workers, and Elmer E. Walker, vice president of the AFL International Association of Machinists, all members of the original Board; Joseph A. Beirne, president of the CIO Communications Workers of America; William C. Birthright, president of the AFL Barbers' Union, and John W. Livingston, vice president of the CIO United Automobile Workers.

Industry: Henry B. Arthur, economist, Swift & Co., J. Ward Keener, vice president of B. F. Goodrich Co., and Reuben B. Robertson Jr., president, Champion Paper & Fibre Co., all members of the original WSB; Milton M. Olander, director of industrial relations for the Owens-Illinois Glass Co.; Alexander R. Heron, vice president, Crown-Zellerbach Corp., and Richard P. Doherty, director of employee-employer relations department of the National Association of

Broadcasters.

Biographical sketches of all 18 members of the WSB are attached to this

release.

The new Board faces a backlog of more than 1,100 wage adjustments voluntarily agreed to by management and labor negotiators and jointly submitted by the parties to the WSB for approval during the past 22 months. The total is increasing at the rate of about 250 cases a week.

Some of the pending cases propose adjustments in wages which apparently exceed the 10 percent "catch-up" formula contained in General Wage Regulation 6. Many present new policy questions on which the old Board did not have an opportunity to act, such as adjustments to prevent or correct hardships or inequities as required by the Defense Production Act. Others involve the special problems of seasonal industries, abnormalities in the base pay period level against which increases are measured, and "rare and unusual" situations where essential civilian or defense production needs require adjustments.

The National Case Division of the Board has analyzed the pending backlog of cases and placed them in some 16 categories according to the major issue presented in each case. The analysis shows that the largest number of cases involve claims of intraplant, intracompany or interplant inequities. There are nearly 450 of this type.

Other categories include: Escalator cases, 11; deferred increases, 77; abnormal base period cases 55; wage progression plans, 19; piece rate and incentive cases, 30; "substandard" cases, 3; "rare and unusual" applications, 23; construction industry cases, 73; fringe benefits, 48; adjustments for individual workers, 89; new plants, 57; "overstandard" cases, 133; miscellaneous, 49.

The analysis of the pending backlog also disclosed that nearly half the cases have come to the WSB from five States. They are: Illinois, with 141 cases;

New York, 113; Pennsylvania, 99; Ohio, 90, and California, 80.

All of the pending cases are voluntary wage applications. The WSB has as yet received no disputes cases. President Truman, in an Executive order issued April 21 reconstituting the Board, gave it jurisdiction over certain labormanagement disputes affecting national defense.

Chairman Taylor said the new 18-member Board will develop all possible procedures to expedite the handling of the present list of cases and to avoid the accumulation of a new backlog.