Mr. NICHOLSON. I mean 80 percent of all employees. Mr. SLOAN. Now on a piecework basis? Mr. NICHOLSON. Yes. Mr. SLOAN. I thought you said the weavers? Mr. NICHOLSON. No; all the weavers, as far as I know, are on the piecework basis. Mr. SLOAN. I stand corrected on that. The CHAIRMAN. In my own community I have been in contact with the situation and have some knowledge of the extent of the employees being engaged on piecework. Mr. SLOAN. I stand corrected on that, sir, because looking at the figures here and giving my answer to you in the light of the statistics I see coming over my desk, week after week, they did not show very much piecework. In other words, they show they are working up around 40 hours. We have been running pretty full as an industry for the past 7 or 8 months except during the month of December. The CHAIRMAN. It is possible under the code, and this is not criticism of the code at all, that a man might well as a weaver, get less wages per week than he used to get, because he is only working 40 hours a week. Mr. SLOAN. I do not know. I wish you would ask that question of Mr. Nicholson. Mr. NICHOLSON. What was the question? The CHAIRMAN. A weaver that worked in your plant for 54 hourswas that the number of hours you worked in your plant? Mr. NICHOLSON. We worked 55. The CHAIRMAN. Does he get for 40 hours of piecework the same wages he formerly got for 55? Mr. NICHOLSON. Yes, sir; and not only in my plant, but all the industry as a whole, because the piecework rates were adjusted to enable the pieceworker to earn the earnings that prevailed prior to the code going into effect. The CHAIRMAN. That would require a substantial increase in the piece rate. Mr. NICHOLSON. I believe that is true in our plant, and I think that is true in most of the plants. Mr. SLOAN. Senator, there are some other figures that may help us in this discussion. The average rate in 1932 was seven higher occupational groups, where earnings, according to Government reports, were more than the minimum wage prescribed by the code, was 35 cents an hour. In August 1933 the average for these same groups was 44 cents, an increase of about 25 percent in the hourly rate. These averages include all kinds of cotton mills, the case such as you have in Massachusetts of the fine goods, and the cheapest and coarsest type of fabrics. Now, with respect to pay rolls, a striking reflection of the increase of employment and wage improvement is afforded by the industry's pay rolls. For the week ending nearest to the 15th of the month the pay roll for March was $2,957,000. In June it was $4,498,000; in July, $5,000,000; in August, $6,000,000, and it has stuck very close to that. The CHAIRMAN. That was the total for the industry? Mr. SLOAN. That is the total weekly pay roll for the week nearest to the 15th of the month. The CHAIRMAN. How many plants, approximately? Mr. SLOAN. Well, approximately 1,200 plants, ranging from 50 employees to several thousand. Weekly pay rolls have risen from $3,000,000 in March, to $6,000,000 in October, an increase of 100 percent. The pay roll in November was actually 92 percent over March 1933. The important thing is what has happened to real wages. That is what we want to know. What has happened to real wages? These increased pay rolls have meant an increase in real wages, that is, an increase in purchasing power. If we take the figures of the National Industrial Conference Board, in January 1934, they show about a 28 percent increase over March 1933 and are 10 percent higher than in 1926. Senator, that was the information that I was anxious to get before του. The CHAIRMAN. That has been very helpful. May I ask you another question? What increase has there been in the cost of cotton cloth as a result of these increased wages? Mr. SLOAN. That varies according to the type of cloth. The CHAIRMAN. Yes; but is there any information that you can give us? Mr. SLOAN. I think I can send your committee a pretty full record of that. The CHAIRMAN. Of course, in view of your statement as to the percentage increase in wages, and the fact that these industries have come out of the red into the black, in all probability that has been in some part due to increased price. Mr. SLOAN. Bear in mind, Senator, too, that the price of cotton has gone up 100 percent, and on top of that we have the processing tax. The CHAIRMAN. There has been very substantial increase in the cost of production. Mr. SLOAN. In the selling price, did you say? The CHAIRMAN. Yes; the consumer's price. Mr. SLOAN. May I ask Mr. Nicholson how the prices compare? The CHAIRMAN. Yes. Mr. NICHOLSON. Not quite twice as much. The CHAIRMAN. I am very glad you appeared, Mr. Sloan, because I really got the impression myself, and I think the committee did, that there were many cases of pieceworkers-and this is not critical at all-who really had their pay envelops reduced by the 40-hour requirements. Mr. SLOAN. Senator, with your permission, I would like to make a hurried check in all of my records and I may be able to submit some data on that point. I am sorry I was not better informed. The CHAIRMAN. You certainly have enlightened the committee. Mr. SLOAN. We did not want the impression to go out as it has gone out before, that the minimum wage has become the maximum wage. That hurts our industry and hurts the N.R.A. The CHAIRMAN. Does anyone else wish to be heard? (No response.) The CHAIRMAN. Senator Davis would like to have inserted in the record a letter addressed to John L. Lewis, president United Mine Workers of America, from B. C. Miller, president Local No. 6290, United Mine Workers of America, Nemacolin, Pa. Is this letter in favor of this legislation? Senator DAVIS. It is. (The letter referred to by the chairman is as follows:) NEMACOLIN, PA., March 19, 1934. JOHN L. LEWIS, Washington, D.C. DEAR SIR: At a recent meeting of local no. 6290, United Mine Workers of America, located at Nemacolin, Greene County, Pa., I was directed to write you concerning the activities of the Buckeye Coal Co. in violation of section 7 (a) of the National Recovery Act, relative to collective bargaining. In order to thoroughly acquaint you with the situation at this mine, it is necessary that I give you detailed information concerning the same. Prior to the passage of the National Recovery Act, this mine was unorganized, having neither organized labor or a company union. Immediately after the passage of the act, the mine was organized 100 percent United Mine Workers of America, and continued working without any objection on the part of the company. After the dispute with the H. C. Frick Čoke Co. and the United Mine Workers, the Buckeye Coal Co. endeavored to organize a company-controlled union, called the "brotherhood." This mine was shut down on account of the strike last fall and did not open again until some time in January of this year. After repeated efforts, an election was held to choose representatives, under supervision of the Labor Board, and the United Mine Workers were victorious-489 to 247. So far a contract has not been entered into with the company by the chosen representatives. Prior to this election, the company hired several deputy sheriffs, who, after complaint, were discharged by the sheriff of this county; then the company petitioned the courts of this county and designated several individuals to be night watchmen; since that time they have had 3 shifts of 8 men each, patroling the property of this company, and intimidating and coercing members of the United Mine Workers to become members of the organized company brotherhood. The Buckeye Coal Co., at the present time, will not hire any person who does not agree to become a member of its brotherhood; most of its foremen and pit bosses are members of the brotherhood and constantly making working conditions for union men unbearable. They also refuse to permit the union men to hand out check-off cards to the members of the United Mine Workers. In addition to these matters, the company only hire men for 10, 20, or 30 days, constantly holding this as a threat over their heads to keep them becoming members of the United Mine Workers, and if they don't join the brotherhood at the end of this time, they are immediately discharged. Several members of the United Mine Workers have been discharged for very trivial matters, and we allege the principal reason is that they were members of the union. Also the company is importing men from other localities and employing them in preference to men who have worked for them and live in the company town, presumably on account of the men living there being members of the union. The men are very anxious that this letter be read before the Senate committee at the hearings on the Senator Wagner bill, and, if necessary, several of the men will attend in person to substantiate the charges set forth in this letter. There is no question but what the company is determined to defeat the rights of its members to collective bargaining, and unless the Wagner bill is approved in its present form and some authority vested in a national labor board to combat the activities of the company, sooner or later the company will win out, so you can readily see the necessity of labor having some protection. With kindest personal regards, I am, Yours very truly, B. C. MILLER, President, Local No. 6290, United Mine Workers of America. The CHAIRMAN. The committee will stand adjourned until Monday morning at 10 o'clock. (Whereupon at 3:15 p.m. the committee was recessed until Monday. Mar. 26, 1934, at 10 a.m.) X HEARINGS BEFORE THE COMMITTEE ON EDUCATION AND LABOR UNITED STATES SENATE SEVENTY-THIRD CONGRESS SECOND SESSION ON S. 2926 A BILL TO EQUALIZE THE BARGAINING POWER OF Printed for the use of the Committee on Education and Labor |