this Committee, and especially the author of the Act, the Honorable Jim O'Hara, a member of this Committee, felt he had this discretion. The Secretary of Labor in our opinion has, by his refusal to make a wage determination at Cape Kennedy while at the same time he has made a wage determination for the West Coast workers at Vandenberg Air Force Missile Test Center for the same U.S. Air Force, for the same type of work, pulled one of the rankest acts of discrimination ever upon the same U.S. worker on the East Coast. Mr. Chairman, we respectfully request you and your Committee's assistance to right this wrong. And further we request this Committee to consider our proposal to amend the Service Contract Act of 1965 to delete any reference to the Secretary of Labor's discretion and make wage determinations a mandatory obligation. 1 Thank you for allowing us to appear before your Committee and for your deep interest in this matter. APPENDIX 1 DEPARTMENT OF DEFENSE, To: Commanding officer of military departments and DOD component installations in the area. Subject: Coordinated Federal wage system regular wage rate schedule for the Cocoa Beach-Melbourne, Fla., wage area. The schedule shown below has been established under authority of DOD Directive 5120.39 "Department of Defense Wage Fixing Authority", 5 June 1968 and is to be applied in accordance with the provisions of FPM Supplement 532–1 to installations listed on the reverse side. 11 4.90 5. 10 12. 5.08 5.29 13. 5.26 14 15. 5.30 5.39 5.61 5.83 5.90 6.22 6.55 6.88 7.21 7.43 6.65 7.00 7.35 7.70 Note: Shift differentials: 2d shift, 23 cents; 3d shift, 39 cents. If special rates are required by Section 4 of PL 90-560, 12 Oct 68, such rates: will be authorized later, effective 15 November 1970, 16 November 1969, and beginning of the first pay period which began on or after 14 November 1968. Effective Date: 15 November 1970.. APPENDIX 2 RAYMOND J. BRAITSCH, Installations authorized the Cocoa Beach-Melbourne, Florida wage area schedule: DEPARTMENT OF THE ARMY US Army Engr Dist, Jacksonville, Florida empl at Patrick AFI ida. DEPARTMENT OF THE NAVY Military Sea Transportation Service Office, Cape Kennedy, Florida. Employees of Navy Publications & Printing Service, Branch Office, Jacksonville, located at Patrick AFB, Florida. Navy Ordnance Test Unit, Patrick AFB, Florida. Jobs which may be surveyed when industries indicated in the individual job descriptions are included in a wage survey (See 85–6b (4) (d)) COMPARISON OF MECHANIC WAGE RATES AT PATRICK AND CAPE KENNEDY It is hereby understood and agreed by and between Pan American World Airways, Inc. and the Transport Workers Union of America, AFL-CIO that the wage increases and cost items in the Memorandum of Agreement between the parties dated April 18, 1969 with respect to Mechanic and Ground Service Employees at the Aerospace Services Division shall be subject to the approval of the Air Force Contracting Officer as reasonable reimbursable expenses under Pan American's contracts with the Air Force. Signed this 18th day of April, 1969. For: PAN AMERICAN WORLD AIRWAYS, INC., For: TRANSPORT WORKERS UNION OF JAMES F. HORST. APPENDIX 8 AIR FORCE MISSILE TEST CENTER, AIR FORCE SYSTEMS COMMAND, Patrick Air Force Base, Fla., May 11, 1964. TRANSPORT WORKERS UNION LOCAL 525 GENTLEMEN: I commend you, the officers and the members of Local Union 525, for your efforts in maintaining effective and stable labor-management relations at the Eastern Test Range. Your cooperation with the contractors and this headquarters is recognized. You have demonstrated responsibility and met the challenge of our mission. With your cooperation there has been established a labor relations record unparalleled in the Defense Industry and it has been proven that problems can be resolved by peaceful, mature methods. I look forward to your continued support. H. J. SANDS, Jr., Brigadier General, USAF, Commander. Mr. E. M. MITCHELL, APPENDIX 9 AIR FORCE EASTERN TEST RANGE, International Representative, Transport Workers Union Local 525, DEAR MR. MITCHELL: The splendid record of your organization and Pan American World Airways in the field of labor relations is recognized and the following is worthy of special mention : Full compliance with your General President's no-strike pledge to the President of the United States during the recent period of tense labormanagement agreement negotiations between your union and Pan American World Airways, Inc. The genuine concern, by you and your local union, for the Missile and Space effort by continuing to man the jobs here although your union was engaged in a system-wide strike against Pan American on 25 August 1964. The forthright manner in which you handled the demonstrations here upon two occasions during negotiations, by insuring through notice to all unions that your action was a demonstration rather than a strike and consequently you desired that all members of other unions remain on the job. Your mature and responsible leadership in cooperating with Pan American in the handling of labor relations, particularly grievances, which has resulted in a five year uninterrupted operation of this, the Test Center of the Free World has established a record unparalleled in our Nation's Missile and Space programs. Your actions have indicated that your prime concern is the Missile and Space effort and that this work must go forward with all possible speed without interruption. In view of these accomplishments, I commend you, the International Officers, and Officers and Members of Local 525 for a job well done. I look forward to the continued good relations between your organization, Pan American World Airways and this headquarters. Sincerely, VINCENT G. HUSTON, Major General, USAF Commander. Mr. THOMPSON. May I say further that the comparison of wage rates which you and the previous witness have submitted are going to be most useful to us. Mr. O'CONNELL. Mr. Chairman, on comparison of the wage rates, we haven't made an in-depth study of comparable wages in the area, and we by no means would want to compare our job classifications for the employees of Pan-American at Cape Kennedy with the employees of the Civil Service employees at Patrick Air Force Base because the work primarily is nowhere as comparable. The work at the Cape is far more complex, it is far more, to use your term, exotic. The only thing that we have used is the job title classification, and we will show that our rates of pay at the Cape for the PanAmerican employees are within pennies per hour of the Civil Service employees at Patrick Air Force Base, and our members, employees of Pan-American, work side by side on Patrick Air Force Base in some of their duties. In a letter to you, written by Mr. Dishong early this month, he pointed out that we had a small group of custodial people, janitors, at Patrick Air Force Base. (The letter referred to follows:) TRANSPORT WORKERS UNION OF AMERICA, AFL-CIO, Hon. FRANK THOMPSON, Jr., GUIDED MISSILE LOCAL 525, Cocoa Beach, Fla., October 1, 1971. Chairman, Special Subcommittee on Education and Labor, DEAR HON. THOMPSON: I understand that there is to be a hearing of your Subcommittee on October 13 and 14, 1971, in Washington, D.C., to investigate what is transpiring in the government agencies and their letting out of contracts that come under the Service Contract Act of 1965. One of the deplorable situations that is happening here in the Cape Kennedy area that is hurting the working men, and more so the negro employees, are the methods in which the Air Force is letting out contracts under Section 8A of the Small Business Act. In 1966 or early 1967, the Labor Department did run a wage survey in this area, but the only two classifications that they considered were that of laborers and janitors. It was determined at that time that $2.45 per hour was the prevailing rate for these two classifications. Of course, there has not been a survey run since then. As the cost of living increased, labor unions representing these classifications, ours being one of them, negotiated rates of pay that corresponded. In July of this year, the Air Force notified the public that the custodial services at Patrick Air Force Base would be put out to bid under Section 8A of the Small Busiess Act, and informed the bidders that they could not bid less than $2.45 per hour. Needless to say, the Company that received the award is paying its employees $2.45 per hour. Trinity Services, Inc., 123 Park Street, Jacksonville, Florida, was the winner. At this point, it is my understanding that a great majority of the people that they employ to perform this work are "moonlighting" servicemen, and employees of other companies are also "moonlighting" for extra pin money. It is also my understanding that the Air Force intends to contract out the custodial services and food services at Cape Kennedy the same way that was done at Patrick Air Force Base. Pan American World Airways, Inc., had the responsibility of performing a small portion of the custodial work at Patrick, this work being in the Technical Laboratory. The wages of those employees were $3.85 per |