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 many, 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 2 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. 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. Truck driver (medium 11⁄2-ton through 4-ton) Drives a truck within a city or industrial area to transport materials, merchandise, equipment, or men between various types of establishments such as manufacturing plants, freight depots, warehouses, wholesale and retail establishments, or between retail establishments and customers' houses or places of business. May also load or unload truck with or without helpers, make minor mechanical repairs, and keep truck in good working order. Driver-salesmen and over-the-road drivers are excluded. Automobile mechanic Repairs passenger automobiles and light delivery trucks, performing such duties as disassembling and overhauling engines, transmissions, clutches, rear ends, and other assemblies on automobile, replacing worn or broken parts, grinding valves, adjusting brakes, tightening body bolts, and alining wheels. Uses hoists, wrenches, gages, drills, grinding wheels, and other general or specialized machines, gages, and tools. This worker may be restricted to repair of automobile motors, transmissions, and clutches, the remainder of repair work being performed by other workers. Admiral PARKS. One other thing I would like to state is that in executive session I pointed out the strong interest of the commander in chief, Pacific Fleet, in this legislation, and his belief that in the event that the legislation is not passed there is a danger in our defense posture in the Pacific. Mr. ELLIOTT. Thank you very much, Admiral. The information you have brought the committee has been very helpful. I certainly have learned a great deal today about the great importance of this legislation. Mr. Landrum? Mr. LANDRUM. I have no questions. Mr. ELLIOTT. Mr. Holt? Mr. HOLT. No questions. Mr. Coon. No questions. Mr. ELLIOTT. Mr. Fjare? Mr. ROOSEVELT. I have no questions. Mr. ELLIOTT. Admiral, as we pursue this matter we may have to call you again, and, if so, we know that you will render the same fine cooperation you have given us thus far. Admiral PARKS. By all means, sir. Mr. Chairman, Colonel Neff has just given me some other information which the committee has requested, and that is the Panama wage schedule, which I will submit for the record if the committee desires. Mr. ELLIOTT. Without objection, the information will be made a part of the record at this point. (The material referred to follows:) THE ARMY-AIR FORCE WAGE BOARD, WASHINGTON 25, D. C. NOTE.-Shift differentials: 2d shift 4 cents; 3d shift 4 cents. ARMY-AIR FORCE WAGE BOARD, Chief, Technical Staff. Admiral PARKS. Also the treaty provisions and allied materials relating to the limitation of private enterprise activities in the Canal Zone. Mr. ELLIOTT. Without objection, that material will be made a part of the record at this point. (The material referred to follows:) TREATY PROVISIONS AND ALLIED MATERIALS RELATING TO THE LIMITATION OF PRIVATE ENTERPRISE ACTIVITIES IN The Canal ZONE In the General Treaty of Friendship and Cooperation of 1936,' the following provision will be found: Article III, section 5. "With the exception of concerns having a direct relation to the operation, maintenance, sanitation or protection of the canal, such as those engaged in the operations of cables, shipping, or dealing in oil or fuel, the Government of the United States of America will not permit the establishment in the Canal Zone of private business enterprises other than those existing therein at the time of the signature of the treaty."" In an accessory note exchanged on March 2, 1936, the following exception appears: 1 Signed at Washington on March 2, 1936; ratification advised by the Senate on July 25. 1939; ratified by the President on July 26, 1939; ratified by Panama July 17, 1939; ratification exchanged at Washington, July 27, 1939; proclaimed, July 27, 1939. As reported in Cumulative Supplement No. 2 to the Canal Zone Code and appendix, pt. II, pp. 33, 37-38 (1943). 73588-56-pt. 1-19 |