Hourly rates of pay for employees in Canal Zone, 1956

'Contractors normally pay watchman on a weekly basis.

Colonel ARNOLD. This list is a support to that, this breakdown by a few of the major trades-how many laborers or mechanics are included in each one of those rates, one at 25, one at 30, et cetera-also extracted from the contractor's certified payroll.

(Colonel Arnold presented the list to the chairman.)

Mr. ELLIOTT. And was this list, styled "Hourly rates paid contractor employees," made up by you or under your direction? Colonel ARNOLD. Under my direction, sir.

Mr. ELLIOTT. Without objection, this list of hourly rates paid contractor employees will be made a part of the record at this point. (The list referred to is as follows:)

Hourly rates paid contractor employees

Designation

$0.25 $0.30 $0.35 $0.40 $0. 45 $0. 50 $0. 55 $0. 60 $0. 65 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1. 10

Laborer.. 1
Mechan-

1

Mr. ELLIOTT. Now, do you have further testimony that you desire to give to the subcommittee at this time, Colonel Arnold?

Colonel ARNOLD. Not unless you so desire me.

Mr. ELLIOTT. Thank you very much, Colonel Arnold.

I see in our audience Colonel Herr (Lt. Col. Norman P. Herr). Colonel Herr, I wonder if you have information or observations that you would care to bring to the committee at this time.

(Lieutenant Colonel Herr came to the witness table.)

STATEMENT OF LT. COL. NORMAN P. HERR

Colonel HERR. I believe you would style my testimony more as an opinion.

The question was asked this morning concerning the possible added costs retroactively, and I believe it probably excluded "prospectively," in the event the statutory rate of $1 were applied to the Canal Zone

contractors.

Labor economics, which I have made some study of, would indicate that if a floor were put under the rates paid to workers, that that floor would become the floor and that the relative skills of workmen would increase proportionately, or would have to increase proportionately, in a short time. Now, even in those instances where the industry unions in the States have been taking across-the-board increases rather than increases based upon skills and trades, the result has been that the manufacturers or the owners-the corporations themselves—in order to keep people in the relatively higher skills, have had to increase those wages proportionately, depending upon the degree of skill. So even without labor agitation, the natural law of labor economics is that when we put a floor under the lowest scale of work, that the other scales relatively and proportionately increase.

So that when you get that report as to the prospective and retroactive liability that the United States would suffer, I think you can conjure up in your own minds the relative increase over and above that figure that would result from this proportionate increase in the other skills. That's all I have.

Mr. ELLIOTT. Thank you very much, Colonel Herr, for that information for our record.

Colonel HERR. Thank you, Mr. Chairman.

Mr. ELLIOTT. Now, Mr. Rerrie in his testimony said there was in the audience a lawyer by the name of—

Mr. Jose de la Rosa Castillo, who is an employee of the United States Government's Air Force on the Canal Zone, the president of one of our local unions, and a practicing attorney in the Republic of Panama. He is present and (perfectly) willing to testify if called.

Now, Mr. Castillo, if you have information that is pertinent to the inquiry here now, the subcommittee will be glad to hear you. (Mr. Castillo came to the witness table.)

STATEMENT OF JOSE DE LA ROSA CASTILLO, AN EMPLOYEE OF THE UNITED STATES AIR FORCE, CANAL ZONE, PRESIDENT OF A LOCAL UNION, AND ATTORNEY IN THE REPUBLIC OF PANAMA

Mr. ELLIOTT. You may proceed, Mr. Castillo.

Mr. CASTILLO. What I was going to mention was the fact that the labor codes of Panama-numerous cases of abuses of contractors' employees. We were unable to ge the correct facts, because all records of Panama are closed for the month of March, but if your committee so desires, we could get that information and ship it to you on the 2d of April, when all the courts of Panama are open again.

Mr. ELLIOTT. What is the occasion of the courts being closed in the month of March?

Mr. CASTILLO. It's a law in Panama. All the courts close for vacation for the matter of saving money.

Mr. ELLIOTT. Are you a member of the bar of the Republic of Panama?

Mr. CASTILLO. Well, they do not have a bar in the sense they have it in the States. But the only thing that is required to practice law in Panama is a graduate, and then get a certificate from the supreme court, and you are capable of practicing law in court.

Mr. ELLIOTT. And you are a graduate, and you have that certificate? Mr. CASTILLO. Yes.

Mr. ELLIOTT. You represent clients in any of these cases in the labor courts you mentioned?

Mr. ČASTILLO. Once in awhile.

Mr. ELLIOTT. Your regular employment, I gather from what is said here, is that of "an employee of the United States Government's Air Force on the Canal Zone"; is that right?

Mr. CASTILLO. Yes.

Mr. ELLIOTT. And what type of work do you do?

Mr. CASTILLO. I am a translator.

Mr. ELLIOTT. You are a translator for the United States Air Force? Mr. CASTILLO. Yes.

Mr. ELLIOTT. Do you give that occupation most of your time?

Mr. CASTILLO. Yes, sir. Very seldom I do-twice a year I get to go attend a case I have. The courts close in Panama at 5 and I quit work at 3:30.

Mr. ELLIOTT. And you have somewhat of a time conflict between your duties with Uncle Sam and your duties with the courts; is that right?

Mr. CASTILLO. Well, not very often. If I do have a case, I'll take annual leave and go in.

Mr. ELLIOTT. Do you have any further information, Mr. Castillo, that you desire to bring to the committee at this time?

Mr. CASTILLO. Well, yes, sir. With your permission, I will say about the $1-an-hour minimum wage for the Canal Zone, that an employee of a department of the Republic has published-she was employed by the Panamanian Government in the point 4 program, and she made a pamphlet about the cost of living in Panama in 1950. And I think that the minimum wage of $1 should be applied in the Canal Zone, because with less than $1 it is very hard to have a decent standard of living today.

Mr. ELLIOTT. On the Panama Canal Zone?

Mr. CASTILLO. Yes, sir; in the Republic of Panama, because I would say about nine-tenths of the employees of the Government reside in Panama, and the contract I think is about the same proportion.

Mr. ELLIOTT. Most of the employees of the Panama Canal Company reside in the Republic of Panama; is that correct?

Mr. CASTILLO. Yes, sir.

Mr. ELLIOTT. And this pamphlet you refer to dealing with the cost of living for 1950 showed that the cost of living in the Republic of Panama was, did you say, equally as high as in the States?

Mr. CASTILLO. Yes, sir. Quite a few big cities in the States, I think, is equal to the cost of living in Panama.

Mr. CooN. I'd like to ask one question, Mr. Chairman.

(To Mr. Castillo). You said there are several cases in the courts, of employees suing their contractors?

Mr. CASTILLO. Yes, sir.

73588-56-pt. 2

Mr. COON. Are these contractors who have done work in the Panama Canal Zone or elsewhere?

Mr. CASTILLO. In the zone.

Mr. Coon. Do the courts of Panama have jurisdiction over contract work-———

Mr. CASTILLO. Here is what happens to the employees of the contractors: They are hired under the jurisdiction of the Republic of Panama, but still the work is performed in the Canal Zone.

Mr. Coon. So they are contractors in Panama, and this work has been in the Canal Zone?

Mr. CASTILLO. Yes.

Mr. ELLIOTT. Thank you very much, Mr. Castillo.

Mr. CASTILLO. Thank you.

Mr. ELLIOTT. Now, I would like to say to those present that it is the desire of the committee to gather all the information possible during our stay here this weekend. We feel it's been very helpful to us in the consideration of the problem we have, to actually come to the Panama Canal Zone and hear witnesses testify, as those of you who have appeared have done today. And so far as the Chair is concerned, we have plenty of time. If there is someone else in this audience who feels that he or she can furnish us additional helpful information, we'd be glad to hear them at this time.

Let me say this: that the committee will resume its hearings at 9 o'clock in the morning. And at that time, we have scheduled 2, I believe, or maybe 3, additional witnesses; and if there are others who desire to be heard at that time, we will be glad to see you then.

In the absence of any specific requests for additional time now, the committee will stand adjourned (5:05 p. m.).

MINIMUM WAGES IN CERTAIN TERRITORIES, POSSESSIONS, AND OVERSEA AREAS OF THE UNITED STATES

SATURDAY, MARCH 17, 1956

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE OF THE COMMITTEE

ON EDUCATION AND LABOR,
Balboa Heights, C. Z.

The subcommittee of the Committee on Education and Labor met at 9 a. m., pursuant to notice, in the board room, Administration Building, Balboa Heights, C. Z., Hon. Carl Elliott (chairman) presiding. Present: Representatives Elliott, Coon, and Fjare.

Also present: Fred Hussey, chief clerk; Russell C. Derrickson, chief investigator.

Mr. ELLIOTT. The committee will be in order and we will resume hearing witnesses on the question at issue.

The first witness I have listed on my list is R. L. Blaney, chairman, legislative committee, and alternate legislative representative, of the Canal Zone Central Labor Union and Metal Trades Council, AFLCIO.

You may proceed, Mr. Blaney.

STATEMENT OF R. L. BLANEY, CHAIRMAN, LEGISLATIVE COMMITTEE AND ALTERNATE LEGISLATIVE REPRESENTATIVE OF TH CANAL ZONE CENTRAL LABOR UNION AND METAL TRADES COUNCIL, AFL-CIO, AND AN EMPLOYEE OF THE PANAMA CANAL COMPANY; ACCOMPANIED BY E. W. HATCHETT, PRESIDENT OF SAME ORGANIZATION AND AN EMPLOYEE OF THE CANAL ZONE GOVERNMENT; L. S. DAMIANI, FIRST VICE PRESIDENT OF SAME ORGANIZATION AND AN EMPLOYEE OF THE PANAMA CANAL COMPANY; AND CURTIS COATE, EMPLOYEE REPRESENTATIVE ON THE WAGE AND GRIEVANCE BOARDS OF THE PANAMA CANAL COMPANY AND AN EMPLOYEE OF THE PANAMA CANAL COMPANY

Mr. BLANEY. Mr. Chairman, and members of the committee, my name is R. L. Blaney. I am the chairman of the legislative committee and alternative legislative representative of the Canal Zone Central Labor Union and Metal Trades Council, AFL-CIO. I am employed by the Panama Canal Company, and have lived in the Canal Zone off and on since 1914, and have been employed on the Canal Zone 28 years.