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Dorsett, Gilbert G., a past president, Sheet Metal and Air-Conditioning
Contractors' National Association, Inc., accompanied by Robert B.
Wood, vice president, Limback Co., Pittsburgh, Pa.; and James H.
Ferguson, director, Industry Relations, Sheet Metal and Air-Con-
ditioning Contractors' National Association, Inc.--
Graney, J. M., labor relations manager, Ebasco Services, Inc., of New
York, and past president, National Constructors Association, accom-
panied by George R. Collins, vice president, Lumbus Co., and president,
National Constructors Association..

Prepared statement with attachment..
Haggerty, C. J., president, Building & Construction Trades Department,
AFL-CIO, accompanied by Louis Sherman and Bryce Holcombe,
representing the Brotherhood of Painters, AFL-CIO; Joseph Power,
vice president of the Plasterers, AFL-CIO; and John T. Joyce, treasurer,
Bricklayers, Masons & Plasterers International Union of America,
AFL-CIO

Supplemental statement..

Healy, John E., II, Wilmington, Del., representing the Associated General
Contractors of America....

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Kromer, Leon B., Jr., executive vice president, Mechanical Contractors
Association of America, Inc___

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Lindsay, William H., Jr., executive vice president, Mechanical Contractors
Association of Philadelphia, Inc., Philadelphia, Pa., prepared statement
Mack, J. D., executive manager, Plumbing-Heating-Cooling Contractors of
California, prepared statement..

Montgomery, John M., counsel, National Paint, Varnish & Lacquer
Association, Inc., prepared statement__

Mutter, Lawrence P., executive director, National Association of Plumbing-
Heating-Cooling Contractors, accompanied by J. D. Mack, executive

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Raftery, S. F., general president, Brotherhood of Painters, Decorators &
Paperhangers of America, AFL-CIO, prepared statement..
Rinehart, Charles W., manager, industrial relations, Ohio Contractors
Association, prepared statement..

Taylor, Harry P., executive director, General Building Contractors Asso-
ciation, Inc., accompanied by William J. Curtin and Park B. Dilks,
attorneys for the General Building Contractors Association, Inc.-

Communications to:

ADDITIONAL INFORMATION

Harris, Robert O., counsel, Senate Labor Subcommittee, of the Labor
and Public Welfare Committee, from:

Casey, Frederick J., director, M. J. Flaherty Co., Mechanical
Contractors, Boston, Mass., May 13, 1968.

Davis, John P., executive secretary, Metropolitan Detroit Plumb-
ing Contractors Association, Mechanical Contractors' Associa-
tion of Detroit, May 15, 1968, with attachment_

Glanz, E. F., Glanz & Killian Co., Detroit, Mich., May 10, 1968-
Kleinkauf, Henry, president, Natkin & Co., Omaha, Nebr.,
May 10, 1968-

Ponseti, Anthony J., executive secretary, Mechanical Contractors
Association of New Orleans, May 14, 1968---

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Javits, Hon. Jacob K., a U.S. Senator from the State of New York,
from:

Hanna, Clarence C., executive vice president, Builders Association
of Mahoning Valley, Youngstown, Ohio -

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Mintz, Alvin, president, Shaker Air Conditioning Co., Cleveland,
Ohio, May 6, 1968-

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Morse, Hon. Wayne, a U.S. Senator from the State of Oregon, from
Harry P. Taylor, executive director, General Building Contractors
Association, Inc., Philadelphia, Pa., April 25, 1968.

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Communications to Continued

Yarborough, Hon. Ralph, a U.S. Senator from the State of Texas,
from:

Adams, Robert D., president, Mechanical Contractors Associa-
tion of Spingfield, Mo., May 13, 1968--

Allison, Robert E., American Sheet Metal Co., Dallas, Tex.,
et al., May 6, 1968, with attachment_..
Bauer, Marcus, president, Sheet Metal & Air Conditioning,
Contractors Association of St. Louis, Mo., May 17, 1968 - - -
Biemiller, Andrew J., director, Department of Legislation,
AFL-CIO, Washington, D.C., May 20, 1968.

Brown, Arthur H., president, Brown Sheet Metal & Mechanical,
Inc., West Oakdale, Calif., May 17, 1968-

Crabb, Hugh T., Crabb Plumbing and Heating, Denver, Colo.,
May 10, 1968-

Davidson, Richard Q., executive vice president, Quint-Cities
Heating, Air-Conditioning, and Sheet Metal Contractors,
Bettendorf, Iowa, April 2, 1968.-

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Davis, Ivy E., Houston Sheet Metal Contractors Association,
Houston, Tex., May 13, 1968 -

Donovan, Robert W., Wm. J. Donovan Co., Philadelphia, Pa.,
April 24, 1968, with attachment_

Farbman, Leonard X., M. Farbman & Sons, Inc., New York,
N. Y., May 7, 1968-

Fitzgerald, J. E., Jr., executive secretary, Illinois Association of
Plumbing, Heating, Cooling Contractors, Chicago, Ill., May 3,
1968

Freedman, Ed, executive secretary, Northeast Louisiana Con

tractors Association A.G.C., Inc., Monroe, La., April 8, 1968-
Gordon, Robert L., president, Los Angeles Area Chamber of
Commerce, Los Angeles, Calif., May 1, 1968, with attachment_
Gray, L. Mark., executive director, Associated Plumbing & Heat-
ing Contractors of Washington, Inc., Seattle, Wash., May 9,
1968, with attachment_ _ _

Griffin, Jerry, executive secretary, SMACNA Puget Sound, Inc.,
Ventilating Contractors Division, Seattle, Wash., April 17,
1968--

Hardesty, George R., Jr., president, Associated Plumbing Contrac-
tors of Maryland, Inc., Baltimore, Md., May 14, 1968.
Henderson, Barkley S., executive manager, Florida east coast
chapter, Associated General Contractors of America, Inc.,
West Palm Beach, Fla., April 8, 1968.

Kopff, Milton W., president, Plumbing Contractors Association of
Metropolitan St. Louis, May 10, 1968.

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Mancini, Brooks T., president, Resilent Floor Covering, Central
Coast Counties, San Jose, Calif., April 8, 1968-
Peterson, M. H., Peterson Plumbing, Inc., Modesto, Calif, May
17, 1968.

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Riley, John J., director of labor, National Association of Home
Builders, Washington, D.C., March 21, 1968.

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Roach, J. Robert, executive secretary, Miami Valley Sheet
Metal Contractors Association, Dayton, Ohio, April 5, 1968...
Ross, W. D., executive director, Mechanical Contractors Associa-
tion of New Mexico, Inc., Albuquerque, N. Mex., May 8, 1968--
Showalter, David M., secretary, Plumbing, Heating, & Cooling
Contractors Association of Northwestern Ohio, Inc., Toledo,
Ohio, May 9, 1968.

Smith, W. Channing, executive manager, Indiana Association of
Plumbing, Heating, Cooling Contractors, Inc., Indianapolis,
Ind., May 9, 1968-

Syers, Parke, executive secretary, Associated Plumbing &
Mechanical Contractors of Tampa, Inc., May 13, 1968---
Thurber, Lou, executive director, Colorado Pipe Trades Industry
Program, Denver, Colo., May 14, 1968.

West, Roy J., executive vice president, Minnesota Association
of Plumbing, Heating, Cooling Contractors, Inc., Minneapolis,
Minn., May 9, 1968, with attachment...

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Local No. 2 of the Operative Plasterers & Cement Masons International Association, etc., et al., appellants v. Paramount Plastering, Inc., et al., appellees, No. 17572, U.S. Court of Appeals, Ninth Circuit, November 7, 1962.

Memorandums to:

Senate Subcommittee on Labor from the Florida west coast chapter
of the Associated General Contractors of America re its opposi-
tion to S. 3149, April 16, 1968...

U.S. Senators, from the Sheet Metal & Air Conditioning Contractors
Association of St. Louis.

National Constructors Association 1968 annual directory-.

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26

TO ALLOW JOINT INDUSTRY PROMOTION FUNDS

TUESDAY, MAY 21, 1968

U.S. SENATE, SUBCOMMITTEE ON LABOR, Washington, D.C.

The subcommittee met at 9:30 a.m., pursuant to call, in room 4232, New Senate Office Building, Senator Ralph W. Yarborough (chairman of the subcommittee) presiding.

Present: Senators Yarborough (presiding) and Fannin.

Committee staff present: Robert O. Harris, counsel to the subcommittee; and Eugene Mittelman, minority counsel.

Senator YARBOROUGH. The Subcommittee on Labor will come to order.

We are holding hearings today on my proposal, S. 3149, a bill to amend the Labor-Management Relations Act in order to allow management and labor to bargain collectively over the establishment of jointly administered industry promotion funds and programs for joint committee or joint boards empowered to interpret and decide arbitration cases arising out of the provisions of collective bargaining agreements.

Section 302 of the Labor-Management Relations Act, the portion being restrictions on payments to employee representatives, prohibits all payments by employers to employee representatives for purposes of this section unless they are specifically excepted in this section.

The purposes of this section are to eliminate bribery, extortion, shakedowns, "sweetheart contracts," and other corrupt practices and to protect the interests of beneficiaries of lawful employer supported funds.

Among the lawful funds are those established for medical or hospital care, pensions on retirement or death of employees, compensation for injuries or illness resulting from occupational accidents or insurance to provide any of the foregoing, or unemployment benefits or life insurance, disability and sickness insurance, or accident insurance, pooled vacations, holiday, severance or similar benefits, or apprenticeship or other training programs.

Recent judicial decisions have declared that employer contributions to produce promotion programs administered jointly by trustees representing labor and management are outside the scope of exceptions to section 302.

Product promotion programs are not unlawful. Collective bargaining on the subject of product promotion programs is not unlawful. But joint labor-management administration of such programs is unlawful because the courts have ruled that this is a restricted payment to employee representatives prohibited by section 302.

This bill would add two more specific exceptions to section 302jointly administered product promotion programs and jointly administered committees for the interpretation of collective bargaining agreements thereby legalizing such jointly administered programs. At this point in the hearing record, without objection, the text of S. 3149 and departmental reports on the measures as are subsequently provided, will be inserted.

(The material referred to follows:)

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