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minority report to the Federation convention in 1935 demanding the recognition of industrial unions in certain industries.

“That is our position. Any talk without this basis is merely futile-waste of time.

Of course, if the American Federation of Labor should desire to join the Committee for Industrial Organization, we would be glad to make known to them the terms upon which they could enter.'

OTIS PLANT ADOPTS 40-HOUR WEEK

The employees of the Yonkers, New York, plant of the Otis Elevator Company will work a forty-hour week instead of their present forty-four hour week, starting the week of August 2nd, it was announced there last week, by Robert Goodwillie, general manager. Most of the 1,200 workers in the plant will be affected by the new order. The plant will operate five days a week, eight hours a day.

CHARGES THAT COMMUNISTS RULE W. P. A. WRITERS; 79% OF AUTHORS

HAVE NEVER PUBLISHED A LINE

Charging that members of the Communist party and the Workers Alliance control the personnel and supervision on the Federal Writers and Theatres Projects, Ralph M. Easley, Chairman of the Executive Council of the National Civic Federation, asked President Roosevelt to have an investigation made of existing conditions.

Mr. Easley also charged that both projects have been characterized by gross inefficiency, waste and that employment was controlled by the Workers Alliance which exacted one week's pay from employees dismissed from their jobs as the price of reinstatement.

People who have never made a living through writing and have no record of ever publishing a line fill 79 per cent. of the jobs. Ninety per cent of the supervisors are Communists or avowed supporters of the Communist movement,” Mr. Easley charged.

GENERAL MOTORS PROTESTS OUTLAW STRIKES; KNUDSEN DEMANDS UNION

RESPONSIBILITY

William S. Knudsen, President of General Motors Corporation, reaffirmed his position that "outlaw strikes” must be stopped if the corporation is to consider renewing its agreement with the union.

In a letter to Mr. Knudsen, Homer Martin, President of the United Automobile Workers of America, had claimed that the reason that the union had violated provisions of the existing agreement which prohibited stoppages until the grievance procedure had been exhausted was that the grievance procedure was not satisfactory. In answer to this Mr. Knudsen stated:

“In none of the over 200 cases in which a strike occurred, did your organization follow the grievance procedure to a conclusion. In many cases the strikes were called before the management was aware of any claim that a grievance had arisen.

"It is obvious that it is not the grievance procedure which is responsible for the failure of the union to keep its agreement.

"Our position stated in my letter of June 23, 1937, is unchanged. We there suggested as a necessary stipulation covering the responsibility for interruptions to production the following:

'Until after all the steps set forth in the grievance procedure set up in this agreement have been complied with, no strike shall be called, and there shall be no refusal to work or stoppage of production in whole or in part due to the union, its officials or members, and for a violation of this provision, the company shall forthwith discharge the employee or employees guilty thereof, and the union shall take suitable disciplinary action against the parties responsible.

'For failure on the part of the union to take such action, or to prevent strikes and stoppages to production, as herein provided for, the company shall have the right to terminate the agreement.' [5]

BROUN'S ACTIVITIES ASSAILED BY GREEN William Green, president of the American Federation of Labor, sharply assailed Heywood Broun, president of the American Newspaper Guild, in a statement recently in which he said that Mr. Broun had “sold down the river" the newspaper

men of the country and, in taking the Guild into the C. I. O. had been “inspired by some very astute Moscow-trained revolutionaries."

Referring to referenda now being taken by various units of the Guild on actions of the recent national convention of the Guild in St. Louis, and particularly the action Friday night of the Washington Guild in repudiating the convention, sug. gested that Mr. Broun resign the presidency of the Guild pending the outcome of the referenda.

SIT-DOWN STRIKE BARRED BY PHILADELPHIA COURT Declaring a sit-down strike of leather goods workers "un-American and communistic,” Judge Harry S. McDevitt of the Common Pleas Court of Philadelphis issued a preliminary injunction today, ordering the ejection of 204 sit-downers from the plant of the McNeely & Price Company.

Judge McDevitt gave the strikers an hour to vacate the property. Without waiting for formal service of the court's order, they left before the hour was up.

The injunction, directed against the National Leather Workers Union, a C. I. O. affiliate, was opposed by Norman Griffin, attorney for the union. The court was without jurisdiction, he contended, because the company was engaged in interstate

Do you mean that an American citizen has to come to terms with people who are occupying his plant?asked Judge McDevitt. “That's communistic. If my cook did that I'd throw her out."

commerce.

PAINTERS STRIKE AT FEDERAL CONSTRUCTION IN WASHINGTON

A score of painters started a strike which may spread to the 5,000 building trades workers now employed on federal construction in Washington. The trouble started this week when the painters went on strike charging that the contractor gave preference to non-union painters in picking men.

Union spokesmen threatened a general strike on all federal projects unless the contractors on the Internal Revenue and City Post Office jobs were required to use union labor.

"SIT-DOWN BOSS” WINS IN NEW STRIKE One hundred and fifty employees of Fry Products, Inc., of Detroit, the plant of which was closed by their boss after they had voted to stand by their union, changed their minds later and voted to return to work.

Walter L. Fry, the original “sit-down boss,” told the workers in his automobile seat cover plant that he would quit business rather than deal with the United Automobile Workers of America, which he called "irresponsible.”

He closed the plant, leaving 250 workers idle. The 150 held a mass meeting then and decided to return to work.

Mr. Fry gained nation-wide attention in February by staging his own sit-down in his office when his employees went on a sit-down strike in the plant.

OFFER TO LET LABOR RUN MAINE SHOE FIRM

Proprietors of the Lenox Shoe Company at Freeport, Maine, scene of the labor conflict since June 28th, have offered with reservations, to turn over the plant for operation by employees on a cooperative basis.

Hyman Merskey of Portland, spokesman for Merskey Brothers, the owners, said they would reserve the right to study the books of the new management every three months and if a loss resulted take over the plant again. The mill normally employes 800 men.

The offer, made to Arthur W. Goodwin, president of the Boot and Shoe Workers Union, an affiliate of the American Federation of Labor, was accompanied by a declaration that the proprietors would provide capital to further the cooperative venture. They added that a portion of the profits could be paid proportionately to Merskey Brothers.

C. I, 0. RIOTERS CHARGED WITH CRIMINAL CONSPIRACY IN MEMORIAL DAI

RIOT IN CHICAGO; POLICE EXONERATED As a result of evidence produced at the inquest investigating the Memorial Day riot at the Republic Steel Plant in South Chicago charges of criminal conspiracy against more than two score of the rioters and their leaders will be pressed by the state attorney's office.

The corner's jury returned a verdict of "justifiable homicide" in the case of each of the ten men killed.

Coroner Frank J. Walsh said that he believed that the transcript of evidence presented a full and fair story of the strike riot. Contrasting the local hearing with the one staged at Washington by the La Follette Civil Liberties Committee he said, “We must have called nearly ten times as many witnesses as the La Follette committee did. Those witnesses represented both the police and the strikers, and an especial effort was made to obtain impartial witnesses who have no leanings toward either side.”

(6]

SURVEY OF VACATION PLANS In the past vacation privileges were regarded as the criteria which distinguished the office worker from the factory worker. Office workers, of course, have been generally paid on a salary basis and whenever required to work overtime, they did not receive any increased compensation. On the other hand, hourly and piece rate workers have been customarily only paid for time actually worked, in fact they were rarely even paid for general holidays. When it became necessary for them to work overtime they were paid at least their regular rate and, in most cases, at a higher rate ranging from time and a quarter to double time.

THEORIES OF VACATIONS

Of course,

However, during the last decade many industrial plants have adopted a policy of giving paid vacations to hourly and piece rate workers. According to a study made in 1929 of 6,163 industrial plants, employing two and a half million people, it was found that 1,057 establishments gave vacations with pay. during the depression, due to the necessity of the times, a great many companies were forced to abandon or seriously modify vacation plans. Since the upswing of business in 1934, there has been a marked increase in the policy of giving vacations with pay to wage earners. Many new plans have been installed by industrial concerns and many of the older plans have been made more liberal, or re-established after having been discontinued during the depression.

Employers generally premise their vacation policy upon two theories: First, that vacations are usually a reward for long service, regular attendance and punctuality, and second, that vacations are considered primarily as an investment in health from which the company receives dividends in the form of more and better work.

The majority of vacation plans undoubtedly are based on both theories since the length of service and the up-building of health (mental and physical) are important considerations in almost every plan.

FORD PLAN YIELDS $400,000 TO EMPLOYEES
Approximately $400,000 will be paid to 20,000 Ford employees in
the next few days as a semi-annual return on savings in the Ford in-
vestment plan.

Employee savings now total $13,300,000 and are at the largest total
since 1932. Savings and returns increased by about 20 per cent last year.

The Ford plan permits employees to pay into the Investment Fund as savings up to one-third of their salaries. Returns are paid semi-annually at a rate guaranteed to be not less than 442 per cent annually. Currently the rate is 7 per cent.

TYPES OF VACATION PLANS

In the consideration of any vacation program, it is important that careful study and analysis be made of the kind of plan which is best suited for an individual organization. The choice of any plan rests between two types—the successive and the shut-down. The adoption of the successive plan requires that vacations be scheduled over several months, or possibly the entire year, without any interruption of operations in the meantime. On the other hand, the shut-down plan provides vacations for all employees simultaneously during a temporary cessation of production. An analysis of many plans in operation, indicates that approximately 70% schedule vacations over an extended period of time and the remaining 30% operate under a shut-down plan.

In considering the type of plan which is to be adopted, such factors as the nature of the product, the type of process and seasonality of demand, have an mportant influence in the determination of the plan to be adopted.

1. Successive Vacations. The majority of employees favor the successive vacation plan due to the following reasons:

(a) It is impractical and impossible due to certain processes in some industries to shut down the plant.

(6) Operations cannot be suspended due to continuous demand for products and services.

(c) Impossibility of manufacturing for stock certain products which must be consumed immediately upon production.

This type of plan is preferable from the employee's viewpoint due to the following reasons:

(a) Each worker has an opportunity to select the time of his vacation. (b) Employees not eligible for vacations suffer no loss of wages under this plan.

The employee is generally allowed to choose the date of his vacation provided there is no conflict with other people in the choice of vacation dates which would seriously impair or lower production. In such cases preference is given to seniority of service.

2. Shut-Down Vacations.—There are several factors which influence companies to adopt this type of plan, the most important being:

(a) It is a more satisfactory method of passing through a period of slack business.

(6) It provides an opportunity to make necessary repairs to machinery. (c) It provides an opportunity of obtaining an inventory of the product.

When such a plan is adopted by a company all employees who are entitled to a vacation receive pay while those who are not eligible take the time off without pay. Companies maintain skeleton forces which are employed during the shutdown and insure maintenance and service to the customers. [7]

ELIGIBILITY The differences among various vacation plans studied are the greatest in so far as eligibility requirements are concerned. In some instances it has been found that only nominal service of a few months or a year is required to qualify for vacations. In other plans requirements are set so high that all except long service employees are excluded from the vacation privilege. Most plans make provision for absence of employees due to military and jury service.

LENGTH OF VACATION The lengths of vacations are pretty uniform throughout all these plans. The standard vacation period for office employees, is, of course, two weeks and this length has rarely been exceeded in plans for wage earners. The majority of plans for wage earners provide for a single week.

There are two types of plans which are used in determining the length of the vacation period: first, is what is known as the "uniform type," which provides a vacation of a fixed length for all eligible wage earners; the other is known as the "graduated type” and the vacation period is dependent on the years of service of the employee. In other words the length of the vacation is increased according to the length of service until a maximum of two weeks is reached.

In 1935 the National Industrial Conference Board made a survey of the vacation plans which were in effect in 1935. The results of this survey showed:

1. That half of the vacation plans for wage earners recorded in 1931 have continued without interruption and are still in force.

2. That nearly one-quarter of the suspended plans have been reinstated. 3. That the rate of establishment of new plans is increasing. mire than three-quarters of the vacation plans examined have either

ps of a character to reduce their attractiveness to employees, mt her liberalized.

the length of vacation or by reducing the rate of vacation iry in 23.2% of the plants to reduce the burden caused by stricting eligibility.

of staggering vacations over several months, with the peration, is preferred by 4 out of 5 companies. et to close the plant completely, while all vacations are

1

8. That there is no pronounced preference between uniform plans, in which all employees fulfilling the service requirement receive a vacation of fixed length, and the graduated plans, in which the length of vacation is regulated by years of service. Uniform plans were in effect in 44.6% and graduated plans in 55.4% of the companies covered in the survey.

9. That although specifications of different plans vary to a considerable extent, what might be called the standard plan, or the one favored by the largest number of companies, provides one week of vacation for employees who have worked for the company one year or longer.

10. That practically all companies with vacation plans pay wage earners their full rate during their vacation absence and in about three-quarters of the companies this payment is made before the vacation begins.

11. That a majority of companies permit employees to take additional vacation time at their own expense.

TYPICAL VACATION PLANS

Armour & Company.This company has adopted what is known as the successive type of plan which is operated throughout the year.

The length of the vacation is dependent upon whether an employee is male or female and also upon the length of service. In addition, employees have the privilege of either taking their vacations or receiving extra compensation for the vacation period allowed. Male and female employees with two years' service are entitled to one week's vacation; male and female employees with five years' service are entitled to two weeks' vacation; female employees with fifteen years' service are entitled to three weeks' vacation, whereas male employees must have a service record of twenty years to be entitled to a like period.

Bird & Son.-This company had adopted the successive type plan which is in operation from June 1st to September 30th. Employees with a service record of two to five years are entitled to one week's vacation; employees with a record of five years or more are entitled to two weeks' vacation and employees with fifty years service are entitled to one month. Preference as to vacation dates is based upon seniority.

E. I. du Pont de Nemours & Co.- This company adopted in 1934 the successive type of plan for vacations, which is in operation the year 'round. All employees who have been in the employ of the company for one year or more are entitled to two weeks' vacation which may be drawn in advance.

General Foods.—This corporation has the successive type of vacation plan in operation the year 'round and employees who have been employed two to five years are entitled to one week's vacation and over five years two weeks' vacation.

Goodyear Tire & Rubber Co.—This company has the successive type of vacation plan in operation the year 'round. Those who have been in the employ of the company five years are entitled to one week's vacation, while those in the employ of the company ten years are entitled to two weeks' vacation.

International Harvester Co.-This company has the successive type in operation and those in the employ of the company for two years are entitled to one week's vacation while those employed five years are entitled to two weeks.

Packard Motor Company.-All hourly rate employees are given a vacation credit of one-half day for every calendar month that they are employed. If they are discharged or laid off before sufficient vacation credits have been built up entitling them to a vacation, the credits which are due them are granted as separation pay.

Procter & Gamble.--All hourly workers who have worked two years for this company are entitled to one week's vacation.

Standard Oil Company of Ohio.-Employees with a service record of one to five years are entitled to one week's vacation.

United States Steel.—This corporation has the successive type of plan in operation the year 'round and all employees who have been in the service of the company for five years are entitled to one week’s vacation.

Weirton Steel Company.--This corporation has inaugurated a plan whereby the employees can either take a vacation or work and get paid the equivalent for the vacation they are entitled to. Vacations are given to everybody employed by the company for a period of one year or more. The length of vacation varies from two days for those with one year's service, six days for those with a service record of five to ten years, eight days for those with a service record of ten to fifteen years and ten days for those with a service record of over fifteen years,

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