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TO CREATE A NATIONAL LABOR BOARD

MONDAY, MARCH 26, 1934

UNITED STATES SENATE,

COMMITTEE ON EDUCATION AND LABOR,
Washington, D.C.

The committee met, pursuant to adjournment, at 10 a.m., in the caucus room, Washington, D.C., Senator David I. Walsh (chairman) presiding.

Present: Senators Walsh (chairman), Murphy, Thomas, Erickson, Borah, Walcott, and Davis.

The CHAIRMAN. The committee will come to order. Mr. Emery, are you ready to proceed?

Mr. EMERY. I am, sir.

STATEMENT OF SENATOR DAVID I. WALSH

The CHAIRMAN. The Committee on Education and Labor of the United States Senate is in session this morning, conducting a hearing on Senate bill 2926, introduced by Senator Wagner. In view of the fact that the proceedings are to be on the radio, I will make a brief statement to inform those listening in of earlier proceedings. The Democratic members of this committee are as follows: David Ï. Walsh, Massachusetts, chairman; Royal S. Copeland, New York; Park Trammell, Florida; Hugo L. Black, Alabama; Louis Murphy, Iowa; Elbert D. Thomas, Utah; John E. Erickson, Montana. The Republican members are: William E. Borah, Idaho; Jesse H. Metcalf, Rhode Island; Frederic C. Walcott, Connecticut; Robert M. La Follette, Jr., Wisconsin; James J. Davis, Pennsylvania.

The title of Senate bill 2926 is:

To equalize the bargaining power of employers and employees, to encourage the amicable settlement of disputes between employers and employees, to create a National Labor Board, and for other purposes.

Since Wednesday, March 14, the committee has been holding daily sessions. A vast amount of evidence has been submitted by representatives of organized labor, students of industrial relations, delegations from employees, and various citizens who have been serving on the National Recovery Labor Board, which has been dealing with the labor disputes arising out of the codes adopted by the National Recovery Act.

This morning, the committee will hear James A. Emery, who is General Counsel for the National Manufacturers' Association, and who has, for years, represented the employers' side of industrial questions affecting the public interest, before committees of the Congress.

The bill which we are considering, has as its objective the creation of a National Labor Board, which shall have the power to interpret and administer section 7-A of the National Recovery Act.

Section 7-A of the National Recovery Act is a provision, incorporated into that law, for the employment of certain rights by employees in industry.

The National Recovery Act, briefly stated, is a law passed by the Congress, for the purpose of helping to bring about the recovery of industry, by repealing some of the laws that industry believed were retarding recovery. It was referred to, at the time it was passed, as a partnership between the Government and employers, for the purpose of removing ruthless competition in industry, and for helping industry to get back on a profit-making basis, and to maintain the former high standard of wages and labor conditions that prevailed during the era of prosperity. One of its objectives also was to lessen the hours of labor, so as to spread out employment, and also to maintain a reasonably high wage, in order to maintain the purchasing power of the country, notwithstanding the reduction of hours of labor.

In the National Recovery Act there was incorporated a section known as section 7-A, which, for the first time in a legislative act, declared certain rights in behalf of employees.

The bill now before us is the outcome of this declaration of labor rights in section 7-A. Section 7-A conceded to labor the following rights (abbreviated):

Every code agreed to under the National Recovery Act, shall contain the following abbreviated provisions:

1. That employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from interference or coercion of employers of labor or their agents in the designation of such representatives.

2. That no employee shall be required, as a condition of employment, to join any company union or be restricted from joining organizations or assisting any labor organization of his own choosing—

Quoting from the law. The Labor Board set up by President Roosevelt to give force and effect to this section, namely, section 7-A of the National Recovery Act, has been operating since the passage of this law. It is composed of 11 members, 5 representing labor, 5 representing employers, and Senator Wagner, of New York, is the chairman of this Board.

Many of the members of this Board, particularly the labor members and Senator Wagner, claim to have discovered many alleged defects in the administration of section 7-A. These defects, they claim, are numerous, and it is a result of the defects which they allege were discovered in the administration of section 7-A that this bill was presented to the Congress.

The chief claim made, and perhaps the chief defect asserted, is that there can be no real collective bargaining under section 7-A, unless the law is strengthened. The reason, they urge, is that real collective bargaining is not possible where unions of employees are organized under the direction, through the influence, and with the approval of employers. These unions, called "company unions", have grown up rapidly since the passage of N.R.A. The Labor Board asserts that practically all the labor disputes that have arisen since N.R.A. have been as a result of clashes between employees and

the employers, growing out of the insistence upon the part of employers, in organizing company unions, and thereby denying the employer freedom of organization.

Now, as to the enforcement sections of the bill, the present Labor Board asserts that is has sought to apply section 7-A, by relying upon the prestige of its members, and by appealing to public sentiment. During the summer months, they say these methods met with great success, but in recent months the Board has been confronted by some large employers-of course, presented by members of the Labor Board-"who ignore public sentiment, who flaunt the clear intent of Congress, and who are a law unto themselves." These words are Senator Wagner's own words. This, they say, "is extremely unfair to the vast majority of employers, who want to obey the law, and disheartening to the millions of working people who see that which was held up to them as a new charter, being treated as a "scrap of paper."

The bill, presented to the Congress for approval, provides for a permanent board, with adequate enforcement provisions. It defines as unfair labor practice any attempt by employers to dominate labor unions or to fail to recognize the duly chosen representatives of their employees. It also defines several other practices of employees as unfair.

When complaint is made of an unfair labor practice, the Board is authorized to hold meetings, subpena witnesses and records, and if the law is violated, issue a restraining order enforceable in the court. The Labor Board is empowered to act also as conciliator and mediator. Very briefly, this outlines the objective of the bill which is now under consideration by this committee, and I will now ask Mr. Emery, who is the representative and attorney of the National Manufacturers' Association, to address the committee.

Mr. Emery, your full name.

Mr. EMERY. James A. Emery.
The CHAIRMAN. Your residence?

Mr. EMERY. Washington, or Chevy Chase, Md.

The CHAIRMAN. Attorney at law?

Mr. EMERY. Yes, sir.

The CHAIRMAN. Whom do you represent, in appearing this morning before this committee?

Mr. EMERY. I speak for the National Association of Manufacturers, and for some 38 State associations of manufacturers, a list of which I file with the committee.

The CHAIRMAN. How many manufacturers do these associations represent?

Mr. EMERY. Between forty-five and fifty thousand, roughly speaking.

The CHAIRMAN. What class of manufacturers?

Mr. EMERY. If you will permit me, Mr. Chairman, I will cover that in the statement, if I may go ahead.

The CHAIRMAN. Very well.

Mr. EMERY. Thank you.

The CHAIRMAN. You may proceed, Mr. Emery.

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