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to date the minimum of 40 cents enacted in 1938, and represents, therefore, only a small step toward the objective of the Fair Labor Standards Act

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to correct, and as rapidly as practicable, to eliminate labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers.

It is imperative, however, that even this minimum be enacted immediately to prevent a further deterioration of the standards set in 1938 and to continue the economy on the road to an American standard of living for the families of American workers.

The Congress of Industrial Organizations strongly urges extension of the coverage of the Fair Labor Standards Act to those workers not yet provided for. The Amalgamated Clothing Workers of America is particularly interested in the extension of coverage to workers in laundries, cleaning and dyeing establishments, and retail trade. More than 40,000 laundry and cleaning and dyeing workers in various cities throughout the country are members of the Amalgamated Clothing Workers, and recently, at the request of the Congress of Industrial Organizations, the Amalgamated undertook the unionization of the large, unorganized sections of retail trade workers.

Retail and service workers constitute an important segment of the national economy. More than 4,000,000 workers are employed in retail trade, while laundry and cleaning and dyeing workers represent an additional third of a million. Despite their economic importance, these groups of workers have been largely unprotected with regard to their wages and working conditions.

Only 26 States and the District of Columbia have minimum-wage laws. Of these, 23 have orders covering laundry workers, 20 for cleaning and dyeing workers, and 20 for workers in retail trade. Even where State wage orders have been issued, however, they have been. inadequate to meet the cost of maintenance at a level of health and decency. The highest State determination for any of these groups is 65 cents in California. But there still exist laundry orders as low as 20 cents an hour in Kentucky and 24 cents an hour in Illinois and Minnesota; cleaning and dyeing orders as low as 20 cents an hour in Kentucky and 28 cents an hour in New Hampshire; and retail trade orders as low as $11 a week in Colorado and 3212 cents an hour in the State of Washington. Surely these State minimum-wage determinations afford little protection of the living standards of retail and service workers.

Laundry workers have been among the most exploited of all groups of workers. The Bureau of Labor Statistics made a survey of the earnings of power laundry workers in 33 cities in July 1948 and found that the average wages of flatwork finishers, the largest single occupation group, ranged from 37 to 91 cents an hour. In four cities flatwork finishers' average hourly earnings were less than 40 cents an hour. and in more than half of the 33 cities less than 65 cents an hour. The need for minimum-wage protection is self-evident from an examination of these figures.

The picture is somewhat different where laundry workers have been organized. Virtually all of the laundry workers in the New York City area have been working under Amalgamated Clothing Workers agreements since 1937. Prior to their unionization, it was not unusual

for these workers to work as long as 12 or 14 hours on certain days during the week and a total of as many as 70 hours a week. Their take-home pay was frequently as low as $6, $8, or $10 a week. There was no State minimum wage in effect in 1937 when the first Amalgamated contract was signed providing for a 35 cents an hour minimum. Since then the contract minimum wages have more than doubled and are now 73 cents in the family and wholesale laundries and 75 cents in the linen supply and flatwork laundries. Average hourly earnings, 36 cents in 1937, are now 92 cents. It is obvious from the findings of the Bureau of Labor Statistics that the conditions of laundry workers in areas where there is no substantial union organization are much less favorable.

The service and retail workers in America are largely unorganized and need the protection of the law to correct their substandard wages. Retail workers perform valuable functions in our economy, and the work of laundry and cleaning-and-dyeing workers is essential to American industry and the health and well-being of the American people. There is no valid reason for the exclusion of these groups of workers from the benefits of the Fair Labor Standards Act. The Congress of Industrial Organizations vigorously urges that the protection of the act be fully extended to service and retail workers.

Mr. KELLEY. Mr. Kennedy, have you any questions?

Mr. KENNEDY. Yes; I have a couple of questions I wanted to ask Mr. Barkin. Could you tell me whether any of the textile workers in the North or South will be affected by this raise in minimum wages? Mr. BARKIN. No, sir.

Mr. KENNEDY. None at all?

Mr. BARKIN. Well, there might be an isolated plant here or there. As a matter of fact, it would be very difficult for me to call that kind of plant to my mind immediately, but there might be some plant hidden away. But it would be inconsequential, if there are some.

Mr. KENNEDY. Is it your idea that if minimum wages are raised in an industry which will be affected, it will result in a general increase in wages all along? Was that the experience?

Mr. BARKIN. No; it will not. I think it is safe to say that the establishment of the 75-cent minimum wage will have practically no effect— I am sure it will have none except possibly that in one or two marginal places, marginal in the sense that they are paying below. But it will have no general effect.

Mr. KENNEDY. I see.

Mr. BARKIN. I do not think the 75 cents will carry over into any industries other than those directly affected; that is, to carry over economic effects.

Mr. KENNEDY. In factories where this minimum wage becomes effective and an unskilled worker getting 60 cents goes up to 75 cents, don't you think that the worker who is now getting 80 cents will want his wage put up to keep the proper differential between him and the worker who formerly got 60 cents and who now gets 75 cents due to Government action?

Mr. BARKIN. Generally, our experience under the wage-and-hour law was that it does not carry over as a general rule. In some places, it may; in some places it may immediately affect a few people near the minimum, but it is rather interesting that-again citing the textile industry, because it was the No. 1 case under the wage-and-hour

law-the rise in the minimum wage generally resulted in only an effect at the minimum, and groups immediately close thereto, with the result that there was an increasing clustering of people at the minimum. It does not carry over into the higher wage groups.

Mr. KENNEDY. I have another question: The other day somebody raised the point that the lumber industry in the South-because of the nature of the work-could not compete with the lumber industry in the State of Washington unless the wages and the cost were very low, because they have entirely different problems which raise the price in the South.

Do you think that is a statement which has any general applicability to this problem?

Mr. BARKIN. The lumber-industry case has been one of those that has been bandied back and forth in this legislation, and I might refer you to the fact that in our study entitled "Toward Fairer Labor Standards," on pages 33, 34, and 35, I have presented the experience of the lumber industry from 1933 to date; and it is rather interesting that you find that every study which has been made hitherto by the Administrator under the wage-and-hour law or by any legislative administartive agency, has found that the South has enjoyed advantages, freight and others, over the western areas in every one of the wage increases which has been made under the Fair Labor Standards Act. And in our statement here on page 35, we have compared the employment in planing and plywood mills, the straight-time average hourly earnings, and the prices and profits. And all indicate that the lumber industry not only fared well under the Fair Labor Standards Act, but has been economically sound. I think that you will find that a close examination of the industry shows its ability to absorb it, and that the effect of the 75 cents will be very much smaller than any previous legislation has had on it, and all previous legislation has been absorbed with constructive effects in the industry.

Mr. KENNEDY. Now, my last question:

Could you tell me what the average minimum wage is in the various twenty-odd States that have minimum wages?

Mr. BARKIN. Yes.

Mr. KENNEDY. Would you tell me what their average minimum wage is?

Mr. BARKIN. The highest minimum right now is about 65 cents. Then they range downward. I had it the other day. I shall refer you to the specific pages in this volume of Senate hearings where that particular exhibit is printed.

But it must be noted that in a great many States they passed minimum-wage orders during the 1930's, and have never brought them up to date. Most of them, except those which were recently revised, are rather low. The current trend is 65 cents and over.

Mr. KENNEDY. My question was going to be whether you think if we raise this minimum to 75 cents and then perhaps to $1, that we will lift up these minimum wages in the States. Do you think that will be the effect?

Mr. BARKIN. Yes; it will tend to put pressure behind the drive to modernize these laws. I would say one interesting effect of the hear ings before both the House and Senate has been that a number of more progressive States have initiated reconsideration of all their wage orders to bring them in line with current labor standards.

Mr. KENNEDY. Do you not think that is important, if these companies which deal somewhat in interstate commerce are going to compensate intrastate in addition, with other companies that have a lower minimum wage, that we should encourage the raising of the minimum wage in the different States so that it is somewhat on the same level? Mr. BARKIN. Most assuredly. We think that, since there is a division of legislative authority between the States and the Federal Government, it is extremely important to get realistic wage legislation; and a modernization of this law will impel others to reconsider their wage levels.

Miss MILLER. On that point, I quite agree with Mr. Barkin, but I would like to point out that, as a matter of fact, State protection has not been adequate, as I detailed in my own statement, and that that is one reason why we are requesting the inclusion under the protection of the Federal law of certain groups who have not been adequately protected by State laws and who we feel could properly come under the provisions of the act.

For example, in many States reconsiderations of minimum-wage determinations took place within the last year or two. It seems to me extremely doubtful that in such States there would be immediate reconsiderations at this time, because presumably those determinations were made to hold for some period of time following; and in New York State, for example, the minimum wage for laundry and cleaningand-dyeing workers is 572 cents an hour; and this is of course, as I went into in some detail, not sufficient. On the other hand, there is no doubt that it would stimulate the bringing up to higher standards of determinations under State orders.

It is also true that certain changes in the exemptions are needed to give proper protection to workers not now covered. But the State orders themselves are not sufficient.

Mr. KENNEDY. Thank you very much. That is all, Mr. Chairman. Mr. KELLEY. Mr. Bailey?

Mr. BAILEY. I have a question for Mr. Barkin.

In discussing the industry committees that would deal with the minimum rate above the 75 cents in an endeavor eventually to achieve a $1 minimum rate, would there be any advantage of this provision? This industrial committee section of the committee bill provides for the naming of representatives of both the employer and the employees and the public. Would there be any advantage of having the industry and the workers' members of that committee select the public member in preference to having him named by the Administrator?

Mr. BARKIN. I think our experience has been that all the parties have expressed great confidence in the public members which have been selected. They have generally been men who are public leaders and economists and public personages of outstanding reputation and position in our country. Many of them were men like Mr. Nelson, who was a man who later became a War Production Administrator, and it proved to be a very good ground for him to learn intimately the facts of government through this procedure.

Mr. BAILEY. That might be true on the larger levels. But we are dealing here with smaller industries and groups on a local level, and I am wondering whether it would create greater confidence in the committee if that party was named there locally. You did not anticipate sending somebody in from outside to represent the public?

85539-49-vol. 1-20

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ENDMENTS TO FAIR LABOR STANDARDS ACT, 1938

rise in the minimum wage generally resulted in only an he minimum, and groups immediately close thereto, with that there was an increasing clustering of people at the It does not carry over into the higher wage groups. NNEDY. I have another question: The other day somebody point that the lumber industry in the South-because of the he work-could not compete with the lumber industry in thelative authority between the States and the Vashington unless the wages and the cost were very low, is extremely important to get realiste wage ey have entirely different problems which raise the pricemization of this law will impel others to

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hink that is a statement which has any general applicability. On that point, I quite agree with Mr. Is point out that, as a matter of fact, State pr as I detailed in my own statement, an we are requesting the inclusion under the of certain groups who have not been laws and who we feel could properly o

The lumber-industry case has been one of those that andied back and forth in this legislation, and I might refery fact that in our study entitled "Toward Fairer Labor Stand Jages 33, 34, and 35, I have presented the experience of the lustry from 1933 to date; and it is rather interesting that at every study which has been made hitherto by the Admin nder the wage-and-hour law or by any legislative adminis

ency, has found that the South has enjoyed advantages,tful that in such States there would be in

d others, over the western areas in every one of the wage which has been made under the Fair Labor Standards Act.

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and the prices and profits. And all indicate that the lumber not only fared well under the Fair Labor Standards Act, een economically sound. I think that you will find that a nination of the industry shows its ability to absorb it, and ffect of the 75 cents will be very much smaller than any

e detail, not sufficient. On the other would stimulate the bringing up to hig under State orders.

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