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Vol. 2's 


Senate 


Second Ciass Postage Pald at Washington, B. C. 


Hearings Spur Drive 


To Pass Forand Health Bill 


| Insurgents 
Push Fight 


ZQOn Cross 


St. Louis—Insurgent leaders 
secking to bring the ousted Bak- 
ery & Confectionery Workers 
back into the AFL-CIO have 
opened a second front in their 
drive to unseat Pres. James G. 
Cross. 

In a three-day conference here, 
they voted to seek a special un- 
jon convention in September and 
to raise a $100,000 fund for use in 
fighting Cross. 

The conference was called by 
five BCW local union officers who, 
three weeks earlier, had filed a 
federal court suit in Washington 
aimed at the removal of Cross and 
Sec.-Treas. Peter N. Olsen. 

The meeting here brought to- 
gether 80 officers of 48 BCW 
locals. They said they represent 
36,868 of perhaps 62,000 mem- 
bers remaining in BCW since its 
expulsion in 1957 on findings 
that it was run by corrupt ele- 
ments. 

The aim of the reform group is, 
first to get rid of Cross and clean 
house within the union, then to 
seek a merger with the AFL-CIO 
American Bakery & Confectionery 
Workers. ; 


Expelled by AFL-CIO 
The ABC was chartered by the 
federation immediately after the 
expulsion of BCW. It now has 
about 80,000 members. 


In their suit, the five insurgent 
leaders charged Cross and other 
top officers with “corrupt and self- 
ish conduct designed to plunder 
BCW” for Cross’ personal benefit. 


They asserted here that $5.3 mil- 
lion in union funds had been 


(Continued on Page 11) 


a 


| May Merger 
Ordered in 


New Jersey 


jm AFL-CIO Pres. George Meany 


x 
{ 


the state. 


k 
fein the Newark Armory. 


f 


j 


(Continued on Page 4) 


has called a special convention 
Mae for May 19-20 of all AFL-CIO 
Organizations in New Jersey to 
form a merged labor body in 


The convention will be held 


The convention call came sev- 
> tral weeks after Meany ordered 
Tevocation of the charters of the 
New Jersey State Federation of 
Labor and the New Jersey Indus- 
trial Union Council, directed the 
__*mary of the actions taken by the 


STRANDED UNIONIST, Richard McClure of Packinghouse Work- 
ers Local 34, guides labor-manned rescue truck through flood 
waters near his home after disaster struck area around Sioux City, 
Ia. AFL-CIO Community Services joined hands with Red Cross 
in setting up rescue and relief program, with 100 union volunteers 
joining in. (See story, Page 12.) 


‘Runaway’ Conference Speaks: 


By Dave 


has called on Congress to vote “s 
tion, asked Pres. Eisenhower to u 


Youth Parley Bolts 
On Rights, Schools 


A “runaway” White House Conference on Children and Youth 


speed school desegregation and proposed a broad program of social 
legislation aimed at giving millions of underprivileged youngsters a 


Perlman 


ubstantial” federal aid to educa- 
se “the prestige of his office” to 


fair start in life. ® 

The 7,000 conference delegates, 
invited by the President to “review 
the unmet needs of young people 
and recommend solutions,” did ex- 
actly that, breaking away from the 
Administration’s “leave-it-to-the- 
states” position on the nation’s 
social needs. 

In a series of hard-hitting resolu- 
tions, delegates asked strengthened 
and better-enforced child labor 
laws, a higher federal minimum 
wage extended to millions not now 
covered, higher standards of unem- 
ployment_insurance, expanded pub- 
lic housing, an end to exploitation 
of migrant farm workers and 
eradication of all forms of racial 
discrimination. ; 

More than 1,000 Resolutions 

More than 1,000 conference res- 
olutions polired out of 18 forums 
where delegates voted on proposals 
initiated in small work-group ses- 
sions. , 

Originally the final plenary ses- 
sion was to have included a sum- 


~ 


forums—to form the basis of the 
conference’s official report to the 
President. Conference officials 


® 


Committee. 


17> 17 No. 15 


White House Again 


|\Delayson Program 


Liberals on both sides of Capitol Hill stepped up their drive for 
legislation to provide health care for the aged, despite stiffening 
Administration opposition to the Forand bill and initial rejection of 
the AFL-ClO-backed measure in the House Ways & Means 


As congressmen continued to be deluged with the heaviest flood 
of mail in years, showing mounting public demand for the Forand 
bill’s social security principle, there were these developments: 

@ A Senate Subcommittee on Problems of the Aged opened 
public hearings on federal health insurance, with Chairman Pat 


McNamara (D-Mich.) forecasting 
passage of a bill this year. There 
were indications that, if the House 
fails to include health care in a 
pending social security measure, 
attempts would be made to amend 
the bill in the Senate. 
@ Auto Workers Pres. Walter 
P. Reuther, in a statement pre- 
sented to the McNamara sub- 
committee, charged the Forand 
bill was being blocked by 
“powerful and politically infiu- 
ential groups” including the 
American Medical Association, 
U.S. Chamber of Commerce and 
National Association of Manu- 
facturers. He expressed confi- 
dence that “the vast majority” 
of Congress “will find a way to 
bring this legislation to a vote.” 

@ James B. Carey, testifying as 
president of the Electrical, Radio 
& Machine Workers and secretary- 
treasurer of the AFL-CIO Indus- 
trial Union Dept., said opponents of 
health care are “calloused by their 
own creature comforts.” He ac- 
cused the Administration of “an 
outright betrayal of the needs of 
America’s 16 million elder citizens.” 

@ Following a White House 
conference, Senate Minority Leader 
Everett McKinley Dirksen (R-IIl.) 
spelled out what he termed Admin- 
istration-approved “guidelines” but 
no GOP health care program. He 
emphasized opposition to social se- 


(Continued on Page 9) : 


(Continued on Page 11) 


Major Air 
Pact Signed 
At Republic 


In the first major agreement in 
critical 1960 negotiations with 
the aircraft and missile industry, 
8,400 members of the Machinists 
have won a two-year contract 
from Republic Aviation Corp., 
Farmingdale, N. Y., scene of a 
turbulent 114-day strike four 
years ago. 


The Republic pact gives work- 
ers wage hikes ranging from 7 to 
11 cents an hour immediately, to 
be followed by increases of from 
5 to 8 cents hourly effective Apr. 
3, 1961. In addition, a 6-cent 
cost-of-living increase accumulated 
over the past two years was incor- 
porated into all base rates, and the 
living-cost clause was continued up 
to a limit of 6 cents over the next 
two years. 


The pact raised company pay- 
ments for pensions from $1.75 
per month per employe to $2.25 
monthly; eligibility for pensions 
was reduced from 15 to 10 years 


(Continued on Page 11) 


AFL-CIO Backs “Truth-in-Lending’ 
Bill, Hits Consumer Credit Gyps 


Sharply assailing “deceptive practices” in the consumer credit field, the AFL-CIO has called 
for congressional passage of a “truth-in-lending” bill that would require full disclosure to the purchaser 


of all finance charges. 


Peter Henle, assistant director of the AFL-CIO Dept. of Research, told a Senate Banking sub- 


committee that its hearings on a bill introduced by Chairman Paul H. Douglas (D-Ill.) were “break- 
ing new ground” since Congress’? i 


“has never before taken a look at 
consumer credit from the view- 
point of the borrower.” 

The government, he said, has an 
“obligation” to protect the con- 
sumer in the credit field in much 
the same manner as it safeguards 
him against deceptive advertising, 
impure foods or medicines, and 
through laws requiring appropri- 


ate labels for clothing, furniture 
and other products. 

At its midwinter meeting, Henle 
told the subcommittee, the AFL- 
CIO Executive Council gave its 
“clear endorsement” to the Doug- 
las bill, declaring that its passage 
“would do much to alert consum- 
ers to the high prices they now pay 
for money.” 


_ The council called for both state 
and federal regulations against “de- 
ceptive practices and exorbitant 
charges in vending consumer credit, 
particularly installment credit.” It 
added that this could be achieved 
through the Douglas bill’s require- 
ment that finance charges on all in- 
stallment purchases be expressed in 


(Continued on Page 2) 


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PROTECTION OF PUBLIC against “deceptive practices” in con- 
sumer credit field can be achieved through passage of Douglas 
“truth-in-lending” bill, Peter Henle, assistant director of AFL-CIO 
Dept. of Research, told Senate Banking subcommittee hearings. 
Citing labor’s concern, he said AFL-CIO Community Service Ac- 
tivities has instituted special consumer information programs to 
educate members. 


AFL-CIO Backs Law 
To End Credit Chiseling 


(Continued from Page 1) 

terms of “simple annual interest.’ 

With consumer credit at a. rec- 
ord high of over $51 billion—three 
times what it was in 1949—Henle 
said the problem of “deceptive 
credit practices” has been brought 
home forceably to trade union of- 
ficials because members are turn- 
ing more frequently to them for 


help. 
Because of this rank-and-file 
concern, he said, AFL-CIO: 


Community Service Activities— . 

labor’s operating arm in the so- 

cial welfare field—has instituted 

a special consumer information 

program “to help educate our 

membership concerning the pit- 
falls of installment buying and | 
other credit purchases.” ; 

“But education is not enough,” 
Henle continued. “It is our con- 
tention that the problem is. suffi- 
ciently serious to require action by 
the federal government.” 

The Douglas bill, he said, “pro- 
vides an excellent approach” to 
this problem. 

“It does not attempt to regulate 
the terms of any consumer financ- 
ing contract,” he added. “It does 
attempt to simplify consumer fi- 
nance contracts by requiring full 
cost disclosure in such a way that 


Easter Seal Drive 
Backed by Meany 


Labor welcomes the oppor- 
tunity to assist in furthering 
the rehabilitation program for 
the handicapped through the 
purchase and use of Easter 
Seals, AFL-CIO Pres. George 
Meany said in accepting re- 
appointment as a sponsor of 
the program of the National 
Society for Crippled Children 
and Adults, which directs the 
annual seal sale. 

“An organization that has. 
established an enviable rec-' 
ord of service to humanity: 
truly merits the support of all. 
Americans,” he said, “and 1. 


and women of the AFL-CIO, 
keenly aware of the dedicated 
service of the Easter Seal so- 
cieties, will be both generous 
and warm-hearted in their: 
support.” 

Care and treatment for the 
handicapped, with full inde- 
pendence as the goal, are pro-' 
vided through some 1,400 
Easter Seal centers and pro- 
grams with medi- 
cal supervision and cm 
There are no restrictions for 
eligibility. 


, +} operations of the consumer credit 
industry on a sensible basis than 


am confident that the men:| 


‘| been elected ninth vice president of 


IATSE general executive board at 
_| its. semi-annual meeting in Port- 


the consumer himself can make an 
*lintelligent choice regarding the 
credit that is being furnished him.” 
At present, Henle said, “every 
conceivable obstacle” has been 
placed in the path of the consumer 
seeking “adequate information on 
which he can base an intelligent 
decision regarding his use of 
credit.” 


Advertising Deceptive? 

Advertising by consumer loan 
companies, automobile dealers and 
others who sell goods on credit, 
the AFL-CIO spokesman declared, 
“is often quite deceptive and very 
confusing.” He introduced a series 
of newspaper ads which, he pointed 
out, “indicate the rate of repayment 
but seldom if ever mention the price 
of the loan either in terms of the 
total charges or as an annual rate 
on the principal.” 
In addition, he said, credit in- 
struments “turn out to be even 
more confusing than the advertise- 
ments.” While they give the 
amount of the loan and the repay- 
ment schedule, they often do not 
list such charges as insurance or 
service fees that are lumped in, and 
“in no case are the finance charges 
expressed in language simple 
enough for the buyer to recognize 
whether he is paying a reasonable 
amount for his loan.” 

Henle said the method of 
presenting finance charges to the 
customer is also confusing, point- 
ing out that the 3 percent a 
month charged by a small loan 
company is a true 36 per cent 
‘annual interest rate; and the 1.5 
percent monthly charge by a de- 
partment store or mail order 
house under a “revolving credit 
arrangement” is a true 18 per- 
cent, 

Enactment of a law embodying 
the principles set forth in the Doug- 
las bill, the federation spokesman 
declared, “will do more to put the 


any other possible action by Con- 
gress.” 


Stagehands Choose 
New Vice President 
New York—Jerry Tomasetti, 


business agent of Film Exchange 
Employes of Local B-51 here, has 


the Theatrical Stage Employes Un- 
ion. 
Tomasetti was named by the 


land, Ore., to fill the unexpired 
term of the late Louise Wright of 
Dallas, Tex. The post represents 


ee 


|Job Policy Advisors Urge 
5 Aid for Depressed Areas 


Enactment of area redevelopment legislation that would “revitalize the economies” of depressed 
aréas has been urged on the Eisenhower Administration by the tripartite Federal Advisory Coun- 


cil on Employment Security. 


“exhibit tendencies” 


At the same time, the council called for a program of financial assistance to communities which 
toward persistent unemployment but which have not yet “deteriorated to the 


point of becoming classified as® 
chronic labor surplus areas.” 

The unanimous views of the 
council’s 24 labor, -management 
and public members were contained 
in a report to Labor Sec. James P. 
Mitchell. The council is a statu- 
tory body established to.advise the 
Secretary of Labor and the Direc- 
tor of Employment Security on 
policies relating to unemployment. 

Persistent Joblessness 

Its report was geared to a study 
of persistent joblessness in the 
nation. According to the most re- 
cent Labor Dept. employment-un- 
employment report, there were 
964,000 persons unemployed 15 
weeks or more in February, com- 
pared to 617,000 long-term job- 
less in pre-recession February 1957. 
The report was made public as 
the powerful House Rules Commit- 
tee, ending a 10-month blockade 
of depressed area legislation, open- 
ed hearings on a $250 million, Ad- 
ministration-opposed bill, slightly 
smaller in scope than one Pres. 
Eisenhower vetoed in 1958, but far 
larger than the $57 million recom- 


‘Scab’ Agency 
Head Fined in 
Pennsylvania 


Philadelphia—Bloor Schleppey, 
73-year-old operator of a profes- 
sional strikebreaker recruiting agen- 
cy, has been fined $500 for viola- 
tion of Pennsylvania’s state law 
prohibiting use of third parties to 
obtain “replacement” employes in 
‘labor disputes. 

Sentence was imposed on Apr. 1 
in Bucks County Court by Judge 
Edward G. Biester after Schleppey 
avoided a scheduled grand jury 
appearance by pleading no contest 
to charges against him. 


Asks Mercy 


A “no-contest” or nolo conten- 
dere plea in criminal cases means 
that a defendant, without directly 
admitting guilt, throws himself on 
the mercy of the court. Maximum 
penalty in Schleppey’s case was 
one year in jail and a $1,000 fine. 


Faced with the possibility of 
being held in probation, Schiep- 
pey stated in court that he would 
not again operate in a manner 
violating Pennsylvania’s anti- 
strikebreaker recruiting law. 

Schleppey was arrested Feb. 11 
in a Philadelphia airport motel 
after flight from police involving a 
crew of hired strikebreakers pre- 
pared to go to Chester, Pa., where 
a newspaper strike was threatened. 
He was charged with having previ- 
ously imported strikebreakers in a 
newspaper dispute at Bristol-Levit- 
town, Pa. % 

Schleppey’s strikebreaking ac- 
tivities in the newspaper industry 
were documented last year in un- 
denied testimony before a New 
York State board conducting 
hearings on the importation of 
professional scabs in a strike 
against the Macy papers in West- 
chester County. 

Union spokesmen in the current 
multiunion strike against Portland, 
Ore., newspapers have charged 
that professional strikebreakers for- 
merly associated with Schleppey’s 
operations showed up, at premium 
pay and with extra expense ac- 
counts, to help the publishers start 
a struck newspaper under the joint 
masthead of the Oregon Journal 


the union’s Special Dept. 


| Piemasice Promotes 
Area Redevelopment 


‘The union-backed Area 
Employment Expansion Com- 
mittee has issued a popular 
pamphlet to help win passage 
of the Area Redevelopment 
Act—“a Point Four for 
America.” 

“Today’s boomtown may 
be tomorrow’s ghost-town,” it 
warned in listing 177 “dis- 
tressed labor markets” where 
unemployment of 6 to 30. per- 
cent has persisted for at least 
18 months. 


in 1958 by Pres. Eisenhower 
and appealed for prompt ac- 
tion because “the country can 
wait no longer.” 


mended in current Administration 
budget proposals. 

Passage of aid-to-depressed 
areas legislation is a key plank 
in the AFL-CIO’s § 12-point 
“Positive Program for America,” 
which organized labor has asked 
Congress to enact before it ad- 
journs in July for the Demo- 
cratic and Republican presiden- 
tial nominating conventions. 

The Labor Dept.’s advisory group 
told Mitchell that an area redevel-. 
opment measure should give “prior- 
ity to efforts to revitalize the econ- 


than to measures to relocate work- 
ers.” 

- Although relocation might be. in- 
dicated in “a few remote and small 
stranded communities,” the report 
said, if it were applied generally ‘it 
would lead to “unnecessary losses 
of invested capital and commu- 
nity equipment and facilities and 
. . . heavy financial and social 
burdens on the individuals trans- 
ferred.” 

The tripartite committee called 
for enactment of safeguards in 
depressed areas legislation “to 
avoid giving assistance to ‘run- 
away’ plants which, by relocat- 
ing in a depressed area, would 
create an unemployment prob- 
lem in the original location. 

In dealing with persistent un- 
employment, the committee called 
for government financial support 
for retraining jobless workers, in- 
cluding financial aid to the jobless 
whose unemployment insurance 
benefits have been exhausted or 
who are not covered by unemploy- 
ment assistance, but who are under- 
going approved training. 

Since in some states jobless 
workers undergoing training may 
not be eligible for unemployment 
benefits, the committee stated, it 
urged that state laws be “amended 
where necessary so as to avoid 
claimants being disqualified for ben- 
efits solely because they are under- 
going approved training.” 


should extend the duration of bene- 
fits for jobless workers training for 
new skills, as is now provided in 


omies” of depressed areas “rather 


More Areas 


Massachusetts and Michigan. 


Cited for 


Heavy Unemployment 


The job situation across the nation underwent “slight improve 
ments” between January and March, the Labor Dept. reported in 
its bimonthly survey of 149 major areas, but the areas with a “sub- 
stantial labor surplus” edged upward from 31 to 33, 


The “smaller areas of substantial labor surplus” also increased 


slightly, from 107 in January to’ 
109 in March. 

A labor market area is classified 
in the “substantial labor surplus” 
category if it has unemployment of 
6 percent or over. 

The usual “moderate spring pick- 
up in job totals is anticipated by 
employers in 90 percent of the na- 
tion’s principal employment and 
production centers,” reported the 
survey, which also takes in employ- 
er hiring plans. 

The report said seasonal ex- 
pansion in commercial and in- 
dustrial construction, trade, serv- 
ice and food processing would 
lead the job rise, “with hiring in 
residential building likely to lag 
behind 1959 levels.” 


“Mixed trends” were seen for the 
durable goods industries to mid- 
May. The durable goods job out- 
look is keyed to the auto industry, 
the report noted. A late winter sur- 
vey of auto centers revealed “un- 
certainty” as new car sales lagged 
behind industry expectations, the 
report went on. 

Auto Hiring Uncertain 

The Labor Dept. said overtime 
work and second shift operations 
were being curtailed in a number of 
auto centers in recent weeks, with 
some layoffs reported in other cen- 
ters. 

The department went on to say 
that while auto job totals set for 


and the Portland Oregonian. 


mid-May did not seem “significantly 


different” from mid-March, “a 
number of areas” indicated a fur 
ther weakening in demand might 
alter hiring plans. 

The “unsettled outlook” in autos 
apparently is being felt in steel, the 
department added, where major 
producing centers reported cut 
backs in orders and output sched 
ules from earlier peaks. Steel jobs 
were expected to stabilize at cur- 
rent levels, it said. 


Some Gains Seen 
The report said job gains were 
anticipated in electrical and nom 
electrical machinery, fabricated 
metals, ordnance and instruments, 


The Labor Department said 
employers in most major manu- 
facturing centers reported short 
ages of skilled workers. Areas 
like Chicago, St. Louis, Phila 
delphia, Baltimore and New 
Haven, Conn., were reported 
short of such highly-skilled work- 
ers as tool and die makers, m* 
chinists, machine tool operators 
and other metal workers. 

In a few areas, skill shortages 
appeared to hold up hiring of pro 
duction workers, the report said. 

Of the 33 areas with a “substair 
tial labor surplus,” 25 were i@ 
Group D, with 6 to 8.9 percent 
jobless; four in Group E, with 9 


F, with 12 percent and over uneir 
ployed. 


The report added that states 


to 11.9 percent, and four in Group | 


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——SEZ_ 


NLRB Orders Back Pay: 


Shutdown Maneuver 

Costly to Mill Owner 
“ The National Labor Relations Board, in a 3-to-1 decision, has 
ordered a mill employer who shut down his major operations to 


avoid dealing with a union to give back pay to fired workers until 
they secure “substantially equivalent a with other em- 


ployers.” 


Bonnie Lass Knitting Mills, Inc., 
of: Clifton, N. J., according to the 
NLRB, switched its operations 
from manufacturing to jobbing and 
cut its work force from over 100 
down to three full-time and 5 to 
10 part-time employes to avoid 
bargaining with the Ladies’ Gar- 
ment Workers.. 

The board ‘Tejected the trial ex- 
aminer’s recommendation that the 
employer be required to reopen its 


prised of Chairman Boyd Leedom 
and Members Joseph Alton Jenkins 
and John H. Fanning. 

' According to the report of Trial 
Examiner C. W. Whittemore, the 
union campaign got under way in 
May and June of 1958. With or- 
ganizing carried on in both Eng- 
lish and German, the union soon 
had authorization cards from 56 
of the 101 employes. 

' The testimony showed, the re- 


C. J. (NEIL) HAGGERTY (left), 
of the AFL-CIO Building & Construction Trades Dept., confers 


_. AFL-CIO, NEWS, WASHINGTON, D. C, SATURDAY, APRIL 9, 1960 


in his new capacity as president 


NMU Joins 


Hotel. Cosi? 


|For Retired — 


New York—Members of the 
Maritime Union have voted in 
favor of participation by their or- 
ganization in a cooperative pro- 
gram to build and operate resi- 
dential hotels for retired union 
memibets. 

The project is called Four Free- 
doms Hotel, Inc., a trade union: co- 
operative. It plans to build or buy 


f| hotels in favored resort areas, pro- 
f| viding deluxe rooms with meals 
§|and recreational facilities specially 


designed to meet the needs and 
wishes of older people. : 

Retired union members—couples 
or single persons—would be ac- 
commodated at minimum rates, és- 
timated at $100 to $125 monthly 
per person for room and board. 

The NMU membership en- 


d customary sweater-making depart- . with Rep. James Roosevelt (D-Calif.), member of House Educa-| gored the project at regular 
n ments, observing that the company eas i quale aay yo tion & Labor Committee, on legislative matters of interest to labor.| membership Tecaties ie hee 
id has’ disposed of its machinery and| refused to deal with it, em- ; in the unigon’s 30 port headquar- 
ie equipment. barking on “an intensive cam- | A C WA Wi B = ters. The seamen voted on a pro- © 
a But since Bonnie Lass still is | paign of interference, restraint tims Ug; fy es ft posal to make an initial invest- 
4 a functioning business “and may and coercion.” i m ment of $110,000 of union treas- 
resume full-scale operation,” the The company’s counsel called a P e a ury funds in the project. The 
majority said, it is ordered to | meeting of all employes and told ay U ge l hn mS lo ry total vote was 3,725 in favor and 
In set up a preferential hiring list | them the union was a “bunch of , 642 opposed. 
led and it must offer full and im- | goons, thugs and all they were in-| | New York—Some 125,000 members of the Clothing Workers will} _Four Freedoms Hotels, Inc., 
on mediate reinstatement plus back | terested in was dues,” according| receive a contract package worth 21.5 cents an hour, including their | Pl@ns_to build first in California 
— pay to 49 fired workers if it re-- | to the NLRB report. first wage increase since 1956, under a new three-year agreement peionpbthay meee A ge agp ger 
te: sumes manufacturing. _ The company spokesman threat-| with the U.S. Clothing Manufacturers’ Association net. yet Gapided. Tae Senne ad 
nce . 


If Bonnie Lass does not reopen 
its manufacturing facilities, the 
board said, it must make good to 
the 49 workers discriminatorily dis- 
charged Dec. 15, 1958, the money 
they would have earned from that 
date until each secures or did se- 
cure “substantially equivalent em- 
ployment.” 

“I do not agree,” declared Mem- 
ber Philip Ray Rodgers i in a partial 
dissent. 

Rodgers said there is nothing in 
the Taft-Hartley Act limiting an 
employer’s right to go out of busi- 
ness. Bonnie Lass, he contended, 
“disposed of its machinery and 
equipment and permanently with- 
drew from the industrial scene as a 
manufacturer.” 


The board majority was com- 


ened to close the plant before deal- 
ing with the union and also prom- 
ised such benefits as hospitaliza- 
tion, paid holidays and vacations 
if the union did not come in. 

The company laid off what it 
called “the ring leader” for a few 
days. Finally, the workers voted 
to strike and stayed out from Aug. 
12 until Dec. 15, when they offered 
to return unconditionally. 

The union committee was told 
a contract had been made to sell 
some machinery but a plant re- 
opening would be considered if 
the workers would renounce the 
union in writing. 

The employes rejected the em- 
ployer’s demand and the switchover 
from manufacturing to jobbing took 
place between January and April 
1959. 


2 New York Hospitals 
Sign Union Contracts 


New York—Union contracts 


have been negotiated with two 


private non-profit hospitals here and a third has entered into negoti- 
ations following an overwhelming vote for union representation by 


its employes. 


Local 1199, Retail, Wholesale & Department Store Union, which 


conducted a 46-day 
union recognition at seven New 
York hospitals last springy termed 
the new agreements “an important 
step forward” in the drive to win 
full union recognition~at the city’ s 
voluntary hospitals. 

The strike ended with a com- 
promise settlement with the hos- 
pitals agreeing to some of the union 
demands in a statement of policy 
that set up a grievance procedure 
and provided for periodic wage re- 
views, but refused to sign agree- 
ments with the union. 


Local 1199 Pres. Leon J. 


Davis said the Daughters of 
Israel Hospital in Manhattan and 


strike for‘ 


bargain with unions representing 
their employes, the Trafalgar man- 
agement agreed to a consent elec- 
tion and said it would recognize 
the union if a majority of the work- 
ers voted for representation, 


Second Election 


The vote was the second repre- 
sentation election held for workers 
in a non-profit hospital in New 
York. Early in 1959, Montifiore 
Hospital negotiated a contract with 
Local 1199 after its employes voted 
628 to 31 for the union. 


Davis termed the statement of 


The settlement, which affects about 700 major manufacturers of 


men’s suits and overcoats, includes® 
the largest basic wage increase ne- 
gotiated in the union’s history— 
17.5 cents an hour effective June 1. 
It also continues unbroken the 
40-year record of peace in the 
industry. The last major dispute 
was a combined strike and lock- 


Insurance by 


ULLICO Hits 
Record High 


Baltimore, Md.—New high totals 
for insurance coverage, assets, in- 
come and benefits paid have been 
announced by the Union Labor Life 
Insurance Co. in its annual report 
for 1959. . 

Edmund P. Tobin, president of 
ULLICO, which is wholly owned 
by labor unions, said insurance in 
force has reached the all-time high 
of $1.07 billion, as against $248 
million 20 years ago. 

Income in 1959 aggregated $47 
million, a gain of 7.7 percent over 
the previous year. Of that total, 
nearly $42 million was paid in divi- 
dends and benefits to policyholders 
and beneficiaries, $5 million more 
than in 1958. 

The “Feport, presented at the 
company’s 34th annual stock- 
holders’ meeting, noted that 
among thé new services under- 
taken in group policies during 
the past year were benefits for 
dental care and the cost of pre- 
scribed drugs and medicines out- 
side of the hospital. 

There is now increasing empha- 
sis, Tobin said, on coverage and 
services for retired persons and he 
promised that ULLICO will “pio- 
neer in this as well as other import- 
ant insurance undertakings which’ 
have marked its reputation and 


out in 1921 affecting the New 
York, Baltimore and Boston pro- 
duction centers. 

ACWA Pres. Jacob S. Potofsky, 
hailing the settlement, said the pres- 
ent national average wage for cloth- 
ing workers is $1.77 an hour. In 
the-big production centers, he said, 
it runs above $2, compared with 
the factory worker’s average of 
$2.29. The pay raise will be trans-: 
lated into higher rates for piece- 
work, by which earnings are gov- 
erned for most clothing workers. 

In addition to the pay hike, the 
contract provides for liberalization 
of health and welfare benefits start- 
ing Sept. 1. They include: 

@ An increase of $4 to $18 a 
day in hospitalization benefits. 

.@ A jump in the allowance for 
incidental hospital expenses, such as 
X-rays and anesthetics, from $50 
to $75. 


@ A $25 raise in surgical allow- 
ances to.a maximum of $275. 
@ An increase in maternity ben- 
efits from $50 to $100. 


@ A doubling of life insurance 
coverage from $500 to $1,000. 


The ACWA had foregone asking 
for wage increases—as it could 
have done—since the 1956 pay 
raise because of economic condi- 
tions in the highly-competitive in- 
dustry, particularly in view of an 
influx of foreign-made suits and 
overcoats. Its members have re- 
ceived 12.5 cents an hour in addi- 
tional health and welfare benefits 
in the last four years. 


The union position since 1956 
resulted in an unusual situation 
when bargaining for ‘the new con- 
tract opened two months ago. There 
was no disagreement on the fact 
that a wage increase was in order 
—the only point of discussion was 


locations of subsequent hotels will 
be determined by participating un- 
ions. 

NMU Pres. Joseph Curran said 
that his organization is participating 
in the Four Freedoms project be- 
cause “we regard it as a sound and 
praiseworthy effort to meet what is 
one of the most serious problems 
facing older people.” 


Wool, Cotton 
Contracts Set 
Pay Patterns 


Boston—Wage increases ranging 
from 6.5 to 10 cents an hour have 
been won by the Textile Workers 
Union of America in pattern-set- 
ting agreements covering two major 
segments of the industry. 
Pay boosts from 6.5 to 10 cents 
were gained in negotiations under 
a wage reopening with Berkshire- 
Hathaway, Inc., which employs 
6,000 workers at seven plants in 
Massachusetts and Rhode Island. 
The settlement, which pro- 
vides for a new minimum of 
$1.31 an hour, is expected to set 
a pattern for nearly 200 northern 
cotton and rayon plants employ- 
ing about 45,000 workers. The 
union obtained a 10-cent across- 
the-board incréase in April 1959. 
The agreement followed a series 
of settlements in the woolen and 
worsted branch of the industry un- 
der which some 23,000 workers in 
100 mills received 7 cents an hour 
with a new minimum of $1.50. _ 
This pattern was set in a contract 
with the Wyandotte Worsted Co., 
with 1,200 employes in four New 
England plants. The settlements ex- 
tended the contracts for two years 
with a reopening for wages and 
fringe benefits in April 1961 and 
another for wages only the fol- 
lowing April. Last year a 10-cent 


oat policy under which most hos- progress.” _ __,. [On its size. The union originally | wage raise was negotiated. 
sodil the Daughters of Jacob Hospital pitals now oi Seniioiis: In its first 33 years, Tobin said, | asked for a package worth 25 cents| ~ 
a in the Bronx had now agreed to | PO en , ULLICO has more than fulfilled) an hour, with 22.5 cents in wages| School Dedicates 
ion full union recognition and signed e,” and expressed hope that {the most ambitious dreams of the| and the rest in fringe benefits. The n 
we union contracts. _ — other hospitals would “follow a | trade unions which founded it. employers’ first offer was 12 cents.| Hillman Room 
art: tions are members reat- | path of recognizing the union During the bargaining, differ- re . 
ie New: York—A S 

ma Son ane ee Pg where it represents a majority |2 RCIA Locals ences over some work rules were aa cain cma Pesage eie, -wy 
tors ? . of employes.” Unite in Los Angeles worked out, although they are | cated at the New School for Social 

against meaningful union recog- | . : not to be written into the n 

nition. The ed tte _| Los Angeles—Retail Clerks Lo- ew | Research. 

agreements cover a He warned that hospital manage , : contract, and both sid eed 
tages total of 375 selesate hich : _ | cal 777 has been merged into Local ree A oe og Mrs. Bessie Hillman, widow of 
non-p mal, | ments which refuse to permit work p : te continue their joint effort to 
pro technical and office employes. ers to be represented by a union 770 following a membership vote, cil the Clothing Workers’ first presi- 
d. es ‘of their choice “will be inviting | °f the two locals. prove efficiency, promote the | dent and herself a vice president of 
At Trafalgar Hospital in Man- | their choice “w inviting | “Local 770 was brought to a| imtroduction of technological im- | the union, unveiled a memorial 

“a , workers voted 102 to 17 | Widespread labor unrest and strikes strength of about 18,000 members provements and fight sweat-shop plaque and a bust of her late hus- 

ie wales representation in a secret of even greater proportion than and its food and drug jurisdiction competition from abroad._ band. 
rcent occulrr + LJ 
ith 9 a pens Ps by the|: waeczes ee Rae enlarged to include Local 777’s} The new agreement was subject} ACWA Pres. Jacob S. Potofsky : 
roup | elations Board. Local 1199, he said, is “anxious | jurisdiction in shoe, department | to ratification by local unions over|and Meyer Kestnbaum, president 
nen Although non-profit hospitals | to avoid” the necessity of striking | store, variety store and other retail | the next few weeks, but Potofsky|of Hart, Schaffner & Marx of 


for full recognition, firms. 


~~ 


are not required by state law to 


expressed confidence of approval. 


Chicago. 


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AFL-CIO NEWS, WASHINGTON, D. C., SATURDAY, APRIL 9, 1960 


ie 


Strike Closes. 
Wilson Sports 
Goods Unit 


'Chicago—Production of -base- 
ball and golf equipment as well as 
other sporting goods was stopped 
at the Wilson Sporting Goods Co. 
-by a strike called Apr. 4 by the 
Packinghouse Workers. 

Wilson Sporting Goods is a 
- wholly-owned subsidiary of the 
_ Wilson Meat Packing Co., whose 

six: plants were tied up for 109. 

days by the same union in a re- 

cently-ended strike which drew 
national attention to the com- 
pany’s union-fighting efforts. 

Nearly 475 workers, members of 
UPWA Local 715, took up picket 
signs to back their committee’s 
efforts to secure adequate wage in- 
creases and welfare benefits. The 
UPWA won an NLRB election last 
September to take the Sporting 
Goods unit away from the unaf- 
filiated United Industrial Workers, 
headed by Angelo Incisco. Incisco 
was forced out of the Allied In- 
dustrial Workers in 1957 after dis- 
closure by the -AFL-CIO Ethical 
Practices Committee of improper 
use of union and welfare funds. 

Negotiations have dragged in- 
conclusively since labor board 
certification, held up through 
company maneuvering until 
early last February, a five-month 
delay, the union said. 

Under the company’s wage offer, 
minimums in the Sporting Goods 
unit would be $1.35 for women 
and $1.55 for men. The minimum 
in the same company’s meat-pack- 
ing plants is $2.175. Wilson also 
declined to offer any type of paid 
hospitalization or sick py bene- 
fits to the Sporting Goods group, 
the union said. : 


Union Leader 
Named Regent 
At Wisconsin 


Milwaukee, Wis.—Jacob F. 
Friedrick, a veteran trade union 
leader and president of the Milwau- 
kee’ County Labor Council, has 
been appointed by Gov. Gaylord 
Nelson to the University of Wis- 
consin board of regents. 

Friedrick’s appointment to the 
nine-member board, responsible for 


the over-all direction of the uni- 


versity, is subject to confirmation 
by the State Senate. 

A native of Hungary, Friedrick 
came to the U.S. in 1904 and al- 
most immediately joined the Ma- 
chinists here. In 1919 he became 
business agent for IAM Lodge 66, 
leaving that post 10 years later to 
become a labor reporter for the old 
Milwaukee Post. 

In 1935, Friedrick was elected 
general organizer of the former 
AFL Federated Trades Council. He 
left the council in 1945 to become 
regional director for the AFL in 
Wisconsin, returning in 1951 as 
general secretary, the council’s top 
post. The council merged with the 
Milwaukee County Industrial Un- 
ion Council last year. The united 
body represents an estimated 130,- 
000 trade unionists in 250 locals. 

Friedrick has served on the 
advisory committee of the Uni- 
versity of Wisconsin’s School for 
Workers, where he collaborated 
with the late Prof. John R. Com- 
mons in preparing the first un- 
employment compensation bill 
introduced in the state legislature. 

The union leader has served on 
both the unemployment and work- 
men’s compensation advisory com- 
mittees to the Wisconsin Industrial 
Commission, and has served on the 
Milwaukee sewerage commission. 

In recognition of his long service 
to the labor movement and the 
state, Friedrick recently was award- 
ed an honorary doctor of laws de- 

“gree by the University of Wiscon- 
sin. : 


liam F. Schnitzler. 
Local 63, says 
tasks. 


RETIRING AFTER 19 YEARS of service, Charles F. Crampton, 
left, of the engineering maintenance staff of AFL-CIO headquarters, 
receives a watch and best wishes from AFL-CIO Sec.-Treas. Wil- 
Crampton, a member of Firemen & Oilers’ 
he hopes now to use his leisure for all those put-off 


s| Labor Sec. James P. Mitchell, Sen- 


failed. 


nounced on Apr. 4 that it was 
unable to obtain an agreement be- 
tween the carriers, which originally: 
demanded that their workers take 
a pay'cut of 15 cents an hour, and 
the unions, which have asked for a 
25-cent hourly increase, plus addi- 
tional vacation and holiday bene- 
fits. 

This theoretically left the un- 
ions free to strike after a 30-day 
“cooling-off” period, but both 
union and management officials 
expected the board to certify the 
dispute to the President and ask 
him to set up an emergency 
board to conduct a fact-finding 
study and make recommenda- 
tions for a settlement. 

An emergency board would have 
30 days to report to the President. 
Both parties would then be re- 
quired to bargain for an additional 


May Merger 
Ordered in 


New Jersey 


(Continued from Page 1) 


creation of a new merged AFL- 
CIO body in the state. 

The order to revoke the char- 
ter came on the basis of a re- 
port by Peter M. McGavin and 
R. J. Thomas, assistants to the 
president, that negotiations for 
a merger in line with the AFL- 
CIO constitution were  stale- 
mated. All state bodies in the 
federation have merged with the 
exception of New Jersey and 
Pennsylvania. In the Keystone 
state an agreement to merge has 
been completed and a conven- 
tion will be held on June 6. 


All AFL-CIO local unions and 
organizations in New Jersey affili- 
ated with either the former AFL 
or former CIO body will be given 
credentials to the merger conven- 
tion if they are in good standing. 

McGavin and Thomas will act as 
convention officers and present a 
draft constitution for the new AFL- 
CIO body to the delegates. 

The New Jersey State CIO Coun- 
cil announced meanwhile that it 
will hold a one-day convention May 
7 at the Essex House in Newark 
to discuss the creation of a state 


AFL-CIO body. - 


Mediation Efforts Fail 
In Rail Pact Dispute 


The rail wage dispute between unions representing 600,000 non- 
operating workers and the nation’s railroads appeared to be headed 
for a Presidential Emergency Board as preliminary mediation efforts 


After 10 weeks of effort, the National Mediation Board an- 


30 days before the unions would 
be legally free to strike. 
Meanwhile, in Chicago, a six- 
man arbitration panel began con- 
sideration of the.wage dispute be- 
tween the Locomotive Engineers 
and the railroads. The BLE ac- 
cepted arbitration—one of the al- 
ternatives offered by the Railway 
Labor Act—while the non-operat- 
ing unions rejected it in favor of 
emergency board procedure. 


. Still to reach the stage of na- 
tional negotiations are the con- 
troversial work rules changes 
which the railroads have asked 
the operating unions to accept, 
and which rail labor has de- 
nounced as union-busting pro- 


posals that would destroy 50 | 


years of union-won progress. 


The railroads took to the courts 
in an effort to avoid bargaining 
with the non-operating unions on a 
demand for life.insurance and 
medical benefits. In a suit filed in 
the U.S. District Court at Chicago, 
they contended that the issues are 
“non-bargainable” under the Rail- 
way Labor Act. 

The Railway Labor Executives’ 
Association promptly challenged 
the legal maneuver and pointed out 
that a case between the Railroad 
Telegraphers and the Chicago & 
North Western Railway involving 
the scope of bargaining under the 
Railroad Labor Act is currently 
pending before the U.S. Supreme 
Court. 


30,000 Petition for 
Forand Bill Passage 


Petitions bearing the sig- 
natures of nearly 30,000 
members of the Papermak- 
ers & Paperworkers urging 
passage of the Forand bill 
have been delivered to mem- 
bers of Congress from the 
districts in which the 300 
UPP locals ate situated. 

Accompanying the peti- 
tions was a letter from AFL- 
CIO Legislative Dir. Andrew 
J. Biemiller pointing to the 
growing public demand for 
the bill to provide health care 
for the aged, and calling for 
prompt action on the long- 
stalled measure. 


Lwere established and would abide 


‘Tribute to Members:’ 


Rail Unions Dedicate 
New Headquarters 


In. impressive ceremonies, top leaders in government and labor 


joined to dedicate the newly-completed Railway Labor Building, 


new home of railroad unionism in 


the nation’s capital. 


The new $3 million, seven-story structure was hailed by AFL- 
CIO Pres. George Meany as “a tribute to the 1 million members of 


railroad labor organizations who® 
for so many years have set an ex- 
ample for all labor in this country.” 

Also taking part in the dedica- 
tion ceremonies, and in paying 
tribute to railway unions, were 


ate Majority Leader Lyndon B. 
Johnson (D-Tex.), House Speaker 
Sam Rayburn (D-Tex.), Sen. John 
Sherman Cooper (R-Ky.) and Rep. 
John Bennett (R-Mich.). 


Leighty Chairman 

George E. Leighty, chairman of 
the Railway Labor Executives’ As- 
sociation and president of the Rail- 
road Telegraphers, who served as 
chairman of the building commit- 
tee, declared that the modern 
seven-story structure “symbolizes 
the spiritual dreams of the Ameri- 
can people for the better life.” 

The building houses the Wash- 
ington offices of standard railway 
unions; Labor, the railroad work- 
ers’ national weekly, and _ the 
RLEA. In addition it provides 
office space for units of the Labor 
Dept. and the Federal Housing 
Administration. ; 

The dedication ceremonies oc- 
curred less than two years after 
ground was broken on Apr. 29, 
1958 by Johnson, Rayburn and 
T. C. Carroll, chairman of the 
board of directors of Labor. 

Leighty declared that “the ad- 
vancement of labor is an advance- 
ment of our national ideal—the 
greatest good for the greatest num- 
ber—which has long been the phi- 
losophical cornerstone. .of.- our 
democratic form of government. 

“The newspaper, Labor, has been 
dedicated ‘to this fundamental ideal 
ever since its founding some 41 
years ago,” he continued, stressing 
that “while Labor today is pub- 
lished by 18 standard railroad la- 
bor organizations, its real owners 
are 1 million workers in the rail- 
road industry.” 

Meany unveiled a plaque in 
the lobby of the new building— 


Ike Rejects 


a plaque in the format of a front 
page of Labor, which tells both 
the story of the 41-year-old rail 
union newspaper and the high- 
lights of the dedication. 

“This dedication is to me an 
occasion of memories of people 
gone by, as well as an inspiration 
for the future,”. the AFL-CIO pres- 
ident said. “We must give credit 
to those old timers who had the 
foresight to start this labor news- 
paper. 

“The railroad unions have. al- 
ways -led the way in dedication. 
They are held in the highest re- 
spect not only by their fellow. un- 
ionists, but by the general publi 
as well.” : 


“ Cornerstone Laid 

The cornerstone for the building 
was laid with various important 
documents enclosed, including a 
copy of a book by Edward Keating, 
founding editor of Labor; copies 
of important issues of the news- 
paper; and the bylaws of the 
RLEA. 

Mitchell told the hundreds 
who gathered for the ceremonies 
that “the railroad unions and 
their paper, Labor, have fought 

. for’their members—fought fairly 
and fought well.” 

Johnson said that the rail unions 
have been effective instruments. for 
their members “because they have 
been so reasonable, so -honorable 
and so just,” while Rayburn echo- 
ing these sentiments declared: “I’ve 


never -known.a group of people in = 


any organization that were easier 
to get along with the last 70 years 
—even including the farmers of 
Texas.” 

Cooper said the new Railway La- 
bor Building “is a proper monu- 
ment to the long years of dedica- 
tion and service to the interest of 
railroad workers.” Bennett de- 
clared that “this new home should 
be inspiring to every railroad work- 
er in the United States.” 


Plea for 


Board in Ship Strike 


Pres. Eisenhower has rejected a 


request by 105 congressmen that 


the. White House establish a fact-finding board to help settle the 
11-week-old strike of 18,000 members of the Shipbuilders and the 
Technical Engineers at eight East Coast shipyards of Bethlehem 


Steel Co. 


The Administration’s refusal to'> 


intervene came as the National La- 
bor Relations Board went into fed- 
eral court in Boston with a request 
for injunctions against the two un- 
ions and the company in what the 
labor board described as a move to 
get the parties back to the bargain- 
ing table. 

The company broke off nego- 
tiations immediately after the 
NLRB asked for the injunctions, 
declaring that company negotia- 
tors would be unable to meet 
with the union as long as the 
management team “is occupied 
with the union-inspired injunc- 
tion proceeding against the com- 
pany.” 

In turning down the plea of the 
105 congressmen for White House 
action to break the deadlock, David 
G. Kendall, special counsel to Eis- 
enhower, said the President would 
give “serious consideration” to fact- 
finding only if both the union and 
management requested such action. 

The Shipbuilders promptly de- 
clared they would send members 
back to work if a fact-finding board 


by whatever recommendations the 
board decided. There was no re- 
sponse from management, which in 
the past has rejected efforts by fed- 
eral mediators to settle the dispute. 
In a letter to Rep. James A. 
Burke (D-Mass.), the White House 
aide said Eisenhower “does not feel 
that it would be consistent with the 
concepts of free collective bargain- 
ing, which this Administration has 
constantly supported, for him to 
intercede in this controversey ex- 
cept upon direct-request of the 
parties,” ; 
Kendall said that “appropriate 
agencies of the government are tak- 
ing all reasonable and practical 
measures to facilitate a settlement.” 
In the Boston court case, 
NLRB Gen. Counsel Stuart Roth- 
man charged Bethlehem with in- 
terfering, restraining or coerc- 
ing employes in the exercise of 
their rights, and with refusal to 
bargain in good faith. The in- 
junction against the IUMSWA 
and the Technical Engineers 
asked an end to alleged mass 
picketing at several shipyards. 


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Page Six. >": 


+2 § Oa RT ES ET 


* 


-Horse-and-Buggy Doctors 
He FIGHT TO SECURE health care for the aged under the 
social ‘security system has developed into a major battle in-the 
86th Congress with tempers frayed and shortened, mail piling up 
and the Administration frantically searching for some solution to 
co its surrender to the organized medicine and life insurance 
ies. : 

_ Up to its ears in the struggle is the American Medical Associa- 

tion—the organization representing the good gray doctors who 

work wonders with 20th Century medicine while offering mumbo- 
jumbo incantations to economic and political gods of another and 
buried: world. - : : 

“Fhere is a saddening disenchantment watching the doctors prac- 
tice the witchcraft of horse-and-buggy economics in an era of radio- 
active isotopes and wonder drugs. ee 

Perhaps the apparent schizophrenia calls for a prescription of a 
mild tranquilizer compounded of equal parts of the Hippocratic oath 
—the medical profession’s dedication to healing—and a short course 
in the economics of living on meagre social security benefits. 


-« No More ‘Study’ Needed 


rr SEVEN OF THE PAST 11 years the federal government has 
imposed a pay freeze on postal and other government workers. 
. Pres. Eisenhower three times has vetoed government pay raises 
voted by Congress. 

Study after study, survey after survey conducted by congressional 
committees, by the Administration and by public groups have shown 
an alarming gap between the pay scales of federal workers and their 
counterparts in private industry. The gap has grown wider since 
the last government pay raise. ; 

In the face of this demonstrated need, the Administration this 
year has proposed still another long-range study of government 
salaries; meanwhile it asks that wages be frozen at present levels. 

Four thousand delegates, representing 600,000 union members 
employed by the federal government, came to Washington to tell 
their story to their congressmen and senators. Because government’ 
employes do not have the economic weapons of other trade union 
members, their only recourse to secure economic justice is to petition 
Congress. ; mS ; 

The entire trade union movement is behind them in this struggle. 
A pay increase for government workers is urgently needed this year, 
now. There can be no excuse for delay. 


Drag on the Economy 


paneer OF ALL SHADES and hues of opjnion are in 
general agreement that the first three months of 1960 have 
been confusing, with all sorts of “mixed trends” and conflicting 
directions. 

The expected boom of major proportions has not quite material- 
_ ized and everything from the stock market to the severe winter 
weather is offered in explanation. 

One explanation that is not readily forthcoming, however, is why 
with a drop in unemployment in mid-February the number of major 
job areas with a jobless rate of 6 percent or over rose from 31 to 33 
between January and March. 

This is one area in which federal action can be of immediate 
help, action contained in the proposed aid for depressed areas bill, 
approved by the Senate but still languishing in the House Rules 


Committee. 
Official Weekly Publication 


of the 
American Federation of Labor and 
Congress of Industrial Organizations 


GeEorGE Meany, President 
WILLIAM F. ScHNITZLER, Secretary-Treasurer 


MN 


Executive Council 
George M. Harrison Harry C. Bates 
James B. Carey Wm. C. Doherty 
Chas. J. MacGowan David J. McDonald 
Wm. L. McFetridge Joseph Curran 


Walter P. Reuther 
Wm. C. Birthright 
David Dubinsky 
Emil Rieve 


M. A. Hutcheson A, J. Hayes Joseph D. Keenan 

L. S. Buckmaster Jacob S. Potofsky A. Philip Randolph 
« Richard F, Walsh Lee W. Minton Joseph A. Beirne 

James A. Suffridge O. A. Knight Kari F. Feller 


_» Paul L. Phillips Peter T. Schoemann L. M. Raftery 
Executive Committee: George Meany, Walter P, Reuther, George 
'. - M. Harrison, James B. Carey, Harry C, Bates, David J, 
McDonald, David Dubinsky, William F. Schnitzler 
Director of Publications: Saul Miller 
Managing Editor: Willard Shelton 
Assistant Editors: 
Gervase N. Love 
Eugene C. Zack 
AFL-CIO Headquarters: 815 Sixteenth St., N.W. 
Washington 6, D. C. 
Telephone: NAtional 8-3870 


Subcriptions: $2 a year; 10 or more, $1.50 a year 


Robert B. Cooney David L. Perlman . 


Vol. V Saturday, April 9, 1960 No. 15 
The American Federation of Labor and Congress of In- 
dustrial Organizations does not accept paid advertising in 


any of its official publications. No one is authorized to solicit 
advertisers for any publication in the name of the AFL-CIO. 


Doctor of Economics. ~ = °° 


I} 


Retail Coverage Urged: 


Largest U.S. Industry Can Pay 


The following is excerpted from a statement 
by James A. Suffridge, president of the AFL-CIO 
Retail Clerks Intl. Association before the House 
Labor subcommittee during hearings on amending 
the Wage-Hour law. 


i bo GIANT RETAILERS in this country 
have increased in size and power through ac- 
quisitions and mergers. As an example, the At- 
lantic & Pacific Tea Co. is now the fourth largest 
corporation in the United States. It is exceeded 
in size only by General Motors, Standard Oil of 
New Jersey and the American Telephone & Tele- 
graph Co. It is bigger than anything in steel; 
bigger than anything in chemicals or in the elec- 
trical industries. 

The corporation pattern of growth and in- 
creased power is certain to continue. In view of 


me that Congress cannot justify, in the year 1960, 
the continuation of such discrimination against 
retail store employes working in large chains such 
as Sears, with a volume of over $4 billion per 
year; the Atlantic & Pacific Tea Co., with an 
annual volume of more than $5 billion, not to 
mention the many other large chains whose busi- 
ness runs into the hundreds of millions of dollars 
per year. The part of retailing that we ask to 
be covered by the Fair Labor Standards Act has 
annual sales equal to 19 percent of the gross na- 
tional product of our country. 


single industry in the United States; that re- 
tailing operations cross state lines through cen- 
tral management, advertising, purchasing and 
the transportation of millions of dollars worth 
of goods in commerce, 


We frequently hear, and correctly so, that 
many of the retailers only net 1, 2 or 3 percent 
per year on sales. What we seldom hear, how- 
ever, is that their percentage of net profit on in- 
vestment is not too bad. Take for example, 
1958, The American Stores’ profit, per net 


percent; Food Fair, 34 percent; A & P, 28.3 per- 
cent; Krogers, 28 percent; Safeway, 31.8 percent 
and Winn-Dixie, 47.7 percent. The average for 
all food chains was 28.6 percent profit as per- 
centage of net worth, before taxes. 
Gentlemen, I re-emphasize, we are not talking 


about “Mom and Pop” stores, . 


these facts, I am sure that you will agree with 


I might emphasize that retailing is the largest — 


worth, was 23.5 percent; Colonial Store$, 24.2 - 


Minimum Wage, Suffridge Says 


I should also like to point out to you that 
productivity in retailing is higher than the na- 
tional average in any other business. ° Retail 
productivity increased 36.4 percent since 1950, 
or 4 percent per year. This stems from two 
sources: (1) from greater retail output which rose 
31 percent since 1950, and (2) from more inten- 
sive work loads on employes. 

In fact, the man-hours in retailing are less to- 
day than in 1950. In 1950, there were 327 
million man-hours in rétailing; today, 313 million. 
This reduction was made despite the tremendous 
increase in volume, as well as the growth in 
population in our country. 


We would also like to mention that we have: 


presented this committee with evidence on nu- 
merous occasions showing that the national chains 
sell their products by and large on a‘ national 
mark-up basis. : 


AS AN EXAMPLE, in New Bern, N. C., 
Houston, Chicago, Boston and San Francisco and 
in other cities. throughout the nation, goods are 
sold for the same identical retail price. That's 
perfectly all right with us. That’s management's 


' business They make the sole determination on 


the price for which their merchandise is to be 
sold. But we must point out that in many of 
these cities, the salespeople receive less than one- 
third the wages that the retail salespeople work- 
ing for the same énterprise receive, as for ex 
ample, in San Francisco. 

I wish to emphasize that the coverage urged 
_ by our organization will not jeopardize the fine 
old institution of retailing. The increase in wages 
will not bring about any kind of an economic 


- shock, it will not ‘add new members to the Retail 


Clerks Intl. Association, nor will it raise the 
wages of our members in any instances that I 


know of where our union has collective bargain 


ing agreements. 

The increased coverage and raise in the mink 
mum wage that we urge is well justified, both on 
an economic and moral basis. 

‘It big retailing is' covered, it will be a great 

step forward in removing the tag of second- 
_ Class citizenship from a substantial number of 
employes in the retail trade. It will enable 
these workers to make a greater contribution 
‘toward the economic growth of our country by 
raising their purchasing power. 


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AFL-CIO 2 aa. , Lae. D.C, SATURDAY, 


‘Mespas mean 


can insist we. are not the 


Attacks on ] Defense Doliniee 2 
Get Under Eisenhower's Skin 


( This column is excerpted from the nightly 
‘ broadcasts of Edward P. Morgan, ABC commen-- 
tator sponsored by the AFL-CIO. Listen to Mor- 
gan over the ABC network Monday ee 
friday at 7 p. m., EST.). 


RESIDENT EISENHOWER SEEMS to be 
growing more and miore sensitive to criti- 
He told a Republi- 


cism of his defense policies. 
can women’s gathering in 
Washington that “only the 
ignorant and the blind” 


most powerful nation in 
the world. _ He extolled 
the careful tailoring of the 
“whole defense structure” 
to fit the country’s needs ° 
with the highest opera- 
tional efficiency. 

Yet even as he did this, az: : 
attacks on the instrumen- Morgan 
tality of the Eisenhower military program, the 
Pentagon, mounted: Indeed it is a wonder that 
the Democratic opposition hasn’t long since 
dramatized the predicament of the Pentagon as 
the real Achilles heel of the Republican regime. 
The ingredients are there for a classic case: the 
vaunted efficiency of a business administration 
coupled with the sure-handed experience. of a 
great general should equal the peerless function- 
ing of the Defense Dept. Instead, so the charges 
read, the giant organism which devours more 
than half of the federal budget is a maelstrom 
of murderous service rivalry, inefficiency and 
sheer waste. 

This is not an idle indictment by captious ob- 
servers’ but the considered judgment of experts 
including, apparently, one of Mr. Eisenhower’s 
most ardent apologists, publicist Henry Luce. 
Luce’s Life magazine has just leveled a devastat- 
ing broadside at what it labels “shameful strife 
in the Pentagon” and has called for reforms to 
replace the facade of “unification” which is dis- 
guising the destructive competition and duplica- 
tion among the Army, Navy and Air Force. 

Perhaps even more expert is the balanced 
but withering critique of Democratic Congress- 
man Frank Kowalski of Connecticut, 4 pro- 
fessional politician admittedly by accident but 

a professional soldier up from the ranks 

through West Point with 33 years’ continuous 

military service, including a year’s duty in the 

Pentagon. He has already introduced a bill to 

abolish competing uniforms for a single uni- 

form and a truly unified command. 

The mild-mannered ex-colonel, who has al- 


Washington Reports: 


Congressmen at Odds on Need 
For Emergency Housing Bill 


A’ EMERGENCY housing bill is needed to 
stop the drop in housing starts, Rep. Albert 
Rains (D-Ala.) declared on Washington Reports 
to the People, AFL-CIO public service program, 
heard on more than 300 radio stations, 

Housing starts as reported by the Census Bu- 
feau are at their lowest level-in 19 months. 

“I think this underscores the urgent necessity, 
if we are to continue housing at even a million 
starts a year—which is 200,000 below any mini- 
mum ever established—of action soon on the 
emergency home ownership bill, which is in reality 
a mortgage credit bill,” he said. 

Rep. William R. Widnall (R-N. J.) said on the 
same program that he saw no need for the bill. 

“It would provide a false market for mort- 
gages,” he asserted. “This is actually inflationary 
spending of $1 billion, which would tend to un- 
balance the budget.” 

Rains replied, “I would like to point out that 
the bill doesn’t affect the present budget a single 
penny. I get a little dismayed at the continual 
statement that a mortgage credit bill, which pro- 
vides for the issuance of debentures by the Fed- 
eral National Mortgage Association, is a take- 
out on the federal budget. It is not and never 
has been.” ” 

Widnall also said he nail the economy is 
gradually improving and “interest rates will be 


APRIL 9, 1960 


Sa 


ready exposed such military manpower wastes as 
martini stirrers and dog-washers, argues that only 
by such drastic means can even more serious 
flaws and malfunctions—needlessly costing, he 
estimates, $7 billion a year—be rectified. In the 
April issue of True magazine, Kowalski cites 
enough military madness to unhinge that most 
patient of patriots, the taxpayer. Items: 


@ Recently while the Air Force was cam- 
paigning frantically and expensively for fighter 
pilots, the Navy and Marines were — 
some of theirs in a reduction of forces... 


® The U.S. was overcharged $42 million in 
26 Navy and Air Force contracts. 


@ More than $2 billion was spent last year 
on antiquated weapons projects. 


@ Instead of arranging a swap, the Navy and 
Air Force in one case shipped needed jet fuel in 
opposite directions. 

@ In another instance, the Air Force was 
about to sell off more than $8 million worth of 
surplus helicopter parts at a fraction of original 
cost while the Army was ordering the same parts 
from the same manufacturer for the same: heli- 
copter. Intervention by the General Accounting 
Office averted only part of the fiasco. 


a Duplication is rife in separate hospital serv- 
ices, reserve training facilities and einem 
gathering. 


@ At various stages of rocket development the 
Army and Air Force “hoarded scientific infor- 
mation from each other almost as — 
as from the Soviets.” 


@ The Life article reported that after the 
peaceful Marine landings in‘ Lebanon in 1958 
there was such warfare among the Army, Navy 
and Air Force over commands and functions it 
could have seriously jeopardized the whole op- 
eration if real fighting had developed. 


On top of his proposal to reorganize the De- 
fense Dept. under a strong civilian secretary, 
Kowalski has written the President urging unifi- 
cation of all missile programs under one tent 
and suggesting Admiral Rickover, the contro- 
versial expediter of the atomic submarine, as 
boss. 


Plainly these are visions of a dreamer but of 
a serious-minded dreamer who has been through 
the military mill and, especially with any public 
encouragement, they will cause nightmares in the 
Pentagon, 


lower; money will be back in the mortgage 1 mar- 
ket” without the assistance of an emergency hous- 
ing measure. 


RAINS COUNTERED by saying that no wit- 
ness, except the Administration, “claimed money 
was going to ease during the year. I remember 
the mortgage bankers and everyone else say the 
rate is alarmingly high and that discounts will be 
maintained.” 

“There may be some loosening of mortgage 
credit that will go into corporate investments, but 
I hear from no builders that there will be mortgage 
credit_at reasonable rates for low cost homes,” 
he added. 

Widnall believes the bill will pass ‘the House, 
but he expects it to be vetoed by the President if 
passed also by the Senate. He claimed a compre- 
hensive housing bill would have a better fate. © 

“I think there are things in an omnibus bill 
that would be seriously considered and ap- 
proved by members on both sides of the aisle,” 

.- he declared. : ; 

In regard to, thé emergency measure, Widnall 
said that no builder had written him and asked for 
its enactment. 


“You're about to hear from home builders,” 


Rains told him. “They’re already in touch with 


the chairman. of the committee, I can assure you.” 


THE. REPUBLICAN Senate leader, Everett McKinley Dirksen 
(Iil.), recently emerged from the. White House saying that a tele- 
graphic survey made by the. Dept.. of Health, Education & Welfare 
found only 237 school districts in the country that had reached the 


limit of their borrowing power for school buildings... This was 
intended to show that there is little or no, need for federal school aid 
legislation, and letters- are, moving. into Congress citing this Dirk- 
sen quotation attributed to the department headed by Sec. Flemming, 

It now turns out that Flemming’s “survey” was something less 
than complete and accurate, and he has so acknowledged in a . 
letter to Sen. Joseph S. Clark (D-Pa.).. A report by Rep. Frank 
Thompson, Jr. (D-N.J.) to his constituents cites Flemming as | 
acknowledging that the survey “did not call for full information 
as to the practical limitations on school financing,” and that the 
secretary has arranged for the Office of Education “to make a 
supplementary survey to obtain complete information.” 

Thompson goes on to point out that from July 1958 to March. 
1960, a total of 159 school districts in his. own state of New J ersey 
had applied to the state commissioner of education for permission to 
exceed their statutory debt limitations to build more schools. j 
A great many of these districts “have reached the absolute limit 
of their ability to borrow for school. building,” Thompson con- 
tinued, but the HEW “survey” cited by Dirksen “showed NO short- 
age in New Jersey” of borrowing capacity. . It listed not a single 
New Jersey district as among the 237 that. were supposed to be the 
only ones that had touched their borrowing-power limits. 

The unrefuted evidence accumulated by the Office of Educa- 
tion shows hundreds of thousands of children attending part-time | 
school sessions or housed in substandard buildings that are fire- 
traps and that even relatively wealthy communities lack local 
funds to make expensive and extensive repairs as quickly as they 
should be made. 

There are 100,000 school children in New Jersey alone on part- 
time sessions or in substandard buildings despite the fact that the 
state has spent $500 million since 1955: on school construction. 

Thompson’s school construction bill, now pending in the House 
Rules Committee, would authorize about $1 billion in federal grants 
to the states across three years—certainly a modest sum in relation 
to the tremendous amounts actually spent by states and localities 
in the great postwar school boom., A Senate-approved bill would 
authorize federal grants of $1.8 billion in two years, allowing the 
states to use their allotments either for buildings or for teachers’ 
salaries. Both measures are stalled by Administration opposition. 

This opposition is an Administration privilege, although Vice 
‘Pres. Nixon has shown in public speeches that he is concerned about 
the prospect of running on a record of unconcern for the school 
problems. The Administration policy is not bolstered by the so- 
called “survey” that Dirksen talked about, and the statistics should 
not have been used in an attempt to justify it. 

* * * 


SEN. BARRY GOLDWATER (R-Ariz.) went down to make a 
conservative Republican speech to the South Carolina Republican 
state convention recently, and somewhat astonishingly he emerged 
from the event with an endorsement of Sen. Goldwater for the Re- 
publican presidential nomination. Not Vice Pres. Nixon, who is 
being warned by Goldwater not to try to “turn liberal,” but the 
senator from Arizona is the one South Carolina Republicans think 
has just the proper ideas for the next President. 

The man who arranged this coup for Goldwater was Roger 
Milliken, whose name has sometimes appeared in the AFL-CIO - 
News these last few years. Milliken is the textile magnate who 
closed down his mill in Darlington, S. C., when the Textile Work- 
ers Union of America won-an NLRB election. He was held 
guilty of unfair labor practices but his longtime employes were 
left jobless and lacking recourse because Milliken preferred not 
to operate a mill if he had to bargain with his employes’ union. 


DISAGREEMENT ON NEED for emergency housing bill was 
expressed by Republican Rep.. William R. Widnall (N. J.) (left) and 
Democratic Rep. Albert Rains (Ala:) in housing discussion on Wash- 
ington Reports to ‘the People, AFL-CIO public service program, 


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AFL-CIO NEWS, WASHINGTON, D, C., SATURDAY, APRIL 9, 1960 


How To Buy: .- ij be CR 
Health Insurance 
Too High for Aged 


By Sidney Margolius 


OST OLDER PEOPLE can’t afford.even the best of the new 
hospital and surgical insurance plans currently being offered 
them. This department’s survey of “over-65” plans finds that the 
problem of medical insurance for senior citizens is simply too big 
for private companies or voluntary associations to solve. 

The only feasible solution yet proposed’ is the use of the present 
Social Security machinery as provided by the Forand bill now pend- 
ing in Congress. That way we would deposit a quarter a week in 
the Social Security piggy-bank during our working years and our 
employers would chip in another quarter, to pay for hospital and 
surgical needs when we retire. 

Here are the financial facts of retirement: 


It now costs about $205 a month for a retired couple to have a 
® modest standard of living in a typical U.S. city, as based on data 
from the Bureau of Labor Statistics and the Community Council 
of Greater New York. This is a modest budget providing for a 
three-room apartment, about a dollar a day per person for food, and 
approximately $15-$17 a month in most cities for medical care. 
The medical allotment worked out by welfare experts takes -eight 
percent of the modest model budget compared to the 5 to 6 percent 
most younger families spend. 


2 Most elderly people can’t afford even this modest budget. 

* Actually three out of five older people have less than $1,000 
‘a year money income from all sources, compared to the welfare 
council budget of about $2,400 a year for a couple or $1,700 for 
a single person. Even the current maximum Social Security of 
$170 to a couple can’t meet this modest budget with its medical 
allotment outlay of $15-$17. 

You want to know how much retired persons really can afford 
for medical care? Two-thirds of the people over 65 interviewed 
in a survey by the Health Information Foundation said they could 
pay just $5 a month for insurance that covered all medical expenses. 


3 Even if you could afford $15 to $17 a month, the best of the 
* plans now available would take most of your medical-care 
allotment and not begin to meet all your medical needs. 
The retired worker’s dilemma is that the purportedly'cheap medi- 
cal insurance being offered him provides only very limited benefits, 
but more adequate insurance is too costly. ~- 


FOR EXAMPLE, the plan now being offered by the American 
Association of Retired Persons costs a couple $144 a year if you 
include partial insurance for doctors’ visits outside the hospital. Yet 
the model budget provides only about $200 a year for all- medical 
care. This must pay for dentists, drugs, eyeglasses and other needs, 
as well as that part of the surgical, hospital and doctor expenses 
not covered by the insurance. For example, the AARP plan, like 
the similar “65 plus” plan being promoted by the Continental In- 
surance Co., pays only $10 a day for hospital care compared to 
actual typical charges of $20. 

Another plan for insuring elderly people for hospital and surgical 
care is being tried out by Blue Shield in Wisconsin, reports the 
Group Health Association. It costs $9 a month per person, or $216 
a year for a couple—more than the entire medical allotment in the 
modest model budget. Despite this large cost, it provides only $10 
a day for hospital care, although unlike the AARP plan it does pay 
for all miscellaneous hospital expenses, not just part. 


A third possibility for the hospital insurance part of medical 
care is the Blue Cross senior plans spreading through the coun- 
try. So far, 19 Blue Cross regional plans now offer a special 
“Senior Certificate.” This calls for either a higher rate or reduced 
benefits at the same rate for people over 65. Fourteen additional 
Blue Cross regions have no restriction at all on age. Two do 
have an age limitation but periodically open membership lists to 
people over 65. Eight additional plans have applied to their state 
insurance departments for approval of a senior certificate. 


This trend is desirable if Congress again refuses to pass the 
Forand bill. People already retired or expecting to, soon should 
first see what the local Blue Cross offers before signing up for com- 
mercial hospital insurance. 


Yet even the best of the Blue Cross plans are still too ceili for 
most retired people. For example, Cleveland’s Blue Cross is con- 
sidered an outstanding plan because it makes no extra charge for 
age, and provides relatively generous benefits. It provides 120 days 
of hospital care including full payment for all extras such as X-rays, 
plus hospital outpatient care and minor surgery. But the cost is 
$69.60 a year in a-ward for one person, or $140.00 for a family. 
(Family cost for semi-private accommodations is $165.) That would 
take two-thirds of the entire medical-care budget in the modest 
model budget. 

Some of the new Blue Cross senior plans trim the cost by co-|ff 
imsurance, meaning you pay part of the bill. Detroit’s “senior cer- 
tificate,” for example, provides 30 days payment for hospital care 
for each confinement. You pay the first $25 or 20 percent of the 
first $500 of hospital cost, whichever is greatest. Maximum payment 
is $500. Over that, you pay the bill itself. The cost is $125 a year 


Beaders Digest in Anguish: 


To Discredit 


NEW CAMPAIGN to discredit the nation’s 
unemployment compensation system and to 
picture the unemployed as “loafers, system beat- 


the April issue of Reader’s Digest. 

Part of the campaign apparently is designed to 
create a nation of informers, for in its original 
article on “The Scandal of Unemployment Com- 
pensation” the Digest urges: 

“If you know of any cheaters report the facts 
to employment officials or to your local news- 
paper.” 

The article, timed to appear as the House 
Ways & Means Committee is considering pro- 
posed improvements in the jobless benefits law, 
aims its major fire at the proposal to write new, 
realistic federal standards into the unemploy- 
ment compensation law, raising the old spectre 
of federal control. 

It appeared also at about the same time a 
special Senate committee on unemployment com- 
pleted exhaustive hearings and pinpointed the 
following shortcomings in the present system: 

@ Limited coverage of the law prevents one 
out of three of the unemployed from qualifying 
for benefits. — 

@ A much smaller portion of wages is insured 
by benefits now than 20 years ago. ; 

@ In the recent recession about one out of 
three exhausted his benefits before he could 
find a job. 

@ The employer tax rate today, even after a 
recession, is only one-third of what it was 20 
years ago. ; 

On the question of permanent improvements 
in the program in terms of. federal standards 
governing benefits, duration and other provisions 
—improvements backed by organized labor and 
many other organizations—the Digest declares: 


“NOW THE SITUATION threatens to grow 
worse. Legislation before Congress would put 
the states completely under thé thumb of Bureau 
of Employment Security by imposing mandatory 
federal benefit rates in all states to run nine 
months for anyone who qualifies for jobless aid. 
Big unions are already beating the drum for this 
federal take-over of jobless assistance.” _ 

And this is the Digest formula for action: 


“What can you as a citizen do about this? 
Here are suggestions: If you know of any cheat- 
ers, report the facts to employment officials or to 
your local newspaper. Find out if your state 
law needs to be tightened to prevent what you 
consider unjustified payments. If you decide that 
something should be done, communicate with 
your legislator. Write your governor, get your 
neighbors interested. Find out if your congress- 
man intends to support national legislation that 
would turn over unemployment compensation en- 
tirely to the federal government. . . . Just be- 
cause it is technically legal to dip into the public 
till, don’t let yourself be persuaded that it’s the 


ers and dole grabbers,” has been touched off in — 


Magazine Opens Drive 


Jobless Aid 


right thing to do. . . . We cannot afford to be- 
come a nation of loafers, system beaters and dole 
grabbers.” — 

The article completely pverlotke the long his- 
tory of employer abuses such as: j 

@ Two percent of employers are Selicocal 
or defaulting on unemployment compensation 


taxes, a larger percentage than all worker dis- 


qualifications from benefits are to total claims. 
@ In Ohio, where the Digest quotes govern- 
ment officials to back its charges, employers are 
allowed to hire “actuarial and service” firms to 
fight all appeals by their employes. 


unemployed claimants. 


@ Overdue and defaulted employer unem- 
ployment compensation taxes are over $40 mil- 


lion, better than three times what the Digest says 


has been taken by “gypsters.” 

@ Employer pressure on legislatures to hold 
down benefits and introduce restrictions. An em- 
ployer lobby in Washington has admitted spend- 
ing $125,000 in the 1958 recession to defeat per- 
manent improvement in the program. 

In every case of alleged scandal presented in 
the article, the magazine omits the essential fact 
which weighed in the court or appeal board’s 


decision. 


In the case of the Wisconsin mine-hoist op- 
erator who was discharged, the Digest omitted the 
crucial fact that the claimant’s superintendent 
had told him he could stay away until his doctor 
cleared him for mine-hoist work again. 

Two of the Digest “scandals” involve women 
who quit because they wanted to live with their 
husbands. One was married and had to move 
to stay with her husband; the other left to 
marry a2 man in another town. Both wanted 
to continue working and were looking for work. 
in their new residences. 


Woven through the article is the assumption 


that jobless pay is an employer’s gift and that his 
interest alone should be respected. Only the 
employer’s experience with appeals is cited: “In 
a recent 12-month period more than two-thirds 
of their (employer) appeals to referees and the 
board of review were turned down.” The Digest 
omits the fact that three out of four workers lose 
their appeals. 


THERE ARE NO INSTANCES cited where 
a worker has been shortchanged by the law, such 
as the employe who, while off. duty, was griping 
about his employer; when the word got back he 
lost his job and was disqualified from benefits as 
“discharged for misconduct.” 

Or the woman in Michigan who confided to 
her employer that she was pregnant, but assured 
him that she would be around for five or six 
months. That day she was discharged and then 
disqualified for benefits on the grounds that preg- 
nancy caused her unemployment. 


They are. 
paid according to, their success in defeating the 


for a couple. 


(Copyright 1960 by Sidney Margolius) 


in protesting discrimination in the South, 


SUPPORT FOR NEGRO “SIT-IN” protest against discrimination at lunch counters in the South 
brought out more than 1,000 members of Ladies’ Garment Workers who picketed three Woolworth 
stores in New York City in sympathy demonstration. Charles S$, Zimmerman (wearing hat in cét 
ter), chairman of AFL-CIO Civil Rights Committee and a vice president of the ILGWU, led pickets 
called discrimination “highly offensive.” He hailed use of “techniques of non-violence” by Negro¢s 


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— 
— 


— 


Soon 


Page Nine 


yo ederationist’ Article Says: 


Skilled Men Abandon ‘Work’ 


_ AFL-CIO NEWS, WASHINGTON, D. C., SATURDAY, APRIL 9, 1960 


States for Wages, Conditions 


A leading economist has warned that so-called “right-to-work” state laws are causing hundreds of 
thousands of skilled workers to migrate to freer industrial regions for higher wages and better working 


conditions. 


The economist, Milton J. Nadworny of the University of Vermont, asserted that the anti-collective 
bargaining laws are crippling industrial expansion in many states, especially in the South. 


In an article in the current issue 


of the American Federationist, of- 
ficial monthly publication of the 
AFL-CIO, he advised states seek- 
ing industrial expansion that if they 
hope. to keep their work force at 
home to staff new plants, it would 
be to their advantage to: 

@ Repeal so-called “right-to- 
work” laws that forbid manage- 
ment and labor from including un- 
jon’ security agreements in collec- 
tive bargaining contracts, even 
when both desire this arrangement. 

@ Upgrade their economic sys- 
tems “to match the higher wages 
and healthier labor-management 
policies of the rapidly-growing in- 
dustrial states” with which they 


compete for industry and workers. |- 


Nadworny based his conclusions 
on a study into the causes of migra- 
tion .of industrial workers. . He 
quoted a U.S. Dept. of Labor re- 
port which stated: “During a single 
year, more than 10 million persons 
move. ... The largest outflow was 
from the predominantly agricultural 


South. . . . The search for better 
employment opportunities is~ a 
major force behind this migra- 
tion.” 

In 19 States 


The southern states led the move- 
ment to enact “right-to-work” 
laws, which are in effect in 19 
states. 

Commenting on the Labor Dept. 
report, the economist said: 

“These ‘better employment op- 
portunities’ to most workers, es- 
pecially those with skills, ordi- 
‘narily mean higher wages and the 
right of membership in strong 
and responsible trade unions 
whose ... collective bargaining 
is not restricted by ‘right-to- 
work’ laws and anti-labor com- 
munity attitudes.” 

Nadworny said that “in seeking 
the reasons for the continuing. exo- 
dus of members of the labor force 
from the Southeast, it is pertinent 
to examine the disparity in the 
wage levels of the states of this 


Supreme Court Upsets 
NLRB O’Sullivan Ruling 


The National Labor Relations. Board’s attempt to prevent a un- 
ion from engaging in peaceful picketing and organizing a boycott 
because it has lost bargaining rights at a plant has been struck 
down by a unanimous decision of the U.S. Supreme Court. 


The decision came in the nearly} 


y four-year-old O’Sullivan Rubber 


strike by the Rubber Workers in 
a brief unsigned order knocking 
out the NLRB order. The basic 
tuling on picketing by a union that 
has lost bargaining rights came a 
week earlier when the high court 
rejected a similar NLRB ruling in 
the Curtis case. 

In the Curtis decision, the court 
tuled that the board erred in find- 
ing that peaceful picketing should 
be stopped on the theory that non- 
union workers were being “co- 
ered” by pickets. The court acted 
against the board under the terms 
of the Taft-Hartley Act before it 
was amended by the Landrum- 
Griffin Act. It did not: rule on 
whether L-G amendments would 
outlaw such picketing. 

The unanimous ruling in the 
O'Sullivan case overturned a 
decision by the Fourth Circuit 
Court of Appeals. 

URW members at Winchester, 
Va, were forced on strike by 
O'Sullivan, after winning an NLRB 
representation election by 343 to 2, 
When lengthy negotiations broke 
down. The company continued to 
operate, hiring strikebreakers, and 
n 1958 filed a petition for a board 
tlection to determine if the URW 
lepresented the workers. 

_ With strikers barred from vot- 
ig under Taft-Hartley provisions, 
the local was decertified as bargain- 
Mg representative but continued 
picketing and organized a nation- 
Wide boycott against O'Sullivan 
Products, The board held this to 

in violation of T-H and ordered 
ihe union to cease and desist. The 


Hole of Labor Press 
Described at College _ 
Pittsburgh—The role of the labor 
Mess in educating union members 
id the necessity of the trade union 
“ovement presenting its story fairly 
© spelled out for the faculty 
i’ students of the Duquesne Uni- 
‘sity School of: Journalism by 
‘tn McManigal, editor of The 
watinel, published by Steelworkers 


[union appealed and the board was 
finally reversed in the Supreme 
Court. 


The court denied an appeal 
in another and similar picketing 
case on the grounds that the un- 
ion, the Machinists, had made 
no objection to the board against 
a trial examiner’s finding of vio- 
lation of T-H. The company in- 
volved is the Alloy Manufac- 
turing Co. 


The case reached the U.S. Su- 


preme Court from the Ninth Cir- 
cuit Court of Appeals which had 


upheld the board on its picketing 
ruling but had found the boycott 
campaign conducted by the union 
to be entirely lawful. 


region and states elsewhere which 
are enjoying rapid industrial and 
population growth.” 

He said that California, which 
rejected the “right-to-work” law 
by nearly a million votes in 1958, 
had a net population gain of nearly 
3.7 million from 1950 to July 1, 
1958, while most “right-to-work” 
states were showing a continuous 
net population loss despite the high- 
est birth rates in the nation. 


Wage Differential Noted 


California, the economist noted, 
had an average weekly wage in 


| manufacturing in November 1959 


of $101.63, well above the national 
average of $88.98. The average 
weekly wage of an industrial work- 
er in North Carolina, a “right-to- 
work” state, for the same month 
was $62.93. 

“As a matter of fact,” Nadworny 
commented, “average weekly earn- 
ings in manufacturing in eight 
(southeastern) ‘right-to-work’ states 
was about $14 below the national 
average in 1950; by. November 
1959, the differential was almost 
$22 per week.” 

He concluded: 

“Any state or region ‘which con- 
templates or encourages industrial 
expansion of a significant order 
must evaluate not only its present 
supply of ‘labor and labor skills, 
but its ability to develop, hold and 
attract labor. 

“It takes time. for economic 
movements to crystallize, and for 
the general public to become 

_ Clearly aware of them. In this 
year of a national election, the 
continued flight of workers to 
regions with superior job oppor- 
tunities suggests that if workers’ 
economic ‘votes’ can be counted, 
the southeastern states, and, in- 
deed, the total group of ‘right- 
to-work’ states, may well be los- 
ing an important election. 


“It may be well for the future for 
the southern states to take a long 
look at the philosophy of a low 
wage economy and restrictive legis- 
lation which can produce results 
both painful and costly to the eco- 
nomic development of the states 


which have embraced it.” 


‘Oh, Well, He Won’t Be Back for 10 Years’ 


(Continued from Page 1) 
omitted that portion of the con- 
cluding ceremonies because of lack 
of time to analyze the resolutions, 
eliminate duplications and polish 
up the language. 


In areas of special interest to 
some 70 labor delegates, the 
language was clear-cut and force- 
ful. Delegates recommended: 


@ “That Congress enact at this 
session legislation providing sub- 
stantial general federal support for 
public education.” 


® “That the minimum wage law 
be increased to $1.25 per hour, that 
federal wage laws be extended to 
cover migratory workers, hotel and 
hospital workers, agricultural work- 
ers and other groups specifically ex- 
empted from the present law.” 


@ “That unemployment com- 
pensation be increased to 50 per- 
cent of the wages the individual 
receives on the basis of 39 weeks 
for every worker covered by ex- 
isting laws.” 

@ “That child labor laws be 
strengthened and enforced. We 
recommend that the child’ labor 
provisions of the Fair Labor Stand- 
ards Act be amended to provide 
children in agricultural employ- 
ment the same protection now af- 


Senate Moves Toward Passage 
Of Mild Voting-Rights Measure 


. The Senate moved toward final passage of civil rights legislation, rejecting amendments by liberal 
supporters designed to strengthen the House-passed measure, and turning back moves by Southern 
Democratic opponents to mutilate the bill’s voting-rights guarantees. i 

As the battle went into its 8th week of debate and filibuster, there was an apparent effort under 
way—led by Majority Leader Lyndon B. Johnson (D-Tex.) and Minority Leader Everett McKinley 
Dirksen (R-Ill.—to settle on a® 


middle-of-the-road measure. 


The pattern of compromise’ 
became clear as Dirksen led the 
successful fight to table an 
amendment, sponsored by the 
GOP Administration, which 
would have given permanent 
statutory status to the President’s 
Committee on Government Con- 
tracts. The amendment, offered 
by Sen. Jacob K. Javits (R-N.Y.), 
was tabled by a vote of 48-38. 


Dirksen also opposed an Admin- 
istration-backed proposal for fed- 
eral grants to school districts under- 
taking desegregation programs and 
another amendment which would 
have permitted the Attorney Gen- 
eral to intervene in school desegre- 
gation suits initiated by private 
citizens. Joined together, the 
amendments lost by 61 to 30. 


al 1397 in Homestead, Pa, *: 


' Also defeated were propasals by. 


Dixie opponents which would have 
watered down the voting guaran- 
tees. These unsuccessful amend- 
ments included one by Sen. Estes 
Kefauver (D-Tenn.) to permit local 
authorities to participate in proce- 
dures for registering Negro votes 
previously denied these rights at the 
local level; and an amendment by 
Sen. Sam J. Ervin, Jr. (D-N.C.) 
which would have limited the regis- 


Haskins, Inge Going 
To ILO Oil Parley- 


Intl. Rep. Loyd Haskins of the 
Oil, Chemical & Atomic Workers 
and Arvil L. Inge, Operating En- 
gineers’ regional director in Hous- 
ton, Tex., will represent U.S, oil 
industry workers at a meeting of 
the Intl. Labor Organization’s Pe- 
troleum Committee to be held in 


tration powers of federal voting 
referees to congressional elections. 

The House-passed measure pro- 
vides for federal intervention in 
federal, state and local elections 
where Negro registration rights 
have been denied. 


The Senate also turned back by 
a 73 to 18 vote a move by Sen. 
Allen J. Ellender (D-La.) to 
strike from the bill the entire sec- 
tion that would allow courts to 
appoint referees for the registra- 
tion of minority groups in cases 
where a federal judge finds dis- 
crimination by local authorities. 


Failure of the Senate to alter in 
any major detail the House civil 
rights bill indicated that the minor 
changes made thus far should be 
either acceptable to the House or 
easily compromised by a joint Sen- 


Geneva from Apr. 25 to May 6. 


ate-House conference committee. 


Youth Coltebence Bolts 
On Rights, School Aid 


Coyke~ 


DRA’ 
AFL-CIO wv 


ee EES THe 
ewe 


forded children employed in other 
industries.” 

@ “That state workmen’s com- 
pensation and unemployment insur- 
ance laws be extended to farm 
workers.” 

@ “That child care programs, 
including foster day care, day care 
centers and homemaker services, be 
instituted and strengthened by fed- 
eral, state and local help, including 
state regulation of standards.” 

@ “That minimum wage laws of 
the states be increased to meet the 
federal minimum wage and ex- 
tended to cover presently exempted 
industries.” 

A series of resolutions, adopted 
by overwhelming majorities in most 
cases, denounced racial bias and 
demanded equal opportunity in all 
areas of life. Pres. Eisenhower 
was asked to use “all means at his 
disposal, including the prestige of 
his office,” to speed compliance 
with school desegregation orders. 

Sit-ins Supported 

Conference delegates, including 
a large representation of young 
people, voted support for “sit-in” 
demonstrations by students pro- 
testing segregated facilities, de- 
manded abolition of discrimination 
in housing, education or employ- 
ment, called for “access to public 
facilities by all youths regardless of 
race, creed, .color, economic or 
social status,” supported Negro 
students in their fight for equality 
and “deplored the use of force, 
violence, political or legal contri- 
vances to prohibit or intimidate 
students protesting inequalities.” 

Other resolutions asked improved 
vocational training and urged 
broadening apprenticeship oppor- 
tunities for youth. 

Another forum recommendation 
asked “development of financial re- 
sources at the national, state and 
local levels to follow-up on the rec- 
ommendations of the conference.” 

The 7,000 attendance was the 

largest in the history of the 
White House conferences, held 
every 10 years since 1909. Sever- 
al hundred prominent speakers 
addressed conference programs, 
including leaders in education, 
religion, labor, business, agricul- 
ture, government and social 
work. AFL-CIO Pres. George 
Meany and Community Service 
Activities Dir. Leo Perlis were 
among the forum speakers. 

. AFL-CIO Vice Pres. Peter T. 
Schoemann, president of the Plum- 
bers & Pipe Fitters and chairman 
of the federation’s Committee on 
Education, served on the confer- 
ence’s top planning board and as 
chairman of one of the five theme 
assemblies. 


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““APL‘CIO: NEWS, WASHINGTON, D.‘C, SATORDAY, "APRIL '9,'1960 


7 
x 


UNDER 11¢ 
This tobulation by the U.S. Department of tobor of wage increases 


AND 11¢ AND = = NOT 
OVER COMPUTED 


in mojor settle- 


negotiated 
1,000 or more workers each) covers a fotal of 3 million workers in almost 


fs in all i 


except construction, services, finance and government. it 


CHART BY AFL-CIO DEPT. OF RESEARCH 


Unions Told to Seize 


Initiative in 


Bias Fight | 


Boston—International and local unions were urged at the annual 
Labor Institute on Human Rights here to seize and maintain the 
initiative on problems of discrimination and human rights. 

Speakers and workshop participants at the institute, conducted 
by the Civil Rights Committee of the Massachusetts State Labor 


Council, agreed that unions should®— 


seek out and act on problem areas 
instead of letting issues develop to 
the point where labor is put on the 
defensive. 

Among the principal speakers 
were Boris Shishkin and Don Slai- 
mon, director and assistant director, 
respectively, of the AFL-CIO Dept. 
of Civil Rights. 

The more than 250 delegates 
recognized, according to a 
spokesman, “that organized la- 
bor not only has a deep: interest 
in the civil rights issue, but has 
a strong stake in it, and the 
AFL-CIO is firmly committed to 


They also expressed strong sup- 
port of southern sit-in demon- 
strators and pictured them “as 
practicing a new adaptation of the 
old trade union sit-down technique 
of the late 1930's.” 

Workshops considered job dis- 
crimination, apprenticeship train- 
ing, planning local union civil 
rights programs, labor’s policy on 
civil rights and the relationship of 


Administration Compromise Stalls 
Action on Farm Labor Import Plan 


Organized labor’s efforts to cut down and finally end the mass importation of Mexican workers 
and to step up improvements for domestic farm workers appear to be stalemated for this year 


southern sit-in demonstrations to 
organized labor. 

The institute also dealt with at- 
tacks on the bill of rights, including 
anti-labor laws, congressional in- 
vestigations and local police ac- 
tions. ; 

The Jewish Labor Committee 
and the Catholic Labor Guild 
cooperated closely with the State 
AFL-CIO in operation of the 
institute. 

The conference was headed 
jointly by Michael D. Harrington 
and Julius Bernstein, chairman and 
executive secretary, respectively, of 
the State AFL-CIO Civil Rights 
Committee. Bernstein also is JLC 
Regional Director. 

Speakers in addition to Shishkin 
and Slaimon included State AFL- 
CIO Pres. J. William Belanger; 
AFL-CIO Reg. Dir. Hugh Thomp- 
son; Harrington;~ Bernstein; Edu- 
cation Dir. Benjamin D. Segal of 
the Electrical, Radio & Machine 
Workers. Salvatore Camelio, Rub- 
ber Workers district director and 
executive vice president of the 
State AFL-CIO, opened the pro- 


(Collective Bargaining Reports: 


Pay Increases in 1960 Seen 
‘Somewhat Larger’ than ’59| 


Collective bargaining as it is shaping up in 1960 probably will bring wage hikes “at least” equal 
to and most likely somewhat larger than in 1959,” 
In fact, with the cost of living edging up only slightly, it should be possible for most unions to 
win greater “real” wage increases than in recent years, commented Collective Bargaining Report, 
a publication of the AFL-CIO Dept. of Research. 


according to an 


AFL-CIO analysis. 


“This forecast is explained,” the? 
report added “principally by the 
generally good business conditions, 
plus the fact that so many workers 
already are scheduled to receive 
increases of a least 6 to 8 cents 
plus cost-of-living adjustments.” 

The report noted that a Labor 
Dept. tabulation of 1959 wage in- 
creases granted under major con- 
tracts showed that, of a total 5.2 
million workers, 37 percent re- 
ceived from 9 to 11 cents an hour 
and another 23 percent received 
11 cents or more. 


Living Costs Up 


The cost of living rose during 
the year by 1.3 percent, an increase 


additional 3 cents an hour for a 
worker’s purchasing power to keep 
pace, the report said. 

It pointed out that its forecast 
is not a goal for or judgment on 
union demands, but “simply a 
candid estimate of how bargain- 
ing is shaping up in 1960.” 

“Looking back, the report said 
“large increases could readily have 
been supported by the rate of busi- 
ness improvement and profit rise 
in 1959” and in turn would have 
stimulated greater economic ex- 
pansion. 

The report observed that econo- 
mists agree business activity will 
continue at high levels during 1960 
and, while rates of improvement 
may vary, profits should set new 
records. 

Wage Raises Needed _ 

The report also pointed out that 
the fact that consumer sales in the 
early part of this year have been 
below business expectations points 
up the economy’s need “for signifi- 
cant wage increases in 1960 to 
strengthen consumer markets and 
increase sales.” 

The report said marked pro- 
ductivity increases and high sales 
volumes have expanded profit mar- 
gins. The First National City Bank. 
of New York reports that 1959 
profits of 2,404 major corpora- 
tions topped 1958 by 20 percent, 


gram. 


by an Eisenhower Administration internal compromise. 


A House Agriculture subcommittee closed its hearings on extension of the ‘Mexican contract-labor 


program, due to expire in June of 1961 and allowing the importation of 450,000 Mexican a year, as the 
Labor Dept. declared the Adminis- 


with a 27 percent hike for the 


tration’s opposition to grower- 
backed bills to continue the pro- 
gram: and weaken protection. 

A White House conference re- 
portedly produced an agreement 
whereby Labor Sec. James P. 
Mitchell would not testify as 
scheduled but instead have a sub- 
ordinate express to 
the grower-backed bills and 
promise positive proposals for 
next year. 

Agriculture Sec. Ezra Taft Ben- 
son and grower interests, on the 
other hand, reportedly agreed to 
drop support of grower-backed 
measures on condition that Mitch- 
ell would not immediately seek the 
substantial changes in the law he 
has publicly espoused. 

New Study Due 

Mitchell, in a speech before a 
meeting of the National Travelers 
Aid Association in Washington, said 
that a soon-to-be-released study 
by his agency will show that “a 


minimum wage for hired farm 
workers is both feasible and de- 
sirable.” 

Observing that this is a political 
year, he said it is meant for the se- 
rious consideration of the next 
Congress. 

Improvements Needed 


Mitchell also reiterated his belief 
that the Mexican import program 
“should not be extended unless and 
until adequate remedial measures 
are adopted and substantial im- 
provements are made.” 

- The AFL-CIO and affiliated 
unions had testified earlier in 
support of a bill by Rep. George 
McGovern (D-S. Dak.), which 
would end the Mexican import 
program in five years and mean- 
while incorporate the safeguards 
recommended by a committee of 
consultants named by Mitchell 
last year. ~ 

Msgr. George G. Higgins, Di- 
rector of the Social Action Dept. 
of the National Catholic Welfare 


Conference and one of the 
Mitchell consultants, also sup- 
ported the McGovern bill but 
said the Mexican program should 
be ended “in 1963 or 1964 at the 
very latest.” 

Newell Brown, assistant secre- 
tary of labor, told the subcommit- 
tee that “in a_ significant number 
of areas Mexican workers are paid 
as low as 50 cents an hour and do- 
mestic workers working alongside 
of them are receiving less.” 

Brown charged that provi- 
sions of alternate bills before 
the subcommiitee were aimed 
against the Secretary of Labor’s 
authority to set the standards by 
which the employment service 
recruits domestic farm workers 
for growers. — 

They are, he said, “patently an 

tion” whipped up against amend- 

aad recently issued by Mitchell 
to improve housing and other 
standards, 


which generally would require an |- 


outgrowth of the grower opposi- | - 


1,382 manufacturing firms, the 
AFL-CIO noted. 

These profit levels and ienae: 
tivity advances can “support 
widespread substantial wage in- 
creases without creating any un- 
due pr on prices,” the 
AFL-CIO report added. ; 

On the cost of living, the AFL- 
CIO said the outlook for a slight 
1 to 2 percent rise this year means 
that unions ‘negotiating in the 
spring will again need a hike of 
about 3 cents to maintain pur- 
chasing power before considering 
what is needed in addition to im- 
prove real wages. 


4 Million on Escalator 


Over 4 million workers will have 
their pay adjusted automatically, 
the report continued, because they 
are. covered by agreements with 
cost-of-living escalator provisions. 
On the other hand, it pointed 
out, the persistence of unemploy- 
ment levels at about 5 percent 
while production advances has “a 
dampening effect” on wage nego- 
tiations in some situations. 


Warning on Propaganda 
The report also said that unions 
seeking wage increases will have to 


contend with the major propa- 


Four thousand delegates to a 


Government Workers 
Press Pay Raise Drive 


ganda effort by industries trying 
to persuade the public that pay 
hikes cause “inflation.” 

Wage increases for this year ah 
ready have been decided for some 
2.5 million workers covered 
long-term major contracts affect. 
ing 1,000 or more workers. 

Some 66 percent of these 
workers will receive hikes of 
from 6 to 8 cents an hour under 
“deferred” or “annual improve- 
ment” contract provisions. Those 
covered by. long-term contracts 
also will receive additional in. 
creases under escalator clauses 
should the cost of living rise 
about the same as it did in 1959, 

In construction, where agree 
ments usually do not have an e& 
calator provision, some 458,000 
workers will get raises already de 
cided on. 

Thus, the report concluded, the 
prospects for 1960 are—ailowing 
for such variables as the attitude 
of a union’s membership and union 
strength, management’s attitude, 
the condition of an industry or 
company and the extent of other 
benefits and contract length—‘that, 
overall, increases will generally run 
at least as much as in 1959 and 
probably a bit more.” 


cha bhe gr gh teen e* 2-323, awa 


ewepupestsnrnRnefTrTo ow 


legislative conference called by § 


the AFL-CIO Government Employes Council cheered a promise 
of early Senate hearings on pay raise legislation, shouted approval 
of a prediction that Congress would override the President if a pay 
bill should be vetoed for the fourth time in the Eisenhower Admin 


main task of personally calling on 
congressmen and senators from 
their home states. 
Goal of the government em- 
ploye unions is a pay bill intro- 
duced by 73 congressmen which 
would provide a basic 12 percent 
raise plus revision of pay steps 
which would additionally raise 
average postal salaries. 

At an opening rally in Washing- 


chief House sponsor of the pay 
bill, told the delegates that “in 
this election year” he didn’t expect 
more than 40 votes to be cast 
against a pay raise and he was 
“willing to make a small wager” 
that any veto by the President 
would be overridden. 

Johnston Promises Hearings 

Chairman Olin D. Johnston (D- 
S. C.) of the Senate Post Office & 
Civil Service Committee promised 
hearings on pay raise legislation 
as soon as the Senate completes 
action on civil rights legislation. 

The Government Employes 
Council, on the morning of the 
rally, wired a sharp protest to Re- 
publican leaders who turned down 
invitations to speak. 

Identical messages to Vice 
Pres. Richard M. Nixon, Senate. 
GOP Leader Everett McKinley 
Dirksen (ill.) and House Re- 
publican Leader Charles A. Hal- 

_Ieck (ind.) declared: “Two and 
one-half million federal em- 
ployes work in behalf of every 
citizen, whether he be Republi- 
can or Democrat. Their eco- 
nomic welfare should also be the 


Nixon sent a message extending 


istration, and then set about their? 


ton’s National Guard Armory, |- 
Rep. James H. Morrison (D-La.), | 


conference” but not committing 
himself on the unions’ pay de 
mands. 

In contrast, three Democratic 
presidential candidates, Senator 
Hubert H. Humphrey (Minn), 
John F. Kennedy (Mass.), Stuart 
Symington (Mo.), sent messages 
voicing strong support of postal 
and federal pay ‘raises. Another 1 

| 
| 


—_- ee? a 


announced Democratic candidate, 
Sen. Wayne Morse (Ore.), appeared 
in person to back the pay drive 
and urge the delegates “not # 
compromise for half a loaf.” 
GEC Chairman William C. 
Doherty, president of the Letter 
Carriers and a vice president of 
the AFL-CIO, said the attend 
ance was the largest in the his 
tory of the GEC’s legislative 
conferences. He described the 
rally as a “crusade for economic 
equality.” 

Federal workers, Doherty point 
ed out, have received only four i 
creases during the past 11 yealt 
and as a result have fallen far be 
hind workers in private industry. 


Find ‘Real Friends’ 

Morrison urged the delegates # 
find out who “their real friend 
are” when they make the round 
of congressional offices, He said 
in the past legislators “who have 
used every delaying tactic in th 
book” to block pay bills from com 
ing to the House floor have clai 
to be “friends of fedéral employes” 
because they voted for pay 

“on final passage.” 

“Without your organizatioas 
yours would be an empty voice 
the wilderness,” Morrison dec 

Johnston told the delegates ¥ 

“go home and tell the non-mei 
bers how they are getting benefit 
from the dues dollars paid by # 


“best wishes for a very successful 


ion members.” 


. 


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: 
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COVERED : 
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sae : ‘ i a 
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- O25 | 
: ments (those covering | 
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248 
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~ concern” about the problem and 


{Senate Hearings Spur Forand Bill Drive 


Administration Hit for 
Ignoring Health Needs 


try and others opposing health care : 


(Continued from Page 1) 
curity and to hiking social security 
taxes, and called for a scheme 
geared to private insurance com- 
panies for payment of limited ben- 
efits. 

@ Sec. of Health, Education 

& Welfare Arthur S. Flemming 
appeared before the McNamara 
committee, declared the Admin- 
‘ istration | had a “very deep-seated 


a “real sense of urgency” about 

“fading a solution, but said no 
~ specific proposal had been de- 
‘cided upon because of “the com- 
‘plexity of the problem.” 
- ,@ Seven Republican senators, 
unwilling to wait for the Adminis- 
tration proposal, introduced a com- 
plex plan calling for federal-state 
grants to help provide insurance by 
subsidizing the cost of private pro- 
grams. , Recipients would also be 
required to share in the cost, with 
contributions on a sliding scale 
geared to retirement income. 

e@ Although House Ways & 
Means rejected the Forand bill by 
a vote of 17-8, and turned down a 
more limited version by a 16-9 
margin, reports persisted of new ef- 
forts aimed at a compromise. 

@ The liberal House Democratic 
Study Group, in a statement issued 
by Rep. Thaddeus M. Machrowicz 
(D-Mich.), asserted that “no mat- 
ter what the Ways & Means Com- 
mittee ultimately does, no matter 
what parliamentary route may be 
necessary, we declare our determi- 
nation to enact this year a work- 
able, responsible program.” 

Meanwhile, Rep. Aime J. For- 
and (D-R. I.) filed a discharge pe- 

_ tition in the House to spring his 
‘pill from committee. The sig- 
“natures of 219 congressmen 
would be necessary to force the 
bill to the floor for a vote with- 
out committee approval. 

In a statement read to the com- 
mittee by Leonard Lesser, UAW 
director of social security, Reuther 
predicted that growing public de- 
mand will bring about enactment 
of medical care legislation during 
this session of Congress. 


Public Demands Action 


-'The House Ways & Means vote, 
he said, “suggests that that body 
has not yet become fully aware of 
the public demand for action and 
of the overwhelming evidence that 
the best way to deal with the prob- 
lem before us is by providing health 
benefits to the aged through so- 
cial security.” 

The labor-backed Forand bill— 
a key plank in the 1960 legislative 


program of the AFL-ClO—would| 


provide hospitalization and surgical 
benefits and nursing home care for 
social security recipients, financed 
by a maximum social security tax 
increase of $12 a year each for 
employers and employes. Parallel 
bills some of them slightly limited, 
are pending in the Senate. 
Reuther called health care for 
the aged “one of the foremost 
issues facing the American pub- 
lic,” despite the fact that legisla- 
tion aimed at meeting the prob- 
lem has been “belittled, ignored, 
Opposed and suppressed.” 


He accused the insurance indus- 


try and spokesmen of organized 
medicine of “naked self-interest and 
Itrational opposition” to health leg- 


islation, and charged that Vice Pres.’ 


Nixon and Flemming have been 
indulging in some fancy foot- 
work” to cover up the Administra- 
tion's opposition to the engi ig 
ported measure. 

‘Carey charged that there is “pe- 
‘Markable unconcern in high places 
with the pressing medical ~ care 
needs of the aged,” and declared 


_ good for him, but that limited 


ie calloused by their own crea- 
ture comforts.” 

Declaring that-it is “distressing” 
to note the Eisenhower Administra- 
tion’s opposition to the social se- 
curity approach, he said: 

“The President has not hesi- 
tated to use all the benefits of 
state medicine provided to his 
office. He is living proof, in fact, 
that good medical care can be 
provided in this fashion. Why 
the President seems to feel that 
outright ‘socialized’ medicine is 


health coverage through the so- 
cial security system is bad for 
our older citizens, is beyond my 
understanding.” 

Carey said private health plans 
cannot be substituted for an over- 
all insurance approach, as suggested 
by the Administration, any more 
than private pension plans are “con- 
sidered a substitute for old age in- 
surance benefits.” 

He noted that the social security 
system has not prevented the de- 
velopment of private pension plans 
and that minimum wage legisla- 
tion has not blocked development 
of superior wage structures. He 
said the American system supple- 
ments basic legislation with volun- 
tary action. 

“This is the approach that must 
come in the field of health care for 
the aged,” Carey declared, 

Dirksen said the White House 

conference—attended by Nixon 
and Flemming—won presiden- 
tial approval for some type of 
a voluntary health insurance pro- 
gram in which the federal gov- 
ernment, the states and the in- 
dividual would share in premi- 
' um costs, — 
In a letter to the presidents of 
national and international unions 
and state central bodies, AFL-CIO 
Legislative Dir. Andrew J. Biemil- 
ler said the Ways & Means com- 
mittee may agree on some modifi- 
cation of the measure. 

“The important thing now is 
to continue in full force all of 
the effective work which our af- 
filiates have been doing in sup- 
port of the Forand bill,” Bie- 
miller wrote. “Continue to pour 
in letters, resolutions and peti- 
tions. The fight on this issue has 


ADMINIST 


a a lia 


ere @i erin 


ji Democratic contest. 


|\Primary Fight 
Shifts From 
Wisconsin 


Apparently unwearied by a hard- 
fought priniary battle in Wisconsin, , 
two Democratic aspirants for the | 
presidency—Sen. John F. Kennedy 
(Mass.) and Sen. Hubert H. Hum- 
phrey (Minn.)—headed toward: an- 
other direct clash in West Virginia 
May 10 after Kennedy piled up a 
popular vote majority and two- 
thirds of the convention delegates 


8} in Wisconsin’s Apr. 5 primary. 


A heavy outpouring of voters 
gave Kennedy 478,118 to Hum- 
phrey’s 372,034 in - Wisconsin’s 
Vice Pres. 
Richard M. Nixon, running unop- 
posed in the Republican primary, 
trailed both Democrats with 341,- 
463 votes. Nixon congratulated 
Wisconsin GOP officials on this 


showing, but the consensus of poli- 
URRENDER” to American edical As-|tical observers was that his third- 


sociation and insurance lobby on Forand bill was assailed by Pres, | Place finish had not enhanced his 


James B. Carey, of Electrical, Radio & Machine Workers, secre- 
tary-treasurer of AFL-CIO Industrial Union Dept., 
before Senate Subcommittee on Aging. Carey called for passage} Humphrey carried three western 


in testimony 


reputation as a vote-getter. 
Humphrey Wins Farm Areas 


of medical care legislation for aged, financed through social security. | Wisconsin congressional districts 


Foes of Cross in BCW 


Open Second Front 


(Continued from Page 1) 


“squandered” to protect Cross’ in- 
terests and fight the ABC. 


At the conference, the insur- | 


gents: 
@ Demanded flatly that Cross re- 


sign, on grounds that he had not 


carried out a 1958 convention~ 
pledge to correct the policies that 
led to BCW’s ouster—and that 
BCW has since lost an additional 
40,000 members as a result. 

@ Set up a permanent “Local 
Unions’ Reunification Committee” 
to continue the campaign, with 
Pres. Ermin Moschetta, of Pitts- 
burgh Local 12 as chairman. 

@ Agreed to a sort of collective 
security pact, under which the full 
“moral, financial and physical 
strength of the full committee will 
be used to aid any local, officer or 
member who is “intimidated” for 
participating in the drive. 

@ Decided to look into the pos- 
sible legal means to keep per capita 


only begun.” 


payments to the international from 


ing 


net made any “promise.” 


this “another stinking 
keep your mouth shut.” 


that the AMA, the insurance indus-} © 


Reuther, Carey Testimony 
Stings Dirksen to Wrath 


_ Senate Minority Leader Everett McKinley Dirksen (R-II) 
has accused the presidents of two AFL-CIO unions of mak- 
“stinking statements” about the Eisenhower Administra- 
tion in the course of testimony on health care legislation. 

Dirksen erupted during the course of McNamara Commit- 
tee hearings when testimony by Auto Workers Pres. Walter 
P. Reuther was read, and when Pres. James B. Carey of the 
Electrical, Radio & Machine Workers testified. 

Reuther’s testimony asserted that although Eisenhower had 
indicated at his Feb. 3 press conference that a Social security 
tax hike “to make greater provision for the care of the aged” 
was under consideration, Vice Pres. Nixon and Sec. of Health, 
Education & Welfare Arthur S. Flemming were engaged in “a 
retreat from this presidental promise.” | 

Dirksen shouted that “I think that is a stinking statement 
from Walter Reuther,” adding that “Nixon and Flemming are 
just as interested as Walter Reuther or anyone else” in medi- 
cal care for the aged, and that furthermore Eisenhower had 


| ‘Twenty-four hours later, when Carey accused the White 
| House of “shameful surrender to the American Medical As- 
sociation and the insurance companies,” the GOP leader called 
” and an “insane statement.” 
When Carey tried to speak, Dirksen said: “Suppose you just 


Sen. Joseph S. Clark (D-Pa.) said Dirksen’s comments were 
“uncalled for and undignified.” 


being “misused.” This was not 
spelled out, but one possibility dis- 
cussed was to pay the per capita 
into a court-administered fund. 
The $100,000 war chest would 
amount to about $3 per member, 
based on the committee’s claimed 
rank-and-file strength. It will be 
up to the locals to decide whether 
to raise the money by assessment 
or voluntary contributions, 

BCW already has an official 
“reunification committee” — set 
up, according to the insurgents, 
to quiet the internal rumbles for 
return to the AFL-CIO. Dele- 
gates here said Cross had termed 
their meeting a “rump confer- 
ence.” Frank Dutto, co-chair- 
man of the permanent commit- 
tee, said the results here “ex- 
ceeded everything” the leaders 
hoped for. 

Moschetta, Dutto and three 
other top officers of the permanent 
committee were the plaintiffs in the 
federal suit and sponsors of the 
original conference call. 

The suit seeks an accounting of 
the union’s finances and asks that 
the court order a referendum for 
removal of Cross. 


Engineers Show 
Gain in Members 


Miami Beach, Fla. — AFL-CIO 
Pres. George Meany and Labor 
Sec. James P. Mitchell will be ma- 
jor speakers at a five-day conven- 
tion here of the Operating Engi- 
neers, which in the past four years 
has gained 52,000 members. and 
now has a total membership of 
302,000. 

The work of 750 expected dele- 
gates -will be devoted largely to 
consideration of approximately 80 
amendments to the union constitu- 
tion, including proposals dealing 


| with pensions and elections. 


The convention, opening Apr. 
11, will also nominate officers for 


four-year terms, subject to election 
by membership referendum — 


J. C. Turner to Get 
City of Hope Award 

J. C. Turner, president of the 
Greater Washington Central Labor 
Council, AFL-CIO, will receive 
the City of Hope’s Humanitarian 
Award at a testimonial dinner May 


that are primarily rural and the 
mid-state 2nd district that includes 

Madison, the state capital, and both 
industrial and farming activities. 
There were indications that he 
benefited there from support of 
voters previously identified with 
former Gov. Adlai Stevenson of 
Illinois, Democratic presidential 
nominee in 1952 and 1956. 

Kennedy ran strongly in indus- 
trial districts and also carried the 
7th district, which has a sub- 
stantial farm population. His 
statewide total was slightly more 
than 56 percent of the Demo- 
cratic vote. 

There were indications that Re- 

publicans, with no contest in their 
own primary, “crossed over” in 
substantial numbers to vote for 
either Kennedy or Humphrey in 
the Democratic race. 
Humphrey is entered in the Dis- 
trict of Columbia primary May 3, 
one week ahead of the West Vir- 
ginia contest, but Kennedy’s name 
will not be on the ballot. Sen. 
Wayne Morse (D-Ore.) will pro- 
vide Humphrey's major District of 
Columbia opposition. 


Harrison, Carey 
Back Symington 


Sen. Stuart Symington (D-Mo.) 
has been endorsed for the Demo- 
cratic presidential nomination by 
George M. Harrison, president of 
the Railway Clerks, and James B. 
Carey, president of the Electrical, 
Radio & Machine Workers. 

A joint press release by Carey 
and Harrison called Symington a 
man of “thoughtful liberalism and 
dedicated belief in America’s fu- 
ture” who “will and should be nom- 
inated by the Democratic national 
convention” next July. 


Major Air Pact 
Won at Republic 


(Continued from Page 1) 


$18 a day and allowances for 
doctors’ visits were raised an 
average of 25 percent. 

The scene of aircraft and missile 
negotiations—being conducted in a 
coordinated campaign by the IAM 
and the Auto Workers—has shifted 
to the West Coast, where contract 
talks opened with Lockheed Air- 
craft at Santa Barbara, Calif., 
North American Aviation at Los 
Angeles, and Douglas Aircraft at 


18, 


| Santa Monica, 


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Page Twelve Libis 


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LL Aco News, WasmNGTON, B. ¢) SaruRDAY, APRIL 9, 1960 | 


Unionists Help Ease 
Iowa Flood Disaster 


Sioux City, Ia—A volunteer labor task force of 100 skilled union 
members with boats, trucks and outboard motors made themselves 
immediately available here under an AFL-CIO Community Serv- 
ices-Red Cross disaster plan when flood waters struck this mid- 


western city. 


Concentrating their rescue and® 


relief efforts on the two hard-hit 
suburban communities of Morning- 
side and Riverside, the union volun- 
teers worked around the clock to 
check the destructive toll taken 
by the Floyd and Big Sioux Rivers 
as they overflowed their banks. 
At the same time, labor offi- 
cials were marshalling additional 
volunteers to serve as a rehabil- 
itation and mop-up corps once 
the flood waters receded. 

The handpicked task force was 
recruited by a four-member labor 
disaster committee. Working with 
the Red Cross in charge of the op- 
eration were Robert Chesker, pres- 
ident of the Sioux City Bricklayers; 
Earl Mielke, Community Services 
staff representative; Milton O’Har- 


Jodoin Sees 
Advantages in 


Joint Unions 


Boston — Control of Canadian 
labor unions in the United States 
is lessening while U.S. control of 
Canadian industry is on the rise, 
Pres. Claude Jodoin of the Cana- 
dian Labor Congress told the an- 
- nual business conference sponsored 
by the Boston College Graduate 
School of Business Administration 
and the Boston Globe. 

Nearly 90 percent of Canadian 
union .members..belonged to inter- 
national labor bodies in 1911, 
Jodoin told the conference, while 
at present only 70 percent belong 
to unions with membership in both 
countries. 

“While this reduction has been 
taking place,” Jodoin pointed out, 
“the Canadian members of inter- 
national unions have been gaining 
increasing autonomy. 


“Actually, there is very good 
reason for something approach- 
ing a million Canadian men and 
women to belong to interna- 
tional unions. Their association 
with trade unions in the U.S. 
has enabled them to organize in 
Canada on a scale that would 
otherwise have been impossible.” 


row, president of the "Building | 
Trades Council; and George Kour-- 


pias, president of the Woodbury 
County Labor Council. 

Within hours after the flood 
alert was sounded, Wallace O. Nel- 
son, AFL-CIO CSA staff represent- 
ative for Omaha, Neb., arrived on 
the Sioux City scene to coordinate 
labor activity, Experienced in dis- 
aster services, Nelson contacted un- 
ion officials and mobilized labor 
resources to combat the flood. 

Nelson reported that when he 
arrived in Sioux City a total of 340 
families had been evacuated’ from 
the flood area and were being 
housed in the city auditorium. Ad- 
ditional space was needed and five 
union halls were immediately 
turned. into centers where families 
could be sheltered and furniture 
could be stored. 

Nelson discovered an additional 
source of volunteer manpower at 
a meeting of 400 striking building 
tradesmen. When asked to serve 
in the disaster, every man respond- 
ed to the call, the CSA staff man 
reported. 

Nelson also cited an episode in- 
volving labor-management coopera- 
tion when the need arose for 
plumbers to reconnect stoves. The 
Beane Plumbing Co. made its em- 
ployes available free of charge 
until the Plumbers Union could 
set up machinery to provide volun- 
teer crews to residents of stricken 
areas. 


As flood waters began to re- ~ 


cede, labor began laying exten- 
sive plans for supplying volun- 
teer workers to help with re- 
habilitation and resettlement 
work throughout the region. The 
labor disaster committee expects 
to draw needed manpower from 
the ranks of Sioux City’s 100,- 
000 union members. 


Meanwhile in neighboring 
Omaha, Neb., Herman Groom, 
president of the Omaha Central 
Labor Union, headed a committee 
to recruit 2,000 skilled volunteers 
to work throughout the state on 
sandbag crews and as drivers of 
heavy equipment. Assisting Groom 
was John Humpal, AFL-CIO Com- 
munity Services staff representa- 
tive based at Omaha with Nelson. 


York Times of 


April 19-20. 


American labor's stake in: 


World Peace and Freedom 


Will be given national ond international distribution in a 
special 16-page illustrated supplement in the Sunday New 


May 8. 


This authoritative, documented analysis of the critical world 
situation available just before the Summit conference, will 
be based on the expert papers and analyses presented at 
the AFL-CIO Conference on World Affairs in New York City 


it will contain also articles in depth explaining American 
labor's deep concern with foreign policy, with the struggle 
for peace and freedom, with its accomplishments in build- 
ing and expanding the free world labor movement. 


You can obtain copies of this supplement—“‘American Labor 
Seeks World Peace and Freedom”—by writing < 


AFL-CIO Dept. of International Affairs 
B15 Sixteenth St... N.W. 


Washington 6, D.C. 


Single copies free. 


Up to 1,000 copies, 5 cents each. 
Over 1,000 copies, 4 cents each. 


Mitchell Again Urges 


Mitchell added. 


Weller, 38-year-old locomotive fire- 


Union-Industry Talks 


Labor Sec. James P. Mitchell, speaking before the annual safety 


awards banquet of the Locomotive 


Firemen & Enginemen, repeated 


his urgings to labor and management to meet continuously outside 
the bargaining table so they can serve “the greater good—the public 


good.” 


“The alternative is an abhorrent® 
one—to force, to control, to re- 
quire and to mandate by legislative 
action or by administrative action,” 
he declared. 

In an oblique reference to con- 
tract negotiations now warming 
up between rail unions and the 
industry, Mitchell expressed hope 
the railroad industry “would be 
the first to show they have the 
understanding and capacity to 
serve the greater good.” 

In the case of management, this 
is not necessarily higher profit lev- 
els, nor with labor, increased wages 
and better working conditions, 


The banquet honored Russell A. 


man from Bellefontaine, O., with 
the D. B. Robertson Safety Award 
Trophy and a $500 prize. 

Weller became, in the words of 
BLFE Pres. H. E. Gilbert, “a hero 
by choice” when he risked his own 
life to snatch an elderly woman 


Wagner Honored 
By Label Group 


New York—Mayor Robert F. 
Wagner of New York City has been 
named to receive this state’s 1960 
Union Label Award of Merit. 


from the path of rolling boxcars. 

The incident occurred last May, 
when Mrs. Lena Short, a 76-year- 
old diabetic, went for a stroll near 
her daughter’s home in Anderson, 
Ind. She fell across the tracks just 
as a_ string of boxcars was 
“dropped” off to roll onto a siding. 

. Weller, from the switch en- 
gine, saw Mrs. Short lying help- 
less on the siding track. He 
leaped through his cab window 
12 feet .o the ground and raced 
40 feet to pull her free just in 
time. 

Mrs. Weller and a large gather- 
ing of congressional, government, 
industry and rail union leaders 
looked on as Weller received the 
award from Mitchell. 

In his main address, Mitchell 
said he saw a “new era” emerging 
in American labor-management re- 
lations. 

He said the private sector of 
the economy now has two great 
powers—business and corporate 
bodies whose power is exercised 
not by their owners but by man- 
agers and trade unions whose 
power is exercised by agents or 
administrators. 

Calling the collective bargaining 
table an “antiquated” institution in 


| o9-6-r 


a 


r) UNIVERSITY og§ 


~L IB BM 
LARA 
Sup MIE wyo 


ICFTU Protests 
Trials in Spain | 

Brussels—The speedy court mar 
tial convictions of two Spanish} 
workers in connection with the 
placing of four bombs in Madri@ 
has been vigorously protested Dy@ 
Gen. Sec. J. H. Oldenbroek of theg 
Intl. Confederation of Free Tradem@ 
Unions in a cable to the comeg 
mander of the Madrid Military 
Region. 

“In the name of justice and hua™ 
manity we trust you will not cons 
firm these sentences,” Oldenbrock™ 
asked. 

Convicted a week after their aaa 
rests were Antonio Abad Donosdj 
24, a laborer, who was sentenced 
to death, and Justiniano AlvarelZgam 
Montero, 37, a cafe employe, whom 
received a life sentence. Thea 
bombs were discovered Feb. 18m 
and 19. Two exploded; the only 
victim was Perez Jurado, wh@ 
helped place them. 

The fact that the two were foun@ 
guilty only a week after their af 
rests has aroused grave doubts that 
their legal rights were observed. 


Union School Meet 


DISASTER OPERATIONS are worked out between Red Cross and 
AFL-CIO Community Services in wake of floods at Sioux City, 
Ia. Conferring with Mrs. Mary S. Kennedy, executive director of 
Red Cross chapter, are (left to right) James Wengert, secretary of 
Woodbury County Labor Council; Council Pres. George Kourpias; 
Robert Shesher, president of Bricklayers Local 5 and president of 
Northwest Iowa Building Trades Council; and Labor Disaster 
Chairman Earl Mielke, trustee of Packinghouse Workers Local 71. 


the light of such challenges as auto- 
mation, improved technology, the 
impact of foreign trade and workers 
displaced by technology, Mitchell 
warned labor and management 
would have to act in the public in- 
terest or see Congress and state 
legislatures intervene to curb 
abuses. 


Lures Civic Groups 
Harrisburg, Pa.—Members 
Parent-Teacher Associations aig 
church and civic organization 
joined trade unionists from thf€ 
counties at an education confi 
ence held by the Harrisburg Regia 
Central Labor Council. : 


He will be honored for his pro- 
motion of effective labor-manage- 
ment relations. The award will be 
given at the 33rd annual conven- 
tion of the Union Label & Seryjce 
Trades Dept. of the New York 
AFL-CIO, to be held in Albany 
on May 26. 


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