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Speeches; Federal Mediation and Conciliation Service
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Speeches; Federal Mediation and Conciliation Service
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box: 557
folder: 5
-
1967-01-09
-
aya
ir EAI
spewsStuns
iRs
Washington,
+ ie
Lihat Lament. nfm ate J
9
CORSE
CHARLOTTE,
N.C.
CLEVELAND,
OHIO
INDIANAPOLIS,
IND.
=
NEW
YORK CITY
ROCHESTER,
=
N. Y.
SAVANNAH
,
GA.
Prices
of Manufactured
Drop
Between the second
in Unit
quarter
Goods
Increase
Labor
Cost
In Spite
of 1960 and the third quarter
of
of 1966
straight-
time hourly earnings of manufacturing workers increased from $2.19 to
$2.59, or by 18.3 percent.
If fringe benefits could be taken into account,
this increase might be a little greater.
Nevertheless, unit labor costs declined during this period bf&
1. 3 percent,
because manufacturing productivity increased faster than haurly employee
compensation (including fringe benefits),
In spite of this decline
goods during the same
The
consequence
profits.
profits
a/
Between
before
Third
SOURCE:
of these
U.S.
price
the second
taxes
quarter
in unit labor costg, wholesale pricks
period increased
by 5.1 percent.
increases
quarter
of manufacturing
was
the sharp
rise
of 1960 and the second
corporations
of manufactured
increased
in
wtnufactum
by
61.8
g@arter
of 19664
percent.
data not available.
Department
of Commerce
(see
atta chad
cased
fase
“accmannée
on
SUMMARY
In manufacturing,
Average
between
second
straight-time
Unit labor
costs
Wholesale
prices
quarter
hourly
1960 and third quarter
earnings
fell 1.3 percent.
rose
Profits before taxes
5.1
rose
percent.
61.8 percent.
rose
18, 3 percent.
1966:
I’rederic
In 1965,
the
$625, 000*
GM
G.
board
in bonus,
or
Donner
LLL
LLL
LL
chairman
$825,000
Made
U.S.
of heavy
earned
every week.
*Includes
SOURCE:
overtime
$8, 300 in 1965.
contingent
GM
stock
Reports
A
received
Le
ee
Hour
espe
$200,000
in 1965
eee
amass anee geenagees waseean
in salary
o
and
this amounted to $412. 50 per
the average
Donner
option
Per
in all.
Assuming a 2,000 hour work year,
hour, or $3, 300 for an 8 hour day.
Because
$412
GM
made
credits.
hourly worker
in the
nearly twice that much
Compensation Paid to 56 GM
Exceeded
Total
The
GM
officers
salaries
Salaries
$17, 518, 000
and
of the
directors
Officers
of 547
paid
Top
and Directors
Government
in bonuses
for
1965
and
exceeded
the
of the
United
States,
members
of the
cabinet,
the
the
and the 435
members
of the House
Officials
salaries
President
President,
for 1965
100
to
total
the
Vice
senators
of Representatives.
EXECUTIVE
Frederic G. Donner,
in salary, bonus and
8-1/4 times
the
1965
Chairman
contingent
PAY
of GM's Board of Directors,
stock option credit in 1965.
the salary paid to the President
earnings
$8, 304 (including
of the average
made $825, 000
This was
of the United States
fully-employed
substantial overtime).
GM
worker,
who
and 99 times
was
paid
Henry Ford I, Chairman of Ford Motor Company's Board, received $650, 000
in salary and bonus award in 1965 - 6 3 times the President's salary, and
78 times the 1965 earnings of the average Ford worker, who made $8, 358.
Lynn A,
1965
Townsend,
compensation
the president
totaling
President, and 65 times
income of $7,540.
a/
of the Chrysler
$489,800,
as much
almost
as the
five
average
Corporation,
times
Chrysler
a/ Chrysler workers' earnings are not calculated by the
basis as those of Ford and GM workers.
SOURCE:
Corporation
Financial
and Proxy
as
Statements
much
received
worker
as
a
the
with a 1965
corporation
on the
to Stockholders
same
The
Rich
of the war
In spite
in recent years.
lowest
Get
incomes
Richer
and
against poverty
Poor
we have
Get
Poorer
made
progress
In 1960 the 40 percent of all families
received
16 percent
the 10 percent of all families at
In 1964
total personal income.
bottom received 14 percent and
30 percent of the total personal
SOURCE:
the
University
backwards
with the
of the total personal
income
and
the top received 27 percent of the
the 40 percent of all families at the
the TO percent at the top received
income.
of Michigan:
1965 Survey
7p /o?s
/9b¢ = 3
of Consumer
—
Finances
Parte: $y 2
ee
ht
JS
Income
of Rich Corporate Executives Rises Six Times
as Fast as Income of Unskilled Workers
Salary increases of corporation executives frequently are difficult to pin down.
What frequently happens is that they are promoted to a better paying job, or the
job they hold is changed around on the organization chart in order to give the
impression that they receive a raise because they are given additional
responsibilities.
But the following
1960, 25 percent
In
figures show what really has happened in recent years:
of all corporate managers and officials received an income
By 1964 this lowest income
$11,670 or more.
from $11, 670 to $21,970 or by 88.3 percent.
of the top 25 percent had risen
If this same comparison is made for blue collar workers, we find that the
lowest family income of the top 25 percent has risen by 22.0 percent for
skilled craftsmen, by 25.3 percent for machine operators and by only
(Detailed figures on attached card. )
15.4 percent for unskilled workers.
SOURCE:
Consumer
University
Finances
of Michigan,
Survey Research
Center,
1965 Survey
of
Va
of
Family
Income
1960
by Occupation
- 1964
Third
Quartile
1960
(dollars)
a/
Percent
Increase
Point
1964
(dollars)
88. 3%
$11, 670
$21,970
Craftsmen
8,510
10, 380
22.0
Operatives
7,190
9,010
25.3
5, 070
5,850
15.4
Managers,
Laborers,
Officials
Service
a/ Lowest income
SOURCE:
Consumer
Workers
of the top 25 percent
University
Finances
of Michigan,
Survey
Research
Center,
1965
Survey
of
/
1
-
©
4
&
2
d
ul
co
s
or
at
ti
go
ne
n
io
un
at
th
ed
id
ov
pr
w
Originally, the Taft-Hartley La
e
fil
d
an
nk
ra
e
th
r
te
af
l
ti
un
se
au
cl
not even request a union shop
ly
al
ic
if
ec
sp
d
ha
,
RB
NL
e
th
by
d
te
workers, in a secret ballot conduc
authorized it.
in
ul
sf
es
cc
su
so
re
we
ns
io
un
e
Th
d,
ge
But this provision boomeran
,
on
as
re
s
thi
r
Fo
ly.
sil
ed
ok
lo
s
these elections that the lawmaker
.
51
19
in
ed
al
pe
re
s
wa
n
io
is
ov
pr
this
Prior
to the repeal the NLRB
In 44,795 or 97.1
were approved.
SOURCE:
NLRB
percent
conducted
of these
46,119
elections,
union shop elections.
the union
shop
clauses
Net Worth Grew Nearly
GM's
a Public
Without
During
$4,255
million at the beginning
stockholders!
Of this
a public
nearly
Offerin
GM's
net worth
(book value
t,
cen
per
6
93.
or
n
lio
mil
982
$3,
by
d
se
ea
cr
in
)
ity
equ
of 1956 to $8,237
$4 billion increase
offering
On the contrary,
came
Stock
1956-1965,
period,
the ten-year
$4 Billion in Ten Years
in capital,
of the
from
million at the end of 1965.
not a nickel
was
raised
through
of stock.
$3,581
from ploughed-back
million or 90 cents
profits.
That is,
of every dollar
it came
of the new capital
out of the pockets
of
consumers.
The remaining
$401 million,
or 10 cents per dollar of the new capital,
was
ed
ari
sal
for
n
pla
se
cha
pur
ck
sto
s
GM'
to
ck
sto
of
e
sal
the
obtained from
se
the
of
r
the
Nei
s.
ive
cut
exe
for
n
pla
ion
opt
ck
sto
GM
the
to
and
personnel
ck
sto
The
.
eme
sch
g
sin
rai
l
ita
cap
a
be
to
ily
mar
pri
ed
plans was intend
e
th
e
il
wh
s,
er
rk
wo
ed
ri
la
sa
GM
to
purchase plan is a form of compensation
th
wi
s
as
br
p
to
s
n'
io
at
or
rp
co
e
th
e
id
ov
stock option plan exists primarily to pr
s.
si
ba
d
re
vo
fa
xta
a
on
d
an
es
ic
pr
nt
me
se
ba
n
company stock at bargai
SOURCE:
Company
Reports
Labor
Productivity
Than
Labor
Increases
50 Percent
Purchasing
Faster
Power
Between 1960 and 1965 productivity in the total private economy increased
at an annual rate of 3.8 percent.
During the same period total employee
compensation per manhour (measured in current dollars without adjustment for price increases) increased at an annual rate of 3.7 percent.
Consequently,
unit labor
costs
were
slightly
declining
during
this
period.
In spite of this decline in unit labor costs, prices increased substantially.
Consumer prices as measured by the CPI increased 1.3 percent annually.
Real employee compensation per manhour, therefore, increased at an
annual rate of only 2.4 percent, compared with the 3.8 percent annual
In other words, the amount of goods and
increase in productivity.
services the average worker was able to produce in an hour of work
increased 50 percent faster than the amount of goods and services the
average worker was able to buy with the compensation for an hour of work.
SOURCE:
U.S.
Bureau
of Labor
Statistics
Labor
Productivity Increases
Than
Labor
Purchasing
50 Percent Faster
Power
an
at
d
se
ea
cr
in
y
om
on
ec
e
at
iv
pr
l
ta
to
e
th
in
ty
vi
ti
uc
od
pr
65
19
d
an
60
19
n
ee
tw
Be
on
ti
sa
en
mp
co
ee
oy
pl
em
l
ta
to
od
ri
pe
me
sa
e
During th
annual rate of 3.6 percent.**
s)
se
ea
cr
in
e
ic
pr
r
fo
nt
me
st
ju
ad
t
ou
th
wi
s
ar
ll
do
t
en
rr
cu
in
d
re
su
ea
(m
r
per manhou
s
st
co
r
bo
la
it
un
,
ly
nt
ue
eq
ns
Co
t.
en
increased at an annual rate of 3.7 perc
.
od
ri
pe
is
th
ng
ri
du
)
ly
ht
ig
sl
ry
ve
g
remained stable (increasin
y.
ll
ia
nt
ta
bs
su
d
se
ea
cr
in
es
ic
pr
s,
st
co
r
bo
la
it
un
of
y
it
il
ab
st
e
th
of
e
it
In sp
,
ly
al
nu
an
t
en
rc
pe
3
1.
d
se
ea
cr
in
I
CP
e
th
by
ed
ur
as
me
as
es
ic
pr
er
um
Cons
al
nu
an
an
at
d
se
ea
cr
in
e,
or
ef
er
th
r,
ou
nh
ma
r
pe
on
ti
sa
en
mp
co
ee
oy
pl
em
Real
in
se
ea
cr
in
al
nu
an
t
en
rc
pe
6
3.
e
th
th
wi
ed
ar
mp
co
t,
en
rc
pe
4
2.
ly
on
of
rate
e
ag
er
av
e
th
es
ic
rv
se
d
an
s
od
go
of
nt
ou
am
e
th
s,
rd
wo
r
he
ot
In
productivity.
er
st
fa
t
en
rc
pe
50
d
se
ea
cr
in
rk
wo
of
ur
ho
an
in
e
uc
od
pr
to
le
ab
worker was
y
bu
to
le
ab
s
wa
er
rk
wo
e
ag
er
av
e
th
es
ic
rv
se
d
an
s
od
go
of
nt
ou
am
than the
.
rk
wo
of
ur
ho
an
r
fo
on
with the compensati
A
E
C
e
th
by
ed
us
t
en
rc
pe
8
3.
*The productivity figure of
t.
en
rc
pe
6
3,
to
S
L
B
by
d
se
vi
has since been re
SOURCE:
U.S.
Bureau
of
Labor
Statistics
on September
12,
1966
~
Earnings
A great
gap has been
from property.
economic
Lagged
Have
Labor's
From
Far
developing between
the second quarter
activity before
Nonlabor
Behind
income
Wages, salaries and fringe benefits of all
employees in the private economy rose
profits before taxes
Corporate
profits
Dividends
rose
Interest income
SOURCE:
U.S.
after taxes
from work
and income
of 1960--the peak period of
the last recession--to
Corporate
Income
rose
the
second quarter
60.0
15.8
rose
~
41.7%
Y
56.3
going to persons
Department
rose
of Commerce
81.5
We
of 1966:
i!
oseeeee Lhus
now with
the
and having
animated
our
spotlight focused
in mind
to the
That
basic
I think,
has
tradition
is
very
'the free
that he will freely
of man.'
fundamental
are
be for the
And,
he
and
than this:
the
(managers
and workers)
energies
what
is the
interlinking
continued,
this
at the
relations
self-responsible
so that they
service
at the
a
What
development
common
right
of collective
Dr.
of the
Albert
individual
service
of the
expression
so
comof the
that it is a perfect
better
in a great
spontaneously
of the
of that
Judeo-Christian
sound
I add further
bargaining.
of industrial
society.
of the
also
fabric,
trend
The
morality
development
is
is the
are
in view?
of the
energies
industrial
to answer.
of a democratic
put his
with
as they
bargaining, ' let us turn
end
goal
at things
great
concerned
is not too hard
self-responsible
of collective
in our
‘collective
of democracy.
conduct
free
call
question
looking
individual
said that the human
and
principle
past,
really
question:
and joyously
definition of the goal
put their
we
out of the
truly
the
on the
with the total morality
Einstein
there
aside
thing we
fundamental
grows,
bargaining
munity
that what
and developing
attention
answer
brushing
directive
production
of the
and with
could
plant
individuals
selfesatisfaction
enterprise?"
"With
acceptance
p
as
in view,
PME
hand
the sans
but
what
really
they
each
shunning
modify
resort
conflicting
compromises.
an area
With
are.
to
Thatis,
of exploration
final wall
reasonable
of necessity,
persuasion;
self-responsible
disciplined
tools,
step by
between
exists
there
lies
the
development
never
fertilizer
of the
more
is
the
individual
as
against
eS PTB
i
all important
are
about
of rational
it is
a fact
persuasion,
possible
and more
climate
Wherever
and
the
progress
by
of opinion
goal,
the
voluntary
and
collective
to
creative
bargaining.
field of creative
toward
individual
until they find out
setback,
present
oe
to disagree
of collective
a promising
of the
cea
of
the basic
are
aes An TOD
PRUMET OR
ER A
LARSA Pe NN SURE NO
that facts
reach
step
the
TEARS
REY TSAO A
YA NEON RES
and
the logic
I submit,
cooperation. "'
RR
7
by processes
a failure
as
and
and
aN
development
p
of persuasion
for the facts
together
these
force
beliefs
,
for
and worth
values
agree
sides
two
to search
to continue
rather
,
is
available
dignity
and consciousness
of force;
sO bila tis
but hard to get
need
tools
creative
of the
full acceptance
the
The
inherent belief in the
of democracy:
a person;
end
confidence.
and mutual
understanding
tools
of the
free
self-
and
Intec-Ofpice Communication
17,
November
Nat Weinberg
From
Labor-Management
and Automation
Subject
Dear
Reuther
P.
Walter
To
1966
Committee
Statements
on "Emergency
Disputes"!
Walter:
me
nt
wa
u
yo
it
ke
ta
I
.
ed
ch
ta
at
e
ar
s
t
n
e
m
e
t
a
t
s
e
ov
ab
e
th
The full text of
w.
lo
be
ne
do
is
is
Th
.
s
n
o
i
t
a
d
n
e
m
m
o
c
e
r
r
o
j
a
m
r
ei
th
e
z
i
r
a
m
m
u
s
EMERGENCY
The
specific recommendations
to
DISPUTES
h:
ap
gr
ra
pa
g
in
ow
ll
fo
e
th
by
ed
ed
ec
are pr
d
an
t,
in
ra
st
re
t
ea
gr
th
wi
d
ie
pl
ap
be
ld
ou
sh
s
e
r
u
s
a
e
m
"Extraordinary
th
al
he
al
on
ti
na
e
th
t
c
e
t
o
r
p
to
e
bl
la
ai
av
e
ar
s
n
a
e
m
r
he
ot
only when no
or
s
t
n
i
a
r
t
s
e
r
e
ac
pl
to
y
r
a
s
s
e
c
e
n
s
e
m
o
c
e
b
it
r
e
Whenev
and safety.
r
e
d
i
s
n
o
c
ey
th
t
a
h
w
e
u
s
r
u
p
to
s
ie
rt
pa
e
th
of
m
o
d
e
e
r
f
inhibitions on the
d
e
d
i
v
o
r
p
be
s
d
o
h
t
e
m
at
th
e
v
i
t
a
r
e
p
m
i
is
it
,
es
iv
ct
je
ob
e
to be legitimat
:
.
es
su
is
d
e
t
u
p
s
i
d
e
th
of
for equitable solution
ee
The
i.
(a)
)
S
C
M
F
(
e
c
i
v
r
e
S
n
o
i
t
a
i
l
i
c
n
o
C
d
an
n
o
i
t
a
i
d
e
M
l
a
r
e
d
e
F
e
The Director of th
t
n
e
m
t
n
i
o
p
p
a
e
th
t
n
e
d
i
s
e
r
P
e
th
to
d
n
e
m
m
o
c
e
r
to
y
it
or
th
au
would have the
al
ic
it
cr
or
r
o
j
a
m
a
n
"i
n
io
at
tu
si
y
an
in
.
d
r
a
o
B
e
t
u
p
s
i
D
of an Emergency
al
on
ti
na
e
th
g
n
i
n
e
t
a
e
r
h
t
e
ut
sp
di
a
to
in
p
o
l
e
v
e
d
y
a
m
h
c
industry whi
health or safety."
(b)
(c)
(d)
p74
JU™
iy
fy
rats
Jp
are:
recommendations
opr
d
n
e
m
m
o
c
e
r
to
d
an
e
t
a
i
d
e
m
to
d
e
z
i
r
o
h
t
u
a
be
d
l
u
o
w
The Board
k
r
o
w
d
l
u
o
w
it
so
g
n
i
o
d
In
.
t
n
e
m
e
l
t
t
e
s
r
fo
s
e
u
q
i
n
h
c
e
cedures or t
closely with FMCS,
The
Board
his approval,
settlement.
could make
-- recommendations
-- and,
as to the terms
with
of
t
h
g
i
m
t
bu
,
ic
bl
pu
e
th
t
n
e
s
e
r
p
e
r
d
l
u
o
w
d
r
a
o
B
e
th
of
The members
.
s
d
n
u
o
r
g
k
c
a
b
y
r
t
s
u
d
n
i
or
r
bo
la
th
wi
s
r
e
b
m
e
m
e
ud
cl
in
!
s"
se
ca
‘in certain
Tne ~ Om
f)
nen
e
k
a
m
to
y
it
or
th
au
r
fo
t
n
e
d
i
s
could ask the Pre
an RR mE T OT
f
cont
?
Walter
Le
P.
(a)
(b)
“Z-
Reuther
Upon receipt of the Board's
whether
such
(d)
(a)
a threat
exists
1966
the
e
n
i
m
r
e
t
e
d
d
l
u
o
w
t
n
e
d
i
s
e
the Pr
report,
and,
17,
on whether
gs
in
ar
he
ld
ho
to
d
r
a
o
B
e
th
k
as
The President could
.
ty
fe
sa
or
th
al
he
al
on
ti
na
e
th
dispute threatens
if he
so
could
finds,
the
declare
of a national emergency.
existence
(c)
November
s
ie
rt
pa
e
th
ct
re
di
d
ul
co
t
n
e
d
i
s
e
r
P
e
th
n,
io
at
ar
cl
de
ch
su
Upon
nt
te
ex
e
th
to
,
or
e
ol
wh
in
''
ns
io
at
er
op
e
m
u
s
e
r
or
ue
in
nt
co
.
ys
da
80
to
up
r
fo
'
,'
rt
pa
in
e,
practicabl
,
y
c
n
e
g
r
e
m
e
of
n
o
i
t
a
r
a
l
c
e
d
Upon a
subject to
be
d
l
u
o
w
y
c
n
e
g
r
e
m
e
of
n
o
i
t
The President's declara
y.
rt
pa
ed
ct
fe
af
y
an
of
e
c
n
a
t
s
n
i
e
review at th
to
court
d
e
z
i
r
o
h
t
u
a
be
d
l
u
o
w
d
the Boar
e
th
at
d,
an
,
ct
fa
of
gs
in
nd
fi
e
k
a
m
to
,
n
o
i
t
a
i
d
e
m
ue
in
nt
co
to
.
t
n
e
m
e
l
t
t
e
s
r
fo
s
n
o
i
t
a
d
n
e
m
m
o
c
e
r
e
k
a
m
to
,
on
ti
re
sc
di
s
'
t
n
Preside
e
iv
ct
fe
ef
to
t
c
e
p
s
e
r
th
wi
s
n
o
i
t
a
d
n
e
m
m
o
c
e
r
e
ud
cl
in
d
ul
These co
.
t
n
e
m
y
o
l
p
m
e
of
s
n
o
i
t
i
d
n
o
c
d
an
s
m
r
e
t
in
s
e
g
n
a
h
c
y
an
of
dates
(b)
The
Board
in terms
or
could also make
conditions
recommendations
t
n
e
r
r
u
c
n
o
c
a
on
''
d
o
i
r
e
p
y
a
the 80-d
[NOTE:
The labor members
in a dissenting
footnote,
to be
of employment
put
regarding
into
or retroactive
effect
basis. |!
t
n
e
m
e
g
a
n
a
M
r
o
b
a
L
e
of th
urged
that
s
m
r
e
t
in
s
e
g
n
a
h
c
r
e
d
r
authority to o
|
.
od
ri
pe
y
a
d
0
8
e
th
ng
duri
the
President
and conditions
changes
should
during
Committee,
have
the
of employment
e
th
by
te
vo
a
r
fo
s
ll
ca
h
c
i
h
w
t
Ac
y
e
l
t
r
a
H
t
f
a
T
e
th
The provision of
d
o
i
r
e
p
on
ti
nc
ju
in
y
a
d
0
8
e
th
ng
ri
du
r
fe
of
st
la
s
'
r
e
y
o
l
p
m
workers on the e
would
be
eliminated.
ex
e
th
at
t
u
o
k
c
o
l
or
ke
ri
st
a
be
d
l
u
o
w
e
er
th
at
th
ly
ke
li
If it appeared
to
d
e
z
i
r
o
h
t
u
a
e
b
d
l
u
o
w
t
n
e
d
i
s
e
r
P
e
h
t
,
d
o
i
r
e
p
y
a
d
0
8
e
h
t
of
piration
e
t
a
i
r
p
o
r
p
p
a
s
r
n
o
o
f
i
t
a
d
n
e
m
m
o
c
e
r
h
t
i
s
w
s
e
r
g
n
o
C
to
r
refer the matte
action.
‘+8 *
P.
Walter
~3-
Reuther
17,
November
1966
g
in
rd
ga
re
ns
io
is
ov
pr
e
th
r
fo
pt
ce
ex
e,
ov
ab
ed
iz
ar
mm
su
é
ur
ed
oc
pr
e
th
,
ow
kn
u
As yo
e
th
on
up
re
su
es
pr
re
mo
no
t
pu
,
nt
me
recommendations for terms of settle
e
ar
s
er
rk
wo
e
th
as
r
fa
As
t.
Ac
ey
tl
ar
employer to settle than does the Taft-H
concerned, the only changes are:
is substituted for
Order
a Presidential
(a)
That
(b)
.
ed
at
in
im
el
is
te
vo
!
r'
fe
of
t
as
"l
e
That th
such
whenever
the employer's
been taken,
has
a vote
an injunction;
If my
and
recollection is correct,
a majority
voted
for
rejection
of
last offer.
AUTOMATION
from
Aside
standard
the
collection
growth,
Statement):
'4,
education,
of data,
follows
as
were
document
recommendations
(the
numbers
etc.,
with respect
major
the
below
are
the
to such matters
as economic
recommendations in this
same as those in the
e
th
to
,
es
ur
as
me
ng
ki
ta
r
fo
ty
li
bi
si
on
sp
re
Acceptance by management of
l
ca
gi
lo
no
ch
te
of
ct
pa
im
e
th
g
in
en
maximum extent practicable, for less
change,
including:
Adequate
a.
lead time.
reporting
to the
employees
b.
Open
c.
Cooperation with representatives
problems involved.
involved.
of the employees
to meet
the
“.
Cooperation with public
d.
from retirement,
oe
a.
services.
l
ia
nt
te
po
at
th
so
,
le
ib
ss
po
nt
te
ex
e
th
to
The timing of changes,
ns
io
at
er
op
of
n
io
ns
pa
ex
ed
ct
pe
ex
by
d
unemployment will be cushione
g
in
lt
su
re
s
on
ti
ra
pa
se
gh
ou
hr
(t
e
rc
fo
rk
and normal attrition in the wo
-e.
i
employment
quits,
and so forth).
@
l
ca
gi
lo
no
ch
te
or
on
ti
ma
to
au
th
wi
d
ce
fa
Private employers and unions
o
wh
s
er
rk
wo
le
ab
en
to
rt
fo
ef
le
ab
on
changes should make every reas
w
ne
r
fo
y
if
al
qu
to
d,
ne
ai
tr
re
be
to
ed
ne
o
are being displaced, and wh
t
or
pp
su
of
s
an
me
a
y
jo
en
to
d
an
,
er
oy
pl
em
me
sa
e
th
th
wi
e
bl
la
ai
av
jobs
while
so engaged.
P.
Walter
i
17,
1966
ee
ae
The duration, coverage, and amount of unemployment compensation,
where inadequate, should be increased and made subject to realistic
uniform minimum requirements under the Federal-State system.
b.
Employer supplementation of public unemployment compensation should
be accomplished through severance pay, supplemental unemployment
benefits,
c.
re
November
-4-
Reuther
and
similar
measures.
Attention should be given to provision for the special case of the worker
who is displaced during the period when he is approaching retirement,
This may appropriately include consideration of provision for early
retirement, through private arrangements or social security measures;
but alternative possibilities of more constructive temporary uses of
such services warrant exploration.
eooe
a.
Financial aid in the transfer of employees to other plants ina
multiplant system, and protection of existing rights for individuals
so
c.
The
transferred.
improvement
of public and private protection of pension rights, "'
x
*
*
RB
Carrol Coburn is listing for you those recommendations of the Automation
which were summarized in the UAW Administrative Letter on the subject.
Fraternally,
NW:pms
cc: Irv Bluestone
opeiu42aflcio
ie
Commission
Intec-Oppice Communication
December
To
Walter
From
irv
6,
1966
Subject
949, Will
acronies
Institute
on the
Yih)
of Industrial
subject
''The
Davis
Relations,
Logic
an address
gave
University
of Collective
ee
ee
e
of
before
the
California,
Bargaining".
RE.
His basic concepts are still valid and I thought
you would be interested in reading a few particular paragraphs.
IB:lm
opeiu42
att.
COLLECTIVE BARGAINING
AND ARBITRATION
CONDUCTED
A CONFERENCE
SAN
FRANCISCO
AND
LOS
IN
ANGELES
Presented by the
Institute of Industrial Relations, University of California
and the Conference of Junior Bar Members
in cooperation with the Committee on
Continuing Education of the Bar of the
he
tensive
ener
.
a
aes t
State Bar of California
INSTITUTE OF INDUSTRIAL RELATIONS
:
AND UNIVERSITY EXTENSION
MARCH
8,
5,
1949
The
Logic of Collective
Bargaining
WILLIAM
H.
DAVIS
My FIRST REACTION to the title, ““The Logic of Collective Bargaining,”
was to say: There is no logic in collective bargaining; things are not
carried in collective bargaining to logical conclusions, but rather to
acceptable compromises. The request to deal with this question was like
_ being asked to talk on the snakes in Ireland after St. Patrick went
through.
To the superficial observer the adjustment characteristic of collective
bargaining comes with an overtone of disparagement; the idea of compromise gets mixed up with the now so-disreputable idea of “appeasement.” But in this discussion here we do not want to be superficial. I
think the students and practitioners here at all levels want to see things
as they really are, as of today. If we are to serve the future usefully it
will be by helping toward a realistic view of the present; a view that
can add to foresight so that the younger men, if they get anything from
our older experience, will be helped to know how to handle concrete
situations; the problems and responsibilities that confront them now
or that lie immediately ahead of them.
|
Looking at the thing that way, I have asked myself: what does it really
mean that we say there is no logic in collective bargaining; that such
a sound economist as Dexter Keezer calls collective bargaining “that
excessively praised process of fumbling, bluffing, and bulldozing toward
an adjustment that should be made with hairbreadth precision,” and
yet prefers to fix wages by that process; that in spite of its cumbersomeness and crudity we nonetheless hold profoundly to the belief that collective bargaining is a thoroughly creative thing?
This idea that collective bargaining necessarily leads to acceptable
compromises rather than to logical conclusions reaches to the very heart
of things. It leads that way because it is a driving social organism with
a way of life of its own. Collective bargaining is a process of growth;
it is the reflection of something that is always becoming. It is a part
of the developing morality that manifests itself in our industrialized
society, and as such it links in with the basic moral principles of our
world. Its logic is the logic of man’s progress in the creative role assigned
to him in the general scheme of things. It, like the cosmic order of the
E3J
4
universe,
Collective Bargaining and Arbitration
has an
order
and
harmony
of its own,
instituted by reason
but opposed by the forces of disorder. ‘The generating “cause” of this
dynamic organism is an ideal of end, persistently exercising a force of
attraction, and perhaps energized by some impulse in the thing itself,
constantly aspiring towards the ideal; a cause which goes on in time
from one achievement to another, sometimes wavering and sometimes
forging strongly ahead. Thus, when we ask ourselves what the logic of
collective bargaining is, we are really asking what is its trend? Its goal
is a social ideal, its trend, and therefore its “logic,” marks the direction
and perhaps the rate of man’s struggling progress toward that goal
against ignorance, unenlightened selfishness and fear. For the mathematically inclined, as the trend is to the goal, so is belief to truth.
|
It is impossible to judge a trend—the progress or retrogression of
any movement—except with reference to the end in view. It seems of
utmost importance, therefore, to understand the end in view—the funda-
mental purpose—of collective bargaining.
But first let us turn back a little. I want to put emphasis on the present
and the future, to look around in the present and look ahead into the
future. I want to avoid too much entanglement with the past, because
I think that is one of the principal sources of trouble in industrial relations today, that we are still dragging behind us the clanking chains
of misunderstanding and superstition. We have had a telescoping of
events in collective bargaining that is almost too much for the lifetime
of one man. We would have been better off if those who now have to
go forward in the field had been born after the things that have been
going on in this country since I was a young man had ended.
We do need some perspective, even to see things just in front of us;
and as one looks back over the last thirty years it may be seen that
the development of industrial relations in this country can be divided
roughly, perhaps with some oversimplification, into three periods:
1. Prior to 1918, the “yellow dog days,” interrupted during World
War I by the War Labor Board of 1918 with its recognition of the right
to organize, and the return to vigorous antiunionism after the First
World War. In this period the spotlight was on the individual, then
thought of as a self-sufficient atom of society, rendered undesirable as
an employee if he sought to join with his fellow workers for mutual aid
and protection.
2. The period of strugele of individual workers for the uninterfered
with right to organize; of Section 7a in the National Industrial Recovery
Act; and of the Wagner Act of 1935 validated by the Supreme Court
in 1937. In this period the spotlight swung to the union as an association
of individual employces excrcising their right to organize and to choose
Collective Bargaining and Arbitration
&
5
their own repicsentatives for collective
bargaining, struggling under
the protection of the Wagner Act for “recogn
ition.”
3- The current period of acceptance of org
anized labor asa component
factor of industrialization with the spot
light moved again to the individual, but now as a member of a societ
y at least partially integrated
and within which the individual finds
satisfaction not alone in takehome pay but, more importantly, in his r
elation to his fellow workers
to the enterprise for which he works, and to
the community in which he
It is with the spotlight in this third posit
ion that we have to look at
industrial relations today. It is in this
light that we need to think of
our subject: what is the logic of collectiv
e bargaining? Thus brushing
Albert Einstein has very truly said that
the human goal of the JudeoChristian tradition is “the free and selfresponsible development of the
oyously put his energies at the
service of the
community
of man.”
And,
tions in a great production plant than thi
s:
development of the individuals (manage
rs
spontaneously and with self-satisfaction
put
of the common enterprise? J :
,
he
continued,
this is also
the free and self-responsible
and workers) so that they
their energies at the service
of opposition? For those who are no
w students or practitioners, that is
the funda
mental question. The job ahead is to s
earch out and understand the limits of persuasion and of nec
essity that determine the character and reflect the possibilities of the
struggle toward that goal.
The greater part of that limit-fixing
job has yet to be done. It can
hardly be said that we have done more up
to now than scratch the surface
of the subject, although the exper
ience I have had and the observat
ions
I have made leave me with the strong
conviction that we are headed in
the right direction. Experience convin
ces me of that. If you look back
a
Collective Bargaining and Arbitration
6
as I do over thirty years, you cannot
ahead and even at an extraordinary
to you who will have charge of things
of us who have had experience in the
help but feel that we are going
rate. The real adventure belongs
in the future, rather than to those
past. It is, I think, a great adven-
ture, and I certainly wish you well.
The remarks I am now about to make as to where persuasion ends and
necessity begins are not made in any dogmatic sense. They are tentative
suggestions—almost random thoughts—put out for critical examination
and with no more than a modest hope that you may be able, by further
research and experience, to distill some truth out of them or to check
and reject their errors.
For establishing and maintaining conditions favorable to this development of the individual which is the goal of collective bargaining, both
management and organized labor must assume responsibility. Elmo
Roper has listed the goals of the individual worker in this order: first,
security; second, a chance to advance; third, being treated like a human
being; and fourth, a desire for simple genuine dignity. ‘There is nothing
in these goals incompatible with the desires or with the needs of either
management or organized labor. They may be hard to satisfy but nobody
objects to a wageworker wanting security and dignity, to get on in life,
and to be treated like a human being. We may expect, ofcourse, in these
relations the difficulties which come from the fact that, as David Harum
used to put it, “there is as much human nature in one man as there is
in another, if not more.” These difficulties always tag our footsteps in
every relation of human life. If we cannot suffer them gladly we have
to suffer and surmount them as best we can.
Having made this reservation, I think we can agree that there is
nothing on the employer’s side fundamentally incompatible with the
goal of free and self-responsible development of the individual, as we
have
defined
it. Special
instances aside, it is the normal
desire of an
employer to be on friendly terms with his employees. In my native state
of Maine, I know today of many small enterprises—machine shops, boat
yards, automobile repair establishments, and the like—in which the
relation between the boss and the men is filled with that mutual respect
and mutually helpful association for which the normal employer, even
in our huge enterprises with tens of thousands of employees, still has
a nostalgic longing. Although, in many large modern enterprises the
old-time employer |:
jo clty sauch <epiaced by salaried managers,
yet we can still expect that the managers have this same natural desire,
although perhaps with slightly different motivations and slightly different emphases. Indeed, it may be assumed that the free and selfresponsible
development
of
individuals
as the
end
in
view
is quite
Collective Bargaining and Arbitration
4
definitely compatible with the relationship of salaried managers to wage
earners, since that goal includes them both. Here again we must, of
course, make considerable allowance for human nature with its mis-
understandings,
its fears, and its tendency
to flee from reason jong,
long. before it is compelled to surrender to necessity.
The true limitations imposed by necessity on rational agreement from
the employer’s side are fixed by those requirements which are really
necessary to the discharge of the obligations of management.
Searching for these limitations we must take as necessities those things
which are truly necessary to the upkeep of a “free private enterprise”
system because there is no doubt that management and organized labor
in the United States agree in their resolve to put their money on that
system, at least for one more turn of the wheel. But within that one ac-
taneous codperation,
dispute.
presents
free and
of spon-
the true limits of necessity lie far, far beyond
the
present position of belief and practice. And as belief is related to truth
so is the trend related to the goal.
[With acceptance of the end in view, the need is for development of
understanding and mutual confidence. The tools available are the basic
tools of democracy: inherent belief in the dignity and worth of the
individual as a person; full acceptance of the creative values of persuasion as against the deadening hand of force; and consciousness that facts
are all important but hard to get at so that the two sides agree never
to disagree about a fact but rather to continue to: search together for
the facts until they find out what they really are. With these tools, by
processes of rational persuasion, shunning each resort to force as a failure
and setback, it is possible to modify conflicting beliefs and step by step
reach more and more creative compromises. That is, I submit, the logic
of collective bargaining. Wherever an area of exploration exists between
the present climate of opinion and the final wall of necessity, there lies
a promising field of creative progress by reasonable persuasion; and the
fertilizer is the collective goal, the free and self-responsible development
of the individual toward voluntary and self-disciplined codperation. |
Rie
ceptable generalization almost every particular application is in
This is a situation which by the logic of collective bargaining
the greatest opportunity for progress. Tested by the criterion of
self-responsible development of the individual up to the point
Executive
Director,
Industrial
Department,
AFL-CIO
1966
29,
December
Francisco,
San
Union
Meeting
Annual
19th
IRRA
CONWAY
T.
JACK
BY
FIELDS
NEW
TO
BARGAINING
COLLECTIVE
OF
EXTENSION
THE
{
'
IUD
the
this
unions,
It
of
in
achieving
Its
organizing
with
of
of
those
and
on
have
they
and
perceptive
as
group
a
for
on
of
action
the
month.
this
discussing
are
we
large
in
so many.
because
the
we
it
need
private
through
community
coordinated
collective
its
participation,
clear
quite
to
all
of
wages
same
and
its
dimensions,
bargaining
provides,
shore
sector
is
better
up
our
who make
as
we
together
see,
shall
lead,
I
think,
any
index
we
have
for
economic
an
to
a
the
beyond
great
devised,
yet
effective
decisions
far
go
for
from
conditions
to
strength
the
acting
and working
going
than
that
us
unions
of
conglomeration
the
to
extension
the
about
and
less
collective
secondly,
surprised
has
that
a pace
at
talking,
Politeatine
coordinated
of
growth
poverty.
a mere
or
more
community
on
made
been
implications
where
in
war
I am
And
the
into
than
more
Coordinated
measure
year
proceeded
has
year,
us.
of
national
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number
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in
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gain
59%
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alone
1964
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industry.
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not
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increase
an
was
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1958
and
1954
in more
operating
meat
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financial
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industrial
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possibility
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Conference
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Organizations.
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Chicago
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experiment-
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community
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Industrial
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communities.
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examples
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form
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at
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We
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Southern
Council of
experience
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notices.
bargaining
conventional
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Labor
committee
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where
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action
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Community
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international
Angeles AFL-CIO Central
union
experience
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community
Action
heads
for
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22
Committee.
now
unions
Labor Council.
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chairman
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Support
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organized
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labor
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practical
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purpose.
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ways
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interest
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families.
action
scope
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police
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it
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board
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lines
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- Item sets