Indianapolis Times, Indianapolis, Marion County, 11 March 1946 — Page 5

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MONDAY, MARCH 11, 1946

f.. WASHINGTON, March 11 (U. P.).—Following is a condensation of {a question-and-answer explanation of the government's new wageprice policy. . The questions and answers .were prepared jointly by the

office of economic. stabilization, the the national wage stabilization board: Q. What is the purpose of the | new wage-price policy "announced | | by President Truman on Feb. 14? | A. To maintain the “stability of| the economy in the present emer-| | gency” and to.clear the decks for| full-speed-ahead in production, the order provides: FIRST: "A basis for reasonable| wage settlement in all cases. Labor is assured the opportunity to obtain wage adjustments in line with those worked out in free negotiations, or recommended by the government, since V-J day. SECOND: Prompt adjustments in price ceilings. wherever they are necessary to relieve hardship or increase production of essential goods.

Q—What are the basic similarities between the new: wage-price policy and the previous policy? A—The new policy is not a brand

Questions and Answers Explai

office of price administration and

The “new policy ne- longer encourages unapproved wage on salary increases. Consideration of such increases is barred, not merely for, six months, but for the duration of the stabilization laws in determining either price ceilings or costs under government contracts. Wage or salary increases which are going to be used in applying for price relief immediately, or for increasing costs to the government, must be approved in advance,

Q—Will the new policy require prices ‘to be increased wherever wage rates have gone up? A—Far from it. High wage rates do not necessarily mean proportionately higher labor costs. Loss

of overtime, downgrading, an im-|iey

proved labor force and other factors, offset the effect of higher rates on labor costs in whole or in part. Even when increases in wage

new program but an adaptation of the old to fit present conditions. The new policy, like the old, calls for free collective bargaining within the framework of the stabilization program. Except in a few special situations, it imposes no direct prohibitions on wage or salary increases. Like the old, the new policy. puts limits upon the extent to which wage or salary increases can ‘be reflected in higher prices or higher costs under government contracts. Such increases must be approved by the government before they can be used for these purposes.

Q—What are the principal differences between the new wage-price policy and the previous policy? A—Under the -old policy, standards for approval of wage or salary increases were relatively | limited, These standards were not lintended to limit the amounts of | the increases which would actually take place, But these unapproved increases could not be reflected in higher ceiling prices right away. | After a six-month test period, how|ever, ‘OPA was diyected to take {them into full ‘account and to give any price relief which the test | périod showed was called for under established pricing standards. The new policy liberalizes the standards for approval of wage and ' salary increases, The basic standard consists of the patterns of adjust{ment which have actually been

and localities during the period between V-J day and the date of the order, -

| by any means always call for price

the |

rates do increase costs, they do net

increases.

Q—What does the new wageprice policy mean to the average American family which is so con. cerned about the cost of living?

A—First of all, it means that consumers can expect to get larger supplies of refrigerators, washing machines, automobiles and all the other peacetime goods were all waiting for. Secondly, it will not mean a new higher level of prices. More than two-thirds of the average family's expenditures go for food, rent and clothing. The new wage-price policy should have no effect on rents and little’ or no | effect on food and clothing. Special steps are being taken to increase production of low-priced clothing and thus to reduce the average family’s clothing bill, Prices | for some metal goods will undoubt~ edly increase somewhat. Such in= | creases mean a bulge in the price {line. But there will be no breakthrough.

Q—What does the new wage: price program mean to the average employer? +3 A~—It means quicker settlement |of wage problems. It means prompt | price relief where hardship exists |under fair pricing standards. It {means that the way is cleared for

| all-out production.

otherwise, are removed, that the worker is protected against | a runaway cost of living Which |

‘A—It means an increased flow of |

machinery, tools and other peace- | 11 others, no,

time goods he needs to Yun his | established by- an earlier; order of farm. And it is unlikely that there | (he stabilization administrator. For | will be any real increase even in| an interim period, until March 15, the prices of the farm equipment|jg4s, an employer may make an he buys. It means that the declin-| unapproved wage or salary increase |

workers will be at least partially restored through increases in wage | rates.

Q—Will the mew wage-price pol-| tie business men and labor unions up in red tape and delay?

A—Emphatically no. The government is obligated to give both groups the fastest possible action, | if we are to get the flood of produc-| tion we need. The new wage-price program contains new provisions | for streamlining procedures to the | limit, However, this is a two-way obligation. Businessmen will have to co-operate by supplying accurate | data and supplying it more quickly | than has been the case on many | occasions in the past.

Q—What agencies “will adminis: | ter the new wage-price policy?

A—The same agencies which have have been administering the| previous policy. The national wage stabilization board will pass finally | on all applications for approval of | wage increases, except those involv- | ing agricultural labor and so-called Lea amendment cases. The board acts also on increases for certain | salaried employees receiving $5000 | for annum or less. { The salary stabilization units in| the treasury department will pass | finally on all applications for ap- | proval of salary increases other | than salary increases under the] jurisdiction of the national wage stabilization board. The department of agriculture | will continue to administer wage controls applying to agricultural labor. The office of price administration will administer the price features of the new policy, with the approval of the secretary of agriculture as

| Q—What does the new wage-

established in the various industries price policy mean to the average tion will direct and co-ordinate

| worker?

required by law in certain cases. The director of economic stabili-

"THE INDIANAPOLIS TIMES oni ——— n Details of New Wage-Price Policy n Details of New Wage-Price Policy through collective bargaining or as a basis for reimbursement under orders, or other general orders, It means | government contracts. An unapproved.increase cannot be used for any of these purposes for the dura-

would destroy the benefits of tHe ‘tion of the stabilization laws. A adjustments: .. "

Q—What does the new wage- wage or salary increase and then policy mean to the average farmer? apply for approval of it afterward?

ing income which many farmers| without waiving the right to seek expected after V-J day will not ma-| approval afterward. terialize because the wartime pur-| however, apply for such approval chasing power of many industrial| within 30 days after the increase is first reflected in current payrolls. . | The new regulations provide for

equal the percentage increase in, (8 the cost of living between January| wartime

1041 and September 1945. . |on Aug. 17, 104 (4) Increases necessary to cor- arts relating “y rect-substandard rates, ‘cages) ‘were us (4) Increasés ‘necessary to cor-|on applications for rect substandard rates. wage or salary increases.

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| which. will give advance approval to a much larger numberof. in- | creasess These blanket approvals do not | cover increases in the building and | construction industry.

Q—When a general order has been issued by the national wage stabilization board or the salary stabilization unit giving advance approval to a class of wage or salary increases, may an employer secure approval on special application of an increase in excess of the amount approved by the general order? A—Ordinarily = not. Thus, the board's pattern orders, once issued, will establish definite limits upon the wage increases Which can be approved in the industry or industries covered by the order.

Q-—Where should an application’ for approval of a wage or salary increase be filled?

A—As was the case before the new executive order, applications for approval of increases subject to the jurisdiction of the national wage stabilization board will continue to be filed with the nearest local office of the wage and hour division of the department of labor. Applications for approval by the salary stabilization unit will be filed with the unit's local regional offices. Application for approval of increases for agricultural workers (in- | cluding those covered by the Lea

Q—May an employer make a

A—In two classes of cases, yes,

The first class of cases is one

He must

a second class of cases in which approval of a wage or salary increase may be sought after it has been made. An employer need not secure prior approval of a wage or salary increase if he has not present intention of using it as a basis for seeking an increase in price or rent ceilings or utility rates or for increasing costs under a government contract.

Q—If an employer makes a wage or salary increase without prior approval and gives notice that he has no present intention ‘of using it as a basis for seeking a price increase, may he apply for a price Increase

later? amendment) will continue to be) : A—Yes. He must, of course, first| Aled with the labor branch, produc- Si ‘ secure approval of the use. rs tion and marketing administration, | In Boys’ Sizes In Big Boys’ A ne crease, department of agriculture, Wad | 0 2/2 fo 6 6 /a to 8!

ington, D. C., or write the appropriate state USDA wage board, Q—What standards will be applied by the wage and salary stabilization agencies in passing upon applications- for approval of wage or salary increases? A—(1) Increases consistent with a general pattern of wage or salary adjustments which has been established in a particular industry, or in'an industry or related industries in a particular local labor market,

Q—What classes of wage or salary increases are given advance approval by the President's executive order itself? A—The President's executive order gives advance approval to ool classes of wage and salary increases: (1) Any increase lawfully made before the date of the order (Feb. 14, 1946) and (2) any increase made at any time in accordance with a governmental recommendation announced before the date of the

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wage or salary increases are given advance approval by the new wageprice regulations? A—(1) Increases made by employers who employ no more than eight employees, unless wages for such employees have in the past

such pattern was established) to eliminate a gross inequity between wage rates or salaries in related industries, related plants in the same industry, or related job classifications in the same plant. (3) Increases necessary

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| the overall policies and see that the program in general is carried forward promptly and uniformally in line with the President's executive order. !

Q—Can an employer lawfully make a wage or salary increases without getting government approval? A-—Yes. However, wage or.salary increases must be approved before

they can be used as a basis for securing an increase in priee or rent ceilings or utility rates ef for increasing costs to the United States under government contracts,

Q—Are thers’ exceptions to th general “thai unapproved wage or salary increases are not unlawful?

‘} A—Yes. These exceptions are the “ |same as those which existed before

the new executive order. Wags in the building construction industry cannot be increased without the prior approval of the wage adjustment board. { Wages in the building construcform to the ceilings on agricultural | labor established by the department | of agriculture are unlawful Certain inequity adjustments in tthe basic steel industry called for by the war labor board's decision of Nov. 25, 1944, in the “basic steel case” still require prior approval. The new executive order and regulations do not affect pre-existing rules as to wage decreases. All wage decreases are unlawful unless approved before being made

ge What is meant by an “approved” wage or ‘salary increase? A—An approved wage or salary increase is one which can be used as a recognized item of costs in applying for an increase in price] tor rent ceilings or utility rates, or

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