Employees AAR IITEOffice and Professional COLInternational Union, AFL-CIO and CLC

No. 384 FEBRUARY 1979 (1*- 3 nionism Benefits D.C. Bank and Its Employees Customer Deposits, Net Profits and Staff Pay Soar at The National Bank of Washington By JANE PEDEN arbitration machinery to settle any disputes that may This remarkable but solid growth has been due to arise between management and employees. Strange the joint efforts of enterprising and innovative bank When bank employees unionize they not only bene- as it may seem, grievances are now few and far be- management, together with the loyal cooperation of fit themselves but also stimulate management innova- tween, amounting to less than 10 a year, all being our unit members who act as personal sales people in tive skills when they both work together in an at- resolved fairly in a mutual spirit of "give and take." attracting more deposits to their bank. mosphere of mutual respect and harmony. Technological changes have been numerous also Needless to say, from time to time we run into some As an example, I can cite my own experience in since we unionized but they, too, surprisingly have jittery employees who see doom in some new innova- The Washington where I work in National Bank of created new opportunities for career advancement by tion in bank services or a rumor floats about. But the Review In my capacity as unit Loan Department. the employees. Our contract calls for retraining in when the union informs its membership that it cannot & Employees Chief Steward of the Office Professional event of automation, and this solution has proved inhibit management's ability to offer cost-competitive Union, Local 2, our bargaining repre- International mutually beneficial for both the bank and its em- services with other banks, its assurance is met with a I have had a unique opportunity to observe sentative, ployees. general understanding by unit members that what is the results of collective bargaining since we unionized Before the union, promotions were haphazard. good for the bank is also good for them. Thus, man- in 1972. There was an old tradition that if one were good in a agement and union have built up a feeling of mutual Today, as unionized bank employees, we enjoy the particular job he or she stayed there. This no longer trust. highest salaries of any bank in the Washington, D.C. applies; the union changed that. Now whenever a job Summing up, in my opinion it's good business for area. We now have employer-paid medical care with vacancy occurs, our contract requires that it be posted to accept unionization because I optical and dental plans; better vacations, more lib- =bank managements on the bulletin boards so that anyone qualified can Union has contributed to the growth eral personal leaves, and many other fringe benefits know that the apply. and success of the bank where I work. Its profits have that didn't exist before we unionized. Moreover, we Where applicants are of equal ability, seniority is increased with growing deposits, careful investments, enjoy greater job stability and have a new sense of the deciding factor. Consequently, favoritism and innovations. Besides, its personnel personal security. and many service cronyism are ruled out. With this union innovation, turnover has been greatly reduced, another plus on Contrary to what many believe, not only has the career-minded individuals have moved up and quali- the profit side. bank grown in strength and profitability since the fied people in the unit have even been promoted into it has meant greater job and union came in but so has our unit membership which managerial ranks. For the employees, personal security, improved opportunity for advance- now totals 550, against 358 when we unionized in If any argument is needed that unionism is also and promotion, and the highest pay and finest June, 1972. good medicine for management, I believe that our ment fringe benefits for banks in the Washington, D.C. Personnel turnover, which is unusually high and record of success and growth at The National Bank area. costly in non-union banks, has dropped drastically at of Washington can be cited as proof. our bank to a low between 15% and 20% and even When the employees unionized in 1972, its bank For my own part, I cannot understand why this in some months has been down to 10%, reflecting the deposits totaled $373,935,000. On December 31, formula for success and growth, which The National high morale and more stable work force that the 1978, these deposits had grown to $690,670,000 and, Bank. of Washington adopted just a few years ago, union has brought about. in due course, we expect them to reach the one-billion has not been grasped by other bank managements and Under our OPEIU contract we enjoy grievance and dollar mark. bank employees in the area. Office Unionism Booms in Britain 1978 Membership Soars Five Reasons Cited to Explain White Collar Influx A massive influx of white- employers have "to face an adds that employers must also in "President's 100 Club" collar employees into unions in ever-growing number of claims realize "that the organization Sec.-Treas. William, A. Lowe reports that membership in the Britain in recent years has for trade union recognition" of their employees in a trade "President's 100 Club" in 1978 totaled 133, almost double the 79 swelled membership in the that will "effect progressively ' union can have practical advan- figure for contributors in the previous year. Trade Union Congress to the higher status groups in an em- tages for all." The article con- Enrollment in the Club, authorized by the Executive Board in 12 million mark, according to ployer's hierarchy." (Unlike the tinues: 1977 to raise funds for VOTE (Voice of the Electorate), requires NUBE News, official publica- U.S., supervisors and middle "Thus it is quite possible that members to send $100 by check or money order, or sign a payroll tion of the British National managers in Britain are allowed this new growth period will take deduction card for that amount in the year. A gold membership Union of Bank Employees. to unionize.) union membership in the United card is sent to qualifying contributors. Explaining why British white- Asserting that employers Kingdom up to a figure around Contributors who were employees of the International Union collar employees are "increas- cannot ignore "the changing at- 70-80 percent of employees. If, and qualified in 1978 are: ingly turning- toward collective titudes of their employees, or of within this figure, a white-collar Howard Coughlin John W. Cropper, Jr. John F. Fitzmaurice bargaining," the article lists the society as a whole," the article (Continued on Page 3) William A. Lowe Joyce L. Mason John Connolly following reasons: Jack Langford J. 0. Bloodworth Mark Reader 1. The loss of their former Arthur P. Lewandowski Billy M. Kirby Algimiro Diaz Ayala position in earnings rela- George V. Porcaro, Jr. Charles H. Rader W. Charles Harris tive to manual workers. Midwest Council Names Jerry Schmit Eugene J. Dwyer Gerald J. Sufleta 2. The apparent reduced sta- Joseph J. McGee Billie D. Adams Richard W. Holober tus in society of white- Woman. Organizer to Staff Contributors to the Club who were full-time employees of Local collar workers. Unions in 1978: 3. The growing threat to The OPEIU Midwest Coun- John Kelly Norma Martin Wayne Shelton their security of employ- cil announces the appointment H. R. Markusen Michael C. Goodwin John T. Bral ment as a result of auto- to its staff of Jenny Rohrer as J. B. Moss Don Wright Lance A. Meier mation and technological an organizer. She formerly Gwen Newton Gary D. Kirkland Johnnie Ruth Storer change. served in' the same capacity Contributors who were NOT employees of the International 4. The tendency toward em- with another union, and for Union or Local Unions in 1978 were: ployment in larger and several years worked as a vol- Bernard Rapoport Eugene Brasher Gary DeFalco larger groups and the unteer community organizer in James Avery Gerald Brown Jack Dickason growth of corporate bu- Chicago. Jeff Barbernell Hank Brown Elmer Dubuque reaucracy. J. D. Bedford Enoch Burda Elmo Evans Jenny worked for five years Ken Berlin Jack Cain William C. Field 5. The increased detachment in a Chicago documentary film Jenny Rohrer Lester Bjorklund James Cleary Nathan Fogel of clerical and supervisory studio where she made an Dave Blaisdell Billy R. Clifft Charles Ford grades from the top eche- award film on health-care en- She also put in a stint as an Billy Boyle Darrell Collins Richard Ford lons of management. titled "The Chicago Maternity accounting clerk in a Chicago Mike Bracken David K. Daniels Craig Formsma The article points out that Center Story," released in 1977. Loop insurance company. (Continued on Page 4) Page Iwo WHITE COLLAR February 1979'

WHITE COLLAR OPEIU's New York Local 153 Supports Stevens Boycott Official Organ of OFFICE AND PROFESSIONAL EMPLOYEES INTERNATIONAL UNION affiliated with the AFL-CIO, CLC HOWARD COUGHLIN WILLIAM A. LOWE President Secretary-Treasurer POST 'ASTERS, ATTENTION - Change of address Form 3579 shout he addressed to: Office and Professional Employees Interna- tional nion, 815 16th Street, N.W., Washington, D.C. 20006. ,"110Nr,,.

kLABOR PRESS AFL.CIOICLC I PRINTED IN U S A Published monthly, except for combined July-August issue, by Office and Professional Employees International Union, 815 16th Street, N.W., Washington, D.C. 20Q06, Second class postage paid at Washington, D.C. Reproduction by the Labor Press of any or all material herein contained is not only permitted, but wholly desirable in the interest of workers' education. Subscription Price $1 a Year Why Unions Are Needed The radical right-wingers would like to have the general public believe that there should be no unions in this country, and many non-union workers fall for this transparent propaganda which falls Business Representatives of Local 153 were prominent apart when analyzed. The only victims are non-union workers Carrying its banner, in huge demonstra- of all textile themselves, and the only beneficiaries are unscrupulous employers. tion at Stevens Tower in New York, urging boycott products made by the company, policies. During 1978 more than 600,000 workers were illegally under- infamous throughout the world for its anti-union The march was organized by the N.Y. Council. J. P. Stevens textile products include such brand names as Utica, paid by almost $129 million, according to the U.S. Department of City Central Labor Yves St. Laurent, Suzanne Pleshette, Dinah Shore Labor, up from $120.9 million in 1977. Minimum wage under- Meadowbrook, Tastemaker, and Gulistan. payments totaled more than $40 million owed to 378,000 persons, compared with $37.2 million owed to 371,000 persons last year. Where J. P. Stevens, & Co. Gets Its Anti-Union Finance Overtime violations totaled $51.7 million owed to 264,000 workers. Control of the U.S. economy yens' board. The powerful bank or insurance firm to invest the Violations of the Equal Pay Act, which protects female workers has become so concentrated in (the nation's fourth largest) and money for them. from discrimination because of their sex, resulted in $16 million recent years that fewer than the insurance firm have loaned The results include a climate owed to 18,000 workers, compared with $15.5 million due to 500 individuals, in interlocking J. P. Stevens nearly $100 mil- -in which union members' pen- 19,000 in the previous year. boards of directors, now con- lion. sion funds have been used, and There was also a 15% increase over 1977 in the amount of trol over 80% of the nation's Banks and insurance corn- are now used, to finance many illegally-withheld wages employers eventually agreed to restore wealth and productive capacity. -spanies have long been kingpins corporate activities-including to workers. More than $78.1 million was restored to 538,000 J. P. Stevens & Co., the giant in America's corporate struc- the illegal anti-union activities workers compared to $68.2 million to 482,000 workers in 1977. anti-union textile firm, is a good ture, wielding large amounts of carried on by J. P. Stevens and According to the Department, the major reason for the differ- example of these interlocking capital from depositor savings other companies unfriendly to ence between the amount due workers and that actually paid is directorates comprising mostly and the premiums of policy- organized labor. bankers and corporate execu- holders. the employer's refusal to pay back wages in cases judged "un- In recent years the insurance tives. Until recently, Stevens Ironically, much of the suitable" for litigation by the Department. industry has made loans to chairman James Finley was a money invested by banks and The greatest recorded increase in terms of types of violation Stevens of up to $190 million, involved age discrimination. There was a 47% increase in the director of Manufacturers Han- insurance firms comes from over 80% of the textile firm's amount of damages resulting from violations of the Age Discrimi- over Trust and New York Life union pension trust funds, nation in Employment Act (ADEA), which protects workers Insurance. Rather than make investment total indebtedness, owning in aged 40 to 65 from job discrimination based on age. N.Y. Life's chairman Ralph decisions themselves, many pen- effect much of the Stevens em- Damages totaled $13 million compared to $8.9 million in 1977. Manning Brown was on Ste- sion fund trustees hire a bank pire. The number of.workers 'owed damages under ADEA soared from 1,700 to 3,900, an increase of 126%. Unscrupulous employers have no respect for unorganized work- ers. But they do respect them when they're unionized and work under a union contract. It's just another reason why every worker -white-collar or blue-collar-should belong to a union. The Ties That Bind,

Why The Silent Treatment? MANUFACTURERS - HANOVER TRUST The so-called "right-to-work" (for less) union-busters met a 11 disastrous defeat in Missouri in the November elections when they tried to impose this law on that state. They had the money but Metropolitan Life they lacked the people who buried the plan by a 200,000 majority. Yet newspapers and the media were silent about this union victory. There were no editorials or comment by the networks SEAMAN'S BANK which had played up the issue beforehand. The victory was due FOR SAVINGS (01(1111116 Nachs to dedicated union members, including our Missouri Locals, who rang doorbells to educate the public on what passage of this vicious anti-union law would mean. It would have meant that all union contracts in that state would Irving Trust L oans have to be renegotiated, with the likelihood that pay scales would be Company C3rwoo 000 reduced by 83¢ an hour-or $1,600 a year for Missouri workers. P STEVENS & CO, INC Here are some facts our union members elsewhere should keep DRY DOCK in mind if these extreme right-wingers should attempt to foist SAVINGS BANK such a law on their home states. The poverty rate in so-called "right-to-work" states runs nearly 50 percent higher than other states, BANKERS TRUST The number of people living below the poverty level in NEW YORK CORPOJRATION PROVIDENT LIFE & "right-to-work" states is about 15 percent, compared to an aver- ACCIDENT INS, CO, age of 10 percent for the rest of the nation. The difference in average yearly income per person in "right- to-work" states is more than $1,000 less than in other states. 2111D Figures compiled for 1977 show that: tiowl I i. CI-EMICAL 1. Workers in Arkansas lagged $1,479 behind the national .1. P. Nlorgaii Po average. NEWYORK CORPORATION Co. 2. Tennessee was $1,234 behind. 3. Nebraska was $299 below the national average. Loans are totals since 1965 Goldman, Sachs has made a gross profit of $500,000 by acting, 4. Iowa was $141 below. as securities broker for J.P. Stevens & Co. from 1967-1976. There is no doubt that professional union-busters now see the time as ripe to destroy unionism and collective bargaining in this The chart shows some of the interlocking directors linking J. P. Stevens, the notorious anti- country by any means-fair or foul. The undemocratic Senate union textile firm, to some of the nation's biggest banks and insurance companies. Two of the inter- filibuster that killed labor law reform last year was one instance. locks were broken last year when the directors resigned as a result of the publicity generated by the The Missouri election contest was another. Union solidarity is the Amalgamated Clothing and Textile Union which is trying to organize the company's plants. The only key to ultimate victory. OPRIU actively participated in the, campaign. (Chart from Southern Exposure, magazine.) February 1979 WHITE COLLAR Page Three

Rules for OPEIU in Child Adoption OPEIU Volunteer Drive Arbiter Finds Mother Entitled to Maternity Leave Union Arbiter Jacol.,,i1 Seidenberg Wins Unit at Credit ruled that a union employer Office Unionism Booms An all-volunteer effort by members of OPEIU Local n In- violated an OPEIU contract dianapolis, Ind., has received recognition for a unit of Bf. office when it improperly required an (Continued from Page 1) only way for progress to be and clerical employees at Lampco Federal Credit Union in Ander- employee to use her accumu- membership of some 50 percent made." son, Ind., according to Steve Henderson, Local 1 Bargaining lated annual leave, without pay or more could be obtained, a The article points out to non- Chairman, in a report to Director of Organization Art Lewandow- for time off, to be with a newly- justifiable claim to be repre- union members that while they ski. adopted child. sentative of all the working enjoy the benefits of better pay He says that the credit union services the employees at Guide The contract stated that "a force could be made by the and working conditions won by Lamp, a division of General Motors Corp. The organizing cam- female employee may be absent unions." . unions, this is "only the more paign was launched in December and the unit was recognized by up to 180 consecutive days for Because of these develop- obvious form of union activity." managcment last month. maternity reasons." It further ments, the article points out, It reminds them that union The successful campaign was conducted by a committee com- provided that "she may choose "there has been a predictable membership also brings them prising Local 1 President Carolyn Pittsford, Vice President Mike how and in what order such ab- upsurge in public and academic grievance machinery, represen- Levin, Valrea C. Manlove, and Al Goldberg, shop steward at sence will be recorded-sick debate about the growing pow- tation in event of injury or un- Labor News in Indianapolis. leave, annual leave, or leave er of trade unions. This debate just job gradings; changes on Commenting on the report, Lewandowski said: "We hope that without pay-to the extent that has tended to focus upon the starting time, advice on all con- our other Locals will be inspired by this successful example of she has available annual and question of government inter- ditions of service, plus being volunteer effort in new organizing. There are thousands of similar sick leave time." vention to influence the process kept fully informed on all de- office units throughout the nation eager for unionization but we The employer contended that and results of collective bar- velopments in negotiations with need personal contact with them that can only be funished by "invoking maternity benefits gaining. employers. - dedicated volunteers. dictates pregnancy and physical "Today, therefore, more than "Many non-members seem to "The OPEIU is on the verge of a spectacular growth era, incapacity, and that this would at any time in the past, it is im- believe that they will never need especially among women office employees, but we can realize this exclude adoption as a basis for portant to have a strong, inde- any kind of representation or growth potential only when all our Locals pitch in to carry the a mandatory grant of leave of pendent organization to speak advice. A person without a union message to the unorganized. I congratulate Local l's absence without pay." for white-collar employees in union membership card is like pioneer effort in that direction." matters of salary and working a person without insurance," The OPEIU, pointing out conditions-indeed this is the the article concludes. that the contract did not spe- cifically require pregnancy as Independent Chicago Union the basis for maternity leave, Midwest Museum Yields maintained that adoption was a Affiliates With Local 28 justifiable reason for maternity The Chicago Editorial Asso- J. Taylor. leave. Agency Shop, Salary Boosts ciation, a 32-member indepen- The new unit consists pri- formerly an marily of editorial employees The arbiter ruled that "leave Across-the-board pay in- $14,605 in the top grade. dent union and AFL-CIO affiliate, voted unani- of The Chicago Daily Racing granted for pregnancy is not creases of 51/2 % in the first The new agreement provides solely confined to the actual de- year, 340 an hour in the second mously to affiliate with Chi- Form. Carolyn Kenady con- an agency shop, requiring non- cago's Local 28, according to a ducted a month-long campaign livery period, but also makes with an additional 50 six months members of the unit to pay a report from Sec.-Treas. William on behalf of Local 28. allowances for the mother to be later, were gained by Local 12 service fee equal to union dues, with her new child during the in a new two-year contract re- and meetings between manage- period when a new child be- negotiated for its "wall-to-wall" ment and staff at three-month comes a member of the family," Milwaukee OPEIU Member bargaining unit at the Minne- intervals to discuss matters of adding: apolis Society of Fine Arts, mutual interest. "A mother with an adopted which operates a museum and Makes Convention History The unit negotiating team as- child has just as compelling art institute in that city. Laurie Onasch attended the resentative for. Bricklayers Lo- sisting Markusen included Stew- reasons for absenting herself Business Manager H. R. recent Wisconsin State AFL- cal 8, also was a delegate. It from her job with her new child, Markusen reports that it sets a ards 'Skip' Bessen, Gary Mor- CIO convention in Green Bay, was the first time a father and if not more, than a mother who minimum annual starting salary tensen and Fran Singewald. The Wis., as a delegate from Mil- daughter attended the state has gone through a pregnancy of $6,858 in the lowest classifi- contract is retroactive to July 1 waukee OPEIU Local 9. Her AFL-CIO convention as dele- and post-pregnancy period." cation in the first year, and and runs to June 30, 1980. father, Herb, a Business Rep- gates.

FARMEMEMONSMSNNWP.M.VMAMMUMWRAMUMMINSIMMOMMls:: . " MUM Shift Lag May Cause White Collar Illness ILO Study Finds Computer Growth May Pose Health Problems 15i,! The popular press has made of day workers because shift workers, who had never worked utility services, the ILO sug- The ILO report states un- us familiar with the problem of workers, as they grow older or shifts, with those who had and gests that the period of night- equivocally that: "Nightwork "jet-lag" suffered by globe- face ill health, switch to day transferred to day work-the work should be reduced as should be banned whenever its trotting executives, but many work. victims of the shift system. much as possible. practice is motivated solely by industrial workers on rotating This factor presents a prob- It was found that former shift The disruption of nightwork the financial considerations of shifts suffer in the same way lem for researchers who want workers were two-and-a-half on. family and social life are making costly equipment pay without getting sympathetic to make medical checks and times more likely to suffer from obvious. The working house- for itself more quickly." news coverage. compare the health of shift and gastric or nervous problems, wife faces particular difficulties Employers introducing night- It looks now as though "shift day workers. "Like" can only and nearly twice as likely to if her husband works nights. work offer attractive financial lag" could become a white- be compared with "like" and have some digestive disorder. Whether working or not, prob- carrots to workers, but once collar illness as the computer it's difficult to find a matching A look at computer operators lems of adapting social life to nightwork is established, the revolution progresses although group of shift and day workers. will show they are a young shiftwork falls heaviest on the value of these premiums are it now involves mostly program- However, some of the effects team, the report says. This is to wife. eroded, the report says, adding: mers and operators. But the of nightwork are already known. be expected; few companies had The solutions are limited. "We find nightwork becomes need to ensure an even work- Nightwork upsets natural body extensive computer sections a Some writers have suggested expected, but once it is estab- flow could impose shift-work in rythm. Human beings have bio- decade ago. switching the family and even lished and the entire business the future also on other office logical rythms which activate Yet where are the opportuni- an entire community to shift is planned to make full use of employees. them during the day and de- ties for these employees to es- patterns. This could mean the system, it then becomes dif- A recent International Labor activate them at night. cape into day work as they get school periods starting at 10 at ficult to change." Office report has looked at the The nightworker has to work older? If they remain in com- night and banks and shops open Contract bargainers should effects on human beings of during a period of deactivation puters their chances are limited. well past midnight; hardly a look beyond merely negotiating working nights in an effort to and sleep through a period The ILO report found that feasible idea or one acceptable good nightwork premiums and assay the health dangers that of activation. These unnatural nightwork is abnormally fatigu- to the rest of a community. consider the long-term implica- shift workers face. strains can cause neurotic and ing and liable to cause ill health. Simple cost accountancy is tions for union members. They The ILO found difficulty in digestive disorders, as well as The authors felt justified in say- often the only justification for should ask is nightwork really producing hard scientific evi- excessive fatigue. ing that nightwork should be nightwork; expensive machinery necessary and if it is, what dence as shift-workers are often The ILO report mentions a banned on medical grounds. and buildings must be kept in chances are there for shift- a "self-selected group." Gen- survey made by the Oslo in- Where exceptions had to be constant use, although no ac- workers to change to day work erally they are younger and spector of factories who com- made, such as in continuously count is taken of the social and if their health and social needs healthier than a .similar group pared the health of a group of operating industries, and public medical costs. demand it. Page Four WHITE COLLAR February 1979'

20% Payy Boost Won at Minnesota Gas from the desk Jobs Revalued, Shift-Differentials. Raised in 3-Year Pact of the A 20% across-the- board, pay 6% in the Consumer Price In- will be paid It the level desig- increase, supplemented by a dex in both the second and nated by their job titles, and cost-of-living adjustment, was third years, with no ceiling. shall automatically progress won by Twin Cities Ldcal 12 Third shift employees gain a from there to the top rate for for its office unit of roughly 300 differential of 300 an hour (was their classifications. employees at Minnesota Gas 200), and employees filling in The starting rate for the low- PRESIDENT Company, in a three-year con- on a higher level job will get est office grade starts at $3.89 tract renewal which became 20¢ an hour (was 150). an hour, rising to $4.05 after effective last June 1. The company also agreed to one year. In the top grade, the Business Manager H. R. pay $1 more per month for starting rate is $6.64 an hour, Carter's Anti-Inflation Plan Markusen reports that the new hospital-medical coverage for rising to an $8.40 maximum, or agreement calls for an 8% pay dependents in each of the sec- $336 a week. Won't Solve U.S. Economic Ills boost in the first year with an ond and third years. The meal allowance was contract contains a raised $3.50 in the first year; President Carters' anti-inflation program promulgated on Octo- additional 6% on each anniver- The new to sary 1, 1979, and revised job, evaluation schedule, $3.75 in the second, and $4 in ber 24, 1974 is not the answer to the economic problems of the date-June June 1, 1980. each job title being designated the third year. United States. While there is no doubt that the President's pro- He says that the COLA calls in one of 10 classifications. Language was tightened up gram will limit wage increase of companies doing business with for a one cent increase per hour previously paid in ac- in various other clauses cover- the government and may serve to limit prices on certain goods and Those not for each 0.2% increase over ing vacations, maternity leaves, services, it has too many loopholes to bring about the desired cordance with the new schedule overtime, and grievance and ar- effect. The exclusion of food, for example, and the inability of our pieTMEMMIA.::M.O.M.M.SVM*SAMMOSSIMK.MagiMAVIMWM::r: bitration procedures. government to control food costs will tend to weaken the entire , The unit team assisting Mar- program. "President's 100 Club" kusen in negotiating the con- The President's program does not protect consumers and wage (Continued from Page 1) tract, which runs to May 31, earners from runaway price increases for the four necessities of William Forney John Kegler Don Rogers 1981, was 'headed by Chief life-food, energy, housing and medical care. These are the areas Charles Frost David Klar Geoffrey A. Schramek Steward Ronald Jelmo and in- which have been hit the hardest by inflation. The Price Guidelines Floris Fuchs Larry Kudlacek R. H. Settle cluded committee members have little or no meaning. Gregory Giese Carl Kunze Fred Silverman For example, companies are allowed to increase prices by five Robert Adelmann, Duayne Harold Gillman Larry Lampert Delbert Sirna Roepke and Richard Harper. percentage points above their historical rate of annual price in- Sol Gordon Marvin Landau Stephen Slate creases during. 1976-1977. This allows companies which have George Gotto Richard Laser J. R. Solomon onmsgamm., m::,:mmanumm increased prices the most in the last two years to further profit Ray Griffin Sam Latimer Don Speer under the President's progam. James Grogan Kenneth Lima Michael Toal U.S. Price Index U,S. NBetwirehtuasoef 1L96a7bor Statistics Automobile companies, for instance, have already increased Stephen Hale Ralph Linderman Leonard Track Halfenger Robert McKenzie Anthony Tulino prices three times in the last three months without any admonish- Richard Richard Hancock Sherman McKenzie Robert Umberger ...... :-...... :.... ._...... 186.1 ment by the Administration despite the have Old . Revised fact that they not Donald P. Hare Thomas McMullen Donald Utley 186 9 187.1 been forced to increase wages during that period as a result of 188.4 Melva Harris Conrad Maggard Mayes A. Venable Aprilua9pni17 Ia r y 191:3 ' 191.4 collective bargaining. William Heimbaugh Justilian Martin Jerome Walter May June 195.1 . 195.3 Consumers and wage earners are also faced with an inflation A. C. Helms Peter Matina Joseph Ward (Old Index discontinued after June) Jul (Old 1 6.7 rate which many economists predict will be double digit in the first C. E. Hendrickson Cameron Meeker Gene Westlake August 197.8 half of 1979. This forecast did not take into consideration the Mary Hodgson Harry Miller Jim Whatman September 199.3 October . 200.9 14.5 increase scheduled in oil prices Will Horwitz Tom Morris Donald Wold November 202,0 percent by the Organization December 202.9 of Petroleum Exporting Countries. Kenith Howard Richard Rtinsier Leslie I. Zeman While the initial increase is five percent, the total increase will Fred Hudson Paul Ray Michael F. Kelly. Mike Hunter Steve Robertson Kathleen Kinnick Canadian accumulate to 14.5 percent by October 1979. According to Ad- John E. Kachalla Irma Richardson Delores Dee ministration.experts, this will add almost one-half of one percent Price Index Harry Karsh S. Vern Rodriguez Carolyn Combs Statistics Canada to the Consumer Price Index. Decontrol of gasoline prices will * New Base 1971 = 100 Jean Kee 1977 probably add another one-half point. The continuing turmoil in December 167.2 1978 Iran could result in further acceleration of energy prices. January 167.8 While it is true that the Administration has New Pact Upgrades Pay February 168.9 been responsible for March 170.8 in it is April 171.2 a cut income taxes, also true that the increase in Social May 173.6 Security payroll taxes results in an increase of total taxes in 1979 June 175.1 At St. Paul Trading Firm July over the year 1978. August 177.8 This past week we have been listening to forecasts which indi- An across-the-board pay in- top grade, the starting rate will *September 177.5 an a (First decrease since Sept. 1971) cate that meat prices are continuing to spurt upward primarily erease of $20 per week in the be $5.15 hour, rising to October 179.3 first year, 6% in the second, $5.97 maximum. November 180.8 because of the shortage of beef herds. Some commentators esti- December 181,3 mate that the increase in the price of beef will reach 40 cents per and 7% in the third year were Subpoenaed witness was gained by Twin Cities Local 12 added to the jury duty clause, If you move, send you old and pound in 1979. new address, including zip code and It is difficult to understand, therefore, why the President feels in a three-year contract renego- and sick leave increased to 8 mem- social security or social insurance that wage controls can inhibit inflation when practically all other tiated for its office unit at Gen- days (was 6). Three unit number to: aspects of the economy are out of control. Because of the imbal- eral Trading Company, an auto bers were also upgraded to William A. Lowe, Sec.-Treas. ance of our balance of payments, our dollar continues to decline parts distributor in St. Paul, higher classifications. 815 16th Street, N.W., Suite 606 Washington, D.C. on foreign exchange markets. This, too, contributes to inflation. Minn. The unit team assisting Mar- 20006 The President has included in his anti-inflation program an in- Business Manager H. R. Mar- kusen in the negotiations in- in final centive called "real wage insurance." This program, if enacted, kusen reports that the cluded Chief Steward Dolores would provide tax refunds representing the difference between contract year, a minimum start- Armbruster and Steward Deb- seven percent and the increase in the cost of living over and above ing rate of $4.55 an hour is set orah Graf. The new agreement seven percent, not to exceed a three percent credit. for the lowest classification, ris- runs from September 6 to Sep- The President stated that he would propose this to the Congress - ing to a $5.19 maximum. In the tember 7, 1981. in January 1979 to represent a real wage insurance program for have to pay and the money they are forced to borrow to make those employers and employees who observe the wage standard. these purchases. Consequently, labor costs have actually declined As this column is prepared, it appears that the Congress is not as a share of total production costs, while the costs of such things looking kindly on the President's proposal and there is great doubt as raw materials, power and transportation have increased. West that such a program could be enacted into law. Germany, France, Japan and Italy had unit labor costs rise at The President's program to curb wage increases while not higher percentage rates than the United States. However, only the effectively controlling food, energy, housing and medical costs United States saw wholesale prices rise faster than labor costs. flies in the face of the opinion of most ecnoomists that we are, in The AFL-CIO has taken the position that if we must have effect, experiencing an inflation which is not caused by wages. controls, such controls must be mandatory and total. Such con- There is even at this point a considerable slack in the economy trols must cover every aspect of our economy such as food, energy, as is evident from high levels of unemployment and the existence housing, medical care, interest rates and others. Without such of substantial unused plant capacity. All economists are predicting total controls, it is doubtful that the President's anti-inflation pro- that the nation's economy will grow even more slowly this year, gram which, in effect, is mandatory for workers whose companies or even shrink. Higher interest rates will cause a slowing of pro- do a substantial business with the government, can be successful, ductivity. All, these factors would seem to indicate that the Admin- We can only hope that the President, his advisors and the Con- istration's "voluntary" program to check inflation will fail. gress will eventually arrive at a more realistic policy designed to High interest rates have a tendency to force up the prices of curtail the present rate of inflation which is harmful to all seg- goods and services needed by workers. Workers, as a result, have ments of the American economy, particularly retired workers, been forced to seek higher wages to ,meet the higher prices they solely dependent on fixed incomes.