UNIVERSITY OF , BERKELEY INSTITUTE OF INDUSTRI M Vol. 5, No. 1 May 1962

INDUSTRIAL RELATIONS CONFERENCE Annual Meeting to Be Held May 25, in San Francisco Four Major Addresses to be Given The Institute's annual Industrial Rela- tions Conference will be held from 9:30 a.m. to 8 p.m., Friday, May 25, at the Fairmont Hotel in San Francisco. Four major speakers and two panels will deal with the latest developments in collective bargaining, labor law, and gov- ernment policies and actions. The conference will open with an ad- dress by Benjamin Aaron on "The First Two Years of Landrum-Griffin." Aaron Benjamin Aaron William E. Simkin Arthur M. Ross John T. Dunlop is Director of the Institute of Industrial Relations and Professor of Law at UCLA, a member of the advisory committee to the U.S. Office of Automation and Man- Institute Receives$400,000 Ford Grant power, and President of the National Academy of Arbitrators. To Study Unemployment Problems The Future of Work The Ford Foundation has awarded the force have important implications for in- A panel discussion titled, "The Future Institute $400,000 for a four-year study dustrial relations and collective bargain- of Work," will follow, moderated by of unemployment. ing as well as for national economic John F. Henning, Director of the State Persistently high unemployment over policy. Department of Industrial Relations. The the last few years and the possibility of its For these reasons, the Institute has possible future for jobs, management continuing in the future are problems planned a large-scale research program policy, and unions will be considered by which represent major challenges to the which will get under way this fall. The three participants: economy. project is based on the premise that per- Louis E. Davis, University Professor Such factors as automation and the sistent unemployment is leading to policy of Industrial Engineering; Dale Yoder, boom in youthful entrants to the labor approaches, both public and private, with Director of the Division of Industrial which there has been little previous ex- Relations, Stanford Graduate School of perience in this country. Business; Joseph T. DeSilva, Executive Industrial Relations, and arbitrator for A planning committee has agreed that Secretary of the Retail Clerks Union, North American Aviation and the United 15 interrelated studies are necessary- Local 770, Hollywood. Auto Workers. Ross will consider the some designed to provide better guide- William E. Simkin will speak after question: "Is Collective Bargaining a lines for the development of policy and lunch on "The Role of Government in Success?" others to provide the basis for clearer Collective Bargaining." Simkin is Direc- At 5 p.m. a reception will be held, formulation of employment goals and tor of the Federal Mediation and Concili- followed by dinner. John T. Dunlop will more accurate prediction of labor market ation Service and a former arbitrator for speak on "Industrial Efficiency and Job trends in the next decade or so. several national companies. Security." Dunlop is Chairman of the Twelve University economists and one Economics Department at Harvard, a sociologist will participate in the pro- Wage-Price Policies member of the Presidential Railroad gram. Participants from the Institute A panel will follow: "Do We Need a Commission, and a member of the Inde- staff will be: Joseph W. Garbarino, Mar- Wage-Price Policy? Have We Got One?" pendent Study Group on National Labor garet S. Gordon, Ida R. Hoos, Paul The participants will be: Joseph W. Gar. Policy. Jacobs, Arthur M. Ross, George Strauss, barino, University Professor of Business The Industrial Relations Conference is and Lloyd Ulman. Administration; Harry Polland, a San open to all interested persons. The fee Specialists from other institutions are Francisco labor economist; and William for the whole day, including lunch and expected to take part in certain phases H. Smith, Executive Vice President of dinner, is $12. of the project. Several dissertation schol- the Federated Employers of San Fran- Further information may be obtained arships, fellowships, and research assist- cisco. from William E. Rogin, Institute of In- antships will also be granted. After a break, the conference will re- dustrial Relations, 201 California Hall, The entire project will be coordinated convene to hear Arthur M. Ross, Insti- University of California, Berkeley; by Ross and R. A. Gordon, chairman of tute Director, University Professor of THornwall 8-4642. the Economics Del ar#11VILITE OF INDUSTRIAL RELATIONS LIBRARY MAY 1 4 iao9q UNIVERSITY OF CALIFORNIA BERKELEY CURRENT INSTITUTE PUBLICATIONS RESEARCH BOOKS Scientists in Industry: Conflict and Accommodation ACTIVITIES By William Kornhauser, with the assistance of Warren 0. Hagstrom (Berkeley and Los Angeles: University of California Press, 1962; $6) Rapid growth in the number of salaried professional workers is one of the striking Philip Selznick, Professor of Sociology features of a mature industrial society. One of the main factors responsible for this and a member of the Institute research trend, of course, is the tremendous expansion of research in industry and government, staff for many years, has been appointed which has created a rapidly growing demand for persons trained in the professions, Chairman of the new Center for the Study particularly in the physical sciences and engineering. of Law and Society on the Berkeley cam- What problems does this development pose for the large-scale organizations which pus. Supported by grants from the Rus- conduct research and for the scientists who work for them? To what extent do conflicts sell Sage Foundation and the Meyer Re- arise between the needs of the organizations for prompt and usable results, on the one search Institute of Law for an initial hand, and the aspirations of the scientists for high professional standards and some three-year period, the Center will develop degree of independence in their research, on the other? These are the central questions a program of research into the nature of with which Professor Kornhauser is concerned in this study based on interviews with the law and its social, political, and eco- both research and management personnel in nine large organizations with substantial nomic settings. Selznick is currently com- research activities. In the course of exploring these issues, he deals with such problems pleting work on his study of job rights as the goals of professional workers in industry, the organizational controls imposed on and due process in modern industry, them, the role of professional associations and unions, and the extent to which the atti- which is to be published under the aus- tudes of professional workers are molded and changed by the organizations for which pices of the Institute of Industrial Rela- they work. tions. An article based on this study ap- pears in the May 1962 issue of INDUS- REPRINTS TRIAL RELATIONS. Industrialism and World Society, by Clark Kerr, John T. Dunlop, Frederick Harbison, and Charles A. Myers (No. 162). In an article published in the Harvard Clark Kerr will serve as chairman of a Business Review, the authors present some important and original conclusions regard- series of nine sessions dealing with pro- ing the course of industrialism and its effect on future world society. ductivity at the next meeting of the In- ternational Economics Association, to be Private and Governmental Plans for the Adjustment of Interunion Dis- held in Vienna, August 30 to September putes: Work Assignment, by J. Keith Mann and Hugh P. Husband, Jr. (No. 163). 1, 1962. Kerr has also been responsible A paper concerned with early and recent attempts by labor and government to resolve for arranging the program for these ses- and prevent jurisdictional disputes. sions, which will include papers and Change and Controversy in Recent American Sociology, by Seymour Martin critical comments by participants from Lipset and Neil Smelser (No. 164). Reflecting on American developments over the Australia, Canada, England, , past several decades, the authors consider some of the problems created by the rapid Hungary, India, , Japan, Poland, growth of an intellectual discipline. the , , Turkey, and Industrialism and Industrial Man, by Clark Kerr, Frederick H. Harbison, the . Walter Galenson, Pro- John T. and A. fessor of Business Administration and Dunlop, Charles Myers (No. 165). The authors describe the features member of the Institute research staff, of industrialization which are common to all nations, analyze the different roads to will deliver one of the papers. industrialism and the types of "elite" likely to assume leadership, and, in conclusion, make predictions as to the form of industrialism that will finally emerge. Lloyd Ulman is on leave of absence for Swedish Trade Unions and the Social Democratic Party, by Donald J. Blake the present academic year to serve as a (No. 166). Taking a critical period in Swedish labor history, Blake tests, and finds senior member of the staff of the Presi- faulty, the popular view that the development of union-party relationships is a process dent's Council of Economic Advisers. in which successful unions free themselves from party domination. Rise of the Labour Movement in Jamaica, by 0. W. Phelps (No. 167). A Paul Jacobs, journalist and Director short history, covering: early legislative gains (1919-1934), the mass labor revolt of of the study of Labor in a Free Society 1938, the rise of W. A. Bustamante, the establishment of trade unions, and the role of which is nearing completion under the labor in politics and government (1939-1958). auspices of the Fund for the Republic, Why the American Labor Movement Is Not Socialist, by Walter Galenson joined the Institute staff on a half-time (No. 168). In an article reprinted from the American Review, Galenson describes past basis on May 1, 1962. He will undertake attempts to radicalize American labor and then discusses the basic economic, social, a study of the displaced worker, with a and political features of American life which have molded the present system. particular view to determining whether A Study of Perceived Need Satisfactions in Bottom and Middle Manage- today's unemployed and their families ment Jobs, by Lyman W. Porter (No. 169). Using data obtained by questionnaire, are experiencing different problems from Porter investigates two specific problems: (a) perceived deficiencies in psychological those found in studies of unemployment need fulfillment, and (b) importance attached to types of psychological needs. during the thirties. This project will be one of the 15 studies which will be con- Work and Patterns of Retirement, by Margaret S. Gordon (No. 170). A ducted under the Institute's Ford Foun- chapter from Aging and Leisure: A Research Perspective into the Meaninglul Use ol dation grant for research on Unemploy- Time, in which the author analyzes recent employment and retirement data and com- ment and the American Economy. (See ments on possible future trends. page 1 for information on the grant.) (Single reprints free; additional copies, 20 cents each.) 2 INDUSTRIAL RELATIONS TODAY: THE PROBLEM OF WAGE POLICY Joseph W. Garbarino On a suitable level of generality, an may be insoluble in the sense that any attentive student in an elementary eco- available cure may be worse than the (A study of Wage Policy and Long- nomics course could provide the answer. disease. The late Sumner Slichter, a man Term Contracts by Professor Carbarino With stable prices and within a given with a remarkable instinct for pragmatic will be published by the Brookings Insti- distribution of income, increases in pro- solutions to economic dilemmas, explic- tution this spring.) ductivity permit real incomes, including itly adopted this position several years In recent years, as the American econ- wages, to rise and, at the same time, set ago. In brief, Professor Slichter accepted omy has appeared to be losing some of its limits to the rate at which the rise can a slow rate of secular inflation as a prob- postwar buoyancy, there has been a take place for the economy as a whole. ability, felt that the wage results of our growth of interest in questions of eco- In this context, if real wages are to be collective bargaining system played a nomic policy, particularly the question of increased by raising money wages, part in the inflationary process, argued an over-all wage policy. The recent re- changes in average earnings ought to be that the magnitude of the problem did port of the Council of Economic Advisers in proportion to changes in average pro- not justify the measures needed to elimi- contains a section on "guideposts" for ductivity. nate it, and instead proposed policies to wage behavior that represents probably There has been no shortage of state- mitigate the effects creeping inflation the most detailed discussion of this sub- ments emanating from high places which might have on particular groups. ject to appear in a comparable document. state this proposition. Unfortunately, There are several reasons for the in- such an analysis provides contract nego- Effect of the environment crease in attention to wage policy. The tiators in specific companies and unions Another reaction to the obvious intrac- very notion of a "policy" implies that with no more than a very rough "guide- tability of the question posed in the pre- wage behavior is the result of a decision- post." Unless all wages are to be raised ceding paragraph is to argue that insofar making process in which there is a sub- equally in proportion to changes in aver- as wage behavior has been troublesome stantial measure of choice among alterna- age productivity, some method of appor- in the past, the problem has been due to tives. For almost a decade after the end of tioning below and above average changes, conditions of excess demand in the over- World War II the degree to which wage so that they offset one another, must be all economy or in specific sectors. The behavior resulted from the operation of added to the original prescription. The new, harsher economic environment is impersonal economic forces rather than current report of the Council takes some expected to solve this by reducing the deliberate policy decisions was a matter gingerly steps in this direction by sug- going rate of wage increase. However, at of active controversy. This controversy gesting that above and below average least four years of the new environment has not been completely resolved (nor is wage increases be related to the tight- have passed and there is increasing con- it likely to be) but it appears that most ness or slackness of the relevant labor cern that the costs of this approach in un- analysts would now agree that over markets or to the existence of rates that employment and reduced growth may be large sectors of the economy for substan- are out of line compared to similar jobs. too high, even if the evidence as to its tial periods of time what happens to The problem is complicated by a fre- effectiveness were stronger than it is. wages is a matter of "policy" decisions quent confusion between the question of Traditionally, the way we have tried to as well as market forces. how wages in an individual company or influence the results of price and wage industry should behave and how they setting in the United States has been to Automatic wage adjustments could behave without obvious and imme- modify the structure of bargaining (e.g., The most important single develop- diate inflationary consequences. To illus- by encouraging union organization) or ment forcing the problem of wage policy trate this point with an extreme example, to modify the process of bargaining (e.g., into public consciousness has been the a doubling of the productivity of work- by banning secondary boycotts). Some spread of multi-year collective bargain- ers in the buttonhook industry would measures of this type have been tried in ing contracts with built-in automatic mean that their wage rates could be recent years and many others have been wage adjustments. Beginning with the doubled without increasing unit labor proposed. The more drastic proposals GM-UAW contract of 1948, this form of costs, but would not imply that they have not been compatible with political contract came to dominate large-scale should be doubled. Most discussion of realities, while the milder attempts have collective bargaining situations by the wage-productivity relations in particular not been effective. Strong organizations latter half of the fifties. There are two negotiations centers around the issue of have been relatively unaffected, while main versions of this contract, one com- how large a wage increase can be given the weakly organized and the unorgan- bines an escalator clause tying wage without raising prices. The novelty in the ized have been handicapped. changes to price changes with additional Council's current position is the tentative Faced by this gloomy array of possi- annual wage increases and the other calls suggestion of a standard of desirable be- bilities, the Eisenhower administration in for annual increases alone. Both types of havior in the broader context of a rudi- its later years adopted what has been automatic wage adjustment force the bar- mentary national wage policy. inelegantly termed the "open mouth" gainers and the community to face the policy or more politely, "government by issue of long-term wage behavior ex- Wage policy implementation exhortation." The Kennedy administra- plicitly. By adjusting wages to price Even if the specifics of an economically tion has intensified efforts to talk down changes automatically, the combination workable wage policy could be agreed the rate of price and wage increase. of escalator clause and annual increase upon, how could they be implemented It is customary for economic sophisti- emphasizes the basic question-what short of direct and massive intervention cates to dismiss this approach as inef- should be the rate of increase in real in free collective bargaining? Considera- fective, but Mr. McDonald of the Steel- wages, i.e., money wages corrected for tion of this question ought to start with workers and the managements of the price changes? the possibility that the problem it poses (Continued on page 4) 3 Journal Circulation ITEMS OF INTEREST . . . Continues to Increase nesota; and Joseph G. Phelan, Assistant NILE Residential School Subscriptions to INDUSTRIAL RELA- The Institute will present again this Professor of Industrial Psychology at Los Angeles State College. TIONS, the Institute's new journal, have summer a 10-week liberal arts course for continued to increase since the first of the selected union personnel. Machinists' Institute year. A breakdown of the list shows that Organized in cooperation with the about half the subscribers are from labor National Institute of Labor Education, A summer institute for the Interna- or management groups. The other half the residential school will be held June tional Association of Machinists will be are largely academicians, libraries, and 18 to August 24 on the University campus. held July 15-20 on the University campus. other institutions here and abroad. This year courses will cover the major About fifty participants will attend lec- The third issue of INDUSTRIAL RELA- economic problems of the sixties, Ameri- tures, workshops, and forums on the fol- TIONS was published this month. can government and politics, man and lowing subjects: legislative issues, collec- A major feature is a symposium on society, and the American labor move- tive bargaining trends, psychology and "Industrial Relations and World Trade." ment. leadership, international relations, pol- Contributions are by Raymond F. Mike- Approximately twenty-five full- and itics and civil rights, and training and sell and Paul L. Kleinsorge of the Univer- part-time union officers will attend. retraining problems. sity of Oregon, Emerson P. Schmidt of the Chamber of Commerce of the United Personnel Seminar Communications Seminar States, and Solomon Barkin of the Tex- Rolf Waaler of the Administrative Re- A two-day seminar on advanced aspects tile Workers Union of America. search Foundation in Bergen, , of communications was recently held by Other articles are: "Union Racial will address the May 22 meeting of the the Institute for management personnel Problems in the South" by Ray Marshall, Personnel Administration Seminar on of Bay Area firms. "Seniority, Bureaucracy, and the 'Living "Management Education, a Norwegian The program was divided into two Law'" by Philip Selznick and Howard Experiment." parts. On the first day the organizational Vollmer, and "The Shifting Power Bal- The dinner meeting will take place at aspects of communications were studied. ance in the Plant" by George Strauss. the Leopard Cafe in San Francisco. On the second day the seminar used Single copies are $1.50; an annual sub- The Personnel Administration Semi- closed circuit television and video tape scription is $4.50; a three-year subscrip- nar is sponsored by the Institute for per- recording to analyze communications tion is $10. sonnel directors and managers of Bay techniques. Area companies. Wage Policy Problems Teachers' Summer Institute Steelworkers' Conference (Continued from page 3) The Sixth Annual Summer Locals of the of Institute larger steel companies might not agree America and the Institute will co-sponsor for Teachers will be held July 23-27. completely. Unfortunately, this technique Given in with the Ameri- a summer school for steelworkers June cooperation is more effective on large targets and in- 24-29. can Federation of Teachers, the program effective in the multitude of local and includes a two-unit course on Approximately one hundred people are collective regional negotiations in industries such as expected to attend the residential course. bargaining in white-collar occupations. trucking, building construction, etc. At any rate, the current approach de- Hospital Administration Workshop Labor and Economic Policy serves to be thoroughly tested. It should A special course in hospital administra- The Labor and Economic Policy Semi- be viewed as an attempt to influence the tion was held April 6 and 7 for University nar will meet May 23 at the Mark Hop- expectations of wage earners as to the alumni. kins Hotel in San Francisco. rate of increase in real wages appropriate The two-day workshop, which was at- The group meets monthly with mem- to economic realities. There is nothing tended by 25 hospital administrators bers of the University and the Institute immutable about a particular rate of from throughout California, emphasized to analyze the political implications of wage increase or even about the ritual of new managerial techniques. economic and technological change, with the annual wage increase itself. A particu- Speakers were: Bernard M. Bass, special reference to industrial relations lar pattern of wage increase has become Visiting Professor of Psychology from topics. accepted as customary, but if it is deemed Louisiana State University; Marvin D. Subject of the May meeting will be: inappropriate, it need not be beyond our Dunnette, Visiting Associate Professor of "Economic and Labor Policies of the capacity for social invention and social Psychology from the University of Min- Kennedy Administration." responsibility to devise ways to modify it.

INSTITUTE OF INDUSTRIAL RELATIONS Nonprofit Organization U. S. Postage PAID Published by the Berkeley, Calif. Institute of Industrial Relations Permit No. 1 University of California Berkeley 4, California Director: Arthur M. Ross Editor: B. V. H. Schneider

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