The Pittsburgh Press (September 26, 1944)
Perkins: President ‘in the middle’ on wages
He’s damned if he does and damned if he doesn’t – and time’s a wasting
By Fred W. Perkins, Pittsburgh Press staff writer
Washington –
The question which President Roosevelt did not answer in his campaign-opening speech before leaders of the Teamsters Union will be moved several steps ahead in War Labor Board proceedings this week toward a decision, which could be ready about two weeks before the November election.
The unanswered question, of tremendous political significance, is the one which most interests the labor leaders, and which only Mr. Roosevelt can answer. It is whether the President will order an upward revision of the Little Steel Formula of wartime wage control. Only the President can answer because he is the final authority. The War Labor Board has merely the power to make recommendations to him.
If the formula is liberalized, more than a million unionized wage earners will be benefited immediately through WLB cases now pending in the steel, electrical manufacturing, meat-packing and other industries. The eventual and not-distant effect would cover several millions more – and possibly the majority of the many millions now working in American industry.
Has great power
Never before has a President had this power to raise wages of millions of workers, for the reason that this system of wage control was never used previously. Never before has a President been called on to make such a vital decision in the middle of a campaign for reelection.
Mr. Roosevelt said in his speech to the labor leaders, with reference to reconversion policies:
We shall follow a wage policy which will sustain the purchasing power of labor – for that means more production and more jobs.
The present policies on wages and prices were conceived to serve the needs of the great masses of the people. They stopped inflation. They kept prices on a relatively stable level. Through the demobilization period, policies will be carried out with the same objective in mind – to serve the needs of the great masses of the people.
The pay raises, if ordered, are expected to bring a demand from manufacturing concerns for OPA authority to revise their prices, and if the changes on both the wage and price fronts are large enough, they might encourage the inflationary movement which the President warned against in connection with his hold-the-line order in April 1943.
Wage increases also would set a higher standard for the labor unions to attempt to maintain after the war. Leaders of these organizations have shown they are fully aware of an inevitable drop in weekly incomes when the country returns to peacetime working schedules – hence they now strive to boost the hourly rates of pay to compensate for the loss of premium pay for overtime.
If the President, before election, should decide against any change in the wage formula, millions who are supporting him for a fourth term would be disappointed.
If the decision should be held off until after election, Mr. Roosevelt’s foes will ascribe political motives, and they will do the same if he OK’s an upward revision before Nov. 7.