White collar or noose? The occupation of millions

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WHITE COLLAR OR NOOSE?
THE OCCUPATION OF MILLIONS

e Collar or NooSe

Occupation o

BY

LEO F. BOLLENS

NORTH RIVER PRESS
NEW YORK

COPYRIGHT, 1947,

BY LEO F. BOLLENS

All rights reserved, no part of this book may be reproduced in
any form without permission in writing from the author.

PRINTED IN THE UNITED STATES OF AMERICA

Dedicated to the unsung heroines of this labor
movement, the wives of our leaders, without
whose patience, self-sacrifice and long-suffering
this movement would never have been a success.

PREFACE

DIRECTIVE WHITE-COLLAR THINKING ON DEMOCRACY
AND AMERICA

A Democracy is a state of Society characterized by nominal
equality of rights and privileges be they political or social.

The broad concept of the above definition must never be dis-
torted to suit the specific convenience of any individual or group,
for to do so would be to devalue the efforts of man in his eternal
struggles and eventually also destroy those who would seek to
profit by manipulation.

Primitive man found many advantages in association with
others of the same kind. The first was protection motivated by
the law of self-preservation. However, this primitive man gave
up some individual rights he formerly had— namely, to kill others
indiscriminately— for the greater advantage of not becoming the
ready victim of such promiscuity.

From the foregoing, it is apparent that life is basic and funda-
mental and that man has learned through a social order to co-
operate to preserve it— to give up the primitive rights to kill and
to steal and thus form families, clans, tribes and nations.

Consequently, it is hardly conceivable that it should be the
inalienable right of any individual or group of individuals to
exploit or jeopardize the welfare of society as a whole. To pre-
suppose such an inalienable right might raise the question as to
their destiny were they to find themselves suddenly unprotected
by the society whose welfare they chose to ignore and thus be-
came themselves objects of exploitation.

At this point, it is well to repeat what has already been stated
once before.

The world was moving through a field of strong forces and
unrest which found expression in a European War, and it is the
thought of every real American thinker that a true picture and

vii

viii PREFACE

solution can come only as a result of assembling the "jig-saw"
pattern of analytical thought; to conduct an uncensored un-
prejudiced clinic on our social and economic problems free from
selfish monetary gains and motives.

We must not permit wishful thinking to be-fog our complete
understanding of the fundamentals causing national and inter-
national discomfort. To that great mass of us who sacrificed to
defend our democratic ideals, it will be energy well spent to
witness the complete regeneration of democracy in our own na-
tion as an example to the world at large and, in so doing, help
to remove the causes of war.

Before passing on to the elements comprising a social order, let
us pause and reflect that none of the benefits of a civilization
or democracy have been obtained easily and painlessly. When
violations of the common good have been apparent or real, it
has been necessary to pass laws of conduct or call into play the
more powerful element of public opinion. Unfortunately, the
necessity for such action implies the existence of groups who are
more concerned with themselves than their social responsibilities
and that, by and large, we demand of government and its
agencies a higher standard of conduct than exists in our economic
life by virtue of its responsible position in the control of our
common well-being.

In a true democracy, the high standards and ethics which so
profoundly control the well being of the group as a whole, must
rightfully be required of private institutions as well as individuals.
When such a time arrives, and we have true democracy in our
economic life, there will be little need for passing laws for in-
ternal self -protection. Also, our definition of a democracy may be
readily enlarged as:

A state of society characterized by nominal equality of rights
and privileges, be they political, social or economic.

This adds the economic element which has contributed most
to unstable conditions and which, when properly evaluated, will
contribute most to national and international well being and
peace.

Democracy and only democracy is the "American Way." And

PREFACE ix

only by hewing close to the line with rigid and uncompromising
analysis can we hope to preserve America and its democracy.

We cannot afford to permit political and wishful catch phrases
to obscure our destiny and lead us into State Socialism or Fascism
(a corporate state).

We can and must be strong to be free. Likewise to accomplish
this end we must be productive. However, productivity must be
made to serve the ends of democracy and be subservient to it,
otherwise we may find ourselves at the mercy of a despotism
more vicious than concentrated power— the victims of private
dictatorships.

Through the centuries of man's progress he has been chiefly
concerned with the development of a political and social unit,
and has produced the present day democracy. His next job must
be the development of a democratic economy, the dusting off of
old conceptions, and arranging them in their proper relationship
to the other elements of democracy.

However, when we look below the surface and over the
horizon, we are aware that all is not well with the world at
large. We know that much of the seeming prosperity is false,
and that the measure of prosperity that we now enjoy is reserved
only for our country, and our neighbors in South America.

To those of us who consider life seriously, it is clear that all the
courage, effort and cooperation of our people will be required in
the coming year to keep us on an even keel. The present sense of
peace and security, brought about by increased employment and
fuller pay envelopes, will do much to forestall a full realization
of the seriousness of our position in relation to ah* other nations
of the world. If one ever needed the desire and ability to think
and think straight, it is now. On every side we find individuals
or groups wishing to sway our support to one effort or another.
We find equally respected and able personages seemingly lend-
ing their support to each and every cause. This sort of situation
is not only confusing but dangerous to the welfare of our nation.

In the past few years we Americans have become lazy thinkers.
It has been easier to listen to a popular authority, on the public
platform or radio, and then take his or her opinions as gospel

x PREFACE

truth rather than to take the time and make the effort to analyze
the statements and arrive at a few opinions of our own. If, after
honest effort, in thinking for ourselves, we arrive at a wrong
conclusion, we will be far better off than if we had not tried
at all. Our ability to think straight is usually in proportion to our
desire to think at all. Therefore, when we let others do our
thinking for us we are letting our own machinery deteriorate
with disuse, and usually the other fellow has a "bill of goods to
sell," and, therefore, his conclusions can be just as far from logical
as ours would have been had we done the thinking ourselves.

Lack of the desire and ability to think straight, at any time, is
dangerous and a handicap to our individual future; however,
in times like the present, this lack becomes infinitely more im-
portant, not only to the individual, but to the Nation. The greater
the number of people who rely on others to do their thinking,
the more apt we are to be led astray because the "crack-pot"
inevitably paints a rosy picture of the future for those who sub-
scribe to his theory. The wise and honest man knows that no
right way or secure future can be attained without hard work
and sacrifice. That is why many of us listen to the "crack-pot" in-
stead of to the wise men. That is why Dictators have been able
to gain power; it seems easier to many to let someone else worry
about the affairs of state than to make the effort to govern oneself
intelligently.

If our future in America is to contain all the promise and
hope for the individual that has been a part of the past, we must,
each one, make use of the privilege that is yet ours, to think for
ourselves. We must begin at once to weigh all questions, no mat-
ter how small, in the light of experience and reason, then govern
our activity accordingly. By thinking through small problems
carefully, we will be better equipped to solve the big ones in-
telligently and quickly. The few mistakes we make in arriving
at our own conclusions will serve to guide us away from greater
pitfalls later, so long as our thinking process is honest, thorough
and sincere.

Should we Americans make use of the intelligence that is ours,
augmented by use of our wonderful educational system, Com-

PREFACE xi

munism, Fascism and Nazism will no longer be a menace to our
land. Neither will foreign propaganda of any land influence our
future course. We will live more happily, peacefully and with a
greater degree of real prosperity so soon as we revert to the habit
of using our brain, and the education which has provided it
with tools, to direct our acts and efforts. The most effectual way
to undermine a nation is to cause confusion among its people and
the greatest safeguard against this form of attack is intelligent
thinking among the individuals which make up the masses.

Let each of us firmly resolve to make his own decisions and
weigh all questions to find their true value for a proper solution.

THINKING AND ACTING AS A DEMOCRACY

In meeting the challenge presented by white-collar workers, we
must understand the problems confronting us, and then devise
means for overcoming them. America has never failed in an en-
deavor where the objects and aims were clearly stated and ac-
cepted as being in keeping with our highest ideals. Therefore,
it is necessary that each of us receive a clearer picture of the
problems of the future, as well as the problems of the present.

The first great lesson that we must relearn, as Americans, is the
meaning of the term "democracy." A democracy is a form of
government and association of human beings where everyone is
fundamentally equal. Where every individual has the God given
"right to life, liberty, and the pursuit of happiness"; where there
are no classes, social, political, economic or religious; where the
privileges and desires of the individual must be tempered by
their effect on the welfare of the people of America.

We have come dangerously close to forgetting these vital prin-
ciples of democratic life by thinking of ourselves as labor, man-
agement, agricultural, consumer and other groups or classes.
Such thinking tends toward class distinction, discrimination and
disunity which can only divide our people and restrict effective
cooperation in working to maintain high ideals and of attaining
a higher standard of living for all.

The aim of every true American is to live in peace and happi-
ness, not only with his neighbors, but with the world at large.

xii PREFACE

If this aim is to be attained, we must realize that our individual
happiness and prosperity depends upon others sharing the same
privileges. It is fundamental that one cannot be truly happy
while his family is impoverished, hungry or quarrelsome. Like-
wise, a full measure of enjoyment of life cannot be attained in
a community or nation where a large portion of the people are
lacking the advantages necessary for healthful and carefree life.
By the same token, America cannot prosper and be truly great
unless it is willing to exert every reasonable effort to see that all
other peoples of the world enjoy as many of the rights and
privileges as we claim for ourselves.

It is our duty, individually and collectively, to weigh all of
our desires in the light of the public good. Surely the industrial
laborer cannot prosper at the expense of the farmer; industry
cannot attain maximum production unless the worker shares
equitably in the returns. Likewise the worker, whether hourly
paid or salary, cannot expect to prosper indefinitely by making
unreasonable demands upon management. Therefore, every re-
quest or demand for increased privileges, whatever they may be,
by any group, should be carefully considered in the light of their
effect on the prosperity and well being of the people of America
and the world. Frequently, what seems td be a right or privilege,
due an individual, ceases to have merit when measured by the
effect on others.

If we are to meet the challenge, we must think democratically,
of others as well as of ourselves. We must temper our desires by
a full and thoughtful consideration of the common good. We
must think constructively and act wisely.

THE PRIVILEGE OF CRITICIZING

Much of our conversation today is destructive criticism of various
government agencies, criticism of past military strategy, criticism
of industrial management, criticism of labor and of many other
groups as well as individuals. The privilege to criticize is in-
herent in a democracy and must never be curbed or eliminated.
However, the ability to criticize constructively is rare and present

PREFACE xiii

criticism, for the most part, can be classed as "grousing," which
destroys morale and causes disunity at a time when both morale
and unity are sorely needed.

In order that one may criticize constructively he must first
possess a reasonable familiarity with the subject. In addition to
being critical, to be fair, one should be in a position to advance
sound methods for improving the condition or policy under dis-
cussion. Wisdom and knowledge, gained by experience and
study, are the prerequisites of sound qualities in sufficient meas-
ure so that it does not warrant our spending too much of our
valuable time in criticism.

Should we analyze ourselves and wisely become convinced
that we are not sufficiently informed to criticize constructively,
we have only two sensible courses of action left. One is to firmly
resolve to become well informed on the subject in which we have
the greatest interest and then to think before we speak. The
other and only sensible alternative is to hold our tongues and
listen to others who possibly may be better informed than we.
If our criticism can really be classed as complaining, we are
exhibiting a sad lack of ability to stand hardship. We Americans
have always boasted of being strong, rugged and resourceful; we
have been— we can be— but, are we now? Isn't some of our com-
plaining due to narrow mindedness, refusal to see the good that
others are doing and hunting only for their faults and failures?
Aren't we overlooking the sacrifices of others in a selfish desire
to retain all that we can for ourselves? Our minds are staying
too close to home and failing to see life and the world in a broad
perspective. We need to read more, and think more, and to
look at both sides of a question, not just the one that pleases
us most.

Many of the problems of today are too great and too broad
to be solved by little minds and for this reason, each of us, for
his own good, must spend more time thinking and less time
talking. ATI unjust criticism by an uninformed critic may cause
untold damage. Let us confine our criticism to those subjects on
which we are well informed, and our energies to winning the
peace.

CONTENTS

PREFACE

Directive White-Collar Thinking on Democracy

and America vii

Thinking and Acting as a Democracy xi

The Privilege of Criticizing xii

Chapter I
THE FORGOTTEN AMERICAN— THE WHITE-COLLAR WORKER

The Plight of the Forgotten American 1

The White-Collar Worker and the Perils of Inflation 10

Chapter II

WHITE-COLLAR WORKERS MUST ORGANIZE FOR
SELF-PROTECTION

White-Collar Organizations are Necessary 13

The Wagner Act in a Nutshell 14

Typical Labor Board Cases of Discrimination 16

The Desirability of Employee Organizations 17

Sound Policies are of Real Value 18

What the Company Owes Its Employees 19

What the Employees Owe the Company 22
The Protection Offered by a Good Union Is Like a Sound

Insurance Program 25

In the Driver's Seat 26

xv

xvi CONTENTS

Chapter HI
ADVANTAGES OF A WHITE-COLLAR UNION

Collective Bargaining Versus Industrial Discord 28

What Is Union Security? 30

What Is Job Security? 32

All Employees Should Belong to Their Union 34

A Union Is What Its Members Make It 35

A White-Collar Union and a Few of Its Responsibilities 36

The Value of Union Membership 37

Choosing Proper Union Representatives 40

The Employee's Responsibility to His Union 41

Employees Must Tell the Union What Is Wanted 42

Discrimination and Fair Play 43

Free Speech Versus Unlawful Pressure 44

Confidence Is Personal 45
Securing Wage Increases Is not the Sole Function of Unions 47

Why a Seniority Policy Is Necessary 48

Seniority Rights 50

Don't Nurse a Grievance 51

Chapter IV
How TO ORGANIZE WHITE-COLLAR WORKERS

How to Organize 55

A Comprehensive Procedure to Follow 56

Pitfalls to be Avoided in Organizational Procedure 65

Chapter V
HISTORY OF A SUCCESSFUL SALARIED UNION

Origin and History 68

Purposes, Objects and Benefits 73

Organizational Structure 76

AWSE Constitution & By-Laws with Amendments 78

CONTENTS xvii

Chapter VI

ORIGIN, HISTORY, AND ACCOMPLISHMENTS OF THE

FEDERATION OF WESTINGHOUSE INDEPENDENT

SALARIED UNIONS

Origin, History and Accomplishments 89

Policy of the Federation 92

Early Federation Meetings and Results of N.L.R.B. Elections 93

Highlights in the History of the Westinghouse Federation 98
Brief Summary of Outstanding Accomplishments of the

Federation 126

Magnitude of the Federation 131

Chapter VII
NECESSITY OF A SIGNED CONTRACT

Why a Contract Is Necessary 134

Present Agreement between Westinghouse Elec. Corp.

and FWISU 135

Chapter VIII

EFFECTIVE WHITE-COLLAR REPRESENTATION
IN WASHINGTON

Dignified Silence— or the Lack of a National Spokesman? 181

Representation in Washington 181

An Open Letter to Senator Clyde M. Reed 190
Federation Continues to Request Congressional Action on

'White-Collar" Problems 193
Presidential Order No. 31 196
Testimony on Behalf of the Country's 20,000,000 Salaried
Employees Before the Senate Sub-Committee on War-
time Health and Education 198
The White-Collar Crisis 203

Chapter IX

FORMATION OF THE NATIONAL FEDERATION OF

SALARIED UNIONS 212

WHITE COLLAR OR NOOSE?
THE OCCUPATION OF MILLIONS

Chapter I

THE FORGOTTEN AMERICAN—THE WHITE-COLLAR
WORKER

THE PLIGHT OF THE FORGOTTEN AMERICAN

In the early days of the depression steps were taken to assure
food and clothing for the unemployed; this was followed by other
steps all of which, in themselves, were quite necessary and
laudable. Likewise, there have been added to the statute books
numerous social laws, all fundamentally beneficial and necessary.
However, the psychology of security and government aid has
grown upon all of us until we have lost sight of the fact that
we are becoming weak.

All of these things, fundamentally good and in most cases
necessary, have slowly drugged us into insensibility to the things
which have made America great and the only things that will
keep her so. These are: work, perseverance and self sacrifice. It
is only by these three things that we are able to remain strong
enough to govern ourselves and remain free. This applies to rich
as well as to poor, to industrial management as well as to labor,
and in short, to every American citizen worthy of the name. For
the past few years we have, each one, been prone to look to the
government to solve our problems and to provide security; it is
with a feeling of shame that we should immediately throw off
this subtle drug, which we have all accepted without compulsion,
and firmly resolve to fight unflinchingly for the kind of America
we all want.

Social security is necessary and beneficial so long as each one
recognizes that it is established to relieve our minds ,of worry
about our economic futures, and thereby, permit us to use that
released energy to create better things.

1

2 WHITE COLLAR OR NOOSE?

A fair minimum wage level and a limit to working hours is
beneficial to humanity so long as the added wealth and time is
used to create character and better understanding among men.

Guarantees of labor's rights to bargain collectively are neces-
sary because of lack of a full realization by some management
of the need for observing the simple rules of humanity in deal-
ing with employees. These guarantees are beneficial only when
used for the purpose for which they were intended, that is, to
create industrial harmony, greater productivity and higher living
standards.

Equalization of the lot of the farmer with that of the manu-
facturer is beneficial so long as it does not become regimentation
on the part of the government or a drug to the ambitions of the
farmer.

It was not so long ago that employees in shops and mills had
to work 10 or 12 hours a day to earn a wage, which generally
was very low even for those times. Salaried employees worked
from 44 hours a week up and as many evenings a week as their
boss demanded, without receiving any compensation for the
overtime. In those days, a good office boy was paid $5 a week
and sometimes less, and clerks, bookkeepers, etc., received cor-
respondingly low salaries. It is true the cost of living was much
lower then than it is now but the differential is not as great as a
comparison of the salaries paid then and now indicates. In those
days the average family was satisfied to do without many of the
necessities and luxuries that the families of today demand.

Even more recently, the worker had very little to say about his
own welfare. The white-collar worker, particularly, always had
the short end of the stick. If he hollered about an injustice he was
usually branded as a troublemaker and fired from his job. Very
often his advancement and even his retention on his job de-
pended on the whim of some "straw boss." There is no doubt
that this still goes on in some companies where the white-collar
workers are unorganized. There is much to be done to improve
the lot of the average white-collar worker, and the proper type
of unionization will do it in good time.

How times have changed! Our standard of living has been

THE FORGOTTEN AMERICAN 3

raised and it is our duty to see that this standard is maintained
and if possible, improved. This much we owe to ourselves and
our children. No longer is the "little man" satisfied to do with-
out luxuries and necessities. He helps produce them and he is
determined to get his just share of the profits derived from the
goods he makes in order to be able to purchase and enjoy the
fruits of his labor. This determination, however, will avail little
unless salaried employees band together in organizations with
other fellow white-collar workers. Only in this way can we
expect to obtain those things which in the eyes of God and all
right thinking men are rightfully and justly ours.

Before the advent of industrial unionism, which was destined
to sweep the nation and completely revolutionize the union
movement, the salaried employees or "white-collar" workers were
essentially "holding their own" with salaries comparable to the
wages received by hourly paid workers in the unskilled, semi-
skilled and skilled brackets.

In addition, in a great many large industries and in a con-
siderable number of small businesses the salaried employees
were enjoying two weeks' vacation with pay after one year's
service, payment for absent time due to sickness or personal
business, shorter working hours and better working conditions.

However, during the years 1935 and 1937, when the country
was slowly beginning to recover from the severest depression it
had ever faced, a movement was initiated by the large industrial
unions to raise the national hourly rate of wage earners 22&
cents per hour. All the hourly paid workers of the nation who
were represented by labor unions ( and there were millions ) from
common shop labor through the skilled labor bracket received
at this time a substantial increase, while most of the country's
white-collar workers, who had received severe cuts in pay during
the "lean" years, were merely having restored to them amounts
that had been taken from their monthly pay. This action created
an extreme differential and inequality between the hourly paid
and salaried employees and this differential was later frozen into
the salary structure by the application of the 15% Little Steel
Formula to both groups.

4 WHITE COLLAR OR NOOSE?

In December of 1941, when the sneak attack on Pearl Harbor
swept the United States into war with Japan and consequently
her axis partners, requirements for materials of war brought
about a period of prosperity and with it an increased cost in
living.

That year and in the succeeding ones, the wages of these same
organized hourly paid employees spiralled skyward until the
national basic hourly rate for common shop labor had increased
from the 1935-37 level of 62& cents to 72% cents and later 78 to 80
cents, and with the new wage schedules, now range from 96 cents
to $1.05 per hour!

A few fortunate salaried or white-collar employees may have
been granted some percentage increase during this time, but it
in no way compared to the cents per hour increase granted
hourly workers and came nowhere near eliminating tie 22&
cents per hour inequality which took place between the years
1935 and 1937.

Where did the white-collar workers fit in the scheme? They
had received no increase in 1937 and are receiving very little, if
any, increase now— yet they are forced to buy in the commodity
market inflated by the higher paid production workers. The
weekly salary of the average salaried employee in 1944 was $18
to $30 per week, while the average hourly paid worker was
earning from $40 to $65 per week.

The white collar was slowly but surely being removed. White-
collar employees throughout the nation were beginning to realize
that while they were keeping their white collars immaculate,
their overalled brothers were "reaping in the dough." The so-
called "privileges"— vacations, etc., that were once theirs as
salaried workers were dwindling as organized labor was secur-
ing more and more of the same advantages for their hourly paid
membership.

The white-collar employee's attitude toward his position
changed as his pocketbook shrank. Whereas previously, parents
who worked in shops pursuing various trades were eager to
have their sons and daughters secure as high an education as
possible in order to obtain a "better" position in the white-collar

THE FORGOTTEN AMERICAN 5

or salaried field, since it was once an accepted fact that the
opportunities for larger income and higher advancement were
greater in this field than among the various crafts, the situation
has now become completely reversed. Parents who are high paid
wage earners, as well as well-educated "white-collar" parents are
advising their children to become proficient in a trade, where
they can actually earn a livelihood. The once stifling feeling of
superiority of the office employee over the shop worker has
rapidly disappeared.

The old snobbish antipathy toward organizing was also rapidly
disappearing, together with the myth that union affiliation would
mar a salaried employee's chances for advancement in industry.

As the indiscriminate granting of increases to organized hourly
paid workers forewarned of inflation, the government became
alarmed, and in an attempt to prevent an inevitable post-war
economic collapse, insofar as it would be influenced by too high
wages, the War Labor Board drew up a wage payment plan
known as the famous Little Steel Formula. The Formula recog-
nized the increase in the cost of living from January 1, 1941, to
May 15, 1942, and in the way of compensation permitted wage
increases up to 15% of the employee's basic rate. This made it
possible for unions to negotiate increases in rate structures if
they had not already obtained increases up to 15%. Under this
plan, the national basic hourly rate for shop labor was upped to
the 78 to 80 cents per hour mentioned earlier.

As previously stated, in the years 1935 to 1937, the hourly paid
workers of the nation secured an increase in their basic hourly
rate from 40 cents to 62M cents per hour while the nation's
white-collar workers made little or no progress. The adoption
of the Stabilization Act of 1942 applying to both hourly paid
and salary workers on the same percentage basis consequently
froze this inequity in the salary wage structure because white-
collar workers had not received a corresponding increase in
monthly income.

During wage negotiations under the Little Steel Formula,
some salaried employees were granted general increases ap-
parently comparable to the general increases granted hourly paid

6 WHITE COLLAR OR NOOSE?

employees. However, these increases were not truly comparable
since practically all salaried employees are working on a fixed
monthly wage, while some hourly paid employees increase their
hourly rate by a bonus of from 10 to 20%, and a great many
others increase their hourly rate by a bonus of 40 to 50% by
means of an incentive system. Hence, the hourly paid employee
always receives more in a general increase than does the salaried
employee. For example, if an increase of $2 per day be granted,
the non-production or hourly paid day worker on a 10% bonus
plan would receive $2.20, and the production worker or hourly
paid incentive worker on a 40% incentive system would receive
$2.80, but the salaried employees would receive only $2.00
per day.

By applying the Little Steel Formula or the 15% factor, the
hourly paid employees under the plans referred to above are
not limited to 15% but are only limited to the extent of the 15%
times the bonus percentage of the groups. That is for example, if
we assume that a group is making 150%, which is not uncom-
mon, the hourly paid employees will receive not 15% as was
intended by the Little Steel Formula, but 150% of 15% or 22&%.
It was quite obvious that the intent of the Little Steel Formula
was very easily circumvented by merely liberalizing the time
values for the hourly paid incentive workers.

What is most important to all salaried employees or white-
collar workers is not certain limitations that have been supposedly
established by some formula but what the average employee
takes home in his pay envelope. What has already been said
should make it quite apparent to the white-collar employees that
the Little Steel Formula as interpreted had established a most
unfair differential when we observe how flexible this 15% factor
became when applied to the hourly paid employees enjoying
incentive or bonus plans.

Time and one-half for overtime means real money to the shop
hourly paid employees but the white-collar worker sees very
little of this money. Furthermore, this time and one-half factor is
a multiplier applying to the shop man's bonus as well as his base
rate.

THE FORGOTTEN AMERICAN 7

For example: A salaried employee receiving $1 per hour would
receive $1.50 per hour Saturday work at time and one-half,
while a shop hourly paid employee working for $1 per hour
would receive $1 times one and one-half times his incentive
bonus of approximately 40%, or $2.10 per hour.

The inconsistencies in take-home pay between the two groups
are due to:

a. Higher base rates for hourly paid employees.

b. More overtime for hourly paid employees.

c. Bonuses for hourly paid employees.

Due to lack of organization among salaried employees, com-
munity and area averages are far below the comparable hourly
paid positions making it difficult for the organized white-collar
groups to negotiate with their employer for better wages or to
eliminate inequities.

Even though some white-collar workers' salaries were in-
creased by the 15% allowance, millions still had less money after
paying the abnormally increased taxes! These same employees
had a 29.4% (according to United States Labor Bureau statistics
as of July, 1945) rise in living costs to overcome; in addition,
they were expected to invest 10% in War Bonds.

For example, in 1940 a married man with two dependent
children with a yearly income of $3,000, paid no taxes; in 1943,
having been granted the 15% increase, which brought his salary
up to $3,450, this same individual had to pay a tax of $379. Thus,
he would have left after payment of taxes $3,071, or an actual
yearly increase of $71 with which he must purchase War Bonds
and cope with the 23.4% increased cost in living.

Those salaried employees (with the same number of de-
pendents and with the 15% increase) who were in a higher in-
come bracket— if one can call $5,000 a "higher income" today-
were taking home even less money after paying their 1943 taxes.
In 1940 a salaried employee earning $5,000 per year paid $75 in
income tax, and had left $4,925. With the 15% increase, in 1943
he was making $5,750. His income tax that year amounted to
$941, which left him an actual income of $4,809, $116 less than
he received in 19401

8 WHITE COLLAR OR NOOSE?

Those salaried employees with incomes of from $1,000 to
$2,000 in 1940 (with the same number of dependents) fared
slightly better in 1943 after receiving the 15% increase, and after
paying the 1943 tax. In computing these taxes, no allowances
were made for deductions, contributions, etc.

In addition to his 1943 tax, the average white-collar taxpayer
had to pay half of his "forgiveness tax."

It must also be kept in mind that a great number of salaried
employees never received the 15% permissible under the Little
Steel Formula!

However, the Little Steel Formula did not turn out to be
the panacea it was expected to be, and on October 2, 1942, the
President issued Executive Order 9250 * "in order to control so
far as possible the inflationary tendencies and the vast disloca-
tions attendant thereon which threaten our military effort and
our domestic economic structure, and for the more effective
prosecution of the war." This order actually turned the Little
Steel Formula into law.

Officially titled "an Act to amend the Emergency Price Con-
trol Act of 1942, to Aid in Preventing Inflation, and for Other
Purposes," the Act ordered the establishment of an office of
economic stabilization policy and administration thereof, among
other provisions. Briefly, the Order prohibited general increases
beyond the 15% limitation, but contained provisions for granting
some individual increases, for the following specific reasons:

a. To eliminate substandards of living.

b. To correct maladjustments, inequalities, or gross inequities,
or to aid in the effective prosecution of the war.

Individual increases were to be permitted where established
rate ranges were in existence for two reasons:

a. For merit.

b. For job reclassification, which included promotion or estab-
lished job progresison.

The main effect of the Order was to definitely prohibit negotia-
tion of general wage or salary increases except for the reasons
mentioned above.

* From the Federal Register, October 6, 1942.

THE FORGOTTEN AMERICAN 9

Six months later, in April, 1943, Executive Order 9328, "Stabili-
zation of Wages, Prices, and Salaries," was issued. The Stabiliza-
tion Act, or as it was more popularly known, the "Freeze" or
"Hold the Line" Order had a two-fold purpose: to further restrict
indiscriminate granting of wage and salary increases and to
stabilize living costs.

The Order states: ". . . to safeguard the stabilization of prices,
wages, and salaries, affecting the cost of living on the basis of
levels existing on September 15, 1942 . . . and to prevent in-
creases in wages, salaries, prices and profits, which, however
justifiable if viewed apart from their effect upon the economy
tend to undermine the basis of stabilization, and to provide such
regulations with respect to the control of price, wage and salary
increases as necessary to maintain stabilization . . ."

Its immediate purpose was to combat growing pressure to
eliminate the 15% limitation set on general increases by the
previous order; also to prohibit the granting of general wage
or salary increases by using the argument that increases in living
costs since May 15, 1942, had created gross inequities, etc.

The Order reaffirmed the 15% increase limitation, set by the
Little Steel Formula, and removed the question of gross inequi-
ties and inequalities from the reasons for which general wage and
salary increases could be granted. As for the controlling of prices,
the Order instructed Economic Stabilization Director Byrnes to
take whatever action he deemed necessary and advisable to
stabilize living costs at a figure which would remove this as an
argument for further wage and salary increases.

The nation sat back to await developments of the next few
months which would prove whether "the line" could actually be
held at both ends. Unions which had been prepared to request
general increases for their members, held such negotiations in
abeyance, until the success or failure of the Order could be
determined.

Meanwhile, the white-collar workers, as usual, were getting the
tough end of the bargain. Now they were hopelessly held to their
fixed rates with no possibility of "catching up" with the higher
paid hourly workers. True, the Order prohibited granting of

10 WHITE COLLAR OR NOOSE?

further increases to hourly paid workers, which would have
widened the great differential between them, but this was little
comfort to the nation's 20,000,000 white-collar workers, who were
caught in a vise-like grip from which there seemed to be no
escape.

Thus it may be seen that the salaried employee's problems
were being "by-passed," not only by the large international
unions, who were primarily interested in the problems of their
hourly paid majority, but by the government boards and agencies!

The white-collar had been removed, and the noose was begin-
ning to be applied! Slowly, but effectively, the salaried em-
ployees were being forced to realize that the advantages of
being a white-collar worker existed only in theory. They did not,
however, come into this state of mind through some revolutionary
change. Actually, it had been the result of a number of little
things, accumulating over a period of years, until the present,
when the white-collar workers of the nation were proven to be
the scapegoat in a war economy. Certainly the 20,000,000 white-
collar workers of the nation were ripe for organization!

THE WHITE-COLLAR WORKER AND THE PERILS OF INFLATION

As the wage and price increases made in the steel, coal, electrical
and other industries in the early part of 1946 begin to show their
effects in the economic system, the country was drifting into in-
flation. Since there is always the possibility that a period of
general or mild price and wage inflation may bring about a period
of "run-away" or wild inflation, it is well to contemplate the
foreseeable effects of run-away inflation upon the lives of
salaried employees.

It is generally accepted that wages do not increase as fast as
prices rise during a period of inflation; and further, that the
more rapidly prices rise, the further wages lag behind prices.
Since hourly wages tend to be adjusted far more quickly than
salaries, it is readily apparent that bad as the effects of run-away
inflation are upon the hourly wage earners, they are devastatingly
damaging to the white-collar workers and their families.

THE FORGOTTEN AMERICAN 11

Since run-away inflationary periods almost follow periods of
relatively high earnings, the hourly paid production employees
can enter such a period in good financial shape with accumulated
savings. While the purchasing power of these accumulated earn-
ings may grow less and less, unless supplemented by a continuous
saving plan, nevertheless they do exist and are definite assets
and can be used if necessary to supplement earnings or cover
unexpected expenses. Salaried employees, having participated to
a lesser extent in the period of generally relatively high earnings,
due to their lower base rates, less overtime bonus and lack of
coverage under the various incentive bonus plans, are rarely, if
ever, in good shape economically when the inflationary lid blows
off. Since they generally enter a period of run-away inflation in
poor financial shape and since their dollar salary increases get so
far behind increased living costs, their lot grows progressively
worse, possibly even before their hourly paid neighbors begin
to feel the pinch of prices increasing faster than earnings. From
that moment on, salary income families begin to collapse as
going families, due to loss of homes, enforced family separations
and inability to pay for the necessities of life.

Governmental thinking in Washington is regrettably hourly
pay minded— seeming to believe that salary checks will pay for
anything and everything while hourly pay checks (which reach
families with more votes) must be kept in line with increased
living costs as much as possible.

True enough, the wage increases granted early in 1946 in many
cases included equal cents per hour increase for allied salaried
employees, but these equal cents per hour increases when added
to comparably lower salary incomes, left the salary incomes still
comparably lower. In the cases of the relatively higher paid pro-
fessional white-collar employees, such as design engineers, etc.,
the equal cents per hour increases actually made them relatively
lower paid because of the effect of progressive income tax de-
manding a greater share of their equal cents per hour increase
than the same tax schedules require from unskilled laborers,
etc.

It is possible that equal cents per hour raises will continue in

12 WHITE COLLAR OR NOOSE?

many cases because of the growth of salaried unions and govern-
mental and managerial moves to discourage such organization.
This latter is in itself proof of the great need of the effective
organization of salaried workers so that they can secure their
just share of the returns from production and not have to con-
tinue to be put off with token increases which leave them rela-
tively worse off after each such token increase in a period of
inflation.

Chapter II

WHITE-COLLAR WORKERS MUST ORGANIZE
FOR SELF-PROTECTION

WHITE-COLLAR ORGANIZATIONS ARE NECESSARY

It might be well to consider first a few highlights of the present
day labor situation and something of the origin of organized
labor. For many years Capital has had things very much its own
way with respect to labor. One needs only to review the treat-
ment of the working man in the not too distant past by certain
corporations, particularly in the mining, steel and garment in-
dustries, in order to appreciate the necessity for some form of
equalizing force. Slavery had been abolished, but there still re-
mained an inhuman form of submission that was destined to
cause a revolt. Then came the day when labor organized, de-
manding recognition of human rights and consideration. Also
with it came innumerable labor laws and finally "relations" de-
partments in industry. It is not our purpose to commend or de-
plore what has happened. The point we do want to bring out
is the fact that either by assent or by drastic action, a sociological
and human balance must be struck in all industrial relations. The
net result today is that we have on the one hand an executive
and managerial group strong because of authority and finance,
and on the other hand the organization of many workers into
powerful labor unions which are beginning to exert a strong
balancing influence.

But what of the vast multitudes of educated, conscientious,
salaried individuals who are very much "in-between"? Some-
times they are called the "white-collar" or middle class; they are
the group to whom is entrusted much of the mental work so
necessary to the success of any institution. The value of this

13

14 WHITE COLLAR OR NOOSE?

group is readily apparent when one considers that it is largely
from among their number that the future "generals" are chosen.
But who chooses these new officers when there is a vacancy?
Usually an individual presumably competent, but who often is
either prejudiced or too ambitious in his own behalf. And in
the same manner, too many outstanding men are released in
periods of depression without due consideration to their ability,
seniority, etc. Innocent victims in these shakeups . . . and there
have been plenty . . . appear to have no recourse or chance for
appeal. In civil life we have courts and juries and legal counsel,
but unfortunately, in many industrial organizations this recourse
is denied. Summary and final action is the privilege granted
managers and supervisors and should an appeal be made higher
up, the complainant only finds himself back where he started,
with alibis, stalling, and buck-passing as his only consolation.
Hence, the desire of salaried organizations or unions to preclude
repetitions of this unfair setup and establish an equivalent of a
Court of Equity.

THE WAGNER ACT IN A NUTSHELL

Many employees are still somewhat in the dark about the labor
legislation enacted for their benefit. What is this so-called
'Wagner Act"? What does it do? What does it mean to me?
These are some of the questions which are being asked.

The Wagner Act (better known as the National Labor Rela-
tions Act) was enacted by Congress about 11 years ago. Its
purpose is to assure to employees the right to bargain collectively
with their employers. Like other Congressional Acts, it applies
only to industries engaged in interstate commerce, as distin-
guished from those local in nature. (Employees of local industries
are protected by state legislation, their certifications and prob-
lems being handled by one of the state regional boards.)

The Act sets up a board of three members,* appointed by the
President, which chooses its own regional and local officers and

* The new Labor Management Relations Act, effective June 23, 1947,
changes this number to five.

ORGANIZE FOR SELF-PROTECTION 15

agents for handling complaints. It protects employees in the
right to organize to bargain through their chosen representatives,
and to engage in common activities to that end. It forbids certain
conduct on the part of employers, which it calls unfair labor
practices. These include: interfering with the organizational
rights of employees, controlling or financing labor organizations,
and discriminating against union members. It requires employers
to bargain with the representatives of employees on question of
wages, hours, and working conditions, and provides that when
one representative is authorized to act for a majority of the em-
ployees, within what the Board regards as an "appropriate unit,"
the employer must bargain solely with that representative.

In the main, the Act has been successful in carrying out its
purposes. Before a recent Congress, amendments were sought
to increase the board to five members, to permit the employers
to take the initiative in ascertaining what union represented a
majority of the employees and to give the employers more liberty
in discussing labor relations with their employees. For example,
when the law was first written, it was ruled to be an unfair prac-
tice for employers to indicate their preference * as to type of
organization of the employees. Another change which was sought
before the same Congress concerned the AFL desire to make
craft units * mandatory; that is, that when a majority of the mem-
bers of any particular craft within the plant so indicate, their
craft must be treated by the Board as an appropriate unit for
bargaining purposes. Absolute independence for employees to
choose their respective bargaining units was retained.

The Act also offers a democratic method of handling industrial
relations. If employees use its privileges, take an active part in
union affairs, select loyal and dependable leaders, and withal
retain their good judgment, restraint and common sense, the
resulting advantages will be immeasurable.

* The Labor Management Relations Act of June 23, 1947, incorporated
both of these examples.

16 WHITE COLLAR OR NOOSE?

TYPICAL BOARD CASES OF DISCRIMINATION

Question: What assurance has an employee who takes an active
part in union affairs that such activity may not cost him his job?

Answer: To begin with, the Wagner Act prohibits, as an unfair
labor practice, the discouraging of union membership by dis-
crimination in regard to hire or tenure of employment.* The
N.L.R.B. in applying the Act, has been alert to protect the em-
ployees with respect to their rights to engage in union activity.

Several typical cases illustrate this. In one of them, an em-
ployee was discharged for "reported misconduct." The Board
found that the real reason for discharge was union activity, the
employee being an active union member, and the employer fail-
ing to investigate or verify the alleged report. As a result, the
employee was not only reinstated with back pay, but was given
the same or an equivalent job at the Board's order. (Model
Blouse Co., 15 N.L.R.B., No. 19.) In another, an active union
member was discharged allegedly for spoiling pins, but again
there was no investigation by the employer to determine the real
responsibility for the spoilage and reinstatement was ordered.
(Oil Well Manufacturing Co., 14 N.L.R.B., No. 84.) A third
case relates to an employer's refusal to hire an applicant because
of his prior union activity. Here the Board not only ordered the
employer to give employment to the applicant, but for the first
time since the Wagner Act was enacted, ordered the payment of
back pay from the date of refusal. (Waumbe Mills, Inc., 15
N.L.R.B, No. 4.)

In this connection, it may be noted that during the month of
July, 1939, wage restitutions ordered by the Board for dis-
criminatory discharge cases totalled $47,708.00, distributed
among 722 employees. Hence, it is now clear that an employee
may engage in union activity with full assurance that it will not
prejudice him in his employment. However, union activity will
not render the employee immune from discharge for proper rea-

* The Labor Management Relations Act of June 23, 1947 does not
change this portion of the Wagner Act.

ORGANIZE FOR SELF-PROTECTION 17

sons, such as insubordination. (Hope Webbing Co., 14 N.L.R.B.,
No. 5); intoxication, (American Oil Co., 14 N.L.R.B., No. 77);
breaking tools and absence from work, (American Scale Co.,
14 N.L.R.B., No. 76); lack of work, (Dallas Cartage Co., 14
N.L.R.B., No. 29); violation of a no-smoking rule, (Hope Web-
bing Co., supra), and the like.

WHY ARE EMPLOYEE ORGANIZATIONS DESIRABLE

This and many similar questions are asked or are in the minds of
many salaried employees. This is especially true in industries
where groups and departments have been harmoniously and
fairly administered for many years.

Organization of, or membership in a union is in no way a
reflection upon the company, a specific department or a depart-
ment head. It is merely a step toward active cooperation in the
affairs of the company of which the employees are a vital part.
By interested, intelligent and fair-minded effort on the part of
everyone, the union can assist in creating a harmonious relation-
ship between employees and management.

Employees should recognize that programs or policies initiated
by the management are often misunderstood or misinterpreted
by the employees due to lack of understanding of the reasons
making these policies or programs necessary. Facilities for clearly
explaining moves have not always been available. Likewise, em-
ployee reactions have not been transmitted to the management
because the proper channel was not available and discontent
grew needlessly. The causes could have been promptly corrected
or properly explained if the reactions of the employees had been
known to the top management of most industries.

It is regrettable but inevitable that in large industries, there
are supervisors who are overzealous or who are lacking in un-
derstanding of human psychology, and do or say things in a way
to cause discontent or friction which impairs harmonious rela-
tions. If called to their attention, proper steps could be taken
to correct the difficulty. Likewise, there are a few men who feel
that the position of supervisor places them in a position where

18 WHITE COLLAR OR NOOSE?

the persons under them have no right to question what is done
by diem or by higher management, and that one's rate of pay,
hours of work, or vacation are all affairs to be governed and
regulated by the management as a right over which the employee
should have little or no control. Such acts and attitudes are
modified where organizations exist and thereby create a means
of advising the management of dissatisfaction caused thereby.

On the other hand, some employees feel that they should get
as much and give as little as they can get away with. Also, the
abuse of privileges is resorted to in some cases. There are abuses
on both sides which, if presented and discussed under proper
conditions and by recognized and reasonable representatives of
both management and employees, can quickly and easily be
eliminated.

A person spending almost one-third of his or her daily life in
any organization or activity is certainly entitled to proper sur-
roundings and relations which will promote both physical and
mental well-being. This latter aspect of industrial relations is
most often overlooked by supervisors interested only in efficiency.
Employee morale cannot be evaluated in dollars and cents, and
is thereby discounted or often entirely overlooked.

By encouraging and supporting the proper kind of an employee
organization, by membership and active participation, the means
are provided whereby through cooperation and suggestion, all
manner of discord can be eliminated, and unwittingly reserves
will profit to the benefit of both the company and the employee.
All will be happier, more contented, and feel more secure in
their jobs.

SOUND POLICIES ARE OF REAL VALUE

Salaried unions must hold firmly to a policy of honesty, fairness
and respect for those with whom they deal. The job of organiz-
ing is not an easy one and employees face many trying problems
even after the union has become the recognized bargaining agent
for the employees it represents. For this reason, it should have
not only the interest but active support of every white-collar

ORGANIZE FOR SELF-PROTECTION 19

employee eligible for membership. With this support, it can
continue to improve its position in the company and safeguard
the employee's livelihood.

WHAT THE COMPANY OWES ITS EMPLOYEES

One of the major executives of a certain company once made
the statement that in his opinion, the company does not owe its
employees anything— that so far as he is concerned, the company
owes him nothing. To further prove his independence, he stated
that he had on one occasion left the employment of the company
of his own volition and obtained employment elsewhere.

These statements are interesting because they represent one
stand on the important question of the relation of the worker
to the company for which he works. Does a company owe its
employees anything? This question can be answered in many
ways. The following, in the author's opinion, are some of the
company's responsibilities to its employees:

1. The company owes the payment of at least a living wage—
sufficient for a worker to maintain himself and his family in de-
cent comfort. For positions requiring additional skill, special
training, experience, and those involving acceptance of unusual
responsibility and discretion, the wages must vary correspond-
ingly.

In a large organization, there are many individual cases which
need attention in the matter of improving wages. Some groups
are underpaid for the type of work they do. From time to time,
the general wage level requires close scrutiny by employee repre-
sentatives because the dual responsibility of management may
easily lead to an unbalanced situation. On the one hand is man-
agement's responsibility to the stockholders, and on the other
hand is its obligations to the employees. Since management is
responsible to the stockholders for their positions, there is a
tendency on the part of management to favor the interests of the
stockholders.

2. The company should recognize the right to organize. Cor-

20 WHITE COLLAR OR NOOSE?

responding to this right to organize is management's obligation
to deal with the organization.

The more than 2000 Associations of Employers in the United
States indicate that invested wealth realizes how necessary is
organization for its self-preservation. Surely this same right of
organization is not to be denied to the workers, those who need
it much more. It is useless and hopeless for management to fight
collective bargaining and at the same time expect loyalty from
the workers. No worker will show appreciation for the needs of
his company or be convinced of the integrity of his employer if
he has to fight for the existence of his union. Management cannot
consider unions as outlaw organizations and expect workers to
meet its demands for confidence with any assurance of convic-
tion. The organization of workers in a company enables firms to
predict their labor costs. Each employer is put on the same
minimum basis as every other and competition is practically
eliminated from the field of labor expense. An adequate organiza-
tion protects the right of workers to offer constructive criticism
without fear of discrimination or discharge.

3. The company owes its employees the best possible working
conditions, including adequate, healthful and well-lighted work-
ing accommodations; well-trained and considerate supervisory
force as well as those intangible extras that promote harmony
and good morale.

Press of business on one hand and need for economics on the
other may result in overcrowding employees with consequent
danger to health. Poorly lighted working space is especially detri-
mental because it affects adversely a faculty which is most
precious to the worker. Badly regulated temperature and ventila-
tion are distinct causes of sickness. Nerve strain, the continued
use of certain muscles, and working in dusts, gasses, metals,
vapors and fumes also have a deleterious effect upon health.
Women workers are especially subject to ill health from occupa-
tional conditions. In addition, considerate and well trained man-
agement will promote harmony and efficient operation where the
reverse will result in inefficient and disinterested workmanship.

4. The company owes consideration to the extent of diplomat!-

ORGANIZE FOR SELF-PROTECTION 21

cally offering guidance and assistance in the performance of daily
tasks. Consideration should be a part— not a tool— of the com-
pany's organization where each loyal employee merits the right
to the knowledge of the functioning of the unit of which he is a
part.

Often management and employees alike fail to realize that
the employees ARE the company, and anything that injures the
workers also injures the company. Both groups are guilty of this
shortsightedness. Some individual managers still feel that the
employee is merely the possessor of a commodity which is to be
bought and sold at will and that the price paid (wages) gives
the company full right to deal with the individual without con-
sideration for the human factors involved. But labor cannot be
considered apart from the human being who furnishes it.

5. The company should guarantee fair and honest treatment,
especially where employees of long service are concerned, be-
cause the worker's years of service have given to the company
something for which mere money cannot repay.

If employees gave to the company only that part of them-
selves that is paid for, salesmen would not spend nights and
weekends selling the company first and then its product; en-
gineers would not spend their extra time figuring out some knotty
problem involving a new invention, nor would they be willing
to spend day and night on a job helping to get their company out
of a bad commercial situation. Neither would the clerical help
or the men in the shop remain with their work for many long
hours— even for the extra pay— and help to develop new methods
and new processes whereby the company could profit or im-
prove its competitive situation. Too often these factors are for-
gotten in hard times or when personal feelings enter into the
picture to distort the facts. Too often the value of morale is
overlooked when evaluating the effect of a discharge or move
made without adequate thought having been given to the human
angle involving self respect and initiative.

When considering employee independence it is well to realize
that one's independence as an employee is affected to a great
extent by his background, the advantages he has had for extra

22 WHITE COLLAR OR NOOSE?

training, his length of service on the position, not to mention
his financial status. One's background is often not of one's own
choosing and the necessity for earning a living generally limits
the ability to change positions. Likewise, the ability to obtain
special or advanced training is often limited by the same consider-
ations. A good employee with long years of faithful service to the
company is unavoidably handicapped in making a change for
many reasons. His knowledge may be very valuable to one com-
pany but useless to another. This is especially true in large
corporations. In this connection, it may be well to state that some
jobs preclude an individual's obtaining a general knowledge
which would be of much benefit to him in any other place. And,
as an added handicap, there have been instances where em-
ployees were prevented from access to new or better positions
because of the intervention of supervisors. There have been
cases where employees actually obtained positions outside the
company and then were prevented from making the change by
management intervention.

These are some specific instances of the responsibilities of any
company to its employees. In addition, every management should
take steps to educate supervisors in their duties as personnel men
and encourage them to take an interest in this phase of their
work. A business-like method should be instituted for prompt
handling of the broader phases of collective bargaining to the
end that more freedom be given the various personnel managers
to make decisions rather than just act as buffers between top
management and employee organizations. The union and the
management should face the problems which confront them and
deal with them in a true spirit of cooperation.

WHAT THE EMPLOYEE OWES THE COMPANY

Now the other side of the story— what does the employee owe
the company— requires a few words of explanation is apparent
from remarks made by an employee of a certain company on one
occasion. This employee stated that he was not interested in the

ORGANIZE FOR SELF-PROTECTION 23

company, its surplus, or the taxes it had to pay; and the view
that employees are a part of the company is false.

In the past it has been generally regarded as the duty of a
labor organization to look after the employees, and not to bother
about the company; that the company is capable of looking after
itself. However, an employee has a certain amount of responsi-
bility to the company which employs him if he expects anything
more than daily wages won after hard bargaining, and both the
employee and the union have the obligation to be fair and hon-
orable in all their relations with the company.

A few of these obligations include:

1. To render an honest day's work for an honest day's pay.
Obviously, no sensible worker can accept the idea of doing as
little work as possible or loafing on the job. This is contrary not
only to sound ethics, but also to the basic principles of common
sense. It is hard to see how a man, who takes money for work
he hasn't done, is very much better than a common thief. The
worker's own welfare depends to a great extent on his doing the
best possible job. This is not in defense of any kind of a "speed-
up." But assuming that the worker has been granted job security,
a living wage and decent conditions, it is to his own interest that
he should cooperate to cut costs and make the business success-
ful. If the business is marked by all kinds of waste and ineffi-
ciency because the workers desire a maximum of return for a
minimum of service, the business fails and the workers are on the
street and out of work.

2. To abide by just agreements freely made. The cornerstone
of harmonious relations is mutual respect, and mutual respect
will not and cannot exist where one party to an agreement will
not hesitate to violate its promises. Every just agreement freely
arrived at must be held sacred by the union and its members.
Violation by the company does not excuse violation by the union,
just as the faults of one man do not excuse the faults of another.

3. To respect property rights. Employees must exercise reason-
able care when using machinery, tools, furniture and other prop-
erty belonging to the company. They must practice strict honesty

24 WHITE COLLAR OR NOOSE?

in regard to supplies and other small articles that are easily re-
movable. Employees should not take from company property
anything to which they have no title. Furthermore, unfair ad-
vantage is not to be taken of special consideration and conces-
sions made for the benefit of employees.

4. To recognize that the company must maintain a sound finan-
cial foundation. If the employees are not interested in the
financial status of the company for which they work— beyond its
ability to pay wages from pay period to pay period— they cannot
expect much in the way of protection as regards job security in
the future. A company to be sound must lay away some funds in
time of prosperity to survive periods of depression. Perhaps a
company can afford to pay higher wages now and put away less
in reserves, or pay less to stockholders. But reserves are what
make it possible to keep many employees at their work in slack
times, developing new products or in improving standard lines
so they can be sold at lower prices and thus better the market
for the products. Likewise, in good times the stockholders expect
larger returns to compensate them for the small return they re-
ceived in slack times. It is the stockholder's money and the em-
ployees' production which enables the company to exist and do
business.

5. To enforce strict honesty and democracy within the union.
This means supporting the union, attending its meetings and
keeping a careful check on the honesty and efficiency of its
officers, thereby not only protecting the union for the benefit of
its members, but also establishing a union that has the respect
of management. Without such watchful participation by the "rank
and file," the union may fall into the hands of dangerous men,
either racketeers or those promoting some un-American form of
political and industrial activity. The racketeer has no concern
for the welfare of the worker and less for the welfare of the
company; he is out to get all he can while he can get it. The
other group seeks to wreck industry through unjustified strikes
and slowing up of production, thus hastening the collapse of the
country. These men also seek to involve the union in affairs
which are not a part of its rightful activity. A union is at its best

ORGANIZE FOR SELF-PROTECTION 25

when it is attending strictly to union business . . . the shoe-
maker must stick to his last.

We are now brought to the issue of the justification for the
feeling that employees are a part of the company. None, if they
have no interest in it. In that case they are merely so many
machines paid to do a job so long as there is a job to do, or so
long as they can do the job more efficiently and less expensively
than some other machine. And under this condition, management
is under no obligation to consider them in any other way; they
may be dismissed at will and replaced as the company sees fit
in order to have the job done better or more economically. One
might say that this is where labor organizations come into play-
to protect the rights of workers. What are the rights under such
conditions? Not human rights, since they have foresworn those
rights by becoming machines, bought at a price duly bargained
for. This condition presupposes right by force of numbers, eco-
nomic strength, etc. Number is only of value when large num-
bers of machines are in demand to do a job and ceases to be
effective in hard times. When the economic strength is consid-
ered, the corporation is far more able to stand an economic strain
than is the employee or any group of employees.

With this in mind, it behooves all employees to remember that
they are a very important part of the company, as a group of
human beings, with human aims, human interests, and human
rights. As human beings, workers are interested in their futures,
and being interested in the future, they must of necessity be
interested in the company of which they are a part.

A GOOD UNION PROTECTS LIKE A GOOD INSURANCE POLICY

The philosophy of the older type of labor organization is based
on the theory that anything they can secure from management
is better than nothing at all without any regard to the cost to
the company, the consuming public, or the employees themselves,
as against the better labor organizations whose philosophy in-
sists that something good and sound is better than just any old

26 WHITE COLLAR OR NOOSE?

thing. Let us consider a labor organization as insurance— in-
surance against arbitrary treatment.

When a man considers buying insurance, one of the first items
that will be brought to his attention is the amount of protection
provided. Not only are the terms of the policy of importance but
the' background and stability of the insuring concern is also of
prime importance. Likewise the cost and the terms under which
the premiums are paid is intimately connected with the life of the
policy, and the usefulness of it to the parties— the one pays his
premiums (or dues) and the other provides the services of pro-
tection to serve the best possible ends.

The worker must examine his "Labor Insurance" policy and
determine whether the "terms" ( or actions of the labor organiza-
tion) are going to provide for his general overall good or whether
they may adversely affect his future well being.

The attitude of the worker toward his union should be one of
being protected— the very existence of his union is assurance that
he will be individually and collectively heard and represented—
and the relative value of that service is in its very existence
rather than in terms of any arbitrary ends it may be caused to
serve.

The relationship of the worker and his union has been com-
pared to his relationship with his insurance policy. And like an
insurance policy, the cost of operation must be paid by the
members in order that immediate needs may be taken care of
and at the same time prepare the ground for the future as regards
employer-employee attitudes and relationships.

IN THE DRIVER'S SEAT

In concluding this chapter, a few words remain to be said
concerning the overall subject of unionism. Until recent years
the employers of the country were the dominant group. Many
of them were experts in the art of domination. Too many still
retain these characteristics. They find unionism a bitter pill to
swallow. They seem incapable of realizing that, so long as
dominant groups deny basic economic rights to weaker majorities,

ORGANIZE FOR SELF-PROTECTION 27

so long will industrial turmoil and strife continue to exist; that
the economic well-being of both employer and employee lies in
friendly relations between the two groups.

Now the worker is in the driver's seat and if he is big enough
to forget some of the rough treatment he has been subjected to
in the past, and instead of trying to repay in kind, will demon-
strate that he is a reasonable person who wants only what is
right and just, he will retain possession of the seat.

If organized labor is smart, it will make every effort to stay in
the enviable position it now occupies. To do this it has a selling
job to do. It must sell the large number of unorganized workers
the idea that their interests are best served by belonging to a
labor organization. It must sell itself to the general public by
conducting its affairs in a manner to command the respect and
confidence of all the people.

Such a program will require sacrifices. Some of the practices
now employed by some labor organizations will have to be
abandoned and replaced by practices which will receive public
approval. The net result, however, would more than compensate
for any sacrifice made. Labor would be more powerful than ever.
It would be respected. It would be in an infinitely better posi-
tion to see that workers received justice. Such a program could
result in labor peace as witness the case of Sweden where both
the employee and employer are highly organized, where there
have been no big strikes for years; where there is no anti-strike
legislation; where organized labor is the powerful and dominant
group but has not abused its great power.

This is the long range goal which American labor leaders
should strive to reach. They can do it only by drastic re-organiza-
tion of present policies. They must make union membership so
attractive to all Americans that they will be proud to say they
belong to a union.

Chapter III
ADVANTAGES OF A WHITE-COLLAR UNION

COLLECTIVE BARGAINING VERSUS INDUSTRIAL DISCORD

A common misconception is that pertaining to the effect of unions
upon strikes and industrial tie-ups. The charge has often been
made that unions by their very nature give rise to all kinds of
discord, particularly strikes. Some strikes are justifiable; some,
however, it must be admitted, are absolutely unjustifiable. A
little reflection will show that the strike is a two-edged sword
which may well injure the employee as much as the employer;
for by far the greater majority of workers have no other re-
sources than their own wages, while the employer, or more
specifically the management group, have been able to put away
something upon which they can draw in time of necessity. Since
the worker's wages stop during an industrial disturbance, his
existence becomes precarious and the needs of his family cannot
be adequately met. However, at all times every means to bring
about peaceful understanding between representatives of labor
and management should be exhausted before resorting to the
strike or lockout weapon. When industrialists refuse to recognize
labor's just demands, union leaders are then faced with employ-
ing the only effective economic weapon they have left to use
in defense of their rights, and that is strike. Strikes are to be
avoided wherever possible without sacrificing the real rights of
the workers.

Contrary to popular belief, ordinarily it is not the existence
of unions that is the cause of strikes. Rather, it is the refusal to
recognize the rights of these agencies, and to deal with them
honestly and promptly that most often causes work disturbances.
When unions are weak and unrecognized, many ineffective and
often disastrous strikes may be the consequence. When unions

28

ADVANTAGES OF A WHITE-COLLAR UNION 29

are strong and are dealt with fairly and promptly, the number
of strikes is considerably reduced.

The National Labor Relations Act, or the Wagner Act, because
it has protected and encouraged the organization of workers, has
come to be looked upon with disfavor by many employers. Some
have gone so far as to call the act "the greatest tool of subversive
agents. " The Act and the Labor Board have been painted as
promoters of discord in collective bargaining. Before the statute
was enacted, Bureau of Labor Statistics show that a little more
than half of the strikes were caused by acts of employers which
the Wagner Act subsequently prohibited under the name of un-
fair labor practices. In connection with the misconception re-
garding the effect of the Labor Board and unions on strikes, a
few statistics may be of interest.

The trend of strikes has been sharply downward since work-
men have been accorded legal protection in their organizing
efforts. In the year 1937, the Wagner Act was upheld as consti-
tutional by the Supreme Court. During the next year, the num-
ber of strikes declined 42%, and during 1939, strikes were 45%
lower than in 1937. It must also be remembered that in these
years there was a substantial increase in the number of organized
workers.

In the basic industries, the declines were as follows (accord-
ing to Bureau of Labor Statistics): the number of iron and steel
workers on strike declined 84% in 1938, and 92% in 1939, as com-
pared to 1937; in non-ferrous metals, the decline was 73% and
79%. Similar decreases in the number of men on strike appear in
textiles, rubber, machinery manufacturing, transportation and
communication, lumber and marine transportation. The indus-
tries which ran counter to this improving trend were few and
relatively unimportant.

Ten years ago there were few, if any, labor agreements in
many of our basic industries. Today, written agreements, re-
newed yearly, apply in the majority of the nation's machine shops.
Rail and water transport and the long shoremen who serve the
ships are almost entirely covered by agreements. Soft coal mining
is entirely organized and petroleum production partially.

30 WHITE COLLAR OR NOOSE?

During the past ten years, labor unions have made much
headway, because they have proven their worth. Collective bar-
gaining and written agreements have served to extend union
recognition, to establish a clear and indisputable record of terms
of agreement and to provide for continuous dealing between
workers and employer representatives. Unions have decreased
employment turnover, increased stability of production, placed
responsibility on union shop stewards instead of armed company
guards, and have accorded workmen that independence as men
which alone can assure loyalty to any enterprise.

With collective bargaining based on written agreements, it is
in its very nature rooted in democratic procedure. As liberty for
working people is attained through industrial democracy, collec-
tive bargaining performs valuable service to society as a whole.
Thus, far from being a cause of strikes, strong unions with public
recognition actually prevent the occurrence of such disturbances
and the evils that result from them.

WHAT Is UNION SECURITY?

Union security is a general term for contractual devices by which
the union's continued existence is assured (which necessitates a
strong membership and sure financial support). It has several
forms, which are briefly outlined below:

The first is the closed shop. With this type of security, every
employee must belong to the union, and the employer is per-
mitted to hire only union members.

The second is the union shop, which requires that all em-
ployees join the union within a specified period, but does not
require that they be union members before they are hired. This
means that the employer is free to hire whomsoever he chooses.

The third form is the preferential shop, which requires that
the employer give preference to union members in hiring or
layoff or both.

The last is the maintenance of membership. The basic prin-
ciple of this form of agreement is that every member and any
employee who becomes a member of the union during the life

ADVANTAGES OF A WHITE-COLLAR UNION 31

of the contract must maintain his membership for the period or
be penalized. The penalties are, in most cases, fines to be paid
to flie union plus payment of delinquent dues and check-off
dues; loss of seniority; or the alternative for either, which is dis-
missal from his job. With this form of union security, employees
who are not members are not compelled to join.

In an article in the Labor Relations Reporter, the N.L.R.B.
once stated that union security should be considered from the
viewpoint of maximum production. The union is entitled to a
maintenance of membership clause where some union security
is needed to protect the organization against rival unions and
hostile supervisors, and to enable the union to cooperate with
the management in an effort to obtain maximum production.

The War Labor Board, while it existed, showed a decided
preference for the maintenance of membership form of union
security in settling cases, and had this to say in recent de-
cisions:

"Unions should be protected from depletion in their ranks
because of circumstances arising out of the war, and non-union
members should enjoy the freedom to join or not join unions as
they please. . . . We believe that strong, independent and self-
disciplined union organizations and the leadership of responsible
union officials constitute a great and indeed an indispensable
asset available to us in this critical moment of our country's
history. ... It is the declared purpose of the nation, manifested
in the National Labor Relations Act and in many other con-
gressional enactments, to encourage the processes and to protect
the instrumentalities of collective bargaining. Responsible labor
organization has a primary place among these instrumentalities.

"This Board was created on the assumption that the peaceful
cooperation of responsible organized labor and responsible man-
agement is essential in carrying out the war. It follows as a close
corollary that the Board, in peacefully settling the labor disputes
which come before it, must continually bear in mind the broad
principle that neither management nor labor shall take ad-
vantage of one another as a result of changed conditions, brought
about by the war, either by direct aggression or by indirectly

32 WHITE COLLAR OR NOOSE?

bringing about a situation which leads to a natural process of
disintegration."

The differences between the various forms of union security
have been briefly explained to give the thinking of government
officials on this subject, and it must not be construed to mean
that the author approves any of these particular forms of security
unless modified to suit each union's conditions and unless ap-
proved by the majority of the membership. It is clear to the
author that a militant, upright, independent, salaried union can
sell itself and retain its membership solely upon its accomplish-
ments and can refrain from any form of union security that would
enslave those who become members or deny the freedom of
choice of union membership to those who are not members.

WHAT Is JOB SECURITY?

Prior to 1920, the matter of "job security" troubled very few
people in America. Expanding business and new enterprises gen-
erally provided openings for anyone temporarily out of work.
However, in the years from 1929 to 1935, conditions were such
that there were far more workers than jobs and for this reason
a person out of employment found it extremely difficult to find
a position. With this fact in mind everyone has become in-
creasingly conscious of the desire for some measure of security
in his work.

Many attempts have been made by employee groups, as well
as by some companies, to provide assurance of continuous em-
ployment at least for the older employees. Obviously, no hard
and fast rule can be established preventing an employer from
reducing his force under any condition. In times of fluctuating
volume of work, the force must also fluctuate or the company
can not long remain in business. With this in mind, the most
common and at first glance simplest solution to this problem is
a "seniority plan." Such a plan usually includes some "share of
work" provisions and endeavors to insure employment in propor-
tion to length of service of the employees.

Actually, when a fair and serious-minded group of people en-
deavor to formulate a seniority plan which will protect employ-

ADVANTAGES OF A WHITE-COLLAR UNION 33

ees, and at the same time not dangerously handicap the employer,
some obstacles arise. For instance, any inflexible rule is bound
at some time to react unjustly on some employee or group of
employees. Likewise, if administered flexibly, problems will arise
which are as difficult to solve as those which arise where no
seniority rules exist.

The ideal policy of every white-collar union should be to con-
centrate on fairness in all relations between company and em-
ployees. When considering security of employment, fairness is of
vital importance and when practiced by both parties can be the
means for dispelling the employee's fear of losing his job without
regard to years of service with the company. If the employee is
certain that his personal rights will always be respected, there
need be no fear of unjust action in connection with termination of
employment. It is only just and fair that every discharged em-
ployee be properly informed of the full reason for such discharge.
Furthermore, it is seldom justifiable to discharge an employee
"for cause" without having diplomatically, and with true regard
for human frailties, informed him of his shortcomings, offered
suggestions and assistance for improvement. Likewise, strictly
personal dislikes should have no place in management or labor
organization.

It is a humanly difficult task for a supervisor to properly dis-
cuss shortcomings with an employee and equally difficult for the
employee to take criticism in the proper manner. However, such
action is warranted and should be insisted upon, before dismissal
is agreed to in any cases where an organization is in existence. By
adhering to this rule, everyone is insured of a fair chance to cor-
rect his shortcomings and the responsibility for good work and
proper attitude is fairly placed on the individual. From the
author's experience, some supervisors favor the procedure of
warning an employee of undesirable traits or actions, and every-
one must recognize the justice of a policy of this kind. A fair
measure of "job security" will be attained if everyone plays the
game fairly and with honest regard for the right of the individual
to be informed of his shortcomings and to be given assistance
in overcoming them. Likewise, the problem of devising a work-

34 WHITE COLLAR OR NOOSE?

able seniority plan will be greatly simplified where this procedure
is fairly administered.

ALL EMPLOYEES SHOULD BELONG TO THEIR UNION

Today the worker enjoys certain rights and privileges which he
never had before. These rights and privileges are guaranteed
under the law of the land. No matter what some people may think
of these laws they are here to stay. It is even safe to predict that
present laws will be improved and new ones adopted which will
benefit the worker. This is a bitter pill for some of our present day
industrialists. Some of them cannot become reconciled to chang-
ing conditions. This attitude is difficult to understand as it is
a proven fact that in companies where harmonious relations have
prevailed for years between employer and employee, both the
company and the worker have benefited.

The banding together of workers in unions has helped the
employee improve his lot. It has helped raise the average worker
from virtual serfdom to a self-respecting citizen of his community.
Many things prompt the organization of unions. The usual case
is that employees had some general grievance, like impatience
with management treatment of personnel, or a desire to wipe
away low wage rates.

Many unions, on the other hand, are formed because a group
of men see the potential value of organization, of creating a bona
fide procedure for the settling of individual grievances and con-
ducting collective bargaining. Such a case does not result from
some special difficulty, lack of harmony, or trouble. Cooperation,
good will, and the elimination of the cause of grievances by
better understanding are the objectives.

More and more groups are organizing for these reasons. It is an
established fact that there is a decided trend toward unionism
among white-collar workers which is gaining momentum at a
rapid rate. However, there are some employees who think they
can take care of themselves without belonging to a union. They
think that because they have many years of service and have al-
ways been able to get along with their boss, things will always be
rosy. We would like these people to answer one question. If they

ADVANTAGES OF A WHITE-COLLAR UNION 35

suddenly found themselves working for a new boss, and he
started pushing them around (and it has been and will be done),
just what could they, as one individual, do about it? Obviously,
the answer is "nothing"; but if they had a union fighting for them
then something certainly could be done if action were justified.

Some employees who refuse to belong to a union in existence at
their place of employment have intimated that their boss is op-
posed to unionism and for this reason they hesitate to join. While
the boss has every right to his personal opinions, when he dis-
courages employees in this manner, he is not only unfair but
also is breaking the law. This being the case, these people should
dispel their fears on that score. Assuming some bosses do have
that attitude, would not the employee be immeasurably better
off to have that organization in back of him in a fight for his
rights? If the boss would take an arbitrary stand on a question,
what could one person do about it? You know the answer to this
question.

Finally, it should be remembered that a certified union is
certified to bargain for ALL the employees in the entire bargain-
ing unit for which it is certified as the bargaining agent. Then, if
an organization is going before management and continually
negotiating policies that cover all of these employees, is it not just
common sense that all employees should belong to that organiza-
tion and thus have a voice in determining its policies and action?
Any persons who are not members of the union which represents
them should join immediately.

A UNION is WHAT ITS MEMBERS MAKE IT

Independent salaried unions are good labor organizations when
they honestly seek the true good of every member. How long
they remain that way is determined by how active a part indi-
vidual members take in the affairs of their union, to give it an
upright spirit, which directs its actions and organization. All
forms of radicalism are opposed to this democratic philosophy
and individual members must be eternally vigilant to prevent the
organization from falling into the hands of the few who would
destroy its democratic principles.

36 WHITE COLLAR OR NOOSE?

Those who do not have the true interest of labor at heart are
responsible for the organizations which fall into disrepute. If
anything is wrong with a union, it is often because the complain-
ers sit at home and bemoan the fate of their organization while
their antagonists attend meetings and run the union. Policies
contrary to the best interests of the employees are adopted be-
cause workers fail to participate in the union's affairs.

Also, men must be trained by educational and practical
methods to become capable and trustworthy leaders. To offer
constructive measures, they must know the rights and duties of
labor and be able to root out falsehoods and facts. They must
be able to speak effectively, to voice their opinions freely and
factually. They must know parliamentary procedure so that they
will not be outmaneuvered when they seek the floor at meetings.

The best kind of leadership should go beyond this with factual
knowledge of labor relations and American labor law; familiarity
with the history of labor, especially of the labor movement; and
finally a familiarity with economics to refute false economic
theories.

Although this may sound imposing, it is not beyond the reach
of those interested.

It makes no difference what you call a union; any union is
just as strong as its members make it. Members elect their own
officers and representatives from among their own group and
the actions of these representatives is determined, not by the
name of the union, but by the calibre of the representatives
elected by the members, and also, regardless of how good a rep-
resentative may be, he can not do anything for his people unless
they have the initiative to tell him what they want, and enough
backbone to go all the way with him to reach a satisfactory set-
tlement.

A WHITE-COLLAR UNION AND A FEW OF ITS RESPONSIBILITIES

Any individual or group associating themselves with a well-
known company immediately assume a serious obligation— serious
because of the standard of quality and the reputation made pos-
sible by men and women who have worked for that company

ADVANTAGES OF A WHITE-COLLAR UNION 37

for years. Therefore, it is the solemn duty of every union of
employees to maintain the best organization possible, and this
can be done only with the wholehearted cooperation of all. No
single individual with the best intentions in the world could have
"made" the company, and certainly no group of individuals with
selfish interests or "second best" aims would have created it.

Companies that build on shallow foundations, greed, or those
which are satisfied with anything but the best, never endure for
many years. Likewise, companies with lesser ideals have fewer
veteran employees. Also, loyalty to an ideal can often keep labor
trouble to a minimum.

There are many pitfalls for organized labor to avoid, thus it
requires levelheaded and firm leadership. In addition, the spirit
of democracy must guide its members who must guard their
rights and privileges jealously or disaster will result. Every suc-
cessful organization presents a temptation to some individuals
to exploit it to their own selfish ends. This can only be prevented
by each member exercising his rights, as set forth in the Union
Constitution, in seeing that the organization is run to his satis-
faction. Neglect, indifference and loose criticism will not bring
about a better order, but will destroy the house which may have
been built on even the strongest foundation. If the house doesn't
suit you as it is, generally, it is cheaper to make it over than to
build another.

It is the duty of every salaried employee who is thinking in
terms of organizing to accept only the best in organization and
then fight to maintain it. It must remain free from company inter-
ference or domination as well as free from control by any group
which has as its aim the destruction of the organization or the
ideals for which it stands.. Likewise, it must have and show a
spirit of cooperation to any individual or group with which the
company must negotiate.

THE VALUE OF UNION MEMBERSHIP

Many people think of the word "value" in a purely personal way;
everything is of value or not as it applies to them individually.

38 WHITE COLLAR OR NOOSE?

Anything which directly benefits them is of value in their eyes
and anything less tangible in its application to them is liable to
be viewed as of little or no value. It is not the object here to
point out how membership in any labor organization can be of
value to the type of individual who is always looking for some-
thing for himself. Rather, it will attempt to show the value of
such association to labor as a whole and to the organization
by which they are employed.

No progressive business management today looks upon an
organization of its employees as a menace, nor do they look upon
its members with distrust and suspicion. Rather, they welcome
such an organization if sponsored and directed by responsible
and broadminded people. Labor unions are and will continue to
be an ever-increasing part of our national life and it is the duty
of every right-thinking and educated person to become a mem-
ber and take an active interest in some such body. Too many of
us, feeling that some organization or civic body has poor leader-
ship, refuse to take an active part even though we approve of
the principles involved. If we pause to think, we immediately
realize how foolish this attitude is, since our lack of participation
may be the very reason why poor leadership has had the chance
to obtain a foothold.

Every employee should recognize the importance to himself
and his company of participation in union activities. It is the
duty of every employee to become a member of the union which
is certified to bargain for him, to lend his effort and intelligent
cooperation to making it better and more representative of the
calibre of the employees. Sitting on the sidelines and criticizing
is of little value to any organization since anyone can criticize but
it takes intelligent participation to accomplish results.

The value of membership must be looked at from the view-
point of general welfare and the common good. There can be no
value without intelligent participation by all, but with such co-
operation, there is no limit to the extent of that value. What are
some of the values?

First, realization by all of a greater sense of job security. This
is true because the negotiators will be planning a program which

ADVANTAGES OF A WHITE-COLLAR UNION 39

involves recognition of service on the job as well as ability and
the many other factors which are to be taken into consideration
in promotion, lay-off, re-hiring, etc. There is also the realization
that there is someone besides themselves authorized to represent
the individuals to see that they get fair consideration in all mat-
ters involving their jobs.

Second, the organization is always alert to institute programs
and policies which will add to the employee's happiness and
welfare, such as hospital and surgical insurance, educational pro-
grams, procedure for settling and eliminating the causes for
complaints and many other similar matters.

Third, the institution and supervision of means for assuring
proper and comparable wage payments to all classes of employ-
ees. Means for checking living costs, wages, and to maintain in-
formation of value in discussion of wage and salary rates for
the group as a whole.

Fourth, the organization acts to promote education of the em-
ployees on the complex subject of labor legislation; provides a
means for studying labor laws with the idea of suggesting
changes and improvements where necessary; also to guide legis-
lators with helpful suggestions when new legislation is being
considered.

Fifth, it provides a common ground for discussion of employee-
employer relations with management. This can be effective only
when a trained and experienced group is developed through the
organizational set-up. Constant contact between employee rep-
resentatives and management is the best means for developing
an intelligent program of industrial relations by both the em-
ployee group and the management.

There are many other benefits to be gained through proper
employee organization.

In these days, when there are so many demands on the salaried
worker's time and finances, it behooves everyone to evaluate
each activity in which he is asked to participate. Most of us are
prone to ask the question: "What will I get out of it?" Others
want to know the value of the activity in terms of general good.
When unions are sponsoring a membership campaign these ques-

40 WHITE COLLAR OR NOOSE?

tions deserve answering in a straightforward manner for the
benefit of those who are being asked to become members.

In the first place, the union should be viewed as an organiza-
tion of employees banded together in the interest of all salaried
employees or white-collar workers. With this clearly in mind,
they will see that the policies must of necessity be such as to do
the most good for the most people and, therefore, it will not al-
ways be possible to please every individual no matter how earn-
estly the organization should strive to that end.

CHOOSING PROPER UNION REPRESENTATIVES

The union will represent its members and their views to the
extent that each one shares the responsibilities of the organization
by seeing that proper representatives are selected who will par-
ticipate in all union affairs.

With the above in mind, we can begin to consider the benefits
which will accrue to all employees organized into an independent
white-collar or salaried union. These benefits are as follows:

1. Discussion of problems and policies with management
through capable representatives of the employees' own choice.

2. Definite assurance that there is a means for preventing un-
fair treatment of any individual or group through appeal to its
representatives for assistance.

3. A trained staff of fellow employees working continuously
to safeguard the union's interests and assure its members of
constantly improving working conditions and wages as conditions
change.

4. Assurance of continuation of beneficial policies affecting
wages and working conditions by embodying such features in
signed agreements or contracts.

5. Development and administration of a fair and uniform
wage policy eliminating, insofar as possible, inequalities and ir-
regularities.

6. Formulation of a sound job security program based on length
of service and other conditions assuring all conscientious employ-
ees of just treatment under changing economic conditions.

ADVANTAGES OF A WHITE-COLLAR UNION 41

7. Means for safeguarding the membership's interests by pres-
entation of views and recommendations of its representatives be-
fore state and national legislators and labor department heads.

8. By being represented by individuals who endeavor to under-
stand the many problems of management and finances of the
company and thereby formulate policies and requests on the basis
of sound economics.

9. By careful selection of officers and representatives, build an
organizational structure which can win and maintain the respect
of the public, management, and the members with whom they
must deal.

All of the above is the right and privilege of every organized
employee. Each certified unit legally represents each and every
employee included in that unit regardless of any individual's
wishes. This usually applies to every person working in a position
below that of supervisor and, for this reason, it behooves every
employee so represented to take an active part in the formulation
of the policies of the organization. The more responsible the
position held by the employee, the more it is to his interest to
be an active union member and thereby protect his interests. By
remaining a non-member or an inactive member, one leaves the
way open to the election of officers who may formulate policies
beneficial to one group and harmful to the group which has not
seen fit to assume an active role in the organization.

THE EMPLOYEE'S RESPONSIBILITY TO His UNION

Fighting the war brought to mind that if we are to exercise our
democratic right, we should be consistent about it. We do not
want the sort of political organization wherein the individual
gives up his right to help make the decisions and to share the
responsibility. Neither do we want to lose our INDUSTRIAL
DEMOCRACY.

To get democratic control over working conditions, employees
choose or organize a union. But does designating a union mean
that employees are governing matters that affect them? It de-
pends on the employees. The union is only the agency and as

42 WHITE COLLAR OR NOOSE?

such must be instructed to act by those whom it represents. If
the employees are to be really represented, it becomes the re-
sponsibility of each employee to participate in the functioning
of his union.

Participation by the individual member, however, involves far
more than merely paying dues, although this is a prerequisite
of any union activity. It also involves:

1. Reporting grievances— not complaining that the union never
does anything about a particular situation.

2. Presenting only justified grievances, where the facts show
there is a case in actual need of adjustment.

3. Helping to formulate policies which are to be negotiated
for the entire bargaining unit of employees.

4. Cooperating with the local representative and keeping in-
formed of union activity.

5. Loyalty, moral support and interesting new employees in
the union.

It is only logical that filing a grievance or at least verbally re-
porting a situation, is absolutely necessary before the union can
attempt to have a situation corrected. It is the responsibility of
the member to notify his representative, to give him all the facts,
and to support him when he takes up the case with the local
management representative— not to back down by saying "Please
don't mention my name," or to contradict him later.

EMPLOYEES MUST TELL THE UNION WHAT is WANTED

It is essential that the employees speak up concerning the ne-
gotiation of policies which affect all employees in the unit. Often
we hear of workers in certain plants objecting when a union sud-
denly comes in and organizes the plant, even when these same
workers agreed there should be a union and voted it in— for "now
the employees will have their say." Then why do they object
after the union is certified to bargain for them? Immediately after
winning the election, the union sends in a ready-made contract
and BANG! The employees do not have the chance to approve
or reject the contract. They do not have industrial democracy;

ADVANTAGES OF A WHITE-COLLAR UNION 43

they merely have been placed under a new dictator. However,
in a union where the employee can speak up, it is the responsi-
bility of the members to attend the general meetings, where the
work of the negotiators is approved or voted down. They can
also relay opinions through their representatives, and appear be-
fore their executive committees to present proposals.

Knowing the local representative, keeping informed of union
activities and bringing in more members also are very real parts
of the employee's responsibility to his union. Each member bear-
ing his share of the load aids bargaining. It leaves the union free
to concern itself with only legitimate problems, and makes it un-
necessary to stir up unreal problems to keep the membership
interested.

From management the employees expect decent wages and
working conditions and from employees the management expects
an honest day's work. While the unions seek to see that this is
always the case, the union itself expects something from both
management and employees and that is FAIR DEALING.

DISCRIMINATION AND FAIR PLAY

The company should not discriminate, through supervisors or
other employees not included in the union, against any employee
because of membership in or activities for the union.

It should be unnecessary to make the above statement, as no
supervisor worthy of his position would hold any resentment
against any individual because of his membership in or activities
for the union. Any supervisor who tries to treat the employees
working under him in a fair manner will realize that the forma-
tion or a union is not a criticism of the supervisor or top man-
agement but is an attempt to aid in giving fair and just treatment
to the employees.

Any large corporation is necessarily constituted of thousands
of individuals, and among these are some who are individualists
to the extreme. These people are after personal gain, regardless
of who may be injured on the way. Such individuals and their
activities are one of the prime reasons for the formation of unions.

44 WHITE COLLAR OR NOOSE?

Often such individuals hold only minor supervisory positions,
or they may be fellow workers who hope to advance their own
cause. Experience shows that individual supervisors are not al-
ways free from prejudices, or arbitrary action inspired by indi-
gestion, misunderstanding, or sometimes, just plain perversity.

In a certain locality, it was discovered that a minor supervisor
had been putting words into the mouths of one or two of the em-
ployees working under him, suggesting that connection with the
union was the same as taking action against the principal man-
ager. This discrimination reached such a point that one of these
employees told a fellow employee that unless he took action to
show management that he desired no connection with the union,
management would "jump on him with both feet."

There are two dangers involved in this situation. First, man-
agement should never allow any situation to exist which will
identify to them those who are members of the union from those
who are not, since, if they do not have this knowledge, they can-
not be accused of any discrimination because of union member-
ship. Second, management should not allow any employee to
make untruthful statements about management's policies.

In modern industry today, human relations can be realized
only through collective bargaining negotiations wherein employ-
er's representatives and workers' representatives meet as equals,
seeking to determine wages, hours, and working conditions fair
to all.

FREE SPEECH VERSUS UNLAWFUL PRESSURE

According to our democratic way of life, management is, of
course, permitted freedom of speech. But the line which separates
privileged statement of opinion on the one hand from unlawful
vocal pressure on the other, is drawn by the Labor Relations
Board in such a way as to qualify statements as lawful or unlaw-
ful. On one occasion the employer contended that certain state-
ments amounted only to advising employees of the consequence
to his business if they joined the union in question. The Board,
however, advised that they were designed to discourage union

ADVANTAGES OF A WHITE-COLLAR UNION 45

activity. (Ref: July 27, 1942, issue of the Labor Relations Re-
porter.) Some of these statements were:

1. Unions never did anybody any good.

2. Unionization will create a wall and barrier between em-
ployer and employees.

3. A particular union, disfavored by the employer would de-
mand wage scales which would necessitate curtailment of work
and personnel.

CONFIDENCE is PERSONAL

A "personal relationship" is an aid in maintaining the proper at-
titude between employer arid employee and is a phase of indus-
trial relations frequently overlooked.

In the past decade, more books and short articles have been
written on the subject of industrial relations than in any similar
period of time. Almost without exception, the fundamental
thought on these writings is the encouragement of closer personal
relationship between supervisor and employee, and that an in-
creased personal interest would bring about greater regard for
human values and personal rights.

After reading many of these books and articles, there is little
wonder that those of us who are interested in the problems of
industrial relations between employer and employee begin to
question whether some men who have been placed in positions
of responsibility have fully appreciated the importance of this
phase of their work. Many times we have heard it said:

"My door is always open to any person in my department. I
am always glad to receive their complaints or talk over their
problems."

Actually, the speaker feels that he is sincere in this statement,
but that door which is supposed to be open is generally closed
both figuratively and literally and we well know that it takes
more courage than most of us possess to open a door and ap-
proach a big executive whom we see only on rare occasions, no
matter how congenial he may be. In this connection it is regret-
table that many of our most personable executives are little

46 WHITE COLLAR OR NOOSE?

known by many of the men and women in their departments.
Often their only personal contact with the employees is at one
departmental "picnic" or "outing" a year. At other times they are
closeted behind a door marked "Manager", "Superintendent",
etc., and are seldom seen by those who could do so much more
for them in an emergency if there existed that confidence in-
stilled by personal contact and a genuine show of personal inter-
est.

It is fundamental that a large corporation or extensive enter-
prise tends to limit personal contact and submerge personalities
to the extent that human relations and human interests are often
overlooked. But it is the personal interest and regard for human
values that have given us some of the most outstanding examples
of harmonious business enterprise in the country.

In general, the main talking point of any union or employee
organization is higher wages and salaries. This is only natural
because it is a concrete subject with a direct appeal to most
workers and one which can be discussed at length. Although the
primary interest of any union is in seeing that all employees re-
ceive the maximum wage commensurate with their ability,
length of service and the company's ability to pay; morale and
efficiency, as well as physical and mental well-being, are pro-
moted by something far simpler and more easily obtained than
dollars. Few people have the courage to protest a discourtesy, a
personal slight or a lack of regard for personal right on the part
of a supervisor, but those oversights are far more destructive to
morale than other things often considered of greater importance
by the management.

Confidence in management begins with confidence in and re-
spect for the immediate supervisor and grows with each step up
the ladder of the supervisory structure. Confidence and respect
needs start at the bottom because it is a long way to the top and
the personal touch is much harder to give from that plane. For
this reason, confidence in a company rests upon the confidence
of employees in their immediate supervisors. The responsibility
of the supervisors is the greater, and one that is too often over-
looked from the personal angle.

ADVANTAGES OF A WHITE-COLLAR UNION 47

SECURING WAGE INCREASES is NOT THE SOLE FUNCTION OF UNIONS

Securing necessary wage increases is, of course, one of the prin-
cipal functions of any union. But it must be kept in mind that
it is only one function, and there are many others of equal im-
portance. In many cases, these other functions greatly transcend
the economic motive in importance.

Most important of these is the quest for security. Lack of the
guarantee of some sort of security is one of the greatest worries
that an individual can have. If an employee knows he can expect
reasonable protection against discrimination, favoritism, arbitrary
discharge and other factors that make for insecurity, he is a much
better workingman and citizen, a valuable asset to his employer
and his community.

Another very important function of a union is to promote in-
dustrial democracy by the creation and maintenance of harmony
between employer and employee. The higher the degree of har-
mony realized, the greater will be the loyalty of the employee
to the company and the fairer the treatment accorded the em-
ployee by file company. Harmony will prevent a return to the
old attitude of "Quit-if-you-don't-like-it" on the one hand, and
the attitude of "I-should-worry-I-only-work-here" on the other.
Where a sincere effort is made to understand the other fellow's
problems, industrial peace and harmony will prevail.

Unions are not only good for the worker; they are equally good
for the company. They make the worker feel a sense of security
which he did not have before the union was in existence. This
sense of security works to the company's advantage in that it
creates loyalty and efficiency, making the worker feel that he is
part and parcel of the company.

Any company, after it has recovered from the shock of having
the employees bargain for those things which they think they
have a right to expect, should get around to the full realization
that it has a responsibility to its employees. It should come to
realize that the happiness and economic welfare of its employees
and the continued success of its business depends in a large
measure on its treatment of the employees.

48 WHITE COLLAR OR NOOSE?

All these things spell harmony and security and together they
spell industrial democracy.

WHY A SENIORITY POLICY is NECESSARY

Until recent years the problem of job security was not of primary
importance to the average individual. A good workman could
usually find employment regardless of age or length of employ-
ment with his former employer. However, during the past fifteen
years all this has changed, and, today, loss of one's position is
often a major catastrophe, particularly for a man with a family
and property. For this reason the assurance that one's position
in industry is secure is of prime importance if we are to have
peace of mind and be able to plan for the future.

A large percentage of American families have ceased to mi-
grate from place to place and from job to job and have settled
down, accepting their responsibilities as citizens in a particular
community. The more responsible the individual, the greater
his contributions to the community and the more valuable he
becomes to his employer. Most of us plan for the future, such as
rear children, prepare for their education and buy homes. This
is what has made America the progressive nation that it is today.

In order that such progress may continue, now that business
conditions are rapidly changing, we must adjust our principle of
employment. With the end of our present wave of prosperity the
market will probably be glutted with employables in many lines.
Management will then set higher standards for new employees.
It is even conceivable that a company, in the interest of efficiency,
may seek to discharge some employees of long service, who
would normally be satisfactory employees, to be able to hire
persons who are younger and better educated. This move cer-
tainly could be justified, on the surface, as in the interest of
economy, but there can be no doubt about what such practice
would do to morale. And, morale, in the long run, has a very
definite effect on efficiency of an organization.

From an entirely different angle, and one which is just as im-
portant from the standpoint of seniority, personal likes and dis-

ADVANTAGES OF A WHITE-COLLAR UNION 49

likes frequently play a major role in determining who is to be
advanced, hired or discharged without regard to background or
experience. In an organization where the practice is not to inter-
fere with sub-management in the exercising of their personnel
relations, even though the act of a particular manager may be
open to serious question, instances of unjustifiable discharge and
discrimination occasionally occur. The only security employees
have is the fact that the great majority of supervisors exercise
judgment in such matters.

For many years employees in industry have gotten along with-
out any specific seniority policy and in general the results have
been satisfactory to the majority. However, times have changed;
also, a few inconsiderate individuals still remain in supervisory
positions and for this reason adoption of basic rules governing
seniority seem desirable. These rules should at least provide the
maximum of consideration for human rights.

No seniority plan, however carefully prepared, can meet all
conditions; therefore, it must be recognized that basic funda-
mental rules are all that can be written into any agreement. To
some, it would seem that the preparation of a plan to insure
maximum job security and consideration to men and women
with long service should be very easy. However, in companies
with widely divergent occupational groups, it becomes a very
difficult matter. Straight seniority can only be applied in some
instances and exceptions must be made in many others. It is
these exceptions which make the problem a difficult one to
solve, and the matter of individual opinion creeps in to becloud
the issue and make agreement difficult.

It is an established fact that agreements with management, on
rules governing seniority and kindred subjects, can only be
entered into by a legally recognized employee group. For this
reason it is essential that all salary employees and white-collar
workers on an hourly rated basis should organize themselves into
appropriate units and obtain certification as bargaining agents.
After certification is obtained, negotiations can be begun out of
which will come a definite understanding of the policy to govern
employment, advancement, etc. A well defined policy of this

50 WHITE COLLAR OR NOOSE?

kind can greatly enhance the employee's feeling of security
since the possibility of discrimination and discharge without due
cause will be practically eliminated. Machinery should be set
up to review all cases where an employee feels that he has been
unfairly treated.

In conclusion, it is well to state that it should never be the
intention of any seniority agreement to handicap management
in exercising good judgment in the matter of personnel affairs.
Nor can it be the intention to provide the means for any care-
less and incompetent employees to retain their employment after
they have been duly and properly warned or instructed in the
matter of their conduct.

SENIORITY RIGHTS

One of the primary concerns of men or women working in in-
dustry is job security. To accomplish this end, workers become
rather specialized in particular fields and at the same time estab-
lish their roots in the community life.

As time goes on such a development of conditions and cir-
cumstances make us more valuable to, and dependent upon, the
industry and community of our choice. Again, such a develop-
ment destroys the opportunities of the worker to make changes
because he is not only becoming older but each day adds an
increment to the values he has already given to his employer
for which no new employer is willing to bid.

It is foolish to insist that the worker has absolute freedom of
action; therefore, as a price for the lost freedom and for the
deposit of unpaid values given by the employees during their
years of service, an increasing degree of security must be pro-
vided by industry in the form of Seniority Rights.

Is it just to take five, ten or fifteen of the best years of a per-
son's life without giving something in return, when that accumu-
lation of years of service operates to limit his opportunities any-
where else? Most certainly that person's financial status, as a
rule, has not been improved willingly by the management as a
reward for such service; therefore, we say very definitely that a

ADVANTAGES OF A WHITE-COLLAR UNION 51

Seniority Policy must be established which acknowledges the
fundamental principles involved.

t~
DON'T NURSE A GRIEVANCE

A suspended member of a union once wrote a caustic reply to
his union office regarding his suspension notice. His reason for
loss of interest in the union was that his salary was not up with
those of other persons on similar work and he felt that the union
had done nothing about it. He wanted to know why he should
pay his dues each month for a lot of stalling around rather than a
square deal from the organization.

Immediately upon receipt of his letter, union officers took up
his case, went out to talk to him personally to secure more infor-
mation. Likewise, the aggrieved member learned a great deal
through this personal contact. It so happened that his salary was
below that of persons on similar work, and that his supervisor
considered him as capable as any of the others. In addition, he
had many years of service.

Within a few days, after officers talked with local representa-
tives and supervisors, the aggrieved member was scheduled for
a substantial increase in salary.

It was not an open and shut case, but it was one deserving
consideration by all concerned. It shows that mere statement
that an increase in pay is desired is not enough. Everyone wants
that. The point here is: no one thoroughly knew the case-
neither the representative nor the officers. The member never
explained his grievance— he only nursed it.

Grievances, whether fancied or real, are things to be settled.
If you feel you have a grievance, go to your union representative
and tell him about it. He wants to know about it and will do
everything possible to see that it is corrected.

Remember this: there are limits beyond which a union cannot
go. Everybody thinks he is good. Occasionally, however, in the
eyes of his boss and many times in the opinion of his fellow
workers, he is not as good as he thinks he is. If a man has reached
the limit of his capabilities, there is not much a representative

52 WHITE COLLAR OR NOOSE?

can do to help him win promotion or an increase in salary unless
he prepares himself by additional education for the job ahead.
Do not hold this against the representative or the union. In cases
like this it is up to the individual to consider ways and means of
increasing his efficiency and value to the company.

Whether you have reached the limit of your capabilities;
whether you have reached the top of your class; whether you
have come to the red light on the road of progress for some other
reason, membership in the union is a thing to be valued. Even if
the union has never done anything for you personally, think of
the benefits you have received along with every other employee
through collective bargaining. Some of the ways in which you,
and many others have benefited because unions exist are: (1)
general salary increases; (2) holiday overtime rates; (3) salary
rate reviews; (4) night turn bonuses; (5) seniority plans; and
(6) job security, etc.

Do not nurse a grievance and if the grievance is not settled to
your liking, do not nurse a grudge. Try to realize that all com-
plaints cannot be settled to the satisfaction of everyone con-
cerned, and at least give your union credit for trying to solve
the problem. Most unions are conscientiously trying to do the
right thing. If your representative is not, remember that you
helped to elect him and must be satisfied with him until the next
election or convince a sufficient number of members in your
group or district that he should be removed.

Chapter IV
How TO ORGANIZE WHITE-COLLAR WORKERS

Before any organization can come into being there must be
some general condition of insecurity, some necessity, some ap-
pealing objective, or some unjust or irritating condition or cir-
cumstance to motivate the founders and stimulate the interest of
the prospective members. It may be the need of an impersonal
approach to management. Next, there must be very careful prep-
aration and planning by the sponsors even before the new union
is publicly announced and membership solicited. The most im-
portant feature of the preliminary structure is the selection of
sponsors who are both capable of service and interested in the
project as well as being persons commanding respect of their
associates, management, and the public. Further aims of the
organization must be carefully considered and plans made for pre-
senting them to the prospective members. Finally, a sound finan-
cial policy must be devised which will include plans for future
needs, as well as for adequate current operating expenses.

After the preliminary groundwork has been laid, there is no
need to fear reprisal from management for organizational activity.
In fact, it is distinctly advantageous to publicize the names of
your organizing committee as that lets everyone know who they
are and you are then protected against discrimination by the
National Labor Relations Act. Individuals interested in forming
an independent salaried union should contact their Regional
Director of the National Labor Relations Board for a copy of the
National Labor Relations Act and familiarize themselves with
its contents.

With the preliminaries out of the way and temporary officers
elected, the next step is to announce the organization to the
public. This important step must be as carefully planned as any

53

54 WHITE COLLAR OR NOOSE?

other, since a bad beginning or improper approach will prove
the worst kind of handicap to success. The psychology of the
prospective members must be known and analyzed and all of
the obstacles to organization must be clearly understood. Clear,
understandable and honest publicity must be prepared and dis-
tributed, then membership should be solicited in an open and
straight-forward manner.

Membership in the union should be limited to employees below
the rank of supervisor. This policy should be adopted because
obviously a supervisor's duties make him management's repre-
sentative and he must of necessity sit on management's side of
the table in any controversy. All unions in the process of or-
ganizing should adopt such a policy.

A good definition of a supervisor is "anyone spending more
than 80% of his time supervising the work of others, one who has
the right to hire or fire or the recognized right to recommend
for hiring or firing"— Fair Labor Standards Act. The new Labor
Management Relations Act of June 23, 1947, contains a much
better description of a supervisor.

Early and frequent committee and membership meetings must
be held either of small groups or of the membership as a whole
for the purpose of education and for determining the wishes of
those members in all matters concerning the activities of the
organization. No action should be taken by the officers unless
they are definitely assured that such action represents the will
of the majority. And as soon as it is possible, an organization
meeting must be held, at which permanent officers should be
elected and a Constitution and By-Laws adopted.

It is the duty of the elected representatives of the membership
to familiarize themselves with labor problems and proper pro-
cedure in handling personnel relations. Adequate information on
these subjects is available in this book and other up-to-date books
and periodicals.

As soon as temporary officers are elected and the organization
announced, the next step to be taken is that of contacting the
management of the company through the proper channels and
acquainting them with the objects and policies of the organiza-

How TO ORGANIZE 55

tion with the request that means be provided for the discussion
of mutual problems. All contact with the company management
must be scrupulously avoided up to this time and all future con-
tacts must be kept on a strictly business-like and impersonal basis
in order to avoid embarrassment to both the union and the com-
pany. This procedure is necessary in order to avoid any grounds
for charges of company interference or domination, which often
cause the downfall of independent organizations. Inexperienced
organizers, such as often are found in the independent unions,
are particularly vulnerable to company influence or domination
and therefore must carefully consider and plan each step taken
in both organization and negotiation.

Organizers are cautioned to conduct all organizational activity
off company property and not to ask for or accept from manage-
ment or supervisors any support or favors. Before labor board
certification, it is perfectly permissible to represent union mem-
bers (but only members) in dealings with management. Prob-
lems of any kind concerning members may be discussed with
management. However, problems of a general nature may be
considered by management as not coming under the jurisdiction
of the organization since it does not legally represent all em-
ployees of the particular plant or group.

This excuse may be used by management in refusing to discuss
certain subjects unless the organization has been given the stamp
of approval, in the way of certification by the Labor Board, as
sole bargaining agent for a specific group of employees. Certifi-
cation to a labor organization is similar to incorporation of a
business organization, although not with the same legal and fi-
nancial obligations, and it places them on a recognized footing
in the business and labor world.

In order to be in a position to obtain such certification, the
officers must petition the National Labor Relations Board and be
prepared to participate in an election, when ordered by the
Board. In the election, the Association must poll a majority of
the votes cast by all the employees voting, thereby proving the
right to represent the employees in the unit for which certifica-
tion was requested.

56 WHITE COLLAR OR NOOSE?

A certified labor organization, association, or union, whatever
you choose to call it, having an alert and informed group of
officers and a sound industrial relations program, as well as an
adequate financial policy, can be of immense value to both
employees and company alike.

A COMPREHENSIVE PROCEDURE TO FOLLOW FROM THE FORMATION
OF AN INDEPENDENT SALARIED OR WHITE-COLLAR UNION
TO ITS CERTIFICATION AS A BONA FIDE BARGAINING AGENT '-*
IN CHRONOLOGICAL ORDER

1. Arrange for meeting, off company property, of representa-
tive group of employees.

2. At the meeting explain purpose, aims, and advantages of an
organization. A few of the most outstanding are:

(a) to promote more harmonious employee-employer rela-
tions.

(b) To negotiate with management a grievance procedure
whereby any individual or collective problem which

affects members can be satisfactorily settled within defi-
nite time limits.

(c) To prevent injustices to members and create a greater
degree of job security.

(d) Negotiate with management a salary position classifi-
cation set-up and ranges of pay.

( e ) To conduct periodical salary rate reviews— perhaps every
six months.

(f) To negotiate with management a fair and equitable
seniority plan.

(g) To cooperate with management in all matters where
such cooperation is compatible with the union's obliga-
tion to its members.

(h) To conduct the affairs of the organization in a manner
worthy of the support of its members and command the
respect of management and the general public.

(i) To inform members on legislation and rulings affecting
their status as employees.

How TO ORGANIZE 57

( j ) To foster and develop collective thinking and cooperation
regarding problems which affect the group as well as
the individual.

3. Take secret ballot or entertain a motion on question of
whether or not those present desire to form a white-collar or
salaried organization.

4. Elect temporary officers:

(a) President

(b) Vice President

(c) Secretary and Treasurer or Secretary-Treasurer depend-
ing upon the ultimate size of the organization.

5. Choose a name for the organization.

6. Explain need for dues. The most important are:

(a) To have sufficient income to rent an office for a head-
quarters.

(b) To defray printing expense of membership cards.

(c) To defray cost of publicity materials.

(d) To enable officers to prepare and distribute literature
for the purpose of keeping members informed of activi-
ties and progress of the organization.

( e ) To build up a reserve fund for the purpose of defraying
any necessary expenses of the organization, such as hiring
an attorney or an experienced advisor, or renting a hall
for membership meetings.

(f) To enable officers to subscribe to publications or pur-
chase books and literature which will keep them in-
formed on all matters pertaining to their duties, labor
laws, and rulings affecting their members.

(g) To cover the cost of subscription to or the publishing
of an organization paper.

(h) To enable officers or elected delegates to attend con-
ferences called to discuss problems affecting members.

(i) To meet the traveling expenses and loss of income of
local officers (or those appointed by them) when it is
necessary for them to appear before the various govern-
ment agencies at Washington when legislation is being
acted upon that may adversely affect their membership.

58 WHITE COLLAR OR NOOSE?

(j) To provide funds for emergencies, such as arbitration
or mediation, which are often surprisingly expensive.

7. Establish amount of dues to be charged by vote of those
present. Also decide upon how dues will be collected and
the effective date of dues for new members. (See recom-
mendation on page 67 of this Chapter)

(a) It is suggested that the first month's dues for new mem-
bers in lieu of an initiation fee be for the month in
which they are received irrespective of the date on
which received.

8. The President should appoint a Membership Committee
consisting of not less than three members but including one
member from each different employee occupational group.

9. Determine the extent of the unit to be covered by the organi-
zation. The unit may include any or ah1 employees except
bona fide supervisors of the company regardless of the
branch or activity or the supervisor to whom a group of em-
ployees report. Employees from any specific groups may
be omitted if no interest toward the organization is shown
by those employees. However, the unit should include all
employees except supervisors in the division of the company
to be organized. In seeking certification, it is best to define
the unit which you expect to have certified by the various
occupations of the people employed therein.

10. The president should appoint a committee of not less than
three to draw up a Constitution and By-Laws for the organi-
zation to be submitted to the membership for approval be-
fore adoption. (See Chapter V, pages 78 to 88, for typical
Constitution and By-Laws).

11. The president and other elected officers should call upon an
appropriate management representative and advise him of
the formation of the union and request a schedule of periodic
meetings to discuss any problems which may arise. No
officer of the Association should contact a management
representative alone on union business. Two or more union
officers or representatives should always be present during
any discussion of affairs with management in order to avoid

How TO ORGANIZE 59

possible criticism or misunderstanding. This does not apply
to representatives or stewards when contacting immediate
supervisors.

12. The organization should decide who should constitute the
executive committee and deliniate its authority. The tem-
porary executive committee may be appointed by the presi-
dent and should include besides the elected officers, one mem-
ber from each occupational group.

13. Regulations which must be rigidly adhered to in order to
conform to the rules of the State and National Labor Rela-
tions Boards and to avoid possible involvement in charges
of company domination by a rival labor organization.

(a) Confine organizational activity to outside working hours.

(b) Hold no meetings on company property.

(c) Use no company facilities in organizational work.

(d) Permit no bona fide supervisor to take part in or to en-
courage the organization, or to attend any meetings.

(e) Solicit no members or dues during working hours.
(f)Do not coerce employees in soliciting members. Be fair,

honest and understanding of the views of others on the
subject of employees' organizations.

(g) Any officer or official delegate paid by salary who is
away from work on purely organizational work should
notify the proper company official to deduct the correct
amount from his or her salary to cover the absent time.
The organization should authorize payment, out of the
treasury, for such deduction so long as the official or
delegate is performing duties assigned by the executive
committee or as provided for in the constitution and
by-laws.

14. Activities which are permitted by law, rulings of the Labor
Boards, or precedent set by the company.

(a) Any employee group is protected in its right to organize
by the State and National Labor Relations Acts which
provide that an employer may not discriminate against
anv employee for his or her activity for or in any labor
organization. Recent court rulings permit an employer

60 WHITE COLLAR OR NOOSE?

to express his opinion on the subject of an employee
organization so long as such opinion is not expressed for
the purpose of coercing any employee and so long as it
is not followed by any acts of coercion and discrimina-
tion.

(b) An employee may comment on or answer questions
about the organization during working hours so long as
the company permits discussion of other activities, such
as golf, baseball, recreational activities, etc., during
working hours and so long as such comments are held
within due bounds of propriety and are such as to have
little effect on the employees' daily work or activity.

(c) Officers or duly appointed or elected representatives of
the organization may discuss grievances or questions of
policy, affecting members, with representatives of man-
agement on company property and during working
hours. Management is required by law to deal with the
representatives of the organization for its members at
any time after the organization is formed and before
certification as sole bargaining agent by the State or
National Labor Board.

15. The permanent organization should consist of:

(a) President

(b) Vice President

(c) Secretary and Treasurer or Secretary-Treasurer

(d) District Representatives or Division Stewards elected
from each major occupational unit.

(e) An Executive Committee usually composed of the
elected officers and District Representatives or Division
Stewards.

(f) Group Representatives or Group Stewards elected from
and by the employees in each small occupational group.
These representatives should be entirely familiar with the
employees in and the work of the group which they rep-
resent, more so than is possible for the District Represent-
ative who is elected by the members in a large divisional
activity.

How TO ORGANIZE 61

( g ) Officers ( President, Vice President, Secretary, Treasurer )
are elected by the entire membership while District
Representatives or Division Stewards are elected by the
members in a major occupational group. Group repre-
sentatives or Group Stewards are elected by the mem-
bers of a small occupational group.

(h) A Negotiating Committee, consisting of the President
and Vice President, and one or more members of the
Executive Committee, should be elected by the Execu-
tive Committee. This Negotiating Committee should
present all general subjects for discussion and negotia-
tion to the authorized management representatives.

16. Handling of grievances or complaints:

(a) Individual or collective problems or grievances should
be prepared by the group representative in writing on
the grievance form adopted by the union and presented
to the first immediate supervisor of the employee or em-
ployees involved.

( b ) The district representative involved may be called upon
for assistance and guidance in handling the negotiation
if the group representative or steward so desires.

(c) If the problem is not settled to the satisfaction of the
respective union representatives by the immediate super-
visor within a short time (preferably two days), the

grievance should be presented to the next higher super-
visor with a time limit not exceeding four days.

(d) If the grievance is not satisfactorily settled by the im-
mediate supervisor or the supervisor next in authority,
it should be presented to the Executive Committee for
study and if further action is deemed necessary, it
should be turned over to the Negotiating Committee for
discussion with the Industrial Relations representatives.

17. Procedure to be followed for certification as sole bargaining
agent by the State or National Labor Relations Board for all
employees in the unit.

(a) When a representative membership (approximately 50$)
of those eligible in the unit has been obtained, the Presi-

62 WHITE COLLAR OR NOOSE?

dent should write a letter to the management repre-
sentative requesting that the organization be recognized
as the "sole bargaining agent" for all the employees
(non supervisory) in the unit. The bounds of the unit
should be definitely stated in the letter. Management's
reply should be in writing and will probably be to the
effect that Management cannot comply until the organi-
zation has been certified by the State or National Labor
Relations Board.

(b) A refusal by Management to recognize the organization
as "sole bargaining agent" should be followed by the
organization officers filing a petition for certification with
the State or National Labor Relations Board. If the
company is engaged in intra-state commerce, the peti-
tion is filed with the State National Labor Relations
Board; if engaged in inter-state commerce, the petition
should be filed with the Regional Office of the National
Labor Relations Board.

(c) Filing of the petition for certification will be followed
by an informal hearing called by the Board at which
representatives of management, officers of the organiza-
tion and representatives of any other interested labor
organizations will present their views before an attorney
of the Board. The officers who file the petition, as a rule,
will be required to give a history of the organization,
state any affiliation and proof that they are officers of
a bona fide labor organization which is duly constituted,
holds meetings of members, collects dues and has rep-
resentatives which represent the employees before man-
agement in any questions affecting wages, hours, and
working conditions. They will be required to state
whether or not any other labor organization has an
interest in any of the employees which the organization
wishes to represent in the unit. Employee membership,
if such be known, in any other labor organization, usu-
ally is the only cause for interest of the other organiza-
tion.

How TO ORGANIZE 63

(d) If the other interested labor organization or manage-
ment objects to the petition as to the bounds of the unit,
or if the other organization intervenes by claiming mem-
bership, and such objections or interventions are recog-
nized by the Board attorney, a formal hearing will be
ordered at which time the interested parties may present
witnesses and arguments to sustain their positions. The
labor board will supply counsel for the organization if

counsel is desired or the organization may retain an
attorney of their own choosing. Following the formal
hearing the labor board in Washington will hand down
a decision on the basis of the evidence presented and,
as a rule, an election among the employees affected is
ordered.

(e) If the informal hearing results in no major objection by
management or any interested labor organization, the
Board attorney will call upon the organization to sub-
mit their signed membership cards for examination. In
addition, the company will be asked to submit to the
Board a list of all eligible employees in the proposed
bargaining unit. This list will be made available to the
officers of the organization for check. However, the mem-
bership cards will be regarded by the Board as confi-
dential information and will not be made available to
management or to any other labor organization. The
cards will be returned to the organization officials after
they have been checked with the list of eligible em-
ployees.

(f) If the list of names submitted by management does not
contain some of the names for which the organization
presents membership cards, an understanding should be
reached and these names added to the list of eligible
voters which will be posted on the company bulletin
boards prior to any election. If management objects to
adding these names to the list of eligible voters, the
names may be included under protest and these em-
ployees will vote on a special ballot which will be con-

64 WHITE COLLAR OR NOOSE?

sidered separately in the event of a close election. Eligi-
bility may be decided by the Board after the election.

(g) It may not always be necessary to conduct an election,
because if management is willing to accept a "card
check," the Board will determine if the organization rep-
resents a substantial number of employees, and the
Board may order certification on the basis of the card
check (if more than 50% of the employees are shown to
be members ) . However, an election is generally ordered,
said election to be held as agreed upon by the parties
concerned and under the supervision of representatives
of the Board. The Board will prepare notices of the
election which must be posted on company bulletin
boards by the management several days prior to the
actual date of the election. A list of eligible voters will
also be posted at the same time. Ballots will be prepared
and supplied by the Board, who will also supply the
voting facilities if necessary. Unless some other labor
organization has submitted proof of membership and
requests to appear on the ballot, the ballot will simply
provide means for an employee to express his preference
for or against the original petitioning organization as his
bargaining agent with management.

(h) An election for bargaining agent may be held on com-
pany property without prejudicing the organization in-
volved, if agreed upon between management, the or-
ganization representatives, and the Board representa-
tives.

(i) Both the organization and company management may
have "watchers" at the polls on the day of the election.
However, the organization will be expected to supply
the necessary checkers and assistants to conduct the
election. The Board representatives will be present only
to see that the election is conducted according to rules.
Ballots will be counted immediately following closing of
the polls. The organization representatives will count the
ballots and certify the tally sheets.

How TO ORGANIZE 65

(j) The organization representatives participating in the
conduction of the election, if required to lose time from
work, should be paid by the organization for their time
and the company should be notified in writing of those
persons who are to be "docked" for pay while serving
on election boards.

(k) Following the election, the Regional Office of the Board
will submit a report of the result of the election to Head-
quarters in Washington. Approximately thirty days fol-
lowing the day of the election, both the company and
the organization will be notified of the certification pro-
vided the organization received a majority of the votes
cast.
18. Activity following certification:

(a) After certification as "sole Bargaining agent" the officers
of the organization should actively engage in any col-
lective bargaining matters affecting all employees in the
bargaining unit. Management must bargain with the
designated representative for any and all problems
presented.

(b) Bargaining must proceed in good faith on both sides
with an honest desire to reach an agreement on all sub-
jects. An attitude of understanding and fairness must
prevail at all times. Both parties must make an honest
effort to understand the other person's point of view
and be honest and fair in all dealings.

(c) Membership meetings should be held periodically to
inform the members of the activities of the organization
and in order to permit the members to express opinions
on policy and to guide by motions, etc., the activities
of the union.

PITFALLS TO BE AVOIDED IN ORGANIZATIONAL PROCEDURE

Charge of "company domination" is one of the major pitfalls to
be avoided by independent salaried unions. The large interna-
tional unions look upon independents with scorn and call them

66 WHITE COLLAR OR NOOSE?

"company unions." They will usually do everything they can to
have independents disbanded. Within the past few years over
1,000 independent unions were ordered "disestablished" by the
Labor Board because they were charged with company domina-
tion by the large internationals. It is, of course, ridiculous to
even think that more than 1,000 unions with their thousands of
members submitted to company domination. A few of them
probably were dominated and deserved to be disestablished but
the others were penalized for making a few mistakes that would
have not been made by more experienced unionists. Some good
rules to follow are listed below:

Do not elect in an official capacity any persons who were or
are connected with existing or former employees-employer rep-
resentation groups.

Draw up your own Constitution and By-Laws. (See Chapter
V, Pages 78 to 88 for Constitution and By-Laws of the Associa-
tion of Westinghouse Salaried Employees).

Under no condition permit active support and assistance by
supervisors and other company officials. Insist that all company
officials refrain from coercing or intimidating any of the employ-
ees you are trying to organize.

Conduct negotiations for your members only on an individual
basis until you are certified by the labor board as a bona fide
bargaining agent.

Insist upon no interference with the right of the employees
to organize and to join a union of their own choice.

If your organization is a successor to a company dominated
predecessor insist that the company post notices withdrawing
recognition of the predecessor and renouncing any connection
with your organization.

Accept no assistance in any form from the company in financ-
ing your organization.

Until certified by the Labor Board, do not solicit members or
dues on company time. After certification it is perfectly proper
to do so on company property at lunch time or before or after
working hours.

Do not restrict (in your constitution) choice of organization

How TO ORGANIZE 67

representatives to employees of the company. This does not mean
that you must employ an outsider to run your union but such a
clause in your constitution is a good safeguard for future expan-
sion or legal advice.

After certification negotiate a written contract. Do not attempt
to do so until certified by the Labor Board.

If employer persists in interfering, complain immediately to
the local office of the Labor Board.

Do not permit your organization to lapse into inactivity. Be
an aggressive group determined to fight for your just rights.

Do not try to operate without dues. An organization is no
organization at all in the eyes of the Labor Board if dues are
not collected. Do not make the mistake of charging too small a
fee for dues, as many an independent union has gone on the
rocks because they tried to operate on a few pennies per month
dues fee. A fee of $1.50 per month per member is advisable.

Chapter V
HISTORY OF A SUCCESSFUL SALARIED UNION

ORIGIN AND HISTORY

This history was written after 8 years of experience gained
through actually facing and solving the innumerable problems
with which embryonic leaders in the field of independent sal-
aried unions are confronted. It has to do with the formation and
early development of the Association of Westinghouse Salaried
Employees, an independent union of salaried workers of the
Westinghouse Electric Corporation, unaffiliated with any of the
large international unions. Therefore not having any financial
backing, the members of the organizing committee contributed
$5 each to pay the Association's first month's rent for its new
headquarters and for the printing and distribution of pamphlets
announcing the opening drive to organize the salaried employees
of the main plant of the Westinghouse Electric Corporation.

The idea of a bargaining unit for Westinghouse salaried em-
ployees was conceived in July, 1938.

Beginning the drive for organization, an organizing committee
of eleven Westinghouse employees, which had been formed
August 1, 1938, opened the Association office at 102 Cable
Avenue, East Pittsburgh, Pennsylvania, in September, and passed
out pamphlets on the street.

The Association maintained headquarters at the above address
near the main entrance of the Westinghouse Company. Here
meetings were held, dues collections were made, and the busi-
ness for running the organization was conducted. The office
space has since been enlarged so that now the large outer room
of the office is furnished with facilities for the recreation of mem-
bers. Labor literature, current publications, minutes of meetings
in mimeographed form, and notices of the organization are

68

A SUCCESSFUL SALARIED UNION 69

available. On file are also information on labor laws, analyses;
Labor Relations Reporter and Wages and Hours Reporter, pub-
lications containing complete reports of national labor legislation
and enforcement, published by the Bureau of National Affairs
at Washington, D. C. Books and other literature on collective
bargaining are also available.

Membership in the Association was open to salaried employees
and other clerical and technical employees, both men and women,
in the Pittsburgh administrative district of the Westinghouse
Electric Corporation. Excluded from membership were those
employees who were in bona fide supervisory positions and who
represented the Company in its relations with the employees.
Employees were eligible to join the Association as soon as they
came into the unit represented by the A.W.S.E.

During the same month, August, 1938, the group arranged with
local Westinghouse management a definite weekly schedule for
discussing problems for its membership only. Issuing two more
pamphlets during October, the Association became large enough
by December to hold its first annual membership meeting. Con-
stitution, By-Laws,* and the name, Association of Westinghouse
Salaried Employees, were adopted at this meeting on December
1, 1938. During the month, members elected their officers by
mail ballot.

Association of Westinghouse Salaried Employees representa-
tives met with representatives from the Sharon and Derry West-
inghouse employees' associations for the first time at an informal
meeting in Pittsburgh, Pa., in February, 1939.

Meanwhile, Association members decided to publish "The
Regulator" as the official publication of the A.W.S.E. With the
first issue appearing on February 28, 1939, and the second in
April, 1939, "The Regulator" was issued twice as the publication

* The Constitution and By-Laws of the Association of Westinghouse
Salaried Employees have been made a part of this Chapter and will be
found on Page 78 to Page 88. No claim is made that this Constitution and
By-Laws are the most outstanding ever developed, but they can serve as an
effective guide for the establishment of a Constitution and By-Laws in other
independent white-collar unions.

70 WHITE COLLAR OR NOOSE?

of the Association, but starting in May, 1939, the paper was spon-
sored by the Federation of Westinghouse Independent Salaried
Unions. f The Federation had been formed during the previous
month when A.W.S.E. representatives met for the second time
with delegates from Sharon and Derry and also with delegates
from the South Philadelphia Association.

During the first few months of the Association's existence, the
matters of discontinuing furloughs and restoration of a ten per
cent salary cut (effected June 1, 1938) were taken up. Furlough
days were eliminated by January 1, 1939, and the restoration of
the salary cut was effected June 1, 1939.

Having obtained a majority of the eligible employees as mem-
bers, the Association on April 22, 1939, filed application with the
National Labor Relations Board for sole bargaining representa-
tion of salaried employee groups in the Westinghouse plants at
East Pittsburgh, Homewood, Trafford, and Linhart.

In August, a preliminary hearing on the Association's petition
took place in the National Labor Relation Board Offices in Pitts-
burgh, and in October, 1939, a formal hearing was held before
a Trial Examiner. These events were followed by the Association
officers appearing in Washington before the Labor Board on
December 7 for presentation of the Association's case. Several
weeks later on January 19, 1940, the Board ordered an election
to be held February 15 among all salaried employees except
those shop groups including inspectors, production clerks, and
power house operators. So that these groups also might vote in
the election, the Association's Attorney filed an appeal to this
order. The Board, however, directed the election as scheduled.
With 2,217 persons voting, a total of 2,136 voted to be repre-
sented by the Association as sole bargaining agent while only 81
voted "no."

t In May, 1939, the Federation was known as the "Federation of West-
inghouse Employee Associations." See Chapter VI, Page 89, for a complete
history of the Federation, which includes the reason for this change in name.
The relationship of the Association of Westinghouse Salaried Employees to
the Federation of Westinghouse Independent Salaried Unions is that of the
largest and parent affiliate.

A SUCCESSFUL SALARIED UNION 71

On April 13, 1940, the National Labor Relations Board ordered
an election among the employees excluded from the first election.
This election, which took place on May 7, resulted in 460 voting
for the Association and 79 against A.W.S.E. representation. This
made a total vote of 2,756 with 2,596 voting for representation
by the Association and 160 voting in the negative, or a favorable
vote of 16 to 1. Certification by the Board was received May 22,
1940.

After certification as the sole bargaining agent for Westing-
house salaried employees, the Association began active negotia-
tions for policy agreements with Management on June 18, 1940.
Among the first agreements obtained were those on rate reviews
for salaried employees, a hospital insurance program, negotiation
procedure, and changes in the vacation schedule.

The Association of Westinghouse Salaried Employees nego-
tiated 20 more overall policy agreements from the latter part of
1940 through the first half of 1942, among which were included
a general salary increase ($18 a month retroactive to April 8,
1941), transfer of white-collar hourly employees to salary, night
turn bonus, revised salary review procedure, scheduling of over-
time, military service policies, transfers and dismissals, straight
time pay for hours worked in excess of schedule up to 40 (after
which overtime rules apply), irregular hours pass, and overtime-
rated pay for Sunday and holidays. A.W.S.E. representatives and
management conducted the first salary review during the sum-
mer and fall of 1940, the second during July and August, 1941, a
special review for 400 forty-hour employees in September, 1941,
the third regular review in January and February of 1942, and
the fourth in October, 1942. From this date on, reviews have been
conducted semi-annually.

The most controversial issue between management and the
Association rose over the matter of adjusting the salaries of 400
regular 40-hour employees who were out of line with persons on
similar jobs who were 37/2-hour employees put on a 40-hour
schedule with a proportionate salary increase. Revision of the
salary keysheet to reflect the increase from 37/z-hours to 40-hours
also was sought at the same time. Five weeks of negotiating and

72 WHITE COLLAR OR NOOSE?

a month's deadlock took place, and finally a one-day protest
walkout was set for August 11, 1941. The walkout, however, was
cancelled, when the Association was granted its requests just a
few minutes before the time set for the protest demonstration.

Publication of the monthly "A.W.S.E. Reporter" had begun in
April, 1941. Issued monthly, the "Reporter" contains news of
various committee and group meetings, news of negotiations
with management, and general news of the Association. The
"Reporter" is issued at the end of the month and is mailed to
the members' home addresses.

The membership in the organization has steadily and satisfac-
torily grown. It is interesting to consider why. Probably the
underlying cause is the unstable and uncertain economic condi-
tion of the country, and of the world as a whole, which has given
rise to a feeling of insecurity and fear of what the future may
bring. The 10% salary reduction of June 1, 1938, forcibly brought
home to all employees their individual helplessness. Discrimina-
tory furloughing and the fear that furloughing of salaried em-
ployees with every fluctuation in load was becoming a definite
part of company policy was also an influence. This practice, in-
troduced when possibly justified by conditions, will, if per-
petuated, undermine morale, personal initiative, and the indi-
vidual responsibility which the salary system fosters. These fac-
tors, however important, are not sufficient alone to account for
the growth. The tactful and responsible functioning of the or-
ganization in its relations with the company, the freedom from
file suspicion of racketeering, the democracy, integrity, and re-
sponsibility of the organization in its relation with its members,
have undoubtedly been of primary importance. Continuation of
growth until all salaried employees are embraced is to be ex-
pected. The Association conducts a membership drive each year
to bring into the organization those employees in the units it
represents who are not yet members.

On February 26, 1942, the Federation opened negotiations for
a contract pattern which each affiliated Association could use as
a basis in obtaining a local contract. Throughout the next few
months, A.W.S.E. negotiated for its contract. Settlement on wage

A SUCCESSFUL SALARIED UNION 73

provisions was held up pending national trends, but was finally
reached August 12, 1942, when a general increase of 5.5 cents
an hour— retroactive to June 1, 1942, and keysheet revision were
granted.

The Association of Westinghouse Salaried Employees signed
its first contract with the Westinghouse Company at its East
Pittsburgh Plant on August 31, 1942. The Federation master
pattern contract * was used as a basis and the contract embodied
all of the agreements negotiated between 1940 and 1942. Con-
tracts with management of each of the other three bargaining
units (Derry, Research, Pittsburgh District Office) were also
signed. The contracts cover all agreements on policy between
the Association and the Company, including recognition, wages
and hours, seniority, holidays, vacations, job classification, over-
time, and mutual arbitration.

Certified as the collective bargaining representative for the
non-supervisory salaried employees, the Association is an inde-
pendent labor union, affiliated with other similar unions in the
Federation of Westinghouse Independent Salaried Unions.

PURPOSES, OBJECTS, AND BENEFITS

The Association of Westinghouse Salaried Employees was or-
ganized to provide a legal and accredited means by which the
salaried employees could bargain collectively with management.
The Association promotes the industrial and economic welfare
of those it represents. Its aims and functions further include:

1. Promoting more harmonious employee-employer relations.

2. Negotiating with Management all individual grievances and
all problems of a general nature which concern members until
such problems are satisfactorily settled.

*The Federation of Westinghouse Independent Salaried Unions has
negotiated four master contracts since August 31, 1942, and for the infor-
mation and guidance of the readers, the author is reprinting the latest Master
Agreement, dated April 1, 1947, and one of the 12 latest local A.W.S.E.
Supplements covering seniority on Page 176 to 180, Chapter 7.

74 WHITE COLLAR OR NOOSE?

3. Preventing injustices to its members, thereby creating a
greater degree of job security.

4. Reviewing salary job classifications, established by manage-
ment, prior to their being made effective.

5. Conducting semi-annual salary rate reviews.

6. Cooperating with management in establishing a fair and
equitable seniority plan.

7. Cooperating with management in all matters where such
cooperation is compatible with the Association's obligation to its
members.

8. Conducting the affairs of the A.W.S.E. in a manner worthy
of the support of its members and commanding the respect of
management and the general public.

9. Informing members on legislation and rulings affecting their
status as employees.

10. Fostering and developing collective thinking and coopera-
tion regarding problems which affect the group as well as the
individual.

11. Providing a means for directing thinking along lines of
labor's future responsibility in industry.

12. Establishing means for cooperative action with other West-
inghouse independent unions.

During the war period, there was enthusiastic cooperation
with management in boosting output of war material. The Labor-
Management Committee and subcommittees were the chief
media.

Some of the things which the organization does for the benefit
of its members:

1. Five representatives and three officers meet with manage-
ment weekly to discuss problems and conduct negotiations affect-
ing wages, hours, and working conditions.

2. Nineteen committees are working on problems and prepar-
ing data on negotiations which affect each member personally,
with the idea of continually bettering the members' relations with
the company.

A SUCCESSFUL SALARIED UNION 75

3. A means is now in existence whereby an individual's griev-
ance will be settled even if this necessitates carrying it aU the
way up to top management.

4. Working relations, built on mutual respect and a sincere
desire for cooperation, have been established between district
representatives and practically every department head in the
respective local bargaining unit area.

5. Through Association efforts several employees are on the
company's roll today who would not be there had the union not
discussed their cases with management. As proof of the soundness
of Association judgment and the extent of cooperation received
from management, some of those persons have been granted sal-
ary increases through rate reviews and some have better positions
today because the Association interceded to prevent a miscarriage
of justice.

6. Definite promotion and seniority plans have been estab-
lished.

7. All salaried positions are now classified uniformly and
clearly, and salary rate ranges have been established. By agree-
ment with management, every employee is notified of his classi-
fication and salary range at the time of any change.

8. Twice each year, Association representatives and depart-
ment heads review all salaries with the intention of seeing that
each individual is properly classified and that his salary reflects
his ability to perform the requirements of his position.

9. Twenty-two other Westinghouse independent employees'
associations have already been formed with the assistance of the
officers of the Federation of Westinghouse Independent Salaried
Unions with which the A.W.S.E. is affiliated.

10. The A.W.S.E. is kept advised on new and changed labor
laws by means of the most reliable source of information avail-
able—such as Prentice Hall B.N.A., and R.I.A., weekly publica-
tions received from Washington.

11. The Association is responsible for having the Pittsburgh
Plan (Blue Cross) for hospitalization insurance, which is be-
lieved to be superior to any available plan of comparable cost.

12. The Association has negotiated seven salary keysheets

76 WHITE COLLAR OR NOOSE?

which have salary ranges considerably higher than the first key-
sheet that was being used when the organization came into
existence. The average salary, due to general increases, rate
reviews, and these keysheets has been increased by over fifty
per cent in less than six years.

13. Further guaranteeing the employees' rights are the Local
Supplements to the Master Contract.

None of these things existed for salaried employees at East
Pittsburgh prior to September, 1938, when the Association of
Westinghouse Salaried Employees was organized.

ORGANIZATIONAL STRUCTURE

For convenience in representation, the Association is divided into
23 districts and each district is subdivided into a number of
groups, making a total of 180 group representatives within these
respective districts. A district is generally composed of the em-
ployees in a particular operating division or department. The
group within the district is a number of employees on a similar
type of work, such as engineers or draftsmen. Each member's
district and group number is indicated on his membershhip card.

The general membership, group representatives, district rep-
resentatives, committees, and officers make up the structure of
the organization.

Bargaining is handled first through the group representative,
then district representative, Executive Committee, and Nego-
tiating Committee. Representing a group of members in a similar
type of work within one district, the group representative settles
or assists in settling grievances at the level of origin. If the group
representative cannot settle the problem, he transmits it to the dis-
trict representative for discussion with the department manager.
The group representative also distributes news and information
among the members of his group.

The district representative, overseeing several group repre-
sentatives, and a large portion of the membership, has two main
functions: (1) he serves as a member of the Executive Commit-

A SUCCESSFUL SALARIED UNION 77

tee, and (2) he presents grievances within his district to the
manager of the department involved. If a problem cannot be
settled here the grievance is referred to the Executive Committee.
One of the functions of this committee is to consider all unsettled
grievances referred to it by district representatives, and to de-
termine the necessity for turning a problem over to the Negotiat-
ing Committee for discussion with management. Besides this
work, the Executive Committee formulates policy for the Asso-
ciation, conducts all the business, and approves all the expendi-
tures of the organization.

The Executive Committee is composed of the officers, the
junior past president of the Association and the 23 district rep-
resentatives. Group representatives may attend Executive Com-
mittee meetings, introduce problems and speak on them, but if
motions are necessary they must be made, seconded and voted
on by members of the Executive Committee only.

Working under the direction of the Executive Committee, the
Negotiating Committee meets each week with management and
conducts all the bargaining for the Association. Members of this
committee are the president, both vice presidents, and five people
elected by the Executive Committee. Included with the nego-
tiating group can be the interested district or group representa-
tive.

Officers of the Association direct and coordinate the work and
act in official capacity for the organization. Assisting the officers
is an advisory committee composed of four members of the
Executive Committee in addition to the Association president
and two vice presidents. The committee meets on the day of the
Executive Committee meeting and assists in planning the business
for the meeting.

Various other functions of the Association are performed by
regular and special committees whose titles are self-explanatory
as to their functions. These are: Executive, Negotiating, Advisory,
Grievance Clearance, Membership, Position Evaluation, Liaison,
Statistical, Post War Planning, Pension & Retirement, Educa-
tional, Employment, Legislative, Review Scheduling, Auditing,
Editorial, Quarterly Meeting, Constitutional, and Social.

78 WHITE COLLAR OR NOOSE?

A.W.S.E. CONSTITUTION AND BY-LAWS WITH AMENDMENTS

As previously stated in the footnote on Page 69 of this Chapter,
it is not claimed that this Constitution and By-Laws are the most
outstanding ever developed, but it is felt that they can serve as
a guide to other white-collar workers who are contemplating the
formation of an independent organization.

ARTICLE No. I— Name

The name of the organization shall be known as the "Assocciation
of Westinghouse Salaried Employees."

ARTICLE No. 2- Object

The Association of Westinghouse Salaried Employees is organized
to provide a legal and accredited means for collecting bargaining
and for the promotion of the industrial, economic and social
welfare of its members.

ARTICLE No. 3— Qualification of Members

Section 1. The Association shall be composed of all salaried em-
ployees and other clerical and technical employees of the West-
inghouse Electric Corporation in the Pittsburgh Administrative
district, both men and women, who shall comply with the rules
and regulations of the Association, except those who spend fifty
per cent (50%) of their time in supervisory capacity or who rep-
resent the Company in its relations with the employees.

Section 2. Associate Membership: Any member who, due to
change of employment status, or absence from work due to sick-
ness or layoff, becomes ineligible for full membership, and any
salaried employee of the Westinghouse Electric Corporation not
otherwise eligible, except those in a supervisory capacity, may
become an associate member. An Associate Member has all the
privileges of a member except the right to vote or hold office.

A SUCCESSFUL SALARIED UNION 79

ARTICLE No. 4— Officers and Their Election

Section 1. The officers shall be President, First and Second Vice
Presidents, Secretary-Treasurer.

Section 2. The President, Vice Presidents, Secretary-Treasurei
and representatives shall be elected for one year.

Section 3. The Executive Committee shall consist of the Presi-
dent, First and Second Vice Presidents, Secretary-Treasurer, Dis-
trict Representatives, and the Junior Past President.

Section 4. The Executive Committee shall be the governing
body and direct the management of the affairs of the organization.

Section 5. The Executive Committee shall meet at least once
each month and one-third of the membership of this Committee
shall represent a quorum.

Section 6. Special meetings of the Executive Committee can be
called at the discretion of the President or upon the request of
three committee members.

Section 7. There shall be an Advisory Committee of five mem-
bers appointed by the President, who shall act as Chairman, with
approval of the Executive Committee, who shall be subject to
call by the President for discussion of problems of the Associa-
tion.

Section 8. In any operating division consisting of two or more
districts, the District Representatives shall elect one of their num-
ber as Division Representative who shall maintain familiarity
with all negotiations within his division, and take part in all nego-
tiations with the division manager and other negotiations in the
division as required.

Section 9. Roberts Rules of Order shall govern the procedure
in all meetings of the Association and of the Executive Committee.

ARTICLE No. 4- A— Nomination and Election of Officers

Section 1. Nominations for President, First and Second Vice-
Presidents, and Secretary-Treasurer, only, shall be made at the
annual meeting.

Section 2. The nominations for District and alternate District

80 WHITE COLLAR OR NOOSE?

Representative shall be made in writing by not less than five (5)
members, in good standing, of the district and shall include writ-
ten consent of the nominee to serve.

The nominations for Group and Alternate Group Representa-
tive shall be made in writing by not less than three ( 3 ) members,
in good standing, of the group and shall include written consent
of the nominee to serve.

These nominations shall be presented to the Executive Com-
mittee before the annual meeting. In case of absence of such
nominations in any district or group, the incumbent shall be
automatically nominated.

There shall be one District and Alternate District Representa-
tive for the central office workers in each apparatus division, and
one District and Alternate District Representative for each dis-
trict of shop salary workers.

Section 3. Election of President, First and Second Vice Presi-
dents, and Secretary-Treasurer, District and Alternate District
Representatives, Group and Alternate Group Representatives,
shall be by suitable secret mailed ballot. The vice-presidential
nominee receiving the largest number of votes, shall be the First
Vice President. The nominee receiving the next largest number
of votes shall be the Second Vice President.

Section 4. The ballot shall be distributed to members in good
standing, as of the date of the Annual Meeting. No member
joining or putting themselves in good standing after the Annual
Meeting will be entitled to a ballot for that year. The ballot for
Group and Alternate Group Representatives shall be separate
from the main part of the ballot. Ballots shall be mailed within
two weeks after the Annual meeting with return double envelope
to be used by election committee for check-off.

Section 5. The poll shall be closed twenty-eight days after the
annual meeting.

Section 6. A Board of five members shall be appointed by the
Executive Committee to prepare, distribute and to count ballots
and post names of elected officers.

Section 7. The term of such elected officers shall begin on the
first day of January, following the election.

A SUCCESSFUL SALARIED UNION 81

ARTICLE No. 4-B— Vacancies

Section 1. If a vacancy occurs in the office of President, the
First Vice President shall take his place. The Second Vice Presi-
dent then takes the place of the First Vice President.

Section 2. If a vacancy occurs in the office of Second Vice
President or Secretary-Treasurer, this shall be filled by a vote of
the Executive Committee.

Section 3. Any vacancies among the District Representatives
on the Executive Committee shall be filled by appointment by
the Executive Committee, subject to the approval of two-thirds
of the Group Representatives in that District. The new repre-
sentative shall serve for the unexpired term of the officer he
succeeds.

ARTICLE No. 4-C— Compensation of Officers

Section 1. All officers of the Association shall serve without com-
pensation except the President * who will receive from the Asso-
ciation the difference between what he would normally receive
from the Company and that actually received from the Company
for negotiations, plus 20% added to the total amount.

The Executive Committee shall be authorized to determine
each year whether or not finances are sufficient to continue the
practice, and payment or discontinuance of payment shall be left
to the discretion of the committee.

Section 2. The Executive Committee may at their discretion
employ stenographic and secretarial help as required to conduct
the business of the Association. The amount expended for salaries
of such help shall not average more than twenty (20) cents per
member, per month.

ARTICLE No. 5— Negotiating Committee

The Negotiating Committee shall consist of the President, First
and Second Vice Presidents and one, or more, additional members
to be elected by the Executive Committee.

* This portion of the Constitution was amended in 1945 to provide
compensation for a full time president.

82 WHITE COLLAR OR NOOSE?

ARTICLE No. 5-A— Exception for Special Cases

Section 1. In special cases this committee may be accompanied
by the elected representative of a District when such District is
involved and the Committee requests his presence.

Section 2. Where special talent is required, the President shall
have authority to procure same, subject to approval of the Ex-
ecutive Committee.

ARTICLE No. 5-B— Functions of Negotiating Committee

This Committee will handle all negotiations with the manage-
ment of the Westinghouse Company upon instructions from the
Executive Committee, as established by the By-Laws.

ARTICLE No. 6— Meetings of the Association

Section 1. A regular annual meeting of the Association shall be
held on the first Friday of November of each year at the hour and
place designated by the Executive Committee.

Section 2. Notice of such meeting shall be given by adequate
publicity at least five days prior to the meeting.

Section 3. Special meetings of the members may be held at any
time upon call of the President or by call of the majority of the
Executive Committee or at any time that fifty (50) members
of the Association shall make a demand in writing upon the
Secretary for such meeting.

Section 4. Notice of such meetings shall be given in the same
manner as the notice of the annual meeting of the Association and
such notice shall state the purpose of the special meeting.

Section 5. No other business, except that for which the meet-
ing has been called, shall be transacted.

SECTION 6. When matters of a confidential nature are to be
considered, the President may call a closed meeting, which only
members having the right to vote may attend.

A SUCCESSFUL SALARIED UNION 83

ARTICLE No. 7— How to Amend Constitution

Section 1. An amendment to the Constitution may be proposed by
any member if submitted in writing to the Executive Committee
and endorsed by fifty members, or by the Executive Committee.
The Executive Committee shall call a regular meeting for con-
sideration of the amendment, within sixty days from the time of
receipt of the proposed amendment by the Committee.

Section 2. The amendment must be quoted in the Call for
special meeting and the Call must be issued to the members
ten days prior to the date established for this meeting.

Section 3. An amendment, to become effective, must be ap-
proved by two-thirds of the members present at such special
meeting.

ARTICLE No. 8— Drastic Action

Section 1. Should any drastic action ever be necessary such as a
call for a strike, such action shall be voted on by the membership
by secret ballot in writing. The Executive Committee shall pro-
vide the method of taking such a vote.

Section 2. No general strike call shall ever be issued unless such
action shall be voted on by the membership by secret ballot, in
writing. The Executive Committee shall provide the method of
taking such a vote.

Section 3. No general strike call shall ever be issued unless
such call shall have been approved by a two-thirds vote of the
entire membership.

Section 4. The President, First and Second Vice Presidents and
Secretary-Treasurer may be recalled on vote of two-thirds of
the membership of the Association. A petition calling for such a
re-call of election shall be signed by not less than twenty-five
per cent of the membership. A District or Group Representative
or their Alternates, may be re-called on vote of two-thirds of
the membership of the District or Group. A petition for such a
re-call shall be signed by not less than twenty-five per cent of
the membership of the District or Group. The re-call shall be

84 WHITE COLLAR OR NOOSE?

carried on by secret ballot in the same manner as a regular elec-
tion. Before a re-call ballot is taken the representative is en-
titled to a hearing before the Executive Committee.

BY-LAWS

Headquarters. The Association shall maintain a suitable head-
quarters or mailing address as a means of contacting the officers.
Said headquarters to be within the borough of East Pittsburgh
or Turtle Creek, Allegheny County, Pennsylvania.

Official Action. All acts of the organization shall be in the name
of "Association of Westinghouse Salaried Employees" and signed
by the President and attested to by the Secretary-Treasurer. No
political candidate or political party shall be endorsed by the
Association.

Membership to Continue.— Until the member be expelled ac-
cording to the rules hereinafter set forth, or until such member
gives notice in writing to the Secretary, of his resignation.

Rules for Suspension of Membership. A member may be sus-
pended if- (1) his dues are in arrears in excess of three months;
(2) his status of employment makes him ineligible due to super-
visory capacity. A member who is subject to suspension shall not
be considered in good standing for voting purposes, nor eligible
for nomination to office.

When a member has resigned or been suspended due to non-
payment of dues he shall be reinstated to membership upon pay-
ment of dues in arrears at the time of his resignation or sus-
pension.

Conduct. If the conduct of any member, except elected officers,
shall appear to the Executive Committee to be in willful violation
or disregard of the rules and regulations of the Association or
prejudicial to its interests, the Executive Committee may upon
affirmative vote of two-thirds of the entire committee, suspend
or expel such member provided that before such action, a written
copy of charges shall be served upon him and opportunity given
him to be heard. Such expelled or suspended member may be
reinstated by a two-third vote of the Executive Committee, or by
a majority vote at a membership meeting.

A SUCCESSFUL SALARIED UNION 85

Voting— Quorum. The presence of not less than 10% of the
Association members shall constitute a quorum for doing business
at any regular or special meeting of the Association, and a major-
ity of those present shall be sufficient to pass any resolution,
except where drastic action (described under Constitution) is to
be considered.

Dues* The dues for all men shall be one dollar ($1.00) a
month, or $12.00 a year in lump sum paid in advance. Dues for
women shall be seventy-five cents ( .75 ) a month, or $9.00 a year
in a lump sum paid in advance. Method of dues payment shall
be confined to voluntary monthly payroll deductions and advance
yearly payments.

Dues for Associate members shall be fixed by the Executive
Committee.

Dues: Past Presidents of the Association shall retain full mem-
bership in the Association as long as eligible for membership and
shall not be required to pay dues.

Dues may be suspended temporarily or reduced at the discre-
tion of the Executive Committee, if sufficient surplus accrues to
warrant such change. Dues paid in advance will be extended or
properly credited for the duration of such change in dues.

Motions or resolutions providing for increased dues must be
adopted by majority referendum vote. The ballots shall plainly
explain the necessity for increased revenue.

Finance Committee. A finance committee shall be appointed
by the President to collect dues and otherwise arrange for financ-
ing the Association.

Use of Funds. The funds of this Association shall be used for
regular expenses or for such purpose as two-thirds of the members
present at an annual or special meeting decide by voting. The
Executive Committee shall approve all expenditures in excess of
twenty-five ($25.00) dollars.

* Dues were increased to $1.50 per member April 14, 1946 by member-
ship authorization.

86 WHITE COLLAR OR NOOSE?

DUTIES OF OFFICERS

President

(a) He shall preside at all general meetings, preserve order and
decide questions upon which members may be equally divided,
and direct the affairs of the Association.

( b ) He shall be privileged to be an active member of all other
committees.

(c) He shall appoint all committees not otherwise provided for.

First Vice President

.( a ) Act, in the absence of the President, performing, in such case,
the duties incumbent upon the President.

(b) Act as Chairman of the Executive Committee.

Second Vice President

(a) Act, in the absence of the First Vice President, performing
in such case, the duties incumbent upon the First Vice President,
(b) Act as Member of the Executive Committee.

Executive Committee

( a ) In the absence of both the President and First Vice President,
the Second Vice President shall preside.

(b) Give due consideration to all grievances presented by the
District Representatives before presenting the same to Nego-
tiating Committee.

District Representative and Alternate District Representative

(a) He shall serve on the Executive Board.

( b ) He, accompanied by a Group Representative, shall present
all grievances within his district, to the manager of the depart-
ment or division involved, unless the subject is a personal matter
and the person involved asks the representative to handle the
problem personally. If satisfactory agreement cannot be obtained
within the department or division involved, they shall refer the
grievance to the Executive Committee for further action. Here

A SUCCESSFUL SALARIED UNION 87

his functions cease, unless the Negotiating Committee requests
further action.

(c) Alternate Representative shall serve only in case District
Representative is unable to fulfill the duties of his office.

Group and Alternate Group Representative

Each group of members doing a similar type of work in each dis-
trict may elect a representative who may:

(a) Transmit grievances to the District Representative.

(b) Settle or assist in the settling of grievances within the
district.

(c) Assist in transmitting news and information among the
members of his group.

(d) Alternate Group Representative shall serve only in case
the Group Representative is unable to fulfill the duties of his
office.

Secretary-Treasurer

(a) He shall attend all meetings of the Association.

(b) Keep a proper record of the minutes of all meetings and
spread same upon the minute books in a clear and concise
manner.

(c) Notify all members of special meetings.

(d) Have his signature registered at such banks as are de-
positories for the Association.

(e) Keep a copy of the Constitution and By-Laws in a book
provided for that purpose and properly keep it up-to-date con-
cerning any changes in same.

(f) Read all papers and communications addressed to the
Association.

( g ) Receive all dues and deposit same in an insured bank, and
keep proper record of same— available at all times.

(h) Keep a book containing the names and home addresses
of every member of the Association, together with the member's
department location.

(i) Prepare and submit his books quarterly for inspection by

88 WHITE COLLAR OR NOOSE?

the Executive Committee and once each year submit his books
for audit by the Auditing Committee.

(j) Pay to the order of the Association, the amount called for
by such order out of the monies in the treasury when such war-
rants are countersigned by the Vice President.

(k) Keep a regular account of all monies which he may receive
or disburse and make a full report of his financial proceedings
to the membership annually.

(1) Perform such other duties as are provided for him in other
sections of the Constitution and By-Laws.

(m) At the expiration of his term of office, deliver to his suc-
cessor all monies, books and papers belonging to the Association;
same to be in order and suitable for inspection.

(n) The office hours of the Secretary-Treasurer shall be pro-
vided by the Executive Committee.

(o) Any of the above duties may be delegated by the Secre-
tary-Treasurer, with the approval of the Executive Committee,
to employees of the Association, provided that any person re-
sponsible for funds of the Association shall be bonded in a cov-
erage in excess of any funds in their care, such bond to be paid
for out of the treasury of the Association.

Activities Committee. Shall be appointed by the President to
take charge of activities relating to educational, social or other
general problems which may be assigned to it by the Executive
Committee.

Auditing Committee. To be appointed by the retiring President
for the purpose of auditing the Secretary-Treasurer's books. This
committee must submit their report to the membership not later
than one month after the incoming President takes office. In addi-
tion, a C.P.A. will audit the books of the Association during the
First Quarter of each year.

Executive Committee. Shall be given power to change By-Laws
and Constitution regarding English or contradictory points.

Chapter VI

ORIGIN, HISTORY, AND ACCOMPLISHMENTS OF THE

FEDERATION OF WESTINGHOUSE-!NDEPENDENT

SALARIED UNIONS

Early in the year 1939, a group of aggressive, serious-minded
men representing three independent salaried associations of the
Westinghouse Electric Corporation, formally met for the purpose
of coordinating the activities of the separate organizations, and
to provide a means for the interchange of information.

It was the fond hope of its leaders and elected officers that the
organization would some day grow to include all salaried workers
in the Westinghouse Electric Corporation, and that it would
eventually obtain for these forgotten white-collar workers all the
benefits and salary increases necessary to put them on at least
an equal footing with their hourly paid brothers, who were being
represented by one or the other of the large internationals.

To this end the Federation of Westinghouse Employees' Asso-
ciations (now the Federation of Westinghouse Independent Sal-
aried Unions) was formed, and its creators dedicated to actively
and conscientiously negotiate with top management on company-
wide problems for the betterment of salaried workers throughout
Westinghouse, and to do all in their power to obtain local, state
and national legislation that would benefit the "forgotten Ameri-
cans" throughout the entire country.

The Association of Westinghouse Salaried Employees' repre-
sentatives met with representatives from the Sharon and Deny
Westinghouse Employee Associations for the first time at an in-
formal meeting in Pittsburgh in February, 1939. At this meeting
it was quite evident to all those present that there were many
mutual problems and common views, and that serious thinking

90 WHITE COLLAR OR NOOSE?

should be given to the formation and development of a Federa-
tion of Westinghouse Salaried Employees.
At the first meeting the following matters were considered:

(a) The action being taken by the East Pittsburgh and Sharon
Associations toward obtaining restoration of the 10% salary re-
duction which had been given to all salaried employees June 1,
1938. Letters requesting restoration were written to the manage-
ment by each Association. The entire proposition was discussed,
as well as plans made for concerted action by all organizations.

(b) The furloughing of salaried employees was discussed and
it was deemed advisable to insist on an established company-
wide policy, jointly prepared by management and the representa-
tives of the salaried workers.

(c) Problems and points of interest covering the obtaining of
collective bargaining rights were touched upon and information
exchanged.

(d) The suggestion was made that each association take an
active interest in promoting and presenting suggestions to the
Management, for improving methods, machines, and efficiency.

( e ) A plan was established for effectively exchanging informa-
tion on the programs and activities of the various associations;
taxes, cost of living, Company and divisional operations, rates of
pay, etc., also methods of procedure in presenting and prosecut-
ing complaints to the management as well as providing the
machinery for concentrating the strength of all organizations be-
hind a problem of mutual importance. This discussion culmi-
nated in a resolution which is stated later.

(f ) Methods used by each organization to obtain membership,
stimulate and maintain interest and circulate information among
the members were put on a uniform basis.

(g) The following resolutions were presented for consideration
of the group:

"Resolved that there be formed a coordinating committee of
representatives of Independent Unions of the Westinghouse Elec-
tric Corporation upon the following plan:

(1) Each cooperating union shall select two representatives
to the committee.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 91

(2) The committee shall meet at the call of the secretary of the
committee approximately every three months at a place con-
venient to the members.

(3) That the general purpose and duty of the committee shall
be to discuss and to bring about cooperative action among the
member unions in matters of common concern.

(4) That a secretary pro-tern shall be appointed by the repre-
sentatives and a permanent secretary to be elected at the first
formal meeting of the committee."

(h) The date for holding the next meeting was chosen as
April 22, 1939.

(i) The secretary was instructed to mail copies of the report
to all interested organizations of Westinghouse employees and
to notify associations, not present at the meeting, of the time and
place for the next meeting and invite them to send representa-
tives.

Meanwhile, A.W.S.E. members decided to publish "The Regu-
lator" as the official publication of the Association, with the first
issue appearing on February 28, 1939, and the second in April,
1939. "The Regulator" was issued twice as the publication of the
Association, but starting in May, 1939, the paper was sponsored
by the Federation of Westinghouse Independent Salaried Unions.

The first joint conference meeting of the Federation was held
on Saturday, April 22, 1939, in the office of the A.W.S.E. at
102 Cable Avenue, East Pittsburgh, Pa., with representatives
present from Sharon, Derry and East Pittsburgh.

The subject, "Irregularities in Furloughs" was discussed by all
representatives. A motion was made, seconded, and passed, that
a joint conference body should work on matters of company-wide
policy. "We should organize an Association skeleton and details
of what is to be done, and also things to be ironed out as a natural
consequence."

A motion was made, seconded, and passed, that the joint con-
ference be called "The Federation of Westinghouse Employees'
Associations."

It was also moved, seconded, and passed, that there would be

92 WHITE COLLAR OR NOOSE?

a Chairman, Vice Chairman, and an Executive Secretary. Officers
were elected before the next order of business.

Letters were read from all associations giving authorization
to the Federation to speak for all of them regarding the restora-
tion of the 10% cut that had been given to all salaried employees
of the Company.

The various delegates reported that "the organization of all
associations into a Federation had strengthened each individual
association."

It was decided to incorporate information from the different
Associations in "The Regulator," and also to have copies of the
paper delivered to individual members of each affiliated asso-
ciation.

Salary classifications, rate reviews, and hospitalization plans
were discussed at some length.

POLICY OF THE FEDERATION

The first main objective, that of unification, having been attained,
the Federation representatives paused to take stock. Questions
naturally arose concerning the future of the Federation, and the
affiliated associations. What were to be the basic policies, and
the organizational viewpoints? What activities were contem-
plated?

The Federation was formed to provide a means of interchang-
ing ideas and information and for obtaining concerted action,
when necessary, on company-wide problems. It was, in fact, a
coordinating committee composed of two representatives from
each organization, these representatives being elected by the
respective executive committees. Quarterly conferences were
established to discuss problems of mutual interest. The several
units, of course, remained autonomous in all respects. Concerted
action was to be authorized by the respective executive bodies
of the affiliates. Joint use of "The Regulator" provided the most
economical means of reaching all members, and acquainting both
members and non-members with the activities of employee or-
ganizations in other plants.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 93

Officers of the Federation were of the opinion that all West-
inghouse salaried employees should be organized and were
authorized by the member units to engage in organizational
activities in the District Offices and other plants of the Westing-
house Corporation, and they freely offered the benefits of their
experience to any group of employees seeking organizational
advice.

The editorial policy of "The Regulator" is to present facts and
information to all employees in as fair and unbiased a manner
as human frailties will permit, and since it is primarily interested
in the welfare of the salaried employees, it may take the company
to task when necessary. However, it is recognized that the com-
pany is honorable and endeavors to be fair, although not free from
the natural bias of an employer.

The first and most important activities contemplated by the
Federation were ( 1 ) to increase the membership of the individual
affiliates so that they would be assured of winning their respec-
tive N.L.R.B. elections and become certified; (2) immediately
following certification, each member unit was to negotiate the
establishment of position requirements and rate ranges and con-
duct rate reviews; (3) grievance procedures were to be negotiated
and followed; (4) hospitalization plans were to be negotiated;
(5) the negotiated items were all to become a part of each
affiliate's local contract; and (6) Federation officers were to
endeavor to negotiate a master pattern contract covering all
member units of the Federation.

EARLY FEDERATION MEETINGS AND RESULTS OF
N.L.R.B. ELECTIONS

On Saturday, July 29, 1939, two representatives from each of the
affiliated groups met in the Association Office at East Pittsburgh.
The entire day was spent in a discussion of subjects outlined in
the call of this second regular meeting of the Federation.

A report of membership and organizational work of the indi-
vidual units was made and legal technicalities discussed. Problems
peculiar to each unit were studied with the thought of helping
each solidify their respective locals.

94 WHITE COLLAR OR NOOSE?

Considerable interest was shown on the matter of hospital
insurance and information on the subject was exchanged.

Exchange of information among the associations on the han-
dling of grievances was quite instructive and valuable.

The greater use of "The Regulator" was urged as an educa-
tional medium for spreading information about our various or-
ganizations.

The personal contact with the representatives from other plants
promoted a clear understanding of each other's problems and the
interchange of ideas and experience made possible by these
meetings proved invaluable from an educational standpoint.

An N.L.R.B. election held early in 1940 at the Sharon Plant
to determine the sole collective bargaining agent for the 534
salaried employees resulted in a vote of 422 for the Sharon West-
inghouse Employees Association and 12 against, or a vote of
35 to 1.

In an election held by the National Labor Relations Board on
February 15, 1940, the salaried employees in the East Pittsburgh
District voted on a "Yes" and "No" ballot to grant the Association
of Westinghouse Salaried Employees the rights of sole collective
bargaining agent. Out of a total of 2828 eligible employees, 2136
voted yes, 81 voted no, 2 ballots were voided and 609 failed to
vote. This was 26 affirmative votes to each negative vote.

About this time, management of the Westinghouse Corporation
made the Deny Plant a sub-division of the main plant located
at East Pittsburgh. Consequently, it was necessary to secure
certification for the Deny organization under the banner of the
A.W.S.E. After an election conducted on June 2, the Association
was certified on June 21, 1941, by the Board to represent salaried
employees at the Deny Works.

The overwhelming vote of confidence given the first two units
of the Federation, namely Sharon and East Pittsburgh, left the
Federation leaders awed by the task which confronted them.
Until this time, they had been primarily concerned with the prob-
lems incidental to creating an organization of the type which
would appeal to Westinghouse salaried employees. Now that
success in that venture had been attained, they suddenly realized

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 95

that their work had only begun. The broader scope of the work
now made possible by certification as sole collective bargaining
agents for over 7,000 fellow workers required skill, tact, and un-
derstanding of the highest degree.

Success, such as had been attained could mean lessening of
activity since their original goal had been reached. On the other
hand, the increased responsibilities which were theirs required
them to take stock of themselves and their organization and plan
for the future. The first step was to broaden the scope of contact
with those whom the officers were elected to represent, to the
end that they could better understand the sentiment and reac-
tions of the various groups of workers.

The splendid cooperation of the many associates in the elec-
tions indicated an interest in the organizational activities far be-
yond the fondest hopes of its proponents. It was for those inter-
ested then, to stimulate this interest by education and activity
and make use of the available talent to really put the independent
Westinghouse Unions on the map. The way had been shown
towards formation of organizations which have since been proven
in the democratic way to be the type desired by the employees.

It was the duty of the officers to formulate methods of pro-
cedure and policies which would be sound, fair to both employee
and management, and, above all, which would truly represent
the sentiment of their associates. They dared not interpret the
ideas of an individual, no matter how good, to be the wishes of
the group. Too often the governing body, or even the head of an
organization may act to initiate policies which do not truly rep-
resent the wishes of the members. To prevent such errors, it
was the policy of the officers to act only after an attempt had
been made to determine the wishes of the employees. They were
not expected to act on their own initiative except in the most
urgent cases, since, to act without authorization of an individual
or group is not true representation and may result in embarrass-
ment to the organization. The membership must meet and pass
on all important issues.

With these thoughts in mind, the leaders hoped that any indi-
vidual approached with the invitation to participate in the activi-

96 WHITE COLLAR OR NOOSE?

ties of organization would avail himself of the opportunity to
serve in this interesting and worthwhile activity. It had been their
privilege to see the interest in this type of activity grow and the
old fear of organization vanish from the minds of the Westing-
house salaried employees. Vast new fields of interest were opened
to all of the leaders and they were looking forward to proving
their ability to truly represent the high type of employees found
in the various Westinghouse organizations.

The privilege of serving in the activities of an employee associa-
tion or union is one which offers unlimited opportunity to broaden
one's education and usefullness. There were many new avenues
of conquest and experience open to all. One cannot engage
wholeheartedly in the activity of industrial relations without be-
coming more diplomatic, understanding, tolerant, and materially
gaining in wisdom.

On Saturday, March 16, 1940, representatives from the affiliated
groups, and a representative from Mansfield, met in the Associa-
tion office, and discussed subjects of interest.

Policies concerning "The Regulator" were explained as well
as ways and means of making it a vehicle of maximum benefit to
the employees. "The Regulator" was made available at a sub-
scription rate of 50 cents per year to employees located where
there was no affiliate, or to those not eligible for union member-
ship.

In the fast expanding field of labor and industrial relations, it
was recognized that very few employees were familiar with the
changes in their status since the passage of the Wagner Act and
that information vital to the workers' welfare should be taught
in schools. Adult education and the possibility of education
through Parent-Teachers Associations were reviewed.

A preliminary Constitution and By-Laws was drawn up and
submitted to all of the affiliates for study and suggested changes.

Wage classifications and salary schedules were explained.

Seniority rights of employees was found to be a major problem
and was placed on our program for action.

Overtime without additional pay was debated and action re-
quested.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 97

A special committee was appointed by each local to study the
various hospitalization plans that were available in their respec-
tive communities.

A uniform procedure for handling grievances in all affiliated
units was established.

The next meeting of the Federation was scheduled for the
weekend of June 8, 1940. One day had proved too short a time
for proper discussion of the subjects brought before the Federa-
tion and a two-day meeting was planned.

The next quarterly meeting in 1940 of the Federation was held
at Conneaut Lake, Pennsylvania, on the week-end of Saturday
and Sunday, June 8 and 9th. There were delegates present from
East Pittsburgh, Sharon, Buffalo, Derry, and the Nuttall Works,
and, in addition, three observers from Sharon. Saturday afternon
was spent in discussion of a Constitution and By-Laws for the
Federation. This Constitution was to be presented to the mem-
bership of each Association for adoption before being put in
force. Discussions of rate reviews, hospital insurance plans, organi-
zational problems, methods of handling grievances, seniority
policy and material for "The Regulator" were also held. Three
separate committees were appointed to study and recommend
a method of financing the Federation, to revise the Constitution
and By-Laws and to review various seniority plans and regu-
lations. /

Saturday evening was spent in Committee meetings and in-
formal discussion of problems presented by the various Associa-
tions. From 10 A.M. to 4 P.M., Sunday, the delegates heard com-
mittee reports and conducted the business necessary to reaching
a final understanding of all the questions presented for discussion.

The sound and continuous growth of the Federation is notable
and important. In many respects, it is of significance in the his-
tory of labor organizations in America. The growth has not been
the result of either real or artificially stimulated antagonism be-
tween the employees and the management, nor as the result of
disputes between rival labor organizations. Westinghouse em-
ployees recognize and appreciate that despite the few apparent
lapses on the part of management, it is the intent and estab-

98 WHITE COLLAR OR NOOSE?

lished policy of the Company to be fair in its relations with its
workers. If the Federation's organizational methods had been
based upon accusation and condemnation of the management or
of extreme vilification, upon unreasonable demands, it would not
and could not have succeeded. Neither would it .have succeeded
if pressure methods of membership solicitation had been em-
ployed. It had to be both sane and sound.

Notwithstanding the predictions that salaried employees could
not be solidly organized, notwithstanding the claims that an in-
dependent organization could not be free from company domi-
nation, and further notwithstanding the fact that no extreme
antagonism exists between the company and its employees, the
Federation has continued its voluntary growth and sound ad-
ministration. Why? There are a great many reasons, but the fol-
lowing few will suffice:

1. In modern industry today, good industrial relations can be
realized only in collective bargaining negotiations wherein the
representatives of management and the representatives of the
workers meet as equals in a friendly atmosphere in which both
parties bargain in good faith and with an honest desire to under-
stand each other's point of view; seeking to determine wages,
hours, and working conditions, fair to each and all.

2. Because experience shows that employees are the recipients
of the actions of individual supervisors who are not always free
from prejudices, arbitrary action inspired by indigestion, mis-
understanding, or, sometimes, by just plain perversity.

3. Because Westinghouse top management intends to be fair,
and mistakes have been, and will usually be corrected through
methods of collective bargaining without the necessity of extreme
measures.

HIGHLIGHTS IN THE HISTORY OF THE WESTINGHOUSE FEDERATION

April 22, 1989. Formation of the Federation of Westinghouse
Employees Associations. Present at the first formal meeting:
delegates from Derry, East Pittsburgh, and Sharon salary
groups.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 99

June, 1939. The first main objective achieved— restoration of
the 10% salary cut— at which Federation officers also spoke for
the new employee organizations at Lima and Baltimore. Organi-
zational work was begun in various Westinghouse plants and
district offices, and Associations were organized which later
applied for admission into the Federation.

August, 1940. Buffalo Administrative District Sales Offices be-
came a member of the Federation.

February, 1941. Cleveland Works joined the Federation.

April, 1941. Nuttall Works joined the Federation.

June, 1941. First general increase, $18.00 per month for those
working 40 hours per week; $16.88 for 37/2 hours; time and one-
half for Sundays and holidays.

August, 1941. Los Angeles District Office and Baltimore Works
joined the Federation. <

November, 1941. Negotiations opened for second general in-
crease.

December, 1941. Lima joined the Federation.

January, 1942. Affiliates voted to negotiate a separate con-
tract for each unit, but to carry on these negotiations simul-
taneously, and to have the contract contain similar clauses-
uniform classifications, seniority provisions, etc. Pittsburgh Dis-
trict Sales and the Research Laboratories joined the Federation.

March, 1942. Request for second general increase tabled to
await national trends. Contract negotiations continued.

May, 1942. Three years of collective bargaining experience
went into the Federation's master pattern contract completed this
date. Affiliates were to negotiate local agreements which were not
covered by the master pattern. The master pattern agreement in-
cluded: recognition of the Federation as a further step in the
collective bargaining procedure of all the units, thus opening the
way for overall negotiations; uniformity of position classifications;
protection of seniority; recognition of the local Associations as
official bargaining agent for wages, hours, and working conditions;
a procedure covering rate reviews; a policy and a grievance pro-
cedure; overtime, vacation, night turn bonus, and equal pay
for women on men's jobs were also covered.

100 WHITE COLLAR OR NOOSE?

July, 1942. When "Little Steel" case broke, negotiations for a
general increase, modified to conform with WLB formula, were
reopened.

August, 1942. Just as negotiations were about to be taken to
a conciliator, a general salary increase of $9.53, which was in
keeping with the WLB formula, was granted to the Federation,
together with provisions for revisions of the salary keysheets and
special rate reviews for all units. These provisions were incorpo-
rated in the master pattern contract.

September, 1942. The East Pittsburgh A.W.S.E. was the first
Federation affiliate to sign a contract with the Corporation. This
contract covered approximately 6,000 salaried employees. It is
believed that this was the first time in history that a collective bar-
gaining agreement was signed for so large a number of salaried
employees in a single bargaining unit.

January, 1943. Cincinnati District Office joined the Federa-
tion.

May, 1943. Negotiations for requested general increase held in
abeyance until success of Presidential "freeze" order could be
determined . . . negotiations continued for other features: 6th,
7th day bonus, overtime bonus, additional vacation compensation,
voluntary dues deduction, incentive bonus for salaried employees,
improved grievance procedure, time and one-half for exempt
salaried employees, etc.

June, 1943. Federation delegates voted for a master contract to
cover all affiliates.

August, 1943. The following was negotiated and made a part
of the master contract dated September 10, 1943: Any adjustment
plan for salaried workers whereby earnings may be increased
through additional effort will be a subject for later negotiations
and any agreement reached will be incorporated in a supplement
to this agreement.

September, 1943. Company ruled to be free from restrictions
of Order 31, a ruling which substantiated the proof submitted by
the Federation to the W.L.B.

First master contract signed September 10, and contract money
clauses submitted to the National War Labor Board for approval.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 101

October, 1943. Federation officers received assurance from Con-
gressional representatives of their consideration of the "white-
collar problem."

Middle Atlantic District Sales Offices joined the Federation.

November, 1943. The Salary Stabilization Unit of the Treasury
Department disapproved the payment of time and one-half for
overtime hours for the administrative and professional exempt
employees with base rates of more than $5,000 per year.

December, 1943. Federation officers conferred with War Labor
Board officials on contract "money clauses," and were successful
in gaining WLB approval on December 31, 1943 for all clauses
except 6th and 7th day bonus which became an appeal case.

January, 1944. Federation requested "cost of living" increase of
$35.00 per month.

February, 1944. Federation testimony presented at "White-
Collar Pay" hearings before U. S. Senatorial Committee, and a
nine-point program to aid salaried employees was proposed.

Delegates at the Westinghouse Federation meeting voted to
sponsor a National Federation of Salaried Unions so that the
benefits of independent salary unionism could be spread to the
employees of other companies.

March, 1944. Federation officers requested the Treasury De-
partment to review their ruling on overtime hours for employees
making more than $5,000 per year base rate, as the WLB in
December, 1943, approved the payment of time and one-half for
overtime hours for all employees making less than $5,000 per year
base rate.

Mansfield Works and Newark M & R Engineers joined the Fed-
eration.

June, 1944. Financial Accounts Division joined the Federation.
U. S. Conciliator assigned to assist in settlement of long-standing
grievance of AWSE Production Clerks regarding their rate of pay,
but no progress was made.

July, 1944. Contract between the Federation and management
was. signed. Several items that were subject to governmental ap-
proval were: group leader's remuneration; overtime vacation pay
privileges, daily overtime, and time and one-half pay for the 6th

102 WHITE COLLAR OR NOOSE?

and 7th day when absent due to involuntary absence reasons. A
joint Form 10 petition was submitted to the WLB for approval
of these items.

Having failed to arrive at a satisfactory agreement, despite the
efforts of the conciliator, on the rates of pay for production
clerks, the case was certified to the WLB on July 28, 1944.

August, 1944. Appeal case on 6th and 7th day half-time bonus
for involuntary daily absences during the week was approved by
the WLB.

The Federation became perturbed with top management's
evasive, indifferent and lackadaisical attitude toward a settlement
of the year old problem of the establishment of an overall incen-
tive adjustment plan negotiated in August, 1943, to compensate
salaried employees for increased production similar to the plan
granted by the Company to its hourly paid day workers, such as
janitors, elevator operators, lavatory attendants, chauffeurs, plant
guards, etc. Consequently, it withdrew its original request and
substituted a request that the Day Workers' Bonus Plan be
amended to include salaried workers who it felt were more
directly connected with production than hourly day workers
given the bonus. Making no progress, the Federation requested
and was granted a Federal Conciliator.

September, 1944. Three meetings were held by the conciliator
with representatives of top management and the Federation on
the salary incentive case, but no progress was made because
management continued to maintain its stubborn attitude.

October, 1944. On October 7, the Third Regional Board issued
a Directive Order that the production clerks' case must be sub-
mitted to arbitration.

Controversy involving adjustment of salaried employees' rates
to conform to the bonus plan covering hourly paid day workers
submitted to the WLB on October 9, 1944, following a year of
negotiations.

On October 17, the Company appealed the Directive Order of
the Third Regional Board ordering arbitration on the production
clerks' case— thus further delaying this case.

On October 21, the WLB advised that the Salary Incentive

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 103

Case would be assigned to a tri-partite panel, but a few days
later requested the parties to agree to a hearing officer in order
to expedite this long pending case.

The production clerks, incensed at the Company's delaying
tactics, on October 26, authorized the officers of the East Pitts-
burgh local to request a strike vote in keeping with the Smith-
Connally Act.

November, 1944. On November 2, both the Federation and the
Company agreed to a hearing officer on the Salary Incentive Case.
First briefs were submitted and exchanged on November 6 and
9th. On November 20, oral arguments were presented before the
Hearing Officer in New York, with the Company slipping in a
second brief as a surprise.

The strike vote requested by the Production Clerks was
scheduled for November 27 by the NLRB, but on November 10,
the Company agreed to withdraw its appeal regarding the Board-
ordered arbitration if the Federation would withdraw the case
from the WLB and withdraw the request for the strike vote from
the NLRB. The representatives of the Company and the Federa-
tion would then revert back to the Federation Contract provisions
for mutual arbitration. This was done.

December, 1944. The WLB approved the Federation's contract
clauses covering overtime vacation pay plan; time and one-half
for work on the 6th and 7th day when absent due to involuntary
reasons; group leaders remuneration based upon number of em-
ployees in each group; and overtime payment of time and one-
half for all hours worked in excess of eight in any one day.

On December 11, the Federation submitted its second brief in
reply to management's surprise brief of November 20 on Salary
Incentive Case.

During December, the rules for the arbitration of the Produc-
tion Clerks' case were worked out.

January, 1945. Judge Fred M. Vinson, Director of the Bureau
of Economic Stabilization, backed the Treasury Department's
previous ruling of November, 1943, and refused to grant payment
of time and one-half for overtime hours for salaried employees
making more than $5,000 per year base rate.

104 WHITE COLLAR OR NOOSE?

The Company submitted its third brief on the Salary Incentive
Case on January 8, thus keeping this case open. On January 25,
the Federation submitted its final brief. The Federation's brief
contained the statement that this should be the brief to end all
briefs, as it was felt that top management had delayed settlement
long enough.

During January, the three man arbitration panel was chosen
for the Production Clerks' Case. The rules and facilities of the
American Arbitration Association were used.

February, 1945. Two hearings before the arbitrators on the Pro-
duction Clerks' Case were held on February 9 and 27th.

Federation established Executive Council to consist of Presi-
dents of all member units of the Federation and to meet quarterly.
At the same time, Federation delegates voted to have the Federa-
tion meetings semi-annually instead of tri-annually.

March, 1945. After five months of intensive campaigning con-
ducted by both the UE and the Federation, the East Springfield
Salaried Employees represented by the UE-CIO for more than
two years, voted in favor of an independent union to become
affiliated with the Westinghouse Federation.

For all salaried employees making more than $5,000 per year
base rate, the Federation officers negotiated with Management
representatives the following: exempt pass to be returned;
scheduled hours at base rate plus overtime in accordance with
Treasury Department schedule; retroactive pay for recorded
hours worked in excess of scheduled hours between October 1,
1943 and February 1, 1945; future scheduling of overtime hours
to be as near actual hours worked as possible; adjustment in base
rates to at least a minimum of $440 per month; adjustment of
base rates within the approved rate range now in excess of $416.67
to values above $440 per month in relative equity with each
other and with due consideration of the inequity in the rate of
overtime pay as compared to the time and one-half paid the
administrative and professional employees earning less than
$5,000 per year base rate.

At a private session on March 12, the arbitrators on the Pro-

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 105

duction Clerks' Case worked out their decision but did not advise
what it was.

April, 1945. On April 6, a copy of the Arbitrators' Award and
Opinion on the Production Clerks' Case was secured, and lo and
behold, they had confused the testimony and based their award
on their crossed-up summary of the evidence. The labor repre-
sentative dissented to both the confusion of the testimony and
the award. The Federation promptly requested a review of the
decision because it was not based upon the facts. The ^Production
Clerks were boiling. Fifteen months of negotiations, hearings,
briefs, arbitration, etc., had ended in confusion. Their patience
and long suffering were at an end. At a mass meeting of pro-
duction clerks on Thursday night, April 26, after demanding the
exodus of the officers, they voted to go on strike at nine o'clock
the next morning in an endeavor to force some clarifying action.
About an hour after they had walked out, a letter was received
in the regular mail from the arbitrators offering to have a hearing
on their decision on Saturday, April 28. The hearing was held and
the arbitrators agreed to reconsider their findings but stipulated
that the production clerks must go back to work Monday, April 30
and remain back until they would have had time to write a new
decision.

May, 1945. The Production Clerks met May 7 to receive the
new decision but it was not forthcoming. During that afternoon
the arbitrators had met and matters concerning the facts con-
tinued to be in such a state that the labor member resigned;
thereby dissolving the arbitration panel and throwing the prob-
lem back into the hands of the Federation and Management.
The Production Clerks could not be induced to wait more than
two days for final settlement before they would go out on strike
and stay out until final settlement was made. All the next day
the conciliator met with various management representatives,
and succeeded in setting up a meeting of the union and the Vice-
President in charge of the East Pittsburgh Plant. At this brief
meeting, a satisfactory compromise was worked out to the satis-
faction of both parties. The final settlement raised the rate ranges
of the Class C and B Clerks one step and the A and Master

106 WHITE COLLAR OR NOOSE?

Clerks two steps, retroactive to June 1, 1944. This compromise
was the same one offered by the Union to top management eleven
months previously.

On May 17, the NWLB mailed to the Federation a copy of the
Hearing Officer's recommendation of May 5 to the NWLB on the
Salary Incentive case. Five days after receipt of the Hearing
Officer's report, the Federation submitted the prescribed fifteen
copies of its objections to the recommendation to the N.W.L.B.

The Hearing Officer's bold recommendation that the request
of the Federation be denied and the Federation objections to such
a recommendation were read at an AWSE membership meeting
on May 31. Acting upon the recommendation of their Executive
Committee, the membership almost unanimously voted to author-
ize their officers to request a strike vote if a satisfactory answer
was not received within 60 days from June 5.

June, 1945. The Federation Executive Council members meet-
ing on June 2 gave approval to the East Pittsburgh units action
and were confident that their units would take similar action at
their next membership meeting. At the same meeting, the Council
members voted to have a full-time president with staff and estab-
lishment of a Pittsburgh headquarters.

The Company, on June 15, submitted its objections to the Fed-
eration's objections to the recommendations of the Hearing
Officer.

July, 1945. The NWLB was advised of the seriousness of the
Salary Incentive Case on July 17 and a favorable reply requested
by August 4 so that the pending request for a strike vote could be
averted. On July 30, the NWLB advised that the case was
scheduled for consideration during the week of July 30.

The Detroit Salaried District Office Associations were certified
and applied for admission to the Federation.

August, 1945. Receiving no reply from the NWLB, on August 4,
East Pittsburgh, Sharon, Lima, East Springfield, Baltimore, Re-
search, Derry, Buffalo, Pittsburgh District Office, Cleveland,
Nuttall, Financial Accounts, Cincinnati and Newark requested
the NLRB to conduct strike votes. Mansfield, Middle Atlantic
District, Los Angeles and Detroit, the newest affiliate, did not

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 107

request strike votes. At the Federation Convention of August 4,
a revised constitution increasing the number of officers and their
duties was adopted and new officers were elected.

September 6, 1945. The largest strike vote in the history of
the country among white-collared employees was conducted by
the NLRB. Of the 14 units voting, all but one voted overwhelm-
ingly to go on strike. The total vote was 8,320 yes votes and 451
no votes, or an 18 to 1 affirmative vote. The number voting is
significant when it is borne in mind that about 10 per cent of the
employees were away on vacation, ill, or on company business
on that day. Interest was high and feelings clearly indicated.

About four o'clock, after virtually all the votes were cast, the
NWLB decision made on August 8 drifted into the Federation
office, two days after it was finally mailed. The decision stated
that the Federation's request for participation in a Salary Incen-
tive Plan was denied, labor members dissenting.

September 8, 1945. The Federation Executive Council at a
special meeting voted to go on strike at 9 A.M. on Monday, Sep-
tember 10, at the insistence of the memberships of the various
affiliates. After this serious decision had been made, the NWLB
found out about the strike vote which had been taken and of
which they received only fourteen copies of the various requests
for strike votes made on August 4. The NWLB contacted the
Executive Council by phone and when advised of the time set
for the strike asked us to meet with the Chairman of their Ap-
peals Committee and representatives of top management the next
day. The Federation officers, wishing to leave no stone unturned
to bring about a peaceful settlement of this dispute, agreed to
meet all day Sunday if necessary.

September 9, 1945. Following several meetings, top manage-
ment representatives advised the Executive Council that they
were in no position to make a settlement. The NWLB representa-
tive then requested the Council to call off the strike scheduled
for Monday, September 10, and give the WLB ten days to re-
consider and review the case.

After a full discussion of the geographical problem involved,
the Executive Council voted to call membership meetings at all

108 WHITE COLLAR OR NOOSE?

plant and office locations at 8:30 A.M. Monday, September 10,
and receive instructions from the various memberships as to their
desires in the matter. The Executive Council went on record
and recommended that the respective memberships give the
NWLB another opportunity to really study the case before going
on strike.

September 10, 1945. The membership of the various locals
decided overwhelmingly to go on strike at once as they had no
faith in the WLB. So the strike was on as of 8:30 A.M., Monday
morning.

Late in the afternoon, the National War Labor Board wired
the Federation president directing him . . "to effect an imme-
diate termination of the strike and every striking employee is
directed to return to work/' As the Federation has local autonomy
for each affiliate, the Federation president, who was also president
of the largest affiliate, AWSE, wired back that although he would
endeavor to favorably influence each unit, it was necessary that
similar wires be sent to the president of each affiliate.

During the night, the Federation endeavored by all possible
means to get all employees at all locations back to work. Several
affiliates refused to go back to work and many of those whose
officers were willing to return could not be certain that the em-
ployees could be kept in because of lack of faith that either the
National War Labor Board or the Company would effectively act
to settle the dispute.

The employees had little or no faith in the NWLB because of
the way it had handled this case, because it was on the way out,
and because its representatives had given different stories to some
affiliated units. The employees' faith in the fairness of their Com-
pany had been severely shaken by its one-sided handling of wage
payments during the war period.

September 11, 1945. All affiliates decided to continue the strike.

The Federation Executive Council was called to Washington
by the NWLB to show cause why the strike should continue.

September 12-13, 1945. The Executive Council conferred with
officials of the NWLB in an attempt to come to an understanding
on board procedures and the extent of the authority of the Board

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 109

to enforce its orders, and returned convinced that the Board was
both powerless and helpless to effect any settlement of the dis-
pute.

September 20-21, 1945. The Executive Council met formally
to report continued unity on all strike fronts and to discuss future
strategy.

September 25, 1945. The Manhattan Procurement District Proj-
ect of the U. S. Army, better known as the Atomic Bomb Project,
became increasingly active in an effort to bring the parties to-
gether. While unsuccessful efforts had been made in the preced-
ing two weeks, the big wheels in Washington began to get set to
move.

September 27, 1945. Executive Council met again to discuss
strike strategy and was requested by officers of the Manhattan
Project to permit Army officers and a representative of the NWLB
to meet with them the following day.

September 28, 1945. Through the intervention and untiring
efforts of representatives of the NWLB and the Army, an ex-
change of letters took place between officers of the Company
and the Federation. Based upon this exchange, the Executive
Council voted to put the matter before the various memberships
and to recommend that they return to work for the following two
reasons:

1. Representatives of top management of the Company agreed,
conditioned on the striking employees returning to work Monday,
October 1, to meet with the Federation officers on Tuesday morn-
ing, October 2, and negotiate wages, hours, and workng con-
ditions, and through collective bargaining, the elimination of
inequalities and inequities within our salary structure.

2. The NWLB assured the Federation, conditioned upon the
striking employees returning to work, that an early meeting would
be scheduled in Washington for the reconsideration and review
of the day workers' bonus case and promised a decision ten days
following the oral hearing before the Board.

September SO, 1945. The various memberships reluctantly voted
to go back to work upon the recommendation of the Executive
Council.

110 WHITE COLLAR OR NOOSE?

October 1, 1945. The employees almost to a man returned to
work.

October 12, 1945. New Federation contract signed, embodying
almost all the clauses which management had been disputing
since the first of the year.

October 15, 1945. Oral hearing before NWLB in Washington,
wherein it developed that there were groups of salaried em-
ployees who were as directly connected with production as
the hourly paid day worker receiving the day worker's bonus,
and other salaried groups who were connected to a lesser
degree.

October 29, 1945. The NWLB issued its decision, on its recon-
sideration and review of the case, which on the surface denied
the bonus to the salaried employees as a whole, but which in
effect gave the case back to the Company and the Federation to
negotiate on the inequalities and inequities brought about by the
Company granting the Day Worker's Bonus only to its hourly
paid workers.

November 8, 1945. Representatives of top management and the
Federation met to review the decision of the NWLB and to open
negotiations on the settlement of the dispute.

For top management and the Federation to have agreed to
negotiate the inclusion of those salaried employees 100% con-
nected with production under the Day Workers' Bonus would
have created further inequities within the salary structure that
neither management nor the Union could live with; therefore, the
Federation requested top management to jointly agree in the
determination of the percentage of participation applicable to
the salaried employees as a whole.

November 15, 1945. Harry C. Jones, Executive-Secretary-
Treasurer of the Westinghouse Federation spoke before the
Labor-Management Conference called by President Truman in
Washington and recommended that a national board be estab-
lished to handle labor disputes, and that independent and salaried
union representatives be members. He further recommended that
any formula established for a general increase take into consid-
eration inequalities between salary paid and hourly paid em-

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 111

ployees receiving bonus or incentive compensation in addition to
their base rates.

December 1, 1945. At the Federation convention, the Executive
Council, in view of the pending CIO and AFL strikes in the
electrical industry, by a vote of 17-1, passed a resolution to
recommend to the affiliated units that they "respect the picket
lines of any legitimate union in our country." This was a rec-
ommendation and not a mandatory order and as such was subject
to the approval of the membership of each local unit. The Fed-
eration officers and its Executive Council do not dictate to its
respective units as the Federation believes in and practices local
autonomy and democracy.

The stand taken by the Federation Executive Council concern-
ing the pending U.E. strike was diametrically opposite to that
taken by the UE-CIO national headquarters at the time that the
Federation was on strike. The UE-CIO violated the picket lines
of the Federation affiliates at various locations in the five different
states where they represented hourly paid employees. The UE
represented no hourly paid employees in the other three states.
It is further interesting to note that the largest unit of the UE-
CIO, Local 601, publicly set about to raid the membership and
destroy the largest Federation affiliate, the AWSE at East Pitts-
burgh, during the Federation strike.

December 4, 1945. Representatives of top management finally
consented to another meeting with the Federation as they had by
then reviewed the bonus problem with the involved officers and
directors of the corporation. The corporation had no solution to
offer particularly in view of the nationwide requests for general
increases in all industries and the general strikes looming on the
horizon.

The Federation proposed the unification of all salary keysheets
or rate ranges throughout the corporation as a step towards the
solution of the bonus problem. The Company proposed the estab-
lishment of a six-man sub-committee to represent both parties and
to submit recommendations on:

a. Elimination of Sex Wage Differentials.

b. Elimination of Salary and Hourly Differentials.

112 WHITE COLLAR OR NOOSE?

c. Elimination of Area Differentials.

December 28, 1945. The Sub-committee made the following
recommendations :

a. A series of 22 rate ranges be used to cover all non-supervisory
classifications with no reference to sex or age.

b. The elimination of salary and hourly differentials could not
be resolved by the sub-committee, but it was recommended that
the full committee consider establishing a relationship between
the maximum rate for the minimum labor grade salary and the
maximum rate for the minimum grade hourly, and the establish-
ment of a definite minimum salary rate below which no local rates
would be established.

c. The elimination of area differentials could not be resolved,
but it was recommended that some common practices should be
established which will tend towards more uniformity, which was
so definitely needed.

January 15, 1946. The UE-CIO went on strike and by Janu-
ary 31, the Federation had won from Management the promise
that it would continue to pay the salaried employees represented
by the Federation, who could not work because they were pick-
eted out of the offices and plants, their regular salaries. By re-
peated negotiations for each bi-monthly pay period, the Federa-
tion was successful in getting the Company to pay regular salaries
up to March 15 regardless of whether or not the salaried em-
ployees were working in hotels, etc., and half pay from March 15
to March 31 for all non-working salaried workers. The Company
further agreed to provide work and places to work outside their
regular work locations for as many salaried employees as possible
for the period following March 15.

The willingness of the Company to accede to the request of
the Federation that it pay its salaried employees who had no
quarrel with the Company over the matters involved in the UE-
CIO strike did much to improve the relations between the Com-
pany and its salaried employees who felt that the Company had
treated them so unfairly and with so little consideration during
the War Period.

January 25, 1946. The Sub-committee report was discussed by

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 113

the full negotiating committee of the Company and the Federa-
tion and the following recommendations were made:

a. The establishment of a series of rate ranges without refer-
ence to sex or age and that 22 rate ranges be used to cover the
full range of positions that may be included in any certification
which includes all salaried positions which are non-supervisory
in character.

The position descriptions for the anchor positions in these rate
ranges, when once established can be changed only by national
Federation-Management Negotiations .

b. A tentative conclusion was reached that a relationship could
be established between the maximum rate for the minimum code
or salary range number on the proposed salary classification
schedule and the maximum rate for the minimum code or job in
the hourly group. The remainder of the salary ranges on the
schedule were to be determined by local negotiations independ-
ent of the hourly rate ranges because as a comparison of positions
and jobs along the entire range was considered by Management
to be generally impractical.

The relationship between the maximum rate for the minimum
code, hourly and salary, was so vital that company-wide opinion
was requested from all units of local management and local
affiliates of the Federation.

c. The elimination of area differentials could not be resolved,
because of the Company's insistence upon continued recognition
of past practices adhering to the recognition of area differentials
Vvhich had become a part of local situations.

The Federation negotiators, although not convinced of the
justification of Management's area differentials, agreed that the
establishment of a single keysheet without reference to age or
sex and the elimination of differentials between hourly and salary
rate range along the entire range would go a long way towards
clearing up the present situation.

January 29, 1946. Four days later, after having won top man-
agement representatives over to the side of the Federation Nego-
tiating Committee's thinking on the advantages of a national
salary keysheet and national uniform salary position classifica-

114 WHITE COLLAR OR NOOSE?

tions, the Federation reversed its stand and lost its overall
favorable position and returned the problem to the various local
affiliates. This unfortunate and regrettable occurrence was
brought about by the insistent pressure of the largest affiliate of
the Federation, the AWSE at East Pittsburgh representing over
half of the employees affiliated with the Federation, so that it
could settle its keysheet locally. The AWSE took the position
that the national keysheet would take too long to work out due
to local management thinking in some plants, and that the East
Pittsburgh management fully understood the Federation's key-
sheet aspirations and would settle very quickly on a local basis
if permitted. The AWSE insisted that to put anything in the way
of the prompt settlement of its local keysheet would financially
penalize the largest block of employees in the Federation, as it
hoped that the settlement of the East Pittsburgh keysheet would
be of assistance to the other affiliates of the Federation in settling
their salary rate ranges or keysheets. The Federation officers
could not agree with this thinking in its entirety, but to avoid
a schism in the Federation, went along with the largest affiliate
so that it could secure what it wanted for itself; and brought
down upon its head the collective and vociferous complaints and
denunciations of the many affiliates who were not so fortunate as
to have as broadminded and well-informed Management repre-
sentatives to deal with as did the AWSE in the huge main plant
of the Company at East Pittsburgh.

February 18, 1946. The AWSE settled locally the pattern of
its salary keysheet and the approximate dollar values for each
rate range. This new keysheet to be effective March 1, repre-
sented an increase of 10% overall in the weighted average of the
maximums of all rate ranges.

February 20, 1946. Federation officers met with top officers of
the Company and presented their request for a general increase
for all salaried employees. This was before national wage policies
were established by the government. The general increase re-
quested was $26.00 per month (15 cents per hour) for all
employees earning $260.00 or less per month and a 10% increase
for all employees earning more. This request was predicated upon

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 115

the Company's ability to pay and yet remain in a competitive
position in the electrical industry.

March, 1946. During the last week in March, Federation rep-
resentatives and management representatives held four meetings
to discuss the matter of a general increase.

At the second meeting, March 26, the Company made a tenta-
tive proposal offering a general increase of 18M cents per hour
to salaried employees, of which one cent was to be set aside in
a fund to be used principally toward eliminating differentials
between the salary ranges of men and women. This meant a
general increase of 17/2 cents per hour or $30.30 per month
($7.00 per week) to be effective April 1.

This proposal included the following joker: "In those units
(affiliated with the Federation) where the problem of inequali-
ties has been tentatively resolved, the subject will be reopened
and modifications made due to the Company's proposed elimina-
tion of the Day Work Adjustment Plan (covering hourly workers
not represented by the Federation), which was the main factor
in the Federation's claimed inequalities. The ten per cent adjust-
ment tentatively agreed to with the AWSE at East Pittsburgh
for maximum rates will be revised downward by 4/4 per cent.
A similar downward revision of 4/2 per cent will be made at the
Derry unit. The minimum rates for the different rate ranges will
also be revised downward."

This tentative proposal, of course, was not acceptable to the
Federation officers because top management was attempting to
tamper with two new keysheets that had already been negotiated
locally by two member units of the Federation, namely AWSE
and Derry units. As the Federation officers saw a fallacy in
Management's logic, they had a special meeting with top man-
agement representatives on March 27 and presented statistics
and data to show that the Company's reasoning as to the basis
for lowering the two keysheets was fallacious, and convinced top
management representatives of the authenticity of the Federa-
tion's approach and the error in their evaluation of the frozen
increment for hourly day workers which the Company had pro-
posed to the hourly paid employees.

116 WHITE COLLAR OR NOOSE?

The next day, March 28, at a meeting consisting of the Fed-
eration officers, top management representatives, and representa-
tives of the East Pittsburgh and Derry plants and unions, the
arguments of the previous day were reviewed for the benefit of
local union and local plant representatives.

The Federation then offered a counter-proposal requesting that
all keysheets agreed to locally stand unchanged; and that the
amount of the general increase to be granted, aside from the one
cent per hour fund to be used toward eliminating differentials
between the salary rate ranges of men and women, should be
$30.30 per month, or $7.00 per week, for all salaried employees
earning a base salary of not more than $379.00 per month or
$87.50 per week. Above that income level the general increase
should be eight per cent of the base salary up to a maximum
increase of $43.33 per month or $10.00 per week.

April 9, 1946. Top management representatives, no longer re-
questing the downward revision of the East Pittsburgh and Derry
keysheets, made a definite offer of $30.30 per month or $7.00 per
week for all salaried employees. The same amount was to be
added to the maximums of each salary rate range but the mini-
mums were to be subject to local modification. This trial balloon
was loaded down with sand bags. This general increase, in order
to be effective April 15, had to be accepted within six days along
with page upon page of surprise national contract revisions.

April 14, 1946. Notwithstanding the geographical distribution
of Federation units from coast to coast and the prevalent idea
that democracies move slowly, the Federation Executive Council
met, with each local president having been fully empowered by
his respective membership at quickly scheduled meetings during
the preceding week at which time the membership discussed the
proposal of management word by word along with the other in-
formation received from Federation headquarters. By a vote of
25 to 5, the Executive Council rejected the Company's general
increase offer unless through collective bargaining negotiations
the Company would agree to omit certain changes with which
the Company had sandbagged their general increase offer.

April 15, 1946. After an all day meeting of the negotiating

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 117

committees representing the Federation and top management,
the Federation Negotiating Committee was successful in securing
desired changes and eliminations in the Company's proposal re-
garding the national contract. The Executive Council in session
late that same night, voted unanimously to accept the general
increase offer of the Company with contract changes recom-
mended by the Federation as amended earlier in the day.

April 16, 1946. Federation officers and representatives of the
district office units completed negotiations for a nation-wide key-
sheet covering all district office salaried positions and, in addition,
national uniform salary position classifications. This significant
accomplishment brought about national unification of salaries at
all non-plant locations in the Company represented by the Fed-
eration. These district offices included Buffalo with its six sub
offices covering all of up-state New York, Cincinnati, Cleveland
Manufacturing & Repair, Detroit, Los Angeles, Newark Manu-
facturing & Repair Engineers, Philadelphia and Pittsburgh. In
this list where no other designation is made, the local affiliate
represents the sales personnel, the Manufacturing and Repair
organizations, the Engineering and Service organizations and all
allied salaried employees.

This is what the Federation could have accomplished for all
of its plant and district office units as a body if the largest plant
unit had been more patient and not jumped the traces.

It is interesting to note that the national district office salary
keysheet has the top salary of most of its salary classifications
equal to or above those of comparable salary ranges in any or
all of the plant units and the tops of all ranges are very defi-
nitely well above the average of all the plant unit keysheets.
Covering such a wide geographical area, it has worked out that
some of the minimum salaries of some of the rate ranges are not
as high as in some of the plant keysheets but they are not lower
than any of the plant unit keysheets, except East Pittsburgh
A.W.S.E.

May, 1946. The author advocated the establishment of a Fed-
eral Labor Court as a possible cure for strikes. The Court rec-
ommended should be established on a basis similar to the U. S.

118 WHITE COLLAR OR NOOSE?

Supreme Court with competent labor judges who would not be
bound by union, management or political pressure. At such a
court, union or management could air their differences and the
scales of justice would be balanced in favor of the righteous
group.

Courts of competent labor judges will not be absolutely in-
fallible and mistakes in judgment will occur now and then the
same as they do in matters submitted to other courts. But in the
long run, they will yield a larger measure of justice to both capital
and labor than the present irrational method of hurling injunc-
tions, bricks, tear gas, picket lines, lockouts and bullets at one
another.

June, 1946. At the Federation convention the progress of the
various keysheet negotiations was reviewed. Only Sharon, East
Springfield, Baltimore, Mansfield and Cleveland plants could not
advise that their keysheets were completed. The Sharon keysheet
was settled about a week later, Cleveland five weeks later, and
Baltimore two months later. The East Springfield keysheet was
in the process of settlement.

These keysheets under discussion were to include the general
increase and the settlement of the inequities and inequalities
issue which the company had agreed to settle following the salary
strike in September, 1945. The local plant affiliates were aided
and guided in the settlement of their keysheets by the Federation
officers. The amount of assistance rendered depended upon
the requests of the local affiliate and the availability of the
officers.

At this same convention, a number of amendments to the Con-
stitution and By-Laws were made and a committee appointed to
carefully study the articles covering the voting power of the
member affiliates, subject to the approval of the Executive Com-
mittees of the various Affiliates.

July, 1946. The Federation, after several years of requesting
representation of independent unions in the various governmental
agencies having to do with labor problems, expressed its ire at
being sold down the river by Secretary of Labor Lewis B. Schwel-
lenbach who had promised that he would request the appoint-

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 119

ment of an Under-Secretary of Labor representing independent
unionism.

When the appointments were announced, one went to the AFL,
one to the CIO, and one to a former member of one of the gov-
ernmental labor boards. These appointments left the independent
unions still holding the bag. The Federation wholeheartedly
condemned this discriminatory action perpetrated upon inde-
pendent unionism and the other millions of unorganized workers
who have not seen fit to join either the CIO or the AFL. The
Federation will fight on and on until the government sees the
light and gives the majority of its people the democratic repre-
sentation they so justly deserve.

August, 1946. The Federation took part in the conference called
in Washington, D. C., by the Confederated Unions of America
(independent) to unify independent union thinking concerning
representation of independent unions in governmental agencies
administering laws affecting labor. Representatives from this con-
ference conferred with the Secretary of Labor and other govern-
mental labor officials.

September, 1946. The office employees of the new Westing-
house Motor Division plant in Buffalo, N. Y., which will have
approximately one thousand salaried employees when it reaches
capacity, were formally organized and temporary officers elected
to arrange for certification, to be followed by the adoption of a
constitution and by-laws and election of permanent officers.

The Federation Executive Council met on September 28-29
to outline negotiations to be conducted with top management
of the Corporation for the year 1947. These negotiations, of
course, would be subject to change and ratification at the annual
convention which was scheduled for the first part of December
1946.

November, 1946. After an informal hearing before the National
Labor Relations Board, Buffalo, N. Y., a stipulation for certifica-
tion upon a consent election was agreed upon between the local
white-collar organization of the new Buffalo Motor Division, the
FWISU, and the local and top management representatives of
the Westinghouse Electric Corporation. The election was held on

120 WHITE COLLAR OR NOOSE?

November 14, 1946, for all white-collar or salaried employees
including technicians as Unit 1, and another election on the
same date for all design and manufacturing engineers as Unit 2.
The choice on the ballot of both units was to be the same, that is,
for or against the participating white-collar organization. If the
employees in Unit 2 selected the participating organization, they
were to become a part of Unit 1, provided, of course, eligible
employees in Unit 1 likewise selected the participating organiza-
tion. Following the counting of the ballots which indicated with-
out doubt that the employees in both units wished to be repre-
sented by the Westinghouse Motor Salaried Employees Associa-
tion—Buffalo, the NLRB certified the local union on Novem-
ber 29, 1946.

December, 1946. The Westinghouse Motor Salaried Employees
Association— Buffalo, elected permanent officers, adopted its con-
stitution and by-laws, and applied for admission to the FWISU.

The Annual Convention of the FWISU was held on Decem-
ber 7-8, and in addition to accepting the local at the Buffalo
Motor Division Plant of the Corporation as a member unit of
the Federation, the convention ratified and authorized the Nego-
tiating Committee of the Federation to negotiate the following
subjects with top management of Westinghouse Electric Corpo-
ration:

I. A 16% Cost of Living Bonus— This percentage is based upon
the increased cost of living from April 15, 1946 (date on which
the salaried employees of the Westinghouse Electric Corporation
received their last general salary increase) to December 15, 1946
(the date on which the Bureau of Labor Statistics' Index will re-
flect the full cost of living figures for the year 1946). The Na-
tional BLS Index Cost of Living figure for the United States on
April 15, 1946, was 131.1. The same BLS statistics, in all prob-
ability, will indicate a figure of 152.1 for December 15, 1946, in
other words, a 21 point rise in the cost of living between the two
aforementioned dates, or 16% rise in the cost of living between
the same dates. The Cost of Living Bonus increase which we are
requesting should be paid separately and not made a part of our
present salary keysheets or rate range structures.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 121

In addition to the above, we request that the followng clause
be added to our national agreement:

"Whenever the U. S. Bureau of Labor Statistics' Cost of Living
Index rises or falls 1% above or below the index figure of 152.1,
then the Corporation, as soon as possible thereafter, but in no
case longer than thirty (30) days after publication of the index,
will correspondingly raise or lower the separate salary cost of
living bonus of the employees represented by the Federation. It
is further agreed that the increase and decrease mentioned above
shall automatically continue in force so long as the BLS Index
does not go below 131.1."

If the Cost of Living Index does not reach our estimated figure
of 152.1 by December 15, 1946, the Federation could still justify
the application of a 16% increased cost of living bonus based on
the following facts:

( a ) The Index as presently calculated only partially shows the
wartime effects of changes in quality, availability of consumer
goods, etc.

(b) The President of the United States Committee on the Cost
of Living has estimated that such factors, together with certain
others not fully measured by the Index, would add a maximum
of three to four points to the Index for large cities, between
January 1941 and September 1944. If account is taken of con-
tinued deterioration of quality and disappearance of low priced
merchandise between September 1944 and September 1945,
which was estimated at an additional & point, the total large
city adjustment would be 4.5 points. If small cities were included
in the national average, another /£ point would be added, making
the total approximately five points higher than the figures actually
indicated in the BLS Index.

2. A Just and Equitable Pension and Retirement Plan for all
salaried employees. The present pension and retirement plan
applying to only those employees making more than $3000.00 a
year is an injustice perpetrated upon the thousands of salaried
employees throughout the Company whose salaries are less than
$3000.00 per year.

3. Additional Vacation— Salaried employees with ten or more

122 WHITE COLLAR OR NOOSE?

years total service should receive in addition to their normal two
weeks' vacation, one extra day for each additional year of service.

4. A Definition of Severance Pay should be added to the na-
tional contract.

5. Excellent Attendance Bonus— Additional time off for a mini-
mum of absences from work within one year.

6. Involuntary Absences— Reinstate the eight reasons for invol-
untary absences in the national contract.

7. Payment to Employees for Time Spent Traveling outside
their respective plant locations over and above eight hours per
day when on Company business.

8. Use of Personal Cars— 8^ per mile allowance for all em-
ployees using personal cars on Company business. The present
allowance of 5/2^ per mile is inadequate at present increased
prices.

9. E 6- S Engineers Overtime— A sound basis for scheduling
overtime hours for all E & S. Engineers.

10. Hotel and Meal Allowance for All E 6- S Engineers— An
allowance of $7.50 per day for hotel and meal expenses. The
present allowance of $6.00 per day is inadequate at present in-
flated prices.

11. National Plant Keysheet—A National Salary Keysheet or
range structure for all Plant Units should be adopted.

12. Holidays— We request that Armistice Day be added to our
present seven recognized holidays as defined in the contract. We
also request that when a national holiday is declared in celebra-
tion of the World War II Victory, that holiday shall also come
under the scope of this agreement.

In addition to the above, we request the modification of some
of our present clauses and the addition of several new contract
clauses as outlined in the attached proposal.

January, 1947. After several months of organizational cam-
paigning by Federation officers, the Time Study Methods En-
gineers of the B. F. Sturtevant Division of the Westinghouse
Electric Corporation were organized. On January 10, 1947, the
NLRB, following an election that was held several weeks pre-
viously, certified this Association as an appropriate unit.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 123

On January 9, 10, 30 and 31 the Federation Negotiating Com-
mittee met with top management representatives of the West-
inghouse Electric Corporation for the purpose of coming to an
understanding on requests made in writing December 10, 1946.

February, 1947. Negotiations were resumed with top manage-
ment representatives of the Corporation on February 5. The
scheduling of another meeting was held in abeyance in order
to give management the opportunity to study all non-economic
and economic issues involved in the Federation's requests.

On February 11, an informal hearing was held with the local
NLRB in Chicago, Illinois, to determine an appropriate unit of
white-collar workers, or salaried employees, of the M & R Division
of the Corporation located on Pershing Road. The eligible em-
ployees in this M & R Division had been organized by the officers
of the Federation about three months before this informal hearing.

March, 1947. The Federation Negotiating Committee and top
management representatives of the Corporation resumed meet-
ings on March 17, at which time management submitted to the
Federation their contractual counter proposals covering all non-
economic issues. On March 18 the Negotiating Committee met
at Federation Headquarters to peruse management's counter
proposals, and again on March 19, 20 and 21st, met with top
management and agreed to accept the new contract with the
exception of the clauses pertaining to professional and adminis-
trative employees and the termination date of the contract. The
Federation Negotiating Committee requested time and one-half
for all scheduled hours in excess of 40 per week for professional
and administrative employees making less than $400 per month
base rate, and $15.00 per month for each scheduled weekly hour
in excess of 40 per week with the maximum payment including
base salary not to exceed $750.00 per month for professional and
administrative employees making more than $400.00 base pay.
A request was also made for a contract on a two-year basis rather
than an open-end 30-day contract as heretofore.

While the Negotiating Committee was meeting with top man-
agement on the 26th and 27th, Mr. H. C. Jones, Executive-
Secretary of the Federation, was in Chicago, Illinois, attending a

124 WHITE COLLAR OR NOOSE?

formal hearing before the NLRB for the purpose of determining
an appropriate unit for the white-collar employees located at the
M & R Division of the Corporation at Pershing Road.

On March 29-30, the Executive Council Meeting of the Fed-
eration was held in Pittsburgh for the purpose of acquainting
each one of the affiliate units with the new gains made in the
contract and to secure their approval subject to ratification by
the membership of each local.

April, 1947. On April 18, 1947, while the Federation Negotiat-
ing Committee was meeting with top management of the Cor-
poration, the UE CIO issued a release to the local newspapers
announcing that they had secured a general increase of 11/20 per
hour plus 3/20 per hour in fringe negotiations for the hourly paid
production and maintenance employees they represent in the
Westinghouse Electric Corporation, and $21.70 per month, or
$5.00 per week across-the-board for the salaried employees they
represent. The Corporation offered the Federation the same gen-
eral increase for its members but the Negotiating Committee
absolutely refused to accept this proposition because it sincerely
believed the salaried employees were entitled to much more
than $21.70 per month across-the-board because one of the fringe
negotiations completed by the UE included payment for six
holidays for the hourly paid employees. All salaried employees
of the Corporation had been paid for holidays for years and in-
asmuch as the Corporation calculated these paid holidays for
hourly employees to be equal to 30 per hour, the Federation
believed that its members were entitled to something more than
$21.70 across-the-board.

The Federation Negotiating Committee continued to battle for
this recognition of 30 per hour to be added to the general increase
so as to bring about a just and equitable solution to the overall
distribution of an amount of money equivalent to $21.70 across
the Board plus the 30 per hour that was granted the hourly paid
employees in holidays, and met with management again on
April 22, 23, 24, 25 and 29th. On the 29th of April, the Federation
Negotiating Committee was successful in negotiating a sliding
scale general increase of $21.00 to $42.00 per month, retroactive

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 125

to April 1, for the employees it represented. The general increase
and the other fringe negotiations secured by the Federation on
this memorable date were subject to ratification by the local
membership of each affiliate unit on or before midnight, May 6,
and are as follows:

1. An increase of $21.00 per month (or $4.85 per week) to all
employees whose salary on the effective date was less than
$200.00 per month (or $46.20 per week).

An increase of $21.70 per month (or $5.00 per week) to all
employees whose salary on the effective date was between $200.00
per month (or $46.20 per week) and $310.00 per month (or
$71.50 per week), inclusive.

An increase of 7% to all employees whose salary on the effective
date was more than $310.00 per month (or $71.50 per week).

2. Three weeks' vacation for all salaried employees with a total
employment of 20 years or more.

3. Professional and administrative employees exempt from
coverage of the Fair Labor Standards Act will, when agreed upon
locally, be issued exempt passes which do not contain a starting
time, lunch period, or departure time. The pass provides for en-
trance or exit at other than regular working hours of the plant
or office.

4. Professional and administrative employees exempt from
coverage of the Fair Labor Standards Act and earning up to
$400.00 per month base rate will receive time and one-half for all
hours scheduled in excess of 40 hours per week.

5. Professional and administrative employees exempt from the
Fair Labor Standards Act earning more than $400.00 per month
base rate will receive $15.00 per scheduled hour for all hours in
excess of 40 hours per week with a maximum payment of
$750.00 per month less 10^ for each $1.00 of base rate under
$750.00 per month.

6. Consulting and application electrical and steam engineers
will receive $7.00 per day meal and hotel allowance instead of
$6.00 per day.

7. All salaried employees using their personal cars for company
business will be allowed 6/2^ per mile instead of 5/2^ per mile.

126 WHITE COLLAR OR NOOSE?

8. Hours worked by non-exempt salaried employees on Sunday
after 40 hours have been worked in the week will be paid for at
double the employee's average earned hourly rate. The reasons
considered as involuntary absences will be counted as hours
worked for determining double time for Sunday.

9. All salaried employees transferred into higher positions of
like occupational classifications will receive a 10% increase on the
day of transfer.

May, 1947. Before midnight, May 5, the contract and all fringe
negotiations were ratified by a unanimous vote of all the affiliates.
The general increase was ratified by a vote of 21 to 1.

June, 1947. On June 7-8-9, the FWI SU held its semi-annual
convention at the Hotel Adelphi-Witte, Wildwood, N. J. The most
important subjects on a rather lengthy agenda were a complete
explanation of the new and changed contract clauses and action
on a motion to improve the financial reserve of the Federation.

BRIEF SUMMARY OF OUTSTANDING ACCOMPLISHMENTS OF
THE FEDERATION

1. The salaried employees represented by the Federation have
been covered by five national agreements negotiated with top
management of the Company from 1942 until 1947.

2 A. d/3% upward salary adjustment for employees transferred
from a 37/2 to a 40 hour work week schedule with the under-
standing that the extra 2/2 hours would be scheduled throughout
the regular five-day week and not on Saturday.

3. A 10% night-turn bonus for salaried employees working
night-turn.

4. Salary keysheets which have salary ranges considerably
higher than when the organization came into existence, in fact,
an average increase of 51% has been added onto the maximum
rates.

5. A general salary increase in 1941 of 10^ per hour or $18.00
per month for all those working 40 hours per week.

6. A general increase in 1942 of 5/2^ per hour or $9.53 per month
for employees working 40 hours a week. Both general increases
were retroactive for several months.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 127

7. Blocked efforts by the N.A.M. to remove draftsmen from
coverage of the Walsh-Healy Act.

8. Blocked efforts by representatives of industry to establish
$225.00 a month as a line of demarcation between exempt and
non-exempt employees (the exempt employee being excluded
from payment of overtime and the non-exempt employee secur-
ing overtime pay for all hours in excess of 40 in any one week).

9. Blocked efforts (by testimony presented to the Senatorial
Committee on Banking and Currency) to freeze individual sala-
ries. The testimony brought about several changes in the Wage
Stabilization Act, making it possible to grant increases within
the established rate ranges of the various classifications.

10. A salary rerate clause in the national agreement to provide
the following: Employees hired and those promoted to higher
class positions whose work is satisfactory will receive not later
than six months (as determined below) after employment or
transfer, an increase of at least 10% above their hiring rate, rate
before transfer or minimum position rate, whichever is greater,
provided the rate does not exceed the maximum for the position.
Employees hired or promoted between the 1st and 15th of the
month, inclusive, will be given credit for that month in com-
puting the six-month period, and those hired or promoted be-
tween the 16th and the end of the month will receive no credit
for that month in computing the six-month period.

11. An additional vacation day if a holiday falls during the
regular work week of the employee's vacation.

12. Recognition of vacation days and holidays as hours worked
in computing hours of work for the work week.

13. Time and one-half pay for all exempt and administrative
employees earning less than $5,000 per year base rate in all plant
units.

14. A plan for all those employees earning more than $5,000
per year base rate so as to equalize their take-home pay with
those making less than $5,000 a year base rate, applicable to all
plant units.

15. A plan whereby all District Office Application Engineers,
E & S Engineers, District Engineers and other non-supervisory

128 WHITE COLLAR OR NOOSE?

exempt employees will be paid overtime on a scheduled hours
basis in line with the hours established for their various District
Office locations.

16. Time and one-half pay for all hours in excess of eight in
any one day applicable to all non-exempt salaried employees.

17. Double time for the seventh day worked in the work week
in keeping with Executive Order 9240. (This order was can-
celled on August 21, 1945, and time and one-half was secured
for all plant salaried employees and for all District Office non-
exempt salaried employees working the seventh day in the work
week. )

18. Time and one-half for work on the sixth day when absent
for any one of the eight involuntary reasons as defined in the
contract:

(a) Funeral or death in the immediate family.

(b) Jury duty.

(c) Time off for required appearance before draft board or
related reasons.

(d) Time lost due to injury in plant.

(e) Time off for vacations and holidays.

(f) Union activity contemplated in contract.

(g) Furloughs which are days off at Management's request
(disciplinary measures excepted).

(h) Illness of any duration.

19. The establishment of group leaders and additional com-
pensation to their base rate depending upon the size of the group.

20. Additional vacation pay based on the total number of hours
worked beyond 40 in any one week during the war period.

21. Modification of W.L.B. Order No. 31 to recognize merit
increases within our established rate ranges.

22. Twice each year local Association and Federation repre-
sentatives with management department heads review all salaries
with the intention of seeing that each individual is properly
classified and that his salary is in line with the classification and
his ability to perform the requirements of the position. This has
resulted in many salary increases that otherwise would not have
been granted.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 129

23. The Federation officers have conferred with Government
labor officials in the interest of sound legislation, and as a result,
have established direct contact with four different divisions of
the Department of Labor in Washington, D. C. They have also
been called in for Senatorial Hearings on Wage and Salary
Stabilization.

24. Definite promotion and seniority plans have been estab-
lished.

25. Negotiated with top management of the Corporation full
pay for non-working salaried employees for the first ten weeks
of the UE-CIO strike.

26. Double time and one-half for all hours worked by salaried
employees on the seven recognized holidays defined in the con-
tract.

27. On April 15, 1946, the Federation negotiated a general in-
crease of 17.5<* per hour, $7.00 per week, or $30.30 per month for
all salaried employees represented by the Federation, and pre-
pared with top management representatives of the Corporation a
joint Form 10 petition requesting the OPA for price relief.

28. New salary rate ranges were negotiated during 1946 for all
nineteen affiliates to reflect not only the general increase of
April 15 but also a goodly measure of the inequity between salary
and hourly wage rates that had grown out of the Day Worker's
Bonus granted by the Corporation to hourly day workers only.

29. The establishment of a single key sheet or a salary rate
range for each affiliate without reference to age or sex.

30. On April 1, 1947, the Federation was successful in nego-
tiating a sliding scale increase of $21.00 to $42.00 per month for
all its members.

31. Three weeks' vacation for all salaried employees with 20
years' or more service.

32. Professional and administrative employees excluded from
coverage of the Fair Labor Standards Act, will, when agreed
upon locally, be issued exempt passes which do not contain a
starting time, lunch period, or departure time. The pass provides
for entrance or exit at other than regular working hours of the
plant or office.

130 WHITE COLLAR OR NOOSE?

33. Professional and administrative employees excluded from
coverage of the Fair Labor Standards Act and earning up to
$400.00 per month base rate will receive time and one-half for
all hours scheduled in excess of 40 hours per week.

34. Professional and administrative employees excluded from
coverage of the Fair Labor Standards Act earning more than
$400.00 per month base rate will receive $15.00 per scheduled
hour for all hours in excess of 40 hours per week with a maxi-
mum payment of $750.00 per month less 10^ for each $1.00 of
base rate under $750.00 per month.

35. Consulting and application electrical and steam engineers
will receive $7.00 per day meal and hotel allowance instead of
$6.00 per day.

36. All salaried employees using their personal cars for com-
pany business will be allowed 6/2^ per mile instead of 5/2^ per
mile.

37. Hours worked by non-exempt salaried employees on Sun-
day after 40 hours have been worked in the week will be paid
for at double the employee's average earned hourly rate. The
reasons considered as involuntary absences will be counted as
hours worked for determining double time for Sunday.

38. All salaried employees transferred into higher positions of
like occupational classifications will receive a 10% increase on the
day of transfer.

39. Working relations, built on mutual respect and the desire
for cooperation have been established with local and top man-
agement representatives of the Westinghouse Electric Corpora-
tion.

None of these accomplishments existed for salaried employees
of the Corporation prior to the formation of the Federation of
Westinghouse Independent Salaried Unions in April, 1939. The
decision of a group to organize is no reflection upon the Cor-
poration or a particular manager, but is merely the employees
exercising their democratic rights of freedom of choice guar-
anteed to them by the Wagner Act.

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 131

MAGNITUDE OF THE FEDERATION

The magnitude of representation of the salaried employees by the
Federation of Westinghouse Independent Salaried Unions can
best be illustrated by listing, in alphabetical order, the various
classifications of employees who comprise the membership of the
various affiliates of the Federation:

Accounting Clerk, Learner

Accounting Clerk, Detail

Accounting Clerk, Budget

Accountant, Financial Accounts

Accounting Specialist

Addressograph Machine Operator

Advertising Assistant

Apparatus Electrician

Artist, Commercial

Attendance Control Clerk

Auditor, Traveling

Blue Print Machine Operator

Blue Print Trimmer

Buyer

Buyer, Assistant

Cash Ledger Clerk

Cashier, Paymaster or Trust Officer

Cashier, Petty Cash

Catalog Illustrator

Claim Clerk

Clearance Clerk

Clerical Group Leader

Clerical Staff Specialist

Contract Order Supervisor, Assistant

Copywriter

Correspondent

Cost Analysis Clerk

Cost Clerk

Cost and Estimating Clerk

Demonstrator

Designer, Tool

Dictaphone Operator

Dietician

Distributor

District Order Clerk

Division Staff Assistant
Document Collector
Drafting Group Leader
Drafting Student
Draftsman, Female
Draftsman, Detail Design
Draftsman, Detail, Female
Draftsman, Diagram
Draftsman, Forms
Draftsman, lunior
Draftsman, Layout Design
Draftsman, Layout Diagram
Drawing Inspector
Drug Clerk

Duplicating Machine Operator
Duplicating Group Leader
Editor

Editorial Clerk
Employee Service Clerk
Employment Clerk
Employment Statistician
Engineer, Assembly
Engineer, Application
Engineer, Commercial
Engineer, Contact
Engineer, Design
Engineer, Development Cost
Engineer, Equipment
Engineer, General
Engineer, Headquarters Service
Engineer, General, Foreign Lan-
guage

Engineer, Industrial Hygiene
Engineer, Insulation and Winding
Engineer, Junior

132

WHITE COLLAR OR NOOSE?

Engineer, Senior
Engineer, Manufacturing
Engineer, Materials or Laboratory
Engineer, Order Service
Engineer, Order Interpretation
Engineer, Plant Layout
Engineer, Power Plant
Engineer, Research
Engineer, Service
Engineer, Test
Engineer, Test Record
Engineer, X-Ray Application
Engineer's Assistant
Engineering Correspondent
Engineering Correspondent— Foreign

Language

Engineering Production Clerk
Field Specialist
File Clerk
General Duty Clerk
Guide
Handyman

Hydrogen & Gas Plant Operator
IBM Set-up Man
Inspector
Inspector, Routine
Inspector, Class A-l
Inspector, Crane
Instructor
Interviewer

Interviewer, Preliminary
Investigator

Interworks Follow Clerk
Janitor
Job Analyst
Key Punch Verifier
Laboratory Aid
Laboratory Assistant
Laboratory Chemist
Laboratory Technician
Lamp Representative
Layout Detailer
Learner
Ledger Clerk

Ledger Clerk, Stores
Librarian
Load Dispatcher

Lumber Inspector and Storekeeper
Mail Sorter

Mail and Transcribing Clerk
Manufacturing Information Clerk
Manufacturing Information Dicta-
phone Operator
Material Disposition Clerk
Material Dispatcher
Material Procurement Clerk
Messenger

Metallographic Technician
Nurse

Nurse, Social Service
Nurse's Aid
Order Assistant
Order Clerk
Order Correspondent
Order Stock Checker
Package Designer
Panelboard Clerk
Patent Attorney, Assistant
Paymaster's Assistant
Payroll Auditor
Payroll Clerk
Photographer
Photo Printer
Police Officer
Posting Clerk
Price Clerk
Priorities Clerk
Product Demonstrator
Product Specialist
Production Clerk
Production Dairy Clerk
Production General Duty Clerk
Production Material Checker
Production Shipping Clerk
Production Record Clerk
Proof Reader
Publicity Assistant
Publicity Writer

ORIGIN, HISTORY, AND ACCOMPLISHMENTS 133

Purchase Follow Clerk

Receiving Clerk

Receptionist

Record Clerk

Repair Correspondent

Requisition Clerk

Restaurant Attendant

Restaurant Baker

Restaurant Bus Boy

Restaurant Cook, Pastry

Restaurant Cook

Restaurant Dietician

Restaurant Maintenance Repairman

Restaurant, Pantry Group Leader

Restaurant Porter

Restaurant Steward

Restaurant Vending Machine

Attendant
Restaurant Waitress
Retoucher
Routine Clerk
Safety Assistant
Safety Device Salesman
Safety Inspector
Sales Correspondent
Sales Order Clerk
Schedule Clerk
Secretary, Manager's
Secretary, Officer's
Secretary-Stenographer
Secretary-Stenographer, Foreign

Language
Service Assistant
Service Correspondent
Service Order Clerk
Service Estimator

Shipment Tracer

Special Assignment Clerk

Special Duty Clerk

Stationary Stock Clerk

Statistical Clerk

Stenographer

Stenographic Training Instructor

Stock Layout Clerk

Stock Supervisor

Stockman

Storekeeper

Storeroom Attendant

Sub-Office Stenographer

Suggestion Expediter

Tabulation Machine Operator

Technical Clerk

Technical Specialist

Telegraph and Teletype Clerk

Telephone Operator

Teletype Operator

Time and Motion Analyst

Time Value Clerk

Time Clerk

Tracer

Tracing Reproduction Operator

Traffic Clerk

Transcribing Clerk

Translator, Foreign Language

Transportation Expediter

Treasury Correspondent

Typist

Typist, Copy

Typist, Moon Hopkins Operator

Watchman

X-Ray Serviceman

Yardmaster

Chapter VII
NECESSITY OF A SIGNED CONTRACT

WHY A CONTRACT Is NECESSARY

Labor contracts are a matter of good business practice. They are
documents embodying the terms and conditions which both em-
ployer and employee have agreed upon and are willing to abide
by for a specified period of time. Instead of the loose methods
usually used in the absence of a written agreement which leave
the employee in doubt as to his exact status, the contract states
in precise terms its various provisions. A labor contract further
smooths out the running of a company because it serves as a
ready means of making the lower levels of management, who have
the most contact with the employees, fully advised concerning
the labor policies of top management. Uniformity of manage-
ment action at this level does much to promote industrial har-
mony.

During the past five years labor unions with written agree-
ments have made much headway because they have proven their
worth. Collective bargaining and written agreements serve to
extend union recognition, to establish a clear and indisputable
record of terms of agreement and to provide for continuous deal-
ing between workers and employer representatives. Unions have
decreased employment turnover, increased stability of produc-
tion, placed responsibility on union representatives instead of
armed company guards, and have accorded workmen that inde-
pendence as men which alone can assure loyalty to any enter-
prise.

With collective bargaining based on written agreements, it is
in its very nature rooted in democratic procedure. As liberty for
working people is attained through industrial democracy, collec-
tive bargaining performs valuable service to society as a whole.

134

NECESSITY OF A SIGNED CONTRACT 135

Collective bargaining is a continuous process and the signing
of a contract does not stymie this process.

The contract itself is not a dormant document which can be
filed away for posterity when once signed.

Management representation should remember that, under the
law, the employer's obligation to bargain in "good faith" does
not end with the signing of the contract.

The courts have ruled that refusal to meet with union nego-
tiators for proposed changes in a contract is an "unfair labor
practice."

The perfect union contract, like the perfect legal law, never
will be written. Legal laws are tempered and refined in the courts,
where the latest decisions bring the old laws up-to-date. The
union contract undergoes similar changes because upon appli-
cation certain clauses prove to be unworkable and it becomes
necessary to develop other clauses to replace them.

Although it is not claimed to be perfect, the following contract
is offered for consideration. The Westinghouse Federation be-
lieves it to be the most outstanding white-collar contract in ex-
istence today.

AGREEMENT

between
WESTINGHOUSE ELECTRIC CORPORATION

and

FEDERATION OF WESTINGHOUSE INDEPENDENT SALARIED UNIONS
Entered into April 1, 1947

Agreement, entered into this 1st day of April, 1947, between
Westinghouse Electric Corporation, hereinafter referred to as the
"Company," and the Federation of Westinghouse Independent
Salaried Unions, hereinafter referred to as the "Federation," on
behalf of and in conjunction with its various Affiliates, hereinafter
specified and assenting to this Agreement, hereinafter referred
to as the "Affiliates."

136 WHITE COLLAR OR NOOSE?

RECOGNITION— SECTION I

The Company recognizes the Federation on behalf of and in con-
junction with its Affiliates, for those units where the Federation
or an Affiliate, respectively, through a National Labor Relations
Board certification or other means satisfactory to both parties,
have been lawfully designated and/or recognized as the exclu-
sive bargaining agent. The Units for which the Federation or its
Affiliates have been certified and/or recognized, and which are
included within this Agreement, are set forth in the appendix
attached hereto and made a part of this Agreement.

Any units for which the Federation or an Affiliate shall be law-
fully certified and/or recognized, upon lawful certification and/or
recognition and upon mutual agreement of the Federation, the
Affiliate, and the Company, shall be included in and covered by
this Agreement as of the date of certification and/or recognition.

The following definition will determine supervisors where
excluded from the various certified bargaining units.

A supervisor is an employe who has been assigned the re-
sponsibility of overseeing and directing the activities of employes
in order to secure efficient operations, which responsibility carries
with it either the authority to hire and discharge or to effectively
recommend such action, and who has responsibility to provide
employes with information on position classifications and rates
and reply to grievances arising in his department.

BARGAINING COMMITTEE— SECTION II

The Federation has designated a committee of five consisting of
the president or vice president of the Federation and four rep-
resentatives from its Affiliates, and the Company has designated a
committee of five of its representatives, for the purpose of con-
sidering, pursuant to the provisions of this Agreement, all matters
relating thereto which said representatives of the Federation and
of the Company, respectively, may deem Company-wide and
generally applicable to the various certified collective bargaining
units. Either party may at any time change said representatives,

NECESSITY OF A SIGNED CONTRACT 137

provided that neither party will be represented by more than
five representatives.

COOPERATION— SECTION III

The Company will co-operate to effect the purpose of this Agree-
ment; and will neither settle grievances other than with the
Affiliates or the Federation nor negotiate regarding rates of pay,
wages, hours of employment, or other conditions of employment
except through the appropriate representatives of the Affiliates
or the Federation.

The Company agrees that it or its supervisors or other repre-
sentatives of Management will not discriminate against any em-
ploye because of membership or activities in the Federation or
the Affiliates.

The Federation and the Affiliates agree that neither they, their
officers, their members, nor persons employed directly or in-
directly by them, will discriminate against any employe. The
Federation and the Affiliates agree not to solicit members, dues
or funds during the working hours of employes involved.

The Federation and the Company agree that collective bar-
gaining can best succeed in a friendly atmosphere in which both
parties bargain in good faith and with an honest desire to under-
stand each other's point of view. The Federation recognizes that
it is the responsibility and right of the Company to maintain dis-
cipline and efficiency, and agrees that Management shall have
•the freedom of action necessary to discharge its responsibility for
the successful operation of the Company. Such freedom of action
is limited only to the extent specifically provided for in this
Agreement or local supplements hereto.

CONSIDERATION— SECTION IV

This Agreement evidences the understanding reached through
collective bargaining between the Company and the Federation,
Both parties share the belief that publication of these provisions
will tend to eliminate misunderstanding and promote accord, and
the Federation and the Company will work in unison to that end.

138 WHITE COLLAR OR NOOSE?

The Company will, upon execution of this Agreement, or any
local supplements, provide a reasonable number of copies to be
made available to interested persons upon request.

The Company and the Federation recognize that mutual re-
spect and confidence will aid greatly in carrying out the provi-
sions of this Agreement and will also go far toward bringing about
the harmonious relations which both desire.

COLLECTION OF DUES— SECTION V

The Company will continue present methods of deduction ( either
by written employe authorization or a list of members furnished
to local Management) from the employe's pay of Affiliate dues
for each month and the initiation fee, where such is used, in the
amount authorized, and shall promptly remit same to the respec-
tive Affiliates.

Standard dues as established by the Federation are generally
$1.50 per month. Changes in present established dues by an
Affiliate will be made effective only after a thirty (30) day written
notice to the Company (local Management) and notification to
the employes by the Affiliate, and, where used, the presentation
of new employe authorizations.

Deductions for employes paid monthly will be started within
the month provided the authorization is received by the Company
not later than the sixth working day of the month. For employes
paid weekly, all authorizations received by the last Friday in
the Westinghouse payroll accounting month will be included in
the deductions for the following month.

Deductions will be made from the first pay of the month in the
case of weekly payrolls and from the end of the month pay in
the case of monthly payrolls. If a member does not receive pay
during the month, dues for that month will not be deducted by
the Company from the pay in any subsequent month. Dues de-
ductions will be automatically reinstated for employes returning
to work after leave of absence or sickness.

Collection of any back dues owed at the time of starting de-
ductions for an individual will be the responsibility of the Affiliate

NECESSITY OF A SIGNED CONTRACT 139

and will not be the subject of payroll deduction unless such de-
linquency is a result of an error by the Company.

Termination of employe authorization of payroll deduction may
be effected by written notice by the employe to the Company
and the respective Affiliate thirty (30) days prior to the desired
effective date.

Payroll deductions, when authorized by list of members, may
be terminated during the yearly withdrawal period as established
in local supplements.

SALARIES— SECTION VI

Salaries will be paid according to a local schedule based upon the
classification system in each bargaining unit. The place on the
schedule of each position will be in relation to each other and in
reference to the lowest and the highest paid positions. A written
explanation of the local classification system followed will be fur-
nished each Affiliate.
The following provisions are applicable to all bargaining units.

A. Position Description and Evaluation

The Union agrees that the preparation of descriptions and
evaluation of new and changed positions are functions of Man-
agement.

The Affiliate president will be notified of changes in position
descriptions and the evaluation of new positions before they are
made effective. The Affiliate president will be notified at least
fifteen days before the reevaluation of existing positions becomes
effective and, where requested, a meeting will be held to discuss
the change.

A request to review an existing description and/or evaluation
may be made at any time by the Affiliate through the supervisor
of the department on the regular grievance form.

B. Group Leader Definition and Remuneration.
Definition— A group leader is a non-supervisory employe who

is a working member of a group, without disciplinary authority,
who works under a minimum of supervision, who regularly leads,

140 WHITE COLLAR OR NOOSE?

instructs, and guides employes in the group, and who generally
allocates the work.

Remuneration— Additional compensation for group leaders
when group leading is not contained in the job description will
be based on the following provisions and schedule.

Appropriate groups for salary employes based on securing bet-
ter operations will be determined locally by Management and
will be a subject for negotiation before they are established. It
is understood that employes may work as a group without pay-
ment of a group leader when group leaders' duties are not as-
signed. Duties of a group leader will not be assigned to an em-
ploye where less than three (3) employes are involved. No group
of more than twenty (20) employes, exclusive of the leader, will
be formed.

Schedule
Size of Group

exclusive of the leader Addition to Base Rate

2 to 5 5%

6 to 10 7.5%

11 to 20 10%

C. Salary Re-Rates

1. Employes hired, whose work is satisfactory, will receive not
later than six months (as determined below) after employment
an increase of at least 10% above their hiring rate, provided the
new rate does not exceed the maximum rate for the position.

2. Employes promoted to a position in a higher rate range,
whose work is satisfactory, will receive not later than six months
(as determined below) after promotion an increase of at least
10% above the minimum rate of the new position or the employe's
rate before promotion, whichever is greater, provided the new
rate does not exceed the maximum rate established for the posi-
tion. Where the employe is known to be qualified and the trans-
fer is to another position in a higher rate range in the same
occupational line of work in the department, the increase will be
granted at the time of transfer.

Employes hired or promoted between the 1st and 15th of the

NECESSITY OF A SIGNED CONTRACT 141

month, inclusive, will be given credit for that month, and those
hired or promoted between the 16th and the end of the month
will receive no credit for that month.

D. Night Turn Bonus

Employes working night turn will receive an extra compensa-
tion of 10% of their earnings on night turn, when the regular
quitting time is after nine o'clock in the evening (9:00 P.M.) and
up to and including nine o'clock (9:00 A.M.) of the following day.

E. Reporting for Work

Employes who report to work at Management's request on
regular furlough days and at times not regularly scheduled will
be granted a minimum of four (4) hours of work or equivalent
pay, subject to details in local supplements. If the employe has
qualified for overtime in accordance with the overtime provisions
of this Agreement, extra remuneration as provided in Section X—
Overtime— will be paid for hours not worked.

NOTE: The foregoing provisions will not apply in the case of
an emergency such as fire, flood, power failure, or work stoppage
by employes in the plant.

F. Salary Reviews

Salary rate increases are based on merit and recognize im-
provement since the last re-rate by the employe in his capacity
to handle the range of work of his position classification, his
quality and quantity of work, and his cooperativeness and re-
liability. If the amount of improvement warrants an increase of
10%, an increase in rate of approximately that amount will be
given, but not to exceed the maximum of the position range.

The salary review is an inspection of salary rates to establish
the proper fulfillment of agreements and to determine that salary
rates are currently consistent among employes in a given position
in relation to productivity, quality of work performed, and ex-
perience. The effective date of any rate adjustments may be
scheduled the first of the month following the period scheduled
for the unit rate review or the first of either of the two succeeding
months.

Salary reviews will be held semi-annually unless, due to exist-
ing circumstances, it is thought advisable by the Affiliate and

142 WHITE COLLAR OR NOOSE?

Management either to change or omit the scheduled review. The
procedure for such reviews is as follows:

1. At least four copies of the review sheets (Form 21985) will
be prepared as of the month preceding the review, will be com-
pleted by the first of the month scheduled for the review and a
copy will be given to the locally designated Affiliate representa-
tive.

2. Employes within a basic unit or subdivision thereof are to be
listed by position, and then in alphabetical order within a position
group. The position name, number and rate range will be entered
on the sheet, above the names of employes in a given position.

3. Sufficient information should be entered in the "remark"
column to explain any special cases or conditions.

4. The district and group representative and an officer or mem-
ber of the Negotiating Committee of the Affiliate will review the
sheets with Management's representatives. An officer or repre-
sentative of the Federation may attend the review.

5. All recommendations agreed upon at the review, including
the new base rate and the effective date thereof, will be entered
on the review sheets before completion of the review.

6. A list of the cases arising during the review on which further
consideration is desired will be made up by Management. This
list, after further consideration, will be discussed by the group
making the review. If necessary, any special cases on which a
decision cannot be reached will be submitted to the Negotiating
Committee of the Affiliate for discussion with local Management.

7. The review sheets are to be numbered consecutively and the
district representative, or an officer of the Affiliate, and the Man-
agement representative, will sign the original of each sheet, in-
dicating that the review of the sheet is completed.

8. The original or Master copy of the review sheets is to be
sent to the Industrial Relations Department when the review is
completed. In District office locations, Management's copy is to
be retained by the District Manager.

G. Information

That portion of Company instructions on government orders
and laws, or government interpretations of such orders and laws,

NECESSITY OF A SIGNED CONTRACT 143

affecting employes and dealing with wages, hours, and working
conditions, as well as instructions on interpretations of this Agree-
ment, will, upon issuance by the Company, be sent to the Affiliate
and the Federation.

Local Management shall furnish the Affiliate involved with
copies of all local Management interpretations of releases from
headquarters as furnished under the preceding paragraph and
interpretations of local supplements. The Affiliate will be fur-
nished, periodically, with lists of employes transferred, hired, re-
hired, and released.

HOURS OF WORK— SECTION VII

The standard basic work week is forty ( 40 ) hours based on eight
(8) hours per day, five (5) days per week, Monday to Friday in-
clusive. An employe's work day is the twenty-four hour period be-
ginning with his regularly assigned starting time of his work
shift, and his day of rest starts at the same time on the day or
days he is not scheduled to work. His work week starts with his
regularly assigned work period on Monday.

Local conditions may make desirable a basic work week differ-
ent from the standard basic work week for all or a portion of
the employes. Such variations will be a matter for local negotia-
tions. Unusual situations may require modification of the estab-
lished work schedules in the different units which may warrant
special wage payment provisions which will be negotiated locally.
The schedules of hours for the established shifts in the bargain-
ing units are contained in the local supplements.

Different methods of attendance control are employed through-
out the Company. The method used is determined by local situa-
tions and is designed to control local problems and is a subject for
local collective bargaining.

In computing hours worked on late arrivals, early departures
and for overtime in connection with attendance control, an em-
ploye will be credited with time worked from the start of the one-
tenth hour interval in which the recorded starting time falls, and
to the end of the one-tenth hour interval in which the recorded
time of departure falls. Where starting or stopping times are

144 WHITE COLLAR OR NOOSE?

shown on the pass, entrance before and exit after the indicated
time will not be credited. Elapsed hours will be computed in
terms of hours and tenths of hours.

SENIORITY AND PERSONNEL ADMINISTRATION— SECTION VIII
The details for administration of seniority provisions for district
Field Areas are covered in a supplement hereto. Details for ad-
ministration of the provisions of this Section VIII at other loca-
tions will be embodied in local supplements.

Any employe transferred from a position in one rate range to
one of a different rate range shall, unless otherwise agreed upon,
receive a salary rate within the new rate range when transferred
on the first day of the pay period, otherwise on the first working
day of the pay period, following the transfer.

Information will be given an employe concerning his employ-
ment status at time of employment, upon change in position,
change in rate, transfer between departments and granting of a
leave of absence. Notification of change in employment status will
be prepared at the same time the supervisor initiates the Authori-
zation for Change in Salary and Employment Rolls, and will be
given to the employe not later than the end of the pay period in
which the change is made.

The Affiliate representative will be notified of a change in posi-
tion of any employe prior to the time such change is made effec-
tive.

A. Seniority

It is understood that in all cases of re-hiring or lay-off due to
increasing or decreasing the force, service credit, as determined
locally, will govern if die employe can acceptably perform the
job. Seniority for rehiring or lay-off will be considered equal if
employes in question have been hired in the same calendar month
or if the effective service dates are in the same calendar month.
Seniority lists showing service credit will be maintained for all
active employes and for all employes laid off.

At the written request of the Affiliate, during their terms of
office, Affiliate officers and district and group representatives will
be granted, at the time of lay-off, seniority preference to the

NECESSITY OF A SIGNED CONTRACT 145

extent necessary to permit them to retain a position in their par-
ticular unit of representation.

B. Employment

Employes will be re-hired from the inactive seniority list of the
bargaining unit in order of seniority if the employe can acceptably
fill the open position. Employes laid off who have less than
one (1) year of continuous service at the time of lay-off shall
not be placed on the inactive seniority list, and those employes
who have more than one (1) year of continuous service will be
retained on the inactive list for a period of one-half of their
service credit.

The selection of persons for rehiring is a function of Manage-
ment, subject to the grievance procedure. When the inactive
seniority list of the bargaining unit does not provide qualified
employes, Management will select and employ such individuals
as required.

C. Transfer Procedure

Jobs are established either on an hourly-rated or salary basis
and transfers may be made between the two groups. When an
employe is transferred from a job on an hourly-rated basis to one
on salary, regardless of the duration of the transfer the method
of payment becomes effective the first day the change in work
Is made. A similar practice is to be followed in case of a transfer
from salary to hourly-rated basis.

An employe desiring a transfer will discuss the problem with
his supervisor. If a position cannot be found in his department
or division that Management is willing to offer him and which he
is willing to accept, the employe may file an application for trans-
fer with the Industrial Relations Representative and careful con-
sideration will be given to such requests. Transfers require time
to complete since a satisfactory position must be open and a re-
placement secured for the transferring employe. A request for a
transfer will not be used as a reason for separation.

An employe who left a position which is within the bargaining
unit, or a position which, if presently existing, would be within
the bargaining unit, will be returned to the bargaining unit with
the same seniority service credit as when transferred out, plus

146 WHITE COLLAR OR NOOSE?

credit for the period out of the bargaining unit. The above pro-
vision will not apply to non-supervisory employes returning from
bargaining units represented by other bargaining agents unless
such other bargaining agents have agreed to accord correspond-
ing treatment to employes returning to work in such units.

D. Upgrading

It is Management's responsibility to maintain an effective or-
ganization, and rearrangements in personnel are made with this
in mind, and Management welcomes recommendations in admin-
istering this policy

Upgrading of employes is recognized as a fundamental principle
in providing an efficient working force, and to provide reasonable
opportunities for promotion. In some instances transfers between
departments, divisions, or plants may be desirable. In reviewing
employes for upgrading, Management will give consideration to
the employe's qualifications for the position and his relative
seniority.

Filling vacancies in supervisory positions is exclusively the re-
sponsibility of Management. However, when filling vacancies into
supervisory positions by promotion, as distinguished from up-
grading within the bargaining unit, Management's policy is to
give consideration to the employe's fitness for the position, and his
relative seniority.

The details of administration of this general policy, including
job posting for jobs within the bargaining unit, are a subject for
local negotiations.

E. Leave of Absence

The term "Leave of Absence" applies to a continuous period
away from work without pay where the intent is to reinstate the
employe at the expiration of the leave, subject to the prevailing
conditions at that time, his return to work within the period of
the leave of absence, and qualification under the usual employ-
ment standards including a physical examination. Seniority
credit will be given for periods covered by a leave of absence.

An employe may request a physical examination before taking
such leave of absence. Physical defects will be recorded and
brought to the attention of the employe. Physical deficiencies, so

NECESSITY OF A SIGNED CONTRACT 147

recorded, will be given consideration by the Medical Department
in determination of medical standards for returning to work at
the end of the leave of absence period.

The request for a leave of absence will be considered on the
basis of production requirements, a satisfactory performance rec-
ord, the reason for the request, and the length of service of the
employe.

Where a request for leave of absence is made for a period of
more than three months, the leave will be granted for ninety
days and consideration may be given to an extension at the ter-
mination of the ninety day period. In no case will the total period
exceed twelve months, except as outlined below.

An employe elected to an office of the Federation or as a dele-
gate to any Federation activity or appointed as a Federation
representative, necessitating leave of absence, will be granted the
usual leave of absence, without losing seniority, not to exceed one
year, unless an extension is granted. The determination as to
whether such an extension will be granted will be reached
through collective bargaining between the Union and Manage-
ment, but in no case shall leave or leaves of absence or extension
thereof total more than three (3) years. At the termination of
this leave of absence, the employe will be restored to his former
position or equivalent at the rate commensurate with his previous
rate.

F. Furloughs

When furloughing of employes becomes necessary, the local
representatives will receive such reasonable advance notice as is
practicable under the circumstances. Furloughs are of three (3)
types:

1. Regular furloughs are a number of days off per week or per
month without pay given employes as a part of the program of
sharing work in lieu of reduction of force.

2. Emergency furloughs are periods off without pay resulting
from material shortages, power failures, labor disturbances or
other conditions where transfer of employes to provide work is
not feasible. When such conditions are anticipated, the subject
will be discussed with the Affiliate Negotiating Committee.

148 WHITE COLLAR OR NOOSE?

3. Disciplinary furloughs are time off without pay as a punish-
ment for misconduct of an employe.

G. Dismissals

When dismissals (discharges, releases, lay-offs) are necessary,
the employe will be notified of the reasons for his dismissal, and
in case of lay-offs or releases after one year of service, two weeks'
notice will be given. The group representative of the Affiliate will
be notified within twenty-four ( 24 ) hours after the notification to
the employe, unless working out of the two weeks' notice is
waived by the Company, in which case the representative will
be notified 24 hours prior to notification being given the employe.

Employes with less than one year of service will be given at
least one week's notice of lay-off, and the group representative
of the Affiliate will also be notified within twenty-four ( 24 ) hours
after the notification to the employe.

In the case of disciplinary discharges, the notification may fol-
low actual separation of the employe from the roll.

Employes during a one year's probationary period, after being
warned and their representative advised that their services are
not satisfactory, may be released without further notice.

When it becomes necessary to lay off, employes with less than
one ( 1 ) year of service may be dropped from the rolls and need
not be transferred to another department in order to retain them
on the rolls. Transfers of an individual employe within or be-
tween departments to comply with seniority provisions will de-
pend on the ability of the employe to acceptably perform the
job, and if work which the employe can acceptably perform is
not available, the employe may be laid off. Such transfers will
not be more frequent than every six months. Departments will be
defined in local supplements.

MISCELLANEOUS PROCEDURES— SECTION IX

A. Jury Duty

Salaried employes will be paid their regular salary while on
jury duty but will be expected to report for their regular duties
when temporarily excused from attendance at court. No salary

NECESSITY OF A SIGNED CONTRACT 149

will be paid during furloughs or days that would have been fur-
loughs while on jury duty.

B. Voluntary Employes Benefit Plans

The Federation will be advised fifteen (15) days before any
major benefit established in one of the Company's voluntary
plans is materially changed or eliminated.

OVERTIME— SECTION X
A. Non-exempt Employes

Hours worked by non-exempt employes, except hours worked
on Sunday, in excess of 8 hours in any day or 40 hours per week,
will be paid at an overtime rate of one and one half times the
employe's average earned hourly rate.

Absent hours considered as involuntary will be considered as
hours worked for determining overtime. Involuntary absences are
defined as follows:

1. Funeral or death in the immediate family ( includes relatives
living in the same household with the employe, or mother, father,
brother, sister, or child, who are not of the same household).

2. Jury duty.

3. Injury or illness of the employe.

4. Furloughs for which deduction from pay is made except in
case of disciplinary furlough.

5. Holidays and vacation days.

6. Union activities by elected representatives as contemplated
in this agreement.

Hours worked by non-exempt employes on Sunday after forty
straight-time hours (including involuntary absences) have been
worked in the week will be paid at an overtime rate of twice the
employe's average earned hourly rate.

Hours worked on holidays by non-exempt employes will be
paid at an overtime rate of one and one half times the employe's
average earned hourly rate. Such payment is in addition to the
employe's salary if the holiday falls within the. work week, Mon-
day to Friday inclusive. No salaried payment is made to em-
ployes for holidays falling on Saturdays not worked.

The above provisions apply to the standard basic work week.

150 WHITE COLLAR OR NOOSE?

Special conditions may require exceptions and local overtime pro-
visions to cover such exceptions. These questions are a subject
for local negotiations.

The earned rate for overtime purposes will consist of straight
time earnings, including base rate, night turn bonus, group
leader remuneration, and incentive payments.

B. Exempt Employes

Administrative and professional employes, exempt under the
Fair Labor Standards Act, will, when agreed upon locally, be
issued exempt passes.

Overtime hours of exempt employes in District Field areas
will be paid on the basis of scheduled hours as provided in a
supplement hereto.

Employes who are issued exempt passes shall be paid for extra
hours only when scheduled by the supervisor. Incidental over-
time worked shall be regarded as casual and a part of the job
requirement and not subject to inclusion in schedules. Scheduled
overtime will approximate overtime requested or approved by the
responsible supervisor. Schedules will be prepared on a monthly
basis, in advance, and expressed in terms of equivalent weekly
hours. As a general policy schedules requiring Sunday and holi-
day work should be avoided.

Vacation payment will be limited to the basic work week.

Payment for scheduled overtime will be in accordance with the
following schedules:

Pay for Scheduled Overtime

Base Salary Rates for 40 hours over 40 Hours per Week
Up to and including $400.00 Time and one-half,
per month ($92 per week).

Over $400 per month (over $92 $15.00 per scheduled hour
per week). ($3.50 per scheduled hour for

weekly paid employes) with a
maximum payment of $750.00
per month ($173 per week)
less 10^ for each $1.00 of base
rate under $750 per month
($173 per week).

NECESSITY OF A SIGNED CONTRACT 151

HOLIDAYS— SECTION XI

Holidays observed by the Company will be New Year's Day,
Washington's Birthday, Memorial Day, Independence Day, Labor
Day, Thanksgiving, and Christmas. Special days observed in local
areas will not be considered as holidays observed by the Com-
pany, but as "time off" days.

When a holiday falls on Sunday, it will be observed the follow-
ing Monday. Basic hours on a holiday will be credited as time
worked for salaried employes, when the holiday is observed
within the basic work week of the individual.

VACATION— SECTION XII

The vacation periods of employes will be arranged so that they
do not unreasonably interfere with the operation of the plant or
office. Insofar as practical, the employe will be permitted to take
a period satisfactory to him. Where more employes in the same
position desire the same vacation period than can be permitted
to be absent, preference will be based on service credit.

Certain plants or offices will shut down each year for vacation
purposes, and the time of the year for shut-down will be a matter
for local negotiations. In these locations the vacation will run
concurrently with the shut-down period. Employes who become
eligible for vacations subsequent to the annual shut-down, but
before the end of the year, will be granted vacation pay when
they become eligible, if they were absent during the shut-down
period, without additional time off for vacation. It is recognized
that some employes will be requested to work during the shut-
down period.

Salaried employes having one year continuous employment on
salary immediately preceding the time of starting vacation will
receive a vacation of two (2) weeks with pay. Salaried employes
with five years total service will receive a two (2) weeks vacation
after six months' continuous employment immediately preceding
the time of starting vacation. Salaried employes with twenty (20)
years total service, having six (6) months' continuous employ-

152 WHITE COLLAR OR NOOSE?

ment immediately preceding the time of starting vacation, will
receive a total of three (3) weeks' vacation with pay.

Salaried employes working on an incentive basis will be paid
vacations at their current base rate plus the average weekly in-
centive bonus for the preceding calendar quarter.

In the case of a salary employe where the one year of service
immediately preceding the vacation period is a combination of
hourly and salary and which includes at least three months on
the salary roll (not necessarily continuous), the vacation will be
the same as for all other qualified salary employes. An employe
will be entitled to vacation for which he would have been en-
titled as an hourly paid employe up to the time he has completed
3 months of service on the salary roll. If not qualified for vacation
at the time of transfer, he will be entitled to a vacation on hourly
basis if he qualifies before completion of 3 months of service on
salary, and after completing his three months of service he will
qualify for any difference between salary and hourly paid vaca-
tion hours providing the 3 months are completed on or before
December 31 of the year in which the transfer occurs.

When an established holiday or its observance falls on a nor-
mal week day within the vacation period of a salary employe, an
additional vacation day will be granted.

It is the responsibility of Management to see that all employes
take their allotted vacations.

When an employe is removed from the active payroll for any
reason, except disciplinary discharge, payment for vacation not
taken for the current year will be made if the employe has quali-
fied for vacation.

BULLETIN BOARDS— SECTION XIII

The Company will permit the use of bulletin boards for the pur-
pose of posting Federation and Affiliate notices or other informa-
tion of interest to Federation members. All such notices will be
subject to the Management's approval and arrangements made
by local Management for posting.

NECESSITY OF A SIGNED CONTRACT 153

SETTLEMENT OF DISPUTES— SECTION XIV

The Federation or the Affiliates will not cause or officially sanc-
tion their members to cause or take part in any strike (including
sit-downs, stay-ins, slow-downs or any other stoppages of work),
nor will the Company lock out any employes or transfer work
from any location, because of a dispute which is within the proper
scope of the grievance procedure provided in this Agreement or
the applicable local supplement, until such time as the grievance
procedure has been fully exhausted, and in the event of a strike,
it is authorized by the Federation. The Federation will notify the
Company seven (7) days before it grants authorization to the
Affiliate to strike.

Requests for contractual changes or additions to this Agree-
ment or the local supplements are not proper subjects for con-
sideration under the grievance procedure.

There shall be no strikes, during the life of this Agreement,
in connection with demands for contractual additions or changes
to this Agreement or the local supplements.

Employes taking part in any strikes in violation of this Agree-
ment will be subject to disciplinary action.

Should the Management and Affiliate fail to adjust a grievance
arising under this Agreement or the local supplements, such
grievance shall be referred to the Company and the Federation.
The Federation and the Company shall submit to each other, by
the 10th of each month, any grievances referred to them by the
Affiliate or the local Management, and during the remainder of
the month (except in case of an emergency, in which event a
special meeting may be arranged) the representatives of the
Company and the Federation shall meet in an effort to settle
such grievances that have been referred to each party during the
first ten days of the month. Should the Federation and the Com-
pany fail to settle any of such grievances, then the parties may
consider referring such matters to an impartial umpire or board
by mutual agreement.

154 WHITE COLLAR OR NOOSE?

PAYMENT FOR NEGOTIATING TIME— SECTION XV

It is agreed that negotiating time will be kept to a minimum
commensurate with good practice and in the interest of efficiency.
Unless of such nature as to be termed urgent, negotiating time
will be scheduled by Management and the Federation or Affiliate
representatives in advance and in such manner as to least interfere
with regular work schedules.

Local Managements of the Company are to be kept advised by
the Affiliates as to the names of their authorized representatives.

The following procedure will apply:

A. Officers and other representatives of the Affiliates and/or the
Federation, whether exempt or non-exempt employes, must give
notification to and secure a time report from their respective
supervisors when stopping work to conduct union business,
whether or not with Management (including, without limitation,
investigation of complaints that may lead to grievances, handling
and adjustment of grievances and attendance at meetings of
Union committees ) and must return the report to the supervisors
when again ready to start work.

B. Payment will be made by the Company at the representa-
tive's salary rate only (whether exempt or non-exempt employe)
for such time reports covering time spent in:

1. Investigation of complaints that may lead to grievances.

2. Handling and Adjustment of grievances.

3. Attendance at meetings with Management within the em-
ploye's basic work week.

4. Attendance at meetings with Management outside the em-
ploye's basic work week where such attendance is not voluntary.

Time covered by the above reports ( subparagraph B) will be
considered as hours worked for the purpose of determining over-
time.

C. The Affiliate will reimburse the Company for all such pay-
ments except payments on time reports covering meetings re-
quested by Management and rate reviews. The Company will
deduct amount for which it is entitled to reimbursement from any
amounts due the Affiliates, and the Affiliates will make up any

NECESSITY OF A SIGNED CONTRACT 155

deficiencies by separate payment. Time reports covering such
payments will be furnished to the Affiliates.

MODIFICATION — SECTION XVI

A. This Agreement expresses the understanding of the parties
and it will not be changed, modified, or varied except by a written
instrument signed by a duly authorized agent of each of the
parties hereto. Any negotiations relating to proposed changes or
additions in such provisions which are deemed to be Company-
wide and generally applicable to the various collective bargaining
units will be carried on between representatives as outlined in
Section II.

B. This Agreement covers Company-wide matters. All agree-
ments made locally, other than agreements as to settlement of
specific grievances, shall be embodied in local supplements to this
Agreement, agreed upon by the respective Affiliates and local
Managements. Such local supplements shall be in writing and
shall cover the procedures for administering the provisions con-
tained in this Agreement.

C. In addition, the respective Affiliates and Plant Manage-
ments may, at any time, present to each other subject-matters
covering items of collective bargaining not covered hereby and
not deemed of a Company-wide nature or generally applicable
to the various certified collective bargaining units, and any nego-
tiations relating to such proposed items will be carried on between
the respective Affiliates and Plant Managements and any such
matters agreed upon will be embodied in local supplements to
this Agreement.

D. Either party to this Agreement may, at any time, present
to the other party by written notice proposed changes in the pro-
visions of this Agreement or additions thereto as specified in the
first and third paragraphs of this Section XVI, together with a
statement of the reasons for such changes or additions. Within
thirty (30) days after such notice is given, a conference will take
place for the purpose of considering such proposed changes or
additions.

156 WHITE COLLAR OR NOOSE?

E. If the Company and the Federation do not reach agreement
prior to the end of the contract year with respect to any proposed
contractual changes or additions or demands of the Federation
for salary increases, submitted prior to March 1, of the contract
year, and neither party gives notice of termination of this Agree-
ment, the Federation may strike in support of any such proposals
or demands presented by it, and the Company may lock out em-
ployees in support of any such proposals presented by it, after
the beginning of the next contract year without violating Section
XIV or any other provision of this Agreement, but in the event of
such a strike or lockout either party may thereafter, upon one
day's written notice given to the other party during such strike or
lockout, terminate this Agreement.

F. The procedure outlined in the foregoing paragraph shall
also apply with respect to unresolved issues involving local sup-
plements at the end of any contract year, except that the right
to strike or lock out employes shall be limited to the bargaining
unit or units involved in the dispute, and the parties shall have
the right to terminate this Agreement insofar as it applies to such
bargaining unit or units upon not less than three ( 3 ) days' written
notice. In the event of termination of this Agreement insofar as
it applies to a particular bargaining unit or units, all local sup-
plements in effect in such unit or units shall also automatically
terminate.

TERMINATION— SECTION XVII

This Agreement terminates and supersedes the Agreement be-
tween the parties hereto entered into October 12, 1945, as modi-
fied by Supplement III dated the 15th day of April, 1946, and
Supplements I and II to said Agreement.

All local supplements to the above-mentioned October 12, 1945,
Agreement in effect on April 29, 1947, are hereby continued in
effect, in accordance with their terms and to the extent they do
not conflict with any provision of this Agreement, as local supple-
ments to this Agreement in the same manner as though they were
rewritten and reexecuted as local supplements to this Agreement.

NECESSITY OF A SIGNED CONTRACT 157

If any proposed changes in or additions to any local supple-
ment, covering items for collective bargaining usually included
in local supplements and which are not Company-wide in
character and not generally applicable to the various collective
bargaining units, are presented to the other party thereto in ac-
cordance with subparagraphs C and D of Section XVI on or De-
fore May 29, 1947, and agreement on such proposed changes or
additions is not reached on or before June 29, 1947, the Affiliate
shall have the right to strike at any time within ten (10) days
thereafter in support of any such proposals made by it, providing
such strike is authorized by the Federation, notwithstanding the
provisions of Section XIV of this Agreement or of the local sup-
plement. Such right to strike shall be limited to the bargaining
unit or units involved in the dispute and either the Company or
the Federation shall have the right, on written notice to the other
party of not less than three (3) days given during such strike, to
terminate this Agreement insofar as it applies to such bargaining
unit or units. In the event of any such termination of this Agree-
ment, all local supplements in effect in such unit or units shall
also automatically terminate. During the same ten (10) day
period the Company shall have the right to terminate any pro-
visions of such local supplements which are the subject of pro-
posals submitted by the Company as above provided.

This Agreement and Supplements I and II attached hereto
and made a part hereof, and any future Supplements to this
Agreement, shall be binding upon the parties hereto and shall
continue in full force and effect for a period of one year from
the effective date hereof, and thereafter from year to year (each
such year is sometimes referred to herein as the "contract year"),
provided that either party may terminate this Agreement and
such Supplements at the end of the first or any succeeding con-
tract year by giving the other party written notice of such termina-
tion at least thirty ( 30 ) days before the termination date.

Upon termination of this Agreement, all local supplements to
this Agreement shall automatically also terminate. Any such local
supplement may also be terminated by any party thereto at
midnight on the last day of the first or any subsequent contract

158 WHITE COLLAR OR NOOSE?

year during the life of this Agreement by giving at least thirty
(30) days' prior written notice to the other party or parties. In
addition to the foregoing provision for termination, which shall
apply to all local supplements, the local supplements or parts
thereof may also be terminated in accordance with any special
termination provision that may be negotiated locally by local
Managements and the Affiliates and specifically stated in the
local supplement involved.

In the event that notice of termination of this Agreement is
given in accordance with the foregoing provisions, which sKall
automatically also constitute notice of termination of all local
supplements, the Affiliates and local Managements shall have the
right by mutual consent to enter into local agreements on local
matters, to continue in effect after termination of this Agreement
and all local supplements.

EXCEPTIONS— SECTION XVIII

Exceptions to this Agreement are made with respect to the bar-
gaining unit at Hyde Park, Mass., Sturtevant Division (Item 12
of the Appendix) as follows:

1. Section V and the third paragraph of Section VIII shall not
apply to such unit.

2. Armistice Day shall be observed as a holiday in such unit
pursuant to Section XI, in place of Washington's Birthday.

APPROVAL— SECTION XIX

This Agreement is subject to approval by the Federation and all
the Affiliates involved; and shall not become binding upon the
Company or the Federation unless the Federation notifies the
Company of such approval on or before May 6, 1947.

WESTINGHOUSE ELECTRIC CORPORATION
ByW. O. LIPPMAN
Vice President

FEDERATION OF WESTINGHOUSE INDEPENDENT
SALARIED UNIONS
BY LEO F. BOLLENS

NECESSITY OF A SIGNED CONTRACT 159

District Field Area
Overtime

SUPPLEMENT I

Dated the First Day of April, 1947
Supplement to Agreement dated the First Day of April, 1947

Between
WESTTNGHOUSE ELECTRIC CORPORATION

and
FEDERATION OF WESTINGHOUSE INDEPENDENT SALARIED UNIONS

District office exempt employes will be paid overtime on a sched-
uled hours basis in line with the following:

A. District Offices (except Service Organization)

The scheduled hours for overtime for Salesmen, Sales En-
gineers, District Engineers and other exempt employes will be
based on the hours established for their office location. Excep-
tions may be made when unbalanced loading occurs.

B. Service Organization

( 1 ) The District Engineering and Service offices will establish
scheduled hours as the activities of the various groups of em-
ployes justify. The work schedule may vary from month to month,
as conditions warrant, and will be based on the supervisors' best
estimate of the load ahead and past month's performance.

(2) The District Engineering and Service offices will recognize
unusual requirements of a large installation or repair job of more
than one month's duration and special activities such as shipyards,
U. S. Navy Yards, etc. and will in such cases establish scheduled
hours on a selective basis consistent with the hours established
for the job or activity.

( 3 ) Schedules will be established the first of the current month
and payment for the month will be made on these schedules. The
local Union representatives will be notified in writing of these
schedules, and the records of time worked by exempt employes
will be available to the local Union representative on request.

160 WHITE COLLAR OR NOOSE?

C. Compensation For Scheduled Hours

Payment for scheduled overtime hours will be in accordance
with Section X— Overtime of the Agreement of which this Supple-
ment I is a part.

WESTINGHOUSE ELECTRIC CORPORATION

BY W. O. LIPPMAN
Vice President

FEDERATION OF WESTINGHOUSE INDEPENDENT
SALARIED UNIONS
BY LEO F. BOLLENS

District Field Area

Seniority
SUPPLEMENT II

Dated the First Day of April, 1947
Supplement to Agreement dated the First Day of April, 1947

Between
WESTINGHOUSE ELECTRIC CORPORATION

and
FEDERATION OF WESTINGHOUSE INDEPENDENT SALARIED UNIONS

A. Probation Period

An employe will not be recognized as having established senior-
ity until he has completed a probation period of one year, and
satisfactory progress has been demonstrated. If incompetent, he
will be released without seniority status. It is understood that
accepted methods of selection may be used for employment or
transfers.

B. Service Credit

(1) An employe upon employment will receive service credit
for each period of Company employment providing there has not
been a break in service of more than five years, in which case

NECESSITY OF A SIGNED CONTRACT 161

credit will be given only for periods of employment following
the most recent five year break in service.

(2) An employe on leave of absence is considered as on the
roll and will accumulate service during leave of absence.

(3) If an employe is transferred into the bargaining unit, he
will be granted service credit in accordance with the provisions
in paragraph (1) of this section.

(4) An effective service date for employes will be established
at the time of employment or transfer into the unit. Credit will
be granted for previous service as prescribed in paragraph ( 1 ) of
this section in establishing the effective service date for an em-
ploye.

(5) The recognized service credit shown on the Seniority List
of former employes (off-roll) will be the difference between the
effective service date and the date of lay-off.

(6) A Seniority List of former employes (off-roll) having
seniority status will be maintained and will be available for
inspection by the members of the Negotiating Committee of the
Union.

C. Loss of Seniority Status

(1) The names of employes will not be added to, or if listed
will be removed from the list of former employes with seniority
status, for one of the following reasons:

( a ) When an employe quits of his own volition.

(b) When an employe is released or discharged for cause.

(c) When an employe fails to acknowledge receipt of notice
( with copy of notice to Union ) to return to work within five work-
ing days after the mailing date of the notice. The name of the
employe will be restored to the list of former employes having
seniority status if he is able to prove that he had not received
the notice within the five day period and he had attempted at the
earliest reasonable date to contact the employment department.

(d) When a former employe on the seniority list has not been
called for employment within a period of time equal to one-half
his service credit but not less than one year.

( e ) When a former employe, having been notified to return to

162 WHITE COLLAR OR NOOSE?

work, refuses to accept the position available, if the position is
reasonably similar in salary and duties to his former position.
Cases may arise where the question of retaining the former em-
ploye's name on the seniority list may be desirable. In such cases
the question will be decided through collective bargaining based
on the facts.

(2) The Union will be notified in writing of any names re-
moved from the Seniority List, with reasons.

D. Reduction of Force

( 1 ) The recognized basic units for the application of furloughs
and lay-offs will be the following departments:

(a) Application Engineering and Order Service

(b) Engineering and Service

(c) M & R

(d) Electric Appliance

(e) Lamp

(f) Accounting

(g) Treasury

(2) When activity falls adjustments will be made by transfers
where possible.

(3) Where adjustments cannot be made by transfer, a reduc-
tion in force or a change in working schedule will be determined
through collective bargaining between Management and local
Negotiating Committees before action is taken.

(4) Where a reduction in force is worked out, it will be on
the basis of seniority. Certain employes in the bargaining unit
may be exempted from a reduction in force for the purpose of
maintaining effective organization. Such exemptions will be de-
termined through collective bargaining between Management
and local Negotiating Committees prior to being put into effect.

(5) In applying the reduction of force, officers, district and
group representatives of the Union will be granted, during their
term of office, senior seniority status in their respective units.

E. Increase of Force

( 1 ) In selecting individuals for employment during the periods
of expanding activity, the former employe having the most senior-

NECESSITY OF A SIGNED CONTRACT 163

ity credit and capable of doing the work will be employed first,
consideration being given to experience on same or similar jobs.

NOTE: An employee will be recognized as qualified to fill
a position when he is considered able to perform the
duties of the position in an acceptable manner after
a period of three months.

(2) When an employe is rehired to the position previously
held or one of equal classification, he will receive a salary based
on experience and the type of work on which he is being em-
ployed.

(3) Management will give consideration to previous service
in establishing physical requirement when rehiring former em-
ployes with seniority status.

F. Employment of Married Women

( 1 ) Married women, living with their husbands able to work,
will not be employed.

(2) Women married while on the payroll may remain if they
so choose.

(3) Married women whose husbands are working will not
hold seniority rights at a time when a reduction in force is made
due to low activity, over single women or married women with-
out support.

WESTINGHOUSE ELECTRIC CORPORATION
BY W. O. LIPPMAN

Vice President

FEDERATION OF WESTINGHOUSE INDEPENDENT
SALARIED UNIONS
BY LEO F. BOLLENS
SUPPLEMENT III
Dated the 1st Day of April, 1947
Supplement to Agreement Dated the 1st Day of April, 1947

Between
WESTINGHOUSE ELECTRIC CORPORATION

and
THE FEDERATION OF WESTINGHOUSE INDEPENDENT SALARIED UNIONS

164 WHITE COLLAR OR NOOSE?

General Adjustments

A. General Salary Increase

The Company agrees to grant a general salary increase to all
salary employes covered by this Agreement on a forty (40) hour
weekly schedule as follows:

(1) An increase of $21.00 per month (or $4.85 per week) to all
employes whose salary on the effective date is less than $200.00
per month (or $46.20 per week).

(2) An increase of $21.70 per month (or $5.00 per week) to all
employes whose salary on the effective date is between $200.00
per month (or $46.20 per week) and $310.00 per month (or $71.50
per week), inclusive.

(3) An increase of 1% to all employes whose salary on the
effective date is more than $310.00 per month (or $71.50 per
week).

Proportionately smaller increase will be granted to employes
on a weekly schedule of less than forty (40) hours.

B. Key Sheets

The maximum of present salary key sheet classifications (40
hour) will be increased by adding thereto the following amounts:

Amount to be Added

(1) If the present maximum is under $21.00 (or $4.85 per
$200 per month (or $46.20 per week)

week)

(2) If the present maximum is be- $21.70 (or $5.00 per
tween $200 per month (or $46.20 week)

per week) and $310 per month
(or $71.50 per week), inclusive

(3) If the present maximum is more 7% of the present maxi-
than $310 per month (or $71.50 mum.

per week. )

The minimum of such key sheet classifications will be increased
by such lesser amounts as will retain the same percentage ratios

NECESSITY OF A SIGNED CONTRACT 165

of minimums to maximums as existed before the above-men-
tioned increases in the maximums, respectively.

Proportionately smaller increases will be made in the maximum
and minimum of salary key sheet classifications for less than a
forty (40) hour weekly schedule.

C. Effective Date

The effective date of the general salary increase and key sheet
increase provided for in Paragraphs "A" and "B" above will be
April 1, 1947, providing the National Agreement between the
Westinghouse Electric Corporation and the Federation of West-
inghouse Independent Salaried Unions and National Supple-
ments I and II to such Agreement are signed on or before May
1, 1947, this Supplement III to such Agreement is signed on or
before May 6, 1947, and such Agreement and Supplements I, II,
and III are ratified by the Affiliates involved on or before May
6, 1947.

D. Changes and Additions to this Agreement

The Company and the Federation agree that neither of them
will request the other to consider any proposed changes in or
additions to this Agreement, including any general salary in-
crease (either locally or Company- wide), before January 1, 1948.
It is further agreed that any such changes, additions, or salary
increases requested after January 1, 1948, as above described, will
be made on the basis of an effective date not earlier than April 1,
1948, unless an earlier effective date is mutually agreed upon.

WESTINGHOUSE ELECTRIC CORPORATION

BY\¥. O. LIPPMAN
Vice President

FEDERATION OF WESTINGHOUSE INDEPENDENT
SALARIED UNIONS

BY LEO F. BOLLENS
May 5, 1947

166 WHITE COLLAR OR NOOSE?

APPENDIX

UNITS FOR WHICH THE UNION OR ITS AFFILIATES HAVE BEEN CERTI-
FIED AND/OR RECOGNIZED AND MADE A PART OF THIS AGREEMENT.
AS USED HEREIN, THE TERM "UNION" MEANS FEDERATION OF WEST-
INGHOUSE INDEPENDENT SALARIED UNIONS AND THE TERM "AFFIL-
IATES" MEANS A LOCAL UNIT OF THE FEDERATION.

ITEM 1
Location BALTIMORE

BARGAINING REPRESENTATIVE: Salaried Employes Association of
the Industrial Electronics Division

UNIT: All salaried, technical, office and office clerical employes
of Westinghouse Electric Corporation (Radio and X-Ray Di-
vision), Baltimore, Maryland, including time study clerks, who
are employed by the Company in its four plants located at Wilk-
ens Avenue, North Monroe Street and South Monroe Street,
Baltimore, Maryland, and its plant at Lansdowne, Maryland,
known as Plant 1, 2, 3, and 4, but excluding executive and super-
visory employes, Industrial Relations assistants, clerical staff
specialists, secretaries to department heads, clerical supervisors,
and all production and maintenance, and police employes.

ITEM 2
Location: BUFFALO

BARGAINING REPRESENTATIVE: Westinghouse Motor Salaried Em-
ployees Association

UNIT: All salaried employes, manufacturing engineers, classes
A, B, C, and D; engineers assistants; junior engineers, classes A
and B; engineers, test-record, classes A and B; engineers asso-
ciates; engineers (4-EB-l.O); engineers order service, class A;
senior engineers; engineers fellow; engineers contact, classes A
and B; industrial mathematicians and material and process en-
gineers of the Employer, Buffalo, New York, but excluding buyers,
sales correspondents, secretaries, secretary stenographers, and

NECESSITY OF A SIGNED CONTRACT 167

the following job classifications in the Industrial Relations Depart-
ment: stenographers, class A, preliminary interviewers, nurses;
women's counselors, interviewers and industrial relations assist-
ants; and all supervisory employes with authority to hire, promote,
discharge, discipline, or otherwise effect changes in the status of
such employes or effectively recommend such actions.

ITEMS
Location: BUFFALO

BARGAINING REPRESENTATIVE: Buffalo District Westinghouse Sal-
aried Employes Association

UNIT: All salaried employes below a supervisory capacity at
the Buffalo Administrative District of the Westinghouse Electric
Corporation.

ITEM 4
Location: CINCINNATI

BARGAINING REPRESENTATIVE: Association of Cincinnati Westing-
house Salaried Employes

UNIT: All salaried employes in the Cincinnati office of the
Westinghouse Electric Corporation, Cincinnati, Ohio, including
clerical employes, in the following groups— Apparatus Sales,
Engineering and Service, Manufacturing and Repair, Order Serv-
ice, Warehouse, Building Maintenance, and the Lamp Division,
but excluding supervisory and executive employes and secretaries
of such supervisory and executive employes and those having the
right to hire or discharge, and further excluding all employes of
the Cincinnati Service Shop known as the Manufacturing and
Repair Shop.

ITEM 5

Location: CLEVELAND

BARGAINING REPRESENTATIVE: Cleveland Association of Westing-
house Salaried Employes

UNIT: Clerical employes of Westinghouse Electric Corporation,
Lighting Division, Cleveland, Ohio, including engineers, time

168 WHITE COLLAR OR NOOSE?

study employes, the blueprint machine operators, the cost analyst,
the manufacturing analysts, the assistant purchasing agent, and
the nurse, but excluding supervisory employes.

ITEM 6
Location: CLEVELAND SERVICE SHOP

BARGAINING REPRESENTATIVE: Cleveland Association of Westing-
house Salaried Employes

UNIT: All the employes in the plant of Westinghouse Electric
Corporation, located at 5901 Breakwater Avenue, Cleveland,
Ohio, but excluding supervisory employes, and confidential secre-
taries of supervisory employes, and also excluding all production
and maintenance employes at such plant.

ITEM?
Location: DERRY

BARGAINING REPRESENTATIVE: Association of Westinghouse Sal-
aried Employes

UNIT: All clerical and technical employes of Westinghouse
Electric Corporation, Derry, Pa., including hourly paid shop clerks
but excluding supervisors.

ITEMS
Location: DETROIT

BARGAINING REPRESENTATIVE: Westinghouse Detroit Salaried
Association.

UNIT: All office and clerical employes at the Company's De-
troit district office plant, including employes listed in Appendix
A, attached hereto, but excluding confidential secretaries, 15/time
and motion analysts, inspectors, receiving and shipping clerk,
shipping clerk, and technical and professional employes listed
in Appendix B, attached hereto.

NECESSITY OF A SIGNED CONTRACT 169

The positions listed in Appendix A are as follows:
Production clerks, General duty clerks, Typists and dictaphone
operators. Stock ledger clerks, Repair correspondents, Stenog-
raphers, Service correspondents, Appl. Engineering Assts., Semi-
techn. appl. Engg. Assts., Dist. order clerks, Routine appl. engg.
assts., Teletype operators, Telephone operators, File clerks, Treas-
ury-acctg. clerks, Office Suprs. Assts., Claim clerks, Watchmen-
elevator opers., Record clerks.

15/Excluded as confidential employes are the secretary to the
district manager, and secretaries to the manager of the mfg. and
repair, lamp, and X-ray divisions.

The positions listed in Appendix B are as follows:
Lay-out design draftsmen, Detail draftsmen, Design engineers,
Lamp representatives, X-ray application engineers, Supervisory
service engineers, District engineers, Application engineers-
special, Application engineers, Technical-specialists, Production
specialists.

ITEM 9
Location: DETROIT

BARGAINING REPRESENTATIVE: Westinghouse Detroit Salaried
Association

UNIT: All technical and professional employes at the Com-
pany's Detroit district office plant, including employes listed in
Appendix B, attached hereto but excluding confidential secretar-
ies, 16/time and motion analysts, inspectors, receiving and ship-
ping clerk, shipping clerk, and office and clerical employes listed
in Appendix A, attached hereto.

The positions listed in Appendix A are as follows:
Production clerks, General duty clerks, Typists and dicta-
phone operators, Stock ledger clerks, Repair correspondents,
Stenographers, Service correspondents, Appl. Engineering Assts.,
Semi-Techn. appl. Engg. Assts., District order clerks, Routine
appl. engg. assts., Teletype operators, Telephone operators, File
clerks, Treasury-acctg. clerks, Office suprs. Assts., Claim clerks,
Watchmen-elevator opers., Record clerks.

170 WHITE COLLAR OR NOOSE?

The positions listed in Appendix B are as follows:
Lay-out design draftsmen, Detail draftsmen, Design engineers,
Lamp representatives, X-ray application engineers, Supervisory
service engineers, District engineers, Application engineers-
special, Application engineers, Technical-specialists, Production
specialists.

16/Excluded as confidential employes are the secretary to the
district manager, and secretaries to the managers of the mfg. and
repair, lamp, and X-ray divisions.

ITEM 10
Location: EAST PITTSBURGH

BARGAINING REPRESENTATIVE: Association of Westinghouse Sal-
aried Employes

UNIT: The salaried employes of Westinghouse Electric Corpor-
ation at its East Pittsburgh Unit, excluding supervisory employes
and excluding all tool designers and machine tool designers,
telephone maintenance employes, and junior and senior order
clerks in the shipping department.

ITEM 11
Location: EAST SPRINGFIELD

BARGAINING REPRESENTATIVE: Association of Westinghouse Sal-
aried Employes (East Springfield Plant)

UNIT: All clerical employes at the East Springfield Plant of
Westinghouse Electric Corporation, East Springfield, Massachu-
setts, including draftsmen, but excluding shop clerical workers,
tool designers, technical and service engineer, confidential secre-
taries, confidential pay-roll and savings clerks, nurses, police,
time and method analysts, executives, supervisors, and all other
supervisory employes with authority to hire, promote, discharge,
discipline, or otherwise effect changes in the status of employes,
or effectively recommend such action.

NECESSITY OF A SIGNED CONTRACT 171

ITEM 12
Location: HYDE PARK (STURTEVANT DIVISION)

BARGAINING REPRESENTATIVE: Time Study Methods Engineers
Association

UNIT: All time study methods engineers of the Westinghouse
Electric Corporation (Sturtevant Division), Hyde Park, Massa-
chusetts, but excluding manufacturing engineers, office and cleri-
cal employees, and all supervisory employes who have authority
to hire, promote, discharge, discipline or otherwise effect changes
in the status of employes or effectively recommend such action.

ITEM IS
Location: LIMA

BARGAINING REPRESENTATIVE: Lima Westinghouse Salaried Em-
ployes Association

UNIT: All salaried technical and clerical employes at the Lima,
Ohio, plant of the Westinghouse Electric Corporation, excluding
shop production clerks, secretary to the Plant Manager, secretary
to the Manager of Industrial Relations, and all supervisory em-
ployes with authority to hire, promote, discharge, discipline, or
otherwise effect changes in the status of employes or effectively
recommend such action.

ITEM 14
Location: Los ANGELES

BARGAINING REPRESENTATIVE: Los Angeles District Association of

Westinghouse Salaried Employes

UNIT: All salaried employes in the Los Angeles District of
Westinghouse Electric Corporation, Los Angeles, Calif., including
clerical employes, and employes in the sales, engineering, ac-
counting, treasury, merchandising, warehouse, building-main-
tenance, lamp and service departments, and the X-Ray Division,
but excluding supervisory employes and executives.

172 WHITE COLLAR OR NOOSE?

ITEM 15
Location: MANSFIELD

BARGAINING REPRESENTATIVE: Westinghouse Salaried Employes
Association

UNIT: All salaried employes in the following departments of
the Westinghouse Electric Corporation at its Mansfield, Ohio,
plant— Appliance Engineering, Refrigeration Cabinet Engineer-
ing, Industrial Heating Engineering and Works Engineering, but
excluding supervisors and confidential secretaries.

ITEM 16
Location: NEWARK (Service Engineers)

BARGAINING REPRESENTATIVE: Association of Newark Westing-
house Salaried Employes

UNIT: All design engineers employed by Westinghouse Elec-
tric Corporation at the Newark, New Jersey, Manufacturing
and Repair Plant, excluding the supervisor of engineering.

ITEM 17
Location: NUTTALL (Pittsburgh)

BARGAINING REPRESENTATIVE: Association of Westinghouse Nut-
tall Employes

UNIT: Salaried employes of Westinghouse Electric Corpora-
tion at the R. D. Nuttall Plant, Pittsburgh, Pa., exclusive of in-
spectors and supervisory employes.

ITEM 18
Location: PITTSBURGH (Central District)

BARGAINING REPRESENTATIVE: Association of Westinghouse Sal-
aried Employ^ ;

UNIT: All emj :>yes of the Central District Sales Main Office
of t e Company in Pittsburgh, Pa., including the sales depart-

NECESSITY OF A SIGNED CONTRACT 173

ment, engineering and service department, all treasury and ac-
counting employes, and general employes employed in connection
with the Central District Sales Main Office, but excluding general
headquarters employes, any employes of the above mentioned de-
partments who are employed at the Homewood Works, super-
visory employes, and confidential secretaries to the principal
managers.

ITEM 19
Location: PITTSBURGH (Headquarters)

BARGAINING REPRESENTATIVE: Association of Westinghouse Sal-
aried Employes

UNIT: All salaried employes in the Financial Accounts Di-
vision of the Westinghouse Electric Corporation located in Union
Bank Building, Pittsburgh, Pa., except for confidential secretaries
and supervisory employes with authority to hire, promote, dis-
charge, discipline or otherwise effect changes in the status of
employes or effectively recommend such action.

ITEM 20
Location: PHILADELPHIA

BARGAINING REPRESENTATIVE: Middle Atlantic District Salaried
Employes Association

UNIT: All salaried employes of the Middle Atlantic District
Main Office, of the Westinghouse Electric Corporation, located
at 3001 Walnut St., Philadelphia, Pa., including those in the ap-
plication engineering and order service department, engineering
and service department, lamp division, electric appliance division,
treasury department, accounting department, X-ray Division,
and manufacturing and repair department, but excluding confi-
dential secretaries, telephone operators, all employes in the tur-
bine division, the shop clerk of the maintenance and repair de-
partment shop, and all supervisory employes with authority to
hire, promote, discharge, discipline, or otherwise effect changes
in the status of employes or effectively recommend such action.

174 WHITE COLLAR OR NOOSE?

ITEM 21
Location: RESEARCH LABORATORY (East Pittsburgh)

BARGAINING REPRESENTATIVE: Association of Westinghouse Sal-
aried Employes

UNIT: All employes in the research Department of the Corpora-
tion in East Pittsburgh, Pa., including clerical employes, and
laboratory assistants, but excluding engineers, scientific research
men, supervisors, and the confidential secretary to the Director
of Research.

ITEM 22
Location: SHARON

BARGAINING REPRESENTATIVE: Sharon Westinghouse Employes
Association

UNIT: All salaried employes of Westinghouse Electric Corpora-
tion at its Sharon, Pennsylvania, Plant, exclusive of supervisory
employes, Otto J. Manse, Albert Molnar, Alice P. Joyce, inspec-
tors, employes in the Production Department, and employes in
the Stores and Shipping Dept., except those in the Purchasing
Dept.

ASSENTED TO:

AFFILIATE: Salaried Employes'!

Association of the Industrial Elec- 1 For Item 1 of the Appendix

tronics Division

By WILLIAM H. ROBERTS

AFFILIATE: Westinghouse Mo-)

tor Salaried Employes Association} For Item 2 of *** Appendix

By CLIFFORD W. ROE

AFFILIATE: Buffalo District!

Westinghouse Salaried Employes L For Item 3 of the Appendix

Association

By FRED B. MEAD

NECESSITY OF A SIGNED CONTRACT 175

AFFILIATE: Association of Cin-1

cinnati Westinghouse Salaried L For Item 4 of the Appendix

Employes

By E. D. KROEGER

AFFILIATE: Cleveland Associa-1 „ - , 0 £ ,,

r TTT ... i c i • j TT For Items 5 and 6 of the
tion or Westinghouse Salaried Em- y . , .

ployes } APPeDdlX

By THEODORE W. REESE

AFFILIATE: Association of West-) For Items 7, 10, 18, 19, and
inghouse Salaried Employes } 21 of the Appendix
By JOHN H. DILLON

AFFILIATE: Westinghouse De-) For Items 8 and 9 of the
troit Salaried Asociation } Appendix

By J. E. MCALONAN

AFFILIATE: Association of West-1

inghouse Salaried Employes (E. L For Item 11 of the Appendix

Springfield Plant)

By WILLIAM J. DRISCOLL

AFFILIATE: Time Study MethO

ods Engineers Association \ For Item 12 of *** APPendix

By GEORGE MCDONALD

AFFILIATE: Lima Westinghouse)

Salaried Employes Association \ For Item 13 of ** Appendix

By R. L. RULEFF

AFFILIATE: Los Angeles Dis-]

trict Association of Westinghouse L For Item 14 of the Appendix

Salaried Employes

By R. J. WALKER

AFFILIATE: Westinghouse Sal-)

aried Employes Association } For Item 15 of ^ Appendix

By E. O. MORTON

176 WHITE COLLAR OR NOOSE?

AFFILIATE: Association of New-]

ark Westinghouse Salaried Em- 1 For Item 16 of the Appendix

ployes

By A. B. NIEMOLLER

AFFILIATE: Association of West-)

inghouse Nuttall Employes j For Item 17 of the APPendlx

By AGNES SCHMIDT

AFFILIATE: Middle Atlantic]

District Salaried Employes Asso- L For Item 20 of the Appendix

ciation

By HARRY J. SCHAEFER

AFFILIATE: Sharon Westing-)

house Employes Association j For Item 22 of ^ APPendlx

By W. M. BOGERT

East Pittsburgh Local Supplement

to

Agreement
between

WESTINGHOUSE ELECTRIC CORPORATION AND OTHERS

and

FEDERATION OF WESTINGHOUSE INDEPENDENT SALARIED UNIONS
Dated the 12th day of October, 1945

Local Supplement entered into this day of , 1946,

between the WESTINGHOUSE ELECTRIC CORPORATION,
East Pittsburgh, hereinafter referred to as the "Company" with re-
spect to the bargaining unit as described herein and the ASSO-
CIATION OF WESTINGHOUSE SALARIED EMPLOYES,
hereinafter referred to as the "Union" with respect to the Agree-
ment between WESTINGHOUSE ELECTRIC CORPORATION
and the FEDERATION OF WESTINGHOUSE INDEPEND-
ENT SALARIED UNIONS dated the 12th day of October, 1945,
hereinafter referred to as the National Agreement.

NECESSITY OF A SIGNED CONTRACT 177

SENIORITY

A. PROBATION PERIOD

An employe will not be recognized as having established
seniority until he has completed a probation period of one year,
and satisfactory progress has been demonstrated. If incompetent,
he will be released without seniority status. It is understood that
accepted methods of selection may be used by the Industrial
Relations Department for employment or transfers.

B. SERVICE CREDIT

1. An employe upon employment will receive service credit
for each period of Company employment providing there has not
been a break in service of more than five years, in which case
credit will be given only for periods of employment following
the most recent five-year break in service.

2. An employe on leave of absence is considered on the roll
and will accumulate service during leave of absence.

3. If an employe is transferred into the bargaining unit he will
be granted service credit in accordance with the provisions in
paragraph 1 of this section.

4. An effective service date for employes will be established
at the time of employment, or transfer into the unit. Credit will
be granted for previous service as prescribed in paragraph 1 of
this section in establishing the effective service date for an em-
ploye.

5. The rate review sheets contain the official effective service
date of each employe and are available to the local Union rep-
resentatives for inspection.

6. The recognized service credit shown on the Seniority List
of former employes ( Off roll ) will be the difference between the
effective service date and the date of lay-off.

7. A Seniority List of former employes having seniority status
will be maintained by the Industrial Relations Department and
will be available for inspection by the members of the Negotiat-
ing Committee of the Union.

178 WHITE COLLAR OR NOOSE?

C. INCREASE OF FORCE

1. In selecting individuals for employment during the periods
of expanding activity, the former employe having the most
seniority credit and capable of doing the work will be employed
first, consideration being given to experience on same or similar
jobs.

2. When an employe is rehired to the position previously held
or one of equal classification, he will receive a salary based on
experience and the type of work on which he is being employed.

3. The Medical Department will give consideration to previous
service in establishing physical requirements when rehiring for-
mer employes with seniority status.

D. REDUCTION OF FORCE

1. The following provisions are applicable only to employes in
the bargaining unit. Employes on recognized training programs
may be exempt from the provisions of this section until comple-
tion of their training.

2. The recognized basic unit for the application of furloughs
and lay-offs will be a section of a department, like occupations
in a department, or a combination of both. The department
manager will establish these units as soon as possible after the
effective date of this Agreement, subject to approval of the
Negotiating Committee.

3. When activity falls adjustments will be made by transfers
where possible.

NOTE: An employe will be considered qualified to fill a position
if he is able to perform the duties of the position in an acceptable
manner after a period of one month.

4. Where adjustments cannot be made by transfer, a reduction
in force or a change in working schedule will be made in line
with the provisions of paragraphs 5 to 9 of this section. The
supervisor will notify the group representative of the Union con-
cerning such reduction of force or change in working schedules
as far in advance as possible.

5. The reduction of force will take place in the following
sequence. The maximum relief obtainable from each provision

NECESSITY OF A SIGNED CONTRACT 179

must be obtained before initiating any of the action covered by
a succeeding provision, but when both reduction of force and
furloughs are given in a single provision either may be used first
or both may be used in any degree up to the maximum prescribed
by the provision.

a. Employes in the basic unit having less than one (1) year
of service will be released.

b. A reduction in force will be made among employes with less
than three (3) years seniority service or uniform furloughs of
not more than four (4) hours a week or equivalent will be in-
stituted in the unit.

c. A reduction in force will be made among employes with less
than five (5) years seniority service or uniform furloughs of not
more than six (6) hours per week or equivalent will be instituted
in the unit.

d. A reduction in force will be made among employes with
less than eight (8) years seniority service or uniform furloughs
of not more than eight (8) hours per week or equivalent will be
instituted in the unit.

e. A reduction of force will be made among employes of less
than ten (10) years of seniority service or furlough of not more
than twelve (12) hours a week or equivalent will be instituted
in the unit.

6. No basic unit will be permitted to apply paragraph (c) while
employes with less than one year service remain on the roll in
any basic unit. No basic unit will be permitted to apply para-
graph ( d ) before all others have fulfilled the maximum provisions
of paragraph (b) and the application of paragraph (e) will not
be permitted until all other basic units have fulfilled the maxi-
mum provisions of paragraph (c).

7. A reduction in force extending beyond the above provisions
will be made a subject of collective bargaining by the Industrial
Relations Department.

8. Certain employes in the bargaining unit may be exempted
from the above provision of reduction in force for the purpose
of maintaining an effective organization. The selection of such
employes will be a subject of collective bargaining between the

180 WHITE COLLAR OR NOOSE?

supervisor and the district and group representatives. The list,
containing the names of the employes to be retained, shall be
supplied to the Union Office by the Office Industrial Relations
Department. The size of this exempted group will be the subject
of collective bargaining between the Negotiating Committee and
the Industrial Relations Department prior to the period of reduc-
tion in the working force.

9. In applying the provisions for reduction of force, officers,
district and group representatives of the Union will be granted,
during their term of office, senior seniority status in his unit.

E. Loss OF POSITION ON SENIORITY LIST

1. The names of employes will not be added to, or if listed will
be removed from the list of former employes with seniority status,
for one of the following reasons:

a. When an employe quits of his own volition.

b. When an employe is released or discharged for cause.

c. When an employe who has been laid off fails to acknowledge
receipt of notice to return to work within five working days after
the mailing date of the notice. The name of the employe will be
restored to the list of former employes having seniority status,
if he is able to prove that he had not received the notice within
the five day period and he had attempted at the earliest reason-
able date to contact the employment department.

d. When a former employe on the seniority list has not been
called for employment within a period of time equal to one-half
of his service credit but not less than one year.

e. When a former employe who has been called back to work
fails to pass the required physical examination. However, if the
employe promptly takes the necessary steps to correct his physi-
cal deficiency, he will be re-examined by the Medical Depart-
ment upon request and, if found fit, his name will be restored to
the seniority list of inactive former employes.

f. When a former employe, having been called to return to
work, refuses to accept the position available, if the position is
reasonably similar in salary and duties to his former position.

Chapter VIII

EFFECTIVE WHITE-COLLAR REPRESENTATION
IN WASHINGTON

DIGNIFIED SILENCE— OR THE LACK OF A NATIONAL SPOKESMAN?

The white-collar workers in the past have had to be content with
the crumbs that fell from the negotiation tables, and the few
times the plight of the forgotten American has been aired, the
poor dazed white-collar worker has found himself buffeted from
one legislative committee to another, and confronted with a maze
of statistics nobody gave a whoop about, until finally the public
interest died and the problem was put back on the shelf again,
without even having had a thorough dusting.

Pity the poor white-collar workers! The truth of the matter
was that there was no one to "go to bat" for them. The inter-
nationally powerful unions couldn't be bothered. No one person
or group of persons had loomed on the horizon sufficiently ex-
perienced in handling salaried problems and with sufficient back-
ing to demand even slight attention from the labor boards and
government agencies.

That is, no one until the officers of the Federation of Westing-
house Independent Salaried Unions, official spokesmen for their
organization, and self-appointed spokesmen for the unorganized
salaried employees throughout the country, appeared in Wash-
ington before various senatorial boards and committees to offer
testimony on, and have written into the laws, clauses directly
benefiting the white-collar workers of the nation.

REPRESENTATION IN WASHINGTON

Early in 1939, the officers of the Federation of Westinghouse In-
dependent Salaried Unions, realizing that a voice in Washington

181

182 WHITE COLLAR OR NOOSE?

was essential if the pleas of white-collar workers were to be
heard, began to establish contacts with various governmental
agencies at the Capital.

The first conference was held Monday, April 24, 1939, with
Director Andrews of the Wages and Hours Division of the De-
partment of Labor, perhaps better known as the Administrator
of the Fair Labor Standards Act, for the purpose of discussing
phases and interpretations of the Fair Labor Standards Act. At
that time, pressure was being brought to bear on the Adminis-
trator of the Act by leading manufacturers to make $225 per
month the line of demarcation between exempt and non-exempt
salaried employees instead of the interpretations as set forth by
the Act as those coming under exempt or non-exempt such as
exempt executive, administrative, and professional employees.
The law clearly defines those employees who should be excluded
from payment of time and one-half for all hours worked in excess
of forty in any one week as to their executive, administrative, or
professional occupations, but the request at this early date on the
part of the representatives of industry was to establish $225 per
month as a line of demarcation instead of the occupational cate-
gories mentioned above.

In addition to several other outstanding points of testimony,
the Federation officers stated that to establish $225 a month as
a basis for determining exempt or non-exempt employees would
be pure and simple folly because numerous employees in indus-
try would have like classifications and would be doing essentially
the same amount of work and making less than $225 per month
and would be paid time and one-half for all hours in excess of 40
in any one week, while others would be paid their straight salary
regardless of the number of overtime hours worked beyond 40 in
any one week. They further stated that the establishment of this
line of demarcation would create inequalities and inequities
throughout the salary or wage structures of the industries com-
ing under coverage of the Fair Labor Standards Act. Further,
many hourly employees under the various production incentives
have a monthly rate without overtime far in excess of $225 and
no record has ever been encountered of any question being raised

EFFECTIVE REPRESENTATION 183

of their not being entitled to coverage under the Fair Labor
Standards Act.

The Federation officers were commended by Mr. Andrews for
the part they played in forestalling the requested changes which
certainly would have seriously handicapped the white-collar
workers in qualifying for overtime compensation.

Later, Federation officers contacted Mr. L. Metcalf Walling,
Administrator of the Public Contracts Division of the Department
of Labor, concerning the Walsh-Healy Act (time and one-half
for all hours worked in excess of eight hours in any one day)
as it applied to salaried employees in industries handling gov-
ernment contracts in excess of $10,000.

Representatives of a great many industries were endeavoring
to remove draftsmen from coverage of the Act. Federation officers
were attempting, not only to keep the draftsmen under coverage,
but to bring under coverage other allied salaried or white-collar
occupations as well, such as production clerks, manufacturing
information writers, design engineers, and clerical employees
actually and indirectly engaged in supplying information to the
employees in the shop. The Federation negotiators were success-
ful in retaining draftsmen and inspectors under coverage of the
Act and were assured by the Administrator that the other posi-
tions as mentioned would be very carefully checked and given
due consideration. Later the Government ruled that draftsmen
and inspectors were to be retained under coverage of the Act
and further that production clerks, manufacturing information
writers and other allied clerical help were to come under cover-
age of the Act.

Contacts were also made with other Washington officials which
have been of considerable value to Federation officers in obtain-
ing official interpretations of new labor regulations and in helping
to bring salaried employees problems to the fore. These included:
William B. Grogan, former attorney for Contracts Division; Miss
Louise Stitt, Supervisor of the Women's Division of the Depart-
ment of Labor, and many others.

Immediately following President Roosevelt's 1942 Labor Day
speech on wages and price stabilization, officers of the Federation

184 WHITE COLLAR OR NOOSE?

requested the privilege of appearing before any committee, of
either the House or Senate, which was set up to consider legisla-
tion relating to that subject. The Federation officers recognized
that trends made wage stabilization legislation inevitable and
merely wished to be assured that all factors would be taken into
consideration when preparing any bill on the subject.

On September 15, 1942, the president of the Westinghouse
Federation was advised by Senator James J. Davis that a public
hearing before the Senate Committee on Banking and Currency
would take place on Wednesday, September 16, 1942, and that
the Federation would be permitted to testify. The President and
Vice-President of the Westinghouse Federation went to Wash-
ington to be present during the hearing. At the request of Sena-
tors Davis and Taft, representatives of the Federation were
privileged to offer testimony before the committee and were the
only representatives of labor present beside President William
Green of the A F of L and Mr. Van Bittner of the CIO, both of
whom confined their remarks wholly to cover hourly paid produc-
tion and maintenance workers. The officers of the Federation
were the only labor leaders present to offer testimony on behalf
of salaried employees or white-collar workers. The Federation
officers were opposed to the freezing of individual wages and
made very definite recommendations that salaried keysheets,
variously known as salaried schedules or rate ranges, be frozen
instead so that individual merit increases could be granted within
the rate ranges.

The following testimony was presented and entered into the
record:

1. For many years salaried employees have been unorganized
and, for this reason, their monthly wages have lagged behind
those of hourly paid employees.

2. Many salaried employees enjoyed benefits, over and above
wages, which were not available to hourly paid employees. How-
ever, organized labor has obtained many of those benefits for the
hourly paid workers, thereby negating this differential which
existed in favor of the salaried individual.

3. The institution of the furlough system (that is: days off for

EFFECTIVE REPRESENTATION 185

salaried employees without pay) for salaried workers tends to
decrease their advantages and place those workers on the same
plane as the hourly paid workers.

4. Due to organizational activity, hourly wage rates are much
more nearly standardized and equalized than those of salary paid
workers. Also, hourly wage scales are systematized to a greater
degree than those of employees paid by salary.

5. For the above reasons, gross inequalities are found to exist
between the monthly wage of the hourly paid employees and
those of the salaried employees.

6. Also, due to lack of any systematic job classification and
rate structure, for salaried workers there exists, even within an
individual company, glaring inequalities in salaries paid for like
or comparable classes of work.

7. In the four years of the existence of the Westinghouse Fed-
eration, it has, through cooperation with Westinghouse manage-
ment, endeavored to correct conditions of inequalities and sys-
tematize the method of job classification and the corresponding
wage structure.

8. During recent wage negotiations, a general salary increase
was granted salary paid employees but only in an amount equal
to the rate added to the base hourly rate of the hourly paid em-
ployees. Since practically all salaried employees work on a fixed
monthly wage— with the exception of overtime pay for all hours
worked beyond 40 hours in any one week— and since 85% of all
hourly paid employees, in the Westinghouse Company, increase
their hourly rate by a minimum of 8% and over 60% of the workers
average more nearly a 25% increase, by means of some type of
incentive system. Hourly paid employees have always received
an actual increase in excess of that granted the salaried em-
ployees.

9. A major gain, made during the wage negotiations, con-
cluded on August 16, 1942, was an agreement to establish a
revised salary rate structure for all positions in the salary job
classification manual. Also, a review of all salaries was to be made
before December 31, 1942, and individual adjustments were to
be made, where found warranted by the new salary rate struc-

186 WHITE COLLAR OR NOOSE?

ture. This new structure more nearly approximates that for hourly
paid employees.

10. When establishing any national 'Wage Fixing" policy,
means should be provided for recognition of inequalities and in-
equities and permitting adjustments of rates of pay to eliminate
those inequalities and inequities.

11. It is requested that increases in individual wages or salaries,
for merit, be permitted to the extent of at least 10% of the indi-
vidual's hourly or monthly base rate, per year.

12. When an individual is advanced from a position of one
range of pay to one having a higher range, the individual's hourly
or monthly wage should be increased in an amount which will
bring his rate to, at least, the minimum of that established for the
new position.

13. As new groups of employees are organized into bargaining
units, it should be possible to negotiate wage and salary struc-
tures comparable to those already in existence for other similar
bargaining units.

14. The above requests are based on the assumption that living
costs can and will be stabilized at approximately the level which
prevailed not later than July 1, 1942.

Senator Prentis Brown of Michigan assured Federation officers
that, insofar as possible, the recommendations would be written
into the bill to be presented to the Senate. This was the only
commitment made by any member of the committee during the
entire hearing so far as the Federation officers observed.

The bill as finally presented covered, directly or indirectly,
most of the recommendations submitted by the Federation offi-
cers. Thus the Federation's requests are believed to have resulted
in many of the provisions for salary regulation under the Stabiliza-
tion Act. This is a matter of record, and can be verified by
checking testimony of Bill No. S. J. Res. 161, Calendar No. 1661,
Report No. 1609.

In May, 1943, officers met O. S. Smith, Director of Field Divi-
sions of the National Labor Relations Board, for the purpose of
discussing means of clarifying the status of employees classified
by management as supervisors, but who were regarded by the

EFFECTIVE REPRESENTATION 187

Federation as eligible for inclusion within the bargaining units.
A copy of the letter written to Mr. Smith on this subject, dated
May 21, 1943, by theofficers of the Westinghouse Federation
follows:

"The following will present some of the problems which we,
as a labor organization, are experiencing with management
relative to the question of who is and who is not a supervisory
employee. This question is important because of the fact that
many employees, classed by management as supervisors, desire
to be members of our organization and to be represented by us
in dealings with management. It is requested that the National
Labor Relations Roard establish a ruling which may be used as a
guide to all labor organizations who may be confronted with a
similar problem.

"For organizations of hourly paid employees the supervisory
status of an employee is relatively easy to determine. This is
true because most supervisory employees are paid by salary and
are therefore not included in the bargaining unit of an organiza-
tion which is certified solely for hourly paid employees. How-
ever, for organizations of salaried employees such easy means
of segregation is not possible and we find ourselves at the mercy
of management in this regard. Generally, management makes a
flat statement that a certain individual is a supervisory employee,
and without a clear definition of this type of position, it is usu-
ally impossible to arrive at a satisfactory agreement with man-
agement or the N.L.R.R.

"An industrial organization is made up of many groups of
salaried employees, each group being headed by an individual
with a title bestowed by management, and, in most cases these
people are stated to be supervisors.

"It is our contention that a fair percentage of those persons
currently regarded as supervisors are not strictly such on the
basis of the type of work they do. Many of these so-called super-
visors are merely group leaders who, for efficient operation of
the group, parcel out work to maintain efficient loading of the
group. These people seldom have the right to hire or discharge
employees and in most cases they have no control over the

188 WHITE COLLAR OR NOOSE?

salaries of the individuals working in their group and neither do
they direct the policies laid down by management other than to
see that the employees maintain efficient operation of the group.

"Many so-called supervisors are record clerks or statisticians
operating alone and are individuals who have no control over
Company policies, do not supervise other employees and do not
have the right or occasion to hire or discharge employees.

"One of our major contentions with management is our right
to represent individuals whose titles are 'Managers of the Branch
District Office/ In our district sales organization there are many
small sub-offices employing from 2 to 6 employees. For commer-
cial reasons the top salesman in that office is given the title of
manager while he does exactly the same work as other sales
employees and merely directs the work of the clerical staff in
order to efficiently run the office. The clerical employees are
seldom hired by him and he has no control over their wages
and generally not over their tenure of service. All matters on
company policy, office routine, placement and transfer of em-
ployees, as well as assignment of work of the employees is dic-
tated by management in the head office of the District or from
company headquarters.

"It is our contention that these sub-district office managers
who would merely be classed as salesmen in any larger office,
are in the same category with respect to their relation to the
company as other salesmen and for this reason have the right to
belong to and be represented by a salaried employees' union.

"In the salaried organization of an industrial concern, there are
many people classified as 'Chief Clerks' who are merely high
class clerical employees who, for efficient operation of the de-
partment, have no regular assignment of work but relieve other
clerks of duties which would otherwise take up too much of their
time. The chief clerk occupies his time in straightening out
difficult situations which other clerks do not have time to handle
along with their other assigned duties. The chief clerk neither
hires, discharges nor regulates the salary of the other clerical
employees and he does not represent management in discharge
of policy matters.

EFFECTIVE REPRESENTATION 189

"It is our recommendation that a supervisory employee be
defined as follows:

" 'A supervisory employee is one who has the right to employ
and discharge other employees and who spends less than 20%
of his time on the same type of work as performed by other non-
supervisory employees whom he supervises. In addition to the
above, a supervisor must supervise the work of more than five
persons and in an industrial organization must receive a salary
not less than $250 a month/

"It is recommended that the above interpretation be accom-
panied by the following statement:

" 'A supervisor, under this interpretation, does not apply to those
persons frequently classed as group leaders, chief clerks, staff sta-
tisticians or others who merely direct the activities of the group of
which they are a part or who spend their time purely on statisti-
cal duties not affecting company policy in its relation to other
employees. In addition, the term supervisor does not apply to
those employees who do essentially the same work as other
employees not classed as supervisors yet who carry a title for
commercial reasons which might otherwise place them in the
supervisory category.'

"We respectfully request the Board's consideration of our rec-
ommendation with the idea of issuing a clarifying definition of
the term 'supervisor' as it applies to salaried employees and their
relation to labor organizations."

With no answer forthcoming from Mr. O. S. Smith to the above
letter, a similar letter was sent to Chairman Millis of the Labor
Relations Board and on Sept. 24, 1943, the following answer was
received from Mr. Ivar Peterson, principal attorney for the
National Relations Labor Board:

"After careful consideration of the problem the Board recently
adopted the following definition of supervisory employees: Those
who have "authority to hire, promote, discharge, discipline, or
otherwise effect changes in the status of employees, or effectively
recommend such action." The Board customarily excludes such
employees from units of non-supervisory employees. Necessarily,
questions frequently arise as to whether certain individuals or

190 WHITE COLLAR OR NOOSE?

categories come within this definition. In deciding such problems,
the Board must, of course, be guided by the record before it as
made by the parties to the proceeding."

In June, 1943, the subject of price ceilings on food was dis-
cussed and ways and means for union cooperation with the Office
of Price Administration were suggested at a meeting with I.
Rubenstein, Assistant Director of the Labor Division of the
O.P.A.

To further substantiate the claim that the Federation officials
are interested in the welfare of all salaried employees or white-
collar workers, the following letter is offered:

AN OPEN LETTER TO SENATOR CLYDE M. REED

July 1, 1943

"The officers of the Federation of Westinghouse Independent
Salaried Unions, representing over 9,000 white-collar workers in
14 certified units located from coast to coast, were amazed to
think that a man in your position would make such broad over-
all statements as contained in newspaper accounts of your re-
marks before the Senate on June 24, 1943.

"Following is the newspaper story:

"Washington, June 24 (UP) ... Senator Clyde M. Reed
(R., Kan.) opened the fight in the Senate against price control
subsidies today with an argument that the American people can
well afford to pay higher prices for essential commodities. A
Senate vote on the issue was expected late today.

"'Paychecks of industrial workers have gone up much faster
than the cost of living/ Senator Reed said.

"He cited statistics of the Bureau of Labor Statistics and the
Bureau of Agricultural Economics to show:

" In January, 1943, factory paychecks were 184% of the 1935-39
average, while the cost of living was only 120.7% of the five-year
average. There is not the slightest equity in freezing prices of
food-stuffs and wages at the 1942 level, in view of these figures/
Senator Reed protested.

"Senator Reed said that the President was 'making his last
stand on the home front* by giving preferred treatment to 'the

EFFECTIVE REPRESENTATION 191

wage earner/ This group, he said, 'threatens a spontaneous revo-
lution/ unless they get their way— reduced prices.

"The above account is all too typical of the thinking which is
prevalent among many of our congressmen. Such broad state-
ments as 'the American people can well afford to pay higher
prices for essential commodities' is ridiculous when one considers
that there are millions of white-collar workers employed in de-
partment stores, dairies, banks, drug stores, grocery stores, small
industries, etc., who have received little if any increase in salaries
in the past four years. Yet these people are faced with increased
taxes and cost of living.

"What possible means have these unorganized unfortunates
to meet the ever-increasing demands on their insufficient in-
comes?

"You lump-salaried office workers together with the hourly
paid shop employees and refer to the heterogeneous result as
'industrial workers/ To lump these two together is as appropriate
as to pack airplanes and oranges in the same crate. The incomes
of the individuals of the two groups are just as incongruous.

"The inconsistencies between the incomes of the two groups
are due to (1) higher base rates for hourly paid employees,
(2) more overtime hours for hourly paid employees, and (3)
bonuses for hourly paid employees.

"Salaried base rates have remained essentially unchanged from
the 1935 level, while hourly rates have increased by leaps and
bounds until the hourly rate for common shop labor is now
roughly forty cents an hour higher than the 1935 level, and other
shop jobs have had like increases.

"Overtime payments at time and one-half add up to real money
if much overtime is worked, and most hourly paid employees
have plenty of overtime. Salaried workers see very little of this
money.

"To further widen the income differential many companies pay
bonuses of up to fifty per cent or more to their hourly paid
employees, but nothing to their salaried office workers. This
additional percentage applies to both straight time and overtime
pay.

192 WHITE COLLAR OR NOOSE?

"True, some companies give special bonuses to their executives,
but bonuses to this select class can in no way help the salaried
office workers.

"You state: 'In January, 1943, factory paychecks were 184% of
the 1935-39 average while the cost of living was only 120.7%
of the five-year average/ It is perfectly natural for the payrolls
in the year 1943 to be much higher than those in 1935-39 because
thousands of employees have been added to factory payrolls and
because of increased incentive and overtime bonuses for hourly
paid employees.

"Here again a most important factor has been overlooked, and
that is the plight of the thousands of white-collar workers who
also work in factories, but whose salaries have not been advanced
anywhere near to the 84% figure which you apply to all employees
without reservation.

"Few people make fair comparisons between hourly wage rates
and monthly salaries; too many feel that a clerk with a monthly
salary of $150 has quite a fine position, while a beginner in the
shop, earning eighty cents per hour needs plenty of overtime
and good luck if he is to make ends meet. These people fail to
realize that eighty cents per hour means $138.66 per month at
straight time; $201.06 per month with only twelve hours per
week overtime at time and one-half; and $301.59 with fifty per
cent bonus on the previous figure!

"The salaried employees represented by our Federation are
essentially better off than the salaried workers in hundreds of
other industries because we are organized and have negotiated
general increases for our white-collar workers over the past two
years, which have conformed to the Little Steel Formula of 15%.
Now for your edification and for the benefit of the other repre-
sentatives of the American people who have failed to realize the
huge number of white-collar workers in this country whose in-
comes have not kept pace with the increased cost of living, we
heartily recommend that a study be made of the statistics of the
Bureau of Labor as they apply to salaried employees. We are
conversant with the fact that such statistics are practically nil,
but we, as an organization, would welcome the opportunity to

EFFECTIVE REPRESENTATION 193

present and discuss with you or a committee graphs, charts and
data that apply to the incomes of hourly paid and salaried em-
ployees in the Westinghouse Company.

"Definite and immediate action must be taken to reduce the
differentials in rates of pay which now exist between salaried
employees and hourly wage earners.

"The price roll-backs which you decry are sorely needed, for
while the incomes of farmers, hourly paid workers and big ex-
ecutives have been increasing, the incomes of salaried workers
have remained relatively stationary, resulting in lowered living
standards.

"The salaried employees are truly the forgotten Americans/'

FEDERATION CONTINUES TO REQUEST CONGRESSIONAL ACTION
ON "WHITE-COLLAR" PROBLEMS

Contending that the problems of "white-collar" employees get
scant attention from both the government and large national
unions, the Federation of Westinghouse Independent Salaried
Unions, in a series of letters in September, 1943, urged congress-
men and senators to give serious consideration to the problems
that constitute the grave "income dilemma" of millions of our
average citizens.

Legislation was urged that would give salaried employees the
consideration to which they are entitled and to alleviate con-
ditions that are a constant worry to this vast number of organized
and unorganized white-collar workers. "Millions of salaried
workers are begging for help. The fact that they are unorganized
is no excuse for their being forgotten by government, employers,
and labor unions. These people are the real backbone of the
American social structure, and if it takes legislation to alleviate
their condition, then by all means, let's have some legislation."

The most important of these conditions as listed to Congress
were:

"1. Cost of living prices which should be rolled back to May 15,
1942, or the 15 per cent Little Steel Formula scrapped and salaries
and wages tied to living costs.

194 WHITE COLLAR OR NOOSE?

"2. Grade labelling, which is nothing but honest merchandising,
and a protection to which our citizens are entitled.

"3. Support of Social Security Act amendments.

"4. Taxes— consideration of ways and means to increase taxes
equitably with full consideration being given to ability to pay.
It is recognized that the need for money by our national govern-
ment to promote the war and bring it to a successful conclusion
is apparent to the citizens of our country. However, before any
additional taxes are considered, consideration should be given
to the white-collar worker's and fixed income group's ability
to pay."

READER'S DIGEST ARTICLE COMMENDED

As evidence that some clear thinking individuals are fully aware
of this problem and are attempting to hasten its solution through
newspaper and magazine articles and other means, the Federation
commented on an article by Albert J. Engle, member of Congress
from Michigan, which appeared in the September, 1943, issue
of the Reader's Digest, and which paralleled the thinking of the
Federation in many respects. Entitled "Unskilled workers: $214
a Month," the article advised checking of inflation at its source—
the high wages paid to unskilled workers, while salaried workers
struggle along at pre-war levels.

The matter of inequalities and inequities between the "take
home" pay of the hourly worker and the salaried worker should
cause both government and labor leaders great anxiety.

REPRESENTATIVES PROMISE AID

Early in October, 1943, Representative Harold Knutson, Rep.,
Minn., a member of the House Ways and Means Committee,
assured the Federation in reply to its letter to the Congressmen
in September that "Sympathetic consideration to the problems of
the white-collar class of workers will be given in discussing the
proposed tax bill."

Representative Knutson further stated, ". . . they (white-

EFFECTIVE REPRESENTATION 195

collar employees) constitute better than 50 per cent of our
population and already they are paying as much in taxes as they
possibly can."

The Federation had commended Representative Knutson for
his remarks before the House in opposition to the contemplated
$8,000,000 boost in income taxes, which would be accompanied
by a rise to 30 per cent in the withholding levy. Mr. Knutson
had told Congress ". . . you've got a 20 per cent tax now that's
very burdensome on the white collar class and they can't stand
another 10 per cent. ... It would mean we would have to in-
crease salaries, which would contribute to inflation."

CONSUMERS' COMMITTEE STUDY PROBLEM

Representative Samuel A. Weiss, Dem., Pa., early in October,
1943, informed the Federation that the Consumers' Committee
had met to consider its letter regarding the problem of the white-
collar workers and insisted that prices must be rolled back if for
no one else than the twenty million white-collar workers in the
country who are discouraged and crying for help. Mr. Weiss
stated "that legislation may be necessary to equalize the wages
and salaries of this group which have been "frozen while prices
have clambered tremendously during the past year." "Our objec-
tive is to roll back living costs," he write, "and if this cannot be
done, the Little Steel Formula must be scrapped and wages
upped proportionately to the cost of living."

Representative Weiss commented favorably on the Federation's
program of grade labelling, social security legislation which
would lower the age limit for pensioners from 65 to 60 years,
and taxation based on ability to pay. He added, "... I have
always opposed sales taxes for they are the 'sock the poor' taxes
in my opinion."

Senators James J. Davis, Rep., Pa., and Joseph F. Guffey, Dem.,
Pa., and Congressman James A. Wright, Dem., Pa., promised their
aid in any measure which would lessen economic pressure now
being brought to bear particularly on the white-collar working
classes and full support of the Federation's plea for price rollbacks

196 WHITE COLLAR OR NOOSE?

and other legislation which would better the economic condition
of white collar and fixed income groups.

Senator Davis wrote, "The Senate Finance Committee is at
present undertaking a comprehensive review of this entire situa-
tion in the hope that a means can be found to bring relief to
those who now suffer unnecessarily because of the rigidity or
complexity of our present policies and their administrative regu-
lations."

Congressman Wright stated that the only practical way to help
the white-collar workers which he described as the "forgotten
people of our scrambled and inflated war economy" and in the
same position as those people who are living on the proceeds of
small life insurance policies or military allotment, is to attempt
to keep prices down. "I believe that in principle wages should
be tied to living costs. It would be fatal to our price structure
should general increases in wages be granted . . . and an in-
crease in normal wages which would skyrocket prices is an illu-
sory benefit," he continued.

PRESIDENTIAL GENERAL ORDER 31

On May 26, 1943, the National War Labor Board issued General
Order #31 specifying how salary and wage increases could be
given employees of industry. Many provisions of the Order were
not clear and certain items were definitely not equitable. After
making a thorough study of the Order and preparing a list of
questions and recommendations, the Federation officers discussed
the Order with Mr. John Chamberlain, Asst. General Council for
the National War Labor Board.

Although the Federation officers had been successful in having
the salary keysheets frozen rather than individual wages, Order 31
seriously handicapped operation under the frozen keysheets be-
cause:

The extent of the limitations, so far as the Westinghouse Cor-
poration was concerned, appeared to revolve around the question
of what constituted a "plan" as defined in the Order. While it
was not clearly determined whether past practices and procedures

EFFECTIVE REPRESENTATION 197

of the Corporation constituted a "plan," the Corporation would
have to be guided by the following until such time as it was
proven the Westinghouse Corporation had a plan.

1. No employee may receive more than two merit increases
during any calendar year.

2. No more than 50% of the average number of employees in a
job classification may receive merit increases during any calendar
year.

3. No merit increases may exceed 33M% of the difference be-
tween the minimum and maximum rates of the classification
applicable.

At this conference, Federation officers submitted information
to prove that the Westinghouse Corporation did have a schedule
and plan for salaried employees and the restrictions of Order 31
were not applicable to the Corporation.

Likewise on length of service increases within the established
schedule. The following must apply:

a. The frequency may not be made more than four in a cal-
endar year.

b. The amount of adjustment may not exceed 25% of the dif-
ference between the minimum and maximum rates of the appro-
priate classification.

Likewise, on promotion and reclassification to a higher position,
the new rate must not be in excess of 15% above the former
rate, or the minimum rate of the new job, whichever is higher.

Again the officers of the Federation did not confine their state-
ments to cover only those members of the Westinghouse Fed-
eration, but requested Mr. Chamberlain to give due consideration
to the handicap under which other industries who did not have
a plan would have to operate by the rigid rules imposed by the
order dated May 26, 1943.

The decision rendered by the Board on August 30, admitting
the Westinghouse Company had a schedule and a plan, substan-
tiated the proof submitted by the Federation officers that the
Company did have a plan. The rewritten order adopted August 18,
1943, eliminated a great many of the ramifications that were con-
tained in the first order, particularly that portion of the order

198 WHITE COLLAR OR NOOSE?

which stated that not more than 50% of the average number of
employees in a job classification may receive increases during a
calendar year. The Federation Officer's request for a modification
of the plan carried a considerable amount of weight as proven
in the rewritten order.

In August, 1943, Federation Officers talked with A. D. Burford
and W. A. Gallahan, Deputy and Assistant Deputy Commissioner
of the Salary Stabilization Unit, concerning general salary and
wage subjects for all those employees represented by the Fed-
eration who make more than $5,000 per year and come under
coverage of the Treasury Department Salary Stabilization Unit
rather than the War Labor Board. At the same time, a short
conference was held with Robert Myers, Chief of the Division
Analysis of the Bureau of Labor Statistics. Unfair labor practices
were also discussed with Frank A. Mouritzen, Assistant Field
Examiner of the National Labor Relations Board.

TESTIMONY ON BEHALF OF THE COUNTRY'S 20,000,000 SALARIED

EMPLOYEES BEFORE THE SENATE SUB-COMMITTEE ON

WARTIME HEALTH AND EDUCATION

On February 9, 1944, the President and Vice President of the
Westinghouse Federation appeared before the Senate Sub-Com-
mittee on Wartime Health and Education, Senator Claude Pep-
per, chairman, and offered the following testimony:

PROBLEMS OF ORGANIZED SALARIED EMPLOYEES

1. In 1937, the hourly paid workers of the nation secured an
increase in their basic hourly rate from forty cents to sixty-two
and one-half cents per hour, while the nation's white-collar
workers' salaries remained the same. The adoption of the Stabi-
lization Act applying to both hourly paid and salaried workers
consequently froze this inequity in the salary wage structure
because white-collar workers had not received a corresponding
increase in monthly income.
2. Due to organized action, hourly wage rates are much more

EFFECTIVE REPRESENTATION 199

nearly standardized and equalized than those of salaried workers.
Also, hourly wage scales are systematized to a greater degree than
those of employees paid by salary. Consequently, we find gross
inequalities existing between the monthly wage of our hourly
paid employees and those of the salaried employees doing com-
parable work. During recent wage negotiations under the Little
Steel Formula, some salaried employees were granted general
increases apparently comparable to the general increases granted
hourly paid employees. However, these increases were not truly
comparable since practically all salaried employees are working
on a fixed monthly wage, while approximately twenty thousand
hourly paid employees in one company ( Westinghouse Electric &
Manufacturing Company) increase their hourly rate by a mini-
mum of 10%, and approximately sixty thousand hourly paid
employees increase their hourly rate by about 40% by means of
an incentive bonus system. Hence, the hourly paid employee
always receives more in a general increase than does the salaried
employee. For example: If an increase of $1 per day is granted,
the non-production or hourly paid day worker would receive
$1.10 and the production worker or hourly paid incentive worker
would receive $1.40, but the salaried employee would receive only
$1 per day.

3. Time and one-half for overtime means really money to the
shop hourly paid employees but the white-collar workers sees
very little of this money. Furthermore, this time and one-half
factor is a multiplier applying to the shop man's bonus as well
as his base rate. For example: a salaried employee receiving
$1.00 per hour would received $1.50 per hour for Saturday work
at time and one-half, while a shop hourly paid employee working
for $1.00 per hour would receive $1.00 times one and one-half
times his incentive bonus of approximately 40%, or $2.10 per hour!

4. To reduce the differential between the take-home pay of
the hourly paid employee and the salary paid employee, a bonus
system applicable to salaried employees should be considered.
The inconsistencies between the incomes of the two groups are
due to:

a. Higher base rates for hourly paid employees.

200 WHITE COLLAR OR NOOSE?

b. More overtime for hourly paid employees.

c. Incentive bonuses for hourly paid employees.

Salary base rates have remained essentially unchanged from
the 1935 level, while hourly rates have increased by leaps and
bounds until the hourly rate for common shop labor is now
roughly forty cents an hour higher than the 1935 level, and other
shop jobs have had like increases.

5. Due to lack of organization among salaried employees, com-
munity averages are far below the comparable hourly paid posi-
tions making it difficult for the organized salaried groups either
to negotiate with their employer for better wages or to get War
Labor Board approval of wage schedules to eliminate the in-
equities.

PROBLEMS OF THE UNORGANIZED WHITE-COLLAR WORKERS

The problems of the unorganized white-collar workers are essen-
tially the same as the problems of the organized white-collar
workers given in points 1 to 5 above, except that the unorganized
have the following additional problems:

1. For many years salaried employees have been unorganized
and for this reason their monthly wages have lagged behind those
of hourly paid employees.

2. It used to be that many salaried employees enjoyed benefits
over and above wages which were not available to hourly paid
employees. However, organized labor has obtained many of these
benefits for the hourly paid workers, thereby negating the differ-
ential which once existed in favor of the salaried individual.

3. The institution of the furlough system for salaried employees
(days off without pay during periods of depression) tends to
further decrease the advantages and place the salaried paid
workers on a lower plane than the hourly paid workers.

4. Among the unorganized white-collar workers we find gross
inequality existing between the monthly wage of the hourly paid
employees and those of the salaried employees.

5. Also, due to lack of any systematic job classification and
rate structure for unorganized salaried workers, there exists even

EFFECTIVE REPRESENTATION 201

within an individual company, glaring inequalities in salaries
paid for like or comparable classes of work.

6. Millions of white-collar workers are not employed in inter-
state commerce, and consequently do not enjoy the protection of
the Fair Labor Standards Act. Their minimum rates are below
those set up by the Fair Labor Standards Act, and they are not
paid for overtime, leaving them far out of line in monthly and
annual income, but still they must buy in the market inflated by
the highly paid hourly production workers.

7. It is believed that employers of unorganized white-collar
workers should be permitted to grant increases to this group up
to the limit of the Little Steel Formula or any subsequent formula
without War Labor Board approval. All such increases to be
submitted quarterly to the Board or its agencies for examination.

RECOMMENDATIONS FOR SOLUTION

1. Definite and immediate action must be taken to reduce the
diflFerentials in rates of pay which now exist between salaried
employees and hourly wage earners. We request that a committee
or board be established by the War Labor Board to handle all
white-collar problems; the members of the Board to consist of
representatives of the public, management, and certified salaried
unions. The labor representatives should be chosen from certified
salaried unions representing large numbers and the appointments
should be from among the labor leaders of salaried organizations
in the A F of L, CIO, and the Independent Unions.

2. We request that the Little Steel Formula and the Wage
Stabilization Act be changed for application to salaried employees
so that:

a. The frozen inequality of the year 1937 in the salary structure
be eliminated, and so that

b. The employers be permitted to submit classifications and
ranges of pay comparable to hourly wage structures of pay.

In other words, Office Messenger Girls, Duplicating Machine
Operators, Copy Typists, and File Clerks should be receiving
wages comparable to, if not greater than, the hourly paid Janitor
or Elevator Operator. The requirements to fill the salaried posi-

202 » WHITE COLLAR OR NOOSE?

tions mentioned require a high school graduate, neat in appear-
ance, and a diplomat, all for the magnanimous sum of $60 to
$125 per month, whereas the hourly paid Janitors and common
laborers receive $136.04 per month without bonus, and with 11%
bonus receive $151.00 per month. This is quite a contrast.

3. We request that means be provided for recognition of in-
equalities and permitting adjustments of rates of salary pay to
eliminate these inequalities and inequities.

4. We request that the recommended salary board set up a
fair and equitable position evaluation scheme whereby regional
boards will be more readily able to approve salary schedules sub-
mitted to them, and whereby employers who do not have estab-
lished salary schedules may be permitted to make merit increases
for deserving employees.

5. We request that as new groups of employees are organized
into bargaining units, that it be possible to negotiate wages and
salary structures comparable to those already in existence for
other similar bargaining units.

6. That the Labor Board permit, without restriction, the in-
stitution of bonus systems in business enterprises where white-
collar groups do not share in any established system, providing,
however, that any system so instituted shall not result in creating
further inequalities and inequities.

7. We believe that employees of unorganized white-collar
workers should be permitted to grant increases to this group up
to the limit of the "Little Steel Formula" or any subsequent
formula without War Labor Board approval. All such increases
to be submitted to the Board or its agencies once each quarter
for examination.

8. That all restrictions concerning white-collar workers in a
vital industry who wish to quit their job be removed in all in-
stances where the employer makes no effort to eliminate present
inequalities by the adoption of the recommendations herewith
submitted or similar recommendations presented by others.

9. That the above or similar recommendations, if adopted, be
given widespread publicity in order to eliminate the confusion
which present regulations seem to have created.

EFFECTIVE REPRESENTATION 203

SUMMARY

In addition to the wage charts that we have introduced into our
testimony, we request that our unanswered open letter to Senator
Reed and the Editorial on Congress and the Economic Crisis,
which appear in the July issue of our publication, The Regulator,
be included in this testimony.

THE WHITE-COLLAR CRISIS

An open letter to the Honorable Harry S. Truman, President of
the United States, and the Congress of the United States from the
officers of the National Federation.

June 21, 1945

As officers of the National Federation of Salaried Unions, we are
essentially interested in the plight of the twenty million "Forgot-
ten Americans," the white-collar workers of our nation. These
people are worse off financially today than they were four years
ago; that is, before the ugly spectre of inflation, high taxes, and
the high cost of living appeared on the horizon. Included in this
category are teachers, engineers, bank and drug clerks, depart-
ment store employees, municipal office workers, employees of
small business concerns, general clerical help, and most white-
collar workers in industry. These people are in a much worse
financial position now than they were prior to the war in 1939.
Along with these white-collar wage earners may be included
those persons depending on fixed incomes from annuities.

Outside of the low-paid white-collar workers in the large war
industries, there are millions of white-collar workers who are not
employed in companies engaged in interstate commerce. Con-
sequently, they do not enjoy the protection which the Fair Labor
Standards Act provides. The minimum rates of most of these
employees are below those rates set up by the Fair Labor
Standards Act, and further they are not paid whatsoever for
overtime work, leaving them far out of line in monthly or annual

204 WHITE COLLAR OR NOOSE?

incomes; despite the fact that they must buy in the market
inflated by the much higher incomes of the hourly paid produc-
tion workers.

Certainly the white-collar workers are not responsible for in-
flation. In all probability, if an analysis were made, it would be
found that they are contributing a far greater portion of their
incomes to community funds and other charitable work than most
of the hourly paid production workers who have enjoyed much
higher hourly rates, plus incentive bonuses of one type or an-
other, including overtime bonuses, while the white-collared
workers, or fixed income group, have had to be satisfied with the
meager effect of the application of the 15% Little Steel Formula
to their low salary rates and exclusion from incentive plans. This
group of salaried and white-collar workers, low paid for the re-
spective requirements of their positions, form an essential part
of the backbone of our financial structure.

We believe that everyone should be compensated in keeping
with the requirements of their positions and their ability to per-
form such requirements. This is true of the vast majority of gov-
ernment employees including the elected representatives of the
people— especially when consideration is given to the calibre of
the men required to adequately represent the people and admin-
ister their welfare.

For most of these people the hight cost of living and the in-
creased taxes are equally burdensome. Yet few, if any, would deny
the producer a fair return on his product be it food, clothing, or
other consumer goods. No one will deny the necessity for all
to sacrifice, in one way or another, in order that the war may be
won, but salaried people must have enough healthful food and
the essentials for a decent living if they are to do their share of
daily work, with sufficient income to provide a cushion for the
reconversion period of the post-war era. Few, if any, white-collar
workers, with their present low incomes, are in a financial position
to provide any appreciable cushion for the future. It may be
difficult to devise a plan whereby all groups will bear their fair
share of the financial burden of winning the war, but some means
must be found, and found quickly for adjusting the inadequate

EFFECTIVE REPRESENTATION 205

incomes of the white-collar workers to meet the high taxes and
increased cost of living.

In the past our Federal Government has not evolved a sound
policy for overcoming the dilemma in which the white-collar
workers find themselves and in this failure the Legislative and
Executive branches of the government share an equal responsi-
bility. Neglect on the part of the representatives of our Gov-
ernment to take sufficient interest in the complex problems of
the white-collar workers, and lack of planning and failure to
delegate the responsibility has created bitterness in the minds
and hearts of these people and, had it not been for their loyalty
and patriotism, this neglect could very easily have resulted in
the greatest possible deterrent to the war effort. No problem of
such vital importance can be set aside, because of the difficulty
of its solution, for very long without inviting eventual chaos.

WESTTNGHOUSE FEDERATION OFFERS TESTIMONY

Much of the thinking in Washington, and that of many commen-
tators, has entirely ignored the plight of these twenty million
"Forgotten Americans" or fixed income groups. Due to being
unorganized, the poor white-collar worker had no one to repre-
sent him in Washington before the various governmental agencies
administering labor laws, consequently, his problems did not re-
ceive the consideration which they so justly deserve until the
officers of the Federation of Westinghouse Independent Salaried
Unions, duly authorized spokesmen for their organization and
self-appointed spokesmen for the unorganized white-collar em-
ployees throughout the country, appeared in Washington before
the Senatorial Committee on Banking and Currency, headed by
Senator Wagner, to offer testimony as to why individual salaries
should not be frozen. The major portion of the recommendations
of these officers was written into the new bill. They also appeared
before the Senatorial Sub-Committee on Wartime Health and
Education, headed by Senator Pepper, which was investigating
the plight of the white-collar worker. At this hearing they offered
testimony and submitted a Nine-Point Program designed as a

206 WHITE COLLAR OR NOOSE?

solution to overcome many of the problems which confront the
white-collar workers.

The Federation of Westinghouse Independent Salaried Unions,
recognizing the need of effective representation for salaried em-
ployees outside of the Westinghouse Corporation, founded the
National Federation of Salaried Unions.

SOUND PRICE CONTROL PROGRAM NEEDED

If our national economy is to be preserved and individual bank-
ruptcy avoided among the white-collar workers, prompt and effec-
tive action must be taken. A sound and understandable price
control program must be established and the wages of the white-
collar workers increased immediately beyond the Little Steel
Formula to establish them on an equal footing with the increased
wages gained by the hourly paid production and maintenance
workers from 1937 to the present.

To the best of our knowledge, the Little Steel Formula has
never been broken, but it surely has been bent by the granting
of fringe increases to any number of unions representing hourly
paid production and maintenance workers.

The white-collar workers, whose efforts towards increased pro-
duction in the war emergency is beyond question, have failed to
date, due to the application of the Little Steel Formula, to receive
any additional compensation from their employers or recognition
from the Government to equalize the additional inequality cre-
ated by the hourly rates as increased for the production and
maintenance workers between the years 1937 to 1941, and the
so-called fringe negotiations applied so freely to the hourly paid
production and maintenance workers during the years 1941 to
1945.

The existing price control methods are, in the minds of many
economists, hodge podge, of questionable soundness and inade-
quately administered. However, for the Government to nullify
present policies without authorizing or enacting legislation to
alleviate the condition of the white-collar worker can only result
in loosing the flood gates of inflation which will engulf all

EFFECTIVE REPRESENTATION 207

America. The first to suffer, as always, will be the white-collar
groups.

It may be well at this time to point out that in 1937-38 or-
ganized common labor throughout the nation received an increase
of twenty-two and one-half cents per hour, or an increase from
$.40 minimum hourly rate to $.625 minimum hourly rate. At this
time the white-collar employees were merely recovering some of
the general decreases that they had suffered during the period
of depression and have never received any part of this general
adjustment that had been made for the hourly paid employees
of the nation. Therefore, by way of comparison, there exists in the
application of the Little Steel Formula to white-collar workers a
frozen inequality to that extent.

In addition to the advantages enjoyed by the hourly paid em-
ployees which have already been enumerated, we should like to
point out how the application of the Little Steel Formula grants
the hourly paid production and maintenance workers added
benefits that do not affect the white-collar workers.

HOURLY WORKERS' BONUS SYSTEMS

There are few hourly paid employees of the country who do not
enjoy either an incentive workers' bonus plan or a partial bonus
plan for not being covered by an incentive worker's bonus plan.
By applying the Little Steel Formula or the 15% factor, the hourly
paid employees under the plans referred to are not limited to
15% of their base rates but are only limited to the extent of the
15% times whatever the incentive percentage makeout of the
groups may be. That is, for example, if we assume that a group
is making 150% or 50% bonus, which is not uncommon, the hourly
paid employes will receive not the 15% increase to their base
rates as intended by the Little Steel Formula, but the effect of
150% of 15%, or 22?2% increase on their base rates. It is quite obvious
that the intent of the Little Steel Formula can and has been very
easily circumvented daily by merely liberalizing the time allow-
ance for the hourly paid incentive workers.

We have no quarrel with the rate ranges and incentive bonuses

208 WHITE COLLAR OR NOOSE?

paid the production and maintenance workers and we believe
they are entitled to every cent they are receiving. In fact, we
believe they are entitled to a general increase to compensate them
for increased taxes and the high cost of living. However, we
cannot understand a Government which permits the application
of the same formula to one group of workers who, through or-
ganization, have succeeded in securing so many additional bene-
fits, such as: higher hourly rates, more overtime, fringe negotia-
tions, and incentive bonus systems, while another group of
workers are denied the same benefits simply because most of
them are unorganized or because they receive their pay monthly
or semi-monthly or— because of the color of the collar they wear!
It is true that there are millions of white-collar workers who
have received increases totaling 15%. It is also true that there
are millions who have not received increases totaling 15% and
the most fortunate of these two groups, or those receiving the
15%, are a great deal worse off financially than their hourly paid
brethren who have received all the benefits aforementioned, plus
the 15% granted under the Little Steel Formula. And those who
did not receive the 15% under the Little Steel Formula are pro-
portionately worse off than their more fortunate white-collar
brethren and their very fortunate hourly paid brethren.

WHY HAVE THE SALARIED WORKERS BEEN PATIENT FOR So LONG?

In view of the unfair and discriminatory handling of salaried
employees, it may be wondered why these injured folk have not
really asserted themselves— or rebelled. This is due to a combi-
nation of factors.

1. Since the twenty million white-collar workers are not effec-
tively organized, the vast majority of them cannot take organized
action, and these twenty million people have very few authorized
spokesmen.

2. Salaried workers have long felt that their plight was tem-
porary and many employers have encouraged their salaried em-
ployes to so believe; in an attempt to relieve the employers from
taking appropriate action.

EFFECTIVE REPRESENTATION 209

3. Some few workers know how badly off they are, but do not
fully realize the extent to which they have been discriminated.
Most salaried workers when hearing anything about the earnings
of the hourly paid are filled with shame regarding their own in-
comes, become silent and the discussion ends.

4. Since most of the salaried workers felt that the discrimina-
tion was temporary, they did not want to change to new and un-
familiar jobs and lose their present job seniority for a temporary
advantage. But now as the end of the war is approached many
question the wisdom of their sacrifices during the pre-war and
war periods since they could so easily have taken simpler
jobs with much less nervous strain and earned much more
money.

RECOMMENDATIONS

We recommend for your consideration and action a Fourteen-
Point Program to aid these poor unfortunate victims, who
have been made scapegoats in this war economy simply be-
cause they are unorganized and therefore do not constitute a
group with sufficient pressure to secure the benefits they so justly
deserve.

1. As a temporary expedient, direct a ten per cent general
salary increase to all white-collar workers until such time as a
careful study can be made and full restitution granted.

2. Correct the Little Steel Formula and the Stabilization Act
for white-collar workers so as to eliminate the frozen inequality
of 1937-41 and permit employers to grant increases retroactive
for at least a year, for white-collar workers to the extent of this
frozen inequality.

3. Appoint special panel under War Labor Board to handle
white-collar problems. This panel to consist of representatives
conversant with the problems of the white-collar worker and to
represent the public, management, and certified white-collar
unions.

4. Recognize other inequalities and permit adjustments of
white-collar rates of pay to eliminate them.

210 WHITE COLLAR OR NOOSE?

5. Establish a just and flexible position evaluation scheme
for white-collar positions to enable regional boards to more
readily approve salary schedules.

6. Establish rules which will permit employers who do not
have established salary schedules to grant merit increases subject
to the approval of the board.

7. As new groups of salaried employes are organized into bar-
gaining units, authorize white-collar rate structures comparable
to those already existing for other organized units.

8. Recognize that the efforts of white-collar employes have a
definite effect on production and permit and encourage institu-
tion of bonus systems for white-collar workers based on incentive
systems or other recognized bonus systems already in existence
for production and maintenance units.

9. Permit employers of organized white-collar employes to
grant increases immediately to the limit of the Little Steel
Formula, or any subsequent formula recommended under Point
2, without War Labor Board approval.

10. Remove restrictions against white-collar workers "quitting
jobs" where employers fail to eliminate inequalities by adopting
these or similar recommendations.

11. Give wide publicity to any adopted recommendations to
eliminate confusion present regulations have created.

12. Appoint to the staff of the Secretary of Labor a person
conversant with the problems of white-collar workers.

13. Appoint at least one white-collar representative as a mem-
ber of the National Labor Relations Board to represent the
twenty million white-collar workers of the nation.

14. Appoint white-collar representatives to all regional War
Labor Boards and all War Labor Board panels dealing with
white-collar problems.

The application of the 15% Little Steel Formula to the excep-
tionally low incomes of the white-collar workers of the nation is
inadequate and is accelerating economic chaos among this group
of workers; economic decline promotes moral disintegration and
the loss of the principles of Christian brotherhood. We request
that you do everything in your power to alleviate the plight of

EFFECTIVE REPRESENTATION 211

the white-collar workers since this group is facing an economic
crisis.

The following letter was received from Fred M. Vinson, di-
rector, Office of War Mobilization and Reconversion, in answer
to the National Federations letter to President Truman entitled,
"The White-Collar Crisis."

"President Truman has referred to me your letter of June 21
relating to salary stabilization for white-collar workers.

'7 wish to thank you for submitting a comprehensive statement
on factors affecting living standards of white-collar workers in
wartime. In the formulation of wage policies, we are cognizant
of the difficulties faced by those with relatively fixed incomes in
a time of rising prices. As we enter the reconversion period, you
may be assured that every effort will be made to establish sub-
stantial equity among different groups in the community through
appropriate modification of the wage controls which have been
essential to the welfare of every worker. We shall also continue
to protect workers, particularly those with relatively fixed in-
comes, by price controls designed to keep the cost of living at
reasonable levels."

Chapter IX

FORMATION OF THE NATIONAL FEDERATION
OF SALARIED UNIONS

THE FEDERATION of Westinghouse Independent Salaried Unions
not being satisfied that their job was done, and not wishing to
bask in the reflected glory of past accomplishments, found itself
pioneering again in the white-collar labor field, undertaking the
tremendous and difficult task of organizing all white-collar work-
ers, who are interested in a solution to their present dilemma
and a just program for their future welfare, into a National Feder-
ation of Independent Salaried Unions.

There is definite evidence that there is a growing desire among
unorganized salaried workers for the advantages and security
that true unionism offers. Many of these unorganized workers,
however, do not look with favor upon the methods employed
by the large international unions. Proponents of the independent
salaried union movement realize that unions have the potential
for great good— or harm, and when they form a union they want
to be sure it exists only for the good it can do. Independent sal-
aried unionism founded upon the principles of cooperation,
understanding and fair dealing is the answer. The affairs of an
independent salaried union are entirely in the hands of people
who are most interested in the welfare of salaried employes as
contrasted with the almost exclusive interest of the large interna-
tionals in the problems of the hourly paid production and main-
tenance employes.

The principles of such a union are democratic in applications
as well as in theory— its members are free men, privileged to con-
duct their own affairs in their own way without dictation from
hourly paid unions whose thinking is basically concerned with the
problems of hourly wage earning employes.

212

FEDERATION OF SALARIED UNIONS 213

In independent unions representing only salaried employes or
white-collar workers, the problem of the white-collar worker or
salaried employe is first, last and always in the minds of the
officers who endeavor to initiate and operate such an organiza-
tion.

The success of any enterprise depends largely upon its leader-
ship. Extreme caution must be exercised in the selection of officers.
They must be capable and intelligent and able to see both sides
of a question. They must be honest and unselfish and have the
courage to fight for the things the union has a just right to expect.
There are such leaders in every group. The big job is to convince
them that it is their duty to take their turn at the helm.

Independent unions, when properly conducted, fill a long felt
need for the participation of employes in problems that affect
them in their daily life.

Therefore, at the Westinghouse Federation meeting held in the
Webster-Hall Hotel, Pittsburgh, Pennsylvania, on February 5 and
6, 1944, the delegates of the various member units of the Westing-
house Federation voted to establish an organization to be known
as the National Federation of Salaried Unions, for the purpose of
assisting the unorganized white-collar workers to become or-
ganized and eventually bring them together in a national federa-
tion to be made up of certified independent unions.

The Federation's interest in a national organization did not
come as too much of a surprise to any who watched the progress
and activities of the Westinghouse union in Washington; for
always, in their appearances before government boards and
agencies, Federation officers spoke not only for Westinghouse em-
ployes whom they represented, but also acted as self-appointed
spokesmen for the millions of unorganized white-collar employes
in the country, and tried to obtain legislation that would be all-
inclusive and country- wide.

Much publicity has been given of late to the problems of these
"orphans of labor"— the white-collar workers. This publicity, which
has failed to produce the needed relief, has certainly brought
home to all working men and women the great inequalities and
inequities existing between organized hourly wage earners and

214 WHITE COLLAR OR NOOSE?

unorganized white-collar workers. Whether it will serve to make
people think about a solution cannot yet be determined, but the
establishment of the National Federation of Salaried Unions was
certainly a step in the right direction. The officers of the Federa-
tion of Westinghouse Independent Salaried Unions, who had
given considerable thought to the matter, were of the opinion
that a large and powerful white-collar organization could bring
much needed pressure to bear upon the labor boards and govern-
ment agencies who, until prodded by the Westinghouse Federa-
tion, have shown only dispirited indifference.

The primary purpose of this new National Federation of Sal-
aried Unions is to bring the plight of the Forgotten Americans to
the attention of the various government boards and agencies, and
secure immediate action on pressing problems; its ultimate pur-
pose is to raise the national standard of living among white-collar
employes who have found their low, fixed incomes inadequate
to cope with the higher costs of living.

A national salaried union would be sufficiently powerful to
bring pressure to bear on Congressional Committees, labor boards,
and government agencies, assure representation on boards and
committees where heretofore the politically powerful interna-
tional unions consisting almost entirely of hourly paid employes,
have held a monopoly of labor representation.

Much of the activity of the National Federation as the Wash-
ington representative of white-collar employes has been covered
in the preceding chapter.

Any single isolationist union will lack the necessary strength to
secure congressional attention or representation on government
boards or agencies and will find it exceedingly difficult to remain
in existence in competition with a union national in scope. It
therefore follows that a single union should seek national
affiliation or realize that they will eventually pass out of ex-
istence.

The National Federation of Salaried Unions is independent,
unaffiliated with any of the big labor organizations, because the
problems of the salaried employes are vastly different and often
more complex than those of the hourly paid workers, and the

FEDERATION OF SALARIED UNIONS 215

pattern of wages and general negotiations are fairly well estab-
lished for hourly paid employes, while new ground must be
broken in all fields where salaried employes are involved.

The National Federation has no antipathy toward any of the
large international unions. However, it is desirous of developing
this field without being hampered by any prejudices or precon-
ceived notions formed by those unions which have always thought
in terms of hourly paid employes' problems. The National Feder-
ation officers have found through experience that any group of
salaried employes who are a part of one of the international unions
were dominated by a closely allied group of union officials who
were primarily interested in the problems of the hourly paid em-
ployes and who considered the problems of the salaried workers
as secondary. Their problems were therefore not given intelligent
or proper consideration. In fairness, it must be added that the
failure to properly represent these unfortunate salaried employes
was not always an intentional oversight but more often the result
of inexperience, unfamiliarity, or lack of time on the part of the
hourly union leaders.

An intensive campaign was launched in April, 1944, to point
out to unorganized salaried workers the necessity of a strong,
effective, purely white-collar organization, if the pleas of salaried
employes are ever to be heard and answered.

As this book goes to press, the temporary officers of the Na-
tional Federation of Salaried Unions, despite the limitations im-
posed by the lack of a substantial financial reserve, have been
successful in organizing several units of white-collar workers
located in or near the metropolitan district of Pittsburgh, Pennsyl-
vania. These include the Aluminum Company of America, Erie
Draftsmen's Association, General Electric Company, American
Bridge Company and Pressed Steel Car Company, Inc. Requests
have been received from employes of five different companies lo-
cated in Baltimore, Maryland, with a potential membership of
25,000. White-collar workers in two large concerns located in
Buffalo, New York, have requested guidance and assistance from
the National Federation officers. Similar requests for guidance
and assistance have been received from white-collar employes

216 WHITE COLLAR OR NOOSE?

of large industries located in Chicago, Fort Wayne and New York
City.

Such an undertaking, never before attempted on so wide or
thorough a scale, cannot be operated on a five-and-ten-cent basis
—it will require money and plenty of it to operate on a national
basis. The National Federation will require experienced qualified
men as officers and these men must be compensated in keeping
with their knowledge and responsibility. The expense of traveling
all over the country to help organize white-collar workers and to
finance organizational meetings will probably be tremendous. It
is anticipated, at the present writing, that the National Federation
will soon require the services of at least one full time paid official;
a secretary; and office space to do an efficient job and continue its
growth. In the very near future, the National Staff will include
full time legal, statistical, editorial, and organizational depart-
ments.

In order to secure the necessary finances for a successful opera-
tion, the temporary Executive Board of the National Federation
of Salaried Unions believed it advisable to establish the following
charter fees and per capita tax assessments:

1. Charter fee of $10 for all affiliate unions of 100 members
or less.

2. Charter fee of $25 for all affiliate unions with more than
100 members.

3. A per capita tax assessment of 5 cents a month per member
before certification.

4. A per capita tax assessment of 10 cents a month per member
upon certification.

5. A per capita tax assessment of 25 cents a month per member
upon completion of the first contract with management.

These are temporary policies established by those who are now
governing the National Federation and are expedient measures
necessary for the institution of the National on a sound financial
basis. All policies so instituted and established will be ratified by
vote at the first national convention.

It must be borne in mind that this is a decided departure from
the usual practices of the present large national organizations

FEDERATION OF SALARIED UNIONS 217

who, at the present time, are charging from 40 to 75 cents or
more per month per member. The temporary Executive Board
of the National Federation sincerely believes that they can do
an efficient job on the assessments as outlined.

The National Federation of Salaried Unions will weld inde-
pendent white-collar unions into a cohesive national group. The
new organization will prod Congress and the various governmen-
tal agencies into actions favoring the white-collar folk, rather
than actions discriminating against them. It will exchange data
on rates of pay with the idea of standardizing salaries nationally
by job descriptions and titles. ( Such information to be distributed
by a central clearing house to all affiliates.) It would seek to
eliminate unfair differences in pays of salaried and hourly paid
workers and it would arrange a bargaining program whereby
all affiliates would file demands on employers simultane-
ously.

The necessity of white-collar labor organizations banding to-
gether in a strong national union is very often not given sufficient
consideration by the officers of independent white-collar unions.
Even those officers who recognize the need for such unity are very
often insufficiently experienced in the union movement to be
cognizant of all of the reasons why unity is essential. Briefly, the
important reasons are:

1. United strength to remain free, independent and locally
autonomous.

2. Membership in a strong and determined national organiza-
tion whose aims and purposes are confined strictly to white-collar
workers and whose complete efforts will be dedicated to the prob-
lems of this group of neglected workers.

3. White-collar rates are based on community levels. These
rates are too low in comparison with hourly paid employes' rates
of pay. Only by having a strong, united group of unions can rates
in a community be forced upward. Single, isolated unions cannot
accomplish this alone.

4. An organizational personnel of capable, experienced men
to organize white-collar employes who are still unorganized. The
quicker the white-collar worker realizes the need of organization,

218 WHITE COLLAR OR NOOSE?

the sooner the raising of community rates, etc., can be accom-
plished.

5. Exchange of rates of pay, job descriptions, and other infor-
mation which will be helpful to member unions.

6. A central bureau to aid and assist certified member unions
in contract negotiations, etc.

7. Establishment of ways and means to coordinate the de-
mands of member unions so that all will enter into negotiations
for the same request simultaneously.

8. A strong national union of white-collar workers can create
governmental interest in the problems of this group of people.
Members of Congress would soon drop their present indifferent
attitude.

Ultimate realization of this program is a certainty if all white-
collar workers remain steadfast in their determination to remain
free and independent. It will take time, but it can and will be
done with your help and support.

All the white-collar workers of the nation— 20 million plus— are
crying for help. Not that many people could have "imaginary" ills.
Something must be done for them— and quickly! It is believed
that the National Federation of Salaried Unions can be the
answer. The future of the National Federation of Salaried Unions
is in the hands of the white-collar workers of the nation.