WHEN STRIKES ERUPT

Evening Star, Issue 25676, 27 December 1945, Page 5

WHEN STRIKES ERUPT

VALUE OF FACT-FINDING COMMISSIONS AMERICAN PROPOSALS Recent developments in the field of American labour relations may have important consequences that last long after current problems are settled (states the Research Institute of America). One of the most significant developments is President Truman’s request that Congress establish fact-finding procedures to ascertain the economic realities of both Labour and Management positions in conflicts over wages that may threaten strikes. There is a strong prospect that Congress will respond affirmitively to the President’s request. Among the biggest hurdles in the way of settlement of current labour disputes, as in the General Motors strike, has been Labour’s insistence that management “ can afford ” to pay higher wages, and management’s insistence that it cannot safely increase wages without at the same time increasing prices. The question of ability to pay will not, of course, be automatically settled by any factfinding commission. For instance, facts may show that some company has made large profits, but management will still be - free to assert that it is better business practice- to use such profits as reserves against future contingency or to pass such profits on to consumers in the form of lower prices, rather than pay a larger share to workers as increased wages. There is no doubt, however, that fact-finding commissions can, be effective in bargaining relations between Labour and management. The key fact is that such commissions offer a way of mobilising and focusing public opinion in labour disputes. In some cases this is likely to prevent strikes, because the union or _ company in any partcular instance will’ realise that its case will not stand up against an objective - probing of the facts. It is also true, however, that “ facts ” are not always easy to determine objectively. It is probably fair to say that many labour leaders are at present hoping that fact-finding reports will emphasise: (a) The necessity for wage increase to make up for loss of take-home pay; (b) industry’s ability to pay in terms of current profits, reserves, and tax benefits; (c) increased worker productivity and technological developments which will reduce unit labour costs; and (d) optimistic market and sales outlook that exists in the United States to-day. If-fact-finding commissions can mobilise public opinion effectively, the device would resemble an indirect form of compulsory arbitration. This gives rise to the possibility that official Government sanction may eventually be given to the findings, so that they are made binding on both parties. If this should occur, the entire nature of free collective bargaining as it has developed under the National Labour Relations Act would be drastically altered. Instead of free negotiations between the parties, the outcome depending on the relative economic strength of union and company, there would be in effect direct Government intervention and a Government-supervised settlement. It must be noted that, as presently conceived, fact-finding procedures ought to be limited only to those industries which affect the public welfare and interest, but President Truman’s advisors are urging the establishment of fact-finding boards in all industries to have them on hand when strikes erupt. 'There- is thus the possibility that Governmental fact finding may develop into board settlements of strikes in each industry, a change in American labour relations little short of revolutionary if it occurs.