STRIKE THREATS

Taranaki Daily News, 21 March 1934, Page 7

STRIKE THREATS

RAILWAY AND AUTOMOBILE DANGER IN AMERICA TO-DAY MAJOR TROUBLE EXPECTED WAGE REDUCTION DECLINED COLLECTIVE BARGAINING By Telegraph—Press Assn.—Copyright Rec. 10 p.m. Washington, March 19. The Recovery Administration is«faced with threats of two major strikes to-day in what may be described as the most serious labour crisis President Roosevelt has yet encountered. The American Federation of Labour has definitely called a general automobile trade strike for Wednesday unless the automobile manufacturers accede to its demands, while railway owners and union brotherhoods have exchanged ultimata over the proposed wage cuts cabled.

Railroad companies served notice on 900,000 union employees that the basic rates of pay would be reduced by 15 per cent., to be effective on July 1, The cut actually amounts to 5 per cent., as a temporary 10 per cent, cut has been in effect under the agreement made a year ago. Coincidentally President Roosevelt announced at Washington that he had asked the railroads to extend the present agreement for six months beyond July 7. He issued the warning that “the emergency still exists and a controversy over wages would have a disturbing influence.”

The automobile controversy concerns the interpretation of the collective bargaining clause in the National Recovery Act, with the American Federation of Labour leaders insisting that the workers have not had a free opportunity to select between their organisation and the so-called company unions, while the owners' association flatly insists that it is' willing to allow the workers to organise independently, but will never recognise. or negotiate with the American Federation of Labour. -

The strike called, which is expected to involve 250,000 workers, comes at a most critical time to the industry with a flood of orders for motor-cars awaiting fulfilment. ' A “shutdown” now will seriously retard the recovery of the automobile and co-related industries.

The railways controversy is less acute but is more fundamental. The operators have offered to withdraw the 15 per cent, cut if the. unionists agree to an extension of the existing 10 per cent cut. This was flatly refused. The owners then issued a counter-ultimatum for a cut of 15 per cent. Should this be attempted a general strike appears inevitable, although it is not imminent as there is considerable time before the present agreement expires. Reports from Detroit that the city was on edge. The American Federation of Labour, which hitherto has not represented the motor industry, is mapping elaborate plans for strike strategy. The city council has petitioned Mr. Roosevelt to use his good offices to settle the dispute, pointing out the serious consequences of a strike.