Vol. 2's

Senate

Second Ciass Postage Pald at Washington, B. C.

Hearings Spur Drive

To Pass Forand Health Bill

| Insurgents Push Fight

ZQOn Cross

St. Louis—Insurgent leaders secking to bring the ousted Bak- ery & Confectionery Workers back into the AFL-CIO have opened a second front in their drive to unseat Pres. James G. Cross.

In a three-day conference here, they voted to seek a special un- jon convention in September and to raise a $100,000 fund for use in fighting Cross.

The conference was called by five BCW local union officers who, three weeks earlier, had filed a federal court suit in Washington aimed at the removal of Cross and Sec.-Treas. Peter N. Olsen.

The meeting here brought to- gether 80 officers of 48 BCW locals. They said they represent 36,868 of perhaps 62,000 mem- bers remaining in BCW since its expulsion in 1957 on findings that it was run by corrupt ele- ments.

The aim of the reform group is, first to get rid of Cross and clean house within the union, then to seek a merger with the AFL-CIO American Bakery & Confectionery Workers. ;

Expelled by AFL-CIO The ABC was chartered by the federation immediately after the expulsion of BCW. It now has about 80,000 members.

In their suit, the five insurgent leaders charged Cross and other top officers with “corrupt and self- ish conduct designed to plunder BCW” for Cross’ personal benefit.

They asserted here that $5.3 mil- lion in union funds had been

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| May Merger Ordered in

New Jersey

jm AFL-CIO Pres. George Meany

x {

the state.

k fein the Newark Armory.

(Continued on Page 4)

has called a special convention Mae for May 19-20 of all AFL-CIO Organizations in New Jersey to form a merged labor body in

The convention will be held

The convention call came sev- > tral weeks after Meany ordered Tevocation of the charters of the New Jersey State Federation of Labor and the New Jersey Indus- trial Union Council, directed the __*mary of the actions taken by the

STRANDED UNIONIST, Richard McClure of Packinghouse Work- ers Local 34, guides labor-manned rescue truck through flood waters near his home after disaster struck area around Sioux City, Ia. AFL-CIO Community Services joined hands with Red Cross in setting up rescue and relief program, with 100 union volunteers joining in. (See story, Page 12.)

‘Runaway’ Conference Speaks:

By Dave

has called on Congress to vote “s tion, asked Pres. Eisenhower to u

Youth Parley Bolts On Rights, Schools

A “runaway” White House Conference on Children and Youth

speed school desegregation and proposed a broad program of social legislation aimed at giving millions of underprivileged youngsters a

Perlman

ubstantial” federal aid to educa- se “the prestige of his office” to

fair start in life. ®

The 7,000 conference delegates, invited by the President to “review the unmet needs of young people and recommend solutions,” did ex- actly that, breaking away from the Administration’s “leave-it-to-the- states” position on the nation’s social needs.

In a series of hard-hitting resolu- tions, delegates asked strengthened and better-enforced child labor laws, a higher federal minimum wage extended to millions not now covered, higher standards of unem- ployment_insurance, expanded pub- lic housing, an end to exploitation of migrant farm workers and eradication of all forms of racial discrimination. ;

More than 1,000 Resolutions

More than 1,000 conference res- olutions polired out of 18 forums where delegates voted on proposals initiated in small work-group ses- sions. ,

Originally the final plenary ses- sion was to have included a sum-

forums—to form the basis of the conference’s official report to the President. Conference officials

Committee.

17> 17 No. 15

White House Again

|\Delayson Program

Liberals on both sides of Capitol Hill stepped up their drive for legislation to provide health care for the aged, despite stiffening Administration opposition to the Forand bill and initial rejection of the AFL-ClO-backed measure in the House Ways & Means

As congressmen continued to be deluged with the heaviest flood of mail in years, showing mounting public demand for the Forand bill’s social security principle, there were these developments:

@ A Senate Subcommittee on Problems of the Aged opened public hearings on federal health insurance, with Chairman Pat

McNamara (D-Mich.) forecasting passage of a bill this year. There were indications that, if the House fails to include health care in a pending social security measure, attempts would be made to amend the bill in the Senate. @ Auto Workers Pres. Walter P. Reuther, in a statement pre- sented to the McNamara sub- committee, charged the Forand bill was being blocked by “powerful and politically infiu- ential groups” including the American Medical Association, U.S. Chamber of Commerce and National Association of Manu- facturers. He expressed confi- dence that “the vast majority” of Congress “will find a way to bring this legislation to a vote.”

@ James B. Carey, testifying as president of the Electrical, Radio & Machine Workers and secretary- treasurer of the AFL-CIO Indus- trial Union Dept., said opponents of health care are “calloused by their own creature comforts.” He ac- cused the Administration of “an outright betrayal of the needs of America’s 16 million elder citizens.”

@ Following a White House conference, Senate Minority Leader Everett McKinley Dirksen (R-IIl.) spelled out what he termed Admin- istration-approved “guidelines” but no GOP health care program. He emphasized opposition to social se-

(Continued on Page 9) :

(Continued on Page 11)

Major Air Pact Signed At Republic

In the first major agreement in critical 1960 negotiations with the aircraft and missile industry, 8,400 members of the Machinists have won a two-year contract from Republic Aviation Corp., Farmingdale, N. Y., scene of a turbulent 114-day strike four years ago.

The Republic pact gives work- ers wage hikes ranging from 7 to 11 cents an hour immediately, to be followed by increases of from 5 to 8 cents hourly effective Apr. 3, 1961. In addition, a 6-cent cost-of-living increase accumulated over the past two years was incor- porated into all base rates, and the living-cost clause was continued up to a limit of 6 cents over the next two years.

The pact raised company pay- ments for pensions from $1.75 per month per employe to $2.25 monthly; eligibility for pensions was reduced from 15 to 10 years

(Continued on Page 11)

AFL-CIO Backs “Truth-in-Lending’ Bill, Hits Consumer Credit Gyps

Sharply assailing “deceptive practices” in the consumer credit field, the AFL-CIO has called for congressional passage of a “truth-in-lending” bill that would require full disclosure to the purchaser

of all finance charges.

Peter Henle, assistant director of the AFL-CIO Dept. of Research, told a Senate Banking sub-

committee that its hearings on a bill introduced by Chairman Paul H. Douglas (D-Ill.) were “break- ing new ground” since Congress’? i

“has never before taken a look at consumer credit from the view- point of the borrower.”

The government, he said, has an “obligation” to protect the con- sumer in the credit field in much the same manner as it safeguards him against deceptive advertising, impure foods or medicines, and through laws requiring appropri-

ate labels for clothing, furniture and other products.

At its midwinter meeting, Henle told the subcommittee, the AFL- CIO Executive Council gave its “clear endorsement” to the Doug- las bill, declaring that its passage “would do much to alert consum- ers to the high prices they now pay for money.”

_ The council called for both state and federal regulations against “de- ceptive practices and exorbitant charges in vending consumer credit, particularly installment credit.” It added that this could be achieved through the Douglas bill’s require- ment that finance charges on all in- stallment purchases be expressed in

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PROTECTION OF PUBLIC against “deceptive practices” in con- sumer credit field can be achieved through passage of Douglas “truth-in-lending” bill, Peter Henle, assistant director of AFL-CIO Dept. of Research, told Senate Banking subcommittee hearings. Citing labor’s concern, he said AFL-CIO Community Service Ac- tivities has instituted special consumer information programs to educate members.

AFL-CIO Backs Law To End Credit Chiseling

(Continued from Page 1)

terms of “simple annual interest.’

With consumer credit at a. rec- ord high of over $51 billion—three times what it was in 1949—Henle said the problem of “deceptive credit practices” has been brought home forceably to trade union of- ficials because members are turn- ing more frequently to them for

help. Because of this rank-and-file concern, he said, AFL-CIO:

Community Service Activities— .

labor’s operating arm in the so-

cial welfare field—has instituted

a special consumer information

program “to help educate our

membership concerning the pit- falls of installment buying and | other credit purchases.” ;

“But education is not enough,” Henle continued. “It is our con- tention that the problem is. suffi- ciently serious to require action by the federal government.”

The Douglas bill, he said, “pro- vides an excellent approach” to this problem.

“It does not attempt to regulate the terms of any consumer financ- ing contract,” he added. “It does attempt to simplify consumer fi- nance contracts by requiring full cost disclosure in such a way that

Easter Seal Drive Backed by Meany

Labor welcomes the oppor- tunity to assist in furthering the rehabilitation program for the handicapped through the purchase and use of Easter Seals, AFL-CIO Pres. George Meany said in accepting re- appointment as a sponsor of the program of the National Society for Crippled Children and Adults, which directs the annual seal sale.

“An organization that has. established an enviable rec-' ord of service to humanity: truly merits the support of all. Americans,” he said, “and 1.

and women of the AFL-CIO, keenly aware of the dedicated service of the Easter Seal so- cieties, will be both generous and warm-hearted in their: support.”

Care and treatment for the handicapped, with full inde- pendence as the goal, are pro-' vided through some 1,400 Easter Seal centers and pro- grams with medi- cal supervision and cm There are no restrictions for eligibility.

, +} operations of the consumer credit industry on a sensible basis than

am confident that the men:|

‘| been elected ninth vice president of

IATSE general executive board at _| its. semi-annual meeting in Port-

the consumer himself can make an *lintelligent choice regarding the credit that is being furnished him.” At present, Henle said, “every conceivable obstacle” has been placed in the path of the consumer seeking “adequate information on which he can base an intelligent decision regarding his use of credit.”

Advertising Deceptive?

Advertising by consumer loan companies, automobile dealers and others who sell goods on credit, the AFL-CIO spokesman declared, “is often quite deceptive and very confusing.” He introduced a series of newspaper ads which, he pointed out, “indicate the rate of repayment but seldom if ever mention the price of the loan either in terms of the total charges or as an annual rate on the principal.” In addition, he said, credit in- struments “turn out to be even more confusing than the advertise- ments.” While they give the amount of the loan and the repay- ment schedule, they often do not list such charges as insurance or service fees that are lumped in, and “in no case are the finance charges expressed in language simple enough for the buyer to recognize whether he is paying a reasonable amount for his loan.”

Henle said the method of presenting finance charges to the customer is also confusing, point- ing out that the 3 percent a month charged by a small loan company is a true 36 per cent ‘annual interest rate; and the 1.5 percent monthly charge by a de- partment store or mail order house under a “revolving credit arrangement” is a true 18 per- cent,

Enactment of a law embodying the principles set forth in the Doug- las bill, the federation spokesman declared, “will do more to put the

any other possible action by Con- gress.”

Stagehands Choose New Vice President New York—Jerry Tomasetti,

business agent of Film Exchange Employes of Local B-51 here, has

the Theatrical Stage Employes Un- ion. Tomasetti was named by the

land, Ore., to fill the unexpired term of the late Louise Wright of Dallas, Tex. The post represents

|Job Policy Advisors Urge 5 Aid for Depressed Areas

Enactment of area redevelopment legislation that would “revitalize the economies” of depressed aréas has been urged on the Eisenhower Administration by the tripartite Federal Advisory Coun-

cil on Employment Security.

“exhibit tendencies”

At the same time, the council called for a program of financial assistance to communities which toward persistent unemployment but which have not yet “deteriorated to the

point of becoming classified as® chronic labor surplus areas.”

The unanimous views of the council’s 24 labor, -management and public members were contained in a report to Labor Sec. James P. Mitchell. The council is a statu- tory body established to.advise the Secretary of Labor and the Direc- tor of Employment Security on policies relating to unemployment.

Persistent Joblessness

Its report was geared to a study of persistent joblessness in the nation. According to the most re- cent Labor Dept. employment-un- employment report, there were 964,000 persons unemployed 15 weeks or more in February, com- pared to 617,000 long-term job- less in pre-recession February 1957. The report was made public as the powerful House Rules Commit- tee, ending a 10-month blockade of depressed area legislation, open- ed hearings on a $250 million, Ad- ministration-opposed bill, slightly smaller in scope than one Pres. Eisenhower vetoed in 1958, but far larger than the $57 million recom-

‘Scab’ Agency Head Fined in Pennsylvania

Philadelphia—Bloor Schleppey, 73-year-old operator of a profes- sional strikebreaker recruiting agen- cy, has been fined $500 for viola- tion of Pennsylvania’s state law prohibiting use of third parties to obtain “replacement” employes in ‘labor disputes.

Sentence was imposed on Apr. 1 in Bucks County Court by Judge Edward G. Biester after Schleppey avoided a scheduled grand jury appearance by pleading no contest to charges against him.

Asks Mercy

A “no-contest” or nolo conten- dere plea in criminal cases means that a defendant, without directly admitting guilt, throws himself on the mercy of the court. Maximum penalty in Schleppey’s case was one year in jail and a $1,000 fine.

Faced with the possibility of being held in probation, Schiep- pey stated in court that he would not again operate in a manner violating Pennsylvania’s anti- strikebreaker recruiting law.

Schleppey was arrested Feb. 11 in a Philadelphia airport motel after flight from police involving a crew of hired strikebreakers pre- pared to go to Chester, Pa., where a newspaper strike was threatened. He was charged with having previ- ously imported strikebreakers in a newspaper dispute at Bristol-Levit- town, Pa. %

Schleppey’s strikebreaking ac- tivities in the newspaper industry were documented last year in un- denied testimony before a New York State board conducting hearings on the importation of professional scabs in a strike against the Macy papers in West- chester County.

Union spokesmen in the current multiunion strike against Portland, Ore., newspapers have charged that professional strikebreakers for- merly associated with Schleppey’s operations showed up, at premium pay and with extra expense ac- counts, to help the publishers start a struck newspaper under the joint masthead of the Oregon Journal

the union’s Special Dept.

| Piemasice Promotes Area Redevelopment

‘The union-backed Area Employment Expansion Com- mittee has issued a popular pamphlet to help win passage of the Area Redevelopment Act—“a Point Four for America.”

“Today’s boomtown may be tomorrow’s ghost-town,” it warned in listing 177 “dis- tressed labor markets” where unemployment of 6 to 30. per- cent has persisted for at least 18 months.

in 1958 by Pres. Eisenhower and appealed for prompt ac- tion because “the country can wait no longer.”

mended in current Administration budget proposals.

Passage of aid-to-depressed areas legislation is a key plank in the AFL-CIO’s § 12-point “Positive Program for America,” which organized labor has asked Congress to enact before it ad- journs in July for the Demo- cratic and Republican presiden- tial nominating conventions.

The Labor Dept.’s advisory group told Mitchell that an area redevel-. opment measure should give “prior- ity to efforts to revitalize the econ-

than to measures to relocate work- ers.”

- Although relocation might be. in- dicated in “a few remote and small stranded communities,” the report said, if it were applied generally ‘it would lead to “unnecessary losses of invested capital and commu- nity equipment and facilities and . . . heavy financial and social burdens on the individuals trans- ferred.”

The tripartite committee called for enactment of safeguards in depressed areas legislation “to avoid giving assistance to ‘run- away’ plants which, by relocat- ing in a depressed area, would create an unemployment prob- lem in the original location.

In dealing with persistent un- employment, the committee called for government financial support for retraining jobless workers, in- cluding financial aid to the jobless whose unemployment insurance benefits have been exhausted or who are not covered by unemploy- ment assistance, but who are under- going approved training.

Since in some states jobless workers undergoing training may not be eligible for unemployment benefits, the committee stated, it urged that state laws be “amended where necessary so as to avoid claimants being disqualified for ben- efits solely because they are under- going approved training.”

should extend the duration of bene- fits for jobless workers training for new skills, as is now provided in

omies” of depressed areas “rather

More Areas

Massachusetts and Michigan.

Cited for

Heavy Unemployment

The job situation across the nation underwent “slight improve ments” between January and March, the Labor Dept. reported in its bimonthly survey of 149 major areas, but the areas with a “sub- stantial labor surplus” edged upward from 31 to 33,

The “smaller areas of substantial labor surplus” also increased

slightly, from 107 in January to’ 109 in March.

A labor market area is classified in the “substantial labor surplus” category if it has unemployment of 6 percent or over.

The usual “moderate spring pick- up in job totals is anticipated by employers in 90 percent of the na- tion’s principal employment and production centers,” reported the survey, which also takes in employ- er hiring plans.

The report said seasonal ex- pansion in commercial and in- dustrial construction, trade, serv- ice and food processing would lead the job rise, “with hiring in residential building likely to lag behind 1959 levels.”

“Mixed trends” were seen for the durable goods industries to mid- May. The durable goods job out- look is keyed to the auto industry, the report noted. A late winter sur- vey of auto centers revealed “un- certainty” as new car sales lagged behind industry expectations, the report went on.

Auto Hiring Uncertain

The Labor Dept. said overtime work and second shift operations were being curtailed in a number of auto centers in recent weeks, with some layoffs reported in other cen- ters.

The department went on to say that while auto job totals set for

and the Portland Oregonian.

mid-May did not seem “significantly

different” from mid-March, “a number of areas” indicated a fur ther weakening in demand might alter hiring plans.

The “unsettled outlook” in autos apparently is being felt in steel, the department added, where major producing centers reported cut backs in orders and output sched ules from earlier peaks. Steel jobs were expected to stabilize at cur- rent levels, it said.

Some Gains Seen The report said job gains were anticipated in electrical and nom electrical machinery, fabricated metals, ordnance and instruments,

The Labor Department said employers in most major manu- facturing centers reported short ages of skilled workers. Areas like Chicago, St. Louis, Phila delphia, Baltimore and New Haven, Conn., were reported short of such highly-skilled work- ers as tool and die makers, m* chinists, machine tool operators and other metal workers.

In a few areas, skill shortages appeared to hold up hiring of pro duction workers, the report said.

Of the 33 areas with a “substair tial labor surplus,” 25 were i@ Group D, with 6 to 8.9 percent jobless; four in Group E, with 9

F, with 12 percent and over uneir ployed.

The report added that states

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