National Affairs: C. I. O. Prevails

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C. I. O. last week realized a big dividend on its policy of political cooperation with the Roosevelt Administration. Under the Walsh-Healey Act of 1936, anyone Adding on Government orders above $10,000 must pay the prevailing wage in his locality as determined by the Secretary of Labor.

When the question of prevailing wages was raised for steel, Secretary Frances Perkins' Public Contracts Board recommended hourly wage minima of 45¢ in the South, 62½¢ elsewhere. Independent companies kicked up a great row; U. S. Steel, already paying as much or more, was contentedly silent. Last week, Assistant Secretary of Labor Charles V. McLaughlin finally set the scale for the industry: 45¢ in 13 Southern States, 58½¢ in seven Midwestern States, 60¢ in eleven Western States, 62½¢ in the East.

In effect the order did C. I. O. two great favors: 1) guarded against wage slashes which might otherwise follow the wholesale price cuts precipitated last year by unionized U, S. Steel; 2) turned competitive heat upon non-union Little Steel companies, wiping out some of their economic reasons for refusing to sign with C. I. 0.

No company is obliged to pay Mr. McLaughlin's minima, but all who want a share of the Government's steel orders above $10,000—amounting to $63,000,000 last year—will have to comply.