Mr. J. M. FOSTER, [Copy] NOVEMBER 16, 1937. Assistant Manager, John Morrell & Co., Sioux Falls, South Dakota. DEAR MR. FOSTER: This will acknowledge yours of November 11. There is very little specific information of the character desired by you. The principal facts which have developed and which may be of general interest are (1) The failure in "little steel" and (2) The political failure of C. I. O. in Detroit, Akron, Canton and other cities. (The New York City Labor Party vote for La Guardia was not C. I. O. but was largely supported by the A. F. of L.) Both of these developments are so well known and of such recent occurrence that they need little attention. You may possibly be interested in the enclosed memorandum on the aims and objectives of the C. I. O. Very truly yours, NOEL SARGENT, Secretary. EXHIBIT 5452 CORRESPONDENCE WITH N. I. C. AFFILIATES THE MANUFACTURERS ASSOCIATION OF CONNECTICUT, INC. Posting of Labor Provisions of Codes. Mr. JOHN C. GALL, JULY 26, 1934. [Dictated July 25.] Associate Counsel, National Association of Manufacturers, Investment Building, Washington, D. C. MY DEAR MR. GALL: Thank you very much for the information contained in your wire of July 24 in regard to decisions of the National Labor Relations Board. As we predicted last February, the posting of labor provisions and other information pertaining to codes has caused considerable unrest which is resulting in strikes and threatened strikes. Not only are the provisions misinterpreted by the usual "wise guy" in every group of employes, but the posting of the provisions in regard to filing of complaints and handicapped workers is causing no end of difficulty. I have wondered whether or not you feel that if we went after the situation hard enough, we could secure a substitute order providing for making available to the employes a copy or copies of each entire code. The Manufacturers Association of Conn., Inc., Hartford, Conn. DEAR MR. EYANSON: Undoubtedly the posting of labor provisions has led to considerable labor trouble as stated in your letter of July 26, 1934. We do not believe, however, that it would be at all possible to secure any change in this requirement which would impose any burden on employees in ascertaining the labor provisions under which they are working. Yours very truly, RSS: fl. EXHIBIT 5453 OUTSIDE UNIONS NOT TO BE RECOMMENDED Mr. F. V. BISTRUP, OCTOBER 26, 1934. Associated Industries of Massachusetts, 900 Park Square Building, Boston, Massachusetts. DEAR MR. BISTRUP: I have carefully read over the tentative memorandum on employer-employee relations prepared by your group. On the whole I find it excellent. I have only a few minor suggestions to make as follows: (1) In the second paragraph on page 2 you refer to "consistently consulting supervisors and workers in matters affecting workers." It seems to me that the word "consulting" in this connection is not quite accurate. There are some matters affecting workers and supervisors in which you wish to consult them and other matters on which you wish to keep them advised. For example, the manufacture of a new product, or the discontinuance of an old line, or the obtaining of certain orders are matters which affect workers upon which management should not, in my opinion, "consult" them. (2) On page 3 in the seventh paragraph there might be a question on the part of some people as to giving supervisors and workers an opportunity to assist in developing a company or management policy. The management must accept the full responsibility for its policies. I think we should go no farther than saying as you do that the active cooperation of supervisors and workers in the practice of any policy should be encouraged, that their recommendations should be solicited, but that then the management must determine from the standpoint of the welfare of all groups, investors as well as workers, what the policies should be and take the responsibility for success or failure. (3) At the bottom of page three you state that the policies should apply uniformly to all workers including office workers. It seems to me that this is a pretty strong statement to make. My own observation is that such a policy may work well in some companies and not be advisable at all in others. You make, however, a uniform recommendation. It seems to me that it is much better than to reply to the problem as you do in the list of questions. (4) On page 4 I don't like the use of the word "consumer" in the heading or the following paragraph. It seems to me that "practice" or "operation" are both better suited for the purpose. The word "enforcement" implies something arbitrary and rigid, and particularly today to many employers and employees has for various reasons obnoxious meanings. (5) In paragraph three on page four you state that group relations "when requested by the workers" are available. It seems to me a more proper approach is to consider "group relations when requested by either employer or employees and developed in a form mutually agreeable to both are available." (6) In the second paragraph under your Section 3 on page four you state that "any of them will function satisfactorily." It seems to me that this is a rather strong statement, particularly with reference to the "ouside federated unions." Even if the attitude is right yet these unions may have rules which bind their members which will prevent satisfactory relations. Very truly yours, NOEL SARGENT, Secretary. Mr. WALTER B. WEISENBURGER, Exec. Vice Pres., National Association of Manufacturers, 11 West 42nd Street, New York, N. Y. DEAR WALTER: I wish to report to you concerning the Executive Committee meeting of the Associated Industries of Massachusetts inspired by your N. I. C. meeting last Wednesday at the Waldorf Astoria, and which we held two days later at the University Club in Boston. Mr. Harry Gould, Assistant to Vice President at the Bethlehem Shipbuilding Corporation, was chairman of the meeting and it took the form of a panel discussion on industrial relations and employer-employee plans in operation in our Massachusetts plants. There were ten speakers to explain their own plans and labor relations from the following representative plants: Du Pont de Nemours Company at Leominster Bethlehem Shipbuilding Corporation at Quincy American Writing Paper at Holyoke Plymouth Cordage Company at Plymouth General Electric at West Lynn Pacific Mills at Lawrence Bird & Sons, Inc. at Walpole Murray Printing Company at Cambridge Package Machinery_Company at Springfield Graton & Knight Company at Worcester Each speaker was given 15 minutes to touch on the highlights of success in handling labor relations in the above plants, and as many plans as there were plants were described; but generally speaking, the following basic principles were accepted. I give them without detail and without any order or sequence. 1. Generally speaking, the problem of 1937 is to clean house within your own industry and at the same time to educate the community in its inter-dependence with industrial prosperity. Industry, both inside the plant and outside the plant, is on the defensive, and public expression, community meetings, plant inspections, and community get-togethers with better press relations are all recommendations. The house in on fire now and it is too late to study up fire laws. Labor relations are human relations and the employee is a human being. He responds to the same emotions, restrictions and encouragements that the employer responds to. Many employee organizations represent this principle. A management genuinely interested in its employees has already the following: a. benefit associations; b. personnel department; c. credit union; d. suggestion systems; e. bonus payments; f. distribution of company policies in print; g. athletic and social clubs. In amplification of the last subject Roe S. Clark, Treasurer of the Package Machinery Company of Springfield, expounded one of the most elaborate employee plans in existence anywhere in the country. Their fundamental plan is to make the employee profit conscious, with the following planks : 1. Profit sharing plan known as compensation warrants issued for each year of service, which has the earning basis of two shares of stock 1 Cf. exhibits 5447 and 5512. plus $100 of free insurance. This "compensation warrant plan" is being copied all around the country. 2. Same plan in effect for salesmen as well as employees. 3. Production bonus for getting production out ahead of schedule of quota. 4. Standards bonus for similar excellence of workmanship. 5. Group insurance plan, both contributory and non-contributory. 6. Elaborate vacation plan whereby employees get two weeks vacation with pay whenever the common stock has earned $2 or more, one week vacation with pay whenever the common stock has earned $1, or if less, vacation with pay the option of management. 7. New wage bonus plan, 1% on wages according to quarterly earnings. 8. Management bonus is similarly paid, but in stock. 9. Aid program in case of sickness or injury. 10. Service clubs for betterance wherein the company buys the service pins but employees run the clubs. 11. Social clubs. 12. Athletic clubs. 13. Inter-departmental athletic clubs and other incentives. By this elaborate employee plan this company has more than 25 per cent of its employees as stockholders and the perfect cushion against outside labor troubles. 2. The subject of supervision of company plans varied much in every discussion, the best recommendation being that all supervisory officials are their own personnel managers-every supervisor an industrial relations manager for the management. Du Pont and other large organizations expect every separate department to carry its own industrial relations because it is closest to the problem of those particular employees. 3. Employee loyalty. One large corporation has featured the employment of fathers, sons, and grandsons in the same family to stress the loyalty of the management to its workmen, and vice versa. They report one family name with 37 branches, all on the payroll of this corporation. Encouraging relatives into the plant makes a family loyalty of labor, and it is very difficult to get outside organizers past such loyalty. 4. Employee representation. One of the companies has a perfectly functioning employee representation plan where the representatives know they can take up any matter with the employer. Here the employee groups are made the educational force for the whole plant, and in the case of Social Security they were given regular meeting times to explain the benefits and costs of social security. Where employee representation plans and groups are in effect as bumpers against outside organizers, the question is frequently brought up: what does the Union, the C. I. O. or the organizer offer that our company does not? Most employees would prefer to stay loyal to their employers if given half an opportunity, as they have friends at the benches and favors from the various industrial relations benefits. Out of all the discussion five or six concrete recommendations stood out and are now being made a part of our regular program of the A. I. M. A. To adopt your N. A. M. principle No. 7 to educate the community on better understanding of our industries. In the next 4 weeks the Associated Industries of Massachusetts will hold 40 to 50 community meetings addressed by our leading industrialists and members of the Executive Committee, on the fundamentals of industry and community interdependence. B. Open house in various factories throughout the state will be instituted in March and April for two effects-(1) to let the employees' families come in the plant during its operation and see where their fathers and brothers work, so when the old man comes home at night the family have a better understanding of his problems, and (2) to bring in the outside leaders of the community, not overlooking the clergy, and educate them on the healthy and happy relations inside factory walls. C. Separate educational program for the clergy. Many of our mill towns have radical priests and ministers who work untold hardships in the foreign speaking groups. Industry should take these in hand and give them the facts about our workmen and the humane treatment thereof. D. Educate the educators-we were appalled to see clippings in the local papers that New England college professors are supporting and helping the C. I. O., and these various college groups of Massachusetts will be invited to visit industries and study their importance in the Massachusetts picture. E. Revive employee publications and house organs (already underway by our staff) and then see that these employee papers are delivered home and not depend on the workers to take them home. The families of the working men are as important as the workmen themselves. DEAR MR. DODGE: At our Chicago meeting interest ran highest and discussion was most lively on the labor situation. During the limited period of time available, it was, of course, impossible to consider all angles involved. Yet, the seriousness of the situation today not only warrants, but requires that we keep abreast of all pertinent developments in this field. The present industrial unrest and labor strife are spread over such a wide front that in order to secure a complete coverage of all activities along this line, information concerning this problem should be gathered, compiled, analyzed and coordinated in one place, so that it can be transmitted and disseminated in the most effective manner. You realize, of course, that it is physically impossible for anyone in a particular locality to keep in touch with all of these developments except in certain instances where the situation is of such a magnitude that it becomes of nation-wide interest. Business is continually chastized for its mistakes. Labor making quite as many, if not more, has never had its missteps focused on the public mind. Believing that a record of these malpractices of labor are exceedingly valuable to have, we are asking your cooperation in collecting such material. We want instances of labor union irresponsibility, collusive agreements with groups of employers, violence, intimidation, union finances, racketeering, restriction of output and kindred matters. Not only give me what you have on hand, or what has happened, but please keep in mind the desirability of having this record kept up-to-date. The country-wide symposium which we proposed to make of these bad practices of labor will be available to you when completed. Sincerely yours, WALTER B. WEISENBURGER, |