Formula Smashed?

The U.S. Government has already allowed wages in special cases in the building trades to soar far above the limits set by the "Little Steel" formula--the line which the Administration is trying to hold in its war against inflation.

This significant fact came to light this week when the New York Times's grey, able labor correspondent, Louis Stark, checked up on recent decisions of the Wage Adjustment Board of the Building Construction Industry, headed by Daniel W. Tracy, Assistant Secretary of Labor and longtime boss of A.F. of L.'s electrical workers union. Stark found that the Board in some cases has allowed wages to advance by more than 60% over their Jan. 1, 1941 levels. Under the Little Steel formula they could rise only 15%.

The Little Steel formula was devised by the War Labor Board, headed by William Hammatt Davis. The Wage Adjustment Board, an older institution within the Department of Labor, is composed of representatives of the Army, Navy, Maritime Commission and the A.F. of L. building trades. In theory it is subject to the War Labor Board. In fact it puts new wage rates into effect--then asks Mr. Davis for a rubber-stamp approval.

Examples: the Wage Adjustment Board has boosted the pay of workers on a Navy contract in Brevard County, Fla. from 30 to 50-c---an increase of 66.6%. It has advanced the pay of glaziers at the Oklahoma City aircraft assembly plant from 90-c- to $1.25 per hour--an increase of 38.9% WLB argues that such increases were contemplated when the War Labor Board was set up, that the Little Steel formula was not meant to be a rigid standard. But unveiling the huge building-trade wage raises put WLB and the Administration on the spot. The New Deal still seemed to have no real labor policy.

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