1 1/ UNITED STATES DEPARTMENT OF LABOR Frances Perkins, Secretary DIVISION OF LABOR STANDARDS Verne A. Zimmer, Director Reports of Committees and Resolutions Adopted by- Third National Conference on Labor Legislation November 9, 10, and 11, 1936 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1936 CONTENTS Reports of Conference Committees — as adopted: p aB0 Committee on Industrial Health and Safety 1 Committee on Workmen's Compensation 3 Committee on Hours of Labor 5 Committee on Minimum Wage 7 Committee on Child Labor Standards 9 Committee on Apprentice Training H Committee on Unemployment Compensation and Em- ployment Service 12 Committee on Regulation of Private Employment Agencies. 1 6 Committee on Housing 19 Committee on Vacations with Pay 23 Committee on Cooperation between State and Federal Departments of Labor 24 Committee on Resolutions 25 Reports of Continuing Committees — as adopted: The Secretary's Advisory Committee on National and State Labor Department Problems 30 Committee on Powers and Duties of State Labor Depart- ments 32 Committee on Wage Payment and Wage Collection 33 Committee on Industrial Home work 36 in Digitized by the Internet Archive in 2012 with funding from University of Florida, George A. Smathers Libraries with support from LYRASIS and the Sloan Foundation http://www.archive.org/details/reportsofcom01936unit REPORTS OF CONFERENCE COMMITTEES REPORT OF THE COMMITTEE ON INDUSTRIAL HEALTH AND SAFETY— as adopted The committee 'endorses the recommendations on industrial safety and health adopted at the Second National Conference held at Ashe- ville in October 1935, and in addition or amplification of those standards makes further recommendations as follows: Industrial codes or rules, having the force and effect of law, have proven more effective and are deemed more practicable than statute enactments, and we recommend that the State departments admin- istering the labor laws be authorized to adopt such rules or regu- lations, in conformance with generally accepted standards, and with the advice of technicians and of employer and employee representa- tives. We recommend that special studies of health hazards be made under the auspices of the labor departments and assisted in every possible way by the United States Department of Labor. This committee is impressed with the important work already accomplished by many State labor departments through the develop- ment and promulgation of safety and other codes for the protec- tion of the wage earners. The committee recommends that the ap- propriate officials in every State reexamine the possibilities of strengthening their laws and procedure for the sound development of this vitally essential administrative practice. In order to further the cause of health and safety in industry nationally, and to promote a better knowledge of practical methods for eliminating industrial hazards to life, we recommend and urge that the Federal Government, through the United States Depart- ment of Labor, establish a safety laboratory in "Washington, and that so far as practicable the benefits of such a laboratory be made available to the several States through traveling exhibits. -Recognizing that a reduction of industrial health and accident disabilities requires a constant program of education under compe- tent direction, we recommend that the labor departments of the several States, or those State agencies having the responsibility for the enforcement of labor laws and regulations, develop adequate safety educational programs in cooperation and collaboration with employers and employees. As a major and basic factor in reduction of industrial accidents and health casualties, the committee recommends the obligatory 2 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION reporting of industrial injuries and diseases to the State agency charged with the enforcement of labor laws. The committee recom- mends that all States that have not yet adopted the standard sched- ules for industrial accident reports be urged to do so at an early date. The committee further recommends that this conference urge the early completion of the undertaking to standardize the method of classifying causes of accidents, in order that experience may be comparable in the several jurisdictions. Believing that the State departments enforcing safety and health laws and regulations, and having the duty to promote safety in every proper way, should have the fullest possible information and data, the committee recommends State laws requiring casualty companies to file with the labor departments copies of all reports of inspections as to health and safety hazards, including elevators, boilers, and factory equipment and conditions. The committee recommends that the Third National Conference commend the Secretary of Labor for her constructive move in calling a National Silicosis Conference and urges that the results be given to State commissions and labor groups at the earliest possible moment. Generally throughout the country legislation for protection against occupational disease has lagged behind accident prevention, both in respect to workmen's compensation and health regulations. Eecent recognition of industrial health hazards, and their constant develop- ment in new processes, make it essential that special facilities for their detection and control be given to the labor law or other enforce- ment agencies in the States. The committee recommends that Fed- eral grants under the Social Security Act be utilized to the fullest extent in setting up industrial hygiene services in the States, and that such units should be directly in the departments charged with en- forcement of laws for the protection of industrial workers, or in any event, shall be available in all instances to the administrator of such laws and for Avorkmen's compensation adjudication. The committee, recognizing that the health and safety of millions of industrial workers depend in great measure not only upon the laws and regulations in the several States, but more particularly upon the competency of the factory inspectors who enforce them, this com- mittee recommends that States not having civil-service laws enact them as soon as possible, and that meanwhile the personnel for fac- tory inspection be selected by some practicable merit test. The com- mittee commends the United States Department of Labor for its development of factory inspection manuals and for sponsoring a course of instruction for inspectors in collaboration with the States. The committee further recommends the extension and continuance of the plan, and if possible its utilization in furthering the selection, THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 3 training, and retention of competent inspectors in the States not having adequate civil-service merit systems in operation. Due to the constant development of new problems in the control of industrial health hazards, as well as in administrative problems, a standing committee should consider these subjects during the interim and report to the next conference, and we recommend the appoint- ment of such committee by the Secretary. Chairman: Voyta Wrabetz, Chairman, Industrial Commission, Wisconsin. A. L. Fletcher, Commissioner, Department of Labor, North Carolina. Frank Wade, Commissioner of Labor, Michigan. E. I. McKinley, Commissioner, Bureau of Labor and Statistics, Arkansas. John B. Andrews, Secretary, American Association for Labor Legislation, New York. David Fowler, President, District 21, United Mine Workers of America, Oklahoma. L. H. Jones, President, State Federation of Labor, Mississippi. Ray Edmonson, President, District 12, United Mine Workers of America, Illinois. John J. Egan, Secretary, State Federation of Labor, Connecticut. James Wilson, International Labor Office, Geneva, Switzerland. J. A. Henry, Secretary-Treasurer, State Conference of Stonecutters, Ohio. John F. Woods, Jr., Acting Chief Factory Inspector, Department of Labor, West Virginia. Ethel M. Johnson, International Labor Office, Washington, D. C. Dr. M. G. Lloyd, National Bureau of Standards, Washington, D. C. Verne A. Zimmer, Director, Division of Labor Standards, United States Department of Labor. REPORT OF THE COMMITTEE ON WORKMEN'S COMPENSATION— as adopted The committee made the following recommendations : 1. C Compensation. — Compulsory, with elective coverage for agri- cultural workers and domestic servants. 2. Administration. — Commission, not court. The cost of administration should be defrayed out of premium income. 3. Insurance. — Exclusive State insurance fund. Severe penalties on employers not complying with insurance re- quirements desirable. 4. Coverage. — All industries and all employees, including State and municipal. No exemptions of small employers or nonhazardous industries. The right of the emploj^ee to waive compensation pro- hibited. Extraterritorial workers to be included. In this connec- tion, reciprocity and cooperation between States is very desirable. All employees excluded from State jurisdictions by reason of being 4 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION subject to Federal jurisdiction to be covered by a Federal workmen's compensation law. 5. Injuries. — Define injuries to include occupational diseases. "Blanket" coverage on occupational diseases rather than "schedule" coverage. 6. Waiting period. — Not more than 7 days, nor less than 3. Retro- active after 14 days to date of injury. 7. Medical service. — Unlimited medical and hospital service with- out cost to injured employees. Choice of physician by employee. 8. Percentage. — For nonfatal cases, not less than 66% percent of the injured employee's wage. In case of death, 35 percent for widow without children, plus 15 percent for each child, the total not to exceed the percentage for permanent total disability. 9. 'Weekly inasximum and minimum compensation. — Maximum should recognize the rights of the higher-paid workers to a standard of living above the subsistence level, and minimum should be not less than the subsistence level, maintenance of standards of benefits in case of permanent disability or death to be unaffected by abnormally depressed employment or wage conditions. The wage basis should be a normal full-time week. 10. Compensation period. — Fatal cases : Benefits until death of widow or remarriage, in which case not less than 2 years' compensation at time of remarriage; chil- dren, to 18 years or thereafter, if physically incapacitated or mentally retarded. Permanent total disability : During life. Temporary total disability: During disability. Permanent partial disability : Compensation shall be calculated on the basis of a percentage of permanent total disability and shall be payable in addition to compensation for healing period (i. e., tempo- rary disability). For administrative simplicity, there should be a schedule of permanent partial disability benefits based upon the fore- going principle. 11. Second injuries (e. g., loss of second eye). — Employer to be charged as though for first injury, and balance to be paid out of special-injury fund, both amounts not to exceed permanent total dis- ability. 12. Second-injury fund and rehabilitation fund. — To be secured from death benefit where there are no dependents, and from pay- ments in first major injury cases. 13. Minors. — At least double compensation for minors illegally em- ployed. Expected future increase of earnings of minors to be taken into consideration in fixing the compensation rates for permanent injuries or death. The employer to be charged with primary liability for T1IIKI) NATIONAL CON I'KUKNC'K ON LABOR L KOI STATION 5 additional compensation. Approval by a competent State authority of the expenditures of compensation granted 1" minors to assure t he most desirable rehabilitation and education of the injured minor. 14. Commutation, — Workmen's compensation being in lieu of Losfi of earning capacity, payments shall be made in installments. Com- mutation of workmen's compensal ion si mil In- approved only for good cause shown with proper safeguards as to the use of the funds so commuted, with the besi interests of the workman or Ins dependents in case of death being the primary consideration. 15. Insurance coverage guaranty. — That the problem arising from insolvency of insurance carriers and self-insurers be solved by re- quiring positive and adequate safeguards for the guaranteeing of the payment of compensation to all injured employees. 16. Accident prevention y «een done by the Social Security Board and its fine spirit of cooperation, but in view of the necessity of close coordination between the ac- tivities of the United States Employment Service and the adminis- tration of the unemployment-compensation titles of the Social Security Act we recommend and urge that the administration of the unemployment-compensation titles of that act be made an integral part of the United States Department of Labor. We recommend a continuing committee to study the subject of how unemployment-compensation benefits can be made more adequate. Chairman, Alex E. Gordon, Secretary. Federated Labor Publishing Associa- tion, Indiana. W. H. Young, Chairman, Industrial Commission, Colorado. L. L. Wheeless, Chairman, Unemployment Compensation Commission, Mississippi. M. L. Lyden, President, State Federation of Labor, Ohio. Grace Abbott, School of Social Service. University of Chicago, Illinois. Prudencio Martinez. Commissioner of Labor. Puerto Rico. John Hopkins Hall. Commissioner, Department of Labor ami Industry, Virginia. Frank E. Wenig, Commissioner of Labor, Iowa. Paul U. Kellogg, Survey Associates, New York. 16 THIED NATIONAL CONFERENCE ON LABOR LEGISLATION Gordon R. Wagenet, Director, Bureau of Unemployment Compensation, Social Security Board. B. G. Soderstrom, President, State Federation of Labor, Illinois. Alice Norwood Spearman, Works Progress Administration, South Carolina. Peter Campbell, Secretary, State Federation of Labor, Kentucky. W. Frank Persons, Director, United States Employment Service, United States Department of Labor. Isador Lubin, Commissioner of Labor Statistics, United States Department of Labor. Charles L. Hodge, Division of Labor Standards, United States Department of Labor. REPORT OF COMMITTEE ON REGULATION OF PRIVATE EMPLOYMENT AGENCIES— as adopted The evils present in the operation of private employment agencies have been the subject of study and investigation over a period of years, and are well known to persons associated with the administra- tion of labor laws. Among the most common practices which make the regulation of fee-charging agencies desirable are misrepresenta- tion of jobs, collections of fees when no employment is furnished, charging of exorbitant fees, fee splitting, and the sending of workers across State lines, only to be left stranded, penniless, and jobless. That the licensing and regulation of private employment agencies is a matter within the proper concern of the State is settled. The com- mittee has endeavored to evolve a number of standards which it feels are desirable in a law to license and control private employment agencies. These standards are not recommended with the thought that they include all desirable features of a definitive or model bill. Rather the committee has endeavored to ascertain those provisions which may be applicable generally without regard to any peculiar local conditions which may require specific treatment. A bill to regulate private employment offices should apply to all fee-charging agencies, and should be State-wide in its application. The law should be administered by the State department of labor. The commissioner of labor should be given well-defined but broad rule-making power to insure the effective administration of the law. Both the employment agencies and their individual employees should be licensed. Licensing of the agencies should be on an annual basis with a fee sufficiently large to keep out financially irresponsible persons, and also to provide adequate amounts sufficient for the ad- ministration of the law. The committee feels that in no case should such fee be less than $25 and that it is highly desirable that it be fixed at a much higher rate. Licenses of placement clerks should be granted for an indefinite period, to terminate only upon revocation or upon the placement clerk leaving the employ of the agency. The fee should be a nominal amount. THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 17 The committee feels that it is necessary thai the bill provide for the bonding of employment agents in such a way as to insure the full protection of the workers. The department of labor should be authorized to approve the form of the bond, and -1 1() days from the date of the receipt for the fee. Under present State laws, a bonding company may refuse to pay any claims against a bond until the statute of limitations has run which usually requires at least 5 years. The bond should be conditioned for the return of fees and for the payment by the em- ployment agent of damages to any person having a just claim against him. The amount of the bond should be graduated with a minimum of $1,000 and a maximum to be set at least as high as $3,000, the scale being based upon the geographic location and the number of agency employees or some other measure of the volume of business. Before any license is issued to an agency a careful investigation of both the suitability of the premises and the character and repu- tation of the employment agent should be required. A similar inves- tigation should be required of the character of placement clerks be- fore the issuance of a license. The commissioner should be given the power to suspend and revoke licenses for cause. Both by the provisions of the bill and under the rule-making power granted to the commissioner, there should be prohibited the various acts which have been found by experience to constitute evil practices. The bill should set forth the most common of these practices with authority in the commissioner to enlarge the field of the prohibitions. The following should be prohibited: Fee splitting, false advertising and false representation, placement of women and minors in specified prohibited kinds of work, operating of employment agencies in rooms used for living purposes, operation by licensees of lodging houses or labor camps, sending of workers to plants on strike without notifi- cation thereof, and the making of placements in violation of other State labor laws. The bill should also regulate certain practices in connection with the charging of fees. ^Registration fees should be prohibited except that some States may desire to allow agencies placing teachers and professional workers to charge registration fees upon the securing of a permit to do so from the department of labor. Fees should be charged only on the basis of cash wages received from placements directly resulting from the employment agencies' activities. The assignment of wages, the execution of notes authorizing the confes- sion of judgment, and the giving of powers of attorney to the agency should be prohibited. Also, the agent should be required to file with the commissioner and to post the schedule of fees to be charged, and 18 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION should be prohibited from charging or receiving any fees not speci- fied therein or in excess of such schedule. The employment agency should be required to file with the com- missioner, for his approval, copies of all forms, blanks, and contracts to be used by such agency. A receipt in a form to be prescribed by the commissioner of labor should be required to be given in every case where a fee is paid. The receipt should include a statement of the office at which a worker may register any complaint, the time for filing such claims against the bond, and any other information which the commissioner may deem desirable. The committee has not attempted to make recommendations as to the administrative features and enforcement powers of such a bill. However, it is pointed out that in adopting any such bill for use in a particular State care should be taken to see that the commissioner has the necessary investigational and inquisitorial powers, and that there are provisions requiring the keeping of records, etc. The committee also desires to raise for discussion the question as to whether or not this conference feels that such a bill should at- tempt to regulate and control schools which advertise a placement service as an inducement to enrollment therein. The committee recommends that the continuing committee on the regulation of private employment agencies, heretofore appointed by the Secretary, shall in cooperation with the United States Depart- ment of Labor, draft a bill containing suggested language covering the points above mentioned, and that a study be made of existing State laws to determine those provisions which have been found most desirable in practice. It is felt that such a bill should be drafted so as to be generally applicable to any State, with the understanding that changes may be made and additional provisions may be in- serted as found necessary to meet the needs of the local situation. It is also recommended that the committee, after drafting the bill for State use, should turn its attention to the problem of drafting a Federal bill for the control of agencies making interstate place- ments. Chairman: Martin Cannon, Deputy Inspector, Division of Private Employ- ment Agencies, Department of Labor, Illinois. Harry R. McLogan, Commissioner, Industrial Commission, Wisconsin. Morgan R. Mooney, Deputy Commissioner of Labor, Department of Labor and Factory Inspection, Connecticut. James Fitzgerald, Commissioner of Labor, Nevada. Henry D. Sayer, Industrial and Workmen's Compensation Service, New York. David Y. Campbell, Division of Labor Standards, United States Department of Labor. THIRD NATIONAL CONFERENCE ON LABOB LEGISLATION 19 REPORT OF COMMITTEE ON HOUSING— as adopted The formulation of an adequate and comprehensive housing pro- gram is an immediate public responsibility. The acute housing shortage now rapidly developing throughoul the country is sub- jecting low-income families to especial hardships, and makee the provision of new dwellings for them an urgent necessity. The housing problem is concerned with the provision of aii ade- quate supply of decent modern shelter, well located in relation to employment and community facilities, protected from blight, prop- erly designed for the families which are to use it. and available at prices within the means of these families. The housing problem also includes the reclamation of slums and blighted areas, hot h urban and rural, and the safeguarding of undeveloped areas in the suburbs of our cities from spoliation by uncontrolled and unplanned jerry-building. The increase and proper distribution of the national income would solve a major portion of the housing problem. However, a sound housing program will itself greatly aid in increasing the national income through the provision of employment in the construction, building material, and allied industries, and through the elimina- tion of the great wastes now incurred in speculative subdivision and building. The solution of the housing problem demands bold and coura- geous policies on the part of governments, both local. State and Federal. The programs adopted must be broadly conceived and have permanent and continuing foundations. It is impossible to cope with the long-term problems of housing on a temporary and emergency basis. Planning and control of hind used and housing. — The planning of city growth and the control and stabilization of neighborhoods are essential both for economical housing and livable cities. The responsibility for planning future developments and the reclama- tion of slums and blighted areas must rest primarily with municipal and county authorities. In every city a planning commission should be established which will boldly envision the best possible uses of all the land areas both in the city and in its adjoining suburbs. Such planning must go far beyond the safeguarding of existing realty values and the mere provision of streets, utilities, and parks for the amelioration of present bad land uses. Zoning must be made an effective weapon to guide growth and protect neighborhood- rather than to legitimatize present speculative values. It is possible that the increasing public ownership of land, either by municipalities or housing authorities, will be found to be the most realistic solution of the problem of planning and control. Such tracts of publicly owned land could either be developed with 20 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION public housing for low-income groups or rented on long-term lease for building under proper control by private enterprise or coopera- tive groups. Public acquisition, making use of the powers of emi- nent domain, seems the most promising solution for the reclamation of blighted areas and slums. State legislation will be necessary to strengthen the planning and zoning powers of municipalities, and to extend these powers beyond the city limits so as to cover entire metropolitan areas. State legisla- tion will also be necessary to enable municipalities and counties to acquire and develop land either directly or through housing authori- ties. The power of condemnation for housing as a public purpose (which has recently been upheld in the highest court of the State of New York) must be delegated to municipalities and local housing authorities. The Federal Government must actively and courageously promote research and thought on the problems of planning and control. It must be prepared to give advice and counsel and lend experts to local authorities requesting such aid. Above all it must insist when it extends financial aid through the insurance or guarantee of mort- gages, or through loans or grants, that proper planning and control be a condition precedent to such aid. Financial aid and public housing. — The residential building indus- try as presently organized is a speculative business looking to quick turn-over and immediate profits rather than long-term investment. We cannot get good housing for workers by continuing this industry's practice of building most of our new houses for the wealthy and well-to-do, while handing down obsolete and dilapidated houses to lower-income groups. Our greatest need is for new houses built directly for workers, in neighborhoods convenient to employment and protected from blight, and designed especially for low-income families. Through better building practices and with lower interest rates based on long-term investment in stabilized neighborhoods, private enterprise could extend its field of operations to lower-income groups than those which it now serves. If the Federal insurance of private mortgages through the F. H. A. is to be continued increased emphasis should be placed on reducing financing charges and interest rates, and on avoiding any underwriting of speculative values. A still further extension of housing construction for lower-income groups can be obtained by placing public credit or governmental loans at low-interest rates at the disposal of limited dividend com- panies or cooperative groups. It must, however, be frankly realized that families in the lowest third of the income range cannot afford to pay the full economic cost of decent and adequate shelter. For the housing of these groups we must look to public housing aided by governmental subsidy. In the THIRD NATIONAL CONFERENCE ON LABOB LIKUSLATION 21 planning of such housing ii is essential to realize nil possible econo- mies through stable neighborhoods, sound construction and simple planning. Public housing so planned, ami restricted to families which need such aid, will in nowise constitute a threat to private enterprise serving higher-income groups. The initiation, planning, construction, and management of public housing is primarily a function of Local governments, acting either directly or through local housing authorities, and in close cooperation with the State and Federal Governments. The organization of local instrumentalities, adequately financed, properly staffed with techni- cal experts, and with the power to acquire land through condemnation and to incur financial obligations, is urgently necessary. Further State legislation is needed to authorize public housing by local governments, and to regulate and supervise their activities in this field. In States with sufficient financial resources based on in- come taxation, subsidies should be granted to local authorities. In all States there should be provision for the guaranteeing of h s made by local authorities in order to secure the lowest possible interest rates. Under our present system of taxation we must look to the Federal Government for the major part of the subsidies necessary for public housing. In addition to such grants, whether in lump sums or on an annual basis, the Federal Government should also be in the position to make loans at low interest rates to local authorities or guarantee their mortgage obligations. The Federal Government should also provide expert advice and counsel in connection with the initiation, planning, construction, and management of housing. In all cases where aid is granted by the Federal Government there must be ef- fective control of the planning of neighborhoods in connection with the city and regional plan, and the future use of public housing for the income groups for which it is designed must also be safeguarded. The Wagner bill, which was passed by the Senate at the last ses- sion of the Congress, but which for lack of time failed of passage in the House, provides a sound scheme of Federal aid for public hous- ing on a long-term, permanent basis. The provisions for financing and for Federal demonstration projects should be more liberal than those contained in Senator Wagner's bill as originally introduced in the Senate last year. Provision should also be made for Federal aid in the acquisition of land for housing in advance of immediate needs. It is strongly recommended that legislation of this character be adopted by the next Congress. Labor's interest in housing. — Labor has a vital interest in the hous- ing problem. As producers, labor is concerned with the construction of homes and the manufacture of building materials. As consumers, labor is deeply interested in raising the standards of housing for all families to adequate levels. As citizens, labor has the right to plan beautiful, livable, and healthful communities. 22 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION The workers of the Nation, as they become fully aware of the in- adequacy of our housing and its serious effects on their lives, will increasingly demand decent homes with modern conveniences at prices within their means. Many low-income families are forced to pay upward of 30 percent of their incomes for their present inadequate housing, forcing drastic curtailment of other necessary family ex- penditures and in particular reducing food consumption to starva- tion levels. Labor insists that adequate housing must be available to all families at not more than 20 percent of their incomes. Labor should be accorded prevailing rates of wages on all housing construction. It is a fallacy to assume that the ultimate cost of hous- ing can be reduced by attacks on wage levels. Sound construction with good materials and skilled labor is far cheaper than jerry- building with labor at depressed wages. Intelligent contractors have long since found that it pays better to employ skilled labor at pre- vailing rates rather than less experienced mechanics at lower wages. The principle of prevailing wages embodied in the Davis-Bacon Act for Federal construction, and in the Walsh-Healey Act for Federal purchases should be insisted on in connection with all construction financed through Federal guaranties, loans, or grants, and on all new construction aided through F. H. A. mortgage insurance. Because of the interest of labor in the housing problem it is rec- ommended that the United States Department of Labor be ready to give aid and counsel to labor in the formulation of housing policies and local, State, and Federal legislation. Progress in the solution of the housing problem will be made only in response to the demand of informed public opinion. The Federal Government through its research and studies and through demonstra- tion projects is advancing housing education throughout the country. Labor as a whole must take the leadership in arousing local interest and civic responsibility for a comprehensive and permanent housing program. Chairman : R. S. McCann, President, State Federation of Labor, Tennessee. Claude R. Boland, President, Building Trades Council, South Carolina. Helen Hall, Henry Street Settlement, New York. Elsie D. Harper, National Board, Y. W. C. A., New York. T. Arnold Hill, National Urban League, New York. Spencer Miller, Director, Workers' Education Bureau of America, New York. Oliver Peterson, Workers' Education Division, Works Progress Administra- tion, Washington, D. C. John A. Phillips, President, State Federation of Labor, Pennsylvania. Boris Shishkin, Labor Housing Conference, Washington. D. C. Warren Jay Vinton. Suburban Resettlement Division, Resettlement Admin- istration, Washington, D. C. Bruce Greene, Division of Labor Standards, United States Department of Labor. THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 23 REPORT OF COMMITTEE ON VACATIONS WITH PAY— as adopted The question of vacations with pay has not been considered here- tofore in the United States in any concerted, public fashion. Al- though there lias been a Limited recognition of the need for such provision in private industries and by certain trade unions, no State has Legislation covering this subject. This is not the e ;l se else- where in the world. Some 30 countries have laws under which some groups of workers enjoy the benefits of annual vacations with pay. In many of these countries industry has not developed to such an extent as to bring about the repetition, speed, and monotony which are found in in- dustries in the United States. Especially because of our advanced technological development, it is imperative that we provide for American workers the protection to health and efficiency new guar- anteed by law to many workers throughout the world. Your committee on Vacations with Pay, having considered the draft convention on this subject adopted by the International Labor Conference meeting in Geneva in 1936 with an affirmative vote by all delegates from the United States, recommends that the Third National Conference on Labor Legislation in the United States go on record as endorsing the principles set forth in tins draft conven- tion and the recommendations accompanying it. These principles provide, in brief: 1. That after 1 full year of service every employee shall have a vacation with pay of at least 1 full and continuous working week, with appropriate increases for length of service; 2. That this provision shall apply to as many forms of employ- ment as possible; 3. That the vacation time here specified shall constitute a mini- mum and shall not interfere with any collective agreement now 7 in force or hereafter entered into, or with any private employment policies insofar as these provide for higher standards on this subject. Your committee further recommends that the Secretary of Labor be asked by this conference to continue the committee and instruct it to explore further the possibilities of promoting legislation in this field in the United States and to draft a bill on vacations with pay for the use of States in furthering such legislation. Chairman: Joseph M. Tone. State Labor Commissioner. Connecticut. W. I). Johnson, National Legislative Representative, Order of Railway Con- ductors. Washington, D. C. J. A. Farquharson, National Legislative Representative, Brotherhood of Railroad Trainmen. Washington, D. C. Mary Pidgeon, Women's Bureau, United Slates Department of Labor. Ruth Scandrett, Division of Labor Standards, United States Department of Labor. 24 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION REPORT OF THE COMMITTEE ON COOPERATION BETWEEN STATE AND FEDERAL DEPARTMENTS OF LABOR— as adopted Your Committee on Cooperation between State and Federal De- partments of Labor believes that national and regional conferences of representatives of State departments of labor, organized labor, State federations of labor, and organizations interested in the im- provement of labor standards are an effective stimulant to the im- provement of labor legislation. It is urged that the United States Department of Labor continue to hold such conferences and make suitable arrangements with the Governors of the several States so that all States may be represented. Your committee has reviewed the activities of the Division of Labor Standards which was established in the United States Depart- ment of Labor in accordance with the recommendations of the First National Conference on Labor Legislation. The committee appreci- ates and approves the work done by this Division in holding con- ferences on various phases of labor legislation and administration, in promoting safety and health standards, in helping to train factory inspectors, in consulting and advising State labor departments con- cerning the best methods of administering labor laws, and in pro- viding a bill-drafting service available to the State federations of ]abor and other interested groups which has greatly assisted labor in its efforts to improve working conditions. In order to assure the continuance of these activities, the com- mittee recommends that this conference record itself in favor of the establishment of the Division of Labor Standards as a permanent bureau in the United States Department of Labor with an appropri- ation that will enable it to carry on these and other activities for the purpose of raising labor standards and bringing about a greater degree of uniformity as to basic minimum standards. Your committee recommends that studies be made by the United States Department of Labor of the following problems of particular interest to the States : The problem of discrimination against older workers in industry. The problem of the extent to which gainfully employed workers are not covered by workmen's compensation laws and the consequent competitive advantage, real or alleged, enjoyed by employers. The problem of enforcement of prison-labor legislation. Your committee recommends that the State departments of labor cooperate with the Federal Department of Labor in the enforcement of the Walsh-Healey Act. THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 25 Your committee recommends that the Department of Labor be requested to develop standards for accident reporting, record keep- ing, and general inspection procedure and that the States be urged to adopt these standards. We further recommend that State departments furnish promptly statistics and other information when requested by the United States Department of Labor, with particular reference to the man-hours of exposure in each employment class to the end that the Bureau of Labor Statistics may have accurate data as to the frequency and severity of industrial accidents. Finally we recommend that a copy of the proceedings of this con- ference be sent to the Governors of the various States, their official representatives, secretaries of all national labor organizations, secre- taries of State federations of labor, and secretaries of the transporta- tion brotherhoods. Chairman : Robert J. Watt, Secretary-Treasurer, State Federation of Labor, Massachusetts. Charles H. Gram, Commissioner of Labor, Oregon. Clarence L. Jarrett, Commissioner of Labor, West Virginia. Carl Mullen, President, State Federation of Labor, Indiana. A. Steve Nance, President, State Federation of Labor, Georgia. L. Metcalfe Walling, Director of Labor, Rhode Island. T. E. Cunningham, President, State Federation of Labor, Minnesota. Martin P. Durkin, Director of Labor, Illinois. I. H. Helander, Vice President, State Federation of Labor, South Dakota. O. E. Perry, Secretary, State Federation of Labor, Georgia. Bertha M. Nienburg, Women's Bureau, United States Department of Labor. Sidney W. Wilcox, Bureau of Labor Statistics, United States Department of Labor. Clara M. Beyer, Division of Labor Standards, United States Department of Labor. REPORT OF THE COMMITTEE ON RESOLUTIONS— as adopted Part I. — General Conference Program Resolved, That this conference extend its thanks to the President of the United States for his message of greeting, and for the charge which he has placed upon the delegates to proceed along the lines established by the sessions of the National Conference on Labor Leg- islation in 1934 and 193-5, for assuring working people throughout the Nation and in every State adequate labor standards. Specifically, the President sets before us the goal of assuring decent working con- ditions, including safe and healthful places of work; adequate care and support of workers when incapacitated by reason of accident, industrial disease, unemployment, or old age ; reasonably short work- 26 THIED NATIONAL CONFERENCE ON LABOR LEGISLATION ing hours; adequate annual incomes; proper housing; and elimina- tion of child labor. In undertaking responsibility for State action, we are encouraged by the assurance contained in the President's letter that the Federal Government is willing to do its part in making these standards effective and in supplementing the efforts of the States when problems assume an interstate or a national character. Encouraged by the progress that has been made since the First Conference on Labor Legislation was called in 1934, and impressed with the need for vigorous action to place necessary legislation on the statute books at the coming sessions of Congress and the State legis- latures, the conference pledges itself specifically to the following major objectives, which have been more fully set forth in reports of committees adopted by the conference : 1. State departments of labor. — The conference urges the develop- ment of an adequate foundation for State labor law administration through State labor departments with broad powers and adequate appropriations to perform both fact-finding and administrative func- tions, and to suggest programs of labor legislation. Provision should be made in the budgets of State labor departments for co- operation with the United States Department of Labor in the pro- motion of labor standards through participation in national and regional conferences and in other ways. 2. United /States Department of Labor. — The conference recom- mends adequate appropriations for the United States Department of Labor, and consolidation in this Department of Federal admin- istrative functions involving leadership and cooperation with the States in matters affecting labor. 3. International Labor Office. — The conference urges continuing full participation of the United States) in the work of the Interna- tional Labor Conference and the International Labor Office as essen- tial agencies for raising standards of labor legislation throughout the World, and appropriations by Congress of the full amount re- quired for such participation. 4. Child labor. — The conference urges Federal cooperation with the States in the enforcement and maintenance of a 16-vear minimum for entrance into industry, with special protection against employ- ment in hazardous occupations up to the age of 18 years ; completion of ratification of the child labor amendment, as an essential step in this direction, by the 12 States whose action is still required. 5. Minimum wage. — The conference urges that every effort be made by the States and the Federal Government to develop adequate mandatory minimum-wage laws and endorses the proposal of an THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 27 amendment to the Constitution to permit without question effective 8tate and Federal minimum-wage legislation. 6. Hours. — The conference endorses the 8-hour day and 40-hour week as a maximum standard for all workers. 7. Health and safety. — The conference urges that State depart- ments responsible for the administration of labor laws be clothed with adequate powers and facilities for the promotion of industrial health and safety, and that the United States Department of Labor establish a safety laboratory. 8. Workmen's compensation. — The conference recommends compul- sory coverage of all gainfully employed workers under compensation laws, with exclusive State funds, complete blanket coverage of occu- pational diseases, and the commission (not court) form of adminis- tration. 9. Unemployment compensation and employment services. — The conference urges States and Territories to enact unemployment com- pensation laws which will qualify such States and Territories for Federal aid and tax credits under the Social Security Act, will more broadly and more uniformly cover gainfully employed workers, will stand independently of the Federal act, will not require the worker to contribute, and will be administered by the State agency generally responsible for administering State labor laws. The conference rec- ommends that the administration of the unemployment-compensation provisions of the Social Security Act be made an integral part of the United States Department of Labor. It urges amendment of the Federal act to provide social-security benefits for the workers of Puerto Rico and all other territory comprising the United States of America. The conference recommends completion of the program for a Nation-wide system of Federal- State employment service by means of acceptance of the Wagner-Peyser Act by the five remaining States. It believes that this program should be closely integrated with the State program for unemployment compensation. The conference believes there should be State-wide effective regu- lation of private employment offices under the jurisdiction of the State departments of labor, with Federal legislation for the regula- tion of interstate activities. 10. Industrial home work. — The conference records itself as urging the elimination of industrial home work through the passage of State and Federal legislation with adequate provision for enforcement. 11. Wage payment and ivage collection. — The conference urges leg- islation conferring upon State labor commissioners the power to take assignment of wage claims and to collect and, furthermore, urges the adoption of laws providing for weekly or semimonthly payment of wages by all employers in States that do not yet have them. 28 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION Part II The following resolutions were submitted and adopted : Prevailing wages. — (This resolution was recommended by the com- mittee as a substitute for a resolution submitted by Edward L. Nolan y Labor Commissioner of California.) Whereas the legislatures of many States have enacted into law statutes to provide for the payment of the prevailing rate of wages on public works; and Whereas the Federal Congress has likewise established a policy of maintaining the prevailing rate of wages and in pursuance of that policy enacted into law the Davis-Bacon Act applying to public works and public buildings and included the prevailing rate of wage principle in other public-works statutes ; and Whereas cooperation between these various agencies, both in the determination of the wage rates and in general enforcement, is neces- sary in order to accomplish the purpose of these laws : Therefore be it Resolved, That the Department of Labor make a study as to the methods of administration of these laws and the relationship between Federal and State agencies charged with their administration. State-use system for prison-made goods. — Whereas some States have not yet adopted the principle of restric- tion of production by prison labor to the State-use system; and Whereas this system has been widely advocated in order to keep convict-made goods from undercutting free labor on the open market : Therefore be it Resolved, That this conference urge the States to adopt legislation providing for the State-use system, and that the United States De- partment of Labor compile and distribute information as a basis for such legislation. Poll-tax voting requirement. — Whereas the payment of a poll tax as a prerequisite to voting exists in many States; Whereas this conference is considering and endorsing a broad and progressive program of labor legislation; and Whereas this requirement has the undoubted effect of restricting the labor electorate, thus reducing the popular support upon which progress in labor legislation depends : Be it Resolved, That the conference favors the elimination of such lim- itations as the poll tax upon the right to vote, and, furthermore, that it request the United States Department of Labor to inquire into the extent of such restrictions and ask it to cooperate with the State federations of labor and other groups interested in their elimination. THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 29 Industrial relations. — Be it resolved, that in the interest of industrial peace and the pro- motion of better employer and employee relations, this conference respectfully requests the Secretary of Labor to appoint a committee to investigate ways and means of accomplishing these purposes. It is suggested that the following subjects would be appropriate for this committee to investigate: Collective bargaining; the use of injunc- tions in labor disputes; "yellow dog" contracts; use of strikebreak- ers and labor spies; conciliation and arbitration functions; and re- lated subjects. Chairman: Edward F. Nolan, Labor Commissioner, California. Elizabeth Eastman, National Board, Young Women's Christian Association, Washington, D. C. E. I. McKinley, Commissioner, Bureau of Labor and Statistics, Arkansas. Elizabeth Christman, National Women's Trade Union League, Washington, D. C. Fred E. Gastrow, Executive Board Member, State Federation of Labor, Wisconsin. Katharine Lenroot, Chief, Children's Bureau, United States Department of La bor. Jean A. Flexner, Division of Labor Standards, United States Department of Labor. The following resolution was introduced from the floor, adopted, and signed by the delegates to the Third National Conference on Labor Legislation : We, the delegates to the Third Annual National Conference on Labor Legis- lation, held at Washington, D. C, November 9, 10, and 11, 1936, wish to express cur appreciation of the inspiring and far-visioned leadership of Secretary of Labor Frances Perkins in initiating the policy of holding these national and regional meetings from time to time. Such gatherings have been responsible for direct and substantial gains to millions of wage earners through the enact- ment of a broad program of legislation in the States which has brought about needed and desirable improvement in the working conditions of so many Americans. REPORTS OF CONTINUING COMMITTEES EEPOBT OF THE SECBETABY OP LABOR'S ADVISOEY COMMITTEE ON NATIONAL AND STATE LABOR DEPAETMENT PEOBLEMS— as adopted As a result of a resolution adopted by the Second National Labor Conference, held last year at Asheville, N. C, an advisory commit- tee on National and State Labor Department problems was appointed by the Secretary of Labor. It was suggested at the last conference that such a committee might be of aid to the Secretary in developing close cooperation between the Federal and State labor departments. The committee met in Washington on May 5, 1936, at which time a wide range of subjects were considered and various recommenda- tions made. Among the more important were the suggestions, based upon experience with two earlier national conferences on labor legis- lation, that this year's conference should be held in Washington and should be scheduled for 3 days, instead of 2, in order to allow more time for the formulation and discussion of committee reports. These suggestions have been carried out in the planning of the program for this conference. It was agreed that regional conferences were of real value in stimu- lating interest in improving labor legislation and that further con- ferences of this sort should be called whenever the work of the Department permits it. It was thought advisable to hold the next such conference in Texas to cover the States in the southwestern area. This conference was planned for late September, but the com- mitments of the Secretary made it impossible for her to attend, so it has been postponed until January 1937. The committee received reports of the activities of the special com- mittees engaged in drafting industrial homework legislation and legislation on the subject of wage payment and wage collection in accordance with the instructions of the Asheville Conference, and suggested the appointment of a committee to consider the regulation of private employment agencies, a committee to draw up suggested language for the powers and duties of State labor departments, and a committee to develop a manual for factory inspection that would combine the best procedures of a number of State labor departments. These various committees were appointed and are now functioning. We shall have reports on progress during this conference. 30 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 31 Consideration was given to the results obtained at the factory inspectors' training school, held in Baltimore for 10 days during Feb- ruary, 193G, in which the factory inspectors from four States par- ticipated. All of the labor commissioners present expressed interest in having such an experience made available to their own inspection staffs. It was hoped that the United States Department of Labor might find ways and means to continue the program for the benefit of any States wishing to participate. The need for better clearance of information concerning interesting new developments in State labor departments was discussed, and it was strongly urged that State labor commissioners send in news items and press releases, or any sort of informal account, of their activities to the Division of Labor Standards for possible incorporation in the Survey of Labor Law Administration. The need for additional funds for promoting the Federal appren- tice-training program and the desirability of putting it on a perma- nent basis were discussed. Consideration was given to the place of the State labor depart- ments in the development of the Social Security program. It was generally agreed that the place for unemployment compensation and employment service administration is together, and both belong in the State departments of labor. In addition to the suggestions made at this particular meeting, the various members of the committee have advised with the Division of Labor Standards from time to time as to ways and means of improv- ing service to the States. The committee feels that real progress has been made in bringing about a better understanding between the State labor departments and the Federal Department of Labor during this past year and sincerely hopes that this understanding and coop- erative relationship can be developed still further. Chairman : Wendell C. Heaton, Chairman, Industrial Commission, Florida. Elmer Andrews, Industrial Commissioner, Department of Labor, New York. G. Clay Baker, Chairman, Department of Labor and Industry, Kansas. Martin P. Durkin, Director, Department of Labor, Illinois. George Googe, Southern Representative, American Federation of Labor, Georgia. Carl Mullen, President, State Federation of Labor, Indiana. Rose Schneiderman, President, National Women's Trade Union League, New York. Joseph M. Tone, Commissioner of Labor, Connecticut. L. Metcalfe Walling, Director of Labor, Rhode Island. 32 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION REPORT OF COMMITTEE ON POWERS AND DUTIES OF STATE LABOR DEPARTMENTS— as adopted The committee has drafted suggested language for the creation of a State labor department. Inasmuch as the bill in its final form was approved at a meeting held just prior to the opening of this con- ference, there has not been an opportunity to obtain mimeographed copies for distribution to the conference. In drafting this bill, the committee contemplated that it should be drawn to meet the needs of States having no labor departments functioning at present, and those States desiring to reorganize and strengthen existing departments. While the bill creates a State department of labor under the supervision of a single commissioner, the committee recognizes in its accompanying memorandum that a multiple-headed commission may be found to be more satisfactory under certain conditions. All labor functions in the State, insofar as practicable, are com- bined and placed under the jurisdiction of the labor department. The commissioner is granted the necessary powers of enforcement: To make inspections, to examine records and premises, to require information and subpena testimony, to administer oaths, and to prosecute violations. In addition the commissioner is given the power to make general orders for the safety and health of employees and the public, and to issue variations in cases of undue hardship. In preparing safety and health requirements, the commissioner has the power to utilize the voluntary services of technical advisers. A procedure for the adoption of such orders is created, providing for notice and public hearing, approval by the industrial council, and publication. The* industrial council, just mentioned, is also created by the bill. It is composed of three persons representing employers, employees, and the public, with the commissioner as an ex-officio member without vote. Its functions consist of advising the commissioner generally on the administration of the Department and passing on general orders and variations relating to safety and health. There is imposed on employers and owners of places of employ- ment, public buildings, and places of public assembly the duty to provide adequate protection for the safety and health of employees and the public. It is this duty which serves as the basis for the power of the commissioner to issue general orders, above mentioned. Violations of the bill or of any order of the commissioner, or obstructing the commissioner in the performance of his duties, is made a misdemeanor, punishable by fine and imprisonment. In lieu THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 33 of such criminal actions, the fines may be recovered in a civil action in the name of the State, in the nature of an action for debt. Chairman : Martin P. Durkin, Director, Department of Labor, Illinois. Elmer F. Andrews, Industrial Commissioner, Department of Labor, New York. A. L. Fletcher, Commissioner, Department of Labor, North Carolina. C. L. Jarrett, Commissioner of Labor, West Virginia. James T. Moriarty, Commissioner, Department of Labor and Industries, Massachusetts. F. E. Nichols, Commissioner of Labor, Texas. Edwin E. Witte, Professor of Economics, University of Wisconsin. David Y. Campbell, Division of Labor Standards, United States Department of Labor. Clara M. Beyer, Division of Labor Standards, United States Department of Labor. REPORT OF COMMITTEE ON WAGE PAYMENT AND WAGE COLLECTION— as adopted At the Second National Conference on Labor Legislation at Ashe- ville, N. C, last year, the problem of unpaid wages was called to the attention of the conference. The failure of many employers to pay wages earned, the inability of the individual wage earner to settle disputes on wages due or to collect the sums owing to him through existing legal machinery resulted, in many States, in wage earners bringing their complaints to the labor commissioners. Wherever the labor commissioner had some legal authority to proceed, they were able to collect very large sums; but even in States where the laws were weak or not explicit, persuasion was often used and many cases settled in favor of the employee. After 1 this problem and the exist- ing legal remedies had been discussed by a conference committee, a report brought in by that committee was adopted, requesting the Secretary of Labor to form a committee of inquiry to develop proper types of legislative remedy and, in cooperation with other interested groups, to prepare an act to serve as a model for State laws. The Secretary's committee was subsequently combined with a committee appointed by the president of the International Association of Gov- ernmental Labor Officials, and the joint committee then consisted of Morgan Mooney (Deputy Labor Commissioner, Connecticut) ; W- A. Pat Murphy (Labor Commissioner, Oklahoma) ; Harry R. McLogan (Member, Industrial Commission, Wisconsin) ; O. B. Chapman (Director, Department of Industrial Relations, Ohio) ; and E. I. McKinley (Commissioner, Bureau of Labor and Statistics, Arkansas) as chairman. The committee met for 4 days at the United States Department of Labor the end of January of this year, and again at the Topeka 34 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION meeting of the International Association of Governmental Labor Officials in September. It has prepared and is presenting to you now for your approval suggested language for a State wage pay- ment and wage collection law. This language has received the en- dorsement of the International Association of Governmental Labor Officials; and probably most of those present from State labor departments and State federations of labor have already received copies of this bill, since it has been sent out with a covering letter by the president of the International Association of Governmental Labor Officials. However, for the benefit of those who are not familiar with the draft, I shall briefly summarize its main provisions : SUMMARY OF BILL The bill provides that every employer doing business in the State — whether an individual employer or a corporation — must pay his employees wages earned semimonthly, on clays to be designated in advance by the employer as the regular pay clays ; it provides that such wages shall be paid in full, in lawful money, or bank checks convertible into cash at full face value. Employees who are dis- charged shall be paid within 24 hours; employees who quit volun- tarily shall be paid within 72 hours of quitting, or of giving notice; in the event of a suspension of work due to an industrial dispute, wages shall be paid at next regular pay day. The bill provides for enforcement by the labor commissioner, who is also empowered to hold hearings which would create an opportunity for the settlement of disputes without court action, and to compel the attendance of witnesses as well as the production of books, accounts, pay rolls, and similar material. The commissioner is authorized and instructed to cooperate with any employee in. the enforcement of any just and valid claim against an employer or contractor, and to that end he may take assignments of wage claims, mechanics' and other workers' liens, not exceeding $200 per claim. In addition, he may prosecute all necessary actions to collect, without having to advance court costs or to give bond or security. There are also sections in the bill providing for notifying the employees of time and place of payment, of their rate of wages, and of the terms of the law; providing that an employer may become civilly liable to the employees of his subcontractors. The penalty sections provide for penalties of varying degrees of severity, in order to allow the enforcing official some discretion, depending on the character and standing of the employer who violates the act. The standards embodied in this draft are minimum standards. Some States have more rigorous requirements than those which are here recommended. But in most jurisdictions all these minimum requirements do not exist. For those States which have attained or THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 35 surpassed these standards they are a basis from which to work in a continued effort to remedy any defects which may arise. For other jurisdictions these standards are a goal toward which to work in order to protect the wage earner and enable him to obtain wages due him. While every effort lias been made to keep the language of this bill brief, simple, and nontechnical, it has also been carefully worded in order to make sure of accomplishing the ends in view, and that is not always easy to achieve. For instance, the section on payment of wages as it now stands would prevent the undesirable practice of withholding wages for a considerable period of time, although withholding wages is not specifically mentioned. The committee feels that the bill may still require changes or amendments from time to time, but that these can best be made after there has accumulated some further administrative experience under a law of this type. RECOMMENDATIONS The committee recommends that this committee be continued for another year in order to keep in touch with the situation and con- sider any amendments that may prove desirable. For this purpose, if the committee is continued, I would urge that some arrangement be made whereby the committee can learn about the problems that arise in getting this bill adopted, as well as the administrative experience after it is adopted. It is asked that the Division of Labor Standards, which has been assisting the committee in its work, be made the clearing house for this information. The committee presents this bill to you for your endorsement, and urges that the conference record itself as recommending to the States enactment of this bill. Chairman, E. I. McKinley, commissioner, Bureau of Labor and Statistics, Arkansas ; Morgan Mooney, Deputy Commissioner of Labor, Connecticut ; W. A. Pat Murphy, Commissioner of Labor, Oklahoma ; Harry R. McLogan, Member of Industrial Commission, Wisconsin ; O. B. Chapman, Director, Department of Industrial Relations, Ohio ; Jean A. Flexner, United States Department of Labor ; Henry Lehmann, United States Department of Labor. REPORT OF THE COMMITTEE ON INDUSTRIAL HOME WORK— as adopted The Industrial Home Work Committee which was appointed after the Asheville conference has been working along two rather distinct but complementary lines. It has been working on a draft of a stand- 36 THIRD NATIONAL, CONFERENCE ON LABOR LEGISLATION ard State bill and it has been attempting to work out some machin- ery to control the growing, difficult situation arising from interstate traffic in home work. I am glad to report that so far as a standard bill for the control of industrial home work in the States is con- cerned, the committee has something drafted which is here, ready for distribution among you. This bill, we believe, does point toward the elimination of home work within the States, which is the com- mittee's definite objective. The more you know about industrial home work the more certain you are that complete elimination is what you ought to go after. You are certain of that, both because of the very bad conditions which you find as you attempt to control it, and because of the difficulties that are inherent in the administration of a statute for the control of home work. The committee's bill, a copy of which you can get here, was drafted by Mr. Gellhorn, of the Columbia University Law School, who acts as legal adviser to the committee, and was endorsed in Topeka by the recent session of the International Association of Governmental Labor Officials. It does prohibit home work out and out in a number of types of industry, where there is a special hazard to health or to safety : Any home work on food or drink ; home work on articles used in connection with serving of food or drink; home work on wearing apparel for infants and for children 10 years of age or under; toys, dolls; tobacco; drugs and poisons; bandages and sanitary goods; explosives and fireworks and articles of like charac- ter. Obviously, we don't want explosives and fireworks manufac- tured where people live, where their families and children are con- gregated. You don't want shelled nuts or sippers for drinks, or things of that sort, that were made under tenement-house conditions, coming into your home for use, and so prohibition is the obviously reasonable thing to provide. Then the bill goes on to provide that the labor commissioner shall have the power to prohibit where the continuance of industrial home Avork either causes injury to the health or welfare of the home worker, or where it makes especially difficult the maintenance of existing labor standards or the observance and enforcement of labor law protection for factory workers. Those of us who have been studying homework conditions, those States which have had a lot of it close at home for some time, like New York, New Jersey, and Pennsylvania, know that it is a menace to factory conditions ; that the woman — and it usually is a woman who works at home — is least able to bargain for the main- tenance of her labor standards; that she doesn't know what other people are paid ; that she can't get together with her fellow workers and say, "We will none of us do this sort of work unless we get decent returns for the work we do." THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 37 We know, when we issue a certificate to a home worker to do a cer- tain piece of work herself that when she is told to get it back the next morning she lets her children help, or she calls in the neigh- bors, regardless of the conditions on her certificate which make such assistance illegal; and we know that it would take a staff of in- spectors larger than any of the States or, I take it, the Federal Gov- ernment could support, to see that during the busy season these things don't happen. Therefore, your committee is definitely in favor of prohibiting in- dustrial home work. It recognizes that prohibition means continued checking up on the sources of home work which are with us constantly because home work does mean that the manufacturer shifts a good deal of his cost and can take advantage of the worker's inability to maintain her equality with factory standards. The committee's bill provides that the employer must have a per- mit if he is to give out home work and that he must pay for that per- mit annually according to the number of home workers he has. Since the International Association of Governmental Labor Officials meet- ing in Topeka there has been added to the bill a section which pro- vides for a home worker's certificate, because we find that that does help to educate the home worker as to her rights and responsibilities and that it helps the department of labor to check up. The bill also provides that the manufacturer who gives out home work shall pay quarterly a tax on every home worker he employs. Where there is a good deal of home work such a provision means revenue for the maintenance of the inspection service, but it is a provision which perhaps would mean too costly a set-up where home work is not a general problem. The tax provision, however, is a separable part of the bill. Your committee feels very strongly that where home work is al- lowed to continue, and there is a minimum-wage law, the provisions of the minimum-wage law should be applied as promptly and as broadly as possible to home work industries. We would like to point out also that even where you have no minimum-wage law the standard bill makes possible the prohibition of industrial home work when it is found that the pay of home workers is less than the factory workers, and that an aim of the draft is to help bring up the earn- ings, the income of the home worker. Three States have recently enacted home-work legislation that has the same general objective as this new standard bill — Connecticut, Rhode Island, and New York. Some of us have felt that just as we profited greatly in our minimum-wage legislation by having con- ferences on methods of administration so, as the roster of States having similar home-work legislation grows, we might well confer 38 THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION on administrative practices in this field also. They are difficult and complex and leave us with many questions unsolved. Now, on an interesting aspect, an earlier conference recommended that the Federal Department of Labor begin to study the transit of industrial home work in interstate commerce and so those States which require licensing have been reporting to each other where they thought that manufacturers were sending work across State lines. Copies of the reports have cleared through the United States Department of Labor, and we have for the first time a partial picture of what is happening. I don't think I can emphasize sufficiently how partial that picture is, because most of us in the States feel that we cannot push to hard on getting the information and seeking to control wages outside of the State borders. For instance, we in New York may report that a manufacturer has several hundred or a thousand home workers of whom 50 are outside of New York State, but we don't know from his register whether those are individual home workers or whether they are contractors who in turn may be distributors, perhaps in an interstate area. Mrs. Beyer and I have been having a lively correspondence about somebody down in Baltimore who was reported on one of our regis- ters. We found to my astonishment that that man wasn't doing home work at all but that he was sending materials into Pennsylvania. Our records had not given us the whole picture. Actually six States have been clearing through the United States Department of Labor and several additional States have reported that so far as they know, no industrial home work has crossed their borders, either coming in or going out. The six States that have reported actual passage of home work are Delaware, Maine, Massachu- setts, New Jersey, New York, and Pennsylvania. And New York, I know, and the records say, is the source of most of that home work. One hundred and seventy-one manufacturers in New York State have been sending out home work into 16 States and Puerto Rico; 160 of them sent work into one State only; 153 of those cases were home work going into New Jersey. Seven of the States — Delaware, Kentucky, Maine, New Hampshire, Vermont, Virginia, and West Virginia — into which New York materials were going, have no laws regulating industrial home work. Much of the outgoing New York home work consisted of infants' sacks and bootees, and so forth, and in these seven States it is a matter of nobody's concern whether there is disease in the homes where the women work at the rate of 3 cents an hour, or whether children are working on the materials, or whether the work is being performed under any of the other characteristic conditions of home work. A substantial proportion of the materials which pass in interstate commerce were found to be distributed through the contract system. THIRD NATIONAL CONFERENCE ON LABOR LEGISLATION 39 At least 56 of the 171 New York firms sent materials to contractors or distributors operating in other States and the reports listed 92 New Jersey contractors and 3 contractors living in Pennsylvania who were acting as local distributors for New York manufacturers. From these 171 New York manufacturers we have specific reports of 1,451 home workers in other States and the exact number of home workers to whom 50 of the local distributors give out work is as yet unknown. This also is significant : Thirty-six percent of the home workers who were receiving work from New York lived in States where there are no industrial home work laws and I want to emphasize again that the bulk of the work was intended for the use of infants and children. Our committee is working on the problem of what to do about this passage of industrial home work across State lines. Mr. Gell- horn feels that it is important to recommend not only that the Fed- eral Government have some authority in the control of interstate passage of home work, but that the States shall be able to stop home work from coming in if it is going to have an adverse effect on State standards. We are waiting for a decision of the Supreme Court in connection with existing legislation which prohibits the shipment of prison-made goods into States where its sale is forbid- den. If that statute is upheld, Mr. Gellhorn feels that he can then recommend much more intelligently to the committee the direction which we should take with regard to interstate passage of home- work goods. This, therefore, is one of the important lines of activity to be continued. We further recommend that all of you consider what is coming into your States from these chief distribu- tion centers of home work and the possibility that we get together so that we may have the benefit of all experience in the administration of the new home-work laws. Chairman, Frieda S. Miller, Director, Division of Women in Industry and Minimum Wage, Department of Labor, New York. Anne S. Davis, Assistant Chief, Minimum Wage Division, Department of Labor, Illinois. W. E. Jacobs, Commissioner of Labor, Tennessee. W. A. Pat Murphy, Commissioner of Labor, Oklahoma. John J. Toohey, Jr., Commissioner of Labor, New Jersey. Beatrice McConnell, Children's Bureau, United States Department of Labor. Mary Elizabeth Pidgeon, Women's Bureau, United States Department of Labor. A. Louise Murphy, Division of Labor Standards, United States Department of Labor. o UNIVERSITY OF FLORIDA iiijiiimii 3 1262 08860 0308