UNIVERSITY OF FLORIDA 3 1262 08482 9588 lement No. 5 tS Registry No. 1043—01 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TILE CONTRACTING INDUSTRY (A Division of the Construction Industry) AS APPROVED ON APRIL 2, 1934 WE DO OUR PART UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washington, D.C. -------- Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1S01 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. ' Cleveland, Ohio : Chamber of Commerce. Dallas, Tex.: Chamber of Commerce Building. 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Approved Code No. 244 — Supplement No. 5 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TILE CONTRACTING INDUSTRY As Approved on April 2, 1934 ORDER Supplementary Code of Fair Competition for the Tile Contracting Industry a division of the construction industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, and pursuant to and in full compliance with the provisions of Section 5 of Article VIII of Chap- ter I of the Code of Fair Competition for the Construction Industry, approved January 31, 1934, for approval of Chapter IX of said Code, which Chapter IX is applicable to the Tile Contracting Divi- sion of the Construction Industry, and hearings having been held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise ; do hereby incorporate by reference said an- nexed report and do find that said Chapter complies in all respects with the pertinent provisions and will promote the policy and pur- poses of said Title of said Act ; and do hereby order that said Chap- ter IX be and it is hereby approved and that the previous approval of said Code of Fair Competition for the Construction Industry is hereby modified to include an approval of said Code in its entirety as supplemented by said Chapter IX. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Geo. L. Berry, Div isio n A dmin ist rat or. Washington, D.C., April 2, 193Jp. 50404° 482-6 34 (1) REPORT TO THE PRESIDENT The President, The White House. Sir : This is a report on the Tile Contracting Chapter of the Code of Fair Competition for the Construction Industry which is de- scribed as Chapter I and which was approved by you on January 31, 1934. This Chapter is a revision after a public hearing conducted in Washington on October 9, 1933, in accordance with the provisions of the National Industrial Recovery Act. This Chapter amplifies Chapter I, but applies specifically to the Tile Contracting Division of the Construction Industry. PROVISIONS FOR HOURS AND WAGES With very minor exceptions, the hours and wages set forth in Chapter I of the Construction Code as approved by you on Janu- ary 31, 1934 are applicable to this Code. ECONOMIC EFFECT OF THE CODE According to the statistical analysis of the Division of Research and Planning, the contract volume of the sponsors of this Chapter decreased from approximately $15,000,000 in 1929 to $3,000,000 for the first six months of 1933. Employment has fallen from 19,420 in 1929 to 3,700 in 1933. It is reasonable to predict that the establishment of uniform rates of pay and hours of work and the prohibition of unfair trade prac- tices will be beneficial to this Industry as well as to the employees and the consumer. FINDINGS The Deputy Administrator in his final report to me on said Tile Contracting Chapter of the Code of Fair Competition for the Construction Industry, having found as herein set forth and on the basis of all the proceedings in this matter; I find that: (a) Said Tile Contracting Chapter and said Code of Fair Com- petition for the Construction Industry, as supplemented by said Tile Contracting Chapter, are well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, includ- ing removal of obstructions to the free flow of interstate and for- eign commerce which tend to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and supervision, (2) by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of indus- tries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Industry normally employs not more than 50,000 em- ployees; and is not classified by me as a major industry. (c) Said Tile Contracting Chapter and the Code of Fair Compe- tition for the Construction Industry, as supplemented by said Tile Contracting Chapter, as approved comply in all respects with the pertinent provisions of said Title of said Act, including without lim- itation Subsection (a) of Section 3, Subsection (a) of Section 7, and Subsection (b) of Section 10 thereof; and that the applicant asso- ciation is an industrial association truly representative of the afore- said Industry; and that said Association imposes no inequitable restrictions on admission to membership therein. (d) Said Tile Contracting Chapter and the Code of Fair Com- petition for the Construction Industry, as supplemented by said Tile Contracting Chapter are not designed to and will not permit monop- olies or monopolistic practices. (e) Said Tile Contracting Chapter and the Code of Fair Com- petition for the Construction Industry, as supplemented by said Tile Contracting Chapter, are not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Tile Contracting Chapter and of said Code, as supplemented by this Tile Contracting Chapter thereof. For these reasons, therefore, I have approved said Tile Contract- ing Chapter of the Code of Fair Competition of the Construction Industry. Kespectfulty, Hugh S. Johnson, A dmin 1st rat or. April 2, 1934. Chapter IX SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE TILE CONTRACTING DIVISION OF THE CON- STRUCTION INDUSTRY Article I — Definitions Section 1. The term " Tile Contracting Division of the Construc- tion Industry " or " this Division " as used herein means the con- tracting for the installation of tiles, mantels, and accessories. Section 2. The term " tile " as used herein includes all kinds of glazed or unglazed products used for floor and wall surfacing which are made exclusively from clay and/or other ceramic materials and are burned in the course of manufacture and which in the case of glazed tile are composed of ceramic body and ceramic glaze. Section 3. The word " accessories " means items set in conjunc- tion with the tile work, such as soap dishes, grab rails, tumbler holders, shelf brackets, tooth brush holders, sponge holders, paper holders, towel bars, door stops, hooks, and such related articles in various colors, styles, and combinations. Section 4. The term " member of the Code " includes any member of this Division who shall expressly signify assent to this Code as it pertains to this Division. Section 5. The term "Association " means the " Tile and Mantel Contractors' Association of America, Inc." Article II — Hours, Wages and Conditions of Employment Section 1. The provisions of Section 2 B of Article III of Chapter I shall not apply to: (a) Employees engaged in professional, executive, or supervisory capacity receiving more than thirty-five dollars ($35.00) a week. Supervisors are defined as those who perform no manual labor. (b) Employees engaged in emergency work involving breakdowns or protection of life or property who shall be paid at the overtime rate of at least one and one-half (IV2) the normal rate for all hours worked in excess of the daily and/or weekly maximum. (c) Watchmen, who shall not be permitted to work in excess of fifty-six (56) hours in any one week nor more than six (6) days in any seven (7) day period. Section 2. Payment of Wages. — All employers shall make pay- ment of all wages due in lawful currency or by negotiable check therefore payable on demand at par. Wages shall be payable at the end of each weekly period. Wages shall be exempt from any pay- ment for pensions, insurance, or sick benefits other than those vol- untarily paid by employees. Employers or their agents shall not accept, directly or indirectly, rebates on such wages or give anything (4) of value or extend any favors to any person for the purpose of influencing rates of wages or working conditions of their employees. The provisions of this Section regarding payment of wages at the end of each weekly period shall not apply to persons employed in a managerial or executive capacity who earn not less than thirty- five dollars ($35.00) per week, nor to any persons employed in clerical or office work, who shall be paid at least semi-monthly. Section 3. Posting. — All employers shall keep complete copies of this Code and " Chapter I, General Provisions " posted in conspicu- ous places easily accessible to all employees. Section 4. Complaint. — No employee shall be dismissed by reason of making a complaint or giving evidence with respect to an alleged violation of this Code. Section 5. Safety and Health. — Every member of this Division shall provide for the safety and health of his employees at the place and during the hours of their employment. Standards for safety and health shall be submitted by the Divisional Code Authority to the Administrator for approval within six (6) months after the effective date of this Code. Section 6. No employee now employed at rates in excess of the minimum herein established shall be discharged and reemployed at a lower rate for the purpose of evading the provisions of this Code. Article III — Administration Section 1. Administrative Agency. — To effectuate the purposes of this Code and provide for its administration within this Division, there shall be established a Divisional Code Authority, seven mem- bers of which shall be appointed by the Executive Committee of the Association from the membership of the Association, together with not more than three additional members to be appointed by the Ad- ministrator from members of this Division who are not members of the Association to represent such members. All members of the Divisional Code Authority must comply with the provisions of Sec- tion 4 of this Article. The Administrator may request from the Association a list of members of this Division who are non-members of the Association, eligible for appointment to the Divisional Code Authority. Section 2. All members of the Divisional Code Authority shall be appointed within fifteen (15) days after the effective date of this Chapter for a term of one (1) year from such effective date, pro- vided that, in the event the Code is continued beyond the limits now established by law, such terms may be readjusted to insure overlap- ping tenures, in a manner to be approved by the Administrator. In case a vacancy occurs in the Divisional Code Authority, such vacancy shall be filled within thirty (30) days, by the method provided in Section 1, except that the successors to representatives of the mem- bers of this Division who are not members of the Association shall be selected by such members, if such successors and the method of their selection are approved by the Administrator. Section 3. The Administrative members and the Administrator shall be given five (5) days' notice of, and may sit at, all meetings of the Divisional Code Authority. Section 4. Members of the Division shall be entitled to participate in and share the benefits of the activities of the Divisional Code Authority and to participate in the selection of the members thereof by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its admin- istration. Such reasonable share of the expenses of administration shall be determined by the Divisional Code Authority, subject to review by the Administrator, on the basis of volume of busi- ness and/or such other factors as may be deemed equitable. Section 5. Powers and Duties. — The Divisional Code Authority, in addition to the powers and duties conferred on it by Chapter I hereof, shall have the following powers and duties to the extent permitted by the Act : (a) To establish specifications for minimum standards of work, with the approval of the Administrator and after such notice and hearing as he may prescribe, such standards to be designed to safe- guard and insure the health, safety and comfort of the occupants of homes and other structures. (b) To establish a standard contract form for use within this Divi- sion, such form to be approved by the Administrator after such notice and hearing as he may prescribe. (c) To cooperate with the Administrator in regulating the use of any N.R.A. insignia solely by those of this Division who have assented to, and are complying with, this Code. (d) To recommend to the Administrator further fair trade prac- tice provisions to govern members of this Division in their relations with each other or with other industries and to recommend to the Administrator measures for industrial planning, including stabiliza- tion of employment. (e) To cause to be formulated an accounting system and methods of cost finding and/or estimating capable of use by all members of this Division. After such system and methods have been formulated by the Divisional Code Authority and approved by the Adminis- trator, full details concerning them shall be made available to all members. Thereafter all members shall determine and/or estimate costs in accordance with the principles of such methods. Section 6. If the Administrator shall determine that any action of the Divisional Code Authority or any agency thereof may be unfair or unjust or contrary to the public interest, the Adminis- trator may require that such action be suspended to afford an oppor- tunity for investigation of the merits ot such action and further consideration by the Divisional Code Authority or agency pending final action which shall not be effective unless the Administrator approves or unless he shall fail to disapprove after thirty days' notice to him of intention to proceed with such action in its original or modified form. Article IV — Trade Practice Rules For the protection of the public, a member of this Division should have the following qualifications: (a) be generally qualified by his technical training or experience in the Industry to direct properly the installation, altering, or repair- ing of tile, mantels, and accessories ; (b) be an employer of tile setters and helpers; (c) have an established place of business and maintain a proper set of books and records incidental to the conduct of a tile con- tracting business; (d) be financially able to operate his business properly. General Definition. — For all purposes of the Code the following acts described in this Article shall constitute unfair practices. Any member of the Division who shall directly or indirectly, through any officer, employee, agent, or representative, knowingly use, employ, or permit to be employed any of such unfair practices shall be guilty of a violation of the Code. Rule 1. Selling Below Cost. — No member of this Division shall quote, sell or offer to sell any product, installation or other service within this Division at less than his individual cost thereof (cost for the purposes of this Rule to be determined pursuant to the cost finding and/or estimating methods provided for in Section 5 (e) of Article III); provided, however, that cost for the purposes of this Rule shall not include items of depreciation on unused facilities, interest on indebtedness, interest on investment, or selling expense. Rule 2. Adequate Records. — No member of this Division shall submit an estimate price on any job or submit a bill for his services without retaining an adequate record showing the cost analysis upon which his estimate was based or his charges determined. Rule 3. Substitution. — No member of this Division shall use or substitute any products of this Division inferior in grade or quality less in quantity, and/or of a different design or type, for those speci- fied by the purchasers, without the consent of the purchasers to such uses of substitutions. Rule 4. Secret Rebates.— No member of this Division shall offer or make any secret or discriminatory payment or allowance of a rebate, refund, commission, credit, unearned discount, or excess allowance, whether in the from of money or otherwise; nor shall a member of this Division offer or extend to any customer any secret or discrimi- natory service or privilege for the purpose of influencing a sale or contract. Rule 5. Prop-sharing Combinations.— Members of this Division have been suffering from cooperative profit-sharing combinations who do not employ any skilled mechanics and work without any restriction as to number of hours of labor or the amount of wages. No member of this Division, whether individually or in combination with other members of this Division, shall work with tools except in compliance with the maximum hours herein provided, and any such member or combination shall comply with all applicable pro- visions of this Code including the provisions of Rule 1 and Rule 2 of this Article. Rule 6. Interference with Contracts.— No member of this Division shall induce or attempt to induce the breach of an existing contract between a competitor and his customer or source of supply ; nor shall any such member interfere with or obstruct the performance of such contractual duties or services. Rule 7. Subletting Labor Services.— No member of this Division shall 1 directly or indirectly sublet to any employee or laborer the labor services required by any contract secured by such member 8 Rule 8. Quotations and Bids. — (a) No member of this Division shall combine quotations for ai^ product or service within this Divi- sion with any quotation for any other product or service, for the purpose or with the effect of concealing the true selling price of the product or service within this Division. (b) No member of this Division shall combine the requirements for the products of this Division for two or more distinct and sepa- rate projects in one quotation to the same purchaser for the purpose and with the effect of concealing the true selling price for the prod- ucts for each or all of such projects. Under this Section a project shall be considered distinct and separate from another project unless constructed on the same site and the awarding authority including the owner and his agents (including the architect and the mechanical engineer) are the same entities. (c) No member of this Division shall submit a competitive bid. as defined in Section 1 of Article VII of Chapter I of this Code, to an owner or any other person corresponding to an awarding authority as therein defined, unless such owner or other person agrees to com- ply with the regulations provided therein governing an awarding authority. Rule 9. Selling of Tile Unset. — No members of this Division shall contract for the sale of tile, mantels, or accessories unset. Article V — Filing of Bids Each member of this Division shall file with the Divisional Code Authority, or such other agency as the Divisional Code Authority may designate, a signed true copy of all bids, including all alternates and revisions thereto submitted in connection with all competitive bidding, together with a list of all prospective customers or others to whom such bids have been, or are, submitted. Such copies of bids shall not be opened by the Divisional Code Authority until twenty-four (24) hours after the time specified by the awarding authority for the receipt and opening of such bids. Within forty- eight (48) hours after such opening, the Divisional Code Authority, or its designated agency, shall prepare a list of the names and addresses of all bidders for each specific project, indicating the amounts of all bids, alternates, and modifications, together with a summary of all exceptions, and forward a copy of such list to each member of this Division filing his bids. Article VI — Modification Subject to the provisions of Section 2, (c) of Article IV, B, of Chapter I of this Code, the provisions of this Chapter, except as to provisions required by the Act, may be modified on the basis of experience or changes in circumstances, such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become effective on his approval. Article VII — Reference to Provisions of Chapter I The provisions of Sections 7 (a) and 10 (b) of the Act, which are set forth in Sections 1 and 6 respectively of Article VIII of Chapter I of this Code, are specifically incorporated herein by refer- ence with the same force and effect as if set forth herein in full; all other provisions of Chapter I of this Code, except as herein provided, apply within this Division t with the same force and effect as if set forth herein in full. Article VIII — Effective Date This Chapter shall become effective within this Division on the tenth (10th) day after its approval by the President. Approved Code No. 244, Supplement No. 5. Registry No. 1043-01. O