NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION RUBBER FOOTWEAR INDUSTRY AS SUBMITTED ON JULY 29, 1933 Registry No. 801—1—01 The Code for the Rubber Footwear Industry in its present form merely reflects the proposal of the above-mentioned industry, and none of the provisions contained therein are to be regarded as having received the approval of the National Recovery Administration as applying to this industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents. Washington. D.C Price 5 cents PROPOSED CODE OF FAIR COMPETITION FOR THE RUBBER FOOTWEAR INDUSTRY In order to carry out the intent and provisions of Title I of the National Industrial Recovery Act, the following provisions are established as a Code of Fair Competition for the Rubber Footwear Industry. Section I. — Definitions The term "Rubber Footwear Industry" as used herein is defined to mean the manufacture and/or wholesale sale by manufacturers of all types of so-called Waterproof and Canvas Rubber-soled Footwear. The term ''Employees" as used herein is defined to include all factory employees working for w^ages, except repairshop crews, engineers, electricians, firemen, supervisory staff, shipping, watching and outside crews, office employees, and salesmen. The effective date of this Code shall be 14 days after the date of its approval by the President of the United States. Section II — Application All terms, provisions and conditions of this Code, as it may finally be approved, and any subsequent revisions thereof or additions thereto, shall apply to any person, partnership or corporation engaged in the Rubber Footweat Industry, as defined in Section I above. Section III — -Labor 1 . As provided in Section 7 (a) of Title I of the National Industrial Recovery Act, the following provisions are embodied in this Code: "(1) That employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment shall be required as a con- dition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and (3) that employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of em- ployment, approved or prescribed by the President." 2. It is clearly understood that the foregoing paragraphs do not impair in any particular the constitutional rights of the employee and employer to bargain individually or collectively as may be mutuall}' satisfactory to them; nor does it impair the joint right of employee and employer to operate an open shop. 3. On and after the effective date of this Code, employers in the Rubber Footwear Industry shall not employ any minors under the age of 16 years. 4. Nothing in this Code is to prevent the selection, retention, and advancement of employees on the basis of their individual merit, 9727—33 (1) without regard to their affihation or nonaffiUation with any labor organization. 5. The maximum hours of employees shall be limited to 36 hours per individual per week, with a limit per individual per day of 8 hours, and a maximum seasonal tolerance of 120 hours per year. 6. In order to avoid unbalanced production, such employees occu- pied in milling, calendering, curing, and other like limited machine capacity, shall, to the extent of not more than 20 percent of the total employees, be permitted to work 48 hours per week with an annual tolerance of 120 hours per individual per year for mechanical and manual interruption, and seasonal peak loads. 7. On and after the effective date, the minimum wage that shall be paid by employers in the Rubber Footwear Industry to any of their employees, except learners doing a maximum 6-weeks' appren- ticeship at a minimum of 25^ per hour, shall be at the rate of 2>bi. per hour. 8. It is agreed that the proper graduations above the minimum wages shall be maintained in the wage amount received by the higher paid classes. Section IV — Reports of Production, Sales, Inventory, Wages, AND Hours Monthly returns showing production, sales, and inventory, classi- fied into the general terms of the Industry, and wages paid and hours worked, shall be made by each member to the Rubber Manufacturers Association, Inc., 250 West 57th Street, New York City, which shall constitute the agency to collect and receive such reports and distribute the collected information to the Industry members. Section V — Accounting and Costing and Specification 1. A uniform and equitable system of accounting and cost control shall be devised by the Footwear Division Accounting Committee of the Rubber Manufacturers Association for adoption by each member of the Rubber Footwear Industry which system shall be used by each member of the Industry as a basis for establishing said member's individual costs. 2. Specification. — There shall be a Committee of the Industry consisting of three representative members which shall from time to time present for adoption, with reasonable tolerances, by the Industry, definitions of standard products under the title "Standard Products Specifications," which definitions when adopted shall be filed with the Rubber Manufacturers Association. 3. Any manufacturer may make Footwear of higher quality than that defined in adopted Specifications as provided in Section V, Paragraph 2, and/or included in an adopted selling schedule as pro- vided in Section VIII, and in that event shall independently make his own selling prices on such Footwear in accordance with Section VII, Paragraph 1, provided such prices shall not be lower than any adopted minimum schedule on relative products. Section VI — Imports There shall be a Committee representative of the Industry whose duty it shall be in order to effectuate this Code, particularly as referred to in Section 3 (e) of the Act, to investigate and inform the Adminis- tration on behalf of the Rubber Footwear Industry as to the importa- tion of competitive articles into the United States in substantial quantities or increasing ratio to domestic production on such terms or under such conditions as to render ineffective or seriously to en- danger the maintenance of this Code, and as an agency for making complaint to the President on behalf of the Rubber Footwear Indus- try under the provisions of the National Industrial Recovery Act in respect thereto, and it is the intention of this Code that all domestic sales shall be made under the terms of this Code. Section VII — Marketing 1. No manufacturer shall initiate prices on regular merchandise (other than on factory damaged and obsolete merchandise) at less than its unit cost of production, as determined under the system provided for in Section V, Paragraph 1 , plus its related cost of market- ing, including transportation, plus a fair and reasonable profit, unless it is sold in accordance with an adopted schedule under Section VIII herein, which schedule had become out of line due to unforeseen changes in costs. 2. Marketing of Factory-Damaged and Obsolete Goods. — There shall be a Committee of the Industry consisting of three representative members which shall recommend for adoption from time to time, cooperative methods of properly identifying and disposing of factory- damaged and obsolete goods, in order that the marketing of such goods may be carried out in an orderly and fair manner. 3. To assist in providing uniform trade practices and preventing discrimination and unfair competition, group customer classification definitions shall be adopted by the Footwear Industry for the follow- ing classifications under the title of "Definitions of Buyers of Foot- wear," and such definitions shall be filed from time to time with the Rubber Manufacturers Association, Inc.: Classification of Buyers of Footwear. (A) Jobbers. (B) Mail Order Houses. (C) Chain Stores. (D) Department Stores. (E) Cooperative Buying Associations. (F) Group Combinations. (G) Industrials: 1. Contractors. 2. Commissaries. 3. Abattoirs, etc. (H) Government: 1. Federal. 2. State. 3. County. 4. Municipal. (I) Retailer. (J) Agencies: 1. Syndicates. 2. Resident Buyers. Section VIII — ^Selling Schedules 1. Due to the seasonal character of the sales demand for Rubber and Canvas Footwear and the desirability for stabilization of the production, there shall be a Committee of the Industry consisting of 3 representative members to be called a ''Cost Committee of the Rubber Footwear Industry" which shall from time to time, upon the basis of the system provided for in Section V, Paragraph 1, present the costs for various standard kinds and grades of Footwear which in their opinion will obtain during a limited period in the future, and on the basis of such costs and in accordance with Section VII, shall recommend a selling schedule which shall, if and when adopted, then be promptly filed with the Rubber Manufacturers Association, Inc., together with a notation of the effective date. 2. This committee shall also from time to time, after taldng into consideration marketing costs in the industry, recommend the proper discounts and terms of sale to be given the different classifica- tions of trade as defined in ''Definitions of Buyers of Footwear" and such schedule of discounts, if any, and/or terms of sale or uniform sales contracts, if and when adopted, shall be promptly filed wdth the Rubber Manufacturers Association, Inc. 3. It is desirable that the schedules provided for in this Section be filed before the beginning of the respective selling season of the product involved and remain in effect during such selling season, but if due to unforeseen changes in costs these schedules become in- consistent with Section VII, Paragraph 1, the Committee shall promptly recommend new schedules for adoption. 4. Where the costs of executing contracts entered into in the Rubber Footwear Industry prior to July 1, 1933, are increased by the application of the provisions of the National Industrial Act and this Code, the prices specified in such contract shall be increased to reflect such increased costs and shall be paid by the Purchaser. Section IX — Trade Practices 1. No goods will be sold under any conditions on consignment to any classification of account. 2. No order except a detailed order with specified shipping date will be accepted. 3. No contracts shall be made that do not provide for change of prices without notice. Where change of price occurs at the start of the season (as determined by the Footwear Division of the R.M.A.), it becomes effective as to shipments immediately. Where change of price occurs during consuming season (from September 1st to start of season on Waterproof goods, from March 1st to start of season on Canvas goods), all shipments made thereafter must be at new prices except orders on hand, sliipment of wliich can be completed within 30 days after effective date of price change except that such 30-day period must not extend beyond the start of the next season. Where change occurs during advance order season, all shipments thereafter must be at new prices except orders on hand, shipment of wliich can be completed within 30 days after the start of the consuming season. 4. No special terms, secret rebates, irregular credit exchanges or returns, advertising or other allowances of any nature whatever beyond the established prices and discounts, if any, for any class of trade shall be made. All so-called premiums when distributed with the Industry's merchandise shall be sold at cost plus handhng charges, and a minimum profit of 10%. 5. Violations of any schedule as filed with the Rubber Manu- facturers Association, Inc., as provided herein shall be deemed a violation of the Code of Fair Practice of the Rubber Footwear Industry and subject to such penalties as provided in the National Industrial Recovery Act. Section X — Enforcement of Code There shall be a committee representative of the Industry whose duty it shall be, in order to effectuate this Code in reference to alleged violation thereof, to investigate and inform the Administration on behalf of the Rubber Footwear Industry of any such violation. And all members of the Industry agree to open their records and corre- spondence to an auditor of the Rubber Manufacturers Association for the purpose of such investigation. Section XI — Alteration or Amendment of Code 1. Any addition, alteration, or amendment of this Code which has had the approval of 75% of the Footwear Industry's membersliip, providing such members shall represent at least 50% of the Foot- wear Industry's volume, shall be presented to the President of the United States or the proper Administrative Agency under him for approval, and if approved, shall become a part of tliis Code, effective as of the date of such approval. 2. In the event that any specific provision of tliis Code is declared invalid or unenforceable, all remaining provisions shall nevertheless continue in full force and effect, the same as if they had been separately and individually presented for approval and approved by the President of the United States. 3. As provided in Section 10 (b) of Title I of the National Industrial Recovery Act, the following provision is embodied in this Code: "The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under Title I of the National Industrial Recovery Act." o I'fllVERSITY OF Fl ORiDA lilillllllliiliiill 3 1262 08850 4476