Registry No. 1149—08 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE MACHINERY AND TOOLS INDUSTRY AS SUBMITTED ON AUGUST 31, 1933 Wl DO OUR PART The Code for the Machinery and Tools 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 Submitted by AMERICAN MACHINERY AND TOOLS INSTITUTE (ID PROPOSED CODE OF FAIR COMPETITION FOR THE MACHINERY AND TOOLS INDUSTRY Article I — Purpose This Code is set up for the purpose of increasing employment, establishing fair and adequate wages, effecting necessary reduction of hours, improving standards of labor, and eliminating unfair trade practices (etc.) to the end of rehabilitating the machinery and tools industry and enabling it to do its part toward establishing that balance of industries which is necessary to the restoration and maintenance of the highest practical degree of public welfare. It is the declared purpose of the machinery and tools industry and adherents to this Code to bring, insofar as may be practicable, the rates of wages paid within the machinery and tools industry to such levels as are necessary for the creation and maintenance of the highest practicable standard of living; to restore the income of enterprises within the industry to levels which will make possible the payment of such wages and avoid the further depletion and destruction of capital assets; and from time to time to revise the rates of wages in such manner as will currently reflect the equitable adjustment to variations in the cost of living. Article II — Participation Participation in this Code, and any subsequent revision of or addi- tion to the Code, shall be extended to any person, partnership, or corporation in the machinery and tools industry who accepts his share of the cost and responsibility, as well as the benefit, of such participation by becoming a member of the American Machinery and Tools Institute or any affiliated organization or by signing this Code. No initiation or entrance fees shall be charged, but there shall be dues levied as per the bylaws of the Institute and, or as, at least two thirds of the signers of this Code elect. Article III — Definitions 1. The machinery and tools industry is defined to include the design, manufacture, distribution, or operation of machinery and tools. 2. The term "member of the industry " means and includes any individual, either as an employer or employee, firm, or corporation engaged in work related to the design, manufacture, distribution, or operation of machinery or tools. 3. A machine shop is hereby defined to be a workshop in which machines are made or metal parts thereof are repaired, or where parts of machines, or tools, implements, gears, dies, screws, or any other metal articles are cut, filed, shaped, or repaired by means of a lathe or other machinery. 9932 — 33 (1) 4. The effective date as used here is defined as the eleventh day after this Code shall have been approved by the President of the United States. 5. The term " employers " shall mean all individuals, firms, or corporations who employ labor in the conduct of any branch of the machinery and tools industry as defined above. 6. The term " employees " shall mean all persons employed in the conduct of any branch of the machinery and tools industry as defined above. 7. The term " executive " shall mean any person who has super- vision of workers in the machinery and tools industry. 8. The term " designer " shall mean any person who has had the educational training and practical experience to qualify him to be recognized by employers and his coworkers as such. 9. The term " tool and diemaker " shall mean any person who has the practical experience and ability as recognized by employers and coworkers to produce tools and dies. 10. The term " all round machinist " shall mean any person who can make necessary mechanical calculations and set up and operate any machine in a machine shop. 11. The term " machine hand " shall mean any person who has specialized in the setting up and operating of any one or more of the different machines in a machine shop. 12. The term " semiskilled worker " shall mean any person who can operate punch presses, tapping machines, milling machines or any of the other machines in a machine shop after the machine has been set up for repetitive production. 13. The term " unskilled worker " or " common laborer " shall mean helpers, trucker, etc. 14. The term " apprentice " or " learner " is a young person over 16 years of age who has contracted with an employer to work for a definite length of time at a small compensation in return for instruc- tion in an art or trade. 15. The term " draftsman " shall mean any person who has the educational training and practical experience to be recognized by employers and his coworkers as such. Article IV — Administration Under Section 2 A of Title 1 of the National Recovery Act to further effectuate its policies, the Board of Directors of the Ameri- can Machinery and Tools Institute, the applicants herein, or such committee as may hereafter be constituted by the action of the American Machinery and Tools Institute is set up to cooperate with the Administrator and to administer this Code for the machinery and tools industry. The Board of Directors may from time to time present to the Administrator or the President recommendations based on conditions in the industry as they may develop from time to time which will tend to effectuate the operation of the provisions of this Code and the policy of the National Industrial Recovery Act. Article V — Labor In the formulation of the labor code of the machinery and tools industry the following general considerations are deemed basic and fundamental : 1. That it is desirable to raise the general level of wages to that of the 1926 level, computed on the basis of a weekly wage. 2. That it is desirable that the wage levels rise in advance of the rise of the cost of living, whereas the trend of wages lags behind the rising cost of living. 3. That the general wage level required adjustment with the cost of living index, and that it be adjusted to the region and locality in which it is operative. 4. That existing wage-rate differentials established by custom within the machinery and tools industry and between that industry and others are not equitable, and should be adjusted. 5. In the setting up of equitable differentials within the machinery and tools industry, the rates should be based on a scientific evalua- tion of skill, experience, risk, physical exertion, and responsibility. 6. The wages in the machinery and tools industry are broadly classified under the designations, common or unskilled labor, semi- skilled and skilled. 7. That the Board of Directors of the American Machinery and Tools Institute be empowered to set up equitable differentials within the industry and to represent the industry in the equalizing of rates between the machinery and tools industry and other industries. 8. The machinery and tools industry is opposed to the principle of paying labor on contract. Contract is defined as the payment of a piece rate without consideration of a minimum wage. The above principle is not intended to include the payment of equitable piece rates or premium and bonus payments in excess of the minimum wage. 9. Employees in the machinery and tools industry 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-organizations or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 10. No employee in the machinery and tools industry, and no one peeking employment therein, shall be required as a condition of em- ployment to join any company union or to refrain from joining a labor organization of his own choosing. 11. Employers of labor in the machinery and tools industry agree to comply with the maximum hours of labor, minimum rates of pay, and other working conditions approved or prescribed by the Presi- dent. 12. The maximum hours for each class of labor shall not exceed 40 hours per week with the exception of maintenance help and emer- gency workers who may work 48 hours in one week but his time shall not exceed an average of 40 hours per week for any period of six months. 13. Members of the machinery and tools industry shall not employ in or about their plants or shops any person under 16 years of age. 14. Apprentices or learners shall be paid: 1st year — ih$ per hour; 2nd year — 25^ per hour; 3rd year — 80% of the minimum wage, and shall be kept on production work for short periods only in order to become proficient in that particular kind of work. 15. The minimum rates of pay per hour shall be as follows for the following classifications : Common or unskilled labor $0. 40 Semiskilled labor . 45 Skilled labor: Machine hands ., . 60 Draftsmen and all round machinists . 75 Tool and diemakers . 85 Designers 1.00 Article VI — Production and Statistics It is the consensus of opinion of the applicants for this code that, owing to the varied products manufactured by members of the ma- chinery and tools industry and owing to the adoption of codes by manufacturers of specific products and owing to the production of all members of the industry falling under two general classifications, new work and service work for replacement parts or maintenance, it is not necessary in order to effectuate the policy of Title 1 of the National Industrial Recovery Act to make specific provision for con- trolling or regulating the volume of production in the industry other than that machinery hours shall not be more than 80 in any one week, except on service work in emergency cases in which event the hours worked shall be unlimited. Provisions shall be made for the collection of statistics regarding production or sales and other data in order to inform the President or the Administrator that the policy of Title 1 of the Act is being complied with. It is therefore recommended that adequate records be kept by the employer members of the machinery and tools indus- try in order that statistics on the conduct of their business in general so that periodic reports can be furnished the Board of Directors and statistics compiled which will serve to show that the provisions in this Code are being adhered to. Article VII — Unfair Practices For all purposes of the Code the following described acts shall' constitute unfair practices : 1. Estimating or selling below cost as defined by a representative committee of the members of this Code. 2. Making or promising to any purchaser or prospective purchaser of any product, or to any officer, employee, agent, or representative or any such purchaser or prospective purchaser, any bribe, gratuity, gift, or other payment or remuneration, directly or indirectly. 3. Procuring, otherwise than with the consent of any member of the Code, any information concerning the business of such member which is properly regarded by it as a trade secret or confidential within its organization, other than information relating to a viola- tion of any provision of the Code. 4. Imitating or simulating any design, style, mark, or brand used by any other member of the Code. 5. Cancelling in whole or in part, or permitting the cancellation in whole or in part of any contract of sale of any product, except for a fair consideration, or paying or allowing to any purchaser in connection with the sale of any product any rebate, commission, credit, discount, adjustment, or similar concession other than as is permitted by the Code and specified in the contract of sale. 6. Disseminating, publishing, or circulating any false or mislead- ing information relative to any product or price for any product or any member of the Code, or the credit standing or ability of any member thereof to perform any work or manufacture or produce any product, or to the conditions of employment among the employees of any member thereof. 7. Making or giving to any purchaser of any product any guar- anty or protection in any form against decline in the market price of such product. 8. Stating in the invoice of any product as the date thereof a date later than the date of the shipment of such product, or including in any invoice any product shipped on a date earlier than the date of such invoice. 9. Rendering to any purchaser of any product in or in connection with the sale of such product any service, unless fair compensation for such service shall be paid by such purchaser. 10. Any violation of any other provision of the Code, whether or not therein expressed to be such, or using or employing any practice not hereinabove in this List of Unfair Practices described which the Board of Directors by the affirmative vote of three fourths of the whole Board shall have declared to be a practice that would tend to defeat the policy of Title 1 of the National Industrial Recovery Act and, therefore, an unfair practice, and of which determination by such Board the Secretary shall have given notice to the members of the Code and to the President. 11. Lowering established piece rates without changing method of production. 12. Employing persons as undercover operators to secure informa- tion regarding processes, workers, or management either by employers in their own plant or competitors' plants. 13. Advertising for employees without specifically stating in the advertisement the terms of employment and the name of the advertiser. 14. The paying of executives less wages than those under their supervision. 15. Causing executives to work longer than the regular time period without paying them additional compensation therefor. The above unfair practices and all such other practices which shall be declared to be unfair practices by the Board of Directors as provided in paragraph 10, or by any amendment to the Code adopted and at the time in effect shall be deemed to be unfair methods of competition within the meaning of the Federal Trade Commission Act as amended, and the using or employing of them shall be deemed to be a violation of the Code, and any member of the Industry which shall directly or indirectly knowingly use or employ any of such unfair practices shall be guilty of a violation of the Code. Article VIII — Violations Violation by any member of the industry subject to the provisions of this Code of any provision of this Code, or any subsequent pro- vision or rule thereto, shall be subject to the penalties imposed by the National Industrial Recovery Act. Article IX — Estimating and Conditions of Sale In making estimates and terms of sale members of the industry shall abide by the following: 1. Quotations submitted shall not be changed under any condition. 2. Each quotation submitted shall include a fair and reasonable profit. 3. Wherein an estimate covers several units, a separate quotation for each unit shall be submitted. 4. Terms of sale shall be F.O.B. shipping point. 5. All quotations shall be subject to the approval of the home office. 6. Orders placed cannot be cancelled or deliveries held up except with seller's consent and upon terms which will indemnify him against all loss. 7. All quotations are based on customer accepting overruns or underruns, not exceeding 10% of quantity ordered, to be paid for or allowed pro rata. 8. Every effort will be made to fill orders within the time promised, but under no circumstances will the seller assume the responsibility for any damages growing out of or owing to any delays over which the seller has no control. Unless specifically stated to the contrary, quotations are made and orders are accepted for delivery as fast as manufactured, by partial shipment. 9. The seller will submit samples if requested for approval when commencing operation upon any order, but does so with the under- standing that his machines are to be run immediately after they are set correctly to customer's specifications, and he will assume respon- sibility for having the product in conformity with the original specifications during the period necessary in which to obtain cus- tomer's approval. Any change in specifications can be made only at customer's direction and expense. 10. The buyer must notify the seller of any claim for defective material, or material not as ordered, within 10 days from receipt of shipment. If such claim is sustained and material furnished is proved defective to satisfaction of both parties, the seller shall have the option in such an event of taking back the goods and deciding whether he shall repair, replace, or credit, but under no circumstancs will he allow or be liable for damages, or any claim for expense in- volved in using his product. Claims for shortage must be made within ten days from receipt of the goods, and in every case the weights found in the shipment must be given, and also the method used in arriving at a count of the parts. 11. All dimensions must be limited by a specified tolerance. When not specified by a customer it is understood that commercial toler- ances apply and that the work will be manufactured in the most economical manner. 12. Gauges are not included in estimated price unless especially stated. Where tolerances are closer than commercial limits or when dimensions cannot be readily gauged with micrometers, customer will be expected to furnish manufacturing gauges. Such gauges can be supplied by a seller at an extra charge. The seller does not guar- antee fits of any kind except where gauges are supplied. In speci- fying fits to gauges, it is advisable to mention whether wrench, finger, or commercial (free) fit is desired. 13. Quotations do not include 100% inspection unless especially stipulated. Although it is the intention to charge for only good work without a 100% inspection, delivery in this way cannot be guaranteed. It is therefore understood that such individual in- spection will be made by the customer at his expense and that only parts which have been proved defective by customer's individual inspection will be returned with a claim for credit or replacement at seller's option. 14. Charges for special tools to perform the service, or manufac- ture the product, do not convey ownership or the right to remove them from the seller's factory. 15. Seller is not responsible for drawings, samples, models, or gauges uncalled for within 30 days after execution of any order or quotation. 16. In ordering, the customer should state explicitly the method of shipment preferred and, in the absence of shipping directions, the seller will use discretion, forwarding by express or parcel post when packages are small and therefore liable to be lost in transit by freight. The seller assumes no responsibility for placing of valua- tions upon shipments unless specifically requested to do so by the customer. 17. Quotations covering the machining of buyer's material are sub- ject to charge if material furnished will not machine at speed and feed estimated. When the material is furnished by the buyer, the seller cannot guarantee to furnish more than 90% of the amount of the order and should be allowed a margin of 10% for possible spoilage of material. 18. Parts are made by the seller strictly to dimensional specifica- tions furnished by buyer. It is understood that seller is not to be held accountable for damages from infringement of letters patent by the use or sale of parts made by him either as such or as parts or units of complete entities. Any violation of the above shall be deemed a violation of this Code. Article X — Amendments 1. Pursuant to subsection (b) of Section 10 of the National Indus- trial Recovery Act, the President may from time to time cancel or 8 modify any order, approval, license, rule, or regulation issued under Title 1 of the National Industrial Recovery Act. 2. All amendments shall be proposed by the Board of Directors of the American Machinery and Tools Institute by a vote of the majority of the members thereof. Each amendment so proposed shall be submitted to the members of the Code which shall be called for such purpose. If at such meeting two thirds of the members vote in favor of such amendment, such amendment shall be submitted by the Board of Directors to the President, or Administrator for ap- proval, if approval thereof shall then be required by law, every such amendment shall take effect as a part of the Code upon the adoption thereof by the members of the Code and the approval of the Presi- dent if approval thereof by him shall be required. o " UNIVERSITY OF FLORIDA 3 1262 08855 7797