RELATING TO LABOR PRACTICES OF EMPLOYERS OF LABOR IN THE SHIPBUILDING INDUSTRY TUESDAY, AUGUST 20, 1935 HOUSE OF REPRESENTATIVES, The subcommittee this day met at 10:30 a. m., Hon. Glenn Griswold presiding, for further consideration of House Joint Resolution 331. STATEMENT OF CAPT. HENRY L. WYMAN, UNITED STATES NAVY Mr. GRISWOLD. The committee will please be in order. We have with us this morning Captain Wyman and Mr. Marcantonio wishes to ask him some questions, I think. Mr. MARCANTONIO. Yes. Captain Wyman, for the last week negotiations have taken place between the Navy Department, the Department of Labor, officials of the union of the Shipbuilders' Union and officials of the New York Shipbuilding Corporation; is that correct? Captain WYMAN. That is correct. Mr. MARCANTONIO. Will you, if you can, give us a statement of what took place during those negotiations and what stage has been reached? Captain WYMAN. Yes. On Wednesday, August 14, the Navy Department was informed by the Department of Labor that members of the negotiating committee representing the employees of the New York Shipbuilding Corporation were en route to Washington, would arrive here in the early evening, and that the Secretary of Labor would receive them. The Secretary of Labor requested that the Navy Department be represented at the conference. This conference was so held. Appearing as representatives of the employees were Messrs. John Green, David Cole, John Diehl, and Francis McCann. The outstanding purpose of the conference was discussion of the proposed arbitration by an impratial board to be appointed by the President of the United States, and particularly in relation thereto, the various points to be submitted to this arbitration board. Mr. Green acted as chief spokesman for the committee. He emphatically announced that no question as to union recognition could be permitted; that recognition must be acknowledged by the corporation; and further, that the union would not permit submission for determination by the arbitration board the question of "Who are the representatives of the employees for the purpose of collective bargaining, in accordance, so far as possible, with the provisions of section 9 (a) of the National Labor Relations Act, Public, 198, Seventy-fourth Congress?" Considerable discussion followed on that point. Other points were then discussed, including the elimination of the preferential shop, the strike to be called off immediately upon the appointment of the impartial board, upon resumption of work the corporation, pending new agreement with its employees, to operate in every respect in accordance with the provisions of the expired agreement of May 11, 1934, excepting that with respect to section 4 of the expired agreement relating to arbitration. That referred to internal arbitration provided in the old agreement. Mr. Green stated under these conditions the corporation must be called upon to further agree that with the old arbitration board eliminated, matters formerly subject to it should become subject for arbitration by the Presidential board during its existence. There was also discussed at length the matter of filling vacant or new positions. With the elimination of the preferential shop, the committee stated that the corporation should agree that it would not fill vacancies or new positions with other persons so long as employees who have been employed since August 1, 1933, are available, competent, and willing to accept the said positions. With this provision, the union would agree that no other question of preference would be presented to the Camden Board of Voluntary Arbitration. The Assistant Secretary of the Navy, who attended this conference, informed the conference that Mr. Metten, the president of the New York Shipbuilding Corporation, would arrive in Washington the following morning and that the points raised would be discussed with him. It was planned that the agreements for the arbitration should be drafted by the Government, represented by the Secretary of the Navy and the Secretary of Labor, in the form of a joint letter to the corporation and to the negotiating committee, setting forth, for their acceptances, the basis on which both parties were being requested by the Government to accept arbitration by the impartial board, and with the understanding that immediately upon acceptance thereof by the two parties, Executive order for the board would be issued. A copy of this proposed joint letter was drawn and delivered to Mr. Green that evening for the further consideration of the union committee. Mr. MARCANTONIO. Have you a copy of that proposed joint letter? Captain WYMAN. I have. Mr. MARCANTONIO. May we have it for inclusion in the record? Captain WYMAN. Shall I put it in now, or shall I go on and do so later? Mr. MARCANTONIO. Just as you please. Suit your own conveni ence. Captain WYMAN. Then, I shall come back to that. Mr. Metten, president of the New York Shipbuilding Corporation, reached the Navy Department at 9:30 a. m., Thursday morning, was informed of the conference of the preceding evening, and the proposed draft was shown to him He then accompanied the Assistant Secretary of the Navy to the Department of Labor, where another conference took place, the Secretary of Labor presiding. The points raised and discussed at the meeting of the previous even ng were brought out. Mr. Metten refused to commit himself for the corporation upon any of the issues raised by the union committee, stating that necessari y he must confer with other officials of the corporation who had handled and were familiar with details with which he was not. Following the conclusion of this conference, about 1:30 p. m., Mr Metten advised that he had ascertained by telephone that the officials with whom he desired to communicate were scattered for the day and that it would be impossible for him to get them to Washington that day, but that all would be on hand the following morning by 9:30 o'clock. We tried to get Mr. Metten to bring his people right down, so that they could go ahead at once. On Friday, August 16, 1935, Mr. Metten telephoned from Philadelphia that he regretted that he had become indisposed and that he could not come to Washington that day, but that Mr. Kaltwasser, the executive vice president, and Mr. Campbell, general manager, would arrive and would represent the corporation. Conferences opened in the Department of Labor, with Mr. Kaltwasser and Mr. Campbell present. The union representatives also were present as before. The Secretary of Labor presided. Mr. Kaltwasser asked that the discussion open by commencing with the first point of the proposed plan for arbitration to be agreed to by both parties, namely, determination of the representatives of the employees for the purpose of collective bargaining, which the corporation insisted should remain as point no. 1 to be passed upon by the proposed Camden board of voluntary arbitration. The union representatives adhered to their stand that this point must be eliminated. The Secretary of Labor suggested that the conference proceed to discuss the other points of the proposed plan, point no. 1 to be returned to later. Mr. Kaltwasser refused to do this and maintained that as spokesman for the corporation he would not discuss any other points until point no. 1 was decided. This brought on the deadlock. At the suggestion of Mr. Kerwin, Chief of the Conciliation Service of the Department of Labor, a proposal to present the entire agreement for arbitration in general terms was rejected by the representatives of the corporation. The conference temporarily broke up, the committee withdrawing to another room with Mr. Kerwin, head of the Conciliation Service of the Department of Labor, and Mr. Chappell, a Department of Labor conciliator. Conversation proceeded with the representatives of the corporation and Mr. Wyzanski, Solicitor of the Department of Labor, and Captain Wyman, Navy Department. The possibility was suggested of leaving the issue in regard to point no. 1 on the basis of its being one which was really of concern only in connection with the awards of the proposed board and the drawing of the new agreement, to follow the awards, and that, therefore, instead of appearing as point no. 1, it might appropriately be incorporated under somewhat different language in a different place. This idea was separately presented to the representatives of the union and was rejected. The Assistant Secretary of the Navy arrived and sought to break the deadlock, but without avail. About 6 p. m., Friday, the proceedings rested, with the representatives of the corporation leaving to return home, and announcement by the Solicitor of the Department of Labor, in the absence of the Secretary, that the conference was adjourned for the week-end. Saturday, August 17, Captain Wyman visited Mr. Kerwin in the Department of Labor. There he met Mr. Kerwin, Mr. Green, Mr. Cole, and Mr. Wyzanski. There was informal discussion over the deadlock. The Solicitor suggested to the union representatives that they return to Camden with the possibility of their referring the question of point no. 1 to the membership. Mr. Green did not acquiesce as to this, but he and Mr. Cole decided they would return home for the week-end, but with the request that negotiations be further resumed Monday morning, August 19, to make further efforts for an agreement in regard to point no. 1, Mr. Green, however, maintaining that he still felt that he could not accede to this item coming before the arbitration board. I failed to reach Mr. Kaltwasser on Saturday, but did so on Sunday, August 18, and communicated to him the desire of the union representatives for a continuance of the conference on Monday, to which Mr. Kaltwasser replied that the corporation had addressed a communication to the Acting Secretary of the Navy setting forth its position at length, which communication should reach the Navy Department Monday morning; further, that other engagements would prevent him from appearing in Washington Monday; that the corporation would not make any appearance on Monday. The letter was duly received in the Navy Department on Monday morning. There were various drafts of a proposed Government letter, because it was felt that we did not want to send out this letter unless both sides understood it in advance and there was assurance it would be agreed to. Mr. SCHNEIDER. Is that the letter carrying the proposed settlement? Captain WYMAN. Yes. The letter was addressed to Mr. Metten and to Mr. Thomas Gallagher. The basis of the letter is as follows: GENTLEMAN: As you both are already aware, in order that the labor dispute at the Camden, N. J., yard of the New York Shipbuilding Corporation may be brought to settlement, the President of the United States has contemplated appointing a board of arbitrators to consist of three members to impartially investigate, hear evidence, and make findings of facts and formulate arbitration awards. Appointment of this impartial board is premised on agreement both by the New York Shipbuilding Corporation and the negotiating committee of Local No. 1, Industrial Union of Marine and Shipbuilding Workers of America, to accept arbitration as above and to abide by any and all awards of this board with respect to the following issues now in dispute. Then follows in the various drafts of the letter certain issues. First was the matter of determination by the board of "who are the representatives of the employees for the purpose of collective bargaining, in accordance, so far as possible, with the provisions of section 9 (a) of the National Labor Relations Act." The workers' representatives decided to have that eliminated. Second, was the matter of piecework or of incentive work; third, the matter of adjustment of wages; fourth, matters relating to employment and working conditions which have been in dispute in connection with the renewal of the agreement, between the parties, of May 11, 1934; and, fifth, miscellaneous questions which have been the source of dispute in connection with the recent stoppage of work at the Camden, N. J., yard of the New York Shipbuilding Corporation. Further premises for the creation of the "Camden Board of Voluntary Arbitration" to investigate, hear evidence, make findings of fact, and formulate arbitration awards with respect to the above issues are: (a) That the New York Shipbuilding Corporation on the one hand shall agree that all of the employees upon the pay roll on May 11, 1935, will upon their application, be taken back without discrimination and under the same hours, wages, and work ing conditions as prevailed when the strike commenced, and that the corporation will, pending a new agreement with the employees, operate the plant in every respect in accordance with the provisions of the expired agreement of May 11, 1934, except that while the Camden Board of Voluntary Arbitration is in existence questions which are not settled by the employees, stewards, foremen, general manager, or vice president as provided in section 3 of said agreement of May 11, 1934, shall be referred for arbitration to said Camden Board of Voluntary Arbitration and no other board such as is contemplated in section 4 of said agreement of May 11, 1934, shall be created or shall arbitrate such questions; (b) on its part, Local No. 1, Industrial Union of Marine and Shipbuilding Workers of America, shall promise and agree to immediately terminate the strike now in existence upon issue of the Executive order establishing the Camden Board of Voluntary Arbitration; (c) the company on its part agrees that it will not fill any vacant or new positions with other persons so long as employees who have been employed since August 1, 1933, are available, are competent, and willing to accept the said positions; and the union on its part agrees that, notwithstanding the general language of points 4 and 5 above, it will present no other question of preference to the Camden Board of Voluntary Arbitration. It is to be further agreed by the corporation and by Local No. 1, Industrial Union of Marine and Shipbuilding Workers of America, that as a result of the findings and awards of the Camden Board of Voluntary Arbitration, a new operating agreement, retroactive to the date of resumption of work, will be made by the corporation and the employees through their accredited representatives in conformity with such awards. The Camden Board of Voluntary Arbitration will be directed to render its awards not later than 60 days from the date of its creation and as much earlier as possible. There were minor changes. It is understood, of course, that this letter was not signed. It is the basis for these negotiations only. Mr. MARCANTONIO. Copies of that proposed agreement were given to representatives of the workers and to Mr. Metten, I believe. Captain WYMAN. Yes, and they were presented with proposed modifications. Mr. MARCANTONIO. And the union officials reported to the Navy Department and the Department of Labor that the proposals were satisfactory; is that not right? Captain WYMAN. No; the union officials demanded elimination of point no. 1, concerning the matter of representatives of the workers. Mr. GRISWOLD. What about the corporation? Captain WYMAN. The corporation, on the other hand, demanded the retention of point no. 1 as essential to their further proceeding with the discussion. Mr. MARCANTONIO. Read point no. 1 again, please. Captain WYMAN (reading): Determination of who are the representatives of the employees for the purpose of collective bargaining under section 9 (a) of the National Labor Relations Act. Mr. MARCANTONIO. I have here [indicating] the proposal submitted to the men. It is undated. Captain WYMAN. Yes. I have read to you the consensus of these different drafts of the proposed agreement. Mr. MARCANTONIO. And a final draft was drawn up. Captain WYMAN. Yes. Mr. MARCANTONIO. I will show you a copy given to Mr. Green, and ask you whether it is true. |