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increase in "wages, salaries and other compensation" affected by this regulation shall be filed with the Wage Stabilization Board.

SEC. 6. Modifications and amendments. This regulation may be modified, amended or superseded by orders or regulations hereafter issued by the Wage Stabilization Board.

All other orders and directives of the Economic Stabilization Administrator, including General Order No. 3 of January 24, 1951, are hereby superseded to the extent that they are inconsistent herewith.

ERIC JOHNSTON, Economic Stabilization Administrator.

Issued: JANUARY 26, 1951.

WAGE STABILIZATION BOARD

GENERAL REGULATION No. 1

STATEMENT OF CONSIDERATIONS

This General Order is issued by the Wage Stabilization Board in discharge of its responsibilities under the provisions of the Defense Production Act of 1950, Executive Order 10161, General Order No. 3 and General Wage Stabilization Regulation 1 of the Economic Stabilization Administrator. It is designed to stabilize wages, salaries and other compensation and to effectuate the purposes and intent of said statute, orders, and regulation.

ORDER

In accordance with and pursuant to section 702 (e) of Title VII of the Defense Production Act of 1950, increases in wages, salaries or other compensation covered by General Wage Stabilization Regulation 1 of the Economic Stabilization Administrator, which require the prior approval or authorization of the Wage Stabilization Board, include increases in all forms of remuneration to employees by their employers for personal services, including, but not limited to,, vacation and holiday payments, night shift and other bonuses, incentive payments, year-end bonuses, employer contributions to or payments of insurance or welfare benefits, employer contributions to a pension fund or annuity, payments in kind, and premium overtime practices and rates.

Adopted unanimously by the WAGE STABILIZATION BOARD.

WASHINGTON, D. C., January 30, 1951.

CYRUS S. CHING, Chairman.

WAGE STABILIZATION BOARD

GENERAL REGULATION NO. 2

STATEMENT OF CONSIDERATIONS

This General Order is issued by the Wage Stabilization Board in discharge of its responsibilities under the provisions of the Defense Production Act of 1950, Executive Order 10161, General Order No. 3 and General Wage Stabilization Regulation 1 of the Economic Stabilization Administrator. It is designed to stabilize wages, salaries and other compensation and to effectuate the purposes and intent of said statute, orders, and regulation.

For the purpose of preparing itself for the discharge of its responsibilities, the Wage Stabilization Board heretofore distributed to representative labor and industry groups a series of questions, the answers to which would provide the Board with essential information for the development of wage stabilization policies. Thereafter, the Board conducted conferences which were attended by representatives of labor and industry, who presented their views respecting the development of wage stabilization policies. In the formulation of the provisions hereof there has thus been consultation with industry and labor representatives, including trade association and labor union representatives, and consideration has been given to their recommendations.

Collective bargaining conferences, arbitration proceedings and other proceedings directed to the resolution of wage questions were in progress prior to Janu

ary 25, 1951, the effective date of General Wage Stabilization Regulation 1. In some instances collective bargaining agreements were reached, wage determinations made and awards issued prior to the effective date of that regulation. In the interest of furthering and maintaining sound working relations including collective baragining and avoiding the imposition of inequities and hardships it is necessary and desirable to recognize and give effect to such agreements, determinations and awards applicable to work performed within a relatively short period of time after January 25, 1951, without prior approval of the Wage Stabilization Board.

ORDER

(a) Increases in wages, salaries, and other compensation agreed to in writing or determined and communicated to the employees on or before January 25, 1951, but which, by the terms of such agreement or determination, are to become applicable only to work performed later than fifteen (15) calendar days after January 25, 1951, require the prior approval or authorization of the Wage Stabilization Board.

(b) The Wage Stabilization Board hereby authorizes the payment of increases in wages, salaries, and other compensation provided for by written agreement executed on or before January 25, 1951, or formally determined and communicated to the employees on or before said date, which increases, by the terms of said agreement or communications, are to take effect and to be applicable to work performed after January 25, 1951, but not later than fifteen (15) calendar days after said date.

(c) The Wage Stabilization Board hereby authorizes the increases in wages, salaries, and other compensation resulting from the award or decision of an arbitrator or referee issued on or before January 25, 1951, which increases, by the terms of said award or decision, are to take effect and to be applicable to work performed after January 25, 1951, but not later than fifteen (15) calendar days after said date.

(d) Authorization is hereby granted also of payments pursuant to wage or salary increase agreements entered into and effective prior to January 25, 1951, calling for application of a fixed amount of payroll increase to accomplish intra-plant adjustments, but which adjustments were not actually reflected in wage or salary payments prior to that date because of the necessity for determining the allocation and method of application of such increases among different job classifications.

(e) In all instances in which increases in wages, salaries, and other compensation are placed in effect under the terms of paragraph (b) or (c) of this Regulation, copies of the agreement, award, or decision providing for such increases, or, if no agreement, award, or decision exists, a statement of the amounts and manner in which the determination was formally made and communicated to the employees, and the date or dates, and place or places, shall be filed with the Wage Stabilization Board on or before February 20, 1951. Adopted by the WAGE STABILIZATION BOARD.

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WAGE STABILIZATION BOARD

GENERAL REGULATION No. 3

STATEMENT OF CONSIDERATIONS

This General Order is issued by the Wage Stabilization Board in discharge of its responsibilities under the provisions of the Defense Production Act of 1950, Executive Order 10161, and General Order No. 3 and General Wage Stabilization Regulation 1 of the Economic Stabilization Agency. It is designed to stabilize wages, salaries and other compensation and to effectuate the purposes and intent of said statute, orders, and regulations.

For the purpose of preparing itself for the discharge of its responsibilities, the Wage Stabilization Board heretofore distributed to representative labor and industry groups a series of questions, the answers to which would provide the Board with essential information for the development of wage stabilization policies. Thereafter, the Board conducted conferences which were attended by representative groups of labor and industry, which presented their views respecting the development of wage stabilization policies. In the formulation of the provisions hereof there has thus been consultation with industry and labor representatives, including trade association and labor union representatives, and consideration has been given to their recommendations.

ORDER

Section 402, subdivision (d) (2) of the Defense Production Act of 1950 (Pub. Law 774, 81st Cong.) provides that "No action shall be taken under authority of this title with respect to wages, salaries, or other compensation which is inconsistent with the provisions of the Fair Labor Standards Act of 1938, as amended, or the Labor Management Relations Act, 1947, or any other law of the United States, or of any State, the District of Columbia, or any Territory or possession of the United States." Since statutes and orders of the duly constituted authorities acting under any Federal or State law fixing minimum rates for certain types of workers are consistent with the purposes and intent of the Fair Labor Standards Act of 1938, as amended, the Wage Stabilization Board hereby authorizes increases in wages, salaries, and other compensation to bring such wages, salaries and other compensation into compliance with the Fair Labor Standards Act of 1938, as amended, and such other statutes and orders establishing minimum rates of compensation.

Adopted unanimously by the WAGE STABILIZATION BOARD.

WASHINGTON, D. C., January 31, 1951.

WAGE STABILIZATION BOARD

GENERAL REGULATION No. 4

STATEMENT OF CONSIDERATIONS

This General Order is issued by the Wage Stabilization Board in discharge of its responsibilities under the provisions of the Defense Production Act of 1950, Executive Order 10161, General Order No. 3 and General Wage Stabilization Regulation 1 of the Economic Stabilization Agency. It is designed to stabilize wages, salaries, and other compensation and to effectuate the purposes and intent of said statute, orders, and regulation.

For the purpose of preparing itself for the discharge of its responsibilities. the Wage Stabilization Board heretofore distributed to representative labor and industry groups a series of questions, the answers to which would provide the Board with essential information for the development of wage stabilization policies. Thereafter, the Board conducted conferences which were attended by representative groups of labor and industry, which presented their views respecting the development of wage stabilization policies. In the formulation of the provisions hereof there has thus been consultation with industry and labor representatives, including trade association and labor union representatives, and consideration has been given to their recommendations.

ORDER

(a) Increases in the wages, salaries, and other compensation of state, county, municipal and other non-federal governmental employees, whose wages, salaries and other compensation are fixed by statute, ordinance, or regulation of duly constituted authorities of such governmental bodies, may be made without the prior authorization of the Wage Stabilization Board, subject to the provisions of paragraphs (b) and (c) hereof.

(b) State, county, municipal and other non-federal governments and agencies thereof, in making increases in wages, salaries, and other compensation of their employees, are expected to conform to the national wage stabilization policy as expressed in the Defense Production Act of 1950, Executive Order 10161, General Wage Stabilization Regulation 1 issued by the Economic Stabilization Administrator on January 26, 1951, the General Regulations and statements of policy issued the Wage Stabilization Board pursuant thereto, and such orders or regulations as may from time to time be issued thereunder or in connection therewith.

(c) The Wage Stabilization Board reserves the right to review increases made under the terms of paragraph (a) hereof, and to revoke or modify such increases when required in order to effectuate the policies of the Defense Production Act and the applicable orders or regulations issued thereunder or in connection therewith.

Unanimously adopted by the WAGE STABILIZATION BOARD.

WASHINGTON, D. C., January 31, 1951.

CYRUS S. CHING, Chairman.

GWR 5, REV.

INCL. AMDT. 1

JULY 27, 1951

WAGE STABILIZATION BOARD
Washington

TITLE 32A-NATIONAL DEFENSE, APPENDIX

CHAPTER IV-WAGE STABILIZATION BOARD, ECONOMIC STABILIZATION AGENCY [General Wage Regulation 5, Revised]

GWR 5-ADJUSTMENTS FOR INDIVIDUAL EMPLOYEES

Pursuant to the Defense Production Act of 1950 (Pub. Law 774, 81st Congress, Pub. Law 69, 82nd Congress), Executive Order 10161 (15 F. R. 6105), Executive Order 10233 (16 F. R. 3503), and General Order No. 3, Economic Stabilization Administrator (16 F. R. 739), General Wage Regulation No. 5 is hereby revised.

STATEMENT OF CONSIDERATIONS

The purpose of this General Wage Regulation is to establish rules and procedures governing the administration of wage and salary structures within which increases in the compensation of individual employees may be made without specific approval of the Wage Stabilization Board.

These increases do not ordinarily affect the general level of an establishment's wages and salaries. In fact, these individual employee adjustments, when properly made, do not normally increase labor costs.

The Wage Stabilization Board recognizes the necessity of permitting the administration of existing wage and salary structures to continue in a normal manner with a minimum of governmental interference. At the same time, however, it is necessary to make certain that these wage and salary "housekeeping" practices are not abused in order to pirate labor nor cumulated so as to amount to general wage or salary increases.

Consequently, this regulation has been devised so as to provide broad limitations to safeguard the ends of stabilization while leaving maximum flexibility to employers and employees.

There is wide diversity of practice with respect to rate adjustments for individual employees. In some cases, formal written plans have been established which include jobs or job classifications grouped into labor and salary grades with prescribed rate ranges and procedures governing the timing and amount of individual adjustments. In others, there are plans of classification which do not formalize the individual adjustments. Some establishments have plans, either written out or established through years of practice, wherein single rates are paid for jobs and labor grades, and which do not contemplate any individual adjustments, prefering to pay all employees in the occupation or labor grade alike. Another, and very large group of establishments, has followed the prac tice of giving increases to individual employees on the basis of their merit or length of service and has not created written or formal schedules of rates or rate ranges. Often this type of establishment has so few employees in its various occupations and labor or salary grades that a formal policy would be meaningless. This regulation has been designed to permit past practices and policies, when not in contradiction to the purposes of the Defense Production Act of 1950, to continue with a minimum of interference and administrative work.

The Wage Stabilization Board recognizes nevertheless the possibility that the application of this regulation may for particular establishments or industries result in substantial hardship or inequity. In such cases, the Board will give consideration to requests for approval of plans which do not meet the requirements of this Regulation.

This regulation replaces General Wage Regulation No. 5, as amended, which was issued as a temporary regulation on February 12, 1951. The Board has adopted this regulation as a result of a thorough study of the operation of that regulation and has consulted with representatives of labor and industry. In the formulation of this regulation, due consideration has been given to the standards and procedures set forth in Title IV and Title VII of the Defense Production Act of 1950.

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AUTHORITY: Sections 1 through 10 issued under sec. 704, Pub. Law 774, 81st Cong., Pub. Law 69, 82nd Cong. Interpret or apply Title IV, Pub. Law 774, 81st Cong.; E. O. 10161, 15 F. R. 6105, 3 CFR, 1950 Supp.; E. O. 10233, 16 F. R. 3503.

SECTION 1. Definitions. As used in this regulation, the term:

(a) "Rates paid on January 25, 1951" includes rates revised by reason of wage or salary increases put into effect thereafter in accordance with regulations or rulings of the Wage Stabilization Board.

(b) "Group" means all the employees in a bargaining unit, plant or other establishment, department,, job classification, labor or salary grade, wage rate or salary level, or other group of employees whichever the employer has treated as a unit in the administration of his wage and salary schedules or practices. The term excludes temporary and part-time employees, learners, trainees, and probationers.

(c) "Straight-time rates" for purposes of this regulation mean wages or salaries paid per hour, day, week, month or other time unit exclusive of overtime, or other penalty or premium rates and exclusive of vation pay, holiday pay, year-end bonus and other fringe benefits, but including incentives, production bonus or other similar payments.

(d) "Established rate range" means a range of rates for a job or job classification with clearly designated minimum and maximum rates or which are established by specific formula contained in a written schedule in effect on January 25, 1951, or which is subsequently established in accordance with the provisions of section 2 (b) of this regulation.

(e) "Rate range method of payment" for a group means a range of rates for each job, labor or salary grade with the specific rate for individual employees within the range determined by merit, length of service, or by a combination of the two. Each range is defined by a minimum and a maximum rate and may be expressed as the spread between the two, or it may be expressed by a series of specific rates between the minimum and maximum.

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