ber of postal workers actually working at an extra job totaled 124, and the wives of 96 were working at outside employment. This represents 89 percent of those surveyed who face the problem of buying homes and raising families on postal wages.

The summary of this survey is introduced herewith, as prepared by the postal workers, and the questionnaire forms completed in the survey are offered herewith, arranged in the groups noted on the

summary.

Extra job survey of Branch 111, Salt Lake City, Utah: Letter carriers working on extra jobs, 124 members; letter carriers-wives working outside employment, 96 members or 89 percent of the total. Letter carriers or wives who do not work extra, 24 members. Business and older carriers with families raised and homes paid for, 32 members. Letter carriers on vacation or sick leave, 30 members; letter carriers-regular substiutes, hourly wage, 63 members; letter carriers, temporary substitute, 6 members or a total of 375.

Now, I think this survey pretty well dispels the commonly held view that postal workers are overpaid. In addition, I wish to call your attention to the study of average weekly earnings made by the National Federation of Post Office Clerks.

An explanation of the first statement there about them being overpaid, I have had people actually tell me they thought they were overpaid and, of course, I have never subscribed to that view at all, but I think the survey made shows there could not be anything to that at all. Senator NEUBERGER. You think they are underpaid?

Senator WATKINS. Overpaid that is what people had told me. I do think they are underpaid, and I have come to that conclusion. In other words, I asked them for the evidence and they produced the evidence, just what it requires them to have in order to live, and I know many of these people personally. They are honest people and I do not think they are overestimating the situation in the least.

This study shows that the post office clerks have had only one modest salary increase since July 1951, and that their present average weekly earnings are now considerably below that of many occupational groups.

This study covers more than 30 occupational groups, most of which are receiving 200 percent or more than their 1939 average weekly wage. The postal clerks, by contrast, are receiving wages which represent an increase of only 103.8 percent above the 1939 average, the lowest percentage increase on this list of the major occupational groups in manufacturing industries.

I am sure that you gentlemen agree with me that our postal employees are solid citizens and competent and loyal employees of the Federal Government. A large proportion of the workers are veterans, and they have a high degree of participation in community affairs. I strongly urge that you give favorable consideration to this proposal for a justifiable wage adjustment.

I am not in favor of a general wage increase for Federal workers at this time, but I think that the postal workers have made a good case for the need of an adequate minimum living wage in the face of increased costs which have occurred since their last advance in 1951.

When we set the level of pay for these people, we must be sure that they have at least enough on which to live and I am of the firm opinion we should have a minimum wage as a floor under any worker who goes

into the Government. It ought to be high enough so they can live decently.

There are other reasons, without going into them now, why I do not think a general wage increase at this time would be wise for the sake of everybody, but I do believe these particular people are not receiving the minimum they should receive.

to

I thank you for this opportunity. I ask to be excused because I have go to the Judiciary Committee.

Senator NEUBERGER. Thank you, Senator.

Any questions, Senator Yarborough?

Senator YARBOROUGH. None.

Senator NEUBERGER. Mr. Kerlin?

Mr. KERLIN. None.

Senator YARBOROUGH. I thank Senator Watkins for taking the time to come and give us the benefit of the survey he has made personally. I know it will be valuable to the committee.

Senator WATKINS. I will leave this chart with you and these names and addresses and the evidence of the figures I have just given.

Senator YARBOROUGH. I suggest, Mr. Chairman, that counsel for the committee study them but they need not be printed with the record due to the volume.

Senator WATKINS. They should not be printed as there are too many.

Senator YARBOROUGH. Counsel can study them for the benefit of the committee.

(The documents referred to above are on file with the committee for reference purposes.)

Senator NEUBERGER. I think that is advisable use to make of them. I want to ask you one question, Senator Watkins. You said that you favored an increase in the postal pay to insure a living wage for these people but that you felt at this time, it was not advisable to have a general overall governmental salary increase. Do you think it is possible that in other departments as well as the Postal Department, there are situations which require upward adjustments?

Senator WATKINS. There may be. I have not seen the study of anything of the nature that I have just presented here for the postal clerks and letter carriers. When that study is made, it might appear others are in the same position. If that should be the case, I certainly would favor a minimum wage there.

Senator NEUBERGER. That is what I wanted to ask you.
Senator WATKINS. A living wage.

Senator NEUBERGER. That is what I wanted your opinion on. Thank you for coming.

Senator WATKINS. Thank you.

Senator NEUBERGER. Before we have our next witness, I want to put in the record a number of things I think are pertinent to some of the evidence which has been brought out during the course of these hearings.

Reference has been made on several occasions to the position of the administration that increases in pay should be related to increased productivity. As I stated in the beginning of these hearings, a Government which is either unable or unwilling to arrest the ever-incresing cost of living has a solemn obligation to its employees to see that

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their wages are adjusted upward as need be. However, if increased productivity is to be the sole yardstick, an instance has been called to my attention which supports the statements made by many witnesses who have appeared before this subcommittee to the effect that the efficiency and productivity of Federal employees is constantly improving.

The Honorable M. B. Folsom, Secretary of the Department of Health, Education, and Welfare in an official report relating to S. 1683 stated:

I share with you and your committee the objective of improving the effectiveness and efficiency of Government. We are making progress in this direction. In this Department the largest bureau-the Bureau of Old-Age and Survivors Insurance increased its productivity per employee between 1950 and 1956 by 35 percent. The productivity of other units in the Department is not so readily measured. I believe that if we continue to emphasize good management methods, good personnel methods, with adequate salaries and other appropriate incentives toward efficiency, we can move in a much more assured manner toward the objective of improved management than by placing an arbitrary ceiling on the total number of Government employees.

I feel that in this instance, the pay of these employees has not kept pace with their increased productivity and I think the statement of the Secretary should appear in the record.

I am also going to ask there appear in the record an article from the Washington Post and Times Herald, dated May 25, 1957, which is headlined "Consumer Price Rise Continues 14th Month," and I believe that, inasmuch as this indicates that the cost of living is continuing to accelerate, it is pertinent to appear in the record. (The article mentioned above is as follows:)

CONSUMER PRICE RISE CONTINUES 14TH MONTH-APRIL CLIMB 0.3 PERCENT; BLS PRICE INDEX SETS RECORD FOR 8TH TIME IN ROW

Consumer prices continued their 14-month upward climb in April with a jump of 0.3 percent. The price index, compiled by the Labor Department's Bureau of Labor Statistics, registered 119.3 last month, as compared with 100 for average prices in 1947-49.

The latest reading marks the eighth straight month in which the index has set a record. It now stands 3.8 percent above a year ago and 4.1 percent over February, 1956, when consumer costs began drifting higher.

FOOD COSTS SET PACE

Seasonally higher prices for meat, fruits and vegetables sparked a 0.5 percent food-price gain. This accounted for most of the April advance, BLS said, although the price of nearly everything else also increased.

In the Washington metropolitan area, April food prices averaged 0.3 percent above March and 4.7 percent over a year ago. Higher prices for beef, veal, chuck roast, pork, and leg of lamb made up the bulk of the local rises.

The new national index will bring pay boosts of 2 cents an hour to 1.4 million workers in autos, farm equipment and electrical machinery under escalating contracts, the BLS estimated. These increases will show up in the first June paychecks. Moreover, some 350,000 workers at General Motors Corp. will pick up an additional 6 cents an hour or 2.5 percent pay rise-whichever is greater. The corporation's contract with the United Auto Workers provides these yearly "improvement" stepups.

BLS Commissioner Ewan Clague predicted the so-called living-cost index for May would also be higher. "Most of the factors are pointed seasonally upward," he said.

Senator NEUBERGER. Our next witness today will be Mr. Tom Walters, operations director, Government Employees Council, AFL-CIO. We are glad to have you here.

STATEMENT OF TOM WALTERS, OPERATIONS DIRECTOR,
GOVERNMENT EMPLOYEES COUNCIL, AFL-CIO

Mr. WALTERS. Thank you, Mr. Chairman.

First of all, I would like to join with you and others in welcoming back to his usual position, our good friend, Bill Brawley. We are all delighted that he is now recouperated enough to assume part of his responsibilities at least.

Mr. BRAWLEY. This is all very embarrassing but very much appreciated. I am glad to be back in the thick of the fight.

Mr. WALTERS. First of all, we would like to express our thanks to you, Mr. Chairman, and to Senators Johnston and Langer for introduction of these bills and for you and the members of the committee taking time out to hold these hearings in order that the Federal and postal employee legislation can be considered by this Congress.

By way of introduction, my name is Thomas G. Walters, operations director of the Government Employees' Council, AFL-CIO, 100 Indiana Avenue NW., Washington, D. C.

The Government Employees' Council, AFL-CIO, is made up of 23 national and international unions whose membership, in whole or in part, are civil-service employees. The total Federal and postal employee membership of the Government Employees' Council is more than 600,000.

Mr. Chairman and members of the subcommittee, at the outset I would like to state that it is the unanimous opinion of the officers and delegates of the Government Employees' Council, AFL-CIO: "One pay increase for Federal and postal employees in 6 years ‘ain't' enough."

Mr. Chairman and members of the subcommittee, on behalf of the Government Employees' Council, AFL-CIO, I express the thanks and appreciation of our group to Senator Johnston and Senator Langer for the introduction of these bills effecting the financial welfare of postal and Federal workers. We likewise express our thanks and appreciation to Senator Johnston for naming this subcommittee, and we greatly appreciate the members of this subcommittee holding these hearings and giving our people the opportunity to appear and testify in support of this type of legislation.

In the Cordiner report, that we have heard referred to several times during these hearings, we find the following definition of a fair and decent salary:

Employees must receive sufficient compensation to enable them to establish and maintain a standard of living which will allow them to discharge their responsibilities to their families and to their employers.

I would like to add, "and to the society of which the employees are a part." In our considered opinion the vast majority of all Federal and postal employees do not receive a sufficient compensation to do these things ae referred to by the Cordiner report and the addition that I suggested. With the enactment into law of the provisions that are provided for in S. 27, S. 1326, S. 910 the Federal and postal employees affected would be in a reasonable position to establish and maintain a standard of living along with their neighbors and friends. During the past several months I have talked with thousands of Federal and postal employees and the vast majority of those that

I have talked with are forced to supplement their salaries from the Government by additional work on the outside, and a good percentage of their wives are forced to take employment in order to keep their grocery bills and other necessary expenses paid.

We hear a great deal about juvenile delinquency, and I am oldfashioned enough to believe that with mothers being compelled to work may contribute a great deal to child delinquency in this country.

To give you a concrete example of outside work, I recently drove into a service station on Wisconsin Avenue NW., and the man servicing my car recognized me and introduced himself as a postal clerk. Since then we have become acquainted and it develops that he has three boys and a girl. The oldest is 11 years of age. This post-office clerk is working 20 hours a week at the service station plus every other Sunday, plus his 40 hours per week in the post office, plus travel time to and from work, and you can readily understand that this father is almost a stranger to his wife and children. I am sure that we all agree that this man along with all other fathers should be spending some time with his children and especially his boys. I am confident that more than 50 percent of all Federal and postal employees are in one way or another being forced to supplement their salaries from the Government. I am confident that 30 to 35 percent of the wives are working outside the home.

I was interested to note, in answer to a question propounded by Senator Neuberger, Mr. Merriam, Assistant Director to the Bureau of the Budget, stated that the Bureau had not made a study of whether or not post-office and Federal employees were receiving a living wage, even though Mr. Merriam on behalf of the Budget Bureau opposed salary increases for Federal and postal employees. In my honest opinion if employees receive good wages and working conditions their morale is bolstered, their productivity improved, and will likewise over the long haul improve their health and thereby reduce sick leave. In all Federal agencies and the field service Post Office Department, a contented and satisfied group of employees will give better, quicker, and surer service. If people are worried they not only become ill but their productivity can be expected to decline. Over the years it would be economy for the Federal and postal service to pay adequate wages and to have good working conditions for this would not only lessen the cost of sick leave to a great degree but it would lessen the turnover that is now increasing day by day.

The very fact that examinations are announced and are continued indefinitely proves without a shadow of a doubt the difficulty the Federal Government is experiencing in finding new recruits and holding those that are now in the service. This question of turnover in the Federal and postal service is costly and also slows down the service and tends to keep unrest throughout the agencies and departments. With the small number standing the examinations it is reasonable to assume that Uncle Sam is not getting the cream of the crop of employees, and a poor employee entering the service today means a poor employee for the next 20, 30, or 40 years and an additional liability on the Federal Government.

The bills before this committee today and the ones that we are specifically endorsing, in my opinion, are not wholeheartedly classed as pay increases but simply as pay adjustments. Not since the early thirties has the Federal and postal employees' salaries kept pace with