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But let us look at the plans themselves, the much publicized Chrysler Motors plan for employee representation, for instance. Mr. W. P. Chrysler "sold" this plan to his men with a long letter. Here is a telling paragraph:

I have enough confidence in the fairness of men to believe that when they know the facts and have an equal voice in deciding matters that concern them they will come to decisions that are fair and reasonable. It is for that purpose that I am proposing for your consideration a plan of employees' representation in our plants. This plan is described in a leaflet which each one of you will receive.

This plan sets out as its purposes:

This is a plan which provides an opportunity for the employees to have an equal voice with the management in deciding jointly all matters affecting wages and working conditions.

Now, how do the employees exercise that equal voice? There is no provision for the employee representatives to meet alone; they must meet with an equal number of management representatives appointed by the management in a joint council established in each of nine divisions of the company, or in joint committees of the council. All shop employees on the pay roll on the day of election are entitled to vote; they must, however, select as their representatives persons who are at least 21 years of age, United States citizens, are employed in the same election district of the shop, and have worked for the company 1 year. Otherwise, they vote for representatives of the workers' own choosing.

Now, suppose these Chrysler employees wished to elect some friend not employed in the Chrysler motor plant as their representative to meet with the management and present their grievances, as we understand they have a right to do under the provisions of the National Recovery Act, they are prohibited from doing so because of these limitations placed upon the selection of representatives.

Nominations (by secret ballot) and elections (from the two receiving the highest vote on the nomination ballot) are conducted by the employees themselves in accordance with the rules and regulations laid down by the joint conference (employees and management and with only such assistance from management as may be requested. A labor union for collective bargaining, between employees' representatives and management! It contravenes absolutely all the principles and provisions of the National Recovery Act.

These chosen representatives of the employees "shall be deemed to have vacated their office" upon severance of relations with the company, upon transfer from one voting district to another, upon appointment to supervisory position, or upon being absent for more than two consecutive meetings of the joint council or a joint committee unless such absence has been excused by the chairman of the meeting. This seems to be ample provision for disposing of any "troublemaker" among the representatives.

As in the steel company plans, the company appoints a special representative, known as "management's special representative whose duty it is to keep in touch with both the employee represen tatives and the management and who represents the management in negotiation with such representatives.

This management's special representative acts as chairman of the joint council, but has no vote.

Employee representatives and management representatives have equal voting power. A two-thirds vote is necessary to decide any question. Obviously, then, the employee representatives could be blocked in any action which they initiated. But, as if that were not enough, the constitution provides as follows:

To preserve the equal voice of employees and management at meetings of the joint council or its committees at which a quorum is present both employee representatives and management representatives shall be entitled to cast an equal number of votes.

The company provides "suitable meeting places for meetings of the joint council and its committees at its expense". Imagine the task of a plaintiff in a case when his lawyer is paid by the defendant. What chance has he to win?

Senator WAGNER. Mr. Green, I suppose the American Federation of Labor would object if in their conventions they could not pass any resolution affecting any economic situation, or their rights as workers unless that resolution both received the approval of the employers?

Mr. GREEN. Why, certainly. It is ridiculous, absurd, and yet that is in their representation plan. You have developed a perfect anology. That brings it out exactly. The company providessuitable meeting places for meetings of the joint council and its committees at its expense, and employees serving as members of the joint council or its com-mittees receive their regular average pay from the company for the time actually spent in serving on the council or the committee.

The route outlined for the adjustment of any matter which in the opinion of any employee of the company requires adjustment is: (1) To the foreman in charge of the work;

(2) To the employee representative of his voting district who takes it up again with the foreman;

(3) To the management's special representative, who will help the employee representative and the foreman prepare a joint statement to be taken up with

(4) The foreman's superior officers;

(5) To the joint council who may call the employee before it to give information regarding the matter under consideration and may go in a body with the management's special representative to any part of the plant to make an investigation "after making arrangements for so doing with the management's special representative." After complete investigation and full discussion, the joint council votes. The employees representatives and the management's representatives have equal voting power and a two-thirds vote is necessary to reach a decision. If a decision is not reached by the joint council at the second meeting following the meeting at which the case was first brought up, the matter goes

(6) To the president of the company, who may confer with the joint council or any committee or any group of employee representatives. Within 10 days he must propose a settlement or refer the matter to

(7) Arbitration; this consists of an employee representative selected by the employee members of the joint council, the president himself, and an impartial and disinterested arbitrator selected by these two. If the president and the employees' representative cannot agree upon an arbitrator, each selects one. If these two arbitrators agree, their

decision is final. If they do not agree within 20 days, they select and call in a third arbitrator, and a decision of a majority of these three shall be binding in the matter.

It has been estimated by an officer of the compliance division of the W.R.A. that this procedure would occupy at least 100 days after the employee originally presented a matter for adjustment. Note, too, that at every stage of the procedure representatives of management are present, exercising that subtle control over decisions which is inherent in the power to pay and the power to discharge.

Senator DAVIS. From hearing the statements that you are making, Mr. Green, I take it for granted you are opposing that form of collective bargaining?

Mr. GREEN. Senator, I could be arrested for what I think about it and for what I would like to say about it.

The Nash plan in Kenosha, Wis., is exactly like the Chrysler plan, and the Nash plant is closed down today just as tight as it is possible to close a plant, where they had their company union plan in effect.

Mr. Nash, like Mr. Chrysler, sent a letter to the employees to sell this plan to the men. It is a long, 2-page letter with many of the same paragraphs as the Chrysler letter, but a more persuasive beginning and ending. The letter begins:

Having earned my living by working in the factory in my earlier days, I believe puts me in a position to better understand the workmen's problems than the average person.

and ends:

After familiarizing yourself with the proposed plan, I hope your decision will be to vote "yes." I am positive that if I were again at the bench in the factory and had an opportunity to join in this plan I should most certainly vote "yes." I shall file a copy of the whole letter for the record if you wish it. The CHAIRMAN. Very well, Mr. Green.

Mr. GREEN. Here it is.

(The letter referred to by Mr. Green is as follows:)

To all Nash factory employees:

THE NASH MOTORS CO., KENOSHA, Wis., October 26, 1933.

Having earned my living by working in the factory in my earlier days, I believe puts me in a position to better understand the workmen's problems than the average person; and in these days of unusual conditions, when there is possibility of misunderstanding and misrepresentation on matters of joint interest to you and the Nash Motors Co., I feel it important that you should know the truth at all times about everything concerning your welfare and happiness and your relations with the company.

I am proud of the cordial and friendly relations having always existed between our company and its employees, and I am very anxious that the same shall continue.

I would not be fair to you if I did not see to it that you got the real facts, and therefore, I am now proposing a plan which I believe will serve to do that thing and give you and the company a chance to sit down together and discuss and decide matters of mutual interest to all of us. I always have believed that if we could do this in a spirit of friendly understanding and confidence in each other, we would accomplish a great step forward in promoting and maintaining the kind of relationship we all want in this industry.

It seems to me that this company has now reached such a degree of understanding and mutual respect between employees and management that we can consider together practical means of giving effect to a plan which I believe will assure lasting cooperation, goodwill, and prompt, fair settlement of any questions that may arise.

I have sufficient confidence in the fairness of men to believe that when they know the facts and have an equal voice in deciding matters concerning them that they will come to decisions that are fair and reasonable.

It is for that purpose that I am proposing for your consideration a plan of employees' representation in our plants. This plan is described in a leaflet which each one of you will receive. I ask you to read it carefully, to study its mutual advantages, and then decide by secret ballot whether or not you want to adopt it.

You will find that this plan enables the individual employee to get a fair and prompt hearing by his supervisors, and if he cannot get a satisfactory settlenent from them, then a review by joint council to which his fellow employees have an equal say with the management in disposing of the case.

The whole purpose of the plan is to promote such a relationship in our plant as to assure employees a square deal and encourage their willing cooperation in advancing the company whose interests concern every one of us.

Read the plan carefully. I am going to ask you to vote "yes" or "no" whether you want it.

In order that this election may be held under employees' auspices, entirely independent from management, the Ke-Nash-A Club, which as you know is an organization of the employees themselves, and has their confidence, has kindly consented to conduct election on the plan. If the plan is adopted, the first election of employees' representatives under the plan will also be conducted by that club. The elections thereafter will be conducted by the joint council. If the majority of the employees say "yes" the plan will be put into effect and you will have an opportunity to nominate and elect representatives to deal with the management on an equal basis in discussing all questions that may arise. This plan is a simple and clear method whereby we can mutually consider as equals all questions that vitally concern us in our relations with each other. In offering this plan, I want it distinctly understood that every employee, regardless of his membership or nonmembership in any organization, has a right to participate in it.

After familiarizing yourself with the proposed plan, I hope your decision will be to vote "yes. I am positive that if I were again working at the bench in the factory and had an opportunity to join in this plan, I should most certainly vote "yes".

Respectfully,

C. W. NASH.

The Packard Motor Car Co. amended an oil aid association by having its employees vote on an additional R or representation membership. All employees of the company are eligible for this representation membership, but only those who have been on the pay rolls for 60 days may vote for representatives. The separate aid membership is concerned with insurance. The plan adopted by the Packard Co. is quite similar to the plan of the steel companies with a joint council and special committees. The plan is limited in that "The rules committee shall act only in matters especially provided for therein." This plan-printed in a blue booklet-was adopted in Detroit on September 22, 1933. Then the same plan was printed in a salmoncolored booklet for the seven plants in the vicinity of New York City. Pasted on the Detroit booklet was a statement:

It is your privilege to go to your unit voting place in

department, on

afternoon on company time to apply for "R" membership and nominate candidates for representatives of your unit.

The Packard plan has an elaborate provision for guaranteeing the independence of representatives:

Representatives shall be free to discharge their duties in an independent manner without fear that their individual relations with the company shall be affected in the least degree by any action taken by them in good faith in their representative capacity. To insure this result a representative shall have the right to take the question of an alleged personal discrimination against him, on

account of his acts in his representative capacity, to the management representative, to the joint general committee, and to the president of the company.

A representative, having exercised his right in the consecutive order indicated in the next preceding paragraph and failing a satisfactory remedy for such alleged discrimination, shall have the further right to appeal to the Administrator of the National Recovery Administration or his designee. The company will furnish said Administrator with every facility for the determination of the facts, and his findings and recommendations shall be final and binding.

It will be observed that this refers to the workers' individual rights, and that it does not include the time-honored shiboleth in company unions that there shall be no discrimination because of union membership.

The General Motors plants have adopted employee associations. The Pontiac plan may be examined as a sample. This provides for voluntary membership of all employees of the manufacturing department; that is, voluntary for all employees 21 years or more, with at least 90 days of service and at least first papers. These employees choose their representatives from among the members of their own division with at least 1 year's service. They meet alone, but the factory manager must be notified of all meetings. Management is present only when requested. The meeting place is established by the works council subject to the approval of the plant manager. The company pays the representatives their regular earned rate, prints the ballots for elections, and elections are held on company time. In addition, the company will furnish a stenographer for any meeting on request.

The plan emphasizes that membership is voluntary, but it provides that only members of the employees association have the right to make a complaint to the works council with reference to wages, hours of labor, working conditions, or other appropriate subjects. Only members have a right to take out insurance and to participate in the company savings and investment plans.

There is a feature that I wish might be developed and considered in detail. Along with their company union plans in many instances they set up their group insurance plan and their death benefit plan. and, I think, in some cases, unemployment benefit plans, and they provide that members of this company union only will have a right to participate in the group insurance plans, death benefit plans, and so forth. In other words, they offer an inducement to the workers to come into their company union, and say that he cannot be a beneficiary under these plans otherwise. Then it specifically provides that only members of the employees association have the right to make a complaint to the workers council. If a man refuses to join their com pany union he cannot take up a grievance; he is out.

In cases of disagreement, appeal is possible all the way up to the general management of the company, who, it is said, "will take up the subject for consideration." That is what it says. When it is taken up with the management he will take it under consideration.

The Pontiac plan is one of the few which provides some regional organization. A general works council, consisting of the chairman of the works councils of all plants, will be formed to consider matters affecting all plants They will meet in Detroit upon call issued by the management.

The Buick plan is much like the Pontiac plan, but some provisions are more rigid. For instance, all expenses of the employees' com mittee are to be borne by the company, but before they are incurred

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