| Show On the Home Front Hour 48 Week Not Inflationary Say Washington Economists By JAMES MARLOW and GEORGE WASHINGTON Feb 17 UP The capitals capital's brains brain have been working overtime on two related questions posed by the te h 48 hour 48 ur work week order One What One What will wn it cost Two Two Two-Is Is it t Inflationary When the order was announced te the first fist reaction In many circles was that it meant a big boost in total payrolls perhaps payrolls perhaps perhaps an inflationary boost which boost boost which some employers employ employ- ers thought would woud mean complete complete com corn ruin for them Studies here indicate say WashIngton Washington Washington Wash Wash- ington economists who cant can't be quoted directly that tat these conclusions conclusions concu- concu need to be modified To begin with Man Power Chief Paul V. V McNutt points out that tat the Jie purpose of the te order is to free te workers for essential activities and promises to make exceptions where this aim wont won't be achieved Too in the scarce labor-scarce areas involved In practically all al lines have been working 48 48 ours hours a a week already To Release Others Now the order Is designed to tomake tomake tomake make the employer who has been running te on a a hour 40 five-day five week put his help on a hour 48 six-day six week weel generally speaking In effect this would woud increase crease his I working force by one fifth one since each worker would put In i one more day a a week This employer therefore Is expected expected expected ex ex- ex- ex to release one fifth one one-ft of hI his h for other jobs Obviously If a person has been working 40 hours and now gets get time and a halt half hal for eight hours more hell he'll find 30 per cent more morein moren in n his hel pay envelope But hell he'll hel I. I work 20 per cent longer and presumably pre pre- increase his output by that hat much I tat As viewed here payment oftie of or time tie and a a half halZ hal for the te extra extra eight I hours would actually increase employers employers' employers employers' em em- labor costs by a maximum I em-I of 8 3 1 per cent It I works out this way Suppose an employer had six si I persons each working 40 40 hours a awe we week k or man-hours man all aU told In the future hell he'll employ five persons working 48 hours a a week apiece to reach the same total of man hours But instead of paying 20 hours' hours wages which would break down into 48 hours' hours p pay y for each 48 hours worked hell he'll hel pay hours' hours wages for the s same me total tota amount of work or 52 hours' hours pay for each 48 hours worked worked worked-an an increase of 8 3 1 per cent Financial Pressure An who was getting 40 0 for a a hour 40 week or 1 1 an hour would get 52 52 for 48 hours' hours work in in effect raising the te hourly pay to 3 1 a boost of 8 3 1 per percent percent percent cent This means the te employer is goIng going going go- go Ing to be under financial pressure not only to spare one fifth one one-ft of his but also to use the te others others others oth oth- ers more efficiently so that he can spare still more workers workers and and pare down dow his overall labor Jabor costs accordingly Because of this additional factor factor fac fac- tor tr its it's is considered well nigh nigh wel impossible impossible impossible im im- im- im possible to say how muc much total payrolls wl will be increased or n in turn how inflationary the te hour 48 week may be Also suppose an employer whose workers arent aren't covered by the wage-and-hour wage law decides to pay straight time for additional hours worked If It he has six si working 40 hours a week and Inthe in inte inthe the te future employs five five persons working 48 hours each to reach the same total of man hours he still would pay payout out exactly hours' hours wages These are some of ot the things which figure in administration statements that tat the te order isn't in in- |
