Show 1 Tr 1 T Borer Boter W. W babson discusses labor costs No analysis of or present conditions conditions conditions con con- or prospects for the future should leave out the impact of or labor costs on our manufacturing and md services Workers Yorkers naturally think in terms of oC how much they arc are getting gelling i in iii today's pay envelope envelope enve enve- lope Jope and how much they will get in tomorrows tomorrow's The They do o not often orten give much attention to the fact that employers must think always always al al- a- a ways of oC how to hold employment employment employment employ employ- ment up how to meet rising labor Jabor costs how to keep their businesses healthy how to ensure ensure en en- sure fair lair profits how to keep prices down Or r how to put aside funds for modernization and expansion Perhaps only an employ r can really appreciate appreciate ap ap- these problems Readers may ask Just how much of r an i inroad road have labor costs made A recent survey indicates that total pay for time worked has soared percent over the past 15 years ears Tar Jar more spectacular is the fact fact that fringe b benefits now cost management about percent more than they did didat didat I at the end of the Korean War It n is cas easy to see sec what overwhelming overwhelming overwhelming over over- whelming pre pro sure this exerts on the price of or American goods and services Little wonder that labor cheap-labor foreign foreign for for- eign goods arc are underselling us along steadily broader fronts Economists are justified in crying for a return to the law of supply and demand for lor labor labor labor la la- bor rather than having to operate operate op op- op- op erate crate under the price pay-price in in- that is so economically unrealistic WORKERS LOST OUT No sane observer wants to see the nations nation's worl workers rs deprived deprived deprived de de- de- de of their fair slice of or the profits pie But when wage and fringe costs become top- top heavy the workers lose their gains through skyrocket n g living Jiving costs a in working hours and ment Too many union Jea lead ers however act as though profits should be used only to swell payrolls They give little or no regard to the necessity of distributing reasonable segments segments segments seg seg- ments of or profits to owners investors researchers distributors distributors distributors dis dis- planners of oC future plant expansion and most important of oC all to the public in the form of oC lower prices all along the thc line When employ e r s b balk a l J k against ex exaggerated wage demands demands demands de de- mands unions frequently resort resort resort re re- re- re sort to schemes of QC taking lessin less lessin I in actual cash in return for I new or extended fringes Cringes But workers should realize that fringes are arc just as expensive for the company as are dollars placed in pa pay envelop c e s. s Fringes may be out of or sight of or the but they are arc very much in view when company company company com com- pany expenditures are arc totaled They are arc just as inflationary as outsized wage hikes if somewhat more more subtle GOVERNMENT GUIDELINE IGNORED The Presidents President's Council in ina ina ina a move designed to curb the price pay-price decided some time ago that it would be all right for Cor unions to negotiate negotiate negotiate ne ne- ne- ne raises as long as the they did not go beyond the roughly three percent annual productivity productivity productivity guideline Instead cony consistently con more than that has been asked for in straight pay boosts and in calls for further additions to fringes Looking ahead I foresee no change in labors labor's decision to bypass the governments government's productivity productivity productivity pro pro- guideline Lab o 0 r leaders in order to hold their own jobs try to get all aU possible possible possible pos pos- sible concessions in both straight raises and fringe Cringe ben ben- It certainly looks now as if any reduction in union demands over the peri pert o 0 d ahead would stem from possible possible possible pos pos- sible business weakness and the fear of layoffs RAISES VIA SHORTER HOURS OURS Some ion ir-ion leaders have on the their r agenda another move that will result In still higher labor costs and this is the drive for the hour 35 week They want this concession with no change in take home pay which would mean a 14 11 percent hike in basic hourly wage rates Since they see sec littie little little lit lit- tle tie chance of or getting Congress to grant such a boon they hope to get it b by fighting ahead company compan by company industry by industry I fear Cear you OU may see sec more of or this as 1963 works along |