WASHINGTON NEWS BUREAU
standard practice with the employer. A procedure is also outlined allowing such raises where the employer has no specific policy for such raises. Compensation can also be increased where employees are promoted or transferred to higher pay ing jobs. Other details relate to tandem ROBERT G . GIBBS, Associate Editor salary increases, salary schedules for new plants, cost of living increases, increases Salary Stabilization Board outlines basic rules for to employees of non-Federal government units, and increases to those employed by granting salary increases to executive, administrative, a n d religious, charitable, and educational organizations. professional personnel It was realized when this regulation was TTS SALARY stabilization desirable for ex- tions adopted are identical with those in issued that rules and regulations appli •*· ecutive, administrative, and profes the Fair Labor Standards Act. In general cable to wage earners are not applicable the authority of the SSB extends to sala in many cases to executive, administra sional personnel, including chemists and ried employees who are exempt from the tive, and professional personnel. The tem chemical engineers? The answer is yes, according to Raymond B. Allen, chair premium pay provisions of t h e W a g e - porary application of such a regulation man, and Joseph D. Cooper, executive Hour Law. Employees on salary who are was designed to give the board time to director, of the recently created Salary represented by labor organizations or who develop over-all policy and to draw up Stabilization Board. They feel that it is get paid time and one half for overtime "tailored" regulations to meet specific not only desirable but essential that pro fall within the jurisdiction of the W a g e needs. fessional and executive personnel not be Stabilization Board and not the SSB. Many Problems Face SSB Mr. Johnston feels that the members of given preferential treatment over wage The board members of the SSB, at earners with respect to income. At the the SSB should serve as representatives of their first business meeting, held on July same time, the long-standing flexibility in the general public and not of management 10, found a great many problems await executive compensation should be pre or any administrative segment of busi ing action. Among these were the neces served consistent with the needs of eco ness. In contrast, the Wage Stabilization sity of developing a program policy; nomic stabilization, as it is a part of the Board is a tripartite group, composed of planning the organization and administra incentive system of management and the representatives of labor, management, tion of the SSB, not only in Washington backbone of the American system of free and the public. but in other cities as well; consideration Although the SSB was formally created of Regulation No. 1; and a large backlog enterprise. Granted that salary stabilization is early in May 1951, no board members of salary cases to be resolved. needed, how can a satisfactory, workable were named at that time. Joseph D . A t the time of the board meeting ap program be developed to accomplish this Cooper, a personnel and public adminis proximately 1848 salary cases had been objective? Mr. Cooper and the members tration official in the State Department, filed with the SSB or referred to it by was granted a leave of absence to act as the Wage Stabilization Board. Approxi of the Salary Stabilization Board (SSB) recognize that there are no simple rules executive director of the new board.. mately 5 0 others are being received daily. Late in June Mr. Johnston appointed Most .of these relate to individuals and which will cover the many situations which arise. They have, however, devel five persons to fill these posts. The mem not to substantial groups of employees. oped a framework of broad rules which bers are Raymond B. Allen, president of Of these, Mr. Cooper and his assistants are flexible and under which businessmen the University of Washington, chairman; have processed 660. Most of the 1200 may resolve most of their own problems Ellsworth C. Alvord, Washington, Γ). C , cases left to b e handled relate to requests without prior approval. Although this legal specialist on taxes; Clinton S. to increase salaries up t o the 10% limita policy is based o n the concept that the Golden, lecturer on labor problems at the tion set by the Wage Stabilization Board most desirable form of control is the least Harvard Univeristy graduate school of for negotiated union-management con direct control in individual cases, it also business administration; Charles P . Mc- tracts. Other cases consist of requests for assumes the integrity and expected co Cormick, president, McCormick and Co., rulings o n the application and interpreta operation of the nation's businessmen. Baltimore, Md.; and V. Henry Rothschild tion of regulations, policies, and orders. T h e board, however, intends to back up II, N e w York corporation lawyer and Some interesting but knotty problems re its regulations to ensure equal treatment chief counsel of the board. George Taylor, late to salary increases for professional chairman of the Wage Stabilization athletes, and stage, screen, and radio en to all those affected. Board, will act as a nonvoting ex-officio tertainers. SSB Operates in Limited Field member-adviser. One of the most pressing problems Eric Johnston, administrator of the facing the board is to determine whether Economic Stabilization Agency, recog SSB Issues Basic Salary Regulation stock options are a form of capital in nizes that there are a great variety of un In order to dispel confusion in industry vestment or compensation to corporate usual problems involved in developing a and to permit businessmen t o settle their officers and employees. To assist the stabilization policy affecting compensation salary problems as rapidly as possible, board in reaching its decision, a threeof executive, administrative, professional, the SSB issued Regulation N o . 1 o n July member panel will hold public hearings and certain sales, management, and super 5. This regulation is a compilation of all o n this subject. visory employees which are not en provisions included in the Wage Stabili Other specific problems to b e resolved countered in developing policies relating zation Board's general wage regulation relate t o bonuses, salesmen's compensa to most wage earners. He, therefore, felt which could b e applied to salaried em tion, pensions and other fringe benefits, it advisable to establish the Salary Stabili ployees. In general it freezes salaries at merit increases, in-grade promotions, ex zation Board, a n organization apart from the level in effect o n Jan. 2 5 , 1951. The emptions of nonprofit institutions, and the Wage Stabilization Board. The new major exception is a provision allowing price-exempt industries. board is responsible for developing and raises up to 10 % above the Jan. 1 5 , 1950, Dr. Allen, SSB's chairman, states that executing a stabilization policy affecting level. One of the most important pro panels of business leaders will be re compensation of these specialized per visions permits salary increases to em quested to discuss these problems so that» sonnel. ployees based on merit and/or length of t h e board will get the benefit of the To avoid confusion in determining service. These raises may b e made with views of a cross-section of business and w h i c h salaried personnel fall in the pro out obtaining specific authority from the industrial leadership before adopting fessional and executive categories, defini Government where such a policy lias been basic regulations.
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