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STATEMENT OF HON. MAURICE J. TOBIN, SECRETARY OF LABOR

Secretary TOBIN. Mr. Chairman and members of the subcommittee, I wish to thank you for the opportunity of expressing my views on H. R. 1584 and H. R. 2438, the Women's Equal Pay Act of 1949, introduced by Mrs. Woodhouse and Mrs. Douglas.

The Department of Labor has long regarded equal-pay legislation as a necessary addition to the body of Federal law which is designed to advance the well-being of workers and to stabilize the economy. The passage of such legislation has been urged in successive annual reports to the Congress by my predecessor, the late Lewis B. Schwellenbach, and by myself, as Secretary of Labor.

The following recommendations were contained in Secretary Schwellenbach's 1947 report:

Such legislation is required as a matter of justice to the 16,000,000 women in the American labor force, and to prevent the use of women as wage cutters, a process which tends to depress general wage levels of both men and women

* *

In 1948, I recommended enactment of equal-pay legislation in my first annual report, stating:

* * * The principle of equal pay for equal work is as basic to the American way of life as are the guaranties of free speech, free thought, free press, free assembly, and free association * * *.

Finally, in my report for the fiscal year ending June 30, 1949, I again urged the Congress to enact legislation to eliminate discrimination in wage payment based on sex.

Federal equal-pay bills covering workers in private industry in interstate commerce were introduced in the Seventy-ninth, Eightieth, and Eighty-first Congresses. In June 1945 an equal-pay bill was introduced in the Senate and in January 1946 a companion bill was introduced in the House. After hearings by the Labor Committees of both Houses during the Seventy-ninth Congress, bills were favorably reported by both committees. Unfortunately, the end of the session prevented consideration of the bills on the floors of Congress. In July 1947 equal-pay bills were again introduced in both Houses. Hearings were held by a subcommittee of the House Committee on Education and Labor, but no further action was taken on equal-pay bills during the Eightieth Congress. It is my hope, Mr. Chairman, that this Eighty-first Congress will bring to its logical conclusion this long process of study and exploration by both the executive and legislative branches which has gone on over the past 5 years and that it will write the principle of equal pay into the basic law of our land governing employment in our interstate trade and commerce.

The equal-pay principle is now being applied with success in a number of different employments and areas. For the past quarter of a century, the Federal Government has recognized the validity of the principle of rate for the job irrespective of sex. This principle was established for Federal workers by the Classification Act of 1923 and was restated in the Classification Act of 1949. It is interesting to note, Mr. Chairman, that this latter act declares that:

It is the purpose of this Act to provide a plan for classification of positions and for rates of basic compensation whereby (1) in determining the rate of basic compensation which an officer or employee shall receive (A) the principle of equal pay for substantially equal work shall be followed * *

Approximately half of the States have civil-service systems which include all branches of the State government, and in such States the principle of equal pay for State employees, irrespective of sex, is generally observed. Furthermore, about a fourth of the States have passed equal-pay laws specifically for teachers. One State, Montana, includes teachers as well as other public employees in its general equal-pay law.

Twelve of the States and Alaska have adopted equal-pay laws of general application. In my own State of Massachusetts an equal-pay law was adopted in 1945 during my term as governor. Certainly, on the basis of my experience, I can state definitely that an equal-pay law is a sound and progressive piece of legislation.

State laws alone, however, cannot cure an evil which is found on a wide scale throughout our Nation. The scope and standards of these State laws are varied. Uniformity in the application of equal-pay standards is important to their effectiveness. This is clearly shown by the fact that employers in States which have equal-pay laws and consequently higher wage standards, are often put at a competitive disadvantage with those in States where there is no legal barrier to unfair exploitation of women workers by means of discriminatory wage-cutting practices. This disadvantage can be eradicated only through congressional action establishing the equal-pay principle on a uniform basis in all our interstate industries and businesses.

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Many labor organizations have been alert to the undesirable effects of dual wage systems for men and women. Many of the large union organizations have expressed themselves in resolutions of their national conventions as favoring the principle of equal pay for women. application of this principle is illustrated by a recent analysis of the Bureau of Labor Statistics of 321 collective-bargaining agreements in five major industries. This analysis showed that one out of every five agreements stressed the principle of equal pay for equal work, between men and women. To the extent that contract coverage was known, equal-pay clauses covered about 31 percent, or approximately 360,000, of a total of 1,150,000 workers covered by the contracts.

It must be borne in mind, however, that many women workers are not organized and that Federal equal-pay legislation would offer protection to many of such workers who are now in a position of comparative helplessness.

Establishment of the principle of equal pay for women is essential to a healthy economy. It protects wage levels, not only of women workers, but of all workers and thereby sustains consumer purchasing power. It is an axiom that when large numbers of workers can be hired at lower rates of pay than those prevailing at any given time, the competition of such persons for jobs results either in the displacement of the higher paid workers or in the acceptance by them of lower rates. Over a period of time this tends to depress all wage levels, and unless this tendency can be halted, it results eventually in lower levels of earnings for all, with a resulting reduction in purchasing power, and in standards of living.

That the practice of wage discrimination against women on any large scale in the United States can very seriously affect the wage structure is evident from a consideration of the importance of women workers in the country's economy. Based on numbers alone-almost 18,000,000 in February 1950-women workers make up a substantial

part of the labor force. The fact that they possess specialized skills and are admitted into nearly all men-employing industries increases the area of potential wage competition with men.

The permanent role of women in the labor force is indicated by the constantly increasing proportions of married women and of older women who are either employed or seeking work. Since 1910 there has been an almost steady rise in the proportion of married women in the labor force. It is significant that women who do go into employment seek jobs by reason of the necessity of contributing to the family income in order to maintain an adequate American standard of living. It has been found also that older women are remaining in the labor market in substantial proportions.

Another consideration in this connection is that women's earnings are an important factor in maintaining consumer purchasing power There is a considerable amount of evidence that a large majority of women workers are financially responsible not only for their own support but for support of dependents as well. It has been found, for example, that 92 percent of the employed women who live with their families contribute regularly toward family expenses. Over half of them contribute between 50 and 100 percent of their earnings to the family group.

In addition to its beneficial effect in maintaining consumer purchasing power, the establishment of equal pay for women would tend to create greater flexibility in the labor force. In a highly industrialized economy, with its advances into new processes and demand for skilled labor, the ability to draw upon a broadly trained, skilled labor force is essential to economical expansion of production. If women could be assured of the "rate for the job," without prejudice because of sex, they would have a real incentive to equip themselves more readily with the necessary skills, and would thus be prepared to contribute fully to maximum labor force efficiency and flexibility.

It may be pointed out, too, that labor disputes result from discriminatory wage practices which these bills are designed to correct. any time of business recession, such disputes will inevitably arise. In any event, the threat of lay-off and wage cutting implicit in the operation of lower wage standards for women makes for unrest on the part of both men and women workers, and creates an undesirable condition of instability in the labor market.

The Department of Labor, as the subcommittee knows, has the responsibility at the present time for the administration of the basic Federal laws pertaining to labor standards. Entrusting the administration of the equal-pay law to the Department, as proposed in the bills under consideration, would fit into the Department's general program and its experience.

The Women's Bureau of the Department over a period of years has devoted close attention to the subject of equal pay. It has been called upon by various States with equal-pay laws to assist ir developing procedures for the administration and enforcement of such laws. Experience gained in this work has been made available upon request to State and Territorial agencies and civic groups seeking to promote equal pay legislation in their own States. The director of the Bureau, Miss Frieda Miller, and her staff would be available, of course, to advise and assist me in the administration of the provisions of Federal equal-pay legislation if, as I strongly hope, such legislation is enacted.

As I see it, Mr. Chairman, the investigations which would be required under this act would be made principally by the inspectors in the regional offices of the Wage and Hour Division in connection with enforcement of the Fair Labor Standards Act and the Public Contracts Act. The inspection staff of the Wage and Hour Division is trained and experienced in the type of investigations that would be necessary under Federal equal-pay legislation, such as is provided for in H. R. 1584 and H. R. 2438, and the use of this staff for this purpose would avoid setting up duplicate facilities in the Department to make the investigations and inspections required by the legislation.

I do not wish to make a detailed comment on the provisions of the bills, but I would like to comment briefly on the administration and enforcement procedures. The bills set up certain enforcement procedures at the administrative level, provide for the issuance of a formal complaint, an administrative hearings, administrative findings of fact, and issuance of cease-and-desist orders where violations are found. Enforcement of the Secretary's orders is placed in the courts of appeal, and judicial review on appeal of any aggrieved person is provided.

It is my belief that the bill provides adequate safeguards for the rights of both employers and employees, and that the administrative and enforcement procedures are substantially adequate.

With respect to safeguards, the usual requirements of notice and hearing are included. A written record is required to be made of the proceedings and any order issued by the Secretary, whether requiring compliance with the act by reason of a violation or a dismissal of the complaint, must be based on a finding of fact. Such findings would be conclusive on the courts in either enforcement or review proceedings if supported by substantial evidence.

I have one suggestion, however, to make in connection with the enforcement provisions in section 6 of the bills. Provision is made for issuance by the Secretary, in the first instance, of a complaint respecting unfair wage practices proscribed by the bills which are brought to his attention. I believe that acceptance of the remedial principle of the proposed law without the necessity of utilizing the formal enforcement procedures will result in many cases if the bills are amended to provide for preliminary conference and mediatory methods of settlement of violations prior to the actual issuance of complaint. Employers and employees may through such methods be given a clear understanding of the law and its operation and given the incentive of voluntary compliance. The informal procedures of conference, persuasion, and adjustment, moreover, are a part of the processes which employers and employees are accustomed to follow in this country. It would seem appropriate, therefore, to specify informal procedures of persuasion and adjustment to be utilized, in the discretion of the Secretary, before initiation of formal complaint procedure under section 6 of the bills. I am attaching a section-bysection analysis of the two bills and language which would change section 6 for the purposes stated, that is, for the purpose of using mediation and persuasion before any attempt would be made to use the legal procedure.

Mr. KELLEY. Is that what is covered on page 10 of your statement? Secretary TOBIN. Page 13.

67051-50- -10

Mr. KELLEY. You would like to have that made a part of the record?

Secretary TOBIN. Yes. It is page 13 in the copy you have, Mr. Chairman.

Mr. KELLEY. Without objection it will be made a part of the record. (The information referred to is follows:)

SUGGESTED AMENDMENT OF THE WOMEN'S EQUAL PAY ACT OF 1949 Submitted BY THE SECRETARY OF LABOR

Amend section 6 by inserting between subsections (a) and (b) two new subsections (b) and (c), to read as follows:

"(b) The Secretary of Labor may upon his own motion and shall upon the filing of charges, make or cause to be made such investigation as may be necessary to ascertain whether any person is or has been engaging in an unfair wage practice affecting commerce.

"(c) If after investigation the Secretary has reasonable cause for believing that an unfair wage practice has been or is being engaged in, he may take such informal action as he shall consider necessary and desirable to eliminate such unfair wage practice and to attain compliance with the provisions of this Act through the precesses of adjustment and persuasion. To this end the Secretary or his agents may (1) invite employers and employees, who may be affected by an unfair wage practice, or their representatives, to attend conferences for discussion of the alleged unfair wage practice, and to submit either orally or in writing all relevant facts and (2) assist in negotiating and drafting agreements for such modifications or adjustments of methods of wage payment or other practices as will result in compliance with this Act. In cases involving disputes of fact, the Secretary may utilize special boards of inquiry where mutually agreeable to the parties. Any information received in confidence by the Secretary or his agents or by a board of inquiry in carrying out the provisions of this subsection may not be used as evidence in any subsequent proceeding."

Reletter subsections (b), (c), (d), (e), and (f) of section 6 as subsections (d), (e), (f), (g), and (h), respectively.

Secretary TOBIN. The establishment of uniform national safeguards against wage discrimination is, in my opinion, essential to a prosperous and expanding economy. I strongly urge the Congress, therefore, speedily to enact legislation as provided in H. R. 1584 and H. R. 2438, with minor changes I have suggested. That, I think, would help greatly first in passing the law, and second, it would be a reasonable approach to the enforcement matter and in getting the purpose of the legislation thoroughly understood and accepted throughout the country.

Mr. KELLEY. On page 10 you have a section by section analysis of the bills. Do you desire to have that included in the record? Secretary TOBIN. I do.

Mr. KELLEY. Without objection it will be included in the record. (The statement referred to is as follows:)

SECTION-BY-SECTION ANALYSIS OF H. R. 1584 AND H. R. 2438, WOMEN'S EQUAL PAY ACT OF 1949

SECTION 1. PURPOSES AND TITLE

The bills find necessity for an equal-pay policy in the fact that wage discrimination against women leads to labor disputes, depresses wage rates, undermines living standards, and prevents maximum utilization of labor resources, endangers the national security and general welfare by obstructing commerce. Declares the policy of eliminating discriminatory wage practices against women based on sex through exercise of the interstate commerce power of Congress. Proposes title of "Women's Equal Pay Act of 1949."

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