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UNIVERSITY OF CALIFORNIA, BERKELEY

INSTITUTE OF INDUSTRI

Vol. 2, No. 3 October 1959

iNsTiTUTS OF INDU TRAL

ARLATIONS LISRARY

AUG 15160

UNIVEPSITY OF CALIFORNIASERKELE

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WVestern Assembly Meets to Consider Managerial Functions'VVaes,rice, Prfits Proudivty' To be Analyzed'Wage,Pries, rofit, Prductiity' By Kaiser Executives

1959-60 AppointmentsMade to Institute'sAdvisory Committee

Eight new representatives of labor,management, and the general public havejoined the Institute's Community Ad-visory Committee.

T'he recently appointed members willserve three-year terms on the 24-memberhoard which, under the chairmanship ofClark Kerr, President of the University,assists the Institute staff in planning com-munity service programs.New members are:Anthony Anselmo, Secretary, Local

Joint Executive Board, Culinary Work-ers; John E. 'Cantwell, Vice President,United Employ'ers, Inc.; Paul A. Cooper;Vice President, Operations, California &Hawaiian Sugar Refining Corp.; JackGoldberger, Business Representative,Newspaper Drivers No. 921; WilliamH. Smith, Secretary-Treasurer, FederatedEmployers of San Francisco; DonaldVial, Research Director, California LaborFederation; Arthur Viat, Regional Di-rector, Federal Mediation and Concilia-tion Service; Harris Wilkin., Secretary-Treasurer, Retail Food Clerks No. 870.

Continuing members are:C. R. Bartalini, Secretary, Bay Counties Dis-

trict Council of Carpenters; Glenn Bowers,Supervisor of Conciliation, California Depart-ment of Industrial Relations; John W. Bristow,Executive Vice President, California Processorsand Growers; Glenn E. Brockway, RegionalDirector, Bureau of Employment Security;Albert Brown. President. Central Labor Coun-cil of Alameda County; J. Hart Clinton, Execu-tive Vice President, Distributors Associationof Northern California; William W. Davison,Vice President, Standard Oil Company of Cali-fornia; Sam Eubanks, Executive Secretary, SanFrancisco-Oakland Newspaper Guild; John F.Henning, Director, Department of IndustrialRelations, State of California; Glen Ireland,Vice President, Operations, Pacific Telephoneand Telegraph Co.; Louis B. Knecbt, Director,District 9, Communications Workers ofAmerica; Scott Newhall, Executive Editor, S.F. Chronicle; Raymond E. Peters, Justice, Su-preme Court of California; John T. Schiavenza,Secretary-Treasurer, California Conference ofMachinists; C. T. Spivey, Director, IndustrialRelations, Columbia-Geneva Steel Division.

Regional Leaders Convene

At Yosemite, October 1-4

The Western Assembly, a regional ver-

sion of the American Assembly of Colum-

bia University, was held October 1-4 at

Yosemite.

Approximately 60 westerners promi-nent in the fields of management, labor,

government, and higher education gath-ered to study and discuss, "Wages, Prices,

Profits, and Productivity."The three principal speakers were:

John T. Dunlop, Professor of Economics

at Harvard University; Paul Hoffnan,former Administrator of E.C.A.; W.

Allen Wallis, Dean of the School of

Business at the University of Chicago.The conference was sponsored jointly

by the American Assembly and the Uni-

versity of California and was presented

by the Institute of Industrial Relations.

Proceedings were under the general

chairmanship of Arthur M. Ross and

George H. Hildebrand, Directors of the

Institute at Berkeley and Los Angeles,

respectively.

Participants, who attended at the spe-

cial invitation of University President

Clark Kerr, spent the first three daysengaged in round-table discussions of

such topics as the behavior of wages,

prices, and productivity, the underlyingfactors in the postwar inflation, the im-

pact of unions on the general level of

money wages, and policy proposals.On the final day, the Assembly met in

plenary session to adopt a report em-

bodying its conclusions and recom-

mendations. The Assembly's report will

be published by the University.

A conference-seminar program de-

signed to provide an o-pportunity for

study and analysis of managerial func-

tions has been started for executives of

the Kaiser Engineers Division of the

Henry J. Kaiser Company.

A three-day conference was held at

the end of September in Palo Alto and

will be followed by six seminars on the

Berkeley campus, starting October 17.

Seminar sessions will cover the prob-lems and policy implications of organi-zational structure and the interrelation-

ship of structure, management objectives,

leadership, and fiscal control.

Faculty includes: William J. Vatter

and Theodore Maim, Professors of Busi-

ness Administration at the University;Gilbert Brighouse, Professor of Psychol-ogy at Occidental College; Alex Bavelas,

Professor of Psychology at Stanford.

A year ago a semilar series was held

for hospital administrators, physicians,and other personnel of Kaiser Medical

Care Entities.

Annual Labor Conferences

To be Held Nov. 16-21

The Institute's Annual Labor Educa-

tion Conference will take place November

16-19 at Santa Barbara and will be fol-

lowed by the Annual Labor Press Con-

ference on November 20 and 21.

Presented jointly with the California

Labor Federation, AFL-CIO, the two

conferences are among the oldest of the

Institute's regular programs for repre-

sentatives of the trade union movement.

This year's meetings on education will

deal entirely with "Labor and the Law."

Particular emphasis is to be placed. on

the Labor-Managemnent Reporting and

Disclosure Act recently passed by Con-

gress.

Sessions for the labor press will con-

centrate on some of the current problemsfaced by labor editors. Tentative topicsto be covered are:

"Employer Strategy in 1959," "The

Public Press and Labor,"..PersonalJournalism," and "The Competence of

the Labor Editor."

William E. Rogin JoinsCommunity Service Staff

William E. Rogin is the Insti-tute's new Coordinator of Manage-ment Programs, replacing RobertL. Raschen.A graduate of the University at

Berkeley, Rogin was formerly incharge of the evening classes pro-gram of the Engineering andSciences Extension Division.

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George H. Hildebrand, Director of theInstitute of Industrial Relations at UCLAand Professor of Economics on the LosAngeles campus, is spending a year inBerkeley as Visiting Professor in theSchool of Business Administration andResearch Economist at the Institute.

Part of his time will be occupied inthe completion of a book tentatively en-titled Progress and Stagnation in thePostwar Italian Economy, which is basedon material gathered while Hildebrandwas on leave of absence in Italy in 1954-55 and again in 1957-58.He also has in preparation a chapter

on relations between internal and ex-ternal wage structures, which will beincluded in a volume of essays on wagerelationships to be edited by ProfessorJohn P. Miller of Yale and Professor J.L. Mey of the University of Groningen,Holland. Other contributors to the bookwill be Michael Fogarty of Cardiff Uni-versity in Wales, Walter Galenson of theInstitute, and Harry Douty of the U. S.Bureau of Labor Statistics.

Hildebrand will be assuming responsi-bility for the courses on industrial re-lations normally taught by Van D. Ken-nedy, who is on leave from the BusinessSchool and the Institute to serve as pro-gram specialist in connection with anindustrial relations research programsponsored by the Ford Foundation inIndia. Kennedy and his family will livein New Delhi during their 15 months'absence.

Joseph W. Garbarino has been granteda leave of absence during the first se-mester to teach at the New York StateSchool of Labor and Industrial Relationsat Cornell University. His courses atBerkeley will be taught by Visiting As-sociate Professor Melvin K. Bers, whowill also serve as a member of the Insti-tute staff.

Bers, who is a former Institute researchassistant and author of Union Policy andthe Older Worker, is a member of theEconomics Department at the CarnegieInstitute of Technology.

During the summer, Arthur M. Rossand Paul Hartman completed the finalrevision of their study of Changing Pat-terns of Industrial Conflict, which is tobe published by John Wiley & Sons inthe spring of 1960. Based on an analysisof developments in 15 countries, thestudy is concerned with the phenomenonof the "withering away of the strike."

INSTITUTE PUBLICATIONSDiscipline and Discharge in the Unionized FirmBy Orme W. Phelps(Berkeley and Los Angeles: University of California Press, 1959; $5)

Extensive debate over the impact of unions on wages and other conditions of employ-ment has tended to divert attention from the far-reaching effects of unionization onthe day-to-day conduct of employer-employee relations within the firm. In no aspectof personnel relations has the impact of unionization been more pronounced than inmatters relating to the discipline and discharge of employees. Management has alwaysregarded the right to impose discipline and to discharge a worker for a serious offenseas essential to the efficient attainment of the firm's objectives; workers have tended toregard protection from arbitrary or unjustified discharge as one of the most importantfunctions of a union.

In this well-documented study, Professor Phelps shows how personnel practicesrelating to a wide range of disciplinary problems have been modified under unioncontracts and arbitration awards.

Phelps is Professor of Industrial Relations at Claremont Men's College and held apart-time appointment to the Institute while his book was in preparation.

Trade Union Development and Industrial Relationsin the British West IndiesBy William H. Knowles(Berkeley and Los Angeles: University of California Press, 1959; $5)Knowles' study of labor in the British West Indies suggests that where unions manage

to obtain a strong foothold, and the majority of voters belong to the working classes,it may be relatively easy for union leaders or their associates to gain political power.In such a situation the stability of the labor movement may be a crucial determinantof political stability.

In the West Indies, although labor has achieved strength, "job-conscious" unionshave been slow to evolve. Union leaders have been more concerned with political action,and would-be political leaders have attracted large followings by. organizing. unionswhich they use as springboards to political power. However, more permanent unionsare emerging and are beginning to play an important role. Perhaps the most significantcontribution of this study lies in its analysis of the conflicting tendencies making forstable and unstable unionism.

William H. Knowles was Visiting Associate Professor in the School of Business Ad-ministration and a member of the Institute's staff from September 1956 to June 1959.

Recent ReprintsPsychological Problems Relevant to Business and Industry, by Mason Haire

(No. 125). The author's article, which appeared originally in the Psychological Bulle-tin, is one of three papers written at the special suggestion of the Ford FoundationProgram in Economic Development and Administration. The papers indicate potentialresearch areas in psychology, sociology, and political science pertinent to current prob-lems in business and industry. In his contribution, Haire outlines the existing academicapproaches to industrial psychology and enumerates in conclusion several new areasin which advances might be made.Some Social Requisites of Democracy: Economic Development and Politi-

cal Legitimacy, by Seymour Martin Lipset (No. 126). The conditions associatedwith the existence and stability of democratic society have been a leading concernof political philosophy. In this paper the problem is attacked from a sociologicaland behavioral standpoint. The author is primarily concerned with examining thesocial conditions which serve to support a democratic political system, such as eco-nomic development (industrialization, wealth, urbanization, education) or politicallegitimacy rather than those which serve to maintain democratic systems.

Labor's Participation in the European Productivity Program: A Study inFrustration, by William Gomberg (No. 127). Gomberg deals with four questionsin his study of the use of labor representatives in the execution of the Marshall Plan:1) To what extent did general expectations regarding the Plan's success correspondto those expectations held by representatives of American labor? 2) What was thenature of labor participation in administration of the Plan? 3) How realistic werelabor representatives in what they expected from Plan administration? 4) What arethe possibilities and problems involved in the association of labor movement personnelwith official U. S. foreign policy?

SOME RECENT OBSERVATIONS:

THE LABOR SITUATION IN WESTERN EUROPEby Walter Galenson

(NOTE: Dr. Galenson's comments are basedon interviews conducted in nine Western Euro-pean countries during the spring of this year.)

The countries under consideration canbe divided into three groups for the pur-poses of this paper: 1) the Anglo-Scan-dinavian bloc-Great Britain, Denmark,Norway, and Sweden, 2) Austria, Bel-gium, and the Netherlands, 3) Franceand Italy.To take the simplest situation first,

labor relations in the Anglo-Scandinaviannations have a great deal in common withAmerican practices. The trade unionsare unified into single federations; theyare well financed and are soundly con-structed at the local as well as the nationallevel; collective bargaining is universallyaccepted by employers as the way of do-ing business.The principal divergence from the

United States is the close alliance thatprevails between the trade unions andlabor parties, which at the present timeare governing the Scandinavian countriesbut constitute the opposition in Britain.Deep involvement in politics raises agreat number of difficult problems forthe trade unions, perhaps the most press-ing of which is the sharing of responsi-bility for the maintenance of stableprices. But there is little prospect of anysignificant change in labor market prac-tices, whatever the immediate politicaloutlook.

Trade union pluralismThings are somewhat more compli-

cated in the second group of countries.Belgium and Holland have competinglabor federations, one under Socialistand the other under Catholic influence.Holland has a third, smaller federation,which professes evangelical Protestant-ism. Although the Austrian labor move-ment is theoretically unified, in fact theAustrian Federation of Labor is com-posed of three so-called factions: Social-ist, Catholic, and Communist, in theorder of relative strength.

Trade union pluralism along politicaland religious lines creates problems, al-though they are not as difficult as onemight anticipate. The profound antipathybetween Socialist and Catholic unioniststhat existed before the war has all butdisappeared, largely as a result of com-mon struggle against the German oc-cupation authorities during the war.

Each group now acknowledges that theother is sincere in its efforts to advancethe economic interests of workers. Thereis a remarkable degree of cooperationat both the factory and national level,going so far in some cases as joint col-lection of dues. The employers, for theirpart, fully accept the principle of collec-tive bargaining, and the whole systemoperates with surprisingly little friction,considering the conflict potentiality ofthe situation.When one crosses the border into the

Latin countries, a completely differentpicture emerges. Both France and Italyhave virulent pluralism in their tradeunion movements, with the Communistsand Catholics competing strongly for theallegiance of workers, and the Socialistsfighting a losing battle. At the presenttime, the Communist-led unions are dom-inant, but the Catholic unions were gain-ing ground until recently.

Problems in France and ItalyBut this is only a small part of the

story. The fact that overshadows every-thing else is the weakness of the tradeunions. The great majority of French andItalian workers do not belong to anytrade union, or if they acknowledge someallegiance, do not pay dues. It was onceremarked that the French worker waswilling to die on the barricades, butwould not pay union dues, and this stillholds true. Local unions are chiefly non-existent, with the worker being repre-sented in grievance procedure and localbargaining by shop committees electedannually by all workers employed in theestablishment concerned, regardless ofunion membership status. Election slatesare usually proposed by competingunions, so that shop committees are al-most invariably split along political orreligious lines.The trade unions are aware of the de-

bilitating effect of this arrangement, butthere is little they can do about it. Em-ployers prefer to deal with the shopcommittees, which have a long historyand have more appeal to the averageworker than the fragmented trade unions.The shop committee is an institution

in which workers speak with a singlevoice, particularly important in view ofthe fact that many employers are activelyantiunion. Genuine collective bargainingis far from universal and victimizationof active trade unionists is not unknown.Victimization is particularly serious in

Italy, where a high rate of structuralunemployment prevails.

Effects of De Gaulle's regimeThe French people are just beginning

to awake from the stunning impact ofDe Gaulle's rise to power, and the gen-eral political uncertainty is reflected inthe union scene. The De Gaulle regimeis strongly committed to the maintenanceof economic stability, and has treatedthe demands of the unions in a cavaliermanner. The prestige of the French tradeunions is lower now than at any timesince the war. There has been somerecent tendency toward cooperation be-tween the Communists and the Catholicsin the face of mutual adversity, but thisfront is not likely to survive any growthof union influence.

In Italy, CISL, the Catholic laborfederation, suffers from identificationwith the Segni government, which is gen-erally regarded as pro-employer. TheCommunists, as a result, are recoupingsome of the strength which they lost inthe aftermath of the Hungarian affair.Workers are reacting against economicinsecurity and, often, employer arro-gance, by voting Communist in shopcommittee elections. The Communists,however, are facing an internal threatfrom the Nenni Socialists, their partnersin the CGIL (the Italian Federation ofLabor), who are becoming increasinglyrestive and giving evidence of a desireto play a more independent role.

Future possibilities

The future of trade unionism and col-lective bargaining in France and Italyis clouded. If political democracy ismaintained, and if economic conditionscontinue to improve (particularly inItaly, where living standards are stillvery low), and if employers are not soshort-sighted as to exploit the presentweakness of the unions, non-Communistlabor will probably resume its upwardclimb. In the absence of these conditions,working people are likely to move furtherto the left, with consequences that arenot pleasant to contemplate whatever theultimate outcome.

ITEMS OF INTEREST . .

Health Insurance ConferenceA one-day conference, "Health Insur-

ance for the Older Worker," will be heldin early November at the University Ex-tension Center in San Francisco.

Designed for people in the labor, medi-cal, and insurance fields, the meeting willconcentrate on proposals for assistanceto older workers on health insurancecoverage.

'Supervision and Leadership'Two repeats of the short course, "Hu-

man Factors in Supervision and Leader-ship," are being given by the Institutethis fall. The first started October 1 inPalo Alto; another will open in Berkeleyearly in December.The courses run once a week for six

weeks and are designed to cover thefundamentals of management practicefor persons who carry supervisory re-sponsibility at intermediate managementlevels. Particular emphasis is placed onthe supervisory problems faced by thetechnically trained individual in his roleas a manager.

Instructors for the course are Pro-fessors Lyman W. Porter and Samuel G.Trull of the University.

Programs for Foreign UnionistsDuring the recent AFL-CIO conven-

tion, the Institute, in cooperation withthe U. S. Department of Labor, heldseveral orientation sessions for tradeunion officials from overseas.Two four-day programs were given

for unionists from Japan, Brazil, and thePhilippines. A one-day seminar onAmerican economic, political, and socialproblems was presented for a group ofunion officials from Latin America.The major program in the series was

a three-day International Labor Seminarfor delegates from 13 countries.

Supervisors ForumDr. Mario Conforti, Employment and

Training Manager of the Standard Regis-ter Co. (Oakland), addressed the Oc-tober 6 meeting of Supervisors Forumon "Appraising a Social Situation."The Forum will discuss fair employ-

ment practices legislation in November.Membership in the Supervisors Forum

is now open to a limited number of super-visory personnel. For information, phoneWilliam Rogin, THornwall 5-6000, ex-tension 8571.

'Labor and the Free Society'The second in a series of seminars on

"Labor and the Free Society" will beheld December 4-6 at the Marine Cooksand Stewards Training School in SantaRosa.

Discussions will take place betweenuniversity and labor representatives onsuch subjects as trade unionism and thepublic interest, wage policy in a freesociety, and civil liberties of union mem-bers.The first of the programs was held in

1957 with the assistance of a grant fromthe Fund for the Republic. The seminaris now being organized on an annualbasis at the request of the original par-ticipants.

1. R. Certificate GraduatesThirteen evening students received the

Institute's Certificate of Industrial Rela-tions this past summer:

Wallace E. Baker, Robert L. Chew,James Hall, Arthur S. Jones, Earl T.Meldrim, Marie Ann Melrose, WoodrowW. Morris, Avis M. Rapp, B. F. Such,Fredrick T. Sullivan, Ethel L. Thornton,Joel L. Tucker, Curt F. Waldhaus.

Recipients satisfactorily completedeight courses in Industrial Relations andrelated fields under the University's Ex-tension program.

Ross Will Visit East CoastTo Study Laws on Age Bars

At the request of Governor Brown, In-stitute Director Arthur M. Ross will visitNew York, Pennsylvania, Massachusetts,and Rhode Island this month to examineresults of laws passed by these statesto prevent employment discriminationagainst older persons.

Ross is chairman of a special Gover-nor's committee on the employment prob-lems of older workers in California.

While in the East, Ross will partici-pate in a symposium, "The GrowingChallenge of Disability Control in anEra of Comprehensive Medical Care,"sponsored by the Liberty Mutual Insur-ance Company at Boston, October 15and 16.

Staff Members TestifyAt Congressional Hearings

Several members of the Institute staffhave recently been invited to appear asexpert witnesses before congressionalcommittees.On September 29, Professors Lloyd

Ulman and George H. Hildebrand madestatements before the Joint EconomicCommittee, which was holding hearingson the impact of unions on wages.The Senate Subcommittee on Aging

held a series of hearings on the problemsof the aged from June 16 to 18. Dr. Mar-garet S. Gordon, Associate Director ofthe Institute, was one of those invitedto testify. Her statement dealt with thecurrent income status of the aged andthe adequacy of old-age insurance bene-fits.John Hutchinson, Coordinator of

Labor Programs, testified in July beforemembers of the House Joint Committeeon Education and Labor on the then-pending Kennedy-Ervin Bill.

Institute's Fall SeminarsThe Institute's regular monthly semi-

nars for labor and management groupswill begin fall programs during October.Notices will be mailed.

Nonprofit OrganizationU. S. PostagePAID

Berkeley, Calif.Permit No. 1

INSTITUTE OF RIAI RFIATIONS

Published bimonthly during theacademic year by the

Institute of Industrial RelationsUniversity of CaliforniaBerkeley 4, CaliforniaDirector: Arthur M. RossEditor: B. V. H. Schneider

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