International Labor Organization and for the many committees that it has. I am sure you are familiar with the fact that the employers are nominated by the National Association of Manufacturers and the National Chamber of Commerce, and they have agreed to go along with the ILO for 1957, provided our influence in the organization is increased. So, to aid us in this work we ask for 1 additional professional and 1 clerk. I think it is very important that we do that if we are to build up better relations and exercise a greater influence in the International Labor Organization. Senator HILL. Do you mean you would then have 6 people instead of the present 4? Mr. WILKINS. That is right; in the operation for the ILO. DUTIES OF AREA SPECIALISTS Senator HILL. Let me ask you this, sir, about these 2 area specialists that you now have and the 2 additional ones that you want, 1 for Latin America and 1 for Africa: Can you give us a brief picture of what those area specialists will do? Mr. WILKINS. This is set forth in my statement here, Mr. Chairman. Senator HILL. You might just briefly summarize it for us. Mr. WILKINS. These area specialists appraise the attitudes of workers and work organizations in all of the countries represented in the work. They study the question of Communist influence, Communistdominated trade unions, and things of that sort. We provide information to the Government with respect to the movements of Communist workers. We furnish information to the Department of State on the effect of the Organization of American States on workmen. And we gather information with reference to wages of workers in countries of the 77 nations that comprise the ILO. This information is made available to Members of Congress and is made available, as I said, to the Department of State. It is made available to the Department of Defense or any of the other agencies of the Government. SPECIALISTS' SALARIES Senator HILL. What is the salary of one of these area specialists? Mr. WILKINS. It is a grade 14, Mr. Chairman, and that starts at $10,320. Senator PASTORE. May I inquire at this point, Mr. Chairman? Senator PASTORE. Can you, for the record, give us an example of one of the advantages that we receive because of these area inspectors? What have been some of the fruits of this work? Mr. WILKINS. It is a little hard to speak in specifics, but these specialists have gathered information which we have been able to incorporate into reports. Just take one of our Latin American countries, like Venezuela, for instance, where the American Government has a lot of interests in respect to oilfields and that sort of thing: they gathered information on the wages of people who work in these areas. They have gathered information on the question of whether or not the workers are Communist-inclined or whether it is a free, democratic process that we have there. I think that is one of the things that has been done. And, of course, there is the question of the number of workers, whether or not women work, the conditions of women at work and hours of work, and that sort of thing. Senator PASTORE. The reason why I asked the question, Mr. Chairman, is that when I was at the United Nations there was somewhat of a feeling of antipathy toward this kind of activity. I do not know that it was ever justified, but I have been at wits' end to ever determine what good it does us after we find out these things and put them into the form of statistics, and write reports. If you are going to strive to cut a budget at all, I mean in the essentials, that is, the things that should be essentially cut, as against those things we know we cannot cut, why would not the elimination at this point be good unless a good case can be made for the advantages of it? I know it is desirable to make all these investigations and determinations if you could well afford to do it, but if you are going to cut somewhere, why would not this be a good place to cut as against some of these other things where you can cut? Mr. WILKINS. I presume the answer to that is that the work in which you are interested is always most important to you. Senator PASTORE. I am not talking about myself, I am talking about the Nation now. Mr. WILKINS. I think it is important, Senator, that we do work in this area. No one can argue seriously that working conditions in the United States are not much better and far superior to the conditions of work of other people, in other parts of the world. But it seems to me that in making these studies and participating in the International Labor Organization the United States Government has an opportunity to improve the working and living standards of working people in other parts of the world. We certainly must agree this is a very distinct advantage, that if we increase the living and working standards of people throughout the world we eliminate, to some degree, the importation by the United States of commodities that are manufactured by cheap labor. I think that is a very important thing, from our standpoint. Senator PASTORE. Do you mean with reference to tariffs? Senator HILL. Do you have anything you would like to add, Mr. Dodson? Mr. DODSON. No, sir. Senator HILL. Thank you very much for your appearance here this morning. You are going to stay with us this morning; are you not? PREPARED STATEMENTS Senator HILL. Very well. And the statements of Mr. Wilkins and Mr. Siciliano, which you have presented for inclusion in the record, will appear in the record at this point. Mr. DODSON. Thank you, Mr. Chairman. (The statements referred to follow :) TESTIMONY OF ASSISTANT SECRETARY OF LABOR J. ERNEST WILKINS ON 1. AREA SPECIALISTS In 1956 and 1957, Congress appropriated money for 2 area specialists and 1 clerical person. Two additional area specialists and a clerk are requested. One of the area specialists previously approved is now handling Europe and the other is handling the Far East. One of the new positions requested would be to handle the Near East and Africa and the other would be to handle Latin America. This increase is requested to permit the Department of Labor to follow the labor-manpower developments in countries of regions of the world such as Latin America and the Middle East. The Department of Labor has know-how in the labor and manpower fields just as Department of Agriculture has in the agricultural field; Treasury in monetary and finance; and Commerce in trade. A specialist who follows a given area can put to good use the Department's know-how in analyzing the meaning of trade union developments, labor-management relations, social insurance programs, labor conditions, wages, etc. The analyses and interpretations made by area specialists in the labor-manpower field, along with those of Agriculture, Treasury, and Commerce, provide the Department of State with the basis for determining policy and taking dayto-day action. One of the major United States foreign policy objectives is to keep nations and peoples friendly to this country. The analyses and interpretations of the attitudes and activities of workers in other countries provide a basis for shaping United States actions to develop and maintain this friendship. Without these additional funds, the United States Government may be without expert analyses of labor developments and particularly the causes of Communist activity among workers in other countries. Accomplishments of area specialists. In talking about the work and specific accomplishments of the area specialists, it is difficult to list specific accomplishments without revealing information which would be injurious to our relations with other countries. Comments are therefore rather general and where specific counties or regions are mentioned I hope the committee will accept them on an off-the-record basis. Area specialists have given major assistance in developing manpower and labor programs which are contributing to achieving United States foreign policy objectives. 1. Area specialists now on the job have appraised the attitudes of workers and worker organizations in many countries and advised Department of State on how to take problems into account in foreign policy actions. 2. In cooperation with other agencies, the Department of Labor has developed programs to assist countries to combat communism. 3. Advised Department of Defense reemployment and labor relations problems in several Far Eastern areas where there are large military operations. Bad practices have resulted in unfavorable reactions by other nations. 4. The Department of Labor has developed a manpower and training program for SEATO and furnished a representative to represent the United States Government on SEATO working groups. 5. Worked with Department of State in getting United States employers operating in Far Eastern countries to consider labor relations practices which would be helpful in building better attitudes toward the United States. 6. Provided assistance to the Indian Government through Department of State, ICA, and private agencies on their professional and skilled manpower problems to meet the industrialization taking place. 7. Provided assistance through ICA and ODM to OEEC in developing a program to improve mobility of labor, as well as to increase needed professional and technical manpower. 8. Advised Department of State and others re policy on offshore procurement which is designed to assist in supporting democratic worker groups. 9. Department of Labor has assisted Department of State and other agencies in considering the problem of improving the effectiveness of the Organization of American States and has suggested the kinds of manpower and labor problems needed and which the Organization might handle effectively. 2. HANDLING UNITED STATES PARTICIPATION IN THE ILO In 1957, 2 professional and 2 clerical people were used by the Department of Labor in handling United States participation in the ILO. A request is made to increase this by 1 professional and 1 clerical person. The Departments of State, Commerce, and Labor in May 1956 worked out an arrangement for handling United States participation in ILO. The Department of Labor has responsibility for handling all substantive issues before the ILO and for general coordination of the contributions of other agencies to United States patricipation. The additional staff will be used to: 1. Get United States employers and workers to advise more fully in the development of United States positions on issues before ILO. 2. Assist in the work with employers and workers to develop ideas for reshaping the ILO programs and make them serve more effectively the agreed objectives of the organization. In addition, the increased staff will contribute to : 1. More effective presentation of United States experiences and views on issues before the ILO; 2. More thorough and qualitative consideration in the formulation of the United States Government views; 3. More effective participation in ILO meetings which provide the opportunity to inform employers and workers of other nations of the true nature of United States basic institutions. As you know, the National Association of Manufacturers and the United States Chamber of Commerce have been very critical of participation in ILO. Both organizations have voted to participate in 1957, contingent upon improvements in United States participation and influence in ILO. The Department of Labor will find it very difficult to live up to its responsibilities without this additional small amount of money. The House restored to the appropriation language a dollar ceiling on the amount of the appropriations which could be spent for international labor affairs. We believe that the inclusion of a dollar ceiling destroys flexibility to meet emergency fiscal requirements during the fiscal year. We believe that flexibility within an appropriation is essential to efficient operations to meet unforeseeable circumstances. We, therefore, strongly urge the dollar ceiling language be eliminated. 3. LEADERSHIP AND ADMINISTRATIVE SERVICES The Assistant Secretary has far-reaching responsibilities for maintaining liaison with the employer and worker groups and with the public on ILO matters; he has responsibility to advise the key policy people in the Department of State on all labor aspects of foreign policy and program; and he must spend a sizable portion of his time outside the country attending international conferences. Because of the range and nature of his duties the Assistant Secretary needs a deputy who can assist him in carrying the day-to-day policy recommending and liaison functions and who can act for him during his absence. STATEMENT OF ASSISTANT SECRETARY OF LABOR ROCCO C. SICILIANO ON THE DEFENSE MOBILIZATION READINESS REQUEST A major item disallowed by the House committee was the sum of $225,000 for mobilization-readiness planning. This creates a serious problem for the Department and, I believe, for national readiness effort. The House committee did not disapprove the activity represented by the item but asked that the request be made through the Office of Defense Mobilization. This position indicates that we have not made clear the nature of the relationship between the Department's mobilization readiness work and the ODM responsibilities. The Department does not perform services for that agency in the sense that we do a portion of its work. The preparedness work for which we request funds represent departmental responsibilities that are inseparable from the Department's function as the Government's manpower agency. It is the Department that must be prepared to discharge manpower responsibilities—in a war emergency as in peacetime. The ODM role is to coordinate and to provide leadership on behalf of the President to the preparedness activities of the departments and agencies of the executive branch. As part of his coordination function, the Director of Defense Mobilization has issued specific delegations to each of the major departments, explicitly stating their responsibilities with respect to mobilization readiness. These delegations in the case of the Department of Labor represent a specific statement of the readiness aspects of its inherent responsibilities, not an addition of new responsibilities. The appropriation item in question, therefore, is properly a part of the Department's budget request. The Department's defense readiness program is aimed at developing mobilization plans and emergency operating capability in the broad and important fields of manpower supply and wage stabilization. The State employment security agencies affiliated with the Department must be readied to serve as the heart of the operating manpower agency in wartime. In addition, units now in the Department must be prepared to be the nucleus for a wage stabilization field organization. Our readiness planning is directed at the practical, down-to-earth job of identifying and accomplishing those steps which, taken in advance, will give those who survive a better chance of continuing to survive and of reconstructing a workable economy. Emphasis is upon developing relocation capability, secure communications, chains of succession in command, a reserve of trained executives from outside Government, clear understanding of the emergency responsibilities of each unit, and providing a comprehensive "kit of operational tools" which manpower and wage officers in the field can adapt and use as local contingencies may dictate. The development and testing of these plans requires extensive staff work both in Washington and in the field by several bureaus in the Department. The effect of House action, therefore, is to place the Department in the difficult position of having very specific and difficult mobilization readiness responsibilities without either specific funds or the ability to utilize other funds to carry them out. Unless there is a restoration of the appropriation proposed for this purpose, these responsibilities will not be discharged on even a minimum, calcu lated-risk basis. OFFICE OF THE SOLICITOR STATEMENTS OF STUART ROTHMAN, SOLICITOR OF LABOR; AND WARD E. BOOTE, ASSISTANT SOLICITOR, DIVISION OF EMPLOYEE BENEFITS AND APPELLATE LITIGATION APPROPRIATION ESTIMATE Salaries and expenses: For expenses necessary for the Office of the Solicitor, [$2,021,000] $2,263,000, together with not to exceed $365,000 to be derived from the highway trust fund created by section 209 of the Highway Revenue Act of 1956. [Salaries and expenses: For an additional amount for "Salaries and expenses", $300,000, to be derived from the Highway Trust Fund created by section 209 of the Highway Revenue Act of 1956.] |