Comparative transfer from "Salaries and expenses, Office of the Secretary of Comparative transfer from "Salaries and expenses, Mexican farm-labor pro- Total available.. 1957 1958 $2,021, 000 300,000 $2, 235, 070 365,000 Bureau of Employment Security (Mexican farm-labor program)_ Revised 1957 base_ 1958 appropriation request_-. Net change requested. $2,021, 000 300,000 27,500 14, 600 2,363, 100 2, 600, 070 +236, 970 The House action reduced this activity by $36,584 (6 positions) under the 1958 estimate. This includes disallowance of the requested program increase of $17,915 and $18,669 reduction in operations below the 1957 base because of transferred and mandatory cost items which must be met in 1958. These items cover contributions to the civil-service retirement fund and the departmental working capital fund. The House action will mean a reduction in the trial litigation and employees' compensation programs. Less effective enforcement of the two principal Federal wage and hour laws-the Fair Labor Standards Act and the Public Contracts Act-will result. Enforcement actions filed in the Federal district courts and in administrative proceedings under these two major laws have been mounting steadily. For the past several months actions have been filed at the rate of 100 or more per month. This rate of filing cases indicates that for the first time more than 1,100 cases will be filed during a fiscal year. This high plateau of effective enforcement activity will be curtailed by the House action because less staff will be available to try the cases when they come to trial. There will also be less legal advice available in support of the administration of the Federal Employees' Compensation Act, the Longshoremen's and Harbor Workers' Compensation Act, and other related workmen's compensation statutes. A proposed program increase for 1958 of $6,590 (1 additional attorney position) for the appellate litigation program was disallowed. This increase was justified because important cases testing wage determinations made under authority of the Public Contracts Act will reach the appellate court stage in 1958. In addition, in this program area there are still serious unresolved legal problems with respect to the Puerto Rican wage order program as a result of the drastic changes made by the 1955 amendments to the Fair Labor Standards Act. Another proposed program increase for 1958 of $11,325 (2 additional positions) for the employees' compensation program was also disallowed. With these additional positions, the amount of recoveries from third-party tortfeasors responsible for injuring Government employees during their work could be substantially increased. A large portion of such recoveries remains in the Treasury as a net gain to the Government. Activity 2. Interpretations and legal advisory services The House action reduced this activity by $42,225 (6 positions) under the 1958 estimate. This includes disallowance of the requested program increase of $7,825 and $34,400 reduction in operations below the 1957 base because of transferred and mandatory cost items. These items, in addition to a fund transfer from the "Mexican farm labor program" appropriation, covers contributions to the civil-service retirement fund and the departmental working capital fund which must be met in 1958. The House action, if sustained, will mean less available legal services to the constituent bureaus of the Department in the administration of the statutes entrusted to the Department. Of particular importance are the legal services, interpretations, and opinions which are given continuously to the Wage and Hour Division on the Federal wage, hour, and child labor laws; to the Bureau of Employment Security on the unemployment insurance, employment service, Mexican farm labor, and veterans' readjustment assistance programs; to the Bureau of Veterans Reemployment Rights on the reemployment rights statutes; to the Bureau of Employees' Compensation on the various workmen's compensation statutes; and to the Employees' Compensation Appeals Board in cases which are appealed to the Board. A proposed program increase for 1958 of $7,825 (1 additional attorney position) was sought in this activity for the employment security program. The legal work in this area has been added to significantly with supplemental unemployment insurance programs, numerous problems raised by State agencies under the Reed Act and various new unemployment insurance programs. Because of the increasing importance of these matters and of conformity questions regarding Federal-State relationships, the proposed increase is well justified. Activity 3. Wage determinations The House action reduced this activity by $23,953 (4 positions) under the 1958 estimate. This disallowance will result in a reduction by this amount in operations below the 1957 base because of transferred and mandatory cost items. These items cover contributions to the civil-service retirement fund and the departmental working capital fund. The House allowed an increase of $49,000 for the purpose of placing the supplemental funds provided in the current year, by transfer from the highway trust fund, on an annual basis in 1958. The House action, if sustained, will reduce the resources available to the activity for the predetermination of prevailing wages which become minimum on federally financed or assisted construction as required under the Davis-Bacon Act, as amended, and several other similar statutes. The time element is of vital importance in this work. Extended delays in collecting and evaluating the factual basis essential to the processing of these wage determinations, after being requested by the Federal procurement agencies, could result in holding Bureau of Employment Security (Mexican farm-labor program)_ Revised 1957 base_-. 1958 appropriation request_-_. Net change requested-- $2,021, 000 300,000 27,500 14, 600 2,363, 100 2, 600, 070 +236, 970 The House action reduced this activity by $36,584 (6 positions) under the 1958 estimate. This includes disallowance of the requested program increase of $17,915 and $18,669 reduction in operations below the 1957 base because of transferred and mandatory cost items which must be met in 1958. These items cover contributions to the civil-service retirement fund and the departmental working capital fund. The House action will mean a reduction in the trial litigation and employees' compensation programs. Less effective enforcement of the two principal Federal wage and hour laws-the Fair Labor Standards Act and the Public Contracts Act-will result. Enforcement actions filed in the Federal district courts and in administrative proceedings under these two major laws have been mounting steadily. For the past several months actions have been filed at the rate of 100 or more per month. This rate of filing cases indicates that for the first time more than 1,100 cases will be filed during a fiscal year. This high plateau of effective enforcement activity will be curtailed by the House action because less staff will be available to try the cases when they come to trial. There will also be less legal advice available in support of the administration of the Federal Employees' Compensation Act, the Longshoremen's and Harbor Workers' Compensation Act, and other related workmen's compensation statutes. A proposed program increase for 1958 of $6,590 (1 additional attorney position) for the appellate litigation program was disallowed. This increase was justified because important cases testing wage determinations made under authority of the Public Contracts Act will reach the appellate court stage in 1958. In addition, in this program area there are still serious unresolved legal problems with respect to the Puerto Rican wage order program as a result of the drastic changes made by the 1955 amendments to the Fair Labor Standards Act. Another proposed program increase for 1958 of $11,325 (2 additional positions) for the employees' compensation program was also disallowed. With these additional positions, the amount of recoveries from third-party tortfeasors responsible for injuring Government employees during their work could be substantially increased. A large portion of such recoveries remains in the Treasury as a net gain to the Government. Activity 2. Interpretations and legal advisory services The House action reduced this activity by $42,225 (6 positions) under the 1958 estimate. This includes disallowance of the requested program increase of $7,825 and $34,400 reduction in operations below the 1957 base because of transferred and mandatory cost items. These items, in addition to a fund transfer from the "Mexican farm labor program" appropriation, covers contributions to the civil-service retirement fund and the departmental working capital fund which must be met in 1958. The House action, if sustained, will mean less available legal services to the constituent bureaus of the Department in the administration of the statutes entrusted to the Department. Of particular importance are the legal services, interpretations, and opinions which are given continuously to the Wage and Hour Division on the Federal wage, hour, and child labor laws; to the Bureau of Employment Security on the unemployment insurance, employment service, Mexican farm labor, and veterans' readjustment assistance programs; to the Bureau of Veterans Reemployment Rights on the reemployment rights statutes; to the Bureau of Employees' Compensation on the various workmen's compensation statutes; and to the Employees' Compensation Appeals Board in cases which are appealed to the Board. A proposed program increase for 1958 of $7,825 (1 additional attorney position) was sought in this activity for the employment security program. The legal work in this area has been added to significantly with supplemental unemployment insurance programs, numerous problems raised by State agencies under the Reed Act and various new unemployment insurance programs. Because of the increasing importance of these matters and of conformity questions regarding Federal-State relationships, the proposed increase is well justified. Activity 3. Wage determinations The House action reduced this activity by $23,953 (4 positions) under the 1958 estimate. This disallowance will result in a reduction by this amount in operations below the 1957 base because of transferred and mandatory cost items. These items cover contributions to the civil-service retirement fund and the departmental working capital fund. The House allowed an increase of $49,000 for the purpose of placing the supplemental funds provided in the current year, by transfer from the highway trust fund, on an annual basis in 1958. The House action, if sustained, will reduce the resources available to the activity for the predetermination of prevailing wages which become minimum on federally financed or assisted construction as required under the Davis-Bacon Act, as amended, and several other similar statutes. The time element is of vital importance in this work. Extended delays in collecting and evaluating the factual basis essential to the processing of these wage determinations, after being requested by the Federal procurement agencies, could result in holding |