*Special AIK Program Business Climate k Employee Relations ✩ Several car loads of Louisville businessmen attended the ADX Workshop in Bowling Green January 29... even more attended the one in Lexington March 20... and dozens called to request that the program be given in Louisville! Actually, these two topics in only slightly condensed form were included as part of AIK's annual meeting program in October, which we thought would give an opportunity for those in the area to attend. But apparently these two "hot topics" were swamped in the publicity about more spectacular personalities and special events. So, in response to the growing impetus of this project and in answer to the specific demands for a repeat show in Louisville, here is YOUR OPPORTUNITY! To those who may have gone to other workshops not owing this was coming, our only answer is that we didn't either. The next will be at Harlan in May, and the final in Hopkinsville later. Presiding Luncheon 12:10 JOHN J. DELKER, President, Associated Industries of Kentucky MARION M. JOHNSON, Louisville Area Vice-President JOHN J. DELKER, vigorous young president of AIK, vice-president of Delker Brothers Manufacturing Company, Henderson, will discuss "political awareness" management needs to improve legislation, RAYBURN WATKINS, managing director of AIK, will document the improvements needed in Kentucky's tax, labor, and business climate, featuring facts related to cost of doing business in the state as compared to others. Stage-setting information for the two workshops. Both luncheon presentations take less than 30 minutes. The two seminars run simultaneously after lunch. Both topics are important to your business--so we urge you to have people at BOTH SESSIONS, Those who have failed to do so have uniformly expressed their regret after seeing the program! Conducted by: ASSOCIATED INDUSTRIES OF KENTUCKY "The Action Team for Kentucky Business" Featuring the two hottest topics of the day: * PREVENTIVE MEDICINE IN LABOR RELATIONS * CUTTING UNEMPLOYMENT COMPENSATION COSTS Time and Place: BROWN HOTEL--12:10 to 3:30 Employee Relations 1:45-3:30 WILLIAM F. GUTWEIN, special labor relations consultant to Associated Industries of Kentucky, will get down to brass tacks on the subject: PREVENTIVE MEDICINE IN LABOR RELATIONS. Gutwein is an outstanding labor relations specialist, with clients in 29 states... former director of industrial relations for McCall's and FawcettDearing... most of his work today is done on special retainer basis with small and medium sized firms. Hear his presentation developed especially for use at these ALK seminars covering such matters as... Getting your house in order ahead of time to avoid employee relations and labor problems. Getting, keeping employee loyalty. How to handle a union election. Employers' rights under the law, How best to exercise those rights in selling your side of the case. Current trends and tips on effective bargaining ★ Unemployment Comp. 1:45-3:30 FRED F. HOSLEY, Chairman of AIK's Unemployment Compensation Committee; Director of Employment and Personnel, Reynolds Metals. JOHN E. STEGER, Director of Industrial Relations of Associated Industries of Kentucky. With idle-pay benefits up to 80 an hour, Kentucky has the highest rate in the South and pays $59 a year inore to each recipient than national average. Only 5 out of every 1,000 applicants are disqualified--most liberal in the nation. Those who get on the rolls in Kentucky stay there longer than in any state. The effect: HIGH COSTS TO KENTUCKY EMPLOYERS! Idle pay costs more than twice as much in Kentucky as the state corporate income tax! One claim can cost up to $832 ($32 a week for 26 weeks). If your profit is 4% on each dollar of sales, you would have to sell $20, SOC worth of goods or services to make enough to pay one such claim, All Business People Invited Unemployment Compensation Legislative Action Louisville Chamber of Commerce 300 West Liberty Street Louisville 2, Kentucky April 9, 1957 To Members of the Louisville Chamber of Commerce All businessmen have an important stake in the high cost of unemployment compensation in Kentucky and in the growing need for "preventive medicine" in labor and employee relations. These subjects are top-priority projects of Associated Industries of Kentucky. The Louisville Chamber of Commerce is pleased to cooperate with AIK in its scheduled ... * LOUISVILLE WORKSHOP ON EMPLOYEE RELATIONS Featuring: 1. Cutting Costs of Idle Pay 2. Preventive Medicine in Labor Relations About thirty minutes will be used at the luncheon to present background materials on the two subjects, which will then be dealt. with in separate seminars, running concurrently. The meeting will end at 3:30. The enclosed fact sheet and letter from Louisville area directors of AIK give you additional details. The program has been tested and refined in a series of area meetings throughout the state and I am sure you will find it a very worthwhile project. Use the form at the bottom of the enclosed agenda to make workshop reservations at $3.00 each. Jennart. Winsel KENNETH P. VINSEL Louisville Area Directors Area Vice-President MARION M. JOHNSON, Treasurer Louisville Directors ROBERT P. BONNIE, Chms, of Brd. Kentucky Color and Chemical Co. J. B. HENDRICK, JR., Manager J. J. B. Hilliard and Company WILLIAM T. INGRAM, Gen. Sales Mgr. SPENCER T. JONES, Factory Manager J. FRANK KURFEES, JR., President ROBERT S. LOGAN, Chinn, of Board LESTER H, MEANS, Manager, Employee B. F. Goodrich Chemical Company Belknap Hardware and Mfg. Company Elizabethtown WALTER A BOONE, President Boone's, Incorporated Shelbyville BARLOW W. BROOKS, President Roll Forming Corporation Carrollton J. G. HAMBURG, Works Manager Avco Manufacturing Company Brandenburg J. G. WOODS, Vice-President USE THE REGISTRATION FORM ON THE ENCLOSED FACT SHEET: The cost is only $3.00 per person, which includes the luncheon, You'll not be disappointed--and you'll consider this one of your best investments of 210 minutes in many a day. THE NEXT WORKSHOPS... Will be ta Halan May 14 and Hopkinsville shortly thereafter. For those who attended previous conferences, this represents an opportunity to cover the seminar subject they missed earlier. For the benefit of those who want to get a "double shot" at this meeting and one of the two scheduled later, the invitation is broadened beyond the Louisville area. Mr. EZELLE. So they say one thing in Kentucky and another thing here in Washington, D.C. They say here it can be done there and they say there in effect that it cannot be done anywhere but here. Now, for some years management organizations in Kentucky, including the State chamber of commerce and the Associated Industries of Kentucky, have fought improvements in our law at the State level on the strength of the argument that if we do we will drive industry to other States. So this argument becomes invalid when we improve compensation. at the Federal level. It would seem to me that the management should be up with me taking my side of the situation if they sincerely wanted to prevent inequities in State legislation that might lose industry to Kentucky. I understand they have been up here fighting it. To show how far back in the woods those fellows are, they are even opposed to the State employment office in Kentucky. I am going to submit for evidence a letter from the department of economic security, division of employment service, which reads in part: To All Employers: A release by Associated Industries of Kentucky, dated October 3, 1958, entitled "Private Employment Agencies and Government Competition" states that the Public Employment Service "constitutes a formidable competitor, financed by Government itself in competition with private employment agencies." So, gentlemen, they are even opposed to our having a Federal financed employment office. The CHAIRMAN. I did not quite understand. Who wrote this letter? Mr. EZELLE. This is an answer to their letter by the division of economic security, V. E. Barnes, sir, who is the commissioner of the department of economic security of our State. He is answering a communication to him and quoting their letter direct. The CHAIRMAN. Without objection, the letter will be made a part of the record. (The letter referred to follows:) To all employers: DEPARTMENT OF ECONOMIC SECURITY, DIVISION OF EMPLOYMENT SERVICE, A release by Associated Industries of Kentucky, dated October 3, 1958, entitled "Private Employment Agencies and Government Competition," states that the public employment service "constitutes a formidable competitor, financed by Government itself, in competition with private employment agencies." The article deplores the existence of the public employment service, and suggests that employers "think first of private taxpaying service establishments rather than the Government-financed competitors when you have employment needs to be met and require outside assistance to fill them." It is a bit surprising that an employers' association would take this position, inasmuch as by so doing they are playing into the hands of those who would destroy the State administered employment security programs and, as a result, aid in the establishment of a centralized organization controlled by the Federal Government. It is then that, as Associated Industries says, the Federal Government would “have tremendous power over people seeking jobs and over employers seeking workers." Elimination of the public employment service in Kentucky would seriously cripple the State operated program of unemployment insurance which has been one of the greatest cushions in support of our business economy in periods of depression. All unemployment insurance claimants are required to register for job placement with the employment service. Without this control and the opportunity for job referral of claimants, there would be no organized facility for getting claimants back into the labor force, and an additional and unnecessary drain would be placed on the unemployment insurance fund by reasons of claimants remaining on unemployment rolls for a longer period of time. This would weaken the unemployment insurance program, and play into the hands of those who are critical of a State administered program and who are encouraging a centralized Federal program. The Social Security Act requires that the Secretary of Labor shall certify each year to those State unemployment insurance laws which have been approved as being in conformity with the Federal Social Security Act, and the Federal Unemployment Tax Act. One of the conditions of approval is that unemployment compensation payments be made through public employment offices. Should the Secretary fail to certify to a given State law, the Federal tax offset granted to employers of such State would be revoked. The effect of this would be to completely eliminate the effects of the experience rating system and require the employer to pay the full 3 percent payroll tax to the Federal Government. If the State should attempt to continue the administration of an unemployment insurance program, the State tax would of necessity be superimposed on the 3 percent Federal tax. To destroy the employment service would, therefore, mean, in addition to weakening the unemployment insurance program, the placement of unnecessary tax burdens upon employers. The employment service and unemployment insurance programs are operated equally for the benefit of a person seeking a job as well as an employer seeking a worker. This is the basic function of the employment security program. To deprive workers of the benefits of a public employment service would be to place upon them the financial burden of paying private agencies a high proportion of their first month's salary or wages in order to secure employment. This is a heavy price to pay for a worker who may have had no income for a considerable period of time. Management groups should not lose sight of the fact that much of the development of the present public employment service has been encouraged by both industrial establishments and labor unions. These groups, from all over the country, requested the Bureau of Employment Security to conduct a research program into better employment practices as a further aid to them. As a result of this research, the Bureau has recommended hiring practices that have been adopted by industry and fee-charging agencies throughout the country. This research has brought about occupational analysis and industrial service programs that have saved industrial establishments millions of dollars in turnover, proper job classification, absenteeism, job sequency, etc. The employment service has established over 400 specific tests for industry, and these tests have proven 85 percent accurate in helping employers to know the natural abilities of new workers, as well as their ability to learn the job. The division of employment service is the only source of statewide information on the labor market, and, as a service to the public, it conducts labor market surveys available to management groups, chambers of commerce and local communities in helping new industry to locate in the State, to provide new jobs to people, and at the same time help relieve employers' accounts from unemployment benefit charges. There is no question but that the joint operation of the unemployment insurance and employment service program results in a saving of industrial manpower, the cutting of operating costs, helping employers to protect their reserve accounts through job placements by the referral of unemployment insurance beneficiaries. This service has meant much in helping employers to achieve or maintain reduced tax rates. An erroneous impression is sometimes created that the employment service hires and places people in industry. The employment service actually recruits workers who are unemployed or otherwise seeking employment, screens them on their past employment record, tests them on their natural abilities, and refers the best qualified worker in the area to the employer according to his specifications. If there are no qualified workers in a particular area meeting the employers' specifications, as employment service only, through its nationwide clearance system, is able to recruit workers from anywhere in the United States quickly and easily to fill the employers' requirements. It is up to the employer to do the hiring, merely using the employment office as a service agency. Through the coordinated placement program, which can |