by their failure to use each year the amount of leave which actually accrued to their credit. Our group sincerely believes that this condition has arisen due to the fact that the Government has failed to provide unemployment compensation and survivors insurance for its own employees. Since Federal employees have not been given all the benefits of social and economic legislation applicable to private employment, our people have been compelled to take steps to safeguard themselves and their families from the ills inherent to unemployment by foregoing the pleasures of vacations until such time as a maximum of annual leave could be accumulated. In addition to the reserve of leave which Federal employees have accumulated as unemployment insurance, many have been compelled to withdraw their retirement deductions from the Civil Service Commission to provide them with sustenance during unemployment. This too is regrettable in that the employee who secures a refund of his retirement withholdings automatically removes himself, and possibly his widow, from ultimate retirement benefits. However, under existing regulations, those persons employed in the Government service since September 1, 1950, have been given nonstatus, emergency indefinite appointments, with the result that their salaries are not subject to civil-service retirement deductions but instead for social-security deductions. As a consequence, this large group will not be able to secure a refund of retirement deductions when their service is terminated and will be compeled to rely on their own resources plus a very small amount of leave which they may be able to accumulate. The accumulation of annual leave has also recently been seriously curtailed to the extent that any annual leave which accrued in 1950 must be used by December 31, 1950, or June 30, 1951, depending on the amount of leave which an employee had to his credit on January 1, 1950. These last two mentioned amendments to the Government's employment and leave policies are cited to show the absolute necessity of extending Federal unemployment coverage to Federal employees unless they are to actually go on the dole when their service with the Government is completed. As you gentlemen are aware, the matter of extending unemployment insurance coverage to Federal employees is not a recently advanced theory. The question has been thoroughly investigated and explored by committees of the Senate and other interested groups. The Senate passed bills in 1944 and in 1945 extending coverage to Federal employees. The Senate Committee on Finance in 1948 was urged to enact such legislation by its Advisory Council on Social Security. A step in this immediate direction was also taken by the Congress this year when it amended the social-security laws to extend old-age and survivors insurance to Federal employees not subject to civil-service retirement. The Special Committee on Postwar Economic Policy and Planning stated in its report to the Senate: "The committee feels that employees of the Government, including War Shipping Administration, should be brought under the act." Senator George was chairman of this committee. In conclusion, we wish to state that we are only asking throught the passage of H. R. 8059 of legislation that will cause the United States Government to provide benefits for its own employees that the Government has required of private business since 1936. Hon. AIME J. FORAND, MISSOURI STATE CHAMBER OF COMMERCE, House of Representatives, Washington, D. C. On November 17, 1950, the Missouri State Chamber of Commerce unemployment-compensation committee officially went on record in opposition to any further federalization of the unemployment-compensation system. This committee meeting had members in attendance representing all major segments of Missouri's economy, including farmers and organized labor. Sincerely yours, E. L. FRENCH, Committee Chairman. (The subcommittee thereupon adjourned until Wednesday, Decem ber 20, 1950, at 10 a. m.) UNEMPLOYMENT INSURANCE WEDNESDAY, DECEMBER 20, 1950 HOUSE OF REPRESENTATIVES, The subcommittee met at 10 a. m., Hon. Aime J. Forand (chairman) presiding. Mr. FORAND. The committee will come to order. The first witness this morning is Mr. John W. Edelman, Washington representative of the Textile Workers Union of America, CIO. Mr. Edelman, we will be glad to have you give us your statement. First, give us your name and the capacity in which you appear for the purposes of the record. STATEMENTS OF JOHN W. EDELMAN, WASHINGTON REPRESENTATIVE, TEXTILE WORKERS UNION OF AMERICA, CIO, AND MRS. KATHERINE ELLICKSON, EXECUTIVE SECRETARY, SOCIAL SECURITY COMMITTEE Mr. EDELMAN. I am John W. Edelman, Washington representative of the Textile Workers Union of America, CIO. I am appearing on this occasion on behalf of the CIO committee on social security. Mrs. Katherine Ellickson, who is with me, is the executive secretary of the CIO Committee on Social Security. If there are questions, we will answer them jointly. Mr. FORAND. You may proceed. Mr. EDELMAN. Over this past week end almost 800 members of my union from all parts of this country were in Washington attending a wage strategy conference. What I felt and observed among my own members is, I am sure, equally true of the memberships of other labor unions. It was evident that every man and woman in this gathering felt a deep sense of apprehension and concern over the grim developments in the world picture. The leaders of our organization did not need to spell out the fact that grave dangers must be facing this Nation, after we gave a brief explanation of the sweeping powers with which President Truman has invested the new office held by Mr. Charles E. Wilson. Our people sensed that such extraordinary powers to control and mobilize our economy would never have been delegated were it not that real and present danger menaces these United States and other free peoples. Another thing that came out clearly and forcefully: rank-and-file American citizens simply cannot understand why Washington has delayed for so many weeks taking the steps that were announced last week end. Americans as a whole are, we believe, not merely prepared to accept the imposition of needed controls, but are impatient because such measures have not already been put into effect. Talking with these people right from the shops I, for one, was tremendously impressed that American workers are prepared to go all-out in support of any measures that may be needed for speedy mobilization enabling our country to resist Communist aggression. We know all too well the ruthless and destructive methods of the communists from practical experience in our unions. Let me point out, however, that while our workers will accept whatever sacrifices or inconveniences this crisis may require, they are very firm in their belief that we would seriously jeopardize our ability to produce and to build a military machine, if we fail to take all necessary and feasible steps to preserve our American living standards and our democratic institutions. The matter of economic security in time of drastic economic shift is a consideration that is uppermost in the minds of every workingman. This is a vital factor affecting the speed and success of our mobilization drive. When the President sent his message to Congress last April urging the adoption of extended coverage, Federal standards for State unemployment insurance laws, and reinsurance grants, he obviously had in mind the need for what we hoped would be a peacetime economy. Now the pressing issue is the protection of American workers during the rapid dislocations of conversion for war. Already cut-backs in the use of copper, steel, and other materials are threatening the jobs of tens or hundreds of thousands of workers. Many have already received lay-off notices. There is no assurance that war orders will shortly flow into the plants where civilian production is curtailed. Many months may pass before these men and women again have full-time work. The rent must be paid and their children must be fed just the same. These very workers, when retooling is completed, will be called upon to work long hours under heavy pressure. It is in the national interest that we maintain the health of these workers and their families and hold a trained or well located work force together. No Conversion unemployment surely is a national responsibility. employer, no State can prevent it or deal adequately with it. Bombing, if it materializes within our borders, may similarly throw people out of jobs until repairs can be made or new emergency facilities got into working order. Later, as war production orders shift, or if plants are decentralized, other types of unemployment will occur. We hope that not too far off in the future we will go through a period of reconversion for peace. Here again the Nation will be confronted with unemployment problems which will be of such scope that no one State or group of States could possibly grapple with it. Irrespective of its formal authorization or assignment, it stands to reason that this subcommittee has an important responsibility to make recommendations regarding action Congress should take in this crisis to create the necessary safeguards and economic mechanisms appropriate to the vast and unlooked for problems now confronting our Nation. We deeply deplore the failure of the entire Ways and Means Committee to consider problems of unemployment insurance following the President's recommendation last spring. Unemployment insurance is necessarily a complex problem and must be studied before action can be taken. Speedy initiation of action is absolutely essential, and we urge this subcommittee to make vigorous representations to that effect. The CIO's position on unemployment insurance was set forth last month at our annual convention in Chicago. I would like to introduce in the record Resolution No. 34 on both employment problems and unemployment insurance during the mobilization period. Let me quote specially pertinent paragraphs at this point, in addition to appending the entire resolution to my statement. Mr. FORAND. Without objection, that may be done. Mr. EDELMAN. Restricted appropriations have thwarted the efficient functioning of both Federal or State employment security agencies, a situation which has been sized upon as an argument for legislation to undermine already weak Federal standards. The Interstate Conference of Employment Security Agencies, composed of State administrators of unemployment insurance, has lobbied at taxpayers' expense for legislation to undermine the system for whose proper administration they are responsible to the people. The interstate conference has, in many instances, assumed regulatory and supervisory functions properly belonging to the Federal agency responsible for uniform standards to carry out the purposes of the legislation. It played a shocking role in helping to push the Knowland amendment undermining Federal labor standards. We urge immediate return to a Federal system of administration of the public employment offices and of unemployment insurance so that adequate provision may be made for efficient placement of workers and adequate benefits may be secured for persons rendered unemployed as a result of the mobilization effort. A national system of unemployment insurance, like national laws on social insurance, will eliminate the confusion and inadequacies of State laws, which impedes the movement of workers from State to State as required in this national emergency. If congressional support for such a national system cannot now be obtained for all workers, we favor as an immediate interim step, in spite of its limitations, a Federal bill to provide adequate Federal standards on unemployment insurance, to extend coverage, to make reinsurance grants available to States with high costs, to end experience rating, and to provide national benefits for servicemen and Federal employees. We urge immediate repeal of the Knowland amendment so that unemployment insurance will not be used to undercut wage standards and destroy unions. (The resolution is in full as follows:) (Resolution No. 34) EMPLOYMENT PROBLEMS AND UNEMPLOYMENT INSURANCE DURING THE MOBILIZATION PERIOD Manpower problems can be effectively solved only if there is respect for the human needs, dignity, and freedoms of the men and women who supply the manpower. They are not machines to be pushed around and directed from above. They are responsible citizens in a democracy which must keep strengthening its democratic institutions if it is to win the world-wide struggle against communism and other forms of totalitarianism. American labor is fortunately far better prepared than at the beginning of World War II to produce essential goods and services for defense and for civilian consumption. More able-bodied, well-trained men and women are available, and larger numbers than ever before are already employed so that a minimum of delay in placement is required. The skills acquired during the last war and the tremendous development of productive techniques and capacity during the last decade are available for rapid expansion of total output. On the other hand there is little slack in the economy at present, and relatively little unemployment. Hence manpower problems will arise early and acutely in the mobilization program. Experience during World War II has taught important lessons which should be applied during defense mobilization or if large-scale war should develop: 1. Manpower problems must be considered in the determination of basic policies on location of plants, allocation of scarce materials, credit controls, placement of war contracts, and selection for service in the military forces. 2. Organized labor must have adequate representation in policy decisions on such matters. 3. Men and women will be reluctant to work under substandard conditions and the resultant alleged manpower shortages will be seized upon as an argument for national service legislation, as was done in World War II. 4. American labor is prepared to cooperate wholeheartedly in national defense. We insist, however, upon proper recognition, conditions, and equality of treatment. 5. Voluntary cooperations of workers through their unions can more effectively solve manpower shortages than coercive measures. 6. The labor force can be expanded and more efficiently utilized if workers are utilized without prejudice because of race or sex, if job are adapted to the special needs of the aged, the handicapped, and mothers available only for part-time work. 7. The labor force is increased and absenteeism and labor turn-over are reduced by the provision of adequate community facilities, including decent housing, medical care, day-care centers for children, transportation, and so forth. 8. If left under State control, the public employment offices will not provide an efficient machinery for job placement, and will interfere with the movement of workers to places where they are most needed. President Truman has assigned basic responsibility for handling manpower problems to the United States Department of Labor, which has created an Office of Defense Manpower. It is important that spokesmen for this Office appreciate that manpower problems must be solved in the framework of American democracy, through voluntary cooperation, and without resort to governmental coercion which is unnecessary and could only serve to antagonize the workers and impair production. Restricted appropriations have thwarted the efficient functioning of both Federal or State employment security agencies, a situation which has been seized upon as an argument for legislation to undermine already weak Federal standards. The Interstate Conference of Employment Security Agencies, composed of State administrators of unemployment insurance, has lobbied at taxpayers' expense for legislation to undermine the system for whose proper administration they are responsible to the people. The interstate conference has, in many instances, assumed regulatory and supervisory functions properly belonging to the Federal agency responsible for uniform standards to carry out the purposes of the legislation. It played a shocking role in helping to push the Knowland amendment undermining Federal labor standards: Now, therefore, be it Resolved, The Congress of Industrial Organizations reaffirms its belief that manpower problems can be dealt with constructively and effectively only through voluntary cooperation of American labor. We again offer our cooperation in the solution of manpower problems and we continue our firm opposition to national service legislation. We urge President Truman, the Secretary of Labor, and Congress to take necessary steps to insure full use of the Nation's manpower resources on a democratic basis, with full participation of labor, consideration of manpower problems in basic production and procurement decisions, and the elimination of antilabor practices and substandard wages and working conditions. We further urge effective measures to end discrimination against Negroes and women, to improve training facilities, to attract additional groups into the labor force through adaptation of jobs to human needs and provision of adequate community facilities. We urge immediate return to a Federal system of administration of the public employment offices and of unemployment insurance so that adequate provision may be made for efficient placement of workers and adequate benefits may be secured for persons rendered unemployed as a result of the mobilization effort. A national system of unemployment insurance, like national laws on social insurance, will eliminate the confusion and inadequacies of State laws, which |