In applying the increases prescribed in the preceding tables to the wages of men paid on a monthly basis, the roads will substitute for each group of monthly wages of 1915, as listed in Column 1, the amount named in Column 4, on the same line. The inclusion of the percentages contained in Colum 2 is merely to explain the method of arriving at the amounts contained in Columm 3, which added to the maximum amount for each group named in Column 1 produces the "new rate per month" shown in Column 4, on the same line. Application of these new wages to the present payrolls of the railroads, as nearly as may be, indicates that the net wage increases granted will approximate $300,000,000 a year. The magnitude of this amount is not staggering when the whole expenditure for wages on the railroads is considered. And whatever its effect upon the mind may be, we regard such an expenditure as necessary for the immediate allaying of a feeling that cannot be wisely fostered by national inaction, and as not one dollar more than justice at this time requires. It will make hard places smoother for many who are now in sore need. It gives no bounty. It is not a bonus. It is no more than an honorable meeting of an obligation. APPLICATION OF THE SCALE These increases are to be applied to the rates of wages in effect on December 31, 1915. They do not represent a net increase at this time. Because our figures as to the increase of living costs have been gathered with reference to the two year period, January 1916 April 1918, the wage increases are reck oned with respect to the same dates. The telegrapher who holds the same position today that he did the last day of December, 1915, and who then received $75 a month and has received no increase since, will receive an additional wage of $30.75 per month. If he has received an increase in these two years of $10 per month, the recommended increase of his wage will be cut down by that much, making his net advance $20.75. The section hand who on December 31, 1915 received a wage of $50 per month will receive an increase of $21.50 per month, less whatever his monthly wage as section man may have been advanced in the intervening two years. In the application of the scale the wage runs with the place. If in the past two years an employee has been promoted, his new wage is based upon the rate of increase applicable to the new schedule governing the new place. Reductions in hours are not to be regarded as in creases in pay. This rule is made necessary first, by its justice, for it is not to be contemplated that hours are reduced to decrease earnings; and, second, by the impracticability of applying any other rule. In some cases the decrease in daily hours did effect an increase in total wages paid, by reason of overtime, but in other cases, where the railroads adjusted themselves to an eight- or a nine-hour day, there was no increase in the monthly compensation. To differentiate between these cases would be an interminable task. Moreover, we assume the good faith of all reductions in hours as being what they pretend to be. There are some few cases where the roads, by reason of abnormal conditions, largely local, and arising out of the extreme competition in certain trades, have granted wage increases which will well nigh cover, if not altogether cover, the increases here made. As to those who have received such increases, we advise no other course than that the scale be adhered to, for it has its foundation in principle and not in the compelling force of any unusual competitive conditions. In no event, however, should there be any reduction in wages from those now obtaining. The railroads must, however, maintain their comple ment of workers, and if, by meeting fairly, as here, the needs of the time, this end cannot be secured, there must be allowed play for other forces than those we have recognized. In the application of the scale, that percentage of increase is to be applied which is awarded to the normal time wages paid to the individual in each position in the railroad service on December 31, 1915. There are, however, employees of certain classes, and upon a number of roads, whose wages are paid upon a piecework basis, and there are also numbers of employees on practically all the roads whose hours of service at times run beyond the straight hours of service established for a day's work of the kind they perform. A practical plan for wage increases, in harmony with the scale, has been devised for application to piecework wages and wages for recognized overtime. (See Appendix V.) While the method of increasing wages here devised is manifestly one of simplicity when applied to the straight schedules of hourly, daily or monthly pay, we have found much difficulty in adapting the plan to the elaborate and intricate schedules of the trainen, from which there is apparently no desire on the part of the railroad operators or the trainmen to depart. This, however, we have succeeded in doing in such manner as to translate the increases into mileage rates, thus maintaining the existing schedules relating to the method of pay. Accepting the average monthly earnings of employees in the train and engine service for the fiscal year ended 1915 as accurately reflecting the rates paid to those classes, we have adopted, as the percentage of increase to be applied to the mileage rates obtaining for the several classes of trainmen, that percentage of increase which is awarded to employees generally whose earnings are equal to the average earnings of each of the several classes of trainmen. Thus, in the case of road passenger engineers, their average earnings in 1915 were $178.46. The individual employee in any other branch of the railroad service whose monthly wage is $178.46 will receive a wage increase of 11 per cent, and the road passenger engineers as a class will receive an increase of 11 per cent in their existing mileage rates. And the same method obtains for each of the classes of trainmen paid on the mileage basis. (See Appendix VI.) |