Code of fair competition for the automobile manufacturing industry


Material Information

Code of fair competition for the automobile manufacturing industry as submitted to the administrator and approved by President Roosevelt on August 26, 1933
Physical Description:
9 p. : ; 23 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Automobile industry and trade -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry no. 1403-1-04."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004937999
oclc - 23738321
lccn - 33036095
System ID:

Full Text

For sale by the Superintendent of Documents. Washington, D.C. '- -/I Pnre 5 cents

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ON AUGUST 26, 1933

REGISTRY No. 1403-1 04



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An application having been duly made, pursuant to and in full
compliance with the provisions of Tit~le I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Automobile Malinufacturing IndustryT, and
hearings having been held thereon and t~he Admiinistrator having
rendered his report containing an analysis of the said Code of Fair
Competition together with his recommendations and findings with
respect thereto, and the AIdminist~rator havinga found that the said
Code of Fair Competition complies in all respects writh the pertinent
provisions of Title I of said Act and that the requirements of clauses
(1) and (2) of subsection (a) of Section .3 of the said Act have been
Now, therefore, I, Franklin D. Roosevelt., President of the United
States, pursuant to the authority vested in me by Title I of the
National Industrial Recovery Act, approved June 16, 1933, aind other-
wrise, do adopt and approve t~he report, recommendations and find-
ings of the Administrator and do order thalt t~he said Code of Fair
Competition be and it is hereby approved.
H Uan S. JoHNSON, A.dminis1taOtor
August 6, 1988.
8663--33 (1 1


W~tashington, D.C., Auglust 5, 1988.
The 1T'hite House.
MY DEAR h9R. PRESIDENT: I have the honor to submit and recom-
mend for your approval, the Code of Fair Competition for the Auto-
mobile Mfanufacturing Industry. The Code has been approved by
the Industrial Advisory Board, the Labor Advisory Board, and the
Consumers' Advisory Board.
A9n analysis of the provisions of the Code has been made by the
Administration and a complete report is being transmitted to you.
I find that the Code complies with the requirements of clauses 1 and 2
subsection (a) of section 3 of the National Industrial Recovery Act.
I am, my dear Mir. President,
Very sincerely 3;ours,
(Signed) .HUGH S. JoHNSON,



(August 25, 1933)

The following provisions are established as a code of fair competition
for the Automobile M~anufacturing Industry:


The term "motor vehicles" as used herein means automobiles,
including passenger cars, trucks, truck tractors, busses, taxicabs,
hearses, ambulances, and other commercial vehicles, for use on the
highway, excluding motorcycles, fire apparatus, and tractors other
than truck tractors.
The term "Industry" as used herein includes the manufacturing
and assembling within the United States of motor vehicles a~nd bodies
therefore, and of component and repair parts and accessories by manu-
facturers or assemblers of motor vehicles.
The term employeese" as used herein means all persons employed
in the conduct of such operations.
The term "'employers"' as used herein means all individuals, part ner-
ships, associations, trusts, and corporations in the Industry by whom
such employees are employed.
The term "Chamber" as used herein means National Automobile
Chamber of Commerce, a trade association having its office at No.
366 M~adison Avenue, New Y'ork City.
The term "effective date as used herein means the tenth day
after this Code shall have been approved by the President of the
Umited States.
The term "'expiration date" as used herein means December 31,
1933, or the earliest date prior thereto on which the President shall by
proclamation or the C~ongress shall by Joint Resolution declare that
the emergency recognized by Section 1 of the National Industrial
Recovery A~ct has ended.
The term "city as used herein includes t~he immediate trade area
of such city (which in t.he case of Detroit shall be deemed to include
Pontiac and Flint).

On and after the effective date, and to and until the expiration date:
The minimum wages of fatctory~ employees covered hereby shall be
at the' following hourly rates regardless of whether the employee is
compensated on the basis of time rate or piece rate or otherwise:
.... in cities having 500,000 population or over __ _._ ........ .... 43
.... in cities having 250,000 and less than 500,000 population .. -_ 41
.... in cities or towns having less than 250,000 population..__ .. 40

Prvided, however, that apprentices and learners and females not
doung the same work as adult males shall be paid, not less than 87%
percent of said minimums, but the number of such apprentices and
learners and females not doing the same work~ as adult males employed
by any employer shall not exceed 5 percent of the total number of
factory employees of such employer including subsidiary and affili-
ated companies.
Equitable adjustment in all pay schedules of factory emildrijrhes.,
above the minimums shall be made on or before September 15, 1933,
by any employers who have not heretofore made such adjustments,
and the first monthly reports of wages required to be filed under this
Code shall contain all wage increases made since May 1, 1933.
The minimum wages of office and salaried employees covered here-
by shall not be less than the following weekly rates:
,-.- in cities havling 500,000 population or over, at the rate of $15 per week.
...._ in cities having 250,000 and less than 500,000 population, at the rate of
$14.50 per week.
.. in cities or towns having less than 250,000 population, at the rate of
$14 per week.
There are substantial fluctuations in the rate of factory production
throughout each year, due mainly to the concentration of a large part
of the annual de~mandt for cars within a few months, and also to the
slowing down of employment in connection with changes in models
and ot her causes beyond the Industry's control.
To lessen t~he effect on employment of these conditions, it has been
the policy of the Industry to adjust working hours, in order to retain
the greatest number of employees and so far as practicable adjust
the manufacturing schedules of component parts to allow a more
uniform schedule of hours. The Industry will continue: this policy.
The progressive falling-off of retail sales during the years of depres-
sion, resulting in the necessityof repeated adjustments downward in
production schedules, had isimportant influence in causing an
abnormal fluctuation in employment schedules.
Before the presentation of this Code, the Industry had gone far in
spreading available work to relieve unemployment and under this
Code it proposes to spread the work as far as practicable in its judg-
ment, consistent with the policy of giving each employee a reasonable.
amount of worki in each year.
For this purpose it is made a provision of this Code that employers
shall so operate their plants that the average employment of all
factory employees (with exceptions stated below) shall not exceed
thirty-five hours per week; for the period from the effective date to
the expiration date, and the hours of each individual employee shall.
so far as practicable conform with this average and shall in no case
exceed the same by more than three percent.
In order to give to employees such average of thirty-five hours
per week, it will be necessary at times to operate for substantially
longer hours, but no employee shall be employed for more than six
days or 48 hours in any one week, and all such peaks shall be absorbed
in such average.
In order that production and employment for the main body of
employees may be maintained with as few interruptions as posexble,
it is necessary, and it is a part of this Code, that the supervisory

sstaB and employees engaged in the preparation, care, and maintenance
ofE plant machiner and facilities "of and foir production, shall be
enempt from the weekly limitations above provided, but the hours
of employment of any su-ch exempted employee engaged in t~he
prepalratiion, care aind maintenance of factories and machinery of
and for production shall not exceed 42 hours per wceek a~veraged on
an annual basis.
Ofli e and other salaried employees, covered hereby, receiving less
ad Eper~?pa week shall not work more than 48 hours in any one
we~e and not more than an average of 40 hours per week for the
period from the effective date to the expiration date. Employees
receiving more than 835 per week and executives and managerial
and supervisory staffs are not subject t~o any hourly limitations.
The IndustryT recognizes the serious problem of major fluctuations
in production due to concentrated seasonal customer demand and
changes in the rate of production caused by changes in models,
which changes are necessaryT. Thel C~hacmbr pledlges itself to. mnake a
further study of this problem in an effort to develop any further
practical. measures which can be taken to provide more stable and
continuous employment and to reduce to a minimum t~he portion of
employees temporarily employed and to submit a report thereon to
the Administrator by December 1, 1933.

Employers in the Industry shall not employ a~ny person under the
age of 16 years. The Chatmber states thast child labor has at no time
ever been a factor in the Automo3bile Industry.

Each employer engaged in the Industry7 will furnish to the CIhamber
as hereinbelow provided, approximately every four weeks, duly certi-
fled reports in such form as may hereafter be provided showing actual
hours worked by the various occupational groups of employees and
wages paid.

For tlhe purpose of supplying the President and the Ad~ministrator
with requisite data as to the observance and effectiveness of thiis ICod~e
and the administration thereof, thfe Chamber is hereby designated-
(a) To collect from the members of the Indust~ry all data and statis-
tics called for by this Code, or required by the President, or reasonably
pertinent to the effectuation of Title I of the National Indulstriial
Recovery Act, and compile the same, and disseminate -among thne
members of the Industry summaries thereof, sli in s-uch fornm and
manner as the Chamber shall reasonably prescribie subject to approval
by the Administrator.
(b) To represent t~he Industry in conference with the A5dministrator
with respect to the application of this Code and of said Act andi any
regulations issued thereunder; provided, however, that as regards all
matters mentioned in this paragraph (b), the Chamber shall have no
power to bind the Industry or any subdivision thereof. The President
or the Administrator may designatte a representative to participate in
such conferences, who shall have access to all data and statistics

collected by the Chamber as above provided. The Chamber or its
authorized committee or agent shall hold itself in readiness to assist
and keep- the Administrator fully.advised, and to meet with the
Administrator's representative from time to time as requested to
consider and study any- suggestions or proposals presented upon behalf
of the Administrator or any member of the Industry regarding. the
operation, observance, or administration of this Code.
(c) The duties of the Chamber above referred to shall be.exrewesed
by the Chamber by its Board of Directors,. which may delegate anyv:of
said duties to such agents and committees as it may appoint whose
personnel, duties, and powers may be changed.

Employers in this Industry shall comply with the following require
ments of Section 7 (a) of Title I of the National Industrial Recovery
Employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from
the interference, restraint, or coercion of employers of labor, or their
agents, in the designation of such representatives or in self-organiza-
t~ion or in other concerted activities for the purpose of collective
bargaining or other mutual aid or protection; (2) no employee and no
one seeking employment shall be required as a condition of employ-
ment to join any company union or to refrain from joinmng, organizing,
or assisting a labor organization of his own~ choosing; and (3) employers
shall comply with the maxrimu~m hours of labor, minimum rates of
pay, and other conditions of employment, approved or prescribed by
the President.
WSithout in any way attempting to qualify or mnodifyr, by inter-
pretation, the foregoing requirements of the National In~dustrial
Recovery Act, employers in this Industry may exterc~ise their right
to select, retain, or advance employees on the basis of individual
merit, without regard to their membership or nonmembership in any
As required by Section 10 (b) of Title I of the National Industrial
Recovery Act, the following provision is contained in this Code: The
President may from time to time cancel or modifyv any order, approval,
license, rule, or regulation issued under said Title.

By presenting this Code, the Chamber and others assenting hereto
do not thereby consent to any modification thereof and they reserve
the right to object individually or jointly to any such modlifications.

Such provisions of this Code as are not required to be included
therein by the National Industrial Recovery Act may, upon t~he
application of t~he Industry or a subdivision thereof and with the
approval of the President, be modified or eliminated. It is contemn-
plated that from time to time supplementary provisions to this Code Codes may be submitted in behalf of t~he Industry or
ivarious~subdivisions thereof for the approval of t~he President.