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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
LOCK AND BUILDERS HARDWARE
AS SUBMITTED ON AUGUST 29, 1933
REGISTRY No. 1114--07
The Code for the Lockr and Builders Hardware Manufacturing Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry
CODE OF FAIR COMPETITION FOR THE LOCK AND
BUILDERS' HARDWARE MANUFACTURING INDUSTRY
To eff~ectuate the policy of Title I of the NATIONAL INDUS-
TRIAL RECOVERY' ACT, the following provisions are established
as a National Indlustrial Recoveryl Code for the Lock; and Builders'
Hardwmare ~anu fact~uring Industr~y.
The term LockI and Bu~iTElder' Harcdwarlie MIanuzfactcturin Ind~ustry
as used herein is defined to mean the manufacture for sale of all
Locks and Builders' Hardware usually classified a~nd known as
Finishlinga Hardware, K'eys and Key Blanks, Padlocks, Trunk andl
Suitcase Locks, Cabinet Locks, Automiobile Locks, Bank Locks,
Combination Locks, Night Latches, Deadlocks, Door Closers, and
such other allied products as are usually affiliated thereto.
The term person as used herein shall include natural persons,
corporations, partnerships, and associations.
The term employer a.s used herein shall include every person
promoting or actively engaged in the manufacture for sale of the
products of the Lock and Builders' Hardware Maonufacturing
Industry as herein defined.
The term member of the code as used herein shall mean any
employer in the Lock and Builders' Hardware Mfanufacturing
Industry who shall have subscribed to the provisions of this code.
The term "L effective date as used herein is defined to mean the fif-
teenth day after this code shall have been approved by the President
of the United States.
AnaCLEr TII-STATUTORY REQUIREMENT
Employers of the Lock and Builders' Hardware 1Manufacturinga
Industry shall comply with the requirements of the National Indus-
trial Recovery Act as follows:
(1) That 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-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection;
(2) That no employee and no one seeking employment shall be
required as a. condition of employment to join any company umion
oi- to refrain from joining, organizing, or assisting a, labor organi-
zation of his own choosing; and
(3) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
ARIrrCLs III TW~AGES AND HoURs
1. On and after the effective date employers shall not employ any
person under the age of sixteen years.
2. Emlployers shall not operate on a Schedule of hours on and
after the effective date for p~er'sons engaged in the processing of
products of the ZLock andl Builders' Hardw~are Ma~nufacturing In~dus-
try) and~ the labor operations dir~c~tly incident thereto in excess of
forty hou~rsi per weeAk excepting repair and maintenance shop crews,
engrineers,~ fireme~n, shipping, watching and outside cr~ews and clean-
ers; provided, hloweverl that timne-andl-one-thir~d shall be paid for
overtime in excess of forty hours per w~eek to such repair and main-
tenance shop ct\rews, engineers, firemen. shipping, watching: and out-
side crews and cleaners; and also provided that this limitation of
hours shall not apply if an emergency demand has placed an unusual
and temporary burden for production upon an employer.
At the end of each enlendar month every employer shall report to
the admiinistrative agency hereinafter provided for in such detail as
mlay be :reqluiredl thte number of mnan-hours worked in that month for
emnergencyr reasons and the ratio which said emergency man-hours
bears to the total man-hours of labor during t~he said month.
3. Employers.r shall not operate on a schedule of hours for all other
employees, except executive, administrative and supervisory em-
playees, and travelling andl commnisrsion sales people, in excess of
forty hours per wneeki.
4. On and after the effective date the minimum wage that shall be
paid by any employer to any employee engaged in t.he processing of
the products of the Lockl and Buildlers' Hardware Mlanufacturing In-
dustry and any labor operations directly incident thereto shall be
thiirtyv-five cents per hour for, male employees and thirty cents per
hour for female employees unless the rate per hour for the same class
of labor on July 1,5, 1929, was less than thir~ty-five cents and thirty
cents, respectively; in which case the r~ate per houlr shall be not less
than thne rate per hour pa~id onr July 15, 1929; and provided also
that in no event shaT~ll thae rate, per houlr be less than thirty cents per
hour: andl pr1ovided further that ensual and incidental labor and
learners and, employees dlisabledl by oldi age or other causes may be
paid not less than 8095 of such m~inimum wages; but the total amount
paidl to such casual andl incidental .labor and learners and disabled
employees shall not exceed in any) calendar month 10$1 of the total
wages paid to all process labor by such employer.
5. On and after the effective date the miinimnum wage that shall
be paid by any employers to all other employees except cornrnission
sales people shall be at the rate of $14.00 per w~eek; provided, how-
ever, that office boys or girls, learners, and casual employees may be
paidl not less than 80%C of such minimum wage; b ut the total amount
pail t~o suIch office boys or girls, ierlearner andl casual employees shall
not exceed in any. enlendar month 10%b of the total amount paid
by such emp'loyver to all employees covered by the provisions of th~is
6. Not later than ninety days after the effective date the Lock and
Builders' Hardware Mannuf:4cturing Industry shall report to the
administrators of the National Industrial Recovery Act through the
Board of D~irectors of the Loc~k aInd Buildlers' Hardware Mianufac-
turning Association the action taken by all employers in adjusting the
hourly wage rates for all employees receiving more than the mini-
mum rates provided in Paragraph 4 of this article.
AlRTICLE IV-A DMINISTRATIVE AGENCY
1. The Lock and Builders' Hardware M~anufacturers Association
is hereby designated the agency for administering, supervising, and
promoting the performance of the p~rovisions of this code.
2. Aggregations of employers having a common interest and com-
mon problems will be grouped by the said Association for adminis-
trative purposes mn various sections. In each section there will be
a supervising agency appointed or approved by the Director~s of the
3. If complaint is made to the Locki and Builders' Hardtware
Manufacturers Association that provisions of this code have been
violated by any employer, the proper supervisory agency shall in-
vestigate the facts, and to that. end may cause such examination or
audit to be made as may be deemed necessary.
4. This code is intended to be a basic code, and supplemental
codes applicable to any section of the Lock and Buildlers' Hardware
Manufacturing Industry may be submitted; such supplemental
codes, however, shall conform to and be consistent with the provi-
sions of this basic code as now constituted or hereafter changed.
ARTICLE V--PRICE LISTS AND DISCOUNT SHEETS
Every employer engaged in the manufacture of locks or builders';;
hardware shall within. fifteen (15) days after the effective date of
this code file with the Supervisory Agency herein created a net price
list and/or a price. list and discount shleet individually prepared by
him showing his current prices and,'or prices and discounts (includl-
ing all special discounts for wFholesalers or for quantity,, or to other
manufacturers in the industry, or any other special discountt, terms
of payment, and freight allowances.
The Supervisory Aigency shall immlediately send copies thereof
to all other members of the section to which such prices apply.
Such prices and terms miay be revised from time to time thereafter,
and notification of such revision shall be filed with the Superv\isory
Agency, and copies of such revisions shall be immediately sent to
all other members of the section, wh~o thereupon may file, if they
so desire, revisions of their price lists, discounts, and terms, which
may become effective upon the date when t~he r~evisedl price list first
filed shall go into effect.
No employer shall sell directly or indirectly by any means w~hat-
ever any of th~e products of the industry covered in the provisions
of this A~rticle at a price lower or at. discounts greater or on more
favorable terms of payment than those provided in his current net
price list and/or his price lists and discount sheets; provided, how-
ever, that at any time an employer may in good faith to meet. compe-
tition meet the lower published price of any competitor of product
of an equal grade or quality without being required to file a revision
of his price list.
1. N~o provision of this code shall be interpreted or applied in such
a masnner as to promote monopilis, permit. or encourage unfair com-
petition, ehimmate or oppress small enterprises, or discriminate
against small enterprises.
2. The President of the United States may fr~om timne to time cancel
or modify~ any order, approval, license, rule, or regulation issued
under this code.
3. Amendments to th'tis code may be proposed by thle Lock and
Builders' Hardware M~anufacturers Association, or by any group in
the industry representing 25%0 both in numbers and volume of pro-
duct~ion in fthe industry, and when approvedl by 75%o both in numbers
and volum~e of production in the industry and byl thle President of
the U~nited States shall be effective as part of this code.
An~y violation. of thle provisions of this Article shall constitute an
unfair method of competition within the meaning of the Federal
Trade C~ommiission Act and of the National Industrial Recovery Act.
If any employer of labor in the Lockr and Builders' Hardware
Manufacturing Industry3, as defined herein, is also an employer of
labor in, anly other industry, the provisions of this code shall apply
to and effect only that part of his business whiich is included in the
Lockz and B~Iuilder~s' Hardare Ma~nufacturing Industr~y.
ARTICLE '711 -UNFAIR PRA-CTICES
FEor all purposes of the code the followirig described acts shall
constitute unfair practices. Such unfair practices and all other
practices which shall be declared to be unfair practices by any amend-
ment to the code adopted as herein provided and at the time in
effect shall be deemed to be unfair methods of competition in comi-
merce withlin the meaning of the Federal Trade Commission Act
as amended, andl the using or emiploy~ing of any of them shall be
deemned to be a violation of the code, and~ any mlember of thle code
w~hich~ shall directly or indirectly through anyS officer, employee,
agent, or representative knowingly use or employ any of such unfair
practices shall be guilty of a violation of the code.
LISiT OF UN~FAIR PRACTICES
A. MaI-king or pr~omising to any purchaser or prospective pur-
chaser of any p~rodluct, or to any officer, employee, agent., or represen~-
tative of any purchaser or prospective purchaser, any bribe, gratuity,
gift., or other payment or remuneration, directly or indirectly.
B. Using or substituting any material superior in quality to that
specified by the purchaser of any product, or using or substituting
any material, or any method of manufacture not in accord with any
applicable law, rule, or regulation of any governmlental authority.
C1. Making or giving to any purchaiser of any product any guar
ant~y or protection in, any forml against, decline after the ;date of
shipment in the market price of such product..
D. Mb~aking any sale or contract of sale of any product under any
description which does not fully describe such product in terms
customarily used in t~he industry.
ARIrrciz IX-.PENALTIES AND DAMAGES
1. Any violation of any provision of this code by any emiployer
shall constitute a violation of t~he code by such employer and shall
subject him to all of the penalties provided for such violation in
the National Industr~ial Recovery Act and in the Federal Trade
Commission Act, and t~he Lock andi Builders' Hardware MIanufac-
turers' Association is authorized to prosecute such violations before
the Federal Trade Commission or thle court~s.
2. The violation by any employer of any provision of A~rticle V
of the code will disrupt the normal course of fair competition in
the industry and cause serious damage to other employers which it
will be impossible to assess in an action for damages by any such
other employer, and which will not be adequately compensated by
the enforcement of the penalties in Section 1 of this Article. It is,
therefore, hereby provided as an express provlision of this code that
any employer who shall violate any provision in Article V hereof
shall, in addition to the penalties provided in Section 1 of this
Article, be liable for an additional penalty of 25?o of the net-invoice
price of any products sold by said employer in violation of saidl
article. The Secretary of thle Lock and Builders' Hardware M~anu-
facturers' Association, as an individual and not as Secretary of the
Association, is authorized to maintain a suit in any court of com-
petent jurisdiction for the enforcement of this penalty, and mnay
obtain a judgment against said employer for the penalty hereby
provided. All amounts paid to or collected by t~he Secretary under
this section shall be held and disposed of by him as part, of the
funds collected by the Association;3 and each member of that section
of the Association as to which said violation shall have occurred,
and who shall not have been guilty of the unfair practice in respect
of which any such amount shall have been paid or collected, shall be
credited with its pro rata share of such amount on account of any
and all dues or assessments (other than damages for violation of any
provision of the code) due or to become due from such member, such
pro rata share to be computed on the same basis as dues are payable
by such member toward the expenses of administering the Associa-
tion. Any rights of any person who shall at any time be the Secre-
tary of the Associat~ionz in respect of any amounts which shall be
payable to him because of the violation by any employer of Article V
of the code shall pass to and become vested in his successor in office
upon the appointment of such successor.
The Board of Directors of the Lock and Builders' Hardware
Manufacturers Association may by the affirmative vote of two thirds
of their number waive the liability for additional penalties imposed
by this section of Article IX of the code i~f they shall determine that
such violation has been innocently made, and that the collection of
such additional penalties will not t~o any aeiletn edt
effectuate the policy of Title I of the Nationteral ndustrl Recovery
UNIVERSITY OF FLORIDA
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ARTICLE X-REL.TIONs BETWEEN ElblPLOYER AND EMPLOYEE
It is clearly understood that Article II hereof does not impair in
any particular the constitutional rights of employee and employer
to bargain indlividually or collect~ivelyr as muayL be mutually satisfac-
tory to themi, without interference, restraint, or coercion of any sort.
Nothing in this code is to prevent t~he selection, retention, and
advancement of employees on the basis of their individual merit,
without regardr to their alliliat~ion or nonaffiliationl with any labor