Code of fair competition for the shipbuilding and ship repair industry

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Material Information

Title:
Code of fair competition for the shipbuilding and ship repair industry as approved on July 26, 1933 by President Roosevelt
Physical Description:
ii, 12 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Shipbuilding industry -- United States   ( lcsh )
Ships -- Maintenance and repair -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
At head of title: National Recovery Administration.
General Note:
Registry no. 1408-1-01.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004938126
oclc - 48024035
System ID:
AA00008131:00001

Full Text



Registry No. 1408-1-01


NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION

FOR THE

SHIPBUILDING AND

SHIP REPAIR INDUSTRY

AS APPROVED ON JULY 26, 1933
BY
PRESIDENT ROOSEVELT


1k
UI :7. I > i MEMBER





U.-. C "TOY. WE DO OUR PART




1. Executive Order
2. Report of hearing submitted to President Roosevelt
by National Recovery Administrator Johnson
3. Text of Code as approved







UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


e y the perintenden of Documents Washington, D.C - Price 5 ent
F'e ale by the SuperlntendenL of Documents. Wushinuton. D.C. -------- Price 5 cents























EXECUTIVE ORDER


JULY 26, 1933.
A Code of Fair Competition for the Shipbuilding and Shiprepairing
Industry, having been heretofore submitted to the National Recovery
Administration, hearings having been held thereon, and an Amended
Code of Fair Competition having been submitted on July 25, 1933,
said original Code and said Amended Code having been submitted
by duly qualified and authorized representatives of the Industry
complying with the Statutory requirements as representing eighty
percent of the capacity of the Industry, and said Code being in full
compliance with all pertinent provisions of the National Industrial
Recovery Act, Now Therefore
Pursuant to the authority vested in me by Title I of the National
Industrial Recovery Act, approved June 16, 1933, on the report and
recommendation of the Administrator appointed by me under the
authority of said Act, and on consideration:
It is ordered that the said Code of Fair Competition for the Ship-
building and Shiprepairing Industry, as amended and submitted on
July 25, 1933, is hereby approved.
Sgd. FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON.
9676-33 1











































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NATIONAL RECOVERY ADMINISTRATION


JULY 25, 1933.
To'the President:
I-INTRODUCTION
This is a report of the hearing on the Code of Fair Competition and
Trade Practices for the Shipbuilding and Shiprepairing Industry in
the United States conducted in Washington on July 19, 20, and 21,
1933, according to the provisions of the National Industrial Recovery
Act.
The following exhibits are included or attached-
No. 1. Final Code submitted.
No. 2. Notice of hearing.
No. 3. Statement of procedure.
No. 4. Transcript of the record.
No. 5. List of the witnesses.
In accordance with the customary procedure, every person who filed
an appearance was freely heard in public, and all statutory and regu-
latory requirements were complied with.'
The Code which is attached was presented by duly qualified and
authorized representatives of the industry, complying with the statu-
tory requirements, as representing 80% of the capacity of the industry.

II-CHARACTER AND THE PRESENT CONDITION OF THE INDUSTRY
The American Shipbuilding Industry is characterized by a great
overcapacity of physical facilities which are a heritage of the War.
Labor in this industry may be characterized as highly paid in com-
parison with that of other manufacturing industries. Furthermore,
its labor is mainly semiskilled and skilled and the proportion of
common labor is smaller than in many other industries.
The present average conditions of employment and the present
levels of pay rolls are brought out clearly in the following indices taken
from the records of the Bureau of Labor statistics.

Average

1929 1930 1931 1932 1933

Employment index................................................. 100.0 105.9 81.9 65.2 47.4
Pay-roll index...................................................... 100.0 103.4 70.0 47.8 29.6

It is estimated by the representatives of this industry that with the
new Naval Shipbuilding Program and working under the restrictions
of hours of employment contained in this Code, total employment in
the industry will be increased materially above the highest levels of
employment reached since the War, raising the employment from its
present levels of about 15,000 men to approximately 60,000.
(3)








III-DIscussION OF CODE
Following is a brief discussion of each of the sections of the proposed
Code. In the event that there was no objection raised to these sec-
tions in the Hearings no comment is offered thereon.
1. Definition of Terms.-No objections were offered in this section.
2. General RigUlra, lin .-The Labor representatives requested a
modification of the Statutory regulations regarding the relationship
between the employer and the employee covered in this Section of the
Code.
Our counsel advises me that the regulations in the Code are ade-
quate and directly in accordance with the Act.
3. Regulations of Hours of Work-(a) Merchant Shipbuilding and
Ship-repairing.-No employee on an hourly rate may work in excess
of an average of thirty-six (36) hours per week, based upon a six (6)
months period; nor more than forty (40) hours during any one week.
If any employee on an hourly rate works in excess of eight (8) hours
in any one day, the wage paid will be at the rate of not less than one
and one half (1 %) times the regular hourly rate, but otherwise accord-
ing to the prevailing custom in each port, for such time as may be in
excess of eight (8) hours.
(b) Shipbuilding for the United States Government.-No employee
on an hourly rate may work in excess of thirty-two (32) hours per
week. If any employee on an hourly rate works in excess of eight (8)
hours in any one day, the wage paid will be at the rate of not less than
one and one half (11%) times the regular hourly rate, but otherwise
according to the prevailing custom in each port, for such time as may
be in excess of eight (8) hours.
(c) Exceptions.-For a period of six (6) months exception may be
made in the number of hours of employment for the employees of the
Shipbuilders engaged in designing, engineering, and in mold loft and
order departments and such others as are necessary for the prepara-
tion of plans and ordering of materials to start work on new ship
construction, but in no event shall the number of hours worked be in
excess of forty-eight (48) hours per week, and in no case or class of
cases not approved by the Planning and Fair Practice Committee
provided for in Section (8).

4-MINIMUM WAGE RATES
(a) The minimum pay for labor, except apprentices, learners,
casual and incidental labor, shall be at the rate of forty-five (45)
cents per hour in the North and thirty-five (35) cents per hour in the
South.
(1) Apprentices and learners shall not be paid less than the mini-
mum wage after two (2) years of employment.
(2) Casual and incidental labor to be paid not less than eighty (80)
percent of the minimum wage, the total number of such casual and
incidental employees in any calendar month not to exceed eight (8)
percent of the total number of skilled and semiskilled employees
during the same period.
(b) The amount of difference existing prior to July 1, 1933, between
the wage rates paid various classes of employees receiving more than
the established minimum wage shall not be decreased. In no event








shall any employer pay any employee a wage rate which will yield a.
less wage for a work week of thirty-six (36) hours than such employee
was receiving for the same class of work for a forty (40) hour week
prior to July 1, 1933. It is understood that there shall be no dif-
ference between hourly wage rates on commercial work and on naval
work, for the same class of labor.
(c) It. shall be a function of the Planning and Fair Practice Agency
provided for in Paragraph 8 (a) of this Code to observe the operation
of these provisions and recommend such further provisions as experi-
ence may indicate to be appropriate to effectuate their purpose.
The original Shipbuilding Code stipulated a forty (40) hour week
with a minimum wage for common labor at the rate of forty (40)
cents per hour in the North and thirty-five 1,35) cents per hour in the
South.
The provisions affecting the wage scale, the minimum hourly wage
rate, the weekly work hours, the exemptions in Parts 3 and 4 of the
Code and the differential in wages between the North and South were
bitterly contested by the Labor group.
Representatives of fourteen Labor Unions unanimously advocated
a thirty (30) hour week and an eighty-three and one third (83%)
cents minimum hourly rate and additional provisions as follows:
1. A thirty (30) hour week.
2. Abolition of overtime except for maintenance purposes. Double
wage for such overtime.
3. Minimum wage of twenty-five (25) dollars per week. MIainte-
nance of present weekly earnings for thirty (30) hours work for higher
wage groups.
4. Abolition of subcontracting.
5. Temporary prohibition of employment of new apprentices.


At subsequent negotiations the sponsors of the Code and the labor
representatives were definitely agreed upon the provisions for minimum.
wages, maximum hours, and the exceptions as stated in the final Code
attached to this memorandum.

A representative of the Ship Owners Association, whose member-
ship consists of 90% of the large merchant ship operating com-
panies in the United States, testified in favor of the employment
provisions of the Code, and emphasized the effect which a radical
advance in ship-building and ship-repairing costs would have on the
placing of contracts for new ships and repairing, which would add a.
further capital charge to all American ships in competition with
foreign shipping.
Slight modification in hours were also requested by the Great Lakes
Division of the industry and two individual Southern yards requested
a wider differential than five (5) cents an hour between the North
and the South originally proposed.
The Naval Construction Program covered in Title 2 of the N.I.R.A.
is a primary factor in considering the Shipbuilding Code. From a
total appropriation of $238,000,000, contracts amounting to $118,-
000,000 to be executed during the next three years are to be placed
by the Navy Department in private yards. The Navy Department.









and the Naval Ship Construction Department both testified in favor
of the original maximum hours and minimum wage rates requested
by the industry because of their effect upon the costs and the deliveries
of the ships to be ordered and the ships at present under construction
for the Navy in both private and Navy Yards.

6-ARBITRATION OF EXISTING CONTRACTS
Part (6) is a direct copy of the provision included in the Cotton
Textile Code which was approved by the President.

7-UNFAIR METHODS OF COMPETITION
To accomplish the purpose contemplated by this Act, the members
signatory to this Code agree that the following practices are hereby
declared to be unfair methods of competition.
(a) To sell any products) or services) below the reasonable cost
of such products) or servicess.
For this purpose, cost is defined as the cost of direct labor plus the
cost of materials plus an adequate amount for overhead including
an amount for the use of any plant facilities employed as determined
by cost accounting methods recognized in the Industry and approved
by the Committee constituted for the enforcement of this Code as
provided in Section 8 (a).
(b) To give or accept rebates, refunds, allowances, unearned dis-
counts, or special services directly or indirectly in connection with
any work performed or to receipt bills for insurance work until pay-
ment is ini(le.
Enforcement of paragraph (a) will be difficult. Industry, however,
feels that it would have an influence in promoting better accounting
methods and will result in an improved competitive situation through-
out the industry.
Paragraph (b) of this section was not objected to by anyone at
the hearing.
8-ADMINISTRATION
This section is along the lines of the provisions of the Cotton Tex-
tile Code. No objection was raised to these provisions in the hearing.
Respectfully submitted.
HUGH S. JOHNSON,
.Adm iii istrator.











CODE OF FAIR COMPETITION AND TRADE PRACTICE FOR
THE SHIPBUILDING AND SHIPREPAIRING INDUSTRY IN
THE UNITED STATES
To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Shipbuilding and Shiprepairing Industry.

1-DEFINITION OF TERMS
The terms "shipbuilder" and "shiprepairer", when used in this
Code, includes a person, partnership, or corporation engaged in the
business of building, fabricating repairing, reconstructing, remodeling,
and assembling oceangoing, harbor and inland water-way vessels, and
floating marine equipment of every type above ten tons, including
the building within their plants of machinery, equipment, and other
ship's parts.
2-GENERAL REGULATIONS
The shipbuilders and shiprepairers will comply with the following
specific provisions of the National Industrial Recovery Act:
(a) 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.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing; and
(c) 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.

3-REGULATIONS OF HOURS OF WORK
(a) Merchant Shipbuilding and Shiprepairing.-No employee on an
hour rate may work in excess of an average of thirty-six (36) hours
per week, based upon a six (6) months period; nor more than forty (40)
hours during any one week. If any employee on an hourly rate
works in excess of eight (8) hours in any one day, the wage paid will
be at the rate of not less than one and one half (1 ') times the regular
hourly rate, but otherwise according to the prevailing custom in each
port, for such time as may be in excess of eight (8) hours.
(b) Shipbuilding for the United States Government.-No employee
on an hourly rate may work in excess of thirty-two (32) hours per
week. If any employee on an hourly rate works in excess of eight (8)
hours in any one day, the wage paid will be at the rate of not less
than one and one half (li) times the regular hourly rate, but other-
(7)







wise according to the prevailing custom in each port, for such time
as may be in excess of eight (8) hours.
(c) Exceptions.-For a period of six (6) months exception may be
made in the number of hours of employment for the employees of the
Shipbuilders engaged in designing, engineering and in mold loft and
order departments and such others as are necessary for the prepara-
tion of plans and ordering of mn trials to start work on new ship
construction, but in no event shall the number of hours worked be in
excess of forty-eight (48) hours per week, and in no case or class of
cases not approved by the Planning and Fair Practice Committee
provided for in Section (8).
4-MINIMUM WAGE RATES
(a) The minimum pay for labor, except apprentices, learners,
casuiul and incidental labor, shall be at the rate of forty-five (45) cents
per hour in the North and thirty-five (35) cents per hour in the
South.
(1) Apprentices and learners shall not be paid less than the mini-
mum wage after two (2) years of employment.
(2) Casual and incidental labor to be paid not less than eighty
(80) percent of the minimum wage, the total number of such casual
and incidental employees in any calendar month not to exceed eight
(8) percent of the total number of skilled and semiskilled employees
during the same period.
(b) The amount of differences existing prior to July 1, 1933, be-
tween the wage rates paid various classes of employees receiving more
than the established minimum wage shall not be decreased. In no
event shall any employer pay an employee a wage rate which will
yield a less wage for a work week of thirty-six (36) hours than such
employee was receiving for the same class of work for a forty (40)
hour week prior to July 1, 1933. It is understood that there shall be
no difference between hourly wage rates on commercial work and on
naval work, for the same class of labor, in the same establishment.
5-PROHIBITION OF CHILD LABOR
On and after the effective date of this Code, employers shall not
employ any minor under the age of sixteen (16) years.
6-ARBITRATION OF EXISTING CONTRACTS
Where the costs to the contractor of executing contracts entered
into in the ship-building and ship-repairing industry prior to the
presentation to Congress of the National Industrial Recovery Act
or the adoption of this Code are increased by the application of the
provisions of that Act or this Code, it is equitable and promotive of
the purposes of the Act that appropriate adjustments of such con-
tracts to reflect such increased costs be arrived at by arbitral pro-
ceedings or otherwise and the applicants for this Code constitute
themselves a Committee to assist in effecting such adjustments.
7-UNFAIR METHODS OF COMPETITION
To accomplish the purpose contemplated by this Act, the members
signatory to this Code agree that the following practices are hereby
declared to be unfair methods of competition.







(a) To sell any products) or services) below the reasonable cost
of such products) or servicess.
(1) For this purpose, cost is defined as the cost of direct labor plus
the cost of materials plus an adequate amount of overhead, including
an amount for the use of any plant facilities employed as determined
by cost accounting methods recognized in the industry (and approved
by the Committee constituted for the enforcement of this Code as
provided in Section 8 (a)).
(b) To give or accept rebates, refunds, allowances, unearned dis-
counts, or special services directly or indirectly in connection with
any work performed or to receipt bills for insurance work until pay-
ment is made.
8-ADMINISTRATION
(a) To effectuate further the policies of the Act, a Shipbuilding and
Shiprepairing Industry Committee is hereby designated to cooperate
with the Administrator as a Planning and Fair Practice agency for
the shipbuilding and shiprepairing industry. This Committee shall
consist of five representatives of the shipbuilders and shiprepairers
elected by a fair method of selection, to be approved by the Adminis-
trator and three members without vote appointed by the President of
the United States. Such agency may from time to time present to
the Administrator recommendations based on conditions in their
industry as they may develop from time to time which will tend to
effectuate the operation of the provisions of this Code and the policy
of the National Industrial Recovery Act.
(b) Such agency is also set. up to cooperate with the Administrator
in making investigations as to the functioning and observance of any
provisions of this Code, at its own instance or on complaint by any
person affected, and to report the same to the Administrator.
(c) This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provision
of Clause 10 (b) of the National Industrial Recovery Act, from time
to time to cancel or modify any order, approval, license, rule, or regu-
lation issued under Title I of said Act, and specifically to the right of
the President to cancel or modify his approval of this Code or any
conditions imposed by him upon his approval thereof.
(d) Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in the circumstances or experience may indicate. It is contemplated
that from time to time supplementary provisions to this Code or
additional codes will be submitted for the approval of the President
to prevent unfair competition in price and other unfair and destruc-
tive competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act consistent
with the provisions thereof.
(e) This Code shall become effective not later than ten (10) days
after its approval by the President.
H. GERRISH SMITH,
President, National Council of American Shipbuilders.
JOSEPH HAGG, Jr.,
New York & New Jersey Dry Dock Assn.
JAMES E. BARNES,
615 Southern Building, 'Washington, D.C.
0




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