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NATIONAL L RE COV ERY ADMIN ISTRATION
CODE OF FAIR COMPETITION
AS SUBMITTED ON AUGUST 23, 1933
REGISTRY No. 1149---09
The Code for the Chuck 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
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1988
CODE OF FAIR TRADE PRACTICE, ADOPTED AUGUST 8, 1933
The group presenting this code, and whose individual names are
attached hereto, represents more than seventy-five (75) percent of the
industry, both as to numbers of manufacturers and productive
SThe purpose of this code is to increase employment, to improve
standards and wages of labor, to establish maximum hours of employ-
ment, to eliminate unfair competitive practices, and to improve
conditions in our industry generally.
This code is conceived as being fair to employees, competitors,
distributors, and consumers.
It is not the purpose of this code to promote monopoly or to elimi-
nate or oppress small enterprises, and will not operate to discriminate
To effectuate the policy of Title I: of the National Industrial Re-
covery Act, the following provisions are established a~s a National In-
dustrial Recovery Code for the Chuck Manufacturing Indust~ry.
SECTION 1. DEFINITIONs: The term "LChuck Manufacture" as
used herein is defined t~o mean the manufacture for sale of Chucks of
any nature, and other similar attachments, and their component
parts, which are used as an attachment for power-operated tools
whether chucks or other similar attachments are operated by air,
power, or manually. The term "person" as used herein shall include
natural persons, partnerships, associations, and corporations. The
term "employer as used herein shall include evTery person promoting,
or actively engaged in, the manufacture for sale of the products of the
Chuck Industry as herein defined. The term "effective date" as
used herein is defined to be the elevlenth day after this code shall have
been approved by the President of the United States.
SEc. II. As required by Section 7 (a) of Title I of the National
Industrial Recovery Act, the following provisions are conditions of
(1) That employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from the inter-
ference, restraint, or coercion of employers of labor, or their agents, in the desig-
nation of such representatives or in self-organization or in other concerted activi-
ties 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 con-
dition of employment to join any company union or to refrain from joining,
organizing, or assisting a labor organization 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.
It is clearly understood that the foregoing paragraphs do not impair
in any particular the constitutional rights of the employee and
8161-3 Il l
THE CHUCK INDUSTRY
employer to bargain individually or collectively as may be mutually
satisfactory t~o them; nor does it impair the joint right of employer
and employee to operate an open shop.
Nothing in this code is to prevent the selection, retention, and
advancement of employees on the basis of their individual merit,
without regard to their affiiation or nonaf~filiation with any labor
SEc. III. Subject to the approval of the President, the undersigned
1. Not to employ any person under sixteen years of age.
2. Not to work any accounting, clerical, office, service, or sales
employees, except outside salesmen and outside service men, for more
than forty hours in any one week or more than eight hours in any
3. Not to employ any factory, or mechanical worker, or artisan,
more than a maximum week of forty hours in any one week or more
than eight hours in any one day.
4. The maximum hours fixed in the foregoing paragraphs 2 and 3
shall not apply to employees in a managerial, executive, or supervisory
capacity, nor to employees on emergency, m~amtenance, or repair
work, or to very special cases, where restrictions of hours of highly
skilled workers would unavoidably reduce production but in any
such special case, at least time and one third shall be paid for hours
worked in excess of the maximum.
5. Not to pay any of the classes of employees mentioned in para-
graph 2 less than 14 dollars a week: Prov~ided, however, That casual
and incidental labor and learners may be paid not less than 80%0 of
such minimum wage but the total amount paid to such casual and
incidental labor and learners shall not exceed in any calendar month
5%0 of the total wages paid the class of employee as covered by this
6. Not to pay any employee of the classes mentioned in paragraph 3
less than forty cents an hour unless the hourly rate for the same class
of work on July 15, 1929, was less than the foregoing rates, in which
latter case, not to pay less than the hourly rate on July 15, 1929,
and in no event, less than thirty cents an hour: Provided, however,
That casual a.nd incidental labor and learners may be paid not less
than 80%n of such minimum wage but the total amount paid to such
casual and incidental labor and learners shaUl not exceed in any
calendar month 5%/ of the total wages paid the class of employee
as covered by this paragraph.
7. Not to use any subterfuge to frustrate the spirit and intent of
this agreement which is among other things, to increase employment
by a universal covenant to remove obstructions to commerce, and to
shorten hours and to raise wages for the shorter week to a living basis.
8. Where before June 16, 1933, the undersigned had contracted
to purchase goods at a fixed price for delivery during the period of this
agreement, the undersigned will, if requested, make an appropriate
adjustment of said fixed price to meet any increase in cost caused by
the seller having signed the President's reemployment agreement or
having become bound by any code of fair competition approved by
9. Chucks and their parts, with the exception of damaged or obso-
lete goods, shall not be sold below the cost of production. Such cost
of production is to be based upon the existing price of raw material
and labor, plus such overhead charges as have been or may be deter-
mined to be reasonable over a period of years. Obsolete or defective
goods are to be stamped "'Obsolete" or "'Second."'
10. Definite resale prices shall be established to the consumer and a
reasonable margin of profit shall be provided for the distributor.
11. The sale of identical goods to educational institutions and to
municipal, state, and Federal governments at lower prices than to
other consumers in the same quantities shall not be made.
12. The Executive Committee of the Chuck Association is hereby
designated the agency for administrating, sulperviin, ndprmoin
the performance of the provisions of this Code: by the members of the
SEc. IV. Any employer may participate in this Code and in any
revisions or additions thereto and receive the benefits thereof by
accepting the proper pro rate share of the cost and responsibility of
creating and administering it, either by becoming a, member of the
Chuck Mfanufacturers Association or by paying to it an amount equal
to the dues fromt time to time provided to be paid by a member in
lik~e situation of the Chuck MaIrnufacturers Association.
SEC. V. The President may fromt time to time cancel or modify any
order, approval, license, rule, or regulation issued under Title I of the
National I[ndustria~l Recovery Act.
SEc. VI. Such of the provisions of this Code as are not required by
the National Industrial Revovery Act to be included herein may,
with the approval of the President of the United States, be modified
or eliminated as changed circumstances or experiences may indicate.
This Code is intended to be a basic Code, and study of the trade
practices of the Chuck Industry will be continued by members of the
Chuck Industry with the intention of submitting from time to time
additions to this Code applicable to all employers in the Chuck M~anu-
SEc. VII. If any employer of labor in the Chuck M~anufacturing
Industry is also an employer of labor in any other industry, the pro-
visions of this Code shall apply to and effect only that part of his
business which is inlcuded in the Chuck Manufacturing Industry.