MINIMUM WAGE-HOUR AMENDMENTS, 1965 e?,. , - HEARINGS {BEFORE THE GENERAL SUBCOMMITTEE ON LABOR OF TH COMMITTEE ON EDUCATION AND LABOR HOUSE OF REPRESENTATIVES EIGHTY-NINTH CONGRESS FIRST SESSION ON H.R. 8259 A BILL TO AMEND THE FAIR LABOR STANDARDS ACT TO EXTEND ITS PROTECTION TO ADDITIONAL EMPLOYEES, TO IMPROVE ITS MAXIMUM HOURS STANDARDS, AND FOR OTHER PURPOSES PART 3 HEARINGS HELD IN WASHINGTON, D.C., JULY 1, 6, 7, 9, AND 10, 1965 Printed for the use of the Committee on Education and Labor ADAM C. POwELL, OThairmas U.S. GOVERNMENT PRINTING OFFICE 6 0- 47 5 WASHtINGTON : 1065 COMMITTEE ON EDUCATION AND LABOR ADAM C. POWELL, New York, Ohairman CARL D. PERKINS, Kentucky WILLIAM H. AYRES, Ohio EDITH GREEN, Oregon ROBERT P. GRIFFIN, Michigan JAMES ROOSEVELT, California ALBERT H. QUIET, Minnesota FRANK THOMPSON, JR., New Jersey CHARLES D. GOODELL, New York ELMER J. HOLLAND, Pennsylvania JOHN M. ASHBROOK, Ohio JOHN H. DENT, Pennsylvania DAVE MARTIN, Nebraska ROMAN C. PUCINSKI, Illinois ALPHONZO BELL, California DOMINICK V. DANIELS, New Jersey OGDEN R. REID, Now York JOHN BRADEMAS, Indiana GLENN ANDREWS, Alabama JAMES 0. O'HARA, Michigan EDWARD J. GURNEY, Florida RALPH J. SCOTT, North Carolina HUGH L. CAREY, New York AUGUSTUS F. HAWKINS, California CARLTON R. SICKLES, Maryland SAM GIBBONS, Florida WILLIAM D. FORD, Michigan WILLIAM D. HATHAWAY, Maine PATSY T. MINK, Hawaii JAMES H. SCHEUER, New York LLOYD MEEDS, Washington LOUISE MAXIENNa DARGANS, Ohief olerk RUSSELL C. DhaatozsON, Staff Director C. SUMNER STONY, Special Assistant to the Chairman Dr. GRACE HMWELL, Education Chief LEON ABRAMSON, Ohief Counsel for Labor-Management MICHAEL J. BERNSTmIN, Minority Oounsel for Eduoation and Labor CHARLES W. RADCLIFFE, Special Education Counsel for Minority GENIAL SUBCOMMITTE ON LA BOR JAMES ROOSEVELT, California, Ohairman JOHN H.DENT, Pennsylvania ALPHONZO BELL, California ROMAN C. PUCINSKI, Ilinois CHARLES E. GOODELL, New York DOMINICK V. DANIELS, New Jersey DAVE MARTIN, Nebraska AUGUSTUS F. HAWKINS, California EDITH GREEN, Oregon JAY H. FOREMAN, Counsel CONTENTS Hearings held in Washington, D.C.: Pago uy 1,1965 ------------------------------------------- 1163 July 6, 1965 ------------------------------------------- 1389 July 7, 1965 ------------------------------------------- 1593 July 9, 19065 ------------------------------------------------ 1681 July 10, 1965 ------------------------------------------ 1783 Statement of- Anderson, Hon. John B., a Representative in Congress from the State of Illinois ------------------------------------------- 1681 Bix er, Roland M., for the Electronic Industries Association -------- 1646 Bryan, C. L., director of labor relations White Motor Corp -------- 1805 Bugas, John S., vice president, Ford Motor Co. accompanied by C. L. Bryan, director of labor relations, White Motor Corp.; Malcolm Denise, vice president labor relations, Ford Motor Co.; and Louis G. Seaton, vice president in charge of personnel staff, General Motors Corp ------------------------------------------- 1727, 1783 Cederberg Hon. Elford, a Representative in Congress from the State of Michigan ----------------------------------------- 1163 Cooper, R. Conrad, executive vice resident, United States Steel Corp.. 1698 Crowel, Robert F. International Harvester Co., Chicago, Ill -------- 1433 Dorris, James T., business manager, the Detroit News ------------ 1616 Dutcher, Francis E., and T. H. Kashuba, Asphalt Roofing Industry Bureau --------------------------------------------- 1665 Erickson, Thurman C., Printing Industries of America, Inc., ac- companied by Don Sommer manager, master printers section- Gerald Reilly, counsel; and William Gennerich, attorney and state member --------------------------------------------- 1449 Gullen, George E., vice president, industrial relations, American Motors Corp ------- ---------------------------------- 1786 Hale, Randolph M director, public relations, National Electrical Contractors Association --------------------------------- 1662 Harrison J S., executive vice president, Aluminum Co. of America. 1719 Kirk, John T., president, National Association of Wholesalers, and president, Northern Frozen Foods, Inc., Cleveland, Ohio --------- 1593 Latimer, J. Austin attorney at law- Halfpenny, Hahn & Latimer, Washington, D.d., and representative for the Automotive Service Industry Association ------------------------------------ 1604 Milne, W. D., National Crushed Stone Association, accompanied by W. L. Carter, executive director of the association, and Charles Bucy, general counsel -------------------------------------- 1442 Milton, William J., vice president, George A. Milton Can Co., Elizabeth, N.J -------------------------------------------- 1391 Mohel, Hyman L., director of industrial relations, Aerovox Corp., for the Electronic Industries Association. -------------------- 1631 Oberlink, Boyd S. senior vice president, Alis-Chalmers Manufactur- ing Co. Milwaukee, Wis ------------------------------------ 1393 O'BrIen, William M., vice president and director of personnel, Chrysler Corp --------------------------------------------- 789 Ormsby, Ross R., president, Rubber Manufacturers Association, Inc.. 1619 Pollock, Wiliam, president, Textile Workers Union of America, ac- companied by George Peckel, director of research, and William Du Chessi legislative director ----------------------------------- 1167 Post, John, National Petroleum Refiners Association, accompanied by Donald O'Hara, executive vice president.......... . 1572 CONTENTS Statement of-Continued Seaton, Louis G., vice president in charge of personnel staff, General Page Motors Corp -------------------------------------------- 1784 Stewart, Eugene L., Esq., special counsel to the American Paper Institute and the Fibre Box Association --------------------- 1457 Toper, Dr. Lazare, director of research, accompanied by Gus Tyler, assistant president, and Evelyn J)ubrow legislative representative, International Ladies Garment Workers union ----------------- 1187 Willson, James, president, Farm & Industrial Equipment Institute, and Athens Plow Co., Athens, Tenn -------------------------- 1397 Wright, Fred W., president, National Tool, Die & Precision Machining Association ------------------------------------------------ 1390 Zagri, Sidney, legfislative counsel, accompanied by Albert Weiss, chief economist and director of research, and Peter A. Andrade, chief cannery division, Western Conference of Teamsters, and general organizer, International Brotherhood of Teamsters ------------- 1229 Statements, letters, supplemental material, etc.: Anderson, lion. John B., a Representative in Congress from the State of Illhi101s: - Aldeen, Norris, executive vice president, Amcrock Corp., Rock- ford, Ill., letter from ---------------------------------- 1686 Gaylord, Clayton, president, the Ingersoll Milling Machine Co., ftockford, Ill., letter from ------------------------------- 1694 Kardell, Wallace president, K. &. K. Machining Specialties Co., Loves Park, Ill., letter from ---------------------------- 1688 McCarthy R. H., manager, engineering standard services, Barbor-6ohnan Co., Rockford, Ill, letter from ------------- 1695 McLeod, Ralph If., director of employee relations, J. L. Clark Manufacturing Co., Rockford, Ill., letter from ------------- 16094 Mincemoyer, John F., director of industrial relations, Rockford Clutch Rockford, Ill., letter from -------------------- 1687 d. Nelson, B., manager, community relations, Sutdstrand Corp., Rockford, Ill, letter from ----------------------------- 1689 Sommer, John R., president, National Lock Co., Rockford, Ill., letter from ---------------------------------------- 1688 Armistead, M. W., III, chairman, Federal Laws Committee, American Newspaper Publishers Association, letter to Chairman Roosevelt dated May 28, 1965 ---------------------------------------- 1617 Asphalt and tarred roofing manufacturers, list of plants ----------- 1672 Bugas, John S., vice president, Ford Motor Co.: Exhibit 1. Change in employment-All manufacturing versus automotive industry ------------------------------------ 1729 Exhibit 2. Unemployment rates-Major Michigan automotive cities, December 15, 1963, versus May 15, 1965 ------------- 1731 Exhibit 3. Typical advertisements for nonskilled jobs from the Detroit News Sunday, June 27, 1965 -------------------- 1733 Exhibit 4. Facility expansion plans, selected automotive com- panies, 1964 to present ------------------------------- 1734 Exhibit 5. Premium pay requirements in automotive industry contracts which are In excess by requirements of Fair Labor Standards Act ----------- -------------------------- 1736 Exhibit 6. Distribution of employed persons in the United States by hours worked during survey week, May 1964 ------------ 1738 Exhibit 7. Distribution of employed persons in the United States by hours worked during survey week, May 1964 ------------ 1740 Exhibit 8. Typical overtime advertisements from the Detroit News, Sunday, June 27, 1965 ------------------- -------- 1746 Exhibit 9. U.S. annual factory sales of new passenger cars, 1947-64 ------------------------------------------ 1748 Exhibit 10. Domestic production of new automobiles-Percent distribution by engine option, 1959-64 ------------------- 1751 Exhibit 11. Domestic production of now automobiles, by body size, 1960-64 -------------------------------------- 1753 CONTENTS Statement, letters, supplemental material, etc.-Continued Bugas, John S., vice president, Ford Motor Co.-Continued Pa Statement by --------------------------------------- 175 Appendix A: Basic assumptions for determining wages and cost of related fringe benefits of new hire versus working overtime -------------------------------------- 177c Wages and cost of related fringe benefits of new hire versus working overtime automotive assembler in a Michigan plant (table) -------------------------- 177'" Appendix B: Public forecasts of automobile retail sales for year 1963.. 1775 Public forecasts of automobile retail sides for year 196,'- 1770 Cooper, R. Conral, executive vice president, United States Steel Corp.: Exhibit A: Steel company approaches to mobility and training.. 170f Exhibit B: Double time for over time ---------------------- 1711 Exhibit C: Provisions with respect to the relationship between overtime and unemployment in basic steel company labor agreements --------------------------------------------- 1711 Exlbit D. Sunday, overtime, and holiday premiums provisions of labor agreement between United States Steel Corp. and United Steelworkers of America, April 6, 1962, as amended June 29, 1963 ------------------------------------------ 1712 Statement in behalf of certain steel companies --------------- 1701 Daniels, tlon. Dominick V., a Representative in Congress from the State of New Jersey: New Jersey Motor Bus Association, Inc., statement on behalf of.. 1660 Letter from William R. Morrish, publisher, the Jersey Journal, Jersey City, N.J., dated July 6, 1965 --------------------- 1658 Dutcher, Francis E., senior operating vice president, Buildin Ma- terials Division, Johns-Manville Corp., letter to Chairman oose- velt, dated July 13, 1965 -------------------------------- 1074 Erickson, Thurman C., statement for Printing Industries of America, Inc ------------------------------------------------ 1452 Godinez, Ernest J., statement for the Electronic Industries Associa- tion ------------------------------------------------------ 1640 Grunsky, Robert R., statement for Ampex Corp ----------------- 1642 Hale, Randolph M, director of public relations, National Electrical Contractors Association, Inc., statement of ------------------- 1663 Halfpenny, Harold T Hahn & Ryan, Chicago, Ill.: Oleson, Elmer, Yr., management research, Automotive Service Industry Association, letter from, dated July 15, 1965 -------- 1614 Statement of --------------------------------------- 1604 Harrison, J. S., executive vice president, Aluminum Co. of America, statement of ----------------------------------------- 1722 Hathaway, Hon. William D., a Representative in Congress from the State of Maine, letter from David S. Murphy, T. J. Murphy Fur Co., dated May 21, 1965 -------------------------------- 1450 Hoffman, T. S., statement for Hoffman Electronics Corp ----------- 1644 Hundley John It., vice president, industrial relations, Granite City Steel 6%., comments by --------.---------------------------- 1707 Kashuba, T. H., president, TK Roofing Manufacturing Co., Chester, W. Va., letter to Chairman Roosevelt, dated June 28, 1965, enclos- ing a chart ------------------------------------------ 1667 Kirk, John T., president, National Association of Wholesalers, and president, Northern Frozen Foods, Inc., Cleveland, Ohio: Percentage'distribution of gainfully employed persons in private industry (U.S.A.) (chart) -------------------------------- 1603 Percentage distribution of gainfully employed persons in private industry (table) ---------------------------------------- 1603 Statement on behalf of the National Association of Wholesalers.. - 1598 Wholesale industry survey of overtime practices, March 1964.... 1602 Michigan Sugar Co. of Saginaw, Mich., and Monitor Sugar Division of Robert Gage Coal Co. of Bay City, statement of ------ 1166 Milne, W. D., president. Kentucky Stone Co., statement on behalf of National CrushedStone Association ------------------------ 1445 CONTEMT Statements, letters, supplemental material, etc.-Continued Mohel, Hyman L., director of industrial relations, Aerovox Corp.: Estimated net domestic market for television and radio, 1962-64 Page (table) ------------------------------------------- 1655 .U.S. imports of electronic products (table) ------------------ 1654 Overtime premium hours (chart) ------------------------- 1636 Statement of ---------------------------------------- 1634 Oberlink, Boyd S., statement on behalf of Construction Industry Manufacturers Association ------------------------------- 1437 Ormsby, Ross It., president, Rubber Manufacturers Association. Inc.: Statement of --------------------------------------- 1622 Statement before the Select Subcommittee on Labor, March 25, 1965 -------------------------------------------- 1624 Pearce, William J., statement for Renwell Industries Inc_. 1038 Pollock, William, general president, Textile Workers Union omerica, AFL-CIO, CLC, statement of -------------------------------- 1171 Table I. The worker's family budget In major cities-Minimum income needed for "modest but adequate" standard of living, 20 major clties-autumn 1964------------------------- 1176 Table I. Average hourly earnings of production workers: All manufacturing industries and textile mill products industries - 1177 Table III. Indexes of man-hour productivity: Textile mill prod- ucts and all manufacturing industries -------------------- 1177 Table IV. Indexes of unit wage costs: Textile mill products and all manufacturing industries --------------------------- 1178 Post, John, representing the National Petroleum Refiners Associa- tion, statement of ------------------------------------- 1574 RCA's position with respect to a proposed amendment in the Fair Labor Standards Act- ------------- --------------------- 1817 Simpson, W. R., statement for Dale Electronics, Inc- ------------- 1637 Sprague, Robert C., statement for Sprague Electric Co-.. - 1638 Stewart, Eugene L., special counsel, American Paper Institute and the Fibre Box Association: "A Study of the Probable Effect of the Proposed Double Time on Overtime Amendment of the Fair Labor Standards Act," publication entitled --------------------------------- 1465 Statement by --------------------------------------- 1457 Tbper, Dr. Lazare, director of research, International Ladies' Gar- " ment Workers' Union, statement of--- ---------------------- 1188 Appendix A. Resolutions bearing on amendments to the Fair Labor Standards Act submitted for the consideration of the Inter- national Ladies' Garment Workers' Union Convention, May 1965, Miami Beach, Fla ------------------------------ 1210 Appendix B. Report of the Committee on Social and Labor Legislation on amendments to the Fair Labor Standards Act, International Ladies' Garment Workers' Union Convention, Miami Beach, Fla., May 13, 1065 ----------------------- 1216 * Table 1. Annual budget necessary to maintain a city worker's family of 4, 20 cities, autumn 1964 ------------------------ 1190 Table 2. Nonagricultural employment, by region and State ----- 1191 Table 3. Value of shipments, all items and apparel, accessories and related textile products, Puerto Rico to the United States mainland, fiscal years 1938-39 to 1963-64 ----------------- 1196 Table 4. Employment and earnings in Puerto Rico plants pro- moted by the Economic Development Administration -------- 1197 Table 5. Increases in average hourly earnings, Puerto Rico and stateside, 1939 and 1965 --------------------------------- 1198 Table 6. Increases in average hourly earnings, Puerto Rico and * * stateside, 1950 and 1965 --------------------------------- 1199 Table 7. Average hourly earnings, manufacturing, Puerto Rico and stateside, February 1965 ---------------------------- 1199 Table 8. Lowest seasonally adjusted unemployment rates occuring at or near the peak of the business cycles in 1953, 1957, and 1960and May 1965 ----------------- -------- 1201 CONTENTS Statements, letters, supplemental material etc -Continued Teper Dr. Lazare, director of research, etc.-Continued Table 9. Indexes of average weekly hours of work, production worker employment, production and output per production worker manhour in manufacturing, and unemployment as a Page percent of civilian labor force, United States, 1890-1964 ------ 1203 Table 10. Average annual employment, production workers, women's and children's garment industries ---------------- 1207 Whittemore, H. H., managing director, Asphalt Roofing Industry Bureau, New York, N.Y., letter to Chairman Roosevelt, dated July 1, 1965 ------------------------------------------ 1670 Willson James, president Farm and Industrial Equipment Institute, and Athens Plow Co., Athens, Tenn.: Average overtime per employee in the farm equipment industry is small (chart) ------------------------------------------- 1400 Farm machinery is highly seasonal (chart) ------------------ 1398 Our industry produces for these anticipated sharp seasonal needs in a nearly level pattern (chart)- ------------------------ 1399 Overtime hours are more irregular than for total industry (chart). 1401 Overtime hours differ among plants of a company (chart)- ------ 1402 Overtime in a single plant is needed to meet unpredictable changes (chart) ------------------------------------------- 1403 Overtime varies (chart) -------------------------------- 1404 Statement of the Farm and Industrial Equipment Institute- ---- 1408 Chart 1. Overtime hours worked ---------------------- 1409 Chart 2. Total and overtime hours worked -------------- 1412 Chcaormt!Lp3 Aan. y TAot.a..l and overtime hours worked, farm equipment 1413 Chart B. Total and overtime hours worked, farm equipment company B ---------------------------------- 1414 Chart 3C. Total and overtime hours worked, farm equipment company C............................ . 1415 Chart 3D. Total and overtime hours worked, farm equipment company D_. ...... 1416 Chart 4A. Overtime hours worked in four farm equipment plants of company A.. 1418 Chart 4B. Overtime hours worked in four farm equipment 1419 plants of company B. 1419 Chart 4C. Overtime hours worked in four farm equipment plants of company C -------------------------------- 1420 Chart 4D. Overtime hours worked in four farm equipment plants of company D ... .- - 1421 Chart 5A. Total and overtime hours worked, farm equipment company A, harvesting machine plant ------------------ 1422 Chart 5B. Total and overtime hours worked, farm equipment company B, harvesting machine plant ........ 1423 Chart 5C. Total and overtime hours worked, farm equip- ment company C, harvesting machine plant ----------- 1424 Chart 5D. Total and overtime hours worked, farm equip- ment company D, harvesting machine plant -------- 1425 Chart 6. Overtime hours worked by departments within one plant of company C ----------------------------- 1427 Chart 7. Wages and wholesale prices, farm equipment industry ------------------------------------ 1429 News release--Massey-Ferguson, Inc ------------------ 1432 News release, August 20, 1964 ---------------------- 1431 Press release, August 27, 1964 ----------------------- 1431 Table I. Example of total wages for week ended March 28, 1965, for selected plants in farm equipment industry .... 1410 Wages have increased rapidly (chart)- --------------------- 1407 CONTENTS Statements, letters, supplemental material, etc.-Continued Zagri, Sidney, legislative counsel, International Brotherhood of Teamsters: Page Scope of subsidies ----------------------------------- 1365 Statement of --------------------------------------------- 1230 Attachment 1: Legislative intent and administrative prao- tioe with respect to section 7(b) and 7(o) of the Fair Labor Standards Act of 1938 ------------------------------- 1286 Attachment 2: Table-Most active harvesting dates: Com- mercial vegetables ------------------------------ 1293 Attachment 3: Table-Average weekly hours in peak canning months, 1964, compared to all manufacturing and meat- packing industries ---------------------------------- 1294 Attachment 4: Table-Average weekly hours worked in canned foods (except seafoods) indust ries, in peak months, 1958-64 -------------------------------------- 1295 Attachment 5: Table-Annual average weekly hours worked: Canned foods (except seafoods) all manufacturing and meatpacking, 1958-64 --------------------------- 1296 Attachment 6: Table-Production worker average weekly hours, canned foods (except seafoods) all manufacturing and meatpacking, 1951-64 ------------------------ 1297 Attachment 7: Productivity in the fruit and vegetable can- ning industry: Industry statements ------------------ 1298 Attachment 8: Table-Average annual percentage change in output and output per man-hour in manufacturing farm-originated foods, United States, 1947-63 ---------- 1299 Attachment 9: Table-Output per production worker man- hour: Canned and preserved food (except meat), and all manufacturing 1948-63 ----------------------------- 1300 Attachment 10: Table-Percent change in output per man- hour of production workers, for selected industries, 1947-60 -------------------------------------- 1301 Attachment 11: Table-Factory output, man-hour and output per man-hour In manufacturing farm-originated foods, and in processed fruits and vergeables 1947-63 (1947-49= 100) ------------------------------------- 1302 Attachment 12: Table-Average annual rate of change: Out- put per production worker man-hour, selected manufac- turing industries, 1947-62 --------------------------- 1303 Attachment 13: Table-Canned and preserved food (except meats) output per production worker and unit labor re- quirements ------------------------------------ 1304 Attachment 14: Table-Average hourly earnings of produc- tion workers: canned foods (except seafoods), and all manufacturing industries, and cents per hour difference 1951-64 -------------------------------------- 1305 Attachment 15: Table-Hours and earnings of production workers In the food and kindred products industry, selected years, 1948-64.. 1306 Attachment 16: Table-Canned and preserved food (except meat): Percent change in average hourly earnings com- pared to output per production worker man-hour, 1958-62. 1307 Attachment 17: Table-Hourly earnings per employee and unit labor cost in factories processing farm foods, 1947-63 (1947-49-100 -- --------------- 1308 Attachment 18: Table-Employmernt costs in food products. 1309 Attachment 19: Table-Percent of payroll and wages to value added by manufacture for the major industry groups, 1963- ---- ---------------------------- 1310 Attachment 20: Labor costs in food processing ----------- 1311 Attachment 21: Table-Canning, preserving, and freezing: Number of companies and establishments, 1958, 1954, and 1947- 1312 CONTENTS Statements, letters, supplemental material, etc.-Continued Zagri, Sidney, legislative counsel, eto.-Continued Statement of-Continued Attachment 22: Number of establishments In canned and frozen fruits and vegetables industries, by size of work Page force, 1958, 1954 and 1947 ----------------------- 1313 Attachment 23: Food processing plants are fewer and larger --------------------------------------- 1314 Attachment 24: Mechanization of field production and harvesting ----------------------------------------- 1316 Attachment 25: Technological developments In canning, freezing, and processing- 1320 Attachment 26: Perishability, seasonality, and extending the processing season ---------------------------- 1327 Attachment 27: Table-Hours and overtime provisions in Teamster agreements in the canning and preserving industry ------------------------------------- 1330 Attachment 28: Table-Total and production worker em- ployment in canned and preserved food (except meats), selected annual averages 1948-64 ------------------- 1357 Attachment 29: Table--nemployment rates-Food prod- ucts and nondurable goods manufacturing industries, 1957 to first quarter 1965------------------------- 1358 Attachment 30: Employment trends and labor supply ----- 1359 Attachment 31: Profitability of food processing industry-- 1300 Attachment 32: Table-Canned foods industry: Sales, net income, profit margins, per share earnings, 1957-63 ------ 1361 Attachment 33: The area of production exemption -------- 1362 Attachment 34: Availability of canning labor ------------ 1364 MINIMUM WAGE-HOUR AMENDMENTS, 1965 THURSDAY, JULY 1, 1965 HOUSE OF REPRESENTATIVES, GENERAL SUBcOfm ITr=E ON LABOR OF THE COMMITTEE ON EDUCATION AND LABOR, Washington, D.G. The general Subcommittee met at 9:45 a.m., pursuant to recess, in room 2261, Rayburn House Office Building, Hon. James Roosevelt (chairman of the subcommittee) presiding. Present: Representatives Roosevelt, 9Pucinski, Hawkins, Green, Bell and Martin. Also resent: Jay H. Foreman, counsel to the general subcommittee. Mr. ]fOOSEVELT. rhe committee will come to order, please. Our first witness this morning in the continuation of hearings on proposed amendments to the Fair Labor Standards Act is Congress- man Elford Cederberg, of the 10th District of Michigan, a good friend and valued colleague. We are very happy to welcome you, sir. We appreciate your coming to us this morning. STATEMENT OF HON. ELFORD CEDERBERG, A REPRESENTATIVE IN CONGRESS PROM THE STATE OF MICHIGAN Mr. CEDERBERG. Thank you, Mr. Chairman. I appreciate the oppor- tunity to appear before your subcommittee. I am here this morning for the purpose of presenting to you for the record and for your con- sideration a statement of the Michigan Sugar Co. Saginaw, Mich., and the Monitor Sugar Division of Robert Gage Coal Co., of Bay City, Mich., having to do with the proposed extension of overtime penalty provisions under the Fair Labor Standards Act. The position is fundamentally this: They feel that the existing law should remain in effect because changes would have an adverse effect upon their operations. They begin their sugar processing season in the fall, and once that plant starts it goes 24 hours a day, 7 days a week, until the run is completed. They can't close their plant down. To change these provisions reg earing overtime, double time, and on Sundays and so forth, in this industry would make them noncompetitive in the business, and it would cause real obvious increases, I think, to the consumer in the price of the commodity. It would really serve no good purpose. So I would like to just urge that the committee when it takes action on this legislation, that it give very serious consideration to the continuing of the exemption for the seasonal industries, because there is not any question that there are 1163
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