The 1940's and 1950's
To counter the up and down movement in the economy and bring
it under control, two measures were instituted which had a significant
impact on trade unionism. One was the tight controls placed
on wages. Then, in 1947, Congress passed the Taft-Hartley Act
that was aimed principally at inhibiting the activities of the
building trades' unions. It succeeded. Richard Grey, then the
President of the Building Trades Department, wrote in a 1950
edition of the Constructor: "We are threatened with the
destruction of our organizations if the law remains on the books
for long. Already, practically every procedure and practice
which we have developed through the years in dealing with our
employers, and in supporting each other, has been declared illegal."
For over thirty years before the Taft-Hartley Act, local elevator
constructors and elevator manufacturers had operated under a
mutually agreed upon closed shop for their joint protection.
Before the elevator manufacturers could employ anyone, he first
had to be a member of the union. Failing that, he had to receive
a work permit from the local union before he could work. Under
the Taft-Hartley Act, such agreements were prohibited. Union
shops could exist only within limited boundaries specified by
the new Act.
The Taft-Hartley Act fulfilled the purpose intended by its
anti- union sponsors. It severely limited the strength of all
unions and particularly building trades. It altered management-to-worker
relationships and relationships between workers themselves.
The Act was a blow to solidarity and a setback to the unions,
but hardly a fatal setback as its sponsors hoped.
World War II economic controls were lifted in 1946 and remained
off the books until 1951 when the economy began rampaging. Prices
soared and wages moved in unison. Prices were raised again to
cover higher wages, creating a new spiral. To stop the spiraling,
controls were imposed on the economy, directly affecting the
construction industry and its employees.
On July 26, 1951, the Construction Industry Stabilization
Commission issued a basic regulation covering the payment of
wages, salaries, and other compensation to laborers and mechanics
in the building and construction industry. The regulation, approved
by the Wage Stabilization Board, prohibited wage increases above
10 percent of the "area rate."
In August, the rules were changed again to stipulate that
all increases, until controls were lifted, had to be filed with
and cleared by the Stabilization Commission. The restrictions
were severe for the IUEC. The Commission disallowed double time
as overtime pay for elevator construction work, allowing only
time and a half. No wage increases were approved for elevator
constructors.
The IUEC was the only union in the construction trades to
have paid national holidays. The Commission banned these. Seeking
to retain this benefit, the IUEC was the first union to petition
for paid holidays. The petitions were continually denied. Finally,
in 1953, wage controls were suspended. The Executive Order signed
by President Eisenhower stated that "the production of
materials and services and consumer demand in the national economy
are approaching a practical balance. " With the rigid economic
controls lifted, the IUEC returned to the Atlantic City Plan,
which allowed for regular wage increases.
