Pay Unit Widens Scrutiny Of Deferred Wage Rises
Pay Bd rules that all pay increases due in 2d or later yrs of multiyear labor contracts affecting 1,000 or more workers must be screened by bd in advance if they exceed 7%; decision does not arbitrarily limit such deferred wage increases to 7%; existing contracts will be allowed to take effect unless challenged by interested parties or 5 bd members on ground that they are 'unreasonably inconsistent' with bd's gen guidelines; 1 bd member states that ruling is 'implicitly a peremptory challenge' to all deferred increases over 7%; ruling is opposed by bd's 5 labor members and approved by 9 mgt and public members, with chmn Boldt abstaining; under ruling, burden of proof in showing that a previously contracted wage increase is not unreasonably inconsistent will fall on the co or union; ruling stipulates that bd must be notified 60 days in advance of payment of a previously contracted raise to 1,000 or more workers; brings 'Tier 2' wage units, involving 1,000-5,000 workers, into prenotification category for 1st time; bd also issues summary of complex resolution governing merit pay increases; summary outlined; Fed Reserve Bd Chmn Burns asserts that he considers it of 'great importance' that bd resist pressures to reach compromises in specific cases that threaten to undermine bd's overall objective, Joint Econ Com hearing; contends return to free-mkt econ will be speeded if bd and Price Comm find ways to deal more successfully with requests for outsized wage-price increases; adds that he feels comm should be more flexible with regard to needs of business
