If the suggested test is sound, it cannot be admitted that the doctrine
of standardization upward is always valid. For there is no reason to
believe that the level of the highest of the hitherto unstandardized
rates is, of necessity, the one at which the most favorable balance of
interests is established. In many cases there may be a presumption to
that effect--if the doctrine is reasonably interpreted. That is to say,
if it is taken to mean the higher range of wages, rather than the
highest single wage. That presumption arises from the fact that, unless
there is evidence to the contrary, the higher range of unstandardized
wages indicates what wages may be enforced throughout the occupation
without causing great disturbance and unemployment. The circumstances
which would govern the correctness of this presumption are many and have
already been discussed.[110] The actual range of difference between the
various wage rates being paid for the same occupation in different
enterprises should be given importance in the judgment as to whether
standardization should take place at the level of the higher range of
wages.
Furthermore, in many cases where wages are standardized at a level lower
than some of the wage rates already paid for the work in question, it
would usually be sound to provide that these higher-wage rates should
not be reduced at once. This ruling was adopted in the decisions of the
War Labor Board and it has also been embodied in the so-called "saving
clauses" in the American railway wage decisions.[111]
9.--The principle of standardization may be considered basic in any wage
policy for industrial peace. This is not because the existence of
various wage rates for the same work is the greatest source of
industrial conflict. But because the establishment of clearly known wage
rates for each type of labor, extending over the field of its employment
(with whatever limitations or variations are admitted to the principle)
is often essential to the operation of any other principles of wage
settlement. The establishment of standard wage rates makes possible a
clear knowledge of the economic position of the various classes of wage
earners. Likewise, it makes possible the accurate measurement of wage
change; and also makes for simplicity and uniformity in the application
of changes. Lastly, it tends to produce a careful classification of the
different kinds of work, in which the minor and local differences in the
nature of the work are gradually eliminated. These are the reasons for
the "strong public interest in standardization" which was spoken of
above.[112]
FOOTNOTES:
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