Therefore, if conditions such as Secretary Wirtz complains of actually exist, then these conditions are not the result of section 14(b), but of the failure of unions to gain higher wages and other working conditions which would have been possible whether section 14(b) is in existence or not. Secretary Wirtz is reported to have stated that "the only effect of the repeal measure would be to permit employers and unions to negotiate union shop contracts in 19 States that now ban them." If this statement, as reported, is correct, then Secretary Wirtz himself points up the fact that his argument for repeal is inconsistent in that it has nothing to do with a legal climate which allegedly is less conducive to unionism and union wages and working conditions. The fact remains that after some 30 years of Federal legislation in the labor field, that less than a majority of the workers are now covered or represented by labor unions. This includes States with "right-to-work" laws and States which permit union shop contracts. This speaker violently disagrees with the statement reported to have been made by Secretary Wirtz before this committee in which he is reported to have stated "the argument that union shop agreements violate the freedom of individual employees has no substantial basis." This statement, of course, ignores the facts and is totally at variance with the real purpose of union shop contracts. If the small businessman and the unions negotiated on equal footing, it may be that the repeal of section 14(b) other than its philosophical implications would not affect the bargaining. However, we who are actively engaged in representing small businessmen, as well as large companies, know that is indeed rare for a small businessman to be able to withstand the unified might of all labor organizations when the full brunt of their attack is directed against him. All too often the small businessman is the new businessman, and one that is stretched to the limit of his financial means, and therefore cannot stand any interruption in his production and income. The small businessman does not have the financial reserves with which to withstand prolonged union negotiations or union strife and is, therefore, faced with financial ruin or the choice of going out of business if he chooses to oppose the might of the unions on the question of basic principles such as section 14(b) involves. Legislation should be considered from its impact on all of the people rather than a small minority who seek power through legislation. Opinion Research Corp. polls indicate that support for the "right-to-work" amendment reached an alltime high in 1964, advancing to 67 percent in 1964, from 48 percent in 1956. This would indicate that the least this Congress could do would be to submit this matter to a nationwide referendum so that such referendum would reflect the desires of all persons rather than a small minority of the total population of this country. Interviews with employees in my State reflect that the most violent antiunion worker interviewed are those which were forced to join a union in other States in order to work. Investigation indicates that these workers migrated to States in which they were not required to join a union in order to satisfy their basic philosophy that the exaction of such a tribute in order to work was unAmerican and against principles which many of them considered a violation of their personal right. The Labor-Management Relations Act of 1947, of which section 14(b) is a part, states that its purpose is the prevention of industrial strife which interferes with the normal flow of commerce. Repeal of section 14(b) would tend to lead to strife inasmuch as many businessmen will not agree to any contract clause which would require the employees to join the union, therefore making it necessary for the parties to revert to their economic weapons to attain their goals. President Lyndon B. Johnson, in his message of May 18, stated that he hoped that repeal of section 14(b) would reduce conflicts in the national labor policy. I would be amiss if I did not point out that if there is, in fact, a conflict in our national labor policy, that this policy can be resolved by guaranteeing the "rightto-work" of all employees in all of our 50 States which would make it then a democratic process for all employees to join, or not to join, a union. I am unable to understand why labor unions, as such, attempt to take full credit for any advance which is reflected in higher wages and working conditions. It is admitted that they might be partially responsible, but I think it would be an egotistical approach to state that they claim full responsibility for all advances made by working man or men in any period. Repeal of section 14(b) would advance the cause of no individual in these United States. It would only advance the cause of compulsory unionism and enhance the union's opportunities to use strikes and threats of strikes with great success to force compulsory union membership provisions and checkoff clauses into what they hope would be high percentage of contracts. Union treasuries are at an alltime high which reflects that compulsory union membership is not necessary in order for the unions to enjoy financial success from their endeavors. The unions need no further assistance than they already have under the great grant of powers given to them under prevailing Federal legislation. It is the individuals themselves, and the small businessman, who need protection of Congress in the enjoyment of all rights guaranteed to them under the Constitution of these United States, which promises that they will have full enjoyment of their rights guaranteed therein. I therefore recommend to this committee that it guarantee to the individual his rights of free choice, so as to make this act consistent to the acts of courts, Federal agencies, and Congress itself, by keeping section 14(b), and thereby assist in maintaining this era of the individual. The State chamber of commerce organizations in whose behalf I have been specifically authorized to testify are listed below: Alabama State Chamber of ČĊommerce. Oklahoma State Chamber of Commerce. Greater South Dakota Association. East Texas Chamber of Commerce. South Texas Chamber of Commerce. Utah Trade Association & Chamber of Commerce. West Texas Chamber of Commerce. Lower Rio Grande Valley Chamber of Commerce (Texas). West Virginia Chamber of Commerce. Wisconsin State Chamber of Commerce. Mr. GATZ. Our town of Paragould is one of 10,000 persons in a county of 25,000. My company was organized in 1950 with $20,000 capital stock, 5 employees, and 3,200 square feet of manufacturing space. I am trying to give you a background of how small business can be. In 1962, my employees elected to affiliate with the IAM. Now what my employees think of the idea of national legislation to abolish 14(b) is attested by their petition which is attached to this statement, and it reads as follows: We, the undersigned, being hourly wage earners, believe that section 14(b) of the Taft-Hartley Act should not be revoked. The right of the individual to decide for himself is the most sacred right Congress should strive to preserve. We believe the elimination of section 14(b) of the Taft-Hartley Act would violate every principle for which America stands. The petition is signed by all 33 employees. In our community we have 3 industries employing 100 people or more. These industries are in our community because our people built the plants through the medium of private contributions aug mented by private capital loans. These plants which they lease to these companies in order to create jobs for our people who have been displaced by the mechanical or technological revolution that has beset farming since the end of World War II. Now, I repeat, the people, not the State, not the county government, and not the Federal Government recognized a need, and the people took positive action to remedy those needs. As a result today, our county population is up 30 percent over 10 years ago. Our bank deposits are up 92 percent. Industrial jobs are up 155 percent. We have provided 2,100 jobs in our community. Industrial payrolls are up 200 percent that is a $6 million dollar figure annually. Our farm employment in our county is 4,100. Gentlemen, this is what free men in a free environment can accomplish for themselves. Need I remind you that this country didn't get where it is today because of laws, but because of the actions of its people. Great Society can't be built by a government and you do not need to be a history student to recognize these facts. They are going on today. A Great Society cannot be imposed upon a society-a Great Society will evolve from a people, and how a free choice can be a detriment to the national labor movement is a mystery to us. I think it is rather ironic that 100 years ago the industrial North derided the South for having slavery. Today when 10 out of the 19 "right-to-work" States are of the South, the industrial North abhors the freedom and individuality of the same people. If this proposed legislation is enacted, 54 million Americans who live in these 19 States will be immediately slapped in their economic faces by the Federal hand. That's one-third of our population, that is reduced to the servitude of union dictation at the whim of the Federal Government to repay a campaign promise. This is not just a matter affecting the 54 million residents of the 19 States having "right-to-work" laws. This proposed legislation would preclude the people of the 31 remaining States from exercising their privilege of changing their minds. Recently we had an experience with the State of Indiana through a public referendum repeal of their State "right-to-work" constitutional acts. Last year the people in Oklahoma voted down a proposed constitutional amendment which would install a "right-to-work" feature in their constitution. We think that the people of Indiana and the people of Oklahoma have what they want by their choice-through a truly democratic process. In closing, I would like to reiterate the words of two rather great and immortal Democratic Presidents. Mr. Roosevelt in 1932 in his commonwealth address stated: A government must so order its functions as not to interfere with the individual. And Mr. Truman in 1949, when he introduced his Fair Deal message to Congress said: Democracy maintains that government is established for the benefit of the individual, and is charged with the responsibility of protecting the rights of the individual and his freedom in the exercise of his abilities. I appeal to this committee and to the Senate as a whole with the question: Has our democracy arrived at the point wherein the people are too dumb to know what is good for themselves and consequently do they need a benevolent legislature to watch over them? I pray not. Thank you. Senator MCNAMARA. Thank you very much, Mr. Gatz. We appreciate your being here this morning. You made a fine contribution to our record, you can be sure your viewpoint will be given consideration. Mr. GATZ. Thank you. Senator MCNAMARA. Any questions, Senator Prouty? Senator PROUTY. First let me congratulate you. As a representative of your chamber of commerce, I think you certainly did an excellent job. Mr. GATZ. Thank you. Senator PROUTY. You say that in your town there are three industries that employ in excess of 100 people? Your business is organized, I understand; you have a union there. Mr. GATZ. That is correct. Senator PROUTY. What about the other two? Mr. GATZ. They are nonunion. Senator PROUTY. Now, who instigated the petition which you attached to your statement? Mr. GATZ. The petition that is attached to my statement came about in the following manner: when an appeal came from our State chamber of commerce to represent the State of Arkansas at the House hearing I wanted to make certain myself that I was on firm ground. So I called a general meeting of my entire organization-all the employees of my company, 33 of them-and I explained to them that I had been asked to go to Washington to appear before the House Labor Subcommittee in behalf of retaining section 14(b). I wanted to know what my employees wanted me to do. I did not feel like I would be morally capable of coming to Washington and presenting a personal view because I do not think that this is what the legislature wants to know. After discussing this thing, the request to come to Washington, I told the men that I would prepare a statement which would be a very simple statement of fact and it would be available for them if they cared to sign it. You can see for yourself that they signed it. Now, I can say this is a pretty risky thing, as you can well imagine, if you have any experience with the National Labor Relations Board, to do what I did, but I personally felt that this was bigger than the NLRB; or anybody or anything. It was just bigger than this; I had to take the risk to know what my employees wanted-and this is how it came about. Senator PROUTY. I am sure there was no intimidation on your part but the fact remains you were the employer and obviously your employees knew your general feeling about the matter. Mr. GATZ. That is correct. Senator PROUTY. And conceivably some of them perhaps felt that they had no alternative other than to sign. Mr. GATZ. Some of them did not sign. Senator PROUTY. You have some that are not on there. Mr. GATZ. There are some that are not on there. Actually at the time this thing was gathered, we had more employees, if my statement deceives you. I maintain a minimum of 33 the year around. Some did not sign. Senator PROUTY. The employees that did not sign-are they-the employees who are no longer there? Mr. GATZ. No, actually we have more employees now than we had at the time; everybody is still there, Senator. Senator PROUTY. Thank you. Senator MCNAMARA. Thank you very much, sir. Without objection we will go on to the last item on our agenda. Sir, thank you for being here, we are very happy to have you present your testimony this morning. You may proceed in your own manner. STATEMENT OF THOMAS E. SHROYER, AMERICAN RETAIL FEDERATION; ACCOMPANIED BY HARRY F. BROWNE, AMERICAN RETAIL FEDERATION Mr. SHROYER. Thank you, Mr. Chairman, first I would like permission to insert my statement in its entirety into the record because we do not intend to read it. Senator MCNAMARA. We are happy to have the complete statement for the record at this point. Without objection, it will be so included. (The prepared statement of Mr. Shroyer follows:) PREPARED STATEMENT OF THOMAS E. SHROYER, THE AMERICAN RETAIL FEDERATION Gentlemen, thank you for the opportunity of appearing before you today for the purpose of presenting to you the views of the American Retail Federation on the proposed legislation under consideration. The American Retail Federation is comprised of some 45 statewide and 31 national associations of retailers and, as such, represents the views of the retail industry of all types and sizes. One of the most important committees of the American Retail Federation is its employee relations committee. That committee's membership is drawn from the various retail associations which make up the federation and from individual companies, both large and small, which are individual members of the federation. That committee has initiated a number of policy statements on Federal labor legislation. Such statements were submitted, in accordance with the rules of the federation, to all its constituent groups in the form of a ballot, and the entire membership formally approved by this ballot procedure the policy statements initiated by the employee relations committee. While some of these policy statements have been altered from time to time by the required procedure, two policy statements have remained unchanged since 1953. Both apply to the legislation now before this committee. They are: (1) a statement that the State's right to prohibit compulsory unionism should not be repealed; and (2) a statement that any union should be required to demonstrate its majority in a secret ballot election conducted by the NLRB before such union is accorded bargaining representative status. Both policy statements were considered at length at a meeting of the full employee relations committee within the last 60 days. Both were reaffirmed by such committee and by the membership of ARF at its annual meeting held during the same week. We believe your committee must consider the right of employees to a secret ballot election in any recommendation it may make to the Senate which would repeal or modify section 14(b). If the Federal law is to permit compulsory membership contracts throughout the United States, surely the union must represent the majority of the employees. We submit that under present NLRB interpretations many employers are ordered to bargain with a union which the majority of the employees do not wish to represent them. We propose to develop this point at length, but first we wish to tell this committee why our membership feels so |