bargaining intelligently and to develop principles and techniques therein which will assure full and continuous employment and production in a free-enterprise economy. And finally they should have information concerning living and working conditions, labor law and legislation and its administration which will enable them to play their full part in promoting the constructive relations between themselves and management which will contribute to the advancement of the public interest and of the national welfare and security. S. 110 is designed, and effectively designed, in the judgment of your committee. to meet these needs.

GENERAL CONSIDERATIONS

During the hearings held by your committee, witnesses representing the Congress of Industrial Organizations, the American Federation of Labor, the International Association of Machinists testified in favor of the enactment of legislation of this type. On this issue there is no disagreement among the various sectors of organized labor. Witnesses for the labor organizations described the extensive demand among American workers for an educational service such as this bill would make possible. Representatives of colleges and universities which now offer labor extension services on a limited scale testified to the enthusiasm with which workers participated in these services and to the value of such training in providing needed information and imparting a sense of public responsibility. Industrialists with records of successful labor-management relationships submitted statements approving the purposes and objectives of this bill, and affirmed both the need and demand for education among workers of the type proposed. The overwhelming preponderance of the testimony gave ample proof that a program, national in scope, providing opportunities and facilities for wage earners to learn about the functioning of the economic democracy in which they live, describing the role and responsibility of the worker in that democracy, and making available information to enable him to carry out that role and that responsibility successfully, was essential to the well-being of the Nation. As Mr. Eric Johnston, president of the Motion Picture Association of America, Inc., pointed out in his statement to your committee:

Industrial strife is an extravagant vice America can no longer afford * * * Today, no section of the country and no segment of the population are entirely immune from the effects of a war in industry * * * The general welfare demands that we tackle the issue on a national basis as a national problem * *

The committee has given careful study to the manner in which labor extension services would be provided under the bill. We are of the view that, as amended, the bill provides for sound methods of financing and administration of the program.

Financing the program would be a joint Federal and State or local responsibility. The Federal contribution to each State for labor extension services in that State would have to be supplemented to the extent of 25 percent of the contribution by State, college, or university appropriations, or by contributions, fees, or grants in kind by individuals, groups, or institutions benefiting from or interested in the program. Federal funds would be allocated to the States on the basis of the proportion of the number of nonagricultural wage earners in each State to the number of nonagricultural wage earners in the United

States as a whole, subject to adjustment when necessary to conform to any minimum allotment for each State which might be fixed by the Congress. Payments of Federal funds would be made by the Secretary of the Treasury in accordance with the approved schedule of allotments to each State to the officer or agency of the State designated by State law to receive the same. Disbursement to each cooperating institution would be made by the designated State officer or agency in accordance with applicable State law. Cooperating institutions would include land-grant colleges and universities, other schools, colleges and institutions eligible to receive and expend funds for agricultural extension work, and public or private nonprofit colleges, universities or research agencies, approved by the State authorities. Any such institution could, as under the agricultural extension program, expend funds for labor-extension programs which it receives under the bill in the execution of a contract entered into between such institution and other organizations or institutions. The over-all program for each State each year would be set forth in a State plan which would be required to meet certain specified conditions. Federal departments or agencies, however, would be prohibited from exercising any direction, supervision, or control over or from prescribing any requirements with respect to cooperating institutions, and no provision of any State plan or of any contract or agreement entered into under authority of the legislation could in any manner control or prescribe requirements with respect to administration, personnel, curriculum, instruction, methods of instruction or materials of instruction of any cooperating institution.

Administration of the programs provided for would, at the Federal level, be the responsibility of the Secretary of Labor acting through a Labor Extension Division in the Department of Labor, with the assistance of a National Labor Extension Council composed of persons chosen in equal numbers from a panel submitted by labor organizations Nation-wide in scope and from a panel submitted by cooperating institutions. Administration at the State level would be by State boards chosen by the governor of each State in equal numbers from a panel submitted by labor organizations State-wide in scope and from a panel submitted by cooperating institutions in the State.

These provisions of the bill are designed to assure a program which will make labor extension services available on a uniform basis to workers in all States but which will preserve State and local autonomy in the administration of labor extension programs in each State.

CONCLUSION

It is the considered opinion of the committee that the extensive hearings and investigations on this subject have disclosed the existence of a need for a federally financed labor extension program_national in scope, the satisfaction of which is of utmost importance and concern to many millions of our citizens, and that such hearings and investigations have provided a basis for intelligent legislative action with respect to the satisfaction of that need.

The Committee on Labor and Public Welfare, therefore, reports S. 110, and recommends and urges its prompt enactment.

ANALYSIS BY SECTIONS OF S. 110

DECLARATION OF PURPOSES AND POLICY

Section 1: This section declares the intent of Congress to make educational extension services available to wage earners of the United States and establishes for this purpose in the Department of Labor a Labor Extension Service to administer, in cooperation with institutions of higher education in the States, a program which will supplement but not duplicate existing agricultural extension services. It is declared to be congressional policy that the purpose of the program shall be to enable the Secretary of Labor, through a program of disseminating useful knowledge among wage earners, to provide a means for conserving the creative capacities of workers, and to promote cooperative relations and mutual understanding between labor and management.

PROGRAM OF THE LABOR EXTENSION SERVICE

Section 2: The bill provides for the establishment of a Labor Extension Service in the Department of Labor and specifies that its program shall include the following: Promotion of the welfare of wage earners and their industries by making available to wage earners information enabling them to present their contributions to production as a basis for compensation and to become informed on practices in writing and carrying out collective-bargaining agreements and on the principles and techniques in labor-management relations appropriate to assure full and continuous production and employment in a free-enterprise economy. The program would be devised to furnish wage earners, in addition, with information on living and working conditions and on labor law and legislation and its administration. would be designed to promote constructive labor-management relations and wider understanding on the part of wage earners of American economic and labor history, on the importance of the free-enterprise system, and the significance of democratic processes, and to instill in them awareness of their rights and their responsibilities to the public, to management, and to their coworkers, and their relationship to the development of democracy in the United States.

THE LABOR EXTENSION DIVISION

Section 3: This section establishes a Labor Extension Division in the Department of Labor headed by a Director appointed by the President with the advice and consent of the Senate. The Secretary of Labor would be authorized to appoint needed personnel and, in consultation with the National Labor Extension Council, to formulate general policies for the act's administration and to approve rules and regulations necessary to carry out the purposes of the act issued by the Director of the Labor Extension Division.

THE NATIONAL LABOR EXTENSION COUNCIL

Section 4: The National Labor Extension Council created by this section would advise the Secretary of Labor and the Director of the Division in formulating general policies. This Council would consist

of 12 members appointed by the Secretary, 6 to be chosen from a panel submitted by educational institutions offering labor extension services and designated as cooperating institutions, and 6 from a panel selected by labor organizations national in scope. Members of the Council would hold office for overlapping 3-year terms and would meet at the request of the Secretary but in any case at least twice a year.

STATE LABOR EXTENSION BOARDS

Section 5: It is provided that in order to qualify for Federal grants under the act, the Governor of each State shall appoint a State labor extension board consisting of from 8 to 12 members chosen in equal numbers from a panel submitted by State-wide labor organizations and from a panel submitted by cooperating institutions offering labor extension services.

REQUIREMENTS FOR STATE PLANS

Section 6: Plans for participating in the program would be required to be approved and submitted by the State labor extension board to the Secretary of Labor who would be required to approve any plan which meets specified requirements. To be approved, a plan would be required to summarize the services requested from cooperating institutions, including evidence of requests therefor by labor organizations addressed to cooperating institutions; provide that institutions, including labor-management institutes operated by cooperating institutions, may apply to the State board for designation as cooperating institutions and for inclusion in the program; contain a statement of the purposes, procedures, and methods to guide institutions using the funds provided for under authority of the act; provide that cooperating institutions shall establish conveniently located extension centers; furnish evidence that funds will be expended on a nondiscriminatory basis for labor extension services to both wage earners and nonwage earners without regard to race, creed, color, sex, national origin, or membership or nonmembership in any labor organization; provide that at least 25 percent of the Federal allotment will be matched by State, college, or university appropriation, or by contributions, fees, or grants in kind by individuals (reasonable or nominal fees could also be required of individuals receiving labor extension services) or by groups or educational or research institutions; contain a complete budget; provide a schedule of times and places of activities under the program; provide methods of administration to assure proper and efficient operation of the plan, including the establishment of an office responsible, under the supervision of the State board, for such administration; and provide for reports by the State boards to the Secretary of Labor as required. It is specifically provided, however, that no agency or officer of the Federal Government may exercise any control over any cooperating institution and that such institutions shall be protected against any form of control under the act with respect to their administration, personnel, courses of study or the content thereof, or teaching methods."

APPROPRIATIONS AND ALLOTMENTS

Section 7: This section authorizes the appropriation of funds necessary to carry out the act's provisions, including necessary administrative expenses of the Department of Labor, and provides that allotments shall be made by the Secretary of Labor to each State submitting an approved plan in proportion to the number of nonagricultural wage earners in the State. The fixing of a minimum annual allotment for each State is reserved to the Congress. The bill provides that the Secretary shall certify to the Treasury Department the amount to be paid to each cooperating institution as determined by the State board, and that these amounts shall be paid by the Secretary of the Treasury to the officer or agency designated by the State law to receive the payment for disbursement to the cooperating institutions in accordance with the applicable State laws. This section also provides that allotments shall be expended solely pursuant to plans approved by the Secretary of Labor, permits cooperating institutions to expend Federal funds in executing contracts entered into with other institutions for the purpose of carrying out approved labor extension programs, and permits expenditure of funds only for purposes which are constitutionally permissible.

STATE BOArd reports and fuND-MATCHING REQUIREMENTS

Section 8: State boards would be required to submit annual reports of their operations under the act to the Secretary of Labor. It is provided that allotments made to any State remaining unexpended or unpaid to any State at the end of any fiscal year shall be available for expenditure or payment to such State until the end of the succeeding fiscal year, but no payment shall be made to a State out of its allotment for any fiscal year until its allotment for the previous fiscal year has been exhausted or has ceased to be available. It is further provided that no payment may be made to any State in any year until a sum equal to 25 percent of its annual allotment has been appropriated for the year by the legislature of the State, or has been provided by college or university contributions or grants in kind by individuals or groups or educational or research institutions participating in the program of labor extension services in the State.

REPORTS TO CONGRESS

Section 9: This section requires the Secretary of Labor to make an annual report to Congress detailing the operations and activities in the field of labor extension work in all the States under the act.

WITHHOLDING FUNDS

Section 10: This section provides that if the Secretary of Labor finds, after opportunity for hearing is given the State labor extension board, in any State that there is failure by such State to comply substantially with any provision required to be included in the plan, no further payments shall be made to such State until he is satisfied that such failure to comply no longer exists.