NAB reports (Mar-Dec 1933)

EXECUTIVE ORDER CODE OF FAIR COMPETITION for the RADIO BROADCASTING INDUSTRY An application having been duly made, pursuant to and in full compliance with the provisions of Title I of the National Indus¬ trial Recovery Act, approved June 16, 1933, for my approval of a Code of Fair Competition for the Radio Broadcasting Industry, and hearings having been held thereon and the Administrator hav¬ ing rendered his report containing an analysis of the said Code of Fair Competition together with his recommendations and findings with respect thereto, and the Administrator having found that the said Code of Fair Competition complies in all respects with the pertinent provisions of Title I of said Act and that the require¬ ments of clauses (1) and (2) of subsection (a) of Section 3 of the said Act have been met: NOW, THEREFORE, I, Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in me by Title I of the National Industrial Recovery Act, approved June 16, 1933, and otherwise, do approve the report and recommendations, and adopt the findings of the Administrator and do order that the said Code of Fair Competition be and it is hereby approved. FRANKLIN D. ROOSEVELT. The White House, November 27, 1933. Approval recommended: HUGH S. JOHNSON, Administrator. LETTER OF TRANSMITTAL The President, November 27, 1933. The White House. Sir: A proposed Code of Fair Competition for the Radio Broad¬ casting Industry was submitted to the Administrator on August 29, 1933, by the National Association of Broadcasters, Inc. The Asso¬ ciation is an established trade association of long standing and is the only trade association in the Industry. It represents approxi¬ mately forty-five (45%) per cent of the stations by numbers and over eighty-three (83%) per cent of the volume of business done within the Industry. A Hearing was conducted in Washington, D. C., on September 27, 1933, and the Code was revised during the recess of this Hearing and is submitted in its present form for approval. Every person who requested an appearance was heard in accordance with statu¬ tory and regulatory requirements. Communications received from interested parties who had not requested to be heard were read into the record. Radio Broadcasting in its present form is a comparatively new development. It embraces the complete operation of all stations or networks designed for broadcasting, including, in connection with such operations, the perparation and production of programs both sponsored and unsponsored for the purpose of providing entertain¬ ment, instruction and general service through the agency of radio broadcasting. ARTICLE III Hours This Article provides that no employee shall be permitted to work in excess of 40 hours in any one week, except that such hourly limitations do not apply to employees in managerial or executive capacity who receive not less than $35 per week in the larger stations, nor to the same class of employees who receive not less than $25 per week in radio broadcasting stations in which, on July 1, 1933, not more than ten persons were regularly employed. Further, such hourly and daily limitations do not apply to em¬ ployees on emergency maintenance or emergency repair work, but overtime is to be paid for hours worked in excess of the maximum. Broadcast technicians are permitted to work 48 hours per week. Regarding this class of employees there was a lack of reliable statis¬ tics covering the number of hours which they now work, and faced with this lack of statistics it was deemed necessary to allow a 48-hour week pending the report of the Code Authority on a study to be made within ninety (90) days. The hours of such employees now vary from a minimum of 36 hours to a maximum of over 80. Approval of a 48-hour week for the next ninety (90) days has been given by the Advisors to the Deputy. Those stations which now operate on the basis of a lesser num¬ ber of hours per week are limited to those hours and may not in¬ crease their working week for broadcast technicians to 48. Over¬ time is not permitted within the Industry except in the case of an emergency worker. It is the first time within the Industry that there has been a classification of workers, minimum rates of pay, or maximum num¬ ber of hours of employment. The reduction in hours will require the reemployment of some 765 men, or an increase of 350 men over the total employed within the Industry for any previous period. ARTICLE IV Wages Non-technical employees are guaranteed the wages provided in the President’s Reemployment Agreement. The guaranteed wage for broadcast operators and control men varies in amount accord¬ ing to the Federal Radio Commission classification of the station by which they are employed, as follows: (a) Clear channel or high-power regional stations, not less than $40 per week; ( b ) Clear channel part-time or low-power regional stations, not less than $30 per week ; (c) Low-power part-time regional, local unlimited, or local parttime stations, not less than $20 per week. Such employees in the past have been paid as little as $9 per week in some of the small stations. Announcers and program production employees are to receive not less than $20 per week, except in the very small stations, where they are to receive not less than $15. The employers agree not to reduce the compensation for employ¬ ment now in excess of minimum wages, notwithstanding that the hours may be reduced, and to increase the pay for such employ¬ ment by an equitable readjustment. There is no discrimination between the sexes in rates of pay. ARTICLE V General Labor Provisions No one under sixteen years of age is to be employed within the Industry, except as talent on programs and then for not more than three hours per day, and those hours to be such as will not interfere with school hours. This Article embodies Paragraph (a) Section 7 of Title I of the National Industrial Recovery Act. It further provides that work¬ ing conditions shall not be changed to frustrate the intent and purpose of this Code. In the proposed Code there is constituted a named Code Author¬ ity of nine (9) comprising representatives of independent stations, the Special Advisor, the Industrial Advisor and the Labor Advisor on the Code, two representatives of the broadcasting networks and in addition not more than three members to be appointed by the Administrator. The members of the Code Authority, with long experience and training within the Industry, were named so that there might be no delay in instituting the investigations which are required of that body, and in making recommendations to the Administrator for a permanent form of organization for the ad¬ ministration of the Code. Economic Effect The provisions of the Code will require reemployment of 765 men and will increase existing payrolls and the buying power of this group at the estimated rate of $1,328,000 per year. The total pay¬ rolls under the Code will be more than double those of 1929. More stations are now in operation and more individuals employed than there were in 1929. My information indicates that there will be no increase in rates charged for facilities, so the consumer should not be adversely affected. The Industry will be required to absorb the greater operating costs. The Research and Planning Division reports that the Code is designed to improve conditions in the Radio Broadcasting Indus¬ try, and that they are satisfied with the Code as it stands. Findings The Administrator finds that: (a) This Code complies in all respects with the pertinent phrases of Title I of the Act, including, without limitation, sub¬ section (a) of Section 7, and subsection (b) of Section 10 thereof; ( b ) The Committee which proposes the Code is truly represent¬ ative of the Radio Broadcasting Industry, and the by-laws of the Association representing the divisions thereof provide no inequit¬ able restrictions to membership; (c) The Code is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate against them, and will tend to effectuate the policy of Title I of the National Industrial Recovery Act. It is recommended, therefore, that this Code be approved. Respectfully, Hugh S. Johnson, Administrator. • Page 236 •