b'1000 Power&Light Bldg.,Kansos City, Missouri64105 February-March,1974 CONSTRUCTIONWAGECONTROLS IntestimonybeforeaSenateSubcommitteeonFebruary6,Costof LivingCouncilDirectorJohnT.DunlopstatedthattheAdministration wouldliketograduallyphaseoutcontrolsbyApril30exceptforpetroleumandhealthcare.Whileconstructionreceivedlittle mentioninMr. Bmrlop\'pol icysLaen L ,_;_nIrisrecomm:en-cl-~-hefaure,the sLem L implicationisclearthattheConstructionIndustryStabilizationCommitteewillbephasedoutwiththerestofthecontrolmechanismsexcept forthosecoveringpetroleumandhealthcare. Withtheconcurrenceoft heofficersanddirectorsoft heAssociation, wewroteTreasurySecretaryShultzonMarch1,1974tourgethatconstructionindustrywagecontrolsbecontinued.Thetextoftheletterisas follows: TheHon.GeorgeP.Shultz SecretaryofTreasury 15thandPennsylvaniaAvenue- Room3330 Washington,D.C.20220 DearMr.Shultz: ontractors MidwestRoofingC Association,Inc. stronglysupportstheviewsandrecommendationsof theContractorsMutualAssociationexpressedinthe February1,1974lettertoyoufromPresidentCounts. MidwestRoofingContractorsAssociation ,__I n c _ isanassociationofa pproximately300roofingcontractorsengagedineither"flat"roofing(built-up roofsoncommercialandindustrialbuildings)or "steep"roofing(residentialandapartmentbuilding shingleroofs).Twenty-onestatesarerepresented byourmembership.Mostofourmembershavecollectivebargainingagreementswithvariouscraftunions. Inourjudgment,completeeliminationofmandatory wageandpricecontrolsfortheconstructionindustry onorbeforeApril30,1974wouldleadtoanimmediate roundofleapfroggingwageincreaseswitheachlocal unionvyingforleadershipintheever-ascendingrace toobtainthelargesthourlyincrease.Theconstructionindustrywasthefirstindustrysubjectedtomandatorycontrols,andforgoodreasonimbalanceinthe collectivebargainingprocessinfavorofunionshad resultedinextraordinarywageincreasesandspiraling'