CORPORATIONS: Up Wages, Out Profits

When the War Labor Board granted Western Union employes a 21% wage raise, the company angrily cried that this would put it into the red—to the tune of $19,000,000 a year. Said WLB coolly: take that up with the Federal Communications Commission.

Last week Western Union did just that. It asked FCC for permission to: 1) raise its rates 10%; 2) end special low rates for “tourate” messages and the 20% discount to the Federal Government.

The WLB wage decision last December, said Western Union, cost it $31,000,000, in retroactive raises. It estimated that the wage boost of some $25,000,000 a year will bring its total costs in 1946 to $202,000,000. Estimated income under present rates: $183,000,000.

All the promised benefits of the merger with Postal Telegraph two and a half years ago, such as rate reductions, had been wiped out. If FCC grants the company’s plea, telegraph rates will go up for the first time since 1919.