Page "news" Paragraph 1969

It is now disclosed that the taxpayer not only pays for high wages, but he pays the employers' strike expenses when the latter undertakes to fight a strike.

Business Week ( Aug. 9, 1961 ) reports that the United Aircraft Company, against which the International Association of Machinists had undertaken a strike, decided to keep its plants operating.

The company incurred some $10 million of expenses attributable to four factors: advertising to attract new employees, hiring and training them, extra overtime, and defective work performed by the new workers.

The company has billed the United States Government for $7,500,000 of these expenses under the Defense Department regulation allowing costs of a type generally recognized as ordinary and necessary for the conduct of the contractor's business.