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skill, and the operations performed, at wage scales approximating those
were being paid in Union factories. Those manufacturers not Unionized., j
to prevent the classification of the workers and the establishing of wag
scales in the code above the minimum of $14.00, claiming that their worn
ers were not skilled, that the system of work employed in their factories
known as the "section system" (not permitted in a Union factory)-did not
require any skill; that new machinery and new methods revolutionized the
manufacturing of ladies' handbags, particularly in factories making low
price bags of cloth, (imitation leather) to retail at one dollar or lesm
At this time, 80% of the manufacturers making these cheap bags were loca
outside of metropolitan New York.

 Trade associations were formed by the opposing interests, and leg1
advice was employed by each faction to prevent the unfavorable action b%
the other.

 The final a- prcval of the code was not the result of a compromise
between the factions on the matters at issue, but because the Divisional
Administrator had ruled against the inclusion in the code of any classic.
cation of the workers, or any ag:e scales above the minimum. Later thi.
was modified to allow one additional wage scale above the minimum for
skilMl workers. However, in the order approving the code, this provisi.
was stayed, until the term "semi-sklilled" could be defined by the indus
The conflict between the factions continued after the approval of the
when attempts were made to define the term "semi-akilled. A number o,'
hearings were held in New York and in Washington, and attempts made to,
promise the matter. The Union was active in trying to have the order '
ing Sections 2 and 6 of Article IV vacated, (these sections related to:
establishment of the rate above the minimum for semi-skilled workers,.
the provision for the classification of workers more skilled). The oi
nnufacturers, thru the Code Authority, voted to have these two section
leted from the code.

 In September 1934, the Union, unable to effect a new agreement wi
those manufacturers still remaining in the metropolitan area of New Yo..
called a strike. The strike lasted about five weeks. In the interval
manufacturers moved away from New York to outside locations. About 8
the industry was then located outside of New York. Some of these
rers who moved away were those who had persistently fought the outside.
facturers in an effort to equalize labor costs. As soon as they moved
fought just as hard against the New York Manufacturers in an effort tO
every advantage in labor costs. The final settlement of the matter h
been reached at the time all codes were voided. :

 The President's blanket agreement issued prior to the approval a'
code, called for a minimum wage of $12.00 a week, and 40 hours a week,
About 75% of the outside manufacturers adopted the 40 hour week at on
Union agreement made the 40 hour week automatic in factories in New ,T
About 60% of the industry outside of ITew York raised the minimum wage
$12.00. Union factories were not affected. They did not employ any
lower than $14.00 a week. At the time the code for the industry was
the wage scales in the industry resembled somewthat a toboggan slide,
from $35,75 a week (the minimum demanded by the Union for skilled wo
down to $6,00 a reek paid in some outside factories. The code made a.
mum of $14.00 a week mandatory. About 80% of the manufacturers comply.
ediately. The 20% who did not omrply, could be classified into three,


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