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Domestic News March 16, 1959

The Nome Nugget

Nome, Nome County, Alaska

What is this article about?

Assistant Postmaster General Eugene J. Lyons defends cost-of-living wage allowances for postal workers in Alaska (25%), Hawaii (20%), and Puerto Rico (17.5%) in testimony before a House Appropriations Subcommittee, opposing Rep. Vaughan Gary's view that they are unnecessary. He cites high wage rates and defense hiring competition in Alaska. 1958 data shows costs and employee numbers for each territory.

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P. O. Dept. Official
Defends Alaska
Wage Allowance

WASHINGTON. (AP) - Cost-of-living allowances aren't needed in the Post Office Department to recruit workers in Hawaii or Puerto Rico but they are a necessity for Alaska.

This is the view of Eugene J. Lyons, assistant Postmaster General in charge of personnel, as outlined in testimony released Friday by a House Appropriations Subcommittee.

The allowances 17 1/2 per cent above base pay in Puerto Rico, 20 per cent in Hawaii and 25 per cent in Alaska -- came under fire from Rep. Vaughan Gary (D-Va). Gary, who said he had looked into the matter in Hawaii, took the position there should be no allowances.

Lyons, however, defended the use of the allowances in Alaska where he said "going wage rates . . . are so much higher than in the United States that the territorial allowance is necessary."

Asked if he felt an increased population in Alaska resulting from statehood would ease the department's recruiting problems, Lyons replied:

"I should think it would, Congressman, except that the demand for employes by the defense establishments in Alaska is so great and appears to be continuing that it leaves the Post Office Department a difficult problem in the recruiting of personnel."

During the 1958 calendar year, the number of employes receiving the allowance in each of the three areas, total cost and individual average, include:

Puerto Rico, 1,066 employes, $907,831 and $851.62; Hawaii, 875 employes, $716,399 and $818.74; and Alaska, 586 employes, $605,425 and $1,033.15.

What sub-type of article is it?

Economic Politics

What keywords are associated?

Post Office Wage Allowance Alaska Hawaii Puerto Rico Congressional Testimony Recruiting Problems

What entities or persons were involved?

Eugene J. Lyons Vaughan Gary

Where did it happen?

Washington

Domestic News Details

Primary Location

Washington

Event Date

Released Friday

Key Persons

Eugene J. Lyons Vaughan Gary

Outcome

1958: puerto rico 1,066 employees $907,831 total $851.62 avg; hawaii 875 $716,399 $818.74; alaska 586 $605,425 $1,033.15. allowances defended as necessary for alaska recruitment amid high wages and defense competition.

Event Details

Eugene J. Lyons testified before House Appropriations Subcommittee defending cost-of-living allowances for Post Office workers: 17.5% in Puerto Rico, 20% in Hawaii, 25% in Alaska. Rep. Vaughan Gary opposed them based on Hawaii observations. Lyons argued Alaska needs them due to higher wages and defense hiring demand, expecting statehood population growth to help but not fully resolve issues.

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