3% Insurance

On the eve of its annual convention at Cincinnati last week the American Federation of Labor received from its all-powerful executive council a recommendation for compulsory unemployment insurance under state control. Long opposed to such a scheme, the A. F. of L. council reluctantly swung over to it because "the management of industry has not provided work security or created work opportunities for those able, willing and eager to work."

The A. F. of L. plan: Let each state set up an unemployment insurance commission to handle relief. Every employer would be forced to contribute not less than 3% of his payroll to the commission's fund. For such contributions he would be allowed certain income tax deductions. No labor insurance companies would be allowed to write unemployment insurance. Only by such a system, the council contended, can the violent fluctuations of employment in mechanized industry be leveled out.

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