Evening star., 1946-01-11
Summary Of Report to Truman by GIN Foct-Finders


measured, should in our Judgment
be given some weight along with
loss of earnings through shorter
hours.
80. The proposal is in line with
the national wage-price policy.
'3. 1t is reasonably related to ad-
justments which have already been
made by some portions of American
industry. As a leader of American
industry, General Motors ought to
stand in the forefront of those en-
ployers who are doing what they
can to cusion for their workers the
economic shock of the transition
from war production to civilian
production.
a. The company faces a period
unprecedented in its history, when
the demand for its products will
in all likelihood exceed its max
imum capacity to produce. The
company will go into this period
in a very favorable position: With
a more efficient working force, as
experienced workers return from the
war and take the place of new
comers to industry; with new and
up-to- -the-minute plant facilities,
which will come into operation in
the latter part of the year; and
with an increasing productivity
through chronological advance
which can be expected to make
itself felt significantly at least
toward the end of the first year OF
operation.
ITO the union and to the workers
we have this to say:
81. If, as we believe is probable
the hours worked in 1916 will aver
age a fraction over 40, based on a
normal 40-hour week, the amount
here recommended would make up
the entire loss of earnings from
reduction of the war time hours
worked in 1914. If the hours should
average close to Al, the loss would
be more than made up, and over
time premium pay would further
increase the effect of the benefit.
80. If in this respect our judg-
ment should prove faulty and the
hours should average 40 or less, the
loss would still to very large ex-
tent be made up. President Truman
said on october 80, 1945, We can
not hope, with a reduced work week,
to MAINTAIN now the same take
home pay for labor generally that
it has had during the war. There
will have to be a drop. But the
Nation cannot afford to have that
drop too drastic If there should
be a drop in this case. we do not
believe that it would be a drastic
one.
"We conclude with these general
observations:
81. There is laid upon us an obli-
cation not to recommend an in
crease which we believe would have
inf1ationary consequences. We have
satisfied our consciences on that
score so far as the company is
concerned.
Other Companies Affected.
"2. So far as the rest OF the au-
tomobile industry is concerned il
is recognized that the settlement ir
this case will affect. the wage levels
of all automobile companies, not
necessarily identically or all at once
but fairly speedily and more or less
to the same extent. 1t is well
known that General Motors has
consistently been the most profit
able of the automobile companies
Only one othey company approaches
it in this respect.
Except in the case of Genera
Motors. however, published data
on hours, wage rates, material costs
income and profits are meager. We
have examined them and are un-
able to come to any clear con-
clusions; but one fact stands out
and that is that all the companies
produced in l941 much less in pro-
portion to their capacity than Gen.
eral Motors, and therefore, under
the peak demand to be expected ir
1916, they are likely to be able tt
operate at proportionately higher
volume in relation to 1941 output
than General Motors.
Under these circumstances we dc
not think that there would be any
occasion for considering a down
ward adjustment of the proposed
General Motors wage increase or
the ground of price consequences
to the industry.
"3. So far as industry generally
is concerned, we wish to emphasize
as sharply as we know how the
fact that we have endeavored tc
decide this case upon its own par
tlcular merits. We have not evolved
any formula or set of rules to be
applied in other cases. Each case
must stand upon its own footing
and be judged accordingly"
The board closed with these spe-
cific recommendations:
81. We recommend that the COM
pany grant a general wage increase
VI 1S12 CCllGS GIL ilOuT.
"2. In line with the customary
practice of American industry in
similar situations, we recommend
that the staus quo prevailing be-
fore the strike be restored by the
reinstatement Of the 1945 contract
between the parties, which the COM
pany Cancelled on December 10
1945 Gas it had right to do).
"3. We recommend that after the
reinstatement of the contract and
pending it's expiration on April %,
1916, the parties settle by collective
bargaining the remaining issues
between them.
End of Strike Urged.
a. We recommend that the strike
be called off and that the employees
be returned to work without dis
elimination because of their par
ticipation in the strike.
IS. We recommend that the man.
agement, the union, and the work
ers join in a whole effort to
restore production as speedily as
possible; to continue it without in
terruption, and to lift it to new
levels of efficiency and capacity in
the interests of all the people"
Earlier in the report, in describ-
ing the nature and scope of the
L. L. y