Evening star., 1946-01-12
The GIN Report

finding commission in the General
Motors case. carrying a recommen-
dation for wage increase of 1872
cents an hour, is predicated more on
gueSswork than on facts. Neverthe-
less, If one accepts the basic PROPOSE
ton that 1t is proper function of
Government to recommend a spe-
ciflc settlement in dispute of this
kind, the report, although rejected
by General Motors, represents what
Is undoubtedly sincere effort on
the part of the commission to find
basis for settlement of very costly
strike.
The task set before the fact-find-
ers was one of great difficulty. None
of them had any experience in the
automobile industry. Despite this
handicap, they were called upon in
period of twenty days or a little
more to qualify as experts in pecu-
liarly uncertain field, and to render
judgments which those who have
spent their lives in the industry
would require months to form. AS
necessary result, their specific rec
ommendation is based on a series of
assumptions and estimates which
may or may not be sound.
Essentially, the recommendation
is compromise that is weighted in
favor of the workers. The union
had asked for an increase of 80 per
cent to eliminate any loss of "take-
home" pay. The recommended set
tlement figures out to an increase
of about ia per cent. It is clear,
however, that the fact-finders con-
cluded that this would give the
union leaders substantially what
they wanted, for, while stressing at
one point that the President had
said there would have to be a drop in
weekly earnings, the report appeals
to the workers for acceptance of the
1912-cent figure in these words: IF.
as we believe is probable, the hours
worked in 1916 will average a frac-
ton over 40, based on normal 40
hour week, the amount here recon-
mended would make up the entire
loss of earnings from reduction of
the wartime hours worked in 1914"
If that belief is sound, then one
might be justified in assuming, al
though it is not certain, that the
recommendation would have been
accepted by the union It has been
t1atly rejected, however, by General
Motors in advance of any formal
expression from the union, and the
effect of this is to place on the COM
pany the responsibility for the fall
ure of this effort by the Government
to settle the strike.
Presumably, the company did not
assume this risk of alternating pub
llc support without giving the mat
ter most careful consideration.
Baslcally, it rests its objection to
the commissions report on the
ground that it cannot accept the
"unsound principle that a specific
company should be forced to pay
higher than competitive wages be-
cause of its financial ability"
This is General Motors own inter-
probation of the report. Undoubtedly,
the commission did conclude that
General Motors had the ability to
pay the recommended increase. But
the conclusion that the particular
amount should be paid rested on
various other considerations, some
of which loomed larger in the report
than the question of ability to pay.
Without regard to conflicting in
terpretations, however, the fact re-
mains that General Motors has a
right to reject the recommendation
If it believes it to be fundamentally
unsound. The alternative, presum-
ably, is continuation of the strike
which already has proved so costly
to both parties and to the country
as whole. To put it mildly,
it is doubtful that any one can win"
in such a contest.