Evening star., 1946-01-08
Union Leaders Call
Kaiser Contract Best
In Auto Industry

United Automobile Workers to-
day held an unprecedented
bonus wage contract with
Kaiser Frazer Corp, newcomer
to the auto industry, which they
will offer as a model for settling
disputes with the industry's
long-established firms.
Union leaders hailed the contract
announced by both sides late last
night, as "unquestionably the best
ever reached with an automotive
company"
In whirlwind finish to a highly
secret, seven-hour negotiating seS-
sion, Henry j. Kaiser, chairman, and
Joseph W. Frazer, president, an
nounced at a press conference that
the new firm would:
l. Base wage scales on prevailing
rates at the Ford Motor Co. River
Rouge plant, said to be the highest
in the industry.
Pool to Be Set Up.
2. Meet any increases granted by
General Motors as a result of the
current GIN strike.
3. Set up a pool by laying aside
$5 for each Kaiser, the company
low-priced car, and Frazer, its
medium-priced car, produced dur
ing the year at the big Willow Run
bomber plant, leased from the Gov
ernment for auto production. The
pool would be divided among Kaiser
Frazer production workers at the
end of each year.
The company has estimated it.
production rate will reach O00(
cars annually, so the pool will be
about $1,500,000.
To prevent wildcat strikes it was
stipulated that any worker partici.
pating in work stoppage not au.
thorized by the UAW-CIO Interna.
tional Executive Board would lose
bonus benefits for the period of par
ticipation.
Union Shop Provided.
The contract also provides for &
union shop, checkoff of dues and, ir
the opinion of both company ane
union, the most favorable" vet.
erans' clause ever drawn up.
r. j. Thomas, UAW-CIO preSi.
dent, who postponed flight tt
Washington to take part in the pro.
ceedings, described the negotiations
as lone of the bright lights in labor.
management relations"
After the press conference, al
which he sat on sofa between
Mr.. Frazer and Mr.. Kaiser, Mr.
Thomas left by plane for the Capi.
tai to report to Philip Murray, CIC
president, and heads of other CIC
unions.
The UAW-CIO chieftain said HI
believed provisions in the Kaiser.
Frazer contract embodied wage
scales which would fully meet the
unions demand for a 30 per cent
Increase.
He pointed out that if General
Motors Corp. should offer an 18 pei
cent boos<, as has been rumored, the
resultant increase offered by Kaiser
Frazer would very definitely" put
wages in the new company over the
so per cent top.
$1.19 Per Hour Average.
The average rate provided, basec
on current wages at the Ford plant
was set at $1.19 per hour, and Mr.
Thomas emphasized this is consider.
ably higher than in most auto
plants.
Yesterdays session began at pm
and ended with the contract an.
nouncement about II pm. Ir
Washington Mr.. Thomas will joir
other UAW-CIO leaders who are
awaiting recommendations from
President Truman's fact-findine
board regarding the seven-week -olc
General Motors strike.
The UAW chief had planned to &c
to the Capital last night, but post.
poned his trip when completion ol
the K-F contract appeared immi.
nent.
Meanwhile, a negotiating session
held between second teams" of the
UAW and General Motors yesterday
was termed "unproductive" by bott
sides.
Dodge Truck Plant Shut.
1--WE discussed noneconomic mat.
ters, reached no agreements and los
no ground joint statement said
Union negotiators will press de-
mands for the 80 per cent increas,
from the Ford Motor Co. when the
meet Thursday with company rep
resentativeS.
Another development in the De
troit strike picture came yesterda,
in an announcement from tn
Chrysler Corp. that its Dodge trucl
plant, producing 400 vehicles pc
day, is closing indefinitely becaus
of shortage of parts resulting from
picketing by an AFL teamsters
union. It accused the union of de
manding that only AFL driver
-