Evening star., 1947-06-28
1O,OOOtoB Be Covered
BY Ford-UAW Pact
On Retirement Plan

DETROIT, June 2S.-The Ford
Motor Co., which pioneered the
check-on system of dues collection
in the automobile industry, yesterday
became the first car manufacturer to
agree to an old-age retirement plan
for its production workers.
Nearing the end of almost two
months of contract negotiations,
the Ford management and the CIO
United Automobile Workers Union
announced that agreement had been
reached for the setting up of PEN
sion program and straight 7-cents-
an-hour wage increase for some
10000 production workers.
The union in its drive to obtain
the retirement plan passed up a
company offer of six paid holidays a
year. Clauses for such holidays were
included in some major auto COM
pany contracts for the first time this
year.
Richard T. Leonard, UAW Ford
director, asserted the pension plan
will cost the Ford Co. $500 900 goo the
first year, and SIS 900 900 for each
year thereafter. The first-year es-
innate covers the cost of the COM
pany's assumed liability for past
service ofsUAW workers on the pay
roll.
Management Silent on Cost.
Management spokesmen made no
comment on the probable cost.
Yet to be worked out are specific
details of the program, what if any
contribution the workers will make
to 1t once it has been established,
and the effective date of its opera
ton. One UAW officer said the scale
of retirement payments probably
would range between SO and so per
cent of the workers average annual
earnings during his employment.
The wage increase will be retro
active to May 81, 1947, the date on
which the old contract expired. The
new contract, when signed, will run
for a minimum Of two years.
In addition to the straight J.
increase, agreement
also was announced under which
an additional S cents an hour In
crease will be given to 10000 main
tenance : employees and to core
makers and jobbing moulders.
Would Amount to Is Cents.
Mr.. Leonard said the 7-cent in
crease, plus the benefits of the pen
sion plan, In effect amounted to an
increase of more than Is cents an
hour. General Motors and Chrysler
Corp. previously had agreed with the
UAW on an equivalent" increase OF
Is cents an hour, liz cents OF which
was in the form of direct wage
advances and the remainder in the
form of six paid holidays annually.
Ford had offered a similar agree
ment but the union refused, de-
manding the old age retirement
project. In the agreement an
nouncing yesterday the union ap-
parently traded the six paid holidays
for the pension program.
A Joint statement issued by Mr..
Leonard and John F. Bugas, Ford
vice president in charge of indus
trial relations, said:
With the wage increase the
average hourly pay Of Ford en-
ployes will be approximately scents
an-hour more than those of major
competitors"
To Resume Meeting Monday.
With the 7-cent increase the Ford
average hourly rate for production
workers is increased to $1.46l2: Cen
eral Motors rate has been figured
at S1.42h, and ChrySler at $l.44A
Management and union conferees
will resume meetings Monday to
work over other phases of the old
contract, many provisions Of which
will be retained, spokesmen said,
including the union shop and the
union dues check-of.
Unmentioned in the nearly two
months of negotiation was the So
called company security" provision
of the old contract. 1t provided PEN
alties against workers involved in
unauthorized work Stoppages.
The wage and pension agreement
undoubtedly forestalls q threatened
strike among the Ford production
workers. A 30-day strike notice
filed by the UAW expired Tuesday,
but no action was taken as negotia-
tions then under way appeared near
satisfactory conclusion.
Yet to be settled is 4-week-old
strike of 5000 Ford foremen, men,
bers of the Foreman's Association
of America independently. The dis
pute involves union recognition and
a special committee of the UAW
International Executive Board will
consider next Tuesday a petition
from the foremen'S IIr,inn that IJAW