Evening star., 1948-05-29
First Of Chrys|er
Workers Return
AS Strike Ends
Straight Increase
Of13 Cents Betters
Formula at GIN
by the Associated Press


DETROIT, May 29.-The van
guard of $4,000 Chrysler workers
began trickling back into the
plants today, their 17-day strike
ended by a straight 13-cents-an-
hour wage increase.
With their return. the second
major labor dispute in the automo-
bile industry this year was written
off the books.
Chryslers settlement with the
'CIO United Auto Workers, an
nounced last night. bettered by 2
cents the raise given 225,000 strike
threatening General Motors en-
ployes under a cost Living for
mula only three days earlier.
1t provided less than half the
unions original demand but more
than twice Chrysler's best previous
offer.
Contract Extended to 1850.
1t also extended the company's
contract, due to expire in II months,
until August, 1850. Either Chrysler
or the UAW can seek an adjustment
Of wage rates once any time after
June IS, 1949. Salaried employees,
some of them represented by the
UAW, were given an per cent raise
with a floor of $40 a month.
There was no official explanation
as to why Chrysler settled for a
fiat sum rather than the widely
heralded GIN sliding scale. How
ever, union customarily holds out
for a penny or two more than the
pattern for its members on strike.
Chrysler would not say whether it
plans to raise car prices to cover
it's higher labor costs.
The agreement left only the Ford
Motor Co. of the industry's big
three yet to settle with the UAW
in the third postwar wage drive. 1t
apparently knocked a second prop
from under Ford's counterdemand
for wage cut.
Union Halls Signal Victory"
The auto union promptly hailed
the settlement as "a signal victory
for all American workers in view
of the determination of industry as
whole to fight against any wage
increases at all or, in some instances,
to fight for wage reductions while
prices continue to rise
Norman Matthews, UAW Chrysler
director, said the strike had cracked
the solid opposition of the auto,
steel and electrical industries to pay
raises this year.
Despite the settlement. only a
handful of employees were called
back to work today to prepare ma
chimes for production. Chrysler said
assembly line operations could not
be resumed for more than a week.
Chrysler workers in 16 plants in
Michigan, Indiana and California
left their jobs May IL in a demand
for a 30-cent increase and several
non-wage benefits. On the eve of
the strike the union scaled down its
demand to II cents. Chrysler's best
previous offer was cents and that
was withdrawn after the union
turned it down.
30 Cents Demanded at Ford.
The wage demand at Ford also is
80 cents, S more than was asked
of General Motors. Negotiations
with Ford are slated to start within
three weeks.
Chrysler's average hourly wage
was increased to S1.63, compared
with GINS $l.6l under the new con-
tract there. But a slight rise in the
cost of living could push GINS aver
age past Chrysler's when the first
quarterly adjustment is made in
Ford, in asking for a pay cut two
weeks ago, contended its rates were
higher than those at its two prin-
cipal competitors. Both GIN and
Chrysler disputed the claim.
One Disorder at Chrysler.
The Chrysler strike was marked
by only one major disorder. On May
II State police were rushed into
suburban Highland Park to stop
fist fights on the picket line.
Union estimates placed the an
nual cost of the new Chrysler set
tlement at $23, 100000. The corpora
ton said the strikers lost 100000
a day and it lost 5000 cars and
trucks day during the shutdown.
The agreement stipulates the set
tlement must be ratified by the
unions rank and file members in