Evening star., 1948-05-30

I1bli "dA@ 114 10tC 3CZc ea1Ao CoA3y 4cNV.
The GIN wage pact, whether 1t
works that way or not, provides
pattern for settlement of issues con-
fronting other automobile compan-
les and other major industries. 1t
promises a basis through which to
make economic strikes unnecessary
for long time to come.
Although the Chrysler 13-cent-
hourly increase did not follow the
living cost formula, officials feel
that the GIN agreement was di-
rectly responsible for ending the
Z Chrysler strike.
Sets a Precedent
Economic authorities are divided
as to whether the agreement-assur-
ing the 5000 GIN workers an i'm
mediate increase of II cents an hour
and possibly more later on-is in
flationary. But it would seem that
such a risk is dwarfed by the posi-
bilities that the pact will bring in
dustrial peace, thereby removing a
real threat to our own economy and
our program to help the world. The
effect could not possibly be as in
f1ationary as work stoppages in a
number of basic industries.
The agreement between GIN and
the CIO United Auto Workers is
unique. 1t marks the first time In
q major industry that wages are tied
directly to living costs by contract,
something labor has advocated in
the past, but strictly as one-way
proposition. The tie-in here seems
favorable to the worker, since his
potential gain is far greater than
the possible cut in wages.
Another unusual part of the
agreement is that which provides
for an annual increase in wages of
3 cents per hour to improve the
workers standard of living. The
corporation guaranteed that increase
regardless of what happens to liy-
ing costs.
The inclusion of the annual 3
cents Improvement factor" would
seem to be a major step toward
achievement of a longtime goal OF
UAW President Walter P. Reuther.
He has said that some formula must
be found to make economic strikes
unnecessary. He advocated way OF
assuring the worker that the buy
ing power of his hour of work will
increase as the Nations industrial
efficiency improves.
Other Firms Surprised
Significance Of the GIN settlement
transcends the automobile industry.
The corporation broke the solid line
Of big industry for a little or no
wage increase this year and 1t ad-
mitted same in a statement to union
representatives at the time the pro-
posals were made.
perhaps the easiest thing for us
to do" GIN said, would be to say no
to your economic demands, following
the position generally taken by many
other important employers, and hope
that with better crops this summer
the cost of living would go down,
that in the meantime your union
and its members would be patient
and would not precipitate a dis
astrous series of strikes.
This would be leaving all OF the
responsibility with you. We believe
we should share this responsibility,
and after careful review Of the
whole situation we have some ideas
that we think might be helpful
officials of other big companies
In and outside Of the automotive
field were represented as being
"surprised' and disappointed" by
GINS "capitulation." The feelings
apparently were more marked
among the big producers Of steel
and the General Electric Co. All
have refused to bulge to the CLOS
wage demands.
In taking cognizance OF what has
been happening in other big COM
pany bargaining, GIN said either
labor's economic demands have been
refused, no solution reached, and
work is continuing under a more
or less temporary basis with labor
dissatisfied, or large and important
strikes have been authorized and
are now going on.
1T is clear that the men who
represent industry are risking much
In their efforts to prevent further
infation-in some cases reducing
prices and saying no to labor on
their demands for increased wages
We subscribe to the Importance OF
this point of view.
Should Pay Dividends
"At the same time" GIN con-
tinued, I'VE realize the very real
problems the employees face in the
increased cost Of living"
At another point, referring to the
JAWS argument for a wage boost,
GIN stated:
The facts, as reviewed, may be
interpreted to support the unions
contention that GIN workers have
been placed at a disadvantage by
the fact that consumer prices have
advanced more rapidly than their
hourly earnings"
Corporation officials have not
said whether they will raise car
prices as a result Of the new con-
tract. But they weighed all Of the
angles, infiationary and otherwise
and decided it best to give in some
what.
In it's final decision, 1t would seen
that GIN demonstrated real indus
trial craftsmanship that should pa,
good dividends In the long run il
the way Of improved employe rela
tionS.