Evening star., 1950-05-28

tract. The old improvement fac
tor was 3 cents. The union stated
that the improvement addition is
tackled on to the basic rate, auto
matically raising the floor each
year, which applies to the esca-
lator clause.
S100 Pension Fund
The totally new economic por-
tionS of the contract set up a pen
sion plan providing 500 bene-
fit Gncluding the Federal social
security payment) at IS with Is
years service with the company.
The union originally demanded
$125. Disabled workers with at
least IS years service get pensions
ranging from $50 to 500, wholly
paid out of the fund, since there
are no public disability benefits;
they get regular retirement bene-
fits at 65.
Pensions will be financed wholly
by the corporation payments to
a trusted pension fund, and past
service of workers now on the
rolls is to be funded within 80
years. This form of financing as
we'll as the provision for joint
administration by union and COM
pany of eligibility conditions fol-
lows the pattern finally hammered
out In the Chrysler settlement.
The union figures that pensions
cost Z cents and health welfare
5 cents, totaling IL for social Sc
curity, or almost 70 of the esti-
mated f1rst-year total gain of 10
cents.
An important aspect of the pen
sion formula requires that the
GM-supported fund pay not less
than $3.50 per month for each
year OF service up to 80. If
amendments to the Social Secur-
ity Act now contemplated are
passed, the average GIN worker
benefits will go up to about $117.50,
assuming public payment of $50.
AT present, the average Federal
benefit for the auto industry is
$36, so that GIN will have to pay
$64 to make up the $100 pension
when the scheme goes into effect,
or about twice the minimum
which it is pledged to pay under
the contract for rs years of serv-
ice.
Changes Anticipated
This clause embodies the cardi-
nal JAW pension principle of
placing Federal benefits first and
industry benefits second, as sup
plementS to arrive at a modest
living standard. The union has
consistently supported improve
ments in the Government scheme
and has tried to devise formulas
for pensions which would muster
employer backing for amending
the Social Security Act. In this
formula, it is plain that GIN will
be able to reduce substantially the
portion of the pension which is
employer financed, if the en-
ployer-worker- financed social Sc
curity benefits increase.
Although the GIN pension is the
best so far negotiated by the UAW
IN terms of benefits and employer
costs Git may not equal the Budd
benefit which guarantees a $68
employer payment), it is rivaled
by the social security or l per
cent OF best monthly wages multi
piled by years Of service, which,
ever is greater.
The present GIN life insurance
sickness and accident policy which
was initiated in 1927 at a S40O
million coverage is enlarged and
improved. At no cost to the
worker. death benefits are in
creased by $500. These scales
exceed, in sense. the union
demands for a flat $500 life in
surance and $36 a week for tenn
porary disability.
Although GIN has for years
arranged for payroll deductions
for worker and family group hos
pitalization and medical-surgical
expense, it made no contribution.
The new contract specifies that
the corporation will pay half of
the cost of health insurance.
Health Cost Standard
This is the second national
standard worked out by UAW, to
provide equal benefits for all
workers of Nation wide corpora
ton. The first plan, developed for
Ford. has not been put into effect,
but has been adopted by the steel
corporations. If the GIN and steel
patterns prove successful over the
long run, it may we'll be that some
type of uniform voluntary prepay
ment conducted by nonprofit or
SSAAA@%SNOAOAAoB may bCCO1l1C GllC
prevailing method of meeting
hospital bills.
When the UAW cast ballots un-
der the Taft-Hartley Act early
this year and voted overwhelm-
ingly for a union shop, the corpo-
ration admitted it would have to
consider the demand, but ventured
nothing more. This was meaning
full, since President Wilson had
several times openly announced
his interest in pensions and wage
adjustments and the corporation
had a welfare program, even
though without union participa-
ton, in operation. Observers felt
that one of the stalemating prob
lens was union security. The re-
suit is a requirement that present
employe members have to remain,
but non-members may choose to
join or not. New employees have
to join within 80 days, but may
resign after a year. If they do not
then quit the union. they must
stay as members in good standing