Evening star., 1950-05-24
5-Year GIN Contract
Hailed for StabiIizinq
Effect on Industry
by the Assoeioted Press

by the Assoeiated Press
DETROIT, May 24.-The sud-
den and significant new General
Motors contract left the auto in
dustry today in its most settled
condition in years.
All the big Three" producers
GIN, Ford and Chrysler-and some
of the so-called independents were
signed up with the CIO-United
Auto Workers for at least two
years.
Longest of all the agreements is
the unprecedented flve-year Gen.
eral Motors pact announced yes
terday. It does not permit even
q wage reopening before 1855.
The Ford contract allows either
the company or union to ask for
wage adjustments once before it
expires in 1852. The Chrysler
contract permits two wage reopen
ings by either side in its three
year duration.
All this seemed to leave both
sides In the industry satisfied.
GM Stock Rises.
Wall Street gave quick approval
to the new General Motors con-
tract today.
In deal involving nearly ST.
ESQ, 900, GIN common stock surged
ahead 1925 a share to $89.75,
highest price paid since 1929. A
block Of $4,000 shares sold at the
new high. Quick profit taking
later trimmed the gain.
Today's rise topped an advance
Of $1.87 a share yesterday and
an advance all of last week
amounting to $3.50 a share.
A couple of weeks ago General
Motors reported the highest sales
and earnings in the first quarter
in the company'S history.
Management was looking for
ward to long periods free from la
Dor strife. The UAW was hopeful
Of using the Big Three agreements
as patterns at scores of smaller
Arms where bargaining has been
held up pending the big settle
ments.
Will Use GIN as Pattern.
Walter Reuther, UAW president,
said the union would use the GIN
pact as a pattern wherever we
can"
The union claimed it was far
superior to either the strikeless
Ford settlement last September
or the Chrysler settlement at the
end Of 100-day strike May 4.
Its major provisions were these:
/. Continuation of the escalator
clause in the old two-year con-
tract. This bitches the wages of
nearly 250,ooO GIN workers to the
cost Of living as measured by the
Labor Departments Bureau of
Labor Statistics.
2. A. guaranteed Accent hourly
wage boost when the contract
goes into effect Monday and an
other each May 20 thereafter for
the next four years. This is known
as an annual improvement fac
tor" unaffected by ups and downs
in living costs. ID 5
3. Pensions of at least 500 a
month, including Federal social
security benefits, with a maxi
mum of $117.50 if the. Govern
ment payments are increased by
Congress. Full pensions are pay
able at age 65 after Is years
service.
Company Finances Pensions.
Except for social security, the
pensions will be entirely company
financed through a trust fund. A
Joint company-union board will
administer them.
4. A modified version of a union
shop. This requires all new en-
ployes to join the union within
80 days for a period of at least
q year, giving them an option of
quitting at the end of that time.
Old employees now in the union
will be required to maintain their
membership. Those not now in
the union are not required to join.
The terms also provide increases
in vacation benefits and in med
tcal hospital insurance.
Mr.. Reuther said the GIN set
tlement was worth 19 cents an
hour Immediately and 35 cents
after the last fourteen wage boost
Is paid. He estimated it will cost
the company more than 81 bill
lion over the five-year period and
will add $500 year to the aver
age GIN workers income by 1855.
The union president unhesitat-
ingly acclaimed it the most sig
nificant and constructive step
- -. H..