Evening star., 1950-09-04
Ford Boosts PAY
For 10000 in
Living Cost PACT
Lost Of Auto Big 8
FoIIs in Line With
New 5-Yeur Contract
By the Associated Press

it's 10000 plant workers today
and otherwise made history in a
new f1ve-year labor contract.
Ford, last of the auto industry's
big Three" to fall in line in the
march to higher pay levels, did it
in an unprecedented manner.
On this mid-century Labor Day,
the company junked one contract
with the CIO United Auto Work.
ers and agreed to a new one.
Its major terms:
l. An Scent hourly cost of liv-
ing increase to 10000 production
workers. This would be subject to
reduction in event of fall in liv-
ing costs.
2. Hitching the wage to tho
cost of living-in that respect
duplicating the famed General
Motors precedent.
3. An increase in worker pen
sions from 500 monthly to $125,
including social security.
4, A 4-cent fiat annual hourly
increase for four years of the
contract.
5. A 13-cenU-an-hour coSt-of-
living increase for 10000 skilled
workers, subject to reduction.
Accord Reached in Three Days.
Ford and the union reached
the agreement after three days
and nights of secret negotiations
climaxed in a full understanding
about 5 am. today.
The company did not estimate
the contracts cost.
However, the union declared it
would mean an additional outlay
of between $45 million and $50
million & year for the company.
Both sides made statements in
dicating their complete satisfac-
ton with the new pact. 1t took
effect as of September /, and ex-
tends to June l, 1855.
Whether it will mean higher
prices on Ford-made cars-the
Ford. Mercury and Lincoln-was
not stated.
Ford said its impact" on prices
cannot be clearly established
now"
Other Firms Nom -committal.
Other auto firms. in giving. the
raises to more than 500,000 work.
ers which preceded Ford's boost,
also had not committed them
selves.
Each. however, expressed hope
there would be no need for price
increases.
AS result of the contract, Ford
Joined in the parade of pay boosts
which before today had gone to
more than 100000 workers in the
auto industry.
The bulk of this has developed
within the last week or 10 days.
AS chief negotiator, the JAWS
Walter Reuther and Ford's John
S. Bugas announced the terms to-
gether at press conference
shortly before dawn.
Mr.. Bugas, industrial relations
director of the company, said
there would be adjustments in the
salaries of 10000 Ford salaried
commensurate to the
increases given Ford plant men.
Both Sides Hail Contract.
Both sides hailed the agreement
as a contribution to American
economic stability.
One result was to bring Ford's
wages more in line with the
approximately $1.75 an hour pay
of competitors, union negotiators
asserted.
On this very point, however.
Mr.. Bugas asserted that Ford'S
average hourly wage is now &C
tualfy three to seven cents ahead
Of competitors. The average wage
in the auto industry is probably
to set at an exact
figure. There are too many clas-
siflcations of workers to permit
arrival at a figure that would
satisfy all parties.
The union said the new pack
age amounted to a gain per man
of 1874 cents an hour, including
improvements in certain wage
classif1cations and liberalized pen
sions, insurance and hospital pro-
grams.
General Motors Started Trend.
General Motors Corp. started
the upward trend in May when
it guaranteed it's more than 3O0,-
300 workers hourly increases Of
four cents for each of the next
five years. Then, on September
|, GIN workers pay went up an
other five cents an hour under
the General Motors JAW cost
of-living agreement.
Chrysler Corp, which had
settled long and costly strike
giving a general wage in
,reaSe early in May, announced
on August Is that it
vas giving its 10000 employees
'aises of at least 10 cents an hour.
Then followed Briggs Manu-
acturing Co. and Hudson Motor
Ear Co. with boosts of S to 7
'entS an hour, and the Packard
Motor Car Co. with a 9-cent
lourly raise.
While those increases were being
sporadic walkouts
'roke out in several Ford plants
ast week.