Evening star., 1950-05-28

Motors and the CIO Auto Work
wages, pensions and health insural
involving vacations, grievance pr'
certain skilled workers. About
100000 hourly rated workers
spread over 16 States are directly
benefited and it is likely that
another 10000 members of the
newly organized IUE electrical
workers. will get the same terms,
since the two unions recently
agreed to work together and past
GIN contracts have been similar
for these classes of workers.
A grand view of this noteworthy
settlement establishes beyond
doubt that free collective bargain
ing can and does work. But, this
session was marked by several
important elements which COM
bined to insure a peaceful and
satisfying accord not only to the
parties but to the entire Nation.
In the first place, bargaining
was preceded by a three-month
Joint study, on an impartial basis.
of the complex issues involved in
establishing the pension and well
fare plan. Unquestionably, even
If the research did not settle bar
gaining points, 1t removed much
of the technical underbrush and
introduced a scientific approach.
Second, of course, the industry
had just witnessed one OF the most
bitter and disastrous strike feuds
In the Chrysler strike and neither
side wanted a repeat performance.
Finally, both sides recognized
the supreme Importance of worker
and public demands for security
and stability as bulwarks of in
dustrial democracy and were wise
enough and capable OF meeting
these demands.
Five Years Was Surprise
Most surprising element in the
contract, which itself came as a
complete surprise is its duration
The agreement runs for five years,
until May 20, 1855, and has no
reopening clause. Although there
has been a steady trend toward
long term contracts, capped only
two weeks before by the same
union in a three-year contract
with Chrysler, the GIN agreement
is the first covering five years.
without qualification. A recent
analysis by the Bureau of National
Affairs, publisher of labor news
and services, notes that splits exist
on both sides concerning the de-
STABILITY Of extended contracts.
Many unions object to binding
themselves for more than one year
on the ground that our economy
moves too fast and long-term as
sumptions are unrealistic. They
say they want to take advantage
of gains won by other unions and
don't want to be tied while the
rest go by.
1t is a credit to the corporation
and to the union, especially, that
they found it possible to insure
five years of industrial peace, de-
spite the realization that stock
holders and members might
clamor for adjustments based on
changes which an uncertain fu-
ture may bring. It is significant
that the UAW, which has pio-
neered in industrial relations with
the first of the modern collective
bargained pensions at Ford and
adjustments of wages via the
cost-of- Living index at GIN two
years ago. chose to forgo the pos
sibilty of introducing improve
ments for half a decade. This
long-span settlement is at once
a victory and a concession for
the union, since Walter Reuther
and other UAW officials have pub
licly expressed interest in the
guaranteed annual wage, in sew
erance pay, in greater recognition
of increasing productivity perhaps
by shortening the work week.
Evidently the parties felt that the
greater gains lay in stability and
the public confidence in continu-
ing production.
Whether this precedent will be
followed remains to be seen. Not
many unions or corporations can
carry the same weight in industry
as these principals, and not many
can assert such leadership. The
smaller unions, no matter how
desirous of stability, may not be
in a position to Withstand pres
sures-gains or loSses-of other
settlements. Widespread adoption
OF the long-term settlement would
60 far to establish patterns in
wages and security factors and to
settle the economy, but the GIN
model may not be enough. It
must be remembered that two
years ago the GIN formula of
sliding wages up and down as liv-
ing costs moved was held out as
guide, but there were few takers.
Escalator Wage Stays
Despite Well-known union dis
satisfaction with operation of the
escalator clause. the parties agreed
to continue the novel provision of
the 1948 contract. AS before, GIN
workers get or lose l cent per
hour whenever the Labor Depart
ment's cost-of living index moves
up or down LA points. There is
no ceiling on the amount of raise
but the floor is the basic rate.
Since the present living cost allow
ance is 3 cents above the rate,
workers can be cut at most only
cents below what they now earn,
for duration of the contract. No
adjustment was made on the basis
of the index upon institution of
the contract, although UAW Pres