Evening star., 1950-05-26
General Motors Head
Happy Over Contract
With Auto Workers
Expects New Agreement
Will Set Pattern for
Better Labor Relations
By Daud laurence

better LoDor kelutlonS
By David Laurence c
Charles E. Wilson, president of
General Motors, is a happy man
he feels that a load has been lift
ed off his mind and the minds of
his associates for a period of five
years and that the new agreement
with the United Automobile Work
ers (C1O) will set a pattern for
constructive achievements in
labor or-management relations.
That's what the chief executive
of the Nations largest business
today told this correspondent in
emphasizing some of the reasons
why General Motors made vari-
GUS wage concessions in return
for an assurance of productive
efficiency.
Asked particularly why General
Motors agreed not to lower their
pension payments when a change
in. the Federal law on social-se-
curity schedules brings employees
higher payments at retirement,
Mr.. Wilson said that companies
which had been counting on re-
ducing their payments for private
pensions would soon find them
selves face to face with this issue
anyway across the bargaining
table.
r.. Wanted Ne Haggling.
Mr.. Wilson intimated that, in
stead Of haggling over these issues
In intermittent negotiations dur
ing the next five years, he pre-
ferred to settle them now as they
probably would be settled eventu-
ally anyhow. For. while there are
clauses in some company agree
ments recently consummated
which do not permit reopening on
the pension issue as such for five
years, there are other clauses
which will mean annual reopen
ing Of wage issues and the two
things tend to become inter-
twined..
I'VE had a plan for pension
payments of at least $3.50 per
month for each year of service up
to 20 years." said Mr.. Wilson,
land this applied to our salaried
employees only. We now have merely
extended it to apply to everybody
IN the company and we have put
1t on a 30-year basis. We have
figured on the basic payment of
$3.50 per month no matter
whether or not the Federal Social
Security law is changed"
Asked about the administra-
tion Of the pension fund, Mr..
Wilson said quite frankly that
joint administration of the fund
itself would never have been ac-
cepted by his company. Since this
issue was settled in favor of en-
ployer control in the agreement
ending the Chrysler strike, it was
automatically embodied in the
General Motors contract.
II don't think either side ever
wins prolonged STRIKE" he COM
mented. II believe If management
plays fair. the unions will, too.
The important thing from our
point Of view is not so much the
compensation features which we
may grant but what we get in
return for the money we pay.
"Can Run Our Own Plants"
I'VE hold as very important the
fact that we can run our own
plants. It Is in those provisions
governing productivity and eff
cheney that the real benefit comes.
We hear much talk in other in
dustries about objections to tech
nological Improvements and new
tools. We figure that our annual
Improvement wage increases are
made possible through technology
cal efficiency. We want to be able
to produce more with the same
human effort"
Asked about prices, Mr.. Wilson
said that General Motors has
made no commitment either to
raise or reduce prices. He did in
dicate. however, his hope and ex-
pectation that increased efficiency
will be able to absorb a major part
OF the increased expenses of the
new labor-management contract.
He is counting heavily on the
value of stability in labor rela-
tions and on an atmosphere of CO.
operation engendered by a mutu-
ally satisfactory agreement be-
tween the union and the company.
Mr.. Wilson'S confident that the
cost-of-living formula which Gen.
eral Motors has introduced will
vindicate itself. He thinks it has
a psychological value in that it
can go up or down according to
changing conditions. He feels that
the new contract Is so clearly
written that it doesn't permit any
tinkering with the cost-of Living
index itself, which is the key to
wage adjustments.
What we were after and hope
we have achieved" he concluded,
lis that instead of friction and
industrial warfare we and our
employees can enjoy a period of
reasonableness and peace and
we hope that it sets a pattern in
that respect for our negotiations
In the future without the neces-
sity of strikes"
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