Evening star., 1950-12-23


Sterilization Agency freezing un-
til March / the pay of a million
employees of the automobile in
dustry.
The auto wage freeze was
recommended unanimously by the
nine-member Wage Sterilization
Board, headed by Chairman Cyrus
S. Ching. 1t accompanies the
freeze and rollback to December
l levels of all automobile prices
announced a week ago.
Mandatory Controls Studied.
Wage board officials indicated
that the voluntary pay-control
standards will be worked out
within two weeks. The plan will
cover the salaries and wages of
all business and industry outside
OF the automobile field.
BY the March / date the Office
OF Sterilization Director Alan VAL
entine hopes to have price and
wage ceilings worked out on a
mandatory basis for the entire
economy.
The auto wage freeze order did
not go into what to do with the
highly controversial wage "es-
calator" clauses which are in most
auto industry labor contracts,
Under the clauses the pay of the
workers is increased or lowered in
accordance with living costs on
the Governments price ther-
mometer.
Text Of Order.
The wage order for the auto
mobile workers stated:
mo employer in the passenger
automobile industry shall pay. and
no employe in such industry shall
receive. during the effective period
OF this regulation, any wages,
salaries or other compensation in
excess of those permitted by exist
ing collective bargaining agree
ments or established wage or
salary administration plans or
schedules"
Since there will be no change
IN the industry's labor contracts
IN the next few months, and no
cost-of-living increases are due
until March l, the Wage Board
did not have to make a decision
on whether to approve the "esca-
lator" clauses, which some officials
regard as highly inflationary.
"A single industry or a portion
thereof cannot serve as the broad
base upon which wage stabiliza-
ton precedents are founded" ESA
said. THE implication of such
precedents to other industries,
employers and employees must be
thoroughly explored"
Order without Implication"
For this reason, the agency
continued, the auto wage order is
without implication" as to the
Governments final approval or
oisapproval of "escalator" clauses
and productivity improvement"
bonuses.
In Detroit. Walter P. Reuther.
president of the CIO United Auto
Workers, hailed the order and said
it recognizes that in the auto in
dustry I'VE have already achieved,
through our collective bargaining
contracts, the sterilization es-
sential to national defense"
I'VE are confident that when
the long-range orders are issued,
they, too. will provide for protec-
ton of our cost of living and an
nual wage improvement clauses. I"
Mr.. Reuther said.
Action Required.
The auto wage action is re-
quired by law, in view of ESA's
imposition. December 18, of a CELL
ing on new car prices. Wage
stabilization must be imposed in
any industry where prices are
fixed under the Defense Produc-
ton Act of 1850.
Meanwhile, Defense Mobilizer
Charles E. Wilson told Senators it
is too early to say how much civil
ian production may be cut as a
result Of the stepped-up munitions
programs.
I'VE are still in the analyzing
stage-we are analyzing like hell"
Mr.. Wilson told newsmen later.
He said the question of any
drastic reduction in consumer
goods is "a very meaty subject"
which he is now trying to boil
down."