Evening star., 1951-06-02

100000 Units
In Auto Output
Revised Controls Will
Slash Production 37%
For Third Quarter


new and deeper cuts in the pro.
duction of automobiles to conserv,
scarce materials for the re.
armament program.
The National Production Au.
thority announced it will limi
passenger car output to IL mil.
lion in the three-month perioc
beginning July l, a reduction O.
200, 900 from the number Of car.
being produced in the current
quarter year.
NPA's action means that third.
quarter auto production will bt
about 81 per cent less than in the
comparable three months of 1850
Ia record year for the industry
Nearly 1.9 million cars were made
in the July September period las
year.
NPA said it was revising the
formula for controlling automo.
bile production. Previous order.
reduced output by limiting the
amount of steel, copper anc
aluminium auto manufacturer.
may use.
The new and more complicated
formula generally preserves tn,
Status in the industry of manu-.
facturers as Of January. 1850
dividing among them the avail
able metals according to the mum
Der of cars made in the bas,
Inul III.
NPA said the new system allow
manufacturers to divert steel, cop
per and aluminium from the pro
Iduction of heavier cars to lighte,
models. Thus the industry, i
lit chooses, will be able to max,
more vehicles than it could b,
following past practices.
The new formula, NPA said
allows the industry to use tn,
scarce metals to the best advan.
Itage. BY diverting materials t,
lighter models the IL million out
put figure of the July-Septembe,
quarter may be exceeded.
Production officials concede,
there may be some unemploy
ment in the industry as a resul
OF the new cut because the out
put OF weapons and other militar,
materiel will absorb only a small
percentage of the number to b.
laid off in the auto plants.
New Wage Formula.
Meanwhile, the Government
seemed ready to indorse a ney
control formula tying wages t,
the cost of living.
Chairman George w. Taylor O
the Wage Sterilization Board wa
said to favor adoption of a nev
policy providing for approval o
pay increases as living costs rise
This policy would replace tn,
present and more complicated
formula which, among othe.
things, allows wage increases O
up to 10 per cent above levels O
January Is, 1850.
DR.. Taylor's board of labor, in
dustry and public members will
continue their studies of new wag,
control ideas next week. The boart
on Wednesday will again discus
the subject with Economic Sta
bilizer Eric A. Johnston.
Mr.. Johnston proposed some
thing akin to DR.. Taylor's plan il
a meeting with the board Thurs
day. His proposal would ALLOW
wage increases of up to 1917 pc
cent above January, 1850, level
Immediately,
1t was understood that Mr.
Johnston also asked the board t.
stop handling individual wag'
cases which may set pay prece
dents until a complete new con
troll policy has been drafted.
Mr. Johnston, it was said, woult
permit wages to rise by the SAM
percentage as living costs sine
January, 1850. This would permi
increases up to 10.5 per cent undeI
the Governments old cost of living
index.
In addition, further increases O.
I2 per cent a year would be al
lowed for increases in worker pro
ductivity. The employer, however
would have to certify that the pc
worker output in his plant had in
creased at least 2 per cent befor,
the employees would get the pa.
raise of the same size.
Increases Not Mandatory.
Under the Johnston plan, tn,
board would fix standards for th'
granting of additional wage in
creases instances of hardship O.
enequities.
The wage increases would no
be mandatory on the employer
but the employer would be allowed
to raise pay that much if he wer.
willing to do so.
The WSB has had under con
sideration for more than a weel
a management-labor request fol
approval of a 4-cents-per-hou
annual productivity increase which
is due nearly a million automobile
workers next week. A boare
spokesman announced the prob.
lem would be discussed further
at a meeting Monday.