Evening star., 1951-08-04
Johnston Considering
|WSB Proposal 10 Link
Wages 10 Living Costs
By james Y. Newton

A new Government control pol
icy tieing wages to the cost OF
living was being considered today
|by Economic Stabilizer Eric A.
Johnston.
The policy was recommended
unanimously by the 18-member
Wage Sterilization Board. But it
must have Mr.. Johnston's ap-
lproval before it takes effect and
there was no immediate indica-
ton as to what he would do.
Permanent Approval Given.
The WSB gave permanent ap-
Iproval to contracts covering more
than million workers containing
clauses calling for adjustment of
wages as living costs f1uctuate. It
went further in recommending
similar devices for the millions of
workers not covered by such con-
tracts where unions and employ
ers can agree on them.
Some Government experts have
predicted the new watered- down
price control law will lead to price
increases and hence higher living
costs. The new suggested policy
would mean that workers could
receive wage boosts to compensate
for any future rises in living costs.
Ford, Chrysler Ask Increases.
And the pressure for price in
creaseS already was on. Ford and
'Chrysler yesterday formally asked
the Office of Price Sterilization
for permission to boost automo-
bile prices up to more than 10 per
cent. The petition, however, was
the result of cost increases in
Cured by the manufacturers be-
fore the new law was passed.
But Ford and Chrysler did use
a provision of the new law as the
basis for their request. OPS Of
f1cials had the petition under
study and refused to predict how
soon they would make a decision.
Ford Motor Co. requested a 9.34
per cent increase on Fords, 4.85
per cent on the Mercury, 9.4 per
cent on the Lincoln and 1894
per cent on the Lincoln Cosmo-
politan.
The Chrysler Corp. proposed a
9,67 per cent increase on Plym-
Iouths, 9.18 per cent on Chryslers,
9.52 per cent on Dodges and 9.74
per cent on De Sotos.
ChrySler did not ask for a price
change on a new line of IL models
it brought out last June. OPS
fixed a ceiling price on these
June 25.
EscalatOr Clauses Approved.
Before yesterdays much broader
action, the Wage Board had given
temporary approval to labor con-
tracts containing so-called cost
OF living wage escalator clauses.
WSB Chairman George w. Tay-
lor described the proposal as fair
and certainly not infiationary."
He explained that if prices are
stabilized there could be no ad-
vance in wage rates. On the other
hand, there would be advances if
prices continue to rise.
Any new contracts providing
escalator clauses would have to
receive WSB approval. And the
board provided ways for adjust
ment of wages in cases where
employers and unions do not want
such @clauses.
Textile Decision Cited.
The board yesterday offered Mr..
Johnston a sort of exhibit A" in
the form of a decision based on its
proposed new policy in the North
Iern coCton-rayon textile case. The
ICIO Textile Workers had nego-
tiated new agreement with the
industry for a 7l2 per cent wage
increase for more than 100000
employees.
Emil Rieve, head OF the union
and a member of the board, an
nounced that the board was ready
to approve a cost living boost
of 6l2 per cent. amounting to
about 8 cents an hour, but side
tracked the So-called fringe issues
such as health and welfare in
ISurance.
| The 6h2 per cent represented
about the amount of the pay ad-
vances received by about 10000
New England workers who have
contracts with escalator clauses
bfore the wage freeze.