Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-03-19
Union Drive Seen
For Productivity:
Wages Won by Rails
By jones Y. Newton

A widespread drive by labor
unions for so-called "produc-
tivity" wage increases was ex-
pected today as a result of the
award of an extra four cents ar
hour to the Nations railroad
workers.
w. P. Kennedy, president
the Brotherhood of Railroad
Trainmen, was among those
who predicted the productivity
principle Of obtaining pay raises
would spread to other indus
tries. 1t already had been estab-
lished in the automobile indus
try. That Is the big reason why
the 1.3 million railroad employees
got it.
The increase is given the
workers as a share in the in
creased financial return to in
dustry resulting from improved
and more efficient operating
methods. It does not necessarily
reflect greater worker effort.
Il think the workers in other
industries will get the same rec
ognition," Mr.. Kennedy said.
Our proceedings were followed
by other unions with keen in
terest."
Special Referee Acts.
The rail employees who will
receive the extra four cents an
hour-an estimated 500 a year
for each-are members of four
operating" brotherhoodS, those
who actually run the trains, and
IS incorporating" unions. The
great majority of all rail workers
will share in it.
They were granted the in
crease by a special referee ap-
pointed last year by President
Truman. He was DR.. Paul N.
Guthrie, professor of economics
at the University of North Caro-
lima.
The award was expected to
cost the railroads about $3.50
million a year. DR.. Guthrie made
the raise retroactive to last De-
cember /, which will add an
other $35 million to operating
costs. In apparent anticipation
of the ruling, the carriers al
ready have asked the Interstate
Commerce Commission to make
permanent a IS per cent freight
rate increase which had been
allowed them on an interim
basis.
DR.. Guthrie was appointed
under terms of contracts signed
by the railroads and the unions
in 1851.
The Wage Sterilization Board,
which was abolished last month
by President Eisenhower, never
formally adopted a policy pro-
viding for productivity" in
creases, but it approved such in
creaSeS in the auto industry and
In other scattered cases.
Contracts End in October.
DR.. Guthrie did not grant the
rail workers a productivity" in
crease of four cents an hour on
an annual basis, as is provided
in auto industry contracts. Nor
did he establish the policy of
granting the increase annually
in railroads. He made it clear
that his award was good for
only one round.
But the present rail labor con-
tracts expire next October |.
The unions have made it clear
they will demand an annual in
crease based on the expected
increase of productivity of the
industry. And the demand prob
ably will be for considerably
more than four cents a year.
The CLIO United Automobile
Workers, although their con-
tracts have more than two years
to run, already are talking to
manufacturers about increasing
their annual wage raise.
The principle now has been
established" Mr.. Kennedy told
reporters. "of giving the worker
recognition for the part he plays
in the increased productivity of
the railroad industry as a whole.
That this productivity increase
is constant is proved by records
of the Labor Department and
the records of the railroads
themselves.