Evening star., 1953-06-21
Pension Dispute
May Result in
Transit Strike
Mediator Assigned
To Negotiation
Session Tuesday
By Froncis P Douolos

its union employees are engaged
In another dispute which Is fol.
lowing pattern that had Lee
to strikes in the past.
A strike on July is a distinct
possibility.
The dispute this time is ovel
pensions. The labor contrac
setting rates Of pay anc
working conditions - has tive
more years to run. The pension
contract, last renewed as Of July
/. 1851. expires June 80.
Negotiations DesuItOry.
Negotiations have been under
way to work out q new contract
Another meeting will be held
Tuesday morning. D. Yates Heaf.
ner Of the Mediation and Con-
ciliation Service has been as
signed to attend. without try
ing to assess blame, it can be said
that negotiations so far have
been conducted in a rather
desultory manner.
A meeting of union members
IS scheduled for next Friday. II
no settlement is in sight the
members probably will be asked
to authorize a strike. The union
Is Division $50 of the ,AFI
Amalgamated Association ol
Street. Electric Railway and
Motor Coach Employees o1
America.
Bernard Cushman, attorney
with the Labor Bureau Of the
Middle West, which represents
the union, said the organization
will offer to submit differences
to arbitration. That is standard
union policy, he said.
Company Opposes Arbitration.
E. Cleveland Giddings, Capital
Transit vice president. said the
company is opposed to arbitra.
tion under such circumstances
He said arbitration clauses in
contracts apply to differences
arising under the contracts and
not to new contracts. Agree
ments on new contracts. he said
should be reached at the bar
gaining table.
The company'S pension plan
now provides a basic pension OF
$40 a month on retirement at
IS after Is years of employment.
The employe contributes $500
a month and the company 11.20
An employe comes under the
plan after two years service.
The unions proposal is this:
The annual pension should
be ~ per cent of the earnings
in the best year Of the last i've,
multiplied by the number of
years Of employment. For the
years Of employment after July
of this year it should be
figured on a basis Of 11s per
cent Of yearly earnings.
There shall be a minimum of
$75 month for 20 years service
on retirement at 65. For less
than 20 years service the mini
mum would be reduced proper
tionately. An employe may re-
tire voluntarily at SIS after Is
years Of service.
An employe would pay in !
per cent of his earnings to the
pension fund. The company
would pay in an amount suf.
ficient to make the plan actu.
arilly sound.
Average Pay Is $4,000.
The company says the average
pay Of bus and trolley operators
is $4,000 a year.
On the basis of such a wage
q pension figured at 1A per cent
and IS years would be $1O4 8
month. The 3 per cent contri-
button would be about SO 8
month.
The company said it's con.
tribution would have to be about
8 per cent of the employees wage
which would be about $26.60 q
month.
The company said the extra
cost would be $1.006, 900 a year
It now has pending before the
Public Utilities Commission ar
application for higher fares. II
said If the 81 million plus should
be added to operating costs II
would have to go right back tc
the commission for still another
fare increase.
Union Wants Interest Paid.
Now, if a man leaves the com
pany before retirement, he re-
ceives the money he has paid tC
the pension fund. The union ask!
that in the future he shall re-
ceive that sum, plus 2 per cent
Also, the union wants a provi'
sion that if an employe ha.
worked for 10 years, he ma!
leave the company without draw
ing his contributions and then
perhaps after working elsewhere
at 65 receive the pension du'
him.
More liberal disability provi
SionS also are asked by the union
At present. after IS years EN-
ployment. a worker permanent!
and totally disabled so that h,
cannot accept employment, i
entitled to $50 a month. An ad
ditiional 81 is added for eacl
year Of employment over Is, Will
a maximum Of $40.
Minimum of SIS Sought.
The union asks a minimum O.
$75 a month payable for diSabil
ity arising from the employee
occupation after five years ant
for non-occupational diSabilit!
after 10 years employment. ThI
payments would be made if .
man is unable to perform hi