Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-12
Studebaker Workers
To Vote on Wage
Cut Again Today
By The As.oeiotsd Press

SOUTH BEND, md, Aug. IL.
Thousands of Studebaker auto.
motive employees prepared to vote
today on an issue Of immense
potential importance to the
3 whole Of American industry
} whether to accept a cut In pay
$50 that the company can cut
its costs.
Il They have been summoned to
q meeting on q high school foot
ball field in South Bend this
afternoon.
g Studebaker officials have told
the local union of the CIo United
$ Auto Workers that the wage adj
tustments are necessary for
competitive reasons.
Union officers who worked out
the proposals in lengthy negotia-
tons with the company have
urged the membership to accept.
The reductions would be ef-
fective by elimination Of piece
work and incentive pay.
The cuts amount to an average
IA per cent of the payroll. A
union official estimated that the
reductions would range from a
minimum of $12 to a maximum
of $40 per week for the workers.
The company contends it is
paying an average hourly wage
of $3.50. compared with $2.03
by its principal competitors.
Studebaker reported q net loss
of nearly SO million for the first
six months of this year.
Top executives last April ac-
cepted salary reductions ranging
from 20 to 30 per cent on all
salaries above $4,000 year.
Today's balloting is the sec
ond vote on the proposal for pay
reductions of the other employees.
Rejected Last Week.
Nearly 5000 members of the
union a week ago rejected the
proposed agreement. Union OFF,
Gals said the vote was very
close" They said. however, that
the attendance at the original
meeting represented less than
half the unions present total
membership of 10.500.S
Two days later, the company
gave notice that it would end
its present contract with the
union in 60 days.
Louis j. Horvath, president Of
the local, then announced a Sec
ond meeting would be held to
reconsider the proposal. He said
the decision to take another vote
was made unanimously by the
20-man executive board. Mr..
Horvath said the board had re-.
ceived a number of petitions ask-f
ing to reconsider. scr =
He estimated that NEARLY B.
600 members of the union woNlG
attend today's meeting. Is d
/ To Explain Contract. n
A full explanation Of the pro-
posed new contract has been
prepared. Mr.. Horvath said. Ar
guments on both sides are ex-
pected and when they are fin
iShed a secret ballot will be TAX
en-, supervised by firm of GER
titled public accountants.
South Bend was one big de-
batting grounds today as the hour
Of the meeting approached.
The South Bend Tribune last
night devoted an hours tele-
vision program to a detailed dis
cussion of the issues.
Paul G. Hoffman, chairman of
the board; Harold s. Vance,
president, and Paul Clark, vice
president in charge of industrial
relations, answered more than
400 questions sent In by the
Studebaker employees.
Company officials assert that
the reduction in hourly rates will
not mean a reduction in total
monthly take-home pay.
The Studebaker plant Is idle
now for the 18th week since the
beginning Of the year. In some
weeks it was operating only four
days.
Mr.. Hoffman and Mr.. Vance
repeatedly emphasized that lower
production costs. permitting
lower prices for the cars. will re-
suit in more steady work for the
men.