Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-08-13
Auto Labor History Made
BY Vote to Accept Pay Cut
BY Relmon NORM
Assoeioisd Press ssoff Writer

By Relmon MORN
Assoeiofsd Press sioff Writer
SOUTH BEND. Ind, Aug. Is
Robert Miner thinks he car
afford to put in the flower beds
now.
He stood on the front porch
today. pointed to the place for
them, and said, there are a LOT
of things we want to do around
the place. but of course"
Let the word money" go un-
spoken.
Robert Milner is a Studebaker
automobile worker.
He is one of the 5,3O0-odd
employees who voted yesterday
to accept a cut in his hourly
wages. Along with more than
1000 other workers he went to a
high school football stadium in
South Bend. heard the argu-
ments on both sides, and then
made his decision.
1t was a unique event in the
history Of the automobile in
dustry.
People in South Bend like to
point out that the first sit-down
strike took place here more than
20 years ago. They say the
result yesterday also sets a
precedent. Local 5 of the CLIO
United Auto Workers agreed by
an overwhelming 81 vote to ac-
cept the wage reductions to put
Studebaker in a better COMPETE
tive position by lowering the pro-
duction costs of the cars.
The company has reported a
loss of nearly SO million for the
first six. months of 1854. Its
sales dropped from $349 million
in the first half Of last year to
1921 million during the same
period this year.
It's wage scales. an executive
said, were more than 80 cents
an hour above the levels for the
rest of the industry. Officials
told the union the company
could no longer pay such wages
and remain in existence.
This pinch began to be felt
some nine months ago. This is
what it meant to Robert Miner.
He is %, married. with two
small children-a son, Wayne, 4,
and d daughter, Jan. Is months.
When he got out of the Navy
in 1916 he went to work imme-
diately in the Studebaker plant.
He is an Indiana farm boy
accustomed to working with his
hands, bright, and familiar with
long hours. He went up rapidly
in the company. At his peak,
as a metal finisher, his take
home pay was $3.50 month.
A year later he married the
girl he has known since his high
school days.
They built a five-room house
and bought new car every year.
It was a Studebaker. they also
bought a television set, an ex-
pensive refrigerator and good
furnishings for their home.
Robert Miner went in debt.
but he didn't mind. There were
no clouds on the horizon that he
couldn't brush away with his
own hands. So it looked at the
time.
Then the change came.
Things Begin to Happen.
In the big picture" the COM
pany picture. these things hap
pened: y
/. The automobile market
changed to a buyers market"
Cars were available and people
began shopping for bargains.
2. A fierce, claw-and-fang
sales war opened between Stude-
bakers principal competitors.
The company was caught in the
middle.
8. Defense contracts leveled
off so that Government millions
no longer offset operational
costs. The cost plus" contracts,
which tended to minimize the
Importance of production costs,
began to disappear.
And this is what happened to
Robert Miner.
Almost overnight he found
himself working an average of
eight days a month. His take
home pay dropped to $3.50 q
month.
. In company reorganization he
was moved out of the highly paid
metal flnishers category to a
lower one.
Even with SGT a week in un-
employment compensation, he
began going into debt.
In the good years." he said,
I'VE had sense enough to put a
little money away. But my say
ings are all gone now"
Bought Cheaper Car.
The payments on the mort
gage on his home, plus the plain
monthly bills for groceries, take
up his total earned income and
his unemployment compensation.
He sold his car and bought an
8-year-old car so that he can
get to work. He said that neither
he nor his wife have bought any
faZazlzdZSlEEzIczzzlSa zSEZSkB4
esIABtishEp 1919 81
EI RTTCHTE |8