Evening star., 1955-08-27
Rumors Persist
Of Layoff for
Transit Workers
Reports Minimized
By Company Official;
Union Names Five I

Persistent rumors Of impend-
ling layoffs at Capital Transit
Co. added uneasiness today for
personnel of the company whose
business days are numbered.
Transit spokesmen minimized
reports concerning furloughs for
Iemployes, but conceded the firm
win take every feasible step"
to economic. (
Oficials of the transit union
which conducted a 52-day strike
against the transportation COM
Ipany in July and August said
workers are already being fur
|loughed. George E. Odom. finan-
lcial secretary and treasurer, said
these include three men as
signed to a traction grinding
car. used to smooth rails, and
three miscellaneous painters.
The head Of a District Gov
lernment department. reported
that three furloughed Capital
Transit employees had applied for
jobs there.
Orders Reputedly Cancelled
Union officers said the com.
Ipany is canceling orders for re-
placement equipment and said
this means repairs will be made
with parts taken from other roll-
ling equipment.
E. Cleveland Giddings, Capital
Transit vice president, indicated
yesterday that some Of the COM
Ipany's 600 non-union employees
may be furloughed for economy
reasons. He pointed out that
Jail Of them were kept on the
payrolls for the first month Of
the strike but we're furloughed
August /.
Some of these workers have
mot been recalled.
Economies will have to be
made" said Mr.. Giddings. He
declined. however. to state how
many or when the workers will
be laid of.
Meanwhile, the nonunioh
employees are raising questions
about their equity in a company
pension fund after Capital Tran.
sit surrenders its franchise next
August II under terms of the
new act Of Congress. Z
Mr.. Giddings said everyone
lpensioned before August IA.
1855, will be taken care Of" He
said the trustees undoubtedly
will buy group annuities to IN
sure continued pension payments
for those who have retired.
The official said employees par
ticipating in the fund who can-
not qualify for pension pay
ments before August IA will re-
ceive refunds covering sums
they have paid in.
The nonunion workers at
Capital Transit have a pension
fund Of SIS million. This is ad-
ministered by the American
Security & Trust Co. Almost
so retired workers now receive
benefits.
Unicn employees have a $4 mil
lion fund which is administered
by the Riggs National Bank.
About 800 retired union employees
now receive pension payments.
Modification Provided
The labor agreement signed
Hast week end BY management
land the union contains provi-
sions which virtually assure con-
tinuity of the the latter fund. It
calls for modification Of the pen
sion plan so the accumulated
money can be transferred "at the
direction of the union" when
Capital Transit steps out Of the
picture.
The company is bound to
execute such legal instruments
as necessary to effectuate the
transfer of the fund to Joint ad-
Iministration by the union and
the new operators of the tram
sit system.
However, Capital Transit has
mo obligation or responsibility
on its part to require the pur-
chaser of the franchise to be-
come a party to the plan.
Under terms Of the strike
settling agreement the company
has raised its pension contribu-
tions by IS a month per man.
making its share $500. The
employees increased their ante by
90 5fl MAILING tho fota1 co IN