Evening star., 1955-07-01
Union Side

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Union Side
The union employees side IN.
the dispute between them and
the Capital Transit Co. briefly
stated as to the main points. is
this:
/. The employees are entitled
to pay raises and other benefits.
2. The company can afford to
pay for them.
3. The company has failed
actually to engage in collective
bargaining.
4. The company Is obliged to
arbitrate, but has refused.
The present top pay scale for
bus and streetcar operators Is
$l.90. The union is asking an
increase Of IS cents an hour,
plus special adjustments for cer-s
tain employees In incorporating
departments.
Room for Bargaining
The union-Division $50 of
the Arnalgamated Association Of
Street. Electric Railway and Mo-
tor Coach Employees tAFLl--ini
asking for a SAILS rate presume
ably was including some room
for bargaining. Strategy would
prevent such an admission. how
ever. Also presumably. the union
would expect a settlement above
the So level.
One argument for wage in
creases Is based on the general
level for the industry. The union
gives these wage rates in other
cities:
Bost0nAn agreement has just
been reached for a $2.07 wage
rate, which goes to $2.12 for all
of next year. In addition, there
is a cost of living escaltor clause
in the contract.
Pittsburgh-The contract call
ing for $2.0l expired May /. Ne
gotiations are still under way.
Probably q settlement Is waiting
on the outcome of the steel wage
dispute.
Minneapolis-St. Paui-The rate
is $2.01 The contract expires
December 81.
Newark, N. 1.-The rate is 81,
expiring January 81, 1855.
Detroit--The rate Is $i.e8h,
expiring September /.
Chicago-The rate Is 81. The
contract has expired. Employees
are asking for more.
The facilities in Boston, Chi
cago and Detroit are publicly
owned. In the other cities pri-
vately owned.
In addition to basing their
claims on the wage level pre-
vailing In the industry, the union
usually cites changes in the cost
of living and in the general wage
level OF the community. Prices
have been fairly steady in re-
cent years, however. In June.
1852, when the current contract
was made, the consumers price
- 80 - p.
index stood at 1854. II "a now
i14.2.
Cites q. s. Pay Raise
The union maintains its menn-
bers have a right to share In the
general increase of the living
standard. It points to the 7.5
per cent pay increase given Fed
eral workers. Applied to the
present union scale, that would
mean a wage raise of 14l2 cents.
Can the company afford to pay
the increased costs?
The union says yes. It gives
the company's own figures. The
company's last annual report to
stockholders put 1854 net earn
ings at $685., 1923. In addition, it
charged against 1854 earnings q
reserve cf $631. .258 for 1855 va
cations.
The section of the Internal
Revenue Act of 1854 under
which This reserve was set up
has been repealed. Reduce the
s631 .258 by a So per cent tax
and you have left $303, ,004. Add
this to the net income and you
have $941 ,332. Then add $l7l.-
600 the company expects as an
income tax refund and the total
is s1,112.a32.
No Bonded Debt
In addition, the fact is cited
that the company has no bonded
debt. The union gave figures for
the debt in five Of the cities
where it cited wage figures. The
amounts range from $4,007 800
In Newark to $13o,16o.595 IN
Boston
Louis e. Wolfson Is quoted as
having said, in the course OF
his Montgomery Ward cam
paign, that he had placed Capi-
tai Transit finances "in an enWl-
able position"
The company says the union
demands would cost ST. million
a wear. The union replies 1t does
not know how this figure was
reached and 1t doubts II the
company can explain. 80
walter J. Bierwagen. union
nresident, said: They've par
iaved costs one on top OF
another. In 1852 they said tne 7 e
union package would cost 81 slo =
million. which was silly. Ine
nayroll now is 81 million less
than in 1949."
On the question Of bargain
ing. according to the union. the
company has merely said it can't
afford increases and has mace
-. nit.A FnYNY1QYV