Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-20
By Norman Walker
Asseeieisd Press Labes Reporter

William Enright went to work for
the HORNED Packing Co. In Austin.
Mimi. Is years ago. In those days
he. like almost every other worker
In any industry. never knew when
he'd be laid OF.
"It was impossible to make def
mite plans for the future" he re-
calls.
But a year later, HORNED put into
effect a Guaranteed Annual Wage
plan that assures workers a Spe-
cific income in a given year. Now
says Mr.. Enright:
1.-THE fact that today 81 per cent
of the homes in Austin are owned
by their occupants is undoubtedly
one of the direct results of the an
nual wage plan. The employee can
safely go into debt because he
knows his work and pay will be
steady. The same is true in buying
cars. home appliances, other things.
Because the workers employment
has been stabilized, merchants obvi-
ously regard him as good credit
risk"
Mr.. Enright later was elected an
Austin alderman. He was instru-
mental in starting an annual wage
plan for city employees. Naturally,
he feels the idea is all to the good.
Reuther Moves In
Now q man he may never have
met is betting he's right. That man
Is Walter p Reuther, energetic head
Of the CLIO and United Auto Workers.
When Mr. Reuther and the JAW
sit down shortly to bargain for new
contracts with the automobile in
dustry, a Guaranteed Annual Wage
(GAW) is their prime target for a
half million workers.
Americans will be hearing lot
about CAV before the spring Is over.
One Of every seven persons in the
United States has a direct or in
direct stake in the auto industry.
If the auto workers win CAV, other
big unions are ready to push similar
demands. Observers believe GAW
may affect the Nations economy
far more than such major labor
management issues as wages and
pensions.
Hornets Experience
What does the HORNED Co. think
about CAV. based on its expert
ence? Would 1t work elsewhere2
Fayette Sherman. personnel di-
rector. says:
THE only guarantee we know Is
the ability of management to man
age, coupled with the willingness of
workers to work. If either fails,
the guarantee fails"
There was lot of trial and error.
Mr.. Sherman says, in developing a
plan which would assure a worker
of So steady pay checks and assure
the company of steady supply OF
livestock, with the fewest possible
slack seasons. HORNED officials see
1t as a plan in which the cloth was
cut to fit q particular company in
q particular industry. They are not
willing to guess whether CAV will
work in industry in general, or even
in any other specific company.
Officially, at least for public con-
sumption. neither is auto industry
management. Without exception.
they are not commenting in advance 1,
Of negotiations.
Detroit's View
But unoficially, their view is:
CAV may be fine for William En-
right and Hormers 9,400 other en-
ployes. 1t may be fine, too. at the
Proctor & Gamble Soap Co. in Gin
cinnati, where q guaranteed wage
has been in effect since 1923; and
at Nunn-Bush Shoe Co. in Milwau-
kee, which has had it since 1885.
But. ......
Here's one of the managerial staff
Of a large auto maker talking:
CAV would create an artificial
shortage of cars. Unlike soap, shoes
and meat, the auto companies can
not gauge their production over a
years time Autos involve an up
and-down selling season. You can't
tell customer when to buy car.
CAV would force regulated produc-
ton, which would mean in certain
key selling periods a lack of cars.
Also. where would we get the stor-
age space to stack all the cars? To
store car for more than 80 days
is harmful to the vehicle. After 80
days in storage you'd have to tune
up the engine again"
The aspect Of CAV that worries
business most is cost. Employers fear
they might be stuck for heavy pay
ments at times when they could
least afford them. They say indivi-
dual employers can't control over
all economic conditions.
lobor's View
Mr.. Reuther's union has an answer
for this. 1t says its plan would re-
Quire no employer to make jobless
payments beyond fixed liability.
The employer would lay aside fixed
amounts in a CAV fund. Whenever
that ran out he would be obligated
to pay no more.
However, employers fear unions
never would be satisfied. with the