Evening star., 1955-09-01
New Contract
Settles Strike
Al ChrysIer
Pact Is Modelled
After Ford and
GM Agreements

DETROIT, Sept. / R.-
Chrysler Corp. and the CIo
United Auto Workers Union,
reached a contract settlement
today. six hours after wide
spread strikes hit Chrysler
plants in six States.
The JAW Immediately sent
out back-to-work orders to all
union locals. There were indi-
cations. however. that work
descriptions among Chrysler's
$4,000 employees would mar pro-
duction throughout the day.
The settlement was modelled
closely after Ford and General
Motors agreements reached early
in June. 1t completed the lineup
Of the auto industry's big
Three" companies in revolu-
tionary. new. lay-of pay plans.
Lay-Off Pay Guarantee
Like the Ford and GIN plans,
the Chrysler agreement will
guarantee laid off workers go to
IS per cent of regular take-home
pay for up to 26 weeks Of idle
ness.
It also provides wage increases
of 6 cents an hour to all en-
ployes for each of the three years
Of the contract. and up to SO
cents Immediately for some
workers in skilled classifications.
Also included in the new
agreement were clauses to:
!. Increase pension benefits
up to q maximum of about $3.50
q month. including social Sc
curity.
2. Eliminate wage differen-
tials between the Detroit area.
biggest concentration of ChryslerI
workers, and other sections of
the country. Chrysler said itI
thus became the first big auto
company to do this. Chryslerl
has plants in Michigan. Indiana,
California, Delaware, Kansas and
Georgia.
3. Improve hospital-medicali
and insurance coverage.
Section Liberalized n
4. Liberalize non-econofnic
portions of the contract. which
among other things gives the
union for the first time the right
to strike over production STAN
dards.
A dispute over the effective
dates OF the layoff pay plan and
other economic benefits snagged
the settlement beyond the mid
night strike deadline and until
dawn. -
This is how that dispute was
settled:
Chrysler viii begin paying in-i
to a layof plan trust fund as Of
today. three months after Ford
and General Motors started their
contributions. But benefits will
become available next June IL
the same as at Ford and GIN.
The first of the scent AN
nual improvement factor" raises
will be payable as Of today. the
second next April and thel
third on June /, 1857.
The company had asked that
all economic benefits become ef-l
fectiye as of the midnight ex-
piration of the old contract. The
union had insisted on making
them retroactive to last June /
to put Chrysler workers on a par
with Ford and GIN employees.
Contract to Expire in 1858
The new contract will expire
June /, 1858. This will bring the
unions contract negotiations to-
q head at all big Three" COM
panies at virtually the same
time.
Neither Chrysler nor the VIVA
would put a specific price tag on
the settlement. But Robert W.
Conder. Chrysler vice president.
said 1t would be in proportion
with the Ford agreement, which
was estimated to cost $55 million
for each of the next three years.
The Ford and GIN settlements
were labeled as 20-cent an hour
packages" by the UAW.
All three companies had an
average hourly wage OF about
$2.10 when the current round
of negotiations began.
About 5000 Chrysler office
workers who are UAW members
will be covered by a separate
layof plan similar to the one
which will cover 131. 900 ChryslerI
,a~adt,ntin,, xunrEarc