Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-26
Auto Layoffs
Spur Move 10
Cut Work Week

DETROIT, May 26 (P.-With
unemployment and layoffs con-
tinuing to mount in the auto
industry. the 500-man General
Motors Council of the United
Auto Workers Union today
threw it's support behind drive
for a shorter work week.
On the layoff front, there, were
these developments:
Studebaker-Packard Corp. an
nounced yesterday it was shut
ting down It's Studebaker assem-
bly, operations at South Bend,
Ind, for a week, beginning Mon
day. 1t said 5000 of 5000 work.
ers would be made idle.
Chrysler Corp. said 1880 en-
ployes would work only Monday
and Tuesday next week. The
shutdowns will affect all Plym-
outh plants and most of the
firms body-making plants. All
the latter are in the Detroit area.
Only yesterday, the Michigan
Employment Security Commits
sion reported the States unem-
ployed stood at 100000, with
$4,000 of them in ALTERNATING
Detroit, and predicted the idle
would average 100000 for the
remainder of the year.
Unanimous Vote
The JAWS GIN Council voted
unanimously in Detroit yeSter-
day for "a substantial reduction
in the work week with full 40
hours pay" to end what it de-
scribed as the Notwithstanding
short work weeks"
Spokesman for the council
said the resolution won unani-
nous Endorsement. "even if it
more layoffs." Walter P.
Reuther. JAW president. sup
ported the resolution at a news
conference.
Neither the council nor Mr..
Reuther spelled out any spe-
cific aims. but the JAW chief
has said repeatedly the union
expects a four-day. 32-hour
week within 10 years.
Mr.. Reuther said yesterday
that effects of automation, atomic
power and other chronological
advances will determine how
short a week the JAW will ask.
Under existing contracts, moth
ing can be done until 1858. Cur
rent agreements between the
JAW and auto makers do not
expire until then. The average
wage of auto workers now
Is around $2.19 under three-year
pacts signed in 1855.
supplemental uHuS
Under those contracts, how
ever, workers laid off after May
2 will become eligible June /
for supplemental unemployment
compensation from company
trust funds in States
which approve or do not object
to payments on top of regular
State unemployment compen-
Sation.
Supplemental benefits will be
limited in weekly duration in
the first year to permit trust
funds to grow. After that they
are designed to give laid-off
workers up to so to IS per cent
of normal take-home pay for
up to 26 weeks.
Harlow H. Curtice, General
Motors president, has suggested
an easing of credit restrictions
by the Federal Reserve Board
as a means of stimulating au-
tomobile sales. Henry Ford II,
president of Ford Motor Co.,
said he wasn't ready yet to say
that was what is needed.
All layoffs thus far have been
attributed to what the COM
panies describe as IAN endeavor
to balance production with the
retail market" Retail dealers
have inventories of around 900,-
900 new cars.
In Washington yesterday. the
Labor Department reported un-
in the auto industry
increased by 5000 to a total of
$4,000 during the week ended
May 10.
The departments Bureau of
Employment Security said a sur
vey in seven States employing
about three-fourths of the indus
try's workers showed new layoffs
Of $4,000 partially offset by re-
call of nearly 1000 workers.