Evening star., 1957-08-23
Reuther AssaiIs|
GINS Rejection
Of Bid |

WPnCe IuI DIQ|
DETROIT, Aug. % tR.-I
President Harlow Curtice of
General Motors and the Auto
Workers Walter Reuther were
squared of in verbal battle to-
day on imitation remedies.
GIN, replying to the unions
proposal for an average 500
cut on 1858 car models, has
counter-proposed a two-year
extension Of its union contract
that expires next spring.
Mr.. Reuther, commenting on
the counter-move, accused Gen.
eral Motors of shocking dis
regard" of public welfare. He
also charged the company with |
intending to "go on short
changing American consumers
through higher prices"
The Curtice- -Reuther ex-
change came yesterday. First. |
Mr.. Curtice made his proposal
in a letter to Mr.. Reuther de- i
scribing it as a constructive"
step against imitation. The
United Auto Workers president
followed UP in q public state
ment.
Company Denounced
In the statement Mr.. Reu- !
ther interpreted the Curtice
letter as an arbitrary rejec-
ton" of the unions price cut |
proposal. He then denounced
GIN. declaring the company
''evades basic issues"
Last week Mr.. Reuther pro-
posed to the auto industry big
three of GIN, Chrysler and Ford
that they cut 1858 car prices by
an average of 500 a car. In
return he said the union would
be willing to adjust next years
contract demands.
Mr.. Reuther has not indi-
Gated what concessions the
union might offer. The UAW
has said it will seek higher
wages and q shorter work week
next year.
Present three-year contracts
In the auto industry expire next
spring. The auto union has
said it will seek a substantial 4
wage increase in new contracts.
GIN has been the first to 4
reply to the Union.
Effect Of Extension
An extension of contracts, as
Mr. Curtice proposed, would
freeze the pay of more than a
million auto factory workers at
present base levels though not
infringing on cost of living I
changes. The auto workers
present average pay is about
$3.50 an hour.
BY coincidence, the Curtice-
Reuther exchange came on the
same day the Government an
nounced that the cost of living
had hit a new peak for the 18th
straight month.
Auto workers. through their
escalator clause contracts, get
as cents an hour pay raise ef- \
fective the week of Septem-
Der l.
The General Motors presi-
dents only specific reference to
the unions car price cut pro-
poSal was a statement that
GINS prices were not properly
the subject Of collective bar
gaining"
Must Be Competitive II
Saying prices must always
be competitive" Mr.. Curtice
said General Motors would give
car buyers the best possible
values consistent with the con-
tinued ability of the business
to make progress for all con-
cerned." He said this is GIN
policy and it will be continued.
Mr.. Reuther. in sharply
worded comment. said GIN had
shown "shortsightedness" to-
ward practical and positive"
proposal from the union.
by it's refusal" Mr.. Reuther
said, "GM has demonstrated a
shocking disregard for the well
fare of the American buying
public and indicates its inten-
ton to go on short-changing
American consumers through
higher prices"
Prices on 1858 model cars will
not be announced until later in
the year. Industry sources have
said they may be higher in view
of increased labor and material
costs.
OttCS ETOHtS
Mr.. Reuther commented on
GINS half-year profits for 1857.
He said the company made a
profit of $48l million. or 81 per
cent of investment. and lis OBJ
viously shedding crocodile tears
when it talks about protecting
the consumer and at the same
time refuses to cut prices of its
products.
Mr.. Curtice, in his contract
extension proposal, told Mr.. I
Reuther that his union Of is
million members could make a
real contribution to the eco
nomic stability in our country"
This" he said, could be
done by announcing a sound
policy regarding 1858 collective
bargaining objectives instead of
publicizing excessive demands
which. if agreed to, could not
fail to feed the fires of infla-
ton"