Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-30
|Curiice Firm
Against JAW
Profit Sharing
ny WILLIAM HINES
star star Writer

StfonH INDICATIONS tnat the
United Auto Workers profit
sharing demand win meet stony
refusal ct the bargaining table
this spring came in testimony
before Q Senate Judiciary SUBJ
committee today.
Harlow II. Curtice. president
LOT the General Motors Corp.
told q group investigating auto
mobile pricing trends that his
giant concern would not at
any time negotiate on ability
to pay"
Mr.. Curtice's unequlvocai
statement Of policy, In the
opinion Of many observers. In
creased the already great possi-
bility Of q lengthy and costly
auto strike this summer. There
has been no widespread strife
In the industry since 1850.
Cites l9lS Action
Mr.. curtice's statement came
In the course Of reading q pre-.
pared statement to the SUBJ
committee headed by Senator
Kefauver. Democrat Of Tennes.
see.
Under questioning by the
subcommittee chairman, Mr..
Curtice said his corporation
walked out on q presidential
fact-f finding commission in
l946 when II became apparent
that the commission wanted TO
look at the company's books as
a means Of arriving at q for
mula in settling q strike then
going on against ON.
Mr.. Curtice explained that
Harry Truman. then President.
said profits and ability 10 pay
were matters for collective bar.
gaining"
Don't you think he was Jus
tined?" Senator Kefauver
asked.
"We would not at any time
negotiate on ability to pay"
Mr.. Curtice replied.
Favors IS Formula
Mr.. Curtice added that he
thought the formula reached at
the bargaining table ii 1913
and still Q part Of automobile
contracts was the proper ap-
proach 10 the wage question.
This formula provides for an
esealator clause on hourly pay
geared TO the cost Of living plus
an improvement factor de-
signed to keep the workers
standard Of living on the rise
at all times.
The United Auto Workers n
insisting on q continuation Of
this formula in it, 1858 collec-
tive bargaining package. Except
for the size Of increases under
this wage plan. there IL consid-
cred to be little possibility Of
union-management disagree
ment on this score.
The chief JAW demand.
however. Is the profit-sharine
plan. which definitely is geared
70 the eompany's ability TO pay.
Mr.. Curtice's views on the
profit-sharing plan specifically
were not ELECTED by question:
ing at this mornings session.
Earlier statements BY the cor
poration executive, however,
leave no room for doubt that
he opposes Il.
In his prepared statement,
Mr.. Curtice said recent rises IN
retail auto prices have been
less than increased production
costs--and that labor cost hikes
have been the biggest single
factor In the increases.
Reuther ContradIcted
This statement sharply con-
tradicted testimony Tuesday
and wednesday BY United
Auto Workers President Wal
ter r. Reuther.
Mr.. Reuther told the COM
mittee that auto pricing was
effectively administered" by
GIN. which controls about half
Americas motorcar output.
Pricing policies. the JAW con-
tended. bear little or no rela-
ton to classic supply-and-
demand considerations.
Mr.. Curtice denied the union
lists assertion. explaining that
prices in his industry are deter
mined by the interaction Of
market demands. competition.
and cost. Concerning admin
istered" pricing. Mr.. Curtice
said the phrase seems to imply
that auto prices ARE In some