Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-25
Both Sides See
Long andcosf|y
Auto Strike
BY WILLIAM HINES
star. stan Writss


gradients for q long and costly
strike in the automobile indus
try were being stockpiled by
both sides In this motor capital
today.
On the side Of labor there
was a package of almost I'M
precedented demands---and a
strike fund Of almost $50 mil
lion TO back them UP.
On the side OF management.
there was an increasingly evi-
dent attitude Of resistance 10
what more than one motor
maker has termed JAW Pres
ident Walter p. Reuther's Eek
cessive." "unrealistic" and $50
cialistic" contract package for
1858.
The strike. II IL comes at the
expiration Of General Motors,
Ford and Chrysler contracts at
the end Of May. bids fair TO be
one Of the worst since World
War II. Never in the last
decade has there been In evil
dence so early more bitterness
between labor and manage
ment. And never-according
to veteran observers OF the
labor scene-has there been
such elaborate preparation by
the JAW for a strike.
There has not been a major
auto industry stoppage since
mid-i950. when Chrysler was
struck for l08 days.
Convention Drafts Demands
Methodically and aim o. {
without emotion this week.
5000 delegates representing
more than 4 million members
Of 1900 JAW locals met in q
special collective BARGAINING
convention here. With Just
enough controversy to make
convincing the unions conten-
ton that the meeting was DEM
ocratically run. the delegates
hammered out the program for
the years bargaining.
The JAWS chief demands:
l.. A cut OF excessive" profits
which Mr.. Reuther says are en-
joyed by the leading segments
OF the industry. Excessive"
would be everything over 10
per cent net before taxes based
on capital investment. The cut
suggested for the workers
would be one-fourth OF this
amount sum calculated At
about $500 a year for each
General Motors employe.
2. Improvements" in all ma.
tor aspects OF present con-
tracts based on what Mr.. Reu-
Their contends Is ever-increas-
ing productivity" in the in
dustry.
). An augmentation OF the
so-called supplementary un-
employment BENEFITS" (SUB)
so as to give workers with SEN
iority 80 per cen. OF their nor
NAL take-home pay for a full
year In times Of extended lay.
offs SUB nov provides q max.
mum Of IS per cent for the
nrst four weeks and so per
cent for the next % weeks. or
slightly less than five-eighths
OF normal take-home pay for
half a year.
Woild Extend Contract
The industry's bellwether
General Motors. has countered
with an offer simply to extend
the present three-year contract
Tor another two years. This.
according 10 GIN President
Harlow curtice. would give q
third Of q million GIN workers
an average raise Of II cents an
hour over the two-year period.
JAW has rejected this pro-
posal out Of hand. and yester-
day approved the creation OF
a s50-million strike fund de-
signed to bring the union TO
the bargaining table two
months hence in a position Of
strength.
In closing the unions three
day convention yesterday, Mr..
Reuther dashed out at the
manufacturers In what many
observers took to be q thinly
yelled threat Of labor trouble.
Warning that the union had no
choice but to fight for its rights.
Mr.. Reuther charged the motor
makers with bad faith and with
heating UP the cold war" be-
fore bargaining even begins.
Denounces Ford
The JAW president was
especially vitriolic in his de-
nunciation Of the Ford Motor
Co.. whose board chairman.
Ernest r. Breech. scornfully re-
iected the unions demands In
a speech at Nashville. Tenn,
Thursday night. Mr.. Reuther.
a former Ford tool maker.
whipped the convention dele
gates into an emotional lather
with his description OF the old
days at Ford under Harry
Bennett and his gangsters.
1t was clear from Mr.. Reu-
theirs remarks that he did not
think the Nations second
biggest automobile company
had progressed far beyond the
days Of Mr.. Bennett. a leader Of
the strong-arm. anti-labor fac
ton in early New Deal days.
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