Evening star., 1962-05-08
KENNEDY
KENNEDY
=UAW Is Given Same Advice
=As Industry on Woge-Prices
Continued From Page Al

~~-N----~
Mr.. Reuther's contention. as
stated to the convention. that
wages should rise faster than
productivity gains until such
time as there is Q different
balance between wage income
and profits.
M. Reuther took occasion to
amblify this position in q state
ment last night saying he sub
scrfbed to Mr.. Kennedy's eco
nonaic moderation policies. Mr..
Kennedy, who has repeatedly
called for holding wage In
creaSes generally within the
rises in productivity. restated
that principle today.
he recalled addressing the
Chamber Of Commerce and
speaking to the head Of the
American Medical Association
last week. After those meet
ines. he said, "I began to won-
der how I got elected" To his
friendly UAW audience. the
President added: But now I
remember"
Mr.. Kennedy praised the
UAw for its willingness to
assist trade unions in Latin
America. Asia and other parts
Of the world.
%That is q public service Of
the highest quality" he said.
The UAW has committed SIS
million to help build unions
abroad to combat communism.
Public Impact Cited
Mr.. Kennedy pledged his
administration to guard the
welfare Of all citizens.
The free enterprise system
''has served us WELL" he said. |
Yet deliberations which take |
place in industry-deliberations |
that affect wages and prices |
shave q public impact" he
added.
Parties involved in these de-
cisi0ns must be aware Of the |
effects Of the decisions, he said,
and he stressed the need for "a
sense Of public responsibility"
in carrying out their roles.
Mr.. Kennedy said that. while
he was determined to avoid
wage-price controls and be-
liesed In continuing the opera
ton Of free enterprise, the re-
sp0nSibilities Of the Nation to
Itself and its free world part
ners require the Government to
make stability wage price
guides clearly known.
The President said he was
aware some people believed the
Nations President should be
the honorary chairman Of q
great fraternal organization
and confine himself to cere-
m6uial functions"
sbut that isn't what the Con-
stikution says" the President |
added. "And / did not run for
President Of the United States
to tulfin that office in that
way"
On the eve Of Mr.. Kennedy's
speech. UAW President Walter
Reither hurried out q state
mef1t confirming that the
unions collective bargaining
policy conforms with Mr.. Ken
nedy's economic stability goals.
White House Call
It came out one day after
Mr., Reuther appeared to be
bucking against the admins
tration's appeals TO keep pay
raises closely geared to rises in
productivity. The UAW chief
tol0 the convention Sunday |
that wages for workers should
raise faster than gains in pro-
ductivity.
It was reliably reported that
MI, Reuther had been on the
teIsphone TO the White House
before he turned out the state
ment last night.
In the statement, Mr.. Reu-
thef said the unions collec-
tive bargaining policy Is and
always has been to achieve
wage increases and fringe bene-
fits "out Of the higher pro-
ductivity Of the American
economy and not out Of the |
pockets Of consumers through
higher prices"-a phrase sim
liar to the one spoken today
by Mr.. Kennedy.
said the President: "A wage
policy which seeks its gains out
Of the fruits of technology in
stead Of the pockets Of the
consumer is the one basic ap-
prpach that can help every
segment In the economy"
Initiation Warning
Mr.. Kennedy said it is a
simple, inescapable truth that
increases in productivity - in
output per man-hour-"set the
outer limit to our economic
progress"
No financial sleight-of-hand
he said, can raise real wages
ana profits faster than pro-
dlictivity without defeating
their own purpose through in
f1ation.
And "unjustified wage de-
nlands which require price in
grasses are equally as contrary
to the national interest as un-
justified profit demands which