Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-11-25

NoAAAPo4SA. ENCoAoJAIlS pleas oil
ton, Lockheed has refused to
bulge from its opposition to
the union shop.
As a result. the Information
al Association of Machinists
almost certainly will strike the
big defense contractor at mid
night Tuesday, and Lockheed
stands to lose millions of dol
lars worth of Government
orders.
Many elements distinguish
the steel episode from the
Lockheed case, but the SINH
larities may revive debate over
whether the administration is
"anti-buSiness."
Exerted Pressure
President Kennedy last
spring modified public opinion
and the power of Government
to force steel industry leaders
to cancel a $6-a-ton price in
crease. He directed the De-
tense Department to switch
some steel procurement away
from companies raising prices,
and exerted pressure in other
ways to break the industry
front.
Although the President won
the steel fight, the administra-
ton has had to defend itself
ever since against critics who
charge that the episode showed
an anti-busineSs bias. Some
Government officials and many
outsiders maintain that the
steel case weakened business
confidence and so played a
role in the stock market break
last May and the economy's
general showdown.
Tax cuts for business and
other friendly gestures by the
administration have improved
the Presidents relations with
industry. But now the Lock-
heed case may build up ten
sion anew.
Vital to Security
The administration took q
special interest in the aero
space industry's labor negotia-
tons from the start, because
the industry is essential to ma
tional security and because the
Government is the best Gus
toner.
AS the industry's biggest Gus
toner, the Government indi-
rectly pays the labor bill. The
International Association Of
Machinists and the United
Auto Workers made much of
this point in arguing that the
Government should play q role
in negotiations.
The unions also said the
Government has a special re-
Sponsibility to make sure that
aerospace workers are treated
fairly, because they have given
up some of their freedom to
strike defense industries.
Labor negotiations made lit
tie progress during the spring
and early summer. Contracts
expired. but the unions agreed
to postpone strikes and the
President in July appointed a
special board to sift the issues
and recommend settlement
terms.
Boards Report
The board was headed by DR..
George w. Taylor of the Uni
versity Of Pennsylvania, a noted
labor mediator and arbitrator
and an advocate Of the union
shop.
Reporting in September, the
board recommended a package
Of wage increases and other
benefits, plus votes on the
union shop.
The unions complained that
the economic package was in
adequate, but agreed to accept
the boards report as the frame
work for contracts. Leading
companies indicated they would
accept the recommendations on
wages and benefits as a basis
for settlement, but baked at
the union shop.
Under terms Of the boards
report. union shops would be
established If employees of a.
company voted in favor by Q
two-thirds majority. A union
shop requires all eligible en-
ployes to join the recognized
union within specified period.
normally 80 days after hiring.
Anyone who fails to join and
remain a member is subject to
discharge.
Mr.. Kennedy Endorsed the
Taylor boards recommended
tions. He said the unions had
accepted, as part Of the total
: package, "a financial settle
ment which is not particularly
generous.
AS for the union shop, the
President noted at a Septem-