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United Automobile Worker
-
1954-12-01
-
Vol. 17 No. 12
-
INTERNATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT AND AGRICULTURAL IMPL
1964
BER,
éiREM
*~*é
””~”~
Gan
pier
12.
.
17—Ne
_ VOL.
eae
,
ns
io
ns
Pe
er
tt
Be
Guaranteed
5
5
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r
o
f
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n
a
m
e
D
:
g
n
o
m
a
e
rea
Inc
s
‘Pay
age,
—o:
ae
e
ea
De
Of
:
e
Pages Two and Three
ony
ae
aha Members and their families 7
Our warmest and best wishes for. a happy Christmas
os and for your health and well-being—
ae
throughout the coming
year.
&
Fd
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a
fs
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on
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7
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PAGE
A
LEADERSHIP
UNITED
sirauslaba: one
banners
of the
gor
t
oe
x
7%
:
.
ge
48
x
T. Gosser,
President
a
i
t
o
g
e
N
5
5
'
r
o
f
s
d
n
a
m
e
D
y
Ke
Collective Bargaining
Mazey.
ee
Conference. Left to right: Vice Presidents John W.
;
DECEMBER,
Richard
Livingston and
at the
2
WORKER
AUTOMOBILE
UNITED
2
A
Walter
1954—
P. Reuther
and
Program on Which to Build Our Future
A
The proposed demands for 1955 UAW-CIO negotiations submitted by the International Executive Board
were adopted in their entirety by the 1,100 delegates
Union's
the
to
held
Conference
and Collective
Economic
in Detroit, November
(f)
IMPROVED ELIGIBILITY RU LES AND ADMINISTRATIVE
PROVISIONS.1. Liberalized crediting of service to include periods during which
13.
Right of Union to exercise a voice in the investment of pension —
funds to insure investment of a specified proportion of pension
monies, under proper safeguards, in community improvements such
as housing and health facilities.
With the exception of one dissenting vote each
on the retirement security and health security sections,
the demands were adopted umanimously. There were
only three dissenting votes on the Board's report on
automation
where
in this
the
issue.
The complete
shorter
work
week,
covered
outline of the demands
A PLAN
(a)
(b)
_(c)
(d)
(e)
(f)
A.
THAT
WILL:
laid off workers draw guaranteed wage payments.
2. Joint Boards of Administration to have full administrative control to insure
IV.
Fealth
Plan
B.
in cents per hour
improvement factor when necessary to yield
of increase in workers’ living standards.
(a)
Retirement
(b) REMOVAL
(d)
to provide
full payment
30-YEAR
CEILING.
The arbitrary limit of 30 years
on accumulating service credits should be removed so that each
individual worker has a pension based upon length of service up
to retirement.
IMPROVED DISABILITY PENSIONS. Disability pension based
on $5 a month per year of service after 15 years of service, regardless of age. No maximum-and a more liberal definition of
disability.
PERMANENT PENSION RIGHTS. Vested right to pendon at
age 65 for workers with 5 or more years of service who leave
their employment for any reason.
all other in-hospital
for
surgical dnd in-hospital medical services.
Provisions shall be made to give workers the option to enroll
in comprehensive medical care plans by paying the excess in
cost, if any, on a contributory basis.
Improved
Disability Protection.
Improved
protection to enable sick or injured workers
ceptable standard of living for themselves
during periods of disability.
temporary
disability
to maintain an acand their families
Coverage. Extended protection during periods of lay-
ability and other work
the worker’s control.
C.
caused by factors beyond
interruptions
JOINT ADMINISTRATION
An equal voice in the selection of carriers and in ali phases of
administration of the health security program, including review of
contested claims.
V.
Overtime
Time
work
and a half for work
on
as such,
Sunday
vi.
Contract
Vil.
Preferential
on Saturday
triple time
as such, double
for work
time for
on holidays.
Duration
Contracts not to exceed two years if they include escalator and
improvement factor provisions and not to exceed one year if they
do not include both such provisions.
agreed- up sn rate
Security
Surgical-Medical
ser vices
off covered by guaranteed wage payments and for periods of dis- .
of
INCREASED AGE PENSIONS. Normal retirement at 65 based
on $2.50 a month per year of service with a $25 minimum for 5
years of service.
(c)
Care. A program
paid in full. Semi-private room and board,
services and emergency out-patient care.
4, Extended
adequately
amount
e
for active
hospital
3.
WAGE INCREASE
1. Wage increase to bring wage rates up to level they would have
attained on basis of proper implementation of theory behind wage
formula starting with 1948.
adjustment
Security
in-patient
2.
Wages
to limit amount subject to downward
part of future cost-of-living allowances
allowance. would otherwise exceed spe-
security
BASIC PROGRAM OF BENEFITS
1. Hospital Services. Comprehensive
trust fund with provision made for reinsurance.
3.. Floating base provision.
escalation by transfer of
to base rates when total
cified amount.
4, Provision for automatic
of plans.
and retired members and their families.
be financed through a combination of pay-as-you-go and a reserve
actual changes in national productivity.
ADJUSTMENTS IN WAGE FORMULA
1. Transfer to base rates of full amount of cost-of-living float existing as of time of contract expiration.
2. New escalator table reflecting proper relationship between index
points and wage rates, including above adjustments in rates.
effective administration
EMPLOYER PAYMENT FOR HEALTH SECURITY
PROTECTION.
‘Non-contributory financing of Health Security benefits
A.
provide the strongest practical incentives to employers io plan
for regular, full-time, year-round employment for all seniority
workers,
provide regular income sufficient to maintain the living standards
of laid-off workers when employers fail to provide such employment,
protect all workers against short workweeks and all. seniority
workers against layoff,
integrate guarantee payments with unemployment compensation,
be jointly administered with decisions made independently of the
state unemployment compensation agencies,
2. Increase in size of improvement factor to reflect more
more
3. Extension of. pooling arrangements to provide maximum
for workers employed in small companies.
else-
follows:
Guaranteed Annual Employment
l..
ll.
and
PENSION FUNDS.
CF
INVESTMENT
IN
UNION
Bargaining
12 and
VOICE
fe)
(a)
( b)
Vill.
(a)
(b)
Hiring
Provision to require multi-plant corporations, when hiring m
any plant, to give preference, in order of seniority, to workers
laid off from their other plants.
Provision to- require all plants under UAW-CIO contract, when
hiring, to give preference to laid-off workers in the same area
and industry.
Other
Demands
Model clauses adopted by International Executive Board on vas
rious subjects are to be included among demands in all cases
where they are appropriate and have not yet been won.
Corporation councils and Local Unions may add additional economic and contract demands designed to meet the sperial p-oblems of their respective members.
-
DECEMBER, 1954
UNITED
AUTOMOBILE
WORKER
ion Makes Guaranteed
at the new
ich sand.
at Nash performs
in hours for mathan 80 per cent.
nachines on an item
ates a new
He
machine
produces
750
gadget-filled
ploy,
operation
into a plant at.a
time
it
on employers
to build automatic
they would
plants at places
not lead to mass layoffs in existing
on
automated
processes,
workers
who
have
had
mo experience with older preduction metheds.”
With a choice between hiring a new work force for automatic
operation while paying a laid-off force its guaranteed wage and
providing work for its present employees, profit-minded companies
naturally will be reluctant to take on a double payroll.
A guaranteed wage also will give empoyers considerable incentive to provide other jobs or other aid to workers displaced
by machines. In extreme cases, it will help cushion the shock of
layoff for workers,
fas
Automation can produce huge profits for a few — and widespread layoffs, or it can lead to a standard of living higher than -
when
that would mean major layoffs. Since they'll have to pay those
workers any way, they'll be more likely to bring in the mew machines
when markets are expanding.
The guaranteed wage will exert considerable pres-
‘Automation," prepared
ive Bargaining Confer"Automation" will de-
was even dreamed
The
of when
guaranteed
annual
Franklin D. Roosevelt was president.
wage
will
help
make
automation
serve the needs of all the people instead of havea working people
made obsolete by automatic machines.
industry
a better
and
s can
the
ust to make
be
seeing-eye
PAGE
plants. "In most cases," the UAW report? cbserves, "it
is more eccnomical to install automation in new plants
than in cid ones. Moreover, corporations prefer to em/
INCREASES NEED FOR GUARANTEED WAGE
Automation clearly increases the need for a guaranteed
annual wage. Workers must be assured of a rising, steady income
to buy the goods which the robot machines can produce.
It passes much of the cost of disrupting the economy onto
managements. A company will be less likely to introduce a new,
tomation will come or
lon't agree on whether
; persuade
where
full production and full empoyment."
of ‘‘autoare three
automatic
is on the
in a definition
it is. Above
More fancy,
jork of many
sure
radical productivity increases which will accompany automation
_ make it necessary to intensify the fight for an economy based on
utting turned out 38
:
Wage A MUST!
vances emphasizes the need for an expanding economy built upon
the broadest possible purchasing power base. Automation will .
increase productivity, but increased productivity without increased
total production is a formula for depression.
"If productivity is increased within a framework of full production and: full employment, the nation will prosper . .. The
Ford
see
more
bigger
Guar-
ery has been increasing
i peace production disDespite huge war proconsumer goods. Now
| the number of robot
geared
to rising
living.
sryone.
its out, “Approximately
vision of a major autoion which formerly re-large increase in’ total
eek,
“Ford's
automatic
IT EITHER CHEWS EM UP,
OR THEY GOT IT MADE!
“DEPENDS ON HOW
es as an old-style plant
ssembly line geared to
workers needed to run
mbly (which) requires a
fry observed: "The
ry 800 people with1Z people were int extent possible."
industry converting to
omist thinks American
years. The UAW study
AR
Independ-
getting more
3 machinery.
auiomatic
ents,
ad-
GM,
the
Chrysler,
. that 200,000 men
fion ‘UAW members in
natic technological
Ford,
Everybody,
Suppliers all
are
racts Coming Up
way
tion’’.
hines
ustry
| few
rease,
nm to
eonon a
Bar» the
d an
, the
ase—
from under their work
move entire. operations
force. They’d have to pay heavily for leaving
.
workers stranded.
Once the Guaranteed Annual Wage has been
observes,
the
“the
UAW
report
on
shorter workweek
“Automation”
will take its
place at the.top of our collective bargaining
agenda along with the continuing fight for
higher living standards. The fight for the shorter workweek and for higher living standards
must go hand in hand. The strategy which will
determine
the timing and
relative emphasis
of the struggle for these two objectives must,
of necessity, remain flexible at this time.”
—While a Navy
Wear
Neckties BUT ....
Fully Automatic Machinery Creates.
Special Set of Bargaining Problems
The production. worker of the future may
wear a necktie on the job.
The typical auto worker may be a skilled
purchasing
drop in workers’
any
without
power.
he Guaranteed Annual Wage
will lay the
will be less likely to
base. Managements
secured,
May
- Future’ Workers
- WHO'S INIT?
maintenance
man,
an
engineer
or
an
with the rising number
vantage of new equipment.
@ RETRAINING
AT
COMPANY
EXPENSE must be provided for workers whose
skills are no longer needed by a company for
these workers can learn new skills which will
be used. The Guaranteed Annual Wage: will
help make this possible.
® INCREASED SKILLED TRADES PRO-
analyst.
He’s likely to work with buttons and. dials instead. of wrenches and drills. |
“In the factory of the future,” the rapa:
zine Factory Management and Maintenance reports, “lubrication will be a utility service just
. You won't . _ TECTION. A Ford spokesmen told U.S. News &
like water, steam and electricity.
World Report that automation “ ... greatly
see oilers running around with oil cans or push. Instead Jubricants will ing lubrication carts.
increases the need for electricians, mechanics,
pipe fitters, toolmakers
and others skilled
- be pumped through pipes to each machine from
will
. Measuring units ...
a central source .
_ enough to do maintenance work on the mechfeed the lubricant to each bearing in the right
- anical slaves.”
Exactly how many skilled workers will be
amount and at the right time by time clock
- needed isn’t known just yet. It’s a cinch, howcontrol. You won’t have to stop the machines.”
ever, that managements will attempt to overPower sweeping devices, operated by one
lap. classifications and in general try to dilute
man, will clean floors better than a crew of ©
apprenticeable trades. This will have to be resweepers. Electronic machines will do a more
job than inspectors. Rocker arms
thorough
will. feed presses and painting machines. All
are beyond the
oe
these developments
talk stage.
sisted.
® HIGHER
skills -will be
In order
whole -
sections affected by new machinery, old seniority. groupings give workers less protection.
Workers must have the right to move into new
operations.
looks on,
an
electronic
® PREFERENTIAL HIRING clauses
ict
be won requiring all plants under contract with
our Union. to give preference to workers laid
off by other companies
in the same industry or
area. That becomes increasingly important
higher
investment
per
mation should be assessed and then shared
equally by all workers,” the UAW. observes.
The annual improvement factor must be = in-
--Some of the needs of the near future outlined in the UAW-CIO report on “Automation”
With
the
AUTOMATED
man on the new jobs, workers will have more
| | responsibility; should get more pay.
“The immense productivity gains of auto-
needed.
to protect
® BROADER SENIORITY.
FOR
automation. With
the human beings affected most by the coming changes, workers.
will. need even. stronger contracts.
are:
PAY
JOBS. Managements likely will try to use old
classifications for the new-type jobs created by
Whole groups of eciits are encet certain —
to. be. virtually discarded; whole new sets of
representative
of mergers to take ad-
.
creased.
A management
official told Fortune, in a
discussion. of automation, “I don’t think we are
consciously trying to ease the burden of workers, nor consciously: trying to improve their
standard of living. These things take care of
themselves.”’
The only way they can “take care of
themselves” is for unions to be fully prepared
for the more complex ;‘bargaining problems
ahead. The UAW-CIO is taking Steps right now
to. meet those automation problems head on.
WORKER
AUTOMOBILE
UNITED
1954
DECEMBER,
PAGE
tions develop will be exactly the
time when the employer would be
her husband. It was not even required that she be receiving the
survivors’ benefits before she could
be disqualified from receipt of unemployment compensation benefits.
since
Moreover,
employers’
least able to meet the heavy obligations that would be involved if the
entire cost had to be paid out of
his current income. In the event of
long and heavy layoffs, a straight
pay-as-you-go plan might even drive
some employers
into bankruptcy.
Such a plan would provide no real
security for the workers. The Reserve Fund provision of the Guaranteed Employment Plan assures the
workers that the money will be
there when it is needed to meet
the costs of extensive layoffs. At
the same time it assures full protection to the employer
against
taxes
under merit rating are affected by
the amount and duration of benefits
paid under the state laws, merit
rating gives them an incentive. to
fight against improvements in the
laws. It is probably the most im:
portant single factor causing the
serious lag of benefits behind wage
levels.
In short, we Oppose merit rating because the incentives it proInstead
misdirected.
are
vides
of
promoting employment stabilization
it tempts employers to engage in
anti-social and even criminal action
to deprive workers of benefits and
to undermine the effectiveness of
the
unemployment
compensation
laws.
Cost
to Employers
What is the Guaranteed Em-
30.
ployment
An
Plan
to cost?
going
exact statement of the cost of
the Guaranteed Employment Plan.
cannot be made in advance, because
so many layoffs are within the control of management. The extent of
guide to
manage-
layoffs in the past is no
what-they may be when
ment
has
a strong incentive to pre-
vent them. Other factors affecting
cost, such as the amount and the
duration of unemployment compensation benefits, are also likely to
be changed as a result of the Plan.
However,
of
cost
the
several
understood.
facts
guarantee
about
| should
the
be
Representatives of employer. organizations, like the Chamber of
Commerce and the Manufacturers
Association, have tried to scare the
_ 'THE NATION’S PRESS does some deep thinking about the UAW’s
demand for a guaranteed employment plan during press conference with
President Walter P. Reuther (center, nee) after the Bargaining Conference in Detroit last month.
31.
Would it be possible for management to save money under
this Plan?
|
|
Yes. If management succeeds in
stabilizing employment the savings
may
ci
|
outweigh the costs of
If
guarantee.
the
»
peaks and valleys
|=. in production are
peliminated,
com-
panies will not need
to maintain excespensation for wage losses should, in
sive floor space and
any case, be considered as part of
that is
equipment
the normal cost -of doing business
actually used only
which the employer must bear.
to meet peak. production loads.
‘
.
33.°
How
will
the
cost
of
guarantee
Labor turnover will be reduced;
payments to workers during
the expense of hiring and training
_ layoffs be met?
new workers will be cut down. The
The employer will meet the costs
added security for workers under
of payments to laid-off workers on
the plan will reduce the number of , a pay-as-you-go basis (out of his
current income); up to a specific
~ workers who quit their jobs.
been found to be realistic in terms
of
ing
reasonable
collective
bargain-
goals.
These estimates, of course, do not
take into account many of the methods management may use to reduce costs under the Plan, or even
to make savings. These include:
1. Stabilizing production schedules and employment.
2. Helping to improve unemployment
compensation.
3. Helping to secure a sound
re-
imsurance program.
4. Supporting national economic
policies designed to maintain
full employment.
There will certainly be some,cost
that
while
management
a reserve fund
cannot
is being
avoid
built
to take care of heavy layoffs. Even
this cost can be reduced through
improvements
in . unemployment
the _ establishcompensation and
ment of reinsurance. In any event,
the cost of building the reserve will
not be excessive, and once the fund
has been built up, the cost of keeping the Plan in operation could be
reduced
virtually to zero.
That
would
Union
be
is
the ideal as yr as our
concerned. If is steady
work we want, and not pay for idleness.
off workers
ing the plan.
32.
liability
ited
would not be
tical and
by the em-
against
|
of the plan.
If many workers are laid off and
the demand for guarantee payments
exceeds this maximum percentage
of current payroll, the payments
above the maximum will be paid out
of the reserve trust fund. ~
the
employer’s maximum liability for
payments under the other parts of
the plan.
"eae
be smaller when payrolls decline;
therefore, costs are reduced when
business is bad. This is a key feature
cost of guarantee payments to workers on full-week layoffs. Costs arising out of short workweek operation
credited
could not j
you-go payments—
a specific percentage of current payroll. Since this top limit is set as
a percentage of current payroll the
amount of money involved tends te
plans properly. Management will be
required to bear directly the full
cost of its failure to plan a full week
of work for all the workers it calls
in to work in any week. This will
provide an incentive for better planning.
The financing of the guarantee
against short workweeks is totally
separate from the financing of the
be
34.
.
Trust
Fund
Pian
What is the function
Reserve
Trust
Fund
Plan?
of
in
the
the
The Reserve Fund will be drawn
of our present agreements, the plan ' on whenever the cost of guarantee
Unlike most call-in pay provisions
does not contemplate that the guarantee against short workweeks will
include “Act of God” provisions or
other escape hatches for factors:
beyond
the
employer’s . control.
Management
can protect
itself
against such factors either by setting up reserves for the purpose
or by insuring itself against such
—
back-breaking obligations. In combination with the determination of
his maximum liability as a specified percentage of current payroll
it actually assures him that he will
be required to pay less for the guarantee
if
his
-business ‘declines
- sharply. .
the Reserve Fund up to the required
size within the shortest practicable
“
time.
36. How will the size of the Re>.
gerve Fund be determined?
The
amount
required in the
)
Re-
serve Fund for a sound Guaranteed
Employment
marily
on
Plan
the
will
number
depend
pri-
of workers
employed by the guaranteeing employer and their average wage rates.
‘The goal set for the Fund obviously
should not be allowed to fluctuate
up and down with every change
The _ rein current employment.
quired size of the Fund will there-
~
fore be determined in relation to
what is called the employer’s ‘‘base
payroll.” This “base payroll!” will
equal the highest number of manhours
worked
in the bargaining
unit during any one of a specified
number of previous calendar years,
multiplied by the current average
straight-time hourly earnings. This
will mean that if employment moves
up to a new peak, the required size
of the Fund will be increased to
' take care of the
of workers, and
plan jj
prac- @
for this reason that 9 gam
the plan sets a top ¥/
limit for pay-as-_
the 40-hour guarantee, like call-in
pay, will cost management nothing
at all or practically nothing if it
not
g
»,
be negotiated. It is |
ployer on a pay-as-you-go basis. The
fact that management can largely
avoid short workweeks means that
will
be an excessive
like ours an unlim- 7
full
cost of. guaranteeing
The
weeks of.:work — the 40-hour gua-
—- will be met
would
burden to management. In industries
How will the cost of the guarantee against short workweeks
be handled?
rantee
©
The Reserve Fund will be estabcontingencies.
lished as a frust fund — that. is,
Insurance companies now offer —
money put into the Reserve Fund
employers policies which not only
can be used only for the purpose
reimburse the employer for damof meeting costs which arise under
age to plant or equipment but alse
the terms of the Guaranteed Emfor lost profits resulting from mapicyment Plan.
chine breakdowns, fires, floods, ete.
How will the Reserve Fund be
35.
It is quite likely that the insurDuilt up?
ance companies would be willing. to
up
built
be
will
Fund
Reserve
The
extend such protection to cover
by
contributi
regular
through
ons
wage losses resulting from similar
rate
contributi
The
employer.
the
on
causes. However, as indicated in the
bring
to
sufficient
level
a
at
be
will
answer to another question, com- .
public by arguing that a wage guarantee in the industries under jurisdiction of the UAW-CIO would be
so costly as to bankrupt the corporations. All these arguments are
based either on ignorance of the
Plan announced by the UAW-CIO,
e
maximum
percentag
of his current
n
us.o
with
If management works
or on the speaker’s or writer’s hope
any
payroll.
Requiring
the-comp
to
ve front for measures —
ati
isl
leg
the
that his audience is ignorant of the
pay for full weeks of layoff out of
n-.
tio
duc
pro
full
a
ure
ass
to
ed
ign
des
safeguards provided by our Plan. —
current income penalizes managefull employment economy, increased
No one has a bigger stake in de‘ment directly at the point it begins
veloping a Plan that is practical
to lay off workers and, therefore,
profits from stable and expanded
and realistic than the Union and its
encourages’
management
to
avoid
costs
the
eigh
outw
markets will far
members.
such
costs
by
avoiding
layoffs.
of the guarantee. Moreover the savHowever, it is necessary to set a
Some of the safeguards which incommunity
whole
the
to
ings
limit to the amount of money a comsure that our Plan will be a workc
tragi
the
of
ion
inat
elim
ugh
thro
‘pany will be required to pay to laidable one are discussed in the anwaste of unemployment would be
off. workers out of its current in-—
swers to other questions.
come.
Otherwise,
when
there
were
t
direc
any
than
ter
grea
s
time
many
The UAW-CIO Study Committee
heavy
layoffs
the
payments
to
laidhas tested out the proposed Plan
employer costs involved in financ-
in terms of what it would cost under
various employment and business
conditions, including some extreme
situations, and has discussed its
data also with the Public Advisory
Committee of leading economists.
The cost, even under highly unfavorable economic
conditions,
has
17
additional number
if wage rates are
increased the required size of the
fund will also be increased to take
care of the higher cost of maintaining the living standards of laid-off
workers. On the other hand, in a
company ~ with
‘steadily
declining
employment over a period of years,
the required size of the Fund can
be gradually reduced as the number
of workers requiring its protection
falls.
.
The required size of the Fund
can be reduced as a result of other
factors than a decline in the size of
the “base payroll.” For example, if
unemployment compensation is improved, so that it provides for a
larger proportion of the guarantee
payments, a smaller Reserve Fund
will be required. If the employer en-
.-
ters info a reinsurance plan a small-
er Reserve Fund will be needed than
The
if there were no such plan.
‘Joint Board of Administration will
review the situation annually and
may redetermine the required size
of the Reserve
Fund
on the
basis-
of changes in the size of the ‘base
payroll,” changes in unemployment
compensation
provisions, and chang-
payments exceeds a specified per-. -@S in protection obtained through
centage of the employer’s current
reinsurance.
payroll. This means that it may be
How will the contribution rate
37.
used during layoffs which involve
be determined?
large numbers of workers, and it ©
will be used extensively if such layThe “contribution rate,” ‘that is,
offs last for an extended period of
the rate at which the employer will
time.
contribute to build up the Reserve
The time when such such situa(Continued on Next Page)
—
PAGE
Fund
UNITED
18
(within the limits of his total
mum
maximum liability) will be deter- .
mined as a percentage of his “base .
payroll.’ Since. the required size of
the Fund is also a percentage of
base payroll, this will preserve a.
steady relationship between the contribution
the Fund
38.
Why
rate
If
are
related
payroll” rather,than to current payroll?
Relating the required size of the
Reserve Fund and the contribution
rate to peak annual employment
within a recent period and to current average straight-time hourly.
earnings insures that the goal set
the Fund
and the contributions
to build it up will
be increased with
long - term
the
. growth of a company or with the
necessity
of
reflecting
re-
im-
living
proved
standards in payments to laid-off
workers. At the
same time, it re-.
duces
the
possi-
payments
the obligation to make guarantee
to workers already laid
nyne
size of
to “base
pay-as-you-go
DECEMBER,
1954
j
-§
the reserve fund “rides on top” of
O
the Reserve Fund and the conrate
the
Te.
pay:
not have to pay into the reserve
fund at all. You might say the employer’ s obligation to contribute to
and the size to which
the required
per cent of his current
have reached the maximum he will
is required to-be built up.
tribution
' for
roll.
AUTOMOBILE
—
|
Reinsurance
40.
What
ance?
Provisions
is meant
Why
- the Plan?
|
by
reinsur-
is it important
to .
FY’S
FOR
THEM.
Workers
leave
a
plant
after
being
called
back
folReinsurance i is simply a method of.
lowing
a
long
layoff.
The
Guaranteed
Wage
is
to
eliminate
that
layoff,
if
in’
way
the
pooling risks similar to
|
isn’t.
it
if
anyway,
pay
the
provide
possible,
_
|
other
which risks are pooled under
forms of insurance. It is less expen-_
sive for you to pay a small premium into an insurance fund for
fire insurance, for example, than it
would be to keep enough cash on
hand to replace your house if it
burned down. In the same way,
each company with a Guaranteed
Employment
Plan will need = less
money in its own reserve fund. if
there is a pooled fund from which it’
can draw when it lays off a very
large number of workers for a long
period, of time.
the higher seniority workers in case
they were laid off later.
The International Union Study
Committee has given careful attention to the development of a practical and equitable formula.
the direct cost to the employer of
the Guaranteed Employment Plan.
This will mean, for example, that
the reserve fund will not be required to be as large in proportion to
base payroll as it would have to be
with present unemployment com-
course, that unless a company closes
rate would not: have to be as high
a percentage of base payroll in order
of
pensation benefits. The contribution
all its plants completely, there will
still be a certain amount of money
available every week for guarantee
to build the fund to the required
size in the same number of years.
And because of lower costs, the employer’s maximum obligation could
‘It should
be
kept
in mind,
payments as a result of the emReinsurance,
therefore,
is
an.
im,
be a lower percentage of current
bility that the
specithe
pay.
to
ation
oblig
portant
feature
ef
the
financing
of
|
r’s
ploye
payroll.
All these factors would
employer may be
|
Plan
Employment
Guaranteed
the
rehis
of
ntage
perce
mum
maxi
fied
.
make
the plan easier
to negoom
fr
discouraged
sound.
possible
make
will
it
because
|
tiate, and it would not be realistic
hiring additional
maining payroll.
operation
of
the
plans
with
smaller.
for
the
Union
to
specify
figures
unworkers when his
oped
devel
as
plan
the
on,
additi
In
required
reserves
and
this
in
turn
|
til
the
actual
amounts
that
will
be
exis
business
dy
Stu
on
Uni
l
iona
rnat
Inte
the
by
will
result
in
smaller
contributi
on
available
from
unemployment
com-<
panding.
ies
mon
that
ides
prov
,
tee
mit
Com
rates.
pensation
are
known.
&
er’
loy
emp
the
if
For example,
~ due. to laid-off workers remain a
|
There
is
another
important
rea-_
e
som
ed
urr
occ
peak employment
continuing obligation of the em‘Determ
ining.
Eligibili
ty
-son -for providing for reinsurance © ployer, subject to the maximum li-_
time previously, and his Reserve
Fund had already been built up to
in the financing of the Guaranteed
ability ceiling, . until the workers
43.
Who decides who is eligible te
a size based on that employment
in
e,
sinc
e
abl
son
rea
is
s
Thi
.
paid
are
will.
ce
ran
nsu
Employment Plan. Rei
receive
payments
under
this
level, hiring additional workers
ts
cos
n,
pla
tee
ran
gua
the
ng
ati
oti
neg
—
rs
yea
y
earl
the
in
Plan?
s
plan
new
ect
prot
would not require any additional
will be measured in terms of the
before
the
contributions
to
the
rethe
l
unti
d
Fun
the
Where
to
a
s
dispute
ion
chas
developed
contribut
le
cyc
ss
ine
bus
e
ol
wh
a
for
average
serve trust funds have built the” regardless of whether the trough
the Joint Board of Administration
base payroll passed the previous
will
have
the
final
decisio
n,
and
peak. If employment rises above the
neer
aft
n
funds up to their required size.
soo
ed
urr
occ
le
cyc
‘the
f
‘o
will
not
be
bound
by
any
finding
s
previous peak, the employer’s ecoem
e
Th
er.
lat
s
ar
ye
or
s
ion
iat
got
emphasized that the |
be
ld
shou
It
or
rulings
of
the
State
Emplo
yment
nomic position will be strong enough
unfor
ity
bil
lia
ng
ui
in
nt
co
’s
er
oy
pl
m
ce
gra
|
ran
pro
e
nsu
rei
t@nc
a
of
exis
Service
m
i
e
Ties
:
.
to enable him to make additional
s,
on
ti
ga
li
ob
ge
wa
ed
te
an
ar
gu
t
me
the
of
nce
adva
in
y
ssar
nece
‘not
is
—
contributions without difficulty.
ts
cos
e
th
to
d
ad
not
l
e,
wil
or
ef
er
th
“In
most
cases,
qtiestions
of
who
Ems
ed
negotiation of a Guarante
pur
for
ted
ima
est
be
will
ich
‘wh
is entitled_to guarantee ‘payments,
If the Reserve Fund has not yet
ployment Plan. A perfectly sound
ly
re
me
l
wil
but
ons
ati
oti
neg
of
es
pos
ng
how much they are entitled.to and
reached the required size, relati
plan at a cost employers can well the
of
s
les
ard
reg
t,
tha
e
sur
ke
‘ma
for how long, etc., will be decided
the contribution rate to base payroll ~ afford along with other collective
h
pus
the
1
in
nt
poi
low
the
of
ing
tim
plant
the
at
basis
routine
a
on
will actually encourage the employd
lishe
estab
be
can
gains
bargaining
we
e,
cl
cy
__
ss
ne
the
the
to
with
accordance
in
level
er to expand his business up
in the absence of reinsurance.
hin
ryt
"
|
g
lon
plan. In multi-plant
the
of
s
term
peak reached previously. As
e
Se
reinsurance z we
t
tha
le
bab
pro
is
It
r.
fo
n
ai
rg
ba
corporations they may be decided
'
as his current payro jl remains less
;
some
until
d
establishe
be
not
will.
ng
lo
so
s,
hu
‘T
iadd
ing
by union and employer representahir
l,
rol
pay
than the base
in.
are
s
guarantee
the
after
time
y
n
a
p
m
o
c
e
th
as
any
e
olv
inv
tives on regional committees. The
not
will
tional workers
|
reinsurof
s
advantage
The
effect.
'
sbu
in
es
nu
ti
on
-e
his
of
unt
amo
Joint Board of Administration will
ar
doll
increase in the
we
that
ver,
howe
,
great
so
are
ance
s
r
e
k
r
,
o
s
w
s
e
n
i
,
Fund
e
erv
be involved only where the issue
Res
contribution to the
lishestab
be
will
it
that
ct
expe
may
who do not recannot be settled at a lower level.
and the fixed dollar amount will
|
been
has
e
ante
guar
the
.
after
ed
ll
fu
r
ei
th
e
iv
ce
e
of
tag
cen
g
per
inin
decl
a
ent
res
rep
s
te
tu
ti
ns
co
at
wh
of
on
ti
es
qu
e
Th
won.
- guarantee
pay=
his growing current payroll. If his
a worker is ofen
wh
rk
wo
le
ab
it
su
@
me
ti
e
th
at
s
nt
me
“
the
rises above
payroll
current
41. What happens if there is not
tside the plant of the
ou
job
a
d
re
fe
:
eg
#
f
of
id
la
e
ar
ey
th
l,
rol
pay
e
bas
us
vio
pre
amount of the
ng employer will be setei
te
an
ar
enough money to pay all oe
gu
ma y expect to ="
his dollar contributions will increase
of
s
on
ti
es
Qu
y.
wa
me
sa
the
in
d
tle
ms?
clai
ee
rant
nt
ue
eq
bs
su
me
so
at
em
th
e
eiv
rec
e
tag
cen
but will remain a fixed. per
suitable work when the employer
e.
tim
of current payroll.
In the absence of adequate reinhimself offers an alternative job will
surance, the danger that there may The best answer to this. problem,
be settled in accordance with the
not be enough funds available to
of course, is the establishment of
provisions of the basic collective
layvy
hea
a
e
of
s
nc
cost
ra
full
su
the
in
t
re
mee
of
em
st
sy
te
ua
eq
ad
an
t.
en
em
re
ag
ng
ni
ai
rg
ba
39. Will the employer have to
off inevitably arise under any guar- - which would serve to avoid entirely
make contributions to the fund
k
sic
too
is
o
wh
er
rk
wo
a
l
Wil
44,
anteed wage plan which limits the
the danger that there may be insufwhen he has large numbers of ‘employer’s liability. A limited liabi- | ficient resources to meet all guaranto work receive guarantee pay~
people laid off?
lity plan, however, is the only kind
—
teed wage payments in full at the
ments?
inin
te
negotia
to
e
possibl
it:is
that
.
due
me
co
y
the
e
tim
He will not have to pay into the
basic purpose of ic plan is
e
Th
by
orsanen
those
like
dustries
r
ei
th
pt
ce
ac
to
fund if the cost of current guarans
er
oy
pl
em
el
mp
ble
co
ila
ava
to
s
ure
fig
not
are
y
Wh
42.
UAW-CIO.
rk
wo
r
ei
th
e
id
ov
tee payments on a pay-as-you-go
pr
to
y
li
bi
si
on
sp
re
on every detail of the Plan?
‘The danger of insufficient funds
work. Guarantee
basis has reached the percentage of
dy
ea
st
th
wi
ers
now
set
be
not
can
s
ure
fig
ct
Exa
would be greatest if heavy layoffs
current payroll set in the agreepayments are, in effect, a form of
for some details of the Guaranteed penalty imposed on employers when
occurred in the early period of the
ment as his maximum liability...
— for example,
Plan
si
fund
t
trust
on
ve
sp
men
reser
the
re
loy
while
plan
Emp
at
th
to
up
e
liv
to
l
fai
ey
th
In order to guarantee to the emthe required size of
be
d.
will
ulate
t
accum
wha
'
being
is
.
ty
li
bi
ployer that he will not have to make
to
n
tio
por
pro
in
d
fun
e
erv
res
e
‘th
rk
wo
at
ot
‘n
is
.
er
rk
wo
a
en
Wh
it
s,
stance
circum
such
Under
contributions under these circumloy
emp
be
will
t
wha
oll,
payr
base
bean
th
er
th
ra
k,
sic
is
he
e
us
ca
be
as
up,
divide
to
ary
necess
be
would
stances the plan provides that the.
the reserve
to
rate
tion
ribu
cont
er’s
cause the employer has failed to
equitably as possible, such funds as
maximum per cent of current payand
oll,
payr
base
to
tion
rela
in
fund
provide him with work, it cannot
are available for payment of guaroll includes both his pay-as-you-go
maxis
er’
loy
emp
the
be
will
t
wha
ranteed wage obligations. We would
be claimed that the employer has
payments and his contributions to
of
e
tag
cen
per
a
as
y
ilit
liab
mum
.
ty
li
bi
si
on
sp
re
his
insure
to
a
et
formul
a
me
have
to
to
have
ed
il
fa
the trust fund.
-eurrent
payroll.
availmoney
the
of
ution
distrib
fair
For that reason, workers too ill
Tf the payments to workers on
have to be de- to work will usually have to depend
will
es
figur
e
Thes
pension agreeour
as
just
able,
a pay-as-you-go basis are below the
termined in relation to the condia
disfair
for
formul
a
have
ments
ckness and accident benesi
maximum. level (and if the reserve
the
on
will exist in 1955 when
that
s
.
tion
comthe
if
funds
the
of
on
tributi
ided by our agreements
ov
fund has not yet reached the repr
s
fit
ls of the plan. One
detai
e
tiat
nego
we
the
if
or
liquidated
be
should
pany
tee payments.
an
ar
gu
quired size) the employer will conon
an
th
er
th
ra
of the conditions that may be conpension
plan
is
terminated
for
some
nt benefits, of
de
ci
ac
d
tinue to make payments into the
an
s
es
kn
ic
(S
y changed by that time is
rabl
side
on.
reas
r
othe
ent but that.
em
ov
reserve fund while he meets the
pr
im
ed
ne
,
rse
cou
duration of
and
unt
amo
the
that
The formula for distribution of
om guarancost of guarantee payments to laid
fr
m
le
ob
pr
te
ra
pa
se
a
is
compensation beneent
oym
mpl
une
h our
ic
wh
th
‘guaranteed wave funds would have
off workers.
wi
nt
me
oy
pl
em
d
tee
ially increased.
tant
subs
be
may
fits
°
availmonies
the
.)
all
ly
that
te
assure
to
ra
pa
se
l
dea
st
mu
n
io
Un
If pay-as-you-go payments, plus
and the AFL will
CIO
the
h
Bot
able would not be used up in the
s
ome
bec
who
ker
wor
a
r,
eve
How
that
for
drive
mined
deter
a
make
the full contribution rate exceed
payment of guarantees to low-sento
ht
rig
a
has
off
laid
is
he
le
whi
ill
se
r.
purpo
this
winte
|
the limit he will pay less to the
iority workers who would be the
ts
men
pay
tee
ran
gua
his
t
tha
ect
exp
Obviously, an improvement in unreserve—just enough to make his
first to be laid off. Provision would
e)
Pag
t
Nex
on
ed
inu
ont
‘(C
ce
redu
will
ion
sat
pen
com
nt
yme
plo
total payments equal to the maxiof
equity
the
protect
to
be made
—
|
.
When to Pay
|
_
oo.
DECEMBER, 1954.
2
‘
:
e
:
UNITED AUTOMOBILE
fall back on
benefits.
sickness
accident
and
Health Insurance
Will a worker’s health msurance continue while he is re-
45.
ceiving
ments?
guaranteed
wage
pay-
Yes. The basic principle of the
Plan is.
Employment
Guaranteed
that the worker’s living standards
are to be maintained while he is
laid off. He is not to be penalized
for involuntary idleness. Health insurance, medical and hospital benefits and pension credits, for example,
“are just as much a part of the
as the
living standard
worker’s
things he buys directly with his
wages. These benefits will be maintained while the worker is on layoff
and eligible for guarantee payments
just as though he were still at work.
Are
46.
we
idleness?
Company
gested
that
asking
for
propaganda
our
pay
has
Guaranteed
for
sug-
Em-
ployment Plan is “just a demand
for longer paid vacations.” This is
false.
Workers will not receive guaranteed wage payments except as a
result of the employer’s action in
laying them off. The worker must
be available for work. Not only can
he be recalled at any time, but he
must accept a suitable job elsewhere if it is offered him. The
Guaranteed Employment Plan will
protect eligible workers against the
“unpaid vacations” they have to
take now when they get laid off; but
it will do so chiefly because’ the
prospect of having to make guarantee payments to laid-off workers
will stimulate employers to provide
steady employment.
Workers will
draw
their wage
guarantees only if
the employer fails or is unable successfully to respond to that stimulus. In all of these ways, and others,
the Guaranteed Employment Plan
differs from an extension of paid
vacations.
We are not asking for pay for
idleness—we are asking for steady
jobs. But when employers fail in
their responsibility to provide steady
work,.they have a moral obligation
—which will be implemented under
the Guaranteed Employment Plan—
to see that the workers and their
families do not suffer.
47.
Will high seniority workers
want layoffs to come by reverse seniority under the Gua-
ranteed Employment Plan?
No. The effect of the Guaranteed
Employment Plan will not be to
job.
In some short-term layoffs,
as layoffs for taking inventory,
employer may prefer to keep
seniority workers on the job
lay off high seniority workers.
tails like this can be worked
48.
seniority,
cause the higher
seniority workers
will be those who
are
draw
entitled to
guarantee
payments
for the
longest
period,
and it will be to
every employer’s
advantage to see
for
In this
also the
teed
force
ential
other
respect
Guaran-
Employment
our
Union’s
hiring
Plan
drive
provisions.
will
rein-
for prefer-
We
did
have such provisions coverings multiplant corporations in certa in
areas during the Korean defense
The Guaranteed Ememergency.
certainly
Plan would
ployment
stimulate such corporations to revive those agreements, since under
the plan it would be senseless for
the companies to hire new workers
in one plant while their other plants
in the same area had workers laid
payguarantee
off and drawing
EmployGuaranteed
The
ments.
ment Plan, in addition, would stimulate the creation of areawide seniority pools cutting across _ individual company lines.
Will the Guaranteed Employment Plan eliminate boom and
bust cycles in our economy?
Employment
Guaranteed
The
Plan in itself will not eliminate
49.
.
ae
he
WORKER
PAGE
"
19
UAW
agreements.
The
ecal-in
a thing of the past once their cost
has been transferred to the employer, where it belongs.
laid off, their purchasing power can
help to wipe out those surpluses
quickly and assure their speedy re-
52.
If the big corporations nezotiate the Guaranteed Employment Pian, how will this affect
eall to work.
This is one of the purposes of the
Guaranteed Employment Plan, and
this is the way in which it helps
prevent depressions. It helps get the
economy back on the track by pro-
_
50.
it is
power when
viding purchasing
most needed.
Will the Guaranteed Employment Plan end layoffs?
The Plan will in time eliminate
many kinds of layoffs, and will reduce the number and duration of
others. It will not end layoffs altogether.
As managements learn to operate
under the Guaranteed Employment
Plan, mary thousands of workers
who in past years have been laid
off because of model change-overs,
inventory
taking
and
similar
inter-
the supplier plants?
_
Supplier firms will immediately
benefit from the stabilization of production in the plants which buy their
products. Leveling out
%
the peaks and valleys
in the assembly corporations in our industries will provide a
measure
of stability
for the steel industry,
the glass industry, the
textile industry,
the
rubber industry, the
parts industry and others from
which the assembly corporations are
major purchasers.
The suppliers will have a higher
degree of security; they will know
that the demand for their products
will be even, rather than irregular.
Workers in supplier plants will have:
more regular work as a result of.
ruptions of work will not be laid off
at all for these purposes—just as
such layoffs were largely avoided in
the
in
plans
the
of
negotiations
the immediate postwar years when
major
firms.
the demand for goods made it in .
on
effect
stabilizing
its
of
Because
promanagement’s interest to keep
pattern
the
and
industry,
whole
the
duction rolling.
which it will establish, negotiation
Layoffs due to seasona! fluctuad
nt
of
the
Guarantee
Employme
Plan
tions in sales will be sharply reducwith the major corporations will
ed, if not eliminated altogether, by
for the Union to
easier
it
make
also
sales and production policies designof
ed to reduce seasonal highs and lows,
that they have
the first oppor-
tunity
jobs.
{
Short workweeks will also become
Seniority
be-
e’
'
tice of calling people into work
when there was no work available.
Once the union contract shifted the
cost of this kind of irresponsibility
from the worker to the management
_ the practice ended.
out in
Yes, it will. If guaranteeing employers in an area agree that each
will give preference in hiring new
workers to the laid-off employees
of the others, each employer will
reduce the costs of the Guaranteed
Employment Plan to himself, because in the event of a layoff his
workers will have a better chance
of obtaining a job in one of the
other plants.
The plan will also encourage employers to give such preference in
accordance
with.
t
- pay clauses eliminated the old prac-
such
the
low
and
De-
Will the Plan encourage pooling of seniority by employers?
\
ee
ce
most
the negotiation and administration
.of
the
Guaranteed
Employment
Plan.
Pooling
A
ey
in pay clause, which we now have im
able job somewhere else. He must.
- will continue even though he is ill.
be available for such work. He is
The employer has failed in his oblijob
the
But
vacation.
paid
a
on
not
for
ble
ila
ava
k
wor
e
mak
to
ion
gat
- a worker gets while he is on layoff.
the worker. —
as
desirable
as
be
not
proDably
will
in such a.
Guarantee payments
his
job
in
his
own
plant.
It
may
be
—
ease would cease, however, if and
farther
from
his
home,
it
will
inwhen the employer, in accordance
volve
working
among
strangers.
with the seniority agreement, ishas
he
friends
the
than
rather
sued a recall notice to the ill workknown,
it
will
very
likely
involve
er. At that point the employer
Most
on.
so
and
tasks
new
learning
;
would have met his responsibility to
their
keep
to
prefer
would
workers
provide work and the worker would
regular
8
Woy
win the guarantee
and by all the methods that managment ingenuity will devise when
they have to pay a financial penalty
for failure to do so.
Layoffs due to interruptions of
work from such causes as material
shortages, breakdown of machinery,
the
better management planning.
In making: technological changes,
in mergers, in transfers of work=to
the work
~ete.,
will
be largely
eliminated
by
new locations, etc., managements
will also be compelled to plan how
such changes can be made with the
minimum dislocation of the workers
involved.
As Guaranteed Employment Plans
become more wide-spread, and as
financially
corporations become
more interested in national full em-
ployment policies, there will be a
stabilizing effect on purchasing power which will help to prevent layoffs
due ‘to wide swings in our whole
economy.
And, of course, when workers are
laid off under the Guaranteed Employment Plan they will continue to
receive
income
to
maintain
their
living standards and their purchasing power.
‘This will make the
layoffs that may still occur less of
a threat to the worker, and less of
a loss to the economy.
boom and bust cycles. The UAWWidewould.
it
said
never
has
CIO
turn the seniority clauses of our
End to Shert Weeks
teed
Guaran
of
tion
negotia
spread
agreements upside down. There will
ol.
Will the Plan end short workr,
yment
Emplo
Plans
will,
howeve
still be many reasons why a worker
weeks and short pay checks?
help
to
smooth
out
and
in
some
will prefer remaining on the job
The elimination of short workous
cases
to
avoid
danger
ups
and
rather than being laid off.
weeks is almost wholly within the
tion
downs
in
produc
and
employ
This will be true both in widecontrol of management and the
ment in the whole American econspread recessions and in situations
Guaranteed Employment Plan
omy,
and
will
serve
in
a
major
way
when an individual plant is laying
should virtually eliminate 2-3-and 4ons
to
cushion
the
shock
of
recessi
off workers while others are hiring.
day schedules.’In particular it will
ions.
and
depress
In a widespread recession, the
. put an end once and for all to the
For example, if we look at the
high seniority worker will know
vicious practice of unscrupulous cor-.
American economy as a so-called
that he is safeguarding security for
porations that schedule short work“inventory recession”
gets under
himself and his family by remainweeks with the deliberate intent of
way, we notice that goods are piling at work until layoffs finally
giving the workers just enough in
ing up on the shelves because they
reach up to his place on the senearnings to make them ineligible for
are not being sold. Business men
iority list. If and when that hapron ey rs
compensation benewho have these surplus goods on
pens, he will still be guaranteed
its
hand reduce their orders and workmaintenance of his living standards
Short workweeks now are costly
ers are laid off. The laid off workfor up to 52 weeks. If he is not yet
to the worker. He receives a short
ers have less money and are able
entitled to 52 weeks, he will be
pay check. For one or more days a
to buy less than before. They cut
building up his security by increasweek his productive ability is wastdown their ‘purchases, more goods
ing the duration of the guarantee
ed and he receives no pay. Under
pile up and more workers are laid
an extra week for every two -weeks
the UAW Plan the short workweek
off. And so it goes, down the spiral.
he is at work. Once he is laid off,
will not be costly to the worker, but
he will be using up that security inThe guarantee of income during to the employer. If it costs the emstead of adding to it.
layoff will help put the brakes on
ployer more money rather than less
If a layoff takes place in one plant —this kind of depression spiral. If money to operate a short workweek,
while general conditions in the inworkers who are laid off. as a rehe will operate a full workweek.
dustry are good, the laid-off worksult of accumulated surpluses have
This “40-hour pay’ guarantee is
er will very likely be offered a suitincomes maintained while they are like an extension of the 4-hour eall-
sunvlier
in the plants
companies.
~Will the Plan cause the large
corporations to contract out
more or less of their work te
supplier firms?
It has been argued that if the
large companies negotiate a Guar53.
anteed Employment Plan they will
farm out to smaller firms some of
they
now
do themselves.
This is an argument which management has spread among workers in
large corporations. At the same time
the workers in the smaller compan|
ies are told that the Plan would result in the large corporations gobbling up their suppliers in order to
make sure that irregularities in the
flow of parts from supplier plants
will not result in layoffs in the
large corporation.
Both of these management arguments are false. If a company now
finds it profitable to make some of
its own supplies, the production of
these parts will still be profitable
after the Guaranteed Employment
Plan goes into effect. And if a company now finds it profitable to pur-
chase
some
of its parts
from
sup-
pliers, the introduction of the Plan
will not make it unprofitable. By
stabilizing production schedules, in
fact, the assembly corporation may
be able to negotiate supplier delivery
contracts on a firmer basis, and the
supplier, knowing that demand for
his products is levelled out, will be
in a better position to quote lower
prices and to make good on stricter
delivery terms.
|
There has been, of course,a longterm: trend toward integration in
our industries. The big companies
have been taking over production of
an increasing share of their parts
and sub-assemblies. Negotiation of a
Guaranteed Employment Plan is not
likely to stop that trend. But it will
mean that when integration takes
place the workers whose jobs are
effected will enjoy a degree of security—a period of adjustment with-out loss of income—that they do not
have today.
54.
the
reduce
employers
Will
number of regular employees
when they negotiate the Guaranteed Employment Pian?
Employers have tried to frighten
and confuse workers by suggesting
negotiating the Guaranteed
that
Employment Plan would cause them
to reduce the size of their working
.
(Continued on Neat Page)
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