Word: reuthers
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...that the United Auto Workers would resort to a strike-partly because the high U.S. unemployment rate had weakened the union's bargaining position. But last week a strike in the auto industry, though not yet inevitable, was an increasing possibility. Backed by an overwhelming strike vote, Walter Reuther had already chosen his prospective target: General Motors...
...negotiations with the auto manufacturers, United Auto Workers President Walter Reuther has always tried to divide and conquer. Historically, Reuther scored many of his best contractual gains by first breaking Ford, then using the Ford surrender terms as the basis to settle with the other companies. But in 1958, Ford stood steadfast in a united front with General Motors and Chrysler, and U.A.W members worked without a contract for almost four months until Reuther finally agreed to none-too-favorable terms. This year, searching for a more promising target than Ford, Reuther focused on up-and-coming American Motors Corp...
Moving in to take advantage of this split, Reuther himself settled down to secret negotiations with American Motors. At week's end, the company agreed to give the U.A.W. everything it wanted in a new three-year contract: cost-of-living and productivity increases, plus a proviso that 10% of American Motors' pre-tax profits will be paid out to workers (after the top 10% has been skimmed off for shareholders...
...offer. It was doubtful that the Big Three and the union could reach agreement before the Aug. 31 deadline, and the U.A.W. has vowed that it will not work without a contract. Oddly enough, Labor Day, which falls only four days after the deadline, provides a special incentive for Reuther to temporarily relax his vow. Provided they work both the Friday preceding and the day after Labor Day, U.A.W. workers will draw $10.9 million in holiday pay from the Big Three. With such profits to be gained from peace, it seemed unlikely that Reuther would pull his men out before...
Smiling Seers. All that clouded the Detroit scene was the question of whether Walter Reuther's United Auto Workers would cripple the industry with a strike if no new wage agreements have been reached when the present contract expires Aug. 31. So far, the talks have not yet settled down to the bedrock issues of wages, pensions and supplemental unemployment benefits. The only company proposal-a form of profit sharing that the U.A.W. termed "interesting"-has come from American Motors...