Problems of Peace

Peace finally came to the auto industry last week. Less than twelve hours after 300,000 General Motors production men walked out, G.M. signed a three-year contract with the United Auto Workers. As expected, it was about the same as the pact between the U.A.W. and Ford (TIME, Sept. 29), a package of about 28-c- per hour in wage increases and fringe benefits. But there were some important differences. The U.A.W. won G.M.'s pledge to narrow differentials in wages between workers doing the same job in different G.M. plants, which, the U.A.W. says, now range up to 27-c- an hour. G.M.'s top bargainer, Louis G. Seaton, beat down a U.A.W. demand for a bigger boost in short-week benefits than it got from Ford, i.e., maximum supplemental pay of $30 a week.

Chrysler also settled with the U.A.W. along the Ford pattern after thousands of workers struck. Both sides did some giving on key points. Chrysler, traditionally plagued by the industry's poorest labor relations, agreed to grant greater preference to high-seniority workers when rehiring. In return, the U.A.W. accepted a cutback in company-paid union stewards and a tougher no-strike clause to prevent the wildcat walkouts that have hit Chrysler hard for the past three years.

Local Troubles. Both G.M. and Chrysler still faced plenty of labor problems. At week's end some 27,000 Chrysler workers were still out, along with 300,000 G.M. workers. Many of them threatened to stay out until they settled such local issues as washup time, shift-preference procedure. U.A.W. President Walter Reuther said all GM. locals were on authorized strikes, "free to press for settlement of local issues and grievances [with] full support of the international union." G.M. feared local issues would keep thousands of workers away for days to come.

On the sales front there was more reason to cheer. Buick added up 37,429 retail sales in the first ten days of display, with production lagging a month behind 60,000 new orders. It was the fastest start ever for Buick. Cadillac also reported much higher sales and orders than a year ago. Pontiac hopes to boost its 5% share of the market by offering the widest wheelbase in the G.M. line and probably in the whole industry. This means Pontiac '59s will be roomier inside, easier to control than the '58s, hold the road better. Pontiac broadened its wheelbase by 5 in. to 64 in. v. Ford's 59 in., Plymouth's 60.9 in., Imperial's 61.8 in.

"Classic Simplicity." Ford teed off by blasting its competitors' "bombastic" styling, showed the press a line of short-finned, chrome-light Fords that offer "classic simplicity" and economy.* There will be greater difference in styling and price among the '593 than in many a year. Ford Division Boss James 0. Wright said the new Fords "series by series will be cheaper than Chevrolet or Plymouth," even though "prices will be up somewhat." Since Chevrolet has dropped its lowest-priced Delray line and Plymouth has scrapped its rock-bottom Plaza, the lowest-priced Ford Custom 300 is expected to sell for less than any other car of its two major competitors. Ford will also slash prices of its slow-rolling Edsel by "hundreds of dollars."

Ford has already booked more than $1 billion in orders, far more than at the same time in the '58 model year. To keep pace, the Ford Division plans to have almost all its laid-off workers back on the job this week, will put all workers on maximum overtime schedules of 53 hours a week, an hour extra every day and a full eight hours on Saturday. In the company's first sales forecast, Vice President Wright predicted '59 sales of 1,200,000 Fords, 20% ahead of the division's sales of '58s.

* A Ford test driver got 24.1 miles per gal. on a stock '59 Ford v. 17.6 miles per gal. on a '49 Ford, 17.6 miles per gal. on a top-shape '29 Model A, 12.9 miles per gal. on a Model T.

This file is automatically generated by a robot program, so reader's discretion is required.