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16 THE OTTAWA JOURNAL W&UMJMJJiY. AuObST 19, 1964 yJ Uot affaaiEseJorJDiomJ Are Wage Guidelines Going By the Board? The flat ' rejection by lhe,eumably United Automobile Worker. ol the initial offen from the Big Three wu to have been exacted. With the union determined to exact the maximum advantage from the industry's profitable position, it wu unlikely to rise to the first cast, it s aimcuit now to say whether the union will press to the point of striking. Union spokesmen leave the impression they're prepared to do so but this could be part of the usual public warm-up to the private bargaining. That bargaining, nonetheless, will be close. A larger question is whether the guidelines to stable wages and prices, (aid down in the report by the Council of Economic Advisors - in;, January, , 1N2, will be observed. The guideline to wage In creases, Including fringe t fits, was that they should be equal to "the trend rate of over all prodctlvity Increase." The guideline to prices calls for "price reduction if the Industry's rate of productivity increase exceeds the overall rate . . . for an appropriate Increase la price if the opposite relation ship prevails ... for stable prices if the two rates of pro ductivity increase are equal." HOW PRODUCTIVE THE INDUSTRY . ..v l;.;.. An Immediate difficulty In an swering the question arises la calculating the rate of produc tivity in the automobile indus try. The overall increase In productivity in the United States hat been running at about an annual rate, of four per cent It is very; likely that the rata ia higher in the intensely auto mated automobile industry, par ticularly In this prolonged period of high volume produc " tion runs.. . . ", At the same time, though, raw material costs have been rising and this would tend to offset ome of the benefit of automa- volume. ' tkm an. - aI i and elated difficulty arise in establishing industry labor cost. The, collective bargaining process bat over the years created a number of benefits retirement and supplemental lay-off benefits, cost of living allowance which, while a continuing charge on produC' tion, are extremely awkward to cost in an acceptable Even the wag figure flcult to agre upon. The Bureau of Statistic set the average hourly wage in the industry at S3.61. The Big Three say their average is higher. .Neither the Big Three nor the UAW put a firm price tag on the firmer' offer. - Industry source, though, put It In the rang of an It to M-cent increase in basic hourly wage over the next three years. . A union spokesman doubted the Increase would exceed JO cent in the third year. It is . clear that for basic wages alone, .the increase would be in the range of eight to It per cent which, while' It might match temporary peaks In productivity increase. I somewhat in excess of the average trend.' .- But this is, admittedly, a very rough calculation. Walter Reuther, UAW president, said gen- I increa of 4.1 per cent la economic benefits'! pre- - PAST SERVICE ON FILM f)E VELOPMEF7 - KODACOLOR 24 Hours BLACKWHITE Same Day Service : pkotopwvicv ,' stores tm , SI asartn m WekaMM M. It Mala M, O.B. TartUy toe tmm Ka PIANOS V SON, LIMITtO 3SS Bank St. (at Cooper) V 'aeeaaea m J tee m lu Mala St, Hu 1S1 Spark SC at O'Connor ymmmmmmmmmmmmmmmm meaning wages and fringe payments was the minimum the union would Mr. Reuther has been known to acknowledge the guidelines to staple wages and prices; the 4.1 per cent could very well be the union's estimate of the productivity increase in the industry. If the figure does become the principal point of reference, it can be assumed that much of the bargaining process will be directed toward establish- could meaa their eventual re- log its validity. RELATING WAGES TO PRICES 1 Price, is aother considera-mi. Mr. Reutber's acknowl edgement of the guidelines ia this area was apparent. If mem ory serves, in his earlier' offer to adjust wage' demands to a reduction ia prices. At' that time, though, the industry's volume' was lower, its balance sheets less encouraging Mr. Reutber's argument, then was that lower prices would stimulate demand. The industry, while it may have, been impressed by the offer, bogied at Mr. Reuther proposals for implementing it. the effect of which would have been to put the union into a policy-making position. I Mr. Reuther argues now, bow- ever, that the Big enjoying ''fantastic" profits la which the union has a right to share. It's a considerable departure from the guidelines and IkS? SORQY, No Phone or Mail Orders ' r1 Fit establishment. uuHKime area t, oi course. intended to be rigid. Whether they should be re-established on Mr. Reutber's terms of an equitable share in a profit increase is another matter. He hssn't said anything about a corres ponding willingness to accept wage., reductions when profits decline. EDITOR GETS GRANT ST. JOHN S. Nlld. (CP) Mi chael F. Harrington, editor of the St. John's Evening Tele gram, has beemwarxted a . at Canada Council grant for research on the history of wooden sailing snips of .Newfaindjaadn Mr. Hamnxton- s - book win cover the history of the mer chant-fleet from about 1839 to Three arei 113 and will include an account of the import and export trade between Newfoundland. West ern Europe the West Indies and the Mediterranean. .c B y 911 11 Rio Algom Property To Get Mill TORONTO (CP)-Rlo Algom Mines Ltd. announced plans Tuesday to bring the copper-line property of its wholly owned subsidiary, Mines de Pol- rier Inc., into production at a cost of more than iid.ooo.ow.i A: major drilling and under ground . development program costing $2,275,000 has been com' pleted on the property 350 miles FOREMAN HONORED PARIS (Reuters) Andre Martinet, foreman of the miners at Champagnole; Eastern, France," who were buried underground ' for nine days and rescued Aug. 4, Tuesday was made a - Chevalier, of the National Order of Merits Hard material The -diamond hr the hardest material known to man. northwest of Ottawa In. Poirier Township la Quebec. Rio Algom said the program has indicated a J.500.00. - ton ore body containing an average grade of 1.74 per Cent copper. l.d per cent tine and yj ounce of silver a ton. 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