Bill for G.A.W.

After four weeks of secret negotiations with General Motors and Ford, the C.I.O.'s United Automobile Workers last week reported how much its guaranteed annual wage demands would cost.

To pay for G.A.W., the union wants the auto companies to put 4% of the payroll in a base year (probably 1953, since it was the industry's highest employment period) into a reserve fund for five years, or as long as it takes to pile up a sum equal to 20% of the payroll. When the 20% total is reached, payments would stop, would not be resumed until after the fund is depleted by money drawn out to pay laid-off workers. No matter which base year is chosen, G.A.W. would cost the companies a maximum of 8% of their yearly payroll.

The union estimated that its G.A.W. plan would cost the companies 8-c- an hour per worker; at the end of five years, General Motors' fund would total about $350 million, while Ford's would reach $130 million. But, argued the union, the net cost to the companies would be much less, because the money going into the funds would be tax-free and not subject to the current 52% corporation tax. Thus, according to the U.A.W., the actual net cost for five years would be only "about $175 million for G.M., and about $60 million for Ford."

The companies, holding their statistical fire, made no immediate reply. Unofficially, management said the union's idea of costs was way off: they might turn out to be twice as much. If the industry can avoid major shutdowns but has to make temporary layoffs because of seasonal declines in sales, shortage of materials or strikes in supplier plants, the 8-c--an-hour cost could jump to 16-c- or higher, and the company's bill for G.A.W. would go soaring.

G.A.W. is not the only thing the union wants. In the last five years, 6-c- an hour has been added to each worker's pay in cost-of-living raises. The union wants this added to regular base pay so that it will not be lost if the cost of living declines. It also wants the hourly wage boost based on improved productivity, plus increased pension payments and other benefits. The combined cost of all this, said the union, would be much less than it had won in some previous bargaining sessions, such as 1946. when it won 18 1/2-c- plus some "fringe'' benefits. But Detroit automen estimated that the union's demands would cost upwards of 28-c- an hour, might add more than $1 billion a year to the combined General Motors and Ford wage bill. This week the bargain-battling was due to start in earnest, with D-day not far off. G.M.'s contract expires May 29, and Ford's ends June 1.

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