Showdown at Ford

The showdown had come in the battle for the guaranteed annual wage. Unless Ford Motor Co. or the C.I.O. United Automobile Workers backed down at the last minute, all signs pointed to a strike.

The cards were put on the table at a crucial bargaining session in the Silver Room of the Detroit-Leland Hotel. There, after seven weeks of sparring behind closed doors, Ford made its major counter-offer to the U.A.W.'s demands for G.A.W.

On hand for the occasion were the top bargainers for both sides: U.A.W. President Walter Reuther and a dozen aides sat along one side of a felt-covered table with their backs to the door; Ford Vice President John Bugas and a dozen of his staff faced them across the table with their backs to the wall.

But the Ford counter-offer brought no cheers from the union. Newsmen gathered outside heard Reuther's roar of protest. Then negotiators from both sides began to shout and pound the table. Suddenly, Reuther stormed out of the meeting with U.A.W.'s Ford Chief Ken Bannon at his side and lesser autoworkers trailing behind. No sooner had they cleared the passageway than Bugas burst through the door, snapped out: "I need a drink."

Easy Payment Plan. The Ford offer contained no G.A.W. Nevertheless, it was what Bugas called "as challenging and comprehensive a single package offer as ever made in our industry." Estimated cost: $150 million yearly (37-c- more an hour for the 138,000 workers), or $750 million for the five-year pact that Bugas wanted It provided for direct raises of 5-c- to 10-c- hourly for some skilled workers, an increase in pensions from $161 to $188 (including social security) for 40-year employees, a seventh holiday, an increase in vacations, from two weeks to 2 1/2 weeks for workers with ten years' service, broader insurance, and more medical and disability benefits.

In place of G.A.W., the Ford company made three new proposals designed to increase the security of workers: 1) a stock purchase plan, 2) an "income stabilization plan," and 3) severance pay. Both the stock and severance-pay plans were completely new to the auto industry. In the stock and savings plan, a worker could invest up to 10% of his salary. Half of this would be used to buy Government bonds for the employee; the other half would be used to purchase stock in the Ford company when it is issued--probably later this year. For every employee's dollar invested in stock, the company would contribute a dollar of its own.

Under the income stabilization plan, a laid-off worker could draw interest-free advances that would give him about 25% of his regular wages (plus unemployment compensation). When reemployed, he would pay back the advances in install ments. Workers laid off permanently would get a week's wages in severance pay for every year of service.

"Unjustand Unacceptable. "Ford knew that its offer was almost identical with what General Motors had proposed a week earlier as its counteroffer. (The cost to G.M. would be more than $1.5 billion during a five-year contract.) But Bugas headed off any U.A.W. attempt to play Ford and G.M. off against each other. Said he: "If the U.A.W.-C.I.O. concludes a more favorable economic settlement with General Motors, we stand ready to amend this Ford proposal to make it equally favorable to our employees."

Reuther and aides did not take long to make up their minds. In less than three hours they informally turned down the offer. Said Ken Bannon: "It is phony, unfair, unjust and unacceptable . . . The stock purchase proposal is obviously a smoke screen behind which the company offers crumbs to Ford workers while setting the stage for Ford executives to divide a huge stock melon when the company makes its stock available to the public." As for the offer of interest-free loans during layoffs, Bannon charged that it would force workers to "mortgage their future wages in order to meet the present needs of their families."

Where Is Democracy? Next day the U.A.W. made preparations for a strike after the contract's expiration this week. It summoned its executive board into night session, called its nationwide 135-man Ford Council into an emergency meeting to vote on the Ford proposal. Reuther even invited President Henry Ford II to attend and witness the "democratic processes of the U.A.W.-C.I.O."

Henry Ford quickly replied that he too was interested in democratic processes. Said he: "In the interest of the democratic process, I hope you will be able to satisfy yourself that any decision you and the council may reach truly reflects the opinion of the men and women of the Ford Motor Co., whom you represent. I personally feel it would be an unforgivable error--which could have the gravest consequences-- if the opportunity to know all the facts and to study them is not given these same men and women of Ford Motor Co." Two hours and 15 minutes after the council met, it voted unanimously to strike.

Point of No Return. But the talks continued. Up to the last minute both sides were still trying to reach a settlement. As time began to run out U.A.W.'s top brass hinted that they would postpone a strike if Ford's final offer were "reasonable." Said Reuther: "If the companies can come up with a different plan which will adequately protect the workers, we would be very happy to accept that." But the final choice between what was "adequate" and what was grounds for a strike was up to U.A.W. President Reuther.

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