Friday, Sep. 29, 1961

What Is "Settlement"?

In Detroit last week the word "settlement" had begun to lose its meaning. Three weeks ago General Motors agreed with United Auto Workers President Walter Reuther on the economic clauses of a new three year contract only to see a majority of G.M. plants shut down by local disputes over work rules. Last week Reuther and G.M. Negotiator Louis Seaton settled the major noneconomic points in the contract, including such delicate matters as toilet time and pay for union shop chairmen. But still walkouts caused a shutdown in 39 G.M. plants, crippled production at another 27.

Chief cause of this fiasco was a miscalculation by Reuther. Three weeks ago, in a move to pressure G.M. for improved working conditions, Reuther gave the U.A.W.'s G.M. plant locals the go-ahead to strike over local issues in the belief that he could call his men back whenever he wanted. But Reuther underestimated the unrest in the locals. Last week in Detroit the U.A.W. Council which represents all the locals in G.M. plants, agreed to accept the nationwide contract that Reuther had negotiated, then turned around and voted for a full-scale strike until all local disputes were settled. Next day, under intense pressure from Reuther, the council reversed its stand, called for all locals that had resolved their issues to return to work, and summoned the 24 locals with unresolved issues to bring their problems to Detroit.

The summons did not set well with burly, aggressive John M. McCarrell, 42, president of Local 544 at G.M.'s huge Fisher Body plant near Pittsburgh. McCarrell, who had already defied Reuther by refusing to let a national U.A.W. representative sit in on the Pittsburgh negotiations, vowed that he would not call his men back until he had won concessions on local work rules and seniority procedures. And McCarrell held the whip hand; since his plant turns out body parts for all five G.M. automaking divisions, he was capable of stifling G.M.'s entire output. When he learned of McCarrell's rebellion, Reuther growled: "If those fellows in Pittsburgh tell us to go to hell, then we are going in there in force to preserve the integrity of the union." Stung by the threat, McCarrell denounced Reuther's statement as "asinine," stomped into Detroit for a showdown.

Since Reuther could, if pushed, replace McCarrell with a Detroit-appointed administrator, odds were that McCarrell would soon settle his differences with G.M. But the squabbling within U.A.W. ranks had undeniably hurt Reuther's prestige. At week's end, as the U.A.W. prepared to shift its attack to Ford, Detroit automakers were uncomfortably aware that it took more than an agreement with Walter Reuther to ensure peace in the auto industry.

While tumult and hubbub reigned in U.A.W. councils, Detroit last week wound up its new model offerings with the introduction of the 1962 Buicks. As standard equipment, the compact Special has a new (for the U.S. auto industry) 135 h.p., cast-iron V-6 engine, which replaces the more expensive aluminum V-8 and cuts $100 off last season's list prices. In styling, both the compact and standard Buicks are little changed, although the standard Buick's extra inch in width and two to four in length lend it a lower, more massive look.

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