Quadruple Saving

There was something new under a sun that rose one morning last week over Washington. Whether it was a permanent device for settling labor disputes or only a patchwork quilt under which old forces would continue their struggle in secret, no man knew for sure.

The immediate accomplishments of this new thing as it affected the automobile industry were indisputable: 1 ) It saved Detroit from being confronted with 200,000 new unemployed. 2) It saved automobile makers from a shutdown at the peak of their most promising production season in four years. 3 ) It saved 250,000 workmen in automobile plants from losing over $1,000,000 a day in wages. 4) It saved the Roosevelt Administration from a terrific setback to its Recovery plans.

It took the Administration five arduous days to effect this quadruple saving. The American Federation of Labor was determined to force a showdown on capturing the automobile industry. The industry was equally determined on a showdown to keep out the A. F. of L. (TIME, March 26). Such were the makings for a great strike. Last week with the strike's zero hour only 16 hours away President Roosevelt summoned both sides to Washington.

He conferred one day with the manufacturers headed by Alfred P. Sloan. Alvan Macauley, Walter P. Chrysler. Charles W. Nash, Roy D. Chapin. Next day he conferred with A. F. of L. men led by President William Green and William Collins, organizer for the industry. Then for three days General Johnson shuttled from one group to the other trying to arrange a settlement. At the end of the first day General Johnson held up his thumb and forefinger with only a hypothetical peanut between and reported, ''They are just that far apart." At the end of the second day the peanut had become a watermelon.

The third day brought the showdown. The motor makers were satisfied with the compromise arranged but the A. F. of L. leaders held out, particularly Organizer Collins who, rather than pompous President Green, was the backbone of Labor's push. When the A. F. of L. men went to the White House for a final conference General Johnson said: "This is the worst situation I have ever encountered. This is the end; now it's yes or no." At 7:30 p. m. the Laborites left the White House with an agreement reached.

The A. F. of L., which had demanded a union election in hope of getting control of automobile labor, had to be content with a bargaining foothold. The motor manufacturers won their fight to keep the A. F. of L. from setting up a closed shop in the industry. President Roosevelt himself described the terms under which the strike was averted:

1) "The employers agree to bargain collectively with the freely chosen representatives of groups and not to discriminate in any way against any employe on the ground of his union labor affiliations.

2) "If there be more than one group each bargain committee shall have total membership pro rata to the number of men each member represents.

3) "NRA is to set up within 24 hours a board, responsible to the President, to sit in Detroit to pass on all questions of representation, discharge and discrimination. Decision of the board shall be final and binding on employer and employes. Such a board is to have access to all pay rolls and to all lists of claimed employe representation and such board will be composed of: a) a labor representative; b) an industry representative; c) a neutral.

4) "The industry understands that in reduction or increases of force such human relationships as married men with families shall come first and then seniority, individual skill and efficient service. After these factors have been considered no greater proportion of outside union employes similarly situated shall be laid off than of other employes."

Thus A. F. of L. union members will bargain through their A. F. of L. leaders. The question of what employes belong to what unions will be determined by the Board of Three. But the automobile companies may (according to possible interpretation of the terms of the agreement) bargain separately with the different groups, including their own company unions. Finally, in hiring and firing, "individual skill and efficient service" as well as family status and seniority, will be considered first and impartiality between the unions second.

In addition, the motor makers got a specific promise in answer to their complaint that the A. F. of L. had coerced their workers to join its union: "The Government makes it clear that it favors no particular union. . . . The Government's only duty is to secure absolute and uninfluenced freedom of choice without coercion, restraint or intimidation from any source."

Said the President: "I would like you to know that in the settlement just reached ... we have charted a new course in social engineering."

Said Alvan Macauley (Packard), president of the Automobile Chamber of Commerce: "We are very grateful to the President and to General Johnson. . . ."

Said William Green: "Let us hope this means continued peace . . ."

Said Mayor Frank Couzens of Detroit, son of Senator Couzens: ". . . The best news Detroit has received in a long time."

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