Changed Direction

A new battle was joined in the wage-price campaign. As it had last year, labor struck first at autos and steel.

In Detroit, Walter Reuther made his demands on Chrysler: 23 1/2-c- more an hour, with enough fringe raises to bring the total to 30-c-. In Pittsburgh, Phil Murray was dickering for a "substantial increase" for his steelworkers. Now, as last year, labor insisted that higher living costs must be met with higher wages.

But by last week there were indications that both labor & management were trying hard to avoid the mistakes that sent wages chasing prices in an exhausting spiral last year. Economists thought that, barring the shock of sudden industrial upheaval, the inflationary crisis had passed. Labor knew that falling prices were already pumping new buying power into existing wage scales.

From management came one encouraging gesture. As his "down payment toward a continued high level of production and employment," Henry Ford II cut the prices of his cars from $15 to $50.

If labor could exercise the restraint that Phil Murray had promised, labor's real wages would be increased still more by further price drops. If management took its cue from Henry Ford, it would go a long way toward meeting labor's demands in advance.

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