New Yardstick

When General Motors pegged its wages to the Bureau of Labor Statistics' consumers' price index, it set a pattern for thousands of other union contracts. As the index rose, the unions got automatic pay increases. Last week it appeared that this pattern might soon change. In the hope of improving the index's accuracy, BLS announced a radical change in the way it is compiled. To reflect changed standards of living, BLS will add 75 new items (including candy, ice cream, baby foods, used cars). It will also check prices H twelve additional cities, raising tne total to 46, and give food products less weight. But the biggest change will be to substitute the average of 1947-49 prices for the 1935-39 price yardstick now used for measuring changes.

Since the new index is less sensitive to minor price fluctuations, it will probably provide unions with less of an argument for wage increases. Already C.I.O. President Walter Reuther has warned that the autoworkers will not accept an automatic changeover to the new index.

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