Effective date

Provisions

Applications, exceptions, and other related matters

June 20, 1941__ Mar. 1, 1950 (by memorandum of agreement dated Sept. 28, 1949, implemented and superseded by agreement of Mar. 16, 1950).

Oct. 1, 1950 (by agreement of Sept. 4, 1950).

Insurance Benefits-Continued

Added: Retired group-insurance participants provided with company-paid life insurance of $1,000 for 30 or more years' service, $750 for 20 and under 30 years', and $500 for 10 and under 20 years'.

Retirement Benefits

No provision for retirement benefits.. Noncontributory retirement plan established to provide normal retirement benefits of $100 a month, including primary_old-age benefits under Federal Social Security Act, to employees retiring at age 65 or older with 30 years' credited service. Employees aged 65 or older with less than 30 years' credited service to receive pensions equal to same proportion of $100 as years of credited service bear to 30. Early retirement at reduced benefits for employees aged 60 to 65 with 30 years' credited service.

Disability retirement benefits of $50 a month, less any statutory disability benefits, to totally and permanently disabled employees aged 55 to 65 with 30 years' service.

Entire cost borne by company. Revised to: Normal retirement benefits after 30 years' service increased to $125, including primary old-age benefits under Federal Social Security Act. Proportionately reduced benefits for employees with less than 30 years' service. Total and permanent disability benefits changed to $3 a month for each year of credited service up to 30 years, with a minimum of $50 less any statutory disability benefits, for totally and permanently disabled employees aged 50 to 65 with at least 15 years' credited service.

1 Last entry under each item represents most recent change.

2 Period covered by Executive Order 9240 was Oct. 1, 1942, to Aug. 21, 1945.

Under Aug. 21, 1947, agreement, employees established seniority after probationary period of 6 months' continuous employment. Probationary period was reduced to 3 months' continuous employment by Sept. 28, 1949, agreement, but holiday plan was amended to require employees to have seniority status and 6 months' service as of date of holiday to be eligible for holiday pay. Under Sept. 4, 1950, agreement, 6 months' service requirement was eliminated.

4 Plan provided: $1,500 life insurance, $15 weekly accident and sickness benefits, $5 daily hospital expenses, $30 maximum benefits for special hospital services, and $150 maximum surgical expenses. Monthly cost to employee was $2 and was increased to $2.90 on Mar. 1, 1942, without change in benefits.

Plan provided: $2,000-$4,000 life insurance, $1,000-$2,000 accidental death and dismembership benefits, and $18-$30 weekly accident and sickness disability benefits for 26 weeks. Monthly cost ranged from $1.72 for employees earning under $1.10 an hour to $3.44 for employees earning $1.90 an hour and over. Blue Cross hospitalization and Blue Shield surgical insurance available at employee's expense.

NOTE: For purpose and scope of wage chronology series, see Monthly Labor Review, December 1948. Reprints of this chronology are available upon request.

Joint Board of Administration composed of 3 company and 3 union representatives and an impartial chairman to administer benefit structure of plan. Effective April 1, 1952 retirement to be automatic at age 68 with no future service credited after age 65. Retirement at 60 requires consent of company. Company may retire employees at age 65 on own initiative by reason of employee's inability to work efficiently.

Future service creditable to age 68.

of each year thereafter. Provisions relating to quarterly adjustments of the cost-of-living allowance were carried forward without change (see basic chronology). A new pension plan financed by the company was established and the benefits under the contributory insurance plan already in effect were increased. The 5-year agreement contains no provision for reopening on wages or other matters.

The basic chronology covering the period from 1939 to September 1949 is brought up to date by the following additions. Each quarterly review of the cost-of-living allowance is listed.

1 See Wage Chronology No. 9-General Motors Corp., 1939-49, Monthly Labor Review, September 1949.

2 cents an hour decrease___. 4 cents an hour increase___.

No change.

5 cents an hour increase....

3 cents an hour increase_ 5 cents an hour increase..

Application, exceptions, and other related matters

1 Parties agreed to add 1.3 points to the BLS Consumers' Price Index in computing the cost-of-living allowance to compensate for the understatement of the index's rent component. The increase in the previous 0.8 point ad

justment was made on the basis of a new estimate made by BLS. 2 On Mar. 3, 1951, the parties agreed to reinstate the 0.8 adjustment in computing the cost-of-living allowance.

1

Oct. 1, 1950.

Group Insurance Plan

Contributory insurance plan amended to provide, at no extra cost to employees, additional $500 in life insurance, $250 in accidental death insurance, $14 a week in sickness and accident benefits, $10 a month in total disability benefits, and establishment of in-hospital doctor attendance benefits up to $5 a day for maximum of 70 days.1

Added: Hospitalization and surgical benefits-company to contribute half the cost of Blue Cross and Blue Shield hospitalization and surgical insurance, up to level of Michigan plans, for employees and dependents.

Pension Plan

Noncontributory retirement plan established to provide pensions to employees retiring at 65 or older with at least 10 years' service.

Company pension-$1.50 a month for each year of service up to 30 years, to be supplemented by Federal Social Security benefits. Minimum pension including Social Security benefits: $4 a month for each year of service up to 25 years. Reduced annuities for retire

ment between 60 and 65.

Disability retirement:

For employees totally disabled at age 50 or older with 15 or more years' service-$3 a month for each year of service up to 30, with $50 minimum, including statutory disability benefits. Regular pension upon reaching 65.

Entire cost borne by company.

1 Revised schedule of benefits:

Joint board of administration composed of three company and three union representatives and an impartial chairman to administer the benefit structure of plan.

Effective Jan. 1, 1952, retirement automatic at age 68 except at company's option.

Wage Chronology No. 5: Chrysler Corp.'

Supplement No. 1

THE MAY 1948 agreement between the Chrysler Corp. and the United Automobile, Aircraft and Agricultural Implement Workers of America (UAW-CIO), which was to run to August 1, 1950, was reopened for wage discussions in June 1949. Negotiations conducted intermittently over a long period were broadened to include pension and insurance plans. Following a 100-day strike a settlement was reached on May 4, 1950.

Effective date

The 1950 contract replacing the May 1948 agreement had a 3-year term. On August 25, 1950, without a formal wage reopening and without modifying the terms of the contract, agreement on a general wage increase was reached by the parties. On December 11, 1950, the parties set aside the 3-year agreement and negotiated a 5-year contract without reopening provisions.

The changes provided by the May 1950 agreement, by the company's action less than 4 months later, and by the December 11, 1950, contract are described in the following tabulation that brings the 1939-48 wage chronology up to date.

1 See Wage Chronology No. 5-Chrysler Corp., 1939-48, Monthly Labor Review, April 1949.

Provisions

Applications, exceptions, and other related matters

Wage increases or provisions for automatic progression affecting employees in 45 job classifications. 3 cents an hour increase to all employees in plants at Kokomo, New Castle, and Evansville, Ind.

Additional increase of 5 cents an hour to skilled workers. Plus previous 10-cent increase designated as cost-of-living allowance, which may be adjusted up or down every 3 months in accordance with changes in BLS Consumers' Price Index. Agreement also provided for increases of 4 cents an hour effective each June 1 from 1951 through 1954 as an "annual improvement factor."

Additional adjustments in classification to employees on 7-day operations, pattern makers on foundry work, and die dummy builders. Quarterly adjustment of cost-ofliving allowance.

understatement of the index's rent component.

2 On Mar. 3, 1951, the parties agreed to reinstate the 0.8 adjustment in computing the cost-of-living allowance.

1

Hiring rate

Minimum job rate