,:' l
. j
000008
A Story of
the Contract Between
Allis-Chalmers Manufacturing Company
and
Local 248 United Auto Workers-CIO
***
SOC\~l\S\ - U~OR
·'tUllEC1\
I
Dear Friend:
I thought you would be interested in more of the details
concerning the recently negotiated five-year contract
with the UAW-CIO at the West Allis Works of our Comrany.
Fnclosed is a copy of our news release and also a
statement concerning the thinking which led us to propose an unusual "mutual securities" section containing
a modified union shop. The beneficial provisions of the
Taft-Hartley Act helped materially to formulate this development.
In this section there is a democratic processes provision calling for union el ections of officers, stewards,
etc. to be held on Company premises and on Company
time.
Also enclosed are two letters which were sent to the
homes of our employes immediately following the signing of the contract.
We were delighted not only with the result of the collective bargaining, but also pleased at the high level
on which negotiations were conducted.
Very truly yours,
/#~
President
ALLIS-CHALMERS
MANUFACTURING
COMPANY
ALLIS-CHALMERS
MILWAUKEE, WIS.
NEWS
RELEASE _ _
Friday 10 a. m. (CST)
June 30, 1950
Milwaukee-a-The signing of a five-year labor contract between the
Allis-Chalmers Manufacturinog Co. and Local 248, UA W-CIO, covering approximately 10,000 production employes at the West Allis
plant, was announced jointly today by the firm and the UAW-CIO.
The contract is subject to ratification by the membership.
It covers wages, pensions, health and accident and group life insurance, union security and other contract provisions. The contract
will expire June 30, 1955.
Walter Geist, AllisoChalrners president, said, ft An agreement on a
contract has been reached that marks a new era for our employes,
the union, stockholders, and custou!ers.
ftIt is gratifying to learn that at the bargaining table there were
mutual respect and natural, courteous consideration of the other
fellow's position.
Constructive Approach Taken
ftWe believe that through the (mutual securities' clause and other
contract provisions, we have taken a constructive approach in offering our contribution to industrial peace and uninterrupted production."
John W. Li vingston, vice president of the UAW-CIO and director
of the Agricultural Implement division, said that the agreement ftaffords an opportunity for the building of mutual respect between the
parties. I believe that it may be the foundation of a strong and lastIng peace..
ftThe escalator clause, based on the cost of living, plus the wage
increase recognizing the annual improvement factor in production,"
said Livingston, ~can mean more and better goods will be available
at lower cost. This serves as a bul wark to American labor and industry in our cold war economy. I;
Praised by Union President
«It is in keeping with our system of free enterprise that workers who
participate in the benefits of this contract will al so be able to participate in an increasing standard of living," added Livingston.
Charles Schultz, president of Local 248, termed the contract, uThe
most outstanding agreement, insofar as personal security and union
security are concerned, 'ever to be negotiated between the company
and our local union.
UWe hope to prove that our local is worthy of the trust that the
management has placed in us as dem~nstrated by this agreement."
Contract provisions include:
1. A unique ftmutual securities" clause providing for a modified
union shop similar in many respects to that at General Motors
and maintaining the Company's basic philosophy in regard
to union mem bership.
)
2. A 3¢ per hour general wage increase effective immediately
and another 3¢ at the beginning of the second year of the
contract. At the end of the second year, the parties may continue the 3¢ per hour for each of the three remaining years, or
either party may ask that the contract be opened for wage negotiations.
Additional wage adjustments for certain skilled occupations.
'A cost of living formula providing an adjustment of 1¢ per
hour for each 1.25 change in the Bureau of Labor Statistics
cost of living index o Adjustments under the formula are to be
made semioannually.
Creation of a joint study committee on rates of pay with a
fund equal to 2¢ per hour per employe to be used for rate adjustments in the area of inequities.
3. An increase in the group insurance minimum from $2,000 to
$3,000 with the premium reduced from 60 centsper $1,000 per
month to 45 cents.
4. An amended vacation plan which provides a three weeks vacation for employes with 15 or more years of continuous
service.
5. A previously.. announced master pension plan offering .$100 per
month maxitnum pensions, including federal benefits, to employes retiring at age 65 with 25 years of service. This plan
covers employes represented by the V'A W-CIO at West AJlis;
La Crosse, Wis.; Springfield, Ill.; Pittsburgh, Penn.;" and
Gadsden, Ala., plants.
6. Grievance machinery changes providing for increased parti..
cipation of union bargaining committeemen, on company time,
and the international representative in grievance processing •.
7. The company agreed to continue to match employe contribu'"
tions to the Mutual Aid Society on the basis of the increased
health and accident insurance benefits made available to employes through the Mutual Aid Society earlier this year.
8. Changes requested by the UA W in contract sections relating
to discipline, seniority and layoff procedures.
The contract may be reopened at the end of two years for negotiations only on wages and on the right of the arbitrator to modify discipline. A no-strike clause prohibits work stoppages except following a strike referendum during the one reopening period.
Daily negotiations, including evening sessions, have been condu cted since June 19.
Petition Filed
Heading negotiations for the company was E. F. Ohrman, chairman
of the negotiating commi ttee and manager of labor relations at the
West Allis 'Norks. Representing the UAW-CIO were Livingston,
Lawrence J. Carlstrom, assistant director of the Agricultural Implement division; Harvey Kitzman, regional director; Anthony Audia,
international representative; and Schultz, chairrr:an of the Local 248
bargaining COP.1JT.:ittee.
The company and the union announced that a petition has already
been filed with the National Labor Relations Board for a modified
union shop referendum and that the election will be held within the
plant July 6. Plans have been arranged for some 2,000 employes who
will be on vacation next week to vote today. A majority vote of employes in the bargaining unit will be necessary to establish such a
modified union shop.
Security Provided
The ttmutual securities" section provides financial and n;ernbership
security for the union with the following union shop provisions:
1. Employes who are not now members of the union are not required to join.
2. Present members of the union may resign .during the period of
fi ve working days follow ing the effecti ve date of the agreement. But employes who do not so resign must thereafter remain mern bers of the union and pay union dues and general
assessm ents as a condition of eiTlployment•
.3. Each new employe must join the union within 90 day s after
hiring and pay the initiation fee, union dues and general
assessments as a condition of employment.
Democratic Processes Assured
l\ «democratic processes" section affords the following guarantees
to employes:
1. Democratic processes within the union are assured with reo
spect to elections of union officials and participation of members in the. conduct of the affairs of the union. This provides
a positi ve method whereby union I'D em bers can prevent con
trol of their union by a subversive group. The company agreed
that such elections will be held on company time and prernises and without loss of pay.
a
2. The freedom of action of employes in relation to union activities is insured against any interference.
3.
Assurance against interference with the right to work is
provided.
4. In the event of a strike, employes are guaranteed a secret
ballot vote referendum, which will be held on company premises during working hours at company expense.
Gei st Traces
A-e
Attitude
In connection wi th the contract announcement, the comp any al so released a statement from Geist presented at the bargaining table
prior to the offering of the mutual securities propo sal by Ohrman.
In this statement, Geist traced the historical attitude of AllisChalmers in regard to labor unions and pointed out how the new
contract term s are in line wi th thi s policy. He pointed out that as
earl y as Decem ber 5, 1934, in a statem ent of policy, the comp any
announced that it would tt meet with every lawful labor organization"
in collective bargaining, and also that ftthere would be no discrimination against employes because of union membership or non-membership. "
The comp any intended, said Geist, to lay the foundation for the
normal developm ent of unioni sm and colI ecti ve bargaining at the
West Allis Works.
"But the infiltration of a notorious subversive and his satellites
into the leadership of Local 248 prevented the normal development
and, instead, made collective bargaining merely an instrument for
communist-inspired strife and destruction," added Geist.
Legislation Aids Decisi.on
The statem ent said that the union shop of the 01 d typ e was the deo
mand which formed the basis for every strike during the reign of thi s
communistic leadership. Geist claimed there were two important
purpo ses in this Communi st union shop demand.
1. Through the requirement of good standing under that type of
union shop, the communist leadership would have obtained
coercive domination of employes.
2. The communist leadership would have been able to undermine
management's control of company operations.
Two important events, said Geist, made possible the consideration of a modified union shop clau see
The first event, he said, was the passage of the 1947 amendment
to the NLRA which (1) makes illegal those collective bargaining
agreem ents which require discharge of an employe for failure to
maintain good standing in the union, thus eliminating the coercive
feature of the old type of union shop; (2) legalizes a collective bargaining agreement requiring employes to pay dues and initiation tees
and thus bear their fair share of the expenses of their collective
bargaining agent; and (3) prevents the establishment of a union shop
without a majority vote of all employes in the bargaining unit in a
secret ballot referendum, supervised by the NLRB.
Three Groups Considered
The second event he listed was the recent NLRB decision that the
company need not rehire employes who played an important part in
the activities of the communist clique which controlled Local 248.
Geist said that in drafting a modified union shop propo sal, three
group s of employe s were con sidered-·-employes who don't belong to
the union, employes now members of the union, and future employes.
Mem bers of the first two group s presented the greatest pro blem, he
said. They accepted employment on the basis of the company's
policy that there would be no discrimination against any employe
because of membership or non-mJ~m bership in any union, and that
membership in the union was a matter of their own free choice. He
said he believed the present «mutual securities" clause was consistent with this policy and «reflects fully the comp any's stated
policy of non-discrimination and voluntary action by e,mployes."
Geist said the «mutual securities" clause is predicated upon the
important principle that the affairs of the union should be conducted
in accordance with democratic practices. Union members are entitled
to application of the principl e as a matter of right in a democracy.
The company is also entitled to the application of the principle from
a realistic and practical standpoint.
Full Participation Needed
teIn other words," said Geist, "if the cOMpany assists the union to
gain security through a clause in a contract with the company, then
the company fairly has the right to receive assurance by a contract
provision that the power which such security would provide, will
not be misused by subversive leadership to the detriment of the
company or the elnployes."
Geist added, «This assurance can only be obtained through the
full and complete p articip ation of all union mem bers in the conduct
of union affairs."
. - •. 0 - • - - -
Contract negotiations are being conducted at the local plants ,of the
four other UAW locals which participated in the master pension
agreenJent. The pension plan is being offered to the following unions
---the United Electrical Workers, Bo ston, Mass., Work s; the International United Electrical Workers-CIO, and Patternmakers League of
North America-AFL, Norwood, Ohio, Works; the Farm EquipmentUnited Electrical Workers, LaPorte, Ind., Works; the United Steelworkers-CIa, Oxnard, Calif., Works; International Brotherhood of
Electrical Workers-AFL; International Brotherhood of Firemen and
Oilers- AFL; P atternmakers League of North America- AFL, all at
We st Alli s Work s.
Employes not represented by a bargaining unit will al so be granted
wage and insurance benefits in line with those negotiated in the
Allis-Chalmers-Local 248 contract. The pension plan and three-week
vacation plan are being placed into effect for approximately 10,000
employes throughout the company who are not within bargaining
units.
ALLIS-CHALMERS
MILWAUKEE, WIS.
NEWS
RELEASE _ _
Statement from
Walter Geist, President, Allis-Chalmers Manufacturing Co.
Presented to
The International Union and Local 248, UAW-CIO
During negotiations, June 9, 1950
f'
Long before the passage of the National Labor Relations Act in
1936, the Company had accepted the principle of collective bargain'"
ing.
As early as Decem ber 5, 1934, in a statement of policy, the Company announced that it would et meet with every lawful labor organization" in collecti ve bargaining and al so that ~there would be no
di scrimination against any employe because of union mem bership or
non-membership. "
This Company policy of voluntary union membership was clearly
reaffirmed on March 2, 1937 in a communication to a labor organization representing its employes in the following language:
etMembership or non-mem bership in a labor organization is the
employe's own pei vate business."
Foundation Laid
This Company attitude laid the foundation for the normal development of unionism and collective bargaining at the West Allis Works.
But the infiltration of a notorious Communist and his satellites
into the leadership of Local 248 prevented the norm al development
and, instead, made collecti ve bargaining merely an instrument for
communist-inspired strife and de struction.
During the entire reign of this communistic leadership, which ended at the termination of the eleven-months' strike in 1947, the union
shop of the old type was the demand which formed the basis for
every strike during that period.
Communist Demand
There were two important purposes of this communist demand for a
union shop.
Through the requirement of etgood standing" under that type of
union shop and the use of kangaroo courts, the communist leadership would have obtained a coercive domination of our employes.
In addition, the communist leadership would have been able to
un dermine managemene s control of Comp any operations.
The Company's position has al ways been and will continue to be
that a man's job at Allis-Chalmers will not be determined by a "good
standing" rul e with the possi bility of kangaroo court administration.
Strike Principles Recalled
In the light of its traditional policy and the dangerous conditions
arising out of communist leadership of Local 248, the Company
adopted its firm po sition, "No employe's job at Allis-Chalmers shall
depend upon mem bership in any union."
That slogan was aptly applied during our eleven-months' communist-instigated strike in 1946-47.
The principles at stake in that strike were two-fold: First, preservation of the civil liberties of our employes, and second, protection of the Company's right to run its business without the destructive influence of communi st control.
These principles will always be maintained.
NLRA Establ ishes Principles
The Union has asked that the Company consider negotiation of a
union shop clause. Two important events (one of which has just
occurred) make possible the consideration of a modified union shop
consistent with the maintenance of the foregoing principles.
The first event is the passage of i.he 1947 amendm ents to the National Labor Relations Act, which establish three important principles:
First, it makes illegal a collective bargaining agreement which
requires discharge of an employe for failure to maintain ft good
standing" in the union, thus eliminating the possibility of kangaroo
court inj ustice.
Second, it legalizes a collecti ve bargaining agreement which would
require employes in the unit to pay dues and initiation fees and thus
bear their fair share of the expenses of their collective bargaining
agent; and
Third, it prevents the establishment of even a valid union shop
under the Labor Act without a majority vote of all employes in the
bargaining unit in a secret ballot referendum supervised by the Na'"
tional Labor Relation s Bo ard.
Oed s ion Ha nded Down
The second important event is the very recent decision of the N a"
tional Labor Relations Board that the Company need not rehire em"
ployes who played an important part in the activities of the communistic clique which controlled Local 248.
The Company is not concerned with that part of the Board decision which sends to a Board hearing the claim of six employes. V/e
are confident that no court would require the re-employment of these
men after full consideration of all the facts.
Keen students of labor relations vigorously urge that, when a
union has security against financial distress and possible loss of
membership, an atmosphere is created which is conducive to the
achievement of a constructive relationship between the union and
the company.
Fears Understandable
The union's fears are understandable. Furthermore, no one can disagree with the desirability of creating the atmosphere conducive to
a constructive relationship between the union and the company.
The Company's position has always been that an employe's decision as to union membership was a matter of his own private business.
So the problem is to work out a solution which will give proper
consideration to the Union's fears and the Company's traditional
policy as to freedom of employe action.
Three Groups Considered
Considering the problem in the light of the Company's policy, the
positions of three groups of employes must be considered, namely,
(1) future employes, (2) employes who do not belong to the Union,
and (3) employes now members of the Union.
So far as future employes are concerned, there is no problem.
There is no essential unfairness to them to establish as a condition
of employment that they join the Union and assume financial respon<>
sibility for paying initiation fees and monthly dues. They are free
to refuse employment if they do not care to accept such condition of
employment.
Situation Different
But the situation of the other two groups is entirely different. -Those
employes accepted employment on the basis of the Company's policy
that there would be no discrimination against any employe because
of mem bership or non-mem bership in any union and that mem bership
in the LInion was a matter of their own- free .choice.
For that reason, the only solution consistent with the po sitions of
the Union and the Company is a plan which contains the following
principles:
1. The plan must be· conditioned upon the majority vote of all
employes in the bargaining unit as re quired by the present
National La bor Relations 'Act;
2. Each new employe shall be requi'red, as a condition of employment, to become and remain a member of the Union:
3. No present employe shall be required to join the Union;
4. Every present mem ber of the Onion in good standing shall be
required to continue his membership unless he elects to resign during an escape period of five working days; and
5. Loss of employment with the Company, so far as Union membership is concerned, shall occur only for non-payment of
initiation fees and monthly dues. (General assessments will
continue to be a matter of voluntary wage assignment, as under the present contract.)
This plan reflects fully the Company's stated policy of nonadiscrimination and voluntary action by employes.
Majority Vote Needed
The plan cannot become effective unless a majority of the employes
in the bargaining unit voluntarily vote for its adoption. Furthermore,
even if the plan is adopted, no present employe is con:pelled to become or remain a member of the Union, and every future employe has
the right to voluntarily accept or reject the condition of employment.
In each case, the decision of the employe is reached in accordance
with his own free will.
Likewise, the Union's position is fairly recognized by making
possible the achievement of a 100 % membership of employes.
All of the foregoing is predicated upon the important principle
that the affairs of the Union shall be conducted in accordance with
democratic principl es and practices.
The Union itself, the employes who are members of the Union,
and the Company have a definite interest in preventing the control
of the Union by any subversive group soch as the one which created
the long period of ill will and disruption with great financial loss to
both employes and the Company.
Assurance Obtained
The Union members are entitled to the application of this principle
as a matter of right in a democracy.
The Company is also entitled to the application of the principle
from a realistic and practical standpoint. In other words, if the Company assists the Union to gain security (and power) through a clause
in a contract with the Comp any, then the Comp any fairly has the
right to receive assurance by a contract provision that the power
which such security would provide will not be misused by a subversive leadership to the detriment of the Company or the employes.
This assurance can only be obtained through the full and complete
particip ation of all Union mem bers in the conduct of Union affairs.
The exact contract language for effectuating this principle, without improper interference in the conduct of Union affairs, will be
presented in contract negotiations.
It is our sincere hope that a contract clause can be negotiated
which will inaugurate a new era for the mutual benefit of the Company's stockholders, employes, customers, and the communities
served by them.
HANDS ACROSS THE TABLE mark the signing of a five year labor agreement
between Local 248 UAW-CIO and the Allis-Chalmers t.1fg. Co. Union negotiators
are seen on the left side of the table while Company representatives are at the
right. The signing was preceded by daily negotiations, including evening sessions, which began on June 19. The final session lasted more than 30 hours.
MAIN
OFFICE·
BOX
512
• MILWAUKEE
1, WIS.
WALTER GEIST
PRESIDENT
June 30, 1950
TO THE MEN AND WOMEN OF
ALLIS-CH'ALI'w~ERS:
Dear Fellow Employes:
This letter, I am sure, contains the best kind of news to
every member of the Allis-Chalmers family. It is my firm
conviction that the cloud of labor strife, which hung over
the West Allis Works of our Company for so long in the
past, has been removed. Through the use of sound collective bargaining, Local 248, UAW-CIO and your Company have
been able to reach an agreement--not for one year, but for
five years.
After what we have gone through, it would be unnatural not
to rejoice at the feeling of security that such a contract
brings---not only to you, but to the union, your Company,
our customers and stockholders.For those of us who went through those long years of labor
strife fostered by the communist-dominated leadership, it
just doesn't seem real. In this letter I want to give you
brief high lights of the settlement at the West Allis Works.
I shall send you another letter shortly which I hope you will
take time to read and study, because it. will explain in detail the whys and wherefores of the new agreement.
Soon after the Chrysler and General Motors settlements, the
tempo of our bargaining negotiations went into high gear and
it must be said to the credit of the men on the union side
of the table, as well as the men on the management side, that
the meetings were devoid of bitterness and name calling.
In the earlier stages of our negotiations, we were disturbed
by the contents of union flyers which made charges and inferences against your Company that we felt were unfair and
unwarranted and not conducive to constructive bargaining.
This picture changed, however, when Mr. Livingston, vice
president of the UAW-CIO, came into the negotiations. He
suggested that bygones be bygones, the slate be wiped clean
and a fresh start made with both sides having faith in each
other while mutually attempting to work out the contract
details in a friendly cooperative spirit.
-2It is my sincere hope that the good feeling and the experience of mutually working together with no attempt to undermine one another will continue throughout the five-year
period of the contract agreement.
I again want to congratulate the men, representing the union,
for their forthrightness and fair play, and I congratulate
our management negotiating committee for continuing to carry
out their policy of being fair and honest in their approach
to the problems of employes and their unions, ·at the same
time, preserving those rights of management which are essential to the profitable operation of our Company.
Here then are the high lights of our settlement at
with Local 248, UAW-CIO:
We~t
Allis
Mutual Security
A mutual securities clause that establishes a
modified union shop similar in many respects to
General Motors. Under this clause all new employes will become members of the union-rDr the
life of the contract agreement. All present
members of the union, who, after a five-day escape period remain in the union, shall be members
of the union for the five-year life of the agreement. All employes not now members of the union
must, if they choose to join the union remain
members for the life of the agreement. In keeping with my earlier statement of policy, employes
now on the job shall have the free choice to join
or not as they see fit. In accordance with the
provisions of the law this clause is subject to a
secret vote to be conducted by the NLRB on Company premises on Thursday, July 6, 1950.
Wages
A general, across the board, 3¢ an hour increase
will be given immediately to all employes- in the
bargaining unit represented by Local 248, UAW-CIO.
A year from this date·another 3¢ an hour increase
will go into effect.
Some wage ctdjustments will be made for certain
classifications.
Wages will be adjusted every six months in line
with any changes in the cost of living, based on
the Consumer Price Index of the Federal Bureau of
Labor Statistics. Adjustments will be·made automatically upward or downward. With each change
of 1.25 in the Index, a corresponding l¢ an hour
change will be made in the wage rate.
-3Group Insurance
An increase in the group insurance mlnlmum from
$2,000 to $3,000 has been made with the premium
reduced from 60¢ a thousand dollars per month to
45¢. We affirmed the existing provision, making
it possible for employes who retire under the
terms of our retirement program and have been with
Allis-Chalmers more than 10 years, to continue
to carry their group insurance policy.
Vacation
We have amended our vacation plan to provide for
a three weeks vacation for all employes with 15
or more years of continuous service.
Pension
A previously announced master pension plan offering $100 per month maximum pensions, including
federal benefits, to employes retiring at age 65
years with 25 years of service. This plan covers
em~loyes represented by the UAW-CIO at West Allis;
La Crosse, Wis.; Springfield, Ill.; Pittsburgh,
Penn.; and Gadsden, Ala., plants. Included under
the program are those employes who. retired since
1942 on special leave.
Mutual Aid Society
Recognition by the union of the merits of the increased health and accident insurance benefits
made available to employes through the Mutual Aid
Society earlier this year.
There is a no-strike provision during the five years of the
contract. At the end of the second year, the parties may continue the 3¢ per hour for each of the three remaining years,
or either party may ask that the contract be opened for wage
negotiations.
So that you might be fully advised as to the motivating philosophy behind this settlement, look for my follow-up letter
that will be mailed you within a few days.
Obviously, pension and vacation plans along with wage adjustments, are being prepared for those employes not covered by
collective bargaining units.
With continued best wishes.
Sincerely yours,
President
MAIN
OFFICE.
BOX
512
• MILWAUKEE
1,
WIS.
WALTER GEIST
PRESIDENT
July 1, 1950
TO THE MEN AND WOMEN OF ALLIS-CHALMERS:
Dear Friends:
During December, 1948, an editorial appeared in the Milwaukee Journal captioned, "A Miracle on South 70th Street." It
reviewed the negotiations, resulting in the first contract,
between your Company and the new officers of Local 248, UAW-CIO.
It seems to me that it can be properly said there has been a
second miracle on South 70th Street.
The representatives of Local 248, UAW-CIO and your Company's
negotiating committee set a pattern of conduct that I hope
will continue in all of our labor relations experiences with
that Union in the future.
It was this wholesome respect and mutual understanding that
just led to an unprecedented development at West Allis---a
five-year contract.
It was our belief---and I hope rightly so---that our employes
would welcome a five-year contract. It does provide a degree
of stability and security. It contains security provisions
for employes, the Union, and your Company. But it is safe to
say that the greatest security benefits accrue to the employes.
In addition to five years of labor peace, the employes derive
many other benefits. These were outlined in my letter of the
other day. The whys and wherefores of the economic provisions
hardly need an explanation, but perhaps an explanation of our
philosophy on the modified union shop is in order.
All of us are acquainted with our bitter experiences over a
number of years with the former leaders of Local 248 and their
communistic philosophies. This group constantly demanded union
security through a union shop. Not only did we announce our
policy that "no employe's job at Allis-Chalmers shall depend
on membership in any union" but under no circumstances would
we have considered even a modified type of union shop because
of the performance and philosophy of that union leadership.
Two important events, however, one of which has just recently
occurred, made it possible to consider the present Union's
request for the consideration of some type of union security,
upon which would depend security for the employes and your
Company.
.-,2 -
The first of these events was the passage in 1947, of the
Taft-Hartley Act which established two important principles.
It makes illegal a collective bargaining agreement which requires discharge of an employe for failure to maintain "good
standing" in the Union. In this way the possibility of "kangaroo court" injustice is eliminated.
It prevents the establishment of any type of" a union shop
without a majority vote of all employes.in the bargaining
unit in a secret referendum supervised by the National Labor
Relations Board.
The second important event is the very recent decision of
the National Labor Relations Board that the Company need not
rehire employes who played an important part in the activities of the communistic clique which controlled Local 248.
The Company is not concern~d with tha~ part of the Board decision which sends to a Board hearing the claim of six employes. We are confident that no court would require the
re-employment of these men after full consideration of all
the facts.
Mapy students of labor relations believe that, when a union
has security against financial distress and possible loss of
membership, an atmosphere is created which is conducive to
the achievement of a constructive relationship between the
union and the Company.
The union's fears of insecurity are understandable. Furthermore, no one can disagree with the de·sirability of creating
such a wholesome atmosphere.
The Company's position has always been that an employe's decision as to union membership was a matter of his own private
business.
So the problem was to work out a solution which would give "
proper consideration to the Union's fears and the Company's
traditional policy as to freedom of employe action.
Considering the problem in the light of the Company's policy,
the positions of three groups of employes had to be considered, (1) future employes, (2) employes who do not belong to
the Union,. and (3) employes now members of the Union.
So far as future employes were concerned, there was no problem. There is no essential unfairness' to them to establish
as a condition of employment that they join the Union and assume financial responsibility for paying initiation fees and
monthly dues. They are free to refuse employment if they do
not care to accept this condition of employment.
But the situation of the other two groups was entirely different. Those employes accepted employment on the basis of
- 3 the Company's policy that there would be no discrimination
against any employe because of membershi or non-membership
in any union and that membership in tne ttnion was a matter
of their own free choice.
For that reason, the onl.y solution consistent with the positions of the Union and the Company was a plan which contained
the following principles:
1. The plan had to be conditioned upon the majority
vote of all employes in the bargaining unit as required by
the present National Labor Relations Act;
2. Each new employe shall be required, as a condition
of employment, to become and remain a member of the Union;
3.
Union;
No present employe shall be required to join the
4. Every present member of the Union in good standing
shall be required to continue his membership unless he elects
to resign during a short escape period;
5. Loss of employment with the Company, so far as Union
membership is concerned, shall occur Onl! for non-payment of
initiation fees, monthly dues, or genera assessments.
This plan reflects fully the Company's stated policy of
non-discrimination and voluntary action by employes.
The plan cannot become effective unless a majority of the
employes in the bargaining unit voluntarily vote for its
adoption. The election will be held on Company premises
July 6 under the direction of the NLRB.
The Union's position is fairly recognized by making possible
the achievement of a 100 per cent membership of employes.
All of the foregoing is predicated upon the important principle that the affairs of the Union shall be conducted in
accordance with democratic practices.
The Union·, the employes who are members of the Union, and the
Company have a definite interest in preventing the control of
the Union by any subversive group.
The Union members are entitled, as a matter of right in a
democracy, to the application of this principle.
The Company is also entitled to the application of the principle from a realistic and practical standpoint. 'In other
words, if the Company assists the Union to gain security,
then the Company has the right to receive assurance that the
power which such security would provide will not be misused
by a subversive or irresponsible leadership to ~he detriment
of the Company or the employes.
- 4 This assurance can only be obtained through the full and complete participation of all Union members in the conduct of
Union affairs.
As long as we have a certified union, then I would urge the
employes in the bargaining unit to accept the responsibility
of making it a good union.
The Union recognized this democratic philosophy and agreed to
contract provisions which called for all elections of officers
and stewards to be held on Company premises, on Company time
and at Company expense. This is an unusual and a most important development.
In addition, it is hoped that the following provision will
never have to be used---in event of a possible strike referendum, during a period of wage reopening, a strike vote by
secret ballot will be held on Company premises.
This approach to democratic processes is a credit to the
Union. It should go a long way towards convincing those who
might be skeptical that the affairs of this group are now being run on a democratic basis.
I sincerely believe that many phases of this negotiation represent marked advances in the field of labor-management relations.
I have great hopes that there will be many years of harmonious
relations between your Company and Local 248. We are happy
that we have enjoyed long associations of harmony with a number of other unions both at West Allis and elsewhere.
I can't help but feel that as the Union carries out the philosophy that was exemplified in thes,e negotiations it will continue to grow in stature and ultimately gain unanimous support.
However, success of that kind must be earned, and I sincerely
believe that the leaders of the Union recognize this fact.
But, the same holds true for management. I can assure ·you
that we will conduct ourselves as to always merit your full
confidence and respect.
Again I should like to personally acknowledge my appreciation
for the splendid spirit of cooperation that was exhibited
throughout the negotiations. I sincerely hope our employes,
through their representatives in the Union, can look forward
to a new era in labor relations, at West Allis in our dealings
with Local 248. In the light of our unfortunate experiences
of the past, I think it is safe to say we have earned this
new opportunity. We have made a wonderful start, and I hope
that the road down which we are now traveling will have no end.
I will continue to keep you informed.
With best wishes,
~~
President
ht
Outlook Brig
In
ith 248
W
t
c
a
P
C
rs Signs
5·Year A
Allis-Chalnle
it h
..,
-....
-~--'----~---
C o n tr a c t W
e s H ik e d
UAW, Wag
5- Y e a r
c R a is e s
A u to m a ti
tr ac t
P ar t o f C o n
W or ke rs at
ers 10 ,0 00
ov
C
t
ac
P
s P at te rn
,·
P la nt ; Follow
W es t Allis
t
ee m en
O f G M A gr
OR "~ L
ET JO
LL ST RE
Ta ll WA
Sp ec ial to
ha lm er s
M an uf ac E - Al lis -C ar co nt ra ct w ith
ye
M IL W AU KE
e.,
fiv
a
ke rs , C.I.O
sig ne d
tu rin g Co. 8, Un ite d Au to W or pl oy es at
24
n em
tio
uc
od
.
Lo ca l No.
pr
isc
g 10,000
t Allis, W
re pr es en tin 's m ai n pl an t· at W es ril of th e
tte
ny
pa
pa
e
m
th
co
e
th
ct follows
Th e co nt ra M ot or s ag re em en t.
wi th
ra l
ne go tia tin g tio n
re ce nt Ge ne
od uc
ny is sti ll
The co m pa tin g ab ou t 9,000 pr of the~e
es en
6,0 00
un io ns re pr ei gh t pl an ts. Ab ou t pr es en te d t> ••
.
em pl oy es in fo ur pl an ts, ar e re
employes, .in
an te d to
.-C.I.O
benefits gr ao m in th e U.A.W
e
nc
ra
su
l
in
W ag e an d will be ex te nd ed to al as ot he r
well
be rs
un io n m em d office pe rs on ne l as union, Al lis .
a
an
e
by
d
Is tra tiv
ou t 10,000
t re pr es en te
~ pl oy es noid . Th e co m pa ny ha s ab
~~~~em
i!!~-.!!~~
al m er s sa
ll
Ch
JU
lD
30, 1955.
hl
er s.
4-..J;
pi re s Ju ne
su ch wo rk
ns af te r
=--e'"---re em en t ex
Th e ne w ag m ay re op en ne go tia tiodi sc ip lin .
or
side
ov er wa ge s
Bu t ei th er
es
ut
sp
di
on
tw o ye ar s
ye ste rd ay .
ar y cases.
e ef fe cti ve
I I
Th e co
V /1 l
Ch ief Pr o
'A ~ •/1
Op
Th es e
Iq/1
IY f q
A th
1/1 q . S .A
I/1
cr ea se
"" ..
I~
th re c- c
Z'he
OSO
th e co
I llil ~
odified
l1l
i13
J
sa
o
th e s :o t l'aCt th e 13 lJ1] i
e~ I
op PI'
sh
_
e P 013
II~
-'!
~
I re op
ldaIl1l o. oV
s b~Sll1lai1]~
th e to~ll;Y'/Oil C Ph il /lls "t Ch
fo r
r
e co ::; s
Th e P6 i fill
r
b:soPh;y
bo
l1l
La
1le
dJtl
Ol
~l'
d
in g J.Jra~te ist ill a 'l'sltJp,, , lll'eg s ad Ju st~a
Ge
ea Z'heel' al J' COl1lp state1l1 it b,}' s.
Cl
],}' Pl'e e~t
S ~OI'1re
t;e, if a1
ce mini.~iII l'el's • frO ig 1]eJr~PPI'O"eSlde1]t. premIUm
'
a
1l'e
glJ
the
Z'hlJ d b,}
;Oi1]
e~
13
I
$1,000 of
flll io
Y e a r Labor
d
P a c t Reache
Sh
8 slC P'h'f
q
o
Pi
C
h
'P Y
t
tbPl0J'rn
13;;it/Ji1]
3t.
o~Ot l1lel1l:1el'
s ~iI
e 1]Ot.
~l1lPlo,}'::dtlJ',
to
gr an t
eS e1] t 0 da;ys
lo Of pl an
al'
be f1' e1JJP es or e of con
b 1>l'e8e1]/
i'
1JJ
to
l1le
ee
1l
JpI
l'el
e1'8 ~iII e1J o;Yes ~~i1] at io n.
l'e
fi" e ai1] i1]
Ju~
esgoOrt /fit be 1 glJil'ed 0 nc ed onth . IJ
the,}' da,}'
a1]dJ1
a m on
af te l' to 0
a,}' I cape l'iO d
/J:]
l
',
tm
si!
de
re
ea "e tte
~hicha pJoyes
G e.
e lJllio1] 11
i'
n th e A lli s il' eis t cl al
,}' .
ee
the
s
tw
if
I
as
be
w
uI
'Id ay
l fa
i
co nt ra ct
us e th at req
f gn ed Fl
t, an d lo ca
to ttb ed th
wl th m
ct ur m g Co o~ Its W es t ALlis pl an th e ag re e ~ho ~a,}' pte l'e at PI' 8 ~a8 t e
' e um on
'b
Sl gn m g
basi/fl aCCe
1]t e1JJh 01]I,} m on em pl oy es
rs
Se
e
te d A ut
loe
ke
Id
or
JJP
es
e1
W
;;
s
n pr
Ie
co
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IO
o
un
Plo
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om
th
t
I
ca
st
ar
1]
lo
if t'
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a Pa
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Oe ft) ,
th e un io nfive d
es Sc hu ltz re la tIo ns fo r th e co m P~~beIe:ft ta t JO illl a1
t1 ] the
:::~
]g t/J /O lic ,}' 1] the m em be rs
:~
f,1
la bo r
..
ill'
of
..
illd
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er
0
-=
ag
an
:--=
rtlJai lJllio ll ~OlJld Ju ne 30, to u
- -_ _
E
h'
['--cb.oice•
r m ai n ta m
would provid fro m t
rty s u c
te
y
pa
af
rrt
ist
c!1
un
se
m
b
ive
of
t
on
e Co m
b~ SUbversth e fro m th e umo
s a co nd iti
hi e :ll1SUsed
947."
se ss m en
de trI m en t of
ea rly ha d ~S
du es an d as
e co m pa ny tio n fo r pa ny p °t~he pl oy es ."
condl
be
to
ials
or e em
pl oy m en t.
th e fo un da um on e.
union offic
ApprolWh'
El ec tio ns ofem ise s.o n co m pa ny tim j'
on str uc tiv e nt ra ct m
10I'ment of
."C
0
pr
is would
m pa ny
th
th e co
ng " at
co
ni
at
id
ai
on
th
sa
rg
d
ba
ist
Ge
t ve
id it ho pe ns without" th e d
r ou r em'
t "t he in tio
Ch al m er s sa
\\ecn'1'ban\1lt,:Sd"'1 \~. or ks buSU
ne w er a fo
s an~IOYes m or e de m oc ra tic el ec ffi ng ba llo t boxe
bversive "a
sto ck ho ld er
s
o.rlOus
cu
,a
n,
\
PS stu
\.
io
~1
e'
un
~\
"v
f
:e
l
de
tb
~a
- - ch
er siv e grolJ Al lis -C ha lm er s prel
at
tI
bv
he
ot
su
v~
,\l
of
~~
b"
I~
a
ist,
g
a nol
of
t)~ ;J~\l;S t an~ ~ thIS er s." dei
..L--+1- .Ii n
W al te r Ge
tra tio n ofto th e
,..---.
el eC t\: " Tigb.l:d; e1\t
He sc rib
"T he in fil
ih
me
' ee.s~:: ~\e
te~d ~
i
f'
explained,e an d hi s sa te lli te s th e norn
eO e\el:~
ft 0'11 ~oe
a~~
b
o
tl
ob
_
_
S
:
y
re
In te
1\
01
d
o
~siv
\\0
,\
te
o
er
./
\11
O
ev en
su bv
ll\1\ ~tn\
sb \' e
. ommuni
tte\at\OllS
ca l 248 pr
collecti1
10 ~...., a
gr le
a \11\\0 rvel:
sh ip of Lo an d in ste ad lr' ld e nt fo r (
: ",,,,teb~1\~
C
6.
e~ \,\ ac es "g\1\~ tiot\&\ 1,,1l t~e ",\lleO<tb st '~"1 ten
\)~e'PbotO
eTi
el op m en t el y an in!litr~leme
Ted
.v
zs.
"i'
TIM
1<
u
Yo
1.4
.T\
er
jIt
S.
TJn: NEW
str uc tio n. '
s.n '
ga in in g m
"'Ot\1\~actu e 1<& st ., of
.
Sp eci al- to
ne 3 ~ m at c
rik e an d de
~95l'l 0 1.~
~& .. coTO\'
t tb
E, Wis., Ju
a 1\
e\(, SS'1
-in sp ire d st ed
or
~
lIt
st
tb
ll
ni
Til
~'1
M IL W AU KE pr es id en t of Allis- th e
.
1<
'
ict
0, ,0
e lie ag o, ~5'1
l Conv rre d to Ha ro ld Ch
A
ist,
",,,,\1\(e
Ch ris to ffe
re fe
W al te r Ge M an uf ac tu rin g Com- w or k
o ,
. Cbe.\tn el ~1I0'" oz.. Job1\ ",\ ee '"
.
M r. Ge ist
ng
~
\,
ca l 248, wh t '
\e
ni
s
\01
~r
er
sig
\'
m
1\1
e
ge
al
\\a
th
~O
Ch
y
id en t of Lo
ur
ra l a
~oll;rd.
st rik e
a
.
un ce d to da
or m er pr eS ry by a fe de ra l co i'
}totlfl
yb
pa ny , an no ar la bo r-m an ag em el lt w~ge r
lle
rju
;JO
m
pe
p
d
~
e
ye
io na l co m
i~ted of
lti on of em
}te\ttot\Ollll
_
24 8 of th en d of
of a fiv ea co ng re ss
al so pr oCo
al l
.
ith Lo ca l
ar an te ess a c
ag re em en t
ym g be fo re d ne ve r ha d been a e!
·
Gu
oP
e
sh
oy
n
pl
co nt ra ct w m ob ile W or ke rs , C.I.O co nt ra ct .
io
Em
agreem
ed un
s no~ an
pr oc es se s"
GM m od Ui nt in th is co n- e wa Ge ist added, "T he pl py es .. tJ
e
Un ite d Au to ct , wh ic h m us t be ap
"d em oc ra tic ar an te es to
Th
A
n
ee
em
Mr.
e gu
at io ns be tw an d 'fi de d fo r a
Ch al m er s ne w er a fo r ou r m er s We be
Th e co nt ra un io n IlIembers, in - EN D S
;t~~~~~ th es
nifiCa
on
Co.
th e
ot i
an d cu sto
c'
wh ic h II
It w as sig th at AlliSpr ov ed by
Th e ag r
of ne g
d to
se s wi t
oc kh ol de rs m ut ua l secu~lties
es
ke cl au se
ar
oc
tri
ye
.
pr
-s
6
e
A
fg
no
rik
M
ly
tic
a
st
s
a
ne et lo n wi ll vo te Ju
el
h th e
a fln
ing a
halmer
clu de s
we havi
De m ?C ra
re sp ec t to
cept follOW one con- of
h. AlUs_CU A W _C Io ,a pp ea re . ,
n shoP, ro ug co nt ra ct prOVisions
th
e
e:K
io
wi
e
g
un
rc
a.
on
ss
rin
fo
e
d
se
fe
Um
a.y
e
in
sd
de sir
0 of union officials anth p t ~ "4 8
de.i1y
by er
ch in of
du rin g th
!im ax Th ur co n- wo rk er s
co nd uc te d
g 0
tlv e ap pr oa
re fe re nd um in g pe rio d allow,ed in
t~0!ls
em be rs in ~n~~
th ey tlo n
L oc al .. ,
of a ne w
l pe ac e an
'Dela- strt·uc
e- cl ud ln h
fm
er
ia
t
re
th
no
en
str
c
ag
he
io
op
du
e
w
a
at
re
in
e
th
g
lp
tlc
tra ct
,.
ni ng .
u Ion to
be neari~
in t elec Em pl oy men
pr o- th ro ug
af fa irs of th
ar te rm of
. na1 La - te d pr od uc tio n. "
mpletl~n m or
nd In a Jo
th e fiv e- ye-a ffe ct s th e 10 ,00 0 Allie- Fi na l a
du ct of . th e Po sit iv e m et h
ce pr es i
wi th th e co ed Fn da y
.a
ns in
e
Vingston vi
'
m en t. It
to proVlde n m em be rs ' ca n p~
s at thAl
ab ou t 3 p.
m pa ny a d _ th e W iS coar d an d th e Na tl0
pe ct
er
ex
rk
Jo hn W. Li an d dir'ector of
ct
.
wo
ry
lis
t
n
Bo
un io
p
co
es t
y
tio
du ct io
W
th
O.
eb
om
za
.I.
in
er
bo
d.
C
ni
r
~
t
ra
ar
.-C
ga
wh
of
de
an
or
.W
pl
s la tio ns Bo
t on
ia ls
ei r
, un
~n
, sa id ,
on
en
m
th
fic
op
on
ss
m
co
sh
Of
?f
isi
m
e
ce
l
n
co
tro
diV
ne
Th
Ch al m er s ifi
b
io
bv
to
t
io n
ad ed
ed un
un ed
~eYnta con
e gr ou p.
n th at ti R
ic at io n is
im pl em en op po rtu ni ty fo r
A m od oy
ar e no t unjoin, he tio ns
su erdslvth
on :m de r
t It is kn owee tin gs bO~ ~ ra tif
ns
la
pl es wh o
th e p
t af fo rd s an
pa ny ag re~ ld at su ch el ec tio e
tm
shOP pr ov lsi
wh ic h em ar e no t re qu ire d to un io n re
uniollo de c
tl
t be tw ee n
bu d ni gh
f u~e un io n in co nt ra ct s, 1 8
ts,
en
of
would be ~ on co m pa ny tim
t
pm
ua l re sp e,ay be th e foun
lo
os
m em be rs d. M em be rs of th e e- da y re se nt a
ut
ve
m
de d
aY
lu
ay
~:
w
ss
is
Ok
0
m
lo
er
em
fiv
ab
z,
de
t
be
d
It
a~
a
pr
ult
ll
ou
y
ra ih wi ll th at
an d
Is inclu " re sig n 4u rin g
e."
an d fedeo'f
th e E>ch Pr e
s an wi th
'tn te ns iv e da un
id ed
es
la sti ng pe ac
be t~n:tate
no w m ay m ed ia te ly follOWing
of pay.
ef- Vice
n of em pl oy
wll1 be pr er s w : bu t g an d d, "T he es ca la to r ;
ha ve be en
em en t we re
pe rio d im ag re em en t becomes
rk
ed bO ts
do m of ac tion actiVities.
de
ekth e ag re
La wr en c
nt
ee
ad
wo
e 1
n
hi
we
Fr
e
00
sig
st
as
2,0
til
la
w
-re
e
t
e
pl
un
io
me
it
th
t
ing, us th ov
to un
do no
da te th
Ball~o ca tio n ne xt we e
ht
in rel~tlon
di re ct or
e. c.ost of liv
Th ol e Who
Te rm s ofbl e b~ m ay re se m bl e
im pr
n m em be rs
wi th th e rig
ffICtlve:. er
,
. Im pl em e
t· fo r on va wll1 no t be taUi~eted. e m zm g th e an nu alea n mol'
fte r re m ai
nkt.erference
ll.
se
orI
ea
ail
s
wO
av
or
th
t
ot
toN
t
no
M
m
s
m us
e vo te
ing th od uc tlo n ca n
nt ra er a!
ion.
re qu ire d m an , dl r
a se cr et
e ou ~ ~:es cti on its el f is comP
of tb e un
th at th e co
'th en
e at lo we r
es wo ul d be
t of a str ik e,
ty th on y A
h ele
~~AW_CIO.Th
ay m or n ill em - will be av ai la bl
In th e ev en re nd um ; to be he ld
Ne w em pleoyun io n wi th in ni ne
th e rece~~ tu re s of th e G ar t ~f Signed i'r ld
y
m
pa
fe
re
th
d,
ct
'
te
re
ra
g
iv
tn
hi
vo
nt
n
at
~
se nt
to. ~o te r th ey ar e
ur i
ba llo t
er s co
I.
its fiv e ye
ue m ent
ne
a
on
Al lis _C ha lm to t\1e
y pr em ise s d
m en ts u a
da yI 'af
To tl
c Coa.st Lia- ~
on C~mpan s at co m pa ny ex st an di ng fe e~ns~on and. he al th
an d as se ss
itted
.dt ng
unloa dqee
ho ur
g
of be sUl)mfo r ra tU ic at i
en t v;
ge
-L in e toa
~n
. b~.1
m
em
wa
s~
re
tk
ste
al
;~
ag
We
Sy
~u
a.
e=
hi p
r9~~ ~§:93 21,
i:
rs
an d
ta
~~
be
2Y
n~
~~
~N
in
g
~~
ug
s~
_
rin
~e
.~
t.
31.
t
+
.~~:d ~(
~~
er m , ~~
·...tm en
10.~27
nases du
r
rt E ."
SIGNS
t' • I• 0 . LOCAL IS PACT
S-YEAR ALL
"
'I "
t
248
d
A -C an s .,n9
"W N
9n
·
'
r
p t "
d
t
0':.
'-
LITHO IN USA 0.50