University Daily Kansan
Tuesday, December 12, 1978
5
Teamsters talks to start, terms uncertain
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WASHINGTON (AP)--Like a long-awaited Broadway show, contract talks between the Teamsters union and the trucking industry open this week. But the actors don't seem to have all their lines together so one is sure what turns the plot may take.
Will the nation's largest union adhere to President Carter's anti-inflation program? Will a wage-fringe benefit increase strike? Will the country be spared a disruptive strike by 400,000 Teamsters? Will the government pay a higher rate as a critical test of Carter's inflation fight?
The answers will unfold as bargainers work toward a deadline of March 31, 1979, when the current three-year contract expires.
The talks formally open Thursday with a one-day, ceremonial exchange of general contract proposals that contain no specifics. Then, on the two sides will recess until January.
THE NATIONAL Teamster agreement traditionally is one of the most important labor contracts. An even brighter spotlight on the talks this round because of inflation.
In the past, the Teamsters have won lucrative contracts that have set a wage pattern for other unions. And because trucks haul so many goods—from food to petroleum into the cost of a Teamster contract figures into a broad range of consumer prices.
But now the administration is determined to end the costly contracts that have made Teamsters among the highest-paid hourly workers.
The current Teammate contract raised wages and fringe benefits by more than 11 percent a year. Today, the average Teammate is paid by the national contract about $8.40 an hour and grosses about $20,000 a year, according to government figures.
Several months ago administration officials began meeting with Teamsters and trucking industry officials to stress their desire for a less costly settlement.
So far, 70-year-old Fitzsimmons has refused to pledge his union's compliance with the government's wage guideline. Administration officials are using sweet talk as much as anything else to cajole the union into compliance with the program.
Carter's wage guideline limits to 2 percent a year increases for wages and fringe benefits, such as health insurance and pensions.
But Fitzsimmons has said fringe benefits—which often eat up a third or more of contract costs—should not be counted in the 7 percent figure.
ON FRIDAY, Carter's chief infiltration fightler, Alfred Kahn, praised union leaders as "patriotic and socially responsible" and warned the teammates to cooperate.
In response, the administration has agreed to consider exempting some cost increases required to maintain pension and retiree benefits at lower levels. A decision is expected Wednesday.
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"We want to see what the economy looks like, what's happening to prices first," Ray Schoesling, Teamsters secretary-treasurer, said last week. He said the Union Bank of America and Carter Curters' program was slowing infaction, which now runs about 10 percent a year.
This could free more than one percentage point of the 7 percent guideline for wages—a particular relief for the Teamsters, which may need a large increase in contributions
UNION DEMANDS will include higher wages and benefits and more time off, but Teamster officials insist it too early to decide how to address the situation, decide whether to abide by Carter's guideline.
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At a meeting last week TeamMasters leaders distributed copies of proposals to be presented to the industry at the opening of a new facility. Prentice obtained a copy of the proposals, which included changes in many areas of the contract but not economics.
to its Central States Pension Fund, the target of federal charges of mis-
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Specific proposals on money items, the union document said, "will be submitted for negotiation of negotiations" and will be "sufficient to maintain and expand real purchasing power."
industry payrolls--that could be spurred by a costly contract.
Meanwhile, the union will be feeling pressure in pushing for a contract that ignores Carter's guidelines, while there also is a growing trend of non-union workers—now about 30 percent of
The Interstate Commerce Commission, which sets trucking rates, has warned it will not automatically approve rate increases that would cost an expensive contract to consumers.
Industry officials say Carter aides have been urging the companies to firmly resist high wage demands, even if it means a strike.
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RETURN ENGAGEMENT OF CBS RECORDING ARTIST
MORNINGSTAR
THIS THURSDAY December 14th OPEN AT 8:00 P.M. SEATS WILL GO FAST!! DOOR SALES ONLY!!
$2.50 General Admission $2.00 7th Spirit Members
The Lawrence Opera House
Take a Break from Finals!! Rock Thursday evening away during this special dance concert. also introducing
THE GARY CHARLSON BAND
Morningstar will be
previewing new material from their upcoming Second Album on CBS records.
7th and Massachusetts