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March 24, 1955 - Image 5

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Michigan Daily, 1955-03-24

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9
THURSDAY, MARCH 24, 1955

THE MICHIGAN DAILY

rAGF FIVE

NAZARETH TO CUBA TO FLINT:
Superlatives Describe Ex-Judic Head

Annual Wage Plan Assures Worker of Income

By JANE HOWARD
A dapper mustache (which he
won't shave) and a name familiar
in most corners of campus identify
Tawfiq Khoury, Grad., to his ac-
quaintances.
But to most people whose paths
have crossed that of the dynamic
ex-Joint J u d i c i a r y chairman,
Khoury's trademarks are more sig-
nificant.
Invariably his friends speak of
him in terms of superlatives. One
doubts whether anybody now on
campus has made more concrete
contributions to the University
than the Palestine-born civil en-
gineer.
Outside organizations, too, have
recognized his work here: the Am-
4 erican Society of Mechanical En-
gineers chose him for its 75th An-
niversary medal honoring the En-
gineering College's most outstand-
ing senior.
Nazareth to Flint
Khoury skims lightly over his
early history, claiming "it's too
long and too complicated," but
mentions a complex series of trav-
els from Nazareth, his birthplace,
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TAWFIQ KHOURY
... time out from a packed schedule for lunch

to Cuba and finally to Flint, where
his family has lived since 1950.1
Tawfiq is walking proof of th
school which says "the more you've
got to do the better you do all of
it." He's worked his way entirely
through the University-an ardu-
ous 55 hours per week one semes-
ter-and smiles "I love to make
money-any kind."
He recalls that his poorest se-
mester, academically (when he
had a 3.5 average) was "one when
I had no activities and no full-

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time job." Almost automatically
he's been elected to Tau Beta Pi,
eChi Epsilon and Phi Kappa Phi
honoraries. V
Campus Climb Traced
Lighting a cigarette, he remem-
bers his climbto the top of cam-
pus affairs began with a peti-
tion, "handed in without much
hope," for the Engineering Honor
Council. He chaired the group in
his second year there.
Next came the Engineering
Steering Committee. No sooner was
Khoury elected to head this group
than he abolished it-"its func-
tion was too vague"-and drew up
the constitution for its replace-
ment, the Engineering Council.
Honor Council experience chan-
neled Tawfiq's interest to judiciary
lines-with membership and last
semester's chairmanship of Joint
Judic the result. Biggest changes
he made there were the group's
new power to hear all first-viola-
tion cases and the decision to pub-
lish its fines and actions in the
Daily Official Bulletin.
Sees Policy Change
Khoury tends to side with The
Daily in the year-old controversy
between the paper and the Coun-
cil over publication of names of
groups and students breaking Uni-
versity regulations. He foresees
that the Judic policy will change
eventually.
Intrigued with any phase of
campus affairs, he views SGC as
a group with "all the potential in
the world-its success depends on
what its members do with it."
Drama, music and the athletic
program here all interest Tawfiq.
He confesses a real respect for
"the gentlemanliness of Michigan
athletes," and in summer turns to
participation in golf, tennis and
swimming.
Affiliations Listed
Last spring Tawfiq acquired in-
signia of Michigamau and Vul-
cans, adding their meetings to a
calendar already crammed with
the affairs of Toastmasters, Quad-
rangles, Student Affairs Commit-
tee, American Society of Civil En-
gineers and the Student Activities
Building Committee.
An endless succession of meet-
ings and gavels have not caused
the determined Khoury to ignore
his career. He plans on an engi-
neering future, because it's "hu-
manitarian and important and
challenging-and financially sat-
isfying."
And he emphasizes his complete
support of a current campus move-
ment for more interest, on the
parts of seniors and recent gradu-
ates, in alumni affairs.
"I don't feel," he explains, "that
a student's connection with the
University should end the day he
gets his diploma-and I want to
try to pay the University back for
what it's done for me."
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By NORMAN WALKER
AP Labor Reporter
William Enright went to work
for the Hormel Packing Co. in1
Austin, Minn., 25 years ago,
In those days he, like almost
every other worker in any indus-
try, never knew when he'd be laid
off.
"It was impossible to make defi-
nite plans for the future," he re-
calls.
Hormel Starts GAW
But a year later, Hormel put
into effect a guaranteed annual
wage plan that assures workers of
a specific income in a given year.
Now, says Enright:
"The fact that today 87 per cent
of the homes in Austin are owned
by their occupants is undoubtedly
one of the direct results of the
annual wage plan. The employe
can safely go into debt because he
knows his work and pay will be
steady.
"The same is true in buying
cars, home applinances, other
things. Because the worker's em-
ployment has been stabilized, mer-
chants obviously regard him as
a good credit risk."
City Follows Suit
Enright later was elected an
Austin alderman. He was instru-
mental in starting an annual wage
plan for city employes. Naturally,
he feels the idea is all to the good.
Now a man he may never have
met is betting he's right. That man
is Walter Philip Reuther, ener-
getic head of the CIO and United
Auto Workers.
Prime Target
GAW is their prime target for
half a million workers in the na-
tion's auto factories.
Americans will be hearing a lot
about GAW before the spring is
over. One of every seven persons
in the United States has a direct
or indirect stake in the auto in-
dustry.
If the auto workers win a GAW,
other big unions are ready to push
similar demands. Observers be-
lieve GAW may affect the nation's
economy far more than such ma-
jor labor-management issues as
wages and pensions.
What is the other side of the
coin at Hormel, based on its ex-
perience? What does the company
think of its plan? Does it think it
would work elsewhere? - Fayette
Sherman, Personnel Director, says:
"The only guarantee we know
is the ability of management to
manage, coupled with the willing-
ness of workers to work. If either
fails, the guarantee fails."
Trial and Error
There was a lot of trial and er-
ror, says Sherman, in developing
a plan which would assure a work-
er of 52 steady pay checks and
assure the company of a steady
supply of livestock, with the few-
est possible slack seasons.
Hormel officials see it as a plan

in which the cloth was cut to fit
a particular company in a parti-
cular industry. They are not will-
ing to guess whether GAW will
work in industry in general, or
even in any other specific com-
pany.
Officially, at least for public
consumption, neither is auto in-
dustry management. Without ex-
ception, they are not commenting
in advance on negotiations.
But unofficially, their view is:
GAW may be fine for William En-
right and Hormel's 9,400 other em-
ployes. It may be fine, too, at
Procter & Gamble Soap Co., Cin-
cinnati, where a guaranteed wage
has been in effect since 1923, and
at Nunn-Bush Shoe Co., Milwau-
kee, which has had it since 1935.
But . . .
Opposition Discussed
Here's one of the managerial
staff Qf a large auto maker talk-
ing:
"GAW would create an artificial
shortage of cars. Unlike soap,
shoes and meat, the auto compan-
ies cannot gauge their production
over a year's time.
"Autos involve an up-and-down
selling season. You can't tell a
customer when to buy a car. GAW
would force regulated production,
which would mean in certain key
selling periods a lack of cars. Also,
where would we get the storage
space to stack all the cars? To
store a car for more than 30 days
is harmful to the vehicle. After 30
days in storage you'd have to tune
up the engine again."
The aspect of GAW that wor-
ries business most is cost. Employ-
ers fear they might be stuck for
heavy payments at times when
they could least afford them. They
say individual employers can't
control over-all economic condi-
tions.
CIO-UAW Answers
Reuther's union has an answer
for this. It says its plan would re-
quire no employer to make jobless
payments beyond a fixed liability.
The employer would lay aside fixed
amounts in a GAW fund. When-
ever that ran out he would be ob-
ligated to pay no nore.
However, employers fear unions
never would be satisfied with the
size of the fund, once established.
GAW for the auto industry is
a tough question-and Reuther
knows it. His future in the labor
movement well may be affected by
the outcome of GAW negotiations.
Committment to Principle
"We are not irrevocably commit-
ted to our specific proposal," he
said recently. "We are irrevocably
committed to the principle that
the workers in our industry are
morally and economically entitled
to a year-round wage. And there
is no reason on earth that this is-
sue cannot be settled rationally
and peacefully if management
comes to the bargaining table in

April prepared to discuss, not
whether, but how."
Reuther says the auto workers
will resort to an all-out strike if
necessary. A 25 million dollar
strike fund is in the making.
The contemplative silence of the
auto makers was broken once by
Henry Ford II who warned his
workers not to be deceived by "se-
ductive promises of security."
Such employer organizations as
the National Association of Manu-
facturers and the National Cham-
ber of Commerce have termed
GAW visionary, too cqstly and
tending to hamstring business.
Bargaining to Start
Bargaining on GAW and other
union demands - higher wages,
higher pensions - begins next
month. The UAW's five-year con-
tracts expire with General Motors
May 31 and with Ford June 1.
Chrysler's contract runs out Aug.
31 .
Start of GAW
The idea of GAW in the automo-
tive field grew out of the govern-
ment's 16-year-old unemployment
compensation system. Under this,
employers contribute through a
payroll tax to reserve funds from
which eligible workers receive job-
less benefits.
During 1954 such unemployed
persons received nearly two billion
dollars. Payments ranged from a
low of $3 a week in Mississippi to
a high of $70 in Alaska. They av-
eraged about $25 a week, or about
a third of the average factory
worker's wage.
Unions say this is far too low.
Having failed generally to induce
state legislatures to increase the
amount and duration of unemploy-
ment benefits to the desired lev-
els, labor is seeking to do the job
at the negotiation table. And that
is where GAW enters the picture.
The Pension Pattern
This is, in short, a repetition of
the pension pattern. When labor
despaired of getting Congress to
increase Social Security Retire-
ment provisions, it turned to em-
ployers. The UAW won the first
pension plan from Ford in 1949,
thus setting the pattern for both
the steel and auto industries.
Some economists say that what
labor leaders call GAW actually
is supplementary unemployment
compensation.
Whatever you choose to call it,
here are the two basic concepts
involved in the Guaranteed Annu-
al Wage as reported by Reuther:
Call-In Protection
1. A worker would have "call in"
protection. That is, once he start-
ed a week's work, he'd get a full
week's regular pay-even if it
turned out he was needed for only
a day or two of that week.
2. Once a worker with seniority
became unemployed, he'd get sub-
stantially his regular weekly earn-
ings for as long as a full year aft-
er being laid off.
The second point has stirred the
most controversy.
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The UAW proposes that weekly1
jobless payments 'inder GAW+
should be "sufficient to enable+
workers to maintain the same liv-
ing standards as when fully em-+
ployed."
Apparently the union has in
mind something less than regular
pay since an unemployed workerr
would be freed of such expenses
as commuting.
Guaranteed Pay
What percentage of regular pay
is to be guaranteed by the pro-
posed GAW is, therefore, likely
to be a major point in bargaining.
Whatever amount of money a
worker might get in state jobless
benefits or in pay from a tem-
porary job would be deductible
from the amounts due from the
employer who originally guaran-
teed his wage.
The union feels this would give
employers an incentive to try and
induce state legislatures to in-
crease jobless payments.
Under the GAW plan an unem-
ployed worker would be required to
register with his state employment
service and accept a suitable job
whenever one became available.
His original employer would then
have to pay only the difference
between his temporary salary and
his previous wage.
What would be a "suitable"
job? That, says the UAW, would be
defined in the labor contract.
Economics of Industry
Other questions being thrashed
about include whether the econo-
mics of the industry would per-
mit even an estimate of the costs
of GAW. Another is whether GAW
funds could be jointly admini-
stered by union and management,
with year-round production a
prime objective, without joint
management of the various auto
companies.
Withoutsreferring specifically to
GAW, General Motors recently is-
sued a statement on progress in
stabilizing employment w h i c h
shows its awareness of UAW inten-
tions.
GM Statement
"While automobile customers,
exercising their free choice, tradi-
tionally buy a large percentage of
the year's production in the spring
and summer months," the state-
ment said, "General Motors has

been able to minimize the impact
of this seasonal customer prefer-
ence upon employment stability
by operating on an overtime basis
during these periods of peak cus-
tomer demands."
The company said it also had
made progress by moving the date
,of model changeovers from win-
ter to fall and shortening the dur-
ation of the shutdowns involved.
Ford officials also have outlined
steps they have taken to stabilize
employment - without saying a
word about GAW.
Management 'srategy
Some observers feel that this
silence is a part of management
strategy, designed, for one thing,
to prevent tipping UAW as to what
arguments to expect at the nego-
tiation table.
Although the auto industry has
remained officially silent, other
segments of industry have voiced
opinions concerning GAW. Charles
R. Sligh Jr., an official of the Na-
tional Association of Manufactur-
ers, said recently:
"It would be poor business for
management to guarantee work or
wages. Free government can't
guarantee employment without
freezing over the economy with an
icecap of socialism. And the un-
ion's aren't going to guarantee
anything."
All told, about 200 firms now
have some type of work or pay
guarantee. But they apply to few-
er than one per cent of the na-
tion's production and maintenance
workers.
In these days, labor-manage-
ment negotiation battles are sel-
dom "won." They are compro-
mised. Then readers of both sides
can report to their factions that
they scored a victory. That is, they
came off better than they had
feared they might.
Veteran Bonus
Forms Available
Korean bonus forms for eligible
Michigan veterans are available at
veteran's organizations, Red Cross
chapters and union locals of the
UAW-CIO.
The applications are not avail-
able at the Administration Bldg.

ri

"""""""''

7

CAMPUS CALENDAR
Inter-House Council will meet sored by the University's Institute
at 7:30 p.m. today in South Quad- of Public Administration and Ex-
rangle. tension Service and the Michigan
* * * Municipal League.
Prof. Bennett Weaver of the * * *
English department will lecture "Ukrainian Literature During
on "Poetry-What it is" at 4:15 the Soviet Period," will be the sub-
pm. today in Auditorium A, An- ject of a lecture to be given by
gell Hall, illustrating his talk with Prof. George Luckyj, chairman of
poetry readings, the Slavic Language Dept. of the
Rhythm, meter, tone, color and University of Toronto, 8 p.m. to-
rhyme will be discussed by Prof. morrow in the East Conference
Weaver in his lecture. Room of Rackham
Prof. Otto J. Brendel of Indiana "Discussion Leadership" will be
University's classical arts depart- the topic of a workshop sponsored
ment will lecture at 4:15 p.m. to- by the League and Union today at
day in Auditorium B, Angell Hall, 7:30 p.m. in rooms 3K, L, M, and
on "Picasso and Ancient Art" N of the Union.
* * * The discussion will be led by
The fifth annual Municipal Allen Menlo, an instructor in adult
Finance Officers Training Insti- and community education at the
tute will be held here at the Uni- University. The workshop is open
versity today, to all interested students. It will
The two-day conference is spon- last two and a half hours.

SENIORS!.
orJer
Commencement
Announcements
March 29-31 and April 11-16
1:00 to 5:00 P.M.
Administration Building

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