The Rubber Standard

The Phase III guideline for wage increases goes Rashomon one better: it differs not only according to who is describing it, but according to who is describing it in which sentence. Last week John T. Dunlop, chairman of the Cost of Living Council, announced that "the wage and price standards that existed in Phase II...continue in effect," including the 5.5% guideline for average pay raises. In the same press conference, Dunlop said that he fully agreed with a statement by COLC's labor-management advisory committee that "no single standard of wage settlements can be formally applicable at one time" to every union. White House spokesmen later emphasized the hold-the-line phraseology--but AFL-CIO President George Meany happily opined that "the chances of getting settlements higher than 5.5% today are much better." How about Dunlop's statement that 5.5% was still the standard? Said Meany: "I do not think he believes that."

So is there a guideline? Well, sort of. In a hastily arranged "clarification" briefing, a COLC official insisted that labor leaders have promised to keep 1973 pay boosts in line with those negotiated last year, which averaged 6.3%. But Dunlop freely concedes that individual contracts will vary widely. Meaning: the real guideline is whether Dunlop--in consultation with top labor, management and Administration officials--approves of any given settlement. Washington wits promptly dubbed that test the Dunlop Rubber Standard.

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