Targeting Ford

Surrounded by aides, Leonard Woodcock, president of the United Auto Workers, strode into the union's Solidarity House last week to perform one of Detroit's triennial rites: the selection of a strike target. The union never shuts down the entire industry; it picks one company to concentrate on in the hope that the selected victim will agree to the union's proposals rather than lose sales to its non-struck rivals. Woodcock's announcement: it will be Ford that must reach agreement by Sept. 14 or face a walkout.

Why Ford? Said Woodcock, in effect: primarily because that company has not been struck since 1967. General Motors was the target in 1970 for a 67-day walkout; three years ago Chrysler was hit by a nine-day strike. Ford also has the financial strength to meet at least most union demands, while a strike now against Chrysler or American Motors might permanently cripple those companies. General Motors is stronger still, but striking it would be far more costly to the union. The $175 million U.A.W. strike fund would be exhausted in only nine weeks in a GM walkout, but would finance 16 weeks of benefits at Ford.

Actually, the betting in Detroit continues to be that there will be no strike, or at worst a very short one. The U.A.W. is concentrating this year on greater job security and a larger supplemental unemployment-benefit fund, rather than on wage boosts. Such preoccupation reflects the auto workers' experience during the recent recession, at the bottom of which 275,000 were on layoff. Woodcock even hinted last week that he might keep workers on the job without a contract if agreement has not been reached by Sept. 14, but seems close.

High Hopes. A peaceful and moderate settlement would be good for the economy. Automakers are looking forward to a banner year in 1977 with GM Chairman Thomas Aquinas Murphy last week predicting that car and truck sales will surpass the record 14.6 million of 1973. One reason: GM is unveiling a line of cars that will average 18.3 miles per gallon, or 10% more than the '76 models. As expected, GM also announced price increases, averaging about 6%, that will push the price tag for a typical car to about $6,000 (the average 1967 GM auto cost $3,000). Murphy dropped an elephantine hint to the U.A.W. to be reasonable; he expressed hope that no further price boosts on the '77s will be required. One other cloud on the auto horizon, the threat of a tire shortage, seems to be dissolving. The United Rubber Workers and Firestone announced tentative agreement on a contract under which the first of 60,000 rubber workers could begin returning from a 126-day strike this week.

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