Disability Benefits Under the Social
Security Amendments of 1958
There have been some important changes in social security disability
benefits for people G0 or over, in the
disability “freese’ provision of the
law, and in benefits fur disabled sons und daughters of people. wha have
retired on died. cAdso benefits can now be paid Co the dependents of dis-
abled workers,
If you, or someone in your family, are so severely disabled that you
eannot work, you will want to know
thay affeet you,
The Law. Before the Amendments
of 1958 _
Protection for severely disabled
people was added to-the social se-
Security hu i amendments enacted
in 1054 and 1986. Under the tha
and TAG amendments:
1. Cush disability: insuranee-ben-
efits can be paid to severely, +
disabled workers 40° to Gf
years of age, /
Disabled workers under 50
years oof age can Sfree,e”
their social security records
to protect their own and ‘their
Cumilies’ future benefit: rights,
Cash benefits ean be paid to
the adilt: disabled sors aah
daughters of retired workers.
and oof workers who have
died, To be eligible for these
benefits, the disabled som or?
(etughter must be wanmiurried
and must five a disability
whieh began hefore ape os.
Chanwes: Made, by the Social
Security Amendments of 1958
Benefit, Payments. Increased :
If you are already petting: social
security disability benefits, your
payinents will be increased. The in-
crease will be about 7, pereent
(some niy wet slightly more, sont.
slightly less); and it will be added
fo the January cheek which will be
trailed: ta you early in February,
You do nat need to apply for this
Tnerease.
Benefits for Dependents of
Disabled Workers
Ho you are receiving disability
iusuranee benefits .as at disithled
Worker caged 00 to G8, inenthly
payments beginning for the month
of September 1958 can wo tos
Your children under age 18.
Your disabled san or daughter
LSoyeres al race or. older, if the:
disability bepan before his or her
sth birthday. ;
Your wife aged 62 ar older (ar
your dependent husband, aysed 66
ov alder),
Your wife under age G2 if she
has inher care nn ehild under 18
Cora disabled child 18 or over)
whois cligible for benefits,
If you have dependents who may
be clivible for these mew benetit
prauyments, gel in touch with your
~ockiel. securitye. office —promplly.
Payments ernnot stark. until an
npplieation is dled,
Murther changes in the aw will
be printed in the next issue of this
paper,
SPONSIBLE,
“LY RUN UNION.
about these changes and how they
Crocodile Tears.
Gt jobs have been disappearing:
here by the thousands, for years.
Did the Chamber of Cammerce
ever shed any tears ?
Did il ever point out to Gi its
obligations to this community ?
Did GH ever tell the community
that-yit will stop moving: deprrt-
ments out?
Did’ either GE or the Chanther
sorver shaw the slightest concern for
What happens to Gi workers when
they lose their jobs? re
“AT of a sudden their hearts are
breaking, All ofia sudden they are
very worried about democracy, and
voting rights, and “iliétation from
outsiders’, AP of a’sudden they
are orallying the business men,
They have filled them full of half-
truths; distortions, and plain, are
diary, out-right les.
WHY?
IVs simple. Ge has no aibi for
moving jobs out of Scheneetady.
It doesm@t want to doa single thing:
to keep: jobs in Sehencetady,
So, it-is doing a braimvashing
job oon the community, trying ta
shift the bhume on. the TUR. Phe
bigs sere campaipa is on, and the’
Chamber of Commerce is tagging
Jong,
THE TUE DORS NOT SERIKE
FOR THE SAKE OF STRIKING,
THE TUK IS A MATURE, RE-
DEMOCRATICAL-
The TUB has made tive different
proposals to meet the sproblem of
keeping jobs in Sehenectady, CET
has rejected: them all,
Ie PHERE SIS A STRIKE, UP
WiLL BE FORCED BY GE,
SUPPORT THE TUE EMPLOY.
MENT PROGRAM? OF RIGHT
WAYS ‘TO KEEP JOBS IN SCHE-
NACTADY, |
LOCAL 301
PARTY WiTES
EVERY TUESDAY
7:00 p.m.
UNION AUDITORIUM
‘Join COPE
Upper ineame brtekels. Nixon's
No Security in G.E. Proposal
The Glo proposal for a stock purchase plan for its em-
ployces as a point for immediate burgaining hus been rejected
by the IUE-GE negotiating committee. . ;
The offer is no good for the worker, orsthe town, or. the’
economy as a Whole, according to John H. Callahan, chairman,
of the TUE-Gko Conference, Board.
The TU has an cight-points program that it is negotiating. Phat
program has ciwht ways of keeping jobs in Schenectady, : ‘
The GE proposal won't save a single job in Schenectady. Tt has
nothing whatever to do with the sabjeet of the contract reopener,
We believe itis a gimmick, a trick, aneattempt by Git to get away
from the sede issues job security, keeping jobs in Schenectady?
“OH GE wats to talk about stock purchase plans, the PUI will be
happy ta dosso, but only after the TUE has negotiated its cight-point
program, and the propasals, if any, that the company may present on
the problem of employment security. e .
The TUB is new trying to negotiate with General Bleetric an eni-
ployment security program, TE consists of eight ways to keep jobs ing? fe
Schenectady.
fostead of talking {bout keeping: jobs in Schenectadyy GE has offered
what it calls a savings had security plan as it basis of settling the eur
rent negotiations. .
How that plan would save a single job in Schenectady Gk does not
say. The fact is, of course, that it would net save one single, solitary job,
It issne solution to the problem of employment security, tu the prob-
lem oof keeping jobs in Schenectady.
What Gi is really proposing is a wage cule Yea, a wage cut.
We-have wocontrael with Ge. Phat calls for (woowapge inéreases---
one on September 1 of this year, amd another an September 15, 195%.
That isa lewd obligation, a binding eontraet signed by Ge in dhé,
GE wants to throw that out the window, and asks that these eon-
(ret raises be delayed, that the percentages be cut,
In short, we ia the PEI are trying to get employnient security, tu
save jobs in Schenectady, and GE offers us a wiyte, cut instead.
Yes, werepeat, a wage eut. :
Aoman making $2 an hour and working 10 hours a week would yet
a total of FLU in those two percentage raises hy the expiration date
af our contract. *
© Under the GD phn, he would get only $1838.95 in the same: period,
Thats a difference of @ £15.47, .
Ht means Chat a Gi employee now making $80 a week, would have
$IL5A7 tess to spendin the community. [¢ meas a loss ta the business
men of Schencetady of $115.47, :
Multiply that hy the total number of GE employees and it comes
to quite a loss for the Schenectady business community. on
Of course, GM is trying ta sweeten the pill with its so-called savingse
plan, tt offers to mateh savings of up to 6 per cent by adding half of.
hat. “Thit Js, for every $1 a man saves, Gi would chipsin 60 cents,
Let's forget for x moment all the gimmicks ultached to that savings
plan. "ye . ee .
How much money ean a man making $80 a week put by now? Do
"you know any “$80-a-week man, with a wife und two children who is
able to lay away a single penny, now, with prices high, and still rising?
“Phat $80 is gross pay, remember, After deductions for federal in-
come tax, and. Social Security, and CH disuranee, and time payments on
instillment buying, who's wot siny money deft to put by?
That GH plancis fine---fur the executives. Tt doesn’t da a thing for
the Gh employee in Scheneetady, . -
And it won't save one single, solitary job-in Schenectady,
Why You Should
_ diy Michael Rakviea
“The Vieo-President of the United
States, Richard Nixon, (a nian he:
inp grraomed for the Proesideney in
1960), made a statement ti Boston
recently to the effeet that he fas.
ous a tus reduetion fur corpors
ions and) the individuals ine the
IVE-CIO LOCAL 301 NEWS
OFFICIAL ORGAN OF LOCAL 301,
REPRESENTING SCHENECTADY
GE WORKERS"
i Raa. 2
Published by the Editorial Committee
President... : Harry Williams
Vice President... - John Shambo
Treasurer. 2... Gerald O'Brien
Recording Secretury...,.......-larry Gabo
Ass't Recording Secretary---Michael Rakvica
Chief Shop Steward. ......Vincent Diloranro
121 ERIE BLVD. “ SCHENECTADY, N.Y,
plan would place the tax burden
squarely an the shoulders of the
workers tuid the peaple ef low ine
(Wb0K eRTHEWNON LABEL
come bracket,
TES eee
ROLES
ARETE
t
ype
ESS INIT ETT FE TE TEI TT ET ESD FEE
ds
wae
Vol, 4 — No. 38
_ ADOPTED BY THE G. E
_ unanimously by the G.E. Conference Board.
When the Conference Board, supported by the meniber-
ship, authorized a strike to take place September 1, 1955, if
there was no contract at.that time, we got a successful agree-
ment. In fact, the agreement- was reached two “weeks. early
or by the middle of August. : ;
When after five months of deadlock and fruitless nego-
tiations the UAW set a strike deadline. for the Ford Motor
Company, an agreement was reached within a few days. An
agreement is now being completed with.General Motors only
afew days after a strike deadline was sét for that Company.
When the membership of several of our large GE locals in
the current negotiations did not ‘support the action program
of its Conference Board, GE not only refused to negotiate but
arrogantly-and contemptuously refused to have any further
meetings! | - . 2 : :
The lesson of these situations should be burned deeply
into our minds and that of our membership.
There is no question but that.General Electric haz en-
gaged in a massive and brutal campaign to frighten the GE |
employees, and communities against supporting the Union's —
( emproyment Security Program. : ;
LL
In addition, one-third of the employees, mainly the young-
er and middle service group, have been laid off — even those
with service up to 15 years. ‘In many casés we did not do a
proper. job of informing the older service employees with re-
gard to their stake in our Employment Security Program. We -
did not make sufficiently clear to them how serious their situ-
ation may become if the Company policy of: farming-out of
work, of decentralization, of automation, area and’sex wage
differentials are continued: without check.
Many do not understand the danger to them of the com-
pany policy.to save money on unemployment benefits during
periods of reduced activity by running a plant on short hours
rather than having a layoff. ..:. . i
Many of our menibers do. not understand fully that in
dealing with General Electric we are in the same situation as
our nation was in dealing with the dictators. Any lack of firm-
ness, lack of determination, any appeasement, only serves to
weaken us and strengthen them. Carried on, this. situation .
can become disastreus. not. only in national negotiations but in °.
the daily dealings on a local scale; .
The right to strike onthe subject of-employment security
lasts until‘ October, 1960. It is unthinkable that we should
permit the Company’s campaign of intimidation or refusal to
bargain to cause us to surrender and drop our Employment
Security Program. It is unthinkable, without paying a very
heavy price, that we can sacrifice the interests and welfare of
those tens of thousands of our fellow workers who are laid’
off and are subject to lay off. Nor can we leave‘our welfare
in this field to “voluntary action” on the part. of the GH
management. :
) It is certainly to the benefit of everyone concerned—the
+~ Company, (he commiunities, the employees and the Union—to
get a settlement of this reopening as quickly as possible.
But in order to do this successfully, we must approach
this problem with determination and courage and with a full
understanding on the part of. all concerned that we can and
must win an Employment Security Program.
_CONFERENCE BOARD
EDITOR’S NOTE: This is the course of action adopted «>
We authorize the Negotiating Committee and Conference
» Board officers working ‘together: with the International Of-
ficers to carry.out the following. program :
1) To use all of our resources in a widespread and con-
tinuous campaign to make known to our entire mem-
bership, the communities, and the general public, the
justice and importance. of our Employment Security
Program. , é
To use all of our resources to make known to our
membership, communities, and the general’ public,
the terrible insecurity of unemployment among large
sections of the General Electric employees, and the
refusal of GE to meet its responsibility to develop
with us.a satisfactory Employment Security Pro-
gram. a
To use all of our resources to expose the attempt of
the General Electric Company to pressuresits—em-.
ployees into accepting its forced. savings program.
Especially. will we expose the cruel and arbitrary
way in which the Company imposed that forced sav-
ings program upon its helpless unorganized em:
- ployees. ; - .
To develop a program of reaching the unorganized
GE.employees in order to help free them from the
forced savings program dnd to have them join with.
us in a drive for'Employment. Security. .
To develop, in addition to other resources that may
be available, a defense fund that can be utilized for
whatever emergency may arise.
To engage in further negotiations with the General.
Electric Company for an Employment Security Pro--
gram when the. Negotiating Committee deems that
such negotiations may be fruitful...
-7) To call a Conference Board meeting whenever it has
_- a proposal for either an.agreement or, in the absence
. of an agreement, for action by the Conference Board.
._._ We do not believe that General Electric can long stand
aside and hold back the march of progress in the field of Em-
ployment Security. « ’
The foregoing program can be executed successfully only
“if the officers, shop stewards and executive board: members
of all GE locals enthusiastically and persistently support the
program of.this Conference Board. While the International *
has, and will continue to apply its resources to the fullest ex-
tent in implementing this program, the major responsibility
must of necessity rest with the officers, shop stewards, board
members of the locals, particularly in those situations in which —
the membership does not fully understand the fundamental
’ importance of the collective bargaining demands of the Con-
’ ference Board. . 4 ‘
It is our fervent hope that an agreement can be accom-
plished by collective bargaining and without a serious dispute.
If that proves unsuccessful, the responsibility for what lies
ahead is clearly upon the shoulders of that arrogant and blind
management of the General Electric Company.
We hereby pledge to each other to work unceasingly and
not to rest until we have achieved as our first and’urgent goal,
a program of Employment Security from the General Electric’
Company.
SPRY RSME A a
eta diy REL ETNA RSE BEE ATRL TDRSS CORE AER EN LE te DNL BP
“ut
LS
eee Pad
wana Iau tate cane APRN MISE A ATC anne in a Me ea le At mr SAE OEY ENE MeN
‘Disability Benefits Under the Social
Security Amendments of 1958
Work Requirements Changed
To be eligible for disability benefits at age 50 or to have
their social security records frozen, disabled workers have
until now needed to meet two work requirements (in addition
to being too disabled to engage in any substantial gainful
activity). (1) They-must have worked under social security
for at least 5 out. of the 10 years before becoming disabled;
and (2) at least a year and a half of their work under social
security must have been during the 3 years just before ‘they.
become disabled for work. The second work requirement has -
Secret Vote ?
Mr. Stevens
Won't Say
If some of the material used in
this article seems familiar, it is be-
cause it is taken from the Sche-
nectady Works News. The question
on a secret ballot for non-exempt
salary employees we feel should
read: “Do you wish the 3.489%
raise in pay retroactive to Sep-
Open Leiter
From Strike Vote
Committee
Pat J. Donato, chariman, Larry
Gebo, secretary, Dave Stockheim
and Tony Simone, members of the
strike vote committee, elected by
the Executive Board, wish, in this
open. letter, to thank each and
ticipated in our recent strike votg .
-
GE's Forced Savings Program . . .
GE's forced savings scheme is not only in contradiction of
its professed principles with regard to voluntary action on the
part of its employees, but it is an absurdity in terms of the
needs of its employees.
At a time when the employees and the communities des-
perately need purchasing: power, the Company can find no
better answer than that they give up part. of their wage in-
creases and send up to 9% of their wages to GE in New York
for purchase in bonds and GE stock. If employees refuse to
sec eR A SACU SENOS ESO EN TORRE PEIN LCRTIN TD
Books Available on Hunting . . .
Hunting is the fall “sickness” of many sportsmen. It gets into their
blood, At the Schenectady County Public Library you can find information
on seasons’ license requirements, equipment or training your dog. Here
are some of the books you can get: wey
Deer Hunting. F. E. Park, Jr.
Hunting and Fishing in North America. Michael Crammond.
The Hunting Rifle. Townsend Whelen.
Small Game and Varmint Rifles. H. M. Stebbins. ; :
Hunting Seasons, 1958-1959. (In Outdoor Life, Sept. 1958, p.28-29++).
Brief summary of license requirements and open. seasons in all
states. ;
1958-1959 Guide-Hunting, Trapping, Fishing. N. Y. (State) Con-
- servation Department:
every individual member who voi) ¢ “peat in this scheme, or could not invest 9% of their wages,
been removed with the 1958 amendments. ‘
If you could not qualify under
the social security disability pro-
visions earlier because you did not
meet this work requirement, and
if you are still unable to work,
you should contact your social se-
curity office immediately about
filing ‘an application.
Take with you any papers you
may have regarding any previous
“ disability, claim or-inquiry.
If you are 50 or over, are dis-
abled, and have at least 5 years of
work under social security, you and
your dependents. may be eligible
for monthly benefits beginning
with September, 1958,
“If you are under 50 and are dis-
abled you may be eligible to have
your social security record frozen
to protect your future rights.
_ Although the work requirements
for disability insurance benefits
have been changed, no change has
been made in the requirements as
to how severely disabled you must
be.
Other Disability Benefits. No Bar
To Receipt of Social Security
Payments, : .
Beginning with payments for the
month of August’.1958, disabled
people may be paid’ their full so-
cial security disability
even if they also get State work-
men’s compensation benefits or
some type of disability payment
from the Federal Government, Un-
til the 1958 amendments, social
security ‘disability benefits Were
reduced by the amount of such
’ payments, ° -
If your social security disability
benefits have been reduced or com-
’ pletely offset because you get an-
‘other ‘type of’ disability payment,
you will automatically begin to get
your full social security - benefits
starting with the check for the
month of August 1958. :
“Tf you are disabled but have not
applied for social security disabil-
ity benefits because those benefits
would be completely offset against
other payments you are receiving,
you should apply promptly to your
social security office.
" "The final article on these changes
in the law will be printed in the
next issue of this paper.
benefits, .
Editor’s Note: We are publishing
a portion of the following let-
ter from a long standing mem-
ber of Local 301 which we be-
lieve has merit; name withheld
at writer’s request.
“Seoe 15, 1958
“Dear * Spothe © ?
Of Tavca. calls
As a member in long standing,
I would: like.to know why. the G.E.
is so anxious to dump the Stock
Bonus Plan for this new Savings
and Security Program?
As I see it, they are giving us
nothing on this new plan which we
have not already coming and I
think we should_have the right to
vote on whether, we will -accept
this. new plan. or keep the Stock
Bonus Plan until our contract runs
out in 1960. 1 think the reason for
the change by G.E. is because they
think they are giving us too much
on the Stock Bonus Plan, so by:
trying to give us the new plan,
they .are trying to make us believe
they are giving us something for
nothing. ° ‘
“T have changed my mind after
veading all the propaganda this
week and will vote -“Strike”,
1 went‘to-work for G.E, in 1928,
No union then,
cash after punch out. No..smok-
ing unless you sneaked a smoke in
a corner, Then if you were caught,
they would give you a week or
more off or fire you if they felt so
inclined, *s
The “Boss’s’ Friend” was a pass-
word then, Tf.the Boss liked: you,
someone else would get laid off
regardless of service or work. A
lot of the younger generation don’t
know what the plant was before we
organized and had a Union here,
and they laugh when we tell: them
what -happened before ~we had a
“Union. : ’ .
T think we should try to be
stronger now than ever before us
we are really up against a tough
situation right now. We have got
to make G.E. understand that we
are the people who have made
thei) Company famous und pros- ~
perous all over the world...”
“It Pays To Be A Union Member
Pew Sn
We got paid in.
tember 15, 1958, plus the 1% re-
duction in pension payment on Oc-
tober 1, 1958?” vote.
“No”, Fr
Our question to the non-exempt
salary group, without the drawings
of cowtoys, is: “Did you sign and
ask questions. after.”
We feel that Mr. Stevens by not
letting .the .non-exempt salary
group vote,on this question is tak-
ing a non-constructive approach to
an American right. We further
feel that the Schenectady Chamber
of Commerce should again “hit the
publicity trail” and start asking if
- these employees are being treated
fairly. Using Mi. Stevens’ own
T.V. figures there must be 15,000
people in the non-bargaining unit
‘and using $2.60 an hour ‘as an
average (also a G.E. figure), the
community loses nearly $93,600.00:
in purchasing power a Week and it
will amount to $1,404,000.00 before
the first of the year. The raise
this group should have received
and did receive in other years would |
amount to an additional $1,106,200.
Well, merchants of Schenectady,
this should be your business also,
or can you afford a loss of $2,510,-
200.00 in. purchasing power plus
the layoffs that are still continuing
‘before January 1, 1959, ©
Tt has been a source of amaze-
ment to the Union that the non-
bargaining group, of “whom only *
419% could sign up for the Stock
Bonus Plan, now without any in-
crease in pay can start to save 6%
to the tune of 90% of the group.
We as a Union feel that some of
these employees must have been
coerced and intimidated into sign-
ing so that General Electrie could
use a large percentage of signers
as ‘a. propaganda scheme. We are
QW ni owes RA
| WMO MEETINGS So a
IUE-ClIO LOCAL 301. NEWS
OFFICIAL ORGAN OF LOCAL 301, .
REPRESENTING SCHENECTADY
GE WORKERS
WTB 2
Publishod by the Editorial-Committoe ~
Troasuror
Recording Secrata
Chief Shop Steward...
121 ERIE BLVD.
Vincent Dilorenzo
SCHENECTADY, N. Y.
“Yes” or”
balloting.
Special ‘thanks and sincere ap-
preciation to the members who
gave of their personal time to help
us take care of the record vote
that turned out. Better than two
hundred workets offered their serv-
ices. through their board members,
who did an outstanding job in
securing and submitting a list of
workers under their jurisdiction.
Headquarters Personnel deserves
the thanks of the membership at
‘large, for their outstanding help, —
who were responsible in making
the job of this committee so satis-
factory. : ae
The efficient job done by the two
hundred or more workers has re-
ceived favorable comments from
everyone»who had reason to ob.
serve our procedure.
From ‘the bottom of our hearts,
thank you.
STRIKE VOTE COMMITTEE.
Docket #9041-58. was settled’
vat the second level and employ-
ees who are being laid off and
entitled to holiday pay if they
have a vacation pay coming
and a. holiday’ falls into that
vacation period. The Company,
before this docket was proc-
essed, refused to pay for the
holiday that fell into this vaca-
tion’ period. oo
csure that the employees if given a
secret . ballot - supervised -by the
Clergy, would show the real truth
‘about a 90% sign-up. .
The point that General Electric
ig quick ‘to gloss over is that if
you do not sign up for their “Sav-
ings and_ Benefits “Plan”, you will.
not receive your raises as in the
past. This means quite simply that
if you are making enough money
to indulge yourself in the General
Electric “Plan”, you will deprive
someone who cannot afford this
“forced savings plan” his normal
wage increase, k
So once again, taking GE’s own
words, “Following an appraisal of
your own financial ‘situation and a
not” by taking the ‘Company's
“forced savitigs plan” you are mor-
ally right in depriving someone
who is less fortunate financially
than -you his wage increase.
discussion with -your family, vor
should have “decided whether of.
erate Se asia nee tats |
aa
having to leave the plant areG f
oy
wv
r preferred their own method of saving their money, they
would lose hundreds of. dollars. This loss would mount up in
the years, to come. .
What this Company scheme involves is that people give
up at least 39¢ of the wage increase they are entitled to in the
. next year.. Then if they turn over 6% of their savings to the
Company they might get back this 3% in the form of a so-
called ‘Company contribution” in bonds or GE stock.
The disadvantages of this scheme are overwhelming:
1) Those who accepted it, would start from October 1, 1960, with
a basic wage 3% less than we in the IUE would have. As time went on,’
the difference between bur wages and theirs would grow larger and
“larger, _ ‘
2) In addition to the loss in wages to'those who accepted the plan,
there would be the loss in-the value of fringe benefits, As time went on,
the value of, our fringe benefits, such as holidays, vacations, pensions
and insurance, social security, unemployment, compensation, would grow
larger and larger in comparison, with those\who are in this forced sav-
ings scheme. Ms. ahs
3) Under the Conipany’s plan, they could only get back their own
money and the so-called “Company: contribution”, (which was also their
own money) under conditions determined by the Company itself. Many "
people who could not afford to-save 6% of their wages or who. preferred
their own method of saving, would lose hundreds of déllars.
4) The price of the GE stock today itself is over-inflated, At pres-
ent prices it yields a dividend of less than 3%. Although its earnings
and dividends are about the same as that of GM, which is the largest
and perhaps the most prosperous Company in the- country, GE stock
_..sells for $22 more a share or 30% more than that of GM. GE stock is
°
‘)elling for 27 times the annual earnings. On a conservative basis the
“\—stock should not sell for more than fourteen or fifteen times the annual
‘earnings. Other high grade stocks, sueh as;American Telephone and
Telegraph, U. S, Steel; und many others, are more fairly priced than
that of GE.
5y GE has declared that this: program would be of help when a
person is laid off, Over the past ten years,-large numbers of GE em-
ployees have had dn the average only 5% years of employment with 4l2
years of unemployment, Thus, those subject to layoff, would never have
an opportunity under this proposal to actually build up any large savings.
The people who would benefit are the higher salaried employees who are
not subject to layoff and, therefore, have no problem of building up:
large sayings. r
. 6) Many employees might find that they would lose part of their
savings rather than actually gain. Assume that the plan had been put
into operation in 1955, The purchase price for the GE stock in 1956 and
1957 might have been from $65 - $72 a share, “In 1958, when. the em-
ployees were laid off, the stock sold for as low as $57 a share, If they
then got their stock back from GE and had to sell it in order to keep
valive (and this appears to be the purpose of the plan) they would take a
big loss.
. They would be buying in good times when the stock was high and
having to sell it in bad times when the stock was low. =
On the admission of the. GI officials, they would have to buy’ an
enormous volume of shares in the market for this program. ‘This would
force the prices up during good times and deflate it during bad times.
Yet this is proposed by GE as the answer to our demand for an
Employment Security Program. e :
7). This program would prove to, be a terrific bonanza for GB's top
officials. These top officials have options good for ten years to buy stock
*Yor as low as $23.75 a share. They could buy this $23.75 a share stock and
s
V7 sell it or other stock back to the GE employees for $68 or $70. a share.
They could then take the proceeds, buy more stock from the company at
$23-$25 a share, sell more stock, in effect, to the GE employees at $68-
#70 a share or more, and keep repeating this process. - Hw
In the GE propaganda material, it has widely advertised how many
thougands of dollars would be accuniulated at the end of twenty, thirty, ,
ae
Small Game Seasons — 1958. E. A. Westervelt.
Conservationist, Aug.-Sept. ’58, p.7).
Training Your Retriever. J. L. Free.
— Results of Strike Vote
Eligible to: vote
Total registered
Number. of ballots .__ ~~ -- ones 10,324*
Number of ballots void 17!
‘ Total ballots accepted
‘ . VOTE
Against strike or NO vote
For a strike or YES voté f
“*NOTE: '3 ballots were not deposited by 3 voters for
very unknown reasons.
(In N. Y. State
or forty years if the employees went into this program.
See
: a tANY |) £3
UNION MEETING! 2\\4OR Pasi
A VA
y. fails
to state is‘ that if the employees took the same 9% of their wages (6%
of their savings and the 3% that the Company gets back in lost wage
increases) and invested it themselves, they could have at least the same
amount of money. : :
-Furthermore, the money ‘would be under their own contro] at all
times to be used Ly them for whatever purposes they wish. They would
not have to go to GE and draw it out under conditions prescribed by the
General Electric Company. Ss ;
8) Fundamental to this whole proposition is the fact that this is
the wrong time to advance a program of this type. The great need of
the employees and the communities is for increased purchasing power.
They have been hurd hit by the large and extended unemployment,
Every sound economist recognizes that in oder to get out of the current
recession we need more consumer buying power, GE, however, ‘would
take a part of this: money that the employee should have available to
spend and would send it to New York to be put into the stock market
to further inflate the price of the already inflated ‘GE stock.
As part of this frantic campaign, GE has even suggested that people
who have money in the savings bank. draw it out in order to invest in
the.scheme; and that people borrow money and go into debt in order
to do it! :
Our information slows that in the unorganized plants the company
officials have exerted tremendous pressure on the employees to sign up.
They were told that if they did not sign up that they would lose a lot of
money. Their choice in effect was. between losing a lot of money and a
little money. For a company that makes as its boast.the fact that it is
against the union shop on the grounds that people should be permitted
voluntarily to choose their.course of action, such a program represents
the height of hypocrisy. 5 : ; .
The present voluntary savings program has been in effect for ten
years, People cun save up to $10 a week and the company will add 15%
in GE stock. There is no compulsion, there is no loss in wages or bene-
fits. GE has proposed to abandon this program. ;
We propose to negotiate a modification of it so that it would be
liberalized but still, kept voluntary. .
This forced savings program was devised principally to release the
era
“gompuny from any responsibility for the unemployment it created. It,
has devised this scheme in, what it thought was a clever means to throw:
back the financial responsibility upon the shoulders of the unemployed”
themselves. . ° .
We intend to press ahead for a real employment security program,
paid for by the company, and that meets the needs of the General
Electric employees. - tat
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