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Show nHerald ‘ Utahns Prepared to Meet Economic, Industrial Challenges of the Future By ROBERT E. HALLADAY Executive Vice President Utah Manufacturers Assn. With the Kennecott seven months old, the economy With 2 aie of t iS Signetics Story Illustrates << Advantages in Utah Valley seems to be si down rather than ac at the present time. Strikes are of pacticular importance now. f Some years ago presidential be made from highe govern the settlement of strikes. The President of the United ar was the yearof th had been oredicted States said that wages should be increased only as fast as the V increase in productivity which d expe They want less crime, less - race rioting, less government h the soft attitudes toward s by unions of pres | guidelines we at that time, was 3.2%. Strikes in rubber. coppe! We all remember the dra-| building, newspapers and, more matic results of a rise in prices |Tecently, automobiles have perafter a United Steel Vorkers|iodicaliy brought major seg- a With ‘oaciive to Jan. a deficit want home finance money, reportedby the National Council that five s ing the past year maj- |) have stopped the Utah Advantages of tivity gains justify and thereby Lwertany eae ha e| It has always had, with ex.|ots Heures,productivity that llusratof penditures as the or-'rect result the uncertain world| ceptions, good, honest publicof- ficiais that have kept our state Jtah’s labor force and 1% Mr, oth pointed out clearly the Other Industries Hoefler named a host of mportant indust ocated in ah and likin smaller amount of labor turn- He included Eimac Division nee our communities solvent over, columnist Hoefler pointed Varian A sociation, Electronic lf for tah has industry by prepared teaching itsi people|°¥t !0his 70,000 readers some Memories, Inc., Esco Electron whatit means <9 be productive, |° the specific reasons why Sigton Data Systems Divi It has prepared itself for in-"¢ttics Corporation announced Microdyne Conporatic |s dustry by the passage of the|teir plans to double thesize Thiokol Chemical Corporation. Law to overcome the |2%4 capacity of their Utah pro- |General Ins ntts, and Uni KR disadvanta, ..|duction facilities. v ac 1966, when the President's influence Y oOof the guide-posts in support was insufficient to prevent an excessive settlement. In 1966 average hourly compensation i y and quantity of labor availability for the proposed plant. The results the guess work out and eties moved to Utah, The same outstanding char- acteristics of the labor force which seemed apparent from the survey were tried and proven by Sigueties. The reliability, productivity and stick-to-itive- ness of Utah’s workers coning long Saceamat i. Comparison Invited He ended his article with a y nced Signetics to Gouble the large markets, How would you like to in-|jocular reference ‘o Governor e of their Provo operation. Utah has always maintained °° your productivity by a Rampton as a “huck: for The good fortune of having Tose 6.5% against an advance of healthy private organizations |{#Ctor of 2.5 or 3?” Hoefler Utah, However, t"e general tone a corporation such as Signet. who fairly represent free enterted off. “And how would of Mr. Hoefler’s writing indiin Utah is the result of a prise such ag chambers of com.|Y! like to reduce labor turn cated he thought the job was ics multiplicity of factors. Team only2.8% in productivity. Wage setilements in manufacturing | for the first half of 1967 increas- | ed by 44% above the previous | year. 1 had been |lessen our ability to compete aad _to Governor Rampton’s in nation’ refused to accept the relationship of wages to productivity. This was demonstrated in the negotiations By of Signetrough the Thiss is the uncertain world of with other countries government to the United States and as a di- Labor unions, however, have airline size. Hi Our|tinue to fence ourselves in by |; and so on ad infinitum. intervention, | C. Either way foreign dollar holders want as-|forcing our private economy to he results are in-|surances of a sounder dollar) pay wages higher than produc- cerned, that this allowed for no|fort and required government partments of Spiral Continues imately Den hest average years of edu- ending, fewer strikes. Th ion for its total popul : want college boards and no! Utah, and the country a stock in Utah's lege bums to run our universi-|whole, still have the good old Following his own persc they want the United|American know-how that has inquiries, Mr. Hoefler wrote 1,/States to win the war and get|/made this country great. ‘) ticle for E been laid down which meant as Supply of necessary materials we see it there is no atfar as the President was con- to flow into the Vietnam war ef-|tempt at this time for the derises in the price of steel. The ncome will be raised out of Vietnam. Young people|in spite of the fact that we con- settlement had been made with |™ents of the economy to a halt one of our huge corporations, because the President felt that the settlement had been made withia the guidelines that had more, on hiring 400 nd the inflation round guidelines were laid down to h merce, the Utah Manufacturers |V€"_! one-third or even one-|being done well. work and close cooperation by Association, the Utah Founda-|fUurth of ils present figure?’ Less than twoyears ago when the Industrial Promotion Board, tion, the Mining Association and |e continued. He proceeded to Signetics officials took their Utah Committee on Industrial look at Utah they and Employment Planning, many others, | point out that these are the’ first longi Utah has prepared Signetics is delighted to|were considering location n Utah Valley Industrial Devel‘epared itself most |facts face when they compare the |other states as well, Signetics opment Association, Chambers of all because in these perilous times that we have been writ- performance of their Provo fa-| President Jam F. Rileyy made of Commerce, and community. ing about we have retained our cility with that of their head-|a personalvisit to Utah, follow- development leaders was Te vigor, our ideals, our integrity |quarters in Sunnyvale, Califor- ed by other representatives, in sponsible for the new industry, |cluding Ezra Hester, Corning However, gains go also to Sigand our zest for life, and have | tia, not become social dropouts, He credited Utah's labor |Glass Works plant site selec- netics, which benefits from the many industrial All of this is shown by a bi-|force as a major plus for in-| tion specialist annual study we prepare for the |dustry. He lauded Utah's !evel| However, Signetics set down Legislature each year called: |of education, With reference to | someinitial specifications which “Industrial Climate Inventory,” t'e “brain drain’ which Utah included, first of all, a city of tary benefits, | which rose by an annual average of 64% for the previous five years, have been increasing by about 12% for the last two years, These excessive increases in wages and benefits have driven | labor costs to unprevedented Jevels. In 1965 unit labor costs | increased one per cent over the previous year. In 1966, they rose | 3.6%, During the first half of 1967 they were up by 54% at their highest point in 20 years. 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