Show BUSINESS t I f I lt TI TENSE SSI I VF Aft AIt AMIDST rJ t During the course of the nations nation's ns n's bicentennial year several important labor pacts in key industries will expire I Contracts up for negotiation I involve an estimated workers engaged in a rather I broad section cross of American fields many of which are fundamental to the success of our economy To varying deg degrees ees the results of bargaining and the terms of C settlement will have an impact not only on the workers directly covered by the new agreements but also on nonunion nonunion nonunion non non- union employees and In the final analysis on the consumer Also important is the fact that the 1976 settlements will set a pattern for contract discussions during the following follO year Catch Up Bid Anticipated The that powers in Washington have been earnestly earnestly ear ear- nestly engaged in fighting the battle against inflation and the fires have been moderate degree But the Administration is anxious to prevent another inflationary flare At the same time workers covered by the expiring expiring ex ex expiring year multi-year union pa pacts ts will be seeking hefty w wage ge increments Since the purchasing power of paychecks has been ravaged by inflation reaching double-digit double intensity earlier in the life of the present contracts l labor bor will be pressing hard to make up for lost ground and hedge against continuing advances in living ng costs Thus it will be catch catchup up keep up time for the workers when hammering out provisions for new agreements next year Early Karly Warnings It is premature to say what final labor demands will be like but some indications are beginning to surface The powerful and militant Teamsters Teamsters Teamsters Team Team- are said to be be preparing a package f wag JI and fringe ean gains of approximately 36 p percent over three years ears Also Ii likely ely in inthis this complex of dem demands will b be provision for unlimited cost of living raises for the life of the contract This type of escalator clause is certainly not new but the no- no limit feature may prove one of the more vexing issues for management Different Pattern During 1973 when the existing union pa pacts ts were signed many of them were front-end front loaded in terms of pay increments That is is the larger portion of the wage hike occurred in the first year jear ear a practice used in several previous bargaining rounds In the proposed Teamster package however the intention at this point is to secure a 1976 wage and fringe increase of some 12 percent and to follow follow this with about the same boost for each of the successive two years ears Economic And Election Implications One element that must be betaken betaken betaken taken into consideration in 1976 is the fact ll that it it is a presidential election year There is a rather heavy agenda for labor contract renewals involving groups in the construction con trucking auto electrical machinery and rubber industries all areas area of basic business significance There wre is no question but that the political atmosphere of 1976 1970 will have a bearing on negotiations particularly since ince unemployment totals and the state slate of the economy at the time each ach contract is negotiated will bring their influence to bear beai on the terms of settlement It II is to be hoped that we Wl will trill willbo ill bo Jo the road to full economic recovery by then after experiencing one of ot he the most damaging recessions that have beleaguered our economy since the Big Depression At this time the Its economic 4 forecasters vary tary co considerably on in their heir views jews as to 10 the pattern and amI durability of the tilE business rev reva revival a I but most mast of them ar arnow are arenow art now willing wiping to 10 concede that further gradual improvement 1 lies ahead ff pi The staff of Babson's Reports Stresses ses that Ihal the tile relative Y f strength nf If the economy and III hit Hie levels It of f employment anti unemployment will well 1 be II a I ingredients in w upcoming negotiations during ou our age nations nation's t jc 2 birthday celebration |