TWO MAJOR STRIKES.

Star (Christchurch), Volume LXVI, Issue 20260, 21 March 1934, Page 1

TWO MAJOR STRIKES.

Most Serious Labour Crisis : in U.S.A. ULTIMATUMS EXCHANGED. United Press Assn.—By Electric Telegriph—Copyright. WASHINGTON, March 10. The National Recovery Administration was faced with the threat of two major strikes to-day, in what might be described as the most serious labour crisis President Roosevelt has yet encountered. The American Federation of Labour has definitely called a general automobile strike for Wednesday, unless the automobile manufacturers accede to their demands, while the railway owners and the union brotherhoods exchanged ultimatums over the proposed wage cuts. The automobile controversy centres on the interpretation of the collective bargaining clause of the National Recovery Act. Leaders of the Federation of Labour insist upon the fact that the workers have not had a free opportunity to select between their organisation and the so-called company unions, while the owners’ association flatly insist that they are willing to allow the workers to organise independently, but will never recognise or negotiate with the American Federation of Labour. The strike, which has been called, is expected to involve 250,000 workers. It comes at a most critical time for the industry, when a flood of orders for motor-cars is awaiting fulfilment. A shut-down now will seriously retard the recovery of the automobile and co-re-lated industries. The railway controversy is less acute, but is more fundamental. The owners offered to withdraw the 15 per cent cut, of which notice has been given, if the unionists would agree to an extension of the existing 10 per cent cut. This was flatly refused. The owners then issued a counter-ultimatum for a cut of 15 per cent. Should this be attempted a general strike in the industry appears to be inevitable, although it is not imminent as a considerable time must elapse before the present agreement expires. Reports from Detroit declare that the city is on edge. The American Federation of Labour, which hitherto has not been represented in the motor industry, is mapping elaborate plans for the strike. The City Council has petitioned President Roosevelt’ to use his good offices to settle the dispute, pointing out the serious consequences of the strike.