Auto workers take a wage cut
American auto companies and their employees have been caught for months in a quandary. As car sales dragged along at their lowest level in 21 years, more and more workers lost their jobs. Some 240,000 United Auto Workers members are on indefinite layoff. Auto companies claimed that high salaries and benefits helped push up the price of American cars and made it hard to compete against Japanese imports. Although worried about further layoffs, workers were reluctant to accept substantial wage reductions. But last week Ford and the U.A.W. agreed to a new 2½-year contract that cuts...
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