WALTER REUTHER: Working-Class Hero

He built the benefits package that workers now take for granted, from health care to pensions. But his agenda was bigger than unionism

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At the 1946 U.A.W. convention, Reuther emerged as president in a closely fought race, on a platform against Soviet communist "outside interference" and for a new, more socially conscious approach to collective bargaining. He pledged to work for "a labor movement whose philosophy demands that it fight for the welfare of the public at large...We won the war. The task now is to win the peace." Two years later, a would-be assassin, for reasons still unknown, fired shots through Reuther's kitchen window, shattering his right arm.

During the postwar boom, Reuther campaigned for wage increases, winning a major victory in a 1948 settlement with General Motors that established the concept of an annual wage increase (annual improvement factor) tied to a quarterly cost of living allowance. The AIF-COLA formula has, over the years, been a pillar of progress in enhancing workers' living standards and ensuring protection of the purchasing power of the earned dollar against the impact of inflation.

After his breakthroughs on wages, Reuther pressed for improved benefits. He had a penchant for slogans, and they often became rallying cries for the union's programs. "Too Old to Work--Too Young to Die" was one, used to negotiate pension plans. "Thirty and Out" was aimed at a contract clause permitting retirement after 30 years of service, regardless of age. "We Live by the Year--We Should Be Paid by the Year" was behind the demand for a guaranteed annual wage. The ultimate bargaining victory was the Supplementary Unemployment Benefit, which now mandates a 95% replacement of wages in the event of layoffs.

Reuther kept pressing for new and better benefits, and over time, the union won the things that employees today take for granted. Year by year, workers gained, among others, comprehensive health-care programs, tuition-refund programs, life insurance, profit sharing, severance pay, prepaid legal-service plans, bereavement pay, jury-duty pay--plus improvements in vacations, holidays and rest time. The negotiation of decent working, health and safety conditions, coupled with a sound grievance procedure, added immeasurably to the personal sense of dignity and self-respect of the worker.

Reuther's activism couldn't be contained by the collective-bargaining arena. One of many social problems that spurred him to action was the despoiling of the Great Lakes, particularly Lake Erie, a dying body of water that has been substantially revived by the cleanup effort he supported. At home, he helped mobilize volunteers to restore Paint Creek, a stream running through his community. He became actively involved in developing low-cost housing units in Detroit's inner city, including the Martin Luther King Jr. complex in downtown Detroit.

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