Amerikai Magyar Szó, 1974. január-június (28. évfolyam, 1-26. szám)

1974-05-16 / 20. szám

THURSDAY MAY 16. 1974

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AMERIKAI MAGYAR SZO

“GOLDEN YEARS” TARNISHED—Mary and Andrew Molnár looked forward to retirement, after years of careful budgeting their Westinghouse wages. Rising costs threaten “best laid plans.”

NO REST FOR THE RETIRED—“I’ll have to look for a job.” Michael Basso, retired Westinghouse worker, tells interviewer. Ann Basso tells why: “We spend $60 to $70 and there’s nothing.”

U.S. Productivity Rise Equals Other Countries, Wages Lag

NEW YORK—While productivity of American workers increased at about the same rate as that of workers in 11 other industrial countries in 1971 and 1972, their hourly earnings increased at a far lower rate, Labor Department statistics show.

Herbert Bienstock, assistant regional director for the Bureau of Labor Statistics in the Middle Atlantic region, said that output per man-hour in manufacturing in the United States increased by 7.1 percent in 1971 and 5.3 percent in 1972. This compares with a combined productivity increase for 11 other countries of 4.8 percent in 1971 and 7.6 percent on 1972.

Meanwhile, however, hourly

earnings increases in the United States manufacturing dropped from 7 percent in 1971 to 6.3 percent in 1972. But in the other industrial countries hourly earnings rose by nearly 14 percent in 1971 and 13 percent in 1972.

In the two year period, unit labor costs rose by one percent in the United States contrasted to the 27 percent increase iiir the other countries.

IWholesale Prices Flying

WASHINGTON—With i the pace the wholesale pric largest amount on record in

The index rose by 1.3 percent or at the annual rate of 15.6 percent, according to the Labor Department. Of this fuel prices ac- counter for one fourth of the index rise and the prices of metals about 28 percent.

There were, however, large increases in the wholesale prices for such items as clothing, manmade fibres,, cotton and other textile products.

Prices at the retail level may ae expected to reflect the wholenetal and fuel prices setting e index rose by the second March.

sale increases within a very short time giving a new boost to inflation.

As usual, Herbert Stein, chair- ma of the President’s Council of Economic Advisers, saw a silver lining behind this dark cloud expressing the comforting view that the sharp in» crease of wholesale prices "reflects in part the concentration in a short period of increases permitted by decontrol of prices.”

Inflation Shrivels Pensions

BRIDGEPORT, Conn.—“You don’t know what a relief it is to get out of there,” said Jacob Landor, who had retired after putting in 37 years at the Westinghouse plant here just one year ago. \

Workers dream of the day when they can “get out” on pension and maybe take it a little easy, but they are finding those dreams shattered by a raging inflation that makes that pension look smaller and smaller and is cracking that little “nest egg,” if they are* lucky enough to have one, sooner and wider than they ever expected.

There are no more dreams for people on fixed incomes, only the harsh reality of ever-soaring living costs and no hope of ever catching up with them.

Most of the people on pension from the Westinghouse plant here started to work for the company when they were in their teens or early twenties and have put in from 35 to 45 years with the company. The pension benefits which they have earned were wrung from the company through years of struggle, never did reach an adequate level. Now the company’s attitude is: That’s all there is. There isn’t anymore, no matter how high the cost of living may go.

Improvements in pension benefits won by the union are not reflected in pension checks of those who have retired. The company refuses to bargain with the union for increases for pensioners, and Westinghouse isn’t volunteering any improvements.

VERY NICE, AT FIRST

Mary and Andrew Molnár are better off than most Westinghouse pensioners. Andrew started at Westinghouse when he was 18 years old, Mary put in 31 years with the company. Between them they gave the company 70 years.

Over the years they were careful and their two incomes made it possible for them to buy a comfortable little home in a pleasant neighborhood. They looked forward to retirement without worry. With two pensions it should be fairly comfortable. In 1971 they both retired.

"At first it was very nice,” said Brother Mol- ner, “and so far, so good. But as prices go up it gets tougher and tougher. Prices are going up, but we still get the pension we started with. If we could get a cost-of-living adjustment, we might be able to keep parallel but there’s no end to it.”

Fuel costs for heating their tidy little home have gone from $60 a month to $113. Their home is paid for but taxes keep soaring. They are now $860 on the 5-room house and will climb again next year.

As in most towns today, a car is a necessity. The Molnars have a 1963 car and “I don’t even dream of buying another. We use it as little as possible. The last time I bought gas it was 59.9 cents a gallon.”

When there has been but one income in the family, it’s tougher. Michael Basso started as a moulder at Westinghouse in the 1930s, making $12 to $14. After 42 years he retired at the end of 1972. His wife Ann worked for seven years on a low-paying job in another plant, and she has no pension.

Brother Basso said, "We’re just on the border line. If it (the cost of living) gets any higher, it’ll be really rough. We don’t eat too much meat now — just once In a while, and the meat is tough. I do a lot of fishing. I used to do It just for fun, but now we put the catch in the diep freeze because we need it to get by.”

‘1 go out shopping," said Mrs. Basso.” I spend $60 or $70, and there’s nothing.”

BURNS LESS — PAYS MORE

Like everyone else in town, the fuel adjustment charge on their electric bill hits the Bassos hard. “1 can’t figure out why we have to pay for their adjustment,” says Ann Basso. “Nobody pays for ours. I bum less fuel and it cost me more.”

One of the pleasures of old age is the joy of having grandchildren around. It’s not exactly a luxury. Ann and Michael Basso like to keep something on hand for theirs when they come to visit, which is very often. It’s another item for the budget that gets harder to meet all the time.

“Jf prices keep going up, I'll have to go out

PENSION DOESN’T STRETCH — Stephen Neubauer, Jr. studies his budget. Inflation and taxes spoil his plans f or a comfortable retirement.

and look for a job,” said Brother Basso. “I’d like to take it easy after working so many years but you have to get $30 to $40 extra to live on.”

When the union won early retirement at age 58, Stephen Neubauer, who had served 44 years with Westinghouse, did a little figuring and decided he could take advantage of it and “get out.”

On July 10, 1973, at age 60, he retired. “Steve" had supported his ailing sister, and shortly after his retirement she died. This was not only a great personal loss, but it brought about unexpected finanical problems.

First, there was the funeral expense, which is still being paid off at $50 a month. Since there was no longer a dependent, Brother Neubauer moved into another income tax bracket.

TAX LAW NEEDS CHANGING

These two items alone take $100 of his pension each month. Rent is $150. The grocery bill, car expense and insurance, life insurance and telephone eat up the rest of the pension check. ‘If I have $20 left over after paying these basic expenses, I’m lucky,” Brother Neubauer declared. “If there’s a repair job on the car, or any other unusual expenses — and they’re always coming up — I’m in trouble right away.

“What burns me up most, is paying income tax on my little pension. Nixon didn’t pay any more income tax than I did. They really ought to change the law on that, so one has to pay income tax on a pension under, say $10,000.”

The pensioners the UIE NEWS talked with all retired recently and their pension reflect some— not all — of the recent improvement won in national negotiations. Those who retired earlier went out on much lower pensions and are in much rougher shape. Creeping inflation has been eating away at their meager income for years, and now the galloping inflation is causing greater hardships. It is high time that Westinghouse recognizes its respsonsibility to these people and makes substantial ami regular adjustments in their benefits to meet the cost-of-living increases.