The Key West Citizen

Phone Company Will Need Rate Increase

Contract negotiations between the Southern Bell Telephone and Telegraph Company and the Communications Workers of America-CIO began in Atlanta Monday morning.

The present agreement covering the company's non-supervisory employees, including those at Key West, Florida runs until June 5th.

G. D. Garner, Southern Bell vice-president in charge of personnel, indicated in Atlanta Saturday that the company will go into the negotiations prepared to make a wage offer within the limits of the Government's Wage Stabilization program.

"Surveys just completed show that a general upward movement of wages has taken place in the south and that a wage increase for Southern Bell employees is justified," he said. "The company's policy is to pay wage rates that are in line with those paid other workers in the community having similar skills. Only in this way can we do justice to our employees and continue to attract and keep the high-type personnel essential to good telephone service.

"Operating costs already have increased out of the line with revenues, an increased wages on top of other cost rises, will require an increase in telephone rates. There is no margin in our income to absorb any increased costs. In fact, we have fallen short by $20,000,000 annually of making up through increases in telephone rates the wage increases granted in the last 10 years.

"In its negotiations the company must constantly seek the middle ground that is fairest to all concerned-employees, customers and the people who have invested their savings in the Telephone Business. We are confident that the public expects Southern Bell to pay fair wages. We must also recognize the rights of those who have put their money into the business expecting a fair return. And we must charge for telephone service only what is necessary to provide good and expanding service plus the return to which those who have invested their money are entitled."