The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-16
INDEPENDENT STEEL
MEN TO CUT WAGES
REIMBURSEMENT, Effective Jan
uary /, Ranges From 10 to
25 Per Cent.
OVERTIME ELIMINATED
steel Corporation Gives No In
dicatiOn Of It's Intended
Policy.
OVERTIME ELIMINATED

TINS first broad movement looking
toward readjustment OF wages In the
steel industry got under way yester-
day. when announcement was made Of
wage cuts ranging from 10 to % per
cent, effective January 1, by several Of
the larger independent producers, AL
though officials OF these corporations
refused TO make estimates of the
amounts TO be saved by these wage
cuts, it was admitted generally that
the savings In production costs would
! be substart al, and that the step Is the
! second great stride forward in effect
! ing general readjrstment Of the steel
| Industry from the high peak OF war
times 80 a point nearer the normal
| level Of pre-war years. Tho first was
the Drastic cutting OF prices all along
the line by Independent producers.
The biggest producer OF ali. the
| United States Steel Corporation. has
not announced it's wage policy. Judge
e. II. Gary. chairman of the steel cor
poration, refused to make any comment
on the wage cuts by some OF the In
dependent producers: nor would he
| give any indication of what the policy
of the Steel Corporation may be toward
letting down OF wage schedules in it's
own plant. The Steel Corporation. how
ever. was the first to raise wages at
various times in the last few years, and
1t was generally expected that it would
be the last to cut.
Wine Hour working Day.
or all the announcements of wage
cuts made yesterday, the only one to
bear the official stamp was that Of the
Lukens Steel Company; a Coatesville.
Pa. concern. which made formal an
I 40 49,
ton In wage schedules will become eff
fective en- January 1. At the same time
overtime will be eliminated and the
regular working day will be fixed at
nine hours.
Two other important producers of
steel end steel products planning 20
make reductions In wage scales the
first of the year are the Midvale Steel
and Ordnance Company and the Lacka-
wanna Steel Company The former
will make a reduction of 10 per cent.
as a general proposition, although defi-
mite details of the new schedule have
not been completed. An official Of the
corporation admitted that new wage
schedules are under discussion and that
the new scale will show cut OF APP
proximately IS per cent. from that now
In effect.
The reduction which the management
of the Lackawanna Steel Company mas
under advisement is understood to be
equivalent to 10 per cent,
Cambria steel officials announce that
they will be obliged TO cut wages, but
the amount has not been determined,
nor has an effective date been set. The
connany for some weeks has been get
ting rid Of It's floating labor and VIII
retain only the men who nave SHOWN
a Willingness to give fair return for
the money they receive in wages.
Trade Papers Comment.
So inrortant has the subject Of wages
IN the steel industry becsnac recently
that trade pa ers have taken up the
subject exhaustive!y. The IRON age IN
ita weakly review OF the situation says
,hat the SLOWING down of business is
more pronounced at many steel plants
ond the problems of cost reduction are
,nnermcst. Work Is being rearranged
TO save the overtime resulting from the
basic eight hour day. and reductions IN
wages amounting to 10 rer cent, ana IN
some cases more Will be made on Janu-
airy by some important INDEPENDENT
companies.
"E,jeht hour turns arc being intro
duced I'm some cases In order TO give
more men work. but because OF scant
orders there are only two shifts instead
Of three. There are reports OF wage re-
auctions already made at some plants,
and one case OF an offer by employees TO
cooperate in plans for reducing labor
cost"
The Iron Trade Ecvieto, In touching
or the same subject says that wage
reductions have touched the base OF the
steel industry, tho Lake Superior ore
fields"
zone Independent operator, that Jour-
mai continues. has put in effect a cut
OF 25 per cent. and another one of 20
pc, cent Other companies are expected
TO follow this lead. There has been
further scaling down of both wage rates
and salaries in equipment, automobile,
shipbuilding and other industrial plants
In varioua directions"