New-York tribune., 1920-12-16
Steel Wage Cuts
OF $50 Planned
By Independents
Problems Of Cost Reduction
Now Uppermost, With
Elimination of Overtime
Pay; Slump Pronounced

Leading independent steel companies
are preparing to put into effect a
lower wage scale on January 1, follow
ing reductions in prices announced a
few weeks ago More than 1000 en-
pioyees of the Lukens Steel Company,
OF Coatesvil.e, Pa, have beer informed
that the cut in wages on the first Of
the year will amount to 25 per cent and
that overtime will be eliminated, the
daily hour rate to be fixed at nine
hours
Other steel manufacturers that are
understood to be getting ready to cur
tail the pay of their employees include
Mdva Steel and Ordinance, Bethle-
hem, Republic Iron and Steel, Lacka-
wanna Steel and Youngstown Sheet and
Tube. Ebert II. Gary, chairman of
the United States Steel Corporation,
begged to be excused when asked
whether the corporation also intended
to reduce wages.
Prospective wage cuts will average
Is per cent and in some cases more
according to this weeks issue of The
Iron Age.
"The slowing down Of business is
more pronounced at many steel plants u
says this publication, "and the prob
loms Of cost reduction are uppermost.
Work is being rearranged to save the
overtime resulting from the basic
cight-hour day. Eicht-hour turns are
being introduced in some cases, in
order to give more men work; but be-
cause of scant orders there are on1y
two shifts inste d Of three.
"There are reports Of wage reduc
tions already made at some plants and
one case of an offer by employees to
cooperate in plans for reducing labor
costs"
Announcement was also made yester-
day tat the leading copper companies
in Utah, Arizona, Idaho and New Mexi-
co have posted at the mines and mills
cut in wages, effective January /, to
the level prevailing prior to July l,
1919. This means a reduction varying
between $1.25 and 60 cents a dav, ac-
cording to the character of employment
and pay.
The companies that are preparing to
reduce wages are Utah, Ray Consoli-
dated, Nevada Consolidated and Chino
N the porphyry group, and Phelps
dge and ca 'uMet. and Arizona. 1t is
understood that the mine workers of
more than S5.35 a day will have tn oir
pay reduced ST day and those receiv-
ing less than $5.35 a day a reduction
of so cents. At the smelters. it was
stated, tf, difference in the amount of
the reductions will begin at $5 day
Regarding the steel situation, The
Iron Age says:
U. S. Steel Operations
There is a sharp contrast between
the Steel CORPORATE ms rat. of opera
tions and the average rate at
in 'epcndent mills. The Steel Cor
noration incrcas d this week to
90 per cent of steel works capacity and
added a blast furnace at Edgar Thom-
sen and another at Gary. The sixth
furnace Of its Youngstown. Ohio
group will go on next week Steel Cor
povasion shirmcnts are about 10000
tons a day, ,hereas the new bookings
are not far from 90 per cent of ship
ments."
The Iron Trade Review will say to.
dsy: "Production q iron end s,ee
continues on the lown grade. With
new business and specifications ex.
ccedngly small, barring enc or two
avored lines. many operations arc be
ng readjusted to fractional basis un
Ill after January l - longe.. Prices