The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-07-07
Wages Jagged
Far Behind the
Steel Profits
Secret Memorandum
Shows How Steel
Barons Cyp Men
By ROBERT DUNN


We were recently permitted to
look over a more or less confiden-
tial memorandum prepared by one
of the leading statisticians of the
MIRA. 1t deals with the steel code
and its effects on workers and the
steel companies.
It states at the outset that Last
year all major industries were in
deep depression. At the present
time a large number are making
profits. (All emphasis ours, unless
otherwise noted-L.R.A). This is
particularly true of the iron and
steel industry The memo then
gives the figures of the profits of
steel companies during the first
quarter of this year. These figures
need not be repeated here as we
have included them in previous
numbers of Steel & Metal Notes.
Wages Jagged Far Behind
The memo admits frankly that
Earnings of iron and steel workers
have failed to keep pace with profits
of the steel companies" This fact
should be pounded home right now
when the companies are contending
that they are unable to meet the
modest demands Of the steel
workers.
Regarding wages, the document
admits that 1.-The experience under
MIRA. shows that equal hourly
rates have not meant equal weekly
earnings" In other words, if your
hourly rates went up. that did not
automatically increase your weekly
income, for you may have had less
work or have been put on part time.
The memo recognizes this tens
| dency when it says: Average earn
ings per week, according to our
calculations, as compared with the
| total man hours worked, show that
the earnings (of workers. since
June, 1888, have declined more in
comparison with the number of
man-hours worked; this fact would
indicate that average earnings have
declined in relation to the relative
] increase in tai man-hours
/ worked" Which simply means that
while the Steel Institute boasts Of
the great increase in the man hours
worked, the average weekly earnings
of workers have, thanks to the
N. R. A. stagger system, Jagged far
behind.
Prices Went Way Up
Here is still more important
excerpt from this report. Steel
workers, pressing for better pay
and conditions should use it in
confronting the bosses: ut is al
ways argued by the members of
the industry (the cOmpanies) that
they cannot bear increased costs
of wage increases and that they
cannot pass them on to their con-
sumers in these depressed times in
the form of increased prices. But
the records show that they passed
the costs on before they had to
bear them. As soon as the code
was signed, prices went up.
Not only does the industry in
crease its price so that ON the
effectiv date of the code pig iron
prices we're increased from SOC to
81 per tom but through the device
of charging for quantity pur-
chased and size extras the prices
are increased, according to the
Federal Trade Commission fig
ures, 47O per cent, 1896 per cent.
and 424 per cent over pre-code
prices"
These are facts that cannot be
disputed. They are officially stated
and part of the NR.A. record. They
should be used to show fellow
workers the possibility of getting
better conditions now, and coun-
tering the lynching propaganda OF
the companies against workers
about to strike.