The Waterbury Democrat., 1942-02-10

guarantee of labo peace for the duration of the wa l production effort.
 Little Steel is, as you know, fou l major producers not in the U. Steel Corporation. Since mid-Janu | ary these companies have been car. rylng on four sets of negotiations with s. w. o. C., the Steel Workers | Organizing Committee headed by c l. o. President Phil Murray The, are Bethlehem and Republic Stee | Companies at New York, Jnlant Steel at Indiana Harbord, Ind, ant Youngstown Sheet and Tube a i Youngstown, o.
 The four sets of negotiation! might as well be one, for the de. mands are the same and the ans Wers are the same.
 In the two weeks and more o. negotiations, all issues have beer agreed upon except three:
 1. Wage increases of $l day, or F 1-2 cents an an hour.
 2. Closed shop for the s. w.
 O. c.
 3. CheckoH of union dues
 from wages.
 The four companies, which grant ed a wage increase of 10 cents ar hour in April, 194l, have indicated that they would grant wage in- creases here and there for certain classes of employees. But they have f1atly refused general wage increases and they have insisted they cannot recognize the closed shop principle or the checkon, insisting that these are not issues that can be arbitrated
 Murray, impatient, has called for a showdown, which means simply that pressure will be brought on the government to have the case certi- fled to the War Labor Board for settlement by peaceful means" Ii and when that happens, the Wal Labor Board has another closed shop fight on it's hands.
 ISSUE IS
 D
 So far, the War Labor Board and it's predecessor, the National Labor Relations Board, nave been able tc duck all these closed shop decisions It was the closed shop issue in the captive coal mine case which real ly wrecked the old NOME, forced settlement into arbitration anG caused the President to call his la bor-industry peace conference which finally set up the War Labor Board
 Ducking the closed shop issue in the Little Steel negotiations won't be so easy.
 In the first place, as this depart ment has consistently pointed out organized labor is out to put over the closed shop principle in this war and make it stick after the war is over. That is g. fundamental aim of the labor chieftainS and they can be counted on to fight to the last ditch to win it. That being the case these Little Steel negotiations have tremendous importance on the whole war program, steel being the number one industry.
 Whether or not Little Steel grants any or all these demands, the same demands vii be made on the big U $. Steel Corporations now work ing under an agreement which notice and all the other steel companies which have s. w. o. C. contracts. Only two major compan- ies do not have contracts-N National Steel and American Rolling Mill National Steel (E. T. Weir) set the pace for the wage increases last April by voluntarily granting a 10- cent an hour wage increase, but in these negotiations, Weir has not So far shown his hand.
 Sttel companies estimate that the wage demands now being made OF Little Steel, If applied to the 640,- GOO men in the entire steel industry would come to about $230, million a year.
 CONFLICTING
 VIEWS
 Labor bases it's demands on in- creased cost of living, and the con- tention that steel company profits indicate the industry can afford these wage raises.
 Management replies that the con- panies do not anticipate profits in 1922 at the rate of 194l, and that the wage increases demanded would wipe out all profits. Furthermore the steel companies point to the fact that steel prices are now under gov ernment ceiling regulations. Steel prices are based on present labor costs. If labor costs advance, the price of steel must be raised to cover that increase.
 There is a perfect parallel to this situation in what happened to the railroads, Railway labor applied fof wage increases, passing the claim or increased cost of living. Increases were granted and the railroads i'm mediately applied for increased pas senger fares, which were also grant ed.
 The significance of this point, as applied to the steel industry, is tre- mendous. Wage levels in steel tenc to influence wages in other indus ! tries. And If rise in wages foI { steel means an increase in the price of steel itself and all the things thai are made out of steel--there, ladies and gentlemen, you have the begin ming of an infiationary spiral.
 Some place along this beautiful road to victory, someone is going tt have to put his foot down and say MOI"