Evening star., 1942-06-30
Little Steel Wage
Increase Favored
By WLB Panel
Findings Also Support
Membership Maintenance
And Checkoff Systems
By the Associated Press.

BY the Associated Press.
A report made public by the
War Labor Board gave strong
support today to pleas for a wage
increase for $4,000 employees Of
Little Steel"
The report Of findings by q
three-man panel also supported
company checkoff Of union dues and
a proposal that union members now
employed in the plants be required
to keep up their memberships to
retain their jobs.
The three-man panel did not
specify the amount of increase 1t
believed justified. 1t said the four
companies involved we're able to pay
the 81 a day asked by the CIO
United Steel workers and said the
buying power of the earnings Of the
steel worker had decreased about
1873 per cent since the last general
change of wage rates in the in
dustry. The labor member of the
panel said 81 increase at least was
justified and supported the full
union shop. The industry member
objected to a maintenance of men,
bership clause.
The case affects about 157 900 en-
ployes of Bethlehem, Republic and
Inland Steel companies and Youngs-
town Sheet IL Tube Co.
Public Hearing Tomorrow.
The panel submitted findings
rather than recommendations. The
board will hear oral argument at a
public hearing tomorrow before con-
sidering decision.
Members of the panel were:
Arthur S. Meyer, chairman OF the
New York State Board of Media
ton. representing the public; Cyrus
S. Ching, vice president OF the
United States Rubber Co.. repre-
senting employers, and Richard T.
Frankensteen of the CIO United
Auto Workers, representing labor.
The dispute has been in the panels
hands since the second week OF
February.
The panel split two to one on
union security" Mr.. Frankensteen
concurred with the favorable find
ing of Mr.. Meyer on union security
and the checkoff OF union dues.
Mr.. Ching. however, dissented from
this section, saying he did not be-
heve union maintenance should be
imposed" in these cases. Mr..
Frankensteen also entered a dis
sent considered a formality - to
the extent that he felt "the facts in
these cases warrant complete secur-
ity in the form of the union shop.
Maintenance OF union member
ship" means that men who are union
members must remain so to retain
their jobs. while the chekof is a
system whereby the company de-
ducts union dues from workers pay
and turns them over to the union.
The panel suggested that main
tenance of membership and the
checkoff, if granted, should apply
only to those employees who are
members in good standing of the
union, at a date which shall be a
brief period. such as a fortnight,
after the board advises the union
members of its ruling. The ruling,
if made, should also apply to those
who become members Of the l1ion
thereafter"
Inland Issues Statement.
Inland Steel Co. issued q state
ment calling this a form OF the
closed shop, and indicating that it
might challenge the power Of the
board to impose it. The company
said it had filed a statement taking
issue with the panels reasoning on
the wage issue. 1t also declared the
panels report did not contain the
findings of fact" to which the
parties to the dispute were entitled.
With regard to many of the points
at issue, it contained only qualified
statements. opinions. beliefs. doubts
and argumentative conclusions, the
company asserted
Frank Purnell, president of
Youngstown Sheet & Tube Co., said
his company would contest the
panels report.
We must take exception to the
way the panel interpreted the facts
from the evidence presented" Mr..
Purnell said I'VE don't believe
these interpretations were justified
on the basis of the evidence pre-
sented."
On the wage question, the panel
gave weight to three arguments of
the union: Ability to pay, COM
parable wages elsewhere, and change
in living costs. Two other argu-
ments were found not sustained:
The unions right to a greater share
of the savings brought about by in
creased productive efficiency in the
industry, and the inadequacy of
wages when judged by health and
decency standards. The average
annual income of steel workers in
194l was 1926.
Discussing ability to pay, the panel
said the 81 a day increase would
cost Bethlehem $23, 900 900; Repub-
lie, 6.500,000; Youngstown, $4,-
IUU.UUU, ana 1Sld1lQ, So,oUUOUU.
The l94l earnings before Federal
profit taxes were listed as: Bethle-
hem. s119, ,75s 900; Republic. $40, ,288.-
900; youngstown, s37, ,624 900; Island,
s3S.O79 900.
If the union received the 81 in
crease, the 1912 earnings prior to
Federal profit taxes were estimated
by the panel as follows: Bethle-
hem, s90,000,000: Republic. s50,000,- =
900; youngstown, s3o,0oo,oo0; In
land, s30.000,000.
Comparison Of Earnings.
1T will be noted said the report,
"that in each case the figure is sub
stantially greater than any year in
the 1931-40 decade, and is in the
case of Bethlehem over six times,
Republic, over 13 times; Youngs-
town, over 20 times, and Inland over
three times the average annual
earning for the period"
Discussing q management point
that before profit taxes are not
proper criterion of ability to pay, the
panel said
"Prof1t taxes represent the Gov
-