Evening star., 1942-07-18
Steel Wuqe Decision


CIO request for a 81 daily wage in
crease for $4,000 workers, presented
the War Labor Board with its first
demand for a general wage advance
affecting a substantially equalized
standard wage structure throughout
an entire industry. This was chal-
lenge to the Governments anti-in-
hationary program which had to be
faced, and the board met it by beat
Ing a strategic retreat.
In message to Congress and in an
address to the Nation last April the
President indicated that he was pre-
pared to make a determined stand
against imitation. Except for the
adjustment of inequalities and the
upward revision of substandard pay
rates, wages were to be stabilized as
one phase of a seven-point program.
The President explained his meaning
In this language: do you work for
wages? You will have to forgo higher
wages for the duration Of the war"
But it has not worked out that way.
The Labor Board has granted the
steel workers, whose hourly pay scale
was already among the highest in
the country, an increase of SIS cents
an hour. This is not large increase,
but it may be expected to have ex-
tensive ramifications, for it was
granted in conjunction with the
adoption of a national wage policy
which seemingly commits the board
to the proposition that all workers
are entitled to increases commensu-
rate with the Is per cent advance in
living costs from January l, 1941, to
May, 1912. This is certainly true OF
all cases that may be brought to the
board. for settlement, and, in that
event, equity requires that it be ex-
tended to all workers, although it Is
far from clear how this can be ac-
complished.
It seems clear that the public and
the employer members of the board,
In executing this retreat from the
Presidents original stand, believed
they were taking position from
which they would be better able to
deny future demands for general
wage increases. There is serious
doubt, however, that this will prove
to be the case. The boards PROPOSE
ton that wages should be raised
enough to offset the advance in living
costs, but no higher, rests squarely on
the assumption that the costs of liv-
ing will be held to the May level. But
In the case Of some items prices have
already gone higher. And will not
the cost-of- living pay increases that
the board indorses tend of themselves
to push prices above the March cell
ings? If wages are to be boosted up
to a maximum of Is per cent, de-
pending on circumstances in each
case how is this added cost of pro-
duction to be taken care of? This
additional cost was not in contem-
plation when the March price ceilings
were imposed, and it follows, there
fore, that the pay increases cannot
be absorbed by manufacturers or
sellers. The consumers will not pay
them unless prices are lifted, and to
raise prices would give rise to new
wage demands. Possibly the board
assumed that this problem would be
taken care of through the payment
of subsidies, but If this is to be the
solution it means that the burden Of
all pay increases-and no one knows
what they may amount to-is to be
saddled onto the already overloaded
taxpayers.
There is also the question of the
farmer This is matter which was
brushed over very lightly by the
board, but the truth is that farm
prices have not been stabilized, and
in fact, Congress is now engaged in
an effort which may result in ma
terially higher prices for farm prod
ucts. Should this advance material
ize the new wage formula will col
lapse and, although it is not a re-
sponsibility of the Labor Board, it is
q circumstance which cannot be
ignored.
The steel workers, despite earlier
protests, have accepted the boards
plan. They have obtained almost
half their requested wage increase
q union security clause, the checkof
and a guaranteed minimum dali.
wage. Contrasted with the ordea
through which the unorganizee
workers and the small businessmen
of the country are passing, tina
seems to be-and is-highly favor
able treatment.
There have been indications tina
the President may ask Congress TO
legislation to stabilize wages. Thi
should be done, regardless OF the ia
vorable action by the steel union
The Labor Board has jurisdiction
over relatively few workers. Thos'
whose cases do not reach the boart
Semain free to press for wage In
g.