Evening star., 1944-12-31
|vinson Permits
Steel Pay Raise,
But Cufbs Prices
Mills Allowed to
Charge More for
Some Products
By JAMES Y. NEWTON.

Economic Sterilization Direc-
tor Vinson last night approved
the War Labor Boards recon-
mendation for a wage increase
OF from S to 7 cents an hour for
the more than 400,0 900 steel work.
ers, accompanying the decision
with provision for price increases
of some steel products.
The possibility of a general in
crease in steel prices as result Of
the wage raise was ruled out. Mr..
Vinson disclosed that the Once of
Price Administration study Of The
price and profit position of the whole
steel industry found that the higher
wages could be paid without an
across-the-board price increase.
Mr.. Vinson reconciled his de-
cision with the "hold-the-line" pol
icy by quoting OPA to the effect
that certain steel product price in
creases must be made irrespective
OF the wage decision" to meet the
minimum requirements of law"
Price of steel, like that of other
basic manufacturing materials, has
been held close to the prewar level,
Other Demands Before WLB.
In the stabilization directors or
der, labor thus won a victory in
the first Of half dozen major
demands on the Government for
wage adjustments. WLB has be-
fore it similar demands from work
ers in the textile, electrical, pack
ing house, automobile and alumni
mum industries. John L. Lewis
United Mine Workers are expected
to make the greatest assault on
stabilization machinery when their
work contract expires next spring.
Mr.. Vinson was caught between
great labor and industry pressure
IN handling the steel case. Held
over him was the threat OF second
wartime steel strike unless the WLB
recommendation was accepted, while
industry countered that wage raises
without a general price. increase
would be ruinous to the mills.
While labor was held certain to
accept the Vinson decision. there
was no new comment available from
industry. Mr.. Vinson did not re-
veal how, widespread the price in
crease would be, but it was believed
doubtful that the adjustments would
go far enough to satisfy the industry.
Estimates of Cost.
The steel companies had estimated
that the wage boost might cost as
much as $50, 10000 a year. The
OPA, after cost studies, wound up
with an estimate of between $75,-
600, 900 and $4,000, 900.
The stabilization director ap-
proved WLB's steel wage directive
in a letter to Chairman William
H. Davis informing him that the
pay raises were to be put into ef-
feet. He wrote that OPA had in
formed him it had planned to make
some upward adjustment of steel
prices but with the acquiescence
of the steel industry, it has delayed
the consideration of these increases
until the wage case was settled, so
that it would be unnecessary to con-
slider steel prices more than once"
Mr.. Vinson quoted the following
summary of conclusions in the OPA
study, which was started nearly q
year ago:
Certain product price increases
in the iron and steel industry are
now necessitated by the minimum
requirements of law. These in
creases will be made irrespective of
the wage decision. It is the judg-
ment of the price administrator
that after these price adjustments
are made the proposed wage in
creases will not require any further
net rise in the general level of iron
and steel products"
OPA was referring to the re-
quirement of the Price Sterilization
Act that price increases be author
lied in hardship" cases determined
on the basis of present earnings
records of industry compared with
prewar earnings. Tremendous war
business SO far had enabled the
steel industry to operate profitably
under prewar ceilings despite in
creased wage and other manufac-
turing costs.
$4,000 May Be Affected.
The CIO United Steel Workers
Union originally asked for a basic
wage increase of II cents an hour.
WLB announced its decision No
vember Is, suggesting raises esti-
mated to average from five to seven
cents an hour for the workers.
Affected directly by the Vinson
decision are about 400, 900 basic steel
workers in 86 companies, although
it may ultimately affect some 500,-
900 other workers in 600 product
companies where the union has COLI
lective bargaining agreements.
A difficulty in figuring the cost
to the industry is the fact that the
increases approved are not in the
basic wage.
The main increase approvef was
q premium Of cents an hour for
the second or early night shift and
s cents for the third, or late night
shift. This will affect the majority
of workers since in most steel plants
(see STEEL, Page A-90