Evening star., 1944-04-25
Union S Pay Demands
Called Unwarranted
By Steel Producers
BY the Associated Press.

BY the Associated Press.
The Nations iron and steel
producers, big and small, de-
clared today they are unable to
absorb any wage increases. They
pronounced demands by the CIO
United Steel Workers unwar-
ranted.
Benjamin F. Fairless, president
of the U. S. Steel Corp, told War
Labor Board panel that if the un-
ions wage demands are granted,
"the public will have to foot the
bill" He placed the cost of all the
demands at $500, ,00o, 900 for 81 prin-
cipal companies.
Lauson Stone, president of one of
the industry's smaller units, Fol-.
lansbee Steel Corp, declared, Il do.
not believe that the granting of the
unions demands is necessary to the
effective prosecution of the war. I
do believe that they are contrary
to the national economic stabiliza-
ton program and that they consti-
tute political crusade on the part
Of the union. I submit that small
business in this country should not
be subjected to any such crusade"
Cites High Wages.
The steelmakers thus opened
their reply to the unions demands
tor an increase of II cents an hour,
guaranteed wage, dismissal pay, a
fund for returning servicemen and
about 10 other items.
A final decision by the board may
not be reached until late summer or
the fall.
Mr.. Fairless, in his prepared re-
marks. said, ''The truth of the mat
ter is that steelworkers are today
receiving the highest wages they
have ever received and this is so
whether considered on an hourly,
daily or weekly basis"
He cited Bureau of Labor Statis-
tics records to show that average
weekly earnings last January were
S52.49, which he said was $7.34 more
week than the average in all
manufacturing industries and $128
more than the average in durable
goods industries. The steelworkers'
earnings, he said. represent an in
crease of 56.2 per cent over earnings
in January, 1941.
Says Income Is Small.
Challenging union assertion
that the wage demands can be met
without any increase in steel prices,
Mr.. Fairless said 81 of the principal
steel-producing companies last year
took in $6,294 900 600 and that "only
$171 ,000, 900, or the small fraction
of about 224 per cent of that large
sum remained as net income"
Denying he ever had predicted
mass unemployment in the steel
industry after the war, Mr.. Fairless
said:
I'm fact, I am optimistic about
the opportunities for employment in
our industry in the postwar period;
that is, if industry is given a rea-
sonable opportunity to function"
He said that while mills and
equipment are too costly to stand
idle and companies want to produce
all they can, sit is both impracticable
and illusory for the steel industry,
Of all durable goods industries, to
attempt to grant its employees a
guaranteed annual wage in the fu-
ture, whether employed or not"
Asks Check of Ledgers.
Mr.. Stone said that many COM
panies, such as Follansbee, although
relatively small in the industry, were
vital to the communities where they
operate, and that an examination of
their ledgers of recent months would
demonstrate their inability to alb
sorb any kind of increase in labor
costs. ~t''
Mr.. Stone questioned the WLB's
authority to act on certain of the
unions demands, pointing out that
it was strictly a wartime agency
and that the Antistrike Act per-
mitted it to order wage terms and
conditions "customarily included" in
agreements.
1T seems to me-" said Mr.. Stone
"that the union is here asking the
board to write a new social-eco-
nomic plan for the steel industry"