The Wilmington morning star., 1945-12-22
Steel Controversy
BY RICHARD L. sTROUT

There are three major points of controversy
in the Big Steel crisis The disputants are
the steel companies, the unions, and the Unit
ed States Government The issues are the
War-price controversy, the contract between
the union and the companies, and the efforts
Of the government to intervene to achieve
Cancellation. The government is directly in
volved in the first and last.
During the war, management made small
er rate OF profit per article but made more
articles, SO that in spite of much higher
taxes. its overall returns were high. Workers
got premium pay and worked overtime, so
that take-home wages, after taxes, were large
Then the war ended premium pay declined
and many workers income fell. Demand for
increased wages to offset reductions in take
home pay were then made.
President Truman has acknowledged the va
hdity of some of these demands by declaring
in his Oct. 80 radio address, that wage in
creases "are imperative" and that Industry
as whole can afford substantial wage in
creases without price increases" How big
wage increases Mr.. Truman did not say
This question Of size is the first big issue
The steel industry says it cannot grant higher
wages unless given higher prices. But the
OPA looked into the matter, and its panel
on Nov % issued an announcement that it
finds no cause at this time for a general
increase in steel prices 1t reported the in
dustry's earnings such as to preclude present
lifting of price ceilings.
That is the first point. 1t seems more an
issue between Government and industry than
between workers and industry
Point two covers the "no-strike contract
between industry and the c. l. O.-United Steel
Workers.
In newspapers and radio, the American Iron
Steel Institute declares that 'every contract
which the union has signed this year with
the various steel companies has clause
wherein the union agrees not to strike during
the life of the contract There is no escape
clause" the Institute declares. 1t denies that
the end of the war justifies changing the con-
tracts, declaring: 1.-THE bond was sealed on
both sides and should be kept. whether times
be good or bad.''
The union disagrees. In a Dec. IA state
ment, it declares that leach and every con-
tract between the union and the major steel
companies contains a clause permitting the
unions to reopen the contract for a general
wage increase upon change in national wage
policy" Mr. Humans Oct 80 revision of the
wartime Little Steel formula represented
such a change, declares the union, and it
asserts that this has been expressly recog-
nized'' in Unanimous resolution by the War
Labor Board"
This issue obviously lies between the union
and management.
Finally there is the third ISSUE 1t involves
efforts at Government intervention to forestall
strike.
On Nov. 3, Secretary Lewis B. Schwellen-
bach wrote President Benjamin Fairless of
the United States Steel Corporation and Philip
Murray, c. l. o. union cad, urging them to
resume collective barga ming. Mr.. Murray re-
piled Nov. 7 that the union was ready to
meet Mr.. Schwellenbach's conciliator at any
time. On Nov. T. Mr.. Fairless replied:
/ 1T seems futile to appear to engage n COL
lective bargaining conferences on the unions
demand for a general $2-a-day wage Increase
until after the OPA has acted. -
He continued: "In addition, we must have
adequate assurances from the OPA that such
ceiling prices will also be increased so as
simultaneously to compensate for any wage
increases which may result from the unions
present wage demands
On Nov 9 Mr.. Schwellenbach tried again.
ut is of the utmost Importance he wrote
Mr.. Fairless, 'that your institution, the Unit
ed States Steel Corporation, cooperate in this
very sincere effort. -
The results were the same. Until OPA
granted price increases for past advances in
costs, Mr.. Fairless replied, and had given
further assurance of relief against future
wage increases, he must reject the Secre
tary's invitation.
These are the three main points in the big
d spute. They involve management, labor, and
Government all three. - Christian Science
Moniotr.