Evening star., 1946-02-07
Labor
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EQOOI
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increase would be 'between 81 and
So, but nearer s5.'. He told a re-
porter:
ut would be safe for you to pre-
dict that the men will be working
in the steel mills on Monday"
Nevertheless, all officials ques-
toned on the point agreed that the
steel settlement was being delayed
by the time requirements of work.
ing out details of the new price
wage formula which will be applica-
Bile not only to steel but to all In
dustry caught in the squeeze" Of
worker wage demands and tight
price ceilings.
Secret Talks Held.
The secret talks. it was revealed,
have taken place between Mr.. Muir
ray and two United States Steel
ofhcials-John Stephens, industrial
relations vice president, and Roger
Blough, corporation attorney.
A Federal official who followed the
discussions insisted, however, that
they did not concern chiefly wages
and prices but "other details of the
settlement If and when they agree
on wages" He added that the fact
the disputants have been ironing
out side issues could be interpreted
fairly as meaning settlement of the
strike was near.
Ofncial quarters were concerned
with details of the price-wage pol
icy revision lest the application of
it should lead to more labor troubles
than exist now. 1t was pointed|
out that policy aimed primarily to,
end the big disputes, unless care
fully worked out, could bring on ten
times as many strikes as we have
now In smaller industries"
The pushing up Of prices and
wages In major industries could put
thousands of smaller businesses in
a squeeze between higher materials
costs and demands for higher
wages.
Then, there was the problem 6f
several millions of workers whose
reconversion wage demands already
have been settled for less than the
new formula will provide. It was
understood the policy would enable
wage increase Of around II per cent.
Hundreds of unions, especially with
In the AFL, have settled their claims
without strikes for between 10 and
Is per cent.
Of1cials feared that the volume
Of new wage demands resulting from
a change in policy might be more
than they could handle unless the
new formula is worded so that it
can be applied almost automatically
by management.
There still remained the rumor
that Price Administrator Chester
Bowles might resign over the price
issue. One official, who was asked
why the steel price increase was so
high, replied:
"1t was felt that a more liberal
price increase now would save the
country more money than allowing
the strike to continue because Of the
possibility of a smaller settlement
later"
Estimates on Costs.
It was understood the admins
tration would attempt to justify a
big increase in steel prices through
estimates as to what the induNry's
costs will be In this and other
quarters of this year. rather than
what they were in the final three
months of -1s45, the last period fer
which figures are available.
In the past, OPA has based price
ceilings on actual cost of production.
It was estimated by Reconversion
Director Snyder that United States
Steel must have a price increase of
about 81 ton to raise its earnings
to prewar levels, using late 1945
costs as q basis. In that period,
it was pointed out, the industry still
handled considerable profitable war
business. Officials say costs will be
higher as the industry shifts entirely
to peacetime operations.
The presidents Of both the CIO
and AFL said they must see the new
price-wage declaration before they
can commit their striking unionists
to accept 1t.
Go President Murray and AFL
Chief William Green told an Asso-
ciated Press reporter in separate
interviews they had not been con-
suited by the administration. Hence,
they added, they can make no
pledges for their members.
Meets With Other Leaders
Mr.. Murray is meeting here with
other leaders of the steel strike and
the two top officials Of the CIO
United Auto Workers President r.
j. Thomas and Vice President Wal
ter Reuther.
Special Federal Mediator James