The Waterbury Democrat., 1946-05-28
Agreement byMghtfall
 Telued as Possibility
Officials Expect Welfare Fund
 To Be Included

w 0S1uAuB LVHt1 M0y 70
 UP)-The Government and John l.. Lewis, president of the United Mine Workers (A.F.L.), appeared on the verge of an agreement today to end the two-day strike izA Government operated soft coal mines.
 Some Government officials be- lieved there was possibility but no aSsurance-that contr&Ct could be signed by nightfall for the period of Government mine opera tion. Informed sources expected the contract to provide for $25,- 0O0, 900 annual contribution by the industry to an employe welfare fund.
 Coal Administrator J. A. Krug and Lewis scheduled another con- ference today to consider detailed proposals. They spent 6 1-2 hours in two sessions yesterday and aa- nounced that progress was made and that Government and union attorneys were working on de- tails"
 90 Percent of Mines Shut
 The negotiations continued aSs though the miners mo contract, no work" policy closed about 90 per- cent of the industry yesterday President Truman told Congress last week that negotiations should stop when workers struck against the Government, but the Adminis- tration made no move to halt the Krug g-LewiS discussions
 The Solid Fuels Administration estimated yesterdays coal produce tion at 100000 tons, less than 10 percent of normal days output. The SEA said about 10000 miners most of them progressive mine workers Qndependent) and noal- union workers-were on the job. The strike involved 100000 UMW members.
 A Government ,- contract would represent a f1rSt-round victory for Lewis because it would pr0vido Government sanction for c more liberal welfare fund than the hl- dustry offered before the recent breakdown in negotiations.
 A reliable informant said the Government idicated willingness to endorse $25, ,000. 900 annual in dustry contribution to a welfare fund. They money would be raised by five-cent assessment on each ton of coal mined.
 Operators Agree to Plan
 Although a tonnage royalty has been bitterly opposed by industry spokesmen, some operators were said to have expressed the belief that it was the only effective way to distribute the cost of the welfare fund
 Lewis asked for 10-cent royalty last year, but proposed a percent payroll assessment which would raise about $70,00O,O0O annually in the negotiations this year.
 Even with a Government con- tract, Lewis still would need to win < industry acceptance. He presume ably would offer the same contract to the operators and wait for them to accept Singly or in groups. Be- cause of the threat of strikes, the Government would retain control of the mines until agreements were signed by the owners
 On the wage issue, the Govern ment would be limited by its wage- price policy which has allowed pay raises up to IS 1-2 cents an hour in basic industries. Lewis specific wage proposals never have been disclosed.
 May Shorten Work Day
 According to one report, Govern ment negotiations have involved discussion of proposal to shorten the miners work day from nine to eight hours without a pay cut The miners now earn a basic wage Of $l an hour or $l0 for a nine-hour day, including seven hours at straight time and two hours at overtime rates. A $l0 wage for an eight-hour day, including one hour of overtime, would represent a wage increase of .17.6 cents an hour.
 Even if the miners return to the pits this week, the steel industry, which has been hard hit by the coal strikes, expected substantially more than 100000 tons of steel to he lost as a result of the mine stop pages.