Evening star., 1947-07-13
Economic Reverberations May Result
From Pay Raise for Nations Miners
Promise of Higher Fuel Prices Meet Contract Could
Boost Living Costs and Bring New Wage Demands

Wage Demands
stalled negotiations Of the nina
owners and the union. The move
was led by Benjamin F. Fairless,
president OF the United States Steel
Corp. who apparently had the back.
ing of the entire steel industry.
Coal mining may be incidental
to the steelmakers in their gigantic
overall operations. but they must
have it for their mill furnaces.
Stocks of metallurgical coal were
unusually low in late June because
the steel mills had been running
at close to 100 per cent capacity
for long time, using the fuel as
fast as 1t could be produced.
The coal miners Today vacation
was coming up, and the Lewis con-
tract with the Government vas to
run out June 30. The steelmakers
did not see where they could get
coal To even tide them over the va
cation period. Mine operators had
made no move for several weeks to
renew negotiations with Mr.. Lewis
and a strike following the vacation
seemed certain.
Miners Left the Pits
A few days before the start Of
their vacation, the miners assured
themselves of deal" They left
the pits in protest" against enact
ment of the Taft-Hartley law. It
was very timely, and removed any
uncertainty the steel people may
have had about stepping into coal
negotiations.
Mr.. Fairless got himself a power
full ally in the person Of George M.
Humphrey. chairman Of the Pitts.
burgh Consolidation Coal Co.,
worlds largest commercial producer.
Mr.. Humphrey pulled into the deal
the operators Of the entire North
ern Appalachian region. Mines Of
the steel companies and Northern
operators produce 40 per cent OF the
Nations coal.
Mr.. Fairless and Mr.. Humphrey
called on Mr.. Lewis, and the way
the coal operators reported they
negotiated" made the veteran ne
gotiators tear their hair.
How 1t Was Done
One prominent coalman likened
the operations of the two to foot
ball player who forces his way into
q game at a crucial time, picks up
the ball and runs like mad to make
a touchdown for the other side
In any event, veteran negotiators
of the coal operators are sure they
could have made smaller settle
ment. Whether they could havs
done it without very costly strike
will never be known. e
According. to the operators,
Messrs. Fairless and Humphrey
opened things by offering to meet
in full Mr. Lewis wage and hour
demands. That, the operators say,
was calculated to "flabbergast' Mr..
Lewis into acceptance. An old
hand at such things. Mr.. Lewis was
unmoved. He rejected the offer.
pointing out there were considera-
tions other than wages. His de-
mand for a 10-cents-per-c coalition
welfare fund, for example. The
Government in Its agreement with
him had given only S cents per ton
of the operators money for the
welfare fund.
Things broke UP right there. But
within a few days Mr.. Fairless and
Mr. Humphrey were back in Wash
ington. Mr. Lewis, knowing he had
the steel industry over barrel, 50
to speak, drove hard bargain. He
played out the string and came up
with more than he had hoped for,
about everything he wanted.
Lewis Strategy
The regular coal negotiators are
critical of the steel people because
they say Mr.. Fairless and Mr..
Humphrey made the original wage
offer to Mr.. Lewis without first
ascertaining what the miners boss
might be willing to swap in return.
All of this illustrates the power
and influence of steel over other
basic industries, as we'll as the
power of Mr.. Lewis over the entire
economy.
Back in May, the operators and
miners started contract talks and
apparently we're making progress
toward agreement. Mr.. Lewis re-
portedly was anxious for a con-
tract. Suddenly, according to the
operators, he lost interest in an
agreement at that time. II that Is
so, he must have realized suddenly
that there would be ahead more
favorable days for negotiation.
In past years Mr.. Lewis has bar.
gained to advantage on an industry
wide basis This time he hit pay
dirt by splits in the industry. First,
Southern operators broke away
from the national group. Then,
the steel industry became nervous
and split off. Mr.. Lewis simply
took the most vulnerable group and
made his bargain with it, holding
out the terms to the rest Of the
industry together again, having the
signatures of all important operators
on a single contract.
Steel's Attitude
Steel officials say they moved into
the negotiations because they be-
lieved a coal strike at this time,
with the supply of steel and finished
goods already short Of demand.
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