Evening star., 1948-04-22
u. S. Steel Denies Pay Raise,
Cuts Prices as C|O CHARGES
Bad Faith But Rules Out Strike
SIoshes Due to Total
S25,000, 900 q Year
On Consumer Items
BY the Associated Press

BY the Assoeioted Press
PITTSBURGH, April 22.-The
United States Steel Corp. today
denied a wage increase demand
ed by the CIO United SteelWork-
ers and announced price cuts
totaling almost s25,OOo,Ooo year
for its products.
The price cuts are effective May /.
Philip Murray, president of the
CIO and the SteelWorkers' Union,
asserted the corporation had denied
"a just and much-needed wage in
crease" His statement emphasized,
however, that the union would con-
tinue to live up to no-strike pledge
in a two-year contract, reopened
for wage discussion.
Benjamin F. Fairless, Steel Corp.
president, declared the unspecifled
wage increase had been denied and
the price cuts effected lin an effort
to halt further advances in liv-
ing costs
Cost Of Living Cited.
Mr.. Murray declared in state
ment: I'VE charge that the corpo-
ration has not negotiated in good
faith on the wage issue. We con-
tend that the corporation has not
given adequate consideration to the
immediate and pressing needs of its
steel worker employees. We assert
that 1t has not recognized the in
crease in the cost of living which
has occurred"
The union and the corporation
have been negotiating since April 5
on unspecifled wage increase de-
mands. The negotiations covered
union workers in all major United
States Steel producing subsidiaries,
including Carnegie Illinois, National
Tube, American Steel & Wire,
Tennessee Coal, Iron 81 Railroad.
Mr.. Murray renewed a pledge that
the union will live up to the cur
rent two-year, no-strike contract.
The pact does not expire until next
spring, but contains clause which
permits wage provisions to be re-
opened.
Negotia tions Broken Off.
1--WE will live up to that contract"
Mr.. Murray declared. I'VE leave to
the forum of public opinion whether
corporations professions are borne
out by adamant and unjustified re-
fusal to grant and equitable wage
increase"
A CIO spokesman said the nego-
tiations with United States Steel "on
this point (wages)" could be con-
sidered broken off.
Mr.. Fairless' statement said:
I'VE, in United States Steel, be-
lieve that costs and prices in general
are too high today for the good of
the Nation. We are firmly of the
conviction that American industry
and labor should comparatively do
everything in their power to avoid
further increases in costs. which, if
permitted to occur, must result in
higher prices for almost everything
we buy
"Harvest of Profit" Charged.
Mr.. Murray contended that United
States Steel has been reaping" a
harvest of profit" while employees
have suffered by rising living costs.
He added that the corporation has
failed to demonstrate any lack of
ability to pay wage increase.
The president of the steelworkers
and the CIO said United States
Steel "belatedly proposes to decrease
the prices of its products by an
amount which it estimates at $685.
100000 annually"
Mr.. Murray added:
This so-called price decrease does
not even total the $28.433,l97 in
crease in certain of its products
which Mr. Ben Fairless testified
would result from the increases
made in February, 1948, alone"
Wire and Nails Affected.
Mr.. Fairless also said:
so far as possible the price re-
ductions will be made applicable to
steel products which have a more
or less direct bearing upon the cost
Of living" He added:
"As illustrations, prices will be
applicable to a number of steel
products which are bought by the
consumer in the form in which
they are manufactured by our SUBJ
salaries. such as nails, wire fence,
wire netting, steel fence posts, steel
roofing and siding, sheets for build
ings. barbed wire and other wire
products; and also to a number OF
steel products which are converted
by our customer into articles for
ordinary use by homeowners. such
as tinplate for the manufacture of
cans, cold rolled strip and sheets
for automobiles. stainless steel for