Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-12-01
Steel Strike Autopsy
Miqht Show Workers
Suffered Big Loss
Executive of Small Firm
Says What Murray Won
Wos Far From Victory
Bv David Laurence


steel strike reveal? Did Phi
Murray really win a victory, OF
did the steelworkers suffer a sub
stantial loss in wages which they
cannot possibly recover?
The inside story of the stee.
strike will have to be pieced to-
gether gradually as persons who
are familiar with the truth come
to the front with the facts. Prob
ably not a single quotation will be
available from the major COM
panies. But from the smaller ones
the facts will be developed.
Thus this correspondent is ir
receipt Of a confidential letter
from a steel executive, a broad
gagged and liberal-minded indi-
vidual who has enjoyed for a long
time satisfactory relations with
his employees. His is one Of the
smaller companies that did not
play a part in the negotiations
but he undoubtedly knows what
has happened behind the scenes
among the large companies. He
says:
"Since the news of the Bethle-
hem settlement broke, the news
papers and the radio stations have
been filled with references to the
great victory won by Mr.. Murray.
To those who are not familiar
with the facts, a decidedly incor-
rect impression has been given,
As you know, the subject of pen
sions is very complex and involved
Apparently those who made the
announcement realized this fact
which made it easy to inspire the
thought that a great victory had
been won.
From any view I have OF it, the
Bethlehem settlement itself was
definitely q compromise, because
the social insurance. which is con-
tributory, is tied to pensions. The
employe cannot get the pension
without paying for the insurance.
1.-THE Bethlehem pension plan
has been in effect for rs years,
and has always been on a nom
contributory basis. All that Muir
ray got from Bethlehem was an
amendment to the existing plan
under which Bethlehem agreed to
increase its existing minimum to
500 including social security.
Although Bethlehem has been I'M
willing to discuss costs. several
people whose opinion I value
highly have estimated that the
increased minimum pension will
not cost Bethlehem more than six
tenths Of q cent per hour even
though there is no increase In
social security.
bethlehem, on the other hand,
broke Phil Murray's adamant posi-
ton. for which he caused this
costly strike, which was that
under no circumstances would the
CLIO agree to contributory plan
either for pensions or social in
surance. In order to get Beth
lehem's signature to the contract
ending the strike, Murray had to
agree that the men would con-
tribute to the cost.
THE announcement said the
social insurance was to cost 5
cents per hour, the company pay
ing 21a cents and the men 2;a
cents. If the employees want any,
thing additional. they will have to
add to their 21a-cent contribution
Many people who have investi-
gated the Bethlehem social insur-
ance program do not regard it as
being adequate and believe that
1t will surely be necessary for the
men to supplement their payment
Of 2la cents.
Ear From Great Victory"
"As I see it, the Bethlehem set
Element was far from a great vic
tory for Mr.. Murray and the CLIO.
1t was good settlement for Beth
lehem. II Mr.. Murray had had
the real interest of Bethlehem
employees in his heart, and not
arbitrarily threatened to strike
or else the employees and their
families could have been saved a
great. deal of suffering and lost
wages. Bethlehem's management
is very able and intelligent in my
Judgment. In order to prevent
the strike. with the tremendous
costs it involved, they would have
been foolish not to have agreed
to extend their 26-year-old pen
sion plan.
"Nor do I think the settlement
was q great victory for Mr.. Muir
ray and the steel industry gener-
ally. A good many companies al
ready had pension plans which
they were willing to extend. From
the standpoint of pension finance
many Of these plans were much
sounder and offered more protec-
tive benefits than the Bethlehem
plan.
ut is true that there are other
companies which had no pension
plans and very little in the way
Of social insurance. Z The Bethle-
hem settlement coming so sud-
denly after a solid front lasting
four weeks is proving very embar-
RAISING and costly to them. How
ever, 1t must be remembered that
all the companies were willing tt
60 up to 10 cents per hour TO,
pensions and insurance on a con-
tributory basis, but Mr.. Murray
would have none Of that ane
called 4 strike.
Possessing the labor monopoly
in the steel industry. he was able
to force the substitution Of the
Bethlehem plan for the existing
plans. To have his way cost the
steel employees four to eight weeks
wages, not to mention the cost te
the economy generally. Far from
being a great victory it was q
high price for this country to pay
in order that q powerful. head.
strong labor leader might have hi.