Evening star., 1949-09-11

not comment on the recommel
of the steel negotiations before
pressing their own demands.
The board was composed OF DR.
Carroll R. Daugherty of North
western University. a specialist in
the economics of labor; Samuel l.
Rosenman, former New York State
Supreme Court judge and one
time adviser to the late President
Roosevelt, and David l.. Cole OF
Paterson. N. j.. a labor lawyer and
expert on arbitration.
Normal Business Costs.
On the insurance and pension
benefits the board recognized as
la principle that they should be
considered "a part of the normal
business costs" to take care OF
temporary and permanent depre-
citation in the human machine"
just as provision is made for de-
probation and insurance of plant
and machinery.
It recommended, therefore, the
incorporation into the industry's
collective bargaining agreements
of a social insurance plan to be
paid for entirely by the COM
panies and limited to cost OF
$50 a year per worker, or cents
an hour on the basis of 1000
hour work year. The union had
sought 6.27 cents an hour.
Just when such a plan could be
placed in effect, if agreed on by
the industry and the union. is
problematical. Some companies
already have some forms of such
insurance and their present cost
would be included in the overall
figures so that the net cost would
be about 6 cents an hour under the
boards recommendation instead
of 10 cents.
AS for pensions. the board rec
commended that they should be
limited to a net cost of $120 year
per employe, or 6 cents an hour
on the basis of 2,000-hour work
year. The union had asked 1923
cents which with the insurance
and wage increases would have
made up a so-cent-an-hour
package"
Joint Study Urged.
taorI cold that cipao the
pension program involved COM
plicated problems. a joint study
should be made by the industry
and the unions before March /.
1850, when the present contract
expires.
The board estimated the insur-
ance and pension programs would
increase operating costs of the
steel companies by only 212 per
cent.
This added cost, it said. "can
be absorbed by the companies
without unduly narrowing the
profit margin of the industry or
it's ability to hold or even lower
its prices"
The board observed that the
steel industry has Jagged behind
other leading basic industries in
social security and pensions"
1t said negotiations could de-
termine whether the age of IS
years for retirement should be
made permanent. The United
Mine Workers have a welfare
fund providing payments Of 500
monthly above social security
benefits, at 62.
Called Fair Settlement.
The board expressed its belief
that the recommendations "con-
stitute a fair and equitable settle
ment' of the steel dispute, and
added:
Because of the vital Importance
of continued steel production to
the people of the United States
and to the democratic peoples of
the world, we hope the union and
the steel companies will find these
recommendations form a suitable
basis on which they can reach
agreement among themselves"
The members Of the board went
to the White House yesterday and
presented their report shortly be-
fore noon. A little later Mr.. Tru-
man sent kilograms to the union
and industry leaders asking them
"in the public interest" to extend
the truce for II days to give time
for study of the boards recon-
mendations.
He added: IT urge all parties in
the steel industry labor dispute to
cooperate with this request"
Ching Would Assist.
During the extended period, Mr..
Truman said, the Federal Media
ton and Cancellation Service
headed by Cyrus S. Ching will lend
all its facilities to assist the indus
try and union in getting together
on an agreement. Mr.. Ching
sought unsuccessfully to settle the
dispute before Mr.. Truman in
tervened in July.
i The board was set up July is
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EXPERT WASH