Evening star., 1949-09-15
Steel Industry Stand
places Question Of
Strike Up 10 Union
By the Associated Press

II ! 1o0O1NS4As oSPc' 49, "A
nationwide steel strike on Sep
tember Is is a distinct possibility
United States Steel Corp, bell
wether of the industry, says it
will not accept The presidential
fact finding boards steel peace
formula without bargaining.
The next move is up to Philip
Murray, president of the CIO
United Steelworkers.
Mr.. Murray forced the issue,
He told Benjamin F. Fairless,
president of United States Steel
that he wasn's satisfied with Mr..
Fairless' initial answer that bar
gaining be without COM
mitting Big Steel to the board S
findings.
1t didn't take Fairless long to
reply. Within few hours he
told Mr.. Murray the labor chief
can't dictate United States Stssl's
acceptance of the boards recon-
mendations as condition to bar
gaining.
But Mr.. Fairless reiterated he
is perfectly willing to resume
negotiations. Mr.. Murray didn't
comment. His aides said they
don't know when, or if, he will
In giving United States Steel's
reaction to the presidential
boards report. Mr.. Fairless made
| it plain he didn't like many OF
the recommendations. He was
particularly angry at the boards
suggestion the industry bear the
entire cost of a pension plan.
Peace Formula Suggested.
The board suggested this peace
formula:
l. The union should give up de-
mands for a wage increase.
2. Labor and industry should
work out company-financed pen
sion plans to go into effect next
year.
3. The union and company
should work out, now satisfactory
insurance plans-also paid for by
employers.
Mr.. Murray promptly accepted
all the boards recommendations
Six steel companies said they
would be willing to resume nego-
tiations. But none committed
themselves to the fact finders
recommendation for a 1o-cent
hourly package covering insurance
and pensions.
Mr.. Fairless had this to say:
In spite of the fact that the
cost of producing steel will be In
creased by any new contributory
program of social insurance
United States Steel is willing tc
pay up to 4 cents an hour. the
amount suggested by the presi-
Dental steel board. as its proper
share of the cost of proper pro-
gram for social insurance on
contributory basis arrived at
throughout collective bargaining.
UnaIterably Opposed.
Mr.. Fairless minced no words
when he fatty declared Big Steels
unalterable opposition to any pen
sion plan which is financed en-
tirely by industry. He said that
"as a matter of sound principle
any program of social insurance
should be on contributory basis. u
Then the head of the world
largest steel company said:
"At first glance, a cost OF 1C
cents an hour for social security
Under the recommended non-con-
tributory program may seem like
a small amount. But when applied
to the steel industry, the cost OF
such a non-contributory program
would be approximately 5000. .000,-
900 a year when operating at full
capacity, as in 1948. That would
be the equivalent of adding So to
the cost of each ton of steel pro-
duced in the country last year.
Mr.. Fairless explained carefully
that his company is not opposed
to the principles of pensions-only
that he wants the men who make
steel to chip in and help guarantee
their own future.
The veteran steelmaster said Big
Steel for many years has had both
a pension and a group life insur-
ance plan, adding:
I'm the current labor negotia-
tions, United States Steel has not
opposed a proper program Of social
insurance financed jointly by en-
ployer and employe. In fact. 1t
has twice previously made to the
union a very liberal proposal for
social insurance ="
State Systems Cited.
Mr.. Fairless hammered away at
the non-contributory plan. saying
"The contributory principle has
become firmly established in this
country over a period Of years as
something which is sound, desir-
able and equitable. The largest
of all social insurance programs
is that provided by the Federal
Social Security Act. To support
that Federal program, employer
and employe each contribute an
equal amount. a,
"Au of the State systems which
have thus far been established
to provide non-occupational dis
ability benefits require employees
to contribute a substantial part
Of the cost. A large majority OF
the industrial group life insurance
plans now in effect, including