Evening star., 1949-09-12
The Steel Report


The report of the Presidents steel fact
finders, while commendable in many
respects, casts much doubt over the future
value of collective bargaining contracts.
Through the give and take of collective
bargaining, the United Steel Workers en-
tered into contracts with the steel industry
which could not be opened this year ex-
cept for discussion of general wage rates
and certain specified kinds of social in
surance The language of the reopenlng
clause was clear. In case of doubt as to
it's meaning the contracts further pro-
vided for arbitration to ascertain the true
intent.
Philip Murray and the steel workers
chose to scrap these provisions OF their
agreements. They contended that de-
mand for pension was%a a demand for
wage increase, within the meaning OF the
contract clause, and when the steel COM
panies disagreed, the union refused to
arbitrate. The unions position, in effect,
was that it would determine the meaning
of it's contracts and enforce that deter
mination by strike action.
The fact-finding board agreed that the
contracts, with one exception, could not
properly be reopened for bargaining on
pension demand. It went on to rescue
Mr.. Murray and the union, however, by
concluding that pensions are negotlaole
issue under the Taft-Hartley Act, and
recommended that the companies, subject
to further study, grant an industry
financed pension program. In short, the
board bows to a strike threat and points
the way to successful breach OF contract
by the union. That is notable victory
for Mr.. Murray and his associates, but 1t
will contribute nothing to the future OF
the collective bargaining process
In contrast, the boards stand on the
union demand for fourth-round pay
increase was fortnight and sensible. Thls>
matter was carefully considered, and the
conclusion was that no case could pe
made for another pay increase at tnlS
time. The board found that the steer
workers have Jared unusually well IN
the matter of wages in relation to otner
workers and stockholders. 1t found that
the upward trend of living costs has been
reversed, and rejected the argument that
another pay advance is needed TO rem
force the national economy by bolsterlng
purchasing power. 1t refused to accept
the union estimate of the industry's pront
position. and acknowledged that fourth
round pay increase in steel would SET tne
pattern for other pay raises in other indus
tries.
weighing these and other factors, the
hoard concluded that the steel workers
were not eouitably entitled to a pay in
crease. and further held that to recon-
mend one would be to penalize the country
as a whole for the benefit OF the steel
employees. On this basis, the board took
an uneouivocal stand against the pay
demand.
This. in turn, means that the union,
assuming it's willingness to abide oy 1ne
boards recommendations, will have TO oe
satisfied this year with fringe dement's IN
the form of pensions and social insurance
at an estimated cost equivalent to wage
increase of 10 cents an hour.
There is much to be said for the boards
views in this field. Most people will agree
with it's contention that all industry, IN
the absence of adequate Government pro-
grams, loves an obligation to workers 10
provide for maintenance of the human
body in the form of medical and similar
benefits and full depreciation in the form
of old-age retirement the same way as
it does now for plant and machinery"
This, of course cannot be carried beyond
the point of industry's ability to pay Nor
should industry be called upon to set up
non-contributory medical and pension
programs in competition with Governpent
activities in these fields. But all forward
looking industrial leaders are increasingly
conscious of this obligation to their en-
ployes, and the steel board will have &C
complished a great deal If its recommen-
dations lead to reasonable and whole
some adjustment of this issue in the steel
industry