Evening star., 1949-07-07
First Big Steel Strike
Since as Threatened
After Talks Deadlock
by me Assosietsd Press

Nation today laced the unreal OF
It's first major steel strike since
1e46.
United States Steel Corp, bell
wether Of the industry. yesterday
said mo" to demands of the CIO-
United Steelworkers for q fourth
round wage increased and for
company financed pension and in
surance programs.
The union Immediately called
a July 13 meeting Of its Wage
Policy Committee to consider
possible strike July 16.
Contract negotiations between
the steel union and the Nations
No. l steel producer were recessed
indefinitely. The talks had just
resumed after a two-week recess.
Conference DeadIocked.
Philip Murray, president Of the
CIO and the steelworkers, told
press conference:
They (the Steel Corp.D merely
say no to the union and they say
30 with an air of complete finality,
the conferences are dead
locked. There is no hope as I See
1t at present of a mutually salts
factory agreement being arrived
at on any Of the issues"
The Steel Corp. turned down
the wage increase. 1t told the
union its refusal to discuss pen
sions could be arbitrated and that
any insurance program would
have to be paid for equally by
union and company.
The present contract has al
most a year to run. 1t was re-
opened this summer on rates of
pay" and insurance. The contract
permits a strike If no agreement
is reached by July 16.
Company Issues Statement.
A statement from United States
Steel covered the union demands
this way:
/. Wages: 1--WE are convinced
that no sound reasons justify an
increase this time. A period of
slackening business activity
through the country is certainly
no time to increase costs of pro-
duction through the imposition OF
higher employment costs. ="
2. Pensions: 1--WE propose that
this issue of whether or not the
contract can now be reopened by
the union on this subject be pre-
sented to the Board of Con-
ciliation and Arbitration for de-
cision." The corporation has in
sisted only rates of pay and in
surance could be discussed this
year.
3. Insurance: THE companies
(six United States Steel subsid-
iaries) continue willing to arrange
for insurance benefits -
but only on the express under
standing that the cost of such in
surance shall be divided equally
between the companies and the
participating employees"
FairIess Warns of Danger.
Benjamin F. Fairless, president
OF United States Steel. said In
New York that with business now
receding in almost every industry
across the land, nothing could be
more damaging to the economy
of the Nation than generally to
increase labor costs at this time"
He added that "the granting
now of a further wage increase
by United States Steel undoubted-
ly would encourage general
fourth round of wage increases
throughout American industry"
Higher wages, ne said, would
result in higher commodity prices.
which would end in increased
consumer resistance, decreased
production and greater unemploy-
ment"
The present wage for steelwork-
ers is $1.69 an hour. A two-month
strike in 1946 resulted in an 1917
cent wage boost. The following
year the union gained Is cents
more an hour and last year an
other 13 cents.
Murray Accuses Company.
Mr.. Murray charged the steel
corporation with "negating" COL
lective bargaining and with ignor-
ing its contractual and legal
obligations to bargain collectively
on pensions. Mr.. Murray said the
Cancellation and Arbitration Board
referred to by U. S. Steel is
no longer in existence. He said
it's chairman was discharged by
the corporation some two months
ago."
The CIO leader charged the
company's offer on social insurance
amounts to 21s cents per hour,
the most niggardly offer that was
presented to collective bargaining
conferences by any corporation in
either recent or current meetings"
Mr.. Murray said John A.
Stephens, Big Steel's vice presi-
dent and it's chief negotiator, told
him the firm would continue ne
gotiations only on the basis laid
down" by the corporation.
The steel union has presented
its wage, pension and insurance
demands to all major basic steel
producers. However, all have held
up their talks-waiting to see
what Big Steel would do.
Others Likely to Strike.
A strike by the 10000 members
employed by United States Steel
probably would be joined by the
unions $50, 900 membership, since
the other steel firms are almost
sure to reject the union demands.
r,rolonped steel strike would