Evening star., 1949-11-03
Bethlehem 5eH|emenl
Raises Question Was
Strike necessary
Steel Firm and Workers
Shore Contributions
To Social Insurance

Share Contributions
To Social Insurance
By David Laurence
Was a steel strike really neces-
a,y? The settlement just an
rounced between the Bethlehem
steel Company and the steel
workers union is plainly one that
could have been achieved, with
that company at least. by nego-
tiation without a strike.
The Bethlehem Company had a
on-contribusory plan. anyway.
The issue, therefore. was not
~lether pensions should be wholly
company financed or one to which
the employees contribute.
AS it turns out. the employees
md the company share equally the
contributions to social insurance
while the pension payments re-
main as they have been for sew
eral years at Bethlehem on the
on-contributory basis.
The exact amount that the
workers get for pensions cannot be
measured now on an hourly basis
at all. The Bethlehem plan has
provided heretofore minimum of
$50 month. but the benefits ac-
tually amounted to S85 a month
and now these will 60 up to S10O,
which. is what the ct-finding
board recommended.
Point Escaped Notice.
There is one point, however
which has escaped notice. It is
that the Bethlehem Company
pledges itself to give increased
benefits to persons already on the
pension rolls though they are no
longer members of the union and
are retired. This means a liability
SO high that it is doubtful whether
an accurate measurement of its
cost can be made in general for
various companies without great
deal more factual information.
1t is estimated that in the case
OF one company the cost might
run as high as $100.000,000. This
means a liability that can only
be assumed with the full approval
OF stockholders. Arrangements
and boards of directors may settle
with the union and urge in good
faith that the agreement be ac-
cepted but stockholders meet
ings will have to be called and
the matter voted on by the true
owners of the companies.
Another important point which
cannot be measured is the effect
of changes in the Governments S
own Social Security system.
Thus there are many plans in
Congress for an increase in both
worker and employer contribu-
tions. Some of the current settle
ments provide payments of az
cents an hour by the workers and
IA cents an hour by the COM
panies for social insurance. Then
the remaining S cents of the origi-
nal 10-cent package" is paid for
pensions by the companies. This
means at least a 7l2-cent contri-
button from the employers.
When. however. Congress changes
the Social Security law. it could
,,appen that the workers would be
Increasing their own contributions
2ward pensions and a credit
Guild be given the Employers for
is, thus splitting the cents for
-nsions.
X Must Work Out Details.
1t Is plain that it will take sew
Il weeks to work out the final
.ails Of the pension agreements
-itl the unions. and then stock
'.olders' meetings will have to be
'?eld to get ratification. If stock
FOLDERS refuse. there may have
to be renegotiation and modifica-
ton Of some features of the con-
tract.
The original recommendation
Of the Presidents finding
board that there be a Joint study
of pensions is going to be carried
out as practical necessity.
Tentative agreements or contracts
embodying the principles may be
adopted now but there will be no
chance to begin operation Of the
plans with the new features until
some time In 1850. Incidentally,
some phases of the plan will have
to get the approval of the Bureau
Of Internal Revenue so as to de-
termine whether there are any
discriminatory features as between
union and non-union employees
The Bureaus approval is neces-
sary II a company wishes to be
assured that its payments for
pensions and social insurance will
be accepted as tax deduction.
The more the various plans are
developed, the more it will be-
come apparent that here was a
subject that should have been ne
gotiated in collective bargaining
conferences. just why Phil Mur-
ray refused to negotiate with any
OF the large companies and then
suddenly. during his CIO conven-
tion-when it helped his prestige
brought about a conference and
in day Or two worked out a set
tlement is one Of the questions to
which Congress ought to seek the
answer. The innocent bystanders
have paid millions of dollars out
OF their pockets as the expense of
that maneuver.,
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