Evening star., 1949-09-11

.ee-man board for settling the
ruman yesterday. From left to
lman, Judge Samuel I. Rosen-
| University, chairman.
-AP Photo.
ommendation Is that the union
withdraw its request for a general
wage-rate increase.
90 However, with increased ef-
ficiency and lowered costs result
ing from the plant-modernization
program, and with no great de-
crease in the demand for steel.
there should be continued and
higher profits. If these profits do
not result in benefit to the con-
sumer in the form of lower prices,
there would be justification for
the union to renew its demand for
increase of wage rates in order
better to participate in the in
dustry's prosperity.
Decline in Living Costs.
c. Steelworkers in relation to
other income-receiving groups
The cost of living has remained
stable within the last year: in
fact it has slowly declined. The
postwar race between rising wage
rates and rising costs of living has
been called off by the operation
of economic forces. Therefore
there is no inequity in respect to
other income-receiving groups in
the general economy.
d. Findings and conclusions on
increased wage rates In relation
to economy as whole.-With res
spect to the second major criterion
mentioned above-weighing the
effect of granting the unions de-
mands on the general levels of
economic activity in the country
as whole-the board finds:
Cd While the boards findings
and recommendations are based
on the facts and figures Of the
steel industry alone. there is a
probability that a wage-rate In
crease in steel would be urged as
q pattern to be followed lin other
industries; this in turn might well
cause price dislocations, with ad-
verse effects on the general econ
omy and on the steel industry it.
self.
Downward Trend Flattened.
ca The course of the "reces-
sion" which started late in 1913
and manifested itself in increased
unemployment and in a decline in
gross national product seems to
have flattened out or turned up
ward. In three of the four main
components of the gross national
product, slight increases were ex-
perienced in the second quarter of
1949. Since the low point of
July. 1949, there have been up
ward movements in production
and employment, with declines in
unemployment; this has been
established by official Government
publications. AS late as the day
before yesterday, September 8.
1949, these improvements were
again reported by the Bureau of
the Census and the Federal Re-
serve Board. Steel operations,
which were at slightly over 10 per
cent of capacity in July, 1949. have
moved up steadily to a point more
than 86 per cent of capacity as of
last week.
, CD While there may be condi-
tions in particular industries which
require correction through wage
adjustments, in general it seems
desirable at this time to stabilize
the level of wage rates. In the
steel industry we have not found
such conditions or inequities and,
for all the reason stated, do not
believe there should be a wage rate
now. General stability
is desirable now in order that con-
sumers and dealers may have con-
fdence in the price structure and
resume less restricted buying
habits.
3. Insurance and Pensions.
g" ca The estimated pet cost OF
these two programs. based upon
the liberal assumption that labor
cost average so per cent of total
cost, would provide
an increase of only 21a per cent OF
total costs on operations of 1000
per worker per year.
(b The substantial profits of
the steel industry in the past two
years and the current reversal of
the downward trend in production
satisfy the board that the net cost
of the insurance and pension
plans herein recommended can be
absorbed without unduly narrow
ing the profit margins Of the in
dustry or its ability to hold or
even lower its prices.
(c). Whereas increases in wage
rates depend upon profits of COM
panies under relatively current
conditions and over relatively
short periods of time, social in
surance and pensions especially
pensions-involve long-range con-
siderations because, once installed,
they cannot well be discontinued.
The Social Obligation.
(d) For that reason, although
immediate and generally foresee-
able ability to pay is very impor-
tant in wage-rate determinations, ;,
it Is not as important In the ques-
1