Evening star., 1949-10-27

IOIleCnve DdIydlIlIIly
In Aluminium Industry
Leaders Chose to Rely
On Economic Power
To Put Over Demands
By David Laurence
Is collective bargaining about to-
be killed of by organized labor
itself?
This question may well be asked
in view of the refusal Of major
unions to bargain collectively in
the steel or the coal or the alumni
mum industries. Instead, the
union strategists have chosen to
rely on economic power to compel
capitulation to union demands.
Thus, the most conspicuous
proof of the failure Of unions to
utilize collective bargaining ap-
pears in the aluminium industry.
where q strike was called a few
days ago even though the Alumi-
mum Co. of America offered plan
for pensions and social insurance
which would be company financed.
The company proposal followed
closely the lines of the recon-
mendations of the Presidents
fact-fnding board in the steel
industry-6 cents for pensions and
( cents for social insurance.
The offer nevertheless was re-
jected and negotiations were
broken off and a strike called by
the CIO union, primarily because
another union of steelworkers was
engaged in a strike and 1t was
desired not to permit the lighter
metals to gain a competitive ad-
vantage over steel.
MISUSE OF rover.
This is a fragrant misuse Of eco
nomic power. It means that
unions which have won q position
in one industry can control the
action of unions in an entirely
different industry. Certainly
there is no privilege granted under
either the original Wagner Labor
Relations Act or the Taft-Hartley
Act which permits unions to ig-
more their obligations to bargain
collectively. The major unions.
conscious of their enormous eco
nomic power. are. however. actu-
ally exercising control of produc-
ton in unrelated industries.
The antitrust laws used to be
Interpreted by the courts to pro-
tect the public interest against
such misuse of monopoly power.
But in recent years the Supreme
Court has immunized the labor
unions against such an interpre-
tation. Hence, only by amending
the present laws can the public
interest be safeguarded as against
monopoly power.
The attention Of the public has
been focused on the coal and
steel situations, and relatively
little attention has been paid to
what is happening in aluminium.
The strike has caused loss Of
business in compelling buyers to
go to substitutes. The loss in
volume probably will not be re-
captured.
Here is an instance Of an eco
nomic attack on an innocent
party which has caused wide
spread damage. Yet there is no
legal way at present Of reaching
the source Of the injury-the at
titude of the unions which act In
concert with other unions.
If the program being followed
by the CIO in tying up the alumni
mum industry-even though the
employer has announced his will
ingness to meet the employees de-
mands-is not checked. it will en-
courage the same sort Of action
in many other industries. Col
lective bargaining will not be re-
sorted to by the unions because
they will be able to effect such an
economic paralysis as to bring
about governmental Intervention.
Want Intervention.
Indeed, the coal and steel stu
ations have reached the point
where the leaders actually want
governmental Intervention. What
can be the value Of bargaining
collectively. they say to them
selves, and making any conces-
sions If a friendly administration
will seize the employers proper
ties and set up tribunals to issue
reports favoring the union side?
When there is more to be gained
by governmental Intervention
than by collective bargaining, the
latter process will become a mere
formality.
President Truman has waited
patiently for the labor leaders in
the steel and coal industries to
come to some agreement with the
employers. The record shows
that, in the case of coal, after
many weeks of negotiations the
employers do not know today
what are the real demands of the
coal miners union.
Likewise, in the case Of steel,
the CIO union chiefs have not
bargained as they promised. They
accepted the report of the Presi-
dents fact-f1nding board as a
basis Of bargaining when it was
made. After much persuasion
they resumed negotiations. But
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