Evening star., 1949-09-11
a A, The Issues.


ing the 1947 collective-bargaining
contracts between the companies
IN the basic steel industry and the
union.
The main issues are:
!. Wage-rate increases. - The
union requests q general wage
rate increase of 1917 cents per
hour. This the companies refuse.
2. Social insurance program
This is defined as insurance
against death or total and perma-
nent disability, benefit payments
during temporary disability caused
by sickness or accident occurring
off the job, and hospital and sur
gical benefits. The unions esti-
mate of the cost of providing the
benefits which it requests is 6.27
cents per hour on the basis of a
2,000-hour work year. 1t requests
that the companies pay the full
cost. AS to the request for this
program, some Of the companies
reject it entirely and some have
indicated a willingness to bargain
with respect to- it,.
3. Pensions. - The union re-
quests a program paid for en-
tirely by the companies providing
a uniform pension of $125 per
month for each worker retiring
voluntarily at age 65 or later, and
also a pension of $50 per month
for a worker retired for perma-
nent disability after 10 years Of
service, to be reduced to $125 per
month at age IS. The unions esti-
mate of the cost Of this program
is 1923 cents per hour per worker
on a basis of a 2,000-hour work
year. This demand the companies
reject on the ground that the
subject of pensions is not now
bargainable under the reopening
clauses.
B. Wage Increases.
Under this heading the board
has considered the economic argu-
ments of both. sides, not only as
they relate to the steel industry
but also as they relate to the
economy as a whole. While these
economic considerations have a
more direct bearing on wage rates
than on the other two issues of
social insurance and pensions,
they serve also in part as the
economic justification for the
recommendations made hereafter
on such other issues.
/. Criteria for conclusions:
There are no mathematical
formulae by which to settle the
question of whether wage rates
or labor costs should be increased
at any particular time in a par
ticular industry or particular
plant. The board seeks to form
its best Judgment based upon two
major inquiries: Y ..e--e~-f ,
a. The first major inquiry. rs
the present position of the steel
workers inequitable In earnings
as compared with those of other
groups in the economy? This in
wolves the following three sub
sidiary considerations:
Cd Are the the. steelworkers in
an inequitable position as COM
pared with other industrial work
ers?
co Are they suffering any irl-
equity as;compared with certain
other groups whose economic well
fare depends substantially upon
the steel industry. namely. the
corporations themselves, their
stockholders, and the consumers
of steel?
90 Are they suffering any in
equity as compared with all other
ome-receiving groups In the
general economy outside the steel
industry?
Ability to Pay.
The subsidiary criterion listed
above as co includes a considera-
ton of employers ability to pay"
increased wages rates; and among
the important factors to be con-
sidered in such determination are:
(a) The increased productivity
(output per man-hour) of the in
dustry:
Cd The level of profits earned
over a period of years and cur
rently;
(c) The percentage of plant ca
pacity that must be utilized In
order to break even";;
I'd The probable movement of
raw materials, prices and other
costs.
=. (b.) The second major inquiry.
What would be the probable effects
of granting the unions demands
on the general level of economic
activity in the country as whole?
The argument advanced by the
companies that, on reopening
dispute such as this, the only cri-
terion to be considered is the
change that has occurred since
the contract was originally made,
is not tenable here. The parties
themselves did not ascribe this
meaning to the reopening provis-
ion, as was evidenced by the facts
and arguments they presented;
they treated the merits OF the
dispute as though it was the ne
gotiation of a new wage rate.
Furthermore, the argument can
not apply to items like social in
surance and pensions where neith-
er was originally included in the
contract.
2. Findings in The Above Criteria.
(a.) Steelworkers in relation to
workers in other industries
Cd The steelworkers' present
average hourly earnings of about
s1.65 compare favorably with all
other manufacturing workers.
Their average hourly earnings
have risen more in cents per hour
since 1889 and 1941 than those of
manufacturing workers as whole
and more than those of the dur
able-goods workers; in very few
industries, manufacturing or non