Evening star., 1949-10-26
Qualification Needed
In Steel Strike Report
OF Fact-Finding Board
Trouble Seems to Lie in
Use of Words on System
Setting Up Pension Plan
Bv David Laurence

SSttthS OP tSHStofI IIuH
By David Laurence
Clarifcation of the statements
made by the Presidents Fact
Finding Board could readily settle
the steel strike.
This could be accomplished by
reconvening the board. provided
both sides in the dispute agreed
to make such a request.
Ever since the fact-finding re-
port was made public, many Diff
ferent interpretations have been
placed on what was meant by
the board on the subject Of social
insurance as we'll as pensions.
The trouble seems to lie in the
use of the words "contributory'
and mon -contributory" with re-
spect to the systems that might
be used In setting up social in.
surance and pension plans. The
board used both terms. but failed
to indicate exactly how the use
Of either or both Of the words
could actually result in an ade-
quate pension plan for the work
erS.
True Objective of Plan.
After all, the true objective Of
any social insurance or pension
plan is to give employees adequate
protection. Determination of the
costs of furnishing an adequate
system of social insurance and
pensions involves careful study as
well as estimates by expert ac-
tuaries. The board frankly stated
that its calculations were based
on the unions estimates, and
these, according to steel company
experts, would by no means pro-
vide a $100-a-month pension, even
including social security.
Originally it was contemplated
that the social insurance features
would be decided now and a joint
study would be made on the sub
ject of pensions in time for nego-
tiations on the contract expiring
In April. 1850.
The board itself undoubtedly
did not intend to be different in
its approach to the plans that
should be used for social insur-
ance as distinguished from those
that should be used in the mat
ter OF pensions. But plainly there
was contradiction in the report,
Thus, with respect to social in
surance. after arguing that the
general trend in private indus
try has been a non -contributory
system, the board nevertheless
said:
"Of course, as a result OF bar
gaining, 1t is possible that the
parties may agree that the en-
ployer should pay the 4 cents to
buy some of the items in the
plan at the level requested by the
union, and that the workers
should pay cents or some other
amount to buy other items re-
quested. In any event, as pointed
out above, 4 cents will provide a
substantial social insurance pro-
gram. BY genuine good-faith COL
lective bargaining. the parties
might agree on any combination
Of social insurance benefits along
these lines"
Here. without question, the
board indicated that it was not
inflexible in its suggestion and
that way can be worked out by
genuine good-faith collective
bargaining" to develop some plan
that would be adequate and in
which both parties would con-
tribute.
Use OF Word "Guideposts."
In the case of pensions. it was
never intended that that ques-
ton be settled Immediately. and
the board recommended that a
joint study be made. Then the
board declared:
"a few guideposts are recon-
mended. While the level of bene-
fits may be changed by agreement
of the parties from time to time,
the basic features must be fixed
at the outset. For the reasons
already mentioned. the plan
should be non-contributory. We
believe that the retirement bene-
fits recommended herein should
be added to amounts available
under title II of the social security
law.
"The questions as to whether
the payments should be uniform
fiat one or should vary with the
years of service and the rate of
earnings. and whether there
should be a minimum number of
years to qualify for a pension,
and what that minimum should
be-all these questions should. we
recommend, be left to collective
bargaining after a full study has
been made of all these factors u
The ambiguity lies in the use
of the word "guideposts." Certainly
In any Joint studies the parties
could we'll start out with desire
to develop a non-contributory
plan and wind up with the discov-
ery that It would not be ADEQUATE
1t is reported that the board
members felt that the same eau
ton which they applied to social
insurance and the same thoughts
which they had toward working
out these matters by collective
bargaining also could be applied
to the pension issue.
1t is Oh these ambiguous points
that a clarification is needed.