Evening star., 1951-12-02

The current steel negotiations are
expected to tell whether the Gov
ernment's rather shaky wage controls
will stand against the onslaught Of
q powerful labor union. Actually,
the future of the whole fight against
imitation may hang on the outcome
Of what already is known in stabili-
zation circles as the "steel case"
If sizable wage increases are OBJ
tanned by the IL million steelwork-
ers, they are sure to be followed by
sizable increases in the price of
steel. This would. in turn, raise the
cost, and the price, of almost every
thing because steel is used so widely
in both civilian and defense pro-
duction.
The negotiations were started last
week in Pittsburgh and other steel
centers by the powerful United
Steelworkers Of Philip Murray and
the various big producers of steel.
The main ring is occupied by Mr..
Murray. who is president Of the
steel union as well as the CIO, and
the giant United States Steel Corp,
producer of a third of all Americas
steel. The contract expires Decem-
Der 81.
AS background Tor the talks are
statements by Mr.. Murray and other
union officials that they will not
permit Government wage policy to
stand in the way of them getting
what they think the steelworkers
deserve in the matter of wage in
creases. In fact, union leaders have
said they were out to smash controls.
And the parent CIO has adopted the
policy that the Government should
not tamper with a wage increase.
regardless of size, that is approved
in free bargaining by an employer
and a union.
Specifics Come Later
The steelworkers have couched
their wage demands in general terms.
They are demanding a substantial
increase. Some time this week the
negotiations with U. S. Steel may
reach the point where Mr. Murray
will become more specific. The best
guess is he will demand something
like a 25-cent per hour package"
settlement. That is, he will call for
Is cents more per hour for his men in
the way of direct wage payments and
so-called fringe" benefits such as
paid holidays and vacations, wider
pay differentials for workers on
night. early and Sunday shifts.
Whatever is the size of the Murray
demand, he has made it clear his
union would not be satisfied with the
pay raise they would be allowed with
in the limits of present control policy.
It would appear they are entitled to
very little under regulations of the
Wage Sterilization Board The board
permits an increase of 10 per cent
over wage levels of January. 1850.
and cost-of Living increases since
January, 1851, at the rate of l per
cent in wages for each / per cent
rise in the Government living cost
index. ss
The steelworkers received the 10
per cent in the wage settlement of
about l6 cents made with the indus
try on December / last year. They
would be allowed slightly over
cents an hour to compensate them
for the 3.4 per cent rise in living costs
since last January. However, there is
provision for exceptions in wage
regulations Under that provision the
wage board might allow living cost
adjustments starting in October, 1850
the date the steel industry contract
was last reopened. If that is done, the
steelWorkers might be allowed a
little more than 13 cents an hour
increase.
Price Jump Due Anywoy
The pay of the average steel plant
worker. exclusive of overtime, is
S179 an hour, according to the Labor
Department. The American Iron and
Steel Institute puts the figure at
s1.97. BY institute figures, the aver
age pay at the end of World War II