Evening star., 1951-12-30
Government Hopeful
CI0 SteeIworkers
Won't Call Strike
By jones Y. Newton

By jones Y. Newton
Government officials held high
hopes last night that the CIO
United Steel Workers will de-
eide to postpone indefinitely a
Nationwide strike of the steel
industry.
The time of decision will be
next Thursday when the union
headed by CIO President Philip
Murray opens an extraordinary
two-day convention in Atlantic
City.
In the absence of agreement
on new contract with the steel
companies. the Union had called
a strike of $4,000 men for New
Years Day. The present con-
tracts expire tomorrow midnight.
But Mr.. Murray's Policy Com
mlttee decided to throw the whole
question of strike and contracts
before the 0-delegate conven-
ton which was called just for
that purpose. The steelworkers
were told to stay on the job until
they heard the convention de-
ciSIon.
Steel Firms Accept Plan.
Highly placed Federal officials
were confident the leadership of
the union will urge the conven-
ton to go along with President
Truman's suggestion that they
submit the dispute over wages
and other issues to the Wage
Sterilization Board for it's settle
ment recommendations. The
steel companies have accepted it.
In the event Mr.. Murray and
other leaders recommend the
peaceful approach to the problem.
it was held almost certain the con-
vention will agree to a lengthy
postponement of strike action.
The Wage Board has requested
union and company officials to
meet here January at which
time procedure would be estab-
liShed for hearing of the dis
pute. Subsequent recommended
tions for settlement would not be
binding on either party.
Mills in High Gear.
The industry, as a precaution-
ary move to build up supplies as
much as possible if strike de-
velops, threw its mills into high
gear and produced 2,027.000 tons
of finished steel the past short
work week.
Mr.. Murray's union is demand
Ing an average wage increase of
1872 cents an hour and 81 other
contract Improvements. The pay
OF the average steelworker now is
about $40 an hour.
The industry contends the work.
ers already have received wage
increases of a size to more than
offset rises in living costs, and
that it must be allowed to raise
prices if wages are to be boosted
again. This, the steel makers say,
would. set off another dangerous
round of imitation.
Capehart Amendment Is Factor.
Government stabilizers have
said there can be no increase in
steel ceilings to compensate for |
another wage boost. But Office of
Price Sterilization experts are
busy determining the size of the
price boost to which the COM
panies are entitled under controls |
law. This adjustment will be made |
under the so-called Capehart
amendment which says that price
ceilings must reflect nearly all
cost increases incurred by manu-
facturers through last July 26.
The industry would be entitled
to whatever is coming in the way
of higher prices under the Cape
hart amendment even if it were
not faced with new wage demands.
But some Federal officials were
hopeful the price adjustment will
enable the steel companies to make
satisfactory wage offer to the
union. So far the companies have
made no offer.
If the union convention votes
strike. President Truman was
expected to invoke national emer-
gency provisions of the Taft
Hartley act. This procedure is
backed up by injunctive action
that would delay a strike for at
least 80 days.
A steelworkers' local at Inland
Steel Company's plant at Indiana
Harbor, Ind, agreed yesterday to
resume wage talks after first vot-
ing a strike on New Years Day
The plant employs about 10000.