Evening star., 1952-03-21
Steel

Steel
Continued From First Page.)
members. also over the industry
members objections, recommended
a union shop for the industry.
This was one Of the most contro-
versial Of the unions % demands
on the industry. Under a union
shop, all employees Of q plant are
required to join the union within
a stated period Of time, generally
80 days.
Industry Charges Unfairness.
Industry reaction to the pro-
posed settlement Of the three
month-old steel dispute was quick
and loud. Industry members Of
WSB called the terms unfair and
inequitable."
"It is absurd" the industry
members said in q statement,
that the largest increases in his
tory should be recommended in q
dispute case during q period OF
wage stabilization. And it points
to the obvious conclusion that the
exercise Of dispute function by
this board is entirely antagoniStic
to the principles Of stabilization. !"
The industry officials added 1--WE
cannot escape the feeling that the
dispute processes of the board
have been used as an instrument
of union appeasement."
Steel officials promised addi-
tional statements later in the day.
Shortly after Mr.. Feinsinger,
who early yesterday had collapsed
from fatigue as q result Of the
lengthy conferences, announced
the WSB findings, Mr.. Murray
gathered together first the unions
Executive Board and then its
Wage Policy Committee to indorse
the terms.
Fourth Postponement.
Cancellation of strike plans
marked the fourth time since late
December that the steelworkerS
had postponed q walkout. They
deferred action earlier to allow the
Wage Board time to consider the
dispute.
Under terms laid down by the
WSB, which are not binding on
either party, the union and steel
companies will begin negotiations
Monday in an effort to iron out a
contract settlement. However, it
was clear that the union would
accept nothing less than was rec
commended by the Government.
The steel producers estimate
that each cent per hour in labor
costs adds ~ cents to the cost of
producing a ton of coal. Using
their figures, the total cost Of the
wage board recommendations
would be more than $12 per ton
of steel, average price Of which
now is about 500.
Capehart Amendment Boost.
The steel producers will re-
ceive under the so-called Cape
hart amendment to price control
law a price increase which is ex-
pected to average about 50 per
ton. This boost will be an
nounced in a few days. It will
be allowed to compensate the
companies for cost increases in
CURED prior to last July.
Stabilization officials have said
the industry will not be permitted
to raise prices in order to Offset
the cost of any new wage boost.
They contend the steel companies
are making enough money to
absorb a large wage increase
without impairing their financial
structure. The companies claim
any such arrangement would
bankrupt them.
However. Price Director Ellis
Arnall yesterday limited that the
industry may be able to obtain
price adjustments other than the
increase forthcoming under the
Capehart amendment. This could
be done. he pointed out, If the
steel industry can show that its
earnings have dropped below IS
per cent of it's earnings in the
three best Of four years. 1896
1949.
So far. Federal officials have
denied fatty that any price 'deal''
would be made in order to settle
the steel wage problems. And
they have said unoficially that in
dustry earnings are well above the
standard cited by Mr.. Arnal.
Close to Union Demands
The steelwoEkers demanded an
average wage increase of 181a
cents an hour, Is cents Of which
would go to all workers, and the
other 3la cents toward maintain
ing the pay spread between vari-
Gus classes of. jobs. The 1Tl1a -cent
boost which the WSB recommend
ed they get by next January
nearly meets that demand.
Present average earnings of the
steelworkers, including overtime
pay. is about 50 an hour. Their
pay rates average about $1.81 an
hour. ranging from $1.31 to about
$3.50 in the higher classifications.
On the fringe issues, WISE
recommended . reduction to I
cents an hour in the present dif-
ferential Of 10 cents in pay rates
applicable to plants In the North
and South: increases in differ
entails of pay rates for night and