Evening star., 1952-04-16
u. 5. Prepares TO Deal
Directly With Union
On Steel Contract
By james Y. Newton

The Government today was pre-
pairing to deal directly with the
CIO United Steelworkers on wages
and working conditions for the
steel industry.
But the steel producers were
ready to fight any attempt at I'M
position of a Government-union
contract. Attorneys for the pri-
vate companies already had
drawn the necessary papers to
seek a court order restraining
Federal officials from raising
wages out of industry funds.
The industry lawyers, who so
far have failed in efforts to block
Government seizure and opera
ton of the steel mills, believed
they would have a good chance to-
prevent any changes in working
conditions.
- Mediation Efforts Fail.
The Government threat to deal
directly with the union came after
breakdown of efforts to mediate
the long wage dispute between the
CIO and the producers. Acting
Defense MobiliZer John r. Steel
man and Nathan P. FeinSinger,
chairman of the Wage Stabiliza-
ton Board. gave up on mediation
late yesterday.
Soon afterward, Secretary of
Commerce Sawyer, boss of the
mills under Federal operation, is
sued the following statement:
Il shall proceed promptly, but
not precipitately, to consider the
terms and conditions of employ
ment as was instructed to do"
The reference was to President
Truman's seizure order which gave
Mr. Sawyer the authority to i'm
pose new conditions of employ
ment.
Patterned on WSB Findings.
officials connected closely with
the steel dispute have indicated
for several days the Government
might move to put into, effect at
least some of the new contract
proposals made by the Wage
Board. These proposals. or at least
the entire package" of them,
have been rejected by the steel
industry.
Mr.. Sawyer might put into effect
the 1912 cents per hour wage
boost and 81 cents per hour in
fringe benefits which the board
headed by Mr.. Feinsinger said the
Steelworkers should have imme-
diately.
It was held highly unlikely.
however, that the Government
would order into effect the union
shop which also was proposed by
the board.
The board said, too, the workers
should get extra, pay for Sunday
work. But that proposal was not
to be effective until next January
/. Additional pay boosts of az
cents per hour, under board rec
concentrations, would be granted
on July ! and January /.
Whether CIO President Philip
Murray, who also headssth steel
union, would settle even with the
Government for less than the
Wage Boards entire package. how
ever. was problematical. To do
SO, he may feel, would weaken the
unions case. "
Support Steel Industry.
More than 100 Of the country'sI
leading industrialists were stand
ing firmly behind the steel in
dustry in its fight with the Gov
ernment.
They pledged full cooperation
In the fight in a meeting spon-
sored by the National Association
of Manufacturers and the United
States Chamber of Commerce.
''Mr. Truman's (seizure) action
imposes upon Congress and the
courts" the industrialists said in
statement, "the necessity of un-
doing his seizure of the steel mills,
a step which places the freedom
Of every American in jeopardy"
The group said that when the
President took over the steel in
dustry ''he violated the same con-
stitutional principle which pro-
tects every citizens property right
in his own home. He violated the
Bill of Rights.
His action was drastic step
toward the naturalization of all,
business"
The industrialists called on Con-
gress to prevent Federal seizure
of property in connection with
labor disputes and to prevent the
Government from changing wages
and working conditions under
seizure
The steel companies hold they
are unable to meet the contract
concessions suggested by the Wage
Board unless they are permitted
to boost steel prices substantially.
They put the cost of the pro-
posals at $12 per ton. The Gov
ernment has said they will get
only So per ton price increase.