Evening star., 1952-06-07
IodaY'sSession
On Steel WAGES
Seen asCruciaI
Report Of Higher
Offer by Companies
Is Not Confirmed
By james Y. Newton

NegOLlaCOrS resumed their efforts
to settle the flve-day-old Nation
wide steel strike today amid indi-
cations that contract bargaining
had reached the critical stage.
Federal officials said it should
be clear before the day is over
whether the representatives of the
"big SIX steel companies and CIO
United SteelworkerS would reach
early agreement on a peace pact
or whether the talks will break
down.
The negotiators refused to con-
firm or deny reports that the in.
duStry had made a new wage Of
fer to CIO President Philip MUIR
ray aimed at settling the strike.
These reports were to the effect
that the companies late yesterday
offered the striking union an in
crease of 20 cents an hour in
wages and fringe" benefits. This
would be a larger offer than the
industry last made over a month
ago. But it was considerably short
of the 26-cent-per-hour settle
ment package" proposed by the
Federal Wage Sterilization Board.
Room for Bargaining Seen.
The union has been holding out
for the full WSB proposals, but
officials close to the negotiation
believed there was room for bar
gaining in the unions position.
The reported offer of the COM
panies was for a contract lasting
only until next January /. It
called for a 15-cent increase in
wages of the workers, which now
average about $1.90 an hour, and
5 cents in paid holidays, improved
vacations and late shift differen-
tials. Previously the companies
had offered total boost of 17h
cents per hour.
1t was indicated that the con-
troversial demand of Mr.. Murray
for union shop was still one of
the big barriers to agreement.
Under the union shop all en-
ployeS of the steel companies
would be compelled to join the
union within a stated period.
The Wage Board said the workers
were entitled to the union shop.
The negotiations today moved
into the historic Cabinet Room of
the White House. The talks were
being watched closely by John r.
Steelman, assistant to the Presi-
dent and acting defense mobilizer.
Mr.. Steelman had no comment
last night after the second all
day session of the negotiations
recessed.
Progress Indicated.
The fact that all sides were
maintaining tight-lipped silence
was an indication that the negoti-
ators may be making progress
toward a settlement and that the
talks had reached critical stage.
The 650,000 workers in the basic
steel industry struck Monday
minutes after the Supreme Court
ruled President Truman's seizure
of the steel mills unconstitutional
The President had acted to pre-
vent walkout.
Meanwhile, the Government
prepared to channel all available
steel into the manufacture Of
weapons if the walkout continues.
Secretary of Defense Lovett told
a news conference yesterday that
in view of the very grave situa-
tion," the Defense Department Is
asking its weapons contractors to
shift to non-struck plants for
steel to turn out certain critical
items. He did not name the items
but said such action could take
care of only a small fraction Of
the steel needed for weapons.
Direct Contracts Considered.
Mr.. Lovett also said the depart.
ment was considering making di-
rect contracts with these still
operating mills. But he added this
is mot a very promising field"
Defense officials said about 81
plants are not struck, none of
them major. steel producers.
In answer to a news conference
question. Mr.. Lovett said the De-
tense Department had considered
but rejected placing orders direct
with the idle steel companies to
bring into play section of the
Selective Service Act which could
permit Government seizure Of
plants if the orders remained un-
filled.
Mr.. Lovett commented that
studies under way for weeks on
the subject showed prospects of
obtaining steel by this method
were mot very hopeful"
The National Production Au.
thority, meanwhile, drafted the
order that would restrict steel de-
liVerieS from the still-operatin0