Evening star., 1952-03-23
Key Officials Reported
Fearful Of Steel Pay
lnfIationary Effect
Wilson and Aides Meet,
But Take No Action on
WSB's Proposals
By the Associated Press

Some highy-plaeed officials yes
terday were said to be alarmed
over the possibility that wage
board recommendations for settle
ment of the crucial steel wage
dispute might injure the anti-in-
fiation program.
Defense Mobilizer Charles E,
Wilson, Economic Stabilizer Roger
l.. Putnam and Price Director
Ellis Arnall met to consider the
recommendat atioaSs
Informed sources said some OF
those at the meeting brought up
the idea of issuing a statement
questioning possible .inflationary
aspects Of the proposals by the
Wage Sterilization Board.
It was decided, however. to issue
no statement but I to wait lIntil
President Truman has had 4
chance to study the boards pro-
posals. '@ #
The wage board yesterday made
public the full text of the recon-
mended settlement and a copy
was dispatched Immediately to the
President at Key West, Fla.
Proposals Not Binding.
The WSB's recommendations
are not binding on either the
producers or the union.
The proposal calls for a three
installment pay boost totaling
TN cents an hour for 650,0OO
CIO steelworkers. other wage
benefits which the board said
would amount to cents an hour,
and the union shop, which would
compel workers to belong to the
union.
AS soon as the recommendations
were announced, the. union post
poned a strike threatened for
midnight tonight.
Nathan p. Feinsinger, board
chairman, called the recommends
tionS "in all respects fair and
equitable and not unstabilizing."
He said they are "well within
the boards regulations and poll
cieS. supported by board action in
previous cases and moderate as to
amount"
Disagreement ON Cost.
One high stabilization official
told a reporter the package pro-
poSal was the largest Government
recommended increase on record.
He noted that the cost of living
went down last month, for the
first time since last summer but
that the proposals call for a 21a
cent increase for the steelworkers
in July and a similar boost next
January.
Industry members of the l8-
man board, who voted against
most Of the recommendations sup
ported by the public labor mem
Der majority. said they would have
a major inflationary impact on
the economy"
They said the recommendations
went beyond the amounts per-
mitted by existing board regula-
tions and policies"
Major steel producers said the
proposed settlement would com
pletely wreck the Governments
stabilization program"
They estimated the total cost
Of the package proposal. direct
and indirect. at about go cents for
each employee hour and said to-
meet the cost they would have toI
increase the price of steel about
sI2 q ton.
Mr.. Feinsinger, Using figures
which he said were supplied byI
t1e industry, put the direct labor
costs at less than IS cents perl
hour.
Bargaining to Start.
Separate bargaining, negotia-
ions between the union and
companies start this week in vari-
BUS cities.
In Pittsburgh, John A. Stephens,
1ice president and chief negotia-
or for United States Steel Corp,
wired Philip Murray. union presi-
lent. that the company viii begin
negotiations Wednesday If it re-
;eives Oficial notification of the
WSB's recommendations by to-
morrow.