Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-06-30
Steel Companies Fall
Into Line on Scent
Increase in Pay

ey the Associated Press
PITTSBURGH, June 30.-The
CIO United Steelworkers had
pen and ink ready today for
basic steel producers to follow
the lead of U. S. Steel Corp.
and sign contracts giving 600, 900
men a 5-cents-an-hour pay in
crease, higher pensions and i'm
proved insurance programs.
United States Steel, employing
10000 USW dues payers and
usually the contract pace setter
for the industry, was first to sign
yesterday.
A few hours later, the second
largest producer, Bethlehem
Steel Co., agreed to~the same
basic settlement and said it
would sign for its 10000 en-
ployes in New York today. Jones
g. Laughlin Steel Corp, the
fourth largest producer with
about $4,000 USW employees,
signed the same agreement as
U. S. Steel.
Two more basic producers fell
in line early today. They are
Youngstown Sheet & Tube Co..
with $4,000 employees, and Cruel
BILE Steel Corp, with 10000.
Pittsburgh Steel Co., employ
ing about $4,000, came to terms
with the union last night.
Other Signings Due.
A spokesman for the big union
headed by David j. Mcdonald
said all other basic steel pro-
ducers with which the union has
contracts expiring at midnight
tonight are expected to be in
the fold soon He explained they
could either formally sign con-
tracts or memorandum that
they will agree to the basic pat
tern established by United States
Steel
Average hourly rates under
the new United States Steel con-
tract, which runs for two years,
will be from S2.19 to 1929. The
scent increase becomes effec-
tive tomorrow
Big Steel said its starting rate
will become $1.57 an hour land
the present spread of 5l2 cents
can hour between job classes is
retained. >
The general wage increase is
being applied uniformly to each
of the rates IN the 80 job class
rate scales now in effect.
The insurance and pension
benefits take effect November l.
The insurance program will be
frozen at It's new level two years
and the pension plan for three
years.
Big Steel explained its pen
sion setup this way:
It now pays a minimum PEN
sidn of $10O a month to en-
ployes with 25 years service.
This includes Federal Social Sc
cusity Under the new plan, an
employe retiring at IS with 80
fears or service will get a mini
mum pension of $40 monthly,
including social security. The
agreement calls for Big Steel to
keep the present differential if
social security benefits are
boosted.
Each Side to Pay More.
y. S. Steel workers and the
corporation each will pay an ad-
ditional 2 cents an hour for
the improved insurance program.
Under the old plan. the COM
pany paid 2l2 cents an hour
and the employees the same.
The union estimates the pen
sion improvements will cost
about 5 cents an hour for each
worker. Mr.. Mcdonald estimated
the total contract cost at about
IL cents an hour. The company
didn't comment.
As soon as word of the con-
tract agreement came there was
speculation in industry sources
that steel companies ultimately
might boost prices by 81 to "a so
q ton. No company would COM
ment.
Auto makers, home appliance
producers and other manufac-
turerS who use steel adopted
a wait and see" attitude before
commenting on what effect the
new contract may have on
them = and millions of con-
sumerS.
Company Floats Loan.
Meanwhile, United States
Steel announced plans for the
sale of $500 million in serial
debentureS maturing in / to 10
years. A corporation spokesman
said the new financing, which
would mark United States Steel'S
first public borrowing since