Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-06-24
The NATIONAL SCENE
StaIemate in Steel

The steel industry, solar plexus
of the American economy, stood
ready today to begin cooling its
furnaces in anticipation of a pos
sible walkout Saturday by $4,000
United Steelworkers.
The unions present contract ex-
pireS at midnight Saturday. With
out q contract the steelmen stay
home.
The "big three" steel companies
United States Steel, Bethlehem
and Republic - were adamantly
sticking with their offer of fixed
annual increases in wages aver
aging ~ cents an hour, full
year layoff pay plan and liberalized
welfare. holiday and vacation ar
rangements. The offer was made
only on condition that such con-
tract last for five years. The
union objects mainly to the five
year term as too long and the pay
offer as too little. 1t is also de-
manding time and-a-half pay for
Saturday work and double time for
Sundays. Many observers believe
the union would sign a three-year
pact with 20 cents worth of benefits
the first year.
Last week David j. Mcdonald,
president of the union, failed in
an attempt to break the solid front
maintained by the big three and
the eight smaller companies. Steel
workers have been successful pre-
viouSly in the divide-and-conquer
strategy, but this time the smaller
companies made it plain that they
were standing Cor falling) together.
The industry seemed to be taking
a page from General Electric Co.'S
book in making its first offer its
final one. This GE strategy won a
five-year contract last year from
the International Union of Elec-
trical Workers. but the same APP
proach, when attempted by West
inghouse. failed and resulted In a
f1ve-month strike.
Poy Equal to Grade ] orS
Average pay in the steel industry
now is $2.46 an hour, roughly
equivalent to the pay Of a Gov
eminent worker in Grade or 8,
but lacking many of the fringe BEN
ef1ts the Government worker en-
joys.
Federal mediators continued to
watch the steadily worsening stu
alton. but there was little likeli-
hood that Uncle Sam would step
in-at least not until the threat of
a strike becomes reality. If a strike
comes, President Eisenhower could
use the emergency provisions of
the Taft-Hartley Act, which might
lead to an 80-day injunction against
continuing the strike.
Should the walkout develop, all
signs point to a lengthy one.
The companies and the union,
which have jointly enjoyed the
profits from several months Of in
ventory-building by users, are ap-
parently well prepared to sit it out.
Many mill workers, flush from the
boomlet, were reported not only
prepared to strike, but even anx-
ious to go fishing in the hot weather
lying ahead.
Users in Good Position
Steel users, too, were generally
In good position as far as sup
plies on hand were concerned. APP
pliance makers, whose sales jumped
40 per cent in the first five months
Of the year. were actually cutting
back on production because of top
heavy inventories. This industry,
like other steel buyers, has been
stockpiling steel for months. Auto
mobile makers, now going through
the throes of a minor depression,
have more cars and trucks than
they can sell, and some companies
plan no more steel-buying until
they begin making 1857 models next
fall.
The only real immediate pinch
would be felt in the heavy con-
StrucJlon industry, winch IN recent
years has commended with an ever
present problem of how to get
enough structural steel. and the oil
drillers, whose week-to-week de-
mand for such specialized products
as seamless pipe and tubing is al
ways heavy.
AS for the steel industry. itself,
a lengthy strike would force 1t to
forego its plans for expansion this
year. If strike should be success
full from the union view, an increase
in the price Of steel would be a
certainty, with the probable cor
responding upward spiral Of wages
and prices throughout much Of the
economy.