Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-05-01
Mitchell Urges
Authorization
Steel Formula
BY LEE M. COIN
star star Writer

Secretary OF Labor Mitchen
Is stepping up Government
pressure for a non-infiationary |
wage settlement In the steel
industry.
He appealed last night for
Irresponsible" bargaining byl
management and labor because
I'VE consumers are getting very
suspicious Of further price In
creases."
While the Secretary's pre-
pared speech did not specifical-
ly mention steel negotiations
starting next Tuesday. he left
no doubt that he was talking
mainly about steel In his plea
for self-restraint. He addressed
the American Assembly. an in
fiuential discussion group. at
Hartman, N. X.
Sees Jobs Loss Possible
Workers, he said. should
recognize two things - first,
that jobs may be lost in some
industries If prices get so high
that consumers may not buy
the goods they produce, and,
second, that rising prices shrink
the value Of our own pay
checks"
Domestically, he said, "the
consumer is looking more care
fully before he buys. and grum-
bling about prices" In export
markets, he continued, Ameri-
can producers face a stiff
challenge" from foreign COM
petitors. The Secretary cited
declining sales Of autos to IL
lustrate both points.
Higher profits or higher
wages. resulting in higher costs
and prices that consumers
won't pay, mean that some
people may pay with their
jobs" he warned.
Balance Vital
Discussing a central issue Of
the steel negotiations, Mr..
Mitchell said increases in la
Dor costs for the economy as a
whole ought to be so related to
productivity improvement that
increases in price levels will not
result" He defined produce
tivity roughly as output per
man hour.
But he cautioned against
basing wage increases on rigid
productivity formulas, without
considering other factors. "Ap-
plying such productivity aver
ages mechanically is like taking
the average size of a dozen
assorted men and making them
all wear the average size suit.
he said.
At any rate, he said, labor
and management should re-
serve for consumers a bigger
share of the benefits of produc-
tivity, in the form if improved
quality or lower prices.
The Secretary urged workers
to concern themselves with
'real wages, not merely money
wages"
And he warned management
that 1T is not always possible
to take the easy way out, of
passing along all cost increases
to the customer" He urged
companies to trim inefficient
practices and tighten up to face
competition" In some cases,
he continued, management
would benefit by cutting prices
and "reassessing attitudes to-
ward profit margins"
Urges Responsibility
Labor and management
should negotiate responsibly on
their own without depending
heavily on Government inter-
vention, Mr.. Mitchell said. Un-
less unions and companies bar
gain in "the public interest"
he added. Government may
wind up dominating labor-man-
agement relations.
Mr.. Mitchell, nevertheless, is
expected to play key role be-
hind the scenes when steel ne
gotiations reach the crucial
stage shortly before the current
contract expires next June 80.
He probably will be the Eisen-
hover administrations main
agent in pressing for a settle
ment that will not raise steel
prices.
The American Assembly peri
odically brings together leaders
from various fields to consider
major national issues. 1t was
founded in 1850 by President
Eisenhower when he was presi-
dent Of Columbia University
Columbia's Graduate School of
Business sponsors the meetings.