Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-10-27
STEEL
Kaiser Group to Draft Formula
On Sharing Fruits of Industry
Continued From First Page

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certainly would sweeten their
offer in a major effort to settle
the Gripping strike. 1t would
be difficult for them to resist
mounting economic and politi-
cal pressures.
Even II the Court Of Appeals
upholds the injunction today.
the union could obtain a stay
or postponement of the
order pending appeal to the
Supreme Court. If a stay is re-
fused, the strikers would have
TO start back to work imme-
diately. They could strike again
next January.
Desultory negotiations con-
tinued today in Pittsburgh and
other cities.
Kaiser Steel settled its strike
IN negotiations here late yes
terday. breaking arrangements
solid front. Kaiser employees
started back to work in Fon-
tana, Calf, early today.
Other steel companies in
sisted they were standing firm.
They commended the Kaiser
settlement, estimated at a max
mum 2212 cents per man-hour
over 20 months is inf1ationary.
Despite denialS, several struck
companies were wavering. They
want to settle. But they were
not yet ready to break away
from the United States Steel
Corp. and other industry lead
ers. If an injunction halts the
strike, these companies can
hold out. But if the strike con-
tinueS, they may settle.
Mr.. Mcdonald, ebullient at
the Kaiser settlement, declared
last night: Il hereby invite all
the other steel companies to
come forward, sign this agree
ment, and put 100000 Steel
workers back on their jobs"
Two of the companies re-
portedly wavering Jones g.
Laughlin and Colorado Fuel q
Iron-issued statements deny
ing they would negotiate sep
arate agreements.
But one management source
remarked that they'll keep
saying that until they break
He was not referring to any
specific companies.
Work Rules Unchanged
Government officials were
watching developments closely,
waiting to see if break in the
deadlock will follow the court
ruling. Government mediation
will resume if negotiations stall
or If an injunction sends the
strikers back to work.
The Kaiser contract, which !
will run through June, 1861
provides Improvements in pen
sions, insurance and supple
mental unemployment bene-
hts in the first eight months,
and up to 1872 cents in the Sec
ond year.
Mr.. Mcdonald and Edgar F.
Kaiser, the company'S board
chairman, estimated the pack
age will cost 10 cents per man.
hour in the first eight months
and wage increases in the Sec
ond year.
The union prevailed on the
issue of local work rules. The
industry demands a freer hand |
to change these rules, govern
ing such matters as crew sizes,
rest periods and assignment of
overtime. AS suggested by the
union, the Kaiser contract pro-
vides for ilnion-company COM
mittee to study work rules and
automation. The committees
recommendations will not be
binding.
Both sides were enthusiastic
about the contracts establish
ment of another committee ito
develop a long-range plan for
equitable sharing of economic
progress"
Will "Share Fruits"
This committee will draft a
plan by next July to share "the
fruits of the company's prog
resS" among employees, stock |
holders and the public-in the
form of wages, dividends and |
possibly price cuts. The formula !
it recommends must take &C
count of the cost of living. sta
bility of employment. output
per man-hour, savings on labor
costs, and expansion of the COM
pany. The committees recon-
mendations will not be binding.
Although the plan bears some
resemblance to prof1t-sharing, |
both sides baked at using the
term.
Recommendations by the
committee can, by mutual
agreement, be substituted for
the wage increases provided by
contract for the second year
of the agreement.
Mr.. Mcdonald said the COM
mittee can forever negate the
necessity for strikes in the basic |
steel industry" Mr.. Kaiser
said he hopes the committee
will produce a formula to ex-
tend the contract at least five
years.
The idea apparently is to es-
tablish a formula for almost
automatic increases in wages
and benefits, without periodic
negotiations and strikes.
Taylor Heads Panel
DR.. George w. Taylor, chair
man of the Fact-f1nding Board
named by President Eisenhower
under the Taft-Hartley Act. is
scheduled to head a three-manI
panel of public" members of
the committee. They will work
with three union and three