Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-06-21
Steel Farley
Nears Crisis;
U. 5. |sA|oof
BY LEE M. COIN
star star Writer

AAAS GioCiiLlOWCI duLLllLlloJIh-
tons is sticking to It's hands-ofi
policy as steel labor negotia-
tons enter the decisive week.
Informed officials see almost
no chance Of direct Govern
ment intervention unless q
strike drags on long enough Ia
cripple the economy matter
of perhaps two or three
months.
Often In past strike crises,
the Government has tried To
prevent or shorten a walkout,
But this time 1t is felt Presi-
dent Eisenhower sees a strike
as a lesser evil than an infa-
tionary settlement.
Negotiators for leading steel
companies and the United
Steelworkers Of America re-
sumo bargaining sessions to-
morrow In New York. Unless
they reach agreement by June
30. the expiration date for the
current three-year contract, a
strike shutting down about 90
per cent Of steel production is
likely July /.
An Earlier Deadline
The practical deadline will
come even sooner-next week
end - when the companies
would start banking their fires
in the absence Of a settlement.
Steel operations must shut
down gradually to prevent
damage to furnaces and other
facilities.
Little progress has been evi.
dent in the negotiations that
started May 5. But a strike l;
by no means certain. Protractec
preliminary maneuvering Is ira
ditional in labor management
disputes. Ultimately. the tor
men on each side get together
quietly for realistic bargaining
It is not completely clear
whether the steel negotiator;
will be ready for this stage be-
fore a strike.
President Eisenhower has re.
jected the idea Of calling tor
steel management and labor To
a White House conference, OF
otherwise intervening directly
in negotiations. His aides say
he viii go no further than IL
continue to exhort both side;
to protect the public interest.
Management Is Strong
Steel management is in q
relatively strong bargaining po.
Sition this year. and Mr.. Essen.
hover evidently believes pros.
poets for a non-inilationary
settlement will be brightest II
the union and the companie,
are permitted to fight their owr
battles. In the past. Govern.
ment Intervention has some
times forced management tc
give ground.
This hands-of policy has
kept the Federal Mediation and
Cancellation Service out Of steel
negotiations. Joseph F. Finne-
gan, director Of the service, has
said he will not enter the case
unless invited by the parties,
and there is no sign Of an early
invitation.
Mr.. Finnegan will. however,
talk informally here tomorrow
with Roger M. Blough, board
chairman of the United States
Steel Corp, and r. Conrad
Cooper. the United States Steel
vice president who is chief ne.
gotiator for the industry. Mr..
Ffnnegan ehatted last Monday
with David ]. Mcdonald, presi-
dent Of the United Steelworkers.
The object in both cases, Mr..
Finnegan said, is merely to
keep posted.
President Eisenhower could
postpone or halt a steel strike
by invoking the 80-day COOLING
of period provisions Of the
Taft-Hartley Act. This law au-
thorizeS injunctions when
strikes endanger the national
welfare.
But aides doubt the Presi-
dent will use this power under
foreseeable circumstances.
Steel production has spurted
and steel users have built up
inventories in recent months.
Although a strike would cause
some bottlenecks, the economy
probably could weather a fairly
long work stoppsge without suf-
fering really crucial damage.