Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-10-27
Kaiser Breaks Away

It probably is true that the Kaiser
Steel Corporation was in better posi-
ton to settle its strike than are some
OF the other companies.
KaiSer'S is relatively new opera
ton, its mechanical equipment is of the
best, and its work force on the whole
is composed of younger men. Kaiser
employs about $500 of the 100000 men
who have been on strike. Yet it produces
some per cent of the Nations total
steel output. This, on its face, indicates
that Kaiser produces more tons of steel
per worker than the national average.
Therefore, it is reasonable assumption
that Kaiser, in contrast to some Of the
other companies, is in favorable posi-
ton to absorb higher production costs.
Nevertheless, when all such argu-
mentS have been made, the fact remains
that KaiSer's break-away is going to put
heavy pressure on the other companies
to sign up. And there are some pro-
visions in the Kaiser contract which
may offer inducements to the rest of
the industry.
On the issue of work rule changes,
by far the most difficult in the dispute,
Kaiser threw in the sponge. Abandoning
the industry's insistence on binding
arbitration of this question, Kaiser
agreed to the establishment of union
management committee to negotiate
changes in the rules. Edgar F. Kaiser,
chairman of the board, said he has faith
that the committee members twill nego-
tiate seriously and that their efforts will
be fruitful. STILL it is an arrangement
which leaves the union in a position to
prevent any changes If it wishes to do so.
The most interesting feature of the
new contract is the provision creating
nine-man committee of industry, union
and public members to devise means of
effecting savings in production costs
and, presumably, for an equitable Shar-
ing of any economies which may result.
This feature was hailed as a new and
promising forward step by spokesman
for both management and the union.
According to Mr.. Kaiser, the committee
"haS tremendous opportunity to pio-
neer a new era of labor-management
relations" And union officials voiced
the hope that the plan will forever
negate the necessity of strikes in the
future"
AS with all such things, the proof
of this pudding, we suppose, will be in
the eating. Still, it is a hopeful Develop
ment in the steel industry, and it con-
eeivably could point the way to a more
rational adjustment of labor-manage-
ment disputes.
Just how much attraction this fea-
ture will have for the remaining mem
berS of the industry committee remains
to be seen. It is clear, however, that
their bargaining position has been
weakened by the Kaiser settlement, and
that they have small chance Of nego-
tiating contracts for themselves which
give less than the Kaiser agreement.
This is the more true If the contract,
as Mr.. Kaiser claims, is nomination.
airy and will not require price change
Eat this time" Furthermore, there may
be some Soul-Searching over this pro-
nouncement from the Kaiser manage
ment: 1--WE believe this agreement is an
excellent example of management and
union responsibility. We believe it can
and will benefit the company, its stock
holders and customers, and its en-
ploVeS"