Evening star., 1960-01-05
Immediate Price Rise
Doubted by Mitchell
Continued From First Page

Continued From First Page
layed beyond tomorrow's dead
line.
The National Labor Rela-
tions Board postponed voting
by workers on their employers
last offers to give all the COM
panies time to settle with the
union. No votes will be held if
all companies settle. Voting
had been scheduled for next
Monday. Tuesday and Wednes-
day.
Roger NJ. Blough, board chair
man of the United States Steel
Corp. answered queries about
steel prices in a statement late
yesterday, saying his company
proposes to continue the gen.
eral level of its prices for the
immediate future" He con-
tinued:
THE recommended (by the
Eisenhower administrator set
tlement will add materially to
our present costs and if the
development of competitive and
all other factors affecting prices
dictates a change in olr Situa-
tion, we will necessarily be re-
quired to take whatever steps
are then indicated-but for the
present we do not plan any
change in the general level of
our prices"
Cost Rise Estimated
He estimated the new con-
tracts will increase the indus
try's employment costs by an
average of 3la to 3s4 per cent
per year. This increase, he
said, 'is certainly less infla-
tionary than the historical in
cEeaseS which have averaged
about 8 per cent over the last
20 years" But, he said, the
settlement cannot be called
noninflationay.
Secretary Mitchell said he
does not believe the companies
will need to increase steel prices
Immediately. but added that
no one can forecast the future
David J. Mcdonald, president
Of the union, told a rally in
Buffalo, N. Y, last night that
the wage and benefit package
Is 40 per cent bigger than man.
agement's previous offer. the
Associated Press reported.
:. "All the Way"
I'VE emerge from these ne
gotiations with the greatest
contract, the best conditions
the Steelworkers have ever en-
joyed." he declared, claiming:
I'VE haven't won a little bit,
we haven't won it part way,
we've won it all the way"
Mr.. Mcdonald said a COM
mittee established under the
new pact may please God, :"
avert future strikes. 1t was un-
derStood that the committee
will try to produce a formula
for equitable sharing. without
strife. Of the industry's increaS-
ing wealth among workers.
stockholders and the public.
Settlement of the bitter dis
pute eliminated the threat of
a new strike January 26, the
expiration date Of Taft
Hartley Act Injunction which
sent workers back to their jobs
November z. They had been
on strike 116 days. Negotia-
tions starting last May failed,
resulting in the strike July is.
Mr.. Blough made it clear in
a. television speech last night
that he is not as happy as
Mr.. Mcdonald about the settle
ment. He estimated it will cost
the industry more than 81 bill
lion. But he said the agree
ment was a. compromise, with
the union scaling down its
previous demands.
The settlement, he said, sis
not what we tried so long and
so hard to obtain"
Reasons Listed
Mr.. Blough said manage
ment accepted the settlement
recommended by Vice Presi-
dent Nixon and Secretary
Mitchell because:
l. The union had won Sub
stantial" settlements in alumni
mum and other industries, and
was prepared to subject the
Nation to another crippling
strike" to win in steel.
2. The Government was de-
termined to prevent a new steel
strike, by legislation If neces-
sary.
8. Past experience indicated
the long, unhappy road" of
Government Intervention would
lead to IAN enforced settlement
(that) would be no more ia
vorable than the one which
the Government (through the
Vice President and Secretary
MitchelD had proposed to us"
for voluntary acceptance.
4. Government action to en-
force a settlement might result
in serious consequences" for
the companies, the union and
the Nation.
5. The recommended settle
ment constituted probably the
only terms which could con-
ceivably win even reluctant
acceptance from both sides"
Secretary Mitchell told re-
porters late yesterday that he
and the Vice President achieved
the settlement by laying out
the alternatives" in a very
practical doWn-to-earth" man.