Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-04-01
STEEL
Union Foregoes Increase in Wages
To Obtain Major Gains in Benefits
Continued From Page Al


Continued From Page Al
cooperation and understanding
evidenced by the bargaining
teams on both sides"
In that connection the joint
industry-unio human rela-
tons committee" established in
the settlement that followed
the record 116-day strike in
1859 will be continued with ex-
banded responsibilities to get
down to work on the problems
coming up in the 1868 contract
reopening talks.
With the administration, the
industry and the union all ap-
parently happy at the outcome
today. the settlement also
seemed to be pleasing to indi-
vidual SteelworkerS.
They had clearly no stomach
for a strike this year and, with
heavy job losses due to auto
nation, were mainly concerned
with increased job security.
Job Fears Eased
The expanded vacation and
pension benefits were designed
to help ease those job fears
and create openings for some
longtime industry workers al
ready laid off.
Lengthening vacations is a
technique that was adopted to
share the available work time
as an alternative to the more
drastic step Of reducing the
standard 40-hour work week
first suggested by the union.
The President and Secretary
of Labor Goldberg, a key be-
hind-scenes figure in getting
the talks started early and
concluded successfully, had
cautioned against the wisdom
of a shorter work week.
Mr.. Goldberg in fact got a
commitment from Mr.. McDon-
aid as early as last December
it was learned, to make a real
try to get steel talks started
promptly and concluded early.
The Secretary then talked with
Chairman Roger Blough of
United States Steel and got
the same promise from the in
dustry. When President Ken
nedy met secretly at the White
House with Mr.. Blough and
Mr.. Mcdonald on January %
it was agreed an early and sta
BILE settlement was their COM
mon goal.
Resumption Agreed On
Similarly, when the negotia-
lions broke off here in an i'm
pasSe on March 2, Secretary
Goldberg contacted both prin-
cipals and won an agreement !
to resume talks on March IA.
This was before President
Kennedy publicly called on
both sides to get back into ne
gotiations on that date.
Regular vacations will be
changed in this fashion: Work.
ers with 3-5 years service will
receive two weeks off with nav.
instead Of week off with III
weeks pay now; those with 10
Is years service will get 3
weeks off with pay, rather
than 2 weeks with 21a weeks
pay; those with IS or more
years Of service will get 4 weeks
off with pay instead of 8 weeks
off with 31a weeks pay.
In addition, there will be an
extra week special vacation for
every two years of service after
December 81, 1860. This means
that 25-year employees, for ex-
ample. will have a 5-week va
cation beginning next year, and
a six-week vacation beginning
January l, 1864. and SO on.
These special extra weeks of
vacation can be saved I'D by
employees, with the amount Of
money involved earning inter-
est and payable to the employe
in cash if he wants it.
Minimum Of 80 Hours
The industry agreed to put
3 cents an hour into this new
savings and vacation plan"
and to boost the present s.
cents an hour contribution to-
the supplemental unemploy-
ment benefit plan fund to 91a
cents an hour.
1t was agreed an employee will
receive a minimum 80 hours of
regular pay in any week wheth-
er he is required to work that
long or not.
Retirement was made more
attractive, in an effort to open
up more jobs, by increasing
benefits both for older employees
at age IS and those forced by
unemployment to retire at an
earlier age.
The union, which had sub
Stantially abandoned a cost of
living adjustment clause in the
1859 strike settlement, ended
it entirely in the new pact, ex-
cept that present living cost
allowances remain in effect.
Higher Benefits
Additional financing provid-
ed for the supplemental unem-
ployment benefit plan, the
union said, will minimize the
risk that SIlch benefits will hove