Indianapolis Times, Indianapolis, Marion County, 25 April 1952 — Page 25
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FRIDAY, APR. 23, 1052
THE INDIANAPOLIS TIMES
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hy Talks in the Steel Wage Dispute Are Stalled
A Report to the American Public
Millions of Americans are asking why negotiations in the steel-labor dispute have stalled.
The chief reason is that the union refuses to
budge an inch from its demands for the full pack-
age of wage stabilization board recommendations.
Under these recommendations the union wants the highest i increase in wages and in fringe benefits in the industry’ s history. And in addition it
' wants the power to force every man who works in
the mills to join a union.
‘On its part the industry, faced with demands which would lift its costs more than $1 billion an-
. nually, wants the government to grant fair and rea-
sonable price relief to compensate for increased
costs. And it opposes the compulsory union shop.
How Prices Stand
It is important to set the record straight on one point. The steel companies have never asked nor “insisted” on a price increase of $12 a ton. They have asked. only for fair and equitable treatment on prices, if labor costs advanced. -
The figure of $12 a ton would be the ultimate cost to the companies if the inflationary increases
recommended by the wage stabilization board be-
come effective. How is that figure reached?
The direct employment costs to the companies of the W. S. B. recommendations would be 30 cents an hour per employee or $6 a tn. There have been
~ five earlier rounds of wage increases and other
costly benefits since V. J. day. In each of them the cost of goods and services the steel companies must buy went up by nearly the sarhe amount as the increase. This time that would add another $6 in costs a ton, or $12 in all. : :
The revenue of the steel fudustry J is simply not
' adequate to permit it to “absorb” a further cost increase of $6 a ton or more without a compensating
price increase.
The companies had hoped to help check infla-
* tion by holding the line on both prices and wages.
However, the W. S. B. recommendations shattered
that hope.
The price administrator has said an increase of only about $3 a ton will be allowed. The companies were entitled to this increase under the Capehart amendment to cover increased costs between the outbreak of fighting in Korea and July 26, 1951, prior to any demands for wage increases. In the interest of stabilization no request for this increase was ever made by the industry.
Some in Washington cite the income of steel.
companies before taxes as alleged proof that they
can-absorb more than $1 billion in added costs. But
"the effect of that absorption would be to reduce
their taxes by two-thirds of a billion. ‘The loss in taxes would have to bé¢ made up by
action of congress to increase taxes. If not that,
then by g government borrowing, or by the printing of new monéy. This would be inflation pure and simple.
That is why the tax payers and consumers of America will bear a large share of the cost of the W. S. B. inflationary recommendations.
The Union Shop
Another big stumbling block to agreement between the companies and the union is the compul-
sory union shop endorsed by the W. S. B. Under
the inion shop no man, not a member of the union, _ could work in the mills. ”
The companies believe it wrong to interfere in ‘any respect with an individuals decision as to . whether he will or will not join a union.
The Broader Issues -
- The controversy has created grave economic = and constitutional issues more important by far
than the immediate dispute in steel. These will not be settled quickly or easily, but settled they must
be because—
If the aovernment can arbitrarily seize the steel mills, the property of nearly one million citizens, stockholders of the steel companies—
If it can impose an inflationary wage increase—
If it can confiscate private income by setting prices in ruthless disregard of the needs of the industry to meet huge cost increases—
If it can force compulsory unionism on workCIS
Then our American heritage-of human liberty, the right of individuals, the right to own property, the freedom to work—even freedom of the press— are gravely imperiled.
This is Your Fight
This fight does not concern the.steel companies
alone. It is your fight as well. If you are opposed
to the illegal seizure of property by government
for any purpose whatever, your only recourse is
in the congress of the United States.
It is your privilege as an American citizen to express ‘your views to your congressman and senators on these subjects. —
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Write for copies of the booklet “Facts in the
Steel Controversy.”
STEEL COMPANIES IN THE WAGE CASE
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Room 5401—350 Fifth Avenue—New York 1, N.Y.
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