Capital Journal, Salem, Ow,t Monday, October 81, Ititlg
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The costly and unnecessary steel strike is now in its fourth week. The country
at large is beginning to feel its disastrous effects. Employees and employers
have already suffered serious financial losses. The situation will grow worse if
the strike continues.
This strike was ordered by Philip Murray, President of the United Steel
workers of America (CIO). He and his Union must accept full responsibility
for the strike and its damaging consequences. United States Steel did not want
a strike and tried hard to prevent it.
More than three weeks have elapsed, and no proposal of any kind has been
made, to us by the Union for a settlement of the strike. On the contrary, the
Union stubbornly adheres to its original ultimatum that we must agree in ad
vance to pay the entire cost of insurance and pensions for our employees.
That is the only issue. Unconditional surrender by us to this ultimatum is the
price which the Union demands to call off its strike.
In an endeavor to negotiate with the Union a sound and fair program of in
surance and pensions, United States Steel offered to pay up to 10c m hour per
employee (more than $50,000,000 a year) toward the cost of insurance and pen
sion benefits, the employees to make some additional contribution. This 10c was
the amount which the Presidential Fact-Finding Board recommended we should
pay. Our offer was flatly refused by the Union. It insists that we must pay the
entire cost of such insurance and pensions.
The insurance program proposed by United States Steel would provide
greater welfare benefits for our employees at less cost than our average
employee is today paying under existing insurance and welfare plans. There
fore, our proposed insurance program will not reduce his take-home pay,
We have had long experience with an employee-pay-nothing (non-costribu-tory)
pension plan. We found it necessary to adopt a contributory pension plan
ten years ago. More than 60,000 of our employees today participate la this con
tributory plan.
Contributory Social Security
Has These Advantages:
1. Larger insurance benefits and pensions are
provided
When the employee and the company both contribute,
the larger contributions permit better social security bene
fit!. 2. A contributory plan is safer
Company pay-all plans are uncertain. There may soma
day be no money or no company. Employees suffer, if the
plan fails.
Furthermore, the contributing employee has a direct
interest in the success of the plan. He will then strive to
keep the plan financially sound and within proper bounds,
3. Contributory plans provide savings for em
ployees The employees contributions go into a fund, along with
the company's contribution. In effect, it is a savings
account for the employee's own welfare. Under the usual
contributory pension plan, if the employee dies before
retirement, his family gets his pension contributions with
interest. If he quits, he gets them back, with interest.
Under a contributory plan, an employee always has
something saved up for his protection. Putting aside sav
ings if not a wage reduction.
4. Today's work provides tomorrow's welfare
benefits
Under a contributory plan both the company and the
employee lay aside something for the employee' future
welfare and security. It is not the American way to ask
for hand-out or something for nothing.
5. A contributory plan is a voluntary plan
A contributory plan ordinarily gives the employee a
choice. He can take it, or leave it. The inducement to join
the contributory plan is two-fold. The employee is paying
some of his own money for his protection and for his old
age, and, if he is willing to do that, the company will
more than match all he puts up in order to give him
greater benefits.
Many People Know . . .
That Federal Social Security is contributory.
0 That the U. S. Government and most States have con
tributory pension plans.
That many cities (including New York City) have
contributory pension plans.
That railroad pensions are contributory,
That the majority of plans in American business are
contributory.
But Few People Realize . . .
That many of our employees tell us in letters that
they want to contribute to a sound insurance and pension
, plan. . ,
Thst Philip Murray approved eontributlerw tsy em
ployees when he advised the Way and Means Committee
of the House of Representatives in Washtegteit on April
12, 1M9;
"As to financing, oar members hare been will
ing to pay their due share uf the test of aoeial
insurance.
That the House Ways and Means Committee la
August, 1949, reported to Congress;
The time has come fo reaffirm the basic prin
ciple that a contributory system of social Insur
ance in which worker share directly ta meeting
the cost at the protection afforded -b the most
satisfactory way of preventing dependency,"
That our employees have already lost more pay in this
strike than their contributions toward a contributory
insurance and pension fund would total la a whole year.
That this is not a popular strike with tnany of our
employees,
That the real explanation of the steel strike Is rivalry
between labor union leaders a desire by one labor union
monopolist to outdo another.
Union politics are not a just or sufficient csu?e for the
present stee! strike costly to the public, the employee,
and the steel companies alike.
OUR POSITION: United States Steel favors a proper and financially sound program of insurance and
pensions for its employees. We welcome an opportunity to negtiate a program of this character with the
Union. As evidence of our sincerity, we have made an offer to the Union to pay more than $50,000 ftOO Q
year as our share of the cost.