In answer to this question we are submitting three exhibits, with explanatory notes: (1) Basic data, (2) cost per hour of original union demands, and (3) cost per hour of Wage Stabilization Board wage package.

EXHIBIT 1

Jones & Laughlin Steel Corp.-Basic data used to determine hourly cost of USACIO demands and W. S. B. package shown on exhibits 2 and 3

(Data based on 12 months ending September 30, 1951)

1. Number of wage earners in steel plants__.

25, 550

2. Average number of wage earners in steel plants who worked on the 6 holidays now provided in a year__

14, 534 52, 148, 445

52, 100, 000

3. Total hours worked by wage earners in steel plants.. Used_

4. Hours worked by wage earners in steel plants on all Saturdays in the year--

5. Hours worked by wage earners in steel plants on all Sundays in the year--.

6. Straight time average hourly earnings (includes incentive earnings and shift differential).

7. Average straight-time pay for a day (8 hours by $1.765).

8. Average time and one-half pay for a day (12 hours by $1.765).

6, 623, 652

4,725, 621

$1.765 $14. 12

$21. 18

EXHIBIT 2

Jones & Laughlin Steel Corp.—Original economic demands and average cost per

hour worked

[The cost of union demands Nos. 2, 3, 5, 8, 10, and 11 was not estimated]

4. Shift differential premiums of 10 cents for the second shift and 15 cents for
the third shift, an increase of 6 cents and 9 cents, respectively.
6. Premium pay for work on Saturday or Sunday as such, Saturday at time
and one-half, and Sunday at double time (note A attached).

7. Eight paid holidays. For any work performed on any of those 8 holidays, employes would receive 212 times the straight-time wage rate. present contract provides 6 holidays at time and one-half pay for only those employes who work (note B attached).

The

Including additional cost of existing overtime premiums, pensions, social security, and vacation provisions.

96315-52-pt. 4 -17

NOTES TO EXHIBIT 2

NOTE A-COST OF PREMIUM PAY FOR SATURDAY AND SUNDAY WORK

The 27.9 cents for employees represented by USA-CIO was determined by increasing the existing payroll for Saturday and Sunday work as follows:

(1) Dividing $12,010,000 by 52.1 million hours per year gives 23.05 cents per hour. (2) Increasing 23.05 cents by 12.6 percent for the effect of increased wage rates by demads 1 and 4 gives 25.95 cents. (3) The incidental cost effect of social security, pensions, and vacations increases the 25.95 cents by 7.33 percent giving 27.85 cents: Call 27.9 cents.

NOTE B-COST OF PAID HOLIDAYS

Total Cost of 8 paid holidays per year:

Not worked, 25,550 employees by 8 days by $14.12.

Add for those who work holidays, 14,534 employees by 8 days by $21.18.

Total annual cost.

Present cost of 6 holidays per year: 14,534 employees by 6 days by $21.18.
Additional cost per year (or the difference)..

(1) Dividing $3,501,788 by 52.1 million hours per year gives 6.72 cents per hour.

$2.886, 128

2,462, 641

5,348, 769

1,846, 981

3, 501, 788

(2) Increasing 6.72 cents by 12.6 percent for the effect of increased wages by demands 1 and 4 gives 7.57 cents. (3) The incidential cost of social security and pensions increases the 7.57 cents by 3.5 percent, giving 7.83 cents: Call 7.8 cents.

EXHIBIT 3

Jones & Laughlin Steel Corp.-Cost of Wage Stabilization Board package after Jan. 1, 1953

1. A general wage increase of 171⁄2 cents per hour..

4. Shift differential premiums of 6 cents for the second shift and 9 cents for the third shift, an increase of 2 cents and 3 cents, respectively.

6. Premium pay for work on Sunday as such, at 14-time pay (note A attached)

7. Six paid holidays. For any work performed on any of those 6 holidays, employes would receive 2 times the straight-time wage rate. The present contract provides 6 holidays at time and one-half pay for only those employes who work (note B attached).

9. Vacation allowances to be increased:

Including additional cost of existing overtime premiums, pensions, social security, and vacation pro

visions.

NOTES TO EXHIBIT 3

NOTE A-COST OF PREMIUM PAY FOR SUNDAY WORK

The 4.3 cents for employes represented by USA-CIO was determined by increasing the existing payroll for Sunday work as follows:

(1) Dividing $1,870,000 by 52,1 million hours per year gives 3.59 cents per hour. (2) Increasing 3.59 cents per hour by 10.6 percent for the effect of increased wage rates by benefits under demands 1 and 4 gives 3.97 cents per hour.

(3) The incidental cost effect of social security, pensions, and vacations increases the 3.97 cents by 7.33 percent, giving 4.26 cents: Call 4.3 cents.

NOTE B-COST OF PAID HOLIDAYS

Total cost of 6 paid holidays per year:

Not worked, 25,550 employes by 6 days by $14.12.

Add for those who work holidays, 14,534 employes by 6 days by $14.12

Total annual cost.

Present cost of 6 holidays per year: 14,534 employes by 6 days by $21.18.
Additional cost per year (or the difference)

(1) Dividing $1,548,935 by 52.1 million hours per year gives 2.97 cents per hour.

$2, 164, 596

1, 231, 320

3, 395, 916

1,846, 981

1, 548, 935

(2) Increasing 2.97 cents per hour by 10.6 percent for the effect of increased wage rates by benefits under demands 1 and 4 gives 3.28 cents.

(3) The inci lental cost effect of social security and pensions increases the 3.28 cents by 3.5 percent giving 3.39 cents Call 3.4 cents.

Senator FULBRIGHT. What they asked for, you considered would cost you 54 cents an hour; is that correct?

Mr. ELLIOTT. Yes.

Senator FULBRIGHT. What did you offer them in return?

Mr. ELLIOTT. We made no monetary offer to them as such and for very good reason.

Senator FULBRIGHT. Why not?

Mr. ELLIOTT. When you are bargaining collectively, you do not give away your ace in the hole in the form of money until you get some of the things that you want. There were in this case something over 100 issues, many of which were important to the management in its operation of the plants. We attempted to get somewhere on those, but there was no opportunity to do that. We could not arrive at any meeting of the minds on those points.

Senator FULBRIGHT. My time is up and I will reserve further questions until later.

Senator CAPEHART. Your questions are very good. Do you have more?

Senator FULBRIGHT. I will return to those questions later.

You have 5 minutes.

Senator CAPEHART. You said time and a half for Saturday and double time for Sunday would cost 272 cents an hour?

Mr. ELLIOTT. Yes.

Senator CAPEHART. Do you work 7 days a week in your business? Mr. ELLIOTT. Yes, Senator, we work 7 days a week and three turns per day on many of our operations.

Senator CAPEHART. Do you work on the basis of shifts of 5 days a week each? That is, does the man work 5 days?

Mr. ELLIOTT. We are crewed so that each man works five 8-hour days normally a week.

Senator CAPEHART. Do the same men work every Sunday?

Mr. ELLIOTT. No, sir.

Senator CAPEHART. The men alternate Sundays; is that it?
Mr. ELLIOTT. That is correct.

Senator CAPEHART. Their demand was for double time on Sunday. Mr. ELLIOTT. Sunday, as such, and time and a half for Saturday, as such.

Senator CAPEHART. That would be the equivalent, then, of getting 7 days a week work, but paying for 8 days?

Mr. ELLIOTT. Yes, it would.

Senator CAPEHART. On Saturdays, it would be the equivalent of paying for an extra half day worked?

Mr. ELLIOTT. That is correct.

Senator CAPEHART. What percentage of your men work on Sundays?

Mr. ELLIOTT. Senator, I will have to look that up. We calculated it on the basis of the hours.

Senator CAPEHART. I know it is very simple to calculate but they do not all work on Sundays. How many; perhaps 50 percent of the shift?

Mr. ELLIOTT. You have each man working 40 hours and you have enough crews to work 7 days so that you would probably have-well, I won't guess. I will look it up and put it in the record.

(The information requested follows:)

Practically all of our wage earners work on Sunday. Not every Sunday of course. The use of "swing shifts" means that most of our men work some Sundays.

The continuous operations such as coke ovens, blast furnaces, open-hearth furnaces, and utilities such as steam plants, work three turns a day, 7 days a week. Finishing facilities generally are working 19 or 20 turns with the "off" turns used for maintenance. These "off" turns are usually scheduled on Sunday if possible. Consequently, our normal complement of men working on any given Sunday is about 45 percent of our regular force.

Senator CAPEHART. You are, of course, familiar with the formulas that the Wage Stabilization Board has established for increasing of wages, what they call automatically, like a cost-of-living increase. Mr. ELLIOTT. Regulations 6 and 8?

Senator CAPEHART. Yes.

How much would the steel workers in your company have been. entitled to in the way of an increase under those two formulas?

Mr. ELLIOTT. At the time of the negotiations in December my recollection is that it would have been 5.9 cents per hour, and as of the time of the Wage Stabilization Board's award my recollection is that it would have been approximately 7 cents per hour.

Senator CAPEHART. What price increases have you officially requested from the Office of Price Stabilization?

Mr. ELLIOTT. I would like to say in my position of negotiation that I was not involved in the price negotiations.

Senator CAPEHART. What price increase have you actually, officially, asked for?

Mr. MORFELL. We have not asked for any, Senator.

Senator CAPEHART. What price increases are you entitled to, if any, under the so-called Capehart amendment?

Mr. MOREELL. We have been informed now that we are entitled to approximately $2.84 a ton across the board, which would be divided up as a percentage, as I understand it, among the various products.

Senator CAPEHART. Now, how many different categories of steel do you sell? I mean what prices? For example, you do not sell all your steel at the same price?

Mr. MOREELL. Several hundred, Senator.

Senator CAPEHART. Would you say it varied from $90 to $1,000 on special steel?

Mr. MOREELL. We do not make the special steels.

Senator CAPEHART. What is your lowest price per ton and your highest, if you can remember?

Mr. MOREELL. I would say from about $80 to $180.
Senator CAPEHART. From $80 to $180.

Is it your understanding that the offer Mr. Arnall made under the Capehart amendment, approximately $3 a ton, that that is to apply to the low-price steel as well as the $180 steel?

Mr. MOREELL. They proposed to work it out on a percentage basis, Senator. I think it is $2.6 percent.

Senator CAPEHART. Did you furnish them the figures for working that out?

Mr. MOREELL. Yes, sir. Well, we had furnished figures before but not in connection with this recent determination.

Senator CAPEHART. You have had those figures before?