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"Sec. 406. In any case referred to the Board by the President under section 405 the Board shall investigate and inquire into the issues in dispute and promptly report to the President thereon with its recommendations to the parties as to fair and equitable terms of settlement.
“Sec. 407. In any case where the parties jointly agree to submit the case to the Board for its recommendations under section 405, the Board shall investigate and inquire into the issues in dispute and shall advise the parties of its recommendations for fair and equitable terms of settlement.
"SEC. 408. In any case submitted or referred to the Board under section 405 where the parties jointly agree to be bound by the decision of the Board, the Board shall render a decision on the issues in dispute, which decision shall be binding on the parties.
"Sec. 409. Any wage action taken by the Board with respect to any case submitted or referred to it under section 405 shall be consistent with stabilization policies.
“Sec. 410. Such panels and subsidiary agencies of the Board as may be deemed necessary may be constituted under this Part, and in order to carry out its functions under this Executive Order, the Board may promulgate rules, regulations, orders, and directives.”
SECTION 2. All orders, regulations, rules, certificates, directives, and other actions relating to any function affected by the amendment made by the provisions of section 1 of this Executive Order (including the appointments of members of the Board in office on the date hereof) shall remain in effect except as they are inconsistent herewith or are hereafter amended, revoked, or terminated under proper authority.
SECTION 3. Nothing in this Executive Order shall be deemed to supersede any provision of Executive Order No. 10193 of December 16, 1950.
SECTION 4. No action inconsistent with the provisions of the Fair Labor Standards Act of 1938, as amended, other Federal labor standards statutes, the Labor-Management Relations Act, 1947, or with other applicable laws shall be taken under this Executive Order.
HARRY S. TRUMAN. The White House, April 21, 1951.
The White House,
Washington, December 22, 1951. Hon. NATHAN P. FEINSINGER, Chairman, Wage Stabilization Board,
Washington, D. C. DEAR MR. FEINSINGER: On the basis of the information and advice submitted to me by the Office of Defense Mobilization and the Federal Mediation and Conciliation Service, I am of the opinion that the labor disputes between the United Steelworkers of America, CIO, an various companies in the steel industry are of a character which substantially threaten the progress of national defense. Thus, in accordance with the terms of Executive Order 10233, I am referring the disputes to the Wage Stabilization Board and asking that the Board investigate and inquire into the issues in dispute and promptly report to me with its recommendations to the parties as to fair and equitable terms of settlement.
The report of the Federal Mediation and Conciliation Service indicates that the union and the leading steel producers have made no progress in resolving their differences. It appears entirely unlikely, on the basis of practical experience, that the present stalemate could be broken by further bargaining or mediation and conciliation in time to avoid early and serious production losses in this vital industry. Because of the historical processes of negotiation in the steel industry, this observation applies also to companies other than leading steel producers.
The United Steelworkers of America, CIO, has contracts throughout the entire steel industry-with ore-mining companies, producers of steel, and with steel fabricators. I am sending under separate cover a list of the ore-mining companies and steel-producing companies whose contracts with the union expire beginning December 31, 1951. The work stoppage which is threatened by these expirations, without new agreements, would paralyze the entire steel industry. Key agreements in basic steel cutomarily pave the way for agreements throughout the rest of the industry. I am therefore suggesting that the Board, in its proceedings, direct its attention in the first instance to the disputes involving the
following companies along with any others which in the judgment of the Board should be added:
Armco Steel Corp.
Youngstown Sheet & Tube Co. Any curtailment of operations in the steel industry will have an immediate and serious impact on the defense program. The Director of the Office of Defense Mobilization has advised me on the extent to which the mobilization program would be affected by an interruption of steel production. The entire steel industry is straining to meet pressing demands for steel and hence a stoppage would cost us vitally needed steel-steel for weapons, for new factories, for highways, schools, hospitals, and for a variety of products supporting the civilian economy as well as the defense effort.
In these perilous times, the parties to disputes in the steel industry owe it to the American people to cooperate with their Government in maintaining normal work and production schedules while this matter is before the Board. Very sincerely yours,
HARRY S. TRUMAN.
STATEMENT BY THE PRESIDENT I have today referred to the Wage Stabilization Board the labor dispute between the United Steel Workers of America, CIO, and various companies in the steel industry. This dispute has now arrived at a stage where it gravely threatens the progress of national defense.
According to the report of the Director of the Federal Mediation and Conciliation Service, the union presented a list of 22 proposals covering both economic and noneconomic matters. No counterproposals were made by the leading companies on any of the economic items. The companies asserted that any wage increases in the steel industry would necessarily require an equivalent increase in steel prices. The union declined to modify its position on any of the major issues in the absence of counterproposals from the companies.
Negotiations between the union and the steel companies are at an impasse, and there appears to be no hope of settlement through mediation. Unless some means is found for breaking this impasse, a shutdown of the steel industry at the end of this month is in prospect.
It is of the utmost importance to prevent an interruption in the production of steel. Steel is a key material in our entire defense effort. Each day of steel production lost is a day lost forever in the achievement of our production schedules. Continuous production of this industry is essential in order to meet urgent demands for steel-steel for weapons, for factories, for highways and hospitals and schools.
It is for this reason that I have certified this matter to the Wage Stabilization Board. This will provide the parties with a forum where their differences may be r.-solved, and a fair settlement reached, without resort to a costly shutdown.
Steel is of such basic importance to the defense effort, and wages and prices in the steel industry have such a profound effect throughout our economy, that the public has a very vital interest in the outcome of this dispute. In order to have a proper understanding of what is involved, there are certain essential facts that should be kept clearly in mind.
Over the past 18 months, we have developed an anti-inflation program as an integral part of our mobilization effort. In this program, we have established machinery for the equitable handling of such situations as that which now confronts us. We have the Wage Stabilization Board to consider the question of what wage increases should be allowed the steelworkers and how the other issues in dispute between the parties should be settled. We have the Office of Price Stabilization to consider whether or not the steel companies are entitled to a price increase on account of any wage increase or other cost increases which might result from the settlement of the dispute.
The Wage Stabilization Board is made up of representatives of labor, management, and the public. This Board will give both sides an opportunity to present the facts and arguments they think the Board should consider. Then the Board will consider the case, trying to find the best solution from the standpoint of labor, industry, and the public-balancing the equities and the interest of all three. The Board will consider the case promptly on its merits and make recommendations for a fair settlement, consistent with sound stabilization policies.
No one is in a position as yet to say how much of an increase in wages or other benefits would be permissible under wage stabilization policies. The Wage Stabilization Board is the only body qualified to make such a determination, and the matter has not been before the Board. The “dope stories” that have been appearing in the press stating the amount of the wage increases that could be allowed without "piercing existing ceilings” have no official basis and are not to be relied upon.
We must wait for the Wage Stabilization Board's report before any sound judgment is possible as to what wage increases are proper in this case.
After the decision is reached as to wages, the Office of Price Stabilization will be responsible for determining whether or not any wage increase justifies a price increase. The law and regulations assure that the steel companies will get price increases if they are entitled to them. No other advance assurances are necessary,
Thus, the machinery we have provides a reasonable and practicable method for doing justice to the parties, for preventing an inflationary price-wage spiral, and for meeting the overriding necessity for keeping steel production going. This machinery should be given an opportunity to meet the present crisis. The national interest demands it.
This means that the steel companies and the steel workers must continue production in the industry while the matter is before the Board, and cooperate fully with the Board's proceedings.
The immediate obligation on the steel companies is to maintain normal work and production schedules, and to be prepared to lay the full facts in the case before the Board.
The immediate obligations on the steel workers is to decide to remain at work while the Board considers the case. This is a decision that should be made before a strike begins-not afterward. The United Steel workers of America is a responsible union. Its members are good citizens. Its leaders are distinguished Americans.
The union members and their leaders, and the managers of the steel companies, have a responsibility to defend the United States against its enemies just as I do. In my judgment, they will not be living up to that responsibility by permitting a needless stoppage in steel production for even a single day.
THE WHITE HOUSE,
Washington, December 24, 1951. Hon. NATHAN P. FEINSINGER,
Chairman, Wage Stabilization Board, Washington, D. C. DEAR MR. CHAIRMAN: By direction of the President, I am sending you the list of companies referred to in the President's letter of December 22. Very sincerely yours,
WILLIAM J. HOPKINS, Executive Clerk.
Tennessee Coal, Iron & Railroad Co.:
Birmingham, Ala.: Open Hearth.
Coke and Byproducts-
Covers: Mfg. Div., Ore Mines, Quar-
portation Dept. Fairfield and Ensley, Ala
Covers: Ensley Works; Fairfield Steel
Works (including Byproducts Coke),
Muscoda Division: Bessemer, Ala.
Dolonah Quarry: Bessemer, Ala
Transportation Department: Ensley,
Transportation Department: Pratt City,
Texas Warehouse: Houston, Tex...
South Chicago, Ill.: South Works
Gary Steel Works
Gary Sheet and Tin Works
Gary Steel Works
Gary Sheet and Tin Works
Dravosburg, Pa.: Irvin Works.
Iron Works: Sharon, Pa. United States Steel Supply Co.: 5 warehouses:
Chicago, Ill. (including Paint Mfg.