"Critical Stage"

From the Commerce Department came a report calculated to throw a chill into both steel labor and steel management. During July, steel imports--which were pushing toward new highs even before the strike began--soared to a monthly record of 430,000 tons. The new imports brought the seven-month intake to 2.3 million tons, almost the equivalent of the output of a steel mill the size of Republic's 9,500-man Cleveland plant; foreign steel mills in 1959 had already sold U.S. customers more steel than in any full year in history. Republic Steel's Chairman Charles M. White warned that the walkout may well mean the permanent loss of part of the domestic steel markets to foreign producers "at the expense of the industry and steelworkers."

Nevertheless, only a small step was taken toward a settlement. Management agreed to refer work practices and other local issues (TIME, Aug. 24) to labor-management subcommittees in the twelve major struck companies, thus agreeing with the union's stand that these are local problems that should be handled on the local level. "The strike has now reached a critical stage," said Labor Secretary James Mitchell, "and the next few days will determine whether we get a reasonable settlement or whether the strike will be further drawn out."

Other unions did not wait for steel to set a wage pattern, pushed in for the best deals they could make.P: One hour before the expiration of a three-year contract, the United Packinghouse Workers and the Amalgamated Meatcutters got Armour's signature to a two-year contract raising wages 8 1/2-c-an hour the first year, another 6 1/2-c-the second. Fringe benefits brought the package to 22-c- over the life of the contract, ranged from three-week vacations after twelve years (v. 15) to establishment of a $500,000 fund through company contributions to help retrain and relocate workers who lose their jobs through automation. Regarded as a milestone in industrial attempts to soften the impact of work-saving machines on employment, the fund will be operated by a joint management-labor committee with an impartial outsider as chairman. Other packers, such as Oscar Mayer, Cudahy and Hygrade, fell in behind Armour, but Swift and Wilson held out. Swift agreed to the wage raises but balked at new fringe benefits and insisted on wage cuts in seven of its Southern plants to make "costs competitive with other plants in the same areas." As a result, the unions pulled out 18,000 workers at Swift plants in 34 cities, started to pull out 5,500 Wilson workers in seven cities, but extended the old contract another week to continue negotiations. P: In the tire 10-c--an-hour wage increases to more than 80,000 workers, narrowly averting a strike.

P: Sensing a good moment to strike the first blow, eleven nonoperating rail unions served notice on the nation's railroads that when the present three-year agreement expires on Oct. 31, they expect wage increases of11-c- (earlier the five operating unions demanded increases of 12-14%). But management showed that it is ready to stand as firm and united as the steelmakers against such demands. Under a group insurance plan, any railroad struck will have financial aid for as long as a year.

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