United States. Wage Stabilization Board

When the United Steelworkers of America struck the Garfield, Utah plant of the American Smelting and Refining Co., the U.S. Wage Stabilization Board became involved, as copper and sulphuric acid production was considered essential to national defense.

The Wage Adjustment Board was responsible for the implementation of the Wage Stabilization Agreement, which required wage rates on all government war construction work to be frozen at levels prevailing on July 1, 1942. Its successor, the National Wage Stabilization Board, operated from 1945 to February 1947. In September 1950 the Wage Stabilization Board (WSB) was re-established as a unit of the Economic Stabilization Agency under the authority of the Defense Production Act of 1950 to control wages and salaries during the Korean War. The Philadelphia Regional Wage Stabilization Board, region three of the WSB, was established on August 8, 1951, to oversee activities in Pennsylvania and Delaware. The WSB was abolished following the suspension of wage and salary controls in February 1953. A detailed survey, titled "History and Terminal Report: Philadelphia Regional Wage Stabilization Board," is filed in box 7 of the collection.

The United States Wage Stabilization Board was created as an agency of the Economic Stabilization Agency by executive order under the authority of the Defense Production Act of 1950. Its function was to control wages during the Korean War. An executive order, 1951, reestablished the Board with power to assist the president in settling industrial disputes. In July, 1952, the Board was reconstituted under legislative authority and stripped of its functions in the area of labor disputes. It was terminated April 30, 1953.

When the United Steelworkers of America struck the Garfield, Utah plant of the American Smelting and Refining Co., the U.S. Wage Stabilization Board became involved, as copper and sulphuric acid production was considered essential to national defense.

This dispute grew out of negotiations for a new contract which culminated in a strike on July 2, 1951. On July 26 the President certified the dispute to the U.S. Wage Stabilization since in his opinion the dispute substantially threatened the progress of National Defense. The Chairman of the Board, George W. Taylor, appointed a panel consisting of Lloyd K. Garrison, Chairman, G. Allan Dash, Jr. and Vernon H. Jensen.

A work stoppage in the steel industry was threatened for Dec. 31, 195l, since various companies engaged in ore mining and the production of basis steal had been unable to negotiate a new contract with the United Steel Workers of America to replace the one that expired on that date.

The union presented a list of 22 demands, relating to a general wage increase guaranteed annual wage, paid holidays, inequities, shift and geographical differentials, over time, improved vacation periods, and other economic and non economic demands.

The companies took the position that any increase in wages would not be in the best interest of the country since any increase in costs of producing steel would require an equivalent increase in steel prices.

The President referred the dispute to the Wage Stabilization Board, which in conjunction with the Office of Price Administration was endeavoring to develop an anti-inflation program during the period of the Korean War.

The Wage Stabilization Board appointed a special panel consisting of:

Harry Shulman (Chairman), Ralph Seward, Admiral Earle W. Mills, John C. Bane, Jr., Arnold Campo, and Eli Oliver .

At a procedural meeting on Jan. 7, 1952. On January 10, 1952 the Panel began hearings which continued until Feb. 16, 1952. The panel presented its report to the Executive Meeting of the Wage Stabilization Board on February 29, 1952 and the full Board discussed the recommendations of the panel until March 19, 1952. The final report of the Board was presented to the President on March 20, 1952.

This was a panel hearing conducted under the Disputes Procedures of the Wage Stabilization Board relating to the terms of a renewed contract between the parties. Since the American Locomotive Company was primarily a steel fabricating company, and its contract with the United Steelworkers of America did not expire until January 31, 1952, the parties agreed to continue negotiations rather than take part in the hearings of the Steel Industry Board earlier in 1952.

But the parties were unable to reach an agreement and they returned to the Board. A procedural hearing was held in Washington, D. C. on April 22, 1952. At this meeting it was decided to hold separate hearings on each of the three cases before a single panel.

The panel members were:

Public Members: Donald K. Strauss, chairman; William A. Hazell

Labor Members: Benjamin Fischer ; James S. Killen

Industry Members: Virgil Day ; George Myers

The union presented a list of 22 demands, approximately the same issues involved in the Steel I ndustry Dispute; a general wage increase, a guaranteed annual wage, paid holidays, inequities, shift and geographical differeatials, overtime and improved vacations. One particular problem was the request by the union for a company wide contract which the company opposed on the ground that the plants were not similar.

Hearings were held in New York City from May 21, 1952 to June 27, 1952.