1946 United States steel strike

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1946 US steel strike
Truman acts to avert steel strike. Names McDonough to fact board, orders OPA to review prices.jpg
DateJanuary 21, 1946 (1946-01-21) – April 1946 (1946-04)
Location
United States
Caused byIndustry refusal to grant 25¢ an hour wage increase.
Resulted inIndustry wide 18½ ¢ an hour (~17%) wage increase.
Government allowance of $5 a ton increase in steel prices for steel industry
Parties
Steel Industry
US Government
Lead figures
Number
~750,000

The 1946 US steel strike was a several months long strike of 750,000 steel workers of the United Steelworkers union. [1] [2] It was a part of larger wave of labor disputes, known as the US strike wave of 1945–1946 after the end of World War II, and remains the largest strike in US history. [1] [2] [3]

Contents

The strike started on January 21, 1946, after failed negotiations and fully ended by April, after the steel industry agreed to a wage increase of 18½ ¢ an hour for steel workers in individual agreements. [1] [2] [3]

Background

On October 29, 1945, while president Truman was holding a White House conference between labor unions and business owners, the United Steel Workers (an affiliate of the CIO) filed with the government for a strike vote, covering their 750,000 members. The union called for a $2 a day wage increase, which was unreceptively received by steel companies. [4] On November 28, the steel workers voted 5 to 1 in favor of striking if companies refused to provide the wage increase. [5]

On December 13, It was reported that a steel strike would likely have massive effects. Since even before the strike, steel supplies and stockpiles had dwindled, as a result of WWII measures and its end. Steel customers who pre-emptively ordered steel in preparation for the strike were expected to be unable to receive them in time, as the orders had led to large backlogs. [6]

On December 31, Truman named a steel fact finding board in hopes of resolving the dispute. He also ordered the Office of Price Administration (OPA) to determine if increases in steel prices would be justified by February 1, 1946. The fact finding board was expected to finish its report by February 10. Which conflicted with the union's expected strike date of January 14. Alongside this Truman also appealed for the union to delay its strike till the board finished its report on February 10. [5]

The union initially refused to delay the strike for the board. However, on January 5, the union & company agreed to return to collective bargaining on January 10. Negotiations were extended to January 20, after which if an agreement was not made a strike would occur. [3]

Reportedly at the time, the union wanted to exercise and test its power following the end of World War 2, while the companies were eager to try to break and destroy the union. [3]

At the time, Philip Murray, President of the CIO and part of negotiations, charged in a Washington Post interview that the industry intended, [3]

"to destroy labor unions, to provoke strikes and economic chaos and to mulct the American people through un-controlled profits and inflation..."

Truman had proposed an hourly wage increase of 18½ cents. This differed from the original union demand of a 25¢/hour increase and industry initial offer of a 15¢/hour increase. [7] The union accepted this proposed wage. [3]

The government also had planned a $4 per ton increase (against recommendations by OPA) in the price of steel for the industry, which would have fully offset any extra costs from 18½ cents wage increase. [8] The industry had requested a $7/ton increase. [8] [3] Negotiations broke down, and industry refused any wage increases barring greater concessions, after the planned $4 a ton increase became known to the steel industry. [3]

Facing an impending strike in two days, Chester B. Bowles advised Truman to seize the steel mills. [3] This was based partially on the wide public support shown when the government seized oil refineries [lower-alpha 1] and a meatpacking plant [lower-alpha 2] in 1945, when they each faced strikes. Truman feared steel executive's might interfere and embarrass the government, so he refused. [3]

Earlier Bowle had predicted that the offer of $4 would prompt the steel industry to demand more. [3]

Strike

January 31, 1946
Nuvola apps kaboodle.svg "Americas Steel Strike"
-Official AP News archive

The strike began on January 21, 1946. 750,000 workers struck, running pickets in the cold outside the steel plants. [1] [7] It spanned 29 states [lower-alpha 3] shutting down nearly all plants within the country. [11] It remains the biggest strike in US history. [1]

On February 15, an agreement to end the strike for 125,000 of the 750,000 steel workers, who worked for the five major steel companies ("Big Steel") was reached. It was agreed to end it on Sunday, February 17 on the basis of a 18½ cents/hour wage increase. [12] [13] This raised the base wage from 78¢/hour to 96½ ¢/hour, a ~17% wage change. [13]

The rest of the industry consisting of smaller steel companies was expected to quickly follow suit. In this agreement the steel companies were also allowed a $5 instead of the previously set $4 a ton increase in steel prices. [13] [3] The steel companies also agreed to a clause of a retroactive pay increase of 9¼ cents for work conducted between January 1 and February 17. [13]

At one point before the settlement, Bowles, whose relative popularity was used by Truman, [3] had threatened to resign after the agreement largely drawn by him was modified to be more accommodating to industry. However, he ultimately decided to stay on, and was only able to get a few changes to the wage-price order due to the fighting for it by his loyal staff. [3]

The next day, ~550,000 workers had come to covered agreements, largely following the 18½ ¢ wage increase and returning to work that Monday. Most of the workers with the basic steel industry, 400,000 of the 452,000 basic steel workers, would be returning. [14] Over the next two months, individual agreements were made within the smaller companies, often following the set terms, till eventually all workers had returned. [2]

Further companies agreed to the terms on February 18. [15] On February 19, U.S. Steel announced it would be raising the wages of its 47,000 salaried and supervisor employees that had not been involved in the strike, which only involved production workers, as well. [16]

February 25, 1946
Nuvola apps kaboodle.svg "Steel Strike in USA Ends"
-Official AP News archive

By February 23, steel had reached 25% output, in part due to the difficulty of fully restarting furnaces in order to reach full capacity. [17]

On March 4, around 250,000 steel workers were still on strike. [18] On March 8, the National Wage Stabilization Board approved matching wage increases of 18½ cents for all salaried 'white collar' employees in the steel industry, for those that earned less the $5,000 a year. [19] By March 12, the steel industry had reached 83.6% capacity. [20] That month the steel industry complained the $5 a ton increase in price was inadequate to account for the wage increase. [21] [22]

See also

Notes

  1. ↑ On October 4, 1945 [9]
  2. ↑ In December, 1945 [10]
  3. ↑ California, Massachusetts, New York, Alabama, Arkansas, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Montana, New Hampshire, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Virginia, and Wisconsin. [11]

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References

  1. 1 2 3 4 5 Brecher, Jeremy (2014). "Chapter 6 : The War and Post-War Strike Wave". Strike! (Revised, expanded and updated ed.). Oakland, Calif: PM Press. ISBN   978-1-60486-428-1.
  2. 1 2 3 4 "Work Stoppages Caused by Labor Management Disputes in 1946" (PDF). Bureau of Labor Statistics.
  3. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Bernstein, Barton J. (1966). "The Truman Administration and the Steel Strike of 1946". The Journal of American History. 52 (4): 791–803. doi:10.2307/1894347. ISSN   0021-8723. JSTOR   1894347.
  4. ↑ "Truman Discusses Speech with AFL; Outlines to Group His Talk Tonight on Pay and Prices-- Steel Strike Poll Asked". The New York Times. October 30, 1945. Retrieved August 22, 2023.
  5. 1 2 "President Names Steel Fact Board, Asks Price Study; OPA Is Instructed to Find Whether Rises in Selling Levels Are 'Proper'
    Panel Reports by Feb. 10 But Strike Is Set for Jan. 14 and Postponement by Union Remains in Doubt"    . The New York Times. January 1, 1946. Retrieved August 22, 2023.
  6. ↑ "Steel Stocks Low in Face of Strike; Most Consumers Reported to Be on Hand-to-Mouth Basis as Reserves Dwindle". The New York Times. December 17, 1945. Retrieved August 22, 2023.
  7. 1 2 "750,000 Men Out; Arrival of Picket Lines Signals the Start of Big Steel Struggle
    Clashes at Plants Few: Center on Maintenance of Idle Mills--Murray Goes to Pittsburgh as Fires Die"    . The New York Times. January 21, 1946. Retrieved August 22, 2023.
  8. 1 2 "Steel Production to Decline to 10%; Consumers Will Be Affected Severely if the Strike Lasts Beyond a Week". The New York Times. January 21, 1946. Retrieved August 22, 2023.
  9. ↑ "Truman to Seize Oil Plants Today; Port Here Paralyzed, 30,000 Strike; Oil Truce is Balked". The New York Times. October 4, 1945. Retrieved August 24, 2023.
  10. ↑ Rees, Jonathan (1995). "Caught in the Middle: The Seizure and Occupation of the Cudahy Brothers Company, 1944-1945". The Wisconsin Magazine of History. 78 (3): 200–218. ISSN   0043-6534. JSTOR   4636567.
  11. 1 2 "Scores of Areas Hit by Plant Closings; Premature Picketing Barred --Union Allows Maintenance Men to Enter Mills". The New York Times. January 21, 1946. Retrieved August 22, 2023.
  12. ↑ Bernstein, Barton J. (1966). "The Truman Administration and the Steel Strike of 1946". The Journal of American History. 52 (4): 791–803. doi:10.2307/1894347. ISSN   0021-8723. JSTOR   1894347.
  13. 1 2 3 4 "Decision is Sudden; a Handshake Seals Steel Strike Settlement; U.S. Steel, Union End Retroactivity Issue by 'Splitting Difference'
    Agreement Covers 125,000 Who Will Return to Job Monday"    . The New York Times. February 16, 1946. Retrieved August 22, 2023.
  14. ↑ "Work Delay Is Due; Steel Workers Hailing Settlement Of Their Strike". The New York Times. February 17, 1946. Retrieved August 22, 2023.
  15. ↑ "More Steel Mills Grant Wage Rises; Companies in This and Other Areas Expect Workers Back Today on New Terms". The New York Times. February 18, 1946. Retrieved August 22, 2023.
  16. ↑ "Steel Announces Salary Increases; Supervisors Are Among 47,000 Who Will Get Rises on 'Pattern' of Union Pact". The New York Times. February 19, 1946. Retrieved August 22, 2023.
  17. ↑ "Optimism Is Noted In Steel Industry; Smaller Concerns Expected to Be Active Producers This Week--Output Up 19". The New York Times. February 25, 1946. Retrieved August 22, 2023.
  18. ↑ "Truman Says His 18 c Pay Rise Proposal Applied Only to the Basic Steel Industry". The New York Times. March 5, 1946. ISSN   0362-4331 . Retrieved August 22, 2023.
  19. ↑ "'White Collar' Pay Increased In Steel". The New York Times. March 9, 1946. ISSN   0362-4331 . Retrieved August 22, 2023.
  20. ↑ "Week's Steel Operations Set of 83.6% of Capacity". The New York Times. March 12, 1946. ISSN   0362-4331 . Retrieved August 22, 2023.
  21. ↑ "U.S. Steel Computes Effects of Strike". The New York Times. March 26, 1946.
  22. ↑ Loftus, Joseph A. (March 1, 1946). "Steel Fact Board Backs Pay Rise Of 18 c as 'Well Within Limits'; Report to President Says Also That Walkout Did Not Violate Contract--'Take Home' Figures Are Analyzed Price Aspect Left to Others Analysis of the Figures". The New York Times. ISSN   0362-4331 . Retrieved August 22, 2023.
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