Guaranteed Annual Argument

The United Steelworkers of America last week opened what U.S. Steel Corp. Chairman Roger M. Blough called "our guaranteed annual argument." The 1,250,000-member union, whose two-year contracts with the industry start expiring June 30, will submit a list of 22 demands when new contract negotiations start next week in Pittsburgh's William Penn Hotel. Among the proposals:

P: Premium pay for Saturday and Sunday by some 30% of the industry's work force (average wage: $2.45 an hour).

P: Supplementary unemployment benefits, similar to the United Auto Workers' Guaranteed Annual Wage, to compensate laid-off workers for as long as 52 weeks.

P: A "substantial" wage increase, based on the industry's "profitability."

P: Employer-paid insurance and pension plans, improved vacation and holiday benefits, a union shop and 15 lesser demands covering additional benefits.

Altogether, the industry estimated, the package that Steelworkers' President David J. McDonald will present could cost as much as 60-c- an hour for every worker, increase the average cost of $129-a-ton finished steel upwards of $12 a ton. But steelmen guessed that McDonald would settle for considerably less. At the top of the package is the demand for increased weekend pay, which alone could boost labor costs by 30-c- per man-hour. The Steelworkers' main objective is to put workers on a Monday-Friday week, though this would demand widespread reorganization of the industry. Jones & Laughlin Chairman Ben Moreell was hopeful last week that if "the union lets the industry work it out over a period of years, maybe it wouldn't be too bad."

Since both sides seemed to be anxious for a peaceful settlement, few industry leaders expect a strike. Auto cutbacks have eased demand in the past month, taking some of the steam out of union claims that the industry will be operating at capacity for the foreseeable future. Said a union official last week: "This one should be real good and real quick."

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