Word: mcdonaldization
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Instead of waiting as usual for the United Steelworkers to strike the first blow in contract negotiations, management made the first move. To the Steelworkers' President David J. McDonald last week went a letter from twelve big steel companies asking for a one-year extension from this June 30 of the present wage agreement, without any increase in benefits. Although the recovery is making "moderate progress," said the letter, there is a disturbing "bulge of synthetic demand" created by fear of a steel strike, and it could lead to "decline and dislocation" later. To keep the economy...
After a quick study of the management proposal, McDonald replied: "I reject it out of hand." He accused the companies of a "publicity stunt," said, "Before the month is out [the industry] will be embarrassed by record riches which it can neither explain nor conceal...
...United Steelworkers union has spent about $500,000 on ads in 40 major newspapers to make its case for an "extra billion dollars" in the pockets of 1,250,000 steelworkers. This is money, says the union, that will bring real benefits to the economy. Union Boss Dave McDonald is not so much interested in a hefty wage boost as in fringe benefits, whose cost is less evident. He is likely to emphasize pension terms, better hospitalization and medical plans, more generous unemployment benefits. But the big firecracker that is sure to set up a ringing in management...
Actually, McDonald could accept much less. He has beaten down last year's dues revolt in his own union (TIME, Sept. 29), and need not act tough to impress his membership. Nor does he have to bring home a whole ham to keep pace with the wage gains won by other unions. The United Auto Workers' President Walter Reuther settled for a modest increase that poses no threat to steel's position as one of the best-paying big businesses. Steelworker gross earnings averaged $2.88 an hour last year, 35? better than autoworkers and 75? better than...
...McDonald shows no sign of trimming his demands. One of the union's chief complaints is the fact that 80,000 Steelworkers are still unemployed despite the industry's rapid comeback. Employment is up only about 20% since last April, while monthly production has jumped 100%. The union insists that labor is the main factor in the rising productivity, and that the companies can afford to pay more...