Steel Strike

The inevitable happened this week. Canada's strike wave finally hit steel, cornerstone of Canada's industrial economy.

Some 14,000 members of the C.I.O. United Steelworkers Union started to walk out of Canada's three basic steel plants (Dominion Steel & Coal at Sydney, N.S., Steel Co. of Canada at Hamilton, Ont., Algoma Steel at Sault Ste. Marie, Ont.) which supply about 80% of Canada's steel. Although the number of steelworkers was comparatively small, if they stayed out long enough they would ultimately force a serious coke shortage and the laying off of 423,000 other Canadians dependent on steel for their jobs. (Some 36,000 workers were still on strike in rubber, electric works, printing, foundries, mines and autos.)

This threat had stirred slow-moving Labor Minister "Hump" Mitchell into last-minute activity. Five days before the strike, the Minister announced to a dumfounded Parliament that the Government had seized the three plants. Only an hour's notice was given the union: even less was given management. But the Government was too late, and offered too little.

F. B. Kilbourn of Montreal, wartime Federal Steel Controller appointed to run the plants, promptly gave notice that he would raise wages according to the plus 10-c-, minus four hours formula (TIME, July 8).

Six months ago, when the unions had first made their wage demands, they would probably have accepted. But not now, with the 15-c- boost for West Coast lumbermen as a spur. Snapped union strike director Charles Millard: "[The seizure] contains the fascist principle of forced labor."

As the strike deadline neared, Ottawa nervously upped its ante to 12^, and removed the wage differential in Nova Scotia (5-c-an hour less). Labor came down to the equivalent of 15 1/2. Under extended wartime powers, Hump Mitchell could fine anyone $20 a day who defied the seizure and refused to work, and jail and fine those interfering with the seizure order. But he also knew that arrests would not make steel.

As Hump Mitchell hesitated, the men came out. From now on it was up to the operator--the Government of Canada.

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