$2.50 an Hour

Well organized, well led, 600,000 members of the United Steelworkers Union last week won a wage increase of "something in excess of" 15-c- an hour. Class 1 workers, e.g., sweepers, will henceforth get $1.68 1/2 an hour; Class 32 workers, e.g., hot strip mill rollers, will get $3.54 1/2 an hour. The new average will be about $2.50 an hour. "This raise is money ahead," exulted a steelworkers' leader. "Our men won't keep it. They'll buy more TV sets and automobiles. It will be a terrific shot in the arm for the economy."

U.S. Steel Corp. led the steel producers in passing on their increased costs to their customers, decreeing a price increase of about $7.50 a ton, or 5.8%--which will add about $15 to the cost of producing the steelworker's new $2,750 car, about 4-c- to his $25 toaster.

Before the settlement, the U.S. lost about 800,000 ingot tons of steel because of the twelve-hour strike of the steelworkers. This week the men were back to work; their leader, silver-haired, mellifluent David J. McDonald, was almost satisfied that he was keeping up with the Reuthers (TIME, June 13 et seq.). Last year McDonald gave up quickly on his demand for a guaranteed annual wage. He could not raise that issue this year because the greatest part of his contract, except for wage clauses, runs until 1956.

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