May 3, 1952
I HAVE asked you to meet here today to reach agreement on the issues in dispute between you.
As President of the United States, representing all the people of the country, I have two principal interests in this matter.
First, it is absolutely necessary, for the safety of the country, that steel production must continue during the emergency.
I cannot reveal, even to you people here, the exact situation with regard to the supply and production of military items. I can only say, on the considered advice of the officials in charge of our defense program, that the safety of our troops fighting in Korea, and the safety of our Nation in the present world crisis, depend on the uninterrupted production of steel.
Second, it is essential to the economic health of our country and the welfare of our people that wage and price increases in the steel industry shall be held within the limits of sound stabilization policies.
A runaway inflation in this country could wreck our economy and impose terrific hardship on millions of families.
These are heavy stakes. And they impose an equally heavy responsibility on every one of you to act in the national interest.
Because of the vital importance of uninterrupted production of steel, I was forced 3 weeks ago to direct the Secretary of Commerce to operate the mills. That action is now being challenged in the courts, as is entirely proper. None of us know how soon it will be decided.
In the meantime, the mills are under Government operation.
I have said many times that the idea of Government operation of the steel plants is thoroughly distasteful to me. I have had to operate the coal mines one time and I didn't like that either. I want it ended as quickly as possible. The best, the quickest, and the most equitable way for this to be done is for the companies and the union to bargain out the issues in dispute and agree on a settlement.
That is what I am asking you to do now. And I am asking you, as the head of the greatest government in the world, to get down on earth and talk to each other without any ill feeling, and to get this thing done.
I am sure you are aware that the Government has been considering what are fair and reasonable wages and working conditions for the employees during the period that the plants remain under Government operation.
Two weeks ago, the Secretary of Commerce asked the Economic Stabilization Administrator to prepare recommendations for changes in terms and conditions of employment in the steel industry at this time. Those recommendations have now been completed, and the Government will be prepared on Monday morning, or as soon as we can get ready, to order changes in terms and conditions of employment to be put into effect.
I do not want the Government to have to fix terms and conditions of employment. That is your job, not ours. If we must take action it will be something that is not satisfactory to either side. But we will have no choice if you cannot agree.
I consider it extremely unfortunate that the Government may find itself in a position where it has to fix the terms and conditions of employment in an industry.
However, the purpose of these meetings is not to discuss terms and conditions of employment during Government operation. The purpose is to try to reach an agreement between the parties so that Government operation can be brought to an end.
In these meetings, you have the opportunity to settle this dispute as it should be settled. You can reach agreement if you have the will to do so.
You have all been over the issues between you many times. Days and weeks have already been spent in negotiations. You know which points are the crucial ones. You know this matter can be settled in a few hours.
In the interest of your country, for the welfare of the United States, and for the welfare of the world, I am asking you to make that settlement.
We all know that a big issue in this whole controversy is the steel companies' claim for higher prices as a result of any wage increase that might be agreed upon. As I have said on a number of occasions, there is only one proper way to settle this entire controversy. First, the parties should reach agreement on the issues in dispute between them. Then, the companies should present their claims for price increases to the proper Government officials.
On their part, the stabilization of officials of the Government are prepared to consider the steel companies' claims on their merits, and to make sure that the steel companies receive whatever price adjustment they are entitled to under the law.
Gentlemen, the eyes of the Nation are upon you as you meet here in the White House today. You represent two powerful economic groups who have contributed immeasurably to the greatness of our country. You have great power; and, because of that fact, you all have great responsibility. You have achieved your strength in a democracy which places its faith in the ability of its people to work out their own problems as reasonable men in the national interest. I urge you to reaffirm that faith by settling your differences now in this time of critical national need.
This room--the President's Cabinet Room--is yours for these meetings. Some great decisions affecting the welfare of our country have been made in this room. Your agreement on a settlement of this dispute would rank with any of them as a contribution to the common defense and the general welfare of our Nation.
I am asking John Steelman to sit with you, to help you in trying to reach an agreement, and to keep me constantly advised of your progress.
Now, gentlemen, I have never felt as strongly about anything as I do about this situation. We have a national defense program which is right on the verge of success.
For 7 years, from April 12, 1945, until now, I have spent my whole time trying to keep this country out of a third world war.
If we can get the economic situation and the defense situation in Western Europe through to a successful conclusion, and that depends on steel, if we can get the situation in the far East settled on a basis that is fair to all concerned, I am just as sure as I sit here that we'll get a world peace. And with the development of the world after that world peace, there won't be a chance for our industry to catch up with the demand.
Then that means the welfare of labor; it means the welfare of industry. I don't think any of you can complain about the situation of the economy at the present time. There's been a fair distribution of profits; there's been a fair distribution of earnings; there's been a fair distribution of the farm income. All of you are more prosperous than you have ever been in the history of this country.
Never in the history of the world has there been an economic situation that equals it, and you gentlemen can't afford to upset that situation over a private quarrel between labor and industry.
I want you to forget all your emotions now and sit here and see what you can do.
Mr. Sawyer has been the operator under the present circumstances, and he's been fair and decent in this matter. We are going to continue to be fair and decent to you.
I didn't send for you just to make a speech. I sent for you for action and, gentlemen, I want it.
NOTE: The President spoke at 10 a.m. in the Cabinet Room at the White House to representatives of steel companies and the United Steelworkers of America. During his remarks he referred to Charles Sawyer, Secretary of Commerce, Roger L. Putnam, Administrator of the Economic Stabilization Agency, and John R. Steelman, The Assistant to the President and Acting Director of Defense Mobilization.
For the President's telegrams which led to the meeting, see item 116.
