HUGE WAGE RISES

Otago Daily Times, Issue 23033, 9 November 1936, Page 7

HUGE WAGE RISES

MILLIONS OF DOLLARS INVOLVED STEEL INDUSTRY'S PLAN NEW YORK, Nov. 7. (Received Nov. 8, at 5 p.m.) Led by steels, American corporations have increased the purchasing power of 600,000 employees by rises and bonuses. Twenty-four companies simultaneously ordered increased extra dividends benefiting 300,000 stockholders. The steel wage rise amounts to 75,000,000 dollars annually, benefiting half a million employees. It will be effective from November 16. Of the total sum 30,000,000 dollars represents the share of the United Steel Corporation, the largest steel unit, employing at present 230,000 workers. The steel wage rise plan provides for increases of from 12 to 25 per cent, for the lowest category of labour, and increases of 10 per cent, and less for the higher grades. The average is 10 per cent. The plan will place hourly earnings at 17 per cent, above the 1929 level. The steel plan provides for the fluctuation of wages with the cost of living, and is new to the steel industry, evidently having been patterned after the General Electric Company's plan. The steel wage agreements were signed by management and men, giving the men the status of collective bargainers under the Wagner Act. This is significant in view of the Lewis unionisation drive.