Memorandum, Should the National Emergency Provision of the Taft-Hartley Act Be Invoked in the Current Steel Industry Dispute?

Ret to Mr stowe Should the National Emergency Provision of the Taft-Hartley Act be invoked in the current steel industry dispute? Kenne TRUMANE ARCHIVES& "NATIONAL RECORDS TRARE ADMIN.* Reasons For Reasons Against Es 1. This procedure will presumably get 1. There is no certainty that this will steel production for at least 80 days. bring even a temporary resumption of production. In view of Labor's co- 2. A settlement may be reached during operation with Government to date, in- the additional time granted by in- dividual workers may choose not to re- voking Taft-Hartley, because of action turn to their jobs and there is no by the Congress on the Defense Produc- legal method of forcing their return. tion Act settling the price issue, or Furthermore, the poor morale of workers a change of attitude on the part of may result in an extremely low rate of the parties. On the other hand, if production. It is very questionable the Taft-Hartley procedure proves in- whether union leaders, even if they effective at this time, dramatic and were willing to do so, could gain conclusive proof of need for modifica- support of the rank and file to over- tion of the Act will be provided. come these factors. 3. This is the only procedure of clear 2. The obvious unfairness involved in cut legality available to the Presi- forcing the men to work for an addi- dent since the Supreme Court appears tional 80 days after they have stayed to have ruled out seizure of the entire on the job without a contract some 150 industry by any other statutory route. days is a compelling reason for the President not to use his discretion in 4. Resort to this procedure is necessary setting the procedure into operation. before the Congress will agree to pro- vide appropriate emergency disputes 3. This procedure will only jeopardize legislation to be utilized once the 80 the likelihood of a settlement in the day injunction is lifted. Congression- near future. Invoking Taft-Hartley al resentment at the President's failure while the parties have resumed nego- to use Taft-Hartley may result in hasty tiations will remove the economic passage of punitive, anti-labor legis- pressures conducive to settlement. lation. Using Taft-Hartley, if the negotiations break down, will almost certainly re- 5. Public opinion, stirred up by Congres- sult in a more rigid refusal of the sional comment, is predominantly in workers to compromise on their bargain- favor of utilizing this procedure which ing and will more likely inflame the appears to offer some relief, if only parties rather than "cool" them off. temporary, from the current steel crisis. Resort to Taft-Hartley will only reduce the pressures now on the Congress to 6. The Taft-Hartley procedure will re- enact effective disputes authority which quire the industry, admittedly at a may bring about the desired settlement. late date in the injunction period, to Valuable time will be lost in setting state clearly its "last offer" to the up the Taft-Hartley machinery that must workers. Up to now all offers have be followed before an injunction can be been conditional on a price increase obtained, and the Congress should use allowance. Furthermore, the report of this time to provide effective legisla- the Board of Inquiry could conceivably tion. If the Congress insists that arouse public reaction against the in- only the Taft-Hartley procedure is to dustry because of its intransigence on be followed, it should make its desires the price issue. known by specific action. 7. While resort to Taft-Hartley may be 5. In practical effect, all of the signi- grossly unfair in light of the work- ficant advantages of the Taft-Hartley ers cooperation with the Government Act have already been obtained - greater to date, the President cannot be cri- than 80 days of continued production; ticized for turning to this device full hearings of all issues by the Wage after having exhausted all other Stabilization Board; adequate opportun- remedies. ity for the Congress to be made aware of the issues involved and the need for legislative action.