A Past

Youngstown’s iron and steel industry expanded throughout the mid to late 1800s. The expansion created demand for cheap labor causing an influx of Eastern European immigrants into the Youngstown area.

Photo left: In 1803 James and Daniel Heaton began producing iron in a stone stack blast furnace at Yellow Creek in Struthers, Ohio. From that point on the iron industry in Youngstown grew due to its abundant resources and its geographic location.

The Steelworkers Organizing Committee (SWOC) was formed in 1935 to organize steelworkers across the country. In 1937 SWOC attempted to unionize the independent steel mills such as Youngstown Sheet & Tube and Republic Steel. The strike ended in defeat, and not until the coming of WWII did the “Little Steel” companies recognize the steel union.

In 1959 steelworkers were forced to confront the possibility of losing what they had gained through unionization, and they chose to stand firm against management’s attempt to erode the union’s strength.

After WWII, Youngstown steelworkers had a firm understanding of how the union improved their lives. As embodied by the contractual agreement, post World War II collective bargaining brought steelworkers strong wages, benefits, and a voice in the work environment.

Forged inSteel

Poor wages and living conditions caused animosity between steelworkers and management, which came to a head with strikes in 1916 and 1919. These strikes ended in defeat for the steelworkers and ushered in an era of unilateral paternalistic control by management over the workforce.

The Great Depression brought with it a new era of government intervention in labor issues. The National Labor Relations Act of 1935 (also know as the Wagner Act) gave labor the right to unionize and collectively bargain with their employers.

Steel Contracts Courtesy of the Youngstown Historical Center of Industry and Labor

1916 Steel Strike Courtesy of the Youngstown Historical Center of Industry and Labor

Hopewell Furnace Courtesy of http://www.ohiochannel.org/content_files_user/96616/3249.jpg

1937 Steel Strike Courtesy of the Youngstown Historical Center of Industry and Labor

introdUCtion

Cold wAr in Steel

the 1959 Strike and the Mahoning Valley

“2B-CoMe” Union

whAt’Sof

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After WWII the collective bargaining process became ingrained into American society. From 1946 to 1959 labor and management negotiations were a standard event in American life. The bargaining process usually revolved around the union’s request for wage and benefit increases, punctuated by a short strike. Management passed on the costs of each contract settlement to consumers by raising steel prices.

Top steel industry and steel union negotiators in 1959 Courtesy of the USWA publication “Steel Labor”

By 1959 new steel industry leaders such as R. Conrad Cooper wanted to test the strength and solidarity of the United Steelworkers of America (USW) and reassert their unilateral right to control the workplace. In the summer of 1959 contract negotiations for the steel industry began. The steelworkers under the leadership of David McDonald felt strong wages increased consumption, ultimately stimulating the economy.

Management countered the steelworkers’ request for a wage increase by trying to link wage increases to inflation. Management felt that wage increases and a prolonged steel strike would open the American steel market up to foreign steel producers. Inflation and foreign competition became the main issues in the public relations battle.

Inflation Cartoon (Courtesy of the USWA publication “Steel Labor”

Top and bottom: November 17, 1959 Settlement Proposal Section; Courtesy of the Youngstown Historical Center of Industry and Labor.

Section 2B increased the union’s ability to maintain work rules and past practices established in previous local agreements. Section 2B ultimately reduced management’s ability to unilaterally control the workforce.

Illustration highlighting the threat of foreign competition (Courtesy of the Youngstown Vindicator).Inflation Headline (Courtesy of

the Youngstown Vindicator).

iSSUeS

cold war in steel

The issues of inflation and foreign competition were legitimate points of contention between labor and management; however, the main issue was over section 2B of the basic steel contract. The USW felt that section 2B ensured its workforce security and predictability on the shop floor, keeping management from returning back to the arbitrary and unilateral control of the non-union era. Ultimately for the steelworkers, the 116-day strike was seen as a struggle to maintain the strength of the union and as a fight to preserve their way of life.

the Company issue—inflationRising inflation was a vital concern for the steel corporations. They believed that if steelworkers’ wages continued to increase, then the cost would be transferred to the material prices of other industries. Ultimately, this would negatively affect the consumer.

ProFitS &

the Cost of the Strike: A Company PerspectiveStrikes were very costly for companies. Steel mills were not able to completely shut down without the possibility of damage to some of the machinery; instead, plants were put on “hot-idle.” This saved equipment, but still cost the companies money. Also, some essential personnel were kept on the payroll as salaried workers. This was all while no money was being made.

For steelworkers, the steel industry’s argument that increased wages would lead to inflation was negated by the companies’ own profits.

Courtesy of Steel Labor

Courtesy of the Vindicator

Many non-industrial workers accepted the steel industry’s argument.

PAYCheCKS

“No-Smoking” was the sad rule in Youngstown skies this morning as the fires of steel went cold and its men went on strike. The empty stacks in the foreground are part of a Youngstown Sheet & Tube Co. blast furnace at Brier Hill. In the background, at left, is another cold blast furnace at the Ohio Works of U.S. Steel Corp. The cost of cooling and maintaining one blast furnace was upwards of $30,000.

Courtesy of the Vindicator

the Cost of the Strike: A Steelworker PerspectiveMany steelworkers had experienced strikes prior to 1959 and knew what to expect. Since mills ran at almost full capacity before the strike to stockpile steel, there was overtime available for many workers to save for the months when they would have no income. However, there were also some workers that were idled during the recession of 1958; even with overtime, they had yet to recover their losses by the outbreak of the 1959 strike. While all workers lost their flow of income, it was evident that some strikers were more financially secure than others.

eConoMiCS

loss by the numbers$2,100 – National Average Lost per Steelworker$25,000,000 – Wages Lost per Month in the Youngstown District$800,000,000 – National Total Lost in Wages

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Steel strikers line up for their last full paycheck at Youngstown Sheet & Tube’s Brier Hill works. The average American steelworker was 42 years old with 2.1 dependents. In 1958, he made $4,840. By the outbreak of the strike, his hourly rate was $3.10.

cold war in steel

Many strikers refused to go onto relief out of pride, although steelworkers were offended that they had donated to charities for many years, and these charities were not helping the steelworkers in their time of need.

Because they bought much of the household’s goods, women were often in the biggest pinch by the lack of income and had to be more resourceful with the money they had left. Like their husbands, some women even took an outside job for extra money during the period.

As school started in the Mahoning Valley, many strikers’ children could not attend, because their parents could not afford to give them proper clothing and shoes. This caused the Mahoning Valley Welfare Department to give them outfits so they could attend.

StrUgglingthroUgh theStriKe

SUrViVAl

To endure the strike, the strikers and their families found different solutions. Workers sometimes found a second job to support their family, but those who did not take another job had to accept community welfare. By August, Mahoning County Welfare Department was giving rations of flour, rice, dried eggs, and powdered milk to an estimated 3,000 strikers. As of October, 3,285 welfare cases were in the county, containing 15,492 people. October numbers were the harshest for the area, with Girard having 267 cases and Warren having 1,293 due to the strike. The union also provided an assistance program. Needy strikers received vouchers at their local union office to use at Youngstown stores, and the union would pay the merchants for the items given to the strikers.

“Many of these people are getting prettyhungry now.”

Steelworkers could also make store purchases on credit, as the local merchants knew that the strikers would pay everything back when the strike was over.

Courtesy of the Vindicator

Courtesy of the Vindicator

Strikers had to find ways to pass the free time. These men and children are building a garage.

In Trumbull County, steelworkers receiving relief had to work for up to 100 hours around the county to collect their aid.

Courtesy of the Vindicator

cold war in steel

reSolUtion

reSolVingUnreSolVABle

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Vice President Richard Nixon, with an eye to the 1960 election, stepped into the situation to convince the steel companies that they would get no further support in congress. By late December, management bowed to Nixon’s advice to settle and offer a three year contract that would be in line with the October Kaiser Steel settlement—Kaiser being the first company to settle with the union for an 11.25 cent an hour increase.

the Strike wears onBy late September, 1959 workers had been on strike for more than two months and the stockpiles of steel were beginning to dwindle. There was grave concern in the automotive, defense, and steel associated-primary metals sectors that the strike was putting the larger economy at risk, as well as the nation’s defense. In Youngstown, nearly 2,500 railroad workers had been laid off since the mills went quiet. By September 28th, Mahoning County had spent about $452,334.00 on

welfare relief; that same day, Eisenhower stepped in and called a meeting between McDonald and the steel companies in Washington.

“I see absolutely no benefit from this 80-day injunction. The Companies wanted it and they got it. I hope they demonstrate good faith and engage in collective bargaining.”

USWA President, David J. McDonald

taft hartley invokedOnce again, during the September 28th meeting, Section 2-B proved to be the sticking point; neither McDonald nor the steel companies would change their opinions on that crucial section of the contract. However, the president’s patience eventually wore thin. He established a board of inquiry which found that the chance of a negotiated settlement was slim. The president’s subsequent invocation of the Taft-Hartley Act provided for a mandatory 80 day “cooling off period,” as the strike was determined to be harmful to the national security. On November 7, workers returned to the job while negotiations continued.

the SettlementThe official settlement contract was signed on Jan. 15th, 1960. The contract gave the USW the following benefits.

• Health and Welfare benefits were now entirely funded by the company

• 2-B was preserved inviolate• An hourly increase of 39 cents over three years• A cost of living (COLA) adjustment• Establishment of a ‘Human Relations Committee’ to

help settle disputes and issues between the union and management.

cold war in steel

Courtesy of the Vindicator

Photo by Sean Posey

By 1977, the steel industry in Youngstown had begun its descent into extinction.

ConSeQUenCeS

deSCentoFSteel

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The years 1959-1977 were times of great uncertainty and change in the steel industry. Steel remained king; however, alternatives such as aluminum, reinforced concrete and plastics began to emerge. Perhaps the most ominous development of all was how aged and antiquated many of the major integrated firm’s mills had become by the 1970s. While Europe and Japan wholeheartedly adopted the basic oxygen furnace, it took longer for the new technology to catch on in North America, where billions were invested in open hearth furnaces during the 1950s.

Two back-to-back “Voluntary Restraint Agreements” limiting imports were signed in the late 60s and early 70s in order to give domestic steel makers breathing room to modernize. However, reinvestment was limited as many steel makers diversified into more profitable non-steel related industries. One hundred thousand jobs disappeared in the first six months of 1982 as the entire steel industry melted down.

There were about 4,000 of us in (Local) 1331 in the 50s. We are the only ones left in Youngstown–there’s 75 of us.Thomas Bergamn, LTV Steel employee, 1991, Youngstown, Ohio.

“The American steel industry

in certain areas is no longer

competitive with the rest of the

world.” Alwain Franz, president of Colorado Fuel and Iron. 1959.

Over time, steel imports penetrated the American market

to an increasing degree. By 1986, the United States was the only industrialized country that could not meet domestic steel production needs during times of heavy demand.

Shutdowns in Youngstown—TimelineSeptember19th, 1977

December5th, 1978

November1979

December1979

January1982

April1984

August1986

Youngstown Sheet & Tube announces the closure of its Campbell Works. Within ten days, 1,000 workers are laid off. 5,000 will ultimately lose their jobs.

The Lykes Corporation, which owns Youngstown Sheet and Tube, merges with the LTV Corporation and its steel subsidiary, Jones and Laughlin.

US Steel announces it will be closing the Ohio Works in Youngstown and the nearby McDonald Works by the beginning of the next year. 3,600 jobs will be lost.

The last blast furnace is shutdown at the Jones and Laughlin Briar Hill Works. 1,400 workers are laid off.

Republic Steel begins announcing layoffs that will eventually eliminate 2,600 jobs.

The Justice Department agrees to the merger of LTV’s Jones and Laughlin with Republic Steel Corp. The new firm will be called LTV Steel.

LTV all but shuts down its last operations in Campbell and Youngstown. 300 jobs are lost.

0.05.010.015.020.025.030.035.0

Millions of Tons

Year

Import/Export Data 1959-1989

Imports

exhibit Created By:Henry E. Himes III, Ryan J. Antonucci, Stephanie A. Wuebbles, and Sean T. Posey. History 4811/6943 – Practicum in Applied HistoryProfessor Tom Leary

cold war in steel

Courtesy of Robert Bruno