Revision of the Little Steel Formula

September 2, 1944

Report Outline
Labor Pressure for Wage Increases
Evolution of the Little Steel Formula
Living Costs and the Little Steel Formula
Labor Demands for Revision of Little Steel Formula
Special Focus

Labor Pressure for Wage Increases

Labor pressure for upward revision of the Little Steel Formula has mounted steadily during the last ten months—since the Congress of Industrial Organizations resolved at its annual convention in November, 1943, that the formula was “no longer in accord with reality” and demanded a final readjustment of the national ceiling over wage rates, to be followed by a “real stabilization” of all elements of the national economy. Most of the larger unions affiliated with the C. I. O. have since submitted demands which would push their wage rates well above the levels which are allowable under the Little Steel Formula, and their cases are now pending before the National War Labor Board.

The Little Steel Formula, in its present state, is no more acceptable to the American Federation of Labor than it is to the C. I. O. President Green announced, Aug. 23, that he had been directed by the Federation's executive council to appoint a committee to wait upon the President at the White House early in September. The power to modify the Little Steel Formula had been taken out of the hands of the War Labor Board, Green said, and now rested “solely with the President.” He added that the President would have ample time to adjust wage rates to price levels before the November election.

Little Steel Formula and the National Election

The President has repeatedly expressed the conviction that wages should be held at approximately their prewar levels of purchasing power during the war; that neither the wage earners nor any other group should be permitted to upset the economic stability of the nation. The first national conference of the C. I. O. Political Action Committee, meeting at Washington, June 16, gave general approval to the labor policies of the administration and made a unanimous call for renomination of President Roosevelt by the Democratic party for a fourth term. At the same time it recommended immediate action to permit wages to rise in step with increases in the cost of living and President Murray of the C I. O. reiterated his opposition to the wage freezing policies of the War Labor Board.

ISSUE TRACKER for Related Reports
Steel Industry
Mar. 05, 1982  Rebuilding the Nation's Steel Industry
Jul. 07, 1971  Steel Settlement
Jan. 06, 1965  Steel Wages and Prices
Dec. 27, 1962  Fortunes of the Steel Industry
Oct. 24, 1947  Steel Capacity
Sep. 02, 1944  Revision of the Little Steel Formula
Jul. 18, 1938  The Price of Steel
Aug. 19, 1933  The Steel Industry and Recovery
May 01, 1930  The Iron and Steel Industry
BROWSE RELATED TOPICS:
Regulation and Deregulation
Unions and Labor-Management Relations
Wages