Business: ONE MAN'S PRICE IS ANOTHER'S INFLATION

WHEN the steel industry reached agreement with the United Steelworkers of America last week on a new labor contract providing for annual wage-and-benefit increases of 6%, Federal Labor Mediator William B. Simkin lauded the settlement as "an outstanding achievement of bargaining." When Bethlehem Steel Corp. followed with price increases, Washington's reaction was far different. Labeling Bethlehem's price hikes "unreasonable," Lyndon Johnson said that they "should not be permitted to stand." To that end, his Administration took action to limit U.S. Government purchase of steel for defense purposes to those companies that hold...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!