1. 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 in
Steel
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
MahoningValley

2. “
2B-come”
Union
What’s
of
the
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.

3. The Company Issue—
Inflation
Rising 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
Perspective
Strikes 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 Perspective
Many 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
CourtesyoftheVindicator
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

4. 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.
STRUGGLING
THROUGH THE
StRIKE
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 peopleare 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

5. RESOLUTION
RESOLVING
UNRESOLVABLE
the
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 On
By 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 nobenefit from this 80-day injunction.The
Companies wanted it andthey got it. I hope theydemonstrate good faithand engage in collectivebargaining.”
USWA President, David J. McDonald
Taft Hartley Invoked
Once 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 Settlement
The 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

6. Photo by Sean Posey
By 1977, the steel industry in Youngstown had begun its descent into extinction.
CONSEQUENCES
descentof
steel
the
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—Timeline
September
19th, 1977
December
5th, 1978
November
1979
December
1979
January
1982
April
1984
August
1986
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.
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Millions of
Tons
Year
Import/Export Data 1959-1989
Import
s
Exhibit Created By:
Henry E. Himes III, Ryan J. Antonucci, Stephanie A. Wuebbles,
and Sean T. Posey.
History 4811/6943 – Practicum in Applied History
Professor Tom Leary
cold war in steel
Courtesy of Robert Bruno