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Steel Producers, Union Seal Pact; Both Agree to 30-Month Contract; Kennedy Hails DiSalle's Support

By The ASSOCIATED Press

WASHINGTON, Jan. 5--The Steelworkers Union and the nation's big steel producers today sealed their new pact ensuring peace in the industry for at least two and one-half years.

The signing of agreements covering 11 major steel firms came in an atmosphere of good will, a far cry from the bitterness that marked most of the eight-month wage dispute.

Final touches were put on the pact after two top union bodies--its Executive Board and its 171-members Wage Policy Committee--had unanimously endorsed the settlement terms.

The agreement, most of whose terms had leaked out beforehand, calls for a 30-month contract to July 1, 1962. It provides about 40 cents an hour in wage-benefit increases. The workers formerly averaged $3.11 hourly earnings.

Substantial insurance, pension and other benefits became effective immediately. There is no immediate wage boost. But an increase ranging from 7 to 13 cents an hour becomes due on Dec. 1, 1960 and a similar pay raise on Oct. 1, 1961.

Kennedy Welcomes Support of DiSalle

WASHINGTON, Jan. 5--Sen. John F. Kennedy (D-Mass.) hailed as a significant gain the announcement today that Ohio's Gov. Michael V. Disalle supports his campaign for the Democratic presidential nomination.

"This is a significant and heartening step toward our goal," Kennedy said of the announcement that DiSalle supports will run as a favorite son in Ohio's May 3 primary, seeking to sew up the 64-vote delegation for Kennedy.

This all but eliminated the prospect of a battle for delegates in the state, which will have the fifth largest delegation to the convention opening in Los Angeles July 11.

Congress to Convene Tomorrow

WASHINGTON, Jan. 5--Congressional members got ready today to open an election-year session of politicking, legislating, and investigating. The second session of the 86th Congress convenes officially at noon Wednesday with preliminary ceremonies in the Senate and House.

The business of the year will start Thursday when President Eisenhower delivers his final State of the Union message. He will send his annual budget message to the Democratic-controlled Congress Jan. 18 and his economic report two days after that.

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