Steel Industry Opens Contract Negotiations

PITTSBURGH, Pa., Dec. 15--Labor contract negotiations vital to the nation's economy opened today between the United Steelworkers Union and the steel industry.

Eleven meetings started the negotiations, with teams from the United Steelworkers, AFL-CIO, huddling with representatives of the 11 major steel producers.

Both sides agreed to start bargaining in advance of Jan. 1 when the USW formally plans to reopen the contract.

The significance of the Jan. 1 date is that some USW 450,000 members in basic steel would be free to strike 120 days later--May 1--if no agreement is reached.

The initial talks were concerned primarily with local plant problems such as grievance procedures, production work by shop foreman, and the farming out of production jobs.

President Johnson has expressed the hope that a settlement can be achieved which will not prompt the industry to hike prices and set off possible price spirals in other industries.