Moving Metal

THE STRIKE THAT TRANSFORMED AN INDUSTRY T he national steel strike of 1959 was the largest strike in industry history and was a watershed event for steel and metals service center businesses. The United Steelworkers of America organized the strike in order to demand wage increases, benefits, and employment security. The strikers also opposed industry efforts to change a contro- versial contract clause that prohibited the steel companies from reducing hours or firing workers to lower production costs. On July 14, 1959, half a million steelworkers walked off the job and effectively shut down eighty-five to ninety percent of the nation’s steel mills.

year, while domestic production remained flat. With imported steel proven to be of equal or better quality and available at lower cost, the American steel industry began its long decline. Japanese steel became a significant part of Reliance’s inventory in the 1960s, and the company established excellent business relationships with suppliers such as Mitsui, leading up to their joint venture of 1980.

For nearly four months, the steel industry was crippled. Although Reliance was not a steel producer and was thus not directly involved in the strike, the company’s leaders were still very concerned that inventory would dry up if the supply disruptions lasted for long. As Bill Gimbel feared, the strike dragged on well into the fall and the mills remained closed, leaving Reliance’s shelves empty. As a result, Reliance negotiated import agreements with foreign producers, particularly in Japan, to restock its warehouses. Many other companies did the same to keep their operations afloat, not only in the metals service center industry but also in the automobile, railroad, and mining industries. The 116-day strike finally ended on November 6, after President Dwight D. Eisenhower intervened, citing a threat to national security. The federal courts backed him, and the strikers went back to work with only a small increase in wages. Although the mills restarted, the damage had already been done. Steel imports for 1959 totaled 4.4 million tons, an increase of almost 3 million tons from the previous

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