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P r o b le m s in
M e a su re m e n t o f E x p e n d it u r e s
o n S e l e c t e d It e m s o f
S u p p l e m e n t a r y E m p lo y e e R e m u n e r a t io n




BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner




Problems in
Measurement of Expenditures
on Selected Items of
Supplementary Employee Remuneration

Manufacturing Establishments. 1953

Bulletin No. 1186
UNITED STATES D EPARTM ENT O F LA B O R
James P. Mitchell, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner
Ja n u a ry

For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C.



1956

Price 50 cents




Foreword

In u n d e r t a k in g a n e x p l o r a t o r y s tu d y o f th e p r o b l e m s i n v o l v e d in m e a s u r ­
in g e x p e n d i t u r e s o n s u p p l e m e n t a r y e m p l o y e e r e m u n e r a t i o n i n m a n u f a c t u r i n g i n ­
d u s t r i e s , th e U . S . D e p a r t m e n t o f L a b o r * s B u r e a u o f L a b o r S t a t i s t i c s h a s v e n t u r e d
in to a n o t h e r n e w a n d c o m p l e x a r e a o f s t a t is t ic a l r e s e a r c h . D u r in g r e c e n t y e a r s ,
r e p r e s e n t a t i v e s o f o t h e r G o v e r n m e n t a g e n c i e s a n d th e p u b lic h a v e u r g e d th e B u r e a u
to c o l l e c t d a ta o n s u p p le m e n t a r y r e m u n e r a t io n to r o u n d ou t it s s t a t is t ic s o f a v e r a g e
e a r n in g s , w a g e r a te s , an d r e la t e d w a g e p r a c t ic e s .
K n o w l e d g e in t h i s f i e l d i s
n e e d e d a l s o f o r in t e r n a t io n a l s t u d ie s ; th e I n t e r n a t io n a l L a b o r O r g a n iz a t io n , f o r
e x a m p l e , h a s e v id e n c e d m a r k e d i n t e r e s t in th e d e v e lo p m e n t o f d a ta o n th e m a g n i­
tu d e o f w a g e s u p p le m e n t s in t h is a n d o t h e r c o u n t r i e s .

A s th e p r in c ip a l a g e n c y o f th e F e d e r a l g o v e r n m e n t f o r th e d e v e lo p m e n t
o f l a b o r s t a t i s t i c s , th e B u r e a u c o u ld n o t r e m a i n in d if f e r e n t t o th e q u e s t io n s r a i s e d
w ith r e s p e c t t o th e m a g n it u d e o f t h e s e e x p e n d i t u r e s .
B e fo r e any c o m p r e h e n s iv e
s tu d y c o u l d b e m a d e , h o w e v e r , it w a s n e c e s s a r y t o e x p l o r e th e a v a i l a b i l i t y o f
r e c o r d s , th e w il l i n g n e s s a n d a b ili t y o f in d u s t r y t o p r o v i d e d a ta , th e q u a lity o f e x ­
p e n d itu r e d a ta , an d o th e r m a t t e r s o f m e t h o d o lo g y an d d e fin it io n . T h is p ilo t stu d y
w a s u n d e r t a k e n w ith f in a n c i a l a s s i s t a n c e f r o m th e N a t io n a l B u r e a u o f E c o n o m i c
R e s e a r c h , I n c . , a n d w a s c o n fin e d to m a n u fa c tu r in g e s t a b lis h m e n t s .
D e s p ite its
s h o r t c o m in g s , w h ic h a r e u n d e r s c o r e d th r o u g h o u t th is r e p o r t , th e stu d y h a s b e e n
r e w a r d i n g t o t h e s t a f f o f t h e B u r e a u o f L a b o r S t a t i s t i c s a s I h o p e it w i l l b e t o
th e r e a d e r s o f t h is a n a ly s is o f th e r e s u lt s .

F u r t h e r w o r k b y th e B u r e a u o f L a b o r S t a t i s t i c s in m e a s u r i n g e x p e n d i t u r e s
o n s u p p le m e n t a r y r e m u n e r a t io n u n d o u b t e d ly w ill b e s h a p e d b y th e e x p e r i e n c e g a in e d
in t h is s u r v e y . A lt h o u g h th e d e v e lo p m e n t o f s p e c i f i c s u r v e y t e c h n iq u e s w i l l d e ­
p e n d o n a m o r e in t e n s i v e a n a l y s i s o f th e d a ta in t h is r e p o r t , a n d p e r h a p s o n a d ­
d it io n a l e x p lo r a t o r y in v e s t ig a t io n s , th e B u r e a u is n o w a s s u r e d th a t s u r v e y s o f e x ­
p e n d it u r e s o n s u p p l e m e n t a r y e m p l o y e e r e m u n e r a t io n , c a r e f u l l y l i m i t e d in s c o p e ,
a r e te c h n ic a lly fe a s ib le .
It i s e x p e c t e d t h a t t h e a b i l i t y o f e m p l o y e r s t o s u p p l y t h e
n e c e s s a r y d a ta f r o m a v a i la b le r e c o r d s w i l l g r o w o v e r t im e u n d e r th e s t im u lu s
o f a n in c r e a s i n g r e a l i z a t i o n th a t s u c h r e c o r d k e e p i n g i s u s e fu l f o r b u s i n e s s p u r ­
p o s e s a n d w i d e s p r e a d p u b l i c i n t e r e s t in e x p e n d i t u r e d a t a .

A c a u t io n a r y n o t e m a y b e in o r d e r :
A s th e r e p o r t it s e l f m a k e s a b u n ­
d a n t ly c l e a r , th e e x p e n d i t u r e d a ta s u m m a r i z e d in th e f o l l o w i n g p a g e s r e la t e o n ly
t o t h o s e e s t a b lis h m e n t s r e p o r t i n g th e e x i s t e n c e o f , a n d d a ta f o r , th e p a r t i c u l a r
p r a c t i c e in q u e s t i o n .
T h e y d o n ot in c lu d e f ir m s in c u r r in g n o e x p e n d itu r e s f o r
a p a r t ic u la r it e m a n d t h o s e u n a b le o r u n w illin g to r e p o r t e x p e n d it u r e s .
H en ce,
th e d a ta on a v e r a g e e x p e n d itu r e s f o r a n y p a r t ic u la r it e m a r e n o t a p p lic a b le to
m a n u fa c tu r in g a s a w h o le .
T h e y a r e p r e s e n te d b e c a u s e th e y h a v e a b e a r in g on
q u e s t io n s o f m e t h o d o lo g y w h ic h
w e r e o f p r i m a r y i m p o r t a n c e in t h i s s u r v e y .




E w a n C la g u e
C o m m is s io n e r o f L a b o r

-

iii

-

S ta tis tic s




P r efa ce

O v e r the past 15 ye a r s supplementary w a g e benefits, c o m ­
m o n l y referred to as fringe benefits, have g r o w n steadily as expendi­
ture items for e m p l o y e r s an d as sources of income, leisure and
security for w o r k e r s .
Although the B u r e a u of L a b o r Statistics and
other organizations ha v e attempted to keep abreast of this m o v e m e n t
through studies of the types q | practices in effect a n d their p r e v a ­
lence, comparatively little has be e n done in m e a s u r i n g the supple­
m e n t to w a g e s that these benefits represent or the e m p l o y e r expendi­
tures that they entail.
A n u m b e r of private organizations ha v e m a d e studies of
"fringe-benefit" expenditures for the use of their m e m b e r s h i p or for
general distribution. P r o b a b l y the m o s t widely circulated reports are
those issued by the C h a m b e r of C o m m e r c e of the United States for
the years 1947, 1949, 1951, a n d 1953.*
T w o m a j o r questions m u s t be a n s w e r e d before effective w o r k
can be done on m e a s u r i n g expenditures for all s upplementary benefits.
T h e first involves the conceptual difficulties created by the a b s ence of
a c o m m o n l y accepted definition of "fringe" or supplementary benefits.
W h i c h practices an d types of expenditures do these t e r m s cover?
Opinions within a n d b e t w e e n labor an d m a n a g e m e n t circles differ
widely.
T h e second p r o b l e m relates to w h e t h e r useful a nd reliable
data o n expenditures c an be obtained f r o m c o m p a n y records for all
benefits in effect, or for a fixed package, or for specific items.
This exploratory study, confined to manufacturing establish­
ments, deals with the p r o b l e m s of m e a s u r i n g expenditures, not with
defining "fringe benefits."
Largely because of the conceptual dif­
ficulties noted above, the study bears the c u m b e r s o m e title of " P r o b ­
l e m s in M e a s u r e m e n t of Expenditures on Selected Items of S u p p l e m e n ­
tary E m p l o y e e R e m u n e r a t i o n . " In other words, this is essentially a
study of the methodological p r o b l e m s encountered in surveying c o m ­
p a n y expenditures on a p r e d e t e r m i n e d list of items which, although
not necessarily classifiable as fringe benefits, are nonetheless signif­
icant f o r m s of e m p l o y e r expenditures for labor.
T h e items to be
studied w e r e selected by the B u r e a u of L a b o r Statistics.
It is important to e m p h a s i z e that the t e r m "expenditures" is
not intended as a m e a s u r e of actual costs to the e m p l o y e r nor of the
value of the benefits to the workers.
T h e m e a s u r e m e n t of the real

* See, for example, Fringe Benefits, 1953, C h a m b e r
m e r c e of the United States, Washington, D. C., 1954.




v -

of C o m ­

Preface - Continued

c o s t s con n e cte d with a p a r tic u la r p r a c t ic e m ust take into a ccou n t o f f ­
setting savin gs o f v a rio u s ty p es (w hich, as in the c a s e o f som e p r e ­
m iu m pay ite m s , m ay equal o r e x ce e d ex p e n d itu re s) and, p o s s ib ly ,
a d d ition al re la te d e x p e n se s not in clu d ed in the ex pen ditu re to ta l. F o r
e x a m p le, a p aid v a ca tio n p o lic y o b v io u sly in v o lv e s an expen ditu re o f
m oney by the e m p lo y e r .
T ota l ne x p e n d itu re s" re p r e s e n t the sum of
the v a ca tion p aym en ts to individual w o r k e r s . H o w e v e r, this d o e s not
r e fle c t the net c o s t of a v a ca tion p o lic y . T h e re a re o ffse ttin g sa v in g s,
w hich m ay in clu d e the am ount o f " c o v e r - u p " o r nm a d e -u p n w o rk , the
resu ltan t in c r e a s e in p ro d u ctiv ity during the re m a in d e r of the y e a r ,
a red u ction in a b s e n te e is m , and a re d u ctio n in la b o r tu r n o v e r .
On
the oth er hand, add ition al e x p e n se s m ay a r is e through the substitution,
tra in in g, and tr a n s fe r o f w o r k e r s during the v a ca tion se a so n , the
h irin g of le s s e fficie n t re p la c e m e n ts , the lo s s o f p ro d u ctio n during
the v a ca tio n se a so n , the le g a lly re q u ir e d p aym en ts such as the s o c ia l
s e cu rity tax w h ich apply to v a ca tion pay as w e ll as to re g u la r w a g e s,
and the a d m in istra tiv e c o s t s in v o lv e d .
A v a ca tion shutdown, h o w ­
e v e r , m ay elim in a te train in g and re p la ce m e n t c o s t s , p e r m it u n in te r­
rupted m a in ten an ce and r e p a ir w ork , and, if co in cid in g with a sla ck
p e r io d o r se a so n a l lu ll, fa v o ra b ly a ffe c t the e m p lo y e r 1s e x p e r ie n c e
rating under State u n em p loym en t co m p e n sa tio n la w s. The d e te r m in a ­
tion o f the net co s t of a v a ca tio n p o lic y is m a n ife stly a co m p lica te d
a ccou n tin g p r o b le m .
T h is study d e a ls w ith the p r o b le m s in v olv ed
in m e a su rin g e m p lo y e r expen ditu re s fo r paid v a ca tion s and oth er ite m s ,
without attem pting to evaluate c o s t s to the e m p lo y e r o r the b e n e fits
d e riv e d by the e m p lo y e e .
A lthough the B u reau has long b een in te re s te d in this fie ld of
in q u iry , and as e a r ly as 1951 u n dertook a study of s e le c te d su p p le ­
m en ta ry ex p en d itu res in the b a s ic ste e l in d u stry, this p ilot study w as
in itia ted at the re q u e st o f, and with the c o o p e r a tio n o f, the N ational
B u rea u o f E c o n o m ic R e s e a r c h , I n c ., a s p art o f that o r g a n iz a t io n s
lo n g -r a n g e study o f the m ov em en t o f w age ra te s and ea rn in g s in the
United S tates.
In co m m o n with oth er u s e r s o f w age s t a tis t ic s , the
N ational B u rea u o f E c o n o m ic R e s e a r c h wanted to know m o r e about
the s iz e and sig n ifica n ce o f the su p p lem en tary wage b e n e fits w hich
have co m e into g e n e ra l u se in re ce n t y e a r s , and re q u e ste d the B ureau
o f L a b or S ta tistics to undertake what is e s s e n tia lly a g ro u n d -b re a k in g
su rv e y .
The c o o p e ra tio n o f the N ational B u rea u o f E c o n o m ic R e ­
s e a r c h is g ra te fu lly a ck n ow led g ed .
The study w as con d u cted by the B u rea u of L a b o r S ta tis tic s 1
D iv is io n o f W ages and In d u stria l R e la tio n s. T ech n iq u es fo r the s e l e c ­
tion o f the sa m ple and the tabu lation o f the data w e re d e v is e d and
su p e rv is e d by Sam uel E . C oh en .
J osep h W. B lo c h d ir e c t e d the study,
w ith the a s s is ta n c e o f Don Q . C ro w th e r, and p r e p a r e d the r e p o r t .




vi

Contents

P a ge
F o r e w o r d ---------------------------------------P r e f a c e ______
S u m m a r y _______________________________________________________
P u r p o s e , m eth od, and s c o p e o f s u r v e y --------------------------------------M ethod __________________________________________________________
The sa m p le d e s ig n —-----------------------------------:--------------- ----------------

iii
v
1
9
10
14

C h a r a c te r is tic s o f the r e s p o n s e --------------------R ate o f r e s p o n s e ________________
M ultiplant r e p o r t in g ---------O ther c h a r a c t e r is t ic s o f the r e s p o n s e ________________________
The fin al s a m p l e ________________________________________________
The n o n re sp o n se _______________________

17
17
18
20
21
23

E sta b lish m e n t r e c o r d s and re p o rtin g p r a c t i c e s _________________
E xpenditure r e c o r d s __________________________________________
T im e r e c o r d s ___________________________________________________
A ctu a l and e stim a te d expen ditu res ___________________________

27
27
28
32

F a c t o r s a ffe ctin g expen ditu re le v e ls _____________________________
E sta b lish m e n t expen diture le v e ls _____________________________
A v e r a g e expen ditu re ra tio s _____
A ctu a l and e stim a te d re p o rtin g ________________________
E xp en d itu res p e r a dju sted p a y r o ll h o u r ___________________
V a ria tio n s by s iz e o f e sta b lish m e n t ______________________
V a ria tio n s by in d u stry g r o u p ______________________________
V a ria tio n s by c o lle c t iv e b a rg ain in g status _______________
V a ria tio n s b y type o f p r a c t ic e and ea rn in gs l e v e l s ______
V a ria tio n s in le g a lly re q u ir e d paym ents am ong
re g io n s _____________________________________________________

41
41
45
46
48
51
57
58
64
68

T a b le s :
1.
2.
3.
4.
5.

6.
7.

Rate of re tu rn o f u sa b le q u e stio n n a ire s b y
in d u stry group ___________________________________________
Rate of retu rn o f u sa b le q u e stio n n a ire s by
r e g i o n --------------------------------------------------------------------------------Rate of retu rn o f u sa b le q u e stio n n a ire s b y
s iz e o f unit c o v e r e d _____________________________________
K eep in g o f ex pen ditu re r e c o r d s fo r p ro d u ctio n
and r e la te d w o r k e r s b y ite m ___________________________
E sta b lish m e n t p r a c t ic e in su m m a riz in g
expen diture r e c o r d s fo r p ro d u ctio n
and re la te d w o r k e rs b y ite m ___________________________
K eeping o f tim e r e c o r d s fo r p ro d u ctio n and
re la te d w o r k e rs by s e le c te d item s _____________________
E sta b lish m e n t p r a c t ic e in su m m a riz in g tim e
r e c o r d s fo r p ro d u ctio n and re la te d w o r k e r s
by s e le c te d item s _______________________________________




- v ii

-

19
19
19
29

30
30

31

Contents - Continued

T a b le s: - C ontinued
8.
9.
10.
11.
12.
13.

14.
15.

16.
17.
18.
19.

20.
21.
22.
23.
24.

2 5.
2 6.

P age

N ature o f expen ditu re fig u re s re p o r te d by i t e m -----------N ature o f expen ditu re fig u re s re p o r te d fo r ite m
grou ps b y union status -------------------------- -----------------------N ature o f ex pen ditu re fig u re s re p o r te d fo r ite m
grou ps b y s iz e o f e s t a b lis h m e n t -----------------------------------R ea son s o ffe r e d fo r fa ilu re to r e p o r t expen ditu res
b y ite m ___________________________________________________
M ethods o f estim a tin g expen ditu res b y i t e m -----------------A v e r a g e ex p en d itu res p e r p a y r o ll hour fo r
re p o rtin g esta b lish m en ts on ly by item
and nature o f r e p o r t _____________________
A v e r a g e ex p en d itu res as p e r c e n t o f p a y r o ll
fo r re p o rtin g e sta b lish m e n ts on ly b y ite m
and nature o f r e p o r t _____________________________________
A v e r a g e ex p en d itu res p e r y ea r p e r e m p lo y e e fo r
re p o rtin g esta b lish m en ts on ly by item and
nature o f r e p o r t _________________________________________
D iffe r e n c e betw een a v e ra g e expen ditu res p e r p a y r o ll
hour and a v e ra g e expen ditu res p e r a dju sted p a y r o ll
h o u r, fo r re p o rtin g esta b lish m en ts on ly b y i t e m ------E x p en d itu res p e r p a y r o ll hour fo r re p o rtin g
esta b lish m en ts on ly b y ite m and s iz e o f
e s t a b lis h m e n t ____________________________________________
E xp en d itu res as p e r c e n t o f p a y r o ll fo r re p o rtin g
esta b lish m en ts on ly b y ite m and s iz e o f
e s t a b lis h m e n t ____________________________________________
A v e ra g e exp en d itu res p e r ad ju sted p a y ro ll hour fo r
re p o rtin g esta b lish m en ts o n ly by ite m and
in d u stry group __________________________________________
A v e r a g e exp en d itu res as p e r c e n t o f p a y r o ll fo r
re p o rtin g esta b lish m en ts on ly by ite m and
in d u stry group __________________________________________
E xp en d itu res p e r y ea r p e r e m p lo y e e fo r re p o rtin g
esta b lish m e n ts on ly b y ite m and in d u stry group ____
E xp en d itu res p e r p a y r o ll hour fo r re p o rtin g
esta b lish m en ts on ly b y ite m and union status ________
E xp en d itu res as p e r c e n t o f p a y r o ll fo r re p o rtin g
esta b lish m en ts on ly b y ite m and union status _________
E xp en d itu res p e r p a y r o ll hour fo r p aid h olidays
fo r re p o rtin g e sta b lish m e n ts on ly b y
esta b lish m e n t ea rn in gs le v e l and nu m ber o f
h olid a ys p ro v id e d _______________________________________
E xp en d itu res p e r p a y r o ll hour fo r p aid va ca tion s
fo r re p o rtin g e sta b lish m e n ts on ly b y e sta b lish m e n t
earn in gs le v e l and a v e ra g e length o f v a c a t i o n _________
E xp en d itu res p e r p a y r o ll hour fo r sh ift p re m iu m s
fo r re p o rtin g e sta b lish m e n ts o n ly b y volu m e
o f sh ift w o r k ----------- -------------------- — -----------------------------------




- v iii -

31
35
36
37
38

47

49
50
52

53
55

59
59
60
62
63

65

65
67

Contents • Continued

T a b le s: - C ontinued
27.
28.

29.

30.

Page

E xp en d itu res p e r p a y r o ll hour fo r s ic k le a v e
fo r re p o rtin g e sta b lish m e n ts on ly
b y type o f plan __________________________________________
E xp en d itu res p e r p a y r o ll hour fo r p e n sio n plans
fo r re p o rtin g e sta b lish m e n ts o n ly
b y type o f plan __________________________________________
E xp en d itu res p e r a d ju sted p a y r o ll hou r fo r
le g a lly r e q u ir e d paym ents fo r re p o rtin g
esta b lish m en ts on ly b y re g io n and
type o f p a y m e n t__________________________________________
E xp en d itu res fo r le g a lly re q u ir e d paym ents as
p e r c e n t o f p a y r o ll fo r re p o rtin g esta b lish m en ts
on ly b y r e g io n and type o f p a y m e n t ___________________

67

67

69

70

A ppendix:
Q u estion n a ire __________________________________________________
In stru ction s fo r q u e s t io n n a ir e ________________ _______________




IX

71
79




P r o b l e m s in M e a s u r e m e n t of E x p e n d i t u r e s on S e l e c t e d I t e m s
of S u p p l e m e n t a r y E m p l oy e e R e m u n e r a t i o n

S u m m ary

No sin gle study, h o w e v e r e x te n s iv e , can p ro v id e d efin itiv e
a n sw ers to a ll s u r v e y p r o b le m s in a c o m p le x fie ld o f s ta tis tic a l in ­
v estig ation * A ll su rv e y w o rk in the s o c ia l s c ie n c e s , in d eed , r e q u ir e s
a con sta n t p r o c e s s o f adaptation to change in the fie ld o f in q u iry and
in s u r v e y te ch n iq u e s.
The p re se n t su rv e y was lim ite d in te r m s o f
in d u stria l c o v e r a g e , o b je c t iv e s , and m eth od . It was h op ed, h o w e v e r ,
that the study w ou ld advance a p p re cia b ly the kn ow ledge o f the p r o b ­
le m s and co n d itio n s to be taken into a ccou n t in su r v e y s o f e x p e n d i­
tu res on c e r ta in s e le c te d ite m s o f su p p lem en tary e m p lo y e e r e m u n e r a ­
tion ,
T h is m o d e s t e x p e cta tio n , in the judgm ent o f the B u rea u , was
r e a liz e d .
T h is s e c tio n attem pts b r ie fly to su m m a riz e the d eta iled
a n a ly sis o f the nature and fin d in gs o f this e x p lo r a to r y study. T h o se
r e a d e r s with m o r e than a ca su a l in te re s t in the m e th o d o lo g ic a l p r o b ­
le m s to w h ich the r e p o r t is d ir e c te d a re u rg ed to exam in e the b od y
o f the r e p o r t .
T he s u r v e y was d esig n ed b a s ic a lly to th row ligh t on a v a r ie ty
o f m e th o d o lo g ic a l p r o b le m s , such as the nature o f r e c o r d s on s e le c te d
exp en d itu re ite m s m ain tain ed by e m p lo y e r s , com p a n y p r a c t ic e with
r e s p e c t to the su m m a riz a tio n o f these r e c o r d s and the ca lcu la tio n
o f ex p en d itu re s in the a b se n ce o f s p e c ific expen ditu re r e c o r d s , the
w illin g n e ss o f e m p lo y e r s to supply actual o r ca lcu la te d data in r e ­
sp on se to a m a il in q u iry , and re la te d q u e s tio n s . L ight was a ls o sought
on the q u estion o f fa c t o r s m aking fo r v a ria tio n s in ex p en d itu res am ong
e m p lo y e r s fo r p a r tic u la r it e m s , and on the m o s t u sefu l ways of p r e ­
senting expen ditu re data.
It was not intended that the su r v e y should d e v e lo p d efin itiv e
e stim a te s o f actual ex p en d itu res f o r the u n iv e rse o f e sta b lish m e n ts
(m an u factu rin g as a w hole) to w hich the su rv e y re la te d . The b o d y o f
the r e p o r t con tain s m any ca u tio n a ry n otes to this e ffe c t . On the o th e r
hand, it was e s s e n tia l that a s y ste m a tic su r v e y be undertaken; that
i s , it was n e c e s s a r y f o r the p ilo t su rv e y to a p p ro x im a te , w ithin
lim it s , the p r o c e d u r e s and con d ition s o f a su rv e y d e sig n e d to p ro d u ce
th ose e s t im a te s .
The p r in c ip a l d ep a rtu re fr o m standard m a il s u r v e y p r o c e ­
d u res in the p ilo t study was the a b se n ce o f p r o v is io n fo r fie ld follow u p
o f n o n resp o n d e n ts, and fo r a lim ite d fie ld ch e c k on th ose who did
r e p o r t . Such follow u p c le a r ly w ould have to be undertaken in a s u r ­
v e y d esig n ed to d e v e lo p expen ditu re e stim a te s a p p lica b le to a d efin ed
u n iv e rse o f f i r m s . The nature o f the n o n re sp o n se to the p ilo t su rv e y
w a s, h o w e v e r , s u s ce p tib le o f so m e a n a ly s is , as the b o d y o f the r e p o r t



1

2

show s. Had la rg e r r e s o u r c e s been available fo r the pilot study, ad­
ditional in quiries could have been d irected to the resp on d en ts, p a r t ic ­
u la rly with rega rd to variations in accounting p r o c e d u r e s .
As su g ­
gested e a r lie r , h ow ever, no single su rvey can probe into all asp ects
o f a field o f sta tistical m easu rem en t, and the pilot su rvey in the fo rm
in which it developed was unusually demanding upon respondents and
the B ureau.
Scope and M ethod o f Survey
Any su rvey requ ires that b a sic d ecision s be taken with r e ­
sp ect to its s c o p e .
The p ilot study was lim ited to m anufacturing,
and the sam ple was so drawn as to rep resen t all size groups (a m in ­
im um s iz e lim it o f 20 em ployees was set fo r the su rvey), all g e o ­
graphic re g io n s , and all m anufacturing in d u stries.
In p rin cip le , the
size o f the sam ple was such that com p lete resp on se would have p e r ­
m itted the presentation o f data reasonably represen tative o f m anufac­
turing as a w hole; even with com p lete re sp o n se , the size o f the sam ple
would not have perm itted the showing o f separate data fo r p a rticu lar
in d u strie s. Com plete resp on se , o f c o u r s e , was not expected. It was
hoped that the resp on se would be su fficien tly great to p erm it exam in a­
tion o f the p rob lem s to which the su rvey was d ire cte d .
The sam ple was se le cte d on an establishm ent b a s is , but m u lti­
plant com panies w ere given an option o f reportin g fo r all plants c o m ­
bin ed.
In term s o f em ployee co v e ra g e
c o v e r produ ction and related w o rk e rs .

the study was designed to

The item s of supplem entary rem uneration se le cte d fo r study
w ere:
P aid vacations
P aid holidays
P aid sick leave
P rem iu m pay fo r ov e rtim e — daily, w eekly,
o r fo r w ork on s p e c ific days as such
P rem iu m pay fo r w ork on holidays
Shift prem ium pay
P en sion plans
Insuran ce, health, and w elfare plans
L ega lly requ ired paym ents----- Old Age and
S u rvivors Insurance, unem ploym ent c o m ­
pensation, w o rk m e n 's com pensation, and
State tem p ora ry d isa bility in su ran ce.
T hese item s o f supplem entary rem uneration are am ong the
m ost com m on ; they account fo r a la rg e part o f total expen ditu res,
how ever such expenditures are defined; excep t fo r those req u ired by
law , they are su bject to co lle c tiv e bargain ing.
T hey rep resen t im ­
portant types o f com pany expenditures going to w o rk e rs , o r paid on
their beh alf, and not accounted fo r in straigh t-tim e wage r a te s.



3

A num ber o f p a y roll and m an-hour aggregates w ere requested
to p erm it the com putation o f variou s expenditure r a tio s .
The su rvey was not lim ited to the reportin g o f actual expen di­
ture data. E m p loyers w ere requ ested, w here p o s s ib le , to estim ate
o r calculate expenditures in the absence o f actual expenditure r e c o r d s ,
and to indicate how the estim ates w ere m ade.
The su rvey p ro p e r was conducted essen tia lly by m a il. H ow ­
e v e r , the questionnaire was p retested by p erson a l v is its to a sm a ll
number o f fir m s .
In the actual su rvey, an initial v is it to a group
o f k ey com panies was m ade by B ureau rep resen ta tives to review the
fo r m and in structions with com pany rep resen ta tives who w ere r e ­
spon sible fo r supplying the data.
Q uestionnaires w ere m ailed in
A p ril 1954, and data w ere requ ested fo r the calen dar year 1953. One
follow up letter was sent to all nonrespondents.
Editing o f the returns
b e r o f requ ests b y the Bureau
data.
The resp on se to these
the num ber o f re p lie s and the

resu lted in a com p a ra tively la rge num ­
fo r cla rifica tio n o f data o r fo r om itted
requ ests was sa tis fa cto ry in term s o f
additional o r cla rify in g data subm itted.

Survey R esults
R espon se to the Q u estion n a ire.— A s m easu red in term s o f
usable qu estion n aires, a resp on se rate o f 50 p ercen t (550 returns
out o f 1,105 solicited ) was obtained. E s p e cia lly in view o f the length
and com p lexity o f the qu estion n aire, this re sp o n se rate to a m a il
inquiry is encouraging evidence o f in terest among respondents in the
content o f the su rvey and o f their ability to p rovid e all o r part o f
the b a sic data req u ired .
The resp on se rate was re la tiv e ly low fo r industry groups in
which sm all establishm ents p redom in ate, fo r low -w a ge industry g ro u p s,
and fo r establishm ents loca ted in the South. S iz e , wage le v e l, and
loca tion ob v iou sly are not com p letely independent v a r ia b le s .
F or
exa m ple, the low est rate o f resp on se was fo r the apparel industry
grou p . A pparel is ch a ra cte rize d by sm all establishm ents, c o m p a ra ­
tively low wages in som e bran ch es o f the in dustry, and the location
o f im portant segm ents o f the industry in the Southern re g io n . A r e l ­
atively low rate of resp on se was obtained also fr o m com panies with
plants in m o re than one reg ion .
The resp on se to the su rvey was analyzed in term s o f a num ­
b e r o f im portant c h a r a c te ris tic s o f m anufacturing as a w h ole. Thus,
about 75 p ercen t o f the establishm ents responding rep orted c o lle c tiv e
bargaining con tra cts cov erin g a m a jo rity o f their produ ction and r e ­
lated w o r k e r s . On the b a sis o f other Bureau in form ation on con tra ct
c o v e ra g e , this prop ortion appears to be slightly above the le v e l fo r
all m anufacturing. S im ila rly , the resp on se fr o m high-w age as c o m ­
pa red with low -w a ge establish m en ts, and fr o m establishm ents which



4

tend to have many rather than few supplem entary p r a c t ic e s , appears
to have been som ewhat g re a te r, on the a v era ge, than the actual p r o ­
portion s in m anufacturing. The d iffe r e n c e s , h ow ever, were co m p a ra ­
tiv ely sm a ll, and the upward bias was not judged to be sign ifica n t.
The net im p re ssio n is that the p rob lem o f a represen tative
sam ple o f establishm ents in m anufacturing would not be e s p e c ia lly
fo rm id a b le . The p ilot survey indicated c le a r ly the m a jo r d irection s
in which supplem entation o f the returns to a m ail inquiry would have
to be m ad e, and this in form ation is of great use in su rvey planning.
A su rvey by m ail designed to develop expenditure data represen tative
o f m anufacturing would, o f c o u r s e , requ ire the use o f p e rso n a l v isits
to nonrespondents and spot ch ecks o f the returns o f resp on d en ts. If
data w ere to be published separately by industry group, the sam ple
would have to b e con sid era b ly la rg e r than that em ployed in this p ilo t
study. The co sts o f such a study would be substantially greater than
those in cu rred in the p resen t e ffo rt.
R e c o rd s and R eporting P r a c t ic e s .— A m a jo r pu rpose o f the
study was to lea rn the prevalen ce among m anufacturing establishm ents
o f the m aintenance o f expenditure and/or tim e r e co r d s fo r the sele cte d
item s o f em ployee rem uneration, and o f the ability to supply actual o r
estim ated data fr o m these r e c o r d s .
R ecord k eep in g . — By and la rg e , the r e co r d k e e p ­
ing p r a c tic e s w ere encouraging fo r those with an
in terest in developing system atic data on supple­
m entary rem u neration. T here w as, of c o u r s e , c o n ­
sid era b le variation in p r a c tic e . R e co rd s w ere m ost
com m on ly m aintained, as was anticipated, fo r leg a lly
requ ired paym ents.
T here was a tendency in r e c ­
ordkeeping to com bine prem ium pay fo r overtim e
with prem ium pay fo r holiday w ork.
With re sp e ct
to p en sion s, payments made fo r past s e rv ic e lia ­
b ility frequently w ere com bined with paym ents fo r
cu rren t s e r v ic e . F o r insurance and w elfare ite m s,
r e c o r d s w ere often m aintained fo r a com bination o f
item s (the "w elfa re p a ck a g e", which m ight co n sist
o f h ospitalization , su rg ica l, and other benefits) rather
than fo r each item sep a ra tely. In the ca se o f shift
prem ium pay, the p rop ortion o f establishm ents not
keeping r e c o r d s was exception ally high, suggesting
that m any com panies view shift prem ium s as part o f
b a sic wages fo r p a yroll accounting p u rp o s e s. About
half o f the respondents indicated that separate e x ­
penditure r e co r d s fo r each o f the se le cte d item s in
e ffe ct in the establishm ent w ere kept.
Excluding
prem iu m pay, the p rop ortion was in cre a se d to ap­
p roxim a tely 70 p ercen t.



5

Sum m arization of R e c o r d s .— The vast m a jo rity
o f establishm ents keeping expenditure r e c o r d s sum ­
m a rized the individual r e co r d s fo r their own o r other
u s e s . This was true also with re sp e ct to tim e r e c ­
ord s fo r the prem iu m pay and other p a y ro ll ite m s,
such as overtim e o r paid h olida ys. W here tim e r e c ­
ord s are available, a b a sis is p rovid ed fo r estim ating
expenditures in the absence o f actual expenditure
record s.
P ro v is io n o f Data fr o m R e c o r d s .— While in fo r ­
m ation on recordk eepin g p r a c tic e s as such is im ­
portant, the cru cia l question, in term s o f expenditure
stu dies, is the w illin gness and ability o f respondents
to p rovid e the requested data fr o m their r e c o r d s .
F o r exa m ple, r e c o r d s m ay exist on shift w ork, but
the sum m arization o f these r e co r d s (on either a tim e
o r expenditure b a sis) fo r a p e rio d o f a year m ay be
e x c e s s iv e ly tim e consum in g. A c lo s e ly related c o n ­
sideration is the quality o f the in form ation p rov id ed .
A ctu ally, about 75 percen t o r m o re o f the e s ­
tablishm ents keeping expenditure r e c o r d s provided
actual expenditures fo r paid va ca tion s, paid h olida ys,
and the le g a lly requ ired ite m s.
M ost com panies
cou ld not provide actual figu res on the insurance
com p on en ts. About 30 percen t o f the respondents
p rovid ed actual expenditure figu res fo r all se le cte d
item s liste d and in e ffe ct. Another 46 p ercen t p r o ­
vid ed som e actual and som e estim ated fig u res o r ,
in a few c a s e s , made estim ates fo r e v e ry ite m . In
the rem aining 24 percen t o f the r e p o r ts , data w ere
absent fo r one o r m o re o f the item s in e ffe c t. The
corresp on d in g p rop ortion s fo r the ca te g o ry nall s e ­
le cte d item s except prem ium pay” w ere 45 p e rce n t,
42 p e rce n t, and 13 p e rce n t.
W here estim ates w ere p rov id ed , the m ethods
m ost com m on ly used w ere (l) calculating expen di­
tures on the b a sis o f related data; e . g . , applying an
average wage rate to available data on m a n -h ou rs;
o r (2) prorating expenditures as between produ ction
and related w ork ers and all em ployees o r the p a r ­
ticu lar grouping o f em ployees c o v e re d b y the r e c ­
ord s o f the establishm ent. In gen eral, the m ethods
o f estim ation o r calculation appeared rea son a b le.
The d ifferen ces between actual and estim ated or
calculated expenditure ra tio s, as presented in the
aggregate fo r all reporting establishm ents, w ere
slight.



6

Quality o f the R e s p o n s e .— The a ccu ra cy and r e ­
lia b ility o f the individual resp on ses w ere d ifficu lt
fa cto rs to a s s e s s in the absence o f o n -th e -s p o t
ch e c k s .
Matching com pany p ra ctice s against e x ­
penditures p rovid ed a rough m easu re o f re lia b ility .
A number of overstatem en ts, understatem ents, and
om issio n s w ere brought to the attention o f resp on d ­
ents and w ere c o r r e c te d b y this m ethod. F o r e x ­
am ple, data rep orted on m an-hours o f vacation taken
and paid fo r , in conjunction with average hourly
earnings derived fr o m the aggregate p a yroll and
m an-hour data a lso rep orted , p rovid ed a ch eck on
rep orted vacation expenditures; s im ila r c r o s s -c h e c k s
could be m ade on som e o f the other ite m s. It m ay
b e , h ow ever, that many e r r o r s in reporting w ere
not d etected , p a rticu la rly where re p orted expendi­
tures fe ll within the range of p o s s ib le expenditures
fo r the p r a c tic e s in e ffe ct.
What e ffe ct such reporting e r r o r s as w ere m ade
m ight have on aggregate data can only be su rm ise d .
It is obvious that it would take a substantial num ber
o f e r r o r s in the sam e d irection to a ffect sign ificantly
the type o f expenditure ratios com puted in this study.
An analysis o f the expenditure ratios fo r the item s
which could be m atched with p r a c tic e s fa iled to d is ­
c lo s e any concentration o f e r r o r s , upwards o r down­
w ards . H ow ever, no evaluation o f the p r e c is io n o f
the aggregate resp on ses fo r these item s was p o s s ib le ,
m ainly becau se o f the va riety o f fa cto rs affecting
expenditure le v e ls in individual establish m en ts. F o r
som e ite m s, p a rticu la rly pensions and health and
in surance plans, the data c o lle c te d in this survey
p rovid ed no b a sis fo r judgm ent regardin g the r e lia ­
b ility o f the resp on se.
R e c o rd s and Survey P lan n in g.— O bviously, the
m a ss o f inform ation accum ulated on the recordk eepin g
p r a c tic e s , and on the w illingness and ability of e m ­
p lo y e rs to provide actual o r estim ated expenditure
data are b a sic fo r survey planning. In another study,
fo r in stan ce, it m ight be n e c e s s a r y to requ est a total
expenditure figu re fo r in su ran ce, rather than a b r e a k down by com ponent, such as h osp italization , s u rg ica l,
and the lik e .
It should be re co g n iz e d , at the sam e tim e, that
recordk eepin g p r a c tic e s are not s ta tic.
T his p ilo t
study revea led that em p loyers do, in fa ct, w idely
m aintain the types of r e co r d s req u ired b y the s u r ­
v e y , a re fle ctio n o f the in crea sin g im portan ce o f



7

supplem entary expenditures and o f em ployers* need
fo r knowledge o f their m agnitude. It is reasonable
to exp ect that such in terest w ill re su lt in further
refinem ents o f record k eep in g.
F a cto rs A ffecting Expenditure L e v e ls .— The final p ortion deals
with som e of the fa cto rs accounting fo r variations among e sta b lish ­
m ents and groups o f establishm ents in expenditure le v e ls fo r the s e ­
lected ite m s. This type of analysis could be presen ted in m eaningful
fo r m only by the use o f ratios com m on ly em ployed to com pare e x ­
penditures among establish m en ts.
A s em phasized repeatedly, la te r , expenditure ratios in this
study are not applicable to m anufacturing as a w hole. The resp on se
was not com p letely represen tative o f m anufacturing; m o r e o v e r , the
averages shown fo r individual item s relate only to establishm ents
reporting expenditures fo r such ite m s.
H ow ever, the sizable body of expenditure in form ation which
was gathered can be validly used to throw light on a variety o f q u e s­
tions im portant fo r survey planning.
F o r exam ple, the d isp e rsio n
that can be expected in a value o r s e rie s o f values (like expenditures
fo r paid vacations) has practiced im plication s fo r sam ple design.
S p e cifica lly , 524 establishm ents rep orted expenditures fo r
paid va ca tion s.
How do these expenditures (in te rm s , fo r exam ple,
o f cents p e r p a y roll hour) va ry by such fa cto rs as size o f e sta b lish ­
m ent, wage le v e l, o r c o lle c tiv e bargaining status? The analysis o f
the data p rov id es ex trem ely su ggestive, even though tentative, an­
sw ers to questions of this type. It seem s c le a r that the resu lts o f
the analysis o f expenditure variations fr o m this p a rticu lar study show
at lea st the m inim um range within which variation in expenditure
ratios w ill o c cu r in m anufacturing. A distribution o f expenditure
ratios fo r a pa rticu la r item among a thousand establishm ents m ight
revea l a grea ter range than that shown b y the p resen t study; obv iou sly
the range would not be s m a lle r.
Significant inform ation on fa cto rs making fo r variations in
expenditures among firm s and on the range of expenditures that can
be anticipated in this type o f survey is developed in the final section
o f the re p o rt.
Some b r ie f general findings on expenditure variation
follow :
1.
The su rvey found con sid erab le variation among e sta b lish ­
m ents in expenditure lev els fo r the sam e item , whether e x p re sse d in
cents p er hour, p ercen t o f p a y ro ll, o r d ollars p e r year per e m p loy ee.
2 . Som e o f the fa cto rs accounting fo r variations among e s ­
tablishm ents in expenditure ratios fo r a pa rticu la r item are type o f
p r a c tic e , e lig ib ility requ irem en ts, wage le v e l, m an-hours o f e m p lo y ­
m ent, and g ro s s p a y r o lls .



8

3.
Many o f the fa cto r s influencing g r o s s expenditures le v e ls
and the com puted expenditure ratios among establishm ents also account
fo r changes in the sam e establishm ent fr o m one yea r to another.
Changes in the volum e o f overtim e w ork , fo r exa m ple, not only make
fo r changes in expenditures fo r prem iu m pay but also a ffect the
p e r c e n t-o f-p a y r o ll ratios fo r other ite m s. The m o st unstable expen di­
tures are lik ely to be fo r p rem iu m pay fo r overtim e and shift w o rk ,
sin ce expenditures depend on the volum e o f such w ork , ex p en d itu res
fo r pensions are also lik ely to exhibit y e a r -t o -y e a r variations which
are not cau sed by changes in the type o f plan in e ffe c t.
4.
expenditures
wage le v e l),
and earnings
this analysis




The data lent them selves to analysis o f va ria tion s in
by size o f establishm ent, industry group (c la s s ifie d by
c o lle c tiv e bargaining status, re g io n , type o f p r a c t ic e ,
le v e l. H ow ever, the tentative relation sh ips d e riv e d fr o m
are m uch too com p le x fo r any gen era lized su m m a ry.

9
P u r p o s e , M ethod, and Scope o f S u rvey
The tech n iqu es o f w age rate su rv e y s have b een d e v e lo p e d
and re fin e d o v e r a long p e r io d o f t im e .
In co n tra s t, the technique
o f su rvey in g e m p lo y e r ex p en d itu res on su p p lem en tary o r nonwage
rem u n era tio n , such as paid v a ca tio n s and p e n sio n s , is still in a
ru d im en ta ry sta g e .
T his study w as undertaken to e x p lo r e the p r o b ­
le m s in v o lv e d in su rvey in g such e x p e n d itu re s.
Sin ce e ffic ie n t su rv e y tech n iqu es r e s t on a foundation o f
kn ow ledge about the su b je ct studied, this e x p lo ra tio n n e c e s s a r ily d eals
with the m agnitude and range o f ex p en d itu res fo r s e le c te d ite m s am ong
a substantial nu m ber o f e sta b lish m e n ts, and the v a ria tio n s in e x ­
penditure le v e ls am ong m anu factu rin g in d u stry g ro u p s , la r g e and
sm a ll fir m s , e sta b lish m e n ts with s im ila r p r a c t ic e s , e t c .
It was
not e x p e cte d , h o w e v e r , that this su rv e y w ould y ie ld expen diture data
s u fficie n tly r e lia b le o r p r e c is e to r e p r e s e n t a ll m anu factu rin g e s ta b ­
lish m en ts fr o m w h ich the sam ple was draw n o r to be u sed fo r p u r ­
p o s e s oth er than the lim ite d on es fo r w h ich the study w as planned.
On the p u re ly m e th o d o lo g ic a l p r o b le m s , the B u reau o f L a b o r
S ta tistics w anted to find out, w ithin the lim ita tio n s o f a sin gle su rvey
n e c e s s a r ily r e s tr a in e d in its dem ands upon e m p lo y e r c o o p e ra tio n and
the B u r e a u s r e s o u r c e s :
1.

W hether expen ditu re r e c o r d s a re m aintained;

2.

W hether tim e r e c o r d s fo r ce rta in ite m s a re m a in ­
tained;

3.

How fre q u e n tly th ese expen diture and tim e r e c o r d s
a re a g g re g a te d o r su m m a riz e d by the com p an y;

4.

The w illin g n e ss o f e m p lo y e r s to re sp o n d to an in ­
q u iry co n ce rn in g r e c o r d s and e x p e n d itu re s;

5.

How e m p lo y e r s ca lcu la te o r e stim a te ex p en d itu res
in the a b s e n ce o f a ctu al ex pen ditu re r e c o r d s ;

6.

W hether e m p lo y e r s co u ld and w ould supply actu a l
o r e stim a te d annual expen diture to ta ls fo r s e ­
le c t e d ite m s ;

7.

W hether ca lcu la te d o r e stim a te d fig u r e s a re r e ­
lia b le in the a g g re g a te ;

8 0 How th ese p r a c t ic e s d iffe r
la rg e and sm a ll co m p a n ie s ,
com p a n ie s , etc •;



am ong in d u s trie s ,
union and nonunion

10

9©

W h i c h w a y s of presenting expenditure data are
feasible, and

10,

If expen ditu re su rv e y s a re fe a s ib le , can they be
con d u cted , in w h ole o r in p art, by m ean s o f
m a il s u r v e y s .

M ethod
B a s ic to the B u r e a u ^ a p p ro a ch w e r e s e v e r a l co n s id e r a tio n s o f
s p e c ia l im p o rta n ce to the B u rea u , but p erh a ps not o f equal im p o rta n ce
to oth er o rg a n iz a tio n s having an in te re s t in expen ditu re data.
The
B u rea u is p r im a r ily c o n c e r n e d with the d evelop m en t o f s ta tis tics on
ex p en d itu re s in a fo r m co n s iste n t with its data on o ccu p a tio n a l wage
ra te s and a v e ra g e h o u rly and w eek ly e a rn in g s .
T his m ean t, am ong
oth er th in g s, that ( l ) the study w ould deal with p ro d u ctio n and r e ­
la ted w o r k e r s on ly ra th er than with a ll e m p lo y e e s ; (2) the o b je c t
o f ultim ate expen ditu re su rv e y s w ould be to estim a te ex p en d itu res
in te r m s o f cen ts p er h ou r, p e rce n t o f p a y r o ll, and sim ila r a v era gin g
r a tio s ra th er than in a g g re g a te d o lla r v o lu m e ; (3) it w ou ld be s u ffi­
cien t to co n ce n tra te on ex p en d itu res fo r s p e c ific ty p es o r com b in a tion s
o f su p p lem en tary re m u n e ra tio n ra th er than on ta llt su p p lem en tary
e x p e n d itu re s, a co n ce p t w h ich , at the p re se n t tim e , d e fie s d e fin i­
tion ; (4) the su rv e y a p p ro a ch w ould be p r in c ip a lly on an esta b lish m e n t
ra th er than on a com p an y b a s is ; and (5) the study w ou ld be lim ite d
to m anufacturin g in d u s trie s , thus a voidin g the addition al c o m p le x itie s
e x p e cte d fr o m c o v e r a g e o f nonm anufacturing in d u s tr ie s . It w a s, h ow ­
e v e r , a ls o im p orta n t to r e c o g n iz e that the r e s o u r c e s a v a ila b le fo r the
study w e r e r e la t iv e ly sm a ll; that the su rv e y w ould have to be c o n ­
ducted by m a il ra th er than by fie ld v is it; that the am ount o f in fo r m a ­
tion sought w ould have to be lim ite d — in sh o rt, that the su rv e y m ight
not y ie ld c o n c lu s iv e data on the p r o b le m s studied n or w h olly r e lia b le
data on m any a s p e cts o f th ese p r o b le m s .
The o b je c t iv e s and m e ch a n ic s o f the study and m any o f its
lim ita tio n s a re im p lic it in the q u estion n a ire d e v ise d by the B u reau ,
w hich is re p r o d u c e d , with a ccom p a n yin g in s tr u ctio n s , in the a p p e n d ix ,1
The d efin ition s o f the co n c e p ts and te r m s u sed a re con ta in ed in the
in s tr u ctio n s; th ese should be co n s u lte d fr e e ly in read in g this r e p o r t
and in terp re tin g the data.
It m ay be helpful at this point to ex p la in so m e o f the r e a s o n ­
ing and d e c is io n s that went into the d esig n and sco p e o f the q u e stio n ­
n a ir e .
A m a jo r p r e m is e , o f c o u r s e , w as that the lo n g e r and m o r e
d ifficu lt a m a il q u estion n a ire w a s, the p o o r e r w ou ld be the r e s p o n s e ,2

1 The B ureau r e c e iv e d a s s is ta n c e fr o m som e m anagem ent and
union re p r e s e n ta tiv e s in d raftin g the q u estion n a ire and the in s tr u c tio n s .
B y B ureau m a il q u estion n a ire sta n d ard s, the q u e stio n n a ire
u sed w as both long and d iffic u lt.



11

1. P ro d u ctio n and R ela ted W o r k e r s .— The d efin ition is id e n ­
tic a l with that used by the B u reau fo r its re g u la r m onthly and annual
p r o d u c tio n -w o r k e r e m p loy m en t s e r ie s fo r m a n u factu rin g in d u strie s
and by oth er G ov ern m en t a g e n c ie s .
A lthough data co v e r in g a ll e m ­
p lo y e e s (in clu d in g o f f ic e , s u p e r v is o r y , and e x e cu tiv e p e rs o n n e l) m ay
be e a s ie r to obtain , p a r tic u la r ly fo r such ite m s as p e n sio n and in ­
su ran ce ex p e n d itu re s, oth er p r o b le m s w ould be r a is e d . E xpenditure
ra tio s applying to a ll e m p lo y e e s w ould have doubtful s ig n ifica n ce in
the con text o f the B u re a u , s w o rk in wage ra te s and e a rn in g s and the
u ses to w h ich th ese data a re put.
Som e re sp o n d e n ts o ffe r e d oth er
su g g estion s on c o v e r a g e ,
su ch as h o u rly ra te d w o r k e r s , w o r k e r s
c o v e r e d by c o lle c t iv e b argain in g a g re e m e n ts , o r a ll e m p lo y e e s c o v e r e d
by the F a ir L a b o r Standards A c t .
2 . G r o s s P a y r o ll (I I - A ) . — A s d efin ed , g r o s s p a y r o ll in clu d es
the e x p e n d itu r e s 'fo r a ll item s o f su p p lem en tary re m u n e ra tio n fo r w hich
data a re re q u e ste d , with the e x ce p tio n o f p e n sio n , in s u ra n ce , and
le g a lly re q u ir e d p a y m e n ts0 Since it is e x ce p tio n a lly d ifficu lt to define
such co n ce p ts as ,!stra ig h t-tim e p a y roll*1 o r " p a y r o ll fo r h ou rs w o r k e d 1*
in such a way as to ex clu d e a ll p o s s ib le ty p es o f su p p lem en tary r e ­
m u n era tion , the B u rea u c o n s id e r e d it m o re fe a s ib le to a sk fo r g r o s s
p a y r o lls . If r e q u ir e d , ex p en d itu res fo r the p a y r o ll ite m s c o v e r e d in
the q u estion n a ire cou ld be dedu cted fr o m g r o s s p a y r o lls to obtain a
u n iform na dju sted payroll** fig u r e .
3. T otal M a n -H ou rs (I I -B ). — A s with g r o s s p a y r o ll, tota l
m a n -h o u rs include the h ou rs fo r w h ich ex p en d itu res such as v a ca tio n
pay, h olid a y pay, and s ic k le a v e pay w e re in c u r r e d .
A lthough the
te rm **hours a ctu a lly worked** has b een used in som e p riv a te e x p e n d i­
ture s u r v e y s , the sam e d iffic u ltie s w ould a r is e in defining this t e r m as
in defining s tra ig h t-tim e p a y r o ll.
M o re u n ifo rm r e s u lts co u ld be
obtained by re q u e stin g in fo rm a tio n on total v a ca tio n m a n -h o u rs paid
fo r and taken ( i l l - A - 2 ) ? total h olid a y m a n -h o u rs paid fo r but not
w ork ed (H I -B -2 ), and tota l s ic k -le a v e h ou rs paid fo r (lI I - C - 2 ) ; the
sum o f th ese h ou rs co u ld be dedu cted fr o m total m a n -h o u rs to a r r iv e
at an a d ju sted m a n -h o u rs fig u re w h ich , although not to be d efin ed
as "h o u rs a ctu a lly w orked,** p ro v id e s a b a s is fo r ca lcu la tin g a c e n t s p e r -h o u r ra tio with s p e c ific m eaning in expen ditu re a n a ly s is .
4 . P lant P r a c t ic e s ( i l l ) . — This se ctio n o f the q u e stio n n a ire
w as in clu d ed fo r two r e a s o n s :
( l ) T o p ro v id e a b a s is fo r d etectin g
o m is s io n s o r g r o s s e r r o r s in the expen diture data su pplied by the
re sp o n d e n ts, and (2) to p ro v id e a b a s is fo r explain in g som e o f the
v a ria tio n s am ong co m p a n ie s in expen ditu res fo r a s p e c ific item , o r ,
as in the ca s e o f in su ra n ce and p en sion p la n s, fo r v a ria tio n in
r e co r d k e e p in g p r a c t ic e s . In form ation w as re q u e ste d on actual p r a c ­
t ic e s in 1953 ra th er than on p o lic y .
Knowing that com p an y p o lic y
on paid v a ca tio n s, fo r e x a m p le , was to p ro v id e 1 w eek fo r 1 y e a r
o f s e r v ic e , 2 w eek s fo r 5 y e a r s , and 3 w eek s fo r 15 y e a r s , th row s
c o n s id e r a b ly le s s ligh t on actual ex p en d itu res than knowing how m any
w o r k e r s r e c e iv e d 1 w eek , 2 w e e k s, and 3 w e e k s.



12

The am ount o f in fo rm a tio n re q u e ste d in this se ctio n , h ow ­
e v e r , is su b sta n tia lly le s s than is n eed ed to d e te ct a ll e r r o r s in
re p o rtin g and, e s p e c ia lly , to explain fu lly the v a ria tio n s in e x p e n d i­
ture le v e ls am ong esta b lish m en ts,.
At b e s t, on ly ce r ta in v a r ia b le s
can be a cco u n te d f o r , p a r tic u la r ly in in su ra n ce and p en sion e x p e n d i­
tu res.
The am ount o f in fo rm a tio n r e q u ir e d to ex p la in with r e a s o n ­
able a dequ acy the v a ria tio n s am ong co m p a n ie s in th ese ex p en d itu res
is p ro b a b ly beyond the bounds o f any sin gle survey,,

5.
S e le cte d Item s o f Su pplem entary R em u n era tion ( lV ) o— Th
item s o f su p p lem en tary re m u n e ra tio n s e le c te d fo r study w e r e :
P a id v a ca tio n s
P a id h olid a y s
P a id s ic k le a v e
P r e m iu m pay fo r o v e r tim e — d a ily , w eek ly ,
o r fo r w o rk on s p e c ific days as su ch 3
P r e m iu m pay fo r w o rk on h olid a y s
Shift p re m iu m pay
P e n s io n plans
In su ra n ce , health, and w e lfa re plans
L e g a lly r e q u ir e d p aym en ts— Old A ge and
S u rv iv o r s In su ra n ce, u n em p loym en t c o m ­
p en sa tion , w o r k m e n ^ co m p e n sa tio n , and
State t e m p o r a r y d isa b ility in s u r a n c e .

3
The paym ent o f tim e and o n e -h a lf fo r w o r k in e x c e s s o f 40
h ou rs in the w ork w eek is re q u ir e d by the F a ir L a b o r Standards A c t
fo r w o r k e r s en ga ged in in te rsta te c o m m e r c e o r in the p ro d u ctio n o f
good s fo r in te rsta te c o m m e r c e .
The P u b lic C o n tra cts A ct, w h ich
a p p lies to w o rk on G overn m en t c o n tra cts in e x c e s s o f $ 1 0 ,0 0 0 , a ls o
c a lls for tim e and o n e -h a lf fo r h ou rs in e x c e s s o f 8 p er day.
T hus,
w eek ly o v e r tim e pay, and w h ere a p p lica b le , d aily o v e r tim e pay, m ay
w a rran t c o n s id e r a tio n as nle g a lly re q u ir e d p a y m e n t s .11 H o w e v e r, c o l ­
le c tiv e b a rg ain in g a g re e m e n ts and com p an y p e rs o n n e l p r a c t ic e have
m o d ifie d the d efin ition o f 40 h ou rs o f w o rk as e x p r e s s e d in FL SA by
su bsta n tia lly lib e r a liz in g the d efin ition o f !,h ou rs w o r k e d ” fo r p u rp o se s
o f qu alifyin g fo r o v e rtim e p a y m en ts. F o r e x a m p le , h o lid a y s and e x ­
cu se d lea v e a re w id e ly cou n ted as tim e w ork ed fo r o v e r tim e pay p u r ­
p o s e s . M o r e o v e r , the p r a c t ic e o f paying p re m iu m ra te s fo r a ll h ou rs
w ork ed on Saturdays and Sundays, r e g a r d le s s o f the nu m ber w o rk e d
during the w eek , is b e co m in g m o r e p re v a le n t.
A ssu m in g that it is
d e s ir a b le to a cco u n t fo r the lfle g a lly r e q u ir e d 11 p o rtio n o f o v e r tim e
pay, it w ou ld be n e c e s s a r y , but v irtu a lly im p o s s ib le in a su rv e y o f
this n a tu re, to se p a ra te fr o m the v a rie ty o f o v e r tim e pay p r a c t ic e s
in A m e r ic a n in d u stry that p o rtio n w h ich is b a se d s t r ic t ly on G o v e r n ­
m ent re g u la tio n s .



13
O b v io u s ly , this is a r e s t r ic t e d lis t .
Under the a ssu m p tion
that the s e le c tio n o f ite m s w ou ld have to be lim ite d so as not to o v e r ­
bu rd en the e m p lo y e r re sp o n d e n ts, th ese ite m s w e r e s e le c t e d b e ca u se
they a re am ong the m o s t co m m o n su p p lem en ta ry re m u n e ra tio n ite m s ;
they a ccou n t fo r a la r g e p a rt o f total su p p lem en ta ry e x p e n d itu re s,
h ow ev er such a tota l is d efin ed ; and, with the e x ce p tio n o f le g a lly
r e q u ir e d p a y m e n ts, they a re su b je ct to c o lle c t iv e b a rg a in in g .
The
B u r e a u ^ w age and in d u stria l re la tio n s studies have fo r so m e tim e
c o v e r e d th ese ite m s in te r m s o f com p an y and union p o lic ie s ; h e n ce ,
it se e m e d lo g ic a l to venture into the fie ld o f expen ditu re study in
te r m s o f th ese p r a c t ic e s .
Som e p riv a te su rv e y s have u tiliz e d a lo n g e r lis t o r have
r e lie d upon the e m p lo y e r to a cco u n t fo r a ll su p p lem en ta ry e x p e n d i­
t u r e s , as he w ou ld defin e them ; s o m e , in clu d in g the su rv e y s o f the
C h a m b er o f C o m m e r c e o f the United S tates, e ith e r have om itted
p re m iu m pay o f a ll ty p es fr o m the sco p e o f the p r a c t ic e s stu d ied ,
o r have p re s e n te d p re m iu m pay ex p en d itu res a pa rt fr o m oth er e x p e n d i­
tu res.
Since the te r m nfrin g e b e n e fit s " has b een u se d in oth er s u r ­
v e y s and m ight be a p p lied to this study b e ca u se of the co n v e n ie n ce
o f that e x p r e s s io n , it is im p orta n t to e m p h a siz e that in the s e l e c ­
tion o f th ese ite m s the B ureau did not intend to im p ly that they should
be c o n s id e r e d as "fr in g e b e n e fit s " o r even as " b e n e fit s " to w o r k e r s . 4
F o r this study, the ite m s s e le c te d re p r e s e n t typ es o f com p a n y e x p e n d i­
tu res going to w o r k e r s , o r p aid on th eir b e h a lf, w h ich w ou ld not be
a cco u n te d fo r in s tra ig h t-tim e w age ra te s .
The s e le c te d ite m s p re s e n te d no unusual p r o b le m s o f d e fi­
n ition , e x ce p t fo r the o v e rla p betw een h olid a y pay and p re m iu m pay
fo r h olid a y w o r k .
Since it was n e c e s s a r y to sep a ra te ex p en d itu res
in c u r r e d through the r e co g n itio n o f p aid h o lid a y s and th ose re su ltin g
fr o m w o rk on p aid h o lid a y s , it was a ls o n e c e s s a r y to define h o lid a y
p re m iu m pay ex p en d itu res as the am ount p a id in e x c e s s o f double
tim e (s e e in s tr u c tio n s ).
F o r in s u ra n ce , h ea lth , and w e lfa r e p la n s ,
ra th er than g r o s s ex p en d itu res w e re re q u e ste d (s e e
in s tr u c tio n s ).
F o r this c a t e g o r y and fo r p e n s io n s , c o s t s in c u r r e d b y the e s t a b lis h ­
m en t in the a d m in istra tio n o f th ese plans w e r e e x clu d e d , p a r tly b e ­
ca u se o f the d ifficu lty o f obtaining in fo rm a tio n (this a d m in istra tiv e
w o rk is fre q u e n tly tie d in with oth er p e r s o n n e l fu n ction s) and p a r tly
b e c a u s e oth er p r a c t ic e s studied a ls o entail a d m in istra tiv e c o s t s w h ich
a re not a cco u n te d fo r in the expen ditu re fig u re s r e q u e s te d .
A nu m ber o f m in o r c la s s ific a t io n p r o b le m s a r is in g fr o m the
em p h a sis on ex p en d itu res f o r s e le c te d ite m s ra th e r than f o r a ll su p ­
p lem en ts co m b in e d w e r e ig n o re d in a ch o ic e b etw een attaining a h ig h er
d e g r e e o f p r e c is io n in d efin ition and fu rth e r c o m p lic a tio n o f the
q u e stio n n a ire .
T his w as the c a s e in such in sta n ce s o f ov erla p p in g

4
It shou ld be n oted that the te r m s " f r in g e " and " b e n e fit s "
not ap p ea r in the q u e stio n n a ire and in s tr u c tio n s .



do

14
ex p en d itu re c la s s ific a tio n s as sh ift p re m iu m s in v a ca tio n and holidayp ay and o v e r tim e on h o lid a y s , and in p r o b le m s p e c u lia r to e s ta b ­
lish m e n ts on continuous o p e ra tio n s .
6.
M e a s u r e s to be C om p u ted . — F o r e a ch o f the ite m s
su p p lem en ta ry re m u n e ra tio n c o v e r e d , the fo llo w in g com p u tation s w e r e
planned fo r e a ch esta b lish m en t:

P e r c e n t o f p a y r o ll

Item expen ditu re
G r o s s p a y r o ll

C e n ts -p e r -p a y r o ll hour

Item expen diture
T o ta l m a n -h ou rs

C e n ts -p e r -a d ju s te d -p a y ro ll
h ou r

D o lla r s p e r y e a r p e r
e m p lo y e e

^

^qq

Item e x p e n d it u r e _____
T o ta l m a n -h ou rs (le s s
v a ca tio n , h o lid a y , and
s ic k le a v e h o u rs)
Item expen ditu re________
A v e r a g e n u m b er o f
p ro d u ctio n and re la te d
w o r k e r s fo r the y e a r

F o r p u rp o s e s o f a n a ly s is , c e r ta in addition al co m p u ta tio n s,
b a s e d on the p a y r o ll and plant p r a c t ic e data r e q u e s te d , w e r e planned.
T h e se in clu d ed: A v e r a g e v a ca tio n p e r e m p lo y e e , a v e ra g e v a ca tio n
p e r e m p lo y e e r e c e iv in g p a id v a ca tio n , shift p re m iu m h ou rs as a
p e r c e n t o f tota l p a y r o ll h o u r s , and g r o s s a v e ra g e h o u rly e a rn in g s .
7.
E stim a tin g E x p e n d itu re s. — In a d ep a rtu re fr o m usu al
B u rea u p r a c t ic e , the re sp o n d e n ts, in the a b se n ce o f a ctu a l r e c o r d s ,
w e r e re q u e s te d to estim a te o r ca lcu la te ex p en d itu res fo r p ro d u ctio n
and re la te d w o r k e r s and to in d ica te the b a s is upon w h ich th ese e s t i­
m a te s w e r e m a d e .
T h is w as done fo r tw o r e a s o n s :
(1) T o find out
how co m p a n ie s e stim a te d ex p en d itu res in the a b se n ce o f expen diture
r e c o r d s , and (2) to b e able to id en tify and to evaluate the data w h ich
w e r e e stim a te d . U ndoubtedly, this d e v ice in c r e a s e d the r e s p o n s e to
the su rv e y ; m a n y co m p a n ie s , h o w e v e r , re m a in e d relu cta n t to attem pt
su ch e stim a tio n .
The Sam ple D esig n
The d e c is io n to lim it the study to m a n u factu rin g in d u s tr ie s ,
and to c o v e r a ll m a n u fa ctu rin g in d u strie s (ra th e r than o n e ), w as m a d e
to obtain the m a xim u m in fo rm a tio n co n ce rn in g m e th o d o lo g ic a l p r o b le m s
fo r the m in im u m in v estm en t o f r e s o u r c e s . The in c lu s io n o f nonm anu­
fa ctu rin g in d u strie s w ou ld have sp re a d the s u r v e y to o thinly and w ou ld
have m a de it n e c e s s a r y to c o n s id e r a m ultitude o f p r o b le m s p e c u lia r
to such in d u strie s as r e ta il tra d e and c o n s tr u c tio n .
On the oth er



o

15

hand, lim itin g the s u r v e y to one m a n u fa ctu rin g in d u stry , o r to a
seg m en t o f an in d u stry , w h ile p o s s ib ly p ro d u cin g m o r e c o n c lu s iv e
data, w ou ld le a v e to o la r g e an u n e x p lo re d a r e a .
The sa m p le o f e sta b lish m e n ts to w h ich the q u estion n a ire was
sent w as s e le c t e d to r e p r e s e n t a ll s iz e g rou p s above the m in im u m
s iz e lim it o f 20 e m p lo y e e s set fo r the s u r v e y , a ll g e o g ra p h ic r e g io n s ,
and a ll m a n u fa ctu rin g in d u s tr ie s . Starting w ith a lis t o f e sta b lish m e n ts
fo r e a ch sta te , the m e th o d fo llo w e d w as to s e le c t , on a s y s te m a tic
b a s is , the n u m b er o f e sta b lish m e n ts re q u ir e d s o that e a ch s iz e g rou p
w as r e p r e s e n te d in p r o p o r tio n to its r e la tiv e im p o rta n ce in te r m s o f
em p lo y m e n t, as fo llo w s :
Size o f esta b lish m e n t

Sam pling rate

A ll
E v e r y 2d e sta b lish m e n t
E v e r y 8th esta b lish m e n t
E v e r y 15th esta b lish m e n t
E v e r y 36th e sta b lish m e n t
E v e r y 90th e sta b lish m e n t
E v e r y 360th esta b lish m en t
Under 20 e m p l o y e e s __________— Not c o v e r e d
1 0 .0 0 0 o r m o r e e m p lo y e e s — -

2,500 - 9,999 e m p lo y e e s ——
1.000 - 2,499 e m p l o y e e s ____ 500 - 999 e m p l o y e e s _____ —
250 - 499 e m p lo y e e s .________ —
100 - 249 e m p lo y e e s _________ _
20 - 99 e m p l o y e e s ___________ _

The s iz e o f the sam ple resu ltin g fr o m this d esig n (a p p r o x i­
m a te ly 1, 100 e sta b lish m e n ts) w as such that the rate o f r e s p o n s e , a
k ey p r o b le m to b e stu d ied , co u ld be a s c e r ta in e d fo r the v a rio u s c o m ­
ponent g r o u p s .
In p r in c ip le , if a ll e sta b lish m e n ts w e r e to re tu rn
u sa b le and r e lia b le q u e s tio n n a ire s , e stim a te s o f p r a c t ic e s and ex p e n d i­
tu re le v e ls , re a so n a b ly re p re se n ta tiv e o f m a n u fa ctu rin g a s a w h o le ,
co u ld b e d e r iv e d .
H o w e v e r, sep a ra te e stim a te s fo r ea ch p a r tic u la r
in d u stry w ou ld not be p r a c t ic a b le with a sa m p le o f this s iz e .
Such
a r e s p o n s e , o f c o u r s e , w as not e x p e c te d . 5 What w as h op ed fo r w as
a retu rn o f about 500 u sa b le q u e s tio n n a ire s , b r o a d ly r e p re s e n ta tiv e
o f the s a m p le , w h ich w ou ld p ro v id e an adequate b a s is fo r exam in in g
the p r o b le m s to w h ich the study w as d ir e c te d . The co n c lu s io n s a r r iv e d
at m igh t b e tentative but they w ou ld r e p r e s e n t an advance o v e r p r e s e n t
k n ow led g e.
T his rate o f r e s p o n s e , it w as b e lie v e d , w ou ld be s u f­
fic ie n t to r e fle c t r e la tiv e ly u n com m on situ a tion s. The nature and c h a r ­
a c t e r is t ic s o f the r e sp o n se and n o n re sp o n se a re e x a m in ed la t e r .
The m eth od o f s e le c tio n y ie ld e d a nu m ber o f esta b lish m e n ts
o f the sam e m ultiplant com pan y o r a sin gle e sta b lish m e n t o f a m u lti­
plant com p a n y . P r e s u r v e y d is c u s s io n s with a n u m ber o f m anagem ent

5
The tech n iqu es n o r m a lly u sed in the B u re a u ’ s in d u stry w age
su rv e y s con d u cte d by m ean s o f m a il q u e s tio n n a ire s , in w h ich non ­
resp on d in g e sta b lish m e n ts a re c o v e r e d b y a ctu al plant v is it s , w e r e
not a p p lied to this study b e ca u s e o f the c o s t s .in v o lv e d ahd the lim ite d
o b je c tiv e s o f the study.



16

represen ta tives had pointed to the p roba bility that m any multiplant
com panies w ould have exceptional difficu lty in providing this type o f
in form ation , p a rticu la rly on insurance and pension expen ditu res, fo r
a sin gle plant o r an a rb itra ry com bination o f plants.
Allow ing such
com panies the option o f providing inform ation fo r all plants com bined,
it was b e lie v e d , would facilitate re sp o n se .
In the instance o f a s e ­
lection o f a 8ingle plant, this was a ccom p lish ed by the follow ing in ­
stru ction in the b ox heading of the questionnaire:
In the ca se of m ultiplant com p an ies, a rep ort
cov erin g the plant identified on the accom panying
le tte r would be p r e fe r r e d . H ow ever, m ultiplant c o m ­
panies m ay rep ort for all plants if r e co r d s are m ain ­
tained on that b a s is . W hichever alternative is s e ­
le c te d , it is essen tial that all o f the inform ation
supplied relate to the sam e unit.
When m o re than one plant o f a com pany was se le cte d , a fly e r
was attached to the questionnaire with the follow ing instruction:
A separate rep ort fo r each plant is p r e fe r r e d .
Ify ou r supplem entary rem uneration p rog ra m s and
p r a c t ic e s , as w e lla s the types o f r e co r d s kept, are the
sam e in each plant, and i f you fe e l that a single rep ort
fo r one plant would be represen tative of your com pany,
then such a rep ort fo r one plant m ay be furnished.
If expenditure r e co r d s on supplem entary em ployee
rem u m eration item s are kept on a com panyw ide basis,
and i f you p r e fe r to m ake one rep ort coverin g all
plants o f the com pany, such a rep ort w ill be a ccep ta b le.
The questionnaires w ere m ailed in A p ril 1954, which allow ed
am ple tim e fo r com panies to have com p leted their norm al su m m a ri­
zation or review of expenditures fo r the calendar yea r 1953.
In a ccord a n ce with usual Bureau p ra ctice in m ail wage su r­
v e y s , a selected group o f key com panies w ere visited by Bureau r e p ­
resen tatives fo r the purpose o f putting the questionnaire in the hands
of the appropriate o ffic ia l, explaining the background and purpose o f
the study, and working out arrangem ents fo r sin gle-plan t or m u lti­
plant reportin g.
One followup letter was sent to all nonrespondents.
P re­
lim in a ry editing of the returns n ecessitated a num ber o f requests fo r
cla rifica tio n o f data or for om itted data. Unfortunately, due to time
and staff lim itation s, this could not be done in all instances of o m is ­
sions o r o f apparent d isc r e p a n cie s , as the follow ing analysis w ill show.
The findings o f the survey are d iscu sse d in this rep ort under
three m ain headings: C h a ra cteristics of the R espon se; E stablishm ent
R e co rd s and R eporting P r a c tic e s ; and F a ctors A ffecting E xpenditure
L e v e ls .



17

C h a r a c t e r is t ic s o f the R e s p o n s e
The fe a s ib ilit y o f a m a il q u estion n a ire s u r v e y o f this type
should be evalu ated with r e s p e c t to:
( l ) R ate o f r e s p o n s e , o r the
p r o p o r tio n o f the co m p a n ie s s o lic it e d fo r co o p e r a tio n w h ich retu rn ed
u sa b le q u e stio n n a ire s; (2) b a la n ce , o r the stru ctu re o f the r e s p o n s e
a s co m p a r e d with the stru ctu re o f the o r ig in a l s a m p le , and (3) the
r e lia b ilit y o f the data a s to the m anner in w hich q u estion s w e re in ­
te r p r e te d , the a b ility o f the resp on d en ts to p ro v id e the type o f in f o r ­
m ation re q u e ste d , and the c a r e e x e r c is e d in com p u tin g o r co m p ilin g
the data. B e ca u se no fix e d standards e x is t a g a in st w hich th ese f a c ­
to rs can be m e a s u re d in a study o f this ty p e, eva lu a tion s m u st n e c ­
e s s a r ily be ten ta tive.
R ate o f R e sp o n se
The su r v e y y ie ld e d a r e sp o n se rate o f 50 p e r c e n t , o r 550
retu rn s out of 1, 105 solici/ted .
The rate o f r e s p o n s e h e r e is m e a s ­
u red by the u sa b le q u e stio n n a ire s r e c e iv e d . A u sa b le q u estion n a ire
was not n e c e s s a r ily a co m p le te o n e .
The le tte r a cco m p a n y in g the
q u e stio n n a ire , and the b o x heading on the q u e stio n n a ire it s e lf, u rg ed
com p a n ies to a n sw e r as m any q u estion s as p o s s ib le and to in d ica te
the re a so n s fo r th e ir in a b ility to a n sw er o th e r q u e s tio n s . M any c o m ­
pan ies thus retu rn ed p a r tia lly co m p le te d q u e s tio n n a ir e s .
T hese r e ­
turns w e re c la s s ifie d as u sa b le if the b a s ic data on p a y r o lls , m a n ­
h o u rs , and e m p lo y m e n t w ere supplied and if S e ctio n IV , dealin g with
r e c o r d s and ex p en d itu res fo r s e le c te d it e m s , was a n sw e re d at le a s t
in p a r t.
A n u m b er o f q u e stio n n a ire s w e re e lim in a te d b e ca u s e o f
m u ltip le d is c r e p a n c ie s o r o m is s io n s in the data re q u e ste d , w h ich in ­
d ica ted in a b ility on the p a rt o f the re sp o n d e n t to supply r e lia b le
in fo r m a tio n .
The rate o f retu rn b y in d u stry grou p (table l) r e v e a le d r e ­
la tiv e ly lo w r e s p o n s e le v e ls fo r som e g ro u p s , n ota b ly th ose in w hich
s m a ll e sta b lish m e n ts p re d o m in a te , e . g . , a p p a re l m a n u fa ctu re rs (21
p e rce n t) and lu m b e r and w ood p ro d u cts co m p a n ie s (29 p e r c e n t ). V a r ­
ia tion s am ong s p e c ific in d u strie s w ithin in d u stry g rou p s w e re o f
c o u r s e m uch w id e r than these data sh ow . H o w e v e r, the s ig n ifica n ce
o f the d iffe r e n c e s in re s p o n s e ra te s am ong in d u s tr ie s , in s o fa r as an
a ll-m a n u fa ctu rin g s u r v e y is c o n c e r n e d , is c e n te r e d in the tota ls fo r

6
T o fa c ilita te the a n a ly sis o f r e s p o n s e ra te s and the su b sta n ­
tive data r e p o r te d , the m anufacturin g in d u strie s c o v e r e d w e r e d iv id ­
ed
into th ree g r o u p s , in a c c o r d a n c e with in d u stry g r o s s a v e ra g e
h o u rly ea rn in gs data co m p ile d b y the B u rea u fo r the y e a r 1953. The
grou p in gs w e r e e sta b lish e d , a r b it r a r ily , as fo llo w s :
G roup I— le s s
than $ 1 .6 5 an h ou r; G roup II— $ 1 .6 5 to $ 1 .8 9 ; G rou p III— $ 1 .9 0 and
over.
F o r co n v e n ie n ce in d is c u s s io n , the te rm s "lo w w a g e ,1* " m e ­
dium w a g e ," and "high w a g e " grou p s w ill be u se d .



18

the three wage g rou p in g s into w h ich the in d u strie s w e r e c l a s s i f i e d . 6
The a v e ra g e rate o f retu rn fo r the lo w -w a g e grou p am ounted to 42
p e r c e n t a s a g a in st 54 and 55 p e r c e n t , r e s p e c t iv e ly , fo r the m e d iu m and h ig h -w a g e g ro u p s. The q u estion o f w h eth er this d iffe r e n tia l r e ­
turn has an a p p re cia b le e ffe c t on a v e ra g e exp en d itu re le v e ls .w ill be
ex a m in ed la t e r .
On a re g io n a l b a s is , re tu rn s lo w e r than the a v e ra g e w e re
r e c e iv e d fr o m co m p a n ie s in the South, c o m p r is in g the South A tla n tic ,
E a s t South C e n tra l, and W est South C en tra l States (table 2 ). On the
w h ole, v a ria tio n s in r e s p o n s e am ong re g io n s w e re not la r g e . H ow ­
e v e r , a r e la t iv e ly lo w rate o f re s p o n s e fr o m co m p a n ie s with plants
in m o r e than one re g io n was e n co u n te re d . T h is a p p e a re d to be due
to the d iffic u ltie s o f re p o rtin g in m ultiplant situ ation s and (p erh a ps
a re la te d fa c to r ) to the u n w illin gn ess o f s e v e r a l la rg e m u ltip lan t c o m ­
p an ies to p a r tic ip a te in the s u r v e y .
A lthough the lo w r e s p o n s e ra te (25 p e rce n t) fo r e s t a b lis h ­
m ents em p loy in g fe w e r than 100 p ro d u ctio n w o r k e r s , as show n m
table 3, m ay r e fle c t the in a b ility o f s m a ll co m p a n ie s to r e p o r t in f o r ­
m ation o f the type re q u e ste d , it c o n fo r m s to the usual e x p e r ie n c e o f
a g e n cie s con d u ctin g m a il q u estion n a ire s u r v e y s . S ig n ifica n tly , h o w ­
e v e r , the r e s p o n s e fr o m plants em p loy in g b etw een 100 and 500 w o r k ­
e r s (50 p e rce n t) w as c lo s e to the a v e ra g e fo r the la r g e r e sta b lis h m e n ts .

M ultiplant R ep ortin g
M ultiplant co m p a n ie s resp on d in g to the q u estion n a ire had the
op tion o f p ro v id in g in fo rm a tio n fo r a sin gle plant (se p a ra te r e p o r ts
i f m o r e than one plant w as s e le c te d in the sa m p le) o r o f p ro v id in g
data fo r a co m b in a tio n o f plants o r fo r a ll p la n ts.
A lthough it was
not p o s s ib le to id en tify a ll o f the e sta b lish m e n ts in the sa m p le w h ich
w e re p a rt o f a m ultiplant o rg a n iz a tio n , it w ould a pp ea r fr o m the r e ­
turns that m ultiplant co m p a n ie s p r e fe r r e d co m b in a tio n re p o rtin g to
p rov id in g data f o r s e le c te d individual p la n ts. O f the 550 u sa b le q u e s ­
tio n n a ir e s , 96 c o v e r e d m o r e than 1 plant— 3 7 c o v e r e d 2 p la n ts, 38
c o v e r e d fr o m 3 to 10 p la n ts, 9 c o v e r e d m o r e than 10 p la n ts, and 12
c o v e r e d an u n rep orted quantity.
O nly 16 m ultiunit co m p a n ie s f u r ­
n ish ed sep a ra te plant r e p o r t s — 13 p ro v id e d 2 r e p o r t s , and 3 p r o v id ­
ed 3 r e p o r t s .7

7
A s a co n se q u e n ce o f m ultiplant o r com p an yw id e re p o rtin g in
a substantial n u m b er o f c a s e s , the c o v e r a g e o f the su r v e y can be
d e s c r ib e d p r e c is e ly n eith er in te rm s o f e sta b lish m e n ts n o r o f c o m ­
p a n ie s.
S tr ic tly sp ea k in g, the 550 sch e d u le s r e p r e s e n t 550 r e p o r t ­
ing units (w hether com p a n y o r e sta b lish m e n t).
H o w e v e r, s in ce the
bulk o f the retu rn s r e p r e s e n t e s ta b lis h m e n ts , that te rm is u se d in
this r e p o r t fo r sake o f c o n v e n ie n c e .



TABLE

19

1 . ---- R a te o f r e t u r n o f u s a b l e q u e s t i o n n a i r e s b y i n d u s t r y g r o u p
U s a b le r e tu r n s

N um ber
s o lic ite d

N um ber

P ercen t

1, 105

550

50

G r o u p I ------------------------------------------------------------------------------- _
F o o d a n d k i n d r e d p r o d u c t s _______________________ _
T o b a c c o ______ ____ _____ __________ ___ _____ ____________
T e x t i l e s _ _ _____________________________________________
A p p a r e l ___________ _______________________________________
L u m b e r a n d w o o d p r o d u c t s ___ _ ______________ _
F u r n it u r e a n d f i x t u r e s ____ ____ ________ ______ _
L e a t h e r a n d l e a t h e r p r o d u c t s _______ _____________ _
M i s c e l l a n e o u s m a n u f a c t u r i n g _______________________

426
96
8
98
85
42
28
28
41

180
44
6
51
18
12
15
16
18

42
46
75
52
21
29
54
57
44

G r o u p I I _________ _______________ ____ ______________ ________
P a p e r and a llie d p r o d u c ts
____ ____________________
C h e m i c a l s a n d a l l i e d p r o d u c t s ______________________
S t o n e , c l a y , a n d g l a s s p r o d u c t s ____________________
F a b r i c a t e d m e t a l p r o d u c t s _________________________
E l e c t r i c a l e q u i p m e n t __ __ _ --------------------------------P r o f e s s i o n a l a n d s c i e n t i f i c e q u i p m e n t ____________

318
41
52
48
80
71
26

171
29
27
25
41
35
14

54
71
52
52
51
49
54

G r o u p III __ ____________________ __________________________
O r d n a n c e a n d a c c e s s o r i e s ___________________________
P r i n t in g a n d p u b l i s h i n g _______________________________
P e t r o l e u m a n d c o a l p r o d u c t s _______________________
R u b b e r p r o d u c t s ________________ _______ ____________ _
P r i m a r y m e t a l i n d u s t r i e s ______ ____ ____________
M a c h i n e r y ( e x c e p t e l e c t r i c a l ) __________ ___________
T r a n s p o r t a t i o n e q u i p m e n t __ ------------------------------------

361
9
45
19
12
74
120
82

19 9
5
16
6
6
50
68
48

55
56
36
32
50
68
57
59

A ll in d u s t r ie s

1

F or

in d u s t r y g r o u p in g s ,

see

fo o tn o te

6,

page

17.

T A B L E 2 . — R a te o f r e tu r n o f u s a b le q u e s t io n n a ir e s b y r e g io n

R e g io n

U s a b l e :r e t u r n s

N um ber
s o lic ite d

A l l r e g i o n s ------------------------------------------

1, 105

550

50

------------------------------ _
I n t e r r e g io n a l
N e w E n g l a n d _________________________
M id d le A t l a n t i c ______________________
E a s t N o r t h C e n t r a l _____________ _
W e s t N o r t h C e n t r a l ---------- —
S o u t h A t l a n t i c -----------------------------------E a s t S o u th C e n t r a l --------------------------W e s t S o u t h C e n t r a l -------------------- _
M o u n t a in __________________________
P a c i f i c ........ ................... ................. ............

66
115
268
307
69
108
49
43
8
72

23
59
13 6
168
39
48
23
16
3
35

35
51
51
55
57
44
47
37
38
49

T A B L E 3 . ---- R a t e o f r e t u r n o f u s a b l e q u e s t i o n n a i r e s

S i z e o f u n it c o v e r e d

A l l u n its

-----------------------------

2 0 t o 99 e m p l o y e e s
--------------------------------------100 t o 4 9 9 e m p l o y e e s ---------------------------------------5 0 0 t o 99 9 e m p l o y e e s ----------- ----------- -------------------1 , 0 0 0 to 4 , 9 9 9 e m p l o y e e s -----------------------”
5 , 0 0 0 e m p l o y e e s a n d o v e r -------------------------------------




P ercen t

N um ber

b y s i z e o f u n it c o v e r e d
U s a b le re tu rn s

N um ber
s o lic ite d

N um ber

1 ,1 0 5

5 50

50

166
315
1 78
3 36
110

42
159
80
205
64

25
50
45
61
58

P ercen t

20

M ultiplant re p o rtin g was e s p e c ia lly p red om in a n t in the c h e m ­
ic a ls and p r im a r y m e ta ls in d u s tr ie s . In n u m ber o f w o r k e r s c o v e r e d ,
the m ultiplant r e p o r ts a cco u n te d f o r a d is p ro p o r tio n a te sh a re o f the
total r e s p o n s e . T h is fa c t o r am ong o th e rs p r e c lu d e d the p re se n ta tio n
o f data in te rm s o f nu m ber o f w o r k e r s .
O ther C h a r a c t e r is t ic s o f the R e sp o n se
R equ estin g data fo r the ca le n d a r y e a r a p p e a re d to p r e s e n t
r e la t iv e ly m in o r d if f ic u lt ie s .8 O nly seven r e p o r ts c o v e r e d a f is c a l
p e r io d d iffe rin g fr o m the ca le n d a r y e a r .
A few r e p o r ts c o v e r e d a group of w o r k e r s oth er than p r o ­
d uction and re la te d w o r k e r s .
O f th e se , the m o s t co m m o n d eviation
was the c o v e r a g e o f a ll e m p lo y e e s , fo llo w e d b y “ h o u rly e m p lo y e e s 11
o n ly . T h ese q u e s tio n n a ire s , h o w e v e r , a p p e a re d to be in te rn a lly c o n ­
sisten t with r e s p e c t to the in fo rm a tio n r e p o r te d and w e re t h e r e fo r e
in clu d ed am ong the usable q u e s tio n n a ire s .
The a c c u r a c y and r e lia b ilit y o f the in fo rm a tio n su p p lied a re
d ifficu lt fa c t o r s to a s s e s s , as w ill be s t r e s s e d at v a rio u s points in
this r e p o r t . T h is was undoubtedly a co m p le x q u estion n a ire to m any
co m p a n ie s; p ro b a b ly a la r g e p a rt o f the sa m p le had n e v e r b e fo r e r e ­
sponded to such an in q u iry co n ce rn in g ex p en d itu res fo r su p p lem en ta ry
re m u n e ra tio n .
M any r e s p o n s e s a p p e a re d to in d ica te that the c o o p ­
era tin g com p a n y n o r m a lly did not co m p ile p r e c is e expen ditu re data
fo r its own p u r p o s e s .
In a la rg e s e n s e , t h e r e fo r e , the su rv e y was
an e x p e rim e n ta l on e , both to the B u reau and to the re sp o n d e n ts, and
m u st be evaluated in that l i g h t .9
The q u e stio n n a ire s w e re exa m in ed fo r in a d verten t o m is s io n s
and fo r ob v iou s d is c r e p a n c ie s 0 O m is s io n o f ex pen ditu re data fo r
le g a lly r e q u ir e d p aym en ts w a s, o f c o u r s e , r e a d ily d e te cte d ; in a d v e r t­
ent o m is s io n o f oth er expen ditu re data b e ca m e o b v iou s when the
p r a c t ic e was re p o r te d to be in e ffe c t .
D is c r e p a n c ie s in p a y r o ll,
m a n -h o u r, and em p lo y m e n t data, and in p r a c t ic e s and expen ditu re
le v e ls , w ere le s s apparent and co u ld be r e c o g n iz e d on ly when the
e r r o r a p p e a re d to be la r g e .
In g e n e ra l, o v e rsta te m e n t was m o re

8 The q u estion n a ire re q u e ste d data fo r the ca le n d a r y e a r 1953.
H o w e v e r, if data had to be com p u ted on a n oth er b a s is , resp on d en ts
w e re a sk ed to w rite in the p e r io d c o v e r e d b y the r e p o r t . R e fe r e n c e
to ce rta in p r o b le m s in ca len d a r y ea r re p o rtin g w ill be m ade la te r in
this r e p o r t in co n n e ctio n with le g a lly re q u ir e d p a y m e n ts.
9 In le tte r s a cco m p a n y in g q u e s tio n n a ire s , so m e co m p a n ie s e x ­
p r e s s e d c o n c e r n about th eir own la ck o f e x a ct data. One la rg e m u l­
tiplant com p a n y re q u e ste d a n u m ber o f blank fo r m s in o r d e r to
con d u ct its own s u r v e y am ong its m any p la n ts.
O ther co m p a n ie s
e x p r e s s e d an in te r e s t in a p p ro p ria te a ccou n tin g p r o c e d u r e s .



21

e a s ily d e te c te d than u n d ersta tem en t.
A bout 115 le t t e r s 10 seek in g
c la r ific a t io n o f data o r req u estin g om itted fig u r e s w e re sent to r e ­
spon d en ts; a ll but a few w e r e a n sw e re d s a t is fa c t o r ily . P ro b a b ly b e ­
ca u se o m is s io n s o r d is c r e p a n c ie s in le g a lly re q u ir e d b en efits w e re
m o st re a d ily d e te cte d , th ese w e re m o st freq u en tly m en tion ed in the
su p p lem en tary le t t e r s o f in q u iry , m o st of w hich c o v e r e d m o r e than
one ite m .
O ther lead in g s u b je cts of in qu iry w e r e (in o r d e r o f f r e ­
quen cy) in su ra n ce ex p en d itu res, shift p r e m iu m s , p e n sio n ex p e n d itu re s,
and h olid a y pay e x p e n d itu re s. A few c le a r ly q u estion a b le e n trie s on
p re m iu m o v e r tim e ex p en d itu res w e r e la te r e x clu d e d fr o m the tabu­
la ted data. 11
The F in a l Sam ple
The 550 u sa b le q u e stio n n a ire s, d is c u s s e d a b ove with r e ­
sp ect to in d u stry , re g io n , s iz e o f esta b lish m en t, and m ultiplant c o v ­
e r a g e , con stitu ted the sam ple upon w h ich a n a ly sis w as b a se d . It is
im porta n t to exam in e the r e p re s e n ta tiv e n e s s o f th is sam ple in r e la ­
tion to a q u estion p ertin en t to a ll expen ditu re s u r v e y s: W ere e s ta b ­
lish m en ts with h ig h e r w a g e s, m o r e su p p lem en tary p r a c t ic e s , m o re
lib e r a l p r a c t ic e s , and t h e r e fo r e la r g e r ex p en d itu res on supplem entary
rem u n era tio n m o r e lik e ly than oth er e sta b lish m e n ts to resp on d to
this que s tio n n a ire ?
T h e re a re tw o w ays o f a p p roa ch in g th is is s u e : ( l ) By v is it ­
ing the n on resp on d in g co m p a n ie s to obtain su fficie n t in fo rm a tio n to
d eterm in e w heth er the re s p o n s e is b ia se d and in what m an n er; o r
(2) to co m p a r e the c h a r a c t e r is t ic s o f the fin al sam ple with what is
known about m an u factu rin g as a w h ole. Sin ce the r e s o u r c e s a v a ila ­
ble fo r this p ilo t study w e r e lim ite d , the se co n d a lte rn a tiv e w as
u sed .
If the e x iste n ce o f c o lle c t iv e b a rg a in in g , in it s e lf, is an in ­
d ica tio n o f the ty p e s and le v e ls of ex p en d itu res, the sa m p le a p p ea rs
to be adequate in th is r e g a r d . A p p ro x im a te ly 75 p e rce n t o f the 550
esta b lish m e n ts c o v e r e d re p o rte d c o lle c t iv e b a rgain in g a g re e m e n ts in
e ffe c t fo r a m a jo r ity o f p ro d u ctio n and re la te d w o r k e r s .
A corre­
sponding p r o p o r tio n c o v e r in g m anufacturin g e sta b lish m e n ts in 17 m a jo r
la b o r m a rk et a r e a s re ce n tly su rv e y e d by the B u rea u w as 74 p e r c e n t. 12
10 One o f the m a jo r re a s o n s fo r sending th ese le t t e r s w as to
find out if the co m p a n ie s cou ld supply the m is s in g data o r cou ld e x ­
p la in the d is c r e p a n c ie s . T h is p r a c t ic e n e c e s s a r ily had to be r e s t r i c ­
ted to ob v io u s e r r o r s and by no m eans a ssu m e d r e lia b ility o f data
in oth er q u e stio n n a ire s.
11 D esp ite in s tru ctio n s to the c o n tra ry , a few re p o rtin g c o m ­
p a n ies a p p a ren tly in clu d ed a ll paym en ts fo r o v e r tim e h o u rs in stead of
only the p re m iu m p a rt of such p a y m en ts.
12 See E xtent o f C o lle c t iv e A g re e m e n ts in 17 L a b o r M a rk ets,
19 53 -5 4 , M onthly L a b o r R e v ie w , January 1955.



22

The m o s t r e c e n t B ureau estim a te o f the p ro p o r tio n o f m anufacturin g
plant em p loy m en t c o v e r e d by c o lle c t iv e b a rg ain in g a g re e m e n ts , b a se d
on 1946 data, was a p p ro x im a te ly 70 p e r c e n t .1* A lthough these 3
ra tio s a re not d ir e c t ly co m p a ra b le fo r a nu m ber o f r e a s o n s , it w ould
a p p ea r that the p r o p o r tio n o f o rg a n iz e d e sta b lish m e n ts re p re s e n te d
in this sa m p le d oes not deviate a p p r e c ia b ly fr o m the l,tr u e n p r o ­
p o rtio n ; at the m o s t it w ould a pp ear that u n ion ized fir m s a re slig h tly
o v e rrep resen ted .
A s to the p re v a le n ce o f individual b e n e fits , no sig n ifica n t
b ia s is r e v e a le d in the final sa m p le . A ll e sta b lish m e n ts, o f c o u r s e ,
w e re o b lig a te d to m ake the le g a lly re q u ir e d p a y m e n ts. A ll e s t a b lis h ­
m e n ts, p re s u m a b ly , w ere c o v e r e d b y the F a ir L a b o r Standards A c t
p r o v is io n s on the paym ent o f p re m iu m o v e r tim e r a t e s .
A su b sta n ­
tia l p r o p o r tio n o f the esta b lish m e n ts r e p o rte d o v e rtim e h ou rs w ork ed
during the c o u r s e o f the y e a r . An a n a ly sis o f the p re v a le n ce o f v o l ­
u n tary o r n eg otia ted p r a c t ic e s (paid v a ca tio n s , h o lid a y s, s ic k le a v e ,
sh ift p r e m iu m s , in s u ra n ce , and p en sion p la n s), b a se d on the 550
q u e s tio n n a ire s , in d ica te d that, on the w h ole, esta b lish m e n ts in the
lo w -w a g e grou p and esta b lish m en ts in the South tended to have fe w e r
such p r a c t ic e s in e ffe c t . The p re v a le n ce o f these p r a c t ic e s was a lso
g r e a te r in the la r g e r e s t a b lis h m e n t s .14 T h u s, to the extent that lo w w age e sta b lish m e n ts, s m a ll e sta b lish m e n ts, and esta b lish m en ts in the
South a re u n d e rre p re s e n te d in the sam ple (ta b les 1, Z, and 3), there
is a p resu m p tio n of an upw ard b ia s .
H o w e v e r, the sligh t e ffe c t o f a bias o f this type can be d e m ­
on stra ted b y co n s id e r a tio n o f an e x tre m e c a s e ----the e ffe c t u n d e r r e p ­
resen ta tion o f sm a ll esta b lish m en ts has on the o v e r a ll p re v a le n ce
o f p en sion p la n s.
Only 17 p e rce n t o f the e sta b lish m e n ts with fe w e r
than 100 w o r k e rs re p o rte d a p en sion plan in e ffe c t , as co m p a r e d with
84 p e rce n t o f the e sta b lish m e n ts with 5 ,0 0 0 o r m o r e w o r k e r s ; fo r
a ll e sta b lish m e n ts co m b in e d , the p e rce n ta g e am ounted to 5 6 .4 . A p ­
plying a w eight o f 2 to the sm a ll esta b lish m e n ts (o r a ssu m in g a
r e s p o n s e tw ice as la rg e as actual) would re d u ce the p ro p o r tio n o f
e sta b lish m e n ts with p en sion plans to 53. 5 p e r c e n t , a d rop o f a p p r o x ­
im a te ly 3 p e rce n ta g e p o in t s .15 If the p u rp o se o f the su rv e y w ere to
com p u te a v e ra g e c e n t s -p e r -h o u r expen ditu res co v e r in g a ll e s t a b lis h ­
m ents in the sa m p le , the d iffe r e n c e b etw een the a ctu al retu rn s and
retu rn s a d ju sted inx this m an n er to a cco u n t fo r the u n d e r r e p r e s e n ta ­
tion o f s m a ll esta b lish m e n ts w ould be in the n eig h b o rh o o d o f o n e fifth o f a ce n t, a ssu m in g equivalent le v e ls o f p en sion expen ditu res
fo r s m a ll and la rg e e sta b lish m e n ts.

13 See E xtent o f C o lle c tiv e B arga in in g and Union R e co g n itio n ,
BLS B u ll. 909.
14 In d u stry , re g io n , s iz e o f e sta b lish m e n t, and un ion ization a r e ,
o f c o u r s e , in te r r e la te d f a c t o r s .
15 On the oth er hand, the adoption o f a cu to ff point fo r the s u r ­
v e y o f 100 w o r k e r s w ould in c r e a s e the p r o p o r tio n to 59. 6 p e r c e n t.
1946,




23

F o r the re s p o n s e as a w h ole, e sta b lish m e n ts in the fo llo w in g
p ro p o r tio n s r e p o r te d su p p lem en ta ry p r a c t ic e s in e ffe c t:
P a id v a c a ­
tions 99 p e r c e n t; paid h olid a y s 90 p e rce n t; s ic k le a v e 19 p e r c e n t;
p en sion plans 56 p e r c e n t; and so m e type o f in su ra n ce 93 p e r c e n t.
T h ese fig u r e s o ffe r no e v id e n ce o f sig n ifica n t \kpward b ia s on the
b a s is o f su ch in fo rm a tio n as is a v a ila b le co n c e rn in g the p r e v a le n ce
o f th ese p r a c t ic e s in m an u factu rin g in d u s t r ie s .16 T h is is not to sa y
that these p ro p o r tio n s a re tru ly r e fle c t iv e o f the u n iv e rse o f m a n u ­
fa ctu rin g e sta b lish m e n ts em p loyin g 20 o r m o r e w o r k e r s ; the qu estion
c o n s id e r e d h e r e , as p r e v io u s ly n oted , is s im p ly w hether the r e ­
sp on se is sig n ifica n tly o v e rw e ig h te d by e sta b lish m e n ts with e x ten siv e
su p p lem en ta ry b e n e fits .
The n e c e s s a r ily q u a lifie d a n sw er is that if
th ere is an upw ard bias in p r a c t ic e s , it is not s u ffic ie n tly la rg e to
have an a p p re cia b le e ffe c t on the type o f a g grega te data p re se n te d
in this r e p o r t .
S in ce the le v e l o f w ages is a fa c t o r a ffe ctin g expen ditu re
le v e ls fo r so m e it e m s , an o v e rsta te m e n t o f expen ditu res in cents
p e r hour m ight be in fe r r e d if the re s p o n s e w e re w eigh ted o v e r w h e lm ­
in g ly by the h ig h -w a ge esta b lish m e n ts in ea ch in d u stry .
By c o m ­
puting g r o s s a v e ra g e h ou rly earn in gs f o r ea ch q u estion n a ire (g r o s s
p a y r o lls d iv id ed b y total m a n -h o u rs ) and by a v era gin g these fig u r e s
fo r each in d u stry and fo r all q u e s tio n n a ire s , a co m b in e d a v era g e o f
$ 1 .8 3 was ob tain ed .
The B u r e a u 's s e r ie s on g r o s s a v e ra g e h ou rly
ea rn in gs sh ow ed an a v e ra g e o f $ 1 .7 7 f o r all m anufacturin g in 1953,
o r a d iffe r e n c e o f a p p ro x im a te ly 3 p e r c e n t.
The sa m p le a v e ra g e s
e x ce e d e d the B u r e a u 's b a s ic fig u r e s fo r 11 in d u stry grou p s and w e re
lo w e r fo r 5.
T h ese a v e ra g e s a re com p u ted in d iffe re n t w a y s; a s ­
su m in g, h o w e v e r , that the a v e ra g e s a re c o m p a r a b le , an o v e r r e p r e ­
sen tation o f h ig h -w a ge e sta b lish m e n ts w ould be in d ica te d .
H ere,
again , the d iffe r e n c e is s m a ll; and as it b e c o m e s fu rth e r diluted in
the ex pen ditu re ra tio s com p u ted , it m ay w ell be c o n s id e r e d n e g lig ib le .
Although the above a n a ly sis in d ica tes that this su rv e y r e ­
sp on se is not s ig n ifica n tly b ia s e d in the d ir e c tio n o f h ig h -w a ge fir m s
and fir m s with e x ce p tio n a l b e n e fit p r o g r a m s , such a p ro b a b ility shou ld
not be d isco u n te d fo r oth er sa m p le s o r fo r su b grou pin gs am ong the
550 q u estio n n a ire s c o v e r e d in this r e p o r t .
The d e s ir a b ilit y o f e x ­
clu din g e sta b lish m e n ts with fe w e r than 100 e m p lo y e e s fr o m e x p e n d i­
ture su r v e y s is im m e d ia te ly p re se n te d as a p r a c t ic e m e ritin g s e r io u s
c o n s id e r a tio n .
The N on re sp o n se
As m en tion ed p r e v io u s ly , the n o n re sp o n se was not s u r v e y e d ,
hen ce its c h a r a c t e r is t ic s cannot be d e f i n it e l y d e te rm in e d . B y i n f e r ­
en ce and by a ssu m in g that the o rig in a l sa m p le was truly r e p r e s e n t a ­
tive o f a ll m a n u fa ctu rin g, the n o n re sp o n se co u ld be p re su m e d to have

16
C h ie fly , the B u r ecom
a u 'sm u n ity wage su rv e y s and stu d ies
o f union a g re e m e n t p r o v is io n s .



24

c h a r a c t e r is t ic s w hich a re the in v e r s e o f th ose noted a bove fo r the r e ­
sp o n se — that i s , a h ig h er p r o p o r tio n o f s m a ll e sta b lish m e n ts, p erh aps
som ew h at le s s u n ion iza tion , p erh a p s fe w e r b e n e fits , p erh a ps a lo w e r
a v e ra g e wage le v e l (a ll o f w hich a re re la te d f a c t o r s ) .
The n o n r e ­
sp o n s e , h o w e v e r , is c o m p r is e d o f two p a rts ( l) the e sta b lish m e n ts
w hich fa ile d to re sp o n d at a ll to the B u re a u 1s r e q u e s ts , and (2) the
esta b lish m en ts w hich su bm itted unusable q u e stio n n a ire s o r le tte r s e x ­
plaining why they co u ld not o r w ould not p a rticip a te in the s u r v e y .
O v er 170 r e p lie s o f the la tte r type w ere r e c e iv e d ; an a n a ly sis o f
th ese r e p lie s should shed som e lig h t on the m a tte r o f n o n r e s p o n s e . 17
C le a r ly , an im p orta n t ca u se o f n o n re sp o n se o r inadequate
r e s p o n s e w as the la ck o f com p a n y r e c o r d s o r the am ount o f tim e r e ­
q u ired to su m m a riz e a v a ila b le r e c o r d s .
A s one p e rs o n n e l d ir e c t o r
w ro te :
The am ount o f tim e in v olv ed that w ould be r e ­
q u ire d to give you su fficie n t in fo rm a tio n . . . w ould
be e x tr e m e ly dem anding upon u s . Our r e c o r d s a re
not kept in a m anner so that the b a s ic in fo rm a tio n
that you a re req u estin g w ould be im m e d ia te ly a v a ila ­
b le . . . .
In o r d e r to gath er this in fo rm a tio n fo r
you w ould in v o lv e , in add ition to m y own tim e and
m e m b e r s o f m y d ep a rtm en t, so m e tim e spent b y the
c h ie f accou n ta n t, c h ie f p a y r o ll c le r k , c h ie f t im e ­
k e e p e r and m e m b e rs o f th eir d e p a rtm e n ts.
An o ffic ia l o f a la r g e m ultiplant com p a n y stated:
O ur m ain p r o b le m stem s fr o m the la ck o f su m ­
m a r ie s o r brea k d ow n s on the s p e c ific ite m s on w hich
in fo rm a tio n is d e s ir e d . In m o st in s ta n c e s , it would
m ean cu llin g the r e c o r d s fo r 1953 to d e v e lo p the
data, w hich w ould be a long tediou s ta sk . In oth er
in s ta n c e s , no attem pt is m ade to k eep a sep a ra te
r e c o r d o f the expen diture in q u e stio n .
The q u e s ­
tion s on p e n sio n and in su ra n ce plans cannot be a n ­
sw e re d b e ca u se we have national c o v e r a g e in v o lv ­
ing a ll ty p es and c la s s ific a t io n s o f e m p lo y e e s with
no attem pt m ade to b re a k down ex p en d itu res b y in ­
dividu al un its.
In p a r t, d iffic u ltie s a r o s e in m eetin g the re q u ire m e n ts o f the
q u e stio n n a ire , p a r tic u la r ly with r e s p e c t to its lim ita tio n to p r o d u c ­
tion and r e la te d w o r k e r s .
F o r ex a m p le:
17

A s w as to be e x p e c te d , a n u m ber o f esta b lish m e n ts in the
o r ig in a l sa m p le w e re out o f b u s in e s s , e m p lo y e d fe w e r than 20 w o r k ­
e r s at the tim e o f the s u r v e y , o r co u ld not be lo ca te d (c la s s ifie d as
n o n r e s p o n s e ).



25

W hile u en efits p aid to o r on b e h a lf o f in d iv id ­
u als can be tr a c e d to b a s ic r e c o r d s su ch as c lo c k
c a r d s , ea rn in g s r e c o r d s , and in su ra n ce p re m iu m
listin g sta te m e n ts, we do not have g e n e ra l le d g e r
su m m a rie s o f am ounts paid to 1‘p ro d u ctio n and r e ­
la ted w o r k e r s .11 In m a n y in s ta n c e s , the su p p le m e n ­
tal paym ents a re ch a rg e d to the sa m e a cco u n ts as
re g u la r e a rn in g s . . . . P re m iu m p aym en ts a r e not
se g re g a te d fr o m re g u la r ea rn in gs in ou r a cco u n tin g .
A n oth er o ffic ia l w ro te :
T he in fo rm a tio n r e q u e ste d in this s u r v e y cou ld
be ob ta in ed , if n e c e s s a r y , but it w ou ld take c o n s id ­
e ra b le tim e and e ffo r t
to se g re g a te and a c c u m u ­
late the data fo r p ro d u ctio n and re la te d w o r k e r s .
M any o f the unusable q u e stio n n a ire s r e c e iv e d r e fle c t e d the
d iffic u ltie s in d ica te d a bove plus a re lu cta n ce to e stim a te expen ditu re
le v e ls in the a b s e n ce o f p r e c is e r e c o r d s .
R e fu s a l to re sp o n d at a ll is , o f c o u r s e , a fa c t o r in a ll v o l ­
un tary s u r v e y s .
In this c a s e , s e v e r a l co m p a n ie s e x p r e s s e d to B u ­
rea u r e p r e s e n ta tiv e s a la ck o f in te re s t o r u se fu ln e ss in the s u b je c t
studied; so m e thought that the a v a ila b ility o f this type o f in fo rm a tio n
cou ld be u sed to th e ir d isadvan tage in c o lle c t iv e b a rg a in in g .
Such
n on resp on d en ts who o b je c te d in p r in c ip le to this s u r v e y a re b e lie v e d
to be a sm a ll m in o r ity .







27
Establishm ent .R ecord s and R eporting P ra ctic e s
A m a jo r pu rpose o f this pilot study was to determ ine the
prevailin g p ra ctice am ong m anufacturing establishm ents with r e sp e ct
to ( l ) keeping separate r e co r d s of their expenditures on the selected
item s of em ployee rem uneration, (2) frequ en cy with which re co r d s
w ere sum m arized or aggregated fo r the establish m en ts' own p u r­
p o s e s , (3) ability to p rovid e data on actual expenditures from these
r e co r d s in the form requested, and (4) m ethods used in estim ating e x ­
penditures in the ab sence o f p r e c is e r e co r d s and the general r e lia ­
bility of such estim ates.
The reason s fo r investigating these p ra ctice s can be sum ­
m a rized b r ie fly . If a substantial prop ortion of establishm ents do not
keep separate r e co r d s but, perhaps, account fo r a ll expenditures c o m ­
bined under such broad ca teg orie s as "d ir e c t la b o r " or "overh ead, "
then voluntary expenditure surveys would obviou sly be im p ra ctica l.
If establishm ents do not follow the p ra ctice o f aggregating b a sic r e c ­
ords such as .tim ecards and p a y roll colum ns fo r their own p u rp oses,
expenditure surveys requesting annual data would im pose an e sp e cia lly
heavy burden upon respondents. If establishm ents cannot supply the
type of data requested in this su rvey, despite the indication that r e c ­
ords of som e type w ere kept and su m m arized, perhaps a differen t
approach might be requ ired .
T hese consideration s led to another
pertinent question: A re establishm ent approxim ations adequate fo r
som e p u rp oses? Is it reasonable to assu m e, fo r exam ple, that the
vast m a jority of establishm ents, p a rticu la rly those which engage in
c o lle c tiv e bargaining, have a fa ir ly good notion o f the amount o f e x ­
penditures connected with any p r a c tic e ? Such estim ates can be d e ­
rived , in the ab sence of actual expenditure r e c o r d s , from related in ­
form ation .
F o r exam ple, annual expenditures fo r 6 paid holidays
equal 8 hours a day, tim es the avera ge hou rly rate, tim es the a v e r ­
age number of em ployees eligible fo r paid h olidays, tim es 6.
Expenditure R ecord s
The establishm ents surveyed w ere asked the follow in g q u e s­
tions: (l) Do you keep separate expenditure r e co r d s fo r each o f the
selected item s cov erin g produ ction and related w o r k e r s ? (2) If you
keep such r e c o r d s , how often do you sum m arize the e n trie s? A " y e s "
o r "n o" answer was requested fo r the fir s t; the p e rio d fo r w hich sum ­
m a ries w ere m ade ( e . g . , m onthly, qu arterly, e t c .) fo r the secon d.
O bviously, d escription s of accounting p ro ce d u re s and definitions w ere
not sought. 18 A " y e s " answer to the fir s t question was interpreted
18
This is not to m in im ize the need fo r the developm ent
m ore uniform accounting p roced u re s am ong establishm ents if a high­
er degree of p r e c is io n in m easuring or com paring expenditure le v e ls
is ever to be attained.
In the co u rse o f this su rvey, many esta b­
lishm ents ex p ressed to the Bureau an in terest in the developm ent o f
standard p roced u res fo r m aintaining expenditure r e c o r d s .



of

28

s im p ly to m ean that r e c o r d s o f expen ditu res f o r the item w e r e a v a ila ­
b le , in w h a tev er fo r m the e sta b lish m e n t ch o s e to keep th em .
A
nn o M a n sw er can be in te rp re te d in two w a y s, that ( l ) se p a ra te e x ­
p en d itu re r e c o r d s w e re not kept, o r (2) no se p a ra tio n w as m a d e
betw een p ro d u ctio n and re la te d w o r k e r s and oth er e m p lo y e e s . The in ­
fo r m a tio n fo r na ll s e le c te d it e m s 1' and fo r " a il s e le c te d ite m s e x c lu d ­
ing p rem iu m p a y " show n in the a cco m p a n y in g ta b les re p r e s e n t a
co m p o s ite o f the individual e n trie s on the q u e stio n n a ire .
The re s p o n s e re v e a le d c o n s id e r a b le v a ria tio n in r e c o r d k e e p ­
ing p r a c t ic e s am on g the ite m s studied, w ith the b e s t sh ow in g, as
m igh t be e x p e cte d , fo r the le g a lly re q u ir e d paym ents (table 4 ). The
ten d en cy to co m b in e p re m iu m pay f o r o v e r tim e with p re m iu m p a y f o r
h olid a y w o r k , p a st w ith cu r re n t p en sion c r e d it s , and p a r tic u la r ly the
v a rio u s in s u ra n ce and w e lfa r e ite m s , w as n o ta b le . P o s s ib ly no s e p ­
a ra tion was p r a c t ic a b le in th ese in s ta n c e s .
The e x ce p tio n a lly high
"not k ep t" ra te shown fo r sh ift p re m iu m p ay , the su p p le m e n ta ry b e n e ­
fit m o s t lik e ly to be r e s t r ic t e d to p ro d u ctio n and re la te d w o r k e r s ,
m a y be a cco u n te d f o r , in p a rt, by the p r a c t ic e o f including shift p r e ­
m ium pay d ir e c t ly in b a sis w ages fo r shift w o r k e r s fo r p a y r o ll a c ­
counting p u r p o s e s . A bout h a lf o f the e sta b lish m e n ts su rv e y e d in d i­
ca ted that se p a ra te r e c o r d s w e r e kept fo r ea ch o f the s e le c te d ite m s
in e ffe c t in the e sta b lish m e n ts.
E xclu d in g p re m iu m p ay, the p r o ­
p o rtio n w as in c r e a s e d to a p p ro x im a te ly 70 p e r c e n t.
The v a st m a jo r it y of the esta b lish m en ts w h ich kept expen d ­
itu re r e c o r d s su m m a riz e d the individual e n trie s fo r th eir own o r
oth er u se s (table 5). C o n sid e rin g su rv e y s o f expen ditu res fo r a fu ll
y e a r , w h ich a p p ea rs thus fa r to be the m o s t p r a c t ic a l p e r io d of c o v ­
e r a g e , it w ould se e m that the m o st tr o u b le s o m e p r o b le m lie s in a c ­
cum ulatin g su ch p a y r o ll item s as p re m iu m pay f o r o v e r tim e , sh ift
p rem iu m pay, and v a ca tio n and h olid a y p a y m e n ts. On the oth er hand,
c o v e r a g e o f a sin g le m onth o r a q u a rter m a y depend upon w h eth er an
a p p ro p ria te m eth od o f ap p ortion in g ce r ta in ite m s lik e p e n sio n ex p en d ­
itu res cou ld be w o rk e d out.
T im e R e c o r d s
In the a b s e n ce o f expen ditu re r e c o r d s , it w as a ssu m e d that
tim e r e c o r d s co u ld b e u tiliz e d as a b a s is fo r com puting expen ditu re
to ta ls .
A s table 6 in d ic a te s , this p o s s ib ilit y a p p ea rs m o s t fru itfu l
fo r the p re m iu m pay it e m s , fo r w h ich tim e r e c o r d s w e r e kept by
h ig h e r p r o p o r tio n s o f esta b lish m e n ts than w as the ca s e w ith ex p en d ­
itu re r e c o r d s .
A lthough a som ew h at h ig h er p o r p o r tio n o f e s t a b lis h ­
m en ts su m m a riz e d expen ditu re r e c o r d s , the g e n e ra l p r a c t ic e w ith
tim e r e c o r d s (table 7) did not d iffe r m a rk e d ly fr o m that fo r ex p en d ­
itu re r e c o r d s (table 5).
A re la te d m a tte r w as the r e s p o n s e to the q u e stio n s on v a ­
ca tio n , h o lid a y , s ic k le a v e , and shift p re m iu m p r a c t ic e s in p a rt III
o f the q u e stio n n a ire .
On the w h o le , the r e s p o n s e a p p e a re d to be



29
T A B L E 4 . ---- K e e p i n g o f e x p e n d it u r e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s
N um ber
of
esta b lis h m en ts
w ith
prac­
t ic e s
in
e ffe c t

I te m

by

it e m ,

1953

N u m b e r o f e s t a b l i s h m e n t s in w h ic h
e x p e n d it u r e r e c o r d s w e r e —

K ept

N ot
kept

K ept fo r
i t e m in
c o m b in a ­
t io n w it h
oth ers

K ept
fo r
som e
ite m s 1

N ot
rep orted

V a c a t i o n s , h o l i d a y s , a n d s i c k l e a v e -------------------------------P a id v a c a t i o n s ----- ------------------------------------------------------------P a id h o l id a y s -------- ---------------------------------------- ------------------P a id s i c k l e a v e -------------------------------------------------------------------

544
544
495
103

477
499
43 2
77

29
31
48
20

13
14
3

-

P r e m i u m p a y -------------------------------------------------------------------------P r e m i u m p a y f o r o v e r t i m e -----------------------------------------P r e m i u m p a y f o r w o r k on h o l i d a y s --------------------------S h ift p r e m i u m p a y
----------------------------------------------------------

2 541
2 539
2 324
439

344
391
139
2 73

46
45
78
1 25

_

145

95
95
22

-

T o t a l e x p e n d it u r e s f o r p e n s i o n s --------------------------------------P a st s e r v ic e c r e d its
-----------------------------------------------------C u r r e n t s e r v i c e c r e d i t s ------------------------------------------------

310
221
308

251
100
175

40
32
40

«.

2

77
77

-

I n s u r a n c e , h e a l t h , a n d w e l f a r e ---------------------------------------F i x e d c o n t r i b u t i o n s -----------------------------------------------------------L i f e i n s u r a n c e ------------------------------------------------------------------A c c i d e n t a l d e a t h a n d d i s m e m b e r m e n t ----------------------A c c i d e n t a n d s i c k n e s s b e n e f i t s -----------------------------------H o s p i t a l i z a t i o n ------------------------------------------------------------------S u r g i c a l ------------------------------------ -------------------------------------------M e d i c a l ( o t h e r th a n s u r g i c a l ) --------------------------------------O th e r -------------------------------------------------------------------------------------

513
94
411
245
35 0
388
382
200
98

443
89
189
66
148
118
102
32
19

51
4
54
30
45
49
48
26
17

3

9

L e g a l l y r e q u i r e d p a y m e n t s -----------------------------------------------O ld A g e a n d S u r v i v o r s I n s u r a n c e ------------------------------U n e m p lo y m e n t c o m p e n s a t i o n 3 ------------------------------------W o r k m e n 's c o m p e n s a t i o n --------------------------------------------S ta te t e m p o r a r y d i s a b i l i t y i n s u r a n c e ------------------------

550
550
550
541
47

487
493
492
489
36

25
35
36
42
7

A ll s e le c t e d ite m s

550

2 70

7

-

273

-

550

393

8

-

149

-

----------------------------------------------------------------

A ll s e le c t e d ite m s e x c lu d in g p r e m iu m p a y

------------------

38
-

-

-

-

159
145
153
216
228
139
62

-

_
16
16
3
3

1
1
3

-

_
-

34
-

6
8
12
19
17
12
16
7
1
9
4
4
5
4
3
-

4
6
6
7
1

A p p l i e s o n l y t o t o t a ls o f i t e m s in e a c h c a t e g o r y .
B a s e d o n r e s p o n s e t o q u e s t i o n s o n r e c o r d s a n d e x p e n d i t u r e s , a n d d o e s n o t n e c e s s a r i l y r e f l e c t p r e v a l e n c e o f p r a c t i c e in 1 9 5 3 .
F e d e r a l an d S ta te.




30
T A B L E 5 . — E s t a b l i s h m e n t p r a c t i c e in s u m m a r i z i n g e x p e n d it u r e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s
'r fT m W r"
of
e sta b ­
E ach
lis h ­
pay
m e n ts
keeping p e r io d
record s

Item

b y ite m ,

M on th ly

of e s t a b lis h m e n ts in w hich ex pen d itu re
r e c o r d s w e r e s u m m a r iz e d —
S om e
su m m a ­
Not
Not
S e m i­
Q u ar­
A n n u a lly s u m m a ­ r iz e d ;
r e p o r te d
annu ally
t e r ly
other s
r iz e d
n o t1
112
114
41
13

10
18
16
4

7

13
18
20
26

17
-

-

17
19
5
10

1
1
1

139
67
85

5
-

-

4

"

3

80
8
45
15
32
21
21
8
4

10
2
6
3
6
4
4
2
2

V a c a tio n s , h o lid a y s, and s ic k le a v e 2 _____________
P a id v a c a tio n s
_ .... ___
________ _
P a id h o lid a y s _______________________________________
P a id s ic k le a v e _____________________________________

477
499
432
77

208
224
245
25

107
106
103
28

12
12
10
6

6
7
2

P r e m i u m p a y 2 __________________________________________
P r e m i u m pay for o v e r t im e _______________________
P r e m i u m pay fo r w o rk on h o lid a y s ____________
Shift p r e m iu m pay _________________________________

344
391
139
273

213
257
84
169

66
76
25
52

7
9
3
6

_
1
-

T o ta l ex p e n d itu r e s fo r p en sio n s 2 __________________
P a s t s e r v ic e c r e d its ______________________________
C u r r e n t s e r v ic e c r e d its ____________ _____________

251
100
175

14
2
12

67
19
56

6
4
5

In su r a n c e , h ealth , and w e lfa r e 2
......... ...........
F ix e d con trib u tion _________________________________
L ife in su r a n c e ________________________ _____________
A c c id e n ta l death and d is m e m b e r m e n t _________
A c c id e n t and s ic k n e s s b e n e fits ________ ____ ____
H o sp ita liz a tio n __________________________ ______ ___
S u r g ic a l _______________________________________________
M e d ic a l (oth er than su r g ic a l)
... ____
O th er
_ ... ___ _
.
____ _
___ ____

44 3
89
189
66
148
118
102
32
19

29
10
10
2
14
3
2
1

281
61
117
44
91
83
70
21
12

11
1
2

*

-

-

1

-

-

4
4
1

-

-

-

-

-

-

-

-

-

_
-

-

-

5
6
6
10
1

-

4
6
6
8
1

31
80
50
39
3

132
165
148
200
18

87
175
131
50
11

A l l s e le c te d it e m s 2

270

7

45

25

1

162

1

29

393

7

68

37

2

256

4

19

_

.... _

......

A ll s e le c te d it e m s ex clu d in g p r e m iu m pay 2 _____

1

A p p l i e s o n l y t o t o t a l s o f i t e m s in e a c h c a t e g o r y .
W h e r e e s t a b l i s h m e n t p r a c t i c e d i f f e r e d a m o n g th e i t e m s c o m p r i s i n g the t o t a l s ,

24

Item

V a c a tio n s , h o lid a y s , and
s ic k le a v e
P a id v a c a t io n s
____ ____
P a i d h o l i d a y s _____________________
P a id s ic k le a v e
P r e m iu m pay
P r e m i u m p a y f o r o v e r t i m e ____
P r e m iu m pay fo r w o rk on
h o lid a y s
S h ift p r e m i u m p a y

-

-

by s e le c t e d ite m s ,

195 3

N u m b e r o f e s t a b l i s h m e n t s in w h ic h
tim e r e c o r d s w e r e —

K ept

N ot
kept

K ept fo r
i t e m in
c o m b in a ­
t io n w it h
oth ers

_

54 4
544
495
103

452
464
417
80

56
67
65
17

2 541
2 5 39

398
408

35
34

90

2 324
439

172
309

52
93

89
19

12
12
3

K ept fo r
som e
ite m s 1

35
_

_
103
_

_
-

N ot
rep orted

1
1
1
3
5
7
11
18

1 A p p l i e s o n l y t o t o t a l s o f i t e m s in e a c h c a t e g o r y .
B a s e d on r e s p o n s e to q u e s t io n s o n r e c o r d s an d e x p e n d it u r e s , a n d d o e s n o t n e c e s s a r il y r e f l e c t p r e v ­
a l e n c e o f p r a c t i c e in 1 9 5 3 .




-

th e l o n g e s t p e r i o d w a s s e l e c t e d f o r t a b u l a t i o n .

T A B L E 6 — K e e p in g o f t i m e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s

N um ber o f
e s ta b lis h ­
m en ts
w it h
p r a c t ic e s
in e f f e c t

29
7
8
2
1
3
4
1

487
493
492
489
36

-

19
7
12

-

8

-

11
11
2
10

-

211
61
151
158
2

9

15
18
15
1

-

L e g a lly r e q u ir e d p a y m e n ts 2 _ ............. ........ _ ... .
O ld A g e and S u r v iv o r s In su ran ce
. _ .
U n em p lo y m en t c o m p e n sa tio n . . . . . . . . . ___ _
W o r k m e n ’ s c o m p e n sa tio n .........................
.......
State t e m p o r a r y d is a b ility in su r a n ce
... _
___

1953

v_
Numb►

31
T A B L E 7 . — E s t a b l i s h m e n t p r a c t i c e in s u m m a r i z i n g t i m e r e c o r d s f o r p r o d u c t i o n a n d r e l a t e d w o r k e r s
N um ber
of
e sta b ­
lis h ­
m e n ts
k e e p in g
record s

Item

1953

N u m b e r o f e s t a b l i s h m e n t s in w h ic h t i m e r e c o r d s w e r e s u m m a r i z e d —
E a ch
pay
p e r io d

M o n t h ly

Q u ar­
te r ly

S e m i­
a n n u a lly

5
6
1

V a c a t i o n s , h o l i d a y s , a n d s i c k l e a v e 1 --------------P a i d v a c a t i o n s ____________________________________
P a i d h o l i d a y s _____________________________________
P a i d s i c k l e a v e ____________________________________

451
464
417
80

202
213
243
36

71
68
65
13

11
13
10
5

______________________________________
f o r o v e r t i m e _____________________
f o r w o r k o n h o l i d a y s ___________
p a y _______________________________

398
408
172
309

235
270
107
186

49
56
19
37

10
10
3
4

P r e m iu m p a y 1
P r e m iu m pay
P r e m iu m pay
S h ift p r e m i u m

b y s e le c t e d it e m s ,

N ot
A n n u a lly s u m m a r iz e d

94
103
37
10

34
43
45
13

19
-

15
18
16
3

1 17
20
6
9

43
41
32
58

35

9
10
5
15

-

1
v

-

"

S om e
sum m a­
N ot
r iz e d ;
rep orted
oth ers
not 2

-

1

W h e r e e s ta b lis h m e n t p r a c tic e d iffe r e d am on g the ite m s c o m p r is in g the t o t a ls , the lo n g e st p e r io d w a s s e le c te d fo r ta b u la ­

2

A p p lie s on ly to to ta ls of it e m s in ea ch c a te g o r y .

tio n .

T A B L E 8 . — N ature o f ex pen d itu re fig u r e s re p o r te d

by it e m ,

1953

N u m b er o f e s t a b lis h m e n ts re p o r tin g —

N u m b er of
e s t a b lis h ­
m e n ts
with
p r a c tic e s
in e ffe c t

A ctu a l
e x p e n d i­
ture
fig u re

E s ti­
m a ted
ex p e n d i­
ture
fig u re

S om e
a c tu a l;
som e
e s ti­
m a te d 1

544
544
49 5
103

408
452
362
63

64
72
109
24

56
-

P r e m iu m pay
...
..
... ................
....
P r e m iu m pay fo r o v e r t im e
P r e m iu m pay fo r w o rk on h olid ay
. _ .........
Shift p r e m iu m pay ..
...___ _ .....................

2 541
2 539
2 324
439

292
346
70
22 3

61
60
33
138

101
-

T o ta l e x p e n d itu res fo r p en sio n s __________________
P a s t s e r v ic e c r e d its
______ _____________ __
______________________
C u r r e n t s e r v ic e c r e d its

310
221
308

196
72
144

71
32
41

4
-

In su r a n c e , h ealth , and w e lfa r e
..... _ _ ...... ....
F ix e d con trib u tion
.. ___ ____ ___
L ife in su ra n ce ..........
A cc id e n ta l death and d is m e m b e r m e n t
A c c id e n t and s ic k n e s s b e n e fits ..........
_
_
H o sp ita liza tio n
_
...
.................. . . .
S u r g ic a l
...... . .
... ___ _ _ . . . _
M e d ic a l (other than s u r g ic a l) ____ ______
O ther
_ ____

513
94
411
24 5
350
388
382
20 0
98

334
75
128
36
102
77
63
17
9

130
17
68
28
51
47
40
15
13

18
_
-

.
7
6
3
1
2
1

-

-

L e g a lly r e q u ir e d p aym e n ts
O ld A g e and S u r v iv o r s In su ran ce
U n em p lo ym en t c o m p e n sa tio n 3 _________________
W o r k m e n 's c o m p e n sa tio n
_._ ... ............. .
State t e m p o r a r y d isa b ility in s u r a n c e ________

550
550'
550
541
47

387
422
41 4
411
31

65
94
101
106

72

.
_
1

26

-

-

7

-

-

24
9

A l l s e le c te d it e m s

550

165

14

24 0

-

131

550

25 0

17

211

Item

V a c a tio n s , h o lid a y s, and s ic k le a v e
P a id v a c a tio n s
_ ____.. ...........................................
P a id h o lid a y s
_
- ______ _____ _
P a id s ic k le a v e
_ _ _

_

...

__

A l l s e le c te d it e m s ex clu d in g
p r e m iu m pay _.
.. ..........

_

___

................... ................. .

-

-

-

-

No
ex p e n d i­
tu r e s
in c u r re d

No
in fo r ­
m a tio n

_
1
1

16
20
23
15

2
5
86
5

85
128
135
73

4
6
3

35
111
120

.

31
2
208
175
194
26 3
277
167
76

34
34

72

1 A p p lie s on ly to t o ta ls o f it e m s in ea ch c a te g o r y .
B a s e d on r e s p o n s e to q u e stio n s on r e c o r d s and e x p e n d itu r e s, and d o es not n e c e s s a r i ly r e f le c t p r e v a le n c e o f p r a c tic e
1953.
3

F e d e r a l and S ta te .




in

32

s a t i s f a c t o r y .
le n g t h
t io n

o f

p o l i c y

t w e e n
th e

F o r

in

s h ift

e s t a b l is h m e n t s
p a y r o l l
l e a v e

s i c k

t io n n a i r e s

th e

w e r e
b y

O n

th e

w it h

a

h o u r s

th e

s u r v e y s ;

a s

c u s s i o n
p la n

is

o f

f o r

A c t u a l

a n d

a t

p r a c t i c e
c i f i c
m in e d

r e a l

s u c h

o f

b y

b u t

a

t a k e

o r d s .

th e

t r o u b le

A s

o n e

p r e m i u m
p l o y e e

t a b lis h m e n t s

w h ic h

s u m m a r i z a t i o n
p e n d it u r e
t h e ir

r e c o r d s

T h e
d e r i v e d

o f

it

d i r e c t i o n

f o r

a b i l i t y

in

h ig h e s t

t a k e




h a v e

a

e a r n i n g s ) . 19

e n c o u r a g i n g
f o r

r e g u l a r

w i d e s p r e a d

s t im u la t e

t o

s u p ­

in d ic a t e d

p la n n e d

c u r r e n t

o r

e x p e n d it u r e s

d i s ­

m a n a g e m e n t

to

e x p e n d it u r e s .

th e

th e

k e p t

th e

t o

o f

o f

d a ta

s u b s t a n t ia l

o f

a ll

in

a n d

w h ic h

b a s i c

r e c ­

o f

o f

i n f o r m a t i o n ."

r a t h e r

s p e ­

d e t e r ­

w i l l i n g n e s s

o m i s s i o n

a d d in g

a c t u a l

fo u n d

f o r

c o n s i d e r e d

n u m b e r

e f f e c t

is

f o r m

f r o m

th e

v a r i o u s

th e

a b ilit y

th e

r e c o r d s

w it h

w a s

w a s

p r o v i d e

s h ift

o u r

e m

M a n y

t h e ir

th a n

­

e s ­

r e g u l a r

a c t u a l

p r o b l e m s

e x ­

in h e r e n t

r e q u e s t e d .

r e s p o n s e

e s t i m a t i n g

o f

e x p e n d it u r e

r e c o r d k e e p i n g

r e s p o n d e n t !s

e s t i m a t e d

b e c a u s e

to

s u m m a r i e s

th a t

k e e p in g

r e c o r d s

s ig n if ic a n t

th e

n e c e s s i t a t e
g e t

n o t

T h is

e x p la in in g

p r o v i d e d

t y p e

is

c h ie f l y ,

a n d

in

w o u ld
y e a r

c o l l e c t i n g

r e c o r d s .

n e c e s s a r y

w r o t e ,

th e

o f

r e s p o n d e n t

h is

in c lu d in g ,

a r e

"I t

th e

w o u ld

a

q u e s ­

m a n u f a c t u r in g

b e

B u r e a u

th e

f e a s i b i l i t y

o f

f a c t o r s

r a t e

S u c h

h o l i d a y ,

e s t a b l is h m e n t s

th e

w i l l

o f

o f

c a s e s ,

o f

e x p e n d it u r e s

q u e s t i o n n a i r e ,

f r o m

r e p o r t e d

c o m p a n y

to

th e

m a i l

p r e s u m a b l y

o r

th a t

c o m p a n y

o f

o f

m a k e

f r o m

19
s i n c e

o f

n o n e t h e le s s

f i g u r e s ,

if

a ll

r e s p o n d e n t s

h o u r l y

s h o u ld

S e v e r a l

In

th e

p r a c t i c e s

b e ­

p e r c e n t

n u m b e r

th e

a v e r a g e

s u r v e y i n g

k e p t

a

b y

v a c a ­

E x p e n d it u r e s

e x p e n d it u r e s :
c a r d s

b e

9 5

v a c a t i o n ,

in

d iv id in g

d a ta ,

e x p e n d it u r e s

r e c o r d s
to

in

o r e o v e r ,

r e s p o n d e n t

c l o c k

in

m

th e

n u m b e r

g r o s s

t h e s e

w o u ld

r e q u e s t e d

e s t a b l i s h m e n t ’s

(b y

a v e r a g e
a

r e la t io n s h ip
f o r

l e s s

a lt h o u g h
p r o v i d e d

r e m u n e r a t i o n .

m e a n s

d a ta

in

h o u r s

h o u r s

B u r e a u

th e

th e
w it h

e x p e n d it u r e s .

r e c o r d k e e p i n g

m e a s u r e

b y

th e

i n t e r e s t

r e c o r d s

E s t i m a t e d

a s

t y p e

th e

b r e a k d o w n s

l e a s t

p r e m i u m

w e r e

c o m p u t e

c o m p u t e

p a y r o l l

p a y r o l l

r e f l e c t e d

s u p p le m e n t a r y

T h e
d a ta ,

b y

to

e s t a b l is h m e n t s

to

c o m p u t e d ,

h o u r s

p r o b a b l e ,

f i n e r

th e

t o t a l

e s t a b l i s h m e n t s

e m p l o y e e

it

p o s s i b l e

o f

s h ift

(t o ta l

w h o le ,

a p p r o p r i a t e

a n d

w e r e
o f

w a s

p o s s i b l e

r e p o r t i n g

l o n g - r a n g e

p l e m e n t a r y
th a t

w a s

c o m p u t e d

it e m

it

p e r c e n t

h o u r s

h o u r s )

e s t a b l i s h m e n t s ,
t h o s e

It

e s t i m a t e s

e s t i m a t e s
f o r

9 7

p r e m i u m

a d ju s t e d

t o

f o r

e f f e c t .

a n d

th e

e x a m p l e ,

v a c a t i o n

o n

th e

o f

l a r g e

e x p e n d it u r e
p a id

a d e q u a t e
e r r o r s

a g g r e g a t e .

f i g u r e s

v a c a t i o n s ,

f o r
in

th e

p a id

th e

p u r p o s e

s a m e

33

h o l i d a y s ,
75

a n d

p e r c e n t

a c t u a l

n o t

o r e

w h ic h

p a r e n t l y

it

w a s

r e s p o n s e

th a n

o n

r a t e

o f

i n c u r r e d

d u r in g

t r ib u t a b le
id a y
l i k e l y

u s e d

th a t

in d ic a t e

o n

O n ly
s u r v e y

o n

e v e r y
it u r e s
o r

m

th e

o f

c a t e g o r y

th e

4 2

t y p e

th e

it u r e

f o r

b e

its

o f

a n

g r o u p s
w it h

a

a g r e e m e n t s

t h e ir

p a y m e n t s

m a d e

th e

e x p e n d it u r e s

c o r r e s p o n d i n g
s u c h

a s

th e

o f

f e w

o f

T h e

p r e m i u m

th e

f o r

It

d a ta

th e

w e r e

a r e

p a y

o n

y e a r

lo w

a n d

r e p o r t e d ,

p r o v id i n g

h a d

f o r

a ll

a t ­
h o l ­

is

a l s o

o v e r t i m e

b u t

f a il e d

th e

m a d e

t o

S lig h t ly

to

th a t

f o r

o n e

p r o p o r t i o n s

d a ta

f o r

th a n

r e c o r d s

p r o v i d e

a c t u a l

f o r

e x p e n d ­

p a y "

m o r e

in

e s t i m a t e d

t o t a l

o f

p r e m i u m

th e

a n d

e s t i m a t e s

p e r c e n t ) ,
a b s e n c e

in

lis t e d

s o m e

c o r r e s p o n d i n g

in d ic a t e d

a b le

a n d

c a s e s ,
(2 4

c o v e r e d

i t e m s

a c t u a l

e x c lu d in g

o f

a n d

o f

in

w e r e

60

4 5

p e r c e n t

w e r e

d a ta

k e p t

o n

o f

v a r ia t io n s

r e c o r d s

f o r

e x p e n d ­

th e

t h r e e

1 9 5 2 ,

p a y r o l l 11

th e

1 9 5 3

q u a r t e r

o f
s o m e

is

t h e s e

p r o b l e m s

d i f f e r e n c e

t h e y

t o

m a y

th e

1 9 5 3

n o t

e s ­
b a r ­

a b le

a s

a n t ic ip a t e d

i n c u r r e d

l e g a l l y
f o r

c o v e r

1 9 5 3 .

d i f f e r s

d i s t o r t i o n

c r e a t e d .

e s t a b ­
d o

b e t t e r

G o v e r n m e n t

o f

e a s ­
th a n

a

t o

c o n ­

p r a c t i c e s ?

a c t u a l ly

q u a r t e r s

m

c o l l e c t i v e

p o s s i b l y

b e t w e e n

lia b i l it y

p a y m e n t

d u r in g
f i r s t

o n

a

e x a m p l e ,
b y

a r e

a s

r a t h e r

d i f f e r e n t

F o r

c o v e r e d
a n d

d a ta ,

a m o n g

e s t a b l is h m e n t s ,

a c c o u n t in g

a n d

r e p o r t e d

s u c h

a p p r a i s e d .

n e g o t ia t in g

w a s

f i g u r e s

p r o v i d e

w o r k e r s

b e t t e r

1 9 5 3

th e

t o

a lo n e ,

q u a r t e r l y

fo u r t h

o f

e x p e n d it u r e

a b ilit y

n o n u n io n

th e

m a d e

p e r i o d

" p e r c e n t




a

r e p o r t s

r o u g h ly

n e e d s

w h e r e

1 9 5 2
in

s o m e

p e r c e n t .

m a j o r i t y

d u r in g

e x a m p l e ,

o f

b e

q u e s t i o n n a i r e

F o r

q u a r t e r

t y p e

th a n

O n e
th e

in

th e

w e r e

k e e p

d a ta

20

p l o y m e n t

13

p r a c t i c e s

a c t u a l

o f

b e t t e r

v e r y

h o l i d a y s ,

e s t a b l is h m e n t s

b e c a u s e

w h ic h

c a n

g a in in g

o f

T h e

e x p la in e d .

d u r in g

f i g u r e s

it e m s

a n d

th e

p r o v i d e

s e q u e n c e

e x p e n d it u r e s .

e x p e n d it u r e s

n o t

o f

A p ­

i t e m .

r e c o r d k e e p i n g

t a b lis h m e n t s

th e

e f f e c t .

e s t a b l i s h m e n t s

l i s h m e n t

la t io n

in

e x p e n d it u r e

e a c h

o r ,
o f

s e l e c t e d

p e r c e n t ,

o f

p r o v i d e d

c o m p u t e d

it e m s

A c c e p t i n g
u r e

p e r c e n t

e x p e n d it u r e

b a l a n c e

na l i

o f

n o t

o n

n o

w e r e

i n c l u d ­

k e p t .

s u b s t a n t ia lly

w o r k

w h e r e

p r e v i o u s l y

e x p e n d it u r e s

p e r c e n t

e s t a b l is h m e n t s

e a c h

s e p a r a t e
w a s

d e f in it io n

e s t a b l is h m e n t s
n o

f o r

c a s e s

a s

w e r e

s e p a r a t e l y .

e x p e n d it u r e s

q u e s t i o n n a i r e

n o t

p a y

o f

r e s t r i c t e d

3 0

4 6

th e

c r e d i t s

p r e m i u m

o r

th e

e x p e n d it u r e s

s u r v e y ,

a c t u a l

In

c o u ld

o r e

p e r c e n t ,
o f

th e

i t e m .

e s t im a t e

r e c o r d s

e s t a b l is h m e n t s

q u e s t i o n n a i r e .

a b o u t

A n o t h e r

f i g u r e s

th e

th e

th e

to

s e p a r a t e

s e r v i c e

f o r

t h is

o f

p r o v i d e d

e f f e c t .

c o m p o n e n t s ,

p e n s i o n

i n c u r r e d

th is

m o s t

y e a r

t o

in

s o m e

e x p e n d it u r e s

e x p e c t e d ,
i n s u r a n c e

p r o p o r t i o n

th e

l a r g e l y

w o r k

A s
th e

th a t

a b o u t

p r o v i d e d

o n

d if f ic u lt

h ig h

i t e m s ,

r e c o r d s

8 ).

a l s o

f i g u r e s

t h e s e

(t a b le

c u r r e n t

c o r r e s p o n d i n g l y

F o r

k e e p in g

f i g u r e s

in d ic a t e d

t o t a l

p a y m e n t s . 20

e s t a b l is h m e n t s

h a d

a n d

a c t u a l

r e q u i r e d
th e

a c t u a l

o n

p a s t

o f

f i g u r e s

p r o v i d e

m a n y

T h e

l e g a l l y

m

e x p e n d it u r e

c o u ld
in g

th e

o r

th e

th a t
is

f o r m

y e a r .

th e

th e

T h u s ,

m a r k e d l y
in

in

r e q u i r e d

r u le ,
f o u r t h

if

f r o m

e x p e n d it u r e

e m

­

th e

r a t io s

u ­

34

T h e
w a s

m o s t

t o t a ls

(t a b le

p o r t e d

I n d e e d ,

a il

A

h i g h e r

th a n

th e

m o r e

th e

w e r e

n o t a b le ;

p r o p o r t i o n
q u i r e d

p a y

a n d

a s

s i z e

th e

h o l i d a y s ,

p r e m i u m

p a y ,

g r o u p

"

in

th e

o f

s h o w n

s i c k

w h ic h
o f

w a s ,

i t e m s

b e

a

" a l l

h i g h e r

l e g a l l y

th e

e f f e c t

r e ­

c a s e ,

o r

p r e m i u m

s e l e c t e d

f i g u r e s

i t e m s

d i m i n i s h e d

p e r h a p s ,

in

u s e d .

t e n d e n c i e s

g r o u p s —

a c t u a l

i l a r ­

e s t a b l is h m e n t s

a n d

t o

F o r

o f

s a m p l e

s h o w e d

it e m

l e a v e .

s i m

s i m i l a r i t y

C e r t a i n

p e n s i o n s ,

r e ­
p a y ;

c o n c l u s i v e .
th e

th is

a m o n g

s e e m e d

p e r c e n t a g e

l a r g e r ,

b e

w a s

s m a l l

1 0 ).

p a y r o l l

g r o u p

p r e m i u m

t o

e s t a b l is h m e n t s

r e v e r s e

n u m b e r

th e

it e m

e s t a b l is h m e n t s

n a r r o w

(t a b le

a n d

o n

p e r c e n t a g e s ;

w a s

th e

e s t a b l is h m e n t s

e x c e p t

c o m p a r i s o n

lig h t

f o r

th e

b e c a m e

d i f f e r e n c e s

t o o

i n s u r a n c e ,

th e

c l e a r ,

t o t a ls

t h e s e

th e

o n

w h e r e a s

n o t

v a c a t i o n s ,

th e

o f

w e r e

in

s m a l l e r

r e p o r t s

r e p o r t i n g

u n io n iz e d

th is

s t u d ie d

e x a m p l e ,

a c t u a l

o f

v a r i a t io n

g r o u p s

n o n u n io n

th e

it e m

o f

in

a n d

o f

m u c h

a s p e c t

m o r e

s i z e

e x p e n d it u r e s ,

e x c l u d i n g

a il

d i f f e r e n c e s

f o r

o f

d i f f e r e n c e s

f o r

r e m a r k a b l e

d i f f e r e n t

u n io n

t e r m s

w e r e

s t r ik in g

C o n s i d e r a b l y
in

in

p r o p o r t i o n

d i f f e r e n c e s

m o s t

th e

b e t w e e n

m a d e

e x p e n d it u r e s

th e
th e

r a t h e r

w a s

9 ).

a c t u a l

h o w e v e r ,

it y

c o m p a r i s o n

c o n v e n i e n t l y

a

r e f l e c t i o n

a m o n g

th e

s i z e

g r o u p s .

A n

a n a l y s is

e x p e n d it u r e s
b o t h

i t e m s

o f

A

w a s

it u r e s

b in e d ,
f r o m

la r
o m

it e m

in

a n o t h e r

t h is
th e

o f

p r o v id i n g

f o r

o r

t o

i n s u r a n c e
e f f e c t

r e p o r t e d

a n d

p e n s i o n

r e v e a l e d

f o r

th a t

a

s li g h t ly

p la n s

th a n

f o r

h i g h e r

b y

t h o s e

o r

(t a b le

it e m

o t h e r

p r o d u c t i o n

a n

1 1 ).

g iv e n

d a ta

r e s p o n d e n t s
o r

o f

F o r

p r o r a t e

th e

k e e p in g

T h e

p r e v e n t e d

a

o r

a n

r e l a t e d

r e a s o n ,

w it h

f o r

a il

o f

r e c o r d s

i t e m s

T h e

w o r k e r s

w o r k e r s

4 ),

e x p e n d ­

c o m

­

e s t a b l is h m e n t s

e s t i m a t e .

t o

u n d e r ­

(t a b le

c o m p a n y ’s

a n d

n u m b e r

e x p e n d it u r e s
a n d

th e

r e a s o n s

e x p e n d it u r e

r e c o r d s

c o m b i n e d

g r o u p s

f i g u r e

c h i e f

w e r e
in

o f f e r e d

e s t i m a t e d

e x p e n d it u r e

i t e m s

i t e m

e x p e n d it u r e
to

o f

a c t u a l

in

in a b ilit y

a

a c c o u n t e d

p a r t i c u ­
f o r

o t h e r

i s s i o n s .

b r i e f l y

t h e s e

a le n t

b a s i s

w e e k s ,

th e

r e s p o n d e n t s

a m o n g
o f

d e t e r m i n e d

a s

o n
in

n o n c o n t r i b u t o r y

a n

th e

it e m

R e s p o n d e n t s

th e

th e

s o m e

a n

u n w illin g n e s s

d e s c r i b e
o f

w e r e

e f f e c t

o n

q u e s t i o n n a i r e .
l a c k

r e s p o n s e

w it h

e it h e r

e x p e n d it u r e s

p la n t

o f

a r r a n g e m e n t s

p l a n s .

r e s p o n s e

f o r

o n

t y p e

e x p e n d it u r e s

p r o v i d e

a n

th e

th a t

a n d

t o

f o r

s c o r i n g

th e

s u b s t a n t i a l 'p r o p o r t i o n

f a il i n g

f i g u r e

o f

f in a n c in g

e s t a b l is h m e n t s

c o n t r i b u t o r y

f o r

o r

th e

a c t u a l

p r o p o r t i o n
w it h

b y

th e

m o n t h s ,

b e t w e e n

p a r t i c u l a r




o r

g r o u p in g

o f

w it h

i. e .

w o r k e r s
a n d

b a s i s

u s e d

a v a i l a b l e

p r o d u c t i o n

t a b l i s h m e n t .
c a s e s .

t o

d a ta ,

e s t i m a t e d

o r

c o m p l i e d

m e t h o d s

r e l a t e d
c o s t

p r o v id i n g
m e t h o d

,

o n

(t a b le

c a l c u l a t in g
a n

th e
a n d

w o r k e r s
c o v e r e d

p r e v i o u s

w e r e

1 2 ).

n u m b e r
(2 )

y e a r s

a ll

th e
w a s

M o s t

p r e v ­

o r

a

h o u r s ,

p r o r a t i n g

a n d

m o s t

r a t e
o f

o n

p r e ­
d a y s ,

e x p e n d it u r e s

e m p l o y e e s
r e c o r d s
a

to

a n d

e x p e n d it u r e s

a v e r a g e

b y

r e q u e s t e d

c a l c u l a t io n s

r e q u e s t
( l )

in v o lv e d ,
r e l a t e d

in

f i g u r e s
t h e ir

a p p ly in g

d a ta

e m p l o y e e s

E x p e r i e n c e

th is

w e r e

o f

g u id e

o f

o r
th e

in

th e
e s ­

s o m e

35
T A B L E 9 . — N a t u r e o f e x p e n d it u r e f i g u r e s r e p o r t e d f o r i t e m g r o u p s

Item group and union status

Number of
establish­
ments
with
pra ct ice s
in e f f e c t 1

b y u n io n s t a t u s ,

1 95 3

Per ce nt 2 o f establishments reporting—
Actual
expendi­
ture
figure

Estimated
expendi­
ture
figure

Some
actual;
some
e s ti ­
mated

No
expendi­
ture
figure 3

Vacations, holidays, and sick leave:
Union establishments ______________________
Nonunion e s t a b l is h m e n t s ___________________

413
126

77
70

12
13

10
13

2
5

P re m iu m p a y 4:
Union establishments
Nonunion establishments

411
125

54
54

10
14

19
16

16
15

Total expenditures for pensions:
Union establishments
. _
_
■
Nonunion establishments ___________________

248
61

63
62

22
26

1
2

13
10

Insurance, health and w elfare:
Union establishments
Nonunion establishments

399
109

65
63

26
24

4
3

5
10

Legally require d payments:
Union e s t a b l i s h m e n t s ______________________
Nonunion establishments ___________________

416
129

71
67

12
12

13
15

4
6

All selected items:
Union establishments
Nonunion establishments

416
129

31
28

2
3

43
46

24
23

All selected items excluding prem ium pay:
Union es ta b lis hm e nt s _______________________
Nonunion establishments __ __ _
___ _

416
129

46
43

3
2

39
38

12
17

1
2
3
4

__

Excludes 5 establishments for which union status was not reported.
Perc ent age s not rounded to add to 100.
Includes some ca s e s o f "no expenditures i n c u r r e d . " See table 8.
Based on resp ons e to questions on r e c o r d s and expenditures, and does not n e c e s s a r i l y re fl e ct prevalence

1953.




of p ra ct ice in

36
T A B L E 1 0 . — -N a tu r e o f e x p e n d it u r e f i g u r e s r e p o r t e d f o r i t e m g r o u p s

Item group and size of establishment

Number of
establishments
with
pra ct ice s
in effect

b y s iz e o f e s t a b lis h m e n t ,

1 95 3

P e r c e n t 1 of establishments reporting—
Actual
expendi­
ture
figure

E stimated
expendi­
ture
figure

Some
actual;
e s ti ­
mated

No
expendi­
ture
figure 2

Vacations, holidays, and sick leave:
Under 100 em ployees
100 - 499 employees _....
500 - 999 e m p l o y e e s ________________________
1.000 - 4,999 employ ee s
5,000 and over _

39
157
79
205
64

54
73
70
83
73

21
9
14
10
17

21
15
13
5
8

5
3
4
2
2

Pr em iu m pay3 :
Under 100 em plo ye es .. ...
100 - 499 e m p l o y e e s ___
500 - 999 em ployees
_ _
1,000 - 4,999 em plo ye es __________________
5.000 and o ve r _______

41
155
78
203
64

56
49
59
53
63

24
11
10
7
17

10
24
13
21
13

10
16
18
19
8

Total expenditures fo r pensions:
Under 100 employ ee s __ __ ..
100 - 499 em plo ve es ___
500 - 999 emp loy ee s
1.000 - 4.9 99 em plo ye es _ . ....
5.000 and over ____________

7
52
40
157
54

71
63
68
62
61

-

21
25
24
24

2
5
1

29
13
3
13
15

Insurance, health, and welfare:
Under 100 emp loy ee s ....
100 - 499 employ ee s ...... .
500 - 999 e m p l o y e e s ________________________
1,000 - 4.999 employ ee s __
5.000 and ove r

30
141
77
201
64

80
72
69
59
58

17
18
27
29
30

_
3
3
5
2

3
6
1
6
11

Legally required payments:
Under 100 employ ee s
100 - 499 employ ee s
500 - 999 employ ee s _
1.000 - 4,9 99 emp loy ee s
5.000 and ov er
_ __ _

42
159
80
205
64

88
70
81
68
53

_
6
11
13
31

7
18
8
14
9

5
6
5
6

All selected items:
Under 100 emp loy ee s .......
100 - 499 em ployees ______________________
500 - 999 employees
1,000 - 4.999 e m p l o y e e s _____
5,000 and over _ ... _

42
159
80
205
64

36
30
36
26
33

_

1
3
9

40
50
43
41
39

24
20
20
30
19

All selected items excluding prem ium pay:
Under 100 employ ees . „„
100 - 499 em ployees __
500 - 999 em ployees
......
1,000 - 4.9 99 employees
5,000 and ove r _

42
159
80
205
64

50
51
46
42
39

_
1
1
3
13

36
36
48
39
33

14
13
5
16
16

-

-

_

1 Percentages not rounded to add to 100.
2 Includes some cas es of "no expenditures incu rred. " See table 8.
3 Based on response to questions on re c o rd s and expenditure s , and does not ne c e s s a r il y refl ect prevalence of p ra ct ice in 1953.




54$

37
TABLE

1 1 . — R e a s o n s o f f e r e d f o r f a i l u r e t o r e p o r t e x p e n d i t u r e s b y it e m ,

Item

Number of establishm ents not reporting because—
Number of
e stabli shData fo r
R e co rd s
Data fo r
Data
for
ments
production
Some
Other
item
plant
not
data
not
w orkers
not
sum m a­
reasons
not
reporting
la
ck in g4
not
available 3 rized
available 1
available 2
_

11
~

.
-

1
2
5
8

_
96
97
24

1
2

7
2

14
21

3

68
-

41

13
7
13

1
89
89

-

1
-

"

14
9
12

9
1
8
5
7
8
8
2
“

1
183
164
178
245
260
159
74

-

8
-

1
1
~

7
10
4
3
6
5
4
1

14
“

1
-

8
8

10

4

■

1

-

-

130

-

-

1

-

-

71

-

-

16
20
23
15

“

2
2
2
1

14
14
4

P rem ium p a y __
P rem ium pay fo r overtim e
P rem ium pay fo r w ork on h o lid a y s _______
Shift prem ium p a y ________________________

85
128
135
73

1
1
1
1

1
1
1
2

Total expenditures fo r p e n s io n s ___ ________
Past se rv ice cred its __
Current s erv ice c r e d it s ___________________

35
111
120

6
6
6

Insurance, health, and w e lfa r e ______________
Fixed con trib u tion _________________________
L ife insurance _____________________________
A ccidental death and dism em berm ent _____
A ccident and sickness b e n e fits _____ _______
H ospita liza tion . __________________________
Surgical __ _____________________ ________
M edical (other than s u r g ic a l)_____________
Othe r __ ___________________________________

31
2
208
175
194
263
277
167
76

5
1
6
2
6
4
4
2
1

L egally required p aym ents___________________
Old Age and S urvivors Insurance __ ___
Unemployment com pensation __ ________
Workmen* s com p e n s a tio n ________________
State tem porary disability in su ra n ce_____

26
34
34
24
9

2

1

8
2

A ll selected item s __ _________ _____ ________

131

~

A ll selected item s excluding prem ium pay —

72

-

-

3

2
3

5
6

6

-

17
17
3

3

-

Company could not segregate establishm ent data fro m companywide data.
Establishm ent could not segregate data fo r production and related w ork ers fro m data fo r all em p loyees.
F igu re was com bined and reported with other expenditure item s.
A pplies only to totals o f item s in each category .




Reason
not
rep orted

2
2
2
2

V acations, holidays, and sick le a v e _________
Paid vacations _
.. ..
Paid holidays _
Paid sick leave

1
2
3
4

1 95 3

54*

33

5

2

38
T A B L E 1 2 . — M e t h o d s o f e s t i m a t i n g e x p e n d it u r e s b y i t e m ,

195 3

Number of
Number of establishm ents in which estim ates were a rriv e d at by——
esta b lish ments
Calculating
Methods Method
P rorating
P rorating
providing on basis of
Other
Past
varied
among
among
not
estim ated
related
experien ce methods among
plants
e m p loy ees2
rep orted
figu res
data1
item s 3

Item

V acations, holidays, and sick leave __ __
Paid vacations ________________________
Paid holidays ___________________________
Paid sick leave __ __ ______________

64
72
109
24

40
49
78
14

8
6
9
4

_
-

1
1
1
-

3
11
13
2

8
_
-

4
5
8
4

P rem ium pay ________________ ____________
P rem ium pay for overtim e ___________
P rem ium pay fo r w ork on h o lid a y s ____
Shift prem ium p a y ____ ____ _______

61
60
33
138

27
25
20
111

8
8
1
10

_
_
-

1
1
1
2

4
8
6
6

10
_
-

11
18
5
9

Total expenditures fo r pensions _______
P ast se rv ice cred its _________________
Current s e rv ice cred its ________________

71
32
41

15
7
10

27
15
17

6
3
3

1
_
-

11
5
7

1
_
-

10
2
4

Insurance, health, and w elfare _________
F ixed co n tr ib u tio n ____ __ _______
L ife insurance __ ___________ ________
A ccidental death and dism em berm ent _
A ccid ent and sickness b e n e fits _______
H ospitalization __ ______ ______ ___
S urgical __ ________________ _________
M edical (other than s u r g ic a l)___________
Othe r ________________________________

130
17
68
28
51
47
40
15
13

35
9
17
6
14
17
17
6
4

49
5
19
4
16
13
9
1
3

2
_
4
1
3

20
1
13
6
7
7
6
4
4

2
_
_
_
_

1
-

6
_
7
4
4
1
2
2
-

*

16
2
8
7
7
9
6
1
2

L ega lly required p a y m e n ts _______ *________
Old Age and S urvivors In s u ra n c e ______
Unemployment com pensation __ ____
W ork m en 's co m p e n s a tio n ______________
State tem p orary disability in su ra n ce___

65
94
101
106
7

9
25
24
15
3

27
38
42
32
2

4
4
5
7
-

1
2
3
10
-

8
10
12
20
1

8
_
_
-

8
15
15
22
1

__

14

1

4

-

-

-

8

1

.... _

17

1

4

-

-

-

11

1

A ll selected item s _
A ll selected item s
excluding prem ium pay

-

-

-

_

1 Estim ate was a rriv ed at by applying an average rate or predeterm ined co st to appropriate number o f h ou rs, days,
weeks^ m onths, w o rk e rs , etc.
A rriv e d at by using ratio o f production and related w orkers to total em p loy ees.
A pplies only to totals of item s in each category.




39

Although these m e t h o d s of estimation a ppear to be quite r e a ­
sonable, they have shortcomings in precision, at least in principle.
U s i n g a n a verage hourly or w e e k l y w a g e and the a v erage n u m b e r of
w o r k e r s in computing holiday and vacation expenditures, for example,
m a y fail to take account of absenteeism, ineligibility, or other fac­
tors affecting such expenditures. Prorating expenditures m a y result
in a disproportionate share being attributed to one group because of
differences in earnings levels, programs,, etc.
Other possibilities,
including simple arithmetical errors, m a y also influence these e s ­
timates.
H o w e v e r , recognizing the possibilities of overstatement,
u n derstatement or error, the question insofar as expenditure surveys
are c o n c e r n e d remains: A r e estimates so unreliable as to introduce
a n appreciable overall bias into aggregate expenditure data and, if so,
in w h a t direction? This question will be examined, along with other
factors affecting expenditure levels, in the following section.







41

Factors Affecting Expenditure Levels

Expenditure levels for selected items of supplementary r e ­
m u n e r a t i o n a n d ratios of expenditures to payrolls, m a n - h o u r s , an d
e m p l o y m e n t vary widely a m o n g manufacturing e stablishments.
The
r e m a i n d e r of this report is devoted to an examination of the factors
m a k i n g for these differences a m o n g individual establishments in levels
of expenditures an d variations a m o n g establishment groups classified
b y industry, size, unionization, type of practice, and earnings levels.
T h e question of actual as against estimated or calculated expenditure
reporting, raised in the previous section, will be e x a m i n e d in c o n ­
nection with aggregate data.
It is important to e m p h a s i z e that the p r i m a r y purpose of
this analysis is to provide guides for the d e v e l o p m e n t of survey tech­
nique so T h e data s h o w n in the a c c o m p a n y i n g tables and referred
to in the text are not presented as m e a s u r e s of expenditure levels
applicable to manufacturing as a whole.
A m o n g responding estab­
lishments, those incurring no expenditures for the particular items
studied and those unable to provide expenditure data w e r e omitted
f r o m these tabulations.
N o attempt w a s m a d e to correct for the
varying response rates a m o n g industries an d a m o n g establishments
of different sizes, as discussed earlier in this report. A cautionary
note is app e n d e d to each table in order to discourage or prevent the
use of these data outside of their relationship to this exploratory study.
H o w e v e r , the large bo d y of expenditure information developed
in the survey can be validly used to t h row light on a variety of q u e s ­
tions important for survey planning. F o r e x a m p l e , the dispersion
that can be expected in a value or series of values (e. g. , expendi­
tures for paid vacations) to be derived f r o m a survey has practical
implications for s a m p l e design.
T h e analysis of expenditure varia­
tions in this particular study s h o w s at least the m i n i m u m range within
w h i c h variation in expenditure ratios are likely to occur in m a n u f a c ­
turing.
A distribution of expenditure ratios a m o n g a larger group of
establishments might reveal a greater range; obviously the range
w o u l d not be smaller.
Establishment Expenditure Levels
A s the tables a c c o m p a n y i n g this report show, there is a wide
range a m o n g establishments in expenditure levels for the s a m e item as
e x p r e s s e d in cents per hour, percent of payroll, and dollars per year
per e m p l oyee.
T o account for this range, it is n e c e s s a r y to c o n ­
sider, first, the factors m a k i n g for variations a m o n g establishments
in the dollar v o l u m e of expenditures and, second, the effect on relative
expenditure levels of the conversion to the ratios c o m m o n l y used to
c o m p a r e expenditures a m o n g establishments.




42

T h e type of practice and the length of time the practice w a s
in effect (the full year or less) are but two of m a n y factors deter­
m i ning an establishment1s annual expenditure for the item.
The
n u m b e r of w o r k e r s e m p l o y e d is obviously a p r i m a r y determinant,,
H o w e v e r , a s s u m i n g the s a m e e m p l o y m e n t level a m o n g establishments,
a variety of other factors appear to account for the differences in
expenditures a m o n g establishments with the s a m e paid holiday or paid
vacation practice or identical insurance and welfare p r o g r a m s for
the entire year. Listed be l o w are s o m e of these factors, other than
size of the labor force.21

S o m e Factors Accounting for Variations A m o n g Establishments in
Expenditures for Selected Items of S u p p l e m e n t a r y E m p l o y e e
R e m u n e r a t i o n (Other T h a n Size of L a b o r Force)

P a i d vacations
T y p e of vacation policy
El ig ibil ity r e quir e m e nt s
Length-of-service distribution of labor force
N u m b e r of hours paid for in vacation w e e k
W a g e level
M e t h o d of vacation p a y m e n t (e.g., regular w e e k l y
pay, percent of annual earnings, etc.)
T u r n o v e r of labor
P a i d holidays
N u m b e r of paid holidays
Practice regarding p a y m e n t for holidays falling
on nonscheduled w o r k d a y
Eligibility requirements
W a g e level
M e t h o d of computing d a y fs pa y under incentive
w a g e systems
T u r n o v e r and seasonal fluctuations in e m p l o y m e n t
A b s e n t e e i s m in holiday w e e k
P r e m i u m p a y for overtime (including p r e m i u m pay
for w e e k e n d w o r k )
V o l u m e of overtime w o r k
Practice regarding daily overtime an d w o r k on
Saturday and Sunday as such
P r e m i u m rate paid
W a g e level

Differences in accounting procedures, w h i c h m a y apply to all
of the items, although perhaps in varying degrees, a d d another c o m ­
plication to any precise explanation of differences in expenditure levels.




43

Shift p r e m i u m pay
V o l u m e of shift w o r k
Shift p r e m i u m s paid
W a g e level (where p r e m i u m s
as percent of hourly rate)

are e x p r e s s e d as

P e n s i o n plans (excluding administrative costs)
T y p e of p r o g r a m (provisions for vesting, disa­
bility and early retirement, n o r m a l retirement
age, etc.)
Level of benefits
M e t h o d o f funding (pay-as-you-go, profit-sharing,
etc.)
A m o u n t of e m p l o y e e contributions, if any
Rate and a m o u n t of funding of past service lia­
bility under self-insured funded plans
Service, sex, and age composition of covered
employees
Eligibility requirements
Rate of retirement; rate of mortality; return on
investments, etc.
Insurance, health, an d welfare plans (net expenditures,
excluding administrative costs)
T y p e of benefits provided (life insurance, h o s p i ­
talization, etc.)
Level a n d duration of benefits
C o v e r a g e of dependents and retired w o r k e r s
A m o u n t of e m p l o y e e contributions, if any
A g e a n d sex composition of c o v e r e d e m p l o y e e s
and nature of w o r k
Eligibility requirements
C l a i m experience
W a g e level
Contingency reserves; varying p r e m i u m charges,
etc.
Legally required p a y m e n t s
Rate (where experience rating or individual State
requirements are factors)
Earnings level
Location (re State t e m p o r a r y disability laws)
C o m p a n y practice (when p a y m e n t s are m a d e p r e ­
payment, delinquency and fines, etc.)
All other things being equal— i.e., type of practice, eligi­
bility requirements, w a g e levels, etc.— the conversion of equiva­
lent dollar expenditures into cents per hour,
percent of payroll,
and dollars per year per e m p l o y e e introduces the largely unrelated
influence of differences in annual m a n - h o u r s and gross payrolls and




4 4

in the nature o f e m p lo y m e n t .22 The e ffe c t o f d iffe r e n c e s in m a n ­
hour s is illu stra te d by a sim p le h y p oth etica l ex a m p le o f two e s ta b ­
lish m en ts with the sam e paid h olid a y p r a c t ic e , e m p lo y m e n t, a v e r ­
age h ou rly ea rn in gs le v e l, and e x p e n d itu re s, but with a d iffe re n t
v olu m e o f h ou rs paid fo r during the y e a r , as fo llo w s :
E s ta b lis h ­
m ent A
A v e r a g e e m p loy m en t .._____ ___ . . .
A v e r a g e h o u rly ea rn in gs ________
E xp en d itu res fo r 6 paid h o li­
days (6 X 8 X $2 X 500) . . . ______
A v e r a g e m a n -h o u rs p er y e a r ___
G r o s s p a y ro ll _____________________
E xp en d itu res p er p a y ro ll h ou r:
( E xpenditure s
)
(T o ta l m a n -h o u r s )
P e r c e n t o f p a y ro ll:
( E xp en d itu res )
( Gr o s s p a y r o ll) ~
~

E s ta b lis h ­
m ent B

500

500

$ 2 . 00

$2 o00

$ 4 8 ,0 0 0

$ 4 8 ,0 0 0

2, 100

2,000

$2, 100,000

$ 2 ,0 0 0 ,0 0 0

4 . 57 £

4 . 8£

2 .2 9 %

2 .4 %

If we w e r e to a ssu m e , fu r t h e r , that E sta b lish m en t A a v e ra g e d
100 h ou rs o f o v e r tim e w o rk p er e m p lo y e e (in clu d ed in the 2, 100
h o u rs ), paid fo r at tim e and one - h a lf, the d iffe r e n c e b etw een the two
esta b lish m en ts in p e rce n t o f p a y r o ll w ould be w id en ed , as fo llo w s :
E s ta b lis h m ent A
G r o s s p a y ro ll ___
P e r c e n t o f p a y ro ll

$ 2 , 1 5 0,0 00
2 .2 3 %

E s ta b lis h ­
m ent B
$ 2 ,0 0 0 ,0 0 0

2 .4 %

In the above e x a m p le , ex p en d itu res fo r paid h olid a y s p er
e m p lo y e e w ou ld be id e n tica l fo r the two e sta b lish m e n ts ($ 9 6 ).
H ow ­
e v e r , em p loy m en t p r a c t ic e s v a ry so w id e ly betw een e s ta b lis h m e n ts ,
owing to t u r n o v e r , a b s e n te e is m , s e a so n a lity , e t c . , that it is un­
r e a lis t ic to a ssu m e eith er a r e a l equ a lity in a v e ra g e em p loy m en t
le v e ls o r equ ivalen t annual ex p en d itu res fo r a given a v e ra g e e m p lo y ­
m ent le v e l. In oth er w o r d s , th ere is u su ally an a p p re cia b le d iffe r e n c e
betw een dividing ex p en d itu res by a v e ra g e em p loy m en t and dividin g e x ­
penditure s by the nu m ber o f w o r k e r s a ctu a lly sharing in the e x p e n d i­
tu r e . T h u s, expen diture s p er y e a r p er e m p lo y e e a re a ls o su b je ct to
a d is to rtio n a ris in g fr o m the c o n v e r s io n .
Using the above e x a m p le ,
this d isto rtio n can be illu stra te d sim p ly by a ssu m in g that out o f the
22

F o r an extended d is c u s s io n o f th ese p r o b le m s , see C om puting
the C o sts o f F rin g e B e n e fits, N ational In du stria l C o n fe re n c e B o a rd ,
Studies in P e r s o n n e l P o lic y , N o. 128, 1952.




45
a v e ra g e o f 500 e m p lo y e e s fo r E sta b lish m en t B an a v e ra g e o f 50 e m ­
p lo y e e s did not r e c e iv e 6 paid h o lid a y s, by r e a s o n o f s h o r t -t e r m
em p loy m en t, a b s e n te e is m , e t c . Thus:
E s ta b lis h ­
m ent A
A v e r a g e em p loy m en t
__ _ _
A v e r a g e nu m ber r e c e iv in g
h olid a y pay
_
_ _
E xp en d itu res fo r 6 paid
h olid a y s
A v e r a g e p er e m p lo y e e
( E xpenditur e s )
(----------------------- ) ------------------------

E sta b lis h
m en t B

500

500

500

450

$ 4 8 ,0 0 0

$ 4 3 ,2 0 0

$ 9 6 .0 0

$ 8 6 .4 0

M any o f the fa c t o r s in flu en cin g g r o s s expen ditu re le v e ls and
the com p u ted expen ditu re r a tio s am ong e sta b lish m e n ts a ls o a ccou n t
fo r ch an ges in the sam e e sta b lish m e n t fr o m one y e a r to a n oth er.
C hanges in the v olu m e o f o v e rtim e w o rk , fo r e x a m p le , not on ly m ake
fo r ch an ges in e x p en d itu res fo r p re m iu m pay but a ls o a ffe ct the p e r ­
c e n t -o f-p a y r o ll r a tio s fo r oth er ite m s . E ven with the sam e p r a c t ic e s
in e ffe c t , it is apparent that e sta b lish m e n t e x p en d itu res fo r a g iv en
item in cen ts p er hour w ou ld fluctuate fr o m y ea r to y e a r , p o s s ib ly
sim p ly as a co n s e q u e n ce o f a r is e o r fa ll in tota l m a n -h o u r s .
The
m o st unstable ex p en d itu res a re lik e ly to be fo r p re m iu m pay fo r
o v e r tim e and shift w o rk , sin ce ex p en d itu res depend la r g e ly on the
v olu m e o f such w o rk ; and ex p en d itu res fo r p e n sio n s , p a r tic u la rly
fo r funding o f past s e r v ic e lia b ility and fo r p r o fit - sharing tru st funds,
w h ich m a y be d e te rm in e d in la rg e m e a s u re by the p r o fit p o sitio n o f
the esta b lish m e n t and by ch an ges in tax la w s .
A v e r a g e E xpenditure R a tio s
With the w ide range o f expen ditu re r a tio s am ong e s t a b lis h ­
m en ts, an a rith m e tic a v e ra g e o f the e sta b lish m e n t ra tio s p r o v id e s
the m o s t con ven ien t d e v ice fo r d eterm in in g w hether th ere a re s ig n if­
icant d iffe r e n c e s in ex p en d itu res betw een e sta b lish m en ts g ro u p e d
a c c o r d in g to a co m m o n c h a r a c t e r is t ic . A s p r e v io u s ly ex p la in ed , th is
su rv e y was not d e sig n e d to p e rm it the ca lcu la tio n o f any a v e ra g e e x ­
penditu re le v e l a p p lica b le to a ll m anufacturin g o r to the sep a ra te
in d u stry g ro u p s .
H ow ev er, to m e a su re the d iffe r e n c e s in e x p e n d i­
tu re s am ong e sta b lish m e n ts a c c o r d in g to the c h a r a c t e r is t ic s u su a lly
c o n s id e r e d im p orta n t in sam pling te ch n iq u e s, such as s iz e , o r in
co n n e ctio n with a p a r tic u la r p r a c t ic e , the com p u tation o f a sin gle
fig u re re p re s e n ta tiv e o f the a r r a y w as n e c e s s a r y .
A c h o ic e betw een two ty p es o f a v e r a g e s w as p r e s e n te d .
One
w as to com p u te, if p o s s ib le , a v e r a g e s applying to a ll esta b lish m e n ts
in the su rv e y , including e sta b lish m e n ts with z e r o ex p en d itu res ( i . e . ,
no p r a c t ic e in e ffe c t o r no ex p en d itu res in c u r r e d ) and, by som e m ethod



46
o f in fe r e n c e , the esta b lish m e n ts w h ich co u ld not r e p o r t ex p en d itu res
fo r p a rticu la r ite m s * The a ltern a tiv e m eth od, w h ich w as adopted in
this su rv e y , w as to commute a v e r a g e s co v e rin g on ly e sta b lish m e n ts
re p o rtin g an e x p e n d itu re « 3
The c h ie f advantage o f an a v e ra g e o f expen ditu re r a t io s , a sid e
fr o m its g r e a te r fle x ib ility in u se , la y in p e rm ittin g the exa m in a tion
o f ex pen ditu re v a ria tio n s apart fr o m v a ria tio n s in the p re v a le n ce o f the
individual p r a c t i c e s .
C o m p a riso n s am ong esta b lish m e n t g rou p s in
p en sion ex p e n d itu re s, fo r e x a m p le , w ou ld thus be lim ite d to e s t a b lis h ­
m ents having a p en sion plan in e ffe c t (and able to r e p o r t ex p en d itu res
fo r the y e a r ).
The s p e cia l c h a r a c te r o f such a v e r a g e s and th e ir
lim ita tio n s should be b orn e in m ind; o b v io u s ly the data d is c u s s e d in
the fo llo w in g p ages should not be im pu ted to any la r g e r sam ple o r
g rou p o f e sta b lish m e n ts w h ich w ould in clu d e e sta b lish m e n ts without
the p a r tic u la r p r a c t ic e in e ffe c t .
A ctu a l and E stim a te d R e p o rtin g . — In the p re v io u s s e ctio n o f
this r e p o r t , the q u estion w as r a is e d as to w hether the re p o rtin g o f
e stim a te d o r ca lcu la te d fig u r e s in p la ce o f actu al fig u r e s in tro d u ce d
an a p p re cia b le b ia s into a g g re g a te data.
C o m p a ris o n s o f a v e ra g e
expen ditu re r a tio s betw een e sta b lish m e n ts p rov id in g actu al fig u re s
and th ose p ro v id in g e stim a te d fig u r e s show ed r e la tiv e ly sligh t and
in co n siste n t d iffe r e n c e s fo r the ite m s studied.
V irtu a lly no s ig n ifi­
cant d iffe r e n c e w as r e fle c t e d by the a v e r a g e s fo r actual fig u r e s and
fo r a ll re p o rtin g e sta b lish m e n ts co m b in e d ; that is , the in clu sio n o f
e stim a te d fig u r e s had only a n e g lig ib le e ffe c t on o v e r a ll data.
In c e n t s - p e r - p a y r o l l h ou r, the la r g e s t d iffe r e n c e s betw een
the a v e r a g e s fo r actual fig u r e s and fo r a ll r e p o r ts am ong the in ­
dividu al ite m s (ex clu d in g f,a ll s e le c te d it e m s 1* and f,a ll s e le c te d ite m s
exclu d in g p re m iu m pay**) am ounted to 0 .2 cen ts fo r total p re m iu m
pay (table 13).
F o r a ll oth er ite m s , the a v e ra g e s w e re id e n tica l o r
d iffe r e d by 0 .1 ce n t.
In a v e ra g e p e rce n t o f p a y r o ll, no d iffe r e n c e
2 3

The fo r m u la s fo r com puting the r a tio s u se d —cent 9 -pen -pay­
r o ll hojir^ c e n t s - p e r - a d ju s t e d - p a y r o ll h ou r, p e rce n t o f p a y r o ll, and
ex p en d itu res p er e m p lo y e e p e r y e a r — w e r e d e s c r ib e d in the fir s t s e c ­
tion o f this r e p o r t . The a v e ra g e ra tio is a sim p le a rith m e tic a v e ra g e
o f the e sta b lish m e n t r a t io s , w hich was the a v e ra g in g d e v ice co n te m ­
p lated in the sa m p le d e sig n . T h is fo r m o f a v e ra g e is in flu en ced by
the s iz e (em p lo y m e n t) o f the e sta b lish m e n ts in the sa m ple b e ca u se
o f the v a ry in g p ro p o r tio n s o f e sta b lish m e n ts in ea ch s iz e c la s s that
w e re in clu d ed . F o r e x a m p le , an esta b lish m en t em p loy in g 100 w o r k e r s
had an eq u iva len t w eight in the tabu lation s to one o f 1 ,0 0 0 w o r k e r s .
H ow ev er, the sm a ll e sta b lish m e n t had on ly about o n e -te n th the ch an ce
o f in c lu s io n o f the la r g e r e sta b lish m e n t. T hu s, e a ch b lo c k o f 1 ,0 0 0
w o r k e r s — e . g . , th ose in 10 e sta b lish m e n ts o f 100 w o r k e r s e a ch o r in
1 esta b lish m e n t o f 1 ,0 0 0 w o r k e r s — had a p p ro x im a te ly equal in flu en ce
on the a v e r a g e s .



47
T A B L E

1 3 . ——A v e r a g e

e x p e n d itu r e s

p e r p a y r o ll h o u r fo r

r e p o r tin g

A il r e p o r t s

Item

N u m b er
of
e sta b ­
lis h m e n ts
r e p o r t in g
e x p e n d i­
tu re s

A v era g e
per
p a y r o ll
h our
(ce n ts )

e s ta b lis h m e n ts

o n ly *

A c tu a l fig u r e s
N um be r
of
esta b ­
lis h m e n ts
r e p o r t in g
e x p e n d i­
tu re s

A v era g e
per
p a y r o ll
h our
(ce n ts )

b y ite m

a n d n a tu re

E s tim a te d fig u r e s
N um ber
of
esta b ­
lis h m e n ts
r e p o r t in g
e x p e n d i­
tu r e s

A v era g e
per
p a y r o ll
h ou r
(ce n ts )

of r e p o r t,

1953

S om e a ctu a l;
s o m e e s t im a t e d 1
N u m ber
of
A v era g e
esta b ­
per
p a y r o ll
lis h m e n ts
h ou r
r e p o r t in g
e x p e n d i­
(ce n ts )
tu r e s

V a ca tio n , h o lid a y s , and s i c k le a v e —----------- ----P a id v a c a t i o n s ------- -----------------------------------------P a id h o l i d a y s ------------------------------- —-----------------P a id s i c k l e a v e --------------------------------------------------

528
524
471
87

9 .2
5. 8
3 .4
1 .7

408
452
362
63

9. 1
5 .8
3 .4
1. 7

64
72
109
24

9 .3
5. 6
3. 6
1 .7

56

P r e m iu m p a y --------------------------------------------------------P r e m iu m p a y f o r o v e r t i m e --------- -------------------P r e m iu m p a y f o r w o r k on h o l i d a y s -------------Shift p r e m iu m p a y ------------------ ------- ------------------

454
406
103
361

9. 1
7 .2
.5
2 .4

292
346
70
22 3

8 .9
7. 3
.5
2 .5

61
60
33
138

8 .5
6. 7
.5
2 .4

101
-

-

-

-

T ota l e x p e n d itu re s f o r p e n s i o n s ------- ------------------P a s t s e r v ic e c r e d it s —---------------------- -------------C u rr e n t s e r v ic e c r e d i t s ----------------------------------

2 71
104
185

7 .0
3 .8
4 .9

196
72
144

6 .9
3 .9
4 .9

71
32
41

7 .4
3. 7
4 .9

4

(2 )

-

-

-

-

I n s u r a n c e , h ealth , and w e lfa r e ------------------- ------F ix e d c o n t r i b u t i o n -------------------------------------------L ife i n s u r a n c e ------------------ —-----------------------------A c c id e n t a l death and d is m e m b e r m e n t --------A c c id e n t and s ic k n e s s b e n e f i t s ------ ---------- ----H o s p it a l i z a t io n -------------------------------- -— ------------S u r g i c a l -------------------------- ----------------------------------M e d ic a l (oth er than s u r g i c a l ) ------------------------O th er --------------------------------------------------------------------

482
92
196
64
153
124
103
32
22

3. 1
2 .9
.8
. 1
1. 1
1. 1
.5
.3
.6

334
75
128
36
102
77
63
17
9

3. 1
2 .9
.9
. l
1 .2
1. 1
.6

3. 1
(2 )
.8
. 1
.9
1 .0
.5
(?)
<2 )

18

(*)
-

{a!
(*>.

130
17
68
28
51
47
40
15
13

-

-

L e g a lly r e q u ir e d p a y m e n t s --------------- -----------------O ld A g e and S u r v iv o r s I n s u r a n c e ----------------U n em p loy m en t c o m p e n s a t i o n ------------------------W o r k m e n 's c o m p e n s a t i o n -------------------------------State t e m p o r a r y d is a b ilit y i n s u r a n c e -----------

524
516
515
517
38

6 .5
2 .5
2 .3
1 .6
. 7

387
422
414
411
31

6 .5
2 .5
2 .3
1 .7
.7

65
94
101
106
7

6 .2
2 .5
2 .2
1 .5
C2 )

72

6 .4
“

(2 )

240

3 1 .4

(2 )

211

2 3 .6

A ll s e le c t e d i t e m s ----------------------------- ------- ——-------

419

3 0 .8

165

29 . 7

14

A l l s e le c t e d ite m s ex c lu d in g p r e m iu m p a y ------

478

2 2 .2

250

2 0 .8

17

10. 0

-

-

-

-

“

-

-

“
9 .8
-

-

-

-

-

-

-

-

-

1 A p p lie s o n ly to to ta ls o f ite m s in e a c h c a t e g o r y ,
2 N u m ber o f e s ta b lis h m e n ts to o s m a ll to ju s t ify co m p u ta tio n o f an a v e r a g e .
* The a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s stu d ied w e r e e x c lu d e d in the c o m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts unable to p r o v id e
e x p e n d itu re data.




4 8

g re a te r than 0. 1 p e rce n t a p p ea red ; m o s t o f the a v e r a g e s w e r e id e n tica l
(tab le 14).
The sta b ility o f the a v e ra g e s fo r a ll r e p o r t s co m b in e d is
fu rth er illu stra te d by the data on ex p en d itu res p er e m p lo y e e p er y e a r
(table 15) w h ich r e v e a le d a m a xim u m d iffe r e n c e
(fo r total p re m iu m
pay) o f $4 a y ea r per e m p lo y e e as m e a s u re d again st an a v e ra g e
expen ditu re le v e l o f c lo s e to $ 2 0 0 .
The a v e r a g e s fo r actual and e stim a te d r e p o r t s , as shown in
th ese th re e ta b le s , w e re re m a rk a b ly c lo s e , co n s id e r in g the sm a ll
nu m ber o f o b s e rv a tio n s upon w h ich they w e re b a s e d .
D iffe r e n c e s o f
th ese s m a ll m agn itu des can be ca u se d by a nu m ber o f fa c t o r s oth er
than estim a tin g e r r o r s .
In sh o rt, no e v id e n ce o f a co n s iste n t b ia s ,
upw ards o r d ow n w ards, was p re se n te d by th ese c o m p a r is o n s .
On the oth er hand, the a v e ra g e s fo r v a ca tio n s , h olid a y , and
s ic k lea v e ex p en d itu res co m b in e d , fo r total p re m iu m pay, fo r ,!a ll
s e le c te d ite m s , ,! and fo r " a ll s e le c te d item s ex clu d in g p re m iu m pay
pay, " w h ich w e re b a se d on fig u r e s in part actual and in p art e stim a te d ,
w e r e co n s is te n tly h igh er than the a v e ra g e s b a se d upon a ll r e p o r ts
(ta b le s 13, 14, 15). T his m ay have b een , in p art, the co n se q u e n ce o f
re p o rtin g e r r o r s , although it is im p o s s ib le to d e te rm in e to what extent
the e r r o r s la y in the e stim a te d p o rtio n o f th ese fig u r e s . An o v e rla p
o f the e s t a b lis h m e n t s actual fig u r e s and its e s tim a te s m ay have b een
r e s p o n s ib le fo r an o v e rsta te m e n t in th ese to ta ls . It is a ls o p o s s ib le
that the esta b lish m e n ts re p o rtin g on this b a s is had m o r e individual
ite m s in e ffe c t than the e sta b lish m e n ts p ro v id in g actual fig u r e s . A t
any ra te , the im p a ct o f th ese fig u r e s on the a v e ra g e s fo r a ll r e p o r ts
w as sligh t o r n e g lig ib le .24.
W ithout d is m is s in g as in con seq u en tia l the p r o b le m attach ed
to obtaining e stim a te d ex p en d itu res and the n eed fo r m o r e exhaustive
scru tin y o f e sta b lish m e n t re p o rtin g o f e x p en d itu res b a se d in part on
e s tim a te s , th e re a p p e a rs to be no p r e s s in g n eed to p re se n t actu al
and estim a te d data se p a ra te ly in the tabu lation s a cco m p a n y in g this
r e p o r t . In the a ccom p a n y in g d is c u s s io n , the c o n c lu s io n s draw n fr o m
the com b in e d data w ould not be sig n ifica n tly d iffe re n t if they w e re to
be b a se d s o le ly on actual fig u r e s .
E xp en d itu res p er A d ju sted P a y r o ll Hour. ------A s p r e v io u s ly
noted, e sta b lish m e n t ex p en d itu res can be re la te d , with m ean in g, eith er
to total m a n -h o u rs paid fo r ( c e n t s - p e r - p a y r o ll h ou r) o r to an adju sted
h ou rs total om ittin g the v a ca tio n , h olid a y , and s ic k lea v e h ou rs paid
fo r and taken (c e n t s -p e r -a d ju s t e d -p a y r o ll h o u r). In the a ccom p a n yin g
ta b le s , one o r the oth er c e n t s -p e r -h o u r ra tio w as u sed , but not

24 It is n otew orth y that in the ca s e o f tota l p re m iu m pay the
a v e ra g e s fo r the e stim a te d and the p a r tia lly e stim a te d fig u r e s d iffe r e d
in op p o site d ir e c tio n s fr o m the a v e ra g e o f actual fig u r e s .




49
T A B L E

1 4 .— A v e r a g e

e x p e n d itu r e s

as

p e r c e n t o f p a y r o ll fo r

r e p o r tin g

A ll r e p o r t s

Item

N u m ber
of
esta b ­
lis h m e n ts
r e p o r t in g
e x p e n d i­
tu r e s

A v era g e
percen t
of
p a y r o ll

e s ta b lis h m e n ts

A ctu a l fig u r e s
N u m ber
of
esta b ­
lis h m e n ts
r e p o r tin g
e x p e n d i­
tu re s

A v era g e
percen t
of
p a y r o ll

o n ly *

b y ite m

and n a tu re

E s tim a te d fig u r e s
N u m ber
of
e sta b ­
lis h m e n ts
r e p o r t in g
e x p e n d i­
tu r e s

A v era g e
percent
of
p a y r o ll

of rep o rt,

1953

S om e a ctu a l;
s o m e e s t im a t e d 1
N um ber
of
A v era g e
esta b ­
percen t
lis h m e n ts
of
r e p o r t in g
p a y r o ll
e x p e n d i­
tu re s

V a c a tio n s , h o lid a y s , and s i c k l e a v e -----------------P a id v a c a tio n s ---------- *------------------------------------—
P a id h o l i d a y s ---------------------------------- -----------------P a id s i c k le a v e -------------------------------------------------

528
524
471
87

4 .9
3. 1
1 .8
.9

408
452
362
63

4. 8
3. 1
1 .8
.8

64
72
109
24

4. 8
2 .9
1 .9
.9

P r e m iu m p a y -------------------------------------------------------- P r e m iu m pay f o r o v e r t im e --------------------------P r e m iu m p a y f o r w o r k on h o l i d a y s -------------Shift p r e m iu m p a y ------------------------------------------ —

454
406
103
361

4 .8
3 .9
.3
1 .2

292
346
70
223

4. 7
3 .9
.3
1 .2

61
60
33
138

4. 7
3 ,8
.3
1 .2

101
_
*

-

T o ta l e x p e n d itu re s f o r p e n s i o n s ------------------------P a s t s e r v ic e c r e d it s -------------------------------- ------ C u rr e n t s e r v ic e c r e d it s ----------------------------------

271
104
185

3. 5
1 .9
2. 5

196
72
144

3. 5
1 .9
2 .4

71
32
41

3. 8
2 .0
2. 5

4
_

(2 )

-

-

I n s u r a n c e , h ea lth , and w e lfa r e — ---------------------F ix e d c o n tr ib u tio n ------------------------------------------L ife in s u r a n c e --------------- ------------------------ ---------A c c id e n t a l death and d is m e m b e r m e n t --------A c c id e n t and s ic k n e s s b e n e fits -------------- ------H o s p ita liz a tio n ------------------------------------------------S u r g ic a l ---------------------------------- --------------------------M e d ic a l (oth er than s u r g i c a l ) --------------- ------—
O t h e r --------------------------------------------------------------------

482
92
196
64
153
124
103
32
22

1. 7
1 .6
.5
(3 )
.6
.6
.3
.1
.4

334
75
128
36
102
77
63
17
9

1. 7
1 .6
.5
(3 )
.6
.6
.3
(2 )
(2 )

130
17
68
28
51
47
40
15
13

1, 7
(2 )
.4
(3 )
.5
.6
.3
(2 )
(2 )

18
_
_
_

(2 )

-

-

L e g a lly r e q u ir e d p a y m e n ts --------------------- ------------Old A g e and S u r v iv o r s In s u ra n ce ----------------U n em p loy m en t c o m p e n s a t i o n --------------------- -—
W o r k m e n ’ s c o m p e n s a t i o n ---- ---------------------------State t e m p o r a r y d is a b ilit y in s u r a n c e ----------

524
516
515
517
38

3 .6
1 .4
1 .3
.9
.4

387
422
414
411
31

3. 7
1 .4
1 .4
.9
.4

65
94
101
106
7

3. 3
1 .4
1 .2
.8
(2 )

72

A l l s e le c t e d ite m s -------------------------------------------------

419

1 6 .5

165

1 5 .9

14

(2 )

240

1 7 .0

A ll s e le c t e d ite m s e x c lu d in g p r e m iu m p a y ------

478

1 1 .9

250

1 1 .3

17

(2 )

211

12. 6

56
■
-

5. 3
_
>

-

5 .2
_
_

_
_

-

-

_

_

_

_

-

3. 6

_

_

-

-

-

-

-

-

1 A p p lie s o n ly to to ta ls o f ite m s in e a c h c a t e g o r y .
2 N u m b er o f e s ta b lis h m e n ts to o s m a ll to ju s t ify c o m p u ta tio n o f an a v e r a g e .
3 L e s s than 0 .0 5 p e r c e n t .
* T h e a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s
f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts una ble to p r o v id e
ex p en d itu re data.




5 4%

50
T A B L E

1 5 ,— A v e r a g e

e x p e n d itu r e ®

per

year per

e m p lo y e e

fo r

r e p o r tin g

A ll r e p o r t s

Item

e s ta b lis h m e n t®

o n ly *

b y ite m

an d n a tu re

of r e p o r t,

1953

S om e a ctu a l;
fig u r e s
s o m e e s t im a t e d 1
N u m ber
N u m ber
A v era g e
A v era g e
A v era g e
of
of
esta b ­
esta b ­
per
per
per
lis h m e n ts
year
year
year
lis h m e n ts
r e p o r t in g
r e p o r tin g
per
per
per
e m p lo y e e e x p e n d i- e m p lo y e e e x p e n d i­ e m p lo y e e
tu r e s
‘ tu re s
E s tim a te d fig u r e s

A ctu a l

N u m ber
N u m ber
A v era g e
of
of
per
esta b ­
esta b ­
lis h m e n ts
year
lis h m e n ts
per
r e p o r t in g
r e p o r t in g
e x p e n d i­ e m p lo y e e e x p e n d i­
tu re s
tu r e s

V a c a tio n s , h o lid a y s , and s i c k l e a v e -----------------P a id v a c a tio n s -------*------------------- ----------------------P a id h o l i d a y s ----------------------------------------------------P a id s i c k l e a v e ---------------------------------------------------

528
524
471
87

$19 2
120
72
37

408
452
362
63

$19 0
120
71
37

64
72
109
24

$ 19 3
118
75
37

56

$ 21 0

-

-

P r e m iu m p a y ----------------------------------------------------------P r e m iu m p a y f o r o v e r t im e ---- --------------- --------P r e m iu m p a y f o r w o r k on h o lid a y s -------------Shift p r e m iu m p a y --------------------------- -------------- -

454
406
103
361

196
158
12
51

292
346
70
223

192
159
11
52

61
60
33
138

T o ta l ex p e n d itu r e s f o r p e n s i o n s ---------------------—
P a s t s e r v ic e c r e d i t s ----------------------------------------C u rr e n t s e r v ic e c r e d it s -----------------------------------

271
104
185

149
81
104

196
72
144

148
83
104

71
32
41

In s u r a n c e , h ea lth , and w e lfa r e —— ---------------------F ix e d c o n tr ib u tio n — ----------------------------------------L ife in s u r a n c e -------------------------------------------------A c c id e n t a l death and d i s m e m b e r m e n t ---------A c c id e n t and s ic k n e s s b e n e f i t s ---------------------H o s p it a l i z a t io n --------------------------------------------------S u r g i c a l -------------------------------------------—-------------- —
M e d ic a l (o th e r than s u r g i c a l ) -------------------- —
O t h e r --------------------------------------------------------------------

482
92
196
64
153
124
103
32
22

65
59
18
2
23
22
11
6
12

334
75
128
36
102
77
63
17
9

65
59
18
2
25
22
12

130
17
68
28
51
47
40
15
13

L e g a lly r e q u ir e d p a y m e n t s ---------------------------------O ld A g e and S u r v iv o r s I n s u r a n c e ----------------- U n em p loy m en t c o m p e n s a t io n ------------- ----------W o r k m e n 's c o m p e n s a t i o n -----------------------------State t e m p o r a r y d is a b ilit y i n s u r a n c e ------------

524
516
515
517
38

135
52
47
34
15

387
422
414
411
31

136
52
48
35
15

A l l s e le c t e d i t e m s ------- ------------------------------------------

419

649

165

A ll s e le c t e d ite m s e x c lu d in g p r e m iu m p a y ------

478

464

250

,

-

-

-

-

188
148
13
49

101

210
-

155
77
106

-

-

-

-

4
-

(2 )
-

65
(2 )
17
3
18
21
11
<*>
(2 )

18

(2 )

65
94
101
106
7

128
52
46
31
(2 )

72
-

-

62 7

14

(2 )

240

663

434

17

(2 )

211

496

0

(2 )

-

-

_
-

_
_
_
-

-

-

132
-

-

1 A p p lie s on ly to to ta ls o f ite m s in e a ch c a t e g o r y .
2 N u m b er o f e s ta b lis h m e n ts to o s m a ll to ju s t ify c o m p u ta tio n o f an a v e r a g e .
* The a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s
f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the c o m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts una ble to p r o v id e
e x p en d itu re data.




51

both,25
T h e general relationship b e t w e e n the averages c o m p u t e d on
the basis of total m a n - h o u r s and of adjusted m a n - h o u r s is s h o w n in
table 16. O n the whole (and considering the possible effects of r o u n d ­
ing), the averages b a s e d on adjusted m a n - h o u r s w e r e about 5 percent
higher than those b a s e d on total payroll hours.
Variations b y Size of Establishment.— Although expenditures
varied widely a m o n g establishments in each of the five size classifica­
tions used, on the average large establishments h a d higher expenditure
ratios than small establishments on the s u m of all the items of supple­
m e n t a r y e m p l o y e e rem u n e r a t i o n studied and on m o s t of the individual
voluntary practices. T h e reverse order, however, held for specific
items such as p r e m i u m pay for overtime an d legally required p a y ­
me n t s . T h e s e relationships are set forth in t e r m s of cents-per-pay­
roll hour (table 17) an d percent of payroll (table 18).
F o r paid vacations, paid holidays, paid sick leave, an d the
total for this group, cents-per-hour and percent~of“ payroll averages
increased progressively with the increase in the size classification.
F o r example, average expenditures per payroll hour for paid vacations
r a nged f r o m 4 cents for establishments with fewer than 100 w o r k e r s
to about 7 cents for establishments with m o r e than 5,000 w o rkers.
In percent of payroll, the corresponding range w a s f r o m 2.4 percent
to 3.5 percent. Although the size variations in cents per hour w e r e
undoubtedly influenced by differences in earnings levels, the variation
in percent of payroll for these items indicates that, on the average,
practices a m o n g the size classes differed in their liberality or in their
effect.
Expenditures for overtime p r e m i u m pay reflected a contrary
tendency; that is, in cents per hour and percent of payroll the averages
d e c r e a s e d s o m e w h a t as the size category increased, with but one e x ­
ception. H o w e v e r , average expenditures for shift p r e m i u m pay w e r e
m a r k e d l y higher for the larger establishments, as w a s average total
p r e m i u m pay.
P e n s i o n expenditures per hour and as a percent of payroll
w e r e not notably different a m o n g the size classes; for insurance b e n e ­
fits, cents-per-hour expenditures w e r e higher for the larger establish­
ments, but percent-of-payroll averages w e r e at approximately the s a m e
level.
Legally required p a y m e n t s represented a progressively smaller
percent of payroll, on the average, as the establishment-size g r o u p ­
ings increased. T h e s a m e situation w a s reflected in t e r m s of cents

25 Similarly, expenditures per e m p l o y e e per year are not s h o w n
for all b r e a kdowns.




52
T A B L E 1 6 .— D iffe r e n c e betw een a v e r a g e e x p e n d itu re s p e r p a y r o ll h ou r and a v e r a g e e x p e n d itu re s p e r a d ju s te d p a y r o ll h o u r, 1
f o r r e p o r tin g e s ta b lis h m e n ts o n ly * by ite m , 1953
D iffe r e n c e
A v era ge
per
p a y r o ll
hour
(ce n ts )

A v era ge
per
a d ju ste d
p a y r o ll
h ou r 1
(ce n ts )

V a c a tio n s , h o lid a y s , and s ic k le a v e ------ ---------P a id v a c a tio n s ----------- -— —---------- ------------------P a id h o l i d a y s -------------- —-----------------------------------P a id s i c k le a v e ----- ------—---------------------- -— -------

9 .2
5. 8
3 .4
1. 7

9 .8
6. 1
3. 7
1 .9

P r e m iu m pay --------------------------------------------------------P r e m iu m p a y f o r o v e r t i m e ----------------------------P r e m iu m p a y f o r w o r k on h o lid a y s -------------Shift p r e m iu m pay — —-------------------------------------

9. I
7, 2
.5
2 .4

9.
7.
.
2.

T o ta l e x p e n d itu r e s f o r p e n s io n s ----------- ------------P a s t s e r v ic e c r e d it s ----------- ----- ----------- —------—
C u rr e n t s e r v ic e c r e d it s — --------------------- —------

Item

Cen ts

P ercen t2

0 .6
.3
.3
.2

6 .5

5
6
6
6

.4
,4
.1
.2

4 .4

7 .0
3. 8
4 .9

7 .4
4. 0
5 .2

.4
.2
,3

5. 7

In s u r a n c e , h ealth , and w e lfa r e ■— ---------- ----------F ix e d co n tr ib u tio n ---------------- —----------------------L ife in s u r a n c e ------------- ----------------—----------------A c c id e n t a l death and d is m e m b e r m e n t —— —
A c c id e n t and s ic k n e s s b e n e f i t s ---------------------H o s p ita liz a tio n
— -------------------------------------- —
S u r g i c a l -------------- --------- --------------------------------------M e d ic a l (oth er than s u r g ic a l) ------- ------ --------O ther -------- ------------------------------- —--------- -------------

3. 1
2 .9
.8
. 1
1. 1
1. 1
.5
.3
. 6

3.3
3. 1
.9
. 1
1 .2
1. 1
.6
.3
. 7

.2
.2
.1
. 1
, 1
.1

6. 5

L e g a lly r e q u ir e d p a y m e n t s ------ ---------------------------O ld A g e and S u r v iv o r s I n s u r a n c e -----------------U n em p loy m en t co m p e n s a tio n ----------- ■------------W o r k m e n 's c o m p e n s a t i o n -------------------------------State t e m p o r a r y d is a b ilit y in s u r a n c e ----------

6. 5
2 .5
2,3
1 .6
. 7

6. 8
2. 6
2 .4
1. 7
.8

.
.
.
.
.

3
1
1
1
1

4. 6

A ll s e le c t e d i t e m s -------------—— — ----------- -------------

30. 8

32. 5

1 .7

5. 5

A ll s e le c t e d ite m s ex clu d in g p re m iu m p a y ------

2 2 .2

23. 5

1 .3

5 .9

1 A d ju s te d p a y r o ll h o u rs = to ta l p a y r o ll h o u rs le s s v a c a tio n , h o lid a y , and s i c k le a v e h o u rs pa id f o r and taken.
2 C om pu ted on ly f o r to ta ls o f ite m s in e a ch c a t e g o r y .
* T he a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s
f o r the p a r t ic u la r ite m s stu d ied w e r e e x clu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e
exp en d itu re data. 5




5 4%

53
T A B L E 17.-

—
Expenditures per payroll hour for reporting establishments only*
by item and size of establishment, 1953
N u m b e r o f e s ta b lis h m e n ts r e p o r t in g e x p e n d itu r e s of—

Item and s iz e o f e s ta b lis h m e n t

of
A v era g e
e s t a b lis h ­
per
m e n ts
p a y r o ll
r e p o r tin g
hour
e x p e n d i­
(ce n ts )
tu r e s

4
6
2
and
U nder and
and
u nd er u n d er u nd er
2
6
8
ce n ts
4
cen ts ce n ts ce n ts

10
8
12
and
and
and
u n d er u n d er u n d er
10
12
14
c e n ts ce n ts c e n ts

16
18
M
and
and
and
u nd er under u nd er
18
20
16
ce n ts c e n ts ce n ts

20
ce n ts
and
over

V a c a tio n s , h o lid a y s , and s ic k
le a v e _ __ ------------------------ -------U nder 100 e m p lo y e e s ____ __
100 - 499 e m p l o y e e s ______ __
500 - 999 e m p l o y e e s ________ _
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ----5 ,0 0 0 and o v e r ________________

528
37
152
76
200
63

9 .2
6. 3
7 .4
8. 8
10. 5
12. 0

22
6
12
3
1
-

35
3
17
4
11
-

49
9
23
7
9
1

78
6
32
15
17
8

122
7
34
21
51
9

103
4
20
13
54
12

60
1
6
6
30
17

P a id v a c a tio n s _____ ______ _____
U nder 100 e m p lo y e e s _
100 - 499 e m p lo y e e s ... _ _ _
500 - 999 e m p lo y e e s ________
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ____
5 ,0 0 0 and o v e r __ _____ __ __

524
39
150
76
197
62

5. 8
4. 0
4 .6
5 .4
6 .6
7 .2

34
9
19
5
1
-

98
13
45
15
21
4

158
9
50
27
59
13

140
—
21
24
67
22

63
1
11
3
31
17

22
1
4
13
4

7
1
4
2

2
1
1
- -

P a id h o lid a y s
_______________ __
U nder 100 e m p lo y e e s _ __ __
100 - 499 e m p lo y e e s __ __ __
500 - 999 e m p lo y e e s __ _ __
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ____
5 ,0 0 0 and o v e r —______________

471
31
124
70
186
60

3 .4
2. 7
3. 0
3. 3
3. 7
3 .9

61
9
26
11
11
4

245
16
70
37
98
24

147
5
25
20
69
28

17
1
3
1
8
4

_
-

1
1
-

_
-

„
-

“

-

-

-

-

P a id s ic k le a v e _ __ ________ __
U nder 100 e m p lo y e e s _ __ __
100 - 499 e m p lo y e e s __ _____
500 - 999 e m p lo y e e s ---------- 1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s __ _
5 ,0 0 0 and o v e r __ _____ _____

87
5
19
11
32
20

1. 7
0 )
.8
(M
2. 1
2. 5

56
4
18
8
19
7

23
1
3
9
10

7
1
3
3

_
-

_
-

_
-

_
-

_
-

_
-

_
_

-

P r e m iu m p a y ------------------------------------U n der 100 e m p lo y e e s ___ __
100 - 499 e m p lo y e e s _____ __
500 - 999 e m p l o y e e s ________
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ----5 ,0 0 0 and o v e r __________ _____ _

454
37
130
64
164
59

9. 1
7 .4
8 .4
8 .4
9 .7
10. 3

49
9
24
9
7
-

64
7
17
10
24
6

52
4
14
11
22
1

60
3
17
6
25
9

16
4
1
10
1

26
2
7
4
10
3

O v e rtim e p r e m iu m p a y _________
U nder 100 e m p l o y e e s ----------100 - 499 e m p lo y e e s ________
500 - 999 e m p lo y e e s ______ __
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r

406
35
125
60
145
41

7. 2
7. 5
7. 5
6 .9
7 .2
6. 7

68
9
28
13
18
-

77
6
22
9
28
12

64
3
14
10
28
9

P r e m iu m pay f o r w o r k on
h o lid a y s _ __ _
.. __ __
U nder 100 e m p lo y e e s _ _
100 - 499 e m p l o y e e s ________
500 - 999 e m p lo y e e s — __
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r _______________ _

103
3
20
18
50
12

.5
......~ V T
.2
.5
.6
(l )

94
1
20
17
45
11

8
2
1
4
1

Shift p r e m iu m p a y _ __
_ __
U nder 100 e m p lo y e e s _
100 - 499 e m p l o y e e s ________
500 - 999 e m p lo y e e s __ _ _
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r __ __
__ __

361
7
92
49
159
54

2 .4
P T ~
1 .4
2. 1
2. 7
3 .9

170
5
66
27
65
7

P e n s io n s ( t o t a l ) __ ____________________
U nder 100 e m p lo y e e s _ _____
100 - 499 e m p l o y e e s ------------500 - 999 e m p lo y e e s __
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r _______________

271
5
45
39
136
46

7. 0
(M
6. 8
7 .0
6. 7
7. 7

In s u ra n ce (tota l) __ __
____
U n d er 100 e m p lo y e e s
____
100 - 499 e m p l o y e e s ________
500 - 999 e m p lo y e e s __ __
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r _ _ _ _ _

482
29
132
76
188
57

3. 1
2 .8
3 .0
3. 1
3 .2
3.4

-

33
1
7
3
13
9

10
1
7
2

3
■*1
1
1

_
-

_
-

-

_
-

-

_
-

_
-

_
-

-

1
1
“

-

-

56
2
20
5
14
15

47
4
6
7
16
14

36
4
7
3
19
3

22
7
1
9
5

26
2
7
7
8
2

49
3
16
6
17
7

41
4
9
8
15
5

30
3
8
4
11
4

26
3
6
2
13
2

20
10
2
7
1

14
2
4
4
3
1

3
1
1
1
-

14
2
7
1
4
-

1
1
-

_
_
_
-

_
-

_
-

_
..
_
_

_
_
_

_
_
_
_

_
_
_
_

_
_
_
_

-

-

-

-

-

138
1
24
17
67
29

27
1
2
2
12
10

21
_

_

3
12
6

5
_
_
_
3
2

_
_

_
_
_
_

-

-

43
4
7
26
6

40
1
6
7
21
5

43
1
10
5
22
5

52
1
12
6
25
8

35
_
5
5
18
7

24
_
4
4
7
9

10
_
_
1
7
2

131
12
47
22
40
10

202
12
38
30
93
29

108
2
38
18
38
12

34
2
7
6
14
5

5
1
1

2

_

-

_

3
“

_

1
1

“

-

-

-

.

_

.

_
_
_
_

_
_
_
_

_
_
_
_

-

-

- -

-

8
1
2
2
2
1

2
_

7
_
1
1
3
2

7
1
1
1
3
1

_

2
-

_
_
_
_
_

_
_
_

_

_

_

„

_

_

„

_

_

«.
_

_

_

“

“

“

"

_

“

S ee fo o tn o te at en d o f t a b le .




13
1
2
6
4

54<8

54
TABLE 17.—Expenditures per payroll hour for reporting establishments only*
by item and size of establishment, 1953 - Continued

Item and s iz e o f e s ta b lis h m e n t

N um ber
A v e ra g e
of
e s t a b lis h ­
per
m e n ts
p a y r o ll
h ou r
r e p o r tin g
e x p e n d i­ (c e n ts )
tu r e s

N u m b e r o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu re s o f—
14
10
6
12
8
and
and
and
and
and
und er u n d er unde r u n d e r un d er
16
14
10
12
8
ce n ts c e n ts c e n ts ce n ts ce n ts

4
2
and
U nder and
u nd er under
2
6
4
c e n ts
ce n ts ce n ts

L e g a lly r e q u ir e d p a y m e n t s -----------U nder 100 e m p lo y e e s _ __ _
100 - 499 e m p l o y e e s _______
500 - 999 e m p lo y e e s — -------1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r _ ____ ______

524
40
150
80
194
60

6 .5
7 .7
6. 7
7 .0
6. 1
5 .5

-

62
4
17
10
22
9

213
9
56
20
90
38

O ld A g e and S u r v iv o r s
In s u r a n c e ---------------------- — ____
U nder 100 e m p lo y e e s _ __ _
100 - 499 e m p lo y e e s — ____
500 - 999 e m p l o y e e s -----------1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s —
5 ,0 0 0 an d o v e r _______________

516
42
146
77
192
59

2 .5
2 .4
2 .4
2. 6
2 .6
2 .6

63
10
33
8
12
-

445
32
111
68
175
59

8
2
1
5

U n em p loy m en t c o m p e n s a t io n __
U n d er 100 e m p l o y e e s _______
100 - 499 e m p lo y e e s —
500 - 999 e m p l o y e e s _______
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 ,0 0 0 and o v e r _
__ ___ _

515
42
148
77
190
58

2. 3
2. 8
2 .4
2 .6
2. 1
1. 8

254
16
66
31
99
42

182
13
55
31
72
11

75
12
27
14
18
4

4
1

W o r k m e n 's c o m p e n s a t i o n ______
U nder 100 e m p l o y e e s ______
100 - 499 e m p l o y e e s _______
500 - 999 e m p l o y e e s _______
1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s __
5 ,0 0 0 and o v e r — _ _ _ _ _ _

517
40
147
79
191
60

1 .6
2 .4
2 .0
1 .8
1. 3
1. 1

388
23
97
55
158
55

89
11
31
18
25
4

22
2
12
3
5
-

9
3
3
1
1
1

State t e m p o r a r y d is a b ilit y
i n s u r a n c e __ _______
__ _ _
U nder 100 e m p lo y e e s .
100 - 499 e m p lo y e e s _
500 - 999 e m p lo y e e s ----------1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s __
5 ,0 0 0 and o v e r __ __

38
7
11
4
12
4

.7
(M
( >
( )
< )
(M

35
7
9
4
11
4

2
1
1
"

1
1
~

N u m ber
of
e s t a b lis h ­
m e n ts
r e p o r t in g
e x p e n d i­
tu r e s

74
11
29
c>
21
41

126
<9
33
29
50
1

-

1
1
1
t>

*35
2
1

20
ce n ts
and
over

_

3
1
2
-

1
1
-

“

-

-

-

_
-

_
-

_
-

_
-

_
-

i
1
-

_
-

_
-

_
-

-

-

-

-

-

_
-

*

-

28
3
8
6
8
3

10
2
3
3
1
1

7
1
2
3
1

-

-

_
2
1
1
-

_
-

16
18
and
and
u nd er under
18
20
ce n ts ce n ts

“

-

.
-

_
_
-

“

"

N um be:r o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s o f—
A v era g e
per
p a y r o ll
h ou r
(ce n ts )

10
U nder and
10
un d er
c e n ts
15
ce n ts

15
and
un d er
20
ce n ts

20
and
un d er
25
ce n ts

25
and
un d er
30
ce n ts

30
and
un d er
35
c e n ts

35
40
and
and
un d er un d er
40
45
ce n ts ce n ts

45
and
under
50
c e n ts

50
c e n ts
ana

A l l s e le c t e d i t e m s ___________ ____
U n der 100 e m p l o y e e s ______
100 - 499 e m p lo y e e s — —
500 - 999 e m p lo y e e s
1 ,0 0 0 - 4 ,9 9 9 e m p lo y e e s
5 ,0 0 0 and o v e r
__ _

419
32
127
64
144
52

3 0 .8
22. 8
2 6 .9
3 0 .2
34. 1
3 6 .8

18
3
8
3
3
1

34
6
15
7
6
-

33
7
16
5
15

50
4
20
9
16
1

54
4
14
6
20
10

72
4
18
10
27
13

65
1
21
9
26
8

41
1
9
5
18
8

26
2
2
6
9
7

26
_
4
4
14
4

A l l s e l e c t e d ite m s ex clu d in g
p r e m iu m pay _
___
U n der 100 e m p l o y e e s ______
100 - 499 e m p l o y e e s ______
500 - 999 e m p l o y e e s ---------1 ,0 0 0 - 4 ,9 9 9 e m p l o y e e s __
5 ,0 0 0 and o v e r
__ _

478
36
139
76
173
54

2 2 .2
15. 8
1 9 .0
2 1 .9
2 4 .7
27. 1

51
11
22
8

53
8
24
9
10
2

90
7
30
16
29
8

116
5
37
17
47
10

89
4
11
15
43
16

38
9

26
5

8
1
2

2
_
_
2
-

5
_
1
1
2
i

9
1

4

4

18
7

9
8

4

1

1 Number o f establishm ents too sm all to justify com putation o f an average.
* The averages in this table are not applicable to manufacturing as a whole. Establishm ents incu rring no expenditures
fo r the p a rticu lar item s studied w ere excluded in the com putation o f these a v e ra g e s, as w ere establishm ents unable to provide
expenditure data.




55
TABLE 18.—Expenditures as percent of payroll for reporting establishments only*
by item and size of establishment, 1953
N u m ber of e stab lish m en ts

Item

and size

V acatio n ,

of e stab lish m e n t

h o lid ay s,

Num ber
of
e stab lish ­
m en ts
reportin g
expen d i­
tures

A verage
percent
of
p ay roll

an d sic k

U n d e r 1 0 0 e m p l o y e e s _____—
- 4 9 9 e m p l o y e e s ---- -------5 0 0 - 9 9 9 e m p l o y e e s ___________
- 4 , 9 9 9 e m p l o y e e s ----5 , 0 0 0 a n d o v e r ___________________

100

1,000

P a i d v a c a t i o n s ------------------------------U n d e r 1 0 0 e m p l o y e e s _ ______
- 4 9 9 e m p l o y e e s __ ______
5 0 0 - 9 9 9 e m p l o y e e s __ ______
- 4 , 9 9 9 e m p l o y e e s ----5 , 0 0 0 a n d o v e r -------- — --------

100

1,000

528
37
152
76

200
63
524
39
150
76
197

62

P a id h o lid ay s
______ — __ ______
U n d e r 1 0 0 e m p l o y e e s _ ______
- 4 9 9 e m p l o y e e s -------------5 0 0 - 9 9 9 e m p l o y e e s __________
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r ______ ____ ________

471
31
124
70
186

P a i d s i c k l e a v e ------ — — -------U n d e r 1 0 0 e m p l o y e e s _ — __
1 0 0 - 4 9 9 e m p l o y e e s __ __ __
5 0 0 - 9 9 9 e m p l o y e e s __________
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r __ __ _T __ „

87
5
19

100

1,000

1,000

60

11

32

20

4 .9
3. 6
4. 3
4. 8
5. 3
5. 8
3. 1
2 .4
2. 7
2 .9
3 .4
3. 5

1.8
1 .5
. 8
. 8

1
1

1
Under

1

p e r­
cent

8
3
4

1

-

and
under

2

p er­
cent

19
3

12
2
2
-

P e n s i o n s ( t o t a l ) __________________________
U n d e r 1 0 0 e m p l o y e e s _________
- 4 9 9 e m p l o y e e s -------------5 0 0 - 9 9 9 e m p l o y e e s _____________
- 4 , 9 9 9 e m p l o y e e s _____
5 , 0 0 0 a n d o v e r — __ — _ _ __

271
5
45
39
136
46

In s u r a n c e (to tal)
__ _
U n d e r 1 0 0 e m p l o y e e s ______
- 4 9 9 e m p l o y e e s -------------------500 - 999 em p lo yees _
— —
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r ___________________

482

100

1,000

100

1,000

100

1,000

See footn ote at end o f table,




29
132
76
188
57

1.2
(M
. 8

1

. 1
1. 3
1 .9

-

45
30
79

4

-

-

-

-

-

-

-

-

-

5

_

1

_

_

_

_

_

_

-

-

-

-

-

-

-

1

-

-

-

-

-

-

"

-

-

61

67
5

37

30
3

27

20
1

26

14

20

50
3
7

17
5

28

5
18

20

9

19

9

5
15
4

73
3
16
13
31

55

44

30
3

15

9
9
14

12
7

8

6

32

6

16
5
5

8

17
-

1

19
17
44

11

147
4
57
24
54

8

41
3
7
25

1.6

-

-

3. 5

1

-

-

(M
3. 8
3. 6
3. 3
3 .7
1 .7
1 .7
. 8
1. 7
1. 7

-

-

1
1
2

12

60
7
18

92

(M

-

2
6
1

37
5

3

12

-

-

_

(M

361
7
92
49
159
54

-

-

103
3

S h i f t p r e m i u m p a y _ _ _ __
U n d e r 1 0 0 e m p l o y e e s ____________
- 499 e m p lo y e e s
__
__
__
5 0 0 - 9 9 9 e m p l o y e e s __ __ __
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r ______ ___
_

“

-

_

58
5
14
9

3
3

4

-

1
1

-

-

.

12
8

_

57
7
25

.

"

-

3 .9
4. 7
4. 2
3. 7
3. 7
3. 2

18
50

3
-

3

2

3
3

_

4 .9

1,000

14

22

-

2

-

14

. i

14

11

11

_

59

20

11

79

6
10
1

1

_

16

.

42

15
65
15

3
3

17
7

19
13
47
17

15

7
3

406
35
125
60
145
41

P r e m i u m p a y fo r w o r k on
h o lid ay s
______________________________________
U n d e r 1 0 0 e m p l o y e e s ____________
1 0 0 - 4 9 9 e m p l o y e e s ________ _ _
__
5 0 0 - 9 9 9 e m p l o y e e s __ ____
- 4 , 9 9 9 e m p l o y e e s ______
5 , 0 0 0 a n d o v e r __ __ __ __ __

99
3

27

26

8

186

-

12

O v e r t i m e p r e m i u m p a y _______ ____
U n d e r 1 0 0 e m p l o y e e s _________
- 499 em p lo yees — 5 0 0 - 9 9 9 e m p l o y e e s __________
- 4, 999 e m p lo y e e s
_____
5 , 0 0 0 a n d o v e r _ _ — — __ ____

1,000

124
3

42

10

10

p er­
cent

10
p er­
cent
and
over

233
18
61
32
94
28

1

-

4

100

125

31

6

9
and
under

59
23
47
14

12

454
37
130
64
164

1,000

76

13

8

p er­
cent

8
and
under
9
p e r­
cent

33

30

8
7
8
5
0

36

6

p e r­
cent

and
under
7
p er­
cent

3
4

51
3
18

4.
4.
4.
4.
5.

5
and
under

199
7
37
28
99
28

__________
_ — __
__ __ __
__ __ __
y e e s ------------ __

______ ___
pay
e r 100 e m p l o y e e s
- 499 em p lo yees
- 999 em p lo y ees
- 4 ,9 9 9 e m p l o
5 , 0 0 0 a n d o v e r __ __

P rem iu m
Und
100
500

4
and
under
5
p er­
cent

156
13

.9

1.0
1. 2

7
and
under

3
and
under
4
p er­
cent

and
under
3
p er­
cent

of—

67

9
4

( 1)

6

e xpen d itu res

8

1 .9
1 .9

.4

2

repo rtin g

-

6

112
7
38

21
35

11

10
21

20
10
11
2
1
1
6
1
158

2
20
32

6

26
1

-

1
1
2
44
4

8
10

10

2

2
8

2
6

24

8

2

12

36
15

6

6

1
10
1

4

10
5
7
-

-

10
1

3

3

6
2
2

-

-

-

-

-

22
2
10
2
8

13

8
2

5

1

14
4

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

_

_

_

-

-

-

-

-

-

-

-

-

"

-

-

"

-

-

38

16

1

1

_

_

_

_

_

-

1
10
7

21
6
111

1

-

_

-

_

-

-

-

-

-

-

_

-

_

_

-

-

2
8
-

12
5
28

1

5
5
19
5

40

5

2
16

40

4
13
5

10

1

9

9
32

20

-

-

35

29
96
30

12
6

7

-

54

41

3

4

10

3

-

45

10

2

7
4
13
4

11
2

-

6

-

36

206

30

9
5

-

-

20
6

10

2
11

-

-

5

1

11

-

-

26
5
4

8
2

-

3
3
18
14

78

1

-

-

-

-

-

-

_

_

_

-

-

1

-

-

-

-

10

11

-

-

6
1
2
1

2
1
1

-

-

5

-

-

23
-

2
6
8
7

2
1
6
1

7

1

_

_

2
1
4
4

2

-

8
-

1
2

_

_

_

_

_

_

_

-

1
1
2
1

4

_

-

-

-

-

-

-

-

3

-

-

-

-

-

-

"

1

-

-

-

-

-

56
TABLE 18.—Expenditures as percent of payroll for reporting establishments only*
by item and size of establishment, 1953 - Continued
N u m ber o f e s ta b lis h m e n ts R ep ortin g e x p e n d itu r e s of—

Item

and siz e

of e stab lish m e n t

JNu m b e r
of
e stab lish ­
m en ts
rep o rtin g
expen d i­
tu res

A verage
percent
of
p ay roll

L e g a l l y r e q u i r e d p a y m e n t s -------- _
U n d e r 1 0 0 e m p l o y e e s _________
- 4 9 9 e m p l o y e e s __________
5 0 0 - 9 9 9 e m p l o y e e s __________
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r __________________

524
40
150
80
194
60

3. 6
4. 8
4. 1

O ld A g e an d S u r v i v o r s
I n s u r a n c e ______ ____ ____ ________ ____
U n d e r 1 0 0 e m p l o y e e s _ ______
1 0 0 - 4 9 9 e m p l o y e e s ______ __
5 0 0 - 9 9 9 e m p l o y e e s __________
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r __ __ __________

516
42
146
77
192
59

1 .4
1. 5
1. 5
1 .4

U n e m p l o y m e n t c o m p e n s a t i o n ___
U n d e r 1 0 0 e m p l o y e e s _________
- 4 9 9 e m p l o y e e s __________
5 0 0 - 9 9 9 e m p l o y e e s ______ __
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r __ __ ______ __

515
42
148
77
190
58

1.
.
1.
1.
.

W o r k m e n ' s c o m p e n s a t i o n ________
U n d e r 1 0 0 e m p l o y e e s _________
1 0 0 - 4 9 9 e m p l o y e e s __________
5 0 0 - 9 9 9 e m p l o y e e s — ______
- 4 , 9 9 9 e m p l o y e e s ____
5 , 0 0 0 a n d o v e r __ __ ______ __

517
40
147
79
191
60

100

1,000

1,000

100

1,000

1,000

State te m p o ra ry d isab ility
i n s u r a n c e ____________________________
U n d e r 1 0 0 e m p l o y e e s _ ______
- 4 9 9 e m p l o y e e s __________
5 0 0 - 999 e m p l o y e e s __ __ __
- 4 , 9 9 9 e m p l o y e e s ____
5 ,0 0 0 a n d o v e r ___________________

3 .9
3 .2
2. 7

1,000

30

1

182
3
33

-

14

21
86

-

9

39

8
1

4

2

12

126
10
39
25
47
5

-

"

-

-

-

-

-

-

-

-

-

-

-

-

-

_

_

_

-

"

1

-

-

-

-

-

-

-

-

-

-

-

-

-

-

8
1

1
_
1

1
1

_

_

_

_

_

_

_
_
_

_
_
_

_
_
_
_

-

-

-

-

-

_

_
_
_

8

1

13

6
7

1

3

4
_

6

5
-

2

1

2

1

-

-

1

1

-

_

_

"

-

1
-

-

2
1
1

_

35
7

9
4
11
4

-

1

_

.4

(M
(M
(M
(M
(M

1

3
-

4

-

14
3

-

4

5
3

_

1

23
4

6

10
1

-

107

10

_

19
4

10

1

363

44
19
28
5

10

-

.9
1 .4
. 2
.9
. 7
. 5

81
53
155
54

p er­
cent

-

49
24
60

1

10
12
1

9
p e r­
cent

8

-

9
35
18
25
3

11

18

p e r­
cent

10
p e r­
cent
and
over

-

-

20

10

9
and
under

-

35

12

6

51

and
under

-

-

12

9
37
15
33

8

7
and
under

-

90

2

100

6
and
under
7
p er­
cent

_
-

157

1

3
4
3

6

1

-

3

5
4
and
and
under under
5
p er­
p e r­
cent
cent

-

232
13
50
29
98
42

3
8
5
5
2

.9

4

2

3
and
under
4
p e r­
cent

59

1

12

p er­
cent

2

and
and
under under
3
p er­
p e r­
cent
cent

3

1

11
4

1

495
38
138
73
187

1. 4
1. 3

38
7

100

1
Under

_

-

-

_
-

_
_

_
_

_

_

_

_
_

-

“

-

-

_

_

_
-

_
_
_

"

-

N u m b er o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s o f—
inu

m

dc r

of
e s t a b lis h ­
m en ts
re p o r tin g
e x p e n d i­
tu r e s

A l l s e le c t e d ite m s __________________
U nder 1 0 0 e m p lo y e e s _______
100 - 4 9 9 e m p lo y e e s ________
5 0 0 - 9 9 9 e m p lo y e e s ________
1.000 - 4 , 9 9 9 e m p l o y e e s ___
5 .0 0 0 and o v e r _______________
A l l s e le c t e d ite m s ex clu d in g
p r e m iu m pay
U nder 100 e m p lo y e e s _______
100 - 499 e m p l o y e e s ________
500 - 999 e m p l o y e e s ________
1 . 0 0 0 - 4 ,9 9 9 e m p l o y e e s ___
5 .0 0 0 and o v e r _______________ 1

A v e ra g e
percen t
o f

p a y r o ll

4 1 9

16. 5

32

14. 3

127

15. 7

U nder
6
per­
cen t

5

2
2

6

8

and
u n d e r

and
under

p er­
cent

per­
cen t

8

10
1

10

10

19
4

2

6
6

3

3

4

12

and
and
under un d er

14

16

18

12

14

16

18

per­
cen t

per­
cen t

per­
cent

per­
cen t

37

58

19

17

6

57

20

78

per­
cen t

65

3
5

7

5

14

9

13

87

78

33

13

28

15

4 7 8

1 1 .9

17

54

103

9 .7

4

10

82

36

4

23

28

29
19

13

13

4

29

35

37

.3 5

15

4

7

4

76
173
54

1 1 .9

12.6
1 3 .0

3
4

2

9

10
2

8

11
6

7

13

3

9

1 7 .6

11. 2

4

31

52

1

8

4

11

1
6

_

4

1

8
1
1
3

2
1

cen t
and
over

4

28

7

3
14

30
p e r ­

16

14

-

139

70

25

1 6 .4
1 7 .4

-

30

per­
cen t

22

4

21

64

1

25

p er­
cent

2
16
10'

3

144

6
1

25

21
8
20

5

-

5

20

and
and
and
and
and
u n d er u nd er und er under under

2
2

_2

_
_

1

-

1

_

1

_

1

1

_

1 N u m ber o f e s ta b lis h m e n ts t o o s m a ll to ju s tify com p u ta tio n o f an a v e r a g e .
* The a v e r a g e s in th is ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e
e x p e n d itu re data.




57

per hour, with the exception of Old A g e and Survivors Insurance p a y ­
m e n t s 26 for w h i c h a slightly higher average w a s reported by the larger
e stablishments •
T h e s e data illustrate the importance of a proper sampling
balance of establishments of different size in expenditure surveys.
T h e significance of appropriate representation of the various e s t a b ­
lishment sizes in a s a m p l e is u n d e r s c o r e d by the differentials a m o n g
size classes for ,!all selected i t e m s 11 and !,all selected items e x ­
cluding p r e m i u m p a y c ,f F o r these totals, and for such voluntary
expenditure items as vacations, holidays, sick leave, shift p r e m i u m s ,
pensions, a n d insurance, it is, m o r e o v e r , important to e m p h a s i z e
that if relative prevalence of practices w e r e taken into account (by
computing average expenditures covering all establishments, including
those with no expenditures) the differentials b e t w e e n small and lar^e
establishments w o u l d be substantially wider than these data show. 7
Variations by Industry G r o u p
.— T h e classification of m a n u ­
facturing industries into three groups, conveniently if arbitrarily
identified as lflow w a g e " (group i), " m e d i u m w a g e " (group II), and
"high w a g e " (group III), permitted a cursory examination of broad
industry differences bearing upon sampling p roblems.
Admittedly,
this w a s a substitute for m o r e precise data on specific industries
w h i c h a larger s a m p l e and a better rate of response w o u l d have
yielded.

2 (\

In 1953, e m p l o y e r s w e r e required to pay 1.5 percent of
e m p l o y e e earnings up to $3,600 a year for Old A g e and Survivors
Insurance.
If a substantial n u m b e r of w o r k e r s earned m o r e than
$3,600, an establishments annual contributions w o u l d a m o u n t to less
than 1.5 percent of total payroll.
W h y the ratio excee d e d 1.5 p e r ­
cent in a n u m b e r of establishments w a s not ascertained in this study.
S o m e of the possible reasons are: P a y m e n t of penalties for late filing;
p a y m e n t of interest on unpaid tax; the reporting of p a y m e n t s for four
quarters w h i c h did not correspond to the calendar year 1953, and r e ­
porting errors. It is also possible that a small n u m b e r of establish­
m e n t s reporting expenditures in excess of 2 percent of payroll w e r e
a s s u m i n g part or all of the w o r k e r s 1 liability; such payments, strictly
speaking, should not be classified as legally required p ayments.
2 ' T h e underrepresentation in this response of establishments
e m p loying fewer than 100 workers, as described in a previous section
of this report, w o u l d have its m o s t profound effect on an average
covering all establishments.
A s far as the averages for reporting
establishments only w e r e concerned, the effect can be illustrated
simply: It wo u l d require a weighting of five applied to the average
expenditure of 4 cents an hour for paid vacations s h o w n for the
smallest size group to reduce the overall average of 5.8 cents by as
m u c h as 0.5 cent.
28




See footnote 6, p. 17.

58

T he
th e

a v e ra g e

trib u tio n s
p e r

a v e ra g e

and

y ea r

W ith

on

a v e ra g e ,

a p p e a re d
p a rt,

21)

to

n o

th e

P e rh a p s
th at

re q u ire d
a m ou n t
A g e

fo r

and

co s t

In
th e

th e

a ll

ite m s

p r a c tic e s

sp on se

in

sa m e

th is

th e

lish m e n ts,

te r m s
(ta b le
be

o f

th e

re la tio n sh ip

fo r

ite m s

h ig h e r

p a id
h e a lth

a

o f

th e

u n io n
p a id

p r o g r a m s , 29
h e ld

for

n o n u n io n

as

fo r

r e ­

th ere

th e

m o s t

fo r

in

h ou r

(ta b le

for

II

th ree

le s s

in d u stry

th e

O ld

p a y m en ts

g ro u p s .

lo w -w a g e

v o lu n ta ry

ta b le

g rou p

or

o f

1,

in

c o m p e n s a ­

som ew h a t

in

h ig h e r

III.

but

p r e v a le n ce

T h e

le g a lly

a

and

g rou p

th e

n e g o ­

th ese

s e ­

p o o r e r

r e ­

had

a

n e g li­

a ll r e p o r tin g e s ta b lis h m e n ts
of

e s ta b lish m e n ts

co v e rin g

S tatu s. —

22)

a ll

in

e s ta b ­

as

co m b in e d

as

to

g rou p ,

p r e m iu m

T h e

is

fo r
pay,

se le cte d

a p p e a re d

to
by

ra tio s

B o th m e a s u re s
p a id

v a ca tio n s,

in su ra n ce

ite m s .* 1

sh ow ed

in

p a y r o ll

e v id e n ce d

d iffe re n ce s

ite m s

o f

c e n ts -p e r -h o u r

In su ra n ce .
a

co m p a ris o n

p e rce n t
le v e ls

na ll

oth er

and

c o v e re d ,

ra tio s

s h ift

T h e

e sta b lish m e n ts,

E a rn in g s

S u rv iv o rs

fo r

in

p a id

re q u ire d

n o n u n io n

p ictu re .

e x p e n d itu re s.

e sta b lish m e n ts

th e

B a rg a in in g

e s ta b lish m e n ts,

th e

I

e x p e n d itu re s.

e sta b lish m e n ts

and

g rou p

a v e ra g e s

and

le a v e ,

g e n e ra liz a tio n s
fo u n d

W o r k m e n s

th e

u n io n

and

th e

g rou p s

in d ica te d

w e ig h t
no

m ix e d

sick

p e n sio n

H o w e v e r,

w e re

u n d e rre p re se n ta tio n

w ith

A g e

to

I

b etw een

if

p e r ce n t-o f-p a y ro ll
O ld

in

a cco u n t.

e x p e n d itu re s

fo r

u n io n

as

in

h o lid a y s,

tr a r y
and

su ch

g rou p ,

s u p p le m e n ta ry

,rL o w - w a g e n

g re a te r

C o lle ctiv e

ra tio s

th e

lo w -w a g e

d iffe re n tia l,

te r m s .

o f p a y ro ll

in to

g re a te r

b y

o f

le g a lly

e x p e n d itu re s

c e n t s -p e r -p a y r o ll
in

tota l

th e

g rou p ,

th ose

2 3 ), p r e s e n t e d

h ig h e r

w e re

be

ta k en

c a r r y

a v e ra g e

th e

g ro u p s .

th an

d iffe re n ce s

w o u ld

H o w e v e r,

V a ria tio n s
b etw een

th e
in

in clu d in g

re la tio n ­

in

m e a s u r e s ,

and
to

g ro u p s

a v e ra g e

w o u ld

e m p lo y e e

g rou p

co m p e n sa tio n

lo w -w a g e

on th e

s u rv e y .

g rou p

th ree

p e rce n t

w e re

d is ­

p er

e x ce p tio n s
in

d o lla r s -p e r -y e a r

stu d ie d

fr o m

e ffe ct

th is

lo w e s t

a ll

lik e lih o o d ,

le cte d

h ig h -w a g e

1 9 ),

an d th e

in d u stry -g ro u p

ite m s

s ig n ific a n t

In su ra n ce

h ig h e r-w a g e

tia te d

g ib le

B y

and

h o u r (ta b le
2 0 ),

ex p en d itu res

sa m e

th ese

n otew orth y

w e re

p e r ce n ta g e w is e ,

a v e ra g e d

and

m o s t

u n e m p lo y m e n t

m o r e ,

on

or

S u rv iv o rs

th e

(ta b le

g ro u p s.

ra tio s

c e n ts -p e r -h o u r
tio n

le s s

co n siste n t

p a y m e n ts.

p a y ro ll

e sta b lish m e n ts

and

th e

e x p e n d itu re

a d ju s te d

e sta b lish m e n t
re fle ct

m e d iu m -

la tte r

p er

p e rce n t o f p a y ro ll

e x ce p tio n s ,

th e

be

b etw een

o f

exp en d ed

th a n

a

la rg e ly

ce rta in

m u n e ra tio n

as

a v e ra g e s

(ta b le

s h ip s .
th e

e x p e n d itu re s

ex p en d itu res

T he

b etw een
n o

and
c o n ­
u n io n

d is ce r n ib le

p a ttern .

29
d iffe re n c e

A ctu a l
in




p e rce n t

fig u re s,
o f

tak en

p a y r o ll th an

se p a ra te ly ,

w as

show n

in

sh ow ed
ta b le

23.

a

som ew h a t

la rg e r

59
T A R IFF: 1 9.— A verage expenditures per adjusted payroll hour1 fo r reporting establishm ents only*
by item and industry group, 2 1953
G rou p I

A l l in d u str ie s
N u m b er o f
e s t a b lis h ­
m e n ts
rep o rtin g
ex p e n d i­
tu res

Ite m

A verage
p er a d ­
ju ste d
p a y r o ll
hour
(cen ts)

N u m b er of
e s t a b lis h ­
m e n ts
r ep o rtin g
ex p e n d i­
tu res

G rou p II

A verage
p er a d ­
ju ste d
p a y r o ll
hour
(c en ts)

N u m b er of
e s t a b lis h ­
m e n ts
r ep o rtin g
ex p e n d i­
tu r e s

G rou p III

A v e r a g e N u m b e r of A v e r a g e
p e r a d ­ e s t a b lis h ­ p e r a d ­
m e n ts
ju ste d
ju ste d
rep o rtin g
p a y r o ll
p a y r o ll
hour
h our
ex p e n d i­
(c en ts)
(cen ts)
tu r e s

V a c a tio n s , h o lid a y s , and sic k le a v e _________
P a id v a c a tio n s __________________________________
___
P a id h o lid a y s __________________________
P a id s ic k l e a v e __________________________________

52 8
524
471
87

9 .8
6. 1
3 .7
1 .9

169
169
138
23

7. 5
4. 7
3 .0
1 .2

163
165
153
32

10 . 1
6. 1
3 .8
2. 1

196
190
180
32

1 1 .5
7 .3
4. 0
2. 1

P r e m iu m p ay ______________________________________
P r e m iu m pay fo r o v e r t im e ___________________
P r e m iu m pay fo r w ork on h o l i d a y s _______
S hift p r e m iu m p a y ----------------------------------------------

454
40 6
103
361

9 .5
7. 6
. 6
2. 6

149
137
33
88

6. 4
5. 8
.4
1 .5

142
119
35
120

10 .
8.
.
2.

8
5
7
6

163
150
35
153

1 1 .3
8. 5
.6
3 .2

P e n s io n s ( t o t a l) ___________________________ ______

271

7 .4

54

6. 6

98

7 .4

119

7. 8

In s u r a n c e , h e a lth , and w e lfa re (to tal) ______

48 2

3 .3

148

2 .9

154

3 .7

180

3 .4

L e g a lly r e q u ir e d p ay m e n ts ---------------------------------O ld A g e and S u r v iv o r s In su ran ce ----------------U n e m p lo y m e n t c o m p e n s a t io n ----------------- ~
W o r k m e n 's c o m p e n s a t io n ___________________
State te m p o r a r y d is a b ility i n s u r a n c e _______

52 4
51 6
515
517
38

6. 8
2. 6
2 .4
1 .7
. 8

175
171
170
172
13

6 .6
2 .4
2. 8
1. 5
( 3)

160
157
158
158
15

6 .8
2 .7
2 .4
1 .7

7 .0
2 .9
2. 1
2 .0

( 3)

189
188
187
187
10

A l l s e le c te d it e m s __________________________________

419

32. 5

143

2 4 .0

126

3 5 .9

150

3 7 .8

A l l s e le c te d it e m s
ex clu d in g p r e m iu m p a y _________________________

478

2 3 .5

161

18. 5

143

2 5 .4

174

2 6 .6

( 3)

1 A d ju ste d p a y r o ll h ou rs = total p a y r o ll h ou rs l e s s v a c a tio n , h o lid a y , and sic k le a v e h ou rs p aid fo r and taken.
2 F o r in d u str y g r o u p in g s, s e e footnote 6, p . 17.
S ee table 1 fo r in d u str y id e n tific a tio n .
3 N u m b er of e s ta b lis h m e n ts too s m a ll to ju s tify com p u tatio n of an a v e r a g e .
* T h e a v e r a g e s in this table a r e not a p p lic a b le to m an u factu rin g a s a w h o le. E s ta b lis h m e n t s in cu r rin g no ex p e n d itu res
fo r the p a r tic u la r it e m s stud ied w e r e ex clu d ed in the com p u tatio n o f th ese a v e r a g e s , as w ere e s ta b lis h m e n ts unable to p r o ­
vid e ex p en d itu re d ata.

T A B L E 2 0 .- —A v e r a g e ex p e n d itu res a s p e r c e n t o f p a y r o ll fo r re p o r tin g e s ta b lis h m e n ts o n l y *
b y it e m and in d u str y g r o u p ,1 1953
A l l in d u str ie s
N u m b e r of
e s t a b lis h ­
m e n ts
rep o rtin g
e x p e n d i­
tu r e s

Ite m

G rou p III

G rou p II

G rou p I

N u m b er of
A v e r a g e e s t a b lis h ­
percen t
m e n ts
of
r ep o rtin g
p a y r o ll
e x p e n d i­
tu r e s

A verage
percen t
of
p a y r o ll

N u m b er o f
e s t a b lis h ­
m e n ts
re p o r tin g
e x p e n d i­
tu res

N u m b er o f
A v e r a g e e s t a b lis h ­ A v e r a g e
percen t
percen t
m e n ts
re p o r tin g
of
of
e x p e n d i­
p a y r o ll
p a y r o ll
tu r e s

V a c a tio n s , h o lid a y s , and s ic k le a v e ___________
P a id v a c a tio n s __ ----- ----------------------------------P a id h o lid a y s ----------- -------------------------------------P a id sic k l e a v e _________________________ ___

52 8
52 4
47 1
87

4 .9
3. 1
1 .8
.9

169
169
138
23

4 .4
2 .8
1 .7
.6

163
165
153
32

5. 1
3 .0
1 .9
1 .0

196
190
180
32

5. 1
3 .3
1 .8
.9

P r e m i u m p ay ----------------- -------------------- __ -------P r e m iu m p ay f o r o v e r t im e _____ __ — _
P r e m i u m p ay fo r w o rk on h o l i d a y s _________
S h ift p r e m iu m p a y _____ _________ __ _____

454
406
103
361

4. 8
3 .9
.3
1 .2

149
137
33
88

3 .9
3 .5
.2
'. 8

142
119
35
120

5. 5
4 .3
.3
1 .3

163
150
35
153

5. 1
3 .8
.3
1 .4

P e n s io n s ( t o t a l) --------

__ ~

27 1

3 .5

54

3 .5

98

3 .6

119

3 .4

--------

-----

-----

--------------

482

1 .7

148

1 .7

154

1 .9

180

1 .5

L e g a lly r e q u ir e d p a y m e n ts _____________________
O ld A g e and S u r v iv o r s In su r a n c e ___________

52 4
51 6

3. 6
1 .4

175
171

4 .2
1 .5

160
157

3 .6
1 .4

189
188

3 .2
1 .3

U n em p lo y m en t c o m p e n s a t io n _________________
W o r k m a n 's c o m p e n sa tio n
State t e m p o r a r y d is a b ility in su r a n ce

515
517
38

1 .3
.9
.4

170
172
13

1 .8
.9
(2 )

158
158
15

1 .3
.9
(2 )

187
187
10

1 .0
.9

41 9

1 6 .5

143

1 4 .6

126

1 8 .1

150

1 7 .0

478

1 1 .9

161

1 1 .0

143

1 2 .9

174

1 2 .0

In s u r a n c e , h e a lth , and w e lfa r e (total)

A l l s e le c te d it e m s

..... ........

A ll s e le c te d it e m s ex clu d in g
p r e m iu m pay
_
........................

1

(2 )

F o r in d u str y g r o u p in g s, see footnote 6 , p . 17 .
S ee table 1 for in d u stry id e n tific a tio n .
N u m b er o f e s t a b lis h m e n ts too s m a ll to ju s tify com p u tatio n o f an a v e r a g e .
* The a v e r a g e s in th is ta b le a r e not a p p lica b le to m an u factu rin g a s a w h o le . E s ta b lis h m e n t s in cu rrin g no e x p e n d itu res for
the p a r tic u la r it e m s stud ied w e r e ex clu d ed in the c om p u tatio n o f th e se a v e r a g e s , a s w e r e e s t a b lis h m e n ts unable to p rovid e ex p e n ­
d itu re d ata.




60
TABLE 2 1 .— Expenditures per year per em ployee fo r reporting establishm ents on ly *
by item and industry g r o u p ,1 1953
N u m b er
of
e s t a b lis h ­
m e n ts
rep o rtin g
ex p e n d i­
tu r e s

A verage
ex p e n d ­
itu re
p er
e m p lo y e e
p er
year

V a c a tio n s , h o lid a y s , and sic k
l e a v e __________________________________
G rou p I _______________ ______
G rou p I I ___________________ __
G rou p III ______________________

528
169
163
196

P a id v a c a tio n s __________________
G rou p I ________________________
G rou p I I ________________________
G rou p III _________________ __
P a id h o lid a y s ____________________
G rou p I -----------------------------------G rou p I I _____________________ _
G rou p III ______________________

N u m b e r of ie s ta b lis h m e n ts re p o r tin g e x p e n d itu res o f -

Under
$50

$50
and
under
100

$192
146
20 0
226

28
20
4
4

52
36
13
3

82
33
25
24

109
37
38
34

131
30
45
56

79
7
23
49

33
4
10
19

5
1
1
3

6
1
3
2

1
_
1

2
_
1
1

52 4
169
165
190

120
91
120
145

48
34
8
6

142
64
48
30

197
56
68
73

102
11
34
57

28
3
6
19

4
1
3

3
_
1
2

_
-

_
_
_

_
_
-

_
_
_

-

-

-

-

471
138
153
180

72
58
75
79

94
50
25
19

322
81
107
134

52
6
20
26

2
1
1

1
1

_
-

_
-

_
-

= .
-

-

-

l e a v e ______________ __
I ___________ ____
__
II ______________________
III __ __________________

87
23
32
32

37
23
42
42

60
20
20
20

23
3
11
9

3
3

_

-

“

"

-

-

-

-

-

P r e m i u m pay ___________________
G rou p I _______________ ______
G rou p I I _________________
__
G rou p III ______________________

454
149
142
163

196
132
219
23 3

68
46
14
8

69
32
21
16

70
23
15
32

67
19
19
29

49
9
18
22

35
2
17
16

29
9
10
10

24
2
13
9

16
2
9
5

8
2
3
3

19
3
3
13

p r e m iu m p ay ______
I ----------------------------- ---II ______________________
III _____ ___________ _

406
137
119
150

158
118
177
178

81
43
18
20

91
36
23
32

69
22
19
28

49
11
17
21

32
11
7
14

32
5
15
12

16
1
9
6

11
1
4
6

8
3
2
3

7
1
4
2

10
3
1
6

P r e m iu m p ay fo r
h o lid a y w o r k ____________________
G rou p I ________________________
G rou p I I -----------------------------------G rou p III ______________________

103
33
35
35

12
8
14
13

95
32
31
32

8
1
4
3

-

-

-

-

-

-

_
-

_
-

_
_

-

-

“

-

-

-

-

-

S hift p r e m iu m p a y ______________
G rou p I ________________________
G rou p I I ___________ __________
G rou p III ______________________

361
88
120
153

51
28
51
64

209
75
67
67

112
9
42
61

31
3
8
20

9
1
3
5

_
_
-

_
_
-

_

_

_
-

_
_

-

P e n s io n s (total)
G rou p I _______________ ___
G rou p I I ________________________
G rou p III --------------- !-----------------

271
54
98
119

149
133
145
159

52
11
16
25

44
12
14
18

72
14
29
29

35
3
14
18

32
10
11
11

In su r a n c e (total) ____________________
G rou p I ________________________
G rou p II _ _____________________
G rou p III _____ _________ __

482
148
154
180

65
56
72
67

183
76
49
58

21 5
50
72
93

68
18
27
23

15
4
6
5

1
1

.
_
_

L e g a lly r e q u ir e d p a y m e n ts ______
G rou p I ________________________
G rou p I I ________________________
G rou p III ---------------------------------

52 4
175
160
189

135
129
136
139

1
1
-

142
58
30
54

226
68
83
75

104
34
33
37

O ld A g e and S u r v iv o r s
In s u r a n c e ___________ __________
G rou p I ________________________
G rou p I I ________________________
G rou p III ______________________

51 6
171
157
188

52

172
To6
42
24

341
65
114
162

3
_

54
57

1
2

U n e m p lo y m e n t
c o m p e n sa tio n __________________
G rou p I ________________________
G rou p I I ________________________
G rou p III ______________________

515
170
158
187

47
53
47
43

322
87
98
137

168
74
56
38

W o r k m e n 1 s c o m p e n s a t io n ____
G rou p I ________________________
G rou p I I ________________________
G rou p III ______________________

51 7
172
158
187

34
30
33
39

419
139
137
143

70
26
15
29

Ite m an d in d u stry grou p

P a id s ic k
G rou p
G rou p
G rou p

O v e r tim e
G rou p
G rou p
G rou p

S ee fo o tn o te s at end o f table




46

$ 100
and
under
150

$150
and
under
20 0

1

-

-

$200
and
under
250

1
1

$250
$350
$400
$450
$300
$500
and
and
and
and
and
and
under under under under u nd er
over
40 0
300
45 0
350
500

_
-

-

-

-

_

_

_

_

_

-

-

-

-

-

_

_
-

-

_
-

_
_
-

-

-

-

-

-

-

11
2
7
2

7
_
2
5

9
1
4
4

1
_
1

4
_

-

4

4
1
_
3

.

.

.

.

-

-

_

_

.
_
_

-

-

“

-

-

-

29
8
10
11

9
2
1
6

10
3
2
5

1
1
_

2
_
1
1

_
_
_

.
_
_

-

-

_
_
_

_
_
_

_
_
_

_
_
_

_
_
_

_
_

_
_
_

_
_
_

-

-

-

-

-

“

-

-

23
8
3
12

2
1
1

_
_

_
_

_
_

_
_

_

_

_

-

-

-

-

-

-

-

-

18
4
3
11

5
1
2
2

4
2
_

1
_
1

_
_

_
_
_

_
_
_

2

-

-

-

-

_

-

_

_

_
_
_
-

_
_
_

_

_
_
_

61
TA BLE 2 1 .— Expenditures per year per em ployee fo r reporting establishm ents on ly *
by item and industry g r o u p ,1 1953 - Continued

Ite m and in d u str y grou p

N u m b e r o f e s ta b lis h m e n ts r e p o r tin g ex p e n d itu r es o f—

N u m b er
of
e s t a b lis h ­
m e n ts
r ep o rtin g
ex p e n d i­
tu r e s

A verage
ex p e n d ­
iture
per
e m p lo y e e
p er
ye ar

38
13
15

$15

36

1

1

~ r n

11

1

1

$100 $ 1 5 0 $200 $ 2 5 0 $ 3 0 0 $ 3 5 0 $ 4 0 0 $ 4 5 0
$50
$500
and
and
and
and
and
and
and
and
and
U n d er
and
$50
u nd er u nder under under u nd er under under under under
over
100
200
300
150
350
40 0
450
500
250

L e g a lly r e q u ir e d
p a y m e n ts: - C ontinued
S tate te m p o r a r y d is a b ility
in s u r a n c e ----------------------------G rou p I ___________________
G rou p I I ----------------------------G rou p III _________________

10
N um ber
of
e s t a b lis h ­
m e n ts
re p o r tin g
ex p e n d i­
tu res

A ll s e le c te d it e m s
G rou p. I _____
G rou p I I _____
G rou p III ___
A l l s e le c te d it e m s ex clu d in g
p r e m iu m p ay .
G rou p I __
G rou p I I __
G rou p III .

1

419
143

126
150

478

T5T
143
174

(*)
( 2)
A verage
ex p en d ­
itu re
per
e m p lo y e e
p er
year

$649
47 3
71 4
762

464
358
501
531

15

10
N u m b er o f e s ta b lis h m e n ts r e p o r tin g ex p e n d itu r es o f —

U nder

$ 100

$100 $200 $ 3 0 0 $ 4 0 0 $ 5 0 0 $ 6 0 0 $ 7 0 0 $ 800 $900
and
and
and
and
and
and
and
and
and
under under under under u nder under under under under
500
600
700
800
900 1,000
200 300
40 0

46

21
1

42

2
3

3

1

27
14

10

28
27
23

24
19
7

16

100

92
17
36
39

29
26
45

14

16

62
15
16
31

61
7

22
32

59
6
19
34

43
7
19
17

$1,000
and
over

30
4
14

44
7
15

12

22
_6
1
5

F o r in d u str y g r o u p in g s, s e e footnote 6 , p . 17.
S ee table 1 fo r in d u str y id e n tific a tio n .
N u m b er o f e s ta b lis h m e n ts too s m a ll to ju s tify com p utation of an a v e r a g e .
* T h e a v e r a g e s in this table a r e n ot ap p lica b le to m a n u factu rin g as a w h o le . E s ta b lis h m e n t s in cu r rin g no ex p e n d itu r e s
f o r the p a r tic u la r it e m s stu d ied w e r e ex clu d ed in the com p u tatio n o f th e se a v e r a g e s , as w ere e s ta b lis h m e n ts unable to p r o ­
vid e ex p en d itu re d a ta .




62
TABLE 2 2 .— Expenditures per p ayroll hour fo r reporting establishm ents only*
by item and union status, 1953

Ite m and union statu s 1

N u m b er
of
A verage
p er
e s t a b lis h m e n ts
p a y r o ll
rep ortin g
hour
(c en ts)
e x p e n d itu res

V a c a tio n s , h o lid a y s , and s ic k
l e a v e ________________________________ __
Union e s t a b l i s h m e n t s -------------N onunion e s t a b lis h m e n t s _____

52 8
40 4
120

P a id v a c a tio n s _________________ __
Union e s t a b l i s h m e n t s _________
Nonunion e s t a b lis h m e n t s _____

524
400
120

P a id h olid ays ___________________ __
U nion e s t a b l i s h m e n t s _______
Nonunion e s t a b lis h m e n t s _____

N u m b e r o f e s ta b lis h m e n ts re p o r tin g ex p e n d itu res of—
2
4
6
10
12
14
8
16
18
20
and
and
and
and
and
and
and
and
and
U nder
c en ts
2
under under under under under u nd er u nder under under
and
6
8
10
12
14
16
18
20
4
c en ts
over
cen ts c en ts cen ts c en ts cen ts c en ts c en ts cen ts c en ts
22
5
17

35
11
23

49
34
14

78
53
24

122
101
20

103
90
13

60
58
2

33
28
5

13
11
2

10
10
-

3
3
-

5. 8
6 .3
4. 1

34
10
23

98
57
40

158
125
32

140
120
19

63
60
3

22
19
3

7
7
-

2
2
-

_
-

_
_

_
-

-

-

-

471
37 8
90

3 .4
3 .6
2 .6

61
31
28

24 5
197
47

147
132
15

17
17
-

_
-

1
1
-

-

_
-

_
-

-

-

-

-

_
-

P a id s ic k l e a v e ____ ____ _______ __
Union e s t a b l i s h m e n t s _________
Nonunion e s t a b lis h m e n t s _____

87
63
24

1 .7
1 .9
1 .2

56
37
19

23
19
4

?
()

_
-

_
-

_
-

_
-

_
-

_
-

-

1

-

-

1
1
-

-

-

-

-

-

P r e m iu m pay __________ __________
Union e s t a b lis h m e n t s --------------N onunion e s t a b lis h m e n t s _____

45 4
34 4
106

9. 1
9 .3
8 .2

49
30
19

64
46
17

52
37
15

60
49
9

56
43
13

47
39
7

36
32
4

22
18
4

26
17
9

16
13
3

26
20
6

O v e r tim e p r e m iu m p a y ___________
Union e s t a b lis h m e n ts _________
Nonunion e s t a b lis h m e n t s _____

40 6
300
104

7 .2
7 .2
7 .2

68
48
20

77
52
25

64
50
14

49
41
7

41
33
8

30
22
7

26
18
8

20
16
4

14
8
6

3
1
2

14
11
3

P r e m iu m pay fo r h o lid ay w ork —
Union e s t a b l i s h m e n t s _________
N onunion e s t a b lis h m e n t s _____

103
88
15

. 5
. 5
. 5

94
80
14

8
8
-

1

.
_

.
_

_
_

_
_

_
_

_
_

_
_

_
_

1

-

-

-

-

-

-

-

-

Shift p r e m iu m p a y _________ ___
Union p stahli sh m sn ts
Nonunion e s t a b lis h m e n t s _____

361
300
58

2 .4
2 .6
1 .6

170
127
40

138
124
14

27
25
2

21
19
2

5
5

_

_

_

_

_

-

-

-

-

-

-

P e n s io n s ( t o t a l) _____________________
Union e s t a b l i s h m e n t s _______
N onunion e s t a b lis h m e n t s _____

271
21 5
55

7 .0
6 .4
9 .2

43
36
7

40
31
9

43
33
c)

52
47
5

35
32
3

24
18
6

10
6
4

8
3
5

2
1
1

7
5
2

7
3
4

In su ra n c e (total) ___________________ „
Union fist.ahlishmp.nts ...
Nonunion e s t a b lis h m e n t s _____

482
379
98

3 .1
3 .3
2 .5

131
87
41

202
1 62
40

108
94
12

34
31
3

5
4
1

2
1
1

_

_

_

_

_

-

-

-

-

-

L e g a lly req u ir e d p aym e n ts _________
Union e s t a b li s h m e n t s _________
Nonunion e s t a b lis h m e n t s _____

524
39 8
121

6. 5
6 .6
6 .0

_
_
-

62
40
22

213
160
53

126
101
24

74
58
14

28
22
4

10
7
3

7
7
-

3
2
1

1
1
-

_
_
-

O ld A g e and S u r v iv o r s
In s u r a n c e __________________________
Union e s t a b li s h m e n t s _________
Nonunion e s t a b lis h m e n t s _____

516
392
119

2 .5
2 .6
2 .2

63
25
38

44 5
35 9
81

8
8

_

_

_
_

_

_
_

.
_

_

_
_

-

-

-

-

-

-

-

-

U n em p lo y m en t c o m p e n s a t io n ___
Union e s ta b lis h m e n ts __ __
N onunion e s t a b lis h m e n t s _____

515
390
120

2 .3
2 .3
2 .3

25 4
20 0
54

182
130
51

75
57
14

4
3
1

_
_
-

_
_
-

_
_
-

_
_
-

_
_
-

_
_
-

_
_
-

W o r k m e n 's c o m p e n s a t io n _______
Union e sta b li sh m pn ts
Nonunion e s t a b lis h m e n t s _____

517
38 9
123

1 .6
1 .7
1 .5

38 8
292
95

89
72
15

22
12
8

9
6
3

6
5
1

2
1
1

1
1

_

_

_

_

-

-

-

-

State t e m p o r a r y d is a b ility
in s u r a n c e __________________________
Union e s ta b lis h m e n ts
Nonunion e s t a b lis h m e n t s _____

38
26
11

. 7
. 8

2
2

1
1

_

_

_

_

_

_

_

_

-

-

-

-

-

-

-

N u m b er
of
e s t a b lis h m e n ts
rep o rtin g
ex p e n d i­

9 .2
1 0 .1
6 .4

( 2)
A verage
per
p a y r o ll
hour
(c e n ts)

35
23
11 .

N u m b er o f e s ta b lis h m e n ts re p o r tin g ex p e n d itu res of—
U nder
10
c en ts

tu r e s
A ll s e le c te d i t e m s _________________
U nion e s ta b lis h m e n ts
N onunion e s t a b lis h m e n t s _____
A l l s e le c te d it e m s exclu d ing
p r e m iu m pay _________________ ___
Union e s ta b lis h m e n ts
Nonunion e s t a b lis h m e n t s _____
1

31 6

3 0 .8
3 2 .5

99

25. 6

478
367
107

2 2 .2

419

23.3
18 .5

18

4
14

10
and
under
15
cen ts
34
19

15

51
20

53
32

31

20

15
and
under
20
cen ts

33

20
and
under
25
c en ts

25
and
under
30
cen ts

40
and
under
35
c en ts

and
under
40
c en ts

and
under
50
c en ts

50
c en ts
and
over

50
36
11

54
45
9

72

65

67

26

19
14

62
10

54

59

18

10

8

8

90

116

74
14

100

89
74
15

38
16

26
1Q

10
9

5
3

2

7

1

2

15

Union sta tu s not a v a ila b le fo r 4 e s t a b lis h m e n ts .
N u m b er o f e s ta b lis h m e n ts too s m a ll to ju s tify com p u tatio n o f an a v e r a g e .
* T h e a v e r a g e s in this tab le a r e not a p p lica b le to m an u factu rin g as a w h o le. E s ta b lis h m e n t s in c u r rin g no e x p e n d itu res
f o r the p a r tic u la r it e m s stu d ied w e r e ex clu d ed in the com p utation o f th ese a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o ­
vid e ex pen d itu re d a ta .




63
TABLE 2 3 .— Expenditures as p ercent of p ayroll for reporting establishm ents o n ly *
by item and union status, 1953
N u m b er
of
e s t a b lis h -

N u m b e r of e s ta b lis h m e n ts re p o r tin g e x p e n d itu res of—
A verage
p ercen t

Ite m and union statu s 12
r ep o rtin g
ex p e n d i­
tu r e s

p a y r o ll

7
6
•5
8
1
3
4
9
2
and
and
and
and
and
and
and
and
Under and
1
under under under under u nd er u nd er under u nder under
10
6
7
8
5
3
4
2
9
oerp er­
p er­
p er­
p er­
p er­
p er­
p er­
p er­
p er­
cent
cent
cent
cen t
cent
cen t
cent
cent
cent
cent

10
p er­
cent
and
over

V a c a tio n s , h o lid a y s , and sic k
1 VP
Union e s t a b lis h m e n ts _________
Nonunion e s t a b l i s h m e n t s _____

52 8
404
120

4 .9
5 .2
3. 9

8
2
6

19
4
15

36
17
17

76
53
23

125
96
28

124
108
15

99
88
11

27
24
3

11
9
2

3
3
-

P aid v a c a tio n s --------------------------------Union e s t a b lis h m e n ts -------------Nonunion e s t a b l i s h m e n t s --------

52 4
40 0
120

3. 1
3. 2
2. 5

8
2
6

67
29
37

156
121
33

199
165
34

79
72
6

14
11
3

1
1

_
-

_
-

_
-

-

-

-

_
-

P a id h o lid a y s ________________________
U nion e s ta b lis h m e n ts _________
Nonunion e s t a b li s h m e n t s _____

471
37 8
90

1. 8
1 .9
1. 5

37
18
18

233
182
49

186
164
22

15
14
1

_
-

_
-

_
-

_
-

_
-

_
-

_
-

-

-

-

-

-

-

-

P a id s ic k le a v e - — _____ ______
U nion e s t a b lis h m e n ts _________
N onunion e s t a b l i s h m e n t s _____

87
63
24

.9
.9
.6

51
34
17

30
25
5

5
3
2

_
-

1
1
-

_
-

_
-

_
-

_
-

_
-

_
-

P r e m iu m p a y ____________________________

454
34 4
106

4. 8
4. 8
5. 0

32
20
12

60
48
11

44
31
13

61
48
13

67
51
14

50
42
8

37
29
7

30
23
7

27
23
4

20
14
6

26
15
11

406
300
104

3 .9
3. 7
4. 6

57
42
15

58
46
12

73
55

55
42
13

44
35
8

30
24
5

30
20
10

22
15
7

13
8
5

10
6
4

14
7
7

Nonunion e s t a b l i s h m e n t s _____

103
88
15

. 3
. 3
. 2

92
78
14

11
10
1

Nonunion e s t a b l i s h m e n t s --------

361
30 0
58

1 .2
1. 3
.9

147
112
33

P e n sio n s (to tal) _ __ ________ _______
Union e sta h li sbmont.s
Nonunion e s t a b l i s h m e n t s _____

271
215
55

3. 5
3. 1
5. 1

In su ra n c e ( t o t a l ) ________________________
Union e s t a b lis h m e n ts _________
N onunion e s t a b l i s h m e n t s _____

482
379
98

L e g a lly r e q u ir e d p a y m e n ts __ ______
Union e s t a b lis h m e n ts _________
N onunion e s ta b lis h m e n ts

Nonunion e s t a b l i s h m e n t s _____
O v e r tim e p r e m iu m p a y __

______

N onunion e s t a b l i s h m e n t s _____

18
_

'

-

_

_

_

_

_

_

_

_

-

-

-

-

-

-

-

-

-

158
136
21

38
35
3

16
15
1

1
1

1
1
-

-

-

-

-

41
34
7

36
31
5

45
36
8

54
46
8

35
31
4

23
18
5

10
8
2

11
5
6

6
3
3

2

8
3
5

1. 7
1. 7
1. 6

112
82
27

20 6
160
46

111
94
16

40
34
5

5
4
1

7
5
2

1
_
1

_
_

_
_

_
_

_

-

-

-

-

52 4
39 8
121

3. 6
3. 5
4. 0

_
_

30
24
6

182
152
30

126
98
27

100
68
32

51
34
15

19
13
5

10
7
2

4
2
2

2
_
2

_
_

O ld A g e and S u r v iv o r s
In su ra n c e _ __ __ _____ ______
U nion e s t a b lis h m e n ts _________
Nonunion e s t a b l i s h m e n t s _____

516
39 2
119

1 .4
1 .4
1 .4

8
5
3

49 5
379
111

12
7
5

1
1
-

_
_

_
_

_
_

_
_

_
_

_
_

_
_

-

-

-

-

-

-

-

U n em p lo y m en t c o m p e n s a t i o n ___
U nion e s t a b lis h m e n ts _ __ __
N onunion e s t a b l i s h m e n t s _____

515
390
120

1. 3
1. 3
1 .6

23 2
193
39

157
119
37

90
54
32

35
24
11

1
1

_
-

_
_
-

_
_
-

_
_
-

_
_

-

_
_
-

-

W o r k m e n 's c o m p e n s a t io n ________
U nion e s t a b lis h m e n ts _________
Nonunion e s t a b l i s h m e n t s _____

51 7
389
123

.9
.9
1. 0

363
27 2
90

107
89
16

23
17
5

14
6
7

8
4
4

1
1
-

1
_
1

_
_

_
_
-

_
_
-

_
_
-

38
26
11

.4
i4
(* )

35
23
11

2
2

1
1

-

_

P r e m iu m pay fo r h o lid a y w o r k __

State te m p o r a r y d isa b ility
in su r a n ce ___________________________
Union e s t a b lis h m e n ts _________
N o n u n io n

e s ta b lis h m e n t s

N u m b er
ox
e s t a b lis h ­
m e n ts
re p o r tin g
ex p e n d i­
tu re s
A l l s e le c te d it e m s __________ __ ___
Union e s t a b li s h m e n t s _______
N onunion e s t a b l i s h m e n t s ____
A l l s e le c te d it e m s e x clu d in g
p r e m iu m pay
U nion e s t a b li s h m e n t s _________
N onunion e s t a b l i s h m e n t s ____

_

Under
6
p er­
cent

-

_

_

_

_

-

_

_

_

-

-

-

_

20
16
8
10
12
14
6
and
and
and
and
and
and
and
and
under under under under under under under under
25
14
18
20
12
16
8
10
p er­
p er­
p er­
p er­
per­
per­
per­
per­
cen t
cent
cent
cen t
cent
cent
cent cent

5
1 6 .5
10
— 5—
TFTS--------- ------- T~
3
7
1 5 .8

47 8

1 1 .9
1 2 .1
1 1 .4

107

_.

N u m b er o f eis t a b lish m e n ts r e p o r tin g e x p e n d itu res o f —
A verage
p erc en t
of
p a y r o ll

41 9
316
99

~ w t ----------

_

-

2

17
------- T~
8

54

~JB—
26

19
11
8

82
“39
22

25
and
u nder
30
p er­
cent

30
p er cen t
and
over

15

58
45
11

57
46
10

78
66
12

65
56
9

70
56
13

16
7
9

4
2
2

103
90
12

87
75
11

78
64
13

33
21
6

13
9
4

8
6
2

2
2

1
1

37

-J T ~

C o lle c t iv e b a r g a in in g status not a v a ila b le fo r 4 e s t a b lis h m e n t s .
N u m ber o f e s ta b lis h m e n t s t o o s m a ll to ju s tify c o m p u ta tio n o f an a v e r a g e .
* The a v e r a g e s in th is ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the com p u ta tio n o f th e s e a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e
e x p e n d itu re data.
1
2




64

T he
ra tio s

fo r

a b se n ce

o f

in d iv id u a l

b a rg a in in g

a g re e m e n ts

fa c to rs

as

siz e

sta tu s.

It

o f

sa m e ty p es

n o tice a b le
a m on g

th e

c o lle c tiv e

o f s a m p lin g

and

su rv e y s

b a rg a in in g

p r o b le m s

as

o f

e x p e n d itu re

u n der

in te rre la tio n s h ip

in d u stry ,

th at e x p e n d itu r e

u n d er

co n ce n tra tio n

e sta b lish m e n ts

e m p h a s iz e s

e s ta b lis h m e n t,

in d ica te s

e sta b lish m e n ts

an y

ite m s

c o lle c tiv e

lim ite d

to

su ch

b a rg a in in g

m a n u fa ctu rin g

a g re e m e n ts

su rv e y s

co lle c tiv e

a m on g

w o u ld

fa ce

th e

co v e rin g

a ll m a n u fa c tu r in g

E a rn in g s

L e v e ls . — O ne

e s ta b lis h m e n ts .

V a ria tio n s
th e

ch ie f

ite m s

s tu d ie d

p e n d itu re s
tio n s,

and

is

on e

o r

p o in te d

w a s

T y p e

so m e

m o r e
in

o f

th e

w a s

not

m e n t s

2 .4
as

b y

fo r

ce n ts ).

a v e ra g e

O n ly
in

and

p e n d itu re s

a ll

p e r

fo r

6

e a rn in g s

p a y in g

w a s

p a id

e x ­

on

is

a m on g

is o la te d .

p r a c tic e s
th e

o b v io u sly

th e

e s ta b lis h ­

p ro v id in g

4

p a id

a m o u n tin g

a p p ro x im a te ly

6

w a s

p a id

3 .6

ce n ts .
th e

e s ta b lis h m e n ts

and

and

to

tw ic e

h o lid a y s,

fo r

$ 1 .4 0

th at

v a ria tio n .

w e re

and

h o lid a y s

$ 2 .2 0

ta b u la ­

v a ria tio n

h ou r

cen ts

b e tw e e n

b etw een

th e

th e se

o f

p a y ro ll

3 .2

ca u sin g

h o lid a y s

p ro v id in g

fr o m

5

o f

$ 2 .2 0

m en ts

in

lish m e n ts

in

W ith
a cco u n te d
tion

b y

fo r

th is

lis te d
b e

$ 1 .6 0

$ 2 .4 0

to

an

3 .8

h ou r

on

g ro u p

th e

re p o rte d

in
o f

th is

p a id

v a ca tio n s

o f

th e

cen ts
o f

4

$2
ra te

4 .6

cen ts

’ ’u n e x p l a i n e d ”

p o s s ib ility

o n ly

o f

th e

e s ta b lis h ­

th a n

th is

th at

w o rk e d

ra te
at

th e

le s s

fo r

w ith

o f th e

o f e r r o r s
52

e s ta b ­

fig u r e s .

(ta b le

ta b u la tio n

le n g th

o f

th e

s in ce

e s tim a te d

h o lid a y

a v e ra g e

se ctio n ;

h ou r

A ssu m in g

at

5 .1

a cco u n tin g

e x ­

an

e m p lo y e e

th re e -fifth s

e x p e n d itu re s

cen t

e sta b lish m e n ts

e a ch

a g a in st

re a d ily ,

p ro v id e d

to

le a st

p o s s ib ly

e a r lie r

p a id

th e

at

th a t

ra tio s

h o lid a y s

e x a m p le ,
1

$ 2 .2 0 .

ex p e n d itu re s

as

p a id

th an

o f

to

o f
F o r

le s s

$2

and

h o lid a y
cen ts

ex p e n d itu re

le v e l.

g ro u p

o f

h o lid a y s

o f

n u m b er

fr o m

in th e

le v e ls

4 .6

d is p o se d

th e

e a rn in g s

h ou r

y e a r,

fa c to rs

r e s p e c t
in

an

p a id

to

ca te g o ry

ca n

d is p e rs io n
by

ra n g e d

H o w e v e r,

o f th e

co m p u tin g




6

th e

h o u r.

w e re

th e

e a rn in g

a m ou n t

th is

e s tim a tio n

cen ts

r e c e iv e d

S om e

d is p e rs io n

6

d u rin g

an

o f

•’ e x p l a i n e d ”

h o lid a y s

h o u rly

w ou ld

h o u r.

p a id

and

h ou rs

h ou r

p a rt

w a s

e s ta b lis h m e n t^

6

a v e ra g e

an

in

th e

e m p lo y e e s

2 ,0 8 0

s m a ll
24

fo r

b etw een

g r o s s

a

ta b le

p r o v id e d

an

a v e ra g e

h o u rly

a ll

p r o v id e d

a v e ra g e

e sta b lish m e n ts

e s ta b lis h m e n ts

p a id

th e

ite m

E s ta b lis h m e n ts

th e

in c r e a s e d

th e

in fo rm a tio n

fo r

fo r

In

sa m e

e x p la in

h o lid a y s

2 4 ).

fo r

th e

o f

to

e x p e n d itu re s

T he

o f

fo r

2 8 .

o f

fig u r e s

a v e ra g e .

show n

to

o f p a id

h o lid a y s,

e x p e n d itu re

g r o s s

cen ts

p a id

g ro u p

a cco u n tin g

a m ou n t

(ta b le

p r a c tic e s

th rou gh

ra tio s

e x p e n d itu re s

a v e ra g e

8

(4 .9
th e

a v e ra g e

th e

fo r

th e

ex p en d itu re

th e

24

s u fficie n t

le v e l

re p o rte d

la rg e

W ith in

fa c to r s

n u m b er

e a rn in g s

ce n ts;

w ith

th e

on

ta b le s

e x p en d itu re

E s ta b lish m e n t
in flu e n ce d

h o lid a y s

in

and

sep a ra te

in fo rm a tio n

out p r e v io u s ly ,

re q u e ste d

o f P r a c tic e

o f o b ta in in g

illu stra te d

e sta b lish m e n ts
A s

b y

a d va n ta ges

th e

w a s

2 5 ),
tak en

v a ca tio n

a

v a ria b le

in to

n ot

c o n s id e r a ­

p e r io d

fo r

e a ch

65
T A B L E 2 4 . — E x p e n d itu re s p e r p a y r o ll h our f o r p aid h o lid a y s f o r r e p o r t in g e s ta b lis h m e n ts o n l y * b y e s ta b lis h m e n t
e a rn in g s le v e l and n u m b e r o f h o lid a y s p r o v id e d , 1953

G ross average hourly earnings and number
of paid holidays 1

Number
of
estab­
lishm ents
reporting
expendi­
tures

Number of establishm ents reporting expenditures of—
A verage
per
pa yroll
hour
(cen ts)

3
and
under
4
cents

5
6
and
and
under under
7
6
cents cents

4
and
under
5
cents

Under
1
cent

1
and
under
2
cents

2
and
under
3
cents

23

38

91

154

117

30

7
1

11
13
20
14
15
10
2

6
23
31
52
27
10
4

3
5
16
35
24
16
14

2
7
10
5
3

3
3
2
2

28
15
42
8
11
4
4
6
4
-

7
14
118
19
24
37
22
8
11
2

1
80
4
6
23
19
15
26
9

14
-

2
-

-

-

-

-

3
5
5
8

3
7

2

A ll establishm ents --------------------------------------------

471

3.4

Establishm ents with g ross average
hourly earnings of:
$ 1 .2 0 and under $ 1 . 4 0 -------------------------------$ 1.40 and under $ 1 . 6 0 -------------------------------$ 1 .6 0 and under $ 1 .8 0 -------------------------------$ 1.80 and under $ 2 . 0 0 -------------------------------$2. 00 and under $ 2 . 2 0 -------------------------------$ 2 .2 0 and under $ 2 .4 0 -------------------------------$ 2 .4 0 and under $ 2 .6 0 --------------------------------

34
53
74
118
85
48
26

2 .2
2 .9
3. 3
3. 6
3. 7
3. 8
4 .2

3
2
2
1

7
11
5
4
4
2
-

E stablishm ents providing:
4 paid holidays -------------------------------------------5 paid holidays ---------------------------------------------6 paid holidays ---------------------------------------------$ 1.40 and under $ 1 . 6 0 --------------------------$ 1.60 and under $ 1.80 --------------------------$ 1.80 and under $ 2 . 0 0 --------------------------$ 2 .0 0 and under $ 2 .2 0 --------------------------$ 2 .2 0 and under $ 2 . 4 0 --------------------------7 paid holidays --------------------------------------------8 paid holidays ----------------------------------------------

49
34
271
33
42
65
52
37
52
31

2 .4
2. 7
3.6
3.2
3.3
3. 7
3. 6
3. 8
4. 1
4.9

2
2
3
2
1
1
2

11
3
12
2
1
1
2
2
2
1

-

7
cents
and
over

4

14

-

-

-

-

-

-

-

1

1 S e le c t e d in te r v a ls and p r o v i s io n s .
* The a v e r a g e s in this ta b le a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu re s
f o r the p a r t ic u la r ite m s stu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e se a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e
e x p en d itu re d ata.

T A B L E 2 5 . — E x p e n d itu re s p e r p a y r o ll h ou r f o r pa id v a c a tio n s f o r r e p o r t in g e s ta b lis h m e n ts o n l y * b y e s ta b lis h m e n t
e a rn in gs le v e l and a v e r a g e length o f v a c a tio n , 1953

G r o s s a v e r a g e h o u r ly e a rn in g s
and a v e r a g e len gth o f v a c a t i o n 1

A ll e s t a b l is h m e n t s ---------------------------E s ta b lis h m e n ts w ith g r o s s
a v e r a g e ea rn in g s of:
$ 1 .0 0 and u n d er $ 1 . 2 0 -------------$ 1 . 2 0 and u n d er $ 1 . 4 0 -------------$ 1 .4 0 and u n d er $ 1 . 6 0 -------------$ 1 .6 0 and tinder $ 1 . 8 0 -------------$ 1 .8 0 and u n d er $ 2 . 0 0 -------------$ 2 . 00 and u n d er $ 2 . 2 0 -------------$ 2 . 20 and u n d er $ 2 . 4 0 -------------$ 2 .4 0 and u n d er $ 2 . 6 0 -------------E s ta b lis h m e n ts p r o v id in g
a v e r a g e v a c a tio n s o f:
L e s s than 1 w e e k -----------------------1 and u n d er 1 .5 w e e k s ---------- ----1 . 5 and u n d er 2 w e e k s --------------$ 1 .4 0 and u n d e r $ 1 . 6 0 --------$ 1 .6 0 and u n d er $ 1 . 8 0 --------$ 1 .8 0 and u n d e r $ 2 . 0 0 --------$ 2 . 00 and tinder $ 2 . 2 0 --------$ 2 . 2 0 and u n d er $ 2 . 4 0 --------2 and under 2 . 5 w e e k s —

N u m ber
of
estab­
lis h m e n ts
r e p o r t in g
e x p e n d i­
tu r e s

N u m b e r o f e s ta b lis h m e n ts r e p o r t in g e x p e n d itu re s o f—
A v era g e
per
p a y r o ll
hou r
(ce n ts )

U nder

524

5 .8

8

26

36

29
46
56
81

2. 1
3 .4
4. 5
5. 1
6. 0

2

-

11
6

10
10

1
1

3

3

-

1

6.8

1
1

-

120

90
50
26

1

ce n t

7. 5
8 .9

-

52
138
191
27
31
51
36

2.2

3

4. 3
6. 1
5 .0
5. 7
6 .3

1

20
114

7 .5
8. 1

6.8

-

3
4
1
2
and
and
and
and
tinder u nd er u n d er u n d er
2
3
4
5
cen ts cen ts ce n ts ce n ts

23
3
”

62

6

62

-

5
7
6
and
and
and
tinder u nd er u n d e r
8
7
6
cen ts ce n ts ce n ts

96

-

84

-

40

23

31

-

-

4

-

15

11

2

1

1

18
9
13

18
23
34

6

11

9
18
14

-

5

-

-

4
-

4
17
28
24
5
4

18
17
1

-

2

6

1

1

39
15
2
3

32
23
10

29
55
13

1
4

16
16

1
_

2

2

5

5
3
7

1

-

13
45
2
8

17
14

3
22

10

c e n ts
-and
over

56

12
10
11
6
2

8
2
1

8
9
and
and
tinder tinder
10
9
c e n ts ce n ts

11

3

1

31
3
10
9
8
22

1
8

15
9
5

1
12
3
3
3
21

6

1
6

9
3

4
9

7
3

2
2
-

14

21

2

1 S e le c t e d in te r v a ls and p r o v i s io n s .
* T h e a v e r a g e s in this ta b le a r e n o t a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s stu d ie d w e r e e x c lu d e d in the c o m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts u na ble to p r o v id e
e x p en d itu re data.




6 6

establishment, 30 A s expected, average expenditures for paid vacations,
in cents-per-payroll hour, increased consistently with establishment
earnings levels and with the size of the average vacation period.
A m o n g establishments providing an average of b e t w e e n 1V 2 and 2 w e e k s
of vacations, with gross average hourly earnings b e t w e e n $2 and
$2.20, expenditures per hour ranged f r o m less than 4 cents to m o r e
than 9 cents. A s s u m i n g 60 and 80 hours to be the equivalent of 1 llz
a n d 2 weeks, and that each e m p l o y e e w o r k e d 2,080 hours during the
year, the ’Explained11 variation ranged b e t w e e n 5. 8 cents (60 hours
at $2 an hour) an d 8.5 cents (80 hours at $ 2 . 2 0 an hour).31
Thus,
the ,!unexplained'1 variation in this case w a s relatively small.
Only 6
of the 36 establishments provided estimated figures; one a m o u n t e d to
m o r e than 9 cents an hour, one to b e t w e e n 5 a nd 6 cents.
T h e influence of the a m o u n t of shift w o r k on shift p r e m i u m
expenditures is d e m o n s t r a t e d in table 26.
T h e dispersion of estab­
lishment expenditures within the categories d e t e r m i n e d by the ratio
of shift p r e m i u m hours to total payroll hours signifies the operation
of factors other than the a m o u n t of shift work. Included a m o n g these
factors, of course, are the size of the shift differential a n d the p r e v a ­
lence of third-shift w o r k w h i c h typically carries a higher p r e m i u m
rate than w o r k on the second shift.
A distribution of expenditures on paid sick leave by the type
of plan in effect (table 27) revealed that expenditures on informal or
discretionary leave plans w e r e substantially lower, on the average,
than expenditures connected with formal plans. This undoubtedly w a s
due largely to differences b e t w e e n discretionary and formal plans in
the proportions of e m p l o y e e s sharing this benefit.
Little could be done with the a m o u n t of information requested
in isolating s o m e of the factors accountable for variations in pension
expenditures.
H o w e v e r , a separation b e t w e e n contributory and n o n ­
contributory plans disclosed slightly higher average expenditures for
the contributory plans in cents per h o u r 32 (table 28) an d percent of
payroll (3.7 percent as against 3.5 percent— table not shown). This
finding is significant chiefly because it appears to run counter to a
popular conception that, in general, noncontributory plans require
greater e m p l o y e r expenditures than contributory plans. O n the basis

30 F o r each establishment, the n u m b e r of employee-vacation
w e e k s w e r e aggregated and divided by the average n u m b e r of production
a n d related w o r k e r s (including e m p l o y e e s w h o did not receive a paid
vacation) to arrive at the average vacation period per e m p loyee.
For
all establishments with vacation practices, the average thus c o m p u t e d
w a s 1.7 w e eks. T h e average vacation per vacationer a m o u n t e d to 1.8
weeks.
31 T h e vacation and earnings intervals could be m a d e n a r r o w e r
with a larger n u m b e r of establishments reporting.
32 T h e actual figures reported s h o w e d a difference of 0.5 cent.



67
T A B L E

2 6 . — E x p e n d itu r e s

p e r p a y r o ll h o u r fo r

Volume of shift w ork

Number
of
esta b lish ­
ments
reporting
expendi­
tures

s h ift p r e m iu m s

A verage
per
p ayroll
hour
(cents)

fo r

re p o r tin g

e s ta b lis h m e n ts

1 361

2 .4

75

95

71

67

Ratio of shift prem ium hours to
total payroll hours:
L ess than 5 p e r c e n t ________
5 and under 10 p e r c e n t _____
10 and under 15 p e r c e n t ____
15 and under 20 p e r c e n t ____
20 and under 25 p e r c e n t ____
25 and under 30 p e r c e n t ------30 and under 35 p e r c e n t _____
35 and under 40 p e r c e n t _____
40 and under 45 p e r c e n t ------45 and under 50 p e r c e n t _____
50 percen t and m ore ________

33
33
35
27
34
50
31
31
21
24
23

1.3

22
24
12
2

5

2

3

-

6
7
7
14

1
2
2
8
10

2

2
6
15
16
19
21
5
4
3
1

-

-

1.4
1. 7
2 .4
2. 7
3. 5
3. 0
3. 3
3. 8
4. 5

o f s h ift w o r k ,

Number o'f establishm ents reporting eixpenditures of —
5
6
4
3
1
2
and
and
and
and
and
and
Under
under
under
under
under
under
1
under
7
5
6
4
3
2
cent
cents
cents
cents
cents
cents
cents

A ll establishm ents _ ----------------------

.8

o n ly * b y v o lu m e

-

1
2
-

6

12
4

10

11

16

1

1

-

-

-

-

1
5
1
2
2
2
2
1

15
11

7
cents
and
over

16

-

7
7

6
-

1953

1
3
3
2

1
3
2
2

-

3
2

-

1

2

1

-

1

1
4

1 N u m b er o f sh ift h o u rs not a v a ila b le fo r 19 e s ta b lis h m e n t s .
* The a v e r a g e s in this table a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th ese a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e
e x p en d itu re data.

T A B L E 2 7 . — E x p e n d itu re s p e r p a y r o ll h ou r fo r s ic k le a v e f o r r e p o r tin g e s ta b lis h m e n ts o n l y *
by type o f p la n , 1953
A ll
s ic k le a v e
plans

E x p e n d itu re s p e r p a y r o ll hour
(in ce n ts )

F orm al
p lan s

In fo rm a l
or
d is c r e t io n a r y
plans

E s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s ______________

1 87

60

23

A v e r a g e e x p e n d itu re in ce n ts p e r p a y r o ll h o u r ______

1.7

2. 2

0. 6

37
19
14
9
4
4

17
13
13
9
4
4

17
5

E s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s of:
U nder 1 c e n t ----------------------------------------------------------------1 and un d er 2 c e n t s ----- --------------------------------------------2 and un d er 3 ce n ts ------------------------------------------ ------3 and u nd er 4 ce n ts _________________________________
4 and u nd er 5 ce n ts _________________ ____________ __
5 cen ts and o v e r ______________________________________

1
-

-

1 T ype o f plan not r e p o r t e d in 4 c a s e s .
* The a v e r a g e s in this table a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le .
E s ta b lis h m e n ts in ­
c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ied w e r e e x c lu d e d in the co m p u ta tio n o f th e se
a v e r a g e s , as w e re e s ta b lis h m e n ts unable to p r o v id e e xp e n d itu re data. 1

T A B L E 2 8 .— E x p e n d itu re s p e r p a y r o ll h ou r fo r p e n s io n plans fo r r e p o r tin g e s ta b lis h m e n ts o n l y *
by type o f p la n , 1953
A ll
p e n s io n
plans

E x p e n d itu re s p e r p a y r o ll h ou r
(in c e n ts )
E s ta b lis h m e n ts r e p o r tin g e x p e n d it u r e s _______________
A v e r a g e e x p e n d itu r e s in ce n ts p e r p a y r o ll h o u r _____
E s ta b lis h m e n ts r e p o r tin g e x p e n d itu re s of:
U nder 2 ce n ts
________ __
______ __ _____
2 and u n d e r 4 c e n t s ___________________________________
4 and un d er 6 ce n ts
_ ..
6 and u n d er 8 ce n ts
_____ __
_______ __
8 and u n d er 10 c e n ts __ __ __ __
_____ _______
10 and un d er 12 ce n ts
12 and un d er 14 ce n ts _
__ __ _____ __ __
14 and u n d er 16 ce n ts - __
__ __
16 and u n d e r 18 ce n ts _
_ _ _ _ _ __
__ __
18 c e n ts and o v e r __
_
__
__
__ __

~

r^Ti
7. 0
43
40
43
52
35
24
10
8
2

14

C o n tr ib u to r y
plans

1

N on­
c o n t r ib u to r y
plans

73

191

7. 2

7. 0

8

33

13

26

10
12

32
37

15
4
5
3
_
3

20
20

5
5
2
11

1 Seven e s ta b lis h m e n ts did not id e n tify type o f plan .
* The a v e r a g e s in th is table a r e not a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in ­
c u r r in g no e x p e n d itu r e s f o r the p a r t ic u la r ite m s stu d ied w e re e x c lu d e d in the co m p u ta tio n o f th e se
a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o v id e ex p e n d itu re data.




6 8

of these data, this w a s not the case a m o n g the establishments c o v e r e d
b y this study in 1953.
T h e inability to account for variations a m o n g establishments
in expenditure ratios, w h i c h differs in degree a m o n g the selected items
studied, w o u l d s e e m to be m o r e of a limitation on the types of uses
of expenditure data than on the scope an d techniques of expenditure
surveys.
H o w e v e r , intensive studies directed t o w a r d this p r o b l e m
could substantially n a r r o w the area of unexplained variation and, over
time, facilitate those uses of expenditure data w h i c h d e p e n d m o r e on
specific establishment c o m p a r i s o n s than on aggregate data.
Variations in Legally Required P a y m e n t s A m o n g R e g i o n s .—
Wit h the exception oT Old A g e and Survivors Insurance, rates and
practices regarding legally required p a y m e n t s vary by states.
Thus
geographic balance in expenditure survey s a m p l e s a s s u m e s specific
importance. In u n e m p l o y m e n t compensation taxes, for example, about
98 percent of all rated e m p l o y e r s in Color a d o w e r e assigned a zero
rate in 1953; M assachusetts an d R h o d e Island, on the other hand,
collected 2.7 percent of taxable w a g e s f r o m all e m p l o y e r s . 33 Regional
differences in the levels of legally required payments, in t e r m s of
cents-per-adjusted-payroll hour (table 29) an d percent of payroll
(table 30), w e r e cau s e d in part by variations in state requirements
a m o n g the establishments cov e r e d in this survey.
A v e r a g e expenditures for Federal and State u n e m p l o y m e n t
c o m p e n s a t i o n taxes in cents-per-adjusted-payroll hour r a n g e d f r o m 102
in W e s t N o r t h Central States to 3.7 in N e w England.
The correspond­
ing range in percent of payroll w a s 0 o7 to 2.1. W o r k m e n ^ c o m p e n s a ­
tion p r e m i u m s , or the equivalent in self-insured costs, r anged f r o m
0.9 cent an hour (or 0.6 percent of payroll) in the South Atlantic
region to 2.5 cents (1.3 percent of payroll) in the Pacific Coast States.
Total legally required p a y m e n t s w e r e highest, in cents per hour, in
the Pacific (8.7 cents), N e w England (8.2 cents) and Middle Atlantic
regions (8.0 cents).
Percentagewise, the highest expenditures w e r e
reported by establishments in the N e w Eng l a n d (4.6 percent)
an d
Pacific regions (4.3 percent).

33
R e v i e w of Experience Rating, 1953 in L a b o r M a r k e t and E m ­
p l o y m e n t Security, U. S. D e p a r t m e n t of Labor, B u r e a u of E m p l o y ­
m e n t Security, S e p t e m b e r 1954, p. 23.




69
T A B L E 2 9 . — E x p e n d itu r e s p e r a d ju ste d p a y r o ll h o u r 1 f o r le g a lly r e q u ir e d p a ym e n ts f o r r e p o r t in g e s ta b lis h m e n ts o n ly *
b y r e g io n and type o f p a y m e n t, 1953

N u m ber
of
e s t a b lis h ­
m en ts
r e p o r tin g
e x p e n d i­
tu re s

Ite m and r e g io n

A ll le g a lly r e q u ir e d p a y m e n ts:
A l l r e g i o n s ---------- ------- ----------------------------N ew E n g la n d _____________________________ —
M id d le A tla n tic --------------------------------------------E a s t N orth C en tra l ------------------------------- __
W e s t N orth C e n tr a l ------------------------------------South A tla n tic _______________________________
E a s t South C e n t r a l-----------------------------------------W e s t South C en tra l ------------------------------------M ountain ------------- ------- -------------------------------P a c i f ic ----------------- ----------------------------------I n t e r r e g io n a l __________ __________________
O ld A g e and S u r v iv o r s In su ra n ce ;
A ll r e g io n s __ ------------- ------------------------ —
N ew E n g la n d _____ __ __ __ --------------------M id d le A tla n tic _____________________________
E a s t N orth C en tra l __________________________
W e s t N orth C e n tr a l ------------------------------------South A tla n tic --------------- ----------------------------E a s t South C e n t r a l____________*__________ __
W est South C en tra l --------------- --------------------M ountain ___________________ ____________ __
P a c i f ic
____________________________________
I n t e r r e g io n a l ____________________ ______
U n em p loy m en t c o m p e n s a tio n ( F e d e r a l
and State):
A ll r e g io n s __ _____________________________
N ew E n g la n d _________________________________
M id d le A t l a n t i c ------- ---------------------------------________ ____________
E a s t N orth C en tra l
W est N orth C e n tr a l ______ _____ _____ __
South A tla n tic _____________ — ____________
E a s t South C e n t r a l------- ----------------------------W est South C e n tra l ___ — ------------------ __
M ountain __________________________ __ __ __
P a c i f ic ______ ____________ _____________ „
I n t e r r e g io n a l
__ ------------------ __ _____ __
W o r k m e n 's c o m p e n s a tio n :
A ll r e g i o n s ---------------- ------------------

-------------

N ew E n g la n d _____ „ _____ ________ __ __
M id d le A t l a n t i c _____ __ __ __ ------- ------E a s t N orth C en tra l _________________ __ —
W es t N orth C e n tr a l
_____ _____ _ _ ___
South A tla n tic
__ __ ________ __ _____
E a s t South C e n t r a l____________________________
W e s t South C e n tra l
_____ _____ ___
M ountain ________ ___ __
_____ ________ __
P a c i f ic
__ — _______________ _____ _____
In t e r r e g io n a l ___ ____________
______
State t e m p o r a r y d is a b ilit y in s u r a n c e :
A ll r e g io n s __ __ ____________ _____ __
M id d le A t l a n t i c ------------------------------------------------

N u m ber o f e s ta b lis h m e n ts r e p o r tin g e x p e n d itu r e s o f—
A v e ra g e
per a d ­
ju s te d
p a y r o ll
hour1
(ce n ts )

U nder
4
ce n ts

4
and
under
6
ce n ts

6
and
under
8
ce n ts

8
and
un d er
10
ce n ts

10
and
u nd er
12
c e n ts

12
and
u nd er
14
ce n ts

14
c e n ts
and
over

524

6. 8

46

196

142

79

33

14

14

53
130
163
39
46
22
16
3
32
20

8 .2
8 .0
6 .2
5 .8
4 .9
5 .5
6. 5
( 2)
8. 7
6. 5

3
4
10
7
11
4
2
2
_
3

7
37
75
21
29
9
5
_
6
7

19
33
56
5
3
6
6
1
7
6

12
31
14
3
3
3
1
_
9
3

5
13
6
2

6
3
2

1
9

-

1

-

-

-

-

-

1
6
-

_
2
1

1
_
2

516

2 .6

505

11

-

-

-

-

-

53
128
157
39
47
22
16
3
32
19

2 .5
2 .7
2 .8
2. 7
2 .0
2 .4
2 .3
( 2)
2 .8
2 .9

53
124
152
38
47
22
16
3
31
19

-

_
-

.
-

.
-

515

2 .4

423

53
128
158
39
46
22
16
3
31
19

3 .7
3 .0
2 .0
1 .2
2 .0
2 .2
1 .6
( 2)
3 .5
1 .9

517
54
129
161
38
46
21
14
3
31
20

_
-

-

-

-

4
5
1
_

_

-

-

-

-

_
_

_

_

_

_

-

-

-

-

-

-

-

1
-

-

-

-

-

-

-

-

-

-

-

85

7

_

_

_

-

26
96
144
38
45
19
16
3
17
19

24
31
11
1
1
3

3
1
3

-

-

-

-

-

-

_

1 .7

-

-

_

_

_

-

-

_

-

-

-

-

_

_

_

-

-

_

_

_

_

_

-

_

_

_

_

-

-

14

_

_

_

_

-

-

-

-

-

-

-

472

27

8

6

3

1

-

1 .9
2 .2
1 .4
1 .9
.9
1 .0
( 2)
( 2)
2. 5
1 .7

49
111
157
33
44
21
10
3
25
19

3
8
3
4
2

1
3
1
1
_

_

_

2

1

_

_

5

_

-

38

.8

37

32

.6

32

'

5

1
1

1

-

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_

_
_

1

_

_

_

_

_

_

_

_

1

1
-

-

-

-

1

_

_

_

_

_

-

-

-

-

-

-

A d ju s te d p a y r o ll h o u r s = total p a y r o ll h o u r s l e s s v a c a tio n , h o lid a y , and s ic k le a v e h o u r s p a id f o r and taken.
2 N u m ber o f e s ta b lis h m e n ts to o s m a ll to ju s t ify com p u ta tio n o f an a v e r a g e .
* T he a v e r a g e s in this ta b le a r e n ot a p p lic a b le to m a n u fa ctu rin g as a w h o le . E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s stu d ie d w e r e e x c lu d e d in the com p u ta tio n o f th ese a v e r a g e s , as w e r e e s ta b lis h m e n ts unable to p r o ­
v id e ex p en d itu re data.
1




70
T A B L E 3 0 .— E x p e n d itu re s f o r l e g a lly r e q u ir e d p a y m e n ts a s p e r c e n t o f p a y r o ll f o r r e p o r tin g
e s ta b lis h m e n ts o n l y * b y r e g io n and type o f p a y m e n t, 1953
N u m b e r o f e s ta b lis h m e n ts r e p o r t in g e x p e n d itu re s o f—

Item and r e g io n

A l l l e g a lly r e q u ir e d p a y m e n ts :
A ll r e g io n s ---------------------------N ew E n g la n d -----------M id d le A tla n tic ------E a s t N o rth C e n tr a l ■
W e s t N orth C e n tr a l ■
South A t l a n t i c ----------E a s t South C e n tr a l W e s t South C e n tr a l M o u n t a in ------------------P a c i f i c ----------------------I n t e r r e g io n a l O ld A g e and S u r v iv o r s In s u r a n c e :
A l l r e g i o n s --------------------------------N ew E n g la n d -----------M id d le A t l a n t i c -------E a s t N orth C e n tr a l -■
W e s t N orth C e n tr a l ■
South A t l a n t i c ----------E a s t South C e n tr a l W e s t South C e n tr a l •
M o u n t a in ------------------P a c i f i c —-------------- —
I n t e r r e g io n a l
U n em p loy m en t c o m p e n s a t io n (F e d e r a l
and S tate):
A l l r e g i o n s ------------------------ ----------------N ew E n gland —-------M id d le A t l a n t i c -------E a s t N o rth C e n tr a l
W e s t N orth C e n tr a l •
South A tla n tic --------E a s t South C e n tr a l ~
W e s t South C e n tr a l ■
M o u n t a in ------------------P a c i f i c --------------------In t e r r e g io n a l
W o r k m e n 's co m p e n s a tio n :
A l l r e g io n s —— -----------N ew E n gland —— — M id d le A t l a n t i c ------E a s t N orth C e n tr a l •
W e s t N o rth C e n tr a l •
South A t l a n t i c --------E a s t South C e n tr a l W e s t South C e n tr a l M o u n t a in -----------------P a c i f i c --------------------In t e r r e g io n a l ---------State t e m p o r a r y d is a b ilit y
in s u r a n c e :
A l l r e g io n s ---------------------M id d le A tla n tic *

of
A verage
4
3
5
6
2
estab­
1
7
percen t Under
and
and
and
and
and
and
lishm ents
percen t
of
under
under
under
under
under
under
reporting
1
and
p a yroll
3
5
7
expendi­
percent
4
6
2
over
p ercen t percen t percen t p ercent percen t percen t
tures

30

524

3 .6

53
130
163
39
46

20

4 .6
4. 1
3 .0
3.1
3 .6
3 .5
4. 1
(M
4 .3
3 .0

-

516

1 .4

8

53
128
157
39
47

2

3
32
19

1 .4
1 .4
1 .4
1 .4
1 .5
1.5
1 .4
P)
1 .4
1.3

515

1.3

53
128
158
39
46

2. 1
1.6
1. 0

16
3
31
19

1.2
P>
1.8

22
16
3
32

22
16

22

.7

1.6

1 .4

.9

_
-

2

4
14
4
.

1

3

1
1

.

4

2
.
-

7
38

100
33
15
9
9

2
8
11

126

100

51

19

16

5
32
82
19
15

12

15
37
18
5
15
3

11
19
4
4
3

5
7

3
5

.

-

4

7

6
1
1
8

12

1

_

50
119
151
39
46

4
4
-

157
17
51
43
5
13

8

4

1

1

.8

38

.4

32

.3

20

.
-

1
2

-

-

-

23

14

8

11
3
1

1
10

3

-

4

4

""

35

2

1

30

2

-

-

1

“

3

15
15

-

-

-

1
2
2

6
2

-

-

-

-

1
8
2

(l )
(M
1.3

_
.
-

2

7

15
30
29

14
3
31

•
“

8

35
82
128

40
18

-

14
-

1.1
1.0

22

-

10
11

54
129

1.0
.6
.6

.
-

19
28

1

_

-

1

4
5

1
5
2
2
1

1

3

-

1

1

_
.

-

-

1
1

1
~

-

-

-

-

1

-

_

-

_

2

-

1

1

1

.

-

.

~

-

3
-

1

3
3
-

•

.

10
1

1
1

1

-

35

13
4

1

2

.
-

90

2

107

38
46

1

*

1

.
-

1
1

.

.
.
~

363

21

1

495

.9

.7

12
10
6
1

2

517

161

26
42
7

7
3

3
30
19

232

182

13

22
16

-

.

1 N u m b er o f e s ta b lis h m e n ts t o o s m a ll to ju s t ify c o m p u ta tio n o f an a v e r a g e .
* T h e a v e r a g e s in this ta b le a r e n o t a p p lic a b le t o m a n u fa ctu rin g a s a w h o le .
E s ta b lis h m e n ts in c u r r in g no e x p e n d itu r e s
f o r the p a r t ic u la r ite m s s tu d ie d w e r e e x c lu d e d in the co m p u ta tio n o f th e s e a v e r a g e s , a s w e r e e s ta b lis h m e n ts una ble to p r o v id e
e x p e n d itu re data.




B L iS

2409

U. S. D E P A R T M E N T O F L A B O R

Budget Bureau No. 44-6406.
Approval expiree Dec. 81, 1864

B U R E A U O F L A B O R S T A T IS T IC S
W a s h in g t o n 2 5 , D . C .

CONFIDENTIAL
T h e M e a s u r e m e n t of Expenditures on Selected Items
of S u p p l e m e n t a r y E m p l o y e e R e m u n e r a t i o n , 1953

This survey is designed primarily to provide i n f o r m a ­
tion o n h o w expenditures on selected item s of s u p p l e m e n t a r y
r e m u n e r a t i o n for production a n d related w o r k e r s c a n be m e a s u r e d
or estimated. If y o u cannot supply s o m e of the information r e ­
quested below, please indicate w h y . R e a s o n s for y o u r inability
to furnish su ch data are important parts of this survey.
T h e period to be c o v e r e d is the calendar y e a r 1953. If
a reply to a n y question m u s t be c o m p u t e d o n another basis,
please write in the period c o v e r e d next to y o u r a n s w e r .
In the case of multiplant co m p a n i e s , a report covering
the plant identified o n the a c c o m p a n y i n g letter w o u l d be preferred.
H o w e v e r , multiplant c o m p a n i e s m a y report for all plants if
r e c o r d s are ma intained o n that basis.
W h i c h e v e r alternative
is selected, it is essential that all of the information supplied
relate to the s a m e unit.

E S T A B L I S H M E N T (S) C O V E R E D

N a m e of c o m p a n y
Plant(s) c o v e r e d by report

City a n d state

Authorizing official

Title

Mailing a d d r e s s
D o e s a collective b a r g a ining a g r e e m e nt cover a majority of production a n d r e ­
lated w o r k e r s ?
Yes | 1
No 1 [
H.

P A Y R O L L . A N D E M P L O Y M E N T I N F O R M A T I O N (Please see instructions H - A ,
II-B a n d H —d . ) T h is basic information will be ~n ee de d to relate the expendi­
tures reported in Section IV to annual payrolls, hours, a n d e m p l o y m e n t .
A.

G r o s s payroll for production a n d related w o r k e r s - 1953:

B.

Total m a n - h o u r s for production a n d related w o r k e r s (hours paid
for - 1953):________________

C.

A v e r a g e n u m b e r of e m p l o y e e s during 1953:
Total _______________




$ _______________

Pr oduction a n d related w o r k e r s ___________________
71

72

HI. P L A N T PR A C T IC E S FO R PRODUCTION AND R E L A T E D W ORKERS.
T h ese qu estion s a re d esig n ed to obtain in form a tion on the extent and nature
o f com pany p r a c t ic e s with r e s p e c t to the item s lis te d . The a n sw ers are
n eeded to understand the expenditure fig u re s re p o rte d in S ection IV.
A.

P aid v a ca tion s in 1953 (see in stru ction II I-A -1 , and A - 2 . )
1.

2.
B.

C.

D.

A p p rox im a te num ber o f p r o ­
du ction and re la te d w o r k e rs
r e c e iv in g paid va ca tion s

N um ber of weeks* pay
(or equivalent)

____________________

w o r k e rs

_____________________ w eek

____________________

w o r k e rs

w eeks

____________________

w o r k e rs

w eeks

____________________

w o r k e rs

w eeks

T ota l va ca tion m a n -h o u rs paid fo r and taken: ________________ h ou rs

P aid h olid a ys (see in stru ctio n I I I - B - 1, and B - 2 .)
1.

N um ber o f h olid a ys paid fo r during 1953: ________________

2.

T ota l h olid ay m a n -h o u rs paid fo r but not w orked: __________

days
hours

P aid sick lea ve (R eport in su red sick n e ss and a ccid en t ben efits
under F . )
1.

P le a s e in dicate w hether you have (1) a fo rm a l and definite plan fo r
granting paid sick le a v e to a m a jo rity o f e m p lo y e e s |~|, (2) an
in fo rm a l o r d is c r e tio n a r y plan | |, or (3) no plan | j

2.

T ota l sick lea ve h ou rs paid fo r in 1953:_______ h ou rs.
tion I I I - C - 2 . )

(See in s tr u c ­

Shift d iffe re n tia ls
1.
________ Shift________

__________ Am ount o f shift d iffe re n tia ls______ __
C ents
P e rce n t
per
or
of
or
Other
hour______
earnings
(sp e cify )

E vening ( 2 d ) _______ ________________ _________________ _______________
Night (3 d )________ ________________________________________________________
Other ( e .g . 4th,
r e lie f, e tc. )
S p e c i f y ----------------- ------------------------ --------- -----------------------------------------2.




Indicate the a pp roxim a te total num ber o f m a n -h ou rs paid fo r in
1953 fo r w ork on a ll sh ifts fo r w hich a d iffe re n tia l w as paid:
hours

73

m.

P L A N T P R A C T IC E S FO R PRODUCTION AND R E L A T E D WORKERS
- C ontinued
E.

P e n sio n o r re tire m e n t plan
1.
2.
3.

D o e s the e sta b lish m en t have a p en sion o r r e t ir e m ent plan c o v ­
erin g a m a jo r ity o f e m p lo y e e s ?
Y es | |
No | | ___
If so, do e m p lo y e e s con tribu te to it? Y e s □
N oO
If pen sion s a re p ro v id e d , in dicate m ethod o f funding:
| | On p a y - a s -y o u - g o b a s is .
| | T hrough in su ra n ce com pany.

Through p r o fit-s h a r in g fund.
| | T hrough s e lf-in s u r e d tru st

| 1 O ther (sp e cify )

fund.

4.

F.




Was a pa rt o f p a s t -s e r v ic e lia b ility funded during 1953?____________
Y es o r No
In su ra n ce , health, and w e lfa re plan
1.

D oes the esta b lish m en t have such a plan co v e rin g a m a jo rity of e m ­
p lo y e e s ?
Y es
No | [
If so, do e m p lo y e e s con tribu te to it? Y e s | |
No

2.

M ethod o f com pan y financing: P le a s e in dicate how the plan was
fin a n ced in 1953:
| | C om pany m ade a fix e d con trib u tion fo r ea ch w o rk e r c o v e re d .
The com pany con trib u tion was (indicate amount):
______________d o lla r s p e r m onth p e r e m p loy ee, o r
______________ cen ts p er hou r, o r
______________ p e rce n t o f p a y r o ll, or
________ _____ other (sp e cify )________________________________
| | C om pany did not m ake a fix e d con trib u tion but p ro v id e d ben efits
or covera ge.
A ll o r m o st o f the ben efits w ere p ro v id e d through:
□ P u rch a se o f in su ran ce to c o v e r b en efits
| [ S e lf-in s u r e d plan
[ | C om bin ation o f above m eth ods (s p e cify )____________________________

3.

B en efits p ro v id e d fo r e m p lo y e e s by plan
.Life in su ra n ce (death b e n e fit s )__________________
A ccid e n ta l death and d ism em b erm en t __________
W eekly sick n e ss and a ccid en t (nonoccupational),
H osp ita liza tion ___________________________________
S u r g ic a l_____________________ ______________________
M e d ica l (other than s u r g ic a l)____________________
O ther (s p e c ify ) ------------------------------------------------------

74
IV .

CO M PAN Y EXPEND ITU RES ON SE L E C T E D ITEM S OF SU PPLE M E N TA R Y
REM U NERATION F O R PRODUCTION AND R E L A T E D WORKERS
The im portan t ty p e s o f in form a tion to be obtained fr o m this s e ctio n a re:
1.
2.
3.
4.
5.

Do you keep separate tim e and expenditure r e c o r d s fo r the item s
listed*? (C o ls . 1 and 2)
If you keep such r e c o r d s , how often do you su m m a rize the e n trie s ?
(C o ls . 3 and 4)
What w ere the actual expen ditu res fo r each item in 1953? (C o l. 5)
If you do not keep r e c o r d s fo r each item , o r i f sep arate r e c o r d s a re not
m ain tain ed fo r the unit c o v e r e d by this re p o rt, what w ould be you r b est
a p p rox im a tio n o f ex p en d itu res? (C ol. 6)
If you p r o v id e d an a p p roxim a tion of ex p en d itu res rath er than actual
fig u r e s , b r ie fly how did you d e riv e the estim ate (e. g. "to ta l ex p en d i­
tu r e s p r o r a te d on the b a s is o f p a y r o lls " ; "n u m ber of days o r m a n -h ou r
in v olv ed m u ltip lied by a v e ra g e ea rn in gs, " e t c .) ? (C ol. 7)

E a ch o f th ese o b je c t iv e s , tog eth er or sep a ra tely, is im portant fo r this study.
B E F O R E FILLIN G OUT THE FOLLOW ING SECTION, P LE A SE READ THE
INSTRUCTIONS

Item

Records for procluctlon and
related hoi*kers
Are ex­ Frequency with
Are time penditure which records
records records are summarized ^
kept?
kept?
Expendi­
Yes or No Yes or No Time tures
_.(n

A.

(2)

- <3)

(*)

Expendlitures for production and
rc lated work*srs in 1953
I f approximated,
Approxi- Indicate briefly for
Actual c>r mate each item the method
amount or basis of your
calculation (use
separate sheet If
(6)
_ 15)
necessary)
(7)

V a ca tio n s , holidayy s, and siLck lea^r e
$

$

Paid
vacations-------Paid
holidays---------Paid sick leave
(exclude Insured
plans) . . ___

Total .
Throughout Section IV use "p" for payroll period, "M" for monthly, nQn for quarterly,
"SA" for semiannually, "A" for annually, and "None" i f records are not summarized.




75

IV . CO M PAN Y EXPENDITU RES ON SE LE C TE D ITEM S O F SU PPLE M E N TA R Y
REM UNERATION FO R PRODUCTION AND R E L A T E D
WORKERS - Continued

Item

B.

Records for production and
Expenditures for production and
related workers
related workers in 1953
Are ex­
Frequency with
I f approximated,
Are time penditure which records
1 Approxi- indicate briefly for
records
records are summarized * Actual or mate each item the method
kept?
kept?
Expendi­
amount or basis of your
Yes or No Yes or No Time
tures
calculation (use
separate sheet i f
u)
(6)
(2)
(3)
(5)
necessary)
(7)
w

O v ertim e and p re m iu m pay (include extra or p re m iu m paym ent on ly )

Premium pay
for overtime
—daily,
weekly, or
for work on
specific
days as such

$

$

Premium pay
for work on
holidays
(see in­
struction
IV-A) --------

Shift
premium pay-

Total—____
Throughout Section IV use nP” for payroll period, nM" for monthly, "Q" for quarterly,
nSAn for semiannually, "A0 for annually, and "None” i f records are not summarized.




76
IV.

COM PAN Y EXPENDITU RES ON SE L E C T E D ITEM S OF SU PPLE M E N TA R Y
REM UNERATION FO R PRODUCTION AND R E L A T E D
WORKERS - Continued

Item

Records for production
and related workers
Frequency
Are ex­
penditure with which
records
records
are
kept?
Yes or No summarized*
(2)

C.

(4)

Expenditures for production and
related workers in 1953
I f approximated,
ApproxiIndicate briefly for
Actual or mate
each item the method
amount
or basis of your
calculation (use
separate sheet i f
necessary)
(7)
(6)
(5)

P e n sio n o r re tire m e n t plans (E xclude ad m in istrativ e c o s ts )

2. Expenditures on individual benefits. (Bracket or combine items i f separate
figures are not available.)
Life insurance (death
benefits)___________

Accidental death and
dismemberment ______

Weekly accident and
sickness benefits
( insured)_________ 1
1
Throughout Section IV use "p" for payroll period, "M" for monthly, mQ" for quarterly,
"SA" for semiannually, "A” for annually, and "None” if records are not summarized.




77

IV. COM PAN Y EXPENDITU RES ON SE LE C TE D ITEM S OF SU PPLE M E N TA R Y
REM UNERATION FO R PRODUCTION AND R E L A T E D
WORKERS - Continued
Records for production
Expenditures for production and
and related workers
related workers in 1953
Are ex­
Frequency
I f approximated,
penditure with which
Approxiindicate briefly for
records
records
Actual or
mate
each item the method
kept?
are
amount
or basis of your
Yes or No summarized1
calculation (use
separate sheet if
necessary)
(7)
(2)
(6)
(5)
(*0

Item

In su ra n ce, health, and welfcire plans - - net exp«m d itu res - Continued

D.

$

$

Hospitalization.

Surgical ______________

Medical (other
than surgical)-----------Other (specify)

Total

E.

L e g a lly re q u ire d ppayments •-- em ploye r*s share only

Old Age and
Survivors 1Insurance-------Unemployment
compensation:
Federal -------------------State (net)----

— —

Throughout Section IV use "P” for payroll period, "m" for monthly, nQw for quarterly.
"SAn for semiannually, "A” for annually, and "None” i f records are not summarized.




78

IV . COM PAN Y EXPENDITU RES ON SE L E C T E D ITEM S OF SU PPLE M E N TA R Y
REM UNERATION FOR PRODUCTION AND R E L A T E D
WORKERS - Continued
Expenditures for production and
Records for production
related workers in 1953
and related workers
If approximated,
Frequency
Are ex­
indicate briefly for
Approxipenditure with which
each item the method
mate
Actual oir
records
records
or basis of your
amount
are
kept?
calculation (use
Yes or No summarized*
separate sheet if
necessary)
(7)
(2)
(6)
(5)
(<0

I

Item

E.

L e g a lly re q u ire d paym ents - - e m p lo y e r 's share only - Continued
$

$

Workmen*s compensation---State temporary
disability insurance
Other ( specify)

Total legally required
payments ------------------------

1 Throughout Section IV use "p" for payroll period, "m" for monthly, V for quarterly,
"SA“ for semiannually, "A" for annually, and "Hone" i f records are not summarized.
V.

A R E TH ERE M AJO R ITEM S OF SU PPLE M E N TA R Y E M P L O Y E E
REM UNERATION IN E F F E C T IN ESTABLISHM ENTS WHICH AR E
NOT LISTED A B O V E ?

G E N E R A L REM ARKS:




In stru ctio n s fo r Q u estion n a ire
IT E M I.

SELF E X PLAN A TO RY

IT E M II.

P A Y R O L L AND E M P L O Y M E N T IN FORM ATIO N

79

A . G r o s s P a y r o l l .— R e p o rt the. total ea rn in g s o f p r o d u c ­
tion and re la te d w o r k e r s on the p a y r o ll o f e sta b lish m e n t(s) c o v e r e d
b y this r e p o r t f o r 1953 in clu d in g d is m is s a l p a y , a ll b o n u s e s , v a c a ­
tion and s ic k -le a v e p ay (in clu din g s ic k n e s s and a ccid e n t b e n e fits , un­
le s s in su red ) and co m p e n sa tio n in kin d, and p r io r to su ch d edu ction s
as e m p lo y e e s ' s o c ia l s e c u r it y co n trib u tio n s, w ithholding ta x e s , g rou p
in s u r a n c e , union d u e s, and sa vin gs b o n d s. E xclu d e le g a lly r e q u ir e d
p aym en ts m a d e b y e m p lo y e r s such as O ld A ge and S u r v iv o r s In s u r ­
a n ce , u n em p loym en t co m p e n s a tio n , w o r k m e n 's co m p e n s a tio n , e t c . ,
and p re m iu m s o r o th e r p aym ents m ade in co n n e ctio n with h ea lth , in ­
s u r a n c e , and p e n sio n p la n s . E x c lu d e p aym en ts to m e m b e r s o f A r m e d
F o r c e s and p e n s io n e r s c a r r ie d on y ou r a ctiv e p a y r o ll. (Y ou m a y f o l ­
low the d efin ition o f w ages and s a la r ie s that is u se d f o r ca lcu la tin g
the w ithholding ta x .)
B . T o ta l M a n -h o u r s .— In addition to m a n -h o u rs a ctu a lly
w ork ed (not sch e d u le d h o u rs) b y the p ro d u ctio n and re la te d w o r k e r s
r e p o r te d in I I -C , a ls o in clu d e h o u rs p aid f o r fo r standby o r r e p o r t ­
ing tim e , s ic k le a v e (in clu din g a b se n ce s c o v e r e d b y s ic k n e s s and a c ­
cid e n t b e n e fits , u n less in s u re d ), h o lid a y s , and v a ca tio n s taken d u r ­
ing the y e a r .
If e m p lo y e e s e le c t e d to w o r k during v a ca tio n p e r io d ,
r e p o r t o n ly actual h ou rs w o rk e d b y such e m p lo y e e s . Do not c o n v e r t
o v e r tim e h ou rs to s tr a ig h t-tim e equ iva len t h o u r s .
C . A v e r a g e N um ber o f E m p lo y e e s f o r Y e a r . — A dd the
tota l nu m ber o f e m p lo y e e s attached to the m a n u fa ctu rin g e s t a b lis h ­
m e n t s ) c o v e r e d b y this r e p o r t who w o rk e d o r r e c e iv e d p a y f o r any
p a rt o f the p a y p e r io d (p r e fe r a b ly 1 w eek) ended n e a r e s t the 15th o f
e a ch o f 12 m onths c o v e r e d b y this r e p o r t , and d iv id e b y 12 to get
the a v era g e n u m ber o f e m p lo y e e s f o r the y e a r . Include a ll p e r s o n s
on p aid s ic k le a v e , p aid h o lid a y s , and p aid v a ca tio n during these p ay
p e r io d s ; ex clu d e m e m b e r s o f A rm e d F o r c e s and p e n s io n e r s c a r r ie d on
y ou r a ctiv e r o l l s .
If a y e a r ly a v e ra g e cann ot be r e a d ily co m p u te d ,
p le a s e p ro v id e b e s t e stim a te and id en tify as an e s t im a te .
P ro d u ctio n and R e la te d W o r k e r s .— -Includes w ork in g
fo r e m e n and a ll n o n s u p e r v is o r y w o r k e r s (in clu d in g le a d m e n and t r a in ­
e e s ) engaged in fa b r ic a tin g , p r o c e s s in g , a s s e m b lin g , in s p e ctio n , r e ­
c e iv in g , s t o r a g e , handling, p a ck in g , w a re h o u sin g , shipping, m a in ­
ten a n ce, r e p a ir , ja n ito r ia l, w atchm an s e r v i c e s , p ro d u cts d e v e lo p m e n t,
a u x ilia r y p ro d u ctio n f o r p la n t 's ow n use ( e . g . , p o w e rp la n t), and r e c ­
ord k e e p in g and o th e r s e r v ic e s c lo s e ly a s s o c ia t e d with the above p r o ­
d u ction o p e r a tio n s .
E x clu d e s m e m b e r s o f the A r m e d F o r c e s ; f o r c e
a cco u n t c o n s tr u c tio n w o r k e r s h ir e d t e m p o r a r ily fo r plant c o n s tr u c tio n ,
r e p a ir s o r a lte ra tio n s ; and p e n s io n e r s .
N O T E: T h is is the sa m e d e fin itio n u sed b y the B u rea u
o f L a b o r S ta tistics f o r its re g u la r m onthly and annual p ro d u c tio n w o r k e r em p lo y m e n t s e r ie s and b y o th e r g ov ern m en t a g e n c ie s .




80

IT E M III.

P L A N T P R A C T IC E S F O R
W ORKERS
A.

PR O D U CTIO N AND R E L A T E D

P a id V a ca tion s

1.
R e p o rt the n u m b er o f p ro d u ctio n and r e la
e r s w h o, during 1953, r e c e iv e d a p aid v a ca tio n o f 1 w e e k , the n u m ­
b e r who r e c e iv e d 2 w e e k s , e t c .
If the v a ca tio n plan p r o v id e d f o r a
s p e c ific n u m b er o f days (ra th e r than w eek s) o r if v a ca tio n b e n e fits
w e r e d e te r m in e d as a p e rce n ta g e o f the e m p lo y e e s ' annual e a rn in g s ,
p le a s e c o n v e r t to eq u iva len t w e e k s , o r fr a c t io n s o f w e e k s , and r e ­
p o r t the n u m b er o f w o r k e r s r e c e iv in g the r e s p e c t iv e "e q u iv a le n t
w e e k s " b e n e fits in 1953.
F o r e x a m p le , 2 p e r c e n t o r slig h tly m o r e
( e . g . , 2 lU p e rce n t) is to be c o n s id e r e d eq u iva len t to 1 w e e k 's v a ­
ca tio n ; 4 p e r c e n t o r slig h tly m o r e ( e . g . , 4 1/* p e rce n t) to 2 w e e k s '
v a c a tio n , e t c .
If the v a ca tio n plan p r o v id e s 1 d a y 's v a ca tio n p e r
m onth o f s e r v ic e , c o n s id e r 5 o r 6 days as eq u iva len t to 1 w e e k 's
v a c a tio n .
2.
The fig u r e to b e r e p o r te d h e re is the n u m b er o f
v a ca tio n m a n -h o u rs p aid f o r and taken b y e m p lo y e e s . If an e m p lo y e e
e le c t e d to w o rk during h is v a ca tio n p e r io d , and w as given his v a c a ­
tion p a y w ithout a ctu a lly taking any tim e o f f , no h o u rs should be in ­
clu d ed fo r h im .
If a ll e m p lo y e e s r e c e iv e d a u n ifo rm v a ca tio n o f 1
w eek , but r e c e iv e d v a ry in g am ounts o f v a ca tio n p a y (so m e 1 w e e k 's
p a y , o th e rs 2 o r 3 w e e k s ' p a y , depending on length o f s e r v i c e ) , r e ­
p o r t on ly the nu m ber o f h ou rs p aid f o r and taken, i . e . , o n ly the 1
w eek in th is e x a m p le .
B.

P a id H olid a ys

1.
P le a s e r e p o r t h e re the n u m b er o f p aid h o lid a y s
w h ich the m a jo r it y o f e m p lo y e e s r e c e iv e d in 1953.
Do n ot in clu d e
any u n w ork ed h o lid a y s w h ich f e ll on Saturday and f o r w h ich e m p lo y ­
e e s w e re not p a id .
2.
H olid a ys fa llin g within e m p lo y e e s ' v a ca tio n p e r io d ,
w h ich w e r e p aid fo r in addition to v a ca tio n p a y , shou ld b e cou n ted as
h olid a y h ou rs p aid f o r but not w o r k e d .
C.

P a id S ick L e a v e
1.

S e lf e x p la n a to ry .

2.
In com p u tin g total s ic k le a v e h o u rs p aid f o r , in ­
clu d e a ctu al n u m b er o f h o u rs p aid f o r ir r e s p e c t iv e o f the ra te o f p a y .
W h ere n on o ccu p a tio n a l s ic k n e s s and a ccid e n t b e n e fits a re p aid d ir e c t ly
b y the com p a n y (not in s u r e d ), in clu d e c o r r e s p o n d in g h ou rs p aid f o r .




D,

E,

and F .

S e lf e x p la n a to ry .

81

IT E M IV .

C OM PAN Y E X PEN D ITU R E S ON S E L E C T E D ITEM S OF
SU P P L E M E N T A R Y REM U N ERATIO N F O R PR ODU CTION
AND R E L A T E D WORKERS

G e n e r a l.— P le a s e p ro v id e data f o r each ite m se p a ra te ly ,
if p o s s ib le .
If n e c e s s a r y , h o w e v e r , item s within a group can be
b r a c k e te d and a co m b in e d fig u re given .
If a p a r tic u la r ite m lis te d
d oes not apply to y ou r plant w o r k e r s , p le a s e draw a lin e through the
ite m . If no expen ditu res w e r e in v o lv e d in co n n e ctio n with a p a r t ic ­
u la r item in e ffe c t , in s e r t z e r o (0) in a p p ro p ria te co lu m n .
R e c o r d s fo r P ro d u ctio n and R e la te d W o r k e r s .— T h e se
q u estion s re la te to the a v a ila b ility o f plant o r o ffic e r e c o r d s w hich
co u ld b e u tiliz e d to p ro v id e a ccu ra te data.
T im e r e c o r d s r e fe r to
c lo c k c a rd s o r oth er r e c o r d s show ing the n u m ber o f h ou rs o r days
spent b y individual w o r k e rs o r grou ps o f w o r k e rs in co n n e ctio n with
the ite m lis te d . E xpenditure r e c o r d s r e fe r to p a y r o lls o r o t h e iy r e c o rd s show ing the w ages o r oth er rem u n era tion paid to w o rk e rs in c o n ­
n e ctio n with the ite m lis te d . F re q u e n cy with w h ich r e c o r d s a re s u m ­
m a r iz e d o r tota lled r e fe r s to the com pany* s p r a c t ic e o f aggrega tin g
o r tota llin g the in dividu al tim e o r expen diture r e c o r d s o v e r a given
p e r io d o f tim e to obtain fig u re s fo r the plant as a w hole o r fo r its
d e p a rtm e n ts.
U se the fo llo w in g sy m b o ls in colu m n s 3 and 4 to in d ica te
the p e r io d o r p e r io d s ty p ica lly u sed to su m m a riz e tim e and e x p e n d i­
ture r e c o r d s :
P a y r o ll p e r io d
M onthly
Q u a rte rly
Sem iannu ally
A nnually
No su m m a riz a tio n
A.

V a c a tio n s, H o lid a y s,

-

p
M
Q
SA
A
None

and S ick L ea v e

P a id V a c a t io n s . — A ll v a ca tio n p a y , whether pay fo r
v a ca tion s a ctu a lly taken o r e x tra pay in lie u o f a v a ca tio n , should be
r e p o r te d h e r e . T his ite m should be lim ite d to outlays a ctu a lly m ade
during the y e a r and should ex clu d e the am ount due e m p lo y e e s fo r le a v e
c a r r ie d o v e r into la te r y e a r s . It should in clu d e paym ents fo r unused
v a ca tio n lea v e to e m p lo y e e s who lea v e the com p a n y.
P a id H olidays and P re m iu m P a y fo r W ork on H o li­
days . — F o r p u rp o se s o f this study, it is n e c e s s a r y to sep a ra te ex>
p en d itu res in c u r r e d through the r e co g n itio n o f p a id h olidays and th ose
resu ltin g fr o m w ork on p aid o r unpaid h o lid a y s .
The fo llo w in g in ­
s tru c tio n was d esig n ed s o le ly fo r this p u rp o s e .



82

P a id H o lid a y s .— Include under Item 1 V -A expen ditu res
f o r p ay fo r the n u m ber o f h olid a y s (o r h olid a y h o u rs) r e p o r te d in
III-B a b o v e , even if w o rk was p e r fo r m e d on one o r m o r e o f these
h o lid a y s . That i s , if the com p a n y o b s e r v e d the p r a c t ic e o f granting
6 p aid h o lid a y s , the expen ditu res to b e r e p o r te d h e re should r e fle c t
the exp en d itu res co n n e cte d with this p r a c t ic e .
The additional pay
going to e m p lo y e e s who w o rk e d on p aid h olid a y s shou ld be e x clu d e d .
P r e m iu m P a y fo r W ork on H o lid a y s .— T o ta l e x p e n d i­
tu res (w ages plus) fo r h olid a y s w h ich w e re w o rk e d sh ou ld b e re fin e d
fo r the p u rp o se o f re p o rtin g p re m iu m p ay exp en d itu res as fo llo w s :
a.

E x clu d e re g u la r s tra ig h t-tim e pay f o r w o rk p e r ­
fo r m e d .

b.

E x clu d e the equ ivalen t o f the h olid a y pay the
w o r k e r w ould have r e c e iv e d if he did not w o r k .

c.

T he b a la n ce should b e r e p o r te d under Item I V -B
as p re m iu m pay fo r w ork on h o lid a y s.

E x a m p le :

E m p lo y e e
fo r w ork
h o lid a y .
p en ditu re

was p aid a total o f d o u b le -tim e
on what w ould have b een a p aid
In this c a s e , no p re m iu m e x ­
w ould b e re p o r te d .

E xa m p le:

E m p lo y e e was p aid d o u b le -tim e and o n e h alf f o r w o rk on what w ould have b e e n a
p aid h o lid a y .
In this c a s e , the e x p e n d i­
tu res on the o n e -h a lf tim e sh ou ld be r e ­
p o r te d .

E x a m p le:

E m p lo y e e was p aid t r ip le -t im e fo r w ork
on what w ould have b een a p a id h o lid a y .
In this c a s e , o n e -th ir d (his n o rm a l pay)
should be r e p o r te d as h olid a y pay un der
I V -A ; o n e -th ir d shou ld be re g a rd e d as
s tr a ig h t-tim e p ay f o r the tim e a ctu a lly
w o rk e d ; and the rem a in in g o n e -th ir d shou ld
b e r e p o rte d as p re m iu m pay under Item
I V -B .

E x a m p le :

E m p lo y e e was p aid tim e and o n e -h a lf fo r
w ork on an unpaid h olid a y (that is , he
w ou ld have r e c e iv e d no pay if he had not
w o rk e d ).
In this c a s e , the expen ditu res
on the o n e -h a lf tim e sh ou ld be r e p o r te d .

P a id S ick L e a v e .— Include a ll paym ents m ade b y the
co m p a n y d ir e c t ly (not in su red ) to e m p lo y e e s f o r tim e lo s t b e ca u s e o f
illn e s s o r n on occu p a tion a l a c c id e n t s , w h eth er it was at the w o r k e r ’ s



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re g u la r rate o r at a d iffe re n t ra te .
E xclu d e paym ents f o r m e d ic a l
c a r e , fo r b en efits p ro v id e d under a State te m p o r a r y d isa b ility law
(c o v e r e d in I V - E ) , and paym ents b y the com p a n y fo r a ccid e n t and
s ic k n e s s in su ra n ce (c o v e r e d in I V -D ).
T his ite m shou ld b e lim ite d
to outlays a ctu a lly m ade during the y e a r and shou ld not in clu d e the
am ount due e m p lo y e e s fo r le a v e c a r r ie d o v e r into la te r y e a r s .
It
sh ou ld in clu d e ca sh paym en ts fo r unused le a v e .
B.

O v e rtim e and P re m iu m P a y

D a ily and W eek ly O v e rtim e : P r e m iu m P a y f o r W ork
on Saturday and S u n da y.— Include on ly pay above re g u la r h ou rly r a t e s .
P a y at the re g u la r rate fo r h ou rs w ork ed sh ou ld b e ex clu d e d . T h u s,
if an e m p lo y e e r e c e iv e s $ 1 .5 0 an hour f o r s t r a ig h t-tim e , and $ 0 .7 5
add ition al as a p re m iu m fo r ea ch o v e r tim e hour w ork ed , the o v e r ­
tim e ex p en d itu res re p o r te d h e re m u st in clu d e on ly the $ 0 .7 5 o v e r ­
tim e p r e m iu m . Include p re m iu m p ay f o r Saturday and Sunday as su ch
o r f o r 6th and 7th d ays.
P r e m iu m P a y f o r W ork on H o lid a y s .— (See in s tru ctio n
I V -A .)
Shift P re m iu m P a y .— Include on ly sh ift p re m iu m pay
a b ov e re g u la r h o u rly r a t e s . T his shou ld in clu d e not only d iffe re n tia ls
p aid in the fo r m o f a h igh er h o u rly rate but s p e c ia l paym ents to late
sh ift w o r k e rs f o r m e a l p e r io d s and fo r any o th e r hou rs not w o rk e d
b y them but p aid fo r ( e .g . , 8 hours* pay fo r l l!z hours* w o rk b y
the night sh ift, co m p a r e d with 8 hours* w ork fo r the day s h ift).
C.

P e n s io n o r R e tire m e n t P la n s

P e n s io n s . — W here the com p an y pays into an ou tsid e
in s u ra n ce fund, the total p re m iu m s p aid by the co m p a n y , le s s any
d iv id en d s, shou ld b e r e p o r te d . W here the com p a n y pays into an i r ­
r e v o c a b le tru st, its paym ents into this fund should b e r e p o r te d .
(T h is r e f e r s , in e ith e r c a s e , to paym ents fo r p a st s e r v ic e c r e d its
as w e ll as paym en ts fo r cu r re n t s e r v ic e c r e d i t s .) If a p e n sio n plan
is fin a n ced through a p r o fit -s h a r in g plan and p a st and cu r re n t s e r v ic e
c r e d it s a re not a ccou n ted f o r , p ro v id e total co n trib u tio n s.
O th e r­
w ise actual co m p a n y paym ents to p e n s io n e r s sh ou ld b e re p o r te d . In
the la tte r c a s e , if the e m p lo y e e s con trib u te to p e n s io n s , a ll e m p lo y e e
con trib u tion s during the y e a r should b e dedu cted fr o m the am ount
p a id out.
P e n s io n expen ditu res r e p o rte d h e re should be r e s t r i c ­
ted to th ose fo r p ro d u ctio n and re la te d (plant) w o r k e r s in the e s ta b ­
lis h m e n t s ) c o v e r e d by this r e p o r t . If the p e n sio n plan a p p lies to m o r e
than one plant o f a m u ltip lan t com p an y w h erea s this r e p o r t c o v e r s
on ly one e sta b lish m e n t, o r if the plan ap p lies to all e m p lo y e e s , in ­
clu din g o f f ic e , s u p e r v is o r y , te ch n ica l, e t c . , and no se p a ra te r e c o r d s




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a re kept fo r the p ro d u ctio n and re la te d w o rk e rs in this one e s t a b lis h ­
m en t, m ake b e s t a v ailab le estim a te and in d ica te b a s is .
E x clu d e a d m in istra tiv e c o s t s .
D.

In su ra n ce , H ealth,

and W elfa re P lans

In su ra n ce , H ealth, and W e lfa re P la n s .— The o b je c t
o f this s e c t io n is to d eterm in e the net com p an y expen diture fo r ea ch
b e n e fit lis te d in s o fa r as p o s s ib le . If the com p an y m akes a fix e d c o n ­
trib u tion to a union o r jo in tly a d m in iste re d w e lfa re fund and is un­
able to a llo ca te the c o s t to individual b e n e fits , the total co n trib u tio n
to the fund shou ld be re p o r te d under Item I V - D - 1 . If, h o w e v e r, the
com p an y is able to m ake such an a llo ca tio n , m ake no entry under
I V -D -1 , but in clu d e the expen ditu res under a p p rop ria te headings in
IV -D -2 .
P aym en ts to e m p lo y e e s fo r tim e lo s t under s e l f in s u re d (n on occu p a tion al) sic k n e s s and a ccid e n t plans w ill be r e p o r te d
under MP a id S ick L e a v e ” in S ectio n I V -A . If the com p an y m ade d i ­
r e c t paym ents (not c o v e r e d b y in su ra n ce ) fo r h o sp ita liz a tio n , m e d i­
c a l o r s u r g ic a l b ills , e t c . , p le a se r e p o r t such expen ditu res in the
a p p rop ria te colu m n s o f S ection I V -D , with fu ll explanation in colu m n 7.
E xp en d itu res fo r in su ra n ce p re m iu m s shou ld be r e ­
p o rte d a fte r dedu ction s fo r dividends u n less they go to p u rch a se a d ­
d itional in s u ra n ce .
W here on ly in fo rm a tio n on g r o s s p re m iu m s is
a v a ila b le the g r o s s fig u r e s should be r e p o rte d but shou ld be c le a r ly
in d ica ted as g r o s s ; in such ca s e s a note shou ld indicate the p e r c e n t ­
age that dividen ds w e re o f total p re m iu m s during the p re ce d in g y e a r .
If the in s u ra n ce , health and w e lfa re plan app lies to
m o r e than one plant of a m ultiplant com p an y w h erea s this r e p o r t
c o v e r s on ly one esta b lish m e n t, o r if the plan app lies to a ll e m p lo y ­
e e s , including o f f ic e , s u p e r v is o r y , te ch n ica l, e t c . , and no se p a ra te
r e c o r d s a re kept fo r the p ro d u ctio n and re la te d w o r k e rs in this one
esta b lish m e n t, m ade the b e st a v ailab le e stim a te and in d icate b a s is .
E xclu d e a d m in istra tiv e c o s t s .
E.

L e g a lly R e q u ire d P a y m en ts.

L e g a lly R e q u ire d P a y m e n ts .— In the c a s e o f e m p lo y ­
e r s who m ake re d u ce d paym ents b e ca u se o f m e r it ra tin g , on ly the
net am ounts a ctu a lly paid should be re p o r te d .
W o rk m e n 1s C o m p e n sa tio n .— If s e lf-in s u r e d ,
p le a se
in d ica te in colu m n 7 (1) what item s are in clu d ed in y ou r expen ditu re
fig u re and (2) how you handled the p r o b le m o f se g re g a tin g w o r k m e n ^




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com p en sa tion c o s t fr o m c o s ts of m e d ic a l and f ir s t - a id s e r v ic e s n o r ­
m a lly su p p lied by the e sta b lish m e n t.
State T e m p o r a r y D is a b ility I n s u r a n c e .— T his ite m a p ­
p lie s on ly to esta b lish m en ts in C a lifo rn ia , New J e r s e y , New Y o rk ,
and Rhode Islan d . If a com p a n y p ro v id e s this b e n e fit through a p r i ­
vate (s e lf-in s u r e d ) plan, no en try should be m ade under I V -E , but
the expen ditu re should be re p o r te d under "P a id S ick L e a v e " in I V -A ;
if it is p r o c u r e d as p a rt o f a "p a ck a g e " through an in su ra n ce c o m ­
pany, no en try should be m ade under Item IV -E but the expen ditu re
shou ld be re p o r te d under IV -D ,
"W eek ly S ick n ess and A ccid e n t
B e n e fit s . "
ITE M V .




SE L F E X P L A N A T O R Y .

ir U. S. GOVERNMENT PRINTING OFFICE : 1956 0 — 374092