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A Guide to Labor-Management Relations in the United States Bulletin No. 1225 UNITED STATES DEPARTMENT OF LABOR James P. Mitchell, Secretary BUREAU O F LABOR STATISTICS Ewan Clague, Commissioner A G uide to Labor-Management Relations in the United States Bulletin No. 1225 UNITED STATES DEPARTMENT OF LABOR lames P. Mitchell, Secretary BUREAU O F LABOR STATISTICS Ewan Clague, Commissioner March 1958 For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D .C . - Price $2.00 Special Note Ten or more additional chapters are planned fo r th is Guide. I f you wish n o tifie d when new chapters are to be available and how they might be obtained, f i l l out the form below and return i t to the Bureau of Labor S ta tis t ic s . To: U. S. Department o f Labor Bureau o f Labor S ta tis tic s Washington 25, D. C. No. 500 Please n o tify me when new chapters are available fo r B ull. 1225, A Guide to Labor-Management Relations in the United States. Name _________ Organization _ Street address City and State iii Preface The reports included in th is b u lle tin were o r ig in a lly requested and prepared to furnish a b r ie f guide to labor-management relation s in the United States fo r v is itin g trade unionists and management representatives o f other countries. Their prin cipal pur pose was to provide a larger perspective into which individual ob servations, reading, or experience might be f i t t e d . The reports have also proved useful in various ways abroad, wherever b r ie f and rela tiv e ly simple descriptions o f union and union-management activ i t ie s in the United States were needed. Many o f the reports have been translated into other languages fo r wider d istrib u tion . Similar needs e x is t at home. As evidenced by the requests received by the U. S. Department o f Labor, there appears to be a continuous demand from students, workers, union members, and others, fo r b r ie f descriptions and explanations o f various fa ce ts o f union a c tiv ity and labor-management re la tio n s. Many who seek to learn or to understand do not have, near at hand, a w ell-stocked labor library or other source from which answers to th eir questions might be obtained. The U. S. Department o f Labor's Bureau o f Labor S ta tis t ic s , vdaose regular program in the f i e l d o f in du strial relation s is geared largely to the needs o f Government and o f s p e c ia lis ts in la b ormanagement a ffa ir s , has always regretted i t s in a b ilit y , because o f s t a ff lim itation s, to be o f greater service to the inquiring worker or student. Thus, the opportunity f i r s t to prepare these reports and then to make them generally available was welcomed by the Bureau. Labor-management relation s in the United States are complex and dynamic. To scholars and to the people who participated in the developments described in these reports, i t w ill be immediately apparent that the goal o f brevity sought in these reports might have been achieved at the cost o f oversim p lifica tion . In order to con centrate on the current scene, and thus to f u l f i l l the purpose o f a guide, the evolution o f p a rticu lar aspects o f labor-management rela tions and the h is to r ic struggles to gain union recognition are not accorded the attention they would merit in detailed h is to r ie s . An annotated bibliography, now in preparation, w ill be added to these reports to enable the reader to examine more extensive sources in the f i e l d . Hie i n i t i a l audience fo r these reports, i t must be remem bered, were people o f other countries. The top ics were selected prim arily with th eir needs and in terests in mind. Except fo r the d eletion o f appendices containing data already available in greater volume and d e ta il in the United States, and the changes necessary to v Preface - Continued bring the reports reasonably up to date, the reports have not been s ig n ific a n tly revised fo r domestic use. The 31 reports included in th is volume are divided in to four section s: (1 ) trade union a c t iv it ie s ; (2 ) c o lle c tiv e bargaining; (3 ) labor-management relations in selected in du stries; and (4 ) gen e ra l. Additional reports now in preparation w ill be issued la te r fo r in sertion in th is volume. These reports were prepared in the Bureau's D ivision o f Wages and Industrial Relations by or under the d ire ctio n o f Joseph W. Bloch. Theodore W. Reedy and Gwen V. Bymers prepared the i n i t i a l drafts o f most o f the reports in this s e r ie s ; Earl C. Smith, Harry P. Cohany, and P a tricia B. Smith also made valuable contribution s. Contents 1. Trade union a c t iv it ie s : 1:01 Growth o f the trade union movement 1:02 Structure o f the trade union movement 1:03 Administration o f national unions 1:04 Administration o f lo c a l unions 1:05 The unionization o f w h ite-colla r workers 1:06 Workers' education 1:07 Trade union uses o f economic data 2. C ollective bargaining: 2:01 The development o f c o lle c tiv e bargaining 2:02 Grievance procedures 2:03 Voluntary arbitration 2:04 Mediation and co n c ilia tio n 2:05 Union adjustment to tech nological change 2:06 Sharing produ ctivity gains through c o lle c tiv e bargaining 2:07 Union-management cooperation 2:08 Union pa rticip a tion in safety programs 2:09 Fringe ben efits under c o lle c t iv e bargaining 3. Labor-management relation s in selected in du stries: 3:01 The automobile industry 3:02 The basic s teel industry 3:03 Coal mining 3:04 The railroad industry 3:05 The apparel industries 3:06 The t e x tile industries 3:07 The meatpacking industry 3:08 The petroleum industry 3:09 The construction industry 3:10 E le ctric and gas u t i l i t i e s 3:11 The lo c a l tra n sit industry 3:12 The maritime industry 3:13 Nonferrous metals mining 3:14 Agriculture General: 4:01 Glossary o f current in dustrial relations terms v ii 1. Trade Union Activities 1:01 Growth of the Trade Union Movement 1 The growth and coming o f age o f the American labor move ment is linked in a very d irect way to the economic, geographic, and p o l it ic a l development.o f the United States. In the Nation’ s formative years, many fa ctors worked together to retard the growth o f unions, including the predominance o f small in du stries, the existence o f the fr o n tie r and o f free land fo r homesteading, a le g is la tiv e and ju d ic ia l climate frequently unfavorable to labor organization, and a widespread h o s t ilit y among employers. As the Nation grew, most o f these obstacles to unioniza tion disappeared. The fro n tie r and free t illa b le land disappeared early in the present century as a real or p oten tia l way o f escape fo r the d is s a tis fie d or fo o tlo o s e worker. Factories grew into larger and larger units and, as management became more remote, workers f e l t the need fo r strong union representation to protect th eir in te re s ts . On the le g is la tio n fro n t, laws favorable to the development o f unions were enacted. As a result o f these and other fa cto r s , unions have had a spectacular increase in membership, par tic u la rly in the la st quarter century. The f i r s t unions to appear in the United States were small independent organizations, concerned primarily with problems arising within th eir immediate environment. However, even from the formative days o f the Nation, these isola ted unions moved to com bine with sim ilar organizations, f i r s t in th eir own communities to increase th eir strength in dealing with mutual problems. The fo r mation o f community labor councils follow ed as a natural step. These councils never attained any p o sitio n o f major importance in the labor movement, although they did encourage lo ca l organizations to work together. Development o f National Unions The organization o f national unions o f workers in speci f i c trades began sh ortly before the C iv il War. By 1859, the stone cu tters, hat fin is h e r s , molders, and machinists had formed such organizations. Other national unions were organized during the war years (1861-65), notably the locomotive engineers, plasterers, bricklayers, masons, and cigarmakers. 1 / Other chapters in th is se rie s deal in more d e ta il with the development o f c o lle c tiv e bargaining, the structure o f the trade union movement, and other matters which are part o f the story o f growth o f the trade union movement. ( 1) 2 National unions continued to increase in number and strength a fte r the C iv il War. In transportation, the Railway Con ductors and the Firemen and Bnginemen formed unions o r ig in a lly as mutual b en efit association s, but which soon became c o lle c t iv e bar gaining organizations. In other f i e ld s , the machinists and prin ters formed new national unions, while others, previously organized, ex tended and strengthened th eir ju r is d ic tio n s . Between 1870 and 1873, nine new national unions were formed. By 1879, 50 or more national unions were in existen ce. A c o n flic t between " u p lift ” unionism and trade union ac t iv it ie s d ir e c tly concerned with worker welfare on the job was common to many early labor organizations. Before the organization o f the American Federation o f Labor in the 1880's, "pure and simple" unionism was frequently sidetracked while other issues were explored. These included p o l it ic a l action fo r the e le ctio n o f labor candidates and fo r le g is la tio n to improve the workers' l o t , producers* and consumers' cooperatives, utopian schemes such as cooperative communities, and e ffo r t s to obtain free land fo r poten t i a l s e ttle r s (la t e r realized in the Homestead A ct). These drives were frequently products o f depressions; in good times, improvement in wages and hours generally took precedence. Development o f Federations The f i r s t federation to make a la stin g impact on the American labor scene was the American Federation o f Labor, which was i t s e l f organized by a merger o f unions from two other federated organizations. The Federation o f Organized Trades and Labor Unions, which the AFL considered as i t s true beginning, was established in 1881 by s ix c ra ft unions—the p rin ters, iron and ste e l workers, molders, cigarmakers, carpenters, and glassworkers—and a few other labor groups. Although i t did not exist fo r long, the FOTLU served as a source fo r leadership, notably Samuel Gompers who headed the AFL u n til h is death in 1924. Another organization ih ich rose to prominence ju st p rior to the AFL was the Knights o f Labor. This organization, founded in 1869 as a secret s o cie ty , attained i t s greatest development a fte r i t abandoned i t s secrecy in 1881. By 1886, i t claimed a national membership o f 700,000 workers. The Knights o f Labor was e sse n tia lly a s o cia l reform o r ganization in which the " jo b consciousness" type o f unionism played a secondary r o le . Khen the Knights at th eir 1886 convention refused 1:01 o to agree to respect the ju r is d ic tio n o f the large c ra ft unions, several o f these unions formed the AFL. The FOTLU, meeting at the same time, join ed immediately with the new organization. A fter the formation o f the AFL, the ^nights lo s t ground rapidly and soon ceased to be an important part o f the labor movement. The AFL was founded with certain ideas and p rin cip les which i t maintained to present times. To quote from Samuel Gompers and Adolph Strasser, f i r s t leaders o f the organization: "We are going on from day to day. We are fig h tin g only fo r immediate ob je c t s —ob je cts which can be realized in a few years,** and fu rther, "The primary essen tia l in our mission has been the p rotection o f the wage worker, now; to increase h is wages; to cut hours o f f the long workday which was k illin g him; to improve the safety and sanitary conditions o f the workshop; to fr e e him from the tyran n ies, petty or otherwise, which served to make h is existence a sla v ery ." These goals were to be achieved p rin cip a lly through c o lle c tiv e bargaining. A fter the decline o f the Knights o f Labor, union leaders avoided too much preoccupation with p o l it ic a l aims, e sp e cia lly those concerned with the hope o f radical transformation o f s o cie ty . These leaders tr ie d , and s t i l l try , to use the power o f th e ir unions to persuade the Governments o f the Nation and the States to bring about changes which are considered desirable. At the same time, they have generally follow ed a p o lic y o f "voluntarism" or "antigovernmentalism," opposing government regulation o f those things thich they fe e l should be l e f t fo r union con trol o r fo r union-employer negotiation. Between i t s formation and World War I , the AFL grew slow ly and irreg u la rly , reaching a to ta l o f 2 m illion members by 1916. This increased to 4 m illion by 1920 as a result o f the war*s impact, but quickly declined to less than 3 m illio n . Membership dropped to 2.1 m illion during the depths o f the depression in 1933. Several fa cto r s account f o r the slow growth, or actual decline in membership, o f unions before the mid-1930*s. There was widespread employer opp osition . Of nearly equal importance was worker in d ifferen ce or resistance to organization, tdiich was due to a variety o f causes, including the workers* t r a it s o f independence, ambition fo r self-employment, and the fe e lin g that unions were not essen tial to th eir w elfare. Throughout th is period, the AFL had 70 to 80 percent o f a l l organized workers in it s membership. The remainder were in u n a ffilia te d unions, the most important o f which were the four railroad brotherhoods. 1:01 4 The passage o f the National Industrial Recovery Act in 1933 marked the- beginning o f the greatest period o f expansion in the American labor movement. One section o f th is act guaranteed the right o f the employees to organize into unions o f th e ir own choosing and to bargain c o lle c t iv e ly with employers. A rapid in crease in membership o f established unions followed the passage o f this a ct. Even more marked was the organization o f workers in establishments in many mass-production industries vtfiich had pre viously resisted unionization. Although the NIRA was invalidated by the courts in May 1935, the National Labor Relations Act o f July 1935 (Wagner Act) took i t s place and served to guarantee the workers* right to organize and to bargain c o lle c t iv e ly . Organization o f the CIO The organization o f mass-production industries brought ju r is d ic tio n a l problems to the AFL over the issue o f in dustrial versus cra ft unionism. Union organization by cra fts was admittedly d i f f i c u l t , i f not im possible, in these industries because o f the predominance o f unskilled or sem iskilled workers. Despite th is , several o f the old er cra ft unions o f the AFL in sisted that they be given ju r is d ic tio n over workers in certain occupations, wherever lin e s o f demarcation were distinguishable. Other union leaders f e l t d iffe r e n tly . As a re su lt, 6 a f filia t e d unions and the o f f i cers o f 2 additional unions formed a Committee fo r Industrial Organization within the framework o f the Federation. Four addi tio n a l unions join ed the Committee sh ortly a fte r it s organization. In January 1936, the AFL Executive Council declared that the a c t iv it ie s o f the Committee constitu ted "dual" unionism, and requested i t to disband. The request was rejected . The unions p a rticip a tin g were suspended by the Executive Council in the f a l l o f 1936. That action was upheld by the AFL convention in November 1936. Final expulsion o f nine o f these unions came in the spring o f 1938. The unions which the AFL expelled held a convention in November 1938 and formed the Congress o f Industrial Organizations. Thirty-two organizing committees were set up to recruit workers in various additional in dustries. Despite the d i f f i c u l t i e s between the AFL and CIO, the growth o f unionism continued at an accelerated pace,- with riv a lry between the two federations stimulating organizing e ffo r t s . By 1941, estimated to ta l union membership was between 10 and 11 m illion . This represented a growth o f more than 7 m illion in le s s than a decade (chart 1 ). The Wbrld War II period was marked by a steady and rapid increase in union organization and influ ence. Although few new 1:01 5 Chart 1. MEMBERSHIP OF NATIONAL AND INTERNATIONAL UNIONS, 1930-56 (EXCLUSIVE OF CANADIAN M EM BE R S) ! Millions of Members • Midpoints of membership estimates made in a range for the years 1948-52 were used. 1 Includes a relatively small number of trade union members in areas outside the con tinental United States other than Canada. In 1954 and 1956, approximately 100,000 union members fell in this category; comparable data for earlier years are not available. UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 1:01 6 Chart 2. MEMBERSHIP1 AS A PERCENTAGE OF TOTAL LABOR FORCE AND OF EMPLOYEES IN NONAGRICULTURAL ESTABLISHMENTS Percent * Excludes Canadian membership. UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 1:01 7 onions were formed, many already in existence expanded their coverage o f workers. Wages were held in check by the Government’ s sta b iliz a tio n p o lic y ; however, workers made many gains in welfare and pension plans, paid vacations and holidays, s h ift d i f f e r e n tia ls , and other ben efits. The war also gave impetus to the elim ination o f barriers to membership which existed in some unions. Extension o f member ship to workers without regard to race, creed, or nation ality was greatly accelerated. As the races Worked together, prejudices diminished. Unions continued to grow and prosper throughout the post war years, although somenfoat more slow ly (chart 2 ). By the end o f World War I I , most workers in readily organizable industries and occupations were members o f unions so that the recruitment o f new members became more d i f f i c u l t . In addition, unions have repeatedly maintained that the Taft-H artley Act (see below) placed obstacles in the way o f the extension o f organization into new fie ld s . How ever, in the decade follow in g World War I I , to ta l union membership increased from 14.6 m illion to 18 m illio n . This compares with a growth o f more than 11 m illion in the preceding 10 years. The growth o f individual national and international unions was more spectacular. In the 25 years follow in g 1929, membership in the 10 largest unions increased from 1,532,000 to 7,649,000. Two o f the largest (the Automobile Workers and S teel workers) were organized a fte r 1929. Forty-three unions had member ship in excess o f 100,000 in 1956 (t a b le ). Labor Legislation and P o lit ic a l Action Throughout the years, the developing pattern o f unionism has been deeply influenced by the attitude o f the Government and the courts and the le g is la t io n designed to regulate the rela tion ships between employers and union organizations. Before 1926, the attitude o f the law and the courts was often r e s t r ic tiv e . The Railway Labor Act o f 1926 was an early example o f a reversal o f the trend o f leg a l opposition to union ac t iv it y . I t was based on the idea that peaceful labor relation s could be attained through fre e c o lle c tiv e bargaining between em ployers and unions. The Norris-LaGuardia Act o f 1932 eliminated the major ju d ic ia l re strictio n s on s tr ik e s , picketing, and boycotts. The 1:01 8 N ation al and in tern a tion a l u nion s w ith 1 0 0 ,0 0 0 o r m o r e m e m b e r s * 1956 1 M em bers Union 2 A u to m o b ile ________ B a k e r y ___ rir B o i le r m a k e r s ____________________ B r i c k l a y e r s _____________________ B u ild ing S e r v i c e ________________ C a r p e n te r s _______________________ C lo t h in g _________________________ _ C o m m u n ica tio n s W ork er s ______ E le c t r ic a l (IU E )_________________ E le c t r ic a l (UE) ( i n d .) __________ E le c t r ic a l (I B E W )................. E n g in e e r s , O p e r a t in g __________ G a r m e n t , L a d ie s * _ ___ H od C a r r i e r s ___________________ H o te l __ ___ _________ _____ Iro n L e tte r C a r r ie r s ________________ M a c h in is ts _ _ _ _ _ ____ M ain ten an ce o f W a y ____________ M e a t ________________________ ____ M in e , M ill ( i n d . ) _______________ M ine ( i n d .) ______________________ 1 1 0 0 ,0 0 0 2 3 4 5 6 1 ,3 2 0 ,5 1 3 1 6 0 ,0 0 0 1 5 0 ,7 5 0 1 5 3 ,5 6 4 2 3 0 ,0 0 0 8 5 0 ,0 0 0 3 8 5 ,0 0 0 2 5 9 ,0 0 0 3 9 7 ,4 1 2 1 0 0 ,0 0 0 6 7 5 ,0 0 0 4 2 0 0 ,0 0 0 4 5 0 ,8 0 2 4 6 5 ,9 2 3 4 4 1 ,0 0 0 1 4 6 ,9 1 8 1 0 8 ,0 0 0 9 4 9 ,6 8 3 2 2 5 ,0 0 0 3 1 0 ,0 0 0 1 0 0 ,0 0 0 ( 5) 3 Union 2 M em bers M u s ic ia n s O il P a ck in g h ou se P a in te rs P l u m b i n g _______________________ P rin tin g P r e s s m e n ____________ P u lp _ _ _ _ R a ilr o a d T ra in m e n ( i n d . ) _____ R a ilw a y C a r m e n _______________ R a ilw a y and S team sh ip C le r k s R e ta il C l e r k s ___________________ R e t a i l , W h o le s a le __ _ ..... S tate an d C o u n ty S te e l S tre e t, E le c t r ic R a i l w a y _____ T e a m s t e r s _____________________ T elep h on e ( i n d . ) __ T e x t ile , U nited _ __ _ T e x tile W o r k e r s _______________ T ran sp ort W ork ers 6 2 5 6 ,8 5 1 1 8 3 ,0 0 0 1 5 0 ,0 0 0 2 1 7 ,0 0 0 2 4 3 ,7 6 3 1 0 4 ,0 0 0 1 6 5 ,0 0 0 2 1 7 ,4 6 2 1 2 9 ,8 0 4 3 5 0 ,0 0 0 3 0 0 ,0 0 0 1 1 7 ,6 6 8 1 7 8 ,0 1 7 1 5 0 ,0 0 0 1 ,2 5 0 ,0 0 0 1 4 3 ,6 8 0 3 1 ,3 6 8 ,0 8 2 1 0 0 ,0 0 0 1 0 0 ,0 0 0 2 0 2 ,7 0 0 1 3 0 ,0 0 0 The m e r g e d U nited P a p e r m a k e r s and P a p e r w o r k e r s jo in e d the ra n k s o f u n ion s w ith o r m o r e m e m b e rs in M a r ch 1957. A ll u nion s not id e n tifie d as ( i n d . ) w e r e a ffilia te d w ith the A F L -C I O . E x p e lle d b y the A F L -C I O in D e c e m b e r 1957. P e r ca p ita pa ym en ts to the A F L -C I O (June 30, 1956). M em b ersh ip fig u r e not r e p o r t e d . B e ca m e a ffilia te d w ith the A F L -C I O in 195,7. SO U R CE: D ir e c t o r y o f N ation al and In tern a tion al L a b o r U nions in the U nited S ta te s a 1957, B L S B u ll. 1222. 1:01 9 National Industrial Recovery Act o f 1933, and the National Labor Relations Act (Wagner Act) which replaced i t , provided Government recognition o f the right o f workers to form unions and to bargain c o lle c tiv e ly . The National Labor Relations Act was replaced in 1947 by the Labor Management Relations Act (Taft-H artley Act) as the basic Federal law fo r the regulation o f labor-management rela tion s. Under th is law, which applies to industries engaged in interstate commerce, the closed shop is banned. A l i s t o f "unfair labor p ractices" (covering certain union a c t iv it ie s ) is a part o f the act, supplementing the l i s t o f unfair employer practices enumer ated in the 1935 le g is la tio n . Special rules govern strik es which -imperil the national health or safety. The re strictio n s placed upon union a ctiv ity by the Taft-Hartley Act did not a lte r the right o f workers to organize fo r c o lle c tiv e bargaining or to strik e to improve wages or working conditions. Other labor le g is la tio n has been enacted in recent years which provides many ben efits fo r workers. Probably the most im portant o f the Federal laws, from the standpoint o f the number o f workers covered, are the Fair Labor Standards Act, which estab lish es a minimum wage and overtime pay provisions fo r workers whose a c t iv it ie s are related to in terstate commerce, and the S ocial Se curity Act, which provides old -age, d is a b ilit y , and survivors* insurance, unemployment insurance, and other ben efits. Amendments to these acts in recent years have greatly extended th eir scope and in flu en ce. Leaders o f the labor movement have long realized that le g is la tio n favorable to th eir cause w ill most lik e ly be passed by le g is la to rs frien d ly to labor. Many years ago, Samuel Gompers, then president o f the AFL, suggested that workers "reward la b o r's frien ds and defeat la b o r's enemies." In recent years, both the AFL and CIO, and the AFL-CIO since the merger (see below), as w ell as a number o f individual national unions, have sponsored p o l it ic a l action groups to promote the in terests o f candidates frie n d ly to labor. Supported by contributions from workers, these organiza tion s generally bring the voting records o f candidates before workers and frien ds o f labor. Labor groups also maintain repre sentatives in Washington, D. C ., and in State ca p ita ls, to in d i cate th eir attitu de toward le g is la tiv e proposals and urge passage o f those considered desirable. Unity in the Labor Movement Passage o f time and changes in the patterns o f industry and o f union organization lessened the differen ces which existed 1:01 10 between the AFL and the CIO. The two organizations were never as fa r apart as the heat o f th eir controversy made i t appear; both were sim ilar in structure and o b je c tiv e s . Their a ffilia t e d unions operated in the same general manner and generally sought the same goals. There was probably as much d iv e rs ity o f outlook and ap proach within each federation as between the federation s. Even the c o n flic t between in dustrial or cra ft unionism tended to fade with the years, p a rticu la rly a fte r many AFL unions broadened th eir base o f organization to include a l l workers in the plant. In 1953, the two organizations negotiated a "n o-raidin g" pact which was the foundation upon which eventual merger was con summated. A fter that agreement, i t was possible to proceed with the unity talk s which culminated in the formation o f a reunited federation in December 1955. The founding o f the AFL-CIO promised a new era in Ameri can labor h istory . Although th is was e s s e n tia lly a merger o f top structures and a re co n cilia tio n o f broad outlook and p o lic ie s , the f i r s t convention o f the new Federation expressed confidence that the consolidation o f unity throughout the entire organization would be su ccessfu l, that the many internal problems facing the new federation would be solved, and that the b en efits o f trade unionism would eventually be brought to m illions o f unorganized workers. The American trade union movement in 1956 claimed about 19 m illion members. Of these, approximately 16.9 m illion were members o f unions a f filia t e d with the AFL-CIO. 2 / Somewhat more than 1 m illion o f these workers were outside continental United States, mainly in Canada. The approximately 18 m illion union mem bers in the United States represented a l i t t l e more than one-third o f the to ta l number o f employees in nonagricultural establishments, the source o f union membership (except fo r executives, managers, and sim ilar groups). Labor’ s P articipation in Foreign A ffa irs The in terest o f the American labor movement in in te r national a ffa ir s has deepened and broadened during the past decade. Prior to World War I I , the t ie s o f United States unions to the world labor movement were interm ittent and tenuous, although the AFL had established fra tern a l relation s with the B ritish Trade Union Congress as early as 1895. For many years between 1910 and World 2 / The 3 unions expelled in December 1957 accounted fo r 1.6 m illion members. 1:01 11 War I I , the AFL was a f f ili a t e d with the International Federation o f Trade Unions, but th is relationship was an uneasy one and never on a scale commensurate wi'th the AFL’ s strength. Between the beginning o f World War II and the present time, the riv a lry between the two major federations in American had a strong influence on the a c t iv it ie s o f United States labor organi zations in foreign a ffa ir s . When the World Federation o f Trade Unions was formed in 1945, the AFL refused to jo in because the organization included the Soviet unions. The CIO gave the WFTU i t s support. In 1949, however, the CIO, the B ritish TUC, and some other national organizations, withdrew from the WFTU, charging that i t had become a t o o l o f international communism. The International Confederation o f Free Trade Unions, formed in 1949, united the American labor movement in i t s approach to world labor a ffa ir s . The AFL, CIO, and u n a ffilia te d United Mine Workers cooperated in the ICFTU*s formation, and have continued to support i t to the present tin e . The International Labor Organiza tio n (110) is also strongly supported by the American trade union movement. The merger o f the AFL and CIO was hailed by the ICFTU as a development which would substan tially increase the influence o f American labor abroad. The present goals o f the AFL-CIO are based on the premise that two world fo r c e s, democracy and totalitarian ism , are competing fo r supremacy. To the American labor movement, the f i r s t need is to strengthen the fo rce s o f p o lit ic a l democracy throughout the world. The second is to help create conditions favorable to the growth o f fre e trade unions everywhere. 1:01 1:02 Structure of the Trade Union Movement About 18 m illion 1 / workers in the United States are members o f unions. They pay dues, p a rticipa te in varying degrees in union a ffa ir s , and work under the terms o f c o lle c tiv e bargaining agreements negotiated by the unions. They are members o f , and pay dues to , union lo c a ls ; the lo ca ls are a ffilia t e d with and pay per capita taxes to national or international unions; the national or international unions are a f filia t e d with and finance a federation , or are independent. Nearly 90 percent 1 / o f union members, most o f the lo c a l unions, and most o f the national or international unions come within the o rb it o f the American Federation o f Labor and Con gress o f Industrial Organizations (AFL-CIO). The rest o f the unions are usually designated as independent or u n a ffilia te d . The composite o f members and unions is frequently termed the labor movement, or organized labor, or even labor. Such terms are convenient in describing the central purpose and growth o f trade unionism in the United States; but they are often misleading characterizations when used in connection with the structure, organization, and operation o f American trade unions at any given time. D iversity; a large degree o f self-autonomy; a distaste fo r formulas, theory, and regimentation; a b a s ica lly n on politica l orien tation —these are key ch a ra cteristics o f the system o f trade union organization functioning in the United States. For want o f a better term to s ig n ify the whole, th is chapter deals with the structure o f the trade union movement and the in terrelation sh ips among it s components. The base o f a trade union structure i s , o f course, the membership. The to ta l number o f employees in nonagricultural es tablishments—the source o f union membership except fo r executives, supervisors, and sim ilar groups—averaged close to 52 m illion in 1956. Of these, about 35 percent were union members. The propor tion o f union members was higher in mining, contract construction, manufacturing, transportation, and public u t i l i t i e s ; and lower in wholesale and r e ta il trade, finan ce, insurance, and real estate, serv ices, and government. The la tte r categories accounted fo r about h a lf o f to ta l employment in nonagricultural establishments. Union members belong to more than 70,000 union lo c a ls , each with it s own o ff ic e r s and rules. Locals vary in size from a few members to tens o f thousands o f members; they may include workers from one establishment or from hundreds, one cra ft or a l l occupations, e tc . y As o f 1956. ( 1) 2 Almost a l l o f the lo c a l unions are a ffilia t e d with one or another o f approximately 190 national or international unions. 2 / Eighteen unions accounted fo r 40,000 lo c a ls , or more than h a lf the to ta l number. Seventy-five unions had fewer than 100 lo ca ls each. Membership was sim ila rly concentrated in the larger unions. Six unions, with more than 500,000 members each, had one-third o f the t o ta l membership, and 15 unions with more than 300,000 members had more than h a lf o f the t o t a l. About 90 national or international unions had fewer than 25,000 members each. When the AFL and the CIO merged in December 1955, 141 national and international unions became a f filia t e d with the new federation . In addition, about 1,000 small federal labor unions and lo c a l in du strial unions (lo c a l unions formerly a ffilia t e d d i r e ctly with the AFL and the CIO without the intermediate re la tio n ship with a national union) were absorbed by the merged Federation. T otal membership o f the a f filia t e d unions amounted to 16.9 m illion in 1956, o f whom about 1 m illion were outside continental United States. The December 1957 biennial convention o f the AFL-CIO ex pelled the Teamsters, Bakery Workers, and Laundry Workers, with a combined membership o f approximately 1.6 m illio n . As a resu lt o f these expulsions and o f mergers, the AFL-CIO at the end o f 1957 had 136 a f f ili a t e d unions, with a t o ta l membership o f about 15.6 m il lio n . Outside the AFL-CIO were 50 u n a ffilia te d unions with a to ta l membership o f 2.9 m illio n , including the three expelled unions lis t e d above. Other prominent independent national unions were two major railroad brotherhoods (engineers and conductors), the coal miners, longshoremen, and some groups o f public employees. In addi tio n , there were a large number o f u n a ffilia te d lo c a l or sin g le firm unions with at lea st 500,000 members. 2 / A national union, as defined by the Bureau o f Labor Sta t i s t i c s , is a union with c o lle c t iv e bargaining agreements with em ployers in 2 or more States. An international union is a national union which claims ju r is d ic tio n and organizes workers beyond the continental lim its o f the United States. In 1956, unions with headquarters in the United States had approximately a m illion mem bers outside continental United States, distribu ted as fo llo w s: Canada, 987,000; Puerto R ico, 45,000; Hawaii, 35,000; Alaska, 21,000; Canal Zone, 2,000; elsewhere, 2,000. These members are not included in the estimate o f t o ta l union membership in the United States. 1:02 3 The Local Onion The basic organization in the trade union Movement i s the lo c a l union. Although i t can function alone as a single-company union, i t generally is a ffilia t e d with other lo c a l organizations in the sane c ra ft or industry as a part o f a national union. There is no fix e d pattern fo r the formation and ju r is diction o f lo c a l unions. National unions may charter lo c a ls fo r particular companies, fo r types o f products or work in a community, fo r geographical areas, e t c . For example in New York C ity, the Amalgamated Clothing Workers o f America maintains approximately 50 lo c a ls , bearing such designations as journeymen t a ilo r s ; clo th ing cu tters; coat makers; buttonhole makers; boxing and shipping; laundry, fam ily d iv is io n ; and r e ta il clothing salesmen. In B uffalo, N. Y. , the United Steelworkers o f America has about 55 lo c a ls , each one confined to a s p e c ific plant under contract. In Nassau and Suffolk Counties, N. Y ., the carpenters' union maintains a lo c a l covering members in each small community. Thus, lo c a l unions vary widely in size and ju r is d ic tio n . The functions o f a lo c a l union center upon such o b je c tiv es o f trade unionism as: Negotiating and/or administering c o l le c tiv e bargaining contracts, adjusting grievances and complaints, finding jobs fo r unemployed members, conducting educational pro grams, c o lle c tin g dues, e t c . In many instances, the national union provides assistance to the lo c a l, p a rticu la rly during the process o f contract negotiations. Local union o f f ic e r s are usually elected from the l o c a l 's membership, generally fo r 1-year terms. As a rule, any member in good standing may run fo r o f f i c e . E lection rules o rd in a rily re quire notice to a l l members o f the pending e le c tio n , open nomina tio n s, and secret b a llo ts . In small lo c a ls , elected o ff ic e r s usually continue to work at th eir trade and receive no regular salary fo r th eir serv ices. In larger organizations, fu ll-tim e o f f i c i a l s may be needed. The amount paid to the various o ff ic e r s fo r th eir services generally depends upon the size o f the lo c a l and complexity o f the duties the o ff ic e r s must perform. In most cases, the secretary-treasurer o f a lo ca l is paid a stipulated amount fo r keeping the books. In many lo c a l s » the a c t iv it ie s o f the paid o f f ic e r s are reviewed weekly by an executive board o f working mem bers, and monthly meetings provide an opportunity fo r a l l members to p a rticip a te. The shop community, or union a c t iv it ie s within the plant, is a fundamental part o f lo c a l union l i f e . Whether or not they 1:02 4 attend meetings, members usually keep abreast o f union a ffa ir s by way o f the shop-talk o f the active members. More form ally, however, the shop community i s usually represented in the lo c a l union through the shop stewards or shop committeemen. The larger the lo c a l (in terms o f membership and number o f establishments represented) the smaller the influence o f shop community becomes; correspondingly, the need fo r more formal types o f representative government grows with s iz e . The conduct o f lo c a l o ff ic e r s is usually subject to con t r o l by the national union. I f o ff ic e r s v io la te the provisions o f the national union's con stitu tion or the rules la id down by the parent organ ization 's convention, they may be expelled. In such cases, lo c a l a ffa ir s may be supervised by the national union. Representatives elected by the members o f the lo c a l union attend the regular conventions o f the national union and, as dele gates, have a voice in i t s a ffa ir s . Between conventions, contact is maintained through reports submitted by the lo ca l union and by v is it s o f representatives o f business agents o f the national union. The primary sources o f revenue for the support o f the union and i t s a c t iv it ie s are the dues, in itia tio n fe e s , and assessments c o lle c te d from the members. (See chart 1 .) The amount o f dues and assessments may vary widely from union to union, de pending la rg ely upon the s k i ll and earning power o f the members, or upon the amounts needed by the union fo r strike funds, or fo r pay ment o f d is a b ilit y , unemployment, or old-age or death claims, i f such ben efits are provided. Assessments are generally lev ied fo r a s p e c ific purpose. In itia tio n fe e s also vary among unions. The national union generally exercises some con trol over the amounts o f a l l dues and fees charged to the members, e sp e cia lly since i t re ceives it s prin cipal support from a portion o f these c o lle c tio n s by the l o c a l. The National or International Union The national or international union con sists o f a group o f lo c a l unions banded together in a formal organization. I ts aims are, broadly, to extend and protect the organization o f an industry or a c r a ft ; to increase the bargaining power o f the lo c a l unions and the workers they represent; to deal with the problems o f widen ing markets and migratory workers; and to advance the more general economic in terests o f i t s members. In the process o f working toward these goals, the national union, p a rticu la rly i f i t is o f any considerable s iz e , has developed 1:02 FLOW OF UNION REVENUES AND SERVICES Federation 1. L e g is la t iv e z . O rg a n iz in g 3 . R e s e a rc h a n d e d u c a tio n 4 . P u b lic a tio n s International 5 . J u r is d ic t io n a l p ro b le m s 6 . Legal Etc. ►1. O rg a n iz in g 2 . C o lle c tiv e b a r g a in in g in clu d in g n e g o t ia t io n s fo r b e n e fit p ro g ra m s 3 . S tr ik e a s s is t a n c e 4 . L e g is la t iv e an d le g a l 5. R e s e a rc h an d e d u c a tio n 6 . J o u r n a ls a n d p u b lic a tio n s 7 . A d m in is tr a tio n of co n tra c t 8 . A d m in is tr a t io n of b e n e fit a n d w e lf a r e p ro g ra m s 1. 2. 3. 4. 5. C o lle c tiv e b a rg a in in g O rg a n iz in g A d ju stm e n t of g r ie v a n c e s A d m in is tr a t io n of co n tra ct A d m in is tr a tio n of b e n e fit an d w e lf a r e p ro g ra m s 6. Legal 7 . U n io n h a ll 8. C o m m u n ity w o r k Etc. “Daed UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS 6 a va riety o f functions and serv ices. These include; Direct aid in organization and negotiation; leg a l assistance; providing in fo r mation through research and pu blication o f news o f in terest to workers; and health, insurance, and pension plan s e rv ice s. Repre sentation before government agencies and with other labor organiza tion s are also nearly always functions o f the national union, as are the less d irect services relatin g to public relation s a c t iv it ie s . In the larger unions, p a rticu la rly there membership is widely dispersed geographically, an intermediate operating agency between the national union and the lo c a ls may be established. In such cases, lo c a ls are grouped by region, area, or d i s t r ic t , or sometimes by type o f industry, and report to an o f f i c i a l designated by the national union or by the lo c a ls in the group. The United Automobile Workers divides i t s ju r is d ic tio n among regions; the United Mine Workers among d is t r ic t s ; and the Teamsters among con feren ces. Whatever the term used, these o f f ic e s serve as an arm o f the national union and often as a p o lit ic a l fo rce within the union. Larger unions may employ extensive s ta ffs o f paid workers to carry on th eir business. Organizers, or international repre sen tatives, are hired to s o l i c i t new members and establish new lo c a l unions wherever p ossib le . In addition, they act as advisers to established organizations and a ssist in the preparation and en forcement o f contracts. Research d ire cto rs and s ta tis tic ia n s pre pare materials fo r c o lle c tiv e bargaining or other purposes. Educa tio n d irectors are employed to increase workers' knowledge o f labor a ffa ir s and to keep union stewards informed in the performance o f th eir duties. Research d irectors are employed by about h a lf o f the national unions in the United States. Educational d irectors are found in somewhat fewer unions. Almost a l l national unions issue p u blica tion s. The convention, which, as has been indicated, is made up o f delegates selected by the lo ca l unions, is the governing body o f the most national unions. Meeting p e r io d ic a lly , the convention e le c ts o f f i c e r s , adopts or amends the con stitu tion and bylaws, and sets the p o lic y fo r the union to fo llo w in a l l i t s a ffa ir s . I t may also decide appeals from lo c a l or national union actions. O ffic e rs are elected by the convention delegates in about three-fourths o f the unions, thereas approximately one-fourth e le c t th eir o ff ic e r s by referendum vote o f the general membership. These o f f ic e r s carry on union a ffa ir s between conventions. National 1:02 7 Chart 2 STRUCTURE OF THE A F L -C IO UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS. 1:02 8 union o ff ic e r s nearly always include a general president, a secre tary-treasu rer, and an executive board. The president generally has authority, subject to approval by the executive board and appeal to the convention, to decide questions o f in terpretation o f the union con stitu tion ; to issue and revoke lo c a l union charters; to appoint or dismiss union employees; to remove or suspend lo c a l union o f f ic e r s ; to approve strik e s ; and to a lloca te strik e b e n e fits. He also has great influence in determining matters to be discussed at meetings o f the executive council and at the convention. His decision s and course o f action usually have a marked e ffe c t on a l l o f the organ ization 's in ternal a ffa ir s , and also on public opinion regarding the union. The p rin cipal source o f income fo r the national union is the per capita tax which i s paid by the lo c a l union each month on the basis o f a s p e cifie d amount fo r each member. Other sources o f income include charter fe e s , a share o f the in it ia t io n fe e , rein statement fe e s , and assessments. Some additional receipts may be obtained from union investment o f surplus funds. The Federation Most national unions became members o f a single federa tio n in December 1955, when the AFL and CIO merged. The AFL and CIO were each la rgely sim ilar in structure to the new Federation, the AFL-CIO. This structure, in turn, is very much lik e the o r ganization o f most large national unions ( chart 2 ). The convention i s the primary governing body, and the president and secretarytreasurer have e s s e n tia lly the same r e sp o n s ib ilitie s as th eir counterparts in the large national unions, on a substan tially broader s ca le , o f course. The Executive Council consists o f the president, secretary-treasurer, and 27 vice presiden ts, mostly presidents o f national unions. Large s ta ffs o f p rofession al as sistan ts are employed. The AFL-CIO has only such powers and engages in such ac t iv it ie s as are assigned to i t by it s a f f ili a t e s and granted in i t s con stitu tion . It has no d ire ct authority to regulate the internal a ffa ir s or a c t iv it ie s o f i t s member unions, so long as they do not impinge on the ju r is d ic tio n o f other a f filia t e d unions. Although the Federation has a great deal o f influence with it s member unions, i t s actual power is the power o f suspension or expulsion from the Federation, which must be approved by vote o f the convention. Each union is en title d to representation in the AFL-CIO convention according to the membership upon which per capita taxes are paid to the Federation. The convention meets every 2 years. 1:02 9 Between conventions, the o f f ic e r s , the Executive Council, the Executive Committee, and the General Board manage the a ffa ir s o f the Federation. The o b jectiv es and p rin cip les which guide the Federation are set forth in i t s con stitu tion , as fo llo w s: 1. To aid workers in securing improved wages, hours, and working conditions with due regard fo r the autonomy, in te g r ity , and ju r is d ictio n o f a ffilia t e d unions. 2. To aid and a ssist a f filia t e d unions in extending the ben efits o f mutual assistance and c o lle c tiv e bargaining to workers and to promote the organization o f the unorganized into unions o f th eir own choosing fo r th eir mutual aid, p rotection , and advancement, giving recognition to the p rin ciple that both cra ft and industrial unions are appropriate, equal, and necessary as methods o f union organization. 3. To a f f ili a t e national and inter national unions with th is Federation and to establish such unions; to form organizing committees and d ir e c tly a ffilia t e d lo ca l unions and to secure th eir a f filia t io n to appropriate national and international unions a f filia t e d with or chartered by the Federation; to es ta b lish , a s s is t, and promote State and lo ca l central bodies composed o f lo ca l unions o f a ll a f filia t e d organizations and d ir e c tly a f f i l i ated lo c a l unions; to establish and assist trade departments composed o f a ffilia t e d na tion a l and international unions and organizing committees. 4. To encourage a l l workers without re gard to race, creed, co lo r, national o r ig in , or ancestry to share equally in the f u l l bene f i t s o f union organization. 5. To secure le g is la tio n which w ill safe guard and promote the prin ciple o f fre e c o lle c tiv e bargaining, the rights o f workers, farmers, and consumers, and the secu rity and welfare o f a l l the people and to oppose le g is la tio n in i mical to these o b je c tiv e s . 1:02 10 6. To protect and strengthen our demo c r a tic in stitu tio n s; to secure f u l l recognition and enjoyment o f the rights and lib e r t ie s to which we are ju stly e n title d ; and to preserve and perpetuate the cherished tradition s o f our democracy. 7. To give constructive aid in promoting the cause o f peace and freedom in the world and to aid, a s s is t, and cooperate with fre e and democratic labor movements throughout the world. 8. To preserve and maintain the in te g rity o f each a f filia t e d union in the organization to the end that each a f f i l i a t e sh a ll respect the established bargaining relationships o f every other a f f i l i a t e , and that each a f f i l i a t e sh all refrain from raiding the established bargain ing relationship o f any other a f f i l i a t e and, at the same time, to encourage the elim ination o f c o n flic tin g and duplicating organizations and ju ris d ictio n s through the process o f voluntary agreement or voluntary merger in consultation with the appropriate o f f i c i a l s o f the Federa tio n ; to preserve, subject to the foregoing, the organizing ju r is d ic tio n o f each a f f i l i a t e . 9. To aid and encourage the sale and use o f union-made goods and union services through the use o f the union label and other symbols; to promote the labor press and other means o f furthering the education o f the labor movement. 10. To protect the labor movement from any and a l l corrupt influences and from the undermining e ffo r t s o f the Communist agencies and a l l others who are opposed to the basic p rin cip les o f our democracy and fre e and demo c ra tic unionism. 11. To safeguard the democratic character o f the labor movement and to protect the auton omy o f each a ffilia t e d national and interna tio n a l union. 12. While preserving the independence o f the labor movement from p o l it ic a l con trol, to 1*02 11 encourage workers to reg ister and vote, to exercise th eir f u l l rights and r e sp o n s ib ilitie s o f citizen sh ip , and to perform th e ir rig h tfu l part in the p o lit ic a l l i f e o f the lo c a l. State, and national communities. To carry out these o b je c tiv e s , the Federation has estab lish ed programs: (1 ) To extend union organization, both d ir e c tly and by a ssistin g the a f filia t e d unions; (2 ) to provide research, le g a l, and technical assistance to th eir member unions; (3 ) to pub lis h p eriod ica ls and other lite ra tu re dealing with problems o f in terest to la bor; (4 ) to represent and promote the cause o f labor before the various branches o f government and before the general p u b lic; (5 ) to determine the ju r is d ic tio n a l lim its o f the a f f i l i ated unions and to protect them from dual unionism; (6 ) and to serve as th eir spokesman in international a ffa ir s , e s p e c ia lly in ter national labor movements. The AFL-CIO has established s ix trade and in dustrial de partments which operate as separate organizations within and sub ordinate to the Federation. Their functions are to fa c ilit a t e interunion relation s and to promote the organized a c t iv it ie s o f s p e c ific groups o f workers. These departments include the Build ing and Construction Trades Department, Metal Trades Department, Union Label and. Service Trades Department, Maritime Trades Depart ment, Railway Employees Department, and an Industrial Union Depart ment. With the exception o f the Industrial Union Department, these departments were carried over from the AFL. The Industrial Union Department was established at the time o f the merger to provide cen t r a l guidance to unions organized in rtiole or in part on an indus t r i a l basis. Unions a f f ili a t e d with the departments pay a per capita tax on the basis o f the number o f members coming within the ju r is d ic tio n o f the department. The departments o f the AFL-CIO are expected to take an active part in the prevention o f ju r is d ic tio n a l disputes and in th eir settlem ent, i f and when they do a rise . The Federation's concern with the problem o f ju r is d ic tio n is noted in item 8 (p .1 0 ), quoted from the AFL-CIO con stitu tion . In addition, the agreement fo r merger provided that machinery was to be set up to implement th is provision , and that each member union was to have the same organizing ju r is d ic tio n as i t had before the merger. Since th is la tte r provision w ill continue the e x is t ence o f duplicate organizations, elim ination o f c o n flic ts by "agreement, merger, or other means, by voluntary agreement in con su lta tion with the appropriate o f f i c i a l s o f the merged Federation" 1:02 12 is proposed. The procedures fo r s e ttlin g ju r is d ic tio n a l disputes in the AFL (the internal disputes plan) and in the CIO (the organi zational disputes agreement} , which were binding only upon unions choosing to abide by th eir terms, were carried over into the new Federation. The AFL-CIO con stitu tion makes provision fo r 15 standing committees to guide the work o f the Federation in various fie ld s o f a c tiv ity . In addition, permanent s t a f f departments provide pro fession a l aid in research, education, organizing, p o lit ic a l action , and sim ilar a c t iv it ie s . The State and lo ca l bodies a f filia t e d with the AFL-CIO carry on Federation a c t iv it ie s in various geographical areas o f the Nation. The Federation permits the direct a f f ili a t io n o f lo c a l unions in those cra fts o f industries in which no appropriate na tion a l union is chartered. Organizing committees are established when it is deemed advisable to bring together related lo c a ls as a preliminary step to the creation o f a new union. The main source o f support fo r the AFL-CIO is provided by a per capita tax, le v ie d upon the paid-up membership o f each a f f i l i ated national union. Additional funds are received from investments ren tals, subscriptions to pu blication s, and sim ilar sources. Although not a department o f the AFL-CIO, the Railway Labor Executives A ssociation i s composed o f executives o f 22 labor organizations, a l l but 2 o f which are Federation a f f ili a t e s . I t functions as a policymaking body on le g is la tiv e and other matters o f mutual in terest to ra ilroa d workers. Independent or U n affiliated Unions About 3 m illion members, 50 national unions, and a large number o f sin gle-firm or lo c a lit y unions, are not part o f the AFL-CIO structure. These unions arrived at th eir independent or un a f filia t e d status by various routes. Some, such as the railroad brotherhoods, never join ed a federation . Some joined and la te r with drew; the United Mine Workers i s probably the best known example o f th is group. Some were expelled; fo r example, in 1949 and 1950, the CIO expelled 11 unions on charges o f Communist domination. Of th is la tt e r group, only 4 remained in existence as independent unions in 1957. Late in 1957, the AFL-CIO also expelled 3 unions on charges o f domination by corrupt influences. In the area o f u n a ffilia te d unions, there are three o r ganizations which have some o f the ch a ra cteristics o f a federation ; 1:02 13 that i s , they issue charters t o , or maintain a f f ili a t io n among, labor organizations in more than one industry. These are the Confederated Unions o f America, the National Independent Union Council, and the Engineers and S cien tists o f America. These o r ganizations also have some o f the ch a ra cteristics o f national unions in that they accept into membership lo c a l unions represent ing a sin gle organization. 1:02 1:03 Administration of National Unions National unions, frequently called "internationals'* i f they also have members in Canada o r elsewhere outside continental United S tates, comprise the ch ie f con trollin g o r guiding mechanism o f the trade union movement. There are approximately 190 now in existence, ranging in s iz e from a few hundred members to such giant organizations as the Automobile Workers, the Steelworkers, and the Teamsters, each with w ell over a m illion members and from 1,000 to 2,500 a f filia t e d lo c a l unions ( l o c a l s ) . About three-fourths o f the national unions, accounting fo r nearly 90 percent o f a l l union mem bers in the United States, were a f filia t e d with the AFL-C10 in mid-1957. National unions f i r s t came into prominence during the la tte r part o f the 19th century; they have grown extensively since then. In terms o f organizational structure, the larger national un-ions have much in common, but d ifferen ces in methods o f operation are often great. The nature o f the industry in which they operate (e . g . , the s iz e o f the employer units or the degree o f organiza tion among employers) may be a fa cto r influencing the functions o f national unions. For example, the national o ff ic e r s o f the Auto mobile Workers, Steelworkers, and Mine Workers assume much o f the resp on sib ility fo r negotiating the major c o lle c tiv e bargaining agreements. On the other hand, in such unions as the Teamsters and the Carpenters, where the emphasis i s on lo c a l agreements, c o l le c tiv e bargaining is rarely a function o f national headquarters. The history o f the organization, the type o f leadership, even the type o f membership, are additional fa cto rs which help to shape each national union and give i t unique q u a litie s. This report attempts to describe b r ie fly , and in general terms, the manner in which national unions are governed. I t must be emphasized that unions are voluntary organi zations, re la tiv e ly free o f government restra in ts. They are also largely autonomous in the sense that, although a ffilia t e d with a Federation (notably the AFL-CIO), each national union maintains substantial freedom and independence o f action . The con stitu tion o f the AFL-CIO states that "each a ffilia t e d national and interna tion a l union is e n title d to have i t s autonomy, in te g rity , and ju r is d ic tio n protected and preserved." At the same time, the Federation is determined " to pro tect the labor movement from any and a ll corrupt in flu en ces," hence it s Executive Council has the authority to investigate any a f f i l i ate accused o f corrupt p ra ctices, to make recommendations or give d irection to the a f f i l i a t e involved, and to suspend an a f f i l i a t e . This authority was ca lle d into use within the year follow ing the formation o f the AFL-CIO. ( 1) 2 H isto r ic a lly , unions have cherished the prin cip les o f con stitu tion al government and the democratic aspirations which have nourished th eir formation and growth. That these id eals have been disregarded at times by some union o f f i c i a l s is acknowledged by the labor movement i t s e l f . The extent to which particular unions exh ibit some o f the tendencies o f other voluntary organizations, including a gradual reduction o f active membership p a rticip a tion in the government o f th eir organization, an increasing concentration o f authority and resp on sib ility in the hands o f elected o f f i c i a l s , and a weakening o f channels o f communication between o ffic e r s and members, is an aspect o f union administration that cannot be ac counted fo r in a report o f th is type. Union Government Each union has it s own con stitu tion or set o f laws and rules Which establishes the structure o f the organization and the leg a l framework fo r it s government and administration. The con s titu tio n fix e s the relationship between the national union and the lo c a ls . It ty p ic a lly sets forth the minimum amount o f dues (and sometimes the maximum) that members are required to pay to the lo c a ls , the portion o f dues that lo ca ls must transmit to the na tion a l union (the per capita ta x ), the general q u a lifica tion s fo r membership, the functions o f union o ff ic e r s and the method o f th eir e le c tio n , the frequency o f conventions and the authority o f the convention, the composition o f the union's executive body, and d is cip lin a ry and appeals procedures. The con stitu tion may also deal with the c o lle c tiv e bargaining a c t iv it ie s o f lo ca l unions by re quiring national union authorization to strik e and national union approval o f agreements, or i t may prescribe certain procedures which lo c a l unions are to fo llo w in strik e situ ation s. Conventions. —The right to change the union's constitu tio n is ty p ic a lly vested in the union convention, the period ic assembly o f o ff ic e r s and delegates representing the lo c a l unions. Thus, the convention is the law-making body in the union. In addi tio n , in most unions, the convention nominates and e le cts the president and other p rin cipal o ff ic e r s . The convention may act as the fin a l court o f appeal in d iscip lin a ry matters, o r even in s t i tute d iscip lin a ry actions as in removing an o f f i c e r fo r conduct detrimental to the union. About tw o-fifth s o f the national unions in the United States hold conventions every 2 years; about a f i f t h meet every year. A number o f large unions hold conventions every 4 years. Under certain conditions, a union may c a ll a sp e cia l convention to consider a p a rticu la rly cru cia l problem. O ccasionally, conventions 1:03 3 are postponed or canceled, usually by membership referendum. Con* ▼entions la st fo r a week or so and involve substantial costs fo r the unions, e sp e cia lly large unions idiich may bring together, from a l l parts o f the country, 2,000 or more delegates. Most unions nominate and e le c t th eir presidents by the vote o f delegates to the convention, generally according each dele gate voting strength proportionate to the number o f members he represents. Some unions provide fo r nominations at the convention, but fo r a membership referendum rather than delegate vote. 1 / Few constitu tions provide fo r secret b a llo ts in convention voting; most depend on a " r o l l c a l l ’' vote or a show o f hands. The e le c tio n o f other o ff ic e r s generally follow s the same practice used fo r the presidency. The role o f the convention as the governing, p o lic y making, and e le cto ra l body is not the only reason fo r assembling the representatives o f a f filia t e d lo c a l unions. Most conventions also seek to stimulate union s p ir it , s o lid a r ity , and morale. O f f i c ia l views on p o lic y matters are explained to the delegates fo r transmittal to the lo c a ls they represent. Resolutions are adopted, many to express the union's views on domestic and international a ffa ir s and on p o l it ic a l issues o f the day. Persons o f note, f r e quently Government o f f i c i a l s and v is ito r s from abroad, are heard. In large conventions, -most o f the important decisions are shaped by committees which may explore the problems at hand in con siderable d e ta il. The committees' reports are often given perfunc tory approval by the assembled delegates; in the older unions, opposition or disagreement seldom arises from the convention flo o r . Factionalism is becoming increasingly uncommon among national unions. Only one union, the International Typographical Union, has a formal system o f separate "p a r tie s ." Executive Boards. — In terms o f con stitu tion al authority, the union's Executive Board, sometimes ca lle d "internation al coun c i l , " "grand lod g e," e t c ., ranks second to the convention in most 1 / The major type o f ele ctio n method which does not involve use o f convention procedures consists o f allowing lo c a ls or other groups o f union members to make nominations. The candidates named are then voted upon by the membership as a whole. More than 30 unions follow th is p ra ctice . 1?03 4 unions. The 5 types o f executive boards, in order o f th eir preva lence, 2 / are: 1. Executives only, that i s , president, secretary-treasurer, and some or a l l o f the vice presidents or d is t r ic t d ire cto rs , but no d ire ct representation from the membership. 2. tiv es . 3. O ffic e rs plus membership representa Membership representatives only. 4. Double executive boards—usually a combination o f 1 and 2 above. 5. M ultiple boards— 3 or more executive bodies, usually with a d iv isio n o f functions. Although executive boards are granted supervisory powers by union con stitu tion s, th eir s p e c ific duties vary among unions. In most cases, the board authorizes strik es proposed by lo c a l unions. In some unions, the board passes upon c o lle c tiv e bargain ing agreements negotiated by the lo c a l union; in other unions, th is is one o f the p resid en t's functions. The board may have the power to issue or revoke lo c a l union charters and repeal lo c a l bylaws i f not in agreement with the national con stitu tion , or even take charge o f lo c a l union a ffa ir s , i f necessary, fo r the protection o f the union. The board may pass on a l l lo c a l grievances and appeals, supervise the keeping o f records and reports, provide d ire ctio n to the un ion's pu blication s, and prepare fo r conventions. In general, the board decides a l l major issues dealing with union operation, subject only to lim itation s set forth in the union con stitu tion and the approval or disapproval o f the convention. R esponsibility fo r day-to-day administration rests with the individual union o f f ic e r s , irfio report on th eir a c t iv it ie s to the board and to the convention. O ffic e r s . —The c h ie f elected o f f i c i a l s o f national unions usually are the president, one or more v ice presidents, and the secretary-treasurer. Union constitutions usually describe the duties o f the president somewhat as fo llo w s: 2/ See Handbook o f Union Government, Structure, and Proce dures, National Industrial Conference Board, I n c ., New York, 1956 (p . 82 ). 1:03 5 The general president as c h ie f executive o f f i c e r shall have f u ll authority to d ire ct the working o f the organization within the provi sions o f the con stitu tion ; he sh a ll convene and preside at a l l general executive board and con vention meetings and between sessions execute th eir in stru ction s; he sh a ll be an ex o f f i c i o member o f a l l committees and appoint a l l com m ittees not otherwise provided fo r ; he sh a ll supervise and be responsible fo r the work o f a l l organizers and levy assessments according to the provisions o f the con stitu tion and make a f u l l report o f a l l union a c t iv it ie s to the general executive board and the convention. In most unions, the duties o f the president are more ex tensive in p ractice than in the con stitu tion . He is generally the representative and, frequently, the p erson ifica tion o f the union to employers, the government, and the general pu blic. Within the union, he may take a broad view o f the scope o f h is powers under the con stitu tion . Union presidents may have the re sp o n sib ility fo r negoti ating agreements covering thousands o f workers, fo r managing and investing large funds, fo r directin g the various a c t iv it ie s in which national unions engage, fo r administering the operations and the s t a f f o f the union, and fo r dealing with government o f f i c i a l s . Such re sp o n s ib ilitie s require extensive knowledge, experience, and leadership a b ili t ie s . Salaries o f national union presidents, which vary widely among unions, r e fle c t , in part at le a st, an appraisal o f the re sp o n s ib ilitie s o f the o f f i c e , a c rite r io n perhaps more commonly accepted in connection with the sa la ries o f corporation executives. A few union presidents earn $40,000 a year or more, but these cases are not ty p ic a l. In general, sala ries are higher in the larger unions. Among unions with 25,000 members or more, r e la tiv e ly few union presidents receive le s s than $10,000 a year. Among the larger unions (100,000 members or more), most presiden t i a l sa la ries f a l l in the range o f $15,000 to $40,000. Subordinate o f f ic e r s , such as the secretary-treasurer, usually receive lower sa la rie s. Union executive o ff ic e r s also re ceive allowances to cover expenses incurred in the performance o f union business. Union A c tiv itie s and Programs As the trade union movement grew from small lo c a l organi zation s, dealing with lo c a l employers, to larger unions, national 1:03 6 in scope, the a c t iv it ie s and services o ffe re d by unions also ex panded. The basic a c t iv it ie s which the national union undertakes are, o f course, associated with the immediate problems o f unioni zation and with the welfare o f the worker on the jo b . These a c tiv i t i e s include the organization o f workers into lo ca l unions, a s s is t ing lo c a ls in c o lle c tiv e bargaining and the w riting o f contracts (o r dealing d ir e c tly with employers), coordinating the a c t iv it ie s o f the lo c a ls , working out ju r is d ic tio n a l problems, strik e con trol and assistance, and, in varying degrees, assistance in contract administration, administration o f health, insurance, and pension plans, and the settlement o f grievances. Partly as an outgrowth o f the development o f these a c t iv i t i e s and partly to o ffe r other forms o f direct and in direct aid to th eir membership, many national unions have developed a number o f related programs, such as: 3 / 1. Research, s t a t i s t i c <1, le g a l, and engineering serv ice s, f i r s t undertaken p rin ci p a lly as an aid to c o lle c tiv e bargaining and now extended to many other fie ld s o f union in terest. 2. P ublication o f papers, magazines, bul le t in s , and other materials to inform the mem bership about labor a ffa ir s , and fo r public relation s purposes. 3. Workers' education programs, designed prim arily to help union o f f i c i a l s , stewards, and the membership to conduct union a ffa ir s more e ff ic ie n t ly and to be better union members. 4. P o lit ic a l a c tiv ity to encourage workers to register and to vote fo r favored candidates. 5. International labor matters in ahich national unions participate independently. 6. Relations with government agencies, such as the U. S. Department o f Labor and the National and State Labor Relations Boards, and 3 / Most o f these a c t iv it ie s w ill be discussed in more d eta il in other chapters o f the Guide. 1:03 7 a c t iv it ie s designed to promote le g is la tio n favorable to labor. 7. A c tiv itie s relating to community serv ic e s , such as cooperation in charity drives and other community fund-raising a c t iv it ie s . 8. A c tiv itie s relatin g to the health and w ell-being o f individual members, including promoting and financing low -cost housing, es tablishing and operating vacation f a c i l i t i e s , maintaining clubs or communities fo r retired workers, operating training and apprenticeship programs, e tc . D iscipline and Appeals An important function o f the national union is to enforce it s con stitu tion —that i s , to require lo c a l unions and individual members to conform to national union rules and p o lic y , and also to protect th eir rights as expressed in the con stitu tion . The power to d iscip lin e by reprimand, fin e , suspension, or expulsion, is thus an essen tial part o f union operation. The right o f a union to pre scribe it s own rules fo r membership is not impaired by le g is la tiv e re strictio n s protectin g the job rights o f workers against union discrim ination. The con stitu tion s o f many national unions sp ecify the causes fo r which an individual member may be d iscip lin e d . More common, however, are provisions permitting d iscip lin e fo r any act unbecoming a union member or detrimental to the in terests o f the union. Generally, the con stitu tion ou tlin es the procedure fo r bringing charges and the steps which must be taken'to ensure that members' rights to hearings and appeals are protected. With few exceptions, national union constitu tions provide fo r open hearings during t r ia ls at the lo c a l union le v el and at least a m ajority, or more generally a tw o-thirds, vote before a penalty is imposed. Pro gressive steps fo r appeal are also provided to the national p re si dent, the general executive board, and the national convention, in that order. In a few unions, the entire membership may be p olled on a referendum vote. Of r e la tiv e ly recent o rig in is the widespread adoption o f con stitu tion al provisions barring Gommunists, F ascists, and other subversives from membership or from holding union o f f i c e . Many unions with no s p e c ific con stitu tion al provisions banning subversives have made th eir feelin g s evident in other ways. Most 1:03 8 o f the con stitu tion al provisions are enforceable through lo c a l union t r i a l machinery when members are involved, and through t r i a ls held at the national union le v e l i f national union o ff ic e r s are in volved; under both procedures, the rights o f the individual to a f a i r hearing are usually set fo rth . Financing the Union The maintenance o f a large national union and i t s various a c t iv it ie s obviously requires substantial funds, most o f idiich, i f not a l l , must come from i t s members by way o f the lo c a l unions. The lo c a l unions generally set the le v e l o f dues, in it ia t io n fe e s , and assessments (when necessary), frequently within lim its estab lish ed by the national con stitu tion . 4 / In turn, the national union le v ie s a per capita (membership) tax on the lo c a ls , an amount usually fix e d in the con stitu tion . Thus, membership contributions are divided between the lo c a l and the national union. Per capita taxes paid to the national organizations out o f members' dues to the lo c a l unions range from le ss than 25 cents a month to more than $2. A recent analysis o f 115 constitu tions specifyin g the per capita tax showed the follow in g d istrib u tio n : 5 / Monthly per capita tax paid to national unions Number o f unions $0.25 and under .............. $0.26 to $0.50 ................ $0.51 to $0.75 ................ $0.76 to $1.00 ................ $1.26 to $1.50 ................ $1.51 to $1.75 ................ $1.76 to $2.00 ................ Over $2.00 ........................ On the average, approximately $1.10 a month o f members' contributions went to the support o f th eir national unions, exclu ding other possible contributions in the form o f in it ia t io n fees and assessments. It is probable that lo c a l unions retain at least an equal amount fo r th eir own needs. On the whole, i t would seem that union members contribute about 1 percent (o r le s s ) o f th e ir gross annual income to the support o f th eir unions (lo c a l and na tio n a l) in the form o f dues. Some additional income is also ob tained from in itia tio n fees and returns on union investments in 4/ 5/ 1:03 See 1:04, Administration o f Local Unions. National Industrial Conference Board, op. c i t . (p . 32). 9 property or bonds. Assessments are irregular and usually are levied fo r a s p e c ific purpose, such as building a strik e fund in advance o f important negotiations. The money received from union lo c a ls as per capita taxes goes to pay the administrative expenses o f the national union, the per capita tax which the national union is obliged to pay to the AFL-CIO ( i f i t is a f f ili a t e d ) , strik e b e n e fits, death ben efits o r other types o f insurance f o r members in some unions, and many other expenses. Moreover, as unions grow older and larger, they tend to accumulate assets in the form o f cash, s e c u r itie s , and real estate (frequently the building housing national headquarters). The 1955 balance sheet o f the Steelworkers, fo r example, lis t e d $3.8 m illion in cash, $12.5 m illion in s e cu r itie s , $2.3 m illion in o f f ic e funds and other receivables, and $1 m illion in fix e d assets (land, b u ild ing, and furniture and fix tu r e s ). Although th is grouping o f assets and the amounts are not necessarily ty p ic a l, they characterize the desire o f many large unions to have cash or readily negotiable (u su ally Government) s e cu ritie s at hand as a cushion against bad time or other contingencies. However, in a large union such as the Steelworkers (with over 1.2 m illion members), r e la tiv e ly small expenditure per member (as in paying nominal strik e b en efits) would quickly deplete available resources. Union Records and Reports The a c t iv it ie s o f a national union cannot be carried on su ccessfu lly without an adequate system o f records. This t y p ic a lly requires an extensive array o f accounts and reports—fin a n cia l, operating, and s t a t is t ic a l. From ceives reports capita taxes. operations and i t s a f filia t e d lo c a l unions, the national union re on the l o c a l 's finan ces, operations, dues, and per Regional o f f ic e r s and organizers submit reports on expenditures. Within the national union i t s e l f , national o ff ic e r s re port on th eir a c t iv it ie s and operations to the executive board, the membership, and the convention. Each national union headquarters, o f n ecessity, keeps records concerning the conduct o f the union's business. In most unions, these records have tended to increase in volume as the size o f the union has increased and as information about the many phases o f the union's a c t iv it ie s has become essen tial to successful opera tion . In many o f the larger unions, recordkeeping requires a large s t a f f o f trained personnel. 1:03 10 The greater part o f the recordkeeping burden f a l l s to the secretary-trea su rer's department. This department usually has the resp on sib ility fo r receiving a l l o f the union income, including dues, in itia tio n fe e s , returns on investment, and other items. It makes a l l disbursements fo r p a y ro ll, donations, purchases o f sup p lie s , maintenance expense, convention expense, and the many other costs incident to operating the union. Modern tabulating equipment is usually needed to keep membership records readily available and up to date, and to make them available fo r use in supplying s t a t is t ic a l data fo r research and union organization. Most unions d istribu te one or more period ic a ls or other p u blica tion s, fin a n cia l reports, e tc .* to th eir mem bership, hence mailing l i s t s must be maintained and kept current. The recording and analysis o f agreements is another type o f recordkeeping many unions find e sse n tia l. These and other data, such as strik e reports, are processed fo r information to union o f f i c i a l s and members, and fo r use in contacts with government agencies. The development o f health, w elfare, and pension plans and supplement ary unemployment ben efit programs has increased the work load o f national union headquarters. Many unions have estab lish ed separate departments to handle problems relatin g to employee ben efit plans. Most unions provide regular fin a n cia l reports to th e ir membership. Labor union accounting has developed without cen tra l ized con trol, hence wide d ifferen ces in these reports are n o tice able. National unions generally arrange fo r annual or semiannual audits o f th eir books by public accountants, both to insure accuracy and as an aid in interpreting fin a n cia l operations. These audit reports frequently include the follow in g: 1. Statement o f assets and l i a b i l i t i e s , including a comparison with previous periods. 2. ments. Statement o f receipts and disburse 3. Comparison o f receipts and disburse ments, by d iv isio n s, se ctio n s, regions, or lo c a ls o f the union. 4. Statements o f per capita tax payments. 5. Analysis o f membership standing by d iv isio n s. 1:03 11 6. Statement o f investments and their a lloca tion to various funds. 7. Statements o f various fund accounts, where applicable. Under the Labor Management Relations (Taft-H artley) Act, a ll unions wishing to use the serv ices o f the National Labor Re lations Board must f i l e a d etailed report with the U. S. Department o f Labor showing, among other things, it s receip ts and disburse ments by type, and i t s assets and l i a b i l i t i e s . This fin a n cia l report must also be furnished to union members. 1:03 1:04 Administration of Local Unions 1 The foundation o f union organization in the United States rests upon the lo ca l unions or " l o c a l s ,” sometimes designated by such tra d ition a l terms as "chapters" o r "lo d g e s ." Almost a l l o f the more than 70,000 lo c a ls in the United States hold a charter from, and are a ffilia t e d with, a national union and are therefore subject to some degree o f authority or control exercised by the central body. However, many fa cto r s , including th eir o r ig in , h is tory , and membership and leadership ch a ra cte ristics, influence the function, scope, and administration o f lo c a l unions. The conduct o f labor-management rela tion s, including c o l le c tiv e bargaining and handling employee grievances, helping unem ployed members fin d work, and assistin g members in getting the maximum protection o f State and Federal le g is la tio n enacted in th eir behalf, constitute the backbone o f lo c a l union a c t iv it ie s . However, additional a c t iv it ie s not so d ire c tly related to the workers’ wel fare on the job are also important aspects o f union l i f e at the lo ca l le v e l. Many o f these a c t iv it ie s are purely s o c ia l in nature— fo r example, providing a place fo r members to congregate, or spon soring recreational a ffa ir s such as dances, p icn ics, or bowling contests. Local unions may also provide special services to mem bers such as leg a l advice, conduct education centers and training sch ools, issue a p e rio d ica l, participate in charitable drives and other community a c t iv it ie s , and engage to some degree in lo c a l p o l it ic s . Although lo ca ls have increased in number and size with the growth o f the trade union movement, leg a l and c o lle c tiv e bar gaining developments o f the past two decades have tended, in some ways, to diminish th eir status. For example, the expansion o f multiplant and multiemployer bargaining, a method o f negotiation which often resu lts in a master agreement covering a number o f lo c a ls , has given each lo c a l involved a smaller v o ice , and some times none, in formulating contract terms fo r it s members. In other ways, t o o , the widening influence o f national unions and th eir regional or industry subdivisions in c o lle c tiv e bargaining has correspondingly reduced the influence o f some lo c a l unions. In certain industries with a high degree o f seasonal or casual employment, union lo ca ls have tra d itio n a lly served as 1 / Certain aspects o f control and administration o f lo c a l unions are discussed in 1:03, Administration o f National Unions. The p osition o f lo c a l unions in the structure o f the trade union movement was covered in 1 :0 2 ,Structure o f the Trade Union Movement. ( 1) 2 employment centers, referrin g members to job openings and, in many cases, maintaining an order o f p r io r ity so as to assure equal op portunity to each unemployed member. However, th is function o f lo c a ls was substan tially weakened by the ban on the closed shop enacted in the Labor Management Relations (Taft-H artley) Act o f 1947. Many lo c a ls continue to a ssist unemployed members in finding jo b s , but an employer need not, as a ru le, hire union members only. On the other hand, the development and spread o f check o f f provisions in union agreements, whereby the employer agrees to deduct union dues and assessments from members* pay (u su ally upon w ritten authorization from each member) and regularly to transmit the amount to the lo c a l, strengthened the fin an cial p osition o f the lo ca ls involved. This p ractice has also freed lo c a l union o ff ic e r s and s t a f f from the time-consuming job o f s o lic it in g mem bers fo r dues. Because lo c a l unions vary greatly in terms o f s iz e , ju r is d ic tio n , autonomy, and fu nctions, th e ir problems and methods o f administration and government also d iffe r considerably. For example, large lo c a ls o f s k ille d craftsmen in the printing and con stru ction in du stries, which negotiate and administer an agreement with many employers in an area, and enforce a number o f shop rules that are part o f th eir constitu tions and bylaws, n ecessarily handle th eir a ffa ir s in a d ifferen t manner than an equally large lo c a l in a mass-production industry covered by terms o f a multiplant agree ment. However, lo c a ls have some administration features in common. These are discussed below. Constitutions and Bylaws The con stitu tion or bylaws under which lo c a l unions operate are generally formulated by the lo c a ls , subject to the ap proval o f the national organization to which they are a f filia t e d . Frequently, the con stitu tion opens with a preamble which stresses, in recognition o f the aims o f many lo c a ls , the s o cia l as well as the economic purposes o f the union. The con stitu tion com monly defines the ju r is d ic tio n o f the union, the duties and powers o f o f f i c e r s , the q u a lifica tio n s fo r holding o f f i c e , the composition o f the executive board and i t s du ties, frequency o f membership meetings, dues, d isc ip lin e procedures, and rules o f order. Depend ing on the type o f lo c a l, the con stitu tion may also cover such issues as travelin g cards ( i . e . , right o f workers to transfer from one lo c a l to another), sick and death b e n e fits, duties o f shop chairmen (stew ards), and rules applying to the work and workplaces o f the l o c a l 's members. The booklets containing the constitu tions 1:04 3 and bylaws that the lo c a ls print fo r d istrib u tion to members range in size from le ss than’ 10 pages to more than 50, a f a ir ly rough in dication o f the wide d ifferen ces among lo ca l unions in the scope o f th eir a c t iv it ie s . Union O fficers Local unions follow a more or less standard pattern so far as t i t l e s and duties o f o ff ic e r s are concerned. Usually, there are a president and secretary-treasurer, and, unless the lo c a l is very small, a sergeant-at-arm s, tru stees, and members o f an execu tive board. Business agents, key figu res in many lo ca l unions, are generally elected annually and are paid regular sa la rie s. Shop stewards, who act as union representatives in workplaces, are not generally regarded as o f f ic e r s . The c h ie f o ff ic e r s o f many lo c a ls , pa rticu larly the smaller ones, are not fu ll-tim e administrators; rather, they con tinue to work at th eir trades, serving the union during th eir o f f hours. In many lo c a ls , only the secretary-treasurer receives regular pay fo r his work. Other o ff ic e r s may be paid fo r attend ance at meetings o f the entire union membership or o f the executive board. A ll o ffic e r s are usually e lected by the membership. Local union o f f i c i a l s who continue to work in the plant and who represent and act fo r the union in the plant may be ac corded, by the c o lle c tiv e bargaining agreement, certain p riv ile g e s or ben efits that they might not otherwise have. For example, they frequently enjoy sp ecia l protection in the event o f la y o ffs , which their se n io rity standing alone may not m erit, in order to provide uninterrupted representation fo r the remaining workers. Many agreements also provide that the employer pays the union represen ta tiv e s, in whole or in part, fo r the time they spend on union business, such as grievance settlem ent, safety committee work, and the l i k e , during working hours. Union Meetings In constitu tional terms, the lo c a l union meeting is the sovereign body in the management o f the l o c a l 's a ffa ir s . Just as the union convention exercises authority over the national or in te r national union, so the lo c a l meeting e le c ts o f f ic e r s , determines p o lic y , and sets up rules o f government fo r the membership. Meet ings are usually held once a month, unless special business necessi tates that they be held more ofte n . 1:04 4 In p ra ctice, a large part o f the union meeting’ s power is reserved fo r extraordinary developments. Over the years, prob lems o f day-to-day administration have tended to center in the hands o f o f f i c i a l s . Attendance at union meetings, fo r example, is ty p ic a lly low. Meetings frequently are attended only by a group o f regular pa rticipa n ts, including the lo c a l leaders, a few "one time" or occasional attendants, and members with a grievance or problem to bring to the union's attention. However, when subjects o f major importance, such as e le c tio n o f o f f i c e r s , contract negotia tio n s, strik e votes, or changes in dues are to be brought before the meeting, a much larger attendance is assured. E fforts on the part o f many lo c a l unions to increase mem ber p a rticip a tion through attendance at meetings have not been con spicuously su ccessfu l. One method that some unions have adopted is fin in g members Who f a i l to attend. In some instances, several meetings, arranged fo r d iffe re n t times o f the day or evening, or at d iffe re n t lo ca tio n s, are held to encourage member in terest or to act upon important p o licy matters. Despite attendance problems, the lo ca l union meeting s t i l l has a' d e fin ite function to perform in union a ffa ir s . It serves to bring membership d is s a tis fa c tio n to the attention o f the o f f ic e r s and, in turn, gives the o ff ic e r s a means o f communication with the rank and f i l e , thereby supplementing the day-to-day con ta cts within the shops. The meeting is also a time fo r d ecision making and fo r demonstrating the common purpose fo r which workers are organized. It is sometimes the only occasion at which o f f ic e r s and members get together outside o f the company environment to d is cuss mutual in terests and problems. International unions are fu lly aware o f the pa rticip a tion problems facing lo c a l unions and make e ffo r t s to aid them to at tra ct members to meetings. B ulletins on the conduct o f lo c a l union meetings are widely circu la ted . Posters, meeting aids such as publications or motion p ictu re s, and even personal assistance may be provided. Membership Rules and Union D iscip lin e Nearly every union has established rules to regulate the rights and duties o f workers within the union and to prescribe th e ir conduct while on the jo b . For example, a member may v io la te union rules by working fo r less than the wage scale prescribed by the union; by working overtime without permission or at le s s than the overtime rate; by defaulting on his dues; by crossing a picket lin e ; by fig h tin g on the jo b ; or by fa ilin g to carry out his work properly 1»04 5 or otherwise acting in a manner unbecoming a union member. V iola tions o f these rules may subject the member to union d is c ip lin e . Certain procedures and penalties are generally set up to compel obedience or impose punishment i f members are charged and found g u ilty o f v iola tin g established ru les. Generally, charges must be f i l e d in w riting, signed by the complaining member or members. A copy o f the charges must be presented to the accused member. The charges are generally referred to a t r i a l committee which holds hearings. I f the committee sustains the charges, the penalty may be fix ed by the lo c a l in a secret b a llo t. A two-thirds m ajority is commonly required fo r any severe punishment, such as suspension from the union. Action taken at the lo c a l le v e l may be only the f i r s t step in the t r i a l procedure. Members ord in arily have the right to appeal to higher bodies in the union organization, and, in most unions, to the national convention i f the penalty is sustained by lesser union bodies. Members generally are aware o f , or are in formed o f , th eir righ ts, and appeals are not too d i f f i c u l t . In p ra ctice, a s u ffic ie n t number o f penalties are reversed or modi fie d on appeal to make the step desirable fo r the wrongly accused worker. 2 / International o ff ic e r s in most unions have the power to step in and take over the a ffa ir s o f the lo c a l i f there is any indication or suspicion o f irregular action on the part o f the lo c a l o ff ic e r s or the lo c a l as a whole, or o f secession or rev olt. Actions by lo ca ls ca llin g fo r intervention may include fin a n cia l irreg u la rity ; fa ilu re to handle agreement procedures properly; strik in g without approval; to le ra tio n o f racketeering; internal c o n flic t to the detriment o f the union; or other fa ilu re to con duct union a ffa irs properly. The international union's d irect control usually ends then the causes o f intervention are removed. Union Dues and Finances Union a c t iv it ie s must be financed and union administra tors must be paid. The primary source o f income is the membership, mainly through in itia tio n fees and dues. Other less important sources o f funds include assessments, reinstatement fe e s , and in come from investments. 2/ ch. IV. See P hilip T aft, Structure and Government o f Labor Unions, 1:04 6 In each lo c a l, membership dues are used to pay adminis tra tive costs or strik e b en e fits, and to build up the union’ s fin a n cia l strength against emergencies. In addition, in some unions, a portion o f the dues goes to pay fo r sickness, old -age, and unemployment b e n e fits, or other insurance carried by the union, or to provide services not d ire c tly related to basic union operation. No information is available on average dues paid by union members. Dues le v e ls vary from less than $1 a month to more than $6; probably the range o f $2 to $4 would include most lo c a ls . National unions generally exercise some ju r is d ic tio n over the amount o f dues to be charged by th eir a ffilia t e d lo c a ls . A fix ed amount, or maximum or minimum lim its , or both, may be pre scribed. In some cases, a range or a slid in g scale o f dues is pro vided in national con stitu tion s, to allow fo r variations in dues structure among lo ca ls because o f differen ces in occupational s k i l l , sex, and coverage under union-financed ben efit programs. In any case, the per capita tax payable to the national union generally places an e ffe c t iv e lower lim it on lo c a l dues. This per capita tax is the amount a lo ca l union remits each month fo r each member to the national with which i t is a f filia t e d . 3 / The amounts charged by the unions fo r admission to mem bership also vary widely, ranging from a nominal charge o f $1 to $100 or more. High in itia tio n fees have, on occasion, been used as a deterrent to new workers desirous o f entering a trade. In recent years, however, in it ia t io n fees have more generally been con sidered as an item o f revenue, r e fle c tin g the union’ s desire to o ffs e t a portion o f the costs incurred over the years in building the lo c a l. A strong deterrent to high admission charges is found in the Labor Management Relations (T aft-H artley) Act o f 1947 which provides that the levying o f excessive or discrim inatory in itia tio n fees sh a ll be punishable as an unfair labor p ra ctice. Assessments are sometimes levied by the union to provide funds fo r extraordinary expenditures, such as strike aid, organiz ing, le g is la tiv e purposes, or financing a convention or special b en efits. These assessments usually must be approved by the mem bership, although in some instances they can be in itia te d by the executive body o f the union. Assessments may generally be levied at eith er the lo c a l or national union le v e l. The national union often exercises some con trol over the frequency and amount o f lo c a l assessments. 3/ U04 See 1:03, Administration o f National Unions. 7 The c o lle c tio n o f money from the members, and the need fo r providing information about how i t is spent, makes some sort o f accounting record essential fo r every lo c a l union. Records o f lo c a l unions are generally geared to those o f the national unions with which they are a f filia t e d . Whether the lo c a l is a large one, with an extensive accounting system, or a small one with rudimen tary records, i t usually must provide the national with a d etailed monthly report o f income and expense, and must remit i t s per capita payments. Moreover, compliance with the Taft-H artley Act requires a degree o f fin a n cia l disclosu re to members. Along with other nonprofit association s, labor unions are exempt from the Federal income tax but are required to f i l e an annual return covering receipts and expenditures and assets and l i a b i l i t i e s . 1:04 1:05 The Unionization of White-Collar Workers W hite-collar workers, the fa ste st growing segment o f the labor fo r c e , remain the largest group o f workers outside o f the American trade union movement. It is estimated that, in 1956, trade unions had enrolled only about one-sixth o f the 15 m illion nonsupervisory w h ite-colla r (s a la rie d ) employees in the United States, prim arily in such f ie ld s as railroadin g, communications, gas and e le c t r ic u t i l i t i e s , entertainment, and the postal service. W hite-collar (s a la r ie d ) workers can be c la s s ifie d into three broad categories: 1. P rofessional, sem iprofessional, and technical workers, who numbered about 4-1/4 m illion in the 1950 census. This group in cludes salaried a rch itects, accountants, chem i s t s , engineers, teachers, nurses, and various other s p e c ia lis ts and technical personnel. Many are employed in administrative jobs. 2. C le rica l and kindred workers, approxi mately 6 -3/4 m illion , are by fa r the largest group in the w h ite-colla r work fo r c e . Secre ta r ie s , ty p is ts , f i l e clerk s, business-machine operators, and related occupations are found in th is category. 3. Sales workers, about 3.5 m illion , who s e l l goods and services to other business o r ganizations and to the consumer. In proportion to other groups, w h ite-colla r occupations have grown tremendously since the f i r s t decade o f th is century. In 1910, p rofession a l, c le r ic a l, and sales personnel accounted fo r 15 percent o f the to ta l labor fo r c e , and, in 1950, 27 percent. The c le r ic a l group has grown fa s t e s t , follow ed by the profession al and technical group. The more rapid growth o f the w h ite-colla r groups—or the "new m iddle-class” as they are frequently referred to in current lite r a tu r e —can be attributed to the vast organizational and tech n ological changes which have reshaped the American business scene. In trica te production methods have led to greater reliance on trained profession al and technical personnel. A greater amount o f planning, scheduling, and con trol operations within industry has required an increasing number o f c le r ic a l workers, as have many new or expanded a c t iv it ie s o f Pederal, State, and lo c a l governments. ( 1) 2 Whether th is rapid rate o f growth w ill continue has re cently been questioned. The spreading u t iliz a tio n o f e le ctro n ic data-processing machines and the in sta lla tio n o f vending machines and s e lf-s e r v ic e techniques in stores are among the current fa ctors which may a ffe ct the future composition and size o f the w h ite-colla r fo r c e . The Right to Organize Freedom o f association is a fundamental right guaranteed by the Constitution o f the United States. The right o f employees to form and jo in labor organizations is encompassed within the con cept o f freedom o f association . Further protection o f this right is provided to v ir tu a lly a l l workers in the United S tates, in clu ding p rofession al, c le r ic a l, and sales workers, by Federal le g is la tio n . The re la tiv e ly few types o f workers ( e . g . , supervisors, government workers, farm workers, domestic servants) who are not given the right to use the sp ecia l procedures established under Federal laws nevertheless retain their general right under the Constitution. The most important Federal law dealing with the right to organize is the National Labor Relations Act, as amended by the Taft-H artley Act o f 1947. This law extends to a l l categories o f workers under it s ju r is d ic tio n , manual or nonmanual, sp ecial le g is la tiv e protection o f the right to organize and to bargain c o lle c t iv e ly , or to refrain from such a c t iv it ie s . Under th is law, how ever, the in clusion o f profession al employees in a bargaining unit with nonprofessionals is perm issible only i f a majority o f the pro fession a l workers vote fo r inclusion in such a bargaining unit. Otherwise, profession al employees are e n title d to a separate bar gaining unit. Although i t is not ille g a l fo r supervisors to form unions and bargain c o lle c t iv e ly , i f they so desire, they are not given the special protection o f this Federal a ct. The exclusion o f super visors from the act r e fle c ts a view that they are e sse n tia lly repre sentatives o f the employer. Thus, although the law does not pro h ib it companies from recognizing unions o f supervisors and making agreements with them, i t does not require them to do so. As fo r employees o f the Federal Government, the LloydLaFollette Act o f 1912 is regarded as a general expression o f con gressional sentiment in favor o f the right o f government employees to organize without in terferen ce. However, extensive and f u l l fledged c o lle c tiv e bargaining as usually practiced in private in dustry, covering such matters as wages and hours o f work, reduction ists 3 in -fo r ce procedures, and retirement b e n e fits, has not, fo r a variety o f reasons, been considered fe a sib le fo r most Government agencies. But organizations o f Federal employees s t i l l have a role to play. Where a Government agency i t s e l f has the authority to establish the wages o f i t s employees, there is some pa rticip a tion by the employees and th eir representatives in the wage fix in g pro cess. This pa rticip a tion ranges from individual to formal union representation before agency wage boards and the C iv il Service Com mission. Where the wages o f Government employees are determined through the le g is la tiv e process rather than by the Government agency employing the worker, i t i s not p o ssib le , as a p ra ctica l matter, fo r trade unions to participate so d ire c tly in the wage fix in g process. Even here, however, representatives o f Government workers' unions are fr e e , as are other c itiz e n s , to promote le g is la tio n dealing with wages, c i v i l serv ice, and other laws a ffe ctin g conditions o f employment, to participate in public hearings held by le g is la tiv e committees on such matters, and to be heard in the press and other communications media. Their organization and numerical strength are fa cto rs which give weight to programs they promote fo r the benefit o f th eir members. Agency heads may also consult with em ployee unions regarding personnel p ra ctice s, grievances, and work ing conditions. Unions also serve as channels o f communication and discussion, and in th is fashion contribute to employee morale and to improved public administration. The Taft-H artley Act prohibits strik es in the Federal serv ice. In addition, recognizing the need fo r uninterrupted serv ice to the p u b lic , v irtu a lly a l l Federal employee organizations have written "no strik e" clauses into th eir con stitu tion s. They have done so volu n tarily because, as one union leader put i t , the strik e question has "never fo r a moment . . . been a liv e subject" in the Federal serv ice. State, county, and municipal governments in the United States are free to develop th eir own systems o f labor rela tion s, which may d iffe r from Federal p ra ctices; some nonfederal government units have negotiated c o lle c tiv e bargaining agreements. Extent o f Unionization in Private Industry Out o f a union poten tial o f approximately 15 m illion workers, about on e-sixth , or 2.5 m illion salaried employees, were union members in 1956. Many unions organize both manual and nonmanual workers in a variety o f industries. For ihstance, the Re t a i l , Wholesale and Department Store Union has organized not only w h ite-collar workers in r e ta il and wholesale establishments, but also manual workers in lig h t manufacturing industries. The Team s te r s , though predominantly a union o f drivers and warehousemen, 1:05 4 includes among it s members public employees and o f f ic e c le r ic a l workers. Professional and Technical Employees. —The extent o f unionization among engineers, s c ie n tis ts , a rch itects, and draftsmen is small. Of the approximately 850,000 employees in these fie ld s , not more than 60,000 are organized. Of these, the u n a ffilia te d Engineers and S cien tists o f America claims 42,000 and the American Federation o f Technical Engineers (AFL-CIO), 12,000. Several thou sand engineers and other technical personnel are represented by industrial unions or by several lo c a l independent organizations. A high degree o f unionization, however, is the pattern in the entertainment industry. The American Federation o f Musicians, with a membership o f more than 250,000, and the Associated Actors and A rtistes (38,000) represent the vast majority o f performing a r tis ts in th is country. The newspaper and related industries employ a sizeable number o f union members. About 29,000 w h ite-colla r workers are members o f the American Newspaper Guild (AFL-CIO). In addition to editors and reporters, the Guild has among it s members o f f i c e em ployees in the advertising, circu la tio n , and business departments o f newspapers. Another profession al group with a high degree o f organi zation are w riters fo r stage, screen, radio, and te le v is io n . The Writers Guild o f America (I n d .), has a membership o f 2,400. O ffic e C le r ic a l. —The number o f unionized o f f i c e c le r ic a l employees in nongovernmental employment has been estimated at ap proximately 600,000, o r 14 percent o f the estimated 4.3 m illion union p oten tia l in th is segment o f the labor fo r c e . This ov e ra ll fig u re , however, hides sig n ifica n t interindustry d iffe re n ce s. For instance, a large proportion o f the c le r ic a l work force in the railroad industry are members o f the Brotherhood o f Railway and Steamship Clerks, Freight Handlers, Express and Station Employees. In the communications industry, the Communications Workers o f America and several u n a ffilia te d labor organizations bargain fo r large numbers o f o f f i c e workers employed by telephone companies. Other sectors o f the communications industry are organized by the Commercial Telegraphers* Union and by the Order o f Railroad Telegraphers. On the other hand, in the s o -ca lle d w h ite-colla r indus tr ie s such as banking, insurance, and real e s ta te , the extent o f unionization is n e g lig ib le . Although some insurance agents are mem bers o f unions, few c le r ic a l workers in insurance companies are members. 1:05 5 In manufacturing, more than 250,000 o f the 1.6 m illion c le r ic a l employees are estimated to have joined unions. In th is area, unions o f wage earners, notably the United Automobile Work e rs, the United Steelworkers, and the International Union o f Elec t r ic a l Workers, have enrolled substantial numbers o f salaried workers. Sales Employees. —Of the approximately 3.5 m illion sales employees, about a h a lf m illion are believed to be organized. Union strength is centered in the r e t a il f i e ld in major eastern and western c i t i e s , prim arily in department stores and grocery chains. More than h a lf (300,000) are members o f the R etail Clerks International A ssociation. The Amalgamated Meat Cutters is repre sented in food stores where, in addition to butchers, it has some times organized a l l store employees. Union membership among insurance agents approaches the 30.000 mark, prim arily in the in dustrial l i f e insurance f i e l d . Since there are about 250,000 agents in th is country, these figures indicate that most agents have not join ed labor organizations. Government. —In the Federal Government, Post O ffice employees are the most highly organized group. There are about 500.000 Post O ffic e employees, or about 20 percent o f a l l Federal personnel. The vast m ajority are members o f AFL-CIO a f f ili a t e s and several u n a ffilia te d unions. Major unions are: National A ssociation o f Letter Carriers (108,000 members); National Federa tion o f Post O ffic e Clerks (9 7,00 0); National Rural Letter Car r ie r s ' A ssociation (3 6 ,0 0 0 ); and the National Postal Transport A ssociation (2 7,00 0). Employees in supervisory grades are repre sented by the National A ssociation o f Postal Supervisors (20,000) and the National League o f Postmasters o f the United States (26,000). The overwhelming majority o f the more than 1 m illion c le r ic a l and profession al Federal employees are not union -members. The two major unions in th is area— the Americal Federation o f Government Employees and the independent National Federation o f Federal Employees—have a combined membership o f about 160,000. Adding the membership o f several small u n a ffilia te d unions, i t is unlikely that more than 20 percent o f Federal w h ite-collar workers belong to employee organizations. Of the more than 5 m illion employees in nonfederal public employment, fewer than 10 percent are believed to be organized. The largest union is the American Federation o f State, County, and Municipal Employees. In 1956, the Government and Civic Employees 1:05 6 Organizing Committee merged with the AFSCME, bringing the to ta l membership o f the combined unions to about 150,000. Only a small fra ctio n o f the 1,200,000 school teachers are a f filia t e d with the American Federation o f Teachers. Union ization among public s o c ia l workers is also the exception. Problems in White-Collar Unionization The question is often asked: Why has the unionization o f w h ite-colla r workers lagged behind that o f in dustrial workers in the United States? Unions, employers, s o c io lo g is t s , and others have suggested diverse reasons fo r this development, some o f which are mentioned below. For part o f the answer, i t seems necessary to consider the nature o f w h ite-colla r work and certain attitudes and motiva tion s which are often attributed, in a general way, to w h ite-collar workers. The duties and functions o f o f f i c e occupations are de signed to carry out administrative and technical decision s o f management. The daily tasks o f o f f ic e workers, it is claimed, bring them in close contact with management and lead to a stronger id e n tific a tio n with company views and p o lic ie s than may be the case fo r plant workers. This may act as a deterrent to unionization. Many w h ite-colla r workers, it is suggested, have an aver sion to being grouped with b lu e -co lla r workers. This fe e lin g on the part o f w h ite-colla r workers may rest on claims o f superior education, th e ir m iddle-class backgrounds, and pride in outward symbols o f status—a white c o lla r , well-appointed places o f work, telephones on the desks, e t c . Many o f f i c e employees also believe that they can more e ffe c t iv e ly forge ahead on individual m erit— rather than by c o lle c tiv e action—and ultim ately reach a top p o si tion in business. Many business spokesmen claim that management has de veloped a program designed to retain the lo y a ltie s o f th eir whitec o lla r employees, has learned to communicate e ffe c t iv e ly with whitec o lla r workers, and has improved personnel p o lic ie s in order to retain the undivided allegiance o f th is group. Additional reasons which, i t is argued, have retarded the unionization o f w h ite-colla r workers are (1 ) the great number o f women in th is group and (2 ) the existence o f many small o f f ic e s . Many women consider their employment as temporary. Workers in small units are usually d i f f ic u l t and co stlv to organize. 1:05 7 However, i t is also claimed that the in a b ility to o r ganize salaried workers in large numbers rests in no small measure with the labor movement. During the 1930’ s and 1940’ s, union organizing drives concentrated on manual workers in manufacturing, construction, and transportation. Thus, unions have not always been available to professional and c le r ic a l workers. Moreover, • where unions have attempted to e n ro ll w h ite-colla r employees, th eir techniques were sometimes unsuited—a m isapplication o f methods used to organize plant workers. Ju risd iction al c o n flic t s between unions may also have been a contributing fa c to r . Special problems have lim ited the unionization o f two large groups o f w h ite-colla r workers—profession al and government employees. Many p rofession als, notably engineers and chemists, have raised the question whether union membership can be reconciled with professional standing. Some profession al s o c ie tie s fe e l that union membership is not compatible with a profession al code o f eth ics (including the concept o f con fid en tia l relationships between the profession al and his c lie n t or employer), and they have opposed trade union a c t iv it ie s among th eir members. This point o f view is r e fle c te d , in part, in the Taft-H artley Act which proh ibits the in clusion o f profession als in a bargaining unit with production workers unless a m ajority o f profession al employees desire such in clu sion . In public employment, because o f the nature o f the employer-employee relation sh ip, unique problems arise which have an e ffe c t on union membership. The follow in g statement by Presi dent Franklin D. Roosevelt in 1937 sums up the Government’ s p o sitio n : * A ll government employees should realize that the process o f c o lle c tiv e bargaining, as usually understood, cannot be transplanted into the public serv ice. It has i t s d istin ct and insurmountable lim itations when applied to public personnel management. The very nature and purposes o f government make it impossible fo r administrative o f f i c i a l s to represent fu lly or to bind the employer in mutual discussion with government employee organizations. As matters now stand, Federal employees have the right to form unions but agency heads are not required to recognize or to bargain with them. 1:05 8 Factors A ffectin g Future Organization The point o f view which foresees greater unionization o f w h ite-colla r workers in the future may be summarized as fo llo w s: 1. In recent years, labor unions have operated and grown under a favorable le g a l and p o lit ic a l clim ate. Organized labor has attained a p osition o f importance not only in industrial matters but also in p o lit ic a l and community a ffa ir s . Labor leaders can now be found on the boards o f co lle g e s and c iv ic organizations. The views o f prominent union o f f i c i a l s are re ported in leading newspapers and magazines. In short, unions have become s o c ia lly acceptable. 2. Many w h ite -co lla r workers now have more personal contact with union members and frequently liv e in communities where union mem bers predominate. They are thus better ac quainted with the o b je c tiv e s , accomplishments, and status o f unions and the thought o f jo in ing may become more attra ctive to them. 3. Unions are also counting on economic fa ctors to bring salaried workers into the fo ld . They lay great stress on the claim that d ifferen ces in incomes between c le r ic a l workers and plant workers have been diminishing, and that many o f the supplementary benefits (e . g . , paid vacations) which c le r ic a l workers have tra d itio n a lly enjoyed are now available to the wage earner. 4. A c lo s e ly related fa cto r is the matter o f job secu rity. It is claimed that th is has come to occupy the minds o f c le r ic a l workers more and more as automation has entered the o f f i c e . W ill the in s ta lla tio n o f giant e le c tron ic computers lead to lo ss o f jobs? Some believe that the fear o f displacement by ma chines w ill make o f f ic e workers more susceptible to unionization. Union spokesmen are quick to claim that provisions fo r job secu rity , namely, sen iority and transfer righ ts, or opportunities fo r retraining, are meaningful only when they are spelled out in a c o lle c tiv e bargaining contract. 1:05 9 5. Unions now attempt to present unionism in terms which appeal to a salaried worker's outlook. For example, the grievance committee is often ca lle d the o f f i c e relation s committee. Some unions have used a career-centered approach by settin g up workshops to prepare employees fo r better paying job s. 6. Greater unionization in the future may also result from e ffo r t s o f fa ctory unions to e n ro ll salaried employees in their particular industries. Such unions enter the f i e l d with a knowledge o f wages and working conditions in that particular industry or company; at the same time, these in dustrial o f f i c e employees are fam iliar with the union's a c t iv it ie s in c o lle c tiv e bargaining fo r manual employees. 7. I t is also necessary to take into account the recent AFL-CIO merger. The an nounced goal o f the merged Federation is to "organize the unorganized" including the whitec o lla r groups. Greater fin a n cia l resources and more organizers.may become available. Ju ris d ictio n a l disputes and other interunion r iv a l r ie s , which in the past may have thwarted o r ganization, may be overcome more readily. C ollective Bargaining Provisions fo r White-Collar Employees No recent studies are available which are lim ited to w h ite-colla r agreements or which compare such agreements with those fo r production workers. To illu s t r a te some o f the contract simi la r it ie s or d ifferen ces between these two occupational groups, a major c le r ic a l workers' agreement is compared with one fo r produc tion workers negotiated by the same company and union. The nego tia tin g parties were a large metalworking company and one o f the major in dustrial unions. Both contracts went into e ffe c t in August 1956, provide fo r deferred wage increases in 1957 and 1958, and are due to expire in June 1959. Highlights o f the major sections o f the two agreements, th eir s im ila ritie s and d ifferen ces are b r ie fly discussed below. The "scope o f the agreement" clause defines the various categories o f workers included (o r excluded) in the bargaining unit. 1:05 10 In the contract fo r plant workers, a l l production and maintenance job s, as well as hourly rated nonconfidential plant c le r ic a l jobs are covered. The w h ite-collar agreement represents a l l salaried c le r ic a l and technical employees, with the exception o f the fo llo w ing categories: Supervisory and administrative employees, pro fe s s io n a ls , and employees in con fiden tial and other jobs d ire c tly associated with management. Among the jobs in the last group are students, technical apprentices or management trainees, cost and methods analysts, secreta ries, management payroll clerk s, and t e le phone and teletype operators. As required by the Taft-Hartley Act, watchmen and guards are excluded from both bargaining un its. The type o f union-security clause is id en tical in the two agreements and provides fo r the union shop. Procedures fo r the settlement o f grievances, defined as complaints which involve the interpretation and application o f or compliance with the con tra ct, are v irtu a lly id en tical fo r plant and o f f i c e workers. Slight d ifferen ces between the two agreements occur in the section on rates o f pay, but these are due to the method o f compensation. The salaried contract does not, as can be expected, contain any references to piecework or other incentive plans. In both contracts, however, provision is made fo r hourly d iffe r e n tia ls o f 6 and 9 cents, resp ectively, fo r work on the second and third s h ift s ; Sunday premium payments at one and one-tenth the employees* regular rate o f pay; and a semiannual c o s t -o f-liv in g adjustment. The agreement sections specifying hours o f work provide— although in terminology to r e fle c t differences in operations—a normal 40-hour workweek, to be scheduled on 5 successive days. A reporting or c a ll-in allowance is found in the plant agreement only. Paid jury duty leave is granted to both groups. However, hourly workers receive only the d ifferen ce between the fees paid fo r jury service and th eir average straight-tim e hourly earnings fo r an 8-hour day, whereas salaried workers are permitted to retain such fees in addition to th eir salary. Overtime pay at time and a h a lf a fter 40 hours a week or 8 hours a day is a feature o f both agreements. Seven holidays are observed without loss o f pay, and work on these days is compensated at double time fo r both plant and o f f i c e workers. The vacation provisions fo r salaried employees are more lib e r a l than those fo r hourly workers. For instance, o f f ic e workers are en title d to 1 week’ s vacation a fte r 6 months* serv ice; lt05 11 fo r plant workers, the service requirement is 1 year. Production workers have to be employed fo r 5 years to qu alify fo r 2 weeks* vacation; c le r ic a l workers earn such leave a fte r 1 year. A maximum o f 3 weeks* vacation is s p e cifie d fo r both groups—fo r c le r ic a l workers a fte r 12 years, and fo r plant workers a fte r 15 years o f employment. L ength-of-service rights in la y o ff, r e c a ll, and promotion are, in both agreements, q u a lifie d by two requirements: (1 ) A b ility to perform the work and (2) physical fitn e s s . Only where these q u a lifica tion s o f competing employees are re la tiv e ly equal is sen iority the determining fa cto r . Both contracts provide fo r severance payments to workers who lose their jobs because o f plant or departmental shutdowns, and fo r supplementary unemployment ben efits to workers who are la id o f f . A clause on automation is lim ited to the c le r ic a l agree ment and reads as follow s: When the in sta lla tio n o f mechanical or electron ic equipment w ill have an e ffe c t on the job status o f employees, management sh all re view the matter with the lo ca l union grievance committee in advance o f such in s ta lla tio n . In the event such mechanical or ele ctro n ic equipment is in s ta lle d , management sh all pro vide reasonable training arrangements fo r the employees a ffe cte d by such in s ta lla tio n in order that such employees may have an opportunity to become q u a lifie d fo r available jo b s. A very b r ie f section dealing with employee safety is in cluded in the c le r ic a l agreement. It states that the company w ill "continue to make reasonable provisions" and, where needed, in s ta ll proper heating, lig h tin g , and v en tila tin g systems. By contrast, the plant agreement established jo in t safety committees, requires the company to furnish special wearing apparel and other protective de v ic e s , and sp e lls out the procedure to be follow ed in s e ttlin g d is putes in th is area. Payment to employees on sick leave is an exclusive feature o f the w h ite-colla r agreement. To an o f f i c e worker who submits reasonable evidence o f d is a b ilit y , salary payments are continued fo r from 1 to 13 biweekly pay periods, depending on length o f s e rv ice . 1:05 12 Workmen's compensation b e n e fits, where applicable, are deducted from these payments. However, hourly employees are covered by a sickness and accident insurance plan which provides up to 26 weekly payments fo r any one d is a b ilit y . Identical pension, h o sp ita l, and surgical plans are pro vided fo r in separate agreements. L ife insurance payments d iffe r according to earnings le v e ls . 1:05 1:06 Workers’ Education Workers* education (as the term is used in this chapter) attempts to f u l f i l l the educational needs o f workers which arise from their membership in a trade union. That i s , it s function is to provide in stru ction designed to help union members toward a better understanding o f , and closer and more e ffe c tiv e p a rticip a tio n in , th eir union, th eir community, and the so cie ty in which they liv e , and to train potential union leaders. This concept o f workers* education does not include fo r mal courses taken fo r sch ola stic cred it in recognized educational in stitu tio n s, training fo r a vocation or trade, or adult education p rojects open to the general pu blic. Basic free education, which is compulsory in the United States fo r young people and is generally available to adult immigrants, i s , o f course, the foundation upon which workers' educational programs are based. In th is framework, the scope and methods o f workers' education vary from time to time and from place to place. However, workers' education in the United States does not aim at fundamental changes in the economic and s o cia l order as is the case in certain other countries. With r e la tiv e ly infrequent and sh ort-liv ed excep tio n s, workers and th eir organizations have accepted the dominant p o lit ic a l and economic philosophies which have developed in th is country and have planned th eir educational programs to increase th eir a b ility to deal with existin g r e a litie s at home and abroad. The educational needs o f union members generally vary according to th eir p osition in the union and the community in which they liv e . Obviously, union o ff ic e r s and representatives need more highly sp ecialized training than rank-and-file members. For ex ample, in connection with understanding the c o lle c tiv e bargaining contract, which is an important element o f most workers* educa tion a l programs, union o ff ic e r s and representatives need to learn more about contract preparation, negotiation and in terpretation, the legal aspects o f the various clauses, grievance procedures and arbitration , and the fin a n cia l in tr ic a c ie s o f special provisions such as those dealing with health, w elfare, and pension plans. On the other hand, the union member may want to know what the contract means to him in terms o f wages, hours, and working conditions, and what secu rity he and his family can derive from i t . The training o f members q u a lifie d to carry on the work o f the union is an important part o f workers' education. David Dubinsky, president o f the International Ladies' Garment Workers* Union and a leading advocate o f workers' education, expressed the needs o f the labor movement in these terms: "Labor leadership is no longer a hit-or-m iss avocation at which anyone with some ( 1) 2 q u a lifica tion s can become a success. The fe e lin g in the world o f organized labor is growing ever stronger that, ju st as the young lawyer and doctor spend years o f e ffo r t to attain a career, so should the young man or woman, eager fo r a career in the trade union movement, be ready to s a c r ific e time and energy fo r the required preparation.” Although worker in terest in education as a community resp on sib ility is almost as old as the labor movement i t s e l f , o r ganized e ffo r t in workers' education as a part o f union a c tiv ity is o f comparatively recent o r ig in . P rincipal developments in the f i e l d date from the end o f World War I , when the 1918 American Federation o f Labor convention set up a committee to study workers* education. In the follow in g year, the Federation decided to spon sor workers' education as an integral part o f the labor movement. The Workers* Education Bureau was established in 1921 to promote and serve the in terests o f workers' education. In 1923, by con vention action , i t was approved as the formal educational arm o f the AFL, although maintaining operating autonomy. In 1924, the AFL convention recommended that it s a f f ili a t e s provide fin a n cia l support to the Bureau on a per capita basis. Over the years, AFL support increased and, in 1950, the AFL convention voted to take over the Workers* Education Bureau e n tire ly and integrate it into it s o f f i c ia l structure as the AFL Department o f Education. The establishment o f resident labor c o lle g e s , o ffe rin g a f u l l curriculum o f la bor-related courses, was another method o f worker education which came into prominence soon a fte r World War I . However, much o f the need fo r such in stitu tio n s was eliminated when unions and recognized colleg es took over the teaching o f subjects o f interest to workers. The " l e f t i s t " tendencies o f certain schools also threw th is phase o f worker education into disrepute and hastened it s d eclin e. At d iffe re n t times, Federal, State, and lo c a l government agencies also have had an impact on workers' education, p rin cip a lly during the depression o f the early t h ir t ie s , when an Emergency Edu cation Program was set up to provide jobs fo r unemployed teachers, financed by funds fo r adult education under the Federal Works Pro gress Administration. In addition, a number o f private groups have offered general and sp ecia lized educational services fo r union members. Within the trade unions, workers' education is steadily growing in importance. In October 1956, John D. Connors, Director o f the Department o f Education, AFL-CIO, stated: 1:06 3 Only a dozen years ago, not a single State federation o f labor or State in du strial union council had an education department. Today, 19 State central organizations have education d irectors. Twelve years ago, only a handful o f the national and international unions had education d ire cto rs. Today, fu lly one-half o f the 139 international and national unions a ffilia t e d with the AFL-CIO have education departments, with most o f the others assigning to a top o f f i c e r re sp on sib ility fo r union education. Methods Used in Workers* Education Programs P rojects and problems dealt with in workers' education programs are handled with a f l e x i b i l i t y not usually found in more formal courses o f in stru ction . Techniques are generally adapted to the subject matter, the worker students, and the organization conducting the train in g, rather than to a rig id curricular pattern. For several reasons, it is believed that educational programs fo r workers are carried on most e ffe c t iv e ly under union d ire ctio n . For example, the subject matter is generally sp ecia lized and courses are directed to the workers' particu lar needs and in te re sts. More over, many workers with lim ited educational backgrounds may tend to fe e l uncomfortable in a more formal educational system. Educational programs may take many forms. An early method o f training consisted o f one or more classes a week over a period o f several weeks. At present, th is is being superseded by more concentrated forms o f in stru ction . Two- or 3-day conferences and weeklong schools have been found to be a more .effective method o f arousing and retaining in terest and bring about group p a r t ic i pation. D irectors o f workers' education a c t iv it ie s are constantly experimenting with new methods. They arrange debates, lectu res, open forums, panel discussions, conferences, and seminars. They attempt to represent actual situation s through role-playing tech niques, pa rticu larly in steward training courses; fo r example, students take on the role o f supervisor, steward, and worker in a mock grievance case. Visual and auditory aids, including film s and film s trip s , records and tape recordings, and graphs and posters are used. Timely and in teresting publications are widely d is tr ib uted fo r home study. For the training o f stewards and o f f i c e r s , summer schools are sponsored by unions throughout the United States, generally on 1:06 4 colleg e grounds, with a sp ecia l s t a ff from the college and union o f f i c i a l s p a rticip a tin g in the program. Types o f Subjects Taught In theory, the variety o f subjects viiich could be taught in workers' education courses is unlimited. P ra ctica lly , however, there must be certain w ell-defin ed areas o f in stru ction , and these deal mainly with the trade u n io n is t's rela tion to his union, his job , h is community, and the Nation. As indicated e a r lie r , the scope or depth o f the subject matter may vary, depending upon the students' position s in the union— representative, o f f i c i a l , labor education s p e c ia lis t, or rank-and-file worker. At a l l le v e ls , however, most o f the subjects now taught in workers' education p rojects are o f the "bread-and-butter" type—the preparation and administration o f labor agreements, union functioning, and economic, s o c ia l, and p o l it ic a l subjects as they d ir e c tly a ffe c t the worker. 1 / At the beginning o f workers' education programs, te x ts , course ou tlin e s, and experienced teachers were lacking. Many o f the present in stru ction courses have been prepared by union o f f i c ia ls and education d ire c to rs . In recent years, however, univer s it ie s have given extensive aid both in teaching and providing course m aterials. The subjects taught in workers' education programs at the present time, or fo r which training programs are planned, generally f a l l in the follow in g categories: 1. Contract preparation, content, and in terpretation, grievance procedure, mediation, c o n c ilia tio n , and arbitration . 2. L egislation which a ffe c ts union opera tion or relation sh ips, such as the Labor Manage ment Relations A ct, State "rig h t to work" laws, minimum wage le g is la tio n , and the lik e . 1 / In addition to p ra ctica l courses in labor and economic a f f a i r s , some unions o ff e r in struction in cultural pursuits through theater groups, musical shows, orchestras, ch oirs, book clubs, out ings, and a th le tic programs. These programs are aided and encour aged p rin cip a lly as morale builders, organizing aids, and part o f the s o cia l a c t iv it ie s o f lo c a l unions. 1:06 5 3. S ocial secu rity le g is la tio n , unemploy ment compensation, and retirement problems. 4. Industrial safety le g is la tio n , shop p ra ctice s, and f i r s t aid train in g. 5. Conduct o f union meetings, p a rlia mentary law, public speaking, and union administ ra tion . 6. Labor h istory and union structure. 7. Automation, adjustment to tech nological change, and training fo r new s k i l l requirements. 8. Employer and shop relation sh ips, de termination o f wages and hours, job evaluation, and time and motion study. 9. Consumer economics, installment buying, cooperatives, insurance, cred it unions, and budget management. 10. C itizenship, p o lit ic a l a ction , p o l i t i c s , c i v i l rights and lib e r t ie s , p o lit ic a l parties and pressure groups, lobbying, e le c tion s and voting, problems o f democracy, re sponsible citiz e n sh ip , and operation o f government. 11. Relation o f wages, p rice s, p r o fit s , and produ ctivity. 12. International a ffa ir s , foreig n labor organizations, t a r i f f s , and labor’ s stake in world a ffa ir s . 13. Community rela tio n s, p a rticip a tion in community a ffa ir s , training fo r community action , how to use community agencies, and counseling. 14. Health problems and health and welfare insurance programs. 15. Special educational courses, such as classes in reading and writing English fo r foreign members, and general training in l i t eracy fo r uneducated groups. 1:06 6 Impressive as the above l i s t i s , i t may be expanded into other areas as workers' in terests develop. At the same time, th is l i s t should not be thought o f as a catalog o f courses, such as would be o ffe re d by a un iversity. The "ru le o f thumb" s t i l l applies in much that is being done in workers' education. Good in stru ctors try to o ffe r just as much as they think the students w ill absorb with in terest. Since there are no sch ola stic standards to be met, no rig id curriculum is prescribed. Examples o f Union-Operated Education Programs Workers' education is s t i l l la rgely in the formative stage. Many unions have only elementary programs and others, none whatever. However, several unions have developed th eir education programs fa r beyond the experimental stage. A b r ie f summary o f what three unions are doing is presented below: The Ladies* Garment Workers' Union. —One o f the oldest and most active unions in the f i e l d o f workers*education is the In ter national Ladies' Garment Workers* Union. I ts program has continued to grow since it s start in 1914. Educational a c t iv it ie s are maintained on three le v e ls : (1 ) Mass education, which includes le ctu re s, excursions, and v is i t s to museums, art g a lle r ie s , and other places o f in te re st, and other types o f recreation al and cultu ral a c t iv it ie s ; (2 ) classroom educa tio n , which provides new members* cla sse s, and courses in union h is to ry , current events, labor problems, languages, journalism, parliamentary law, and public speaking; and (3 ) a training in stitu te fo r members lik e ly to assume position s o f re sp o n sib ility in lo c a l unions. The union has 24 fu ll-tim e educational d ire cto rs in the larger population centers, as w ell as a s t a f f training in stitu te and a varied program ranging from individual counseling to mass meetings o f area membership. •Programs intended fo r the rank-and-file members include: 1. New members' classes. In some areas, attendance is compulsory. Ranging from a sin gle lectu re to a s e rie s o f 4 to 6 planned ta lk s, these classes cover such to p ics as rights and r e s p o n s ib ilitie s o f new members, why members pay dues and what they get in return, welfare agencies available to union members, e tc. 2. Cultural and recreational classes in handicraft, a rt, music, dramatics, and choral 1:06 7 singing. An annual spring fe s t iv a l exh ibits work done by students in sculpture, painting, and ceramics. 3. A sp ecial course, Bnglish fo r Hisp a n ics, which grew out o f the large in flu x o f Puerto Ricans in to the garment industry. The s p e c ia lly developed textbook and homework assignments are b u ilt around trade union and shop experiences. 4. Organized tours o f the United Nations building. These have become increasingly popular in lo c a ls surrounding the New York City area. 5. In Pennsylvania auu Massachusetts, musical revues produced by the unions are pre sented to raise funds fo r lo c a l charitable and r e l i e f agencies. Programs fo r lo c a l o ff ic e r s include: 1. O ffic e r s ’ q u a lifica tio n course. This is carried on mainly in the New York metro politan area where completion o f the 17-week, 2-night-a-week course is a prerequisite fo r new candidates fo r fu ll-tim e o f f i c e . The course includes such subjects as ILGWU h istory, trade union techniques, economics o f the garment industry, e tc . 2. Refresher courses fo r shop stewards, usually conducted at lo ca l le v e l, weekly or in weekend in s titu te s . 3. One-day, weekend, 7- and 10-day in s titu te s fo r o ff ic e r s and active members. Some 45 such in stitu te s were run in 1955. Some are conducted in conjunction with a university labor program. Included in these programs are economics, p o lit ic a l action , and labor and international a ffa ir s . 4. Spanish language course fo r business agents and s t a f f —mainly in New York City area. 1:06 8 The ILGWU Training In s titu te , now in it s seventh year, puts approximately 25 q u a lified students a year through a 12-month fu ll-tim e study-work training program. Q ualified appli cants are ILGWU members or members o f other unions; some come from outside union ranks. Those su ccessfu lly completing the course are o ffe re d s t a f f jobs in the ILGWU. Divided into 5 periods, the students' training includes an in it ia l 12-week study period at the In stitu te in the union's head quarters in New York City follow ed by a period out in the f i e l d on an organizing drive or working in a lo c a l union. Another 12 weeks o f study at the In stitu te leads to a second period in the f i e ld follow ed by a fin a l period o f study at union headquarters. The curriculum includes h istory o f the ILGWU, labor h isto ry , labor law, economics fo r workers, structure and operation o f the ILGWU, economics o f the garment industry, problems in organizing, comparative labor movements, com parative economic systems, and lo c a l union ad m inistration. In addition, s k i lls in mimeo graphing, le a fle t w riting, operation o f film p ro je cto rs , e t c . , are developed in workshop sessions. General serv ices o f the Education Department include Extensive pu blication o f pamphlets, books, o u tlin es, songs and records, a film lib ra ry with 60 items available to union and community groups (including the widely used, ILGWU-produced film With These Hands), a book sales d iv ision , packet mailing service o f education aids to education directors and committees, and a lecture program at Unity House, the union's summer /vacation center. The national Education Department spends much time on talks and film showings to foreign labor delegations and public school groups v is itin g the union's headquarters. I t provides speakers fo r schools and re lig io u s and community lt06 9 groups. Monthly meetings o f education d ire c tors in the New York City area serve to d is cuss new ideas, coordinate programs, preview new film s , and develop new m aterials. The Automobile Workers. —The United Automobile, A ircra ft & A gricultural Implement Workers operates an extensive education program s ta ffe d by fu ll-tim e educational personnel at it s national headquarters and in each region. Three cents o f each member's monthly dues payment is a lloca ted to a special educational fund; each lo c a l union is required to set aside the same amount o f dues into a lo c a l education fund. The establishment o f lo c a l educa tion al committees is required, with the lo c a l union determining each committee's size and method o f s e le ctio n . S ta ff training is carried on at regional meetings, weekend conferences, evening cla sse s, and summer schools. Topics generally discussed include problems and techniques o f c o lle c tiv e bargaining; grievance procedure; technical developments and auto mation; and p o l it ic a l, le g is la t iv e , and economic issues. In the more extended courses, such subjects as labor h istory, foreign a ffa ir s , farm problems, and c i v i l rights may be included. In addition to these continuing a c t iv it ie s , the union holds a biennial International Education Conference fo r the educa tion s t a f f , to bring them together fo r interchange o f ideas and problems and to a ssist in presenting the union's views and aims on top ics o f in terest to labor in general. In addition, special pro grams are held, frequently in spiration a l in nature. In 1956, fo r example, the conference put on a pageant, We Remember Our Past— The UAW Is Twenty Years Old. The jo b o f the educational s t a f f i s , b a s ica lly , to train and inform union o f f i c i a l s and members, p a rticu la rly those in po s itio n s o f leadership or con tro l. The various programs reach more than 60,000 UAW members annually in the various union-sponsored sch ools. Subject matter is usually geared to current problems. In 1956, fo r example, the programs placed particu lar emphasis on a study o f p o lit ic a l issues, in view o f the presiden tial e le ctio n during that year. Since the courses are not re stricte d by formal curricular lim ita tion s, fle x ib le programs are follow ed. The national union publishes an educational magazine, Ammunition, Which is sent to more than 50,000 leaders in lo c a l unions. Special issues discussing problems o f general interest are frequently given wider circu la tio n , both within and outside o f the union. Films and film strip s dealing with union top ics 1:06 10 and problems are also produced and distribu ted fo r showing at lo c a l union meetings. Union-prepared pamphlets receive wide d istrib u tion . In 1956, these included state’ments on pensions, farm problems, automation, and UAW h istory . A revised steward's guide and sugges tions fo r the improvement o f union meetings were also published. The union sponsors a daily radio program o f news and interviews fo r it s members and the general pu blic. This program is now presented by more than 35 sta tion s. One o f the more ambitious educational programs to be undertaken by the national union is the establishment o f a perma nent resident education center. A building and property adjacent to union headquarters in Detroit has been purchased fo r this pur pose. The labor u n iversity planned fo r UAW s t a f f and o f f ic e r s , and eventually fo r members, w ill be designed to broaden th eir understanding o f the h istory , philosophy, and m orality o f the union movement and to o ffe r advanced training in union administration and c o lle c tiv e bargaining. The various regional division s o f the union carry on th eir own educational programs. Although these follow the national union's program and are generally sim ilar in a l l regions, s u ffic ie n t latitu de ex ists so that problems unique to s p e c ific areas can be discussed. In many regions, speakers are made available to schools and community organizations to present the union's story and in fluence public opinion favorably. At the lo c a l union le v e l, lo c a l educational committees see that the educational program prescribed by the national union is presented properly. In addition, lo c a l a c t iv it ie s are carried on independently in many areas. E fforts are made to negotiate with management fo r the right to d istribu te union litera tu re through pamphlet racks. Current publications are generally made available at union meetings, and at the union h a ll. Cooperation with other lo c a l unions in the community is encouraged, p a rticu la rly in e ffo r t s to place publications presenting the unions' viewpoint in schools and lib r a r ie s . International Brotherhood o f Pulp, Sulphite and Paper M ill Workers. —An education program incorporating many unique features i s carried on by the Pulp, Sulphite and Paper M ill Workers with the cooperation o f the United Papermakers and Paperworkers. This program is distinguished from other union education p rojects because (1 ) the training classes are an in tegral part o f the union 1:06 11 structure and are a fu nction o f the regional o f f ic e r s o f the unions, and (2 ) actual teaching in lo c a l unions is done by in stru ctors chosen by the lo c a ls themselves. The use o f rank-and-file in structors was undertaken p r i marily because o f in s u fficie n t budget and s t a f f to carry on an ex tended program from national union headquarters. It is now re a l iz e d , however, that the lo c a l in stru ction program i s the only method by which the unions can reach large numbers o f members not otherwise within the range o f ordinary educational programs. S election o f lo c a l in stru ctors i s l e f t e n tir e ly to the lo c a l unions, with guidance in the form o f c r it e r ia suggested by the education department. This department does not re je ct the lo ca l* s ch oice, however, even i f the c r it e r ia are not met. Finan cing o f the program i s carried on jo in t ly by the lo c a ls and interna tio n a l unions, with the internationals paying fo r the training o f in structors and fo r work m aterials, and the lo c a ls paying fo r in structors* time and expenses (hiring training and fo r the settin g up o f lo c a l cla sses. Instruction is carried on by discussion from prepared questionnaires and "a ctin g" (r o le playing) follow ed by further discussions. The i n it ia l subject matter in the training program i s covered by eight units fo r each course: 1. What is the steward's job? (q u estion n aire). 2. Greeting the new employee (a ctin g ). Union accomplishments (questionn aire). 3. How the union is run— con stitu tion , finan ces, m ajority rule, minority rights (q u estion n a ire). 4. Grievances (questionnaire; a ctin g). 5. The contract (qu estion n aire). 6 Grievances (questionnaire—actin g— grievance record ). 7. Information fo r the steward—T a ftHartley Act, Wagner A ct, pension plans and s o c ia l secu rity , reading l i s t (questionn aires). 8. Grievances (a c tin g ). 1:06 12 These f i r s t eigh t units constitu te the basic training course fo r o f f i c e r s , stewards, and committeemen. I t covers the ground most fam iliar to the lo c a l in structors at the time when much o f th eir attention must be devoted to consideration o f the methods and techniques o f teaching. Additional units (9 through 12) deal with the subject o f s e n io rity . An advanced course deal ing with the economics o f the pulp and paper industry is planned. Education in the Local Union The types o f workers* education programs o ffe re d by most lo c a l unions other than those described immediately above, depend upon many fa c to r s , such as the size o f the lo c a l, the in te re sts o f the o f f ic e r s , and the pressures fo r various types o f action . The needs and aims o f workers' education in lo ca ls are e s s e n tia lly the same as those o f national unions. In p ra ctica l application , the f i r s t purpose o f the lo c a l program is the development o f w e llinformed union members. To carry out th is plan, national unions and other agencies furnish various types o f aids fo r the use o f the lo c a l. S p e c ific su bjects to be taught w ill usually be determined by questioning lo c a l o f f ic e r s and members. Some fa vorite top ics include the conduct o f union meetings, the h istory o f labor unions, labor economics, labor laws and th eir enforcement, and the operation o f health and welfare plans. Labor education d irectors warn lo ca ls to plan ca refu lly fo r a small p roject and to avoid huge fa ilu re s at a l l costs. Federation Education A c tiv itie s Following the merger o f the AFL and CIO in December 1955, the educational programs operated by the separate federations were combined and carried forward with augmented in ten sity. As was the case with both organizations before the merger, the Federation is concerned prim arily with giving aid to the educational programs o f member unions by providing guidance and by furnishing printed m aterials, film s, and other aids. An extensive program o f summer schools and in s titu te s , conducted by national and international unions and State central bodies, plays a large part in the Federation's educational work. These schools generally o ff e r intensive courses designed primarily to aid lo c a l o f f ic e r s , shop stewards, and key members o f lo ca l unions in providing service to the union's membership. Grievance procedures, le g is la tiv e programs that require understanding and p a rticip a tion , in terpretation o f the contract, developing c o lle c tiv e 1*06 13 bargaining programs, steward training, and sim ilar subjects are given special attention. Other workshops and conferences may deal with such subjects as p o lit ic a l education, labor law, health and welfare programs, and community rela tio n s. The Federation also conducts p eriod ic conferences o f education d irectors o f national and international unions and State central bodies and also holds regional conferences on problems o f the particular region. The Department o f Education maintains a large lib ra ry o f film s and film strip s ■on labor subjects and general subjects o f interest to labor, which are rented to labor and community groups. Many labor organizations participate in a Film-a-Month plan. The Department is a ctiv e ly in terested in public education, including vocational education and apprentice training, and pro motes and advises on scholarship contests fo r high school students sponsored by State and c it y central bodies. Another phase o f the Department o f Education's program is it s cooperation with the ICFTU and other international organi zations such as UNESCO, representation on the Fulbright and Ruskin Scholarship se le ctio n committees, and cooperation with other pro grams bringing trade unionists from other countries to the United States. The Department o f Education issues a monthly pu blication, AFL-CXO Education News and Views, which keeps member unions and State and lo ca l organizations informed about new developments in education. Federation and international union programs are an nounced, and reported on when completed. New books, pamphlets, and film s o f in terest to labor are also lis t e d and discussed. 1:06 1:07 Trade Union Uses of Economic Data Trade unions, lik e many other organizations and in stitu tions in the United States, make extensive use o f economic data fo r p o licy guidance and as the basis o f reasoning and persuasion in the statement o f th eir p ositio n s. With the expansion in the scope o f th eir in terests and re s p o n s ib ilitie s over the past few decades, un ions in general have devoted an increasing amount o f attention to economic data. Increasingly, the process o f c o lle c tiv e bargaining revolves around the presentation o f economic fa cts and th e ir in te r pretation. Thus, economic fa cts and th eir use have become an impor tant resource o f the trade union movement. Most formal research work in the trade union movement dealing with economic data is undertaken at the le v e l o f the national union and in the AFL-CIO. Almost h a lf the national un ions employ fu ll-tim e research d ire cto rs who, in some unions, also serve as d irectors o f education. Other national unions generally assign an o f f i c e r or s t a f f member to research work as the need arises. The AFL-CIO maintains a central research s t a f f which makes wide use o f economic data fo r p o lic y purposes and provides sim ilar services to the Federation's a f f i l i a t e s . Research person nel o ften have profession al (u n iversity) training as w ell as some background in union a c t iv it ie s . Many have also had experience in industry, government, o r in teaching. Bconomic research a c t iv it ie s were long regarded by many persons, including some union o f f i c i a l s , as being outside the main stream o f union a c t iv it y — in teresting and informative, but not es sen tial to union operation. However, th is concept changed as un ions turned more and more to the use o f economic data to advance their c o lle c tiv e bargaining and other operating programs. It is now widely acknowledged that lo ca l union leaders and others who engage in c o lle c tiv e bargaining must fa m iliarize themselves with the economic information that may enter into negotiations or that may serve as a guide in formulating demands. Although needs vary, depending on the situ a tion , the types o f data most frequently re quired include (not necessarily in order o f importance): (1 ) In formation on general economic con d ition s, as w ell as conditions in the industry; (2 ) information on le v e ls o f wage rates and frin ge b en efits; (3 ) a measure o f changes in the cost o f liv in g ; (4 ) stud ies o f fam ily needs and budgets; (5 ) information on changes in produ ctivity; and (6 ) information on company p r o fit s . Trade unions are necessarily resourceful in th eir search fo r and use o f data; some go to great trouble and expense in ob taining data not otherwise available. However, i t must be empha sized that the a v a ila b ility o f economic data helps explain th eir extensive use by unions. U ) 2 Making fa cts available i s a tra d ition a l and highly re spected resp on sib ility o f the. Federal Government. Obviously, re lia b le and usefu l economic data do not come into existence auto m atically. For each o f the innumerable aspects o f economic a c tiv ity f o r which data are sought, information must be c o lle c te d , tabulated, explained, and published—system atically and repeatedly, so that data are reasonably current. These are ty p ic a lly c o s tly under takings. In addition to the varied types o f economic data c o lle c te d and issued by the Federal Government, the States contribute a lim ite d amount and a few private organizations also produce some p r i mary data. U niversities and endowed research organizations also p a rticip a te in increasing the flow o f information, mainly in terms o f analyzing and interpreting available s t a t is t ic s . Corporation fin a n cia l reports constitu te another basic source o f information. Almost a l l o f these data are available to the unions, as w ell as to others, fre e or at a nominal co st. This chapter deals prim arily with the ways in which unions use economic data. The follow ing summaries o f a c t iv it ie s o f certain unions in the c o lle c tio n and use o f such data indicate the extent to which union research departments at national union headquarters w ill go in the preparation o f factual information and the wide va riety o f ways in which i t is used. The unions which are used as illu s tra tio n s are only a few o f many whose research departments carry on sim ilar programs. On the other hand, some national unions and undoubtedly a substantial number o f lo c a l unions make l i t t l e or no systematic use o f any type o f economic data. Economic Data for C ollective Bargaining The most intensive and soph isticated use o f economic data usually arises when a third party is involved—whether a public board or agency, or an a rb itra tor—p a rticu la rly in major situ ation s. 1 / In 1951, fo r example, when an emergency Federal wage sta b iliz a tio n "" program wras in e f f e c t , the United Steelworkers o f America began nego tia tio n s fo r a wage increase with ste e l companies. Early in 1952, a fter negotiations between the union and the companies broke down, the case wras referred to the Wage S ta b iliza tion Board fo r action. The union's research department prepared materials documenting the union's demands, ju s tify in g these demands in economic terms as well as in terms o f wage s ta b iliz a tio n regulations and p o lic ie s , and analyzing the equ ities involved. A few o f the prin cipal exhibits presented to the Board are described on the followring page. 1 / The railroa d unions, p e rio d ica lly faced with the necessity o f preparing extensive b r ie fs fo r emergency board hearings, often fin d i t desirable to employ consultants or private research compa nies to a ssist in the preparation o f economic e x h ib its. 1:07 3 Wage P olicy in Our Expanding Economy was a 60-page exh ibit prepared by the research department o f the former Congress o f Industrial Organizations, to which the union was a f filia t e d , fo r the Steelworkers* case. Included in th is report were 18 charts and 22 tables, designed to ju s t ify a dynamic wage p o lic y in general and s te e l wage increases in pa rticu la r. The economic arguments were presented under the follow in g headings: The Expanding Economy; Wages, P r o fit s , and the Price S piral; The Movement o f Inventories and S ales; The Pattern o f Consumer Income, Expenditures, and Sav ing; Rising P roductivity; and CIO Proposals to Strengthen the S ta b iliza tion Program. Another e x h ib it, prepared by the research department o f the Steelworkers* union, was e n title d "The Economic Documentation o f the Steelworkers' Demands.” To b o lste r the argument that "the union's economic demands are both reasonable and ju s t ifia b le ” the union presented a substantial amount o f testimony dealing with produ ctivity, p r o fit s , s a le s , p rice s , dividends, and wage trends. Another union exhibit presented Pact Sheets Showing the Financial P ositions o f Individual Companies as Compiled by the Research Department o f the United Steelworkers o f America. This exhibit contained a compilation o f information, from published re ports to stockholders and general fin a n cia l or industry pu blica tio n s, on 51 s te e l companies. The follow ing economic data were reported fo r each company: Ingot capacity Number o f employees Selected measures o f operations ( f o r each year, 1939-51) Operating rate (percent o f capacity) P ro fits before taxes Net p r o fits (amount and index, 1939=100) Sales (amount and index, 1939=100) Net worth Long term debt Common stock cash dividends S ign ifican t ra tio s (1939-51) Net p r o fits as a return on net worth P ro fits before taxes as a return on net worth Sales d o lla r percentages Net p r o fit Wages and salaries Materials 1:07 4 Percent changes, selected periods compared to 1951 Net p r o fit (sta te d ) P ro fits before taxes Sales Net worth In addition to these ex h ib its, an analysis o f union and company contract proposals and a special survey o f holiday, vaca tio n , and other "frin g e" p ra ctices o f leading companies in major industries were assembled and presented. Rebuttal testimony to answer the economic arguments offe re d by the companies was also prepared. Although this was a special case, the normal work o f the Steelworkers' research department is sca rcely le ss demanding. In addition to the type o f a c tiv ity illu s tra te d above, the depart ment supplies assistance and advice to lo ca l unions on wage data, fin a n cia l reports, and other matters. The research department o f the United Rubber, Cork, Lino leum and P la stic Workers Union also carries on a broad program o f c o lle c tio n and compilation o f economic data fo r the use o f it s lo c a l unions as w ell as national headquarters. In the department's report to the 1954 convention o f the union, the follow ing items were mentioned: Wage information was co lle cte d from lo ca l un ions; wage surveys fo r key occupations were made on a d is t r ic t-b y d is t r ic t b a sis, and according to the various industries organized by the union; and studies o f the key provisions o f union agreements in force in the industry were made to show gains and to bring lag ging areas o f the industry up to standard. In addition, a se rie s o f releases dealing with economic trends in rubber and a llie d industries were prepared to aid union o ff ic e r s and committees to establish union p o licy and guide union action. For c o lle c tiv e bargaining purposes, the department pre pared b rie fs fo r use in the negotiations with the Big Four rubber companies (F irestone, Goodrich, Goodyear, and U. S. Rubber) and with other companies in the industry. Reports on finances o f individual companies were prepared to a ssist bargaining committees in situ a tions in which companies claimed in a b ility to pay. Studies were also made o f guaranteed annual wage plans to prepare fo r bargaining on that subject in the rubber industry. In addition, fin a n cia l, wage, and economic data fo r in dustries and areas were prepared fo r use in organizing drives. 1:07 5 The report o f the General Executive Board to the 1953 con vention o f the International Ladies' Garment Workers' Union called the research department o f the fa ctfin d in g agency o f the union, and charged i t with the resp on sib ility o f "gathering and analyzing the economic and s t a t is t ic a l information on our industries as well as the functioning o f our economy as a whole." The department main tains a comprehensive lib ra ry o f current and h is to r ic a l material about the industry and the union. It not only u t iliz e s available s t a t is t ic s from government and private agencies but makes firsthand surveys o f subjects o f in terest to the union. The research department o f the Amalgamated Clothing Work ers carries on a sim ilar program fo r the o ffic e r s and members o f the union. The research department o f the T extile Workers' Union de scribed i t s e l f in the o f f i c e r s ' report to the 1956 convention o f the union as the analyst and interpreter o f developments in the industry, shaping new courses o f action to deal with the depressed condition o f te x tile manufacturing, the wave o f mergers, and the movement o f m ills to nonunion areas o f the South. The report goes on to say: In addition to these special tasks, the depart ment carried on it s regular function o f compil ing and analyzing information and preparing re ports to a ssist in the day-to-day operation o f the union. These reports included data on wages and fringe b en efits; company p r o fit s , dividends and executive compensation; a f f ili a t io n o f plants with parent companies; plant labor relation s; e le c tio n s ; s trik e s ; agreements; contract analy s i s ; pension plans; arbitration issues. Preparations fo r wage negotiations in the various industry d ivision s required extensive analyses o f economic conditions, including p r o fits , co sts , p rice s , production, trends, e t c . When negotia tion s eventuated in strik e s, research a c t iv it ie s were in ten sified in the e ffo r t to exert maximum leverage on the struck companies. When arbi tration was used as the means o f s e ttlin g wage deadlocks, the research department prepared the b r ie fs and presented the arguments. One o f the notable p rojects o f the T extile Workers' re search department was the preparation o f a 214-page T extile Workers' 1:07 6 Job Primer, which serves as a technical guide fo r union workers who have to deal with work assignment and production standard problems. I t has had wide d istrib u tion both inside and outside the union. Supplementary material has been provided through technical memoranda and b u lle tin s, as well as a r tic le s on s p e c ific problems. In many cases, the most e ffe c t iv e data that a union can use are derived from i t s own a c t iv it ie s . For example, the In ter national A ssociation o f Machinists and the International Chemical Workers* Unions maintain central f i l e s o f agreements negotiated by lo c a l a f f i l i a t e s and regularly analyze these agreements. The in fo r mation and s t a t is t ic s thus derived are quickly available to lo c a l unions fo r use in c o lle c tiv e bargaining. Other Uses o f Economic Data The uses o f economic data described above are based p r i marily on immediate c o lle c tiv e bargaining needs. There are other uses o f economic data which have developed through the years, as unions have increased in s iz e and maturity. Some o f these uses are summarized below. General Information to Aid Union O ffice rs and Members. — Economic data are c o lle c te d and published in bu lletin s and union publications to build up an informed membership. In addition, some o f the larger international unions publish b u lle tin s and reports de signed to influence thinking and action on the part o f the general p u b lic . Long-Range Planning. —An important use o f economic data i s to plan the long-range program o f the union. In many organiza tion s , studies are made o f wage r a te s , employment, industry stru c ture, p rice s , in fla tio n tendencies, and the lik e ; these are used to evaluate future trends, to chart a course fo r forthcoming contract n egotiations, and to lay down a general pattern o f action. Liaison With S ta tis t ic a l Agencies o f the Government, Edu cational In stitu tio n s, and Research A ssociations and S o c ie tie s . — Persons in charge o f union research and c o lle c tio n o f economic data often work c lo s e ly with other users o f data and with private and governmental agencies which c o lle c t and publish data. Public R elations. —Unions find i t desirable to present th e ir case to the pu blic, p a rticu la rly when labor disputes are im pending or taking place. Quite often economic data are prominent features o f th is program, usually to demonstrate the workers' need fo r increased wages and company a b ilit y to pay. 1:07 7 The AFL-CIO Bconomic Research Program B rie fly , the major functions o f the AFL-CIO research de partment are as fo llo w s : 1. Appraisal o f trends in employment and unemployment, wages, p rodu ctivity, and other key aspects o f the economy, and evaluation o f government f i s c a l , monetary, credit and other p o lic ie s . 2. S ervice, in an economic advisory ca pa city, to union o f f i c i a l s and to other groups. 3. Review o f the Government's s t a t is t ic a l programs and provision o f technical advice necessary fo r th eir improvement through the Joint Labor Research Advisory Committee to the Bureau o f Labor S ta tis tic s and the Labor Ad visory Committee to the O ffice o f S ta tis tic a l Standards o f the Bureau o f the Budget. 4. Furnishing o f background information to a ffilia t e d unions fo r c o lle c tiv e bargaining purposes. 5. Supplying organizers with various types o f fa ctu a l information required fo r handling s p e c ific organizing or bargaining problems, and 6. Maintaining contact with research d i rectors o f the d iffe re n t national and in ter national unions, coordinating a c t iv it ie s in areas o f common in te re st, and fa c ilit a t in g ex change o f information. The AFL-CIO research department issues two monthly pu bli cations dealing with economic or c o lle c tiv e bargaining su b jects— Labor's Economic Review and C ollective Bargaining Report. Both make extensive use o f economic data. The f i r s t publication deals with broad economic issues o f in terest to labor, as illu stra te d in such recent top ics as: Who Owns American Business? Who Pays fo r New Investment? 1:07 8 Wage Increases—Essential fo r Prosperity For a Fair Federal Tax P olicy Insuring Against T otal D isa b ility Farmers-tforkers and the "Cost-Price'* Squeeze An Unsolved Problem: Families Distressed Areas: America's Low-Income A National Problem C ollective Bargaining Report is designed p rin cip a lly as an aid in c o lle c tiv e bargaining. Bargaining trends and develop ments are analyzed and data o f general sign ifica n ce fo r bargaining are presented. 1:07 2. Collective Bargaining 2:01 The Development of Collective Bargaining C ollective bargaining—the process o f discussion and negotiation between an employer and a union, culminating in a written con tract, and the adjustment o f problems arisin g under the contracts—i s , in the United S tates, the core o f trade union purpose. It is the predominant form o f labor-management relation sh ip—th is country* s major device f o r jo in t p a rticip a tion in establishin g wages and working conditions outside the re la tiv e ly lim ited area in which the Government operates. The importance o f c o lle c tiv e bargaining i s measured not only by the m illion s o f workers and thousands o f establishments d ir e c tly a ffe cte d but by i t s impact on the economy and, h is t o r i c a lly , on the s o c ia l and p o l it ic a l concepts o f the United States. The N ation's basic industries— co a l, s t e e l, autos, construction, public u t i l i t i e s , ra ilroa d s, trucking, e t c . —almost e n tir e ly , o r to a very substantial degree, operate under the terms o f c o lle c tiv e bargaining agreements. The encouragement o f c o lle c tiv e bargaining, free from Government interference except in emergencies, i s a fundamental part o f Federal labor p o lic y . Growth o f C ollective Bargaining The evolu tion o f c o lle c tiv e bargaining and the written agreement in the United States, from th eir f i r s t fa lte rin g steps early in the 19th century to th eir present stature, i s obviously rooted deep in American p o l it ic a l and economic h isto ry . The emerging reliance o f American trade unions upon c o lle c tiv e bargain ing to achieve th eir ends, as against p o l it ic a l means, was unique among labor movements throughout the world. It is important to note, in th is regard, that throughout the h istory o f the United States the American worker enjoyed the right to vote and the heritage o f a democratic form o f government. I t i s important, too, to remember that the tra d ition o f vested in terest associated with medieval and m ercantilist in s titu tio n s , which in other countries may have compelled labor movements to con centrate on le g a l enactment, fa ile d to take root in the United States. During the formative period o f the trade union movement, moreover, the economy o f the United States was characterized by a re la tiv e s ca rc ity o f labor, a rapidly growing population, and a high rate o f economic growth—fa cto rs tending to subordinate radi c a l p o lit ic a l a c t iv it y to d ire ct dealings with employers. What may well have been the crossroads a t which the trade unions moved towards c o lle c tiv e bargaining and abandoned p o l it ic a lminded and panacea-seeking organizations was reached during the la t ter part o f the 19th century, irfien the "pure and simple" unionism ( 1) 2 advocated by Samuel Gompers, head o f the newly formed American Federation o f Labor, became dominant. Early in the 19th century, a type o f workable relation sh ip with employers had been developed by the f i r s t unions, which consisted in the main o f selectin g a representative to present demands to the employer and making an arrangement, i f p ossib le, and strik in g , i f not. Later in the cen tury, national unions were formed to coordinate the operations o f various lo c a l unions in the same industry so as to protect the standards o f a l l . There were, according' to a noted h istoria n , decades o f continuous experimentation with programs and stra tegies in "an incessant search fo r a mode o f operation which would secure to labor a maximum improvement in conditions together with a most stable organization and a minimum o f op p o sitio n ." At the same time, a gita tion fo r reform— cooperation, monetary reform, 8-hour-day le g is la tio n , syndicalism, and s o c ia l ism— competed with the emphasis on job con trol and c o lle c tiv e bar gaining. The Knights o f Labor attempted to combine the ro le o f a reform group and a labor federation and fa ile d in both. By the end o f the century, the AFL, appealing to the s k ille d c r a ft s , was dominant, as was Gompers* philosophy o f relyin g upon c o lle c t iv e bargaining and w ritten agreements to further workers' in terests and avoiding government intervention in matters o f s o c ia l le g is la tio n and c o lle c tiv e bargaining. These were to be the guiding trade union p rin cip le s u n til the early 1930*s , but throughout most o f the e a r lie r period, p a rticu la rly the 1920's, conditions were not favorable to the growth o f c o lle c tiv e bargaining. Only a small fra ctio n o f the workers in the United States were covered by c o lle c tiv e bargaining agreements. A fter the depression began in 1930, c o lle c tiv e bargain ing as a trade union method appeared to be in f u l l retreat. The rejuvenation o f c o lle c tiv e bargaining was brought about, in large measure, by a more favorable government a ttitu d e , The National Industrial Recovery Act (1933) and la te r the National Labor Relations Act (1935) encouraged and protected labor’ s right to organize and raised c o lle c tiv e bargaining to the status o f a national labor-management p o lic y . The formation o f new and power fu l unions, the organization o f the large mass-production industries and the enactment o f various types o f s o c ia l le g is la tio n (with trade union support) had by 1940 reconstructed c o lle c tiv e bargaining. The impetus has not been d isp elled . During the past 15 years, c o lle c tiv e bargaining has become a v it a l force in the economy. By 1956, i t was estimated that there were over 125,000 w ritten agree ments in e f f e c t ; that 18 m illion workers were covered by these 2:01 3 agreements; that over 1,800 agreements covered 1,000 or more workers each. Role, o f Government "Pure and simple" unionism, by which workers' economic needs would be met prim arily through c o lle c tiv e bargaining, was gradually integrated with Government support o f c o lle c tiv e bargain ing and the enactment o f a broad program o f s o cia l secu rity bene f i t s and some wage and hour standards. Even Samuel Gompers, the c h ie f exponent o f lim itin g Government intervention, spent much o f his adult l i f e looking a fte r the p o l it ic a l a ffa ir s o f the labor movement. Prior to 1932, however, the AFL was largely preoccupied with protective le g is la tio n , such as removing the legal impediments to organization ( e . g . , labor injunctions issued by the co u rts ), and providing standards o f work fo r women and children. It was not u n til 1932 that an AFL convention endorsed unemployment insurance. The rapid and continued expansion o f union organization and c o lle c tiv e bargaining, follow in g the adoption o f favorable le g is la tio n in the 1930's, brought home the rea liza tion that the growth o f c o lle c t iv e bargaining in th is country was largely depend ent upon a p o sitiv e government attitude in support o f the p rin cip le . During the past two decades, the major labor federations have de voted increasing attention to le g is la tiv e matters o f a broad scope, including measures designed to enhance the workers' economic w e ll being. However, the ch ie f business o f the national unions and th e ir thousands o f lo c a ls continues to be the negotiation and administra tion o f c o lle c tiv e bargaining agreements. j Understanding the role o f tjhe Federal Government i s an essen tia l part o f understanding how C o lle ctiv e bargaining works in the United States. Two aspects merit} attention in th is b r ie f re view; 1 / (1 ) What Federal protection and regulation o f the right to organize and to bargain c o lle c t iv e ly means in p ra ctice , and (2 ) how Federal wage and s o cia l secu rity b en efits supplement ben efits provided through c o lle c tiv e bargaining, and vice versa. Under the National Labor Relations (Wagner) Act (1935) and la ter under the Labor Management Relations (T aft-H artley) Act (1947), the right to organize was safeguarded by prohibitin g em ployers from in terferin g with or restraining the workers* choice 3 / Mediation and c o n c ilia tio n a c t iv it ie s o f the Federal and State Governments are discussed in a separate chapter in th is se rie s (2 :0 4 ). 2:01 4 o f belonging to or not belonging to a union. The right to bargain c o lle c t iv e ly was then enforced by making i t the duty o f the employer to recognize and bargain with the representatives o f his employees on wages, hours, and other conditions o f employment. "This con c e p t,” a prominent union economist wrote in 1950, "which looked simple enough in the beginning, has grown into a vast and d etailed body o f d octrin e, often reaching into the minutiae o f labor-manage ment relation s and o f internal union problems!" The statement o f a legal duty to bargain c o lle c t iv e ly in evitably gave rise to demands fo r a leg a l d e fin itio n o f the scope o f the duty. What is bargaining? What is encompassed by the term "con dition s o f employment?" Thus, to take one example, pension plans i n i t i a l l y became an important issue in c o lle c tiv e bargaining not because employers and unions mutually recognized it s place on the bargaining table, but because United States courts ruled that pension plans f e l l within the scope o f conditions o f employment. In general, however, established c o lle c tiv e bargaining re la tio n ships have adjusted to the form a lities required by Federal le g is la tio n and continue to function from year to year with the responsi b i l i t y fo r basic decisions regarding wages, hours, and conditions o f employment resting with the parties involved rather than with the Government. The coexistence o f economic ben efits provided by c o lle c tiv e bargaining and Federal s o c ia l secu rity le g is la tio n and wage and hour standards is another key element o f modern in dustrial re la tion s in the United States. This relationship is illu s tra te d in the accompanying ta b le, which shows the major types o f economic ben efits provided to fa ctory workers under c o lle c tiv e bargaining and under le g is la t io n . The picture would be somewhat d iffe re n t fo r certain groups o f workers in nonmanufacturing industries. In another sense, the noneconomic ben efits obtained through the c o lle c tiv e bargaining process, along with the job s e cu rity provisions shown in the ta b le , form the basis fo r indus t r i a l democracy, a f i t t in g supplement to the p o l it ic a l democracy guaranteed by the Constitution o f the United States. Structure o f C ollective Bargaining The c la s s ic illu s tr a tio n o f c o lle c tiv e bargaining in action shows representatives o f management s it tin g on one side o f the table and representatives o f employees on the other sid e. Such scenes occur thousands o f times each year throughout the country. With th is illu s tr a tio n in mind, th is section deals with the question o f vrtiat or whom these men and women may be representing. 2:01 5 E c o n o m ic b e n e fits p r o v id e d to fa c t o r y w o r k e r s u nder c o lle c t iv e b a rg a in in g a g r e e m e n ts and by le g is la t io n , 1956 U nder c o lle c t iv e b a rg a in in g — W ork ers1 needs A inl IT j .CA gi vl io oX 1ao Vf il U M a jo r it y o f w o r k e r s a r e p r o v id e d : M any w o r k e r s a r e a ls o p r o v id e d : p r o v id e s 1 W a ges W age r a te s fo r e a c h o c cu p a tio n d e te rm in e d b y m u tu al a g r e e m e n t. G e n e ra l w age ch a n g es applying to a ll w o r k e r s . A u to m a tic w ag e e s c a l a tion b a s e d on c o s t o f liv in g • A u to m a tic annual in cr e a s e s . M in im u m w a g e o f $1 an h o u r . P r em iu m p a y fo r e x tr a h o u r s o f w o rk at unusual h o u rs T im e and o n e -h a lf fo r h o u r s in e x c e s s o f 8 p er day and 40 per w eek. D ou b le tim e fo r w o r k on Sundays and h o lid a y s • T im e and o n e -h a lf fo r w o r k on S a tu rd a y s. P r e m iu m pay fo r n ig h tw o rk . P r e m iu m pay fo r the 6th and 7th c o n s e c u tiv e day w o r k e d . H ig h er p r e m iu m r a te s fo r o v e r t im e , w e e k e n d s, and h o lid a y w ork . S h o rte r w o r k w e e k . T im e and o n e h a lf fo r h o u r s in e x c e s s o f 40 p e r w e e k . P a id le a v e P a id v a c a tio n s ( l to 3 w e e k s ). P a id h o lid a y s (6 o r m o r e ) . P a id r e s t p e r io d s and w ashup tim e . P a id le a v e fo r ju r y duty, death in fa m ily , m ilit a r y tr a in in g . P a id s ic k le a v e . P a id lu nch p e r io d s . — H ealth and in s u r a n ce p r o te c 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 en t b e n e fit s . H o s p ita liz a tio n and s u r g ic a l b e n e fits fo r w o r k e r s and d ep en d en ts. W eek ly a c c id e n t and s ic k n e s s b e n e fits ( o f f - t h e - jo b d is a b ilit y ). M a tern ity b e n e fit s . M e d ic a l c a r e b e n e fits fo r e m p lo y e e s and d ep en d en ts. E xten ded illn e s s in su ra n ce. W ork m en ls c o m p en sa tion (o n t h e -jo b d is a b ilitie s ). T e m p o r a r y d is a b ilit y in su r a n ce in 4 S ta te s. R e tir e m e n t in c o m e M onthly p e n sio n s upon r e tir e m e n t at a s p e c ifie d age (u su a lly 65) and a fter lon g s e r v i c e , su p p le m en tin g G o v e rn m e n t p e n s io n s . H o s p ita liz a tio n and s u r g ic a l b e n e fits a fte r r e t ir e m e n t . O ld -a g e and s u r v iv o r s 1in s u r an ce p r o g r a m fo r w o r k e r s r e tir in g at 65 o r la t e r . Job s e c u r it y P r o m o tio n s and la y o ff d e te rm in e d in w h ole or in p a rt on b a s is o f len gth o f s e r v i c e . P r o t e c t io n a g a in st d is c h a r g e e x ce p t fo r c a u s e . G r ie v a n c e p r o c e d u r e , w ith a r b i tr a tio n i f n e c e s s a r y . R e p o rtin g pay g u a ra n te e s . S u p p lem en ta ry u n em p lo y m e n t c o m p e n s a tio n . D is m is s a l p a y . G u a ra n teed w e e k ly , m o n th ly , o r annual pay. U n em p loym en t c om p en sa tion • 1 The ite m s lis t e d r e p r e s e n t a s im p lifie d d e s c r ip t io n o f the m a jo r b e n e fits a v a ila b le to m o s t fa c t o r y (m a n u fa ctu rin g ) w o r k e r s , SO U RCE: U . S. D ep artm en t o f L a b o r , B u rea u o f L a b o r S t a t is t ic s . 2:01 6 side, On the management the representatives may he nego tia tin g fo r a sin gle-plan t company, fo r one plant o f a multiplant company, or fo r several or a l l plants o f a multiplant company. They may be employers combining fo r the purpose o f negotiating a sin gle agreement, or they may represent an association o f employers organized on a lo c a lit y or industry basis. They may be negotiating fo r a l l o f th eir employees under agreement or fo r only certain de partments or c r a fts . On the union s id e , sim ilar or corresponding arrangements occu r. In addition , the matter o f union organization is important. Hie union negotiators may include one or more representatives from the national union (a federation like the AFL-CIO does not p a r t ic i pate in c o lle c tiv e bargaining), or from i t s d is t r ic t s , cou n cils, or departments, whose role is to maintain a certain p o licy or to help achieve as close an approximation as p ossib le. The repre sentatives may recognize th is o b lig a tion without any d ire ct par tic ip a tio n on the part o f the parent body. In sbme cases, there are no t ie s whatsoever with other organizations. The number o f combinations o f d iffe re n t types o f bargain ing units is probably lim ited only by the extent o f c o lle c tiv e bar gaining. The determination o f the bargaining unit is often part o f the c o lle c tiv e bargaining process. For the widening o f stru c ture from the single plant to the en tire company or to an associa tio n o f companies, it i s necessary to have a corresponding spread o f union organization, eventually by the same union, and an appro pria te adjustment in management p o lic y . As a rule, each type or variation o f structure has de veloped out o f the conditions surrounding individual situ ation s. Chief among these conditions are: The nature o f the product; the area and extent o f product competition; the nature o f the labor fo r c e ; the scope o f the labor market area; and the importance o f labor, costs with respect to to ta l co sts . The quality o f leadership and judgment displayed by management and union representatives, and personality tra its, that cannot be separated e n tire ly from any under taking in tdiich men engage with serious in ten t, are undoubtedly fa ctors in th is aspect o f c o lle c tiv e bargaining as in others. I t is convenient to c la s s ify the great variety o f bargain ing structures according to three broad types o f employer u n its: The sin gle-p lan t u n it, the multiplant or companywide u n it, and the multiemployer u n it. In terms o f number o f agreements, i t is prob able that those negotiated by one-plant companies exceed a l l other types combined. However, multiplant or companywide bargaining is the predominant structure in the mass production in dustries, 2:01 7 including basic s te e l, autos, e le c t r ic a l equipment, farm machinery, aluminum, meatpacking, and rubber* The master agreement, involving a number o f plants o f the same company and lo c a ls o f the same union, is the product o f this type o f bargaining* The development o f multi plant units in the mass production industries constitutes the major structural change in c o lle c tiv e bargaining since 1935. The distinguishing ch a ra cteristics o f multiemployer bar gaining is the open and generally formal agreement among employers that they would negotiate or accept id en tica l terms fo r th eir em ployees under union contract. The terms may relate only to gen eral wage changes, or to s p e c ific wage rates and fringe b e n e fits, or they may encompass the entire range o f problems dealt with under c o lle c tiv e bargaining. Since sim ila rity in contract terms can also be reached in other ways (commonly referred to as pattern bargaining), it is e sse n tia lly the method o f bargaining rather than the content o f the agreement that sets o f f multiemployer bargaining from the other types. It is estimated that about a third o f a l l workers under c o lle c tiv e bargaining are covered by multiemployer agreements, predominantly in such industries as railroads, coal mining, apparel, construction, maritime, trucking, printing, and baking. Multiemployer bargaining is an old in s titu tio n ; there are systems in operation today (as in anthracite mining) which have persisted in clo s e ly related forms fo r more than 50 years. Despite the importance o f multiplant and multiemployer bargaining, the determination o f occupational wage rates and other aspects o f wage settin g are predominantly matters fo r lo c a l or sin gle-plan t bargaining. Under many companywide and multiemployer agreements covering more than a single area, the determination o f actual wage rates is le f t to plant bargaining, although the deter mination o f general wage changes is handled on an ov e ra ll basis. Other issues ( e . g . , sen iority l i s t s ) may also be reserved fo r plant action. Since the primary re sp o n sib ility fo r enforcing agreements rests with the lo c a l unions, the lo ca ls continue to play a s i g n i f i cant role in v ir tu a lly a l l bargaining relation sh ips. Scope o f the Agreement When a company negotiates an agreement with a union fo r the f i r s t time* it acknowledges that certain practices which it had previously con trolled u n ila tera lly are now subject to union approval or discu ssion . Over the years, the issues subject to negotiation have been substantially broadened. The greatest change has occurred during the past 15 years, partly as a consequence o f National La bor Relations Board and court decisions defining the scope o f bar gaining but, in the main, undoubtedly a r e fle c tio n o f the increasing maturity o f c o lle c tiv e bargaining. 2i0l 8 The written agreement, which is the primary goal o f c o lle c tiv e bargaining, may express condition o f employment in simple terms, leaving many o f the administrative d eta ils and other matters to the day-to-day relationships between the pa rties. On the other hand, it may attempt to cover a ll d e ta ils and thus leave as l i t t l e as possible to la te r bargaining. Agreements vary in size from a sin gle sheet to over 200 pages o f a pocket-size booklet, r e fle c tin g the d iv e rsity o f employment conditions and bargaining issues among companies and industries as well as d ifferen ces in the degree o f p recision sought and the language used. The accompanying table l i s t s the major economic items covered by union agreements in manufacturing industries. Where such b en efits are provided, the contracts usually set forth the s p e c ific terms, e .g ., amounts, duration, e l i g i b i l i t y requirements, e tc. Many agreements include the scale of. wage rates to be paid; in a large number o f cases, however, the job rates are incorporated in special supplements o r, as in some long-established re la tio n ships, are not put into a formal written agreement. The other issues covered by agreements are numerous and important in safeguarding the rights o f the union and it s members, in providing them with a sense o f dignity and p a rticip a tion and, not to be underemphasized, in establishin g the p o lic ie s and prac tic e s which are necessary in the day-to-day functioning o f the enterprise. Short o f reproducing an entire agreement, however, it is d i f f i c u l t to describe the scope o f c o lle c tiv e bargaining today. For example , an agreement negotiated by a large company and a large union in 1955 runs to over 200 pages and deals with the follow in g broad subject groupings: Recognition o f the union Grievance procedure Seniority Union shop Dues and assessments Wages, premium pay, vacations, holidays, insurance, e tc. Company resp on sib ility Duration o f agreement S trik es, stoppages, and lockouts Representation (shop stewards and committee men) 2:01 Supplemental unemploy ment benefit plan Retirement plan 9 Bach o f these subjects i s treated in extensive d e ta il in the agreement; the section on s e n io rity , fo r example, includes 22 pages o f rules and procedures; the grievance and arbitration procedure is sp elled out in 19 pages. An agreement so comprehen sive , although appropriate fo r a large multiplant corporation, is obviously unsuitable fo r the small en terprise. The f l e x i b i l i t y that c o lle c tiv e bargaining o ffe r s is r e fle c te d in the ever chang ing scope o f the written agreement and the vast d ifferen ces that prevail among agreements at any one time, p a rticu la rly as between large and small companies dnd among in dustries. In a dynamic s o c ie ty , it i s un likely that the lim its o f c o lle c tiv e bargaining, in terms o f the ben efits provided to workers and the scope o f the agreement, w ill ever be reached. George Meany, President o f the AFL-CIO, expressed th is b e lie f in these terms: "A union e x ists to protect the liv e lih o o d and in terests o f a worker. Those matters that do not touch a worker d ir e c tly , a un ion cannot and w ill not challenge. These may include investment p o lic y , a decision to make a new product, a desire to erect a new plant so as to be clo s e r to expanding markets, to reinvest out o f earnings or seek new equity, ca p ita l, e tc . But where management decisions a ffe c t a worker d ir e c t ly , a union w ill intervene." Enforcing the Agreement Considering the com plexities o f modern la rge-sca le in dustry—the concentration in one plant o f thousands o f workers per forming sp ecia lized and in terrelated fu n ction s, and hundreds o f supervisors and foremen who act fo r "management"—there appear to be endless p o s s ib ilit ie s o f day-to-day fr ic t io n s and disputes. Bven in the absence o f c o lle c tiv e bargaining, employer statements o f p o lic y are needed fo r the large establishment. Under c o lle c tiv e bargaining, the need fo r formal p o licy guides is greater since the union p a rticip a tes, in varying degrees, in determining p o licy and in working out any problems that may a ris e . It i s , however,, generally acknowledged that no c o lle c tiv e bargaining agreement, no matter how d eta iled , can cover a l l aspects o f working conditions and employment relation sh ip s, or anticipate a l l o f the problems that might a rise ; nor can i t provide a s p e c ific solu tion fo r many that are anticipated. At best, the negotiators, who, i f they are corporation o f f i c i a l s and o f f ic e r s o f large international unions, may have l i t t l e d ire ct contact with the immediate work scene, attempt to provide the basic standards, righ ts, and obligation s under which the day-to-day issues w ill be resolved. They may seek to reduce the area o f possible disagreement, but they are often hindered in th is attempt by the pressure o f time in negotiations and the inadequacies o f language. Thus, the c o lle c tiv e bargaining 2:01 10 agreement, in many o f i t s aspects, is necessarily a fle x ib le docu ment, dependent fo r it s success on the manner in which it s terms are carried out or enforced. Local or plant management and union o f f i c i a l s may or may not carry primary resp o n s ib ility in the negotiation o f agreements, but in most cases the burden o f enforcing the agreement and, in e f f e c t , making c o lle c tiv e bargaining work, fa lls upon them. In th is area, the shop steward, who is a union member designated or elected to represent a l l the workers in a particular plant, de partment, or section , is the key person on the union sid e; on the management side, the immediate supervisor or foreman is the base o f the re sp on sib ility hierarchy. In large plants, a union com mittee may be established to consider problems beyond the scope o f the individual shop stewards. In most cases, a representative (business agent) o f the union lo c a l or national body is available to lend assistance. A major function o f lo c a l unions and management o f f i c ia ls is that o f resolvin g-disputes. The mechanics o f handling disputes is usually defined as the grievance procedure, 2 / form ally established in the written agreement. It is probable that the m ajority o f problems that arise in a ty p ica l plant, p a rticu la rly those involving personality clashes, are resolved by the employee, shop steward, and foreman without recourse to the advanced and more formal procedures o f grievance settlem ent. However, the a v a ila b ility o f the procedure fo r reaching higher le v e ls o f manage ment and union authority is the foundation o f these informal s e t t le ments. Most agreements provide fo r binding arbitration o f disputes which re s is t settlement by the p a rtie s ; thus, eventual settlement and the avoidance o f a work stoppage is assured. The a v a ila b ility o f grievance procedure and arbitration holds together a system o f union-management relation sh ips predicated on the use o f reason rather than fo rce . The enforcement o f agreements through the courts merits a b r ie f reference. The c o lle c tiv e bargaining agreement is a con tra ct between the employer and the union representing his employees which, lik e business contracts, binds each party to it s terms. Both types o f contracts are enforceable by law. Recourse to the law, however, is not common; when such action is resorted to , it generally s ig n ifie s a breakdown in union-employer relation sh ips. 2 / A separate chapter in th is se rie s (2 :0 2 ) deals in d e ta il with grievance procedures. 2:01 11 Like provisions fo r a rb itra tion , perhaps the prin cip al e ffe c t o f leg a l l i a b i l i t y is that i t encourages voluntary compliance. Other Aspects o f C ollective Bargaining C ollective bargaining rests on a foundation o f respect fo r contracts, fo r the other party, fo r the p ro fita b le continuation o f the business, fo r continued employment and income, and fo r law and order in in du strial l i f e . Yet thousands o f strik es occur each year. Is there a fundamental inconsistency here? The answer, which labor, management, and the Government generally endorse, is that there is not. The strik e or lockout, or the threat o f such a ction , is accepted as an integral part o f c o lle c tiv e bargaining, subject to certain rules o f fa ir conduct la id down by the Government. Lacking the right and the a b ility to s tr ik e , a trade union would indeed be a weak "bargainer" since there would be l i t t l e inducement fo r the employer to work out a settlement. On the other hand, a strik e is a co s tly and serious undertaking fo r most\unions, not to be entered into lig h t ly . Consideration o f strik e action requires a careful evaluation o f possible gains, which are lim ited, against possible losses, which may be unlimited. Strikes capture newspaper headlines and public in terest, and a casual observer o f the American scene might e a s ily be led to overestimate the prevalance o f stop pages. Actually, probably more than 90 percent o f the agreements expiring each year are renegotiated without a work stoppage. Vio lence in labor disputes, highlighted during certain periods in American h istory, has a ll but disappeared, although such incidents s t i l l occur from time to time. In his autobiography (1925), Samuel Gompers wrote, "For years I have been a voice crying in the wilderness when I declared that wage earners had a right to participate in determining con d ition s and standards o f l i f e and work. . . As the years have passed, increasing knowledge o f production and p rin cip les o f human coopera tion have demonstrated that la b o r 's contribution is basic fo r sus tained advance in human betterment and fo r unrestricted progress in production." The modern trade union subscribes to these p rin cip le s. Labor today has a new and more profound in terest in management problems—production, p rodu ctivity, p r o fit s , e t c . This in terest is r e fle c te d , d ir e c tly or in d ir e c tly , in c o lle c tiv e bargain ing and in the day-to-day a c t iv it ie s o f shop stewards and other un ion o f f i c i a l s . The technique o f c o lle c tiv e bargaining, e sp e cia lly where big companies and large numbers o f workers are involved, has become almost a profession , requiring on both sides an intimate knowledge o f the needs o f industry as well as o f workers. 2:01 2:02 Grievance Procedures "Grievance” may be defined as a complaint or expressed d iss a tisfa ctio n by an employee in connection with h is jo b , pay, or other aspects o f his employment. A grievance "procedure" i s usu a lly a formal plan s p e c ifie d in the c o lle c tiv e bargaining agreement which provides opportunity fo r adjustment o f grievances through progressively higher le v e ls o f authority in the company and the un ion , and by arbitration i f necessary. V irtu ally a l l c o lle c tiv e bargaining agreements in the United States now make formal provision fo r the handling o f griev ances. Since the major conditions o f employment, such as wages, hours o f work, overtime pay, e t c ., are fix e d by c o lle c tiv e bargain ing, any individual grievance relatin g to the adequacy o f these general conditions is ty p ic a lly not subject to review through the established grievance procedures. However, the language o f a c o l le c tiv e bargaining agreement can never be so precise as to elim i nate more than one interpretation o f many o f it s provisions; more over, there are many problems that arise or changes that occur which cannot be anticipated or adequately covered in written agreements. Thus, the cause fo r grievances arises out o f the dynamic nature o f in du strial l i f e , plus misunderstandings, v iola tion o f agreement terms, the clash o f p erson a litie s, and other circumstances that surround the in trica te workings o f the employer-employee relationship. A grievance procedure provides the means whereby an em ployee can v o ice , and be assured a f a ir hearing fo r , his complaints about things which occu r, usually a management action, in the dayto-day operations o f the plant where he works. Thus, one o f the basic elements o f sound employer-employee relationships is achieved by the establishment o f such a procedure. Without a p ositiv e pro gram fo r dealing with these complaints, grievances which may be t r iv ia l to begin with have a way o f growing and spreading so that employee morale and production are bound to be a ffected . Many strik es have originated in neglected grievances or in the breakdown o f the grievance procedure. Types o f Grievances The grievance climate in any organization i s strongly in fluenced by the background o f management-union relation sh ips. I f such experience has been d i f f i c u l t , both parties may see each griev ance case as a new cause fo r c o n f l ic t , to be fought to the end in every d e ta il. In those companies in which a considerable measure o f mutual accommodation has been reached, grievances tend to be fewer and settlements ea sier. Under long established relation sh ips, the parties sooner or la ter must decide whether to confine the grievance procedure narrowly to questions o f in terpretation and enforcement o f Cl) 2 the agreement, or to permit consideration o f any dispute or com plaint that may arise whether or not it is s p e c ific a lly covered by the contract. Both approaches are widely used. The numerous causes o f grievances may be c la s s ifie d under one or another o f the follow ing headings: 1. Those which arise under the contract: a. b. c. 2. Over in terpretation. Over c o n flic t between clauses. Over application to s p e c ific cases* Those which arise outside o f the contract: a. b. c. Because the contract is sile n t on the issu e. Because the issue is too unusual to be covered by the contract. Because o f d efective supervision or poor contract administration. The frequency with which the various types o f grievances occur varies widely among companies or from time to time in the same company. Workers9 complaints about actions which have a per sonal impact, such as those a ffe ctin g their pay or their p osition in the company, account fo r most grievances. For example, records o f a large s te e l company indicated a to ta l o f approximately 17,000 formal grievances during an 8-year period; o f these, about 60 per cent dealt with rates o f pay, 15 percent with sen iority issues, 5 percent with hours and overtime, and 20 percent with matters broadly characterized as working conditions. Common causes o f grievances include: Wages The worker fe e ls that he is not getting what he is worth or what his job should command in relation to other jobs. He fe e ls that his incentive rates are too low, or that there has been an error in calcu la tio n o f his earnings. 2:02 3 S eniority He fe e ls that he has been deprived o f a promotion o r la id o f f because his length o f service was not calculated properly, or that his a b ilit ie s have not been given s u ffic ie n t weight, or that he is an o b je ct o f discrim i nation. D iscip lin e He fe e ls that he has been unjustly d is cip lin ed , or that he is being penalized fo r union a c t iv it ie s , or that the penalty is too severe. Other The worker fe e ls that the foreman is playing fa v o r ite s , or that an agreement pro v is io n is being v io la te d , or that rules and regulations are not c le a r ly posted, or that his working area is dangerous or unsanitary. Management may also make use o f grievance procedures to press complaints and to obtain employee cooperation. In some cases tfoere management's right to tra n sfer, d is c ip lin e , or discharge workers is severely re stricte d by agreement with the union, provi sion is made f o r allowing management to bring it s complaint d ir e c tly through the grievance procedure. Where management exercises these rights subject only to appeal by the employee through the grievance procedure, which i s the more general p ra ctice , then management o f course has the opportunity to express it s grievance simply by the act o f tran sferrin g, d is c ip lin in g , or discharging a worker. In a l l situ a tion s, management is obliged to show cause and to defend i t s action as within the terms o f the c o lle c tiv e bargaining agreement. How Grievances Are Handled Once i t i s recognized that employee grievances should be brought in to the open fo r settlement or at least fo r f a i r discussion , a procedure to handle them must be established. The worker must know that a channel e x is ts through which he can be assured a sympa th e tic hearing, without fe a r o f jeopardizing his job because o f h is complaint, and that he can e n lis t the help o f his union to press h is case. This channel must be open a l l the way to the top, whether to an employer or a corporation execu tive, and, i f a l l d is putes are ultim ately to be s e ttle d , to impartial decision i f necessary. 2:02 4 The d eta ils o f grievance procedure vary greatly among companies, depending upon the nature o f the bargaining u n its, past experience in negotiation between the p a rtie s, and p o lic ie s o f em ployers and unions. The s iz e o f the establishment also has a ma t e r ia l bearing on procedural d iffe re n ce s. Where the number o f employees is small, presentation o f a grievance may be made to the owner or manager o f the establishment by the employee him self or by the fu ll-tim e , sala ried business agent o f the union. A high de gree o f inform ality generally e x ists in these smaller organizations; a sequence o f w ell-defin ed steps seldom e x is ts ; and written records are rarely kept. In the larger plan ts, ca re fu lly defined and regulated systems o f appeal steps are generally found. These systems make provisions fo r the p a rticip a tion o f various le v e ls o f union and management re sp o n sib ility . The general pattern o f grievance pro cedure in large plants tends to be as fo llo w s: Step 1 : The union steward and agrieved employee, o r the employee alone, present the complaint to the foreman o f the department Where the employee works. I f no s a tis fa cto ry solu tion i s reached, the grievance goes t o : Step 2 : The union business agent, or the c h ie f plant steward, o r the chairman o f the union grievance committee o f the plant, who presents the case to the next higher supervisor. Follow ing th is , i f settlement is not reached, i s : Step 3: The p la n t's union grievance committee, with the possib le assistance o f a representa tiv e o f the international union, meets with top management o f the plant. The la s t stage o f negotiation may then be: Step 4 : Representatives o f the national o ff ic e o f the union (o r regional or d is t r ic t represen ta tiv e s ) meet with the general o f f i c e r o f the company (e . g . , president, v ice presiden t). I f the dispute remains unresolved at th is point, a f i f t h and fin a l step , a rb itra tion , i s necessary. Quick processing o f grievances is d esirab le. When delays occu r, or excessive s ta llin g or haggling p re v a ils, the foundation o f the procedure i s weakened and the resu lts may be as bad as i f there 2:02 5 had been no fo ra a l procedure, Except in cases involving an im portant p rin cip le or where fa cto rs not n ecessarily related to the sig n ifica n ce o f the s p e c ific grievance (such as intraunion or intracompany p o l it ic s ) are present, unions and management generally striv e to s e t t le grievance disputes at the lowest possible le v e l in the grievance procedure. In th is way, time, money, and tempers are spared. In the s te e l company experience previously referred t o , i t was found that o f the 17,000 grievances submitted to the f i r s t step o f the grievance procedure, 14,800 were carried to the second step , 11,600 to the th ird , and 5,300 to the fourth step. About 2,000 were appealed to a rb itra tion , but many o f these were withdrawn o r otherwise disposed o f before action was taken on them by the a rb itra tor. Only about 1,000 grievances, or 1 in 17, were subject to the a r b itr a to r 's decision . The grievance procedure in th is company is very sim ilar to that outlined above. A 1943 survey o f grievances in a large automobile company showed a greater volume o f grievances than in the s te e l company, but a higher ra tio o f settlement in the early stages o f the proce dure. Of more than 40,000 grievances presented fo r processing in a 15-month period* 45 percent were se ttle d at the f i r s t le v e l and 47 percent at the second. Thus, only about 8 percent o f the griev ances in the automobile company went beyond the second step; o f these, 316, or less than 1 percent, were brought to arbitration . Procedural D etails In large establishments, standard procedures encourage the regular handling o f grievances and tend to remove some o f the cause fo r delay. In addition, they reduce the p o s s ib ility o f con f l i c t i n g d ecision s; esta blish the lim its o f authority at each step o f the procedure; reduce the p o s s ib ility o f argument over fa c t s ; and act as a deterrent to unfounded grievances. As an example o f the way grievances are handled in one large company, the p rovi sion s relatin g to the grievance procedure contained in the c o lle c t iv e bargaining agreement are summarized below. This agreement provides fo r a preliminary discussion o f the grievance by the worker (and his grievance committeeman, i f so desired) with h is foreman, to see i f the grievance can be resolved without the n ecessity o f carrying i t through the more complex stages o f formal grievance procedure. Only 2 days are allowed fo r th is step ; i f grievances are not s e ttle d within that time, they must be prepared f o r formal consideration. This involves the statement o f the grievance in w riting on grievance forms furnished by the company. These forms are dated and signed by the employee and his grievance committeeman and are presented to the foreman fo r action. The 2:02 6 foreman must answer the grievance within 5 days by in sertin g h is decision on the grievance form, over h is signature; i f h is d ecision is not sa tis fa cto ry to the worker, i t may be appealed to Step 2. Under the terms o f the agreement, fa ilu re to appeal the grievance to the next step means that the grievance is s e ttle d and that no further action is necessary. A ll grievances do not go through th is f i r s t step . Griev ances involving workers under more than one foreman nay be f i l e d i n i t i a l l y at a la te r step in the procedure. Grievances which a l lege v iola tion s a ffe c tin g the employees working under a p a rticu lar department superintendent, but under more than one foreman, are f i l e d in Step 2; grievances involving employees working under more than one department superintendent are lis t e d on agenda forms f o r consideration at Step 3 o f the procedure. The second step o f the grievance procedure provides fo r appeal to the department superintendent within 7 days from the date on which the grievance form is returned by the foreman. Seven days are also allowed to the superintendent f o r answer o f the appeal; within that period, the superintendent w ill discuss the grievance with the grievance committeeman. The superintendent*s d ecision w ill also appear on the grievance form, over his signature. I f the grievance is appealed to Step 3, i t i s put on the agenda o f the grievance committee and taken up at i t s next regular monthly meeting with the general superintendent or his representa tiv e s . Either party may c a ll witnesses who are employees o f the company. The grievance may be referred back f o r further considera tion to a p rior step in the procedure. Grievances discussed but not se ttle d at th is meeting must be answered in w riting by the plant management within 10 days a fte r the meeting. Detailed min utes are kept o f these meetings, with a f u l l statement o f each grievance discussed, the arguments presented, and committee and plant manager's fin d in gs. The fourth step o f the procedure provides fo r written n otice o f appeal within 10 days, and consideration o f the grievance by a representative o f the international union and a representative o f the company a fte r the grievance has been reviewed by the d is t r ic t union executive. Witnesses may be ca lle d , and f u l l minutes o f th is meeting are kept. Meetings are held at the e a r lie s t date o f mutual convenience follow in g receipt o f the n otice o f appeal. Decisions must be rendered within 10 days a fte r the meeting, unless another date is agreed upon. 2:02 7 F in a lly , appeal to a rb itra tion is provided i f the griev ance is s t i l l unsettled, t h is appeal must take place within 30 days i f the grievance is not s e ttle d at Step 4 procedure. Both the company and union can u t iliz e the grievance pro cedure, but, in eith er case, tine lim its as set forth in the agreement must be observed. Suspension o f the procedure is provided fo r in a work stoppage, or the procedure may be waived by agreement between the p a rties. Access to the plant by the union's d is t r ic t d ir e c to r , o r the representative o f the union who customarily handles grievances, i s permitted at reasonable times to investigate grievances. Frovision fo r the s e le c tio n and operation o f a union grievance committee, con sistin g o f from 3 to 10 employees o f the p lan t, Is established by the contract. The exact number o f com mitteemen i s mutually determined by the union and the company, A ssistant committeemen may also be designated by the union, not to exceed 1 f o r each 200 employees. A procedure as elaborate as the one outlined above w ill n ecessarily be appropriate only in a very large company. In the small establishment, grievances not immediately se ttle d at the shop le v e l w ill in a l l p rob a b ility be carried to the highest authority at once fo r immediate resolu tion . In between these two extremes l i e a great va riety o f methods. 2:02 2:03 Voluntary Arbitration1 As practiced in the United States, arbitration is a pro cedure viie reby an employer and a union volu n tarily submit issues or grievances, which they have been unable to resolve by mutual agreement, to an impartial person a fin a l and binding solu tion . I t is today a commonly accepted device fo r s e ttlin g grievance d is putes arisin g under the terms o f c o lle c tiv e bargaining agreements. About 90 percent o f a l l agreements contain clauses which provide fo r arbitration as a fin a l step in the grievance procedure. Labor and management have found that th is technique fo r the peaceful settlement o f troublesome disputes y ield s substantial ben efits to both p a rties. On the other hand, the use o f arbitration fo r fix in g contract terms is fa r less common, indeed r e la tiv e ly rare. for The increasing acceptance o f grievance arbitration during the past decade undoubtedly r e fle c ts a growing maturity in c o lle c tiv e bargaining relation sh ips. Wbrking harmony, or at lea st some degree o f union-management accommodation, is necessary fo r favor able acceptance o f the arbitration procedure and fo r it s continua tio n . In the process, each side relinquishes a cherished preroga t iv e : Management surrenders a part o f it s authority to make the fin a l decision s a ffe c tin g the en terprise; the union surrenders the use o f strik e or other action , awaiting a decision which may be to it s disadvantage. A rbitration d iffe r s from other methods o f voluntary d is pute settlem ent, such as mediation or c o n c ilia tio n . Thd mediator or c o n c ilia to r has no power to impose settlement upon the p a rtie s, but can only a ssist them to reach some mutually acceptable compro mise . In contrast, the arbitrator renders a d ecision , generally favorable to one party, which is binding because both parties have agreed i t should be so. The arbitrator serves the p a rties to the agreement under which he operates, not the community at large or h is own concepts o f ju s tic e . He knows that the company and the union must accept his award and liv e with i t ; he re a lize s that any decision that 1 / Compulsory arbitration is not discussed in th is chapter because o f it s lim ited use in the United States. However, statutory provisions fo r compulsory arbitration in certain disputes are found in three S tates: Minnesota, Nebraska, and Pennsylvania. The Minne sota law applies only to employees o f charitable h osp ita ls, while the Nebraska law provides fo r settlement o f unresolved public u t i l it y disputes by a State Court o f Industrial Relations. In a few additional S tates, seizure and operation o f public u t i l i t i e s are provided fo r i f labor disputes threaten to cause a shutdown. 2 cannot be carried into e ffe c t or that might create la stin g d iss a t is fa ctio n would render the Whole process f u t i l e . In grievance d is putes # the arbitrator is generally bound by the terms o f the agree ment &nd the fa c t s as he sees them; previous decision s may also provide a guide. On the other hand, in a rbitratin g contract terms ( e . g ., wage adjustments) the a rb itra tor is usually faced with op posing claim s, c o n flic tin g data, and no mutually acceptable prin c ip le upon which to base an award. A rbitrators, as a group, subscribe to a uniform code o f eth ics concerning th eir relationships to the p a rtie s , but th e ir views as to the purposes and methods o f grievance arbitration d i f fe r widely. Some fe e l that they should take a narrow view o f th eir authority within the scope o f the agreement; others favor a broad view, that i s , they would go beyond the language o f the agreement i f necessary to seek a solu tion which would advance harmony. Some approve o f attempting to mediate a dispute; others claim that medi ation is not the function o f the a rb itra to r. Some lik e informal hearings; others prefer q u a s i-ju d icia l hearings. Some write elab orate d ecision s; others o f f e r b r ie f awards. In many instances, the company and the union together shape the kind o f arbitration they want, but frequently the a rb itra tor has a free hand in some o f the procedural matters. The process o f arbitration n ecessarily involves delay and often substantial costs to both p a rtie s, who ty p ic a lly share the expenses. Such costs include, in addition to the a r b it r a t o r s pay, the time spent in preparing b r ie fs , assembling witnesses, tran scrib ing minutes, e t c . Although these expenses and the delay involved in the process tend to reduce the use o f a rb itra tio n , they also have b e n e fic ia l e ffe c t s in retarding it s abuse (a s , fo r example, in carrying t r i v ia l or friv olou s cases to a d ecision o f a third party) and in providing more o f an incentive fo r union and manage ment to work out th eir disputes peacefully without a rb itra tion . The problem o f securing an arbitrator competent to deal with a p a rticu lar dispute has been p a rtia lly met by the Federal Mediation and C onciliation Service and State agencies Which w ill provide a l i s t o f arbitrators i f requested to do so jo in t ly by management and union. L ists o f a rbitrators may also be obtained from private sources such as the American A rbitration A ssociation. 2/ 2 / The handling o f grievances in the railroad industry is d is cussed in chapter 3:04, Labor-Management Relations in the Railroad Industry. 2:03 3 Grievance A rbitration The aim o f grievance arbitration is to prevent work stoppages which might result in the lo ss o f production and wages. In th is resp ect, the procedure may be considered as an extension o f the in-plant grievance machinery. Even in those companies in which arb itra tion is rarely used, the fa ct that it is available often has a salutary e f f e c t upon the processing o f grievances. The widespread adoption o f arbitration was almost in evitable as grievance negotiation developed into a formal step-bystep procedure. I f the union and management are unable to agree on a solu tion to a problem and have no further recourse, mounting d is s a tis fa c tio n , with the threat o f a stoppage or slowdown to force a settlem ent, w ill be the consequence. In th is connection, i t is important to bear in mind a s ig n ifica n t aspect o f grievance ad justment—a stalemate in grievance dispute settlement means that the employer's actions or views p re v a il. Putting the unresolved dispute before an impartial third party, with both sides bound to accept h is fin d in gs, i s an e n tire ly lo g ic a l means o f elim inating what would otherwise be a source o f endless d i f f ic u l t y . Types or Grievances Brouigit to A rbitration What kinds o f grievances go to arbitration ? What d is p osition is made o f the various types? To throw some lig h t on these questions, the Bureau o f Labor S ta tis tic s made an analysis o f a l l disputes referred to arb itra tion between August 1942 and June 1952 in the 15 plants o f the Bethlehem S teel Go. The United Steelworkers o f American was the union representing the employees throughout th is period. During the period, 2,400 disputes were submitted to a rb itra tion . Of these, more than h a lf were disposed o f p rior to the a r b itr a to r 's d ecision : that i s , more than 1,150 were withdrawn by the union, and about 100 were se ttle d by the p a rtie s. More than 100 cases had not been heard at the end o f the survey period. In a l l , 1,003 cases upon which an a r b itr a to r 's d ecision was rendered were analyzed by the Bureau. Grievances brought to a rb itra tion related to almost every phase o f working conditions and shop re la tio n s.. Wage rate or job c la s s ific a t io n disputes accounted fo r almost h a lf o f the t o ta l number o f disputes acted upon by the a rb itra to r. Included under th is heading were individual worker complaints that wage rates or job c la s s ific a tio n s were eith er not in accordance with plant prac tic e s or with the type o f work being performed. Other complaints in th is category related to premium pay, pay on temporary assign ments, report and ca ll-b a ck pay, and the lik e . 2:03 4 A second major c la s s ific a tio n o f grievances, which ac counted fo r s lig h t ly le ss than one-th ird o f a l l those brought to a rb itra tion , included such items as s e n io rity in la y o ff, promotion, f i l l i n g o f temporary vacancy, e tc . Of a l l grievances brought to a rb itra tion , approximately 20 percent were decided in favor o f the workers involved, 12 per cent were granted in part, and 50 percent were decided in favor o f the company. The remaining 18 percent o f the cases were dismissed by the a rbitrator fo r lack o f ju r is d ic tio n or as untimely, se ttle d by the parties or withdrawn, or were awaiting action at the time o f the study. Mechanics o f Grievance A rbitration Under most agreements, certain conditions must e x is t be fore a case can be brought before an arb itra tor fo r hearing. The p o s s ib ilit y o f reaching agreement through use o f the grievance pro cedure must, f i r s t o f a l l , be exhausted. Second, one party or the other must take steps to appeal the grievance or dispute to arbi tra tion . Since most complaints rest upon the employer*s action (or lack o f a c tio n ), by the very nature o f the grievance procedure the union i s p r a c tic a lly always the party who appeals. Third, the appeal should be made within some d e fin ite time lim it, to remove any cause fo r disagreement as quickly as p o ssib le . The arbitrator may be selected eith er fo r the s p e c ific grievance in question (the ad hoc method) o r he may be named as a permanent umpire, to pass on a l l disputes a risin g during the l i f e o f the c o lle c tiv e bargaining agreement or fo r a s p e c ifie d period o f time, such as a year. Bach system has i t s advantages and d is advantages. Naming o f a permanent umpire elim inates the d i f f ic u l t y o f selectin g an arbitrator fo r each issue. In addition, a perma nent umpire has the advantage o f gaining fa m ilia rity with the con tra ct and with the parties themselves. Because o f his tenure, his s election usually involves carefu l consideration to be sure that he w ill have the confidence o f both p a rties. The ad hoc method usually provides fo r the s e le c tio n o f the arbitrator by mutual agreement from a l i s t jo in t ly prepared by the p a rtie s , or furnished by some outside person or agency, such as the Federal Mediation and C onciliation Service or the American A rbitration A ssociation. This method has the advantage o f being fle x ib le and suitable fo r situ ation s in which arbitration i s in frequently used. However, delays may result because o f d iffic u lt y in the selection o f the a rb itra tor. 2:03 5 Other th ird parties in arbitration may be the "im partial chairman" who i s , in essence, a permanent a rb itra tor, often with a somewhat broader power to preside over the c o lle c tiv e bargaining agreement and i t s observance. In other situ a tion s, grievances are arbitrated by a tr ip a r tite board, composed o f an equal number o f company and union representatives and an impartial chairman. The chairman usually casts the deciding vote. Since the arb itra tor plays such an important role in the maintenance o f good in du strial relation s and since the cases upon which he acts may be o f tremendous importance to the company and the union, both p a rties expect him to be im partial, o f sound judgment, immune to pressure t a c t ic s , and w ell versed in the f i e l d o f labor rela tion s. In addition, i t i s desirable that he be fam iliar with the industry and i t s methods o f operation and wage payment. In general, the arbitrator has ju r is d ic tio n over three types o f issu es: (1 ) Interpretation o f contract clauses, where meanings are obscure or questionable; (2 ) alleged v io la tio n s o f the contract; and in some situ a tion s, (3 ) new issues arisin g during the l i f e o f the contract. Decisions may be based e ith e r on a lib e r a l or a s t r ic t in terpretation o f the agreement language. This gen e r a lly depends upon the attitude o f the arbitrator and the opposing p a rties. A rbitrators, p a rticu la rly those Mho serve as permanent a rb itra tors, acknowledge that some o f the cases they hear are cle a r ly without m erit, brought to arbitration by eith er the company or the union in order to s h ift the burden o f making an unpleasant but obvious decision to someone e ls e 's shoulders, or to try to ob tain a concession denied in agreement negotiation. Since a party to an arb itra tion case rarely concedes the weakness o f i t s p o sitio n , the arb itra tor i s usually compelled to treat each case on it s merits even though he suspects (but rarely knows fo r sure) that one or both sides may not be e n tir e ly in earnest. The A rbitration Hearing. —The f i r s t step in bringing a grievance to a rb itra tion is the stip u la tio n , or submission, gener a lly furnished to the arb itra tor before the hearing, although th is is not essen tia l unless required by the c o lle c tiv e bargaining agree ment. In any case, the a rbitrator w ill want to have a l l o f the in formation contained in the stip u la tio n , which: 1. N otifies the arbitrator o f h is s e le c tio n . 2. States the place o f hearing. 2 :0 3 6 3 ., Defines the issue or issues to be de cided by the a rb itra to r. 4. Sets fo r th the scope o f the a rbitra t o r 's authority (sometimes by quoting the c o l le c t iv e bargaining agreement). 5. May ou tlin e hearing procedures. 6. States how expenses are to be appor tioned between p a rties (u su ally equ ally). Although the grievance or issue being brought to a rb itra tion has gone through the previous steps o f grievance n egotia tion , i t is s t i l l necessary fo r the union and management representatives to prepare th eir cases fo r the arbitration hearing. Usually, each party comes to the hearing equipped with a l l fa ctu a l m aterial con cerning the grievance, and is prepared to present b r ie fs or o ra l arguments to support’ i t s case. The actual hearings are generally held on company prop e rty , although sometimes they are held on neutral ground, such as a h otel conference room or other public p lace. The a rb itra tor con ducts the hearings in a manner to a ffo rd a l l pa rties f u l l oppor tunity to present th eir cases. Hearings have some o f the charac t e r is t ic s o f the proceedings in a court o f law, but are nearly always much more f l e x i b l e , with le s s r ig id rules regarding t e s t i mony. Formal hearings may fin d the pa rties represented by le g a l counsel, a reporter taking verbatim record o f the proceedings, a lib e r a l use o f witnesses, and emphasis on documentary evidence. In informal proceedings, the testimony is o r a l, no permanent record i s kept, »nri less attention i s paid to formal rules o f evidence. As a matter o f hearing procedure, the a rbitrator w ill want to know, f i r s t , what the issue i s , and second, a l l the back ground fa cts which are not in dispute. Before going in to d e ta ils o f the grievance, i t i s h elpfu l to the a rb itra to r fo r each side to present a b r ie f introductory statement summarizing i t s p o sitio n . These statements generally include, in addition to a d e fin itio n o f the issue and a statement o f agreed upon fa c t s , the contract clauses pertinent to the dispute and a lis t in g o f the important arguments n&ich w ill be made. L eg a listic rules o f evidence rarely apply to a rbitration hearings. Testimony ord in a rily includes anything pertinent to the problem under discussion. The s p e c ific types o f evidence needed w ill vary according to the kind o f issue up fo r a rb itra tion . Many 2:03 7 o f the rules and regulations w ritten into union agreements are stated in general terns which an a rbitrator w ill have to in terpret. For example, i t is frequently provided that employees may not be discharged except fo r "good cause.” What is good cause? In pro viding f o r changes in job statu s, contracts frequently c a ll fo r an evaluation o f " s k i l l and a b ilit y ” in such undecisive terras as " r e la t iv e ly or approximately equ al.” The c r it e r ia the arb itra tor uses in making h is decision in such matters, in addition to the fa cts in the case, may include determination o f the intent o f the parties in making the agreement; the past p ra ctice in sim ilar cases; the relationship between the p a rtie s; and analysis o f agreement provisions to determine the most reasonable in terp retation . The p a rties to the dispute w ill be ca lle d upon to provide a l l the available factu al information upon which the a rb itra tor can base his d e cisio n . Each s p e c ific type o f case c a lls fo r it s own kind o f evidence. For example, d iscip lin a ry action may require that the a rb itra tor determine, frequently from c o n flic tin g testimony, whether the employee is not g u ilty or g u ilty as charged, o r p a r tia lly g u ilty and subject to more moderate punishment. In sen iority grievances, the a rb itra tor w ill need accurate information about s en iority dates, work records, and performance and s k i ll o f the individual employee involved. In addition, he w ill want to know how the agreement provision involved in the dispute has been interpreted in the past in the s p e c ific plant. In jo b c la s s ific a tion grievances, the a rb itra tor may need an analysis o f the plant jo b structure, and complete information about the s p e c ific job in question. Once the actual hearing is completed, posthearing b r ie fs may be f i l e d bythe p a rtie s , commenting on the evidence and summing up th e ir p osition . No new evidence may be presented in these b r ie fs , since the opposing party would have no opportunity to re fute i t . The fin a l step, the a rb itra tor. This may many a rbitrators o f f e r an and fa cts in the case and h is d ecision . o f course, is the award or d ecision o f be a simple announcement o f who won, but "opinion" which sets forth the issues the a r b itr a to r 's reasons fo r arriving at Subsequent Use o f D ecisions. —In any p a rticu lar company, and sometimes in an en tire industry, arbitration decision s may come to esta b lish a body o f common law by which future grievances can be resolved. For th is reason, the parties frequently reproduce 2:03 8 the d e cisio n s, eith er in printed or mimeographed form, and make them available to company and union o f f i c i a l s , including foremen and shop stewards. Just as a clea r-cu t contract clause may s e t t le an issue fo r the l i f e o f the agreement, so may an arbitration d ecision on an issue susceptible to precedent remove that issue from dispute so long as the agreement is in fo r c e . It may also pave the way fo r m odification o f a contract clause when the hew agreement is w ritten, i f the parties are not s a t is fie d with the consequences o f the d ecision . Some arbitration decision s are given p u b lic ity , particu la r ly through commercial information s e rv ic e s. Other unions and companies may fin d these h elp fu l in preparing cases fo r arb itra tion hearings, or even in s e ttlin g grievances before they are brought to a rb itra tion . However, since each d ecision i s an in terpretation o f the language o f a s p e c ific contract in a particu lar situ a tion , cau tio n i s needed in th is use. A rbitration o f New Contract Terms In contrast to the widespread acceptance o f grievance ar b itr a tio n , the p ra ctice o f arbitratin g disputes over new contract terms,, e . g . , a demand fo r a wage increase, is r e la tiv e ly uncommon. Certain in d u stries, such as railroads and public u t i l i t i e s , f a l l back on a rb itra tion , when necessary, prim arily because o f the urgent need fo r (and pu blic pressure fo r ) avoiding work stoppages. Wage arbitration has also been resorted to in recent years in the women's apparel industry and in the New England t e x t ile industry, both o f which were faced by extraordinary economic problems. In general, however, managements and unions, eith e r separately or together, are adverse to bringing such issues as wage increases or decreases or other major contract issues to a rb itra tion . H is to r ic a lly , the reluctance to resort to wage a rbitration can be attributed to these fa c to r s , among oth ers: The co sts and delays involved; the nature and inherent weaknesses o f wage arbitra tio n ; the growing strength o f unions in re la tio n to dealing with th eir own memberships as w ell as with management; and the increasing maturity o f c o lle c tiv e bargaining. Many in du stries, fo r example, automobiles, have had l i t t l e or no experience in , or taste f o r , wage a rb itra tion ; other in du stries, such as men's apparel, have had a substantial amount o f experience in wage arbitration but have aban doned th is procedure in favor o f working out th e ir own solu tion s without recourse to a th ird party. 2 :03 9 Perhaps a basic d i f f ic u l t y o f wage arbitration is that the arb itra tor has no established or commonly accepted prin cip les or doctrime to rely upon, as he has in grievance arbitration . How much o f a wage increase or decrease is ju s t ifie d at any particular time? Should the arbitrator take into account—or what weight should he give t o —such fa cto rs as: Changes in the cost o f liv in g , changes in p rod u ctivity, a b ilit y to pay, competitive p osition in the industry, wage le v e l comparisons with other plants in the same industry, comparisons with other industries, sim ilar comparisons in terms o f recent wage adjustments, the liv in g standards o f the workers, future prospects fo r the plant and industry, and other c r it e r ia conmionly o ffe re d by the parties in th eir arguments? Even i f he were expected to consider a l l o f these matters, he would in evitab ly be faced with opposing data and interpretations presented by the participants with varying degrees o f persuasiveness. In the absence o f a fix e d standard o f determination, the scope o f the a r b itr a to r 's d ecision , in a wage increase situ ation , fo r example, l i e s between the union's la st demand and the company*s la st o f f e r , with the midpoint presenting a great attra ction . The parties rea lize th is . Hence, a union, p a rticu la rly a newly es tablished or straggling one, may propose arbitration in the hope o f gaining something and in the knowledge that it has nothing to lo s e , while the company may decline arbitration fo r the opposite reasons. The process has been used at times by some unions faced with the unhappy necessity o f taking a wage reduction or an increase substan tially below the le v e ls attained by other unions. Thus, the onus fo r so unpopular a move can be sh ifte d from the union o f f i c ia ls to the arb itra tor. Sometimes it is the company which needs such an o u tle t. However, as unions grow stronger and more secure, union o f f i c i a l s become better able to take the resp on sib ility fo r a ll d ecision s, including unfavorable ones, in the knowledge that th eir membership w ill support them. They also lik e to receive the cred it fo r a popular gain. Taking into account that some industries, because o f th eir stra teg ic or essen tia l nature, must continue to re ly upon arbitration when required, i t is nonetheless widely acknowledged in the United -States that the infrequent use o f arbitration in contract negotiation i s , on the whole, a sign o f maturity in c o l le c tiv e bargaining relation sh ips. In the absence o f a dependence on a rb itra tion , each side must evaluate it s strength, take the resp on sib ility fo r it s d ecision s, and jo in t ly liv e with the conse quences, whether good or bad. Most companies and unions prefer th is course. 2:03 2:04 Mediation and Conciliation P articipation by a third party in a dispute between management and union in order to bring them together to resolve th eir d ifferen ces is ca lled mediation or c o n c ilia tio n . At present, the terms are generally used interchangeably. A precise d is tin c tion between mediation and c o n c ilia t io n 9 about which even the ex perts disagree, is no longer o f consequence sin ce, in p ractice, one borders upon and merges with the other. There i s , however, a d istin ct differen ce between media tion or co n cilia tio n and arbitration . The arbitrator hears both sides o f a dispute and makes a decision that is binding. The mediator has no power to decide. He brings the parties together to fa c ilit a t e or work out with them a decision which is e s s e n tia lly th eir own. The mediator is generally called into a case under va ri ous circumstances including: (a ) When c o lle c tiv e bargaining has reached an impasse, a seemingly irredu cible number o f issues re mains, and a strik e is a strong p o s s ib ilit y ; (b ) vdien a strik e is in e ffe c t and the problem is to end it as soon as p ossib le. In a l l situ a tion s, an "atmosphere o f c r is is " generally p reva ils. One o f the c h ie f functions o f a mediator, operating in such circum stances, is to keep negotiations going—i . e . , to clear the a ir o f personality fa cto rs and to focus the attention o f the disputants on the issues to be resolved. N ecessarily, the mediator must be recognized as im partial. The mediation o f labor disputes in the United States is prim arily a Government se rv ice , although private persons or agen c ie s may undertake i t i f requested to do so. P ra ctica lly a ll mediation and c o n c ilia tio n is undertaken by the Federal Mediation and C onciliation Service, and sim ilar agencies in some o f the more highly in du strialized c it ie s and S tates. The Mediation Process There is no standardized set o f rules for the process o f bringing the parties to a dispute together and, i f necessary, o f introducing the aid o f a third person into th eir deliberation s. There are, however, certain broad p rin cip les which are useful in the development o f the mediation procedure: 1. Mediation is nearly always requested by one or both parties to the dispute. I f re quested by one party, the mediator generally meets with that party f i r s t . In a jo in t re quest, the mediator may meet with eith er party ( 1) 2 f i r s t . In any case, Meetings are generally held separately before bringing the p a rties together. 2. The mediator must build up a re la tio n ship o f confidence with both p a rtie s. He must obtain the background fa c ts and, i f p o ssib le , determine the p osition o f both p a rties toward concessions or bargaining areas. 3. When the pa rties are ca lle d into jo in t conference, care must be taken to ensure that the time, place, and procedures adopted fo r the meeting represent the best possible choice fo r mediation. 4. The mediator must control the progress o f the mediation process, eith er d ir e c tly or by suggestion. He may propose recesses, arrange fo r new meetings with the p a rties e ith e r sepa ra tely or together, or make suggestions or proposals as to s p e c ific items in dispute. 5. I f an impasse is reached, the media tor may c a ll fo r assistance from higher o f f i c ia ls eith er in h is own service or in the organizations o f the parties to the dispute. 6. F in a lly, i f no agreement seems p o ssi b le , the mediator may privately make h is own contract proposals, or may recommend fa c t fin d in g , submission o f the "best o ffe r " to a vote o f the employees, or a rb itra tion . Again, he may withdraw temporarily and allow the d is pute or strik e to continue u n til he believes progress can be achieved. None o f these p rin cip le s, o f course, t e l l s how the media tor should conduct him self when faced with an actual situ a tion . A ll au th orities agree that successfu l mediation i s based on recognition o f the fa ct that it is an individualized process; how the mediator accomplishes his results is often dependent on the p erson a lities in volved, to be evaluated as the s p e c ific occasion demands. Training beyond the statement o f general p rin cip les is generally based on watching and working with an experienced mediator on actual situ a tio n s , the development o f the proper " f e e l" fo r su ccessfu l proce dures in the conduct o f actual cases, and discussions o f mediation problems and techniques with supervisors and experienced mediators. 2:04 3 The Federal Mediation and C onciliation Service The forerunner to the FMCS, the United States C oncilia tion Service, came into b^ing in 1913 under the terras o f the act which created the U. S. Department o f Labor. This act provided among other things that the Secretary o f Labor should "have the power to act as mediator and to appoint commissioners o f c o n c ilia tion in labor disputes whenever in his judgment the in terests o f in dustrial peace may require it to be done." Then, as now, the service was operated oh a voluntary b a sis. The co n cilia to rs were given no power to coerce the parties to a dispute or any lega l means to enforce th eir recommendations. The Labor Management Relations (Taft-H artley) Act o f 1947 established the FMCS as an independent agency, outside the Depart ment o f Labor, and made some changes in the laws relating to Fed eral mediation designed to link mediation more d ire c tly to the c o lle c tiv e bargaining processes. The act s ta te s, among other things, that "settlem ent o f issues between employers and employees through c o lle c tiv e bargaining may be advanced by making available f u l l and adequate f a c i l i t i e s fo r co n c ilia tio n , mediation, or voluntary ar b itr a tio n ." The act also provides fo r n o tific a tio n by eith er the union or the employer to the other party to the agreement o f intent to request contract m odification or termination. This n o tific a tio n must precede the expiration date o f the contract by at least 60 days. The FMCS is alerted fo r action by another n o tifica tio n at least 30 days before contract expiration, ca llin g attention to the existence o f an unsettled dispute. In p ra ctice , the FMCS moves promptly to o ffe r it s service to mediate disputes, p a rticu la rly i f a dispute involves large numbers o f workers or seriou sly a ffe cts the national economy. FMCS ju r is d ic tio n is lim ited to disputes involv ing a substantial e ffe c t on in terstate commerce, excluding r a il and a ir operations. 1 / During the 1955 f i s c a l year (July 1, 1954-June 30, 1955), the FMCS, according to it s annual report, employed 352 persons, o f idiom 225 were in the mediator cla ss and 127 were c le r ic a l and ad m inistrative employees. Approximately 14,200 cases were closed a fte r being assigned to mediation, 7,100 by formal mediation, 1 / A separate mediation agency, the National Mediation Board, sp ecia lizes in disputes arisin g in railroads and a irlin e s . Employ ees o f these in terstate carriers are covered by a separate labor law, the Railway Labor A ct. (See chapter 3 :0 4 .) 2:04 4 $,800 by informal mediation, and the rest in other ways. Issues appearing in the cases were in order o f th eir importance, wages (by. fa r the most important), vacations and holidays, pensions, insurance and w elfare, hours and overtime, union se cu rity , sen ior it y , and the guaranteed annual wage. The Service reports that the cases presented to i t are now more d i f f i c u l t o f solu tion and require longer p a rticip a tion by the mediators. This is ascribed in part to the fa c t that negotia tion s between large companies and large unions are carried on more exp ertly; although le s s frequent mediation is required, when ne g otia tion s break down the problems fin a lly presented to the media tor are more d i f f i c u l t to resolve. Frequent problems also arise in adapting terms o f larger "patternse11ing" companies to smaller operating u n its. Health, insurance, and pension plans have in tro duced many complex and unfam iliar problems. The Service reports that i t has established a continuing review o f it s p o lic ie s , procedures, and fu nctions, to insure the most e ffe c t iv e possib le assistance in union-management negotiations by: 1. P roffering and providing e ffe c t iv e con c i li a t i o n and mediation services, when such as sistance is necessary to prevent or to minimize labor-management disputes growing out o f the negotiation o f contracts which would substan t i a l l y a ffe c t in tersta te commerce. 2. U tiliz in g the experience and knowledge o f mediators to prevent or minimize disruptive fa cto rs that ex ist before, develop during, or continue a fte r , contract negotiations. 3. Cooperating with mediation agencies o f the various States toward the common goal o f e ffe c t iv e mediation service to labor and management. 4. Inducing the parties to disputes a f fe ctin g in tersta te commerce to seek peaceful means o f s e ttlin g th e ir d ifferen ces through other voluntary measures when they cannot be s e ttle d through c o lle c tiv e bargaining and mediation. 2:04 5 5. Encouraging labor and management to use voluntary arbitration as the fin a l means o f s e ttlin g grievances arising under negoti ated contracts when they cannot be se ttle d through other grievance procedures. In carrying out this program, the Service does not lim it it s a c t iv it ie s to dispute mediation. The s t a f f o f the Service carries on "preventive mediation," described by the Service as fo llo w s : The Labor Management Relations Act, 1947, imposes upon the Service a duty to assist par t ie s to labor disputes in industries a ffe ctin g commerce to s e tt le such disputes in order to prevent, or minimize, the interruption o f free flow o f commerce growing out o f labor disputes. Preventive mediation work can be described simply as the e ffo r t to create a healthie£ la bor climate between labor and management/both generally and/ during the e ffe c t iv e period o f a labor-management contract so that they w ill be /b e t t e r able to liv e together without d is putes and w ill b e / fam iliar with, and be d is posed to use, the grievance adjustment machin ery in the contract to iron out d ifferen ces before work stoppages develop. I t has been, and continues to be, the p o licy o f the Service to have it s mediation s t a f f spend as much time as possible on preventive work when they are not otherwise engaged in th e ir primary duty o f mediation. . . . F inally, the Service a ssists parties to a dispute in selectin g arbitrators who are "experienced, q u a lifie d , e th ic a l, and acceptable." A roster o f approximately 400 a rb itra tors, none o f whom are Government employees, is maintained from which panels are selected fo r submission to parties requesting them. During the 1955 f i s c a l year, 1,316 requests fo r panels o f arbitrators were received. State Mediation Agencies In addition to the services provided by the FMCS, about two-thirds o f the States and T erritories o f the United States have mediation serv ices. About on e-h alf o f these are active and func tion in g; the remainder o f these States have available mediation 2:04 6 services o f one kind or another. As is true o f the FMCS, most o f the State agencies function on a voluntary b a sis, that is , without compulsory powers or enforcement functions. State mediation agencies d iffe r widely in th eir mechanical arrangements, leg a l powers (t o c a ll meetings, summon parties to hearings, e t c . ) , and in the moral and fin a n cia l support which they receive. The most common arrangement is fo r the c o n c ilia tio n serv ice to be a part o f the State labor department. State c o n c ilia to rs frequently have other duties .when not engaged in s e ttlin g disputes. Some States have permanent board members who are paid regular sala r ie s ; others provide individual co n cilia to rs or t r ip a r tite panels as the need a rises. Some States provide labor relation s boards with q u a s i-ju d icia l powers to handle disputes involving union organ ization s or c o lle c tiv e bargaining, with the c o n c ilia tio n service dealing with and lim ited to disputes arisin g over questions o f wages, hours, or working conditions. Other States provide only one agency fo r a l l types o f disputes. Most State agencies take action only at the request o f one or both parties to a dispute. A few State laws provide fo r in vestigation o f disputes involving the public in terest without re quest. I f parties to a dispute volu n tarily agree to have a State board act as a rb itra tor, the law usually sp e cifie d that the awards sh all be binding fo r a sp e cifie d period, usually a year. State agencies are subject to the operation o f Section 8(d)3 o f the Labor Management Relations Act. This se ctio n , in addi tion to providing fo r n o tific a tio n o f the FMCS o f the existance o f a dispute, also provides fo r n o tific a tio n o f o f f i c i a l s o f the State in which the dispute occurs. The New'York State Board o f Mediation represents. an ex ample o f a re la tiv e ly large State agency in operation. The present Board o f Mediation and A rbitration was established in 1937 by an act o f the le g is la tu re , as a successor to e a r lie r boards which had been in operation since 1887. The purpose and function o f the board, as described in the 1937 a ct, are as fo llo w s: It is hereby declared as the public p o licy o f th is State that the best in terests o f the people o f the State are served by the prevention or prompt settlement o f labor disputes; that strik es and lockouts and other forms o f indus t r ia l s t r i f e , regardless where the merits o f the controversy l i e , are forces productive ultim ately o f economic waste; that the in terests and rights 2:04 7 o f the consumers and the people o f the State, while not d irect parties thereto, should a l ways be considered and protected; and that the voluntary mediation o f such disputes under the guidance and supervision o f a governmental agency w ill tend to promote permanent industrial peace and the health, welfare, comfort, and safety o f the people o f the State. . . . At present, the State board consists o f seven members, appointed by the Governor with the advice and consent o f the State Senate. Since board members are not salaried, but are paid on a per diem b a sis, there is l i t t l e p o lit ic a l pressure on th eir appoint ments, with rela tive permanency in membership as a resu lt. This board is now prim arily concerned with policymaking matters. A f u l l time paid s t a f f o f 16 mediators and a 3-person administrative s t a f f handle most o f the cases which come to the board. Board members handle some cases on occasion, p a rticu la rly in those companies in which they have su ccessfu lly settle d e a r lie r disputes. The law under which the board operates provides fo r hear ings, the attendance o f witnesses, the administration o f oaths, taking o f testimony, and receiving o f evidence. The State board receives a 30-day n o tifica tio n o f the existence of a dispute within it s te rr ito ry at the same time as the Federal Mediation and C onciliation Service, under the provisions o f the Labor Management Relations Act. Mediation cases, arisin g from th is n o tific a tio n or from other sources, may be undertaken by request o f employers, unions, or both; or the board may intervene on it s own in it ia t iv e . Union requests account fo r nearly 70 percent o f the cases. Mediators are assigned to s p e c ific areas and work under the direction o f a supervising labor mediator. Within the areas, cases are sometimes assigned at random; i . e . , to the mediator with the f i r s t vacant place on his schedule. For some cases, s p e c ia lis ts with experience in certain industries or on s p e c ific issues may be selected . I f a mediator f a i l s to s e tt le a dispute, another mediator may be assigned i f the case is important enough to warrant i t . In New York City, 6 fu ll-tim e mediators are given 2 disputes a day as th eir caseload. In upstate areas, e sp e cia lly where more travel is involved, the caseload is smaller. In addition to mediation and co n cilia tio n se rv ice s, the board acts as an agency to name an arb itra tor, usually when a c o l le c tiv e agreement provides that it should undertake that function. 2:04 2:05 Union Adjustment to Technological Change Change is a dominant ch a ra cteristic o f American indus t r i a l l i f e . To survive and to prosper, business establishments must adjust to changing technology, produ ctivity, products, demand, and other fa c to r s . Wage earners are d ir e c tly and quickly a ffected by these adjustments through changes in employment, hours and weeks o f work, s k i l l requirements, wages, working conditions, job secu rity , and union secu rity . In the long run, these adjustments a ffe c t work e rs' standards o f liv in g , work, and le isu re . Technological change may be defined, in a narrow sense, as the development and use o f new machines and methods to increase produ ctivity. A broader d e fin itio n would include changes in ma te r ia ls and products, u tiliz a tio n o f m aterials, management and en gineering techniques, and the lik e , which result in greater e f f i ciency. Wage earners in organized establishments expect th eir unions to represent th eir in terests in the more d ire ct impact o f tech n ological, managerial, or other business changes. On a day-to-day basis, such protection is afforded by wage rate adjustments, written and unwritten shop rules, guarantees o f various types, sen iority rules, premium pay p ra ctice s, supple mentary unemployment compensation, grievance procedures, and other p ra ctices. Over a longer term or during periods o f rapid change, however, such protective devices may be inadequate fo r the task o f easing worker adjustments and other solu tion s may be sought and de veloped, at least in part, through c o lle c tiv e bargaining. The extent to which technological change may cause tem porary or permanent displacement o f workers, a ffe c t liv in g standards, or a lter working conditions, depends upon a number o f fa c to r s . These include the capacity o f the Nation to absorb more goods, the availa b i l i t y o f other job opportunities fo r displaced workers, the mobil it y o f labor, the emergence o f new in dustries, retraining opportu n ities, and other fa ctors a ffe c tin g product and labor markets. High lev els o f employment and continuing improvements in liv in g standards in the United States since the end o f World War II attest to the a b ility o f management and labor to adjust t o , and derive ben efits from, a rapidly advancing technology. However, workers and their unions remain alert to the threat o f unemployment and seek to erect safeguards against th is p o s s ib ilit y . Union Attitudes Trade union attitudes toward technological change, which now generally accept the in e v ita b ility o f change and the ben efits to be derived therefrom, represent an evolution away from fear and resistance. Resistance to change, s t i l l often the f i r s t impulse on ( 1) 2 the part o f union members, is increasingly recognized as a fu t ile p o lic y or as a more perilous venture fo r the union than adapting to the new situ ation and seeking a compromise solu tion to the problems posed. H is to r ic a lly , unions, pa rticu larly those representing craftsmen, had good reason to fea r technological displacement. The hand cigarmakers, fo r example, were displaced by a combination o f new machinery and a fa llin g market fo r th eir product as cigarettes became more popular. Musicians in theater orchestras were thrown out o f work by talking pictu res. Glassmakers, hand typesetters, and other craftsmen experienced a declining demand fo r th eir serv ices and had to turn to other occupations, usually with lower s k i l l requirements. Hence, unions o f craftsmen sometimes tended to r e sis t changes which mi^it render established s k ills obsolete or cu rta il demand fo r th eir s k i lls . The change in union attitudes in recent decades was brought about or conditioned by several important developments. In the f i r s t place, the American economy has been expanding at a re la tiv e ly rapid rate, thereby allowing substantial scope fo r adjustment. The growth o f in du strial unions, the broadening o f the ju r is d ic tio n o f cra ft unions, and the increased strength o f the labor movement as a whole provided a firm basis fo r coping with change and fo r seeking a share o f the gains resulting from increased produ ctivity. The strengthened fa ith o f the American people in technological prog ress, buttressed by high employment and risin g standards o f liv in g , was a s ig n ifica n t environmental influence. A ll o f these fa ctors encouraged the adjustment to tech nological change, with the p rovi sion that workers share adequately in the ben efits o f industrial progress. At the present time, with automation in the o ffin g , re sponsible trade union leaders emphasize the right o f workers to share in the- rewards o f the new technology (in higher pay, shorter hours, and other b en efits) and the need to a s s is t, through c o lle c tiv e bargaining and le g is la t io n , workers who may lose th eir s k i ll and th eir job s. The problems accompanying a far-reaching alteration o f production and processing techniques are not glossed over, but outright opposition to change, even o f the magnitude promised by the exponents o f automation, is rare. George Meany, president o f the AFL-CIO, in a statement accompanying an AFL-CIO pamphlet Labor Looks at Automation, wrote: This is a time o f remarkable technical progress. S ign ifican t new types o f automatic 2:05 3 machines and methods—symbolized by the term "autom ation"--are being put to use rapidly and widely. Labor welcomes these technological changes. The new techniques o ffe r promise o f higher liv in g standards fo r a l l , greater le isu re , and more pleasant working conditions. Yet, there are p i t f a lls as well as promises in the new technology. There is no automatic guarantee that the p oten tia l benefits to society w ill be transformed into r e a lity . It is not ch a ra cteristic o f the trade union movement to s it back and le t the future take care o f i t s e l f . Labor unions can be ex pected to raise with employers the problems created by the new technology. The c o lle c tiv e bargaining process must be u tiliz e d to work out the necessary arrangements fo r introducing the new machinery and equipment, fo r reviewing the wage structure and job c la s s ific a tio n s that might be a ffe cte d , and fo r making certain that the ben efits flowing from the new technology are shared fu lly with the workers. At the national le v e l the new technology raises questions o f a d iffe re n t character. While the new machines are almost human in the way they solve problems o f production, they s t i l l cannot create the necessary income to purchase their additional output. There is no value to new machinery which lie s id le for lack o f s u ffic ie n t purchasing power in the hands o f consumers to buy the products o f the machine. Laoor w ill continue to press fo r an expanding national economy with s u ffic ie n t income in the hands o f consumers to purchase the increasing output o f American industry. The trade union movement does not pretend to know a l l the answers to the questions raised by the new technology. We are confident, how ever, that a ll groups in our s o cie ty —manage ment and Government as well as labor—want to find the solu tion to these issues. 2:05 4 John L. Lewis, president o f the u n a ffilia te d United Mine Workers, in a statement o f the attitude o f that union, said: . . . I f an automatic or semiautomatic machine can be harnessed to use energy and do the work o f human hands, I think i t ’ s a ju s t i fia b le enterprise that makes it s own contribu tion to the standards and the culture and the happiness o f the population. I f , in addition, the u tiliz a tio n o f energy and machinery, new formulas, improved techniques, can be made to become an economic advantage in lowering cost o f production. . . then i t , indeed, becomes not merely an opportunity but an o b lig a tion . That's been the premise upon which the United Mine Workers o f America has stood . . . that, in return fo r encouraging modernization, . . . the union would in sist on a clear p a r t ic i pation in the advantage o f the machine and the improved techniques. On the whole, management and labor spokesmen are in sub sta n tia l agreement on the competitive or economic need fo r change, the general b e n e ficia l e ffe c t s o f advancing technology, and the need to share the gains. There remains, however, disagreement on methods, safeguards, shares, e t c ., which forms much o f the substance o f c o l le c tiv e bargaining. At the plant le v e l, tra d ition a l worker sus p icion o f management techniques and changes, tfiich undoubtedly varies widely among companies, has given way, in part at le a st, tQ c o n fi dence in grievance procedures, in the increasing a b ilit y o f unions to deal d ir e c tly with in dustrial engineering and job change problems, and in the prospect o f higher wages. C ollective Bargaining Provisions Adjustment to tech nological changes under c o lle c t iv e bar gaining takes many forms, e x p lic it and im p licit. For example, the agreement may make no mention o f technological or managerial changes or the process o f adjusting to change as such, but the establishment o f a grievance and arbitration procedure, which is almost universal, and the regular negotiations over wage rates and fringe b e n e fits, take into account, or are based upon, actual or potential changes. Many employers and unions, on the other hand, have negotiated agree ments with provisions dealing s p e c ific a lly with some aspects o f change. 2:05 5 The U. S. Department o f Labor's Bureau o f Labor S ta tis t ic s examined 1,410 c o lle c tiv e bargaining agreements in e ffe c t in 1953 fo r s p e c ific references to the introduction or use o f new machines or methods and the workers a ffe cte d by these changes. These agreements were selected as representative o f a l l in dustries, including some in which technological change was not an immediate prospect or problem. Most agreements (928) contained no e x p lic it reference to the introduction or use o f new machines or methods. In 330 agree ments , management s p e c ific a lly retained the right to introduce changes in machines and methods as circumstances warranted. For example, a s te e l agreement provided: The management o f the plants and the d i rection o f the working forces and the opera tion s at the plants, including. . .the sched uling o f work and the con trol and regulation o f the use o f a l l equipment and other property o f the company, are the exclusive functions o f the management . . . From a meatpacking agreement: The management o f the plants and the d i rection o f the working fo r c e s, including the right to . . . determine the products to be handled, produced, or manufactured, the sched ules and standards o f production and methods, processes and the means o f production or han d lin g , schedule o f working hours, and opera tions to be contracted or subcontracted, is vested exclu sively in the company, subject only to such r e strictio n s governing the exercise o f these rights as are expressly provided in th is agreement. In 31 agreements, pledges o f union cooperation in the in troduction o f new techniques were written into the contracts. For example, an agreement covering a carpet manufacturing plant: The union agrees that, so long as work loads are within the capacity o f am average em ployee and are not detrimental to the health o f employee, it w ill not obstru ct, or allow it s members to obstru ct, any e ffic ie n c ie s in produc tion which the company desires to in s ta ll. Such 2:05 6 workload changes ,w ill f i r s t be discussed with the union before being put into e ffe c t . In 206 agreements, the unions pledged cooperation in maintaining or increasing production, a position which can reason ably be interpreted as one which allows management substantial scope in the introduction o f new techniques. For example: The union recognizes that a high le v e l o f wages can be maintained only by maintaining a high lev el o f produ ctivity. The union and it s members w ill cooperate in attaining such a le v e l o f production! as is consistent with the health and welfare o f the employees. The un ion and it s members w ill seek to assist in e f fectuatin g economies and the u tiliz a tio n o f improved methods and machinery. . . . In only 10 o f the 1,410 agreements was reference made to a r e strictio n or prohibition o f new machinery or methods, in general or in particu lar. Just as most agreements had no provision e x p lic it ly cov ering the introduction or use o f new machines or methods, most agreements (935) also contained no provision directed s p e c ific a lly to the treatment o f workers a ffe cte d by changes in machinery or methods. The prin cipal method o f handling th is problem, found in 434 agreements, was a provision allowing the union to participate in settin g or reviewing wage rates and/or workloads on new or changed job s, as in the follow ing example: I f an operation is so substan tially changed that a new job c la s s ific a tio n is ju s t ifie d , or a new job is created which requires a new c la s s i fic a tio n , such c la s s ific a tio n and the rates to apply w ill be negotiated between the company and the union. In 47 agreements, the union was to be n o tifie d or consul ted before changes were made, e. g . : The company may, from time to time, fin d i t necessary or desirable to make changes in equipment, operations, the organization o f work or the duties or q u a lifica tio n s required fo r any job. . . . In cases where such revision 2:05 7 is necessary, the company w ill furnish to the union copies o f such revised s p e cifica tio n s and/or charts and w iil discuss them with the union i f so requested. . . . A clause providing that changes were not to result in a reduction o f earnings fo r the workers immediately a ffected appeared in 27 agreements. For example: I f during the l i f e o f the agreement there are changes in processes, operations, machines, or changes in the method o f wage payment, due consideration sh all be given to such changes so that the employees a ffe cte d sh a ll be able, fo r fa ith fu l work under the new conditions, to earn at least thei£ previous earnings, with the same expenditure o f time, s k i l l , or e ffo r t as under the displaced methods or processes. Job protection was s p e c ific a lly provided fo r in 35 agree ments, aS in the follow ing example: When an employee is permanently displaced by the elim ination o f a job because o f a tech n ologica l change in equipment, method or pro cess, the company w ill endeavor to provide a transfer to another jo b . Or, the employee may, at his option, e le c t to immediately receive tech nological displacement compensation. The above clause also illu s tr a te s the practice o f provid ing a separation allowance fo r tech n ologica lly displaced workers, found in 16 o f the 1,410 agreements studied. Adjusting to Change—S p ecific Examples In the f a l l o f 19)52, the Bureau o f Labor S ta tis tic s made a study o f three plants in thg la d ie s ' garment industry to determine the attitudes o f , and methods used by, management and labor in the introduction o f new machinery. A ll plants were organized by the International Ladies' Garment Workers' Union. The survey found that both workers and management p rofited from new machinery introduced with the understanding and pa rticip a tion o f the union. Adjustments were su ccessfu l, according to information developed in interviews with o f f i c i a l s o f the companies and union lo c a ls involved, because the in terests o f the workers, the union, and management were har moniously recon ciled to the change. Common p ractices were follow ed, 2:05 8 although they were not form alized in the union's agreement with any o f the three companies. F ir s t, management gave advance n otice to appropriate union o f f i c i a l s and, in most instances, also d ir e c t ly to the employees involved. In addition, changes were given at lea st an 8 weeks' t r i a l during which workers' earnings were main tained under a rather general clause in the agreement designed to cover a l l kinds o f changes in work assignments. Management in th is industry in general accepts th e -p o licy o f sharing produ ctivity problems with the union. The union takes an active in terest in promoting sound business conditions in the industry; i t employs engineers who a s s is t individual plants in solvin g operational problems; and i t generally favors technological changes which increase p rod u ctivity, provided they are introduced in orderly fashion. In supporting such changes, the union encour ages plants to expand output wherever possible to f a c i lit a t e the absorption o f displaced workers and to increase to ta l employment. The International Typographical Union has adopted a p o lic y o f providing information on new methods and training i t s members to take over the new processes in the industry. In a bul le t in issued in 1954, the union stated that the introduction o f photographic composing iaachines was a d e fin ite threat to union mem bers, since i t displaced the hot-metal process with which they were fa m ilia r. Members were urged to enter upon retraining programs to acquire the s k i lls and techniques needed fo r the new method in order to keep th eir jo b s , and to enable the union to p rotect i t s in terests and retain ju r is d ic tio n over the composing process. The Bakery and Confectionery Workers Union has urged it s lo c a l unions to in sert a clause in their contracts to protect workers in the industry against lo ss o f employment or pay by reason o f changes in machinery or methods o f production. According to the union president, the union has always supported the introduction o f mechanical methods Which increase p rodu ctivity. At the same time, i t is concerned with "the consequences o f the machines* influence on the in d iv id u a l," and believes that the b en efits o f mechanization should be shared by management with workers and consumers. 2:05 2:06 Sharing Productivity Gains Through Collective Bargaining A fundamental b e l ie f shared by management and unions in the United States is that the standard o f liv in g o f the people, as measured by the quality and quantity o f goods and services availa ble to a l l , depends la rgely upon the produ ctivity o f the N ation's farms, fa c t o r ie s , and labor fo r c e . It is also widely recognized that the long-term gains in real wages (wages in terms o f what they can buy), the shortening o f the workday and workweek, the improve ments in working conditions, the extra ben efits such as pension and insurance p rotection provided to workers, and annual paid vacations were made p ossib le, in large part at le a s t, by risin g produ ctivity. Yet, with re la tiv e ly few exceptions, there is l i t t l e agreement be tween management and unions in c o lle c tiv e bargaining sessions as to how to measure productivity gains and, i f measured, how to reckon with these gains in terms o f wage adjustments. Although managements and unions may not come to a meeting o f minds on how to share productivity gains, th eir wage settlements frequently have a basis in real productivity changes—whether in the company involved, in other companies, or in the economy as a whole— or in the general b e lie fs o f the pa rties regarding the continuous sharing o f produ ctivity gains. Union Attitudes Over the past 75 years, the American labor movement has con sisten tly viewed risin g produ ctivity as a source o f improvement in the wage earner's standard o f liv in g , with these improvements to be obtained p rin cip a lly through the process o f c o lle c tiv e bargaining. When Samuel Gompers, f i r s t president o f the American Federation o f Labor and fo r 40 years a dominant figure in the labor movement, was asked what the labor movement wanted, he answered, "More." George Meany, now president o f the AFL-CIO, recently an swered this same question in the same way: " I f by a better standard o f liv in g we mean not only more money but more leisu re and a richer cultural l i f e , the answer remains, "More." The economic reasoning upon which trade unions currently base th eir demands fo r "more" has been Succinctly stated as follow s: P roductivity increases create a rise in output, with the same or fewer mem-hours o f work. The increase in productivity arises from the contributions o f many groups— including workers, management, and the Nation's accumula tion o f technical knowledge. ( 1) 2 Who is to receive the fr u its o f rising out put per man-hour—industry, workers, consumers or a combination o f the three groups? How are the ben efits o f increasing productivity to be shared? When risin g produ ctivity reduces produc tion costs $1 an hour—by increasing the output produced in an hour—business can share such ben efits with other groups in the economy. Failure by business to share the fr u its o f indus t r ia l progress with other groups can create economic d isto rtio n s—excessively high p r o fits and in s u fficie n t consumer buying power—that makes f u l l employment impossible in the long run. Through trade union strength and c o lle c tiv e bargaining, however, wage and salary earners can obtain a share o f the ben efits o f in dustrial progress—thereby helping to improve the buying power o f many m illions o f fam ilies and bolsterin g the economy's mass consumption base. * * * Wage and salary increases, based on in creasing produ ctivity, need not result in an in fla tion ary price le v e l. On the contrary, there is s u ffic ie n t room fo r some price reduc tion s, since la b o r 's share o f the benefits o f in dustrial progress takes on ly.a part o f the savings to business arising from lower unit production co sts . * * * The workers' share in industrial progress should not be lim ited to productivity increases in a plant or in a company. Productivity is a ffe cte d by many fa ctors outside the plant or company—by the Nation's s c ie n t ific development, education o f the labor fo r c e , competition among industries. Workers should r ig h tfu lly share adequately in the ben efits o f the increased pro d u ctiv ity o f the national economy as a whole * 2:06 ★ ★ 3 Unions recognize and accept the fa ct that th eir wage demands often prod management to introduce technological improve ments, in stitu te more e ff ic ie n t methods, and improve training and supervision. Thus, the labor movement’ s b e lie f in the ben efits o f a rising le v e l o f productivity is not lim ited to the expecta tio n or demand that workers share in past gains. Management Attitudes As a group, employers also generally believe that workers should share in produ ctivity gains, but many tend to support the theory that workers would fare better i f these gains were d is t r ib uted mainly in the form o f lower p rice s. In th is manner, i t is reasoned, gains in real income would be distribu ted among a l l people and would not accrue to ju st one segment o f the population. With exceptions, notably the major automobile and farm machinery manu fa ctu rers, management generally questions the d e s ir a b ility o f a n tic ipating productivity increases o f a s p e c ific amount and h esitates to accept a formula governing wage adjustments. The attitude o f the National A ssociation o f Manufacturers, a large employers’ organization, toward sharing productivity gains with workers has been expressed, in part, as follow s: Productivity is one, but only one, o f the economic fo rce s which enter into the process by which wages are s e t. . . . * * * . . . Confusion e x ists as to what re la tio n ship ought to hold between productivity and wages, as well as to whether that desired re lationship has in fact been maintained. Any analysis o f the economic connection between wages and produ ctivity is complicated by the fa ct that money wages are a ffe cte d by many other fa ctors besides labor produ ctivity. Money wages are a p r ic e . As such they are related to other types o f prices and they are subject to the impact o f the same economic forces as the price o f goods. The c h ie f basic determinants o f the general le v e l o f p rice s— wages as w ell as other p rice s—are monetary and f i s c a l in character. 2:06 4 The same thought can be put in th is way: The basis fo r the argument that real wages should increase in proportion to increases in produ ctivity is the proposition that, unless th is happens, labor’ s percentage share o f the national income w ill d eclin e. With proper q u a lifica tion s th is is a correct proposition and can be demonstrated very c le a r ly . I f produc t iv it y increases and wage rates are le f t un changed, labor costs per unit o f output w ill d eclin e. Unless p rices are reduced, then labor w ill receive a smaller share o f the fin a l pur chaser's d o lla r . I f labor’ s percentage share is to remain unchanged, eith er money wages w ill have to be increased or the price o f the product w ill have to be reduced. Either o f these events w ill increase real wages. During the past 22 years—through the boom o f 1929, the depression and partial recovery, the war and the reconversion, the postwar boom and in fla tio n —the employee's share o f the t o ta l proceeds o f business output has remained almost constant. The figu res show that the share o f the ultimate purchaser's d o lla r going to labor has remained at about on e-h alf. The remaining h a lf goes fo r taxes, depreciation allowances, rents, ro y a ltie s , in te re st, and p r o fit . . . . Thus, on the test o f the d istrib u tio n o f economic proceeds, real wages must have risen proportionately with increases in produ ctivity. It is sig n ifica n t that in most o f this period there was no 'n a tion a l wage p o lic y ' set by any central authority. The resu lt was the outcome o f natural economic processes. This backward look reminds us that natural fo rce s have a n otalways-appreciated capacity fo r bringing about desired resu lts. Wage.Adjustment Based on Overall Level o f P roductivity Advances in national produ ctivity or Ihe general state o f the economy have long been a fa cto r in major c o lle c tiv e bargaining situation s although not always recognized e x p lic it ly at the bargain ing table. However, the 2 -year agreement negotiated in 1948 by the General Motors Corp. and the United Automobile Workers was the f i r s t agreement o f sig n ifica n ce to esta blish a d e fin ite formula relatin g 2:06 5 wage increases to general productivity increases. This agreement provided fo r an annual increase o f 3 cents an hour (termed an "an nual improvement fa c t o r ") to be added to the base rate o f each wage c la s s ific a tio n fo r the duration o f the agreement. 1 / Its purpose was to assure the worker that the buying power o f his hour o f work would increase as the Nation’ s in du strial e ffic ie n c y improved. Also included in the agreement was a provision fo r auto matic c o s t -o f-liv in g wage adjustments at 3-month in tervals, based on changes in the Bureau o f Labor S t a t is t ic s ’ Consumer Price Index, which would maintain the purchasing power o f an hour o f work. The expectation that the annual-improvement fa cto r em bodied in the 1948 General Motors-UAW agreement would be immediately adopted by many other companies and unions was not borne out at that time. This did not necessarily mean, however, that the p rin cip le o f providing wage earners.with a share o f the ben efits resulting from increased produ ctivity was not widely accepted. The General Motors 2-year agreement and the agreements negotiated by other large concerns and unions during 1948 d iffe re d b a s ica lly in one respect: The former agreement waived a ll wage-determining fa ctors other than productivity and the cost o f liv in g , whereas other agreements l e f t the f i e ld open, so fa r as annual bargaining was concerned, to these and other considerations. In 1950, General Motors and the UAW renewed th e ir agree ment fo r a 5-year period and increased the annual improvement fa c tor from 3 cents to 4 cents an hour. Shortly a fte r th is agreement was signed, Charles £. Wilson, then president o f General Motors, explained that the 4-cent improvement fa cto r represented approxi mately 2§ percent o f the average hourly rate o f General Motors* workers. Mr. Wilson said , "Many'people think i t was arrived at based on what, we expect or can achieve in General Motors (but) this is not so. . . . The 2^-percent annual-improvement fa cto r is some what le s s than the N ation's manufacturers have been able to achieve on the average in the la st 50 years. . . . In addition, in 50 years, the standard workweek has been reduced from 60 hours to 40. . . . 1 / The clause read: "The annual-improvement fa cto r pro vided herein recognizes that a continuing improvement in the' standard o f liv in g o f employees depends upon tech nological progress, better to o ls , methods, processes and equipment, and a cooperative attitude on the part o f a l l parties in such progress. It further recognizes the p rin cip le that to produce more with the same amount o f human e ffo r t is a sound economic and s o c ia l o b je c t iv e ." 2:06 6 We in General Motors have subscribed to what we think is the aver age o f what the country can do. Of course, we hope to do better ourselves and, in addition to raising real wages, continue our p o licy o f improving our products and reducing our p r ic e s .” The annual-improvement fa cto r attracted a wider follow in g a fte r the 1950 revision . Altogether about 1,250,000 workers, mostly in the automobile, farm machinery, and other metalworking in dustries, were covered within a short time by agreements providing fo r auto matic annual increases. By mid-1957, the number had increased to more than 5,000,000. The annual increase s p e c ifie d in the General Motors contract and in other automobile agreements was raised to 5 cents an hour in 1953, and to 6 cents or 2§ percent o f base pay in the 3-year agreements negotiated in 1955. 2 / The real sign ifica n ce o f the General Motors experiment is not measured s o le ly by the number o f agreements that e x p lic it ly followed th is example but by the extent to which the concept o f raising wages in lin e with advancing productivity has spread in c o lle c tiv e bargaining, in economic thinking and planning, in wage arbitration , and in minimum wage le g is la tio n . The foundation upon which th is concept rests is , simply, the prevailing expectation that the upward trend in the produ ctivity o f the economy w ill continue. Wage Adjustments Based on Plant or Company Experience The rate o f produ ctivity increase varies greatly among companies and in dustries. During recent years, some unions have placed increasing emphasis on obtaining wage increases based on produ ctivity changes in individual companies, and undoubtedly the word produ ctivity is used more and more around the bargaining table. However, employer ob jection s to basing wage adjustments on short term produ ctivity changes in s p e c ific plants and the d i f f ic u l t i e s encountered in measuring such changes appear to have prevented the negotiation o f wage increases based p recisely on produ ctivity increases. Nonetheless, the general p rin ciple o f sharing produ ctivity gains prevails. The mutual acceptance o f the relationship between increasing a company’ s produ ctivity and obtaining wage increases and other economic ben efits is sometimes expressed in the c o lle c tiv e bar gaining agreement as a statement o f p rin cip le , as in the follow ing examples: 2 / See chapter 3:01, Labor-Management Relations in the Auto mobile Industry. 2:06 7 From an agreement fo r a glass manufacturing plant— Recognizing that the welfare o f it s em ployees and th eir opportunities to earn a liv in g depend upon the success and prosperity o f the company and further recognizing that the various wage increases provided fo r in this agreement are o f a substantial nature, the union hereby pledges for i t s e l f and a l l 'i t s members—the em ployees o f the company—that they w ill perform th eir work e ffe c t iv e ly aitd e ff ic ie n t ly to the best o f th eir a b ilit y , and w ill cooperate in the introduction or in sta lla tio n o f such pro cesses, machinery, changes in or introduction o f new methods o f operation, incentive pay plans or systems, and job c la s s ific a tio n and evalua tion plans or systems as the company may in tro duce or put into e ffe c t fo r the purpose o f bet ter and more e ffic ie n t operation to the end that the company may increase production and reduce,costs so that the company may adequately meet competitive conditions and maintain employment. From an agreement fo r a metalworking plant— The union also recognizes that.the company can provide steady employment and good working conditions only by manufacturing products o f the highest quality with the greatest possible e ffic ie n c y . Therefore, the union agrees to support the company's e ffo r t s to assure a fu ll day's work on the part o f employees i t represents, to oppose poor attendance, scrap and other p ractices which r e s tr ic t production, and to strengthen the good w ill between the company, it s employees, it s customers, and the community. Wage Incentive Systems In the short run, or between contract renegotiations, an immediate method by which workers in some plants share productivity gains resu lting from increased e ffo r t rather than new machinery is through the operation o f an incentive wage system that relates the worker's pay d ire c tly to his output—that i s , the more he produces, the more he earns. I f the worker is assured that a sustained high le v e l o f e ffo r t w ill not lead to a reduction in rates, he has an 2:06 8 incentive to increase his e ffo r t and output and thus his earnings. Such assurances, however, have not always been provided. Some in dustries, such as apparel and t e x t ile s , make ex tensive use o f incentive methods o f wage payment. In other indus t r ie s , including automobiles, chemicals, and petroleum refin in g, the practice is rare. A great deal depends, o f course, on the nature o f the industry or type o f productive process as w ell as the attitude o f the employer and the workers. H isto rica lly , some trade unions in the United States have objected to the in s ta lla tio n o f incentive methods o f wage payment and have gone on strik e , adopted lim itation s in output, or used other means to defeat the purpose fo r which such systems were in sta lle d . In general, much o f th is opposition stemmed from previous experience with rate cutting and the "speedup.” On the other hand, incentive systems have received union approval and even encouragement when the unions had confidence in the fairness o f the systems, and could depend on good administration and p a rticip a tion . Unions which now accept- incentive methods o f pay, with appropriate safeguards against abuse, may s t i l l fe e l that certain basic shortcomings e x ist in the techniques o f ratesetting and work measurement. Employers generally favor the lo g ic behind incentive wage plans. These pians, designed to make maximum use o f an in d iv id u a l's a b ilit y and to reward him accordingly, appeal to employers because they assure r e la tiv e ly stable unit labor costs and promote e ffic ie n c y . Many employers oppose attempts on the part o f trade unions to par tic ip a te in p o lic y decisions a ffe ctin g the in s ta lla tio n o f incen tiv e plans, the conversion o f particu lar jobs to in cen tive, and the establishment o f incentive rates. On the other hand, many employers are glad to accept union pa rticip a tion and advice. 2:06 2:07 Union-Management Cooperation Union-management cooperation in the United States is generally defined as jo in t action , usually formal in nature, in areas o f mutual in terest beyond the issues o f wages, hours, working conditions, and grievances, which normally come within the scope o f c o lle c tiv e bargaining. The employer and the union authorized to represent his employees are required by law to bargain in good fa ith , a process which necessarily implies a cooperative a ttitu de, but the type o f union-management cooperation defined above, and with which th is chapter deals, is en tire ly voluntary. Under normal circumstances, unions, except by in v ita tion , do not participate in the area o f management problems excluded from the written agree ment. Likewise, management cannot e n lis t union pa rticip a tion in such problems i f the union is unwilling. Obviously, union-management cooperation must be based on harmonious c o lle c tiv e bargaining relation sh ips. Only a fte r this stage has been achieved is i t possible to extend the sphere o f jo in t action into new areas o f cooperation. Cooperation does not imply the absence o f m ilitancy on either sid e ; rather, i t s ig n ifie s mutual respect and recognition o f the interdependence o f major goals. Often, cooperation is the only means available to organized plants to meet the competition o f nonunion plants, or fo r a company to re main in business. There is , o f course, no guarantee that coopera tion w ill succeed; plans have fa ile d or have ended in controversy. A cooperative venture may be established fo r a sin gle purpose or fo r various types o f problems. Among the types o f prob lems to which union-management cooperation has been directed are: Plant e ffic ie n c y Waste Introduction o f new machines Safety Absenteeism Training Time study and job evaluation Product design Work sim p lifica tion A v a ila b ility o f work ing capital Sales stimulation L egislation Excessive overhead costs Factory layout S ocial a c t iv it ie s and recreation Community problems Savings bond drives The form cooperation may take varies with circumstances. Joint committees are most common. These may function on a permanent b a sis, or may be established to study a particular problem; once the problem is resolved the committee disbands. Frequently, committees con sistin g o f representatives o f union and management f i r s t work to gether On such problems as plant sa fe ty , absenteeism, and training. ( 1) 2 Successful colla boration on these may lead to jo in t pa rticip a tion on problems relating to e ffic ie n c y or production, elim ination o f waste, work s im p lifica tio n , and plant layout, or even product design. Joint research, where union and management each hire out side experts to study a problem or jo in tly sponsor an outside tech nician , is another method o f cooperation. Some unions employ a profession al in du strial engineer whose advisory services are availa ble to employers. Union Attitudes Union attitudes toward cooperation, as expressed by leaders o f the major federations and unions, have changed during the past 50 years from an avowal o f in differen ce to management prob lems to a widespread in terest and concern in a l l internal and ex ternal aspects o f business operation. World War I brought the prob lem o f production into sharp public focu s. With th is in mind, Samuel Gompers, then AFL president, advanced the union's o ffe r o f cooperation and serv ice. AFL p a rticip a tion , with management o f f i c ia ls , on Government boards and commissions introduced it s leaders to the ben efits to be gained through cooperation and gave them a greater appreciation o f management problems. In December 1919, the AFL, in cooperation with other labor organizations, issued a manifesto which said , in part: "Labor is fu lly conscious that the world needs things fo r use and that standards o f l i f e can improve only as production fo r use and con sumption increases . . . There cannot be a f u l l release o f produc tion energy under autocratic control o f industry. There must be a s p ir it o f cooperation and mutuality between employers and workers. V/e submit that production can be enhanced through the cooperation o f management with the trade union agencies." This interest was not abandoned during the 1920's despite the prevailing atmosphere o f h o s t ilit y between employers and unions However, the con cilia tory attitude o f the AFL was swept away, along with much o f the labor movement, during the depression o f the early 1930’ s. The organization o f the mass-production industries in the 1930's kindled a new in terest in union-management cooperation. Almost from it s inception, the CIO, and p a rticu la rly P hilip Murray, it s second president, showed a keen in terest in cooperation. Active promotion o f union-management cooperation was tremendously a cce l erated by the advent o f World War I I . In 1940, Mr. Murray proposed the establishment o f industry cou n cils, consisting o f representatives 2:07 a o f management and labor, to plan production in the basic defense industries. Although never adopted, the CIO supported this pro posal fo r many years thereafter, o ffe rin g i t again during the Korean emergency. The Steelworkers, among other CIO unions, con siste n tly encouraged union-management cooperation in many s p e c ific ways. The war period also revived the in terest o f cooperative undertakings, particularly, the formation o f management committees to increase production and reduce Shortly a fter the war, the AFL urged the continuance o f the AFL in plant la borcost. this approach: Many labor-management committees want to continue their work in peacetime. . . To accom p lish this cooperation, unions must work with management to reduce production costs, and management must give the union concrete in fo r mation about production problems, and be ready to f talk cold around the conference ta b le. . . Union-management cooperation brings e ffic ie n c y , not by speedup, but, by breaking bottlenecks and by a hundred and one other improvments which workers can make because they know work conditions from direct experience. facts9 Local and national unions vary in their attitudes toward cooperation. At the le v e l o f plant labor-management rela tion s, most unions probably would concede that resp on sib ility fo r running the business rests prim arily with management. Some unions refuse to share this resp on sib ility through formal cooperation programs. They p refer, instead, to be able to press th eir points o f view upon management in negotiations or through the grievance procedure, leaving management s o le ly responsible fo r a l l actions. Sometimes, however, th is is e ssen tia lly a t a c tic a l stand o f union o f f i c i a l s , dictated by the fear o f membership reprisals i f a cooperative pro gram does not achieve tangible re su lts, and does not n ecessarily r e fle c t an in differen t or antagonistic attitude toward management problems. Management Attitudes Over the past h a lf century, management, too, has r e lin quished strong fe e lin g s o f noncooperation which were rooted in a b e lie f, now long abandoned, that unions had a revolutionary intent. Although distrust and suspicion o f union intentions s t i l l charac terize the attitude o f some employers, just as sim ilar fe e lin g s re garding employers are found among unions and workers, in general3 2:07 4 employer representatives who deal with unions acknowledge the need fo r mutual respect and cooperation, even i f they stop short o f f o r mal cooperative arrangements. In th is evolution, the concept o f management as a ration a lized or s c ie n t ific undertaking that could make no allowance fo r worker or union p a rticip a tion and negotiation had been discarded. Over the years, the proponents o f s c ie n t ific management came to recognize the su bjective aspects o f th eir work, the importance o f the human fa c to r , and the need to gain the cooperation o f workers. Many large companies which had resisted unionization fo r many years moved quite rapidly towards sincere cooperative attitudes a fte r the in it ia l impact o f union recognition had worn o f f . On the whole, however, management tends to be cautious about the establishment, o f formal cooperative arrangement, par tic u la r ly those dealing with plant problems. Employers may regard such arrangements as a useful channel o f communications by which management problems and actions can be explained to the union and the employees, a method o f stimulating employee in te r e s t, and the source o f a sense o f p a rticip a tion which is good fo r morale; how ever, many undoubtedly fea r the p o s s ib ilit y that through such cooperation the unions may encroach upon management prerogatives. Joint Committees Although many union-management committees were established during World War 1, and a few such programs were undertaken during the 1920's, i t was during World War II that the concept flou rish ed. One observer o f war period committees states that: "The jo in t committee was a natural development in a country scru tin izin g it s procedures in contrast to authoritarian methods." 1 / The War Pro duction Board, in an e ffo r t to increase and improve production, encouraged the establishment o f committees composed o f representa tiv es o f labor and management, but took no active part in th e ir d ire ctio n . Some 5,000 committees were organized between 1942 and -1945, though not a l l were active at the same time. Between 5Q0 and 1,000 committees worked on production problems. War a c t iv it ie s such as bond drives, car p ools, blood donor campaigns, and r a llie s occu pied many committees to the exclusion o f other in terests. Though only a few o f these "war-drive inspired" committees were able to survive in the postwar period, th e ir existence did 1 / Dorothea de Schweinitz Labor and Management in a Common Enterprise, Cambridge, Harvard University P ress,. 1949 (p . 9 ). 2 :0 7 5 provide valuable experience fo r future e ffo r t s in this d ire ctio n . Moreover, many individuals in high positions with both management and unions were convinced o f the ben efits o f cooperation. The central idea o f cooperation is easy to comprehend, but the day-to-day application o f the theory provides the te s t. A modern fa ctory is a very complex organization; any formal coopera tive e ffo r t requires s t r ic t attention to d e ta ils . It is most im portant that top management and union o f f i c i a l s support the plan wholeheartedly; it is also essen tial that shop superintendents, foremen, and workers are in sympathy, with the idea. The manner in which a committee is in itia te d and organized w ill greatly influence it s chances o f success. Analysis o f successful union-management cooperation com mittees functioning during World War II revealed that informal pre liminary conversations between the plant manager or industrial rela tions d ire cto r and o f f i c i a l s o f the union were used su ccessfu lly to get an idea under way. Once accepted, a meeting was arranged to bring together representatives appointed by management and the union fo r the purpose o f organizing a union-management cooperation committee. It was found advisable to s e ttle at the outset the areas in which the committee would fu n c tio n ,its s iz e , and it s composition. There were no hard and fa st rules to guide these decisions and the experience in cne establishment did not often apply in another. However, out o f these e ffo r t s certain broad generalizations may be drawn as guidelines. Size proved to be a matter o f importance in a successfu l committee. Very large committees accomplished l i t t l e and small ones were not representative. E ffective top lev el committees were large enough to include policymaking o f f i c i a l s o f the firm and the union, top production o f f i c i a l s , and union stewards. The actual number varied with the particular plant. Equal representation was. ch a ra cteristics o f the most e ffe c tiv e committees that operated during the period. From a p ra ctica l point o f view, committee structure should f i t the particu lar situ a tion . A top le v e l committee, supplemented with subcommittees on a departmental or special problem area basis, proved su ccessfu l in many organizations. The subcommittees, com posed o f representatives, from the lower echelons o f management and employees, e lic it e d active pa rticip a tion where it was v it a lly needed. The top le v e l committee performed a coordinating function. Cooperation committees should be properly related to the c o lle c tiv e bargaining and grievance committee machinery, but committee 2:07 6 members should not become involved with these problems le s t they become in e ffe c tiv e during periods o f contract negotiation. Where subcommittees were used, some continued to function and to provide ideas and information during such periods When top le v e l coopera tion committees usually did not meet. The la tte r were able to re sume th eir role once negotiations were completed. Union-management committees tend to operate as advisory units in the organization. Through th is medium, management can u t iliz e the experience and -knowledge o f the men on the jo b . These committees may process suggestions made by employees, bring them to the attention o f management, and consider alternative sugges tions or solutions to the problem at hand. The choice to be made among the alternatives remains the prerogative o f management. Naturally, the resu lts o f labor-management committees do not always measure up to the expectations o f either labor or manage ment. The o b je ctiv e s o f the committee and it s authority may not be cle a rly defined; operating procedures may cause disputes; or the committee may take on the aspects o f a negotiating body with each side striv in g to force concessions. Labor-management committees, it is generally agreed, are not substitutes fo r good labor-manage ment relationships and cannot function without a working harmony between the p a r tie s . However, the ben efits o f labor-management committees cannot be measured s o le ly by their d irect resu lts. In a study o f labor-management committees, the National Planning A ssociation, a p riva tely endowed research organization, found that the direct e ffe c t s o f problem-solving committees ( e . g . , time study or sa fety) were p a rticu la rly n oticeable, but that the in direct e ffe c t s o f the jo in t committees were o f greater sig n ifica n ce : By providing new opportunities fo r com munication between management and labor and fo r frien d ly discussions in some o f the less controversial areas o f c o lle c tiv e bargaining, these committees frequently colored the entire relationship and made i t easier fo r the parties to understand each o th e r's thinking when i t came time to discuss key bargaining issues. A ll management and union leaders with whom we spoke were quick to endorse the idea that jo in t committees had a ’ contagious e f f e c t ’ in promot ing the s t a b ilit y o f their bargaining re la tio n ships. In other words, join t committees added to the opportunities afforded to both parties to bu ild a relationship which was mutually sa tis fa cto ry . 2:07 7 Some Examples o f Labor-Management Cooperation In the past several years, new plans have been introduced and plans previously in itia te d have grown in scope and sig n ifica n ce . Among these is the experience -of the American Velvet Co. and the T extile Workers Union o f America. An improved relationship between the union and the company dates from 1940, when a 3-year contract containing a profitsharing plan was negotiated. Both the company and the union believe that the basic reason fo r success o f the re lationship has been the mutual respect demonstrated da ily by union and management. Past presidents o f the lo c a l serve as a top advi sory committee to management and the union on such problems as production, finance, and labor rela tio n s. A planning board, with three management and three union representatives, studies problems concerning workloads, piece rates, overtime, and sim ilar matters. The relationship between the company and the union continues to be dynamic; as new problems a rise, new solutions are worked out and a constant e ffo r t is made to promote better understanding between management and the employees. In the men’ s clothing industry, a long history o f suc cessfu l c o lle c tiv e bargaining between the Hickey-Freeraan Co. and the Amalgamated Clothing Workers o f America has resulted in a situ ation marked by a degree o f union-management p a rticipa tion s e l dom found in American industry. The union is a partner to decisions on production methods, ratesettin g, company expansion, discharges, and other company problems. Financial cooperation between labor and management, though admittedly rare, is another type o f cooperation. For example, in 1955, the Boot and Shoe Workers Union announced that it would con tribute $100 ,000 to any organized fund operated and supported by the shoe industry fo r a national footwear promotion program aimed at increasing the per capita consumption o f shoes. Another instance o f fin a n cia l cooperation occurred when the 500 members o f the Amalgamated Clothing Workers employed by the Hamilton T ailoring Co. o f Cincinnati, Ohio, loaned the company $100,000 to tide it over a period o f lim ited funds. Under the plan, the employees had 10 per cent deducted from th eir pay checks as th eir share o f the loan; fo r th is they received debenture bonds o f the company, paying 3§ percent annually. Hie company in turn repaid $10,000 a month to the union u n til the debt was paid. When asked why a union would make a loan to management, a spokesman fo r the union answered, "Our members work in th is place. . . The union functions to protect people’ s jo b s . We fe e l that we are a part o f the industry." 2:07 8 Another type o f cooperation is jo in t sponsorship o f re search. For example, the International A ssociation o f Machinists and U. S. Industries, In c ., a manufacturing firm employing several thousand union members, recently established a research foundation to study health and insurance benefits and e ffe c t iv e ways o f using funds fo r such purposes. The company and the union each made an i n i t i a l contribution o f $25,000 to support the research p ro je ct. In this instance, as in other union-management ventures, the re su lts o f the foundation’ s studies w ill be made available to other companies and unions. 2:07 2:08 Union Participation in Safety Programs Providing a safe working place is one o f the employer's prime r e s p o n s ib ilitie s . Cooperation in safety programs and adher ence to prescribed safe methods are the workers' r e s p o n s ib ilitie s . In general, the role o f the trade unions is to prod both management and members to measure up to th eir r e s p o n s ib ilitie s , and to urge State and Federal Governments to enact and to enforce adequate le g is la tio n on safety and on accident compensation. Providing the equipment and arrangements necessary fo r safe conditions is prim arily an undertaking o f management; that is , the d ecision to design and to in s ta ll guards, to replace dangerous equipment, or to repair plant d efects, e t c ., is ty p ic a lly one which workers and unions cannot make themselves, although a union may seek particular management action. S p e cific health and safety pro vision s are found in some c o lle c tiv e bargaining agreements, particu la r ly in those covering hazardous occupations, in which the employer form ally agrees to furnish s p e c ific safety equipment or clothing to prevent accidents. The union and the employer also may agree in the contract that an employee's fa ilu re to use p rotective clothin g or equipment is just cause fo r d is c ip lin e . The active pa rticip a tion o f organized labor in the con tinuous job o f accident prevention was in evitable. On the one hand, management recognized that i t could not enforce safety rules or in sure the use o f p rotective devices without worker cooperation. In many organized establishments, th is need led to e n listin g union sup p ort. The unions, in turn, ord in a rily regard safety o f members as one o f their major r e s p o n s ib ilitie s . The president o f the United Automobile Workers recently ca lled attention to the unions' part in the in dustrial safety program: "Although labor organizations are latecomers to the safety movement, they can be counted on to spur i t s growth and to cooperate fu lly in it s development. . . Unions can contribute immeasurably by bringing into safety work th eir knowledge o f work m otivation." A plant safety committee composed o f management and worker representatives is often an e ffe c t iv e method o f union-manage ment cooperation in avoiding plant in ju r ie s . Approximately 30 per cent o f major union agreements in manufacturing industries now con tain clauses form ally providing fo r jo in t labor-management safety committees. Some in dication o f the extent to which programs fo r the prevention o f in du strial accidents have succeeded is r e fle c te d in injury-frequency rates fo r recent years. In 1938, the in ju ry -fre quency rate fo r a ll manufacturing industries was 15.1 per m illion employee-hours worked. In 1943, a war year, the rate rose to 20. ( 1) 2 By 1954, i t was 11.9, the lowest on record. In 1955, the rate rose to 12.1 in ju ries per m illion employee-hours, then dropped to a rate o f 12.0 in ju ries in 1956. Among industry groups, the in ju r y -fr e quency rates varied widely. In the food and kindred products indus try, the injury-frequency rate was 19.0 in 1956. In some industries which were not without substantial hazards, the rates were v e r y low; fo r example, in 1956, the synthetic rubber industry had a rate o f only 1 .9 ; explosives manufacture, 2.5. By contrast, in industries where safety programs have been comparatively lim ited in scope, frequently because o f d if f ic u l t y in application and enforcement, the rates remained high; logging had an injury-frequency rate o f 65.0, and stevedoring, a rate o f 88.5, in 1956. Development o f workmen's compensation le g is la tio n , in which unions played an active r o le , ca lle d attention to the in c i dence and cost o f accidents. I t is now recognized that the payments demanded by law are only part o f the to ta l injury cost to the em p loyer, and that related or in direct costs are often substantial. Types o f Hazards The s p e c ific causes o f accidents are innumerable, but b a sica lly a l l accident causes f a l l into two broad categories—unsafe working conditions or environmental hazards and unsafe acts o f peo p le . Accident preventionists generally agree that both an unsafe condition and an unsafe act are lik e ly to be involved in the occur rence o f any accident and that i f either can be eliminated or avoided, an accident is u n likely to happen. True accident prevention con s is t s o f recognizing unsafe conditions and unsafe actions and o f eliminating them before they result in accidents. In general, management has the re sp o n sib ility and the a b ilit y to correct or eliminate unsafe conditions. The elim ination o f unsafe a cts, how ever, requires pa rticip a tion and cooperation on the part o f the workers. In w ell-organized safety programs, a l l circumstances sur rounding the occurrence o f any accident in the plant are ca re fu lly analyzed and the pertinent d e ta ils given wide p u b licity as clues fo r the detection o f sim ilar accident p oten tia ls anywhere in the opera tion . The exchange o f such information from plant to plant f r e quently resu lts in the detection o f unsuspected hazards before a c c i dents happen. The procedure o f accident analysis has been standardized and consists essen tia lly o f lis t in g the follow ing items o f informa tion about each accident: 2:08 3 1. The accident type—designates the event which resulted in injury and indicates the kind o f occurrence that may be expected i f sim ilar hazards are permitted to e x is t. 2. The unsafe condition—names the en vironmental condition or circumstance which led to the occurrence o f the accident—fo r example, unguarded, slip p ery, improperly p ile d , e tc. 3. Agency—id e n tifie s the object or sub stance which was unsafe in the manner indica ted by the named unsafe condition—f o r example, a circu la r saw (unguarded), a working platform (s lip p e r y ), boxes o f fin ish ed materials (im properly p ile d ), e t c . This is a guide as to where to look fo r hazards sim ilar to that named as the unsafe condition. 4. Agency part—id e n tifie s in d e ta il the s p e c ific part o f the agency with which the un safe condition was associated, thereby giving a more exact guide as to where to look fo r such hazards—fo r example, the blade ( o f a c i r cular saw), the gears ( o f a machine), e tc . 5. The unsafe a ct—indicates any action o f a person which contributed to the occurrence o f the accident—fo r example, fa ilu r e to block o r anchor ob je cts against unexpected motion, fa ilu re to wear required p rotective equipment, unnecessary haste or speed, e tc . 6. Personal fa c t o r —in dicates the reason why the person acted unsafely. This is the clue which indicates whether the cure fo r such unsafe actions should be more extensive training in the s k i lls o f the operation, clo s e r supervision, or development o f more e ffe c t iv e job placement procedures. The Roles o f Management and Unions in P rotective Measures Within individual establishments, management is primarily responsible fo r making accident prevention a v it a l part o f a l l a c t iv it ie s , and fo r en listin g the assistance o f workers and unions in carrying out the jo b . 2;08 4 S atisfactory safety performance may depend upon certain basic a c t iv it ie s carried on in connection with the se le ctio n and training o f workers, and upon arousing and maintaining th eir in te r est in accident prevention. For example, before an applicant is placed on a jo b , i t may be determined whether he has the required mental and physical a b ili t ie s . Since most establishments do not have the f a c i l i t i e s to test an employee’ s a b ili t ie s , dependence is usually placed on the applicant’ s job history and previous experi ence in the same or sim ilar work. On-the-job analyses o f his per formance follow s as a matter o f course, u n til his s u ita b ility fo r the p a rticu lar job is d e fin ite ly established. In many establishments, training o f the employee includes in struction in safe working procedures. In larger plants, these procedures w ill, in a l l lik elih o o d , be form ally developed. In smaller plants, training may depend upon the p ra ctica l knowledge provided by another employee or the shop foreman. The foreman necessarily has a key p osition in the safety program, hence his training should be such that he can be made responsible fo r the safe performance o f the work in his department. Frequently, the union w ill encourage the worker to give sp ecial attention to safety in stru ction , p a rticu la rly i f there is an active safety committee with union representation. A basic part o f an e ffe c t iv e safety program is continuing worker awareness o f p oten tia l hazards and scrupulous observance o f sound safety rules. Many devices may be used by management to arouse such consciousness o f safety needs, including safety meet ings and contests, suggestion systems, plant pu blications, and signs, slogans, or posters. In the same manner, union encouragement o f the safety program may include presenting speakers on safety and showing safety film s at union meetings. Many union period icals devote space to safety methods and programs, often on a regular basis. Local unions frequently carry ’’Work Safely” posters on their union h a ll b u lletin boards. These and related a c t iv it ie s are de signed to maintain worker attention to the need fo r safety precautions. Most unions, p a rticu la rly those with members in hazardous in dustries, make special e ffo r ts to set up safety programs to pro te ct th eir membership. As an example o f a recently organized union program, the Seafarers Log, o f f i c i a l journal o f the Seafarers? Inter national Union, announced in November 1956 that a SIU safety program would get underway early in 1957, with ’’ active pa rticip a tion o f SIU crewmen in a l l ship’ s departments at regular safety meetings. . Since safety is a continuing jo b , the shipboard aspects o f the pro gram w ill be coupled with shoreside safety machinery jo in tly opera ted by the union and the companies.” 2:08 5 In addition to the a c t iv it ie s o f the various national unions, the AFL-CIC and the State central bodies carry on a safety program designed to improve Federal and State le g is la tio n relatin g to fa ctory inspection programs, machine guards and other safety devices, and the protection and care fo r workers injured on the jo b . Safety education carried on by member unions is also aided through furnishing pamphlets, posters, film s tr ip s , and speakers fo r meetings. A rticle s in federation publications also stress the need for better safety programs in industry. Union-Management Safety Committees An establishment in which hazards exist needs an organized program to e n lis t and maintain the combined e ffo r t o f the entire work force in the accident prevention program. Certain decisions a ffectin g plant safety are ord in arily made in it ia l ly by management. These decisions include the control o f physical hazards, such as the providing o f safe and properly guarded equipment, standards to be follow ed in equipment design, plant layout, procedures to be used, programs fo r safety training and arousing worker in te re st, and determination as to d iscip lin a ry procedure, accident investiga tio n , and records to be kept. When a union believes that management is not adequately meeting a particular safety problem, it normally raises the ques tion fo r negotiation or brings i t to the established procedures fo r resolving complaints or grievances. Often there is a workers* safety committee, or a jo in t union-management committee, which works to bring the p ra ctica l knowledge and viewpoint o f the work men into play. Such a committee arrangement can also serve to stimulate worker interest in sa fety. When used in plant inspection or accident in vestigation , the worker committee can c a ll unsafe operating conditions to the attention o f management and unsafe practices to the attention o f th eir fellow workmen, and act to See that they are corrected. Many union agreements contain clauses providing fo r the establishment and operation o f committees concerned with plant sa fety . Recently the U. S. Department o f Labor*s Bureau o f Labor S ta tis tic s examined 1,594 major agreements covering over 7 m illion workers in a ll manufacturing and nonmanufacturing industries. Pro vision s fo r formal committees concerned with plant sa fety, sanita tion , and employee health were found in 356 o f these agreements covering more than 2 m illion workers. There are, o f course, many additional instances in which there is a cooperative managementunion safety program without any formal provision written into the agreement. Contracts with s p e c ific clauses providing fo r plant 2:08 6 sa fety committees were most frequently negotiated by mining com panies, public u t i l i t i e s , and fa cto rie s producing chemicals, petro leum and coal products, rubber, and primary metals. Most o f the d e ta ils o f committee organization and func tion in g were provided by the safety committee clauses. The s iz e o f the committe.e was nearly always stated; equal union and employer representation generally was provided. For example, one agreement provided that: A jo in t safety committee consisting o f 3 employees designated by the union and 3 management members designated by the company sh all be established in each plant. The safety committee sh a ll hold monthly meetings at times determined by the committee, preferably outside o f regular working hours. Committees d i f f e r in size among establishments. The num ber o f workers employed in the plant and the scope o f the committee’ s functions are probably determining fa cto r s ; obviously, each plant must decide fo r - i t s e lf the most e ffic ie n t committee s iz e . Common e l i g i b i l i t y requirements fo r committee service were length o f employment beyond a stated minimum and knowledge o f plant p ra ctice s. Worker appointments to the committees were to be made eith er by the union, by the company (u su ally from l i s t s submitted by the u n ion ), or by the pa rties acting jo in t ly . The scope o f the employment unit represented by the committee, whether by work area, plant, or companywide, was usually stated. Other provisions dealt with the term o f membership on the committee and remuneration fo r time spent on committee business. In order to encourage greater p a rticip a tio n in committee work among employees, many agreements provided fo r rotation o f com mittee assignments, as in the follow in g examples: There sh a ll be a committee o f 2 members o f the union and 2 representatives o f the company, to be known as the safety committee, who w ill meet with the safety engineer. . . . The member ship o f the committee sh a ll be lim ited to those employees who have been employed by the company fo r more than 1 year, thus assuring a knowledge o f the plant and working conditions in order that they may e ffe c t iv e ly carry out th eir com mittee duties. It i s also provided that the 2:08 7 membership o f the safety committee sh a ll have an en tire change o f personnel every 6 months. ★ ★ ★ The unions w ill provide the company with a panel o f names from which the company w ill se le c t at least one to serve as a member o f the plant safety committee. The membership o f this committee shall be rotated so that a large num ber o f employees sh all have a chance to serve on the committee. Committee operational procedures were occasion ally set forth in the agreements. Meetings at regular in tervals, generally monthly, were provided fo r in some contracts. Plant inspection tours were sim ila rly scheduled. Of the few agreements providing fo r the selection o f a committee chairman, most sp e cifie d a management representative, such as the plant safety engineer. One clause pro vided the follow in g organization fo r the committee: A safety committee consisting o f the safety d ire cto r, who shall be the chairman, 2 members designated by the union and 2 members designated by management shall be established. The safety committee sh a ll hold regular semimonthly meetings from 1 to 3 p. m. on such dates and at such place as the committee may determine. Time consumed on committee work by committee members designated by the union sh a ll be considered hours worked to be compensated by the company. The safety director sh a ll be a ctiv e ly in charge o f a ll a c t iv itie s o f the committee, in cluding assignment o f p ro je cts, conducting o f meetings, and follow ing up on recommendations to management. The majority o f agreements studied by the Bureau which provided fo r safety committees established fo r the committee a series o f a c t iv it ie s designed to implement the plant safety program. These included inspection o f selected areas to discover hazards, in vestigation o f accidents to recommend means to prevent th eir recur rence, and "sa fety f i r s t " educational a c t iv it ie s . Of the 356 agreements with clauses providing fo r the es tablishment o f safety committees, 296, or 33 percent, sp e cifie d the 2:08 8 functions which the committees were to perform. quency, these were: In order o f f r e 1. Recommend rules, p ra ctice s, or changes relatin g to health, safety, or sanitation. 2. Recommend action to eliminate plant safety and health hazards. 3. Promote safe working conditions and p ra ctices. 4. Inspect unsanitary and unsafe condi tions and equipment. 5. Make*regular inspections and report on hazardous conditions. 6. Investigate accidents and in ju rie s . 7. Secure employee compliance with com m ittee recommendations and company safety program. 8. Formulate safety education programs fo r employees. Other functions performed by jo in t committees (s p e c if ic a lly mentioned in less than 5 percent o f the to ta l number o f agreements containing functional clauses) included elim ination o f hazardous working conditions; study o f safety practices and problems; study o f accident and injury rates and health reports; formulation o f a gen eral safety program; and review o f grievances and complaints. An illu s tr a tiv e clause o f a general type, covering company and committee a c tiv ity in promoting ov era ll safety, stated: The company sh a ll continue to make reason able provisions fo r the safety and health o f the employees during their regular working hours. P rotective devices, wearing apparel, and other equipment necessary to properly protect employ ees from injury sh a ll be provided by the com pany. There sh a ll be a safety department, and also a safety committee, upon which the union shall have a representation, the function o f which sh all be to promote safe working condi tions and general overa ll safety fo r the entire pla n t. 2:08 9 Some committees function on a lim ited b a sis, s p e c ific a lly mentioned in the agreement. One-third o f the agreement clauses o f th is type provided that the committee was to be an advisory body only, consulting with management on matters relatin g to health, sa fety, and san itation. One-eighth provided that matters involving grievance procedure and c o lle c tiv e bargaining were removed from committee consideration. In a few plants, committees were assigned only educational a c t iv it ie s . Labor-management safety committees, as indicated by the agreements, were expected to undertake a variety o f tasks in the implementation o f committee p o licy . P rincipal a c t iv it ie s included inspecting selected areas in order to discover accident sources and hazards, investigating accidents fo r the purpose o f recommending ways to prevent th eir recurrence, promoting safety and f i r s t aid training fo r a l l employees, and advancing the safety program among employees. Basic to the development o f safe p ractices and rules to comply with current needs were the committees* inspection and in vestigatory du ties. Many committees were to make regularly sched uled plant in spection s, generally monthly. Such inspections were generally to be confined to the plant area but might extend fu rth e r -fo r example, to the sanitary condition o f employee lockers. Items noted during these inspections were to be discussed at the regularly scheduled safety meetings. Plant committees were also to in v e s ti gate a ll accidents involving a lo ss o f worktime and make spot in vestigation o f jobs which were alleged ly hazardous. Lost-time ac cidents and hazardous jobs were sim ila rly to be studied and d is cussed at the regular safety meetings. The purpose o f the above a c t iv it ie s was often to recommend necessary changes or additions to p rotective equipment or devices in order to control and eliminate hazards. Some agreements empowered the safety committees to enforce compliance with safety rules and p ra ctices. In a few plants, the committee was authorized to order employees o f f hazardous jo b s, and to suspend operations, i f necessary, u n til dangerous conditions were corrected. In at least one situ a tion , the committee was empowered to order the immediate destruction o f unsafe equipment which could not be s a t is fa c t o r ily repaired. An unusual exercise o f committee power was indicated in another agreement in which the committee was authorized to s e le c t special jobs fo r temporarily disabled employees who were unable sa fely to perform th eir regularly assigned job . In one plant, the nature o f which required constant attention to sa fety, the committee was given blanket power to take any steps necessary to correct unsafe conditions. 2:08 1U In a few situ a tion s, the committee might not only in vestigate employee complaints o f unsafe conditions but might review such grievances as w ell. I f no settlement was effected^the griev ance would generally be handled through the regular grievance and arbitration procedure. A notable exception was the bituminous-coal agreement in which the jo in t industry safety committee was empowered to arbitrate any appeal f i l e d with it by a coal operator or mine worker allegin g v io la tio n o f the mine safety code. 2:08 2:09 Fringe Benefits Under Collective Bargaining Largely during the past 15 years, the vast m ajority o f companies engaging in c o lle c tiv e bargaining have altered their basic systems o f paying fo r work by the addition o f a variety o f ben efits that increase the income, le isu re , or secu rity o f wage earners. Some o f these had previously been available only to salaried employees and executives. Others are almost en tire ly new. These b en efits, which include paid vacations and holidays, pension plans, health and welfare b en efits, supplementary unemployment com pensation, e t c ., are commonly ca lle d "frin ge b e n e fits ." The wide spread application o f fringe ben efits to wage earners is often credited as one o f the major accomplishments o f unions in the area o f c o lle c tiv e bargaining. l i k e certain other United States expressions, the term fringe befiefits, while c o lo r fu l, cannot be precisely defined. In the f i r s t place, the practices bearing this label are now far more substantial, in terms o f cost and income, than the word fringe would imply. Secondly, the word ben efits is sometimes given the connotation o f an unearned gratuity, which labor finds d is ta s te fu l, or is applied to a practice which labor may not accept quite as a ben efit. Thirdly, and most troublesome, there is no consensus among employers, or labor groups, as to which practices should be c la s s i fie d as part o f the basic wage structure, as part o f the adminis tra tive costs o f employing workers, as part o f managements’ incen tive and morale-building program, or, fin a lly , as genuine frin ge ben efits. This chapter does not attempt to define fringe b en efits; rather, it deals p rin cip a lly with the types o f practices supple menting wages which are commonly provided under the terms o f agree ments negotiated by employers and unions. Many o f the practices described in this chapter are not unique to the United States, although the extent to which they are provided through private rather than Government action may be con sidered so when compared with experience in other countries. In view o f the variations among nations in the role o f Government in the fringe ben efits area, a b r ie f summary o f the prin cipal " le g a lly required" ben efits in force in the United States appears desirable. 1 / 1/ See table, chapter 2:01. Cl) 2 Through payroll deductions and employer contributions, the Federal Government provides old-age ben efits to e lig ib le re tir in g workers, certain survivors’ ben efits upon death o f an insured worker, and ben efits to q u a lifie d disabled workers. A FederalState system o f unemployment insurance, financed e n tire ly by a tax lev ied on employers, assures qu a lified unemployed workers o f a weekly income fo r up to 26 weeks. State workmen's compensation laws insure the worker against the hazards o f job -rela ted accidents or diseases. The Federal Fair Labor Standards Act requires the pay ment o f time and one h a lf the regular rate o f pay fo r work in excess o f 40 hours a week in covered employment (gen erally, employment a ffe ctin g in terstate commerce). A ll o f these general government-sponsored ben efits are now being widely supplemented by employers through c o lle c tiv e bar gaining. Private pension plans supplement old-age and survivors' insurance; supplementary unemployment benefit plans add to the unemployment' ben efits provided by the States; many health and in surance plans supplement workmen's compensation payments; and over time e l i g i b i l i t y requirements in agreements are often more lib e r a l than the Federal standard. Because employers contribute to the cost o f government old-age pensions, unemployment insurance, and workmen's compensation, they tend to consider these expenditures as part o f the frin g e-b en efit package available to th eir employees. Union demands fo r frin ge ben efits and related practices have brought about a fundamental transformation in the prevailing concepts o f work and pay as well as in the status o f the wage earner. Under the comprehensive programs o f frin ge ben efits pro vided fo r in many c o lle c tiv e bargaining agreements, the wage earner has certain assuramces and protection available to him o f f the job as w ell as at work. I f he continues to work fo r the same company long enough, or otherwise q u a lifie s fo r a private pension, he may earn some degree o f financial, security fo r l i f e . Although wages in the. United States are rarely determined so as to take into account d ifferen ces among workers in family r e s p o n s ib ilitie s , some frin g e ben efits amd related practices r e fle c t acceptamce o f the p rin cip le —long advocated by unions—th a t, in the event o f in a b ility to work because o f reasons beyond his con trol, the wage earner's income or secu rity must be sustained, fo r a time at le a st, to meet family needs. Certain frin ge ben efits tend to reward long se r vice in a way that wage rates, determined largely by the jo b , do not. Other p ractices recognize rest amd recreation as a part o f the work relation sh ip, or in other words, as means o f insuring the maintenance o f the wage earner's productive ca p a cities. To an in creasing extent, wage earners are being compensated fo r lo st work ing time due to personal reasons, such as a death in the fam ily, or fo r attending to c iv ic du ties, a s 'in serving on a jury. 2s09 3 A ll o f these aspects o f fringe ben efits have profound s o cia l im plications, which impel some unions to consider these practices not only as a part o f worker remuneration but, more im portantly, as obligation s which society places upon the employer. The so cia l im plications, however, are not the subject o f this chap te r; rather, this chapter deals with fringe benefits and related practices as a form o f pay fo r services. Types o f Benefits The various ways in which ,the wage earner is a ffected by fringe benefits can best be illu stra te d by starting with the tra d itio n a l concept o f work and pay. John Doe, a machine operator, was hired at the rate o f $2 an hour. He was expected to be at his machine at 8:00 a. m.; he had a half-hour lunch period at 12 noon; he stopped his machine at 4:30 p. m. His normal pay fo r a day was $16. I f he worked 5 f u l l days during the week, Monday through F ri day, he earned $80. His yearly income depended on the number o f weeks worked. He was paid f o r the work he did; i f he stopped work ing because o f fa tigu e, sickness, d is a b ilit y , old age, or death, his pay stopped (he may have received certain ben efits from the government). The ways in which th is h is to r ic work and pay structure has been modified by the more common fringe ben efits and related practices in e ffe c t in mid-1957 are described below. 2 / Most o f the practices described have certain e l i g i b i l i t y requirements and lim itin g procedures designed to prevent abuse; these are not pointed out except where they are a fundamental part o f the p ractice. Variations among establishments and industries are substantial and cannot be adequately described in a b r ie f chapter. 3 / Time O ff With Pay fo r Rest and Recreation. —Largely within the past 15 years, the practice of providing an annual paid vacation to wage earners has become almost universal. Well, over 90 percent o f union agreements now contain paid vacation provisions. Annual vacation periods are ty p ica lly graduated according to length o f s e rv ice , e. g . , 1 week a fter 1 year o f se rv ice , 2 weeks a fter 2 or 3 years, and 3 weeks a fter 15 years, e tc . Some agreements provide up to 4 weeks. 2 / The ben efits which are normally provided under health, insurance, and pension plans are mentioned in the appropriate con text o f th is chapter, but d eta ils o f these rather complex ben efits w ill be discussed in a la ter chapter in this b u lletin . 3 / See the various industry chapters in th is b u lle tin . 2:09 4 The practice o f paying workers for a s p e c ific number o f holidays observed during the year has paralleled the growth o f paid vacations in c o lle c tiv e bargaining agreements. T ypically, agreements provide 6 or more paid holidays. Additional half-day holidays are becoming more prevalent. Workers generally receive their f u l l normal pay fo r va cation time and holidays. Thus, i f John Doe is e n title d to 2 weeks o f vacation and 7 paid holidays, he w ill have 17 days a year to spend as he pleases, with the same pay he would have received had these p ractices not been in e ff e c t . Time O ff on the Job. —The concept o f work within the plant is also changing; in creasin gly, the wage earner receives pay fo r nonworking time in the plant. About a fourth o f major c o lle c tiv e bargaining agreements s p e c ific a lly provide fo r paid rest periods during the day—ty p i c a lly , 1 morning and 1 afternoon period are provided. The time may range from 5 to 15 minutes each. John Doe may relax, smoke i f perm issible, and drink beverages. His pay does not change; rather he spends fewer minutes at his machine fo r his daily wage than he would have done before the in stitu tio n o f rest periods. A somewhat smaller proportion o f agreements s p e c ific a lly allow time fo r washup and clothes changing. In th is situ a tion , John Doe may leave his machine 5 or 10 minutes before 4:30 p. m ., or spend the f i r s t 5 or 10 minutes o f the paid day in preparing fo r work, or both. Under agreements in some industries, e. g . , coal mining, the worker is paid fo r a l l time in the plant or underground, which necessarily includes a lunch period. (John Doe’ s workday, as described in the illu s tr a tio n , does not include a paid lunch p e rio d .) Higher Pay fo r Extra Hours o f Work or fo r Work at Unusual or Inconvenient Hours. —Paying workers at a premium rate fo r extra or unusual hours, or, conversely, penalizing the employer fo r sched uling such work, is one o f the older wage p ra ctices, but the ap p li cation o f the prin ciple has been broadened substan tially during the past 15 to 20 years. Under most c o lle c tiv e bargaining agreements, John Doe w ill be paid at the rate o f time and on e-h alf fo r a ll hours in excess o f 8 in 1 day or 40 in a week (the la tte r is also required by the Fair Labor Standards A ct). He w ill be paid at the rate o f time r n d on e-h alf fo r work on Saturday and at double time fo r work on Sunday. I f he is ca lle d to work on a holiday, he w ill receive his fu ll holiday pay plus pay fo r the work he does, o r, in some 2:09 5 cases, double time fo r each hour worked. I f he is moved to the evening s h ift , startin g at 4:30 p. m ., he w ill receive a sh ift d iffe r e n tia l (about 10 to 20 cents an hour) to compensate him fo r the inconvenience o f working at night. The prin cip le o f providing extra pay to compensate fo r special inconveniences also applies i f a worker is ca lled back to work, usually fo r emergency reasons, a fte r leaving the plant for the day. In such a situ ation , John Doe may be paid at his regular rate or at a premium rate, but he is usually guaranteed a certain number o f hours o f work or pay when called back. Income S ecurity. —C ollective bargaining agreements ty p i c a lly contain provisions which are designed prim arily to assure the worker o f continued income during emergency periods or under circumstances which prevent him from working. Included among the major causes o f lo s t time are sickness and accidents, la y o ff, and discharge. Most workers under c o lle c tiv e bargaining agreements have some protection against the fin an cial hazards o f sickness and accidents, as measured in lo s t wages; such protection in the case o f la y o ff or permanent separation, to supplement State unemployment compensation, is less common although provided by a sign ifica n t number o f major agreements. I f John Doe becomes disabled as a result o f sickness or an accident incurred o f f the jo b , he w ill be assured o f a weekly benefit (le s s than his wages) fo r a sp e cifie d period (generally up to 26 weeks), paid fo r by his employer. I f he is la id o f f , he w ill draw a weekly unemployment b en efit, in addition to his State unemployment compensation, fo r a period ranging up to 52 weeks, assuming that he is covered by a supplementary unemployment benefit plan o f the type in e ffe c t in the basic s te e l industry. Depending on certain conditions, he may be assured o f combined weekly benefits amounting to almost twotliirds o f his regular take-home pay. I f his job is eliminated and he is discharged, John Doe w ill receive a dismissal allowance geared to his length o f service under about a f i f t h o f major agreements. Assuming 5 years o f serv ice to his cre d it, the typ ical allowance would amount to about 5 weeks* pay* I f he suffers a death in his immediate fam ily, he may take time o f f from work to arrange fo r and attend the funeral. Under about 1 out o f 8 agreements, he w ill not lose pay fo r the time so spent. 2:09 6 Other income security practices involve concepts o f guar anteed employment or wages, for the day, week, or year. Most c o l le c tiv e bargaining agreements provide that employees who are sched uled to work and, in the absence o f prior n o tice , report to work at the usual time are guaranteed some work fo r the day (usually 4 hours) or pay fo r these hours i f no work is available. In some agreements (in the meatpacking industry, fo r example), such a guar antee covers a f u l l week i f the f i r s t day is worked. Guaranteed annual wage plans, in the tra d ition a l meaning o f the term, are not common in the United States, but where they are in operation, the covered worker is assured o f a certain annual income regard less o f the number o f weeks for which work is available. Health S ecurity. —Under workmens compensation laws, John Doe has long been insured against the costs which accrue from a sickness or accident incurred as a result o f, or in the course o f , employment. During the past 10 years, John Doe, as w ell as most workers under c o lle c tiv e bargaining agreements,have come under the coverage o f negotiated health and insurance plans which protect him against the major fin an cial costs o f sickness and accidents arising o f f the jo b . Thus, he w ill be reimbursed, up to a certain lev el which may cover most o f his b i l l s , fo r h ospital costs and for surgeons1 fees in case an operation is needed. Under many agree ments, he w ill be reimbursed fo r a doctor’ s v i s i t s . John Doe may contribute part o f the cost o f th is insurance. Under some agree ments, free hospital and medical services rather than payments are provided. Family S ecu rity. —John Doe’ s r e sp o n s ib ilitie s as the head o f a fam ily are s p e c ific a lly recognized, and financed in whole or in part by his employer, by a l i f e insurance p o licy which may pro vide up to a f u l l year’ s income or more to his b e n e ficia rie s in the event o f his death. Many p o lic ie s provide additional amounts in the case o f accidental death or dismemberment. Another benefit accruing to his family is coverage under the same h osp ita liza tion , su rgica l, and medical plan covering the worker, also usually paid fo r in whole or in part by the employer. Under many plans, fo r example, John Doe’ s wife would be e lig ib le fo r s p e cifie d ben efits in the case o f maternity equal to those availa ble to a woman employee o f the company. Allowances fo r Civic R e sp o n sib ilitie s. —Worker John Doe is also a c itiz e n and may be ca lled fo r jury se rv ice . Jury fees are usually nominal and are not intended to reimburse the juryman fo r lo s t income. About a f i f t h o f the c o lle c tiv e bargaining agreements 2:09 7 have provisions assuring workers o f an amount at least equal to their regular pay fo r the time spent in jury service. A smaller proportion o f agreements provide fo r employer payments to workers entering the Armed Forces or fo r time o f f fo r National Guard or Reserve Corps duty. Retirement S ecurity. —Having reached the age o f 65, John Doe decides to r e tir e . He is assured o f a pension under the Federal s o cia l secu rity program. As a result o f the rapid spread o f p r i vate pension plans over the past 10 years, John Doe and the major it y o f workers under c o lle c tiv e bargaining agreements are assured o f a supplementary pension for l i f e , paid fo r wholly by the employer in most cases, i f they have the required years o f service upon re tirement. The amount o f the pension is usually geared to length o f serv ice. Under many plans, John Doe may re tire before age 65 (under early retirement p r o v is io n s ), or i f he is disabled, and draw ben efits from the plan. The monthly retirement payment he receives from the company is not the only benefit he receives a fte r retirement. During recent years, many agreements have extended hosp ita liza tion , su rgical, and medical ben efits to the retired worker, and in some cases con tinued his l i f e insurance as w ell. Some plans require the retired worker to pay the premiums fo r this protection , but even in this event he obtains the ben efit o f lower costs through group p a r t ic i pation which otherwise would not be available to him. w ill be health, in most pension The combined income John Doe receives after retirement Jess than he had earned while working. 4 / I f in good he may be deterred from re tirin g by this prospect. Probably cases, th is decision would be his to make, but under many plans he-may be compelled to retire at 65, 68, or 70. The Employers* Contribution Fringe ben efits and related p ra ctices, as a whole, con tribute to building a stable and healthy work fo r c e . Some employers ob ject to the continuous growth o f frin g e ben efits and might elim i nate some practices i f they were free to do so. However, i t would be misleading to in fer that employers object in prin ciple to these p ra ctices. Although unions have provided the impetus responsible, 4 / Under major plans in the automobile industry, fo r example, a $3,600-a-year man re tirin g at age 65 with 30 years o f service w ill receive $67.50 a month from the negotiated plan and $98.50 a month under s o c ia l secu rity , fo r a to ta l o f $166 a month or $1,992 a year. 2:09 8 in large measure, fo r the rapid spread o f fringe b e n e fits, v irtu a lly a ll o f the practices described in this chapter, and others as w ell, were introduced by employers fo r w h ite-collar salaried employees, and sometimes fo r wage earners, before these practices had become common issues in c o lle c tiv e bargaining. At present, many companies not under c o lle c tiv e bargaining agreements also pro vide a variety o f fringe ben efits to wage earners. I f during his working l i f e (with one employer)^ John Doe has occasion to use a l l o f the ben efits available to him up to the maximum lim it, the cost to the employer would obviously be sub sta n tia l. However, turnover o f employees reduces pension co sts ; most workers remain in good health; premium payments fo r overtime or other purposes are under the con trol o f the employer and w ill not be incurred unless it pays the employer to do so; certain p ra ctices, such as rest periods, may bring immediate returns in increased produ ctivity, e tc. Considering the number o f tangible and intangible fa ctors connected with any sin gle p ra ctice, it is exceptionally d i f f i c u l t , i f not im possible, to compute it s cost to the employer. Perhaps, at a given time, some practices have no real c o s t , in that the immediate return exceeds the expenditure involved. Others are obviously expensive, and th eir elim ination would c le a r ly result in lower costs to the employer. Some may be on the borderline. Despite the fa ct that expenditures do not necessarily r e fle c t actual c o s ts , some mention should be made o f employer expenditures connected with frin ge benefits and related practices lest the reader exaggerate, or perhaps minimize, the sign ifica n ce o f these practices in an industrial economy. Unfortunately, the c o lle c tio n o f data on employer expenditures has lagged fa r behind the development o f these practices and the expansion o f s t a t is t ic s dealing with workers’ earnings. The U. S. Department o f Labor’ s Bureau o f Labor S ta tis tic s recently conducted an experimental sur vey o f expenditures on selected practices made by 550 manufacturing establishments in 1953. The follow in g tabulation illu s tr a te s in a rough way the magnitude o f these expenditures on the average. Legally required expenditures are included so as to represent one o f the major types o f employer expenditures fo r labor. Most o f these expenditures have increased since 1953. Some s ig n ifica n t p ra ctices, e. g . , supplementary unemployment benefit plans, were either not in e ffe c t in 1953 or fo r other reasons were not covered by the survey. The data shown should not be considered as repre sentative o f a ll manufacturing establishments. 2:09 9 A v e r a g e e x p e n d itu re s fo r s e le c t e d ite m s o f su p p le m e n ta ry e m p lo y e e r e m u n e r a tio n , 550 m a n u fa ctu rin g e s ta b lis h m e n t s , 1953 Item V a c a tio n s , h o lid a y s , and s ic k leave Paid vacations Paid holidays Paid sick leave Premium pa y _ __ Premium pay for overtime P r e m iu m pay fo r w o rk on h olid a y s Shift premium pay Pension plans __ H ealth and in su r a n ce p l a n s ______________ Legally required payments O ld -A g e and S u r v iv o r s 1 I n s u r a n c e _____________________________ U n em p loym en t c o m p e n s a tio n _________ Workmen ls compensation State te m p o r a r y d is a b ility insurance . — ... A ll s e le c t e d i t e m s ________________________ A ll s e le c t e d ite m s ex clu d in g p r e m iu m p a y ____________________________ A v e r a g e e x p e n d itu re s in e sta b lis h m e n ts _________w ith p r a c t ic e in e ffe c t D o lla r s Cents P ercen t per per of year m a n -h o u r per p a y r o ll 1 e m p lo y e e 2 9 .2 373 3 .4 1 .7 9 .1 4 .9 $1 92 1 .8 .9 4 .8 72 37 196 37T T20 772 377 T33 .5 2 .4 7 .0 1.2 .3 12 51 149 3 .5 ITT 373 177 ITS "53 133 2 .5 2 .3 1 .6 1 .4 1 .3 .9 52 47 34 .7 .4 15 3 0 .8 1 6 .5 649 2 2 .2 1 1 .9 464 1 G r o s s p a y r o lls in clu d e tota l ea rn in g s (w a g es) b e fo r e d e d u ctio n s . 2 T ota l ex p e n d itu re s fo r e a ch ite m d iv id ed b y n u m ber o f e m p lo y e e s . SO U R CE: U . S. D ep a rtm en t o f L a b o r , B u reau o f L a b o r S t a t is t ic s . 2:09 3. Labor-Management Relations in Selected Industries 3:01 The Automobile Industry An outstanding ch a ra cte ristic o f the automobile industry and i t s p rin cipal companies is s iz e . General Motors Corp. alone has more than 400,000 employees working under the terms o f c o lle c tiv e bargaining agreements, including it s plants outside o f the automobile industry; Ford Motor Co. and the Chrysler Corp. each have about 140,000. Wiether measured in it s e ffe c t s on costs to the companies, on income to the workers, or on the Nation*s economy, c o lle c tiv e bargaining in th is industry has special sig n ifica n ce . and in te re s t. The innovations in labor-management relation s during the past decade, including wage esca la tion , annual wage increases based on produ ctivity, long-term con tra cts, and supplementary un employment compensation plans, have attracted worldwide attention la rg ely because o f the importance o f th e ir sponsors. They r e fle c t a sense o f experimentation in accord with the in du stry's tra d itio n a l encouragement o f tech nological advances and the boldness o f union leadership. The h istory o f c o lle c t iv e bargaining in the industry is la rgely a product o f the past 2 decades. Over the years-, labor and management have modified the attitu des which marked the early stages o f th is h istory . Management has con sisten tly and zealously guarded the right to h ir e , to maintain d is c ip lin e , to make the decisions regarding production— in sh ort, the right to manage; the union has constantly sought to enlarge the scope o f c o lle c t iv e bargaining. The United Automobile, A ircraft & A gricultural Implement Workers o f America, the major union in the industry, has grown in th is period from a few thousand members to a powerful organization o f about 1,320,000 dues-paying members in 1956. I t has su ccessfu lly withstood the ea rly t r ia ls o f factionalism within it s ranks and the Communist-oriented elements Which sought to dominate i t . Thus, in recent years the major labor-management negotiations in the industry have brought together a strong manage ment and a strong union in an atmosphere o f respect fo r each o th e r 's strength. The Industry What is generally known as the automobile industry is part o f a larger in dustrial group ca lle d the Motor Vehicles and Motor-Vehicle Bquipraent Industry. In broad o u tlin e , the industry includes the manufacture o f passenger cars, motortrucks, bodies, and parts. I t is organized roughly into 2 groups: (1 ) A few firm s, with many plants, which assemble complete veh icles and also make parts, and (2 ) several hundred supplier firms which make parts. Factories range in size from huge assembly plants employing 25,000 or more workers to small plants, with a few workers, pro ducing component parts or a ccessories. ( 1) 2 A sin gle automobile or truck requires the pu ttin g-to gether o f about 16,000 separate parts. Highly integrated massproduction techniques involve extensive planning and organization. Parts are carried by moving b e lts or conveyors to work stations where the workers jo in or assemble them, performing only a lim ited number o f operations on each u n it. Completed veh icles are produced at rates often exceeding 1 each minute. Despite the large size o f the industry 3 manufacturers are predominant—General Motors C orp., Ford Motor Co., and the Chrysler Oorp. They produced over 95 percent o f the more than 5 .8 m illion passenger cars and over three-fourths o f the 1.1 m illion trucks b u ilt in 1956. The economics o f la rge-sca le production and intense competition fo r the mass market, p a rticu la rly in passenger cars, has resulted in the merger o f smaller companies, or th e ir withdrawal from the industry. By la te 1956, only 2 o f the smaller automobile manufacturing companies remained in operation—American Motors Corp. and the Studebaker-Packard Corp. There are 12 nation ally known truck manufacturers and a number o f producers o f veh icles fo r s p e cia l purposes. Motor veh icle manufacture is concentrated in the Great Lakes region, where more than fo u r -fift h s o f the workers are em ployed. Michigan, with D etroit as the center o f the industry, alone accounted fo r more than h a lf o f the in dustry's employment in 1954. Another 16 percent were employed in the 2 neighboring States o f Ohio and Indiana. However, plants making motor veh icles or parts are scattered throughout more than 30 States. The industry employed over 860,000 workers early in 1957, o f Whom 700,000 were fa ctory production workers. Among the largest occupational groups were assemblers and machine-tool operators performing rep etitiv e tasks; le s s numerous, but very important in the productive process, were the machine-tool s p e c ia lis ts , t o o l and die makers, and other s k ille d craftsmen. Women comprised about a tenth o f the labor fo r c e . They were engaged mainly in o f f i c e o r lig h t fa ctory work, although some women worked sid e -b y -sid e with men on assembly lin e s . The Union The vast m ajority o f workers in the industry are repre sented by the International Union, United Automobile, A ircra ft & A gricultural Implement Workers o f America (UAH). A number o f other unions, including a f f ili a t e s o f the AFL-dO and u n a ffilia te d unions, have bargaining rights fo r sp e cia l cra fts or classes o f employees o r f o r certain plants. 3:01 In addition to i t s predominance in the motor veh icles industry, the UAW is the major union in the a gricu ltu ra l implement industry and has substantial membership in a ir c r a ft and other metal working in du stries. I t maintains separate departments fo r each o f the major multiplant companies and industries in order to coordinate lo c a l union demands, administer the master contracts and handle grievances which go to a rb itra tion . In 1954, the UAW had a paid profession al and c le r ic a l s t a f f o f 950 employees engaged in work relatin g to organizing, research and engineering, s o c ia l se cu rity , p u b licity , education, p o l it ic a l a ctio n , leg a l matters, community serv ices, and other a c t iv it ie s . I t had 1,250 lo c a l unions and about 50,000 lo c a l union leaders, shop stewards, and committeemen, most o f idiom were unpaid. The average monthly cost o f operating the international union exceeded $1 m illio n . I t s conventions, which are held every 2 years, have been noted fo r s p ir ite d debate, democratic procedures, and vigorous contests fo r e le c tiv e o f f i c e s . Between conventions, a ffa ir s are governed by it s Executive Board, composed o f a president, secretary-treasurer, 4 v ic e presidents, and 19 regional representatives. The C ollectiv e Bargaining Structure Agreements are negotiated separately by each automobile company, covering a l l the company*s plants in which the union is recognized as bargaining agent fo r the workers. Despite the sim i la r ity o f agreement provisions among the major companies, the com panies and the union have always bargained on an individual company basis rather than on a multiemployer or industry b a sis. The ty p ic a l procedure o f the union has been to reach an agreement with 1 o f the 3 big companies, a fte r which sim ilar terms have usually been nego tiated with the remaining 2. There has been a strong tendency toward the spread o f id e n tica l settlements throughout the rest o f the industry, but variations among the smaller producers and sup p lie r s are not uncommon. Union bargaining proposals are generally based on recom mendations o f lo c a l unions and subcouncils and integrated by a h ighly competent union profession al s t a f f . Both company and union profes sion a l s t a ffs continuously study economic, fin a n c ia l, and market data, as w ell as wage and c o lle c t iv e agreement developments in other industries in preparation fo r negotiation s. Bach side s tr iv e s to develop a favorable pu blic opinion to support i t s p o sitio n . In major negotiation s, management is usually represented by a high o f f i c i a l , such as a v ic e presiden t, idio has the assistance o f various s t a f f s p e c ia lis t s ; the union, by a national negotiating com— vhich may include one or more international union o f f ic e r s . Negotiations with smaller companies are t y p ic a lly conducted by the 3:01 4 lo c a l union*s o f f ic e r s and plant-bargaining committee, with a representative o f the international union often present to advise. Despite the increasing s k i l l o f the participants and the p rofession al talen t available in major negotiations, the strik e o r the threat o f strik e remains a potent weapon in the union* s arse nal, p a rticu la rly during periods o f high and p rofita b le production. The agreements do not provide f o r , nor have the parties shown any in clin a tio n to accept, the arbitration o f disputes arisin g out o f the n egotiation o f new contracts. Since the end o f World War I I , the union has engaged in a major strik e in General Motors (1945-46) and 2 in Chrysler (1948 and 1950). 1 / In preparation fo r 1955 ne g o tia tio n s, the union convention authorized an increase in dues to bu ild a $25 m illion strik e fund, but th is fund was not ca lle d into use in major 1955 settlem ents. The c o lle c t iv e bargaining agreements negotiated by the large multiplant companies do not cover a l l areas o f bargaining, but leave certain matters fo r lo c a l plant negotiation within the general framework o f the master agreement. The determination o f occupational wage rates, in p a rticu la r, is reserved fo r lo c a l a ction . The absence o f a standard scale o f wage rates in the master agreement, and the p ractice c f individual company bargaining, re su lts in some variation s in wage rates among the major companies and among the widely scattered plants o f the same company. How ever, the a p p lica tion o f general wage adjustments is uniform among the plants o f the large companies and, to a great extent, among companies as w e ll. Major C ollect ive Bargaining Provisions Wages. —Wages are ty p ic a lly paid on a tim e-rate b a sis. In the large assembly plan ts, the long-term trend has been away from incentive systems; 2 o f the smaller companies which had main tained incentive systems fo r a number o f years discarded the prac t ic e in 1954, not without some worker discontent since the change meant a reduction in hourly earnings. Formal systems o f jo b evalu a tion , by which rates are determined through the use o f fix e d standards, are likew ise not in use in automobile assembly plants. try . Hourly rates have long been r e la tiv e ly high in the indus Darnings o f a l l production workers averaged $2.35 an hour in 1 / Ford employees west on strik e during 1949 in a dispute in volving charges o f speedup. This dispute was s e ttle d by a rb itra tion . 3s01 5 1956, as compared with $1.98 f o r a l l United States Manufacturing, and $2.10 fo r the durable-goods segment o f manufacturing. Wage adjustments are t y p ic a lly made across the board, that i s , a l l workers receive the same cents-per-hour increase. Although addi tion a l increases have been negotiated fo r the s k ille d craftsmen, sporadic signs o f d is s a tis fa c tio n with th e ir rate d iffe r e n t ia ls over le s s e r s k ille d job s have appeared among these workers in re cent years. Escalator Clause and Annual Improvement Factor. —In 1948, the General Motors Gorp. and the UAH negotiated a precedent-making agreement which, in subsequent years, exercised an influence fa r beyond the automobile industry. In th is 2-year agreement, the com pany and the union form alized a set o f p rin cip le s which had served as a foundation fo r c o lle c t iv e bargaining fo r a long time but had not previously been reduced to concrete terms. The agreement sought to Cl) esta blish the buying power o f an hour o f work on a f a i r basis (t h is ca lled f o r a general wage in crea se); (2 ) p rotect the buying power o f an hour o f work (t h is was dime by a c o s t - o f liv in g escalator clause under ifcich upward or downward adjustments in a c o s t -o f-liv in g allowance were to be made 4 times a year on the basis o f the Consumer P rice Index o f the Bureau o f Labor S t a t is t ic s ); (3 ) improve the buying power o f an hour o f work, thus assuring the worker o f a gradually increasing standard o f liv in g (t h is was done by "annual improvement fa c t o r " increases o f 3 cents an hour); and (4 ) s ta b iliz e relation s through a long term contract without a provision fo r reopening. 2/ These provisions were not adopted in a s ig n ifica n t number o f agreements u n til they were reaffirm ed in a new 5-year contract negotiated by General Motors Corp. and the UAW in May 1950. There a fte r , other automobile companies negotiated sim ilar clau ses, and the p rin cip les o f wage esca lation and annual p rod u ctivity increases spread to other industries in widening c ir c le s . Changes in the pro vision s have been made since th e ir inception—the e sca la tor clause was m odified; the annual increase was raised to 4 cen ts, then to 5 cents, and in the 1955-58 agreements to 6 cents o r 2§ percent 2 / The agreement contained th is declaration o f p r in cip le s : "The annual improvement fa c t o r provided herein recognizes that a continuing improvement in the standard o f liv in g o f employees depends upon tech n ological progress, b etter t o o ls , methods, proc esses and equipment, and a cooperative attitude on the part o f a l l parties in such progress. I t further recognizes the p rin cip le that to produce more with the same amount o f human e ffo r t i s a sound economic and s o c ia l o b je ctiv e . . ." 3s01 6 o f base pay; and the 5-year agreement mas, in e f f e c t , reopened fo r lim ited negotiations in 1953; but the basic p rin cip le s remain in ta ct in the 3-year agreements negotiated in 1955. Supplementary Unemployment Compensation. —This innovation in the Ford Motor C o .'s 1955 agreement with the UAH quickly spread to other large automobile companies. I t was a product o f the union's long campaign fo r a guaranteed.annual wage, and a compro mise in union demands developed by the Ford Motor Co. The plan c a lls fo r company payments into a fund o f 5 cents fo r each hour worked beginning June 1955; the accumulation o f individual worker c r e d its ; and payment fo r a period up to 26 weeks o f supplemental unemployment b e n e fits , ranging from $2 to $25 a week, to l a i d - o f f workers with at lea st 1 yea r's se n io rity , such payments to begin on o r a fte r June 1, 1956. B enefit payments are contingent upon the fin a n cia l status o f the fund, the amount o f the individual worker's earned cre d its , and the duration o f h is unemployment. Hhen com bined with State unemployment compensation, these b en efits H ill give the l a i d - o f f employee up to 65 percent o f his weekly stra ig h ttime pay, a fte r taxes, fo r 4 weeks (a ft e r a 1-week waiting period) and th ereafter a maximum o f 60 percent o f h is pay fo r a period up to 22 more weeks. Pension Plans. —Company-financed pension plans were nego tia te d by the major companies and the union in 1949 and 1950 and have since been lib e r a liz e d . The 1955 agreements f o r General Motors and Ford, fo r example, provide a normal monthly retirement income o f $2.25 m ultiplied by years o f se rv ice , exclusive o f Federal s o c ia l secu rity b e n e fits. Thus, a worker who r e tir e s at age 65 a fte r 30 years' service receives $67.50 a month from the company plan; and i f he is e n title d to maximum s o c ia l secu rity b e n e fits , $108.50 from the Federal government fo r a to ta l retirement income o f $175.50 a month. The plans provide fo r d is a b ilit y retirement, early r e t ir e ment, and vesting (the right to some retirement b e n e fits at 65 to workers leaving the company a fte r certain age and serv ice require ments have been met). Health and Insurance Plans. —These plans came under c o l le c t iv e bargaining about a year o r two before pension plans were negotiated. The General Motors and Ford plans provide the follow in g types o f p rotection to workers: L ife insurance, accidental death and dismemberment coverage, accident and sickness b e n e fits , hos p ita liz a tio n insurance (a ls o fo r dependents), su rgical b en efits (a lso fo r dependents), medical care payments, and maternity bene f i t s f o r women workers or fo r dependents o f men employees. Most o f these b en efits continue a fte r retirement. Workers share in the cost o f these programs. 3:01 7 Other P ra ctice s. —Other supplementary wage practices in e ff e c t in major companies include: From 1 to 3 weeks o f paid vaca tio n , depending on length o f se rv ice ; 7 paid holidays; extra pay fo r work on la te s h i f t s ; reporting pay guarantees; and various types o f premium pay fo r work beyond the normal schedule or at unusual hours. Union secu rity is generally safeguarded by 2 agreement p rovision s: C l) A union shop clause under which employees are re quired to become members o f the union, a fte r a probationary period , as a condition o f continued employment, and (2 ) a checkoff clause under which the employer deducts the worker's membership dues from h is earnings and remits i t to the union. Job secu rity fo r individual workers is provided by se n io rity ru les. There are many variation s and in terpretations o f these rules and th eir ap plication has often been a source o f controversy. Administration o f the contract is a mutual concern o f both company and union. The corporations tra in thousands o f fo r e men and other o f f i c i a l s to understand the agreement and keep them informed o f changes in p o lic y and contract in terpretations through w ritten p o lic y d ir e c tiv e s . The union trains thousands o f lo c a l stewards to understand the contract and to handle members* griev ances in fa c e -to -fa c e dealings with management representatives. Grievances may be s e ttle d at any 1 o f 4 le v e ls : (1 ) By the worker, often with the aid o f the steward, and the foreman; (2 ) the union shop committee and lo c a l plant management; (3 ) the corporation and the international union; and (4 ) the impartial um p ire , whose decision is fin a l and binding. Grievances at the fin a l le v e l are generally handled ce n tra lly by the companies and are reviewed by the u n ion 's national department fo r the p a rticu la r company to see i f they merit re fe r ra l to the impartial umpire. Ar b itra tio n o f unsettled disputes by the umpire is lim ited to the in terpretation o r the application o f the agreement with regard to the p a rticu lar dispute. Joint labor-management arrangements regarding adjustment to tech n ological change, sa fe ty , and other such matters have gen e r a lly been opposed by the major companies, with certa in exceptions during the war p eriod . They have held the view that management has the resp o n s ib ility fo r conducting the business. The union, however, has the opportunity in negotiations or through the griev ance procedure to challenge some actions o f management. In gen e r a l, the union does not oppose the introduction o f new machinery 3:01 8 o r other tech n ological advances. The UASf usually seeks to advance i t s ideas concerning the operation o f the industry through other means, including p u b licity and proposals fo r congressional in v estiga tion s. 3:01 3:02 The B asic Steel Industry The s iz e , concentration, and economic importance o f the basic s te e l industry have profoundly influenced it s labor-manage ment rela tion s. When a major company lik e the United States S teel Corp. (or a group o f companies) and one o f the largest unions in the country, the United Steelworkers o f America, enter in to con tra ct n egotiations, a large part o f industry, the la b o r -movement, and the Federal Government anxiously await developments. I t is un iversally expected that any agreement reached w ill have f a r reaching im plications f o r the country as a whole. Thus, bargaining over contract terms in s te e l invariably takes place under the glare o f p u b licity and the accompanying public in terest in the economic consequences o f the n egotiations. Large-scale c o lle c tiv e bargaining in the s te e l industry is now only 20 years o ld . P rior to 1937, the s te e l industry vigorously and su cce ssfu lly opposed unionization. Although the campaign to organize the industry* s workers in to the ranks o f the union which is now the United Steelworkers o f America began aus p icio u s ly with an agreement with U. S. Steel in 1937, union organi zation was s t i l l opposed by some large companies. By 1942, however, most o f the basic s te e l f a c i l i t i e s were under agreements, but some o f the scars o f past struggles p ersisted fo r a number o f years. Two periods o f Government wage con trol (during World War I I and the Korean emergency) undoubtedly influenced the pattern o f bargaining in th is key industry and also contributed to enhancing the impor tance o f bargaining in s te e l to the economy as a tiio le . The Industry The s te e l industry con sists o f three p rin cip a l d iv is io n s . The la rg e st, in terms o f to ta l employment, comprises b la st furnaces, steelworks, and r o llin g m ills which are engaged in b a sic s te e l pro duction and the manufacture o f some iron and s te e l products. The second d iv isio n , iron and s te e l foundries, produces ferrous metal castings fo r use in fa b rica tin g in dustries. Iron ore mining is the third d iv is io n . This report deals p rin cip a lly with the blast fu r naces, steelworks, and r o llin g m ills segment, commonly referred to as the basic s te e l industry. Although s te e l m ills produce a va riety o f fin ish ed products ready fo r use, the fa b rica tio n o f iron and s te e l products, in general, is performed in other in d u stries. The modern basic s te e l industry dates from about 1865 When the open-hearth method o f refin in g s te e l was p erfected . This method now accounts fo r about 90 percent o f the current output o f s te e l in the United States, with the e le c t r ic furnaces producing much o f the rest. Investment in the industry is n ecessa rily la rg e , since the plants and equipment are c o s tly to construct and maintain. ( 1) 2 In 1901, a se rie s o f company mergers culminated in the formation o f the United States S teel Corp., which immediately be came the acknowledged leader in the industry. At that time, i t accounted fo r approximately 65 percent o f the N ation's s te e l-p r o ducing capacity; today, i t accounts f o r about 30 percent. However, large ca p ita l requirements have led to in du strial concentration, both horizon tal and v e r tic a l, i . e . , between sim ilar types o f establishments and between various le v e ls o f processing. Of the more than 250 companies lis t e d in the Iron and S teel D irectory, 19 fu lly integrated companies account fo r 93 percent o f the pig iron capacity, 90 percent o f the s te e l ingot capacity, and 88 per cent o f the fin ish ed h o t-r o lle d products. These firms (1 ) own and mine raw m aterials, iron o re , c o a l, and lim estone; (2 ) smelt the iron from the ore; (3 ) refin e the iron into s t e e l; (4) shape the s te e l into sem ifinished products, such as sheets, bars, beams, r a ils , pipes, or wire; and (5 ) fa b rica te more complex items, such as tanks or railway cars. S teel production is responsive to changes in the general le v e l o f business a c t iv it y . In recent years, stimulated by a high le v e l o f demand, the industry has increased it s manufacturing f a c i l i t i e s u n til i t now has a production capacity o f some 135 m il lio n tons a year, or 40 percent or more o f the estimated world out put. Continuing a long-term trend, output per man-hour increased at the average rate o f 2.9 percent per year fo r the period 1947-55, although year-to-year changes were irregu la r. Basic s te e l m ills are located in at least 28 o f the 48 S tates. However, the Great Lakes area, western Pennsylvania, and the "Eastern D is tr ic t" (comprising New England, New York, eastern Pennsylvania, New Jersey, Delaware, and Maryland) are the three major producing areas. Leading steel-producing c it ie s in clude: Pittsburgh, Bethlehem, and Johnstown, P a.; Gary, In d .; Birmingham, A la .; and Youngstown, Ohio. During 1956, an average o f 533,000 production workers were employed in the operation o f blast furnaces, steelworks, and r o llin g m ills . Few o f these workers were women. The Union The United Steelworkers o f America, a f filia t e d with the AFL-CIO, represents p r a c tic a lly a l l production workers in the basic s te e l industry. I ts 1.2 m illio n members are employed in iron and other metals mines, s te e l m ills , foundries, aluminum plan ts, and in a wide variety o f fa b rica tin g establishments. It is a comparatively 3:02 3 young union. Organized in 1936 as the S teel Workers Organizing Committee, it became an international union and assumed it s present name in 1942. The new union, cooperating with the lon g-established but weak Amalgamated A ssociation o f Iron, S te e l, and Tin Workers (which was la te r merged with the Steelworkers) received substantial a s s is t ance in the form o f money, organizers, and leaders from the United Mine Workers o f America. P h ilip Murray, a miner, became the spear head o f the drive to organize the Steelworkers and was the union's president u n til his death in 1952. The campaign to organize the s te e l industry received tremendous impetus in March 1937 when the United States S teel Goxp. announced that i t had signed a contract with the Steelworkers. Many other companies quickly came to terms with the union, but a group o f large companies, commonly referred to as " L it t le S te e l," stron gly resisted organization fo r another 3 years. At the end o f 1936, the union had 125,000 members; by 1942 i t had 726,000 members; 10 years la te r , membership reached 1.1 m illion . The Steelworkers now rank among the three largest unions in the United S tates. Union headquarters are located in Pittsburgh, in the heart o f the s te e l industry. The union has under charter about 2,800 lo c a ls throughout the United States and in Canada. Because o f the s iz e and importance o f basic s te e l companies, national union o f f i c i a l s and s t a f f play a prominent role in c o lle c tiv e bargaining. C ollectiv e Bargaining Structure C ollective bargaining agreements in the basic s te e l industry are ty p ic a lly multiplant master agreements; that i s , the major s te e l companies sign individual agreements which cover a l l o f th eir steel-producing f a c i l i t i e s o r su b sid ia ries. For example, the master agreements negotiated by U. S. Steel since 1937 have applied to the corp ora tion 's c h ie f su b sid ia ries—C a rn eg ie-Illin ois S teel C orp., Columbia Steel C o., National Tube C o., Tennessee Coal, Iron and Railroad Go., American Steel and Wire Co., and the Geneva Steel Co.—now reorganized into operating d iv isio n s. These agree ments cover a l l workers occupying production, maintenance, and hourly rated nonconfidential c le r ic a l jobs in and about the s te e l and zinc producing plants and the byproduct coke ovens. Local plant supplementary agreements are often negotiated to deal with conditions at the particu lar plant. T ra d ition ally, the U. S. S teel Corp. has been acknowledged as the leader and pattern s e tte r o f the industry. The practice o f pattern bargaining, or follow in g the example o f a leader, is deeply 3:02 4 ingrained in the structure o f bargaining in the industry. Major agreements expire and must be renegotiated at the same time; thus, a s tr ik e , i f one ensues, a ffe c ts most o f the industry. A s e t t le ment by U. S. S te e l, or on occasion by another large company ( e . g . , Bethlehem S t e e l), invariably becomes a formula fo r other s e t t le ments in the industry. Unlike the automobile industry, Where pattern bargaining is also dominant, the major s te e l companies (the number v a ries) from time to time jo in together in negotiating with the union on wage demands. Except fo r the fa ct that each com pany subsequently signs a separate agreement, which may d iffe r in d e t a ils , th is procedure, o r it s e f f e c t s , resembles multiemployer or industrywide bargaining, and it is therefore not uncommon fo r bar gaining in the s te e l industry to be so characterized by persons ou tside the industry. Until 1956, s te e l agreements were generally fo r 2-year terms, with provisions fo r wage negotiations (u su ally with the right to s tr ik e ) in the o f f year. The 1956 agreements, with 3-year terms, eliminated the wage reopening p rovision s, incorporating in th eir stead provisions fo r automatic annual wage and frin ge benefit increases and fo r semiannual wage adjustments based on the movement o f the Bureau o f Labor S t a t is t ic s ' Consumer Price Index. The adoption o f a jo in t jo b c la s s ific a tio n and evaluation program, beginning in 1947, marked a sig n ifica n t new development fo r the industry and the union. P rior to th is time,, jobs in the s te e l industry were exception a lly diverse and changeable, and wage rate in eq u a lities within plants and between plants constituted a continuous source o f d i f f i c u l t i e s fo r the companies and the union. These problems were magnified during World War 11, causing the National War Labor Board to order the ration a lization o f the wage structure in the industry. With the assistance o f a Steel Com mission established by the Board, the major s te e l companies and the union entered into studies and negotiations which continued long a fte r wage con trols were ended. Under the programs fin a lly worked out in U. S. S teel and Bethlehem S teel, f o r example, a l l jobs were c la s s ifie d into 30 job classes (la t e r increased to 32, then reduced to 31) with hourly wage d ifferen ces o f 3.5 cents be tween cla s s e s . This increment was subsequently increased (beginning July 1, 1958, i t w ill be 6.7 ce n ts). The achievement by agreement o f th is systematic device fo r wage s e ttin g , in the face o f the tremendous magnitude and complexity o f the undertaking, stands as a milestone in the h istory o f labor-management relation s in the basic s t e e l industry. 3:02 5 Agreement Provisions The follow in g sectio n deals s p e c ific a lly with provisions o f U. S. Steel Corp. agreements. In general, sim ilar provisions apply to other large s te e l companies under contract with the United Steelworkers o f America. Wages. —The 1956 contract established a rate o f $1.82 per hour fo r the lowest job c la s s ific a t io n . Increasing at increments o f 6.3 cents an hour, base rates fo r other job classes range up to $3.71. The 3-year contract provides fo r automatic wage-rate in creases in 1957 and 1958 iriiich would bring the lower and upper lim its o f the basic hourly wage structure to $1.96 and $3.97, respectively (exclu sive o f c o s t -o f-liv in g allowances). These rates are guaranteed minimums; workers paid on an incentive basis generally earn more than the standard hourly rate. By way o f contrast, the corresponding rates fo r the lowest and highest jo b classes in July 1948 were $1,185 and $2.58. The la rger increases, in cents per hour, fo r the upper job classes over the 10-year period illu s tr a te the sp ecia l attention that the industry and the union have given to maintaining s k i ll d iffe r e n t ia ls . Geographic wage d iffe r e n t ia ls , which had long existed between northern and southern operations, were gradually reduced, starting in 1947. Since July 1, 1954, a l l U. S. Steel Gorp. s te e l m ills maintain the same wage sca le s. A semiannual c o s t -o f-liv in g escalator clause was included fo r the f i r s t time in basic s te e l agreements in 1956. This clause provides fo r upward adjustments proportionate to the change in the Bureau o f Labor S ta tistics* Consumer P rice Index. In the event liv in g costs declin e, the c o s t -o f-liv in g allowance w ill not be re duced u n til a decline in the CPI warrants a reduction o f at le a st 2 cents an hour. Revisions become e ffe c tiv e in the f i r s t pay period beginning on or a fte r January 1 and July 1 o f each year. Related Wage P ra ctice s. —S h ift d iffe r e n tia ls o f 6 cents an hour fo r the afternoon s h ift (s ta r tin g between 2 p. m. and 4 p. m.) and 9 cents an hour fo r the night s h ift (sta rtin g between 10 p. m. and 12 midnight) are to be increased to 8 cents and 12 cents, e ffe c t iv e July 1, 1958. Time and on e-h alf fo r a l l work performed a fte r 8 hours a day or 40 hours a week has been provided in every agreement since 1937; the same premium rate has applied to a l l work performed on the sixth and seventh consecutive day since 1942. The 1956 agree ment provided premium pay fo r a l l Sunday work fo r the f i r s t time— 3:02 6 time and one-tenth e ffe c t iv e September 1, 1956, time and o n e -fifth e ffe c t iv e July 1, 1957, and time and one-fourth a year la t e r . Pay f o r holiday work was raised to double time and a tenth in July 1957 (from double time) and to double time and a fourth fo r the th ird contract year. Seven paid holidays are provided in the agreement; p rio r to 1952, when 6 paid holidays were agreed upon, there were no paid holidays. Paid vacations have been provided under agreements since 1944. The 1956 agreement provides a 1-week vacation with pay a fte r 1 year o f serv ice; a fte r 3 years, an extra h a lf week o f pay is a l lowed, although vacation time is not increased. A 2 weeks' vaca tion i s provided f o r each worker with between 5 and 15 years o f s e rv ice , with 2§ weeks' pay fo r those with 10 to 15 years; and 3 weeks' vacation is allowed a fte r 15 years o f se rv ice , with 3| weeks' pay a fte r 25 years. Workers scheduled to report fo r work are paid fo r 4 hours i f , upon reporting, no work is available. Workers la id o f f because o f a permanent shutdown o f a plant or department receive a severance allowance, provided they have at le a st 3 years o f continuous se rv ice . Workers with 3 to 5 years' service receive 4 weeks' pay; 5 to 7 years, 6 weeks' pay; 7 to 10 years, 7 weeks* pay; over 10 years, 8 weeks' pay. Supplemental Unemployment B en efits. —A supplemental unem ployment ben efit plan fo r l a i d - o f f employees with at lea st 2 years o f continuous serv ice mis established in the 1956 agreement. It w ill provide up to 65 percent o f take-home pay, when combined with pu blic unemployment compensation, fo r a maximum o f 52 weeks. Bene f i t s are to be paid out o f a pooled fund to be b u ilt up by company contributions o f 3 cents a man-hour, with a contingent l i a b i l i t y o f 2 cents per man-hour to be paid i f needed. Insurance and Pension Plans. —L ife and health insurance coverage, jo in t ly financed by the company and the workers, has been provided under U. S. Steel agreements since 1949. Untier the 1956 con tra ct, l i f e insurance is provided in amounts ranging from $3,500 to $6,000 before retirement, and from $1,300 to $1,550 a fte r r e tir e ment. Employees who lose wages because o f accident or sickness d is a b ilit ie s receive payments ranging from $42 tc $57 weekly fo r up to 26 weeks per d is a b ilit y . H ospitalization and su rgical in surance are available fo r workers and th eir dependents. Under a noncontributory pension plan, also under agree ment since 1949, pensions w ill be increased on November 1957, 1, 3:02 7 to a minimum o f $2.40 per month, exclusive o f s o c ia l secu rity b en efits, fo r each year's service p rior to that date, and $2.50 each year th ereafter, up to a maximum o f 30 years. Under the pension formula, lon g-service and higher paid steelworkers may receive more than th is minimum. for Union S ecu rity. —For a long time, the union shop was a disputed issue in the steel industry. However, a modified form o f union shop provision was peacefully written into the 1956 agreement. The clause makes union membership compulsory fo r new employees and continues the maintenance o f membership requirements fo r employees who were members o f the union at the e ffe c t iv e date o f the agree ment or who la te r became members. (Employees who up to the tine o f th is agreement had not join ed the union were not required to do s o ; in th is resp ect, the provision d iffe r s from the f u l l union shop p rov ision .) The agreement also provides fo r dues ch eckoff. Job S ecu rity. —The 1956 agreement includes a q u a lifie d sen iority clause su bstan tially the same as the one included in the o rig in a l con tract. Factors considered fo r promotion, la y o ff, and rehire are (a ) a b ilit y to perform the work, (b ) physical f i t ness, and ( c ) continuous s e rv ice . Only when items (a ) and (b ) are r e la tiv e ly equal among competing employees is length o f service a determining fa c t o r . Separate sen iority l i s t s may be set up fo r promotions and fo r terminations from the p a y ro ll. E xisting se n io rity units may vary among plants, as these are established under lo c a l agreements. What constitutes continuous service and the other rules that govern the application o f the s e n io rity p rin cip le are fu lly explained in each contract. Seniority l i s t s are subject to revision every 6 months, and disputes arisin g over se n io rity are su bject to the grievance procedure. F in a lly, management is required, under the agreement, to post n otices o f job vacancies as they develop in the promotional lin e o f any s e n io rity un it, so that employees in the unit who wish to apply fo r the vacancy may do so. Grievance Procedure and A rbitra tion . —Formal steps fo r the adjustment o f grievances a risin g out o f employees* complaints have been included in every agreement since 1937. Steps fo r adjustment o f grievances, as described in the 1956 contract, include: (1 ) I n i t i a l complaint by the employee to the foreman or to an assistant grievance committeeman or both; (2 ) i f agreement is not reached, appeal to the department superintendent may be made. Further appeal steps are p ossib le to (3 ) the grievance coranittee and the general superintendent; (4 ) a representative o f the international union with company representatives, a fte r review by the d is t r ic t union 3:02 If representative; and (5 ) appeal to arbitration i f no settlement is reached at step 4. The length o f time allowed fo r each step, and the records to be kept, are fu lly explained in the contract. A rbitration procedure as outlined in the agreement pro vides f o r a Board o f C onciliation and A rbitration, whose chairman serves as im partial umpire f o r a l l grievance cases that come to arbitration and is responsible f o r a l l d ecision s. Safety Committee. —The 1956 agreement provides that "the company and the union w ill cooperate in the continuing o b je ctiv e s to elim inate accidents and health hazards.” As a step in carrying on th is work, the agreement c a lls fo r the establishment o f a jo in t safety committee in each plant to advise with management concerning sa fety and health matters, but not to handle grievances. One com m ittee, generally con sistin g o f 6 members, 3 designated by the union and 3 by management, i s established in each plant. 3:02 3:03 Coal Mining Behind the s t a b ilit y now characterizing labor-management rela tion s in coa l mining, the advances in mining technology, the high le v e l o f wage rates, and the notable achievements in providing health protection and pensions fo r mineworkers, lie s one o f the most turbulent records o f labor-management relationships in a l l United States industry. During the past few decades, other indus t r ie s have become more prominent in the economic l i f e o f the Nation and in shaping the form o f c o lle c t iv e bargaining n a tion a lly, and other unions have surpassed the United Mine Workers in membership. However, the study o f labor-management rela tion s in coal mining is s t i l l a highly rewarding undertaking; sca rcely any problem faced by another industry and union in the past has not also been a problem in the coal industry. Unionism in coal mining is a long-established in s titu tio n , with orig in s going back to the middle o f the 19th century. The United Mine Workers o f America was organized in 1890 by the merger o f two competing coal unions. In 1900, the UMW was the largest union in the country, a p o sitio n i t maintained fo r over a quarter o f a century. In 1957, including membership outside the coal industry en rolled in i t s a f filia t e d D is tr ict 50, the UMW, with an estimated membership o f from 450,000 to 500,000, remains among the la rger unions in the Uhited States. The h istory o f the United Mine Workers o f America f i l l s a dramatic chapter in the record o f .co lle ctiv e bargaining and the trade union movement. Decades o f c o s t ly , and frequently v io le n t, struggles to place c o lle c t iv e bargaining in bituminous coal on a stable industrywide fo o tin g , Which la rg e ly involved the problem o f organizing the South, have receded into the background. Since the la te 1930*s , the bulk o f bituminous coal produced in th is country has been mined under union conditions. By 1941, the la st portion o f a North-South wage d iffe r e n tia l was elim inated. In anthracite, concentrated in one S tate, no such problem arose, and an industry wide structure o f bargaining has been in existence f o r about a h a lf a century. A basic p rin cip le o f the UMW, con sisten tly advocated over the years, related the economic health o f the coal industry and the w ell-being o f the mineworker to increasing prod u ctivity. Somewhat unique among unions in going fa r beyond acceptance o f change, UMW stea d fa stly emphasized that greater mechanization was imperative i f the industry was to be able to raise the liv in g standards o f workers, enable old er workers to r e tire with secu rity , and a ttra ct young workers. In return fo r encouraging and pressing fo r tech n ological improvements, the union made i t clea r that i t would in s is t on workers sharing in the resu lts o f tech nological progress. ( 1) 2 Under c o lo r fu l and aggressive leadership, the union achieved notable stature in the coa l industry and in the labor movement. UMW members have repeatedly demonstrated a high degree o f d iscip lin e and lo y a lty to th e ir union and to i t s lea ders. UMW leaders played a major role in the formation o f the CIO and in the organization o f the s te e l industry. Since 1947, however, the UMff has not been a f filia t e d with e ith e r the CIO or the AFL, and is not now a part o f the merged AFL-CIO. Bituminous Coal Bituminous or s o ft coal is mined coom ercially in 28 States, o f which 8—West V irgin ia, Pennsylvania, Kentucky, I l l i n o i s , Ohioj V irgin ia, Indiana, and Alabama—account f o r over 90 percent o f the coal produced. More than 5,000 individual mining companies own and operate more than 8,000 mines. The largest company produces only 6 percent o f to ta l output; the 15 largest producers account fo r a third o f the output. Commercial coal mining companies sup p ly more than 80 percent o f the bituminous co a l output; "ca p tive" mines, i . e . , those owned by companies in other industries and producing fo r th eir own use (p rin c ip a lly s te e l m ills and ra ilro a d s ), account fo r the remainder. About three-fourths o f 1955 bituminous-coal output came from underground or deep mines, the major source o f co a l fo r the foreseeable fu tu re. Strip o r open p it mining accounted f o r nearly a fourth o f to ta l output. A recen tly developed method o f recovery, high-w all auger mining, which is e sse n tia lly an extension o f s tr ip mining, accounted fo r less than 2 percent o f output. Over the past 50 years, the bituminous-coal industry has known r e la tiv e ly few periods o f sustained s t a b ilit y and prosperity. Even in the decade follow in g World War I I , when other major indus t r ie s reached new heights o f production, the production o f s o ft coal declined su bstan tially. From an all-tim e high o f 630 m illio n tons mined in 1947, output f e l l to 390 m illion tons in 1954, the lowest le v e l sin ce 1938. A recovery was noted in 1955 and 1956, and hopes were high that the industry was entering upon a period o f s t a b ilit y . With increasing mechanization and a rise in the propor tion o f coal mined by strip pin g, the in dustry's produ ctivity has recorded extraordinary gains. Between 1935 and 1941, output per man-hour rose by 27 percent. Following a b r ie f declin e during the war period, produ ctivity continued to advance; by 1951, output per man-hour was more than 50 percent above the 1935 le v e l. During 3:03 3 the past few years, the advance has been accelerated; in 1955, man-hour output reached a le v e l 50 percent higher than in 1951 and more than double the 1935 rate. Since coal production and consumption have not kept pace with p rod u ctivity, employment in the mines declined stea d ily . In 1954, average employment was approximately h a lf the 1947 le v e l. Some gain in employment occurred in 1956 as demand and production increased. Average employment during 1956 was s lig h t ly in excess o f 200,000 workers. The men remaining with the industry have enjoyed rapidly increasing wage rates and supplementary b e n e fits, plus secu rity upon retirement. C ollective Bargaining Structure The structure o f bargaining in the bituminous-coal indus try can be characterized as a related series o f multiemployer nego tia tio n s , through association s, culminating in standards o f wage rates and related ben efits which cover the vast m ajority o f workers in the industry. Instead o f one central association representing a l l unionized mines, a number o f formal and informal associations represent the employers in c o lle c tiv e bargaining. The composition o f the major employer groups has changed many times during the past 15 years. In 1950, the Bituminous Coal Operators' A ssociation was organized to consolidate the bargaining e ffo r t s o f northern commer c ia l and "ca p tive" producers. The Southern Goal Producers' Associa tion represents a number o f operators* association s in the South. Other smaller a ssocia tion s, either a ffilia t e d with these two major groups or independent, account f o r most o f the remaining segments o f the organized industry, la rgely in the Midwest. The e ffe c t o f a m u ltip licity o f employer groups has been minimized, in p ra ctice , by the common acceptance o f the agreements negotiated by the largest group—the Bituminous Goal. Operators' A ssociation. For the union, authority fo r negotiating major agreements is vested with negotiating committees under the d irection o f the c h ie f o ff ic e r s o f the UMM. Simultaneous negotiations with separate employer groups o fte n require s p littin g the union's negotiating committee. The basic c o lle c tiv e bargaining agreement in the industry, ca lled the National Wage Agreement, sets the standards fo r mines which account fo r the bulk o f the bituminous coal produced in the United States. This agreement developed out o f the more lim ited Appalachian agreements, the f i r s t o f irfiich was negotiated in 1933. 3:03 4 Supplementary agreements negotiated in the various coal d is t r ic t s deal with issues pecu liar to each producing f i e l d and esta blish d iscip lin a ry rules and procedures. The slogan "no con tra ct, no work" has been a dominant theme o f the United Mine Workers bargaining technique. The stormy background o f labor-management relation s in the bituminous-coal industry is re fle c te d in the record o f strik e s compiled by the U. S. Department o f Labor's Bureau o f Labor S ta tis t ic s . Between 1927 and 1952, strik e idleness in bituminous coal averaged over 5 m illion man-days a year. Three-fourths o f the to ta l idleness resulted from the general or industrywide type o f s tr ik e , such as would flow from negotiations on wage o r other general issu es; the remainder resulted from numerous small stoppages at individual mines, usually arisin g on issues relatin g to jo b se cu rity , and mine conditions and p o lic ie s . Because an in du strial economy depends so heavily on a continued production o f co a l, prolonged work stoppages in v ite Government intervention. In 1943, and again in 1946, work stop pages resulted in seizure and operation o f the mines by the United States Government and agreements were negotiated with the union by the Government, against the protests of the operators. In la te r years, the union ran into c o s tly le g a l d i f f i c u l t i e s and injunctions through the mechanism o f the Taft-H artley A ct. One o f the e ffe c t s o f these incidents was to build up, in both operators and union, a strong desire to take bargaining out o f the public arena and to avoid Government intervention. The 1956 negotiations provided a good example o f the new p o lic y . Meetings between the president o f the UMf and the executive o f f ic e r s o f the association s were held without p u b lic ity , and resu lts were not re vealed u n til the UMW convention ea rly in October. As usual in these negotiation s, the Bituminous Goal Operators* A ssociation s e ttle d f i r s t . Iden tical terms were subsequently accepted by the Southern Goal Producers* A ssociation and groups representing organized mines in other areas. As fo r the p o s s ib ilit y o f Government intervention, there has been no industrywide strik e since 1952. Major Agreement Provisions The National Wage Agreement was amended in 1956, providing f o r a wage increase and changes in supplementary b e n e fits. The agreement also provided fo r an automatic increase e ffe c t iv e A pril l , 1957. The provisions summarized on the follow in g page r e fle c t the standards in e ffe c t as o f that date. 3:03 5 Hours. —Since 1947, workers in the mines have had a normal workday o f 8 hours underground. The 8 hours include travel time to and from the working face (p o rta l to p o rta l) and a lunch period. Workers on the outside have a 7^-hour day, including a paid lunch period. Wages. —Sates f o r inside workers paid on a day basis range from $21.96 fo r the lowest paid c la s s ific a tio n (in clu d in g helpers and u n cla ssified inside labor) to $24.68 fo r loadingmachine operators and cu ttin g- and shearing-machine operators. The basic rate fo r outside dayworkers is $21.23 with somewhat le s s going to car cleaners and other able-bodied laborers. One o f the long-range p o lic ie s o f the union has been to eliminate incentive pay. The proportion o f inside workers paid on a tonnage o r p iece-ra te basis has been declining with the ad vancing mechanization o f the mines. No change in tonnage and piece rates has been made since 1941; a l l o f the increases to incentive workers since that date have been in the form o f a f la t d a ily allow ance. Thus, an increasing portion o f the tonnage workers' earnings i s a day rate which they receive fo r each day in the mine. Related Wage P ra ctices. —A premium rate o f time and oneh a lf is paid fo r a l l work in excess o f the normal d a ily schedule and on Saturdays. Double time is paid fo r work on Sundays and holidays (recognized in d is t r ic t agreements). Paying fo r holidays not worked is not provided fo r in the agreement. Dayworkers going in to the mine in the morning are assured o f at le a st 2 hours' reporting pay. S hift d iffe r e n tia ls o f 4 cents an hour fo r the second s h ift and 6 cents an hour fo r the th ird are provided. The necessary work t o o ls , safety equipment, and su p plies, including miners' lamps, are furnished by the employer. A fter 1 yea r's serv ice , miners receive 14 calendar days o f vacation time, at a f l a t rate o f $220, divided into 2 parts; an 11-day summer shutdown, and December 24, 26, and 31. Bituminous Coal Welfare and Retirement Fund. —The United Mine Mbrkers Welfare and Retirement Fund, administered under a tr ip a r tite trustee system, is the largest industrywide fund in the United States. I t is financed by a royalty on each ton o f coal mined, paid by a l l operators under agreement with the union. S tart ing with a payment o f 5 cents a ton in 1946, the royalty was in creased to 10 cents in 1947, 20 cents in 1948, 30 cents in 1950, and 40 cents in 1952. 3:03 6 Through the years, the number and types o f ben efit pro grams, and the individual requirements fo r e l i g i b i l i t y , have also undergone change, generally depending on the fin a n cia l p o sitio n o f the fund. As o f August 1957, the fund had 4 ben efit programs: (1 ) Pensions o f $100 a month, in addition to s o c ia l secu rity bene f i t s to miners over 60 years o f age who qu alify under working time and performance requirements; (2 ) h o sp ita l, medical, and su rgical care fo r miners and th e ir dependents; (3 ) funeral expense ben efits o f $350; and widow and survivor b en efits o f $650, paid in installments over 12 months; and (4 ) disaster b e n e fits , paid to dependents o f miners k ille d or se rio u sly injured in mine d isa ste rs. A ll ben efits are se lf-in s u re d , that i s , the fund provides a l l o f them, eith er in the form o f cash or se rv ice s, without the purchase o f outside insurance. Operating through the Miners Memorial Hospital A ssociation (a nonprofit corp ora tion ), the fund has b u ilt a chain o f 10 hospi t a ls in the more remote coa l mining areas, idlere f a c i l i t i e s were inadequate, to provide complete and modern medical, s u rg ica l, and h osp ital s erv ices. In other areas, serv ices are provided through available f a c i l i t i e s . One o f the outstanding functions o f the medical program is reh a b ilita tin g injured miners, p a rticu la rly the paraplegic cases. This program has returned many men form erly con sidered to be hopelessly disabled to u sefu l occupations in which they are fu lly or p a rtia lly self-su p p ortin g . Union S ecurity. —The question o f union secu rity is not a contested issue in the industry. In recogn ition o f the r e s t r ic tions on the closed shop in the Taft-H artley A ct, the agreement states that "as a condition o f employment, a l l employees sh a ll be, or become, members o f the United Mine Workers o f America, to the extent and in the manner permitted by law.” The checkoff o f union dues and assessments has long been a standard practice in the industry. Grievance Procedures. —Formal procedures f o r dealing with grievances were w ell established in the bituminous-coal industry p rio r to th eir in clusion in the master agreement. Procedures cur rently in e ffe c t provide f o r a se rie s o f defined steps to deal with d ifferen ces a risin g out o f the meaning and application o f the agree ment: (1 ) E ffort is f i r s t made to s e t t le the dispute d ir e c t ly be tween the aggrieved worker and mine management; (2 ) i f no agreement i s reached, the management o f the mine and the Mine Oommittee, the la tt e r being made up o f three mine workers e le cte d by lo c a l union members, attempt to resolve the dispute; (3 ) d ifferen ces unsettled at the second step are taken up by d is t r ic t representatives o f the union and a representative o f the coal company; (4 ) the next step 3:03 < carries the problem to a 4-member board, 2 designated by the union and 2 by the operators; and (5 ) i f the board f a i l s to agree, the matter is referred to a mutually acceptable a rb itra tor who renders a fin a l d ecision . Expenses and sala ry incident to the a r b itr a to r 's services are shared equ ally by the operator o r operators a ffe cte d and the union. The handling o f grievances is one o f the major functions o f union o f f ic e r s on the d is t r ic t and lo c a l le v e ls . From 80 to 90 percent o f a l l grievances are s e ttle d at the mine, with o r without the intervention o f a union d is t r ic t representative. Claims to work, including s e n io r ity , d is c ip lin e , and discharge grievances, and wage and job c la s s ific a t io n disputes rank as the most impor tant grievance su bjects in a l l areas. Mine Safety Program Working miners are protected by the Federal Mine Safety Code f o r bituminous and lig n it e mines. This code was adopted in an agreement between the union and the United States Secretary o f the In terior in 1946, and has been incorporated in the master c o l le c tiv e bargaining agreement as a guide f o r health and safety in the mines. Federal mine inspectors enforce the provisions o f th is code, making regular inspections o f mines and th eir equipment to insure that hazards are eliminated and that safe operating condi tion s are maintained. A Joint Industry Safety Committee, composed o f representatives o f the O K and the operators, has been set up to arbitrate appeals f i l e d by e ith e r the miners or the operators relatin g to compliance with recommendations made by the Federal inspector. This committee also consults from time to time with the U. S. Bureau o f Mines concerning review and p ossib le revision o f the mine safety code. Local mine sa fety committees, selected and paid by the lo c a l union, have the authority to inspect mining operations and equipment. Copies o f reports f i l e d by these committees are pro vided fo r the operators. I f the committee b e lie v e s, as a resu lt o f it s in spection , that immediate danger to the workers e x is ts , i t may recommend to management that a l l workers be withdrawn from the mine. The operator i s required to fo llo w th is recommendation. Anthracite Anthracite or hard-coal mining d iffe r s in many respects from the su b stan tially la rger bituminous-coal industry. Almost a l l anthracite produced in th is country comes from a 500-square-mile 3:03 8 area in Pennsylvania, whereas bituminous coal i s mined in 28 States. Ownership, to o , is fa r more concentrated in anthracite. Anthracite is used prim arily fo r space heating purposes; bituminous co a l is predominantly an in dustrial fu e l. Physical ch a ra cte ristics vary greatly among anthracite mines. Although the use o f mechanical loading equipment has grown f a ir ly rapidly, anthracite mining lags behind bituminous coal in mechanization. Anthracite markets are concentrated mainly in the Middle A tlan tic and New England S tates. The production o f anthracite, subject to the competition o f o i l and gas and sen sitive to the weather, has su ffered a long d e clin e . In 1956, average employment amounted to le ss than 30,000 workers, r e fle c tin g a d eclin e o f more than 50 percent in 5 years. C ollectiv e Bargaining Structure In 1903, the Anthracite Coal Strike Commission, appointed by the President o f the United S tates, handed down a ruling regard ing wages and working conditions fo r the anthracite industry and established a Joint Board o f C on ciliation to s e t t le disputes a risin g under the ru lin g. Up to the present time, th is award has been in co r porated, by reference, into the c o lle c tiv e bargaining agreements between the operators and the UMW, and the Board o f C on ciliation s t i l l fu n ction s. This industrywide bargaining and dispute-settlem ent arrangement undoubtedly represents one o f the oldest continuous re lationships o f i t s kind in the United States. Over the past two decades, wage negotiations in anthracite generally have follow ed, and have been g rea tly influenced by, s e t t le ments in bituminous co a l. Moving in the shadow o f bituminous-coal developments, c o lle c tiv e bargaining in anthracite has not shared the lim elight with the la rger industry. Variation among anthracite mines in the physical structure and composition o f the coal veins has led to a highly complex wage structure, in sharp contrast to the simple rate structure in e ff e c t in bituminous co a l. Methods o f compensation vary among areas, jo b s , and f o r the same job among loca tion s at the mine. Thus, fa r more emphasis i s placed on lo c a l determination o f wage o r piece rates in anthracite than in bituminous co a l. However, the rates established are expected to y ie ld a uniform le v e l o f earnings fo r each jo b . General wage changes, moreover, are negotiated f o r the industry as a whole by the UMW and a committee representing the operators, and are embodied in an Anthracite Wage Agreement which also establishes basic conditions o f work. 3:03 9 Major Agreement Provisions Provisions o f the Anthracite Wage Agreement are sim ilar in many respects to those o f the National Bituminous Wage Agree* raent. Among the more sig n ifica n t d ifferen ces are: (1 ) Anthracite miners have a 7-hour day, p o r t a l-t o -p o r t a l, and a 35-hour week; (2 ) vacation pay fo r anthracite miners is set at $140 fo r a vaca tion shutdown o f 14 calendar days; and (3 ) employer contributions fo r welfare and pension b en efits amount to 50 cents a .ton o f c o a l, as against 40 cents in bituminous. The anthracite welfare and pension program provides a $50 monthly pension in addition to s o c ia l secu rity b e n e fits, to approximately 15,000 retired miners, and a $500 l i f e insurance payment to survivors o f deceased miners. The fund also sponsors a program o f research and treatment o f a n th ra co silico sis, an occupational disease found among coal miners. Under a recip roca l agreement between the anthracite and bituminous welfare funds, a l l s i l i c o s i s cases are cared fo r by the anthracite fund and a l l back in ju ries by the bituminous fund. The anthracite fund does not provide other h o sp ita liz a tio n or medical care. 3:03 3:04 The Railroad Industry The railroa d industry is one o f the giants o f American enterprise, with an annual income o f more than $10 b illio n and an investment o f more than $31 b i lli o n in road and equipment. Since World War I I , the industry has converted almost completely to d ie s e l locom otives. Automatic switching devices, radio-telephone communications, and many other advances in mechanized maintenance and automatic recordkeeping have become more widespread in recent years. C ollectiv e bargaining in the railroad industry has be come almost a continuous process since World War I I . Agreements cover v ir tu a lly a l l workers in the industry, with more than a score o f national labor unions representing the various cra fts or classes o f workers. The major railroad transportation unions have been in existence f o r more than 70 years and labor-management re la tio n ships have been the subject o f sp e cia lize d Federal le g is la tio n since before the turn o f the century. Through the processes o f negotiation , agreement in terpretation and ap plica tion , a compre hensive system o f working rules and pay p ra ctices has emerged Wtich is unparalleled in the en tire f i e l d o f in du strial re la tio n s. The Industry Approximately 1,000 companies including switching and terminal f a c i l i t i e s report to the Interstate Commerce Commission, the Federal regulatory agency. The smallest has only a few em ployees and 1 o r 2 miles o f track; the largest has over 125,000 employees and a track system covering more than 10,000 m iles. Approximately 450 lin e-h au l ca rriers transport fre ig h t and passen gers; o f these, 126 are the large Class 1 ca rrie rs; that i s , each has an annual revenue o f more than $1 m illion . 1 / In 1952, Class 1 ca rriers received about 98 percent o f to ta l operating revenues; owned more than 220,000 m iles o f track ; and employed 93 out o f every 100 workers in the industry. Operating revenues o f Class 1 ca rriers fo r the year 1956 approximated $10.5 b i l l i o n , o f which $6 b i lli o n were paid in wages and sa la ries to approximately a m illio n employees. Freight trans port (n early 38 m illion carloads) accounted fo r 85 percent o f the revenue; passenger t r a f f i c fo r s lig h t ly more than 7 percent; and 1 / E ffectiv e Jan. 1, 1956, by order o f the Interstate Com merce Commission, Class 1 railroad ca rriers are defined as those having an annual revenue o f $3 m illion or more. ( 1) 2 m ail, express, and miscellaneous fo r the remainder. Goal was the largest single freig h t handled, follow ed by grain, o r e , and fo r e s t products. Within the past 30 years, the industry has changed from a p osition o f v irtu a l monopoly o f transportation to one o f intense competition with the trucking and a ir transport industries fo r fr e ig h t, and with the bus, airplane, and private automobile fo r passenger t r a f f i c . In addition, i t competes with p ipelin es and water ca rriers fo r the transport o f certain bulk commodities. Among the largest railway companies are the Pennsylvania; New York Central; Atchison, Topeka and Santa Fe; Southern P a c ific ; Baltimore and Ohio; and the Union P a c ific , each operating more than 6,000 miles o f track . The hub o f the Nation*s railroad network is in Chicago, idle re the great eastern and western systems meet and connections are also made with routes to the north and south. Employment on Class 1 roads declined from 1.5 m illio n at the end o f World War II to 1.04 m illion in 1956, approximately the 1940 le v e l. The operating employees—engineers, firemen, conduc to rs , and trainmen—engaged in the switching and movement o f trains over the r a ils account fo r roughly a fourth o f the work fo r c e . Non operating employees include such classes or c ra fts as shopmen, clerk s, telegraphers, maintenance, and sim ilar service employees. The work fo rce is predominantly male; women constituted le s s than 6 percent o f a l l employees in 1952. Many employees enter the industry through occupations requiring short periods o f training o r experience. They advance to b e tte r paying and more responsible jobs through extensive apprentice and on -th e -jo b tra in ing programs carried out under c o lle c tiv e agreements Which assure promotion based upon sen iority (length o f s e r v ic e ), fit n e s s , and a b ilit y . Workers ty p ic a lly take pride in being a part o f the in dustry and it s tra d itio n s. There are many railroa d fa m ilies with fath er, son, and grandfather working fo r the same company. Member ship in the same union fo r more than 30 o r 40 years is not uncommon. The s t r ic t application o f the s e n io rity p rin cip le resu lts in a sta ble work fo r c e in which younger workers, in terms o f serv ic e , are la id o f f f i r s t in any reduction in fo r c e . More than h a lf the employees in the industry were over 41 years o f age in 1952, compared with a median age o f 39 fo r the labor force o f the Nation as a whole. More than h a lf the engineers and conductors were over years o ld . 57 3:04 The Unions Trade unionism as i t now e x ists in the railroad industry traces i t s o rig in to the establishment o f the Transportation Brotherhoods—the engineers, conductors, firemen, trainmen, and switchmen—which became active organizations p rior to 1900. The f i r s t to be organized n ationally was the Brotherhood o f Locomotive Engineers established in 1863. Many o f the other national organi zations o f railroa d employees also were formed before 1900. E fforts before the turn o f the century to organize a l l railroad employees into one comprehensive union fa ile d and the railroad unions h is t o r i c a lly have developed along cra ft lin e s , although some unions repre sent employees in related a c t iv it ie s such as c le r ic a l o r maintenanceof-way employees. The 5 Transportation Brotherhoods represent the in terests o f operating employees; more than 20 other unions represent the various classes o f nonoperating employees. These unions also rep resent employees o f express and sleeping car companies, and r a i l road f a c i l i t i e s engaged in water transportation and related a c t iv i t i e s . The shop c ra ft (nonoperating) unions are a f filia t e d with the Railway Employees Department o f the APL-CIO. M a jo r O n ion s in the R a ilr o a d In d u stry 1 B o ile r m a k e r s , Ir o n Ship B u ild e r s , B la c k s m ith s , F o r g e r s and H e lp e r s , In tern a tion al B r o th e r h o o d o f 2 E l e c t r ic a l W o r k e r s , In tern a tion a l B r o th e r h o o d o f 2 F ir e m e n and O ile r s , In tern a tion a l B r o th e r h o o d o f 2 H otel and R e s ta u ra n t E m p lo y e e s and B a r te n d e r s In tern a tion al U nion 2 L o c o m o t iv e E n g in e e r s , B r o th e r h o o d o f (in d e p e n d e n t)3 L o c o m o t iv e F ir e m e n and E n g in em en , B r o th e r h o o d o f M a c h in is ts , In tern a tion al A s s o c ia t io n o f 2 M a in ten a n ce o f W ay E m p lo y e s , B r o th e r h o o d o f M a r in e E n g in e e r s* B e n e fic ia l A s s o c ia t io n , N a tion al 2 M a s t e r s , M a tes and P ilo t s o f A m e r i c a , In tern a tion a l O rg a n iza tio n 2 P o r t e r s , B r o th e rh o o d o f S leep in g C a r R a ilr o a d C o n d u cto rs and B r a k e m e n , O rd e r o f (in depen dent) R a ilr o a d S ign alm en o f A m e r i c a , B r o th e r h o o d o f R a ilr o a d T e le g r a p h e r s , The O r d e r o f R a ilr o a d T r a in m e n , B r o th e r h o o d o f R a ilr o a d Y a r d m a s te r s o f A m e r i c a R a ilw a y C a rm e n o f A m e r i c a , B r o th e r h o o d o f R a ilw a y and S tea m sh ip C le r k s , F r e ig h t H a n d le r s , E x p r e s s and Station E m p lo y e e s , B r o th e r h o o d o f S h eet M etal W o r k e r s * In tern a tion a l A s s o c ia t io n 2 S w itch m e n 's U nion o f N orth A m e r i c a T r a in D is p a tc h e r s A s s o c ia t io n , A m e r ic a n 1 E x cep t a s o th e r w is e in d ic a te d , a ll u n ion s a r e a ffilia t e s o f the A F L -C I O . 2 M e m b e r s h ip p r in c ip a lly in oth er in d u s tr ie s . 3 N ot a ffilia t e d w ith the R a ilw a y L a b o r E x e c u t iv e s ' A s s o c ia t io n . 4 The Railway Labor Executives A ssociation established in 1926 is a voluntary association o f the c h ie f executives o f the standard railroad organizations with the exception o f the Locomotive Engineers. Its p rin cipal purpose is the formulation o f broad p o l i c ie s and the promotion o f cooperative action among the various railroad unions. The railroa d unions have also published f o r more than 30 years a weekly newspaper, Labor, which has a wide c ir c u la tion among American trade unions. The C ollective Bargaining Structure The national importance o f the railroad industry, and the n ecessity o f resolving labor-management disputes without interrup tions in s e rv ic e , led the Federal Government, as early as 1888, to adopt s p e c ific le g is la tio n applicable to railroad ca rrie rs and un ions. Since that date, successive Federal laws have sought to pro vide orderly procedures fo r the settlement o f labor disputes. Currently, c o lle c tiv e bargaining is conducted within the framework o f the Railway Labor Act o f 1926, as amended in 1934. The Act o f 1926 was the result o f recommendations to the Congress o f a jo in t committee representing both the railroads and the unions, follow ing d is s a tis fa c tio n with the system governing labor relation s in the early 1920's. The Act, which applies only to railroa d and a ir transport, makes i t the duty o f a l l ca rrie rs and employees to exert every reasonable e ffo r t to make and maintain agreements con cerning rates o f pay, rules, and working con dition s. It guarantees each side the right to name it s c o lle c tiv e bargaining representatives without interference by the other s id e , and prescribes methods o f s e ttlin g various types o f disputes. A Federal agency—the National Mediation Board— is provided to aid in the resolu tion o f disputes involving union representation and those arisin g out o f the nego tia tio n o f changes in agreements. A National Railroad Adjustment Board confines it s a c t iv it ie s to grievance disputes growing out o f the in terpretation o f day-to-day application o f agreements. The Railway Labor Act i s designed to encourage settlement o f labor-management disputes by the parties themselves through the process o f free c o lle c tiv e bargaining. To th is end, elaborate pro cedures are prescribed fo r processing such disputes before the un ions may resort to strik e action. These procedures include con fer ence and consultation between the p a rtie s; mediation at request o f eith er party; voluntary a rb itra tio n ; and, in the disputes which threaten su bstan tially to interrupt in terstate commerce, the ap pointment o f fa ctfin d in g boards by the President o f the United States. Such boards may make recommendations fo r settlement o f the 3:0 4 5 dispute but th eir recommendations re ly s o le ly upon public opinion fo r acceptance and may be rejected by eith er party. Major changes in wages and working conditions have usually been negotiated on a national basis between one or more unions and a committee representing Class 1 ca rriers. National bargaining usually occurs, however, only a fte r n otices o f intent to change ex is tin g agreements are served and negotiations conducted between each individual ca rrier and the unions representing the various c ra fts or class o f employees involved. I f negotiations f a i l to resolve the issu e, the parties arrange fo r the national handling o f the dispute through committees representing the unions and the ca rriers concerned. For example, in national negotiation s, the nonoperating railway unions ty p ic a lly designate a subcommittee o f union o f f ic e r s to conduct negotiation s. Bach railroad authorizes 1 o f 3 regional (B ast, Southeast, Nest) committees to act fo r i t . The agreement disposing o f the issues is signed by these repre sentatives. A fter settlement on a national ba sis is reached, however, the t e n s agreed upon are ultim ately incorporated into the agreements between the individual ca rriers and the unions. I f the dispute is not s e ttle d through jo in t conferences, mediation, or agreement to a rb itra te, and the dispute threatens to su b stan tially interrupt essen tia l s e rv ice s, the National Mediation Board informs the President o f the United States, who may then, and in cases o f national importance usually does, appoint an emergency fa ctfin d in g board. The board has 30 days within which to hear the arguments o f the parties and report i t s recommendations to the President. A fter the creation o f the board, no change in the con d itio n s out o f which the dispute arose may be made except by agree ment o f the p a rties u n til 30 days a fte r the board has made it s re port to the President. This c o o lin g -o ff period is designed to encourage orderly bargaining and to focus public attention on the recommended settlem ent. The recommendations o f the board are not binding on the p a rties and frequently are modified. However, they normally serve as the basis f o r further negotiations and eventual settlement. In the event o f continued disagreement the parties retain the right to s tr ik e or lockou t. On a few occasion s, however, the Federal Gov ernment has assumed control and operated the railroads while the p a rties continued to negotiate th e ir d iffe re n ce s. The formal procedures required by law may take more than 6 months, and negotiations follow in g the report o f the emergency board may continue fo r several months longer. Terms o f the wage 3:04 6 settlements are often made retroactive fo r several months o r longer depending upon the duration o f the negotiations. Major Agreement Provisions Railway employees, with few exceptions, are covered by the nearly 5,000 railroad agreements on f i l e with the National Mediation Board. Probably in no other American industry are work ing relationships governed by such comprehensive agreements, com plex working rules, and long established procedures and customs. Job S ecu rity. —Among the most important provisions in each agreement are those rela tin g to se n io rity . The general rule in f i l l i n g jobs covered by agreements i s that idle re a b ilit y and q u a lifica tion s are s u ffic ie n t , s e n io rity w ill p re v a il. When lay o f f s are made, workers with the shortest serv ice are furloughed (la id o f f with reinstatement rig h ts) and are la te r re ca lle d in the order o f th eir s e n io r ity . Each cla ss o f employment usu ally has i t s own s e n io rity roster, and an employee's s e n io rity is usu ally lim ited to h is se n io rity d i s t r ic t , which may be the railroad system, a de partment, shop, o f f i c e o r d iv is io n . In 1936, the industry and the unions negotiated a broad agreement relatin g to railroad consolidations o r coordination o f f a c i l i t i e s which provided that the earnings p o sitio n o f the employ ees who remain w ill be maintained and separation allowances w ill be granted to employees who lose th e ir jobs as a resu lt o f these action s. This agreement, fundamentally unchanged, i s s t i l l in e f f e c t . Wages. — Rates o f pay f o r operating employees performing the same type o f work are, in general, uniform o r standard through out the industry, although there are some regional va ria tio n s. However, operating employees in road service have a pay structure sometimes termed a dual basis o f pay under ih ich actual compensation depends on the number o f miles traveled by each employee in ,h is .t o u r o f duty,, as w ell as the number o f hours worked covering those m iles. A given number o f miles con stitu tes a standard o r basic day c a llin g fo r the payment o f a basic day's pay. Road operating employees* compensation thus depends on time and length o f t r i p , cla ss o f serv ic e (fre ig h t o r passenger), and work performed (engineer, conductor, e t c . ) . Engineers and firemen have further pay d iffe r e n t ia ls based on the type or power o f the locomotive which were o r ig in a lly nego tia ted more than 40 years ago. Thus, a locomotive engineer in fre ig h t service operating a tra in between 2 c i t i e s o r points has a basic workday expressed in terras o f 100 miles and 8 hours. I f h is assignment c a lls f o r a t r ip 3:04 i o f somewhat less than 100 m iles (85, fo r example), he s t i l l receives his basic day's pay provided the tr ip is accomplished in le ss than 8 hours. I f more than 8 hours are required fo r the t r ip , overtime is paid at the rate o f one and one-half times the straight-tim e hourly rate. His rate o f pay w ill also vary according to the size or power o f the locom otive—expressed in terms o f weight on d rivers, i . e . , the wheels which provide the tra ctiv e power fo r pu lling the tra in . Also, the engineer's (or firem an's) pay w ill likewise be a ffected by whether he is employed in through freig h t with few, i f any, stops, or whether he is in lo c a l freigh t service requiring frequent stops to pick up and set o f f freig h t cars. Conductors and trainmen in fre ig h t service have an added d iffe r e n t ia l based on the number o f cars making up the tra in . This mileage system o f pay does not apply in yard service where a sched uled 8-hour workday p reva ils. The rates fo r most s k ille d shop-craft employees—machin is t s , e le c tr ic ia n s , carmen, e t c .—are generally standard or uniform on most railroa ds. However, rates o f many other classes o f non operating employees, such as the clerk s, telegraphers, and track laborers, generally do not r e fle c t the same uniform ity o f wage rate structures and vary between companies and geographic regions. In a number o f instances, rates within a broad occupational c la s s if ic a tion (f o r example, telegraphers) w ill vary, although fo r the same type o f work or resp on sib ility the pay may be id en tica l or nearly so. Most o f the nonoperating employees are paid on the basis o f an hourly or da ily wage or a weekly or monthly salary. Wage adjustments tfiich result from general wage movements ty p ic a lly are uniform throughout the entire industry. They are nearly always expressed in cents-per-hour and are applied to e x is t ing pay rates. During the Korean c o n flic t , railroad employees received changes in pay based on the Bureau o f Labor S ta tis t ic s ' Consumer Price Index. This c o s t -o f-liv in g escalator clause was terminated by the end o f 1954 and the wage increases which resulted from it s operation were incorporated into basic rates. However, wage esca la tion was resumed in agreements which became e ffe c tiv e in late 1956. Under these agreements semiannual adjustments in wages are made, based upon the Consumer Price Index. Hours. —Most nonoperating employees work a standard 8-hour day and 40-hour week with time and on e-h alf fo r additional hours. This reduction in hours from 48 to 40 is a post-Wo rid War II develop ment. Operating employees in railroad terminals or freig h t yards 3»04 a usually work an 8-hour day with time and a h a lf beyond th at, but some, c h ie fly locomotive engineers and firemen, may work more than 5 days a week at straight-tim e rates. Train and engine crews in road serv ice have no fix e d workday but are paid on tie basis o f th eir p a rticu lar work assignment, as previously described. Other B en efits. —Retirement pensions and b en efits to the unemployed workers have come about as a resu lt o f le g is la tiv e action. The Railroad Retirement Act became e ffe c t iv e in 1937 and the Railroad Unemployment Insurance Act in 1938. These have sub sequently been expanded and improved by various amendments, with sickness b e n e fits, fo r example, added in 1946. These nationwide programs provide railroad employees and th eir fam ilies with com prehensive protection against lo ss o f income owing to unemployment, sickness, permanent d is a b ilit y , old age, and death. Retirement ben efits depend on the individual worker's earnings and length o f service in the railroad industry. .Employees and ca rriers share the cost o f retirement and survivors' b e n e fits. Unemployment and sick ness ben efit rates range from $3.50 to $8.50 a day. These ben efits are financed s o le ly by contributions from employers. Although a number o f railroads had fo r many years h osp ita l, su rg ica l, and medical plans (freq u en tly supported by employee con trib u tio n s ), the industry as a whole had no such program u n til quite recen tly. In August 1954, an agreement, patterned a fte r recommenda tions by a P residen tial emergency board, was reached between 15 non operating railroad unions and the carriers to esta blish a jo in t ly financed h osp ita l, su rg ica l, and medical plan. This comprehensive plan became e ffe c t iv e in early 1955 and covered approximately 500,000 workers. In addition, almost 250,000 other workers employed on railroads which have had h osp ita l association s are to receive ben efits through those h osp ita ls. An agreement between the unions and the c a r rie rs , reached in December 1955, provided that the r a il roads would assume the f u l l cost o f the employees* health and wel fare program, e ffe c t iv e March 4, 1956. To round out the program, the p a rticip a tin g unions made arrangements fo r a group insurance plan to cover dependents and furloughed and re tire d workers. This coverage is paid by the workers. 1 / 1 / A supplementary la y o ff pay plan, applicable to 16,000 nonoperating employees, was negotiated early in 1957 by the Chicago and Northwestern Railway. It provides fo r b en efits fo r workers with at lea st 2 years* service who are displaced by tech nological change, mechanization, or economy measures. Benefits w ill supplement pay ments made under the Railroad Unemployment Insurance Act. 3 :04 y Paid vacations fo r nonoperating employees went into e f fe c t in 1942 and fo r engine and train service employees in 1944. Vacation provisions were lib e r a liz e d in succeeding negotiations. Present p ractice is to provide 1 week a fte r 1 year*s serv ice; 2 weeks a fte r 5 years; and 3 weeks fo r employees who have 15 o r more years' continuous service with the same employer. Nonoperating employees also receive pay fo r 7 designated holidays as a resu lt o f the 1954 settlem ent. Agreements covering operating employees do not as a rule make provisions fo r paid holidays. Union Secu rity. —The union-shop p rovision , whereby a l l employees are required to jo in the union which represents th e ir c r a ft, was prohibited by the Railway Labor Act u n til 1951 when an amendment to the act permitted the negotiation o f such contracts. Since then, the great m ajority o f the major r a il carriers have agreed to union-shop provisions with the labor organizations repre senting nonoperating employees. A smaller percentage o f operating employees are covered by union-shop contracts since the operating brotherhoods have not compaigned in ten sively fo r the union shop. Moreover the requirements o f the union-shop amendment to the act may be s a tis fie d by membership in any one o f several organizations representing operating employees. Administration o f Agreements. —Disputes growing out o f grievances or out o f the in terpretation or application o f agree ments may be carried through several steps up to the ch ie f operating o f f i c i a l o f the ca rrier designated to handle such disputes. I f no settlement is reached at th is point, the dispute may be referred , by either party, to the National Railroad Adjustment Board. This i s a bipartisan permanent body o f 36 members, h a lf o f idiom are se lected and paid by the ca rriers and h a lf by the unions. The ag grieved parties have the right to be heard in person or represented by counsel; disputes are usually considered on the basis o f the written record and decided by m ajority vote. Deadlocked cases are decided by a referee who may be selected by mutual agreement o f the p a rtie s, but in practice has usually been appointed by the National Mediation Board. Cooperation Between Unions and Railroads Despite differen ces o f opinion and long, involved, and d etailed negotiations o f wages and working conditions, the ca rriers and the unions have learned that i t is often to th e ir mutual ad vantage to jo in fo rce s on problems which may a ffe c t the workers o r the industry adversely. The maturity and wide acceptance o f c o lle c tiv e bargaining in th is industry is re fle c te d in the basic le g is la tiv e framework fo r bargaining which was a jo in t product o f union 3:04 10 and ca rrier committee recommendations, although subsequent amend ments to the 1926 law were not endorsed by the railroads. The most common form o f jo in t action has been the support o f le g is la tio n considered favorable to the railroad industry, and appearances be fo re State and Federal Government administrative agencies on mat ters o f common concern. Recently union leaders and railroad spokesmen have worked together to bring about a broader public understanding o f the regulatory and competitive problems o f the railroad industry rela tiv e to other means o f transportation. 3 :04 3:05 The Apparel Industries Overcoming the obstacles o f economic in s ta b ility and an early h istory o f sweatshops (plants characterized by exceptionally low wages and poor working c o n d itio n s ), the labor unions and em ployer associations in the major apparel industries have developed systems o f c o lle c tiv e bargaining and labor-management cooperation which have often been c ite d as models o f in dustrial democracy. Labor and management in the men’ s and women's clothing in dustries, over the past four decades, led the way in the development o f many features o f modern c o lle c tiv e bargaining, including the use o f arbitration to s e ttle disputes, employee welfare programs, and the sharing o f re sp o n sib ility fo r the welfare o f a particular company or the industry as a whole. The Amalgamated Clothing Workers o f America and the International Ladies' Garment Workers' Union have gained respect and authority in the labor movement, among employers, and in the community at large. Both unions are prosperous, w ell organized, and fa ctio n fr e e . The eminence o f these unions and the standard o f liv in g now enjoyed by th eir members stand in sharp contrast to an e a r lie r period, s t i l l within the memory o f industry and union o f f i c i a l s , when sweatshops were common and the newly arrived immi grants who found employment in the industry struggled to master the rudiments o f language, custom, and trade union p rin cip le s. The Industries Ready-to-wear garments f i l l most o f the clothin g needs o f the American people. These garments are factory produced, usually in large quantities o f the same s iz e , c o lo r , s ty le , and type o f m aterial. Custom ta ilo rin g and dressmaking establishments, where individual requirements and tastes o f consumers are accommodated, produce only a small fr a c tio n o f the to ta l clothing supply. The manufacture o f wearing apparel, the .ninth largest manufacturing industry in the United States, employs more than 1 m illion people in over 30,000 establishments. More than 50 percent o f the establishments and over 30 percent o f the work force are located in New York City. In this report, the term apparel indus t r ie s refers to establishments engaged in the production o f readyto-wear men's and boys' s u its , coats and overcoats, separate trou sers, sportswear, dress s h ir ts , work cloth in g, and a ll women's and misses outerwear. Though certain important apparel items are ( 1) 2 excluded, the above groupings include approximately two-thirds o f a l l apparel workers. 1 / Certain ch a ra cteristics are common to the production o f the various types o f wearing apparel. The basic processes consist o f cutting the c lo th , sewing the parts together, and pressing the completed garment. These processes do not lend themselves to ex tensive mechanization or to some o f the mass production techniques used in other manufacturing processes, although high-speed cutting, sewing, and pressing machines are now widely used. However, the sewing and pressing operations, p a rticu la rly the former, can be divided into a large number o f r e la tiv e ly simple operations. Sec tion work, that i s , the p ra ctice o f assigning to each worker a single production operation, has replaced the complete garment method in many apparel lin e s . Section work is more highly developed in men's wear than in women's clothing manufacture and is most ad vanced in cotton garment production. Contracting is a common p ra ctice . Under th is system, the manufacturer purchases m aterials, and may cut the garments, but sends them to contracting shops, usually under d iffe re n t ownership, to be sewn. This is known as outside production. When a l l opera tion s occur on the manufacturer's premises, the shop is referred to as an inside shop. Although there are some la rge, well-known producers, the ty p ica l apparel establishment is small, with fewer than 50 employees Entry in to the apparel manufacturing f i e l d is r e la tiv e ly easy com pared with most other manufacturing in du stries. Extensive cre d it arrangements and a v a ila b ility o f equipment on a rental basis make c a p ita l requirements exception ally low. Base o f entry, combined with the risks o f a highly competitive business, resu lts in a com paratively high rate o f business turnover. Seasonal production is another ch a ra cte ristic common to most apparel industries. Generally, two employment peaks occur each year. Seasonality usually resu lts in substan tially le s s than a f u l l year's work fo r many apparel workers. 1/ Among items excluded are women's, m isses', c h ild r e n 's , and infanTs* undergarments; ch ild re n 's and in fan ts' outerwear; m illin ery fu r goods; and miscellaneous apparel, accessories, and fa bricated t e x t ile products. 3:05 3 In sp ite o f the s im ila r itie s , the men's cloth in g, women's cloth in g, and men's cotton garment industries have developed as separate and d is tin ct operations, and within each o f these, several subindustries or branches have developed. Each industry has i t s own sources o f supply and it s own sales and market structure. With in each, manufacturers who produce sim ilar products may form trade associations in th eir particu lar market area. Geographical concentration in large urban centers (New York C ity, Philadelphia, Chicago, Los Angeles, e t c . ) , which is ty p ica l o f most apparel in dustries, is not ch a ra cte ristic o f cotton garment manufacturing. These plants are spread throughout the Bast, South, and Midwest in countless small towns. This d ifferen ce is re fle cte d in the fa ct that the 10 leading cotton garment areas produce only 60 percent o f the in dustry's to ta l output, whereas the 10 leading women's clothing areas account fo r more than 90 percent o f production. Although a ll apparel production processes are e s s e n tia lly sim ila r, d ifferen ce in product, qu ality, s ty le , and fa b ric require varying degrees o f s k i ll and dexterity on the part o f the workers. Operators experienced in cotton garment production, fo r example, are unlikely to be employed in eith er men's or women's wool apparel manufacturing. S k illed dress operators seldom fin d th eir way into the men's wear in dustries. Earnings generally r e fle c t these d i f ferences. Certain branches, such as men's ta ilo re d wear and women's coats and s u its , are known as higher wage lin e s ; work clothing and sh irts are in lower brackets. The industries covered in th is chapter employed nearly 800,000 workers in A pril 1957. S lig h tly more than 60 percent o f a l l workers in men's ta ilo re d cloth in g are women; the percentage is even higher in other branches. Only pressing and cutting are predominantly male occupations. The m ajority o f the employees are sewing-machine operators. The work fo r c e , form erly recruited mainly from emigrants to the United States, is now drawn from a broad cross section o f the population. However, young workers have not been attracted to the needle trades. A substantial proportion o f the work fo r c e , p a rticu la rly in the large urban centers, is over 50 years o f age. The Unions Two unions represent most o f the workers in the apparel industries. The International Ladies' Garment Workers' Union (ILGMU), in existence since 1900, has organized the workers in women's and ch ild ren 's cloth in g, whereas the men's and boys' 3:05 4 cloth in g, estimated to be over 90 percent organized, f a l l s under the ju r is d ic tio n o f the Amalgamated Clothing Workers o f America (ACWA), established in 1914. The ACWA also represents a substan t i a l proportion o f the cotton garment workers. The cotton garment industry, however, is not as well organized as other apparel manu facturin g. 2 / The ILGWU had approximately 451,000 members in 1956, the ACWA about 385,000 members, including some outside o f the ap parel in dustries. The growth o f union membership since 1932 in these industries is as fo llo w s: Year 1932 ----------------- -------------1940 ----------------- -------------1 9 5 1 ---------------- -------------1956 ----------------- -------------- ACWA ILGWU 70,000 260,000 385,000 385,000 45,000 240,000 390,000 451,000 In New York C ity, the major market area, a l l but a small proportion o f apparel firms operate under union agreements. In men's cloth in g, a l l major producing areas operate under c o lle c tiv e bargaining agreements. In women's cloth in g, the organizational task has been more d i f f i c u l t ; the newer producing cen ters, such as D allas, Los Angeles, and S ea ttle , are only p a rtia lly organized. In the apparel in d u stries, organization is a continual process i f the union wishes to retain it s in flu ence. Shop migration to communities tdiere labor organization is n e g lig ib le is a constant problem o f the union. During the past 50 years, the apparel industries have pro gressed from a state o f almost continual in dustrial warfare to the s t a b ilit y o f peaceful c o lle c t iv e bargaining and perhaps the most ex tensive system o f union-management cooperation to be found in Ameri can industry. The ACWA and the ILGWU made important contributions to th is development. Both organizations, o r ig in a lly with a s o c ia lis t point o f view, now provide in dustrial engineering serv ices to manage ment and operate or support training schools in an endeavor to pro mote a more e f f ic ie n t industry. Both organizations on occasion have 2/ The United Garment Workers o f America, the f i r s t national organization in the clothin g industry, represents approximately 40,000 workers in work cloth in g lin e s . 3:05 5 extended fin a n cia l assistance to management. The AOMA owns and operates two banks. Both organizations sponsor large housing p rojects and vacation resorts fo r workers and th eir fa m ilies. Both operate comprehensive health centers fo r the garment workers in major producing areas. They also conduct extensive programs o f worker education and publish p eriod ica ls o f outstanding merit, The Advance (ACKA) and Ju stice (ILGMU). C ollective Bargaining Structure To match the stength and unity o f the two big unions, the employers over the years have developed th eir own association s to represent them in negotiations with the unions. The formation and continued operation o f employer association s have been encouraged by the unions fo r the s t a b ilit y these organizations bring to la b ormanagement relation s in the highly competitive apparel industries. Most c o lle c tiv e bargaining agreements in the apparel industries, with the exception o f cotton garments, have been negotiated by lo c a l or national employer association s. In men's suits and coats, bargaining on an industrywide basis became a p ra ctica l r e a lity in 1937. At that time, the major issue (a general wage increase) was worked out between representa tiv es o f the ACKA and the Clothing Manufacturers' A ssociation. A fter acceptance by th eir memberships, the provisions were then incorporated in to the lo c a l area agreements. Since 1952, a national men's clothin g contract which embodies the basic conditions o f em ployment common to the industry, has been in e f f e c t . This agreement leaves to lo c a l negotiation the issues appropriate to each area, such as wage rates (except fo r general changes which are negotiated on a national s c a le ). In the women's clothing industry, agreements are negoti ated in each o f the lo c a l markets covering the type o f product involved. Negotiation takes place between the union Joint Board, which represents a l l the ILGMU lo c a ls in that industry and market area, and representatives o f the particular manufacturers' a ssoci ation. In the New York area, fo r example, the Administrative Board o f Dress Manufacturers, representing fiv e employer association s, negotiates with the ILGMU Dress Joint Board. The results o f the negotiations are embodied in separate agreements between the member association s and the ILGMU. The New York agreements generally exercise considerable influence over other lo c a l area negotiations. Both the ILGMU and the ACKA u t il iz e the Joint Board arrangement to coordinate policymaking fo r the lo c a l unions in a given product market, and to represent the lo c a ls in piece rate and 3:05 6 grievance cases. For example, the New York Dress Joint Board con s is t s o f paid o ff ic e r s elected by the membership o f the lo c a ls in volved in the manufacture o f women’ s dresses in the New York area. The manager o f th is board has authority to act fo r the union member ship in negotiating agreements and in day-to-day bargaining. The prevalence o f the manufacturer-contractor system in the apparel industries has led to a unique c o lle c t iv e bargaining arrangement. The union insures the maintenance o f agreement stand ards by the contractors la rg e ly through the manufacturer. For ex ample, the la tt e r is held responsible fo r that portion o f the con tra cto r ’ s payroll accrued in the production o f h is garments should the contractor default on his payments. This re sp o n sib ility in cludes the con tractor’ s contribution to the union health, w elfare, and retirement funds. The piecework method o f wage payment, which some lo c a ls rejected during the 1920’ s because o f it s association with e a r lie r sweatshop conditions, has since been firm ly established in a ll ap parel markets. Of the production workers, only cu tters, spreaders, and work d istrib u tors are generally employed on a time ba sis. Agreements provide fo r the mutual determination o f the piece rates, on the premises, before the garment is put into pro duction. Frequent s ty le and fa b r ic changes make ratesettin g a continuous c o lle c tiv e bargaining procedure. Price committees, con s is tin g o f representatives o f the union and the employer, must agree on the rate fo r each operation. The rates thus established are de signed to maintain the in d iv id u a l's earnings and to conform to the existin g shop pattern. A system o f standardization o f labor costs by means o f c la s s ific a t io n o f garments into established grades, with a fix e d minimum labor cost fo r each grade, has sim p lified piece rate determination in the men's clothing industry. The apparel in dustries, h is t o r ic a lly , nave placed great reliance upon arbitration as a method o f s e ttlin g disputes. In men's cloth in g, arbitration is now generally confined to s e ttlin g grievance disputes; in some women's cloth in g branches, a rb itra tion is also used when negotiations over contract changes break down. The a rb itra tor, often referred to as the impartial chairman, is retained on a permanent basis in the major centers. Generally, a person o f stature in the conmunity, acceptable to both union and employers, occupies th is p o s itio n ; both unions and employers con tribute to the support o f th is o f f i c e . The structures o f bargaining maintained in the men’ s and women’ s clothin g industries are products o f decades o f experience. 3:05 7 Such integrated systems are not found in the cotton garment indus try . Wage structure studies made in cotton work clothing in 1953 and in men's and boys' dress sh irts in 1954 indicate that approxi mately 45 percent o f the production workers in the former lin e and 60 percent in the la tte r were covered by union-management contracts. C ollectiv e Bargaining Provisions Existing agreements in the men's and women's apparel in dustries are, fo r the most part, multiemployer contracts with a duration o f 3 to 5 years. H isto r ic a lly , the written agreement has not played as important a role in these industries as in others. In many situ a tion s, successfu l working relationships between manage ment and the union preceded the form alized c o lle c tiv e bargaining agreements. To th is day, a large part o f labor-management relation s lie s outside o f the agreement. Contracts covering work clothin g and cotton garment plants are generally more s p e c ific and o f 1 or 2 years* duration. Wages and Hours. —The 35- to 37§-hour workweek has been achieved in most o f the women's clothing industry, with overtime work eith er prohibited or discouraged. In men's clothing, the master agreement provides fo r the 40-hour workweek except in those areas where a shorter workweek has been established. In cotton garments, the 40-hour week is the predominant p ra ctice. Since c o lle c tiv e bargaining over piece rates is a con tinuous process in the apparel in dustries, wage provisions in the agreements are generally b r ie f. Minimum weekly and hourly earnings are usually s p e c ifie d fo r some occupational groups. These, however, are generally in the nature o f a wage flo o r and seldom r e fle c t the actual le v e l o f earnings. For example, a Bureau o f Labor S ta tis t ic s survey o f earnings in women's dress manufacturing in August 1955 showed pressers and sewing-machine operators (s in g le garment system) in the New York area averaging $3.61 and $2.18 stra ig h ttime hourly earnings, resp ectively. Sewing-machine operators under the section system, viiere employees perform only one operation, averaged $2.04. The guaranteed minimums in the contract were $1.76 per hour fo r pressers and $1.46 fo r operators. Cutters, pattern makers, and graders, employed on a weekly rate b a sis, are usually among the higher paid production workers. Their earnings vary by industry and market area. In 1955, cutters in the dress industry in the New York market area averaged $2.88 per hour; in St. Louis, the average hourly earnings fo r cutters were $2.23. The wage clauses in apparel agreements usually sp ecify that shops with existing rates exceeding the minimum are required 3:05 8 to maintain th eir wage structure. Any changes in general wage le v e ls are subject to c o lle c t iv e bargaining. In some cases, fin a l authority to s e t t le wage disputes rests with the im partial chairman. Union S ecurity. —A union shop clause requiring that a l l new employees become members o f the union within a sp e cifie d period is found in v ir tu a lly a l l agreements in men’ s and women’ s cloth in g , except in States where th is provision is not le g a l. Provisions fo r checkoff o f dues are le s s common. Job Security. —A fter a t r i a l period, usually 2 weeks, a worker may not be discharged except fo r cause, such as incompetency, insubordination, or misconduct. Discharge cases generally are given p r io r ity in the grievance procedure. Provisions fo r equal d iv isio n o f work among the regular employees during slack seasons are common in apparel agreements. Supplementary B enefits. —The unions in the garment indus t r ie s were early sponsors o f s o cia l insurance and health programs. The ILGWU established it s f i r s t medical c lin ic providing fre e phys ic a l examinations to members in 1913. The ACHA established em ployment exchanges and launched an unemployment insurance plan in 1923. Employer-financed health and welfare programs are now pro vided by clothin g agreements in the major market areas. These programs o ff e r accident, d is a b ilit y , l i f e , hospital, and surgical insurance b e n e fits . Medical services are available in union-operated health centers. A retirement fund is also provided by the major apparel agreements. A 2 weeks’ paid vacation a fte r 1 yea r's regular employment has become a standard part o f the men's clothin g agreements. In women's cloth in g, the employer contributes a percentage o f h is pay r o ll into the vacation fund o f the union. The ILGWU in turn makes the vacation payments to i t s members. The national agreement in men's clothing provides 7 paid holidays fo r a l l workers. Agreements in women's clothin g may re s t r ic t holiday pay to time workers only, though some include in centive workers in the holiday pay provision. The agreements in the cotton garment industry are le ss con sisten t, but from 4 to 6 paid holidays are common. 3:05 9 Union-Management Cooperation Union-management cooperation has long been an established practice in the garment industries. In these industries, the gen eral competitive situ a tion bears equally hard on both p a rties. A r e a lis t ic approach to th eir common problems led to the development o f e ffe c t iv e cooperative relation sh ips. In an atmosphere o f mutual respect and t r u s t , disagreements that may have led to s t r if e in another environment have been resolved with a minimum o f work stoppages. Research and technological improvement have become im portant in trade union thinking. Both management and the unions are proud o f their record. The ILGMU and the ACKA assume a high degree o f responsi b i lit y fo r the health and s t a b ilit y o f the major industry d ivision s The unions are recognized and represented on most national programs involving the apparel industries. In cooperation with the clothing manufacturers' a ssocia tion s, the unions assume th eir share o f com munity re sp on sib ility fo r fund raising and c iv ic p ro je cts . The unions and management organizations have contributed generously to postwar reh a b ilita tion projects in foreign countries, p a rticu la rly in Ita ly and Isra e l. 3:05 3:06 The Textile Industries A decisive force shaping labor-management relation s in the t e x tile industries is the intense competition between m ills in the New England and Middle A tlan tic States (the North) and m ills in the southeastern States (the South). In terms o f the degree o f un ion organ ization, th is represents competition between a region where most m ills are unionized and a region where only a small proportion o f the workers are covered by c o lle c tiv e bargaining agreements. In terms o f wage le v e ls and supplementary b e n e fits, the southern seg ments o f the industries have long had an advantage over the higher wage northern m ills . The s t a b ilit y o f union-management relation s is further weakened by the s e n s itiv ity o f the t e x tile industries to s h ifts in general economic conditions. Of a l l the important mass production industries in th is country, the t e x t ile industry as a whole has the smallest propor tion o f workers under c o lle c tiv e bargaining arrangements. The two major unions, the T extile Workers Union o f America and the United T extile Workers o f America, have had many d i f f ic u l t periods in th eir development. The major problems they have faced in the past two decades were: (1 ) Advancing the organization o f workers in the South, and (2 ) raising and protecting th eir standard in the North. Today, these are s t i l l th eir major goa ls. The Industry The t e x t ile industries in the United States include plants manufacturing yarn and broad woven fa b rics from a ll fib e r s ; plants producing knit goods, carpets, rugs, f e l t goods, and bags; and plants engaged in scouring, combing, dyeing, and fin ish in g . 1 / The entire te x tile industry group employed approximately 1,012,000 workers in A pril 1957. This chapter deals prim arily with the industries producing yarn and broad woven fa b rics from both natural and synthetic fib e r s . These industries employed approximately 553,000 production workers in April 1957, with the greater proportion in the integrated m ills which combine spinning and weaving operations. Despite the advances in the production o f synthetic and blended fa b r ic s , cotton is s t i l l the leading fib e r , accounting fo r 70 percent o f the fib e r consumed in the United S tates. M ills prim arily engaged in cotton yarn or 1 / The production o f synthetic filament and fib e r , which is e sse n tia lly a chemical process, is c la s s ifie d by the U. S. Govern ment fo r s t a t is t ic a l purposes as part o f the chemical industry. Most workers in th is industry, however, are represented in c o lle c tive bargaining by the te x tile unions. ( 1) 2 goods manufacturing employed approximately 353,000 production work ers in 1954. More than 80 percent o f the workers in the cotton manufacturing industry are scattered throughout the southeastern States, with only 9 percent remaining in New England, the former cotton center. Integrated m ills account fo r roughly 75 percent o f the cotton industry's employment. In 1953, the la st year fo r which separate figu res are availa ble, wool and worsted m ills employed about 119,000 workers in the scou ring, combing, and manufacturing processes. 2 / These m ills tend to be smaller, more highly integrated, and more concentrated geographically than those in the cotton industry. It is estimated that more than h a lf o f the work force is employed in the New England area, although these m ills , too, have started moving southward. Plants engaged prim arily in the manufacture o f synthetic fa b rics employed more than 100,000 workers in 1954. Synthetics, the growing segment o f the t e x tile industry, are also becoming in creasingly important in the Southeast. Although spinning and weav ing o f synthetic fib e r s may be carried on in any t e x t ile m ill, sp ecialized equipment is required in weaving. Moreover, production f a c i l i t i e s used fo r natural fib e r s must be reorganized to spin syn th etic fib e r s . With intense postwar competition among producers, the pressure fo r cost reduction has resulted in some migration to the South, in heavy ca p ita l expenditure fo r plant improvement, and in the modernization o f production methods. Investment in new plant and equipment has provided an up-to-date technology, with mechanical handling o f m aterials, automatic instruments fo r the con trol o f production and qu ality, a ir conditioning, and other devices designed to increase unit output. The basic character o f the industry is also undergoing change. T extile industries, tra d itio n a lly consisting o f a large number o f individual m ill owners, are now characterized by a greater concentration o f ownership. The trend has been toward consolidation and merger o f major companies (frequently formed out o f previous con solid a tion s). One recent study indicated that the 43 major tex t i l e companies owned 521 plants and employed 52 percent o f the work ers in basic t e x t ile s . 2 / According to a TWUA estimate, which takes account o f con traction s since 1953, 1955 employment in woolen and worsted t e x t ile m ills was about 80,000. 3:06 3 Employment in these industries declined approximately a f i f t h between 1950 and 1955. A number o f fa cto rs have contributed to this d eclin e, including: Increased production o f t e x tile s in other countries, which has led to a shrinkage o f foreign markets; improved technology, which has increased man-hour produ ctivity; and a long-term change in the Nation’ s buying habits resulting in a reduction in the proportion o f fam ily income spent on t e x t ile prod u cts. The New England area has experienced a greater decline in employment through the liqu idation o f m ills and continued migration to the South. Although the wage d iffe r e n tia l between the North and South has narrowed appreciably during the past 30 years, i t is s t i l l regarded as a fa cto r in th is migration. The work force is comprised la rgely o f unskilled and semi s k ille d workers. The major men’ s occupations include loom fix e r s , d o ffe rs, slubber tenders, weavers, and truckers. More than 40 per cent o f the fa ctory workers are women, who are employed in large numbers as ring frame spinners, yarn winders, battery hands, and weavers. Child labor, h is to r ic a lly associated with the t e x t ile in dustry, has been eliminated. The Unions The United T extile Workers o f America (UTW) and the Tex t i l e Workers Union o f America (TWUA) are the major unions represent ing employees in the t e x tile industries covered by this chapter. The UTW, chartered by the American Federation o f Labor in 1901, brought together a number o f cra ft unions. Its growth was sporadic during the ea rly years. The UTW in itia te d a general tex t i l e strik e in 1934 involving over 300,000 workers, which fa ile d to gain the union’ s immediate o b je ctiv e s , but which called the atten tion o f the general public to the wages, hours, and working condi tion s o f t e x tile workers. For a b r ie f period ending in 1938, UTW leadership joined with the newly formed Committee fo r Industrial Organization and participated in an intensive organizing campaign. It was successful in New England but not in the southern m ill towns. D ifferences between the two groups resulted in a s p lit and the re turn o f several UTW lo c a ls to the American Federation o f Labor. Since 1939, the UTW has been prim arily concerned with rebuilding it s strength. The TWUA began as the T extile Workers Organizing Committee in 1937 and became a national union in 1939, a ffilia t e d with the Congress o f Industrial Organizations. I t grew rapidly u n til 1948, p rin cip a lly in the North, but has since suffered a decline in membership, la rgely due to m ill clo sin g s. 3:06 4 The trend in membership claims fo r the two unions is summarized below: Members Year UTW 1939 --------------------------1941 --------------------------1950 1956 --------------------------- 1,500 42,000 87,000 100,000 TWUA 160,000 215,000 373,000 202,000 The postwar attempts to organize the southern cotton m ills have met with lim ited success. The combination o f opposition to un ion organization, the declining industry in the North, and in ter union riv a lry complicated the task o f organizing t e x tile workers and weakened the bargaining p osition o f both unions. Both unions are acutely aware o f the problems facing the t e x tile industry. They maintain fu ll-tim e research departments which not only engage in studies rela tive to c o lle c tiv e bargaining negotiations, but conduct research into the economic and tech nical aspects o f t e x tile pro duction. In addition, both unions maintain education departments through which they conduct in stitu te s and training programs designed to develop future leaders among th eir membership. With the approval o f the lo c a l unions a ffe cte d , the Execu tiv e Council o f the TWUA may establish jo in t boards to represent geographical or in dustrial subdivisions o f the industry. When es tablished, the primary purpose is to secure united action in c o lle c tiv e bargaining and uniform working conditions fo r t e x t ile workers in the area. In areas where two or more UTW lo c a l unions have bar gaining righ ts, a t e x tile council is formed with which a ll UTW lo c a ls must a f f i l i a t e . This group may adopt trade rules and coordinate union a c t iv it ie s , but authority to authorize work stoppages remains with the lo c a ls , subject to approval by the UTW. C ollective Bargaining Structure C ollective bargaining agreements cover substan tially less than h a lf the workers in the cotton , wool, and synthetic te x tile m ills . Although r e la tiv e ly few southern cotton m ills are unionized, approximately 50,000 southern cotton workers were under c o lle c tiv e bargaining agreements in 1955, compared with 30,000 in the w ell organized New England area where the industry is d eclin in g. This 3:06 5 coverage represented over 90 percent o f New England's cotton tex t i l e employment, but le s s than 16 percent o f those employed in the southern m ills . Synthetic t e x t ile m ills have been equally d i f f ic u l t to organize in the South, with only about 5 percent o f the workers covered by union agreements compared with 70 percent in New England and almost 50 percent in the Middle A tlantic States. The percentage o f agreement coverage in southern woolen m ills is also le ss than in northern m ills . Today, with few exceptions, bargaining generally occurs on a single employer basis. In the New England area, the major portion o f the cotton manufacturing industry was covered by agree ments negotiated by the Pall River-New Bedford T extile Manufac turers A ssociation and the TWUA from 1942 to the spring o f 1955. Following a strik e which lasted from A pril to July 1955, the asso cia tion ceased to function as a bargaining agency; the settlements made were generally sim ilar but were reached through separate nego tia tion s with individual employers. Competition within a geographic region o f the t e x t ile industry is such that once a wage change is negotiated with a leading m ill, others in the area soon fo llo w . During the early postwar years, the agreements negotiated by the F all River-New Bedford T extile Manufacturers A ssociation and the HrfUA set the pattern fo r other cotton m ills ; in the woolen industry, the American Woolen Company (since merged with Textron, In c.) was the bellwether in sofar as wage changes were concerned. This operates in the case o f decreases as w ell as increases. For example, a fte r the 1952 arbitration awards under which Bates Manufacturing and the F all River-New Bedford Group were granted wage reductions, TWUA agreed to sim ilar reductions in other organized t e x tile m ills in the New England area. Early labor-management relation s were marked by c o n flic ts over rights to organize and to bargain c o lle c t iv e ly without d is criminatory discharge o f union workers. The stretchout (increasing the number o f machines assigned to the worker) and the speedup (in s ta llin g fa ster machines or speeding up o ld machines) were major issues o f the la te 1920's and early 1930's. These matters are s t i l l sources o f disagreement, but they are now more frequently the focus o f intensive negotiations than o f strik e s . E fforts to secure wage increases and to r e s is t proposed wage cuts have been important issues during recent years. With the exception o f 1951, however, t e x tile work stoppages since World War II have resulted in a lower percentage o f man-days id le than the average fo r a l l manufacturing 3:06 6 in du stries. The reliance upon arbitration has been responsible fo r the avoidance o f many work stoppages. Major disputes growing out o f unadjusted grievances, re v ision o f work standards, and wage negotiations have been submitted to arbitration in the t e x tile industry. The arbitrator becomes the medium through which solu tion s, which may have been otherwise un acceptable are achieved. Major Provisions o f the Agreements Wage and Hours. —Wage provisions in t e x tile agreements frequently sp ecify standard base rates fo r each job c la s s ific a tio n and minimum hourly rates fo r a l l production workers. Incentive or p iece-ra te wage systems are common in t e x t ile m ills. In cotton t e x t ile s , approximately tw o -fifth s o f the workers are on piece rates; in synthetics and woolens, about a third are paid on an in centive basis. Regional wage d iffe r e n tia ls s t i l l e x is t. A 1954 wage structure study o f the c o tto n -te x tile industry, prepared by the Bureau o f Labor S ta tis t ic s , revealed straight-tim e average hourly earnings o f $1.32 in the New England area. In the southeastern States, where 80 percent o f the cotton workers are employed, pro duction workers averaged $1.17 per hour. However, these d iffe r e n t ia ls narrow when a comparison is made on the basis o f fin e cotton fa b r ic s , the major product o f the New England m ills . In synthetic m ills , average hourly earnings ranged from $1.35 in New England to $1.22 in the Southeast. Occupational s k i lls , o f course, account fo r other wage d iffe r e n tia ls in t e x t ile in dustries. The 1954 c o tto n -te x tile wage survey reported the follow in g: Men employed as loom fix e r s aver aged $1.55 per hour, weavers averaged $1.39, d o ffe r s , $1.23, and truckers, $1.02. Women weavers averaged $1.35, ring frame spinners $1.14, and battery hands $1.06. Women are usually paid the same rate as men when working on the same job in the same plant. The 8-hour day and 40-hour workweek prevail in the organ ized m ills , with provisions fo r the time and one-h alf f o r a l l hours in excess o f 8 per day or 40 per week. Premium pay is generally provided fo r third s h ift workers, but is not common fo r those work ing the second s h ifts except in the woolen and worsted industry. In November 1954, about h a lf the cotton and synthetic t e x t ile work ers were employed on late s h ift s . In woolen m ills, more than a third o f the employees work la te s h ift s . 3 :06 7 Work Assignments and Workloads.— Changes in work assign ments o f t e x tile workers have been frequently associated with re duced earnings and job in secu rity. Employers and union o f f i c i a l s have devoted much attention during the recent years to developing equitable procedures fo r making changes in work assignments and introducing new equipment and techniques. Negotiation on work assignment cases i s almost continuous in some m ills . In general, management and the union usually discuss these proposals before thay are in stitu ted . Union o f f i c i a l s are furnished with s u ffic ie n t information to understand what is being considered by management. The parties often agree on experimental runs or t r ia l periods to evaluate these changes. Displaced workers are customarily protected through assignment to other jo b s, i f a v aila ble, and employees, remaining on a changed job are, at times, compensated by higher rates. Technological severance pay is pro vided in some contracts fo r displaced employees. The determination o f mutually acceptable workloads is another d i f f i c u l t labor-management problem. Work le v e ls are gen e r a lly determined by management through the use o f time study techniques, subject to appeal through the grievance procedure. Dis putes may be carried to arbitration . In recognition o f the com p le x ity o f work assignment or workload problems, the unions place considerable emphasis on training th eir s t a ffs , shop stewards, and members in the engineering fundamentals involved. Supplementary B enefits. —Most contracts include provisions fo r paid vacations, the time allowed varying with length o f service ( e . g . , 1 week a fte r 1 year’ s s e rv ice , 2 weeks a fte r 5 years); 5 or 6 paid holidays per year; and insurance coverage that includes l i f e insurance, accident, h osp ita l, and su rgical ben efits fo r the worker. H ospitalization ben efits are extended to dependents in some plans. Provisions fo r retirement, when present, generally take the form o f lump sum separation payments fo r those who have more than 15 years with the company; plans providing fo r regular payments fo r the remainder o f the worker’ s l i f e are le ss common. In general, supplementary ben efits are less extensive in southern than in northern m ills . Union S ecu rity. —The union shop, tinder which workers are required to jo in the union as a condition o f employment, is gen e ra lly provided in the larger plants and in the northern States. A ll southern t e x t ile States ban union secu rity provisions by law. Job S ecu rity. —The agreements generally provide that management retains the right to discharge, modified, however, by the 3:06 8 provision that the union may appeal discharge cases through the grievance procedure. The contracts usually provide that se n io rity within departments w ill determine the order o f la y o ff and r e c a ll. Administration o f the Contract. —The problems arisin g out o f work assignment and workload changes, flu ctu ation s in employment needs, and the use o f incentive pay systems lend great importance to the day-to-day administration o f c o lle c t iv e bargaining agree ments. Recourse to a grievance procedure is a major safeguard o f employee righ ts. Formal grievance procedures are ca re fu lly d etailed in most agreements and usually fo llo w a 4-step procedure with established time lim itation s fo r each step. Two large cotton t e x tile agreements, fo r example, provide that a grievance be discussed inform ally between the department supervisor and the shop steward accompanied by the aggrieved em ployee. I f unresolved at th is step, the grievance is put in w riting, dated, and signed; a shop committee and the union business agent meet with a plant representative to work out a solu tion . A fter 7 days, i f s t i l l unsettled, the matter is taken up by a union o f f i c ia l and a representative o f the company. I f this f a i l s to s e tt le the issue within 15 days, it may be submitted to a rb itra tion , the a rb itra tor’ s decision to be fin a l and binding. The arbitrator is selected by mutual agreement fo r the s p e c ific case; i f they cannot agree, on the choice o f an a rb itra tor, the American A rbitration A ssociation, a private service agency, w ill be asked to make the s e le c tio n . Either party may request a three-man board in lie u o f a sin gle arb itra tor i f i t so d e sire s. The union and the company share equally the expense o f arbitration . In some agreements, several arbitrators are lis t e d , from which the parties must make a s e le c tio n . In oth ers, an arbitrator is named in the agreement to hear a l l cases arisin g during the l i f e o f the contract. Joint arrangements between union and management to promote the economic health o f the industry or to adjust to tech n o lo g ic rl change have been attempted but have been hampered by North-South r iv a lr ie s . Both management and unions in New England are deeply concerned with immediate production and unemployment problems and long-range economic or technological adjustment. They have urged the Federal government to aid in the solu tion o f eco nomic problems facing the t e x tile in dustries, but have not developed a common approach on s p e c ific problems. 3:06 3:07 The Meatpacking Industry The increasing in d u stria liza tion o f the economy and the risin g consumption o f meat by American fam ilies have made the processing and marketing o f liv e sto ck a major undertaking. The meatpacking industry seeks to s a t is fy these consumer demands. It consists o f a few large, multiplant corporations largely centered in the Midwest, producing a wide variety o f meat products and by products f o r a national market; several fa ir ly large companies, also concentrated in the Midwest, tending to sp e cia liz e in a lim ited number o f products fo r a national or regional market; and hundreds o f lo ca l packers which usually purchase liv estock from surrounding farms and process and market th eir .products to nearby urban centers. The m ajority o f the in dustry's production or plant workers are cov ered by c o lle c tiv e bargaining agreements negotiated by eith er o f two unions: the Amalgamated Meat Cutters and Butcher Workmen and the United Packinghouse Workers o f America. Trade unionism in the meatpacking industry has a long h istory. However, the present c o lle c tiv e bargaining structure was greatly influenced by the multiplant agreements f i r s t negotiated by two large packers and the major unions during the early 1940's. These and subsequent agreements tended to set a pattern fo r other meatpacking companies; tb e ir influence has been f e l t throughout the industry as w ell as in the communities in which the big companies operate. Present standards relatin g to working conditions, employ ment s t a b ilit y , job secu rity , and wages compare favorably with other manufacturing in dustries, r e fle c tin g a sig n ifica n t advance over the conditions prevailin g early in th is century. The riv a lry between the Amalgamated Meat Cutters (form erly AFL) and the Packinghouse Workers (form erly CIO) has in recent years given way to cooperation, p a rticu la rly in preparing fo r and nego tia tin g key contracts with the large companies. The Industry The task involved in bringing meat products from 5 m illion farms to 50 m illion tables led to the development o f a major indus try which employs over 330,000 people, o f idiom 260,000 are produc tion workers. In terms o f value o f shipments, the processing o f meat products ranks high among manufacturing in dustries. 1 / The meat industry assembles, slaughters, processes, and d istrib u tes meat and meat products. Approximately two-thirds o f the liv e sto ck involved come from west o f the M ississippi River. About 100 central 1 / Meat products c la s s ific a t io n includes: Wholesale meat packing; custom slaughtering; manufacturing o f sausage, sausage casings, and prepared meat products; and wholesale poultry dressing and packing. ( 1) 2 markets receive liv estock from the farms. Nine major markets, prim arily midwestern, receive over 50 percent o f a ll shipments: Chicago, 111.; Omaha, Nebr.; Denver, G olo.; M inneapolis-St. Paul, Minn.; Kansas City, Kans.; East St. Louis, 111.; Sioux City, Iowa; Fort Worth, T ex.; and St. Joseph, Mo. Meatpacking firms are generally c la s s ifie d into three groups: Large national packers, sometimes referred to as the "Big Four," namely, Swift and Co., Armour and Co., Wilson and Co., and Cudahy Packing Co.; medium-size packers competing in the national market, such as John Morell and Co., George A. Hormel and Co., and the Rath Packing C o.; and numerous small independent packers serving lo c a l market areas. The four largest firms produce almost h a lf o f the in dustry's t o ta l output. The largest o f these, Swift and Armour, each reported annual sales o f more than $2 b illio n in 1956, part o f which consisted o f important byproducts from which soap, drugs, and fe r t iliz e r s are manufactured. Meatpacking is credited with being the f i r s t major Ameri can industry to develop the continuous production lin e process. The larger plants have sim plified processing operations by assigning workers to a se rie s o f re la tiv e ly lim ited, but in some instances, highly s k ille d jo b s . Many tasks, p a rticu la rly in the preparation o f meat, are performed by hand, frequently under adverse conditions such as cold and wet workplaces. During recent years, the industry has introduced mechanization into such operations as the preparation o f sausages and other meat products. Plant workers, who account fo r approximately three-fourths o f the in dustry's to ta l employment, are la rgely u n skilled. Women make up approximately one-fourth o f the to ta l labor fo r c e . In the plants, they are la rgely employed in the processing departments, where they perform such tasks as weighing and packing s lic e d bacon, linking sausages, and packaging lard. The Unions Ihe Amalgamated Meat Cutters and Butcher Workmen and the United Packinghouse Workers o f America are the two major trade un ions in the industry. The Amalgamated Meat Cutters received it s charter from the American Federation o f Labor in 1897. This organi zation, with a reported membership o f 310,000 in 1956, represents r e t a il butchers, packinghouse employees, and other groups such as sheepshearers, fis h , poultry, dairy, leather, and fu r workers. It has organized many small independent packers and branch plants. The Packinghouse Workers, with an estimated membership o f about 150,000, 3:07 3 has it s major strength in the larger concerns. The UPWA also re presents a substantial number o f workers in sugar r e fin e rie s and canneries. The National Brotherhood o f Packinghouse Workers, an independent union, has it s membership mainly among Swift employees. Altogether, an estimated 90 percent o f the production workers in the wholesale meatpacking industry are under c o lle c tiv e bargaining agreements. The Amalgamated Meat Gutters and the Packinghouse Workers are now a f filia t e d with the AFL-GO. For several years prior to the AFL and CIO merger, the two unions in the meatpacking f i e ld had been cooperating in c o lle c tiv e bargaining dealings with the major com panies by exchanging information. At the time o f that merger in December 1955, the two unions announced that they had reached an accord which would serve as a basis fo r th eir own merger. However, by mid-1957, the merger o f the two unions had not been consummated, largely because o f internal organizational problems. C ollective Bargaining Structure A large proportion o f the agreements in the industry are negotiated by individual employers and union lo ca ls covering a sin gle plant. In some situ a tion s, employers have formal or informal associations to deal with the union. The major agreements, how ever, are the multiplant agreements negotiated by the large companies. Sw ift, fo r example, negotiates master agreements with the 3 unions representing workers in approximately 45 plants situated throughout the country. These agreements are sim ilar in most respects. The agreements negotiated with the larger companies usually set the pace fo r many smaller companies. In many cases, the multiplant agreements are supplemented by separate plant agreements negotiated by lo c a l management and un ion o f f i c i a l s . These supplements generally cover s p e c ific issues relatin g to the operation o f the particular plant, such as the de termination o f occupational wage rates or piece rates fo r new jobs. However, each supplement must f i t within the framework o f the master agreement. General wage changes applying to a l l rates ty p ic a lly are provided fo r in the master agreements. P rior to 1945, an in trica te wage structure, complicated by tra d ition a l d iffe r e n tia ls based on geography, occupation, and sex, had been associated with the meatpacking industry. In that year, the Meatpacking Commission, a jo in t committee representing labor, management, and the pu blic, was authorized by the National War Labor Board to study and make recommendations concerning certain wage prob lems in the meatpacking industry. It was the task o f the Commission 3:07 4 to study and present a fa ctfin d in g report on the geographic d i f f e r en tia ls in the industries and the major fa ctors influencing them, and more important, perhaps, to develop an ov e ra ll framework within which the parties could review intraplant wage relation sh ips. A fter a 2 -year study, the Commission recommended a sim p lifica tio n o f job c la s s ific a tio n s . The suggested labor-grades system reduced approxi mately 100,000 job rates to 25 job -ra te groupings, with 2§-cent intervals between rates. These recommendations were adopted by most o f the large packers and are currently e ffe c t iv e . The wage interval between job classes has since been increased to 4 cents. This de velopment fa c ilit a t e d c o lle c tiv e bargaining on company rate stru c tures and led to the elim ination or reduction o f inequitable jo b , sex, and plant d iffe r e n t ia ls . Major Provisions o f the Master Agreements Wages and Hours. —The agreements require wage payments to be made at hourly rates except fo r certain jobs where piece or week rates are established lo ca l p ra ctice . The companies provide the unions with the current rate schedule p rior to the opening o f negotiations fo r a new agreement. This schedule forms the basis fo r wage bargaining. The common labor rate may d iffe r between market areas, but p r a c tic a lly a l l jobs are c la s s ifie d according to a sp e cifie d number o f wage brackets above the unskilled or common labor rate. During the past few years, geographical and sex d i f f e r en tia ls have been substan tially reduced by c o lle c tiv e bargaining. Until recen tly, women received lower hourly rates than men in most areas. This dual wage structure, a tra d ition in the industry, con tinued to e x is t a fter the rate revision o f 1947. However, through negotiation, th is d iffe r e n t ia l has been gradually reduced from a range o f 5 to 14 cents an hour in early 1952 to a uniform 5 cents la te r that year; th is was reduced to 3.5 cents in the 1954 agree ments. In 1956, a further reduction was made, so that th is d i f f e r e n tia l has been almost e n tir e ly eliminated. Earnings in th is industry compare favorably with those o f other manufacturing in dustries. As o f April 1957, production workers in wholesale meatpacking establishments averaged $93.61 a week and $2.30 an hour; weekly hours averaged 40.7. Comparable averages fo r workers in a l l manufacturing industries were $81.99 a week, $2.06 an hour, and 39.8 average weekly hours. C o s t-o f-liv in g wage adjustments were included fo r the f i r s t time in the 1956 agreement. Wage adjustments are made semi annually, in May and November, on the basis o f a 1-cent increase in 3:07 5 the hourly wage rate f o r every 0.5 point increase over the August 1956 le v e l o f the Bureau o f Labor S t a t is t ic s ' Consumer Price Index. A sp ecia l formula fo r wage decreases resulting from declinin g p rices is also a part o f the agreement. A 40-hour workweek and an 8-hour day are the standards sp e cifie d in the contracts, with time and one-half paid fo r hours in excess o f these lim its. A ll workers not regularly scheduled to work during the weekend receive time and on e-h alf fo r Saturday work and double time fo r Sunday. Those normally scheduled to work these days have other assigned days o f f to which the weekend over time rates apply i f they are ca lled to work on th eir rest days. Guaranteed weekly hours are a common feature in meat packing agreements. Such guarantees represent an attempt to regularize weekly earnings in an industry dependent upon seasonal and daily flu ctu ation s o f livestock shipments to the central mar kets. The Swift agreement guarantees 36 hours' pay to a ll regular fu ll-tim e hourly employees ca lled to work at the beginning o f the workweek, providing they are neither absent without leave nor la te during the week. The Armour agreement contains a sim ilar guarantee, but does not include those workers la id o f f up to and including the the close o f the f i r s t day o f the workweek. Related Wage P ra ctice s. —The agreements provide a premium o f 10 cents an hour (e ffe c t iv e Sept. 1, 1957) fo r n ig h t-sh ift work ers, 12 minutes a day paid clothes-changing time, and a weekly cash allowance o f 50 cents fo r work clothin g not provided by the company. A minimum o f 4 hours is paid fo r when employees are called to work le s s than a f u l l day. I f recalled during a day in which they have worked and have been sent home, time and on e-h alf rates p reva il fo r the additional hours worked. Regular hourly employees receive pay fo r 8 holidays and, in addition, are paid double time fo r any hours worked on these holidays. Vacation b e n e fits, increasing with length o f service from 1 week a fter 1 year to 4 weeks a fte r 25 years, are provided. Regular employees with more than 1 year o f service are e n title d to sick -leave b en efits when absent because o f illn e s s or accidents suffered while o f f the job . Employees qu alifyin g fo r such leave ben efits are e n title d to 2 weeks' compensation at on e-h alf pay fo r each year o f continuous se rv ice . 2/ 2 / Workmen's compensation insurance, required by law, covers on -th e-job d is a b ilit ie s . 3:07 6 Other b en efits included in the union agreements with Armour and Co. are l i f e insurance, accident, sickness, h o s p ita li zation, medical, and surgical protection fo r employees. Similar h o sp ita liz a tion , su rg ica l, and medical ben efits are provided by the Swift contracts. Group l i f e insurance and a paid sick -lea ve plan are available to Swift employees but are not included under c o lle c tiv e bargaining. In 1952, Armour and Co. incorporated a retirement plan in the c o lle c tiv e bargaining agreement. Swift has such a plan in e ffe c t fo r i t s employees, but i t is not covered by the agreement. Union S ecu rity. —The agreements with two large packers do not provide fo r the union shop; rather, the unions are recognized as the so le bargaining agent fo r a ll workers in the bargaining un it. A checkoff clause, providing fo r the deduction by the em ployer o f union dues and in it ia t io n fees from the workers* wages fo r transfer to the union, appears in each agreement. Job S ecu rity. —Length o f serv ice, or se n io rity , is an important fa ctor in la y o ff, rehire, and promotion o f packinghouse workers. Other fa ctors such as training, a b ilit y , and physical fitn e s s may be considered, but detailed contract provisions give se n io rity primary emphasis. Separate l i s t s fo r men and women pre v a il; sen iority may be established at both department and plant le v e l. Dismissal or separation pay fo r workers permanently la id o f f due to a reduction in force was included in agreements fo r the f i r s t time in 1949. A fter 1 yea r's service, q u a lifie d workers at both Armour and Swift are e lig ib le fo r 1 week's pay; graduated allowances are made to workers with longer service in accordance with schedules incorporated in the agreements. For example, 5 years o f continuous service merits 3 weeks* separation pay; 10 years, w eeks'; each additional year above 10 increases the separation allowance by l j weeks' pay. 7\ Grievance Procedure. —Detailed provisions in the master agreements outline the grievance procedure from the i n i t i a l step to fin a l settlem ent. Grievances are processed by shop stewards or grievance committees designated by the union. I f the dispute is not s e ttle d between the supervisor and the aggrieved worker (with or without union representation), i t moves into the formalized process. In most cases the grievance is reduced to w riting at the second step. The matter may be se ttle d here between union stewards and the general foreman or d iv ision superintendent; i f not, n otice o f ap peal to the third step must be f i l e d with the international union and the main o ff ic e o f the company, although settlement may be reached at the plant le v e l. The fourth step carries the dispute to 3:07 7 the general superintendent o f the company and the international union representative. I f these procedures do not lead to settlement, the griev ance may be submitted to arb itra tion by eith er party, the decision o f the arbitrator to be fin a l and binding. Time lim its between steps o f the grievance procedure must be observed. Employees retain the right to strik e a fte r the established grievance procedures are exhausted, i f the issues are nonarbitrable. Such issues include grievances over workloads and work assignments. The Hormel Annual Wage Plan The firm o f George A. Hormel and Co., o f Austin, Minn., maintains a guaranteed annual wage plan which has attracted atten tion fo r many years as one o f the few comprehensive plans o f this type in the United States. Introduced in the early 1930’ s by the employer it was la te r incorporated in the agreement with the Packinghouse Workers and made subject to c o lle c tiv e bargaining. In 1949, a production incentive plan and p rofit-sh arin g arrangement were added; the la tt e r , however, was exempted from c o lle c tiv e bargaining. The annual wage feature guarantees each e lig ib le employee 52 paychecks a year, equal to regular fu ll-tim e weekly pay. Actual hours worked each week may vary, but overtime rates become e f f e c tive only when the weekly hours worked exceed 53. Workers receive a year-end payment fo r hours actu ally worked in excess o f the guarantee. Under the work incentive plan, a production norm is established fo r each department or gang. I f the employee’ s output is in excess o f the norm, he receives extra pay in addition to his weekly wage. A further incentive provides that net p r o fits w ill be divided between the employees and the company on a slid in g percentage basis. A ll plant and o f f ic e employees are e lig ib le to p a rticip a te. According to union spokesmen, the e ffe c t s o f wage secu rity and the incentive program are apparent within the plant. It is claimed that production per worker is considerably higher than in comparable plants-, the workers fe e l they have a direct in terest in the company, and on the whole, union-management relation s are very good. 3:07 3:08 The Petroleum Industry The growth o f the petroleum industry has been c lo s e ly a llie d with that o f the automobile industry. Technical develop ments in either industry lim it or condition technical developments in the other. Gasoline, lu bricants, and asphalt are but three o f the hundreds o f in dustrial products derived from crude o i l , but they are essen tial to mass automotive transportation. The use o f o i l burners fo r household space heating and the widespread s h ift from coal to oil-bu rn in g locomotives and ships have also con trib uted to the growth o f the industry. The petroleum industry includes four basic d iv is io n s: Production, refin in g, pipeline transportation, and marketing. The entire industry employs approximately a m illion people, h a lf o f whom are engaged in o i l f i e ld and refining operations. The nature o f these operations, p a rticu la rly refin in g, requires heavy capita l investment which, in turn, has led to the development o f the large integrated companies, now in ternationally recognized as represent ing the o i l industry. The O il, Chemical, and Atomic Workers o f America (AFL-CIO) is the major a f filia t e d union and represents about h a lf o f the o r ganized workers in the industry. A distinguishing ch a ra cteristic o f industrial relation s in petroleum is the number o f independent or u n a ffilia te d labor organizations that have secured bargaining rights fo r production employees on a sin gle plant or company ba sis. The Industry Although underground crude o i l resources are found in several States, two primary producing areas— C alifornia and the mid-continent fie ld s (Texas, Oklahoma, and Louisiana)—account for almost 80 percent o f crude petroleum production in the United States. R efineries are le ss concentrated geographically than the o i l fi e ld s , but more than h a lf o f the entire capacity is located in four States—Texas, Louisiana, C alifornia, and Pennsylvania. Twenty large integrated o i l companies commonly known as the majors, produce over h a lf o f the crude o i l , control threefourths o f the pipelin e mileage, and own 85 percent o f the cracking f a c i l i t i e s . (Cracking is the name applied to the process o f break ing down or rearranging the molecules o f heavy o i l into the motor fu els necessary fo r modern high compression engines.) R efineries have always required large ca p ita l investments and the newer in d u strial techniques require more elaborate and co stly equipment. Though these processes improve the quality and increase the quantity o f gasoline that can be recovered from a given quantity o f crude ( 1) 2 o i l , they are subject to rapid obsolescence and represent too great an investment fo r a ll but the very large concerns. Although petroleum refin in g and transportation is a highly concentrated industry, small business enterprises are s t i l l important in the production o f crude o i l and account fo r over 35 percent o f the output. Independent contractors dig most o f the w ells and provide many o f the necessary rig and derrick bu ilding, dismantling, and w ell-cleaning se rv ice s. require than 10 workers do most In r e fin e r ie s , highly mechanized processing operations r e la tiv e ly l i t t l e manual work. Labor costs amount to le ss percent o f the value o f the product. In general, petroleum receive higher wages and more lib e r a l fringe b en efits than in du strial workers. The sharp rise in demand fo r petroleum products follow in g World War II led to an increase in the output o f crude o i l from 1,700 m illion barrels in 1945 to about 2,600 m illion barrels in 1956. Approximately 330,000 workers were employed in exploration, d r illin g , extra ction , and storage o f crude petroleum and natural gas in 1956. Transportation o f o i l from more than 400,000 producing wells to r e fin e rie s requires p ip elin es, tankers, and railroad tank cars. Though employing only a small number o f workers (approxi mately 25,000) pip elin e transportation represents a v it a l link in the industry. In 1956, refin ing processes required approximately 200,000 employees to convert crude o i l into the va riety o f end products o f the petroleum industry. In both f i e l d production and refin in g, a re la tiv e ly large number o f profession al employees are required, including g e o lo g is ts , geoph ysicists, engineers, surveyors, and chemists. Production work ers in the o i l fie ld s include equipment operators, craftsmen em ployed in sp ecia lized maintenance operations, and common laborers (known as roustabouts). Approximately a third o f the plant workers in a typ ica l refin ery are engaged in operating various d is t illa t io n and cracking units and other processing equipment, most o f which are con trolled by instrument. More than h a lf are employed at mainte nance job s, such as repairing, rebuilding, and cleaning operating equipment. Other workers are employed in the packaging and ship ping departments. Exploring, d r illin g , and o i l f i e l d servicin g crews gen e r a lly consist o f r e la tiv e ly young men. Shortly a fte r World War I I , 46 percent o f o i l f i e l d and refin ery workers were between the ages o f 18 and 35; 39 percent between 36 and 50; and 15 percent were over 50. Few women are employed in the industry except in c le r ic a l and o f f i c e jo b s . 3:08 3 The Unions A union lo ca l was organized in a Pennsylvania o i l f i e ld as early as 1872. Most early attempts at unionization were marked by s t r if e and defeat. Except fo r a short period during and a fte r World War I , organized labor had l i t t l e success u n til a fte r 1935. By 1954, i t was estimated that more than 80 percent o f the workers employed in refin in g operations were covered by union agreements. Union organization among o i l f i e l d and pipeline transportation em ployees is considerably le s s extensive (estim ated at between 20 and 40 percent in 1951). The International A ssociation o f O il F ield, Gas Well and Refinery Workers o f America (la te r known as the O il Workers Inter national Union) was chartered by the AFL in 1918. It reached a peak membership o f 24,800 in 1921, then declined to a reported 400 in 1932. The O il Workers, o r ig in a lly chartered as an industrial union within the AFL, frequently found i t s e l f in ju r is d ic tio n a l c o n flic t with cra ft internationals o f the Federation and joined the Congress o f Industrial Organizations in 1938. In 1955, the merger o f the O il Workers International Union and the United Gas, Coke, and Chemical Workers o f America created the O il, Chemical and Atomic Workers International Union (OGAW). This union, a f filia t e d with the AFL-CIO, now represents about h a lf o f the organized workers in the industry. Several other AFL-CIO unions also represent some workers in the industry. Independent or u n a ffilia te d unions organized among the workers in a sin gle plant or company have considerable strength in a number o f the larger firm s. Some o f these unions had th e ir o rig in in company-sponsored employee representation organizations when such organizations were leg a l (p rio r to 1935). Independent unions also have grown with the expanding industry and today rep resent a substantial number o f the organized workers. C ollective Bargaining Agreements are negotiated with individual companies, generally on a sin gle plant basis. This is true fo r both the a ffilia t e d and independent unions. One major exception is the agreement between the S in cla ir O il Corp. and the OCAW. In th is instance, a companywide contract has been in e ffe c t since 1934. With the exception o f the executive, p rofession a l, supervisory, c le r ic a l, and technical s t a f f , a l l employees o f the company, whether in re fin e rie s, pipeline d iv is io n , o i l fi e ld s , or the research de partment, are covered by the master agreement. 3:08 4 In a few companies, agreements are negotiated on an occu pational basis fo r such employees as machinists, e le c tr ic ia n s , and boilermakers. The appropriate AFL-CIO cra ft union represents these employees; in some areas, a metal trades cou n cil, including several c ra ft lo c a ls , negotiates with the company. Agreement Provisions Wages and Hours. —Petroleum paid in dustrial workers. workers are among the highest According to a 1951 wage study in petroleum re fin in g , earnings higher than the average fo r the industry prevailed in the Middle A tlan tic and Great Lakes regions fo r a number o f occupations. In western Pennsylvania and southern New Jersey, lower than average earnings were noted. However, these d iffe r e n tia ls may be influenced by fa ctors other than geography, such as the size o f establishment, the surrounding in du strial environment, or the p a rticu lar petroleum product being processed. Among the o i l producing regions, the highest rates paid in 1951 fo r o i l f i e l d workers were reported in C alifornia and the Mountain States, and with the lowest rates in Kentucky and West V irgin ia. Current average hourly earnings fo r workers employed in the production o f crude petroleum are below those in re fin e rie s but well above the average fo r a l l manufacturing industries. Wage provisions o f the agreements, generally d eta iled , frequently appear as an appendix to the main agreement or as a supplementary document. In those cases where the company bargains fo r more than one plant, separate rate schedules are generally es tablished fo r each. Wage rates may be quoted on e ith e r an hourly or d a ily b a sis. One 1955-56 agreement provided the follow in g hourly rates fo r refin ery workers: Common la b or, $1.84 an hour; f i r s t cla ss mechanics, $2.67; and operators in charge at the plants, $2.84. Another provided a rate o f $22.05 a day fo r a Stillman, who is gen e r a lly the highest paid production worker in the refin ery. Helpers in the same department received $17.35 a day. Day rates in e ffe c t at one o i l f i e l d operation in 1955 were: Rotary d r il le r , $24.17; derrickman, $20.31; f i r s t - c la s s mechanic, $19.71; and roustabout, $17.06. Agreements signed in 1956 and 1957 contained additional wage increases. Though the 8-hour most agreements, o i l f i e l d and one-h alf fo r overtime. s h ift operations, fo r iriiich 3:08 day and 40-hour week are s p e cifie d in workers may work longer hours with time The nature o f the industry requires wage d iffe r e n tia ls o f 6 cents fo r the 5 second s h ift and 12 cents fo r the third are common. 1 / Reporting pay provisions vary but the p ractice o f guaranteeing a d a ily mini mum number o f hours or pay prevails in the industry. Other P rovisions. —With a few exceptions, agreements with major o i l companies provide 8 paid holidays each year, though in some instances holiday pay is contingent upon completion o f 6 months* or a yea r's service with the company. Work performed on a holiday, on Sunday, or on the seventh consecutive day is generally paid at two and one-h alf times the regular rate. A fter 1 year with a company, most petroleum employees receive 2 weeks* vacation with pay, those with 15 years or more receive 3 weeks, and several companies provide 4 weeks a fte r 20 years. Severance pay allowances graduated according to length o f service are frequently found in petroleum industry agreements, as are straight-tim e pay allowances fo r time lo s t while serving on a jury or because o f a death in the employee’ s immediate fam ily. Generally, a l l employees in the petroleum industry are included under rather comprehensive employee ben efit plans, many o f which have long been in e f f e c t . Both companywide and single plant programs e x is t . In 1951, nearly a l l refin ery workers and over th r e e -fifth s o f those employed in crude o i l production were covered by plans o ffe r in g one or more o f the follow ing b e n e fits: L ife insurance, h osp ita l, medical, and su rgical insurance; sickness and d is a b ilit y b e n e fits ; retirement annuities; and in several cases, employee savings or stock purchase plans. Of 73 plans included in a 1951 study, only 6 were noncontributory, that is , financed en t ir e ly by the employers. Union S ecurity. —A union shop clause is not ty p ica l in th is industry. Union secu rity is generally lim ited to exclusive bargaining p riv ile g e s fo r the recognized labor organization. How ever, the OCAW and the Metal Trades Council have negotiated mainte nance-of-membership clauses in some agreements. The ch eckoff, an arrangement whereby the employer withholds union dues from the worker's wage and remits th is sum to the union, appears to be an accepted practice in the industry. 1 / These rates were increased to 8 and 16 cents cent wage settlem ent. in one re 3:08 6 Job S ecu rity. —Employees with several years o f service enjoy a high degree o f job secu rity . Detailed sen iority provisions cover la y o ff, rehire, and promotion in most plants. The s p e c ific sen iority provisions vary among the agreements. Grievance Procedures. —Formalized grievance procedures vary. In some agreements, at least fiv e steps (a t any one which the issue could be resolved) are s p e c ific a lly provided before a question may be taken to arbitration . In others, grievances go before a board o f review fo r fin a l decision a fte r only two attempts at settlement. 3:08 3:09 The Construction Industry The construction industry has been characterized as a "group o f related firms whose prin cipal common denominator is the employment o f the same labor force and bargaining with the same trade unions." Trade unions play an important role in the function ing o f the industry. Residential and nonresidential building, and s tr e e t, highway, and other heavy construction a l l require highly s k ille d craftsmen available on short n otice. With few exceptions, the employers who deal with the unions rely upon them to provide the work fo r c e , whether in the c it ie s or in remote and isola ted areas. Construction workers tend to id e n tify themselves with th eir cra ft and th eir union rather than with the employer with whom many have only interm ittent relation sh ips. They look to the union fo r job leads or assignments, fo r the improvement o f working conditions, and fo r the maintenance o f standard wage sca le s . The unions, in a sense, contribute a s ta b iliz in g influence to what would otherwise be an irregular employment situ ation . The ex istin g pattern o f relationships between unions and employers in the industry has developed over many years. I t is marked by a reliance upon multiemployer bargaining and the observ ance o f union working rules. The Industry Expenditures fo r new construction in 1956 reached a rec ordbreaking $46 b i lli o n , accounting fo r over 10 percent o f the tota l value o f goods and services produced in the United States. Over 2.5 m illion workers were employed in contract construction on resid en tia l and nonresidential building; another h a lf m illion worked on s tre e ts , highways, dams, p ie rs, and other types o f non building contract construction. 1 / Construction is prim arily a service provided by con tractors (employers) who agree to build certain structures or in sta lla tion s according to s p e c ifica tio n s . Contractors f a l l into two broad cla sses: General contractors and special trade contrac to rs . The general contractors are responsible fo r an entire p r o je c t, 1 / Employment on force account construction (constru ction work performed by an establishment prim arily engaged in some business other than construction, fo r it s own account and use and by it s own employees) is not included in the employment to ta ls fo r contract construction. ( 1) 2 and generally s p e cia liz e on a particular type o f construction such as houses, sch ools, commercial construction, bridges, or roads. They may perform a substantial portion o f the contract with th eir own work force and subcontract particular functions to sp ecia l trade contractors who usually are not re stricte d to one type o f construction. Both general and sp ecia l trades contractors tend to organize th e ir work forces around s p e c ific p r o je c ts ; that i s , they employ only a few workmen on a year-round basis and depend upon ob taining men with appropriate s k ills as needed. O rdinarily, a con tra ctor procures as w ell as in s ta lls the m aterials fo r his part o f the p r o je c t , but in some instances contracting occurs on a "lab or only” b a sis; that is , the contractor assumes no re sp o n s ib ility fo r purchasing or assembling materials or parts. Some idea o f the s iz e o f these operations may be derived from the fa ct that o f the 262,000 contractors (general and s p e cia l) reporting taxable payrolls ( f o r s o c ia l secu rity ) in March 1953, 205,000 employed fewer than 8 workers and only 2,600 employed more than 100. The larger employers are generally engaged in nonresid en tia l building and in the numerous large housing p ro je cts which have been developed since World War I I . 2 / The r e la tiv e ly large number o f firms providing construction services in each l o c a lit y , the ease with which firms enter or leave the f i e l d , and the predominantly lo c a liz e d area o f competition have greatly influenced the development o f labor-management relation s in the construction industry. The construction o f skyscrapers, bridges, tunnels, and dwellings requires a variety o f highly developed s k i l l s . Thus, the building trades comprise the largest concentration o f s k ille d occupations in American industry. Workers who become e le c tr ic ia n s , carpenters, bricklayers, e t c ., generally regard th eir choice as a life tim e occupation. They usually serve an apprenticeship, 4 years being most common, during which they work on the job and attend trade school cla sses. The journeyman ty p ic a lly regards him self as a member o f a given trade, not as an employee o f a particu lar con tra cto r, a r e fle c tio n o f the temporary nature o f employment relat ionsh ip s . Much o f the work is performed out o f doors and hence is a ffe cte d by clim atic conditions; 36 to 40 weeks constitu te a year’ s 2 / These developments may be sponsored by an operative builder who combines the functions o f the real estate developer, contractor, and sales manager. 3:09 3 work 'in some areas. In addition, construction a c tiv ity is c lo s e ly tie d to the general le v e l o f business a c tiv ity . When business prospects are good, construction commitments are forthcoming; how ever, since a decision to build is e a s ily postponed, the impact o f a recession is quickly f e l t in the building trades. The Unions Worker organization in the construction industry was a forerunner o f the modern trade union movement; i t s orig in in this country can be traced to colon ia l times. For example, a so cie ty o f carpenters existed in Philadelphia as early as 1724. Most o f the national unions were formed before 1900. Currently, it is estimated that more than 2 o f every 3 construction workers are covered by union agreements. Nineteen unions, with more than 4 m illion members, in cluding workers outside the construction industry, comprise the Building and Cbnstruction Trades Department o f the AFL-CIO. This department was established in 1908 to deal with ju r is d ic tio n a l problems among it s a f f ili a t e s and to coordinate p o licy fo r the building trades unions. The numerous trades represented in the Building and Construction Trades Department include carpenters, construction laborers, operating engineers, cement masons, con stru ction teamsters, painters, p la sterers, t i l e s e tte rs , e le c t r ic ians, and others. County or lo c a l area building trades cou n cils, repre senting the construction unions in the community, play an impor tant part in influencing the p o lic ie s o f a f filia t e d lo c a l unions and representing the in terests o f a l l construction labor in th eir areas. A wage p o lic y or strik e action o f any one lo c a l would ord in a rily not be approved by the council i f it worked to the detriment o f the group as a whole. However, work stoppages not o f f i c i a l l y sanctioned may occur sin ce , in general, lo c a l unions in the building trades exercise a high degree o f independence in relation to th eir international unions. In a changing industry, where craft consciousness on the part o f the workers is widespread, ju r is d ic tio n a l issues are bound to a rise. Recent changes in methods o f construction, including some prefabrication o f dwelling u n its, or fa ctory assembly o f wall sec tio n s, cabinets, and window u n its, have led to co stly disputes be tween competing unions. The introduction o f new materials in place o f tra d ition a l wood, p la ster, and metal has given rise to new claims fo r ju r is d ic tio n a l rights. Since 1948, the unions within the 3:09 4 Building and Construction Trades Department have attempted to s e tt le these issues within th eir own organization through the mecha nism o f a National Joint Board fo r Settlement o f J u risd iction a l Disputes. C ollectiv e Bargaining Structure Construction contractors have established various lo c a l or national association s to represent the in terests o f those engaged in sim ilar a c t iv it ie s , p a rticu la rly in dealings with the unions. The most ty p ica l form o f organization among contractors is the lo c a l area association to which most o f the general contractors in the area belong. Specialty contractors usually form lo c a l organizations by trade at the c it y and county le v e l to negotiate with th e ir labor counterparts. Thus, the dominant type o f c o lle c tiv e bargaining in the industry is multiemployer bargaining, ty p ic a lly covering a lo c a l, rather than a regional, or national, area. Town, c it y , or county boundaries are generally used to define the area within which union rules and c o lle c t iv e ly bargained agreements are ap plicable. As union organization spreads out from the c it ie s to surrounding areas, the coverage o f the area agree ments tends to follow . Labor-management relation s in the construction industry are la rg ely governed by terms o f the c o lle c tiv e bargaining agree ment and the working rules in the union con stitu tion and bylaws. This situ a tion has developed over a long period o f time. The in corporation o f s p e c ific job rules in the union con stitu tion , such as proh ibitin g laborers from performing journeymen's work, assures a consistent or uniform approach to common work p ra ctice s. Although the purpose o f working rules is protective and regulatory from the union's point o f view, some appear to be r e s tr ic tiv e in operation from the employer's point o f view. In the day-to-day c o lle c tiv e bargaining relation sh ip, the business agent, normally a paid union representative, is a key fig u re , exercising considerable influence on the hiring o f workers. Many employers maintain only informal employment records; hiring is usually done by the foreman on the job who n o t ifie s the union o f f i c e or business agent when he needs men. The business agent makes cer tain that the employer acts in conformity with the agreement and the accepted customs o f the trade. He serves as an expert adviser to the grievance committees, often e ffe c tin g a settlement o f a d is pute on the premises. 3:09 5 Work stoppages in the construction industry are generally rooted in disagreement over the terms o f new contracts; neither employers nor unions are inclined to arbitrate these issues. Wages and supplementary b e n e fits , as in most other industries, have been the primary issues in work stoppages. Intraunion or interunion disputes rank second in importance among the issues leading to strik es in construction trades. According to Bureau o f Labor Sta tis tic s * estim ates, disputes over intraunion or interunion matters, mostly ju r is d ic tio n a l, accounted fo r about 20 percent o f the work stoppages and 8 percent o f the man-days id le in the construction industry during the postwar period. Major Agreement Provisions Agreements in the industry vary from simple*, written understandings on wages, hours, and working conditions, to lengthy documents. However, the b r ie f uncomplicated contract is most com mon. As previously indicated, many practices subject to c o lle c tiv e bargaining in other industries are covered by union working rules in the construction trades. Although not c o lle c t iv e ly bargained, some practices by custom have been accepted by employers as part o f the agreement with the union. Wages and Hours. —The practice o f a standard rate, that i s , a uniform rate fo r a l l workers in each cra ft in the area cov ered by the agreement, prevails throughout the industry. Each agree ment s p e c ifie s the hourly rate fo r journeymen, frequently referred to as the union s ca le . Employers on occasion have been known to pay a higher rate, however. Rates w ill also vary fo r d iffe re n t types o f work; fo r example, the union sca le in Dallas, T ex., fo r carpenters employed on heavy work was $3,125 per hour in July 1956, and the regular carpenter rate was $2,875. The agreements often sp ecify a premium over the journeymen*s rate fo r foremen. Appren tic e s in each c ra ft are paid on an advancing sca le , beginning at a le v e l approximately 40 to 50 percent o f the journeymen's hourly rate and increasing at h a lf yearly in terva ls. During the fin a l 6 months o f train in g, apprentices receive about 90 percent o f the journey men's wage. Hourly rates in the construction industry are high in comparison with rates fo r s k ille d plant maintenance workers in other industries. This i s due, in part, to the seasonality o f the indus try. The union scale fo r bricklayers and plasterers averaged $3.62 and $3.50, resp ectiv ely, in July 1956; building laborers averaged $2.20. Building trade unions oppose piecework or other incentive systems o f payment. 3:09 6 The 8-hour day and 5-day week have prevailed in most areas since 1920; in some, the sp ecia lty trades have secured a 6- or 7-hour day. Overtime rates (time and on e-h a lf or double time) apply fo r a l l hours worked in excess o f the established working day and fo r any work done before or a fter the hours established fo r the normal working day. Double time is generally provided fo r work on Satur days, Sundays, and holidays. In contrast with many manufacturing in du stries, paid holidays and vacations with pay are not common, although the la tt e r have been achieved in some areas. Two to 4 hours' reporting pay, commonly ca lle d showup time, is provided fo r in many contracts, but paid time is seldom allowed fo r washup and cloth ers changing. The P revailing Wage Law (Davis-Bacon Act) and related acts require contractors and subcontractors on p rojects financed d ir e c t ly by the Federal Government (o r on certain p ro je cts financed in part by the Federal Government) to pay the rates prevailin g in the area; t h is requirement does not include supplementary or related wage b en efits. In most large c i t i e s , the prevailing rate fo r con stru ction r e fle c ts the union s ca le . Supplementary B en efits. —Most construction unions have fo r many years operated union benefit programs providing death, o ld age sickn ess, and d is a b ilit y payments to th eir members. This helps explain why the development o f frin ge b en efits in the construction industry has been le s s rapid than in other in dustries. However, employer-financed health and insurance plans have been negotiated in increasing numbers during recent years. A m ajority o f union members in a number o f building trades are now covered by labor-management contracts providing health and insurance plans. These are generally financed by employer contributions o f a s p e c ifie d amount per hour o f work, paid into a central fund which purchases the necessary in surance coverage fo r those employed in the area. Private pension plans supplementing Federal old-age pen sions are not common in construction although they have been in cor porated into a few agreements. Among the c o lle c t iv e ly bargained pension plans, probably the most notable is the one between the National E le c tr ic a l Contractors A ssociation and the International Brotherhood o f E le c tr ic a l Workers. Employers and workers, through the union, contribute to a jo in t ly administered pension fund. Mem bers in good standing fo r 20 years, upon reaching the age o f 65, are e lig ib le fo r ben efits o f $50 a month. Union S ecu rity. —The closed-shop rule, allowing only un ion members to work on the jo b , was w ell established in the construc tion industry p rior to the enactment o f the Labor Management 3 :0 9 r Relations (Taft-H artley) Act o f 1947, which forbade such provisions. In p r a c tic e , the employer generally n o tifie s the union o f f i c e when he needs workmen. Since enactment o f the law, the union must be w illin g to register nonunion members i f i t operates an employment serv ice, that i s , re fe rra l p ractices must operate on a nondiscrimi nator y b a sis. Grievance Procedures. —Methods o f grievance procedure tend to vary with lo c a lity and trade, though formal procedures are es tablished in most contracts. In general, i f a grievance is not se ttle d between the worker and his foreman d ir e c tly , the business agent o f the union frequently is able to s e tt le the issue on the premises. Disputes which cannot be se ttle d by the employer and the union representative are referred to committees representing the employers' association and lo c a l building trades cou n cil. Arbitra tion , though seldom resorted to , is provided as a fin a l solu tion to those issues that cannot be resolved by the p a rties. In com munities where both employers and workmen are w ell organized, the terms o f the agreements are ca re fu lly observed and serious disputes are generally avoided. Union Working Rules The s h iftin g or transient working relationships charac t e r i s t ic o f the construction industry underlie the existence o f union working rules. Through these regulations, co d ifie d in th eir con stitu tion s and bylaws, the unions have helped to influence the supply o f labor and the conditions o f work. No one set o f working rules p rev a ils. Each lo c a l has authority to establish rules within it s own ju r is d ic tio n as long as they do not c o n flic t with rules o f it s international union. Typical rules prohibit or lim it the amount o f trade work that may be done personally by an employer, frequently requiring that he hire at least one journeyman. This prevents a worker from hiring one or two helpers and ca llin g him self a contractor. Some trades require that a foreman be hired i f there are three or more men in a crew and that foremen be paid a premium rate when required to work with t o o ls . The number o f apprentices, expressed as a ra tio to journey men in the c r a ft , and the length o f apprenticeship training are f r e quently sp e cifie d in the union bylaws. In p ra ctice , apprenticeship programs are cooperative ventures o f both employers and the unions. A registered apprentice program is maintained throughout the United States under the jo in t d irection o f the State apprenticeship agen cies and the U. S. Department o f Labor's Bureau o f Apprenticeship. 3:09 8 Several cra fts have regulations concerning the to o ls or labor-saving devices that may be used. These rules seek to protect the health and welfare o f the members, but they have been c r it ic iz e d on the ground that they discourage innovation. Recent studies o f construction trades seem to indicate that these rules are less burdensome than popularly believed. In housebuilding, fo r example, postwar developments have led to the use o f many modern labor-saving techniques such as portable power saws; most innovations have been introduced with l i t t l e opposition from the international unions and frequently with th eir cooperation. Union-Management Cooperation The National Joint Board fo r Settlement o f J u risd ictio n a l Disputes, established in the building and construction industry in 1948, is an example o f a nationwide union-management cooperation program. It con sists o f 8 members (4 representatives o f p a rticip a ting contractor association and 4 representatives o f building and construction trades unions) and an impartial chairman selected by the industry and labor members o f the Board. This Board is con cerned s o le ly with ju r is d ic tio n a l disputes arising in the industry. During the f i r s t 8 years o f i t s existence, several hundred cases have come before it and only a few were not se ttle d through it s procedures. Cooperation between unions and employers in the building trades has frequently centered around the apprentice training pro grams mentioned e a r lie r . Another jo in t e ffo r t is the Council on Industrial Relations fo r the E le c tr ic a l Construction Industry, a union-management group about 35 years o ld , which makes valuable con tribu tion s to a better understanding o f labor-management problems in the industry. Through th is organization, representatives o f the International Brotherhood o f E le c tr ic a l Workers and the National E le ctrica l Contractors A ssociation meet and discuss mutual problems concerning produ ctivity, labor rela tio n s, and th eir community r e s p o n s ib ilitie s . Another recent example o f cooperation occurred in 1953 when the Contracting Plasterers International A ssociation, an em ployer group, and two unions, the Operative P lasterers1 and Cement Masons# International A ssociation and the International Union o f Wbod, Wire and Metal Lathers, joined forces to establish a code o f standards. The new program was launched to meet the competition o f wallboard and other types o f dry wall construction. Advertising, improved workmanship, and cost consciousness are a ll part o f the program to secure more plasterin g jobs and more employment fo r the craftsmen in the industry. 3:09 3:10 Electric and Gas Utilities Output o f e le c t r ic and gas u t i l i t i e s , the source o f in du strial and resid en tia l heat, lig h t, and power, has undergone a tremendous expansion in the past 15 years. The 1956 output o f e le c t r ic energy (over 680 b illio n kilowatt hours) represented almost a fo u rfo ld increase over 1940; natural gas marketed during th is period increased by a lik e proportion. Though residen tia l users buy less than one-fourth o f the e le c t r ic energy produced, most American fam ilies have e le c t r ic it y in th eir homes. The 1950 Census o f Housing, fo r example, reported that 94 percent o f a ll dwellings had e le c t r ic lig h ts . Farm homes having e le c t r ic it y in creased from 33 to 78 percent between 1940 and 1950. Farmer-owned e le c t r ic cooperatives under the Rural E le c tr ific a tio n Administra tion have brought e le c t r ic it y to many rural areas. 1 / E le ctric and gas u t i l i t i e s in the United States operate under both private and public ownership and management. P rivately owned companies, which greatly outnumber government operations, are regulated in the public in terest by Federal, State, and municipal agencies. Under both types o f ownership, most o f the workers are covered by c o lle c tiv e bargaining agreements. In fed era lly operated systems, and under some State laws, work stoppages are prohibited. Even where there is no r e s tr ic tio n on the right to strik e , as in most p riva tely owned companies, a recognition o f the need to provide continuous se rv ice and to avoid public criticism serves as deterrents to work stoppages. In gen e r a l, both management and labor have adapted th e ir outlooks to the r e sp o n s ib ilitie s o f uninterrupted s e rv ice ; both parties generally oppose compulsory arb itra tion in p r in cip le ; both recognize the d e s ir a b ility o f working put th eir problems without intervention. P rivately Owned E le ctric and Gas U t ilit ie s Over 4,000 companies under private and public ownership are engaged in the generation, transmission, and d istrib u tion o f e le c t r ic energy and gas fo r resid en tia l and in du strial use in the United States. In s iz e , they range from those operating in rural areas with 5 or fewer employees to corporate enterprises with more than 20,000 employees serving the great metropolitan areas. Many 1 / The Rural E le c tr ific a tio n Administration, established with in the U. S. Department o f Agriculture since 1935, has made loans to over 1,000 farmer-owned e le c t r ic cooperatives. These cooperatives, prim arily e le c t r ic d istrib u tion systems, have brought e le c t r ic it y to more than 4 m illion rural fa m ilies. ( 1) 2 companies, p a rticu la rly the larger ones, d istrib u te both e le c t r ic it y and gas. P rivately owned e le c t r ic u t i l i t i e s produce more than three-fourths o f the e le c t r ic energy sold. Federal, State, and municipal power companies account fo r the rest o f the e le c t r ic energy produced fo r sa le . Many large in dustrial establishments manufacture power fo r th eir own use. In an unparalleled expansion between 1945 and 1954, natural gas transmission sales more than doubled and e le c t r ic gen erating capacity increased 83 percent. Generation by steam is by fa r the leading method o f e le c t r ic energy production among priva tely owned companies; only about one-seventh o f kilowatt-hour output is produced by h yd roelectric generation. E le c tr ic and gas u t i l i t i e s employed approximately 570,000 workers in A pril 1957. About a fourth o f these workers were in o f f i c e or c le r ic a l occupations. The m ajority o f the o f f i c e workers are women. The plant and service fo r c e , accounting fo r about threefourths o f to ta l employment, is almost e xclu sively male. In e le c t r ic systems, the c h ie f occupational groups ( in terms o f number o f workers) are linemen, trouble men, b o ile r operators, and substation operators at the upper end o f the wage s ca le ; truckdrivers and groundmen are among the lower paid groups. In gas production, gasmain f i t t e r s and helpers, servicemen, and laborers are the major groups. Servicemen frequently receive the highest wages paid to gas u t i l i t y workers and the laborers are among the lowest paid. Meter readers are employed in both types o f operations. Most o f the larger systems (more than 100 workers) are organized, hence most o f the plant workers in these industries are covered by union contract. The International Brotherhood o f Elec t r ic a l Workers and the U tility Workers' Union o f America are the major unions. Other unions have also secured recogn ition , prim arily in gas u t i l i t i e s ; these are the O il, Chemical and Atomic Workers International Union; International Chemical Workers Union; and D is trict 50, United Mine Workers. The Brotherhood o f U t ility Work ers o f New England, an u n a ffilia te d union, represents workers in several systems in that region. In addition, small, u n a ffilia te d unions represent workers in separate systems throughout the country. It i s estimated that more than 320,000 employees o f e le c t r ic and gas u t i l i t i e s were members o f unions in 1956. 3:10 3 C ollective Bargaining Multiemployer bargaining is rare in these industries. Negotiations generally involving representatives o f a single company or system and a union may take place at the system or plant le v e l. It is not unusual to have more than one union rep resenting d iffe re n t groups o f employees within a system. For example, the agreement between the U t ility Workers Union o f America and Consolidated Edison Co. o f New York in e ffe c t in 1956 provides fo r bargaining upon a systemwide b a sis. The agreement between Detroit Edison and the UWUA is a consolidation o f the separate agreements between the Union and the 18 in dividu ally c e r t ifie d bargaining u n its, but s p e c ific a lly preserves separate bargaining status fo r each un it. In both systems, the IBEW continues to rep resent particu lar groups; i . e . , i t negotiates with Detroit Edison fo r certain employees in the overhead lin es department as well as crane and elevator operators in the building and operations depart ment , and with Consolidated Edison fo r most o f the workers employed in the Staten Island operations. On the West Coast, the IBEW rep resents the operating, maintenance, and construction employees in the 13 geographic d iv ision s o f the P a c ific Gas and E lectric C o., one o f the largest p riva tely owned and operated u t i l i t y systems in the country. Negotiations are on a systemwide b a sis, but provision is made fo r varying rates o f pay based on the type o f service and geographic area. C ollective bargaining in -gas and e le c t r ic u t i l i t i e s is influenced by the essen tial nature o f the services provided. I f disputes between management and labor result in work stoppages, the health and welfare o f the community may be d ir e c tly and immedi a tely a ffected . Consumers generally have no alternative source o f heat, power, and lig h t , and even though certain esse n tia l services (to h osp ita ls, fo r example) are available during work stoppages, the public is seriou sly inconvenienced. On occasion , public opin ion thus tends to favor compulsory a rb itra tion o f public u t i l i t y disputes. Work stoppages in public u t i l i t i e s during the early postwar period led several States to adopt le g is la tio n prohibiting stoppages and compelling arbitration o f disputes. In general, management and labor in public u t i l i t i e s recognize the lik elih ood o f public hardship occasioned by an interruption o f service and re solve th eir problems without resorting to strik e or lock ou t, although occasional work stoppages do occur. To avoid work stoppages that might develop out o f disputes during the administration o f the agreement, the parties to the con tra cts have established comprehensive grievance procedures. One agreement, fo r example, provides that (1 ) a grievance may be se ttle d 3:10 4 by an employee, with or without union representation, and his im mediate supervisor; (2 ) i f not disposed o f within 5 days, it is reduced to writing and is handled by the union grievance committee and the department head; (3 ) i f unresolved a fte r 10 days, the matter w ill then be taken up by the union with the plant personnel d ire c to r; and (4 ) i f necessary, the president o f the company. In addi tion to th is procedure, the agreement provides fo r a sp ecia l board o f review composed o f an equal number o f management and union rep resentatives. I f th is board cannot reach a sa tisfa cto ry solu tion , the matter may then go to a rb itra tio n , the decision to be fin a l and binding. Some agreements provide fo r arbitration o f s p e c ific issues that may deadlock the n egotiation o f a new con tract, but both union and management generally have been unwilling to adopt a p o licy that would bind them to arbitrate a l l issues. Compulsory arbitration imposed by law usually has been opposed. Both union and management prefer to s e ttle issues at the bargaining ta b le . Recog nizing an ob lig a tion to provide continuous se rv ice , they seek and generally fin d acceptable solu tion s to th eir common problems. Wages and Related Benefits The 8-hour day and 40-hour workweek prevail in public u t i l i t i e s , with time and on e-h alf fo r overtime in excess o f the 8-hour day or 40-hour week. In most large companies, wage sched ules are w ell defined, as are the jo b c la s s ific a t io n s . I t is com mon p ra ctice to provide fo r a worker's progression from minimum or sta rtin g rates fo r a job c la s s ific a tio n to the maximum in a series o f steps determined by the length o f time in the jo b . U t ility workers ty p ic a lly are among the higher paid groups o f American workers. Bamings o f plant workers in e le c t r ic and gas u t i l i t i e s averaged $2.29 an hour in A pril 1957, exceeding those o f workers employed in a l l manufacturing, durable-goods manu fa ctu rin g, and in the communications in du stries. Regional d i f f e r ences are pronounced; earnings o f workers employed in the P a c ific Coast, the m id-A tlantic, and Great Lakes regions are above the national average fo r u t i l i t y workers, Whereas workers in the South east, Southwest, and Midwest areas are paid le s s on the average. Wage rates in systems employing over 1,000 workers are generally higher than in those with fewer employees. Public u t i l i t i e s require round-the-clock operation and agreements therefore generally provide fo r s h ift premiums fo r second and th ird s h ift workers. These may range from 6 to 18 cents an hour fo r those who work the midnight s h ift , and from 4 to 12 3:10 5 cents fo r those on the evening s h i f t . Premium rates are frequently provided fo r work on towers over a certain height or on liv e c i r cu its. Reporting and call-back guarantees found in some agreements stipulate that the worker sh a ll be paid at lea st a minimum number o f hours when required to report fo r duty. Paid vacations varying with length o f service are common. Two weeks a fter 1 year, 3 weeks a fte r 15 years, and occa sion a lly a fourth week a fter 25 years* service are provided by union contracts. Paid holidays range from 4 to 12 a year, although 6 to 8 holidays are most common. Formal provisions fo r sick leave at f u l l pay, ranging from 5 to 10 days a year, with extended sick leave provi sions on a partial-pay basis are found in many agreements. Other allowances may include traveltime pay, jury duty allowance, deathin-fam ily allowance, paid m ilitary le a v e , and severance pay. Insurance and pension plans, financed at least in part by the employer, are almost universal in p riva tely owned e le c t r ic and gas u t i l i t i e s . P ra ctica lly a l l the workers are covered by l i f e insurance and retirement b en e fits; the m ajority are covered by agreements including h osp ital and health insurance. Union S ecurity. — In a 1954 Bureau o f Labor S ta tis tic s survey o f union secu rity provisions in major agreements, the union shop was found in 65 percent o f the gas and e le c t r ic agreements studied. Provisions fo r the checkoff o f union dues by the employer appeared in three-quarters o f the agreements studied. Industrial Relations in a Government-Owned U t ility —The TVA Federal, State, and municipal power companies serve about 1 out o f every 5 consumers o f e le c t r ic a l energy in the United States. Among the public-owned f a c i l i t i e s is the widely known fe d e ra lly operated Tennessee Valley Authority, one o f the largest h ydroelectric developments in the country. N ecessarily, labor-management relation s and c o lle c tiv e bargaining develop along d iffe re n t lin es in a p u b licly owned enter prise lik e the TVA, where workers are employees o f the Federal Government, than in priva tely owned corporations. Federal workers are permitted to jo in organizations o f th e ir own choosing, but are prohibited from strik in g and normally would not p a rticip a te d i re ctly in negotiation o f th eir wage rates and working conditions. However, a c o lle c tiv e bargaining System and a code o f in dustrial re la tion s practices have developed within the TVA, providing an in fo r mative example o f labor-management relation s in a government-owned power company. 3:10 6 An act o f Congress in 1933 created the TVA to develop the Tennessee River, con trol flo o d s , and produce h yd roelectric power. The act prescribed that workers employed at TVA would be paid the prevailin g rates fo r sim ilar work in the area, with due regard to be given to rates determined through c o lle c tiv e bargaining. A l though the law did not s p e c ific a lly provide fo r p a rticip a tion by representatives o f the employees in the determination o f wages and working con dition s, the provisions have been interpreted as contem plating such an arrangement. The f i r s t written agreement between TVA and the Tennessee V alley Trades and Labor Council representing 15 international unions o f employees in the trades and labor c la s s ific a tio n s was adopted in 1940. A sim ilar agreement between TVA and the Salary P olicy Em ployee Panel representing 6 unions o f w h ite-colla r employees was signed a few years la te r. The written agreements provide fo r recog n itio n o f organizations representing a majority o f the workers in the cra ft o r group and, since 1951, have included a modified version o f union secu rity tfiich provides fo r preference to union members in h irin g or la y o ff. Union membership i s not required as a condition o f remaining on the jo b . The working agreement sets forth the procedural steps through which wages are negotiated. Prevailing wages paid by other employers in the v ic in it y are used as the basis fo r bargaining. The establishment o f the prevailin g wage involves a preliminary conference between union and management, a wage survey, and a sub sequent conference in which the accuracy o f the data obtained is assessed. Negotiations are then conducted on the basis o f the re spective labor and management interpretations o f the fig u re s. Job content and jo b c la s s ific a tio n problems are the re s p o n s ib ility o f the Joint C la ss ifica tio n Committee established in 1941. Any problems a risin g out o f c la s s ific a t io n issues remaining unsettled a fte r committee action are referred to the d ire cto r o f personnel o f the TVA and the president o f the TVA Trades and Labor Council. Perhaps the outstanding achievement in labor rela tion s at TVA has been in labor-management cooperation. In 1942, the Tennessee V alley Trades and Labor Council and TVA established a cooperative committee to help management and labor work together on matters o f mutual concern. Elimination o f waste, conservation o f m aterials, improvement in qu ality o f workmanship, promotion and tra in in g, sa fety , health, and correction o f conditions leading to grievances have been the o b je cts o f the committee's attention. A Central Joint 3:10 7 Cooperative Committee coordinates a c t iv it ie s o f the subcommittees organized at major construction p ro je cts . The extensive committee program at TVA i s credited with producing a team s p ir it between labor and management which is essen tial to the public purposes fo r udiich TVA was established. 3:10 3:11 The Local Transit Industry The lo c a l transit industry provides in tra city transporta tion fo r passengers via public vehicles operating on established schedules. Though fa cin g a shrinking demand fo r th eir serv ices, lo c a l tran sit systems carry more passengers (around 9.2 b illio n riders in 1956) than any other public c a r rie r. In the United States, a company o ffe rin g urban transportation may be either p u b licly or privately owned. In some c i t i e s , both types operate, though on separate routes. Urban transportation is a public u t i l i t y and is subject to regulation in the public in te re st. A request fo r increased fares frequently coincides with or follow s negotiated wage increases; i f c o lle c tiv e bargaining procedures break down, service may be d is rupted. In eith er case, the general public holds an immediate and d irect in terest in transit labor-management rela tion s. Two labor organizations represent the majority o f workers in the industry. The Amalgamated A ssociation o f S treet, E le ctric Railway and Motor Coach Employes o f America has been in existence fo r more than 60 years and includes within it s membership workers in both large and small communities. The Transport Workers Union o f America, approximately 20 years o ld , has i t s major strength in New York City and Philadelphia; i t also represents workers in some smaller c i t i e s . Both unions are a ffilia t e d with the APL-CIO. The Industry Local or in tra city transportation, frequently referred to as urban tra n s it, is provided by motorbus, stre e tca r, e le c t r ic t r o lle y , and elevated railway and subway systems operating on a regular schedule. Almost 1,500 separate operating companies, rep resenting a gross investment o f approximately $3.8 b i l l i o n , pro vided transportation to urban communities in the United States in 1955. 1 / A sin gle company may include one or more types o f serv ice. Motorbus operations are the most common; almost 95 percent o f the operating companies provided motorbus service exclu sively in 1955. Multiple and integrated services are usually found in the larger c it ie s . Urban transportation systems are eith er p u b licly or p r i vately owned and operated; in some c i t i e s , p u b licly b u ilt and owned systems are p riv a tely operated. P rivately owned systems function 1 / American Transit A ssociation, Annual Report, Transit Pact Book. This fig u re excludes the companies operating only a few ve h icle s in small communities. ( 1) 2 under the provisions o f a municipal franchise. Municipal ownership is more common in larger communities. Of the 10 largest c it ie s in the country, 5 own and operate lo c a l transportation systems—New York C ity, Chicago, D etroit, Cleveland, and Boston. In Philadelphia, Los Angeles, Baltimore, St. Louis, and Washington, D. C ., p riva tely owned systems provide transportation se rv ice s. Both private and public systems may operate in the same c it y , serving d iffe re n t routes. For example, 10 p riv a tely owned buslines operate in the New York City area in addition to the p u b licly owned subways, elevated tra in s, and buslines that are operated by the City Transit Authority. At one time, the 3 New York C ity subway lin e s , build and owned by the c it y , were operated by separate managements, 2 private and 1 p u blic. The industry has been beset by many problems during the past few years. Both public and private systems have reported in creased operating costs, fewer rid e rs, and lower earnings. The number o f transportation rides per capita dropped from 312 in 1945 to 195 in 1950, and to 124 in 1955. The n ecessity o f serving ex panding suburban areas, where the payload is le s s , has been a com p lic a tin g fin a n cia l problem. Though le s s frequent service and higher fares have been approved by municipal au th orities, the anticipated increase in t o ta l revenue i s often not realized because o f the in creasing use o f private automobiles. How to continue to provide adequate, e f f ic i e n t urban transportation has become a major problem fo r many large metropolitan areas. Employment in the lo c a l tra n sit industry has declined s te a d ily since 1945, when the American Transit A ssociation reported 242,000 tra n sit workers employed by the public and p riva tely owned companies comprising th e ir membership. In 1956, member companies o f th is a ssociation employed 186,000 tra n sit workers. The work force i s prim arily male. Women generally perform c le r ic a l d u ties, although some drive buses or operate stre e tca rs. From two-thirds to three-fourths o f a l l tra n sit operating employees are veh icle operators. Maintenance men comprise the next most nu merous group. The Unions The Amalgamated A ssociation o f Street, E le c tr ic Railway and Motor Ooach Employes o f America (SESMCE), formerly a f f ili a t e d with the AFL, and the Transport Workers Union o f America (TWU), form erly with the CIO, represent the m ajority o f workers in the industry. Other unions representing transit workers include the Brotherhood 3:11 3 o f Railroad Trainmen; the International Brotherhood o f Teamsters, Chauffeurs, Warehousemen and Helpers o f America; and also the International A ssociation o f Machinists, whose members service and repair the equipment rather than operate v eh icles. Since it s fo m at ion in 1892, SERMCE has been the la rgest union organization in lo c a l transit and in in te r c ity or over-th eroad bus transportation. Representing workers in c it ie s from coast to coast, the union reported 144,000 members in 1956. Some o f the larger c it ie s in which tra n sit systems operate under c o lle c tiv e bar gaining agreements with SERMCE are: Chicago, Cleveland, Milwaukee, D etroit, C incinnati, B uffalo, Boston, Baltimore, Pittsburgh, Washington, D. C ., Atlanta, Newark, Dallas, St. Louis, Minneapolis, Los Angeles, and S eattle. The TWU was organized in 1933 by New York City tra n sit workers and a f f ili a t e d with the CIO in 1937. In 1937, TWU won c o lle c t iv e bargaining rights fo r subway workers in New York C ity; in 1944, the union negotiated i t s f i r s t agreement with the P h iladephia tra n sit system. These two c it ie s are the source o f TWU’ s major strength in the lo c a l tran sit f i e l d ; however, agreements are also in force in a number o f scattered communities, including Akron and Houston. TWU also has membership in a ir lin e s , railroad shops, u n iv ersities (maintenance employees), and other in dustries, mainly in New York and Pennsylvania communities. In 1956, the union re ported a membership o f 130,000. C ollectiv e Bargaining C ollectiv e bargaining normally occurs between a lo c a l union and the private company, or in some communities between the union and the public authority operating the transportation system. Negotiations may cover a l l lo c a l tra n sit workers in the c it y , as a sin gle operating company frequently holds the franchise to serve the entire m unicipality. Employees o f municipally owned transportation systems are apt to be included under the c i v i l service regulations o f the munici p a lity in which they are employed. Some p u b licly operated systems may negotiate and sign c o lle c tiv e agreements with labor organiza tio n s ; others recognize and negotiate with a union and incorporate mutually acceptable rules and working conditions in to a memorandum o f understanding, but do not execute a formal c o lle c tiv e bargaining agreement; some p u b licly operated systems are expressly forbidden by law to sign an agreement with any labor organization. The agree ment negotiated in 1954 between the TWU and the New York Transit Authority marked the culmination o f a 14-year struggle fo r union 3:11 4 recognition and the w ritten agreement. The Transit Authority and it s predecessor, the Board o f Transportation, had maintained they did not have authority to recognize and negotiate with the union. Local unions o f the SERMCE generally negotiate th eir own agreements, but they frequently draw upon the national organization fo r assistance and leg a l counsel. The SERMCE maintains a f i e l d s t a f f o f elected vice presidents and executive board members whose duties include assistin g lo c a l d iv ision s whenever necessary. Upon request, these o f f i c i a l s provide assistance in handling grievances, negotiating new contracts, or in other matters where th eir experi ence and point o f view are valuable. In the TWU, the executive board guides a l l c o lle c t iv e bargaining p o lic y ; i t s permission is necessary fo r a l l negotiations, conferences, or strikes-. Because the TWU has it s major strength in large urban areas, individual lo c a ls are broken down into smaller groups. For example, Local 100 in New York C ity, with membership in both public and private operations, is divided into branches uniting the workers o f each employer; these branches in turn are divided in to sections to unite workers by c r a ft , trade, or department. Bargaining generally occurs on a lo c a l area b a sis, but in te r c ity comparisons o f rates o f pay and working conditions are common. These comparisons generally are made between c it ie s o f comparable s iz e . The need fo r municipal authorization o f fare changes is an important element in c o lle c tiv e bargaining. During wage negotiation s, unions in the transit industry have generally taken the p o sitio n that a b ilit y to pay is prim arily a management problem. They maintain that transit wage rates must keep pace with those o f other workers in the community, otherwise tra n sit employees, in e f f e c t , would be subsidizing low cost- transportation to the p u b lic. Although the unions have resisted tying wage negotiations to fare increases, they have on occasions supported management in public hearings before regulatory commissions. Marked reliance upon arbitration as a means o f resolving disputes is a feature o f c o lle c tiv e bargaining in the transit indus try . The SERMCE con stitu tion stresses the p rin cip le o f arbitration and requires the lo c a l union, upon pain o f fo r fe itu r e o f strik e b en efits, to o ffe r to arbitrate before strik in g . Charters or o r d i nances governing municipally operated systems frequently sp ecify certain c o lle c t iv e bargaining procedures and provide fo r a rbitration to s e t t le a l l unresolved disputes, including those arisin g over the terms o f a new con tract. 3:11 5 Recently, some p riva tely owned tra n sit systems have shown less w illingness to arbitrate the terms o f new agreements and, on occasion, tra n sit f a c i l i t i e s have been made id le because o f work stoppages. Though disrupting se rv ice , these stoppages are probably less serious in lo c a l transportation than in other public u t i l i t i e s since the private automobile provides a substitute s e rv ice . Though sometimes seriou sly inconveniencing the p u b lic, urban tra n sit work stoppages have generally been allowed to run th eir course, fre e from government intervention. Agreement Provisions Wagfes and Hours. —A Bureau o f Labor S ta tis t ic s survey o f union wage sca les of’’ lo c a l transit operating employees in a l l c it ie s o f 100,000 or more population, as o f July 1, 1956, found that most union contracts covering lo c a l tra n sit operating employees estab lish ed hourly pay scales on a graduated basis according to length o f se rv ice . An entrance o r sta rtin g rate, one or more intermediate rates, and a maximum or top rate were usually provided. In about fo u r -fift h s o f the c it ie s studied, the entrance rate applied to the f i r s t 3 or 6 months* employment. The maximum or top rate was usu a lly reached a fte r 1 y ea r's s e rv ice . Length o f service was not a determining fa c to r in a few c it ie s as only a sin gle rate was sp e ci fie d in the agreement. Entrance o r sta rtin g rates fo r 1-man car and bus operators varied from $1.35 an hour in C harlotte, N. C., and L ittle Rock, Ark., to $2.12 in S ea ttle, Wash. Maximum scales fo r these operators varied from $1.45 in Charlotte to $2.24 fo r multiunit car operators in Boston. The average union scale f o r operating employees was $1.99 an hour. The average rates varied from $2.18 in S ea ttle, Wash., to $1.45 an hour in C harlotte. The le v e l o f rates tended to vary with the s iz e o f the community, although averages d iffe r e d widely within each population group. T y p ica lly , the standard workweek was 40 hours, though some c i t i e s reported longer workweeks, a few reporting as many as 54 hours as the regular workweek. Among 1-man vehicle operators, about 1 out o f 10 worked a 48-hour week; about 3 out o f 10 motormen and conductors on 2-man cars worked a 48-hour week. Premium overtime rates were paid fo r hours in excess o f the regular workweek. The nature o f tra n sit service requires that some operators work s p lit s h ifts in order to accommodate rush hour t r a f f i c . In most agree ments, premium rates apply when the spread (t o t a l time span in volved in a s p lit s h ift ) exceeds a s p e c ifie d number o f hours. 3:11 6 A related p rovision frequently found s p e c ifie s the number o f straight runs (runs completed in a s p e c ifie d number o f consecutive hours) a company must schedule, expressed as a percentage o f the t o ta l number o f runs scheduled. Provisions f o r c o s t -o f -liv in g adjustments, based upon the Bureau o f Labor S ta tistics* Consumer Price Index, are now found in many agreements. In those communities fo r which the BLS compiles separate p rice s t a t i s t ic s , the lo c a l CPI is often used as a basis f o r wage changes. Quarterly adjustments are generally provided. Related Wage P ractices. —The tra n sit industry was one o f the f i r s t to provide vacations with pay to hourly paid employees. As early as 1937, almost 70 percent o f the employees in e le c t r ic railroad and motorbus operations were included under paid vacation plans. Currently, vacations range from 1 to 4 weeks, depending upon length o f s e rv ic e . The introduction o f pay f o r holidays not worked and premium pay fo r work performed on holidays met with employer resistance in the urban tra n sit industry because o f the need f o r continuous operations. However, from 5 to 10 paid holidays, plus, in some cases, premium pay f o r work performed on these days, are provided f o r in many current agreements. Paid sick leave, an early o b je ctiv e o f the union, has been achieved in several systems. According to the BLS survey, pension plans are in e ff e c t in companies employing more than 90 percent o f the workers studied. Health and insurance provisions covered 87 percent o f a l l workers. Contributory plans, i . e . , plans jo in t ly financed by workers and th eir employers, covered 80 percent o f the employees included wider health and insurance programs and 60 percent o f those covered by pension plans. Onion S ecu rity. — In the p riv a tely owned se cto r o f the in dustry, except in those States with right-to-w ork laws, the union shop p rev a ils. Union secu rity provisions are included in some agreements negotiated by p u b licly owned and operated systems. For example, in Boston and Chicago, where p u b licly owned systems operate, maintenance-of-membership clauses are in e f f e c t . The ch eck off, a p ra ctice whereby the employer withholds union dues from the workers* earnings and remits th is sum to the union, i s an accepted p ractice throughout most o f the tra n sit indus try ; the exceptions usually are municipally operated systems. Job S ecurity. —With r e la tiv e ly stable employment, tra n sit systems t y p ic a lly have a large group o f employees with many years o f s e rv ice . Thus, sen iority tends to have considerable importance. 3:11 7 Among veh icle operators, promotion p o s s ib ilit ie s are generally lim ited, hence the se n io rity p rin cip le is applied more frequently to job assignment and schedule changes. For example, jobs sim ilar in character but d iffe r in g substan tially in d e ta il may be open fo r bid on a s t r ic t s e n io rity b a sis. Among maintenance employees, where a promotion sequence may e x is t , the se n io rity p rin cip le is frequently modified by the n ecessity o f demonstrating a b ilit y to perform the task. Layoffs a ffe c tin g eith er group are generally made on the basis o f straight s e n io rity . Agreements often include provisions which guarantee operators a minimum number o f hours per day or minimum earnings per pay period . Transit workers thus have some protection against part-time earnings, frequently a consequence o f peak hour service and s p li t - s h if t operation. Administration o f Agreements Grievance procedures are an important part o f the d a y-today administration o f contracts in lo c a l tra n sit companies, both p u b licly and p riva tely owned. Established grievance procedures vary from system to system. However, nearly every agreement provides fo r arb itra tion o f unresolved disputes. The agreement with the New York City Transit Authority, f o r example, provides that a grievance must be processed through a fiv e -s t e p procedure before i t may go to a rb itra tion . The employee, personally o r through h is representative, must f i r s t present h is complaint, eith e r o r a lly or in w riting, to h is foreman o r immediate supervisor. I f the foreman's decision i s unacceptable, the employee or h is representative may appeal, in successive order, to the super intendent o f the d iv is io n , the head o f the department, the general superintendent, and to a committee o f o ff ic e r s o f the Transit Au th o r ity . Time lim itation s must be observed in moving from one step to another. A fter step 5, an unresolved grievance may be f i l e d with the im partial advisor, who w ill hold a hearing and hand down a de c is io n . The d ecision or recommendation o f the im partial advisor was not fin a l or binding u n til recen tly. In August 19S6, TWU and the Transit Authority amended the agreement to provide fo r fin a l and binding a rb itra tion on disputes a risin g from in terpretation o f rules and regulations. 3:11 3:12 The Maritime Industry The United States merchant marine engaged in deep-sea shipping today transports less than a th ird o f the to ta l import and export trade o f the country. Because an active merchant marine is essen tia l to the national w elfare. Government subsidy payments are allowed which enable United States shipowners, operating on essen tial sea routes, to compete with foreign v e sse ls. Although only a part o f the merchant marine is subsidized, these payments have increased considerably during the past several years. Sub sid ized shipowners are fin din g th eir costs and operation subject to increased Government scrutiny, although a p o lic y o f Governmental noninterference in c o lle c t iv e bargaining p rev a ils. Though union organization dates from the la te 19th cen tury, organized seamen have been an increasingly e ffe c t iv e fo rce in the American shipping industry as a whole during the past two decades. The larger and more powerful seafaring unions are the unlicensed seamen's organizations, the Seafarers' International Union (form erly AFL) and the National Maritime Union (form erly CIO). These organizations have secured substan tially higher wages, shorter hours, and improved working conditions fo r th eir membership in a r e la tiv e ly short span o f time. The licensed o f f i c e r s ' unions have also made substantial gains. Crowded and unsanitary liv in g conditions, low wages, and e rra tic income—ch a ra cteristic o f the l i f e o f an American seaman 25 years ago—have la rg ely disappeared. Most o f the changes were achieved through c o lle c tiv e bargaining. The Maritime Industry The merchant marine can be divided in to three segments, according to type and place o f operations: Oceanborne, Great Lakes, and inland waterways shipping. Oceangoing passenger-cargo v e sse ls, fre ig h te rs , and tankers constitu te the major part o f the merchant marine. Great Lakes shipping i s prim arily composed o f bulk fr e ig h t. Towed barges and tankers predominate on the inland water routes. Lake and inland shipping provide important links in the transporta tio n system but account f o r a r e la tiv e ly small part o f the merchant f l e e t . This chapter is lim ited prim arily to the oceanborne shipping industry. The American merchant marine occupies a status somewhere between the m ilitary and the c iv ilia n sectors o f the economy. The c r i t i c a l role o f the merchant marine during periods o f national emergency underlies much o f the Federal le g is la tio n a ffe c tin g ship ping and seamen. ( 1) 2 American deep-sea shipping has undergone frequent and rapid expansion and contraction . During World War I I . deep-sea shipping increased by more than fou r times over the prewar le v e l; by 1950. i t had contracted to a volume s lig h t ly above the prewar le v e l. The Korean c o n flic t required renewed expansion, again f o l lowed by a drop in shipping volume in subsequent years, with the cessation o f h o s t i l i t i e s . Most seagoing vessels fly in g the American fla g are p r i v a tely owned and operated. As o f March 31, 1957, 710 o f 861 dry cargo ships in service were owned by 134 private steamship compa n ies; the other 151 were Government-owned ships operated by private companies, 145 o f which were bare-boat chartered and 6 were under general agency agreement fo r m ilitary d ire c tio n . Steamship companies vary in s iz e ; 11 leading companies, each owning 15 or more sh ips, owned a t o ta l o f 334 ships while 78 smaller concerns owned 109 seagping ships. Three hundred and t h ir t y -s ix tankers bring the a ctive oceanborne f l e e t to over 1,000 v e sse ls. More than twice th is number are lis t e d under the in active maring administration reserve. Ap proximately 380 American-owned vessels were registered under f o r eign fla g s on March 31, 1957, 80 o f which were dry cargo and 295 were tankers; these vessels are not subject to American wage, sa fe ty , and insurance standards. Tankers owned by large o i l companies accounted fo r the greater part o f th is group. Neither these nor the ships operated by the M ilitary Sea Transportation Service in transporting troops and m ilita ry supplies are considered part o f the merchant fle e t. 1/ Increased com petition from foreign shipping is one o f the serious problems fa cin g the American merchant marine. American shipping carried 60 percent o f a l l United States imports and exports at the clo s e o f World War I I , but dropped to le ss than 25 percent in 1956. This d eclin e has been accompanied by a substantial drop in employment--from 165,000 seagoing jobs in 1946 to 60,000 in 1957. As early as 1936, recognition o f the d ifferen ces in operating and construction costs between American and foreign-owned vessels led to the passage o f the Merchant Marine Act o f that year. This law provides d irect subsidies to ship operators engaging in foreig n trade on essen tia l sea routes. In 1957, some 14 companies operating 300 ships were e lig ib le fo r subsidy payments. The t o t a l cost o f the operating d iffe r e n t ia l subsidy reached about $100 m illion in 1954 when 280 ships were included. Items subsidized included wages, subsistence, maintenance and repairs, and insurance. 1 / A system under which ships are leased to private companies f o r o u tfittin g and operation. 3:12 3 Since 1953, le g is la tio n known as the ” 50-50 rule” has bolstered American shipping volume. This law requires that at lea st 50 percent o f Government-financed cargoes to fo re ig n countries be shipped in American v e sse ls. The Unions Several strong active unions today represent v ir tu a lly a l l licensed and unlicensed seamen s a ilin g on American v e sse ls. The major unions representing unlicensed offsh ore personnel are the Sea farers' International Union (SIU) and the National Maritime Union (NMU). The SIU was chartered by the American Federation o f Labor and the NMU by the Congress o f Industrial Organizations; both unions are now a f filia t e d with the AFL-CIO. The Seafarers’ International Union, which claimed about 75,000 members in 1956, is the dominant seagoing union on the West Coast. It has several a f filia t e d unions, including: The Sailors* Union o f the P a c ific (SUP), which has been in continuous existence sin ce 1885; the P a c ific Coast Marine Firemen, O ile rs , Watertenders, and Wipers A ssociation; and the A tlan tic and Gulf, Great Lakes, and Canadian D is t r ic t s . The SIU also has membership among fishermen and in fis h canneries. The Sailors* Union o f the P a c ific , the c h ie f a f f i l i a t e o f the SIU, was instrumental in the formation o f the International Seamen*s Union, chartered by the AFL in 1892. The ISU reached the peak o f it s influence during World War I , but suffered a sharp declin e th ereafter, accelerated by internal dissension. With the d issolu tio n o f the ISU in 1938, the Sailors* Union o f the P a c ific , which had separated from the ISU in 1921, rejoined the AFL and was re sponsible f o r the formation o f the Seafarers International Union in 1938. The National Maritime Union was created by dissident mem bers o f the fa ilin g International Seamen*s Union on the East Coast and became an a f f i l i a t e o f the CIO in 1937. Once plagued by Commu n ist in filt r a t io n , the NMU has su ccessfu lly removed the leftw ing dominated s e ctio n from co n tro l. In 1956, i t claimed 40,000 members. Its membership includes unlicensed personnel in deck, engine, and steward departments o f seagoing vessels and some workers on the Great Lakes and inland water routes. A m ajority o f the vessels s a ilin g out o f East and Gulf Coast ports are covered by contracts negotiated between the U. S. fla g operating companies and the NMU. In an e ffo r t to further the common o b je ctiv e s o f i t s a f f ili a t e s , the AFL established a Maritime Trades Department in 1945. 3:12 4 The merger o f the AFL-CIO has brought the frequently competing maritime unions within a sin gle fed era tion , although the former CIO maritime unions have not, as o f mid-1957, joined the Maritime Trades Department. Licensed seamen are represented by the Masters, Mates and P ilo ts (MMP); the Brotherhood o f Marine Bngineers (BME), a f filia t e d with the SIU; the National Marine Bngineers B en eficial A ssociation (MEBA); and the Brotherhood o f Marine O ffic e rs (BMO). Ship radio operators, c la s s ifie d in the o f f i c e r group, are also represented by two organizations, the American Radio A ssociation (ARA) and the Radio O ffic e r s ' Union (ROU). These organizations are now a f fili a t e d with the AFL-CIO. C ollectiv e Bargaining Structure Multiemployer bargaining is the predominant form o f bar gaining in the maritime industry. On the Bast Coast, major nego tia tio n s are carried on between committees o f two employer groups representing owners o f dry cargo vessels and the maritime unions. The American Merchant Marine In stitu te represents approximately 65 Eastern shipping companies in negotiations, but has no authority to sign f o r i t s members; each company executes i t s own contract a fte r a uniform agreement has been reached. A committee bargains with the NMU f o r unlicensed personnel; another committee negotiates with the MEBA and the MMP f o r licen sed o f f ic e r s ; and a third committee bargains fo r radio operators with the ARA and the ROU. Another em ployer organization known as the Informal A tlan tic and Gulf Group bargains fo r companies having contracts with the SIU. Negotiations take place on an informal basis u n til a sa tis fa cto ry settlement is reached, a fte r which each company concludes a separate agreement with the SIU. On the West Coast, one dry cargo and passenger employer organization, the P a c ific Maritime A ssociation, negotiates with offsh ore unions (and with stevedoring and terminal labor groups as w ell) and executes the agreements fo r it s members. Negotiations occur on a serv ice and area b a sis, resulting in separate sets o f working rules fo r ships engaged in Alaskan, coastw ise, and offsh ore trade. On the Bast Coast, fiv e tanker companies negotiate through an informal group but execute individual agreements. West Coast tanker operators negotiate and sign separate agreements. In addi tio n , several leading tanker companies on the East Coast negotiate exclu sively with independent unions representing offsh ore seagoing personnel on th eir v essels. 3:12 5 Agreement Provisions Wages and Hours. —An outstanding ch a ra cte ristic o f the industry*s wage structure is the fa c t that the basic wage repre sents only part o f the seamen*s take-home pay. Additional payments fo r assuming extra work or re sp o n sib ility amounted to as much as 50 percent o f the basic wages paid unlicensed seamen on American ships in 1956. These include overtime allowances, weekend pay, and s o -c a lle d penalty rates fo r d ir ty work. The basic wage is quoted, cm a monthly b a sis. There has been a rapid r is e in basic wage rates and earnings o f maritime labor since 1937 when an able seaman received $72.50 per month. In 1957, fo r example, able-bodied seamen shipping out o f Bast and Gulf Coast ports received $333.27 per month base pay, plus the additional payments mentioned above. Basic monthly rates e ffe c t iv e in 1956 f o r licensed engine department personnel on both coasts ranged from $993.21 f o r the Chief Bngineer to $546.37 fo r his th ird assistan t. These rates include s k i l l and re sp o n sib ility d iffe r e n tia ls which vary with the power and tonnage c la s s ific a tio n o f the v essel. Premium rates, almost universal in offsh ore operations, are generally quoted on a cents-per-hour b a sis. A dual premium rate structure e x is ts . One rate, frequently termed "pen alty,” per tains to certain types o f work performed during the regular working day; another, the overtime rate, applies to additional hours. A l though the 40-hour, Monday through Friday week has been considered the base workweek since about 1951, 56 hours represent the actual offsh ore workweek f o r a l l watchstanders. D ifferent overtime rates may be paid f o r midweek and weekend watches. The 1955 SIU wage settlement on the West Coast took in to consideration the 56-hour week fo r watchstanders at sea and established a new base pay schedule which included overtime and penalty earnings in an attempt to sim plify the wage structure. The rate fo r able seamen was set at $423. The manning s c a le , an important part o f the agreements, s p e c ifie s the personnel required f o r a f u l l crew. Some agreements provide that in the event a vessel s a ils without it s f u l l crew o f unlicensed seamen owing to the fa u lt o f the company, the wage equiv alents o f the u n fille d jo b or jobs are to be divided among the other crew members o f the department. Supplementary B enefits. —Agreements with the major unions representing unlicensed seamen include 9 paid holidays and paid va cations from 2 to 8 weeks. A recent development provides fo r a pooled vacation plan under which cash allowances fo r time worked fo r 3:12 6 separate employers is accumulated into one fund. Under th is system, which has now been generally accepted, seamen can change jobs with out s a c r ific in g vacation righ ts, but those employed by one operator f o r a year receive more vacation. Most American seamen are included under negotiated pension and welfare plans. Though provisions o f p a rticu lar plans vary, in general they are employer financed and include retirement b e n e fits , d is a b ilit y payments, and l i f e insurance; in addition , they provide su rgical and hospital ben efits to dependents. T ra d ition a lly, mer chant seamen have been provided with h osp ita liza tio n and medical care in marine h ospitals operated by the United States Public Health S ervice. Job S ecu rity.--Seamen are "signed on” on a voyage b a sis. The shapeup on the dock, Whereby men were required to lin e up so that a shipping master could choose among available workers, is a tiling o f the past. Hiring in th is fashion has been replaced by the hiring h a ll, an o f f i c e maintained by the union through which workers are referred to jo b s , usually on a rotation b a s is ; i . e . , "the man longest on the beach has f i r s t chance at the jo b ." F irst established by the SUP in San Francisco in 1886, lo s t during the 1920*s and re established in 1934, the hiring h a ll is regarded as a mainstay o f the maritime unions. An employment secu rity plan was in itia te d in the June 1955 contracts between the NMU and the operators o f passenger ships, fr e ig h te r s , tankers, and c o l l i e r s , providing fo r employer contribu tions o f 25 cents per man-day. Payments from th is fund w ill sup plement the Federal s o c ia l secu rity program and provide additional unemployment insurance fo r seamen, the amount to be worked out jo in t ly by union and shipowners. Union S ecurity. —'Through the h irin g h a ll,th e unions were able to maintain the type o f secu rity associated with the closed shop, where only union members were employed. Since th is is no longer le g a l, i t has been replaced by the union shop Whereby non union men may be hired, but once hired must jo in the organization within a s p e c ifie d period. A 1954 NLRB New York Regional O ffic e ruling requires that nonunion seamen are to be provided use o f the h irin g h a ll in that area. The agreement between the Sailors* Union o f the P a c ific and steamship companies in the offsh ore and in tercoasta l trade con tains the follow in g p referen tia l hirin g clause: 3:12 7 The Employers agree in the hiring o f em ployees in the c la s s ific a tio n s covered by th is agreement to p refer applicants who have pre viou sly been employed in the deck department on vessels o f one or more o f the companies signa tory to th is Agreement or on vessels o f other P a c ific Coast steamship companies. Employees with 3 years or more o f such p rior employment sh a ll have preference over employees with less than 3 years employment. The Union agrees that in furnishing deck personnel to employers through the f a c i l i t i e s o f it s employment o f f ic e s i t w ill recognize such preference and furnish seamen to the employers with due regard thereto and to the competency and dependability o f the employees furnished. When Ordinary Seamen with p rior experience are not a v aila ble, the Union w ill in dispatching seamen p refer graduates o f the Andrew Furuseth Training School. When an employer re je cts men furnished who are considered unsuitable and un satisfactory, the employer sh a ll furnish a statement in writing to the Union sta tin g the reason fo r the re je ctio n and the Union may thereupon re fe r tht matter to the Port Committee and the Port Committee sh a ll then hear the case. H is to r ic a lly , the ch eck off, a practice whereby the em ployer retains union dues from employees wages fo r transfer to the union, has not been common in the industry. However, a 1953 amend ment to the NMU agreements provides fo r the checkoff and payment o f union dues from the member's accumulated vacation fund. Working Rules.--S ea fa rin g , a strenuous and hazardous way o f l i f e , denies to seamen a normal home and fam ily environment. The unions have thus in sisted upon provisions in the contract to assure s a ilo r s decent and comfortable quarters, good food , and recreation f a c i l i t i e s . Rules covering working conditions are some times elaborately d e ta iled , even to specifyin g the brands o f soap acceptable f o r the crew 's quarters. Health and safety provision s, detailed job d escrip tion s, itemized overtime d u ties, essen tial equipment l i s t s , and sim ilar matters are sp e cifie d in the working agreements. Administration o f the Agreement; —A great deal o f emphasis has been placed upon providing ju st and equitable procedures through 3:12 8 which disputes aboard ship can be resolved. Ship committees com posed o f members from each department provide a forum within which grievances may be aired and processed. It is the re sp o n sib ility o f the ship committee to see that conditions o f the agreement are en forced when the ship i s at sea. Under the NMU agreement, a depart ment delegate i s appointed to handle grievances a risin g on board sh ip . I f unresolved at sea, these may be s e ttle d at any 1 o f 4 stages: (1 ) They go before the port patrolman (a union represen ta tiv e ) at the f i r s t union p o r t -o f-c a l l; (2 ) i f he f a i l s to secure a s a tis fa cto ry settlem ent, a w ritten report and recommendations are submitted to the national port committee; (3 ) th is committee reviews the case and may take i t to top company o f f i c i a l s ; and (4 ) a griev ance unsettled at th is stage is referred to the national union and may then be placed before the Disputes Board, a permanent arb itra tio n panel, f o r fin a l settlem ent. The SUP agreements with P a c ific Coast shipowners provide fo r a 4-member Port Committee con sistin g o f 2 union representatives and 2 from the operators. This committee handles grievances not resolved aboard ship. I f i t f a i l s to s e tt le the issu e, the dispute could then be taken before a mutually agreed upon referee f o r a fin a l d e cis io n . The SUP reports that most cases are s e ttle d between the port representative and union delegate and seldom reach higher le v e ls o f the grievance procedure. 3:12 3:13 Nonferrous Metals Mining The mining and i n i t i a l processing o f nonferrous metals such as copper, lead, and zinc i s a r e la tiv e ly small but highly important industry, p a rticu la rly in terms o f national defense. The industry is la rgely concentrated in the western part o f the United States, remote from the major centers o f population and industry. The s tra te g ic importance o f the industry and i t s geographical is o la tion are among the fa cto r s which have influenced i t s la bormanagement rela tion s. Although the vast m ajority o f mines now operate under the terms o f union agreements, many d i f f ic u l t i e s have attended the de velopment o f c o lle c t iv e bargaining. These d i f f ic u l t i e s have by no means been elim inated. The predominant union in the industry, under the influence o f sy n d ica list id eas, rejected c o lle c t iv e bargaining in i t s early days; la te r , it s p o sitio n in the industry and in the American labor movement was seriou sly impaired by decades o f leader ship disputes and id e o lo g ica l c o n flic t s . Other fa cto r s contributing to the in s ta b ility o f labor-management relation s were long-continuing employer opposition to unionism, the economic problems o f the in dustry, and riv a l unionism. Although sim ilar obstacles to the de velopment o f sound c o lle c t iv e bargaining relationships were over come in other in du stries, the continuation during the past decade o f internal and external union controversy (sparked by a Communistdominated leadership) has kept the nonferrous miners* union in legal d i f f ic u l t i e s and isola ted from the mainstream o f the labor movement. Nonferrous Metals Industry Nonferrous metals production involves separate but c lo s e ly in terrelated industries which mine and process copper, lead, zin c, gold, s ilv e r , and other metals not containing iron . The nature o f nonferrous metal deposits and the sim ila rity o f the processes neces sary to refin e these metals account fo r the overlap and in terrela tionship o f the in dustries. Ore deposits generally contain more than one metal; lead, z in c, and s ilv e r are frequently found together and also occur with copper d ep osits. Mining, m illin g, concentrating, smelting, and refin in g are essen tia l processes fo r a l l nonferrous metals. Bach o f these func tions may be performed by separate companies or by a sin gle in te grated company that may carry the process through to the manufacture o f fin ish ed products. In general, in du strial concentration increases as the production process moves forward. There are hundreds o f mines in operation, a smaller number o f sm elters, and s t i l l fewer r e fin e r ie s , ( 1) 2 the la tte r generally owned by large concerns. In the copper indus tr y , three firm s—the Anaconda C o., Kennecott Copper C orp., and the Phelps Dodge Corp.— con trol almost 85 percent o f copper ore re sources. These three and the American Smelting and Refining Corp., a custom smelter and refin ery, are known as the ’’Big Four’* o f the copper industry. Lead production i s also concentrated in a few large companies, but hundreds o f small mines are in operation. Because resmelting and refin in g scrap (secondary metal) i s less c o s tly than extractin g v irg in metal from o r e , scrap has accounted fo r at least h a lf the lead production in recent years. Zinc production is less concentrated in ownership and le ss in te grated fu n ction a lly than eith er copper or lead. Although mining and i n i t i a l processing o f major metals are la rgely concentrated in the western part o f the United S tates, refin eries are located near the metal fa b rica tin g industry. Almost 70 percent o f the copper refin in g capacity is on the A tlan tic Coast, close to the concentration o f fa b rica tin g plants in Connecticut. The labor fo r c e engaged in mining and i n i t i a l l y process ing copper, lead, and zinc i s estimated to be less than h a lf as large as i t was 50 years ago. In A pril 1957, copper, lead, and zinc mines employed a t o t a l o f 44,000 production workers. With modern machinery and methods, these men produced almost twice the output o f the e a r lie r period. The Unions Unionism among metal or hard-rock miners has had a long and turbulent h is to ry , marked by id e o lo g ic a l controversies Wiich were eith er absent o r more subdued in other unions. The f i r s t major organization— the Western Federation o f Miners—was formed in 1893, although lo c a l organizations were in existence at lea st 30 years before that tim e. From i t s inception, the WFM was dominated by m ilitant s o c ia lis t influences which set i t apart from the mainstream o f the American labor movement and created c o n flic t within the o r ganization and between the union and other labor groups. The WFM was instrumental in organizing the Industrial Workers o f the World (IWW) and was a f f ili a t e d with that organization between 1905 and 1908. In 1911, under the sponsorship o f the United Mine Workers, the WFM join ed the American Federation o f Labor. In 1916, the name o f the union was changed to the International Union o f Mine, M ill and Smelter Workers, more popularly known as Mine M ill or MM5W. Internal f r ic t i o n and lo ss o f bargaining rights at the Anaconda mines in Butte, Mont., brought about v irtu a l d isin tegration 3:13 3 o f the union during the 1920*s. By 1933, the union had only 1,500 members. The general reviva l o f trade unionism beginning in 1933 brought membership gains to the union, but the union again was thrown in to b itt e r leadership con troversies. As the leftw ing group secured greater working co n tro l, the opposition became weaker. The MMSW became a charter member o f the Congress o f Industrial Organizations and remained with that Federation u n til 1950, when i t was expelled on charges o f Communist domination. Both p rior to and a fter the expulsion, several lo c a ls seceded from the MMSW to jo in other national unions. Since 1950, MMSW has been u n a ffilia te d . At the peak o f it s strength, the MMSW claimed more than 100,000 members, including a substantial number in Canada, in mining, fa b rica tin g , and related a c t iv it ie s . At the time o f it s expulsion from the CIO, i t had approximately 90,000 members, o f whom 25,000 were in Canada. In 1956, the union claimed 100,000 members; however, some observers believe that present membership is su bstan tially below that le v e l. Nonetheless, MMSW remains the pre dominant union in nonferrous metals mining. With the expulsion o f the MMSW from the CIO, the United Steelworkers assumed ju r is d ic tio n fo r the CIO in the Western nonferrous metals industry. Although the Steelworkers bargain f o r only a small proportion o f the workers in the industry, i t remains a sig n ifica n t competitor to the MMSW on id e o lo g ica l grounds and a fo r c e to be reckoned with because o f i t s overa ll s iz e and strength. In addition, several cra ft unions form erly a f filia t e d with the AFL have f o r years represented a substantial number o f workers in Western mines and, in 1952, re v ita lize d a Nonferrous Metals Coun c i l to coordinate bargaining and organization. D is tr ict 50 o f the United Mine Workers also has some representation in the industry. C ollectiv e Bargaining Structure Contract negotiations generally take place between a lo c a l union or unions and the management o f a sin gle plant. Multi plant corporations seldom bargain on a companywide b a sis, although substan tially sim ilar agreements may be signed at each plant. One company may deal with several lo c a l unions, as when a company bar gains with c ra ft groups. In th is instance, the agreements may f o l low a basic pattern or a l l the lo c a ls may become parties to a sin gle agreement. One major copper producer negotiates with Mine M ill f o r a l l miners in one branch plant, with cra ft lo c a ls fo r workers in another, and with the United Steelworkers f o r the men employed in a 3:13 4 th ird operation. Another company negotiates with Nine M ill f o r a l l workers in an area except those covered by a cra ft agreement, which i s negotiated separately. Management generally does not look with fa v or on industry wide bargaining although Mine M ill has trie d to promote negotiation on a wider s c a le . Despite the predominance o f lo c a l bargaining, a settlement reached by one o f the major companies tends to in flu ence settlements negotiated by other companies. Agreement Provisions The Butte, Mont., mine o f the Anaconda C o., is one o f the c h ie f sources o f copper ore in the United S tates. The provisions o f the c o lle c t iv e bargaining agreement negotiated in June 1956 be tween the Anaconda Co. and the MMSW, Local Union No. 1, covering the Butte operation are summarized below. This agreement has a 3-year term. Wages and Hours. —The 8-hour day and the 40-hour week p revail in th is mine, as in the nonferrous mining industry generally. Premium pay at the rate o f time and o n e -h a lf i s paid f o r work in excess o f these hours, f o r work performed before o r a fte r regular working hours, and f o r a l l time spent underground which i s due to causes over which the employee has no con trol ( i . e . , mine a ccid e n ts). Time and on e-h alf fo r Sunday work as such is granted to a small cate gory o f employees. Employees scheduled to work the second o r third s h ift receive a s h ift d iffe r e n t ia l o f 5 cents and 10 cents an hour, resp ectiv ely , and those on an intermediate s h ift are paid a premium of cen ts. l\ The minimum d a ily compensation is 4 hours* pay at stra ig h ttime rates. The same minimum guarantee also holds f o r workers who report f o r work at th e ir regular sta rtin g time but are not given an opportunity to work. A d a ily rate o f $16.71 is paid to regular miners and crusher men. Laborers* helpers and watchmen, the lowest c la s s i fic a t io n , receive $15.32, and shaft miners, dispatchers, and under ground pipemen, $17.65. The d a ily sate applies to an 8-hour day, including tra vel time to and from the fa ce o f the mines. Many miners are paid on a contract (in ce n tiv e ) b a sis. The 3-year agree ment provides f o r automatic wage increases in July 1957 and July 1958. Supplementary B en efits. —The contract provides f o r 7 paid h olida ys, 1 o f which is the employee*s birthday anniversary. Work on these days is compensated fo r at double time. Vacations with pay 3 :13 increase with length o f service as fo llo w s : 1 week a fte r 1 year o f serv ice (with 5 or 6 days o f pay, depending on the weekly work schedule o f the employee), 2 weeks a fte r 5 years, 2 weeks' vacation and 2f weeks' pay a fte r 10 years, and 3 weeks a fte r 15 years o f service. The contract provides f o r jo in t ly financed h osp ita l and medical ben efits fo r employees and th e ir fa m ilie s, as w ell as a sickness and nonindustrial accident insurance plan f o r employees. Maximum payments under the la t t e r plan are set at $32.50 a week. A regular and d is a b ilit y retirement plan financed by the company is in e ffe c t fo r a l l employees. Union Security. —-A union shop clause requires that a l l new employees become members a fte r 30 days. Provision fo r the checkoff (th e c o lle c tio n o f union dues by the company fo r trans m ittal to the union) is also in the agreement. Job Security. —This agreement contains no sen iority pro vision s governing la y o ff or r e c a ll to work. A discharged employee, however, is en title d to a written statement giving the reasons f o r such a ction . He can, o f course, avail him self o f the grievance and arbitration procedure. Grievance Procedure. —Detailed provisions in the agreement outline the grievance procedure from the i n i t i a l step to fin a l settlem ent. A misunderstanding or'disagreement concerning any ru le, p ra ctice , or working condition which cannot be resolved between the aggrieved employee and his immediate supervisor may be s e ttle d by the worker—or h is representative—and the foreman or mine super intendent. Any grievances not se ttle d at th is step must be formal ized in w riting before moving to higher le v e ls o f union and manage ment authority. I f s t i l l unresolved a fte r a meeting o f union and company representatives, the dispute is fin a lly referred to an ar b itr a to r , whose d ecision is fin a l and binding. The expenses o f a rb itra tion , including the fe e s o f the a rb itra tor, are shared equally by the company and the union. The contract s p e c ific a lly provides that wage matters are not subject to a rb itra tion . S afety. —Matters relatin g to safe working conditions are the s p e cia l concern o f a jo in t committee, composed o f 2 management and 2 union representatives. The agreement also sets fo rth safety rules fo r blastin g during working hours. Should a work stoppage occur, the union agrees to permit certain employees to enter the mine fo r the so le purpose o f pro tectin g the property from damage or destruction. 3:13 3:14 Agriculture Because o f the nature o f farming and the preponderance o f fam ily farms, American agriculture does not have labor problems or labor-management relation s lik e those found in other American in d u stries. Less than one-fourth o f the to ta l farm labor fo r c e works fo r wages; farm operators and th e ir fam ilies supply the rest o f the work fo r c e . Of the almost 2 m illion workers who worked 25 days or more on a farm fo r wages in 1954, only h a lf reported farm wage work as th e ir c h ie f a c t iv it y . N ecessarily, nonfarm work provided supplementary or primary income to many farm laborers. The relationship between workers and employers in agri culture in the United States has been shaped in large part by the h istory o f th is Nation*s rural economic development. Farm fami lie s were the pioneers who s e ttle d the West during the 19th cen tury. With the exception o f the South, small land holdings (on efamily operations) ty p ifie d farming in th is country and are s t i l l predominant. However, the scene is changing. Owing to mechanization and improved techniques, farms are becoming larger. Machines have replaced many laborers previously employed at regular farm work. Unlike other major in dustries, the seasonal nature o f a gricu ltu ra l production requires a large supply o f transient and migratory la b or. Area sp e cia liz a tio n in p a rticu lar crops in te n s ifie s th is need. Trade unions have not gained many members in American agricu ltu re, not even in those areas where hired farm workers are used exten sively. Attempts at unionization have had l i t t l e success. Despite past fa ilu r e s , new attempts at organizing farm labor are being made. The National A gricultural Workers Union, the United Packinghouse Workers Union, the Amalgamated Meat Cutters, and the Teamsters ( a l l a f f ili a t e s o f the AFL-CIO) have organizers working in a gricu ltu ra l regions. At the same time, these unions are ac t iv e ly promoting le g is la tio n which they believe w ill improve wages and working conditions o f hired farm workers. Agriculture As An Industry A griculture, long considered not only an industry but a way o f l i f e , i s rapidly changing. Though the fam ily-type farm s t i l l predominates, increased mechanization has made many small farms unprofitable and has hastened the growth o f la rge-sca le farming. The U. S. Department o f Agriculture reported approximately ( 1) 600.000 fewer farms in 1954 than in 1950. Of the 5,400,000 farms in the United States in 1950, 3,700,000 were c la s s ifie d as commer c i a l operations. 1 / The t o t a l value o f farm output in 1956 was approximately $33.2 b i lli o n , s lig h t ly above the 1955 le v e l. Increased physical output marketed at lower p rice s , With production costs remaining firm , resulted in net income to farm operators about equal to that o f 1955. Since 1941, agricu ltu ra l output per man-hour has increased at an average rate o f 4.7 percent per year. Average to ta l farm employment, which was over 10 m illion in 1947, dropped a m illion by 1950, and another m illion by 1955. A further decline was registered in 1956. Farm operators and th e ir fam ilies accounted f o r over threefourths o f the a g ricu ltu ra l work fo r c e . Peak seasonal a c t iv it y re quires about 3 m illion hired workers f o r a b r ie f period o f time. Comparatively few farms employ labor regularly. Of the 2.300.000 farm units reporting hired labor in the 1950 census, only 460.000 paid $1,000 or more during 1949 in money wages (e x clu siv e o f room and board o r other perquisites where a p p lica b le ), and only 183.000 reported wage expenditures o f over $2,500. According to the report o f the P resident's Commission on Migratory Labor, 1951, less than o n e -fift h o f the hired farm workers secured steady employment-; among those regularly employed were foremen, tra cto r d riv e rs, and dairy farm workers. More than a fourth o f the hired farm workers are employed 2 months o r less per year. The seasonal nature o f the harvest and the s p e cia liz a tio n o f regions in the production o f cer tain crops require the migration o f a large number o f farm workers annually, a situ a tion which creates many d i f f i c u l t s o c ia l and eco nomic problems, not only fo r the migrant workers and th e ir fa m ilie s, but also f o r the farm communities. C haracteristics and Earnings o f the Hired Farm Work Force The varied types o f farming found in the United States make generalization d i f f i c u l t . Roughly, the hired work fo r c e may be c la s s ifie d as eith er regular or seasonal; seasonal workers may V U. S. Department o f Commerce, Bureau o f the Census. Com m ercial farms are defined as those Where the t o t a l value o f farm products sold equaled $1,200 or more, or farms where the t o ta l value o f farm products sold ranged between $250-$l,199, providing the farm operator worked o f f the farm le s s than 100 days and the value o f to ta l farm products so ld exceeded the income the farm operator and his fam ily received from other sources. Approximately 1,700,000 farms were part-tim e or residence units from which there was no s ig n ifica n t production f o r s a le . 3:14 3 be migratory or nonmigratory* Nonmigratory seasonal workers include housewives, school children, and persons otherwise employed d w do not depend upon harvest earnings f o r a liv e lih o o d . The tra d itio n a l hired hand—a regularly employed farm worker almost indistinguishable from a working farmer—is rapidly disappearing. Farmers in the upper Midwest and Great Plains regions have la rgely replaced labor with machinery. With modern equipment, one man engaged in small grain farming ( e . g . , Wheat, o a ts, e t c . ) can plow, plant, and harvest an acreage that form erly required several hired men. Areas employing the most hired labor are the South A tla n tic, South Central, and P a c ific S tates. In many southern S tates, share croppers (tenant farmers who operate small parcels o f land fo r a share o f the produce instead o f wages) account fo r a large part o f the a g ricu ltu ra l employment. Most hired farm labor i s needed in term ittently. Migra tory fa m ilies Whose p rin cip a l income i s earned from temporary farm employment and who, in the course o f a y ea r's work, move one or more times, o fte n through several S tates, supply a large part o f the seasonal labor needs o f a l l major farming areas. These workers, frequently c a lle d stoop labor, work in gangs or crews on routine tasks. The employment relation sh ip i s ty p ic a lly casual, hence neither employer nor worker has the opportunity to develop the form alized re sp o n s ib ility toward the other that may be found in other in d u stries. In 1951, the Presidents Commission on Migratory labor in American A griculture estimated the migratory farm work fo r c e at ap proximately 1 m illio n . At that time, native bom and naturalized c itiz e n s from varied ethnic backgrounds accounted f o r approximately h a lf o f the migrants; foreig n labor entering the country under con tra ct between th e ir government and the United States, and workers entering the country il l e g a l l y , accounted f o r the r e s t. During World War I I , the s ca rc ity o f farm labor led to agreements with Mexico and other neighboring countries idiereby th e ir nationals could le g a lly enter the country f o r teagmrary employment in the 2/ 2/ Mexican farm workers who entered the country i l le g a l ly were known as "wetbacks” because they waded o r swam the Rio Grande River to avoid d etection by the a u th o ritie s. Once here, th is group presented a constant threat to agricu ltu ra l wage scales and working con dition s. The exact number o f these persons in the country at any one tin e was unknown; the number o f apprehensions varied from year to year. More stringent Border Patrol action has reduced the number o f i l le g a l entrants to a n e g lig ib le fig u re in recent years. 3:14 4 harvest f i e l d s . This p ractice has been continued and even expanded; at the peak period o f employment in 1956, as many as 312,000 o f such contract laborers, the m ajority o f whom were Mexican, were employed in the United S tates. Foreign nationals are admitted to the United States under contract only when lo c a l labor shortages are acute. The agreement with Mexico requires employers to pay a minimum wage rate (d eter mined through a lo c a l survey), and provide housing and transporta tio n to and from the border. The Department o f Labor administers the recru itin g program and s e le cts workers suitable fo r farm em ployment and f o r admission under United States immigration laws, including a medical examination by an o f f i c e r o f the U. S. Public Health S ervice. Regularly employed farm workers are generally hired by the month. They are usu ally furnished with a house or with board and room. In some areas, day or week rates are common; in oth ers, hourly o r piece rates p re v a il, p a rticu la rly during the harvest seasons. I t i s d i f f i c u l t to compare hours and earnings o f farm workers with other workers in the economy; sh elter and food may or may not be included as part o f the wage payment and the work day o r week i s less r ig id ly established than in most other indus t r i e s . The average workweek reported in 1955 was approximately 49 hours, with a 9-hour day and a 6-day week' not uncommon. Working time, usually defined as tim e -in -th e -fie ld , tends to understate the actual length o f the working day in many farm areas. As o f July 1, 1957, average farm wage levels f o r the United States as a whole, as reported by the Department o f Agri cu ltu re, were as fo llo w s : $177 a month with housing furnished; $6.20 a day with board and room; and 93 cents an hour when board and room were not furnished. Regional d ifferen ces in both rates and method o f payment were pronounced; average hourly rates with out board and room ranged from 57 cents in the Bast South Central States to $1.16 in the P a c ific region. Farm workers have generally been exempted from most important labor le g is la tio n . Neither the Fair Labor Standards Act, which sets the minimum wage and overtime standards fo r most indus t r ie s , nor the Labor Management Relations A ct, guaranteeing workers the right to organize and bargain c o lle c t iv e ly , include agricu ltu ra l 3:14 5 labor within th eir scope. 3 / Most farm workers are also exempt from State workmen's compensation and unemployment insurance laws. Until recen tly, farm workers were exempt from Federal s o c ia l se cu rity le g is la tio n , but regularly employed farm workers are now included under the Old-Age and Survivors*Insurance program as are farm operators. Trade Unionism Among Farm Workers E fforts to form e ffe c t iv e farm workers' unions have been la rgely unsuccessful. To some extent, the nature o f the labor supply explains th is situ a tion . Hired farm workers lack cohesion; many o f the most able and aggressive workers regard farm jobs as temporary; some plan to become owner-operators in the near fu tu re. The seasonal farm worker and the migratory workers, moving in and out o f jobs and communities, are generally unaware o f , or are un in terested in , the long-term aspects o f union organization, Where farm labor organizations were established, they frequently su ffered from the in filt r a t io n o f radical groups attempting to subvert le g i timate trade unionism to th e ir own ends. Employer opposition is also an important fa c t o r . Employer attitudes and practices are s t i l l influenced by the tra d itio n a l re lationship between the working farmer and his help. In certain areas, farm employer groups have exerted organized resistance to unionization o f farm workers. The National A gricultural Workers Union was chartered by the AFL in 1946 and set out to protect and improve working standards in the West and Southwest. With the assistance o f the AFL, le g is la tio n was sought to improve the economic status o f migrant workers and to prevent the fu rth er importation o f farm labor; at the same time, an organizing drive was started. In 1956, however, the union reported a dues-paying membership o f only about 4,500 workers. - Some organization o f farm workers has occurred in spe c ia liz e d areas and in a few la rg e-sca le operations. In a few in stances, unions recognized in the packing sheds or processing plants have been able to include f i e l d workers in th e ir membership. For example, milkers* unions a f filia t e d with the International Brother hood o f Teamsters have secured recognition and c o lle c tiv e bargaining 3 / Hired farm workers employed in the production o f sugar beets and sugar cane are guaranteed a minimum wage established by the Secretary o f A griculture under the provisions o f the Sugar Act. 3:14 6 agreements in the Los Angeles and San Francisco milk sheds and in the State o f Connecticut. The Meat and Cannery Workers, an a f f i l i ate o f the Meat Cutters and Butcher Workmen, have a union shop contract covering a l l f i e l d and processing workers employed on one 50,000 acre farm in New Jersey. The United Packinghouse Workers, with c o lle c tiv e bargaining relationships in the Louisiana sugar re fin e rie s , is attempting to organize sugar cane and beet workers. Unions attempting to organize agricu ltu ral workers stress administrative and le g is la tiv e action in the b e l ie f that improved working conditions fo r farm laborers w ill come about through cor rective le g is la tio n , i f not through labor union a c t iv it y . In lin e with th eir general in terest in farm problems, the major labor federa tions have devoted considerable attention to migratory labor in recent years. The f i r s t convention o f the AFL-CIO, in December 1955, adopted a resolu tion dealing with migrant farm workers and foreig n contract labor which stated, in b r ie f: Foreign la borers, coming in under loose c e r t ific a tio n s o f need, have jeopardized the jobs o f United States farm workers. Recognizing that under certain conditions domestic agriculture does require the services o f foreign contract labor, and that the United States owes a tremendous debt to the foreig n nationals who enabled th is country to provide food and fib e r to the a llie d cause during World War I I , the AFL-CIO pointed to the depressing wage e ffe c t o f th is p ra ctice . Congress and State leg isla tu res were urged to enact laws designed to meet th is sp ecia l problem. In addition, the resolution ca lle d upon the Government to guarantee to contract farm labor f u l l rights and s o c ia l b en efits equal to those enjoyed by United States labor, in cluding p rotection against discrim ination and the right to union a f f ili a t io n and representation. 3:14 4. General 4:01 Glossary of Current Industrial Relations Terms The terns lis t e d in th is glossary are those lik e ly to be encountered most frequently in reading about in d u strial relation s in the United S tates. The d efin itio n s are b r ie f, designed prim arily to id e n tify the terms according to current usage rather than to provide a tech n ical discussion o f meanings and ap plication s. Many o f the terms lis t e d have a s p e c ific leg a l mean ing, eith e r through le g is la tiv e enactment or ju d ic ia l in terpretation , which may d i f f e r in important respects from ordinary usage. Thus, th is glossary should not be considered as re fle c t in g the o f f i c i a l views o r opinions o f any agency o f the United States Government. ABSENTEEISM In a general d escrip tive sense, applied to u n ju stifie d fa ilu r e o f workers to report to work when scheduled. From the point o f view o f personnel adm inistration, as in determining rate o f absenteeism, may be applied to a l l absences, whether fo r ju s t ifie d ( e . g . , sickness) o r u n ju stifie d reasons. ACCIDENT AND SICKNESS BENEFITS Regular payments to workers who lose time from work due to o ff -t h e -jo b d is a b ilit ie s through accident or sickness. Provided in fou r States by law, but generally part o f private group health and insurance plan financed in Wiole o r in part by em ployers. (See Insurance Plan; Temporary D is a b ility Law; Work men's Compensation.) AFL-CIO Designation o f the federation created by merger o f the American Federation o f Labor (AFL) and the Congress o f Indus t r i a l Organizations (CIO) in December 1955. ( 1) 2 AGREEMENT, COLLECTIVE BARGAINING ((DETRACT) Written contract between an employer (o r employers) and a union, usually f o r a d e fin ite term, defining the conditions o f employment (wages, hours, vacations, holidays, overtime pay ments, e t c . ) , the rights o f the workers and the union, and pro cedures to be follow ed in s e tt lin g disputes o r handling issues that arise during the l i f e o f the contract. AMERICAN FEDERATION OP LABOR (AFL) National fed era tion o f autonomous trade unions form ally organized in 1886, although tracing i t s o rig in to 1881. Merged with Congress o f Industrial Organizations in December 1955. (See AFL-CIO. ) ANNUAL IMPROVEMENT FACTOR Wage increase granted autom atically each year, in addition to c o s t -o f-liv in g adjustments, in recognition o f employees* share in increased produ ctivity due to improved technology and methods. Introduced in 1948 agreement between General Motors Corp. and United Automobile Workers. APPRENTICE Person, usually young, who enters into agreement with em ployer to learn a s k ille d trade through supervised train in g and experienfce, usually f o r a s p e c ifie d period o f time. P ra ctical training i s supplemented by related tech n ical o ff-t h e -jo b in stru ction . ARBITRATION (VOLUNTARY, COMPULSORY) Method o f s e tt lin g labor-management dispute through re course to an im partial th ird party whose d ecision is usually fin a l and binding. A rbitration i s voluntary when both p a rtie s, o f th e ir own v o lit io n , agree to submit a disputed issue to a rb itra tion , and compulsory i f required by law to prevent a work stoppage. ARBITRATOR Impartial th ird party or member o f a board to idiom d is puting parties submit th e ir d ifferen ces f o r d e cisio n (award). 4:01 3 AUTOMATION Term used to describe several types o f tech n ical develop ments, including (a ) a continuous-flow production process which integrates various mechanisms to produce a fin ish ed item with re la tiv e ly few or no worker operations, usually through e le c tron ic co n tro l; (b ) s e lf-re g u la tin g machines that can perform highly p recise operations in sequence; and ( c ) e le ctro n ic com puting machines. Often used merely to describe advanced mechanization. BARGAINING UNIT Group o f employees in a plan t, firm , or industry recognized by the employer or designated by an authorized agency, such as the National Labor Relations Board, as appropriate f o r repre sentation by a union fo r purposes o f c o lle c t iv e bargaining. BASE RATE Amount o f pay f o r work performed during a unit o f time, e . g . , hour, day, week, month, o r year, exclusive o f overtime or incentive earnings. Under incentive systems, term may re fe r to amount paid fo r established task or job standard. (See Guaranteed Rate.) BONUS PLAN Wage system that includes payment in addition to regular or base wage f o r production in excess o f the standard fo r the jo b . May also refer to any payment in addition to the regular wage ( e . g . , Christmas bonus). BOYCOTT Concerted attempt by a union to discourage the purchase, handling, o r use o f products o f an employer with whom the union is in dispute. When such action is extended to another company doing business with the employer involved in the dispute, i t is termed a secondary b oy cott. BUMPING Practice that allows a sen ior employee ( i n length o f serv ic e ) to d isp lace a ju n ior employee in another jo b or department during a reduction in fo r c e . 4:01 4 BUSINESS AGENT Generally a fu ll-tim e paid representative o f a lo c a l union whose duties include day-to-day dealing with employers and workers, adjustment o f grievances, enforcement o f agreements, and sim ilar a c t iv it ie s . BUSINESS UNIONCISM) - ( "BREAD-AND-BUTTER" UNIONISM) Union p o licy that places primary emphasis on securing higher wages and better working conditions fo r i t s members through c o lle c tiv e bargaining rather than through p o l it ic a l a ction . Usually applied to o b jectiv es o f trade union movement in the United States. CALL-IN PAY (CALL-BACK PAY) Amount o f pay guaranteed to a worker reca lled to work a fte r completing a work s h i f t . (See Reporting Pay.) CHECKOFF P ractice whereby the employer, by agreement with the union and upon w ritten statement from each employee, regularly with holds union dues from employees' wages and transmits these funds to the union. CLOSED SHOP Form o f union secu rity provided in agreement under which employer may hire only union members and retain only union mem bers in good standing. (See Union Shop.) CLOSED UNION Union which bars new members or makes membership d i f f i c u l t in order to p rotect job opportunities fo r i t s present members or fo r other reasons. COLLECTIVE BARGAINING Method whereby representatives o f the employees (the union) and employer determine the conditions o f employment through d ire ct n egotiation, normally resulting in a w ritten agreement o r contract settin g fo r th the wages, hours, and other conditions to be observed fo r the duration o f the agreement. (See Agree ment, C o lle ctiv e Bargaining.) 4:01 5 COMMON LABOR General term used to describe unskilled workers performing heavy labor. In s p e c ific situ a tion s, may refer to unskilled workers not assigned to a particular jo b . COMPANY UNION H is to r ic a lly , a term used to describe a labor organization which is organized, financed, or dominated by the employer. COMPULSORY RETIREMENT In general, involuntary separation from employment in a company upon reaching a s p e cifie d age. Age o f compulsory re tirement is that point at which worker loses the right o f de ciding whether he should r e tire or continue on his jo b . CONCILIATION (CONCILIATOR) Attempt by a th ird party to help in the settlement o f d is putes between employers and employees through in terpretation , suggestion, and advice. In p ra ctice , c o n c ilia tio n is synonymous with mediation. C on cilia tor—term used to designate person who undertakes c o n c ilia tio n o f a dispute. CONGRESS OF INDUSTRIAL ORGANIZATIONS (CIO) Federation o f autonomous national unions formed in 1938 by in du strial unions, most o f which were formerly a f filia t e d with the American Federation o f Labor. Merged with the AFL in December 1955. (See AFL-CIO.) CONSUMER PRICE INDEX (CPI) Monthly measurement o f average change in the prices o f goods and serv ices purchased by urban fa m ilie s . O f f ic ia l Government index issued by the U. S. Department o f Labor*s Bureau o f Labor S t a t is t ic s . Sometimes referred to as the " c o s t o f- liv i n g index." COST-OF-LIVING ADJUSTMENT Raising or lowering wages or sa la ries in accordance with changes in the cost o f liv in g as measured by an appropriate index, usually the Bureau o f Labor S t a t is t ic s ' Consumer Price Index. 4:01 6 CRAFT Usually a s k ille d occupation requiring a thorough knowledge o f processes involved in the work, the exercise o f considerable independent Judgment, usually a high degree o f manual d ex terity , and, in some instances, extensive re sp o n s ib ility fo r valuable product or equipment. CRAFT UNION Term applied to a labor organization which lim its member ship to workers having a p a rticu lar s k i l l or working at c lo s e ly related trades. In p ra ctice , many s o -c a lle d cra ft unions also e n ro ll members outside the cra ft f i e l d . CREDIT UNION Not a labor union but a cooperative savings and loan asso c ia tio n operating under Federal or State law. DAVIS-BACON ACT (See Prevailing Wage Law.) DAY SHIFT (See S h if t .) DAY WORK Usually refers to work f o r which pay i s computed on an hourly rate or on a per-day basis in contrast to piece or in centive work. DISMISSAL PAY (SEVERANCE PAY) Monetary allowance given to employees upon permanent te r mination o f employment through no fa u lt o f th e ir own. May be voluntary on part o f employer or provided fo r in c o lle c tiv e bargaining agreement. DOUBLE TIME Penalty or premium rate fo r overtime work, fo r work on Sunday, e t c . , amounting to twice the employee's regular rate o f pay. 4:01 7 DOWNGRADING Reassignment o f workers to tasks with lower rates o f pay. DOWN TIME B rief periods o f idleness while waiting fo r repair, setup, or adjustment o f machinery. Under incentive wage systems, may re fe r to payment made to employees fo r such lo st time. DUAL UNION(ISM) Term applied to a situ a tion where two r iv a l unions or federations claim ju r is d ic tio n over and the rifdit to organize workers in a particu lar industry or lin e o f work. EARNINGS, AVERAGE HOURLY Arithmetical average o f hevrly ewrnings o f a l l employees in a s p e c ific grouping o f occupations, establishments or indus t r ie s . As published by the Bureau o f Labor S t a t is t ic s , gross average hourly earnings include s h ift d iffe r e n tia ls and pre mium pay; straight-tim e average hourly earnings exclude such compensation. EMPLOYERS' ASSOCIATION Voluntary organization o f employers established to deal with problems common to the group. May be formed s p e c ific a lly to handle in du strial relation s and to negotiate with a union. ENTRANCE RATE Hourly rate at which new employees are hired, at times referred to as probationary or h irin g rate. May apply to es tablishment as a tdiole or to p a rticu lar occupation. ESCALATOR CLAUSE Provision in a c o lle c t iv e bargaining agreement whereby wage rates are autom atically increased o r reduced p e rio d ica lly in proportion to changes in the cost o f liv in g , as measured by an appropriate index. EXPIRATION DATE Formal termination date established in a c o lle c tiv e bar gaining agreement, or the e a r lie s t date at which the contract may be terminated. 4:01 8 FACTFINDING BOARD Group o f q u a lifie d individuals appointed under Government authority to in vestigate, assemble, and report the fa c ts in a labor dispute. May also have authority to make recommendations. FAIR LABOR STANDARDS ACT ( FLSA), (WAGE AND HOUR LAW) Federal law passed in 1938 which prohibited oppressive ch ild labor and established the p rin cip le o f a minimum hourly wage and premium overtime pay fo r hours in excess o f a s p e c ific le v e l (now 40 per week) f o r a l l workers engaged in , or producing goods f o r , in tersta te commerce. The la te st amendment raised the minimum wage to $1 an hour, e ffe c t iv e March 1, 1956. Ad ministered by the U. S. Department o f Labor. FEATHERBEDDING Term implying c r itic is m applied to a union working rule o f agreement provision which alleged ly lim its output or requires employment o f excess workers and thereby creates " s o f t ” (hence "featherbed") or unnecessary jobs f o r union members; o r a charge levied by a union upon a company fo r services which are not performed or not to be performed. FEDERAL LABOR UNION Local unions a f f ili a t e d d ir e c t ly with the American Federa tio n o f Labor (now AFL-CIO) rather than with a national or international onion. FEDERAL MEDIATION AND CONCILIATION SERVICE (FMCS) Independent United States Government agency which provides mediators and co n c ilia to rs to a ssist the pa rties involved in negotiations or in a labor dispute in reaching a settlem ent. FRINGE BENEFITS General term used to describe supplemental b e n e fits , such as pensions, insurance, vacations, and paid holidays, received by workers in addition to regular wages. GRIEVANCE A complaint or expressed d is s a tis fa c tio n by an employee in connection with h is jo b , pay, or other aspects o f his employment. 4:01 9 GRIEVANCE PROCEDURE Usually a formal plan, s p e cifie d in the c o lle c t iv e bar gaining agreement, ldiich provides a channel fo r the adjustment o f grievances through progressively higher le v e ls o f authority in company and union. GROUP INCENTIVE PLAN Payment o f incentive earnings (p ie ce rate or bonus) on t o t a l or group output. based GUARANTEED ANNUAL MAGE Plan whereby q u a lifie d employees are assured wage income o r employment fo r a f u l l year or the greater part o f a year. GUARANTEED RATE Rate o f hourly or weekly pay guaranteed an incentive system. (See Base Rate.) to a worker under HEALTH CENTER Usually a c lin ic administered by a union where members and th eir fa m ilies may receive medical examination and treatment fr e e or at a nominal charge. HIRING HALL O ffic e maintained by the union fo r referrin g workers to jo b s . HOLIDAY PAY Pay to workers, ty p ic a lly h olida ys. (See Paid H olidays.) at premium ra te s, f o r work on HOSPITALIZATION BENEFITS Supplementary ben efit paid fo r in whole or in part by em ployers Which provides the worker, and in many cases h is de pendents, with hospital care or cash allowances toward the cost o f such care fo r a s p e c ifie d number o f days. Usually part o f a more in clu sive health and insurance program. 4:01 10 IMPARTIAL CHAIRMAN A rbitrator employed jo in t ly by the union and employer or employers, usually on a long-term b a sis, to a ssist in adminis tering the c o lle c t iv e bargaining agreement and to decide d is putes arisin g during the l i f e o f the con tract. INCENTIVE WAGE SYSTEM Method o f wage payment to th e ir actual production. which rela tes earnings o f workers INDEPENDENT UNION (UNAFFILIATED UNION) Term applied to lo c a l or national unions not with the AFL-CIO (o r with eith er o f the federations merger). a f filia t e d before the INDUSTRIAL RELATIONS General term covering matters o f mutual concern to em ployers and employees and the relation sh ip s, formal or in fo r mal, between employer and employees or th eir representatives. INDUSTRIAL UNION Labor union that represents a l l or most o f the employees, both s k ille d and u n skilled, in an industry or company. INDUSTRIAL UNION DEPARTMENT Department in AFL-CIO devoted to furthering the in terests o f in du strial unions. INEQUITIES Term applied to wage rates or working conditions that d iffe r su b stan tially from those prevailin g in the plant, com pany, lo c a lit y , or industry fo r comparable work. INITIATION FEE Payment required o f an organization. 4:01 individual when he jo in s a labor 11 INJUNCTION, LABOR Court order restraining one or more persons or unions from performing some act which the court considers in jurious to property or other rights o f an employer or community. INSURANCE PLAN (HEALTH AND INSURANCE PLAN) Program through which employer assumes part or a l l o f the cost o f providing fin a n cia l protection to the worker and his fam ily against death, illn e s s , accidents, and other r is k s . May be underwritten by a commercial insurance company or s e l f insured. INTERNATIONAL UNION National union claiming ju r is d ic tio n outside continental United States (u su ally Canada and United States t e r r it o r i e s ) . Sometimes applied to a l l national unions. INTERSTATE COMMERCE Legal concept describing trade, portation, or communication among the to regulate in tersta te commerce is Government by the Constitution o f the t r a f f i c , commerce, trans several States. Authority reserved to the Federal United States. JOB ANALYSIS Study o f a jo b to discover i t s s p e c ific a tio n s , i t s mental, ph ysical, and s k i l l requirements, and i t s re la tio n to other jobs in the plant, usually prepared fo r wage settin g or job sim p lifica tio n purposes. JOB CLASSIFICATION Arrangement o f tasks in an establishment or industry into a lim ited se rie s o f jobs or occupations, rated in terms o f s k i l l , experience, train in g, and sim ilar considerations fo r wage s e t tin g purposes. Term may be used in reference to a sin gle clu ster o f jo b s . JOB DESCRIPTION Written statement lis t in g the elements o f a particu lar job or occupation. 4:01 12 JOB EVALUATION Determination o f the rela tive importance or ranking o f jobs by system atically rating them on the basis o f selected fa cto rs such as s k i l l , re sp o n sib ility , or experience. Ordi n a rily used as a means o f eliminating wage in eq u ities. JOURNEYMAN Q ualified craftsman, generally by serving an apprenticeship. having mastered his trade JURISDICTION (UNION) Right or claim to represent certain workers within sp e ci fie d occupations, in du stries, or geographical boundaries. JURISDICTIONAL DISPUTES C on flict between two or more unions over the organization o f a p a rticu lar establishment or whether a certain type o f work should be performed by members o f one union or another. J u ris d ictio n a l s trik e —A work stoppage resulting from a ju ris d ic tio n a l dispute. LABOR GRADES Series o f jobs or job groups in the wage rate structure o f an establishment. Generally established through jo b c la s s i fic a tio n and job evaluation. LABOR MANAGB4ENT RELATIONS ACT, 1947 (TAFT-HARTLEY ACT) Federal law, amending the National Labor Relations Act (Wagner A ct) o f 1935, which establishes leg a l ob liga tion s and p roh ibits certain a c t iv it ie s in the conduct o f labor-management relation s in industries a ffe ctin g in tersta te commerce. LABOR MARKET AREA Term describing the geographical area from which workers may be recu rited , surrounding a concentration o f establishments. Usually a metropolitan area, consisting o f a central c it y and i t s suburbs. 4:01 13 LABOR MOVEMENT General term usually applied to the growth, structure, and a c t iv it ie s o f organized labor. LABOR TURNOVER Rate at which workers move into and out o f employment, usually expressed as the number o f accessions and separations during a given period per 100 employees. Monthly turnover rates, by industry, are computed by the Bureau o f Labor S t a t is t ic s . LAYOFF Separation from employment fo r a temporary or in d e fin ite period, without preju d ice, as a result o f slack work o r because o f other reasons. Monthly la y o ff rates by industry are computed by the Bureau o f Labor S ta tis t ic s . LEARNER Generally a beginner learning a job which does not require extensive tech nical training or experience. LOCAL INDUSTRIAL UNION Local unions a f filia t e d d ir e c t ly with the Congress o f Industrial Organizations (now AFL-CIO) rather than with a na tion a l or international union. LOCAL UNION (UNION LOCAL, CHAPTER, LODGE, e t c .) Labor organization comprising the membership within a p a rticu lar community or establishment, Which has been chartered by, and i s a f filia t e d with, a national or international union. LOCKOUT Work stoppage resu lting from denial o f employment to work ers by an employer during a labor dispute. MAINTENANCE OF MEMBERSHIP Arrangement provided f o r in a c o lle c tiv e bargaining agree ment Whereby employees who are members o f the union at the time the agreement is negotiated, or who volu n tarily jo in the union subsequently, must maintain th e ir membership fo r the duration o f the agreement as a condition o f employment. 4:01 14 MAKE-WORK (See Featherbedding.) MANAGEMENT Terra applied to the employer and his representatives, or to corporation executives, who are responsible fo r the adminis tra tion and d irection o f an enterprise. MANAGEMENT PREROGATIVES As used in union-management relation sh ips, term is applied to rights reserved to management which are not considered sub je c t s fo r c o lle c t iv e bargaining or which are expressly noted as such in a c o lle c tiv e bargaining agreement. Usually includes such matters as the right to schedule production, to determine the process o f manufacture, to maintain order and e ffic ie n c y , to h ire, e t c . MASTER AGREEMENT Uniform c o lle c tiv e bargaining agreement covering a number o f plants o f a single employer or the members o f an employe a ssocia tion . rsf MEDIATION (See C o n cilia tio n .) MERIT INCREASE Increase in the wage rate o f a worker given on the basis o f e ffic ie n c y and performance on a particular jo b . MIGRATORY WORKERS Persons whose p rin cipal income is earned from temporary employment (usually in agricultu re) and who, in the course o f a year, move one or more times, often through several States. MINIMUM WAGE Rates o f wages, established by law or through c o lle c tiv e bargaining, below which workers (other than learners or handi capped) cannot be employed. Usually expressed as an hourly rate. 4:01 15 MULTIEMPLOYER BARGAINING C ollective bargaining between a union and a group o f em ployers, usually represented by an employer association . MULTIPLANE BARGAINING C ollectiv e bargaining between a company and the representing workers in more than one o f it s plants. union NATIONAL LABOR RELATIONS ACT, 1935 (WAGNER ACT) Federal act passed in 1935 which guaranteed workers the right to organize and bargain c o lle c t iv e ly . Amended by the Labor Management Relations Act o f 1947. NATIONAL LABOR RELATIONS BOARD (NLRB) Agency created by the National Labor Relations A ct, 1935, and continued in the Labor Management Relations Act o f 1947, whose functions are to define appropriate bargaining u n its, to hold election s to determine whether a m ajority o f workers want to be represented by a s p e c ific union, to c e r t ify unions to represent employees, to interpret and apply the a c t’ s provi sions prohibiting certain unfair employer and labor p ra ctice s, and otherwise to administer the provisions o f the a ct. NATIONAL MEDIATION BOARD Agency established by the Railway Labor Act o f 1926 to provide aid in s e ttlin g disputes between railway companies and unions over union representation or negotiation o f changes in agreements. NATIONAL RAILROAD ADJUSTMENT BOARD Federal agency established in 1934 which functions as a board o f a rb itra tion , handing down decision s on disputes a risin g out o f grievances in the railroad industry. NATIONAL UNION Union composed o f widely dispersed a ffilia t e d lo c a l un ion s. The Bureau o f Labor S ta tis t ic s , in it s union d irectory, defines a national union as one with agreements with d iffe re n t employers in more than one S tate. 4:01 16 NEGOTIATION (See C ollectiv e Bargaining.) NIGHT SHIFT (See S h if t .) NO-STRIKE CLAUSE Provision o f a c o lle c t iv e bargaining agreement by iriiich the union agrees not to strik e fo r the duration o f the con tra ct. OLD-AGE AND SURVIVORS* BENEFITS Retirement income and survivors* payments available to e lig ib le workers covered by Federal S o cia l Security le g is la tio n . OPEN SHOP Term commonly applied to an establishment with a p o lic y o f not recognizing or dealing with a labor union. May also be ap p lie d to an establishment where union membership i s not a con d itio n o f employment. OPEN UNION Union which w ill admit any q u a lifie d person to upon payment o f reasonable in it ia t io n fe e s . membership OVERTIME Work performed in excess o f basic workday or workweek, as defined by law, c o lle c t iv e bargaining agreement, or company p o lic y . OVERTIME PAY Payment at premium rates f o r work in excess o f basic work day or workweek, generally at rate o f one and one-half times the worker's regular rate. PACKAGE SETTLEMENT Term used to describe to ta l money value (u su ally quoted as cents per hour) o f a change in wages and supplementary ben efits achieved by workers through c o lle c t iv e bargaining. 4:01 17 PAID HOLIDAYS Holidays axe days o f sp e cia l r e lig io u s , cu ltu ra l, s o c ia l, o r p a tr io t ic s ig n ifica n ce on which ordinary work or business ceases. Paid holidays are those, established by agreement or by company p o lic y , f o r which workers receive th e ir f u l l d a ily pay without working. PAID VACATIONS Excused leave o f absence o f a week or more, with f u l l pay, granted to workers annually f o r purposes o f rest and recrea t io n . Vacations are frequently graduated by length o f se rv ice , e . g . , 1 week o f vacation a fte r 1 yea r's serv ice; 2 weeks a fte r 5 years; and 3 weeks a fte r 13 years. PAYMENTS BT RESULTS (See Incentive Wages.) PAYROLL DEDUCTIONS Amount withheld from employees' gross earnings by employer f o r s o c ia l s e cu rity , income taxes, and other governmental le v ie s ; a lso may include union dues, group insurance premiums, and other voluntary wage adjustments. PENALTY RATE Premium rate paid f o r p a rticu la rly hazardous or onerous work. Term i s at times applied to any premium o r overtime ra te. PENSION (RETIREMENT) PLAN Any plan providing regular payments to employees a fte r retirem ent. I f employee shares in c o s t, plan i s contributory; i f cost i s borne e n tir e ly by employer; plan is aoncontributory. PER CAPITA TAX Regular payment made on the basis o f membership by lo c a l union to i t s national organization, or by national union to fed era tion . PERQUISITES Food, lodging, or other services and merchandise given to workers by employer in addition to monetary compensation. 4:01 18 PICKETING P atrollin g near employer's place o f business by union mem bers to p u b licize the existence o f a labor dispute, persuade workers to jo in the work stoppage, and discourage customers from buying or using employer* s goods or se rv ice s. PIECE RATE Amount paid per unit o f output to worker incentive plan. under piecework PIECEWORK Method o f wage payment based on number o f units produced. POLICE POWER OF STATE Authority o f Government to regulate in those areas " a ffe c ted with the public in te r e s t." PORTAL-TO-PORTAL PAY Payment fo r time spent in travelin g mine entrance to working s i t e . to and from plant or PREMIUM PAY Compensation at greater than regular rate. overtime, s h ift d iffe r e n t ia ls , or penalty rates. May re fe r to PREVAILING RATE Fre<juently ca lle d the "going r a te ," term has no precise s t a t is t ic a l meaning in ordinary usage. May re fe r to average le v e l o f wages paid by employers fo r s p e c ific occupations in a community or area; or rate most commonly paid; o r rate paid to most workers; or rate established by c o lle c t iv e bargaining agreements. PREVAILING WAGE LAW (DAVIS-BACON ACT) Federal act passed in 1931 (with subsequent amendments) requiring the payment o f prevailin g wage rates in the lo c a lit y on construction, a lte ra tio n , or repair o f public buildings or public works performed under contract with the Federal Govern ment. Administered by the Department o f Labor. 4:01 19 PRODUCTION WORKERS Employees d ir e c tly connected with the manufacturing or operational processes as contrasted with supervisory o r c le r ic a l employees. PRODUCTIVITY Term referrin g to e ffic ie n c y o f production; usually stated as a ra tio o f units o f output to a unit o f input, e. g . , 10 units per man-hour. Productivity indexes Crate o f change) are computed by Bureau o f Labor S t a t is t ic s . PROFIT SHARING Any procedure under Which an employer pays employees, in addition to regular pay, sp ecial current or deferred sums based on the prosperity o f the business as a whole. PROGRESSION SCHEDULE (See Wage Progression.) PUBLIC CONTRACTS ACT (See Walsh-Healey A c t.) PYRAMIDING Payment o f overtime on overtime which may result from pay ing both d a ily and weekly overtime fo r same hours o f work. Usually prohibited in c o lle c tiv e bargaining agreements. QUIT Termination o f employment in itia te d by employee. RAIDING Term describing a union's attempt to en ro ll members be longing to another union or already covered by a c o lle c tiv e bar gaining agreement negotiated by another union. RAILWAY LABOR ACT Federal law passed in 1926 which established a framework fo r in du strial relation s in the railroad industry and (la t e r ) the a irlin e industry. 4:01 20 RAILROAD RETIREMENT ACT Nationwide program providing railroad employees tirement ben efits based on the individual worker's and length o f service in the railroad industry. with re earnings RATE CUTTING Term describing a reduction o f established incentive or time wage rates in the absence o f comparable changes in job content, or actions by companies in reducing wages to meet competition. REAL WAGES Purchasing power o f money wages or the amount o f goods and services that can be acquired with money wages, taking into account changes over time in the p rice le v e l as measured by an appropriate index. RBOPENING CLAUSE Clause in a c o lle c tiv e bargaining agreement usually s ta t ing the time or the circumstances under which negotiations on wages or other economic issues can be requested, p rio r to the expiration o f the contract. RELATED WAGE PRACTICES (See Fringe B e n efits.) REPORTING PAY Minimum pay guaranteed to a worker who i s scheduled to work, reports to work, and fin d s no work a v a ila b le, o r le s s than the guaranteed period (u su ally 4 hours). (See C a ll-in Pay.) REST PERIOD An interruption in the workday, usually o f 5 to 15 minutes* duration, during which the worker re sts, smokes, o r takes re freshments without loss o f pay. RETROACTIVE PAY Wages due fo r past se rv ice s. Frequently required increases are made e ffe c t iv e as o f an e a r lie r date. 4:01 when 21 RIQtfT-TO-lORK LAWS State le g is la tio n which prohibits any requirement that a worker Join a union in order to keep h is jo b , thus banning a ll types o f union se cu rity provisions in agreements. RUNAWAY SHOP Term used by unions to characterize business establishments which change loca tion to evade a union or State labor laws. SCAB (STRIKEBREAKER) Union term to describe an employee who accepts employment or continues to work in a plant where a strik e is in process. SCANLON PLAN Incentive program conceived by the la te Joseph N. Scanlon, onetime research d ire cto r o f the Steelworkers union and la ter on the s t a f f o f the Massachusetts In stitu te o f Technology, which has fo r i t s o b je c tiv e the reduction o f labor costs through increased e ffic ie n c y and the sharing o f the resultant savings among workers. SCIENTIFIC MANAGEMENT General term covering ap plication o f in d u strial engineer ing techniques, such as time and motion stu d ies, to production processes in order to increase production and decrease co sts . SENIORITY Term used to designate, fo r la y o ff or promotion purposes, an employee's status in a plant acquired through length o f s e rv ice . Straight s e n io r ity —s e n io rity acquired s o le ly through length o f s e rv ic e . Q ualified se n io rity —other fa cto rs such as a b ilit y considered with length o f s e rv ice . SEVERANCE PAY (See Dismissal Pay.) 4:01 22 SHIFT (DAY, EVENING, NIGHT, FIXED, ROTATING, SPLIT, SWING) Term applied to the d a ily working schedule o f a plant or i t s employees. Day s h i f t —usually the daylight hours; evening s h i f t —work schedule ending at or near midnight; night (grave yard) s h i f t —work schedule sta rtin g at or near midnight. Fixed s h ift —scheduled hours remain the same, week a fte r week, fo r each group o f workers. Rotating s h ift —a practice whereby crews change th eir hours at p eriod ic intervals* S p lit s h i f t —a d a ily work schedule divided in to two or more parts. Swing s h i f t —the fourth or rotating s h ift used on continuous 7-day or "round-theclock " operations. SHIFT DIFFERENTIAL (SHIFT PREMIUM) Additional compensation paid to workers employed at other than regular daytime hours. SHOP STEWARD (UNION STEWARD) Union's representative in a plant or department ele cte d by the membership to carry out union du ties, adjust grievances, c o lle c t dues, and s o l i c i t new members. Usually an employee. SKILL DIFFERENTIALS Differences in wage rates paid to workers engaged in occu pations requiring various le v e ls o f s k i l l . SLOWDOWN (See S trik e .) SOCIAL SECURITY ACT Federal law passed in 1935, and since amended, establish in g a national s o cia l insurance program. The law provides f o r : Old-age and survivors' b e n e fits ; public assistance to the aged the b lin d , and to needy children; unemployment insurance; and d is a b ilit y b en efits. SOLE BARGAINING Right o f union, when designated as the bargaining repre sen tative, to be sole negotiator fo r a l l employees in the un it, including nonmembers. Common to a l l c o lle c t iv e bargaining. 4:01 23 SPEEDUP Union term fo r conditions which fo r c e workers to increase e ffo r t s o r production without a compensating increase in earnings. STOCK PURCHASE PLAN Plan which enables employees to purchase stock in the company, with or without employer contributions, generally under more favorable terms than are available on the open market. STRETCHOUT Term used by workers when they are required to tend more machines or assume additional duties without a corresponding increase in earnings. STRIKE (OUTLAW, QUICKIE, SLOWDOWN, SYMPATHY, WILDCAT) Work stoppage by a union to enforce a demand fo r changes in the conditions o f employment or fo r recogn ition. Outlaw s tr ik e —work stoppage not sanctioned by parent union and one which v io la te s labor agreement. Quickie s trik e —spontaneous work stoppage by group o f employees without approval o f union. Slowdown—deliberate reduction o f output in order to fo r c e con cession from employer. Sympathy s t r i k e - strik e o f workers not d ir e c t ly involved in a labor dispute, but vriio wish to demon strate worker s o lid a r ity or bring additional pressure upon com pany involved. Wildcat s tr ik e —same as outlaw s tr ik e . STRIKE BENEFITS Union payments made to members who are on s tr ik e . STRIKEBREAKER (See Scab.) STRIKE FUND Amount o f money allocated by union to defray expenses o f a work stoppage, which may include ben efits to members on s tr ik e , p u b licity c o s ts , and leg a l fe e s . 4:01 24 STRIKE NOTICE Formal n otice o f an impending work stoppage presented by the union to the employer o r to the appropriate Government agency. STRIKE VOTE Vote conducted among members o f a bargaining termine whether or not a s tr ik e should be c a lle d . required by union con stitu tion s. unit to de Frequently SUBSTANDARD RATE Rate o f pay below the established plant o r occupational minimum, allowed fo r workers who are ph ysica lly or otherwise unable to meet the production quota. Also applied to a l l rates below Federal or State minimum wages or prevailin g le v e ls . SUGGESTION SYSTEM Device whereby employee ideas that may increase e ffic ie n c y or improve operations within the plant are channeled to the attention o f management; usually combined with system o f rewards fo r acceptable ideas. SUPPLEMENTAL BENEFITS (See Fringe B e n e fits.) SUPPLEMENTARY UNEMPLOYMENT BENEFIT PLAN (SUB) Introduced by agreement between Ford Motor Co. and the United Automobile Workers in mid-1955 and subsequently adopted by other companies; these plans provide compensation to la id - o f f workers in addition to regular State unemployment insurance. Financed by employer. SURGICAL BENEFITS Supplementary b en efit paid fo r in whole o r in part by em ployers, which provides workers, and in many cases th e ir de pendents, with su rgica l care or cash allowance toward the cost o f such care. Generally part o f a more in clu sive health and insurance program. 4:01 25 TAFT-HARTLEY ACT (See Labor Management Relations A c t.) TAKE-HOME PAY Gross earnings fo r p a yroll period, less required deductions. TEMPORARY DISABILITY LAW P rovision enacted in to law in four States providing pay ments fo r a lim ited period to workers su fferin g a lo s s o f wages due to d is a b ilit ie s incurred o f f the jo b . (See Workmen’ s Compensation. ) TIME AND MOTION STUDY Study o f time required and motions involved in performance o f a job f o r purposes o f establishin g standards o f performance and wage ra tes. TIME AND ONE-HALF Premium rate con sistin g o f one and on e-h alf times the em ployee’ s regular rate. TIMEWORK (See Daywork.) TRADE AGREEMENT (See Agreement, C o lle ctiv e Bargaining.) TRAINEE Term applied pa rticu lar jo b . to worker receiving formal training fo r a UMPIRE (See Impartial Chairman.) UNAFFILIATED UNION (See Independent Union.) 4:01 26 UNEMPLOYMENT INSURANCE Joint Federal-State program, established in 1935 under the S ocia l S ecurity Act, under which State administered fund ob tained through payroll taxes provides payments to e lig ib le un employed persons fo r s p e c ifie d period o f time. UNFAIR LABOR PRACTICE Action by either an employer or union which v io la te s pro vision s o f the National or State labor relation s a cts, such as refu sal to bargain in good fa it h . UNFAIR LIST Union l i s t o f employers designated as unfair to labor. UNION ASSESSMENTS Special charges lev ied by union on i t s members poses not provided fo r by regular dues. fo r pur UNION DUES Fee paid p e r io d ic a lly , usually monthly, f o r membership in a labor union. UNION LABEL Tag, imprint, or design attached to an a r t ic le as evidence that i t was produced by union labor. UNION LOCAL (See Local Union.) UNION-MANAGEMENT COOPERATION Voluntary p a rticip a tion o f union and management in solvin g problems outside the determination o f wages, hours and working conditions, snch as production, sa fe ty , community work, e t c . UNION RATE (SCALE) Minimum hourly rate paid to q u a lifie d persons in s p e c ific occupation or trade, Usually established through c o lle c t iv e bargaining. 4:01 27 UNION RECOGNITION Employer acceptance o f a union as the representative o f the employees; fundamental to establishment o f c o lle c tiv e bargain ing relation sh ip. UNION SECURITY P rotection o f union status by provisions in c o lle c tiv e bargaining agreement establishing closed shop, union shop, maintenance-of-membership, and checkoff system. UNION SHOP Provision in a c o lle c tiv e bargaining agreement that re quires a l l employees to become members o f the union within a s p e cifie d time a fter hiring or a fter the provision is negoti ated, and to remain members o f the union as a condition o f employment. UNION STEWARD (See Shop Steward.) U. S. DEPARTMENT OP LABOR Established by Act o f Congress in 1913 to " fo s t e r , pro mote, and develop the welfare o f the wage earners o f the United States, to improve th eir working conditions, and to advance th eir opportunities f o r p ro fita b le employment." The Depart ment also has important functions in the f i e l d o f international labor a ffa ir s . The bureaus and d ivision s o f the Department include: Bureau o f Apprenticeship and Training, Bureau o f Em ployees* Compensation, Bureau o f Employment Security, Bureau o f Labor Standards, Bureau o f Labor S ta tis t ic s , Bureau o f Veterans* Reemployment Rights, Wage and Hour and Public Con tra cts D ivisions, and Women's Bureau. UPGRADING Process o f pay. o f advancing workers to jobs with higher rates VACATION PAY Wages received by employee fo r his vacation period. Paid V acation s.) (See 4:01 28 VESTING (VESTED RIGHTS) Guarantee to worker o f h is equity in a pension plan should his employment be terminated before he becomes e lig ib le fo r retirement. WAGE DIFFERENTIALS D ifferences in d u stries, e tc . in wages among occupations, plants, areas, WAGE-HOUR LAW (See Fair Labor Standards A c t.) WAGE LEADERSHIP Influence exercised by wage settlement firm or group o f firms on other settlements area. reached by large in an industry or WAGS PATTERN Wage increase negotiated with a major company which is follow ed by sim ilar increases in other companies in industry or area. WAGS PROGRESSION Plan providing pay increases, generally at s p e c ifie d time in te rv a ls, f o r workers inoccupations having established minimum and maximum wage rates. May also be based on m erit. WAGS RATE Monetary compensation fo r given unit o f time or exclusive o f premium payments fo r overtime or other e ffo r t, extras. WAGE SCALE Rate schedule sp ecify in g the pay structure f o r an estab lishment, industry, or lo c a l it y . May also re fe r to single r a te . WAGS STRUCTURE Sum t o t a l o f the various elements and considerations that characterize a s p e c ific rate schedule in an establishm ent, in dustry, area, or the country as a whole. 4:01 29 WAGNER ACT (See National Labor Relations Act, 1935.) WALSH-HEALEY (PUBLIC CONTRACTS) ACT Prescribes basic labor standards fo r work done on U. S. Government contracts exceeding $10,000 in value fo r m aterials, a r t ic le s , su p plies, equipment, and naval vessels. Secretary o f Labor i s authorized to set minimum wage standards fo r these contracts. WELFARE PLAN An employee ben efit program which may include l i f e in surance, h osp ita l, medical and surgical protection , and sim ilar items. Usually synonymous with health and insurance plan. WITfi-CDLLAR WORKERS Term used to describe o f f i c e and c le r ic a l employees in adm inistrative, s a le s , p rofession al, and technical departments, as contrasted with production and maintenance employees who are sometimes referred to as "b lu e -c o lla r ” workers. WORKING RULES Set o f rules adopted by union that sp ecify certain condi tion s under which members may o r w ill work. WORKLOAD Amount o f work to be pected, in a given period. performed by worker, or output ex WORKMEN'S COMPENSATION Insurance systems required by State or Federal law and financed by employers which provide payment to workers or their fa m ilies fo r occupational illn e s s , in ju r ie s , or f a t a lit ie s re su ltin g in loss o f wage income. WORK SHARING Arrangement in lie u o f la y o ff whereby available work during slack periods i s spread as evenly or equitably as p o s s i ble by reducing each worker's daily or weekly hours. 4:01 30 WORK STOPPAGE (See S trik e; Lockout.) WORKWEEK Expected o r actual period o f employment generally expressed in number o f hours. f o r the week, YELLOW-DOG CONTRACT Oral or w ritten agreement whereby employee pledges not to become o r to remain a union member. Banned in 1932 by Norris-LaGuardia Act. 4:01 * U . S. GOVERNMENT PRINTING OFFICE : 1958 O -463382
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