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UNITED STATES DEPARTM ENT OF LABOR Frances Perkins, Secretary B U R E A U O F L A B O R ST A T IST IC S Isador L ubin, Commissioner (on leave) A . F . H inrichs, A cting Commissioner + Annual and H ourly Earnings Philadelphia Knitted-Outerwear Industry 1943 Bulletin 830 For sale b y the Superintendent o f D ocum ents, U . S. G overnm ent Printing Office W ashington 25, D . C . - Price 5 cents CO N TE N TS Page 1 1 ^ co to Summary_______ ______ ______________________________________ Characteristics of the industry............................... ......... ................ Employment and earnings: Regularity of employment.. Annual earnings___________ Hourly earnings___________ (in) Letter of Transmittal U nited States D epartment of L abor, B ureau of L abor Statistics, Washington, D . C., M a y 16, 1945. The Secretary of L abor : I have the honor to transmit herewith a report on annual and hourly earnings in the Philadelphia knitted-outerwear industry in 1943. This report was prepared in the Bureau’s Division of Wage Analysis by Kermit B. Mohn, Regional Wage Analyst for the Philadelphia region. A. F. H inrichs, Acting Commissioner. Hon. F rances P erkins, Secretary of Labor. (IV) Bulletin T^jo. 830 o f the United States Bureau o f Labor Statistics [Reprinted from the M onthly L abor R eview , May 1945, with additional data] Annual and Hourly Earnings in Philadelphia KnittedOuterwear Industry, 1943 Sum m ary The knitted-outerwear industry in Philadelphia employed a total of 4,051 individual workers for varying periods of time in 1943. Of these, 1,380 worked ^at least 46 weeks and had average gross annual earnings of $1,739. The average straight-time hourly earnings for all workers who were employed 6 weeks or more were 72.8 cents; over a fourth received less than 50 cents an hour and about 16 percent at least $1 an hour. Comparatively full employment was afforded during 1943 to all workers during their varying period of service in the industry . Weekly hours during the year averaged 39 for all workers, indicating a con siderable amount of overtime work at premium rates. However, a sizable turnover of workers, especially among the lowest skilled occu pations, resulted in an average workyear of only 27.2 weeks among the whole group who worked in the industry at some time during the year. Characteristics o f the Industry The manufacture of knitted outerwear, although reflecting certain characteristics of the apparel trades, is generally classified among the textile industries. It is a relatively small industry, normally employ ing about 25,000 workers, of whom the majority are women and girls. Most of the establishments in this industry are in the East. The segment of the industry that is situated in Philadelphia has had a long history of successful collective bargaining. Forty-seven of the establishments operating in 1943, or all but 1 or 2 of the knittedouterwear manufacturers in the city, operated under agreements with the Knit Goods Workers’ Union, Local 190 of the International Ladies’ Garment Workers’ Union (A. F. of L.). Of the 47 concerns, 43 were members of the Knitted Outerwear Manufacturers Association oper ating under a master agreement. The other 4, although not members of the association, worked under identical union agreements. Rather unusual records, maintained under the terms of these agreements, pro vide significant information regarding the annual earnings of workers in a light manufacturing industry during the war and constitute the basis for the present article. The product of the Philadelphia industry was valued at somewhat more than $10,000,000 in 1943 and the number of workers employed 646949°—45 (1 ) 2 averaged about 2,700 during the year. Employment in individual plants ranged from 8 to 172 workers; 27 plants had fewer than 50 workers, 10 had from 50 to 100 employees, and 10 had over 100. All of the establishments operated full-process plants in that they knit their own fabrics and manufactured finished products. A few purchased no yarn on their own account but instead worked on a con tract basis, with the yarn furnished. The products were knit primarily from woolen yarns, and in 1943 from 70 to 80 percent of the total product was for civilian use. The agreements made with the Knit Goods W ork ed Union stipulate that employers shall furnish the union with weekly transcripts of pay roll records for each employee, by occupation.1 The union posts figures from these pay-roll transcripts to individual members’ record cards, so that the hours and total earnings, by weeks, are listed for the entire year. After consultation with the Knitted Outerwear Manufacturers Association, the union made these individual'record cards for 1943 available to the Bureau for use in this special study. It is recognized that there were slight imperfections in the data. It was impossible, for example, to exclude learners and handicapped workers, as is normally done in the Bureau’s wage studies. Further more, the occupational classifications were not always up to date, and working foremen were probably included in some cases under other occupational titles. It is believed, however, that the results are fairly accurate, and that the slight inaccuracies that may exist do not seriously limit the value of the material. E m ploym ent and Earnings R E G U L A R IT Y OF EM PLOYM ENT Altogether 4,051 different wage earners were employed for varying periods during 1943 by the 47 union establishments in the Philadelphia knitted-outerwear industry. However, these workers averaged only 27.2 weeks of employment (see table 1). This low average must be attributed to turnover among employees, since there was relatively little fluctuation in the total working force during the year. Over 22 percent of those employed worked less than 6 weeks and slightly more than half 'worked less than 26 weeks. On the other hand, more than a third were employed for at least 46 weeks and about one of every eight worked 52 weeks. Among the selected occupations shown in table 1, the cutters and menders showed the greatest continuity of employment, on the average. The former had an average work-year of 43 weeks and the latter had one of 41 weeks. Almost three-fourths of the cutters worked 46 weeks or more and not quite half, put in 52 weeks. Among the menders, 61 percent worked at least 46 weeks and almost a fourth were employed for a full year. In contrast, the greatest turnover is indicated for examiners and trimmers and folders and packers, with average work-years of 21.5 1 Under the arrangement with the union in 1943, the union shops in the knitted-outerwear industry con tributed amounts equal to 3 percent of the total weekly wages of the union members for the purpose of financing various benefits to union members. These contributions were paid for 40 weeks during the year, beginning with the sixth calendar week. From this fund the union provided vacation, pay-to its members, based on total income for a designated period, with a maximum of $35. Persons in military service received $25. In addition, sick benefits of $5 per week were paid for a maximum of 5 weeks during the year' afterlan initial 2 weeks of illness. 3 T able 1.— D istribution o f W orkers in Philadelphia K nitted-O uterw ear Industry , by Num ber o f W eeks W orked D uring 1943 Selected occupations Number of weeks worked 1 to 5 wfioks_ fi to 1ft OTPPks _ _ 11 to 15 wpoks 1fi to 2ft wpolrs 21 to 25 wppks 2fi to 3ft wppks 31 to 35 wppks _ _ 3fi to 4ft wppks 41 to 45 wppks 4fi to 51 wppks _ 52 wppks _ _ _ ___ All Exam work Singer Folders Merrow ers 1 Cutters iners and and Knitters Menders opera Pressers opera trim packers tors tors mers 901 443 256 235 198 181 149 144 164 860 520 1 5 2 1 4 5 2 5 4 26 49 208 82 49 50 28 22 33 26 23 82 54 58 44 21 12 8 12 15 6 4 35 25 1 2 1 4 7 3 2 4 6 29 18 25 11 2 6 3 7 6 5 7 60 64 51 36 26 24 15 21 17 18 29 141 63 5 4 8 3 3 3 2 5 5 20 21 54 29 18 22 17 17 10 18 15 124 35 _ 4,051 104 657 .240 196 77 441 74 359 Yearly average (weeks)....... 27.2 43.0 21.5 22.7 38.7 41.0 34.0 38.4 32.0 T ota l i Includes occupations not shown separately. weeks and 22.7 weeks, respectively. Almost 30 percent of their total number were employed in the industry for less than* 6 weeks and about 22 percent were employed at least 46 weeks. The hours worked within these weeks were fairly high, on the average. The tabulation below shows that average weekly hours worked during the year for all employees amounted to 39, with a range among the selected occupations from 37 for singer operators to 46 for knitters. Cutters worked sufficient overtime to give them an average Workweek of 44 hours, and pressers had an average workweek of exactly 40 hours. Number Average of weekly workers hours All workers___________________________ 4, 051 39. 0 Selected occupations: Cutters________________ Examiners and trimmers__________ Folders and packers______________ Knitters__________________________ Menders_________________________ Merrow operators________________ Pressers__________________________ Singer operators__________________ 44. 0 38. 0 38. 5 46. 0 38. 5 37. 5 40.0 37. 0 104 657 240 196 77 441 74 359 A N N U A L E A R N IN G S Workers who were employed at least 46 weeks in the knittedouterwear industry in Philadelphia had average gross annual earnings of $1,739 in 1943 (table 2). Actual gross annual earnings ranged from $642 to $5,508, and over three-fourths of the total group had earnings of at least $800, but less than $2,200. Almost all of the others aver aged more than the latter figure. Because of pay-roll deductions for various purposes, the net amounts taken home by these workers were, of course, substantially less than the gross earnings. 4 T able 2.— D istribution o f W orkers Em ployed 46 W eeks or M ore in Philadelphia K nitted « Outerwear Industry D uring 1943 , by A nnual Earnings Selected occupations Classified annual earnings $600 to $799........................... $800 to $999........................... $1,000 to $1,199...................... $1,200 to $1,399...................... AH Exam work Mer Folders ers1 Cutters iners row Pressers Singer and and Knitters Menders opera opera trim packers tors tors mers 4 33 46 24 21 4 1 2 2 13 21 9 6 3 2 1 $2,000 to $2,199...................... $2,200 to $2,399...................... $2,400 to $2,599...................... $2,600 to $2,799...................... $2,800 to $2,999...................... $3,000 to $3,199...................... $3,200 to $3,399...................... $3,400 to $3,599...................... $3,600 to $3,799...................... $3,800 to $3,999...................... $4,000 to $4,199...................... $4,200 and over_______ ____ 9 118 196 169 199 165 123 104 70 64 48 35 25 21 13 3 11 3 4 Total........................... 1,380 75 136 60 124 47 Yearly average annual earn- • ings..................................... $1,739 $3,016 $1, 206 $1, 259 $2,601 $1,381 $1,400 t o $ 1 , 5 9 9 ___________ $1,000 t o $1,799 $1 ,ROO to $1,999 2 6 11 16 7 10 10 2 1 6 1 g 7 17 17 16 17 10 10 9 2 1 1 1 11 14 13 g 1 1 1 14 13 49 44 30 25 13 9 2 2 1 1 5 2 1 3 1 204 41 159 $1,811 $2,538 $1,678 2 3 2 4 1 2 2 1 4 3 8 7 8 2 1 8 10 21 33 37 13 18 10 4 * Includes occupations not shown separately. Cutters were the highest-paid workers in the industry, with average annual earnings of $3,016. Their hourly rates (table 3) were aug mented by considerable amounts of premium overtime pay. Exactly 72 percent of the cutters who worked at least 46 weeks had total earnings between $2,400 and $3,400 for the year. A number of those with earnings over $3,400 supervised the work of other workers in addition to performing their regular duties of cutting. In contrast, the group having the lowest annual earnings consisted of examiners and trimmers, with an average of $1,206. Nine of every 10 workers in this occupational group averaged between $800 and $1,600 for the year’s work, with over 58 percent averaging between $800 and $1,200. Knitters and pressers ranked second and third in average annual earnings with figures of $2,601 and $2,538, respectively. The former exceeded the latter despite the reverse relationship of their straighttime hourly earnings (table 3), because the knitters, as a group, put in more overtime at premium rates than did the pressers. The same sort of relationship existed between the merrow operators and the singer operators. Almost 69 percent of the combined machineoperating group (merrow and singer) earned between $1,400 and $2,200, on the average. In considering these annual-earnings figures by occupation, it is well to bear in mind that nearly all cutters, knitters, and pressers are males, while most of the workers in the other selected occupations are females. H O U R L Y E A R N IN G S The straight-time hourly earnings of 3,150 workers who were employed for at least 6 weeks in the Philadelphia knitted-outerwear 5 industry in 1943 averaged 72.8 cents (table 3). Individual averages ranged from the legal minimum of 40 cents to over $2.00 per hour. However, slightly more than half of the workers received less than 65 cents, over a third were paid less than 55 cents, and well oyer a fourth had earnings of less than 50 cents per hour. Comparatively well-paid workers were also numerous; about 16 percent of the 3,150 workers covered in the study had earnings of at least $1.00 per hour, on the average. T able 3.— D istribution o f W orkers Em ployed 6 W eeks or M ore in Philadelphia K nitted - _________ Outerwear Industry D uring 1943, by Straight-tim e H ourly Earnings________ Selected occupations Classified hourly earnings $0,400 to *0.449 $0 450 tn $0 499 |n .Wl tn $0 549 $o 550 tn $0590 $n ooo t.n $n fi4Q $0 650 tn $0,699 $0,700 tn $0,749 $0,750 tn $0 799 $0 son tn *0 849 $0 850 tn $0 899 $0 900 tn $0,949 $0 950 tn *0.999 $1 000 tn $1,049 $1,050 to $1.099...................... $1 100 tn $1,149 $1 150 tn $1 199 $1 900 tn *1249 $1 950 tn $1.999 $1300 tn $1,349 $1 350 tn $1,399 $1 400 tn *1449 $1.450 tn $1,499 ___. $1 500 tn $1 549 $1 550 tn $1,599 $1 OOO tn $1 049 $1 050 tn $1.099 $1.700 tn $1,749 ______ $1,750 tn *1.799 $1 800 tn $1 849 $1 850 tn $1.899 $1.900 tn $ 1 .949 _________ $1 950 tn $1 999 $2,000 and o v e r _____________ All Exam Mer work Folders row Pressers Singer ers1 Cutters iners opera and Knitters Mend and opera ers tors trim packers tors mers 512 352 271 249 203 178 183 138 144 168 138 111 99 101 69 57 48 24 23 13 17 6 8 6 9 8 3 3 2 1 1 2 15 20 19 5 7 1 1 4 5 2 5 1 47 53 30 14 9 9 6 3 3 2 1 1 1 1 1 1 6 2 1 16 49 31 15 17 5 7 5 5 4 4 3 3 1 2 3 2 7 15 15 8 14 4 2 4 1 i 1 1 5 9 16 23 25 22 38 35 35 31 34 33 18 16 12 19 6 5 1 1 2 1 1 1 1 5 2 6 3 4 5 6 3 3 8 4 3 3 6 1 2 2 6 13 9 21 14 25 14 15 22 26 27 20 27 15 17 11 5 5 3 2 1 1 2 4 3 2 1 6 2 3,150 103 Average hourly earnings___ $0. 728 $1.241 Total........................... 170 84 57 45 28 20 12 13 6 2 1 2 2 5 1 3 449. $0.524 182 171 76 390 69 305 $0. 531 $1.005 $0,652 $0,846 $1.172 $0,867 » Includes occupations not shown separately. Cutters were generally the highest-paid employees, with an average hourly rate of $1,241. Pressers ranked next, with an average of $1,172, and knitters were third with $1,005. Male workers are em ployed in these three occupations. Although pressing is not con sidered as skilled an occupation as knitting, the workers in this classi fication were able to raise their hourly earnings to a higher level be cause of favorable piece-work systems of wage payment. Knitters were usually paid on a time basis. Among the remaining five selected occupations, in all of which females were used almost exclusively, average straight-time hourly earnings ranged from 86.7 cents for singer operators to 52.4 cents for examiners and'trimmers. Singer and merrow operators and most of 6 the trimmers were paid on a piece-work basis, but all of the menders, most of the folders and packers, and most of the examiners, were paid hourly rates. All of the figures shown in table 3 exclude premiums for overtime work but include any payments for piece work or other incentive earnings. Quarterly changes in employment and in hourly earnings are shown for selected occupations in tables 4 and 5. In both of these tables a quarter represents a 13-week period rather than 3 calendar months. T able 4.— Average W eeks and W eekly Hours W orked in Selected Occupations in Phila delphia Knitted-Outerwear Industry, by Quarters, 1943 Occupation Third quarter Second quarter First quarter Fourth quarter Num Aver Aver Num Aver Aver Num Aver Avery Num Aver Aver age ber age ber age ber ber age age age age weekage of of of of weeks week- work weeks weekweeks week- work weeks work worked work worked . i y .l y i y iy hours ers worked hours hours ers worked hours ers ers Cutters................ Examiners and trimmers______ Polders and packe r s - .................. Knitters............... Menders............... Merrow operators. Pressers...... ......... Singer operators.. 93 11.7 44.0 97 11.8 45.5 93 12.2 42.5 97 12.3 44.0 388 8.8 38.0 388 9.3 39.0 372 9.1 37.5 328 9.9 39.5 113 157 69 362 58 329 10.8 11.8 12.1 11.4 11.1 10.5 38.5 44.0 39.0 37.0 40.0 37.5 131 156 69 367 59 291 9.8 12.1 12.1 11.3 11.9 11.2 41.5 47.0 38.5 37.5 44.0 34.0 143 161 64 360 56 297 9.0 11.4 11.1 10.5 11.6 10.2 39.0 43.5 40.0 36.0 42.5 36.5 152 146 59 358 60 290 9.2 12.2 12.1 11.0 11.9 11.0 37.0 45.5 40.0 37.5 41.5 37.5 T able 5.— Number o f W orkers and Straight-Time Average H ourly Earnings fo r Selected Occupations in Philadelphia Knitted Outerwear Industry, by Quarters, 1943 6 weeks or more 46 weeks or more 6 weeks or more 46 weeks or more employment employment employment employment Occupation Aver Aver Aver Aver Num Num Num Num age age age age ber of hourly ber of hourly ber of hourly ber of hourly workers earn workers earn workers earn workers earn ings ings ings ings First quarter Cutters................................................ Examiners and trimmers................... Folders and packers........................... Knitters.............................................. Menders............................................. Merrow operators............................... Pressers....... ....................................... Singer operators.................................. 91 307 102 150 69 317 57 254 $1.180 .505 .515 .951 .621 .818 1.130 .835 75 136 60 124 47 204 41 159 Second quarter $1.180 .527 .553 .956 .626 .832 1.124 .842 97 338 124 153 69 326 64 254 Third quarter Cutters................................................ Examiners and trimmers................... Folders and packers........................... Knitters..............._............................. Menders............................................. Merrow operators............................... Pressers.............................................. Singer operators................................. 93 331 134 152 67 325 61 251 $1,255 .530 .558 1.018 .664 .863 1.175 .877 75 $1,272 .594 136 .602 60 124 1.031 47 .664 204 .916 41 1.202 159 .911 $1,206 .531 .530 .989 .654 .850 1.157 .831 75 136 60 124 47 204 41 159 $1,220 .565 .573 .998 .664 .893 1.180 .892 Fourth quarter 94 300 123 146 58 311 60 244 $1.295 .536 .539 1.058 .700 .876 1.238 .896 75 136 60 124 47 204 41 159 $1,316 .627 .622 1.067 .692 .937 1.282 .887 There were only slight variations in total employment among the selected occupations. The most noticeable drop occurred during the4 7 last quarter when the total number of workers in the eight occupations was about 5 percent less than the total during the peak quarter, the first. This was caused primarily by reductions in the number of ex aminers and trimmers and singer operators. Similarly there was very little fluctuation in the number of weeks worked, on the average, or in the number of weekly hours. All of these figures indicate a relatively uniform work load in the industry throughout the year. As indicated in table 5, the straight-time hourly earnings increased progressively during the year. The fourth-quarter averages for those workers with 6 weeks or more of employment were higher than the first-quarter averages for each of the occupations, with a rise in menders’ earnings of 12.7 percent and in knitters, of 11.1 percent. Among those workers who had 46 weeks or more employment, the upward movement was generally more pronounced. The percentage increases from the first to fourth quarters for this category were generally greater than the comparable increases among all those working at least 6 weeks. It is also of interest to note that the averages for these workers having the longer tenure were usually greater than those for the whole group in each of the quarters. The upward movement of earnings during the year reflects in part the reduction in number and simplification of civilian styles, and the introduction of large Government orders for single-style items. Piece-work earnings tended to increase under these conditions and helped to stimulate changing the rates of the time workers. V. $ . GOVERNMENT PRINTING OFFICE: 194G