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Case Studies of
Displaced Workers
iixperiences of Workers After Layoff
Bulletin No. 1408
U N H ID S TA TIS DEPARTMENT OF LABOR
W . Willard Wirtx, Secretary
BUREAU O F LABOR S TA TIS TIC S
fw «n
Commissioner
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Case Studies of
Displaced Workers
Experiences of W orkers After Layoff
Bulletin No. 1408
UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU O F LABOR STATISTICS
Ewan Clague, Commissioner
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C., ^0402 - Price 50 cents
P r e fa c e
The d isp la ce m e n t o f w o r k e r s is too often one of the c o s ts o f in d u s
t r ia l p r o g r e s s . The fu ll extent of such c o s t s to individual w o r k e r s , h o w e v e r ,
is not alw ays r e c o g n iz e d . The B ureau o f L a b o r S ta tistics has con du cted
fiv e ca se studies o f the p o s t -la y o ff e x p e r ie n c e s o f c lo s e to 3 ,0 0 0 w o r k e r s
w ho had been e m p loy ed in d iffe re n t m anufacturin g in d u strie s in v a rio u s
re g io n s o f the cou n try.
The study is p art o f the B ureau o f L a b o r S ta tistics r e s e a r c h p r o
g ra m on the im p lica tio n s o f te ch n o lo g ica l and oth er chan ges and is d esig n ed
to support the a ctiv itie s of the D epartm en t o f L a b o r and of oth er a g e n cie s
in ca rry in g out the o b je c tiv e s of the M anpow er D ev elop m en t and T rain in g
A c t.
The B ureau o f L a b o r S ta tistics a p p re cia te s the c o o p e ra tio n of the
com p a n ies and unions in v o lv e d , and the individual d is p la c e d w o r k e r s who
p ro v id e d the in fo rm a tio n upon w hich this re p o rt is b a se d . The B ureau is a lso
g ra te fu l to the B ureau o f E m p loym en t S ecu rity and to lo c a l o ffic e s o f State
em p loy m en t s e r v ic e a g e n cie s w hich fu rn ish ed data fo r the study.
The b u lletin w as p re p a re d by H e rb e rt H a m m erm a n under the s u p e r
v is io n o f E dgar W e in b e rg , C h ief, D iv is io n o f T e c h n o lo g ic a l Studies, under
the g e n e ra l d ir e c tio n o f L e o n G r e e n b e rg , A ssista n t C o m m is s io n e r fo r
P ro d u ctiv ity and T e c h n o lo g ic a l D e v e lo p m e n ts. The su rv e y s w e re conducted
and data tabulated by J a m es F . W a lk er, C hief o f the B ranch o f L a b or
R e q u ire m e n ts, a s s is te d by L eon R. K aye.
111
CONTENTS
P age
I.
In trodu ction and s u m m a r y ..........................................................................
I n t r o d u c t i o n ........................................................................................ . .
S u m m a r y ...........................................................................................................
F a c to r s in flu en cin g d i s p l a c e m e n t ...................................................
L a b o r m a rk et c o n d i t i o n s ......................................................................
M e a su r e s to p rev en t d i s p l a c e m e n t ...............................................
M e a su re s to help d isp la c e d w o r k e r s find j o b s .......................
M e a su re s to m aintain i n c o m e ............................................................
P e r s o n a l c h a r a c t e r is t ic s o f the d isp la c e d w o r k e r s . . . .
Job hunting e x p e r ie n c e ..........................................................................
Job e ffe c ts of d is p la c e m e n t .................................................................
1
1
2
2
2
2
3
4
5
5
8
II.
A la y o ff at a m o d e r n iz e d p e tro le u m r e f i n e r y .....................................
D e s crip tio n o f p l a n t ....................................................................................
M e a su re s to e a se d is p la c e m e n t ............................................................
P e r s o n a l c h a r a c t e r is t ic s of the d isp la ce d w o r k e r s ...................
Job hunting e x p e r i e n c e ...............................................................................
Som e jo b e ffe c t s of d i s p l a c e m e n t ........................................................
11
11
11
12
14
21
III.
A c lo s e d au tom otive equipm ent p la n t ........................................................
D e s crip tio n o f p l a n t ....................................................................................
M e a su re s to e a se d is p la c e m e n t ............................................................
P e r s o n a l c h a r a c t e r is t ic s of the d isp la c e d w o r k e r s ...................
J ob hunting e x p e r i e n c e ...............................................................................
Som e jo b e ffe c ts o f d isp la ce m e n t ........................................................
23
23
23
26
27
43
IV .
P a rtia l c lo s in g o f a g la ss ja r p l a n t ........................................................
D e s crip tio n o f the p l a n t ..........................................................................
M e a su re s to e a se d is p la c e m e n t .............................................................
P e r s o n a l c h a r a c t e r is t ic s of the d isp la ce d w o r k e r s ...................
J ob hunting e x p e r ie n c e ...............................................................................
Som e jo b e ffe c t s of d i s p l a c e m e n t ........................................................
47
47
48
49
51
62
V.
A c lo s e d flo o r c o v e r in g p l a n t .....................................................................
D e s crip tio n o f p l a n t ....................................................................................
M e a su r e s to ea se d is p la c e m e n t .............................................................
P e r s o n a l c h a r a c t e r is t ic s of the d isp la ce d w o r k e r s ...................
Job hunting e x p e r ie n c e ...............................................................................
Som e jo b e ffe c ts of d i s p l a c e m e n t ........................................................
65
65
65
67
69
76
v
CONTENTS - - Continued
P age
VI.
The c lo s in g o f two ir o n f o u n d r i e s .............................................................
D e s c r ip tio n o f the p l a n t s .......................................................
M e a s u r e s to ea se d is p la c e m e n t ............................ .... ............................
P e r s o n a l c h a r a c t e r is t ic s of the d isp la c e d w o r k e r s ...................
Job hunting e x p e r ie n ce
...........................................................................
Som e jo b e ffe c ts o f d i s p l a c e m e n t ................................................... .
79
79
79
80
82
87
A p p en d ixes
A.
B.
S cop e and m e t h o d .........................................................................................
B ib lio g ra p h y o f d isp la c e d w o r k e r s t u d i e s ............................
89
93
T a b le s
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
P e tr o le u m R e fin e r y --R a n g e o f se p a ra tio n p ay o f d is p la c e d
w o r k e r s and a v e ra g e paym ent, by age g r o u p ....................... .
P e tro le u m R e fin e r y --S e le c t e d c h a r a c t e r is t ic s and e m p lo y
m ent status of d is p la c e d w o r k e r s ....................................................
P e tro le u m R e fin e r y --D u r a tio n o f u n e m p lo y m e n t............................
P e tr o le u m R e fin e r y --E m p lo y m e n t o f d is p la c e d w o r k e r s
b e fo r e and a fte r term in a tion , by o c c u p a t i o n ............................
P e tr o le u m R e fin e r y --T y p e s o f in d u strie s p ro v id in g
cu r re n t j o b s .............................................................................................
P e tr o le u m R e fin e r y --C h a n g e in ea rn in gs le v e l . . . . . . .
A u tom otiv e E quipm ent P la n t--U n e m p lo y m e n t in su ra n ce and
su p p lem en tary u n em ploym ent b en efits . . . . . .
Q . .
.
A u tom otiv e E quipm ent P la n t --S e le c t e d c h a r a c t e r is t ic s and
em p loy m en t status o f d is p la c e d w o r k e r s ......................................
A u tom otiv e E quipm ent P la n t--E m p lo y m e n t o f d is p la c e d
w o r k e r s by age group and ed ucational l e v e l . . . . . . . .
A u tom otiv e E quipm ent P la n t--E m p lo y m e n t status of
d is p la c e d w o r k e r s by se x and age g r o u p .......................................
A u tom otiv e E quipm ent P la n t--E m p lo y m e n t status o f
d is p la c e d w o r k e r s by se x and ed u cation al l e v e l ........................
A u tom otiv e E quipm ent P la n t--E m p lo y m e n t b e fo r e and
a fter term in a tion , by o ccu p a tio n (e x clu d e s t r a n s fe r r e d
w o r k e r s ) ......................................................................................................
A u tom otiv e E quipm ent P la n t --T y p e s o f in d u strie s p ro v id in g
cu r re n t j o b s .............................................................................................
A u tom otiv e E quipm ent P la n t --S e le c t e d c h a r a c t e r is t ic s o f
w o r k e r s who t r a n s fe r r e d to other plants o f the com p an y
co m p a r e d with all d isp la c e d w o r k e r s ...........................................
A u tom otiv e E quipm ent P la n t--C h a n g e in ea rn in gs le v e l
. . .
vi
13
15
16
18
19
22
25
28
31
34
35
36
37
40
44
CONTENT S - - Continue d
Table s - - Continued
Page
16* Glass Jar Plant--Selected characteristics and employment
status of displaced w orkers..............................................................
17. Glass Jar Plant--Employment status of displaced workers,
by sex and age group . .......................................................................
18. Glass Jar Plant--Employment status of displaced workers,
by sex and educational l e v e l ............................................
19. Glass Jar Plant--Employment status of displaced workers,
by educational level and age group.................................................
20. Glass Jar Plant--Employment before and after termination,
by occupation........................................................................................
21. Glass Jar Plant--Types of industries providing current jobs .
22. Glass Jar Plant--Change in earnings l e v e l ............................... .
23. Floor Covering Plant--Selected characteristics and employ
ment status of displaced w o r k e r s .................................................
24. Floor Covering Plant--Duration of unemployment......................
25. Floor Covering Plant--Employment status of displaced
workers, by selected age group and educational level . . .
26. Floor Covering Plant--Employment before and after
termination, by occupation..............................................................
27. Floor Covering Plant--Types of industries providing
current j o b s ........................................................................................
28. Floor Covering Plant--Change in earnings le v e l...........................
29- Foundries--Selected characteristics and employment status
of displaced w orkers...........................................................................
30.
Foundries--Duration of unemployment...........................................
31 o Foundries--Employment status of displaced workers by
selected age group and educational level . ...............................
32. Foundries--Employment before and after termination, by
o ccu p a tio n .............................................................................................
33. Foundries--Types of industries providing current jobs . . . .
34. Foundries--Change in earnings le v e l.................................................
50
53
54
56
59
60
62
68
69
72
73
74
76
81
82
84
85
86
87
Charts
1.
2.
3.
4.
Petroleum Refinery--Personal characteristics of displaced
w o r k e r s .................................................................................................
Automotive Equipment Plant--Personal characteristics of
displaced w ork ers................................................................................
Automotive Equipment Plant--Long-term unemployed as
percent of total displaced w orkers.................................................
Automotive Equipment Plant--Unemployment b y --sex,
education, and age group..................................................................
vii
14
27
29
33
CONTENT S - - Continue d
Charts - - Continued
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Page
Automotive Equipment Plant--Comparison of selected
characteristics of transferred workers and all displaced
w o r k e r s .................................................................................................
Automotive Equipment Plant--Change in earnings of reem
ployed workers, by age and ed u cation ........................................
Glass Jar Plant--Personal characteristics of displaced
w o r k e r s .................................................................................................
Glass Jar Plant--Long-term unemployed as percent of total
displaced w o rk e rs.............................................................
Glass Jar Plant--Unemployment b y --sex, age, and education .
Glass Jar Plant--Change in earnings of reemployed workers,
by age and education...........................................................................
Floor Covering Plant--Personal characteristics of displaced
w o r k e r s .................................................................................................
Floor Covering Plant--Long-term unemployed as percent
of total displaced workers, by age and e d u c a tio n ..................
Floor Covering Plant--Change in earnings of reemployed
workers, by age and e d u c a tio n .....................................................
Foundries--Personal characteristics of displaced workers . .
viii
39
45
49
52
55
63
67
70
77
80
CASE STUDIES OF DISPLACED WORKERS
I.
Introduction and Summary
Introduction
The experience with technological change in this century has demon
strated its long-term beneficial effects in terms of increased productivity,
faster economic growth, more jobs, and higher wages and employee benefits.
However, where technological change has been accompanied by plant
shutdowns or mass layoffs, it has had serious adverse effects on individual
workers.
The Bureau of Labor Statistics has conducted five case studies of the
effects of plant shutdowns or large-scale layoffs related in part to technologi
cal change in recent years. These studies concern plants in the following
manufacturing industries: petroleum refining, automotive equipment, glass
jars, floor coverings, and iron foundries. The plants were located in six
areas (4 in the Midwest, 1 in the East, and 1 in a Mountain State). The
number of workers displaced totaled close to 3,000, ranging from about 100
in one plant to more than 1,000 in another. The layoffs took place over the
period July I960 through June 1962. The surveys were conducted between
April 1962 and April 1963; and the periods between surveys and layoffs
ranged from 6 to 21 months.
These case studies supplement studies of displaced workers which
have been made over the years and which reflect varying economic conditions.
Noteworthy among industries covered by some recent studies were meatpack
ing, newspaper publishing, railroad equipment, textiles, and automotive
equipment. Appendix B lists a number of displaced worker studies conducted
prior to and after World War II.
This chapter summarizes the highlights of the findings from the five
case studies. It covers the causes of displacement; labor market conditions
at the time of displacement; measures taken to prevent displacement and
help workers find jobs and maintain income; the characteristics of the dis
placed workers; their job hunting experiences; and some job effects of
displacement.
In the subsequent sections, each of the cases is
the outline indicated above. The analysis points up the
selected personal characteristics (age, education, etc.
experience. The scope and method of conducting these
in Appendix A.
described following
relation between
) and reemployment
studies are explained
z
Summary
This section compares data for the different case studies, to bring
out any consistent patterns or contrasts. Some generalizations have been
made, but it should be noted that the data in the separate case studies have
not been combined statistically.
Factors Influencing Displacement
The experience in attempting to select cases for study of worker
displacement due uniquely to technological change clearly indicates that such
cases are difficult to find. Although technological change was a factor in
each of the five cases studied, it was by no means the sole factor. Along with
an outmoded production process, a change in consumer demand to a product
using a different material, or an old and outmoded plant, other factors such
as the loss of an important industrial customer or a history of labormanagement conflict were involved. In each instance, it was extremely
difficult to determine which factor or factors had a decisive influence on the
ultimate decision to shut the plant or lay off workers.
Labor Market Conditions
The plants were located in six substantially industrialized and highly
diversified areas. The smallest area had a labor force of a little under
50,000; the largest, well over 500,000. Unemployment rates at the time of
the layoffs were in excess of or close to the "relatively substantial unemploy
ment" level of 6 percent in 5 of the 6 areas. Subsequently, conditions improved
and, by the time the surveys were conducted, unemployment had declined
substantially in each of these five areas.
Measures to Prevent Displacement
Layoffs may be prevented or minimized by various means such as:
the use of attrition, i .e . , quits and retirements, to reduce the work force; the
early retirement of older workers; spreading available work by measures
such as the elimination of overtime; and timing the change to take place during
periods of business expansion. Four of the case studies involved plant
shutdowns where none of these means was used. In the fifth case, more than
half of the projected employment reduction was achieved by attrition. No new
employees were hired for over 3 years before the first group of employees
were laid off. The same firm , the oil refinery, also induced older workers
(over age 51), not scheduled for layoff under the seniority regulations, to
retire early by offering them a substantial "age allowance" as a separation
payment in addition to their regular severance pay and to an immediate annuity.
In that case, 1 out of 6 of the displaced workers accepted early retirement and
thereby saved the jobs of a like number of younger workers.
3
Measures to Help Displaced Workers Find Jobs
By far the most effective source of assistance in locating jobs appears
to have been personal contacts* From one-half to two-thirds of the displaced
workers responding to this question stated that nfriends or relatives” was the
source responsible for finding their jobs. Relatively few workers credited
the State employment service with locating their jobs. However, employ
ment service records in one case indicate that some workers may have
understated the help given them by the employment service.
The nature and extent of assistance in finding jobs given displaced
workers by their employer varied considerably from case to case, depend
ing on management attitudes, the history of labor-management relationships,
and union contract provisions. In four of the cases, the majority of the
workers were represented by unions affiliated with the American Federation
of Labor and Congress of Industrial Organizations (AFL-CIO); in the fifth case
there was an independent union. Types of assistance used in one or more of
the case studies included: early notice of the impending layoff; placement
services; interplant transfers; retraining programs; and in-plant reassign
ments and transfers.
Early Notice. One firm ceased new hiring 3 years before the layoffs
began, notified the workers well in advance of termination, and phased out the
layoffs over a period of a year. In all other cases, notice was considerably
shorter. The longest advance notice was 6 months; the shortest, little more
than 2 months.
Placement Services. Substantial and effective assistance in securing
jobs for displaced workers was given in only two cases, in one by the com
pany and in the other by the union. The oil company assisted in placing work
ers through its own employment office and also entered into an agreement to
pay the placement fees of two private employment agencies. The company
stated that it had assisted one-third of the reemployed workers in locating
their jobs, although one-half of those so placed were no longer working on
those particular jobs at the time of the survey. In another case, that of the
automotive equipment plant, the union invited all displaced members to fill
out a job referral form which was circulated among companies with which it
had contracts. As a result of these efforts, approximately 200 out of more
than 1,000 displaced workers were employed by companies under contract to
the union.
Interplant Transfers. Although all five companies were multiplant
firm s, only two offered interplant transfers, in both instances under union
negotiated plans. In neither instance were relocation allowances granted. In
one case, the contract with the major union representing production and
maintenance workers provided that, if the company shut down a plant and
transferred its operation to another plant, the employees would be given an
opportunity to transfer to the other plant with their jobs. They would be
credited with full seniority for layoffs and recall as well as for economic
4
benefits such as pensions and vacation. In the second case, the contract
required only the transfer of economic benefits, but no job security bene
fits. The importance of job security to the displaced workers is indicated
by the fact that a much larger proportion of eligibles accepted transfer in
the first case than in the second, despite the fact that the new plant was
twice as far away. Some effects of these provisions are discussed in the
subsequent section on ’’mobility and reemployment. ”
Employer Retraining Programs. None of the five employers adopted
programs to retrain displaced workers for jobs elsewhere. One company
publicly announced the establishment of a $ 100, 000 retraining fund shortly
after announcing the impending shutdown; but the program was not imple
mented. About 30 percent of the displaced workers registered for training.
The company reported that for over 70 percent of the registrants, there was
no reasonable prospect for job placement after retraining because of age,
inadequate schooling, or low scores on aptitude tests. It stated that many
were not willing to train for service jobs paying much lower wages than they
had been receiving, and that few were willing to give up unemployment com
pensation and supplementary unemployment benefits, for which they would
have been disqualified under existing regulations, while engaged in a full
time training program.
Inplant Reassignments and Transfers. In one instance, where a sub
stantial number of workers were laid off but the plant was not closed, the
persons to be laid off were determined on the basis of plantwide seniority.
This procedure left numerous vacancies which were filled by reassignment,
transfer, and retraining of the employees remaining with the plant.
Measures to Maintain Income
Unemployment Insurance. The most important source of income for
the displaced workers was unemployment insurance. In four cases, the
number receiving such benefits ranged from 69 to 94 percent of the total, for
an average of from 18 to 27 weeks. Even in the fifth case, with relatively
low unemployment at the time of the survey, close to half of the workers
received U .I. benefits.
Supplementary Unemployment Benefits. These benefits had been
negotiated in only one case. By the time of the survey, benefits had been
received by 2 out of 3 of the displaced workers of that company for an average
of 22 weeks.
Severance Pay. Some form of severance pay was obtained by displaced
workers in 4 of the 5 cases, but in only one in sufficient amount to be of sub
stantial assistance in a period of protracted unemployment. The oil refinery
paid a ’’ service allowance” based on weekly base pay and length of service.
The lowest amount paid to any of the displaced workers was in excess of $ 600.
5
Early Retirement Pay. While the pension program in each case pro
vided for early retirement at age 60 or sooner, in only two cases did more
than a very small proportion of the displaced workers benefit from this
provision. One involved a substantial number of older workers and, in a
period of 14 months after the shutdown was announced, pensions were paid
to 375 workers, 283 of them in the major bargaining unit. The bulk of them
were for early retirement; otherwise, for normal or disability retirement.
It should be noted that, with the payment of these pensions, the pension fund
was not sufficient to cover the vested rights of the younger workers. Under
contract provisions, therefore, deferred pensions were substantially reduced
for those in the 50-59 age group and were wiped out for those under 50. In
the second case, a contributory plan provided immediate or deferred annuities
for those with 10 or more years of service regardless of age. Ninety percent
of the laid-off workers 55 years old and over received immediate annuities
and another 5 percent, deferred annuities. One out of 3 displaced workers
under 55 received immediate or deferred annuities.
In all other cases, many workers with long service who had been
accumulating pension rights lost those rights entirely.
Personal Characteristics of the Displaced Workers
The average displaced worker was a white male in his late forties.
He had some high school education; was married, owned his home, and had
two dependents. Women accounted for 2 out of 5 workers in one case, 1 out
of 5 in another, and insignificant proportions in the others. In no case did
nonwhites exceed 7 percent of the total. While most workers were age 45 or
over, the proportion in this category varied from 21 percent in one case to
94 percent in another. In four of the cases, a majority of the displaced
workers had at least some high school education; in all but one case the
proportion of graduates was relatively small.
Job Hunting Experience
The search for a job was a difficult experience for many displaced
workers. For a large number it was fruitless. Most of the displaced work
ers had had long years of service in a particular line of work. Many were
ill-prepared for the strenuous efforts of job hunting. The evidence indicates,
however, that most made the effort with the following results:
Employment and Unemployment. Only 2 out of 3 of all 3, 000 displaced
workers in the 5 cases studied were employed at the time of the surveys, and
in the separate cases the proportion ranged from one-half to four-fifths.
One-tenth were retired or for other reasons not seeking employment. Close
to 1 out of 4 were seeking employment but were unemployed. The rate of
unemployment varied from a low of 8 percent in one case to a high of 39 per
cent in another. In each case, it was substantially higher than the unemploy
ment rate in the labor market area as a whole (ranging from 3 to 5 percent).
In 5 of the 6 areas, it was more than 5 times the area unemployment rate.
6
There was substantial long-term unemployment. In four cases,
workers unemployed 16 weeks or more at any time between the layoff and
survey constituted over half of the displaced workers; in two of those cases,
it was two-thirds. In the same four cases, those unemployed a half-year or
more ranged from over two-fifths to more than half.
A substantial proportion of the displaced workers in the surveys had
held no jobs at all from the time of their layoff. A considerable number,
however, ranging from 1 out of 8 to about 3 out of 8, had changed their jobs
and had held 2 or more jobs.
Early Withdrawals from the Labor Force. Sizable numbers of dis
placed workers, ranging from 9 to 14 percent of the total, indicated they were
no longer seeking employment. Such withdrawals from the labor force repre
sented substantial proportions of workers in the 60-64 age group. It seems
clear that many found themselves compelled to end their careers as wage
earners earlier than they had planned. At best, their withdrawal meant early
retirement with pensions below the amount which would have been due them
at normal retirement and a lower income than had been anticipated. In many
instances, particularly in the case of women, older workers without pensions
withdrew because of their inability to obtain jobs.
Age and Reemployment. Unemployment was markedly higher among
workers of age 45 and over than among younger workers. In two cases,
where finer age breakdowns were feasible, by far the highest unemployment
rates were found in the 55-59 age groups. A substantial proportion of work
ers in the 60 and over age groups were not seeking work. A considerable
number of these had taken early retirement benefits. Many others may have
been discouraged from looking for work, foreseeing age discrimination.
More displaced workers volunteered comments on the subject of such dis
crimination than on any other subject in each of the five cases. Most were
workers in their fifties or above; but many were younger.
Education and Reemployment. Displaced workers who had completed
high school had substantially lower unemployment rates than those who did
n ot--less than half in three cases. The differences in unemployment rates
between those who had no high school and those who had some were smaller.
High school education seemed, from case to case, to have helped
older workers obtain reemployment. In general, among older workers, high
school graduates fared better than nongraduates; and workers with some high
school had lower unemployment rates than those with no high school. Work
ers not seeking employment were found for the most part among the less
educated. The combined handicap of inadequate education and older age
caused many to withdraw from the labor market before they normally would
have retired.
7
Reemployment of Women. The rate of unemployment among women
was almost 3 times that among men in the two cases where meaningful com
parisons were possible. Only one-fourth of the displaced women workers
were employed, in both cases. In one, almost 7 out of 8 women, compared
with 1 out of 3 men, had been out of work a half-year or more. In the other
case, the ratio was 2 out of 3 women compared with 1 out of 4 men. Likewise,
displaced women workers in the two cases had a much higher unemployment
rate than men at each educational level and at each age group under 60. A
larger proportion of women than men in the 60-64 age group were not seeking
employment. The impact of discrimination because of age would seem to have
been felt earlier among women than among men. The highest level of unem
ployment was reached by women at age 45-54, by men at age 55-59.
Skill Level and Reemployment. All case studies reveal a higher
unemployment rate among the less skilled workers. Unemployment ranged
from none to 33 percent among maintenance workers, from 8 to 39 percent
among machine operators, and from 20 to 59 percent among laborers. A
similar pattern was revealed when hourly earnings were used as a rough
measure of skill. In these studies, most of the unemployed were found at the
lowest earnings levels.
Industries Providing Jobs. Very few displaced workers were able to
find jobs in the same industry. In four cases, such workers constituted, at
the most, no more than 1 out of 5 of the total reemployed. In two cases, the
bulk of such placements were due to interplant transfers under union contracts.
Most reemployed workers, except in one of the cases, did secure
jobs in manufacturing industries. However, substantial proportions, ranging
from about 1 out of 4 to almost 3 out of 5, found employment in nonmanu
facturing industries (including government).
Mobility and Reemployment. For most workers, it was necessary to
look outside their home area to obtain a job in the same industry. That
willingness to move was a positive factor in obtaining employment is also
indicated by the fact that greater proportions of employed workers than unem
ployed had sought work outside their home cities.
The two cases involving interplant transfers cast some light on
inducements and obstacles to worker mobility. Only the guarantee of job
protection--the transfer of full seniority rights--was sufficient to induce a
substantial number of displaced workers to undertake relocation. Even in
that case, a large majority of the displaced workers did not accept relocation.
Relatively few workers were willing to transfer with accumulated rights to
pensions, vacation, and other economic benefits, but no seniority on layoffs.
However, the need to conserve rights to pensions and other employee benefits
was one among other inducements to relocate, such as age discrimination
by local employers, and the economic pressures of larger families.
8
Obstacles to mobility included: home ownership; family and social
ties; the secondary role in the family of the job of the displaced woman
worker; children in school; uncertainty regarding the company's intentions;
and fears of future layoffs. Another factor impeding mobility was the high
cost of transfer. Apart from costs of relocation, many transferred workers
found it necessary or expedient to maintain two homes and to commute
between areas on weekends, at least in the first year after transfer.
Training and Reemployment. Only a small number of displaced
workers, ranging from 2 to 7 percent, took any training courses, other than
on-the-job, after displacement. Nevertheless, a large majority indicated
that they would be interested in taking a training course if they did not have
to pay for it. Many men were interested in learning special skills such as
welding, electronics, auto mechanics, and machine repair. Women empha
sized office and clerical occupations and nursing.
Job Effects of Displacement
Besides long-term unemployment, displaced workers who found jobs
experienced lower earnings, work of lower skill, loss of employee benefits,
and loss of seniority protection.
Effects on Earnings. A majority of those who obtained reemployment
accepted reduced hourly earnings. In each of the five cases, more than half
of the reemployed workers had lower earnings, with the ratio as high as 4 out
of 5 in one case. Moreover, many workers took a substantial decline in
earnings, amounting to at least 20 percent. Those who did so constituted at
least 1 out of every 4 reemployed workers, and in one case were more than
half of the total. In contrast, only small proportions of the reemployed
achieved higher earnings.
Older workers who obtained employment experienced a greater
decline in hourly earnings than younger workers. The proportion of workers
whose earnings had dropped at least 20 percent increased substantially after
age 45. Also, by the same measure, the workers with the least schooling
took the sharpest cuts in wages.
In each case studied, the proportion of wives who were working
increased after the layoff. In most cases, the greater part of the increase
was in part-time rather than full-time jobs.
Effects on Employee Benefits. In their comments on the question
naire s , ~3IspIaceH~worir^^
complained, often bitterly, of the loss
of employee benefits. This was considered one of the most serious hardships
resulting from worker displacement, since most workers were at least partly
dependent upon such benefits for security to themselves and their families in
old age or in illness. Moreover, many types of benefits are based upon length
9
of service and workers obtaining other employment had to start anew in
accumulating rights. Most of the reemployed workers indicated that employee
benefits on their current jobs were less favorable than on their previous jobs.
Changes in Type of Job. As a concomitant of the loss in earnings,
many of the displaced workers experienced a downgrading of skill. This was
truer of semiskilled than of skilled occupations. While in four cases the
change in jobs for a majority of workers in maintenance occupations meant
no change in occupational group, in no case did as many as one-third of the
machine operators obtain jobs in the same occupational group. Substantial
proportions of the operators who were reemployed were working as laborers
or in custodial jobs.
Effect on Union Membership. The layoffs had a serious impact on
membership in labor unions. Prior to displacement, some 9 out of 10 of the
displaced workers were union members. By the time of the surveys,
membership in unions was reduced to no more than 1 out of 3 in two cases
and in no event more than slightly higher than 2 out of 3. The highest propor
tion of retention of union membership by displaced workers was found among
displaced workers of a plant where substantial numbers were either trans
ferred to another area under union contract or obtained jobs at unionized
plants with the assistance of the union. Part of the decline in union member
ship was due to the substantial proportion of displaced workers who were
unemployed or not seeking employment at the time of the surveys. However,
even when consideration is limited only to those workers who had found jobs,
the figures still show a substantial drop in union membership, resulting in a
range of membership of from two-fifths to three-fifths of all reemployed
workers. An important reason for this decline is the fact that many of the
new jobs were in unorganized industries or plants, and workers in such jobs
were no longer eligible for membership in the union to which they had
belonged.
Effects on Seniority. Displacement resulted in loss of benefits that
long service conferred on individuals. The large majority of the displaced
workers had over 10 years of seniority. In some plants, substantial propor
tions had longer service. Workers with at least 20 years of seniority
amounted to 1 out of 4 in one plant, 1 out of 3 in a second, and 7 out of 8 in a
third. The loss of seniority meant the loss of protection in layoffs for
reemployed workers.
11
II.
A Layoff at a Modernized Petroleum Refinery
A petroleum refinery in the Midwest replaced obsolete with more
efficient equipment. The jobs of 800 workers were terminated during a
14-month period, from September I960 through October 1961. The survey
on which this study is based was conducted in April 1962, from 6 months
to over a year and a half after the terminations.
Description of Plant
The refinery was over 70 years old. The replacement of obsolete
with modern equipment had been proceeding since 1956. For example, a
single 140, 000-barrel-a-day crude oil refining unit which started up in
1959 replaced 10 smaller capacity units and required only 11 percent as
many workers. Altogether, about 1,800 jobs had been eliminated between
early 1958 and October 1961. In March 1962, employment was 5,200.
The plant is located in a highly industrialized metropolitan area.
Manufacturing employment in the area is close to one-half its labor force,
and the bulk of manufacturing employment is in the primary metal indus
tries. During the period of the layoff, the unemployment rate for the area
ranged from 4. 6 to 9. 9 percent, and averaged 7 .8 percent. At the time of
the survey, April 1962, the rate was 4 .7 percent.
Measures to Ease Displacement
Management took several steps to ease the impact of employment
reductions on the workers. The workers were represented by an inde
pendent union.
Attrition. First, all hiring was stopped beginning in m id -1957. Soon
thereafter, staffing reductions were projected and estimates were made of
the number of jobs which would be vacated by quits, deaths, and retirements.
More than half of the 1,800 total reduction was accomplished through attri
tion. The 800 workers who were to be laid off were informed several
months in advance and were terminated on a scheduled basis.
Seniority System. The workers to be displaced were selected on the basis
of a plantwide seniority system. The company had hired all workers as
laborers, and promoted them to higher level jobs as they were trained.
Workers were chosen for dismissal on the basis of least seniority in the
plant, regardless of the jobs performed. Those remaining were offered
retraining by the company to fill vacated positions. The company set up an
80-hour training course on work time, prepared a 300-page textbook, and
used movies, film strips, demonstrations, and field trips. Several weeks
of on-the-job training were given. No age limit was set on retraining.
12
Separation Payments. Close to half of the displaced workers received unem
ployment insurance benefits. Two forms of severance pay were given by the
company: First, a "service allowance" was computed by multiplying total
years of service, minus 2, by 75 percent of weekly base pay--reduced by
1/84 for each month after the worker’ s 58th birthday. A worker under age
58, earning $ 3.00 an hour (close to the average rate), with 12 years of
service, would have received a service allowance of $ 900. The lowest
service allowance actually paid to the workers included in the survey was
a little over $ 600.
Second, a "supplemental age allowance" was paid to workers over
age 51 who voluntarily retired, regardless of their length of service. A
maximum of $ 4,800 was paid at age 58, with the amount gradually scaled
down toward zero at age 51 on the one hand and at age 65 on the other.
For example, a worker voluntarily retiring at age 56 would have been paid
a supplemental age allowance of $ 3,428. If his hourly rate was $ 3. 00 and
his seniority 25 years, he also would have received a service allowance of
$ 2, 070. His total separation pay would have amounted to $ 5,498.
Table 1 shows the distribution of total separation payments received
by the terminated workers, by age groups. The highest separation pay
among the workers surveyed was in excess of $ 8,400. In addition to the
separation payments, participants in the company retirement plan with 10
or more years of service were permitted to take an immediate or a deferred
paid-up annuity, based on both the worker’ s and the company's contributions
to the plan. About 1 out of 6 workers under age 55 received immediate
annuities and another 1 out of 6 were eligible for future payments. Ninety
percent of those 55 and over received immediate annuities and another 5
percent were eligible for future annuities.
Placement. The refinery's employment office assisted displaced workers
in locating other employment. About 600 other employers in the area were
contacted. The refinery also contracted to pay the employment fee charged
by two private employment agencies.
Personal Characteristics of the Displaced Workers
All of the workers released by the refinery were men, and nearly
all were of the white race and were married. (See chart 1 and table 2. )
Close to two-fifths were under 35 years of age, and a little more than the
same number were between age 35 and 44. Only one-fifth were 45 years of
age or over.
Nearly three-fifths had 3 or more dependents. Four-fifths of the
total owned their own homes. Over a majority of the workers were high
school graduates or had some college. Very few, mostly older workers,
had no high school education.
Table 1.
Petroleum Refinery--Range of Separation Pay of Displaced Workers and Average
Payment, by Age Group1
Age group
Percent of workers receiving--
All
Average
displaced
separation
workers
(percent)
pay
Total
$500$999
$ 1 ,0 0 0 - $ 3 ,0 0 0 - $ 5 ,0 0 0 $6 ,9 9 9
$4 ,999
$2 ,999
2
All displaced workers
100
$ 1 ,5 0 4
100
51
39
Less than 35 y e a r s .........
37
896
100
67
33
35-44 years ......................
42
1„ 000
100
46
54
45-54 years .................. .. .
10
1,207
100
61
33
6
55 years and o v e r ...........
11
5, 640
100
5
9
14
$7,000
and
over
3
5
--
----
45
27
1 Separation pay consists of: (1) for all workers, a "service allowance" based on length of
service and weekly base pay; and (2) for workers between age 51 and 65 terminating voluntarily,
a "supplemental age allowance" up to $4 ,800 at age 58.
14
C h a r t 1. Petroleum R e fin e ry — P e r s o n a l C h a ra cte ristics o f D is p la c e d W o r k e r s .
26 or MORE
55 or OVER
HIGH SCHOOL
EDUCATION
M ost o f the d is p la c e d w o r k e r s age 45 and o v e r had quit v o lu n ta rily ,
m otiv a ted by the co m p a n y 1s sep a ra tion pay p r o g r a m . V olu n ta ry te r m in a
tions a ccou n ted fo r o n e -s ix th o f all d is p la c e d w o r k e r s . The m ed ia n age fo r
th ose who term in a te d v o lu n ta rily w as 57; fo r a ll the d is p la c e d w o r k e r s , the
m ed ia n age w as 37.
B eca u se o f the co m p a n y 's la y o ff p r o c e d u r e , the s e n io r ity o f the d is
p la ce d w o r k e r s w as co n ce n tra te d w ithin a sm a ll ra n g e . T h e ir lo w e s t s e n io r
ity w as 9 y e a r s , and 88 p e rce n t o f the total had betw een 9 and 15 y e a r s of
s e n io rity . F o r the group as a w h ole, the m ed ia n s e n io r ity w a s 13 y e a r s ;
fo r th ose w o r k e r s who term in a ted v o lu n ta rily the m ed ia n w as 26 y e a r s .
J ob Hunting E x p e rie n ce
E m p loy m en t and U n em p loy m en t. A t the tim e o f the su rv e y , 83 p e rce n t of
the d is p la c e d w o r k e r s w e r e e m p lo y e d . A bout 8 p e rce n t w e r e u n em p loy ed
and 9 p e rce n t w e r e not look in g fo r w o rk . M ost o f the la tte r had r e t ir e d
betw een the tim e o f the la y o ff and the su rv e y .
15
Table 2.
Petroleum Refinery--Selected Characteristics and Employment
Status of Displaced Workers
C h a r a c te r is tic s
A ll
d is
p la ce d
wo rk e rs
E m p loy m en t statu s1
T ota l
Em
p lo y e d
U n em
p loy ed
Not
seeking
em ploym en t
P ercen t
T o ta l, a ll d isp la c e d
w o r k e r s ............................
100
100
83
8
9
Sex:
M ale ..........................................
100
100
83
8
9
R a ce :
W h it e ..........................................
O t h e r .............. . .........................
97
3
100
100
83
100
8
9
A g e:
L e s s than 35 y e a r s ..............
3 5 -4 4 y e a rs ............................
4 5 -5 4 y e a rs . . . . . . . ............
55 y e a rs and o v e r .................
37
42
10
11
100
100
100
100
90
91
95
23
8
9
5
4
2
73
E du cation :
No high s c h o o l .............. ..
Som e high s c h o o l ............
High s ch o o l g r a d u a t e .........
At le a st som e c o lle g e . . . .
8
13
71
8
100
100
100
100
27
80
90
81
4
9
13
73
16
1
6
H ou rly ea rn in gs le v e l:
Under $ 2 . 7 0 ..........................
$ 2 . 70 - $ 2 . 8 9 .......................
$ 2 .9 0 - $ 3 . 0 9 .......................
$ 3 .1 0 and ove r ....................
11
17
36
36
100
100
100
100
81
84
89
66
19
16
7
7
4
27
1
At the time of the survey.
16
The m a jo r it y had e x p e r ie n c e d le s s than 6 w eek s
(See table 3. ) One out of 5 re p o rte d no u n em p loym en t,
having r e tir e d . M ore than 1 out of 4, h o w e v e r, had 16
un em ploym ent and m o re than 1 oui: of 6 re p o rte d having
long as 6 m onths and m o r e .
T a b le 3.
o f u n em p loym en t.
m any o f this group
o r m o re w eek s of
b een u n em p loyed as
P e tro le u m R e fin e r y --D u r a t io n of
U nem ploym ent
L ength o f tim e u n em p loyed 1
P e r c e n t of
d isp la ce d
w ork ers
T o ta l2 ..........................................................
100
No days l o s t ...................................................
21
Up to 1 w e e k ...................................................
16
2-5 w eek s ........................................................
19
6 -1 0 w eek s ......................................................
11
11-15 w eek s ...................................................
6
16-20 w eek s ...................................................
8
21 - 25 w eek s ...................................................
1
.......................................
18
26 w eek s or m o r e
W o r k e r s in clu d ed in the sam ple w e r e t e r m i
nated o v e r a p e r io d o f 1 y e a r . The tim e betw een
te rm in a tio n and the su rv e y ran ged fr o m about 6 to
18 m on th s, depending on the individual term in a tion
date. Length o f tim e u n em p loy ed in clu d es a ll u n em
ploym en t e x p e r ie n c e d betw een la y o ff and su rv e y .
2D oes not include w o r k e r s not seek in g
e m p loy m en t.
17
O v er h a lf had been em p lo y e d in on ly 1 jo b sin ce le a v in g the r e fin e r y .
C lo se to o n e -fo u r th had two jo b s and about o n e -s ix t h had 3 o r m o r e jo b s .
A ge and E du cation and R e e m p lo y m e n t. Since the group w as co n ce n tra te d
w ithin a n a rro w ran ge o f a g es (79 p e rce n t under 45) and ed u cation al le v e ls
(79 p e rce n t high sch o o l gra du ates), d iffe r e n c e s in em p loy m en t status a re
p ro b a b ly not sig n ifica n t. (See table 2 .) N e v e r th e le s s , the h andicaps o f
age and la c k o f edu cation in seek in g em p loym en t w e r e the su b je cts m o s t
freq u en tly m en tion ed by d isp la c e d w o r k e r s in a n sw erin g the q u e stio n n a ire s.
The fo llo w in g a re som e ty p ica l co m m e n ts.
On A ge
nI n o tice that no one lik e s to e m p lo y a m an if he is o ld e r than
35 y e a r s o ld . M o st w ill not even d is c u s s the situation, not
even the c o u r te s y to ta lk to a m an o v e r 3 5 .ff (A ge 38)
,fIn du stry d oes not lik e to h ire m en o v e r 35 y e a rs o f age and
in m any c a s e s a re ju s tifie d . T h e s e m en w ill have a h a rd tim e
com p e tin g w ith y ou n ger m en fo r oth er em p loy m en t throughout
the a r e a . n (A ge 42)
,!The m o s t d isco u r a g in g e x p e r ie n ce I 'v e had is being to ld I was
too o ld fo r em p loy m en t in fie ld s that r e q u ir e d train in g (o n -th e jo b tra in in g ). I w as 35 y e a r s o ld at the tim e . " (A ge 35)
"M a n y o f m y frie n d s who w e r e la id o ff at the sam e tim e and
who w e r e in m y age b ra ck e t or th eir late 3 0 's found it e x c e e d
in g ly d ifficu lt to obtain jo b s b e ca u se o f this fa c t o r ." (A ge 29)
E du cation
"Y o u m u st have a d e g re e (high sch ool) to get anyw here today. "
(A ge 38)
"Y o u have to have at le a s t two y e a r s o f c o lle g e fo r jo b s w h ich
d on 't have anything to do with c o lle g e w o rk . " (A ge 33)
"In d u stry dem ands a t le a s t a high sch o o l d ip lom a n o w ." (A ge 39)
" E m p lo y e r s se e m to want young c o lle g e m en w ith e x p e r ie n c e . "
(A ge 38)
"W h ile jo b hunting, it b e ca m e apparent to m e that know ing
a c r a ft o r having m o r e than a high s ch o o l ed u ca tion is a
m u s t ." (A ge 31)
Sk ill L e v e l and R e e m p lo y m e n t. The rate o f u n em p loym en t am ong u n sk illed
w o r k e r s w as c o n s id e r a b ly h igh er than am ong oth er g ro u p s. (See table 4 .)
T a b le 4.
P e t r o l e u m R e f i n e r y - - E m p l o y m e n t of D i s p l a c e d W o r k e r s B e f o r e and A f t e r T e r m i n a t i o n , by O c c u p a tio n
E m p lo y m e n t s t a t u s at s u r v e y d a te ( p e r c e n t)
E m p l o y e d in p r e s e n t jo b a s - O c c u p a t io n at r e f i n e r y
T otal
T ech n i
Unem
Un
M ain te - O p e r c i a n o r
T ruckp lo y e d
sk ille d d r iv e r
nance
i
n
s
p
e
c
ator
w orker2
w orker1
to r
5
11
5
2
il
10
8
28
--
14
14
5
--
48
--
11
3
3
6
11
39
6
11
16
52
11
5
11
8
8
16
6
31
100
5
--
5
29
U n s k i l l e d w o r k e r 2 . ............. .. .
100
20
9
6
T r u c k d r i v e r .................................
100
6
6
M a in t e n a n c e w o r k e r 1 .............
100
O p e r a t o r .........................................
100
T ech n ic ian o r in s p e c to r . . .
1 In clu d es a ll m ain ten an ce m e c h a n ic s.
2 I n c lu d e s l a b o r e r s , h e l p e r s , and c u s t o d ia l w o r k e r s .
3 P r i m a r i l y f i r e m e n , p o l ic e m e n , and p o s t m e n .
Note:
Because of rounding, sums of individual item s may not add to 100.
Sales
S elfG overn
or
e m p lo y e d
m ent
clerical
w o rk e r3 w orker w orker
~ -
19
One out o f 5 d is p la c e d w o r k e r s c la s s ifie d as u n sk illed w e re u n em p loy ed at
the tim e o f the su rv e y . M aintenance w o r k e r s , the m o s t sk ille d , on the
oth er hand, r e p o r te d no un em p loym en t.
C o n sid e rin g re la tiv e ea rn in gs as a rough m e a s u re o f s k ill, it is
c le a r that the two lo w e s t p aid groups (under $ 2. 70 and $ 2. 7 0 -$ 2. 89) had
m o r e than double the un em p loym en t rate e x p e r ie n ce d by the two high er
paid grou ps o f w o r k e r s (table 2).
In d u stries P r o v id in g J o b s . N e a rly tw o -th ird s o f the e m p lo y e d w o r k e r s
found jo b s in m an u fa ctu rin g in d u strie s but on ly 7 p e rce n t w e re re e m p lo y e d
by the o il r e fin e r y in d u stry . (See table 5 .) A bou t h a lf o f th ose who found
jo b s in m a n u fa ctu rin g in d u strie s w e r e re e m p lo y e d in the s te e l in d u stry, the
dom inant in d u stry in the la b o r m a rk et a re a . M ost o f the rem a in in g th ird o f
a ll w o r k e r s finding new jo b s w e r e e m p lo y e d in v a rio u s n on m anu factu ring
in d u strie s; som e w e r e e m p lo y e d by g overn m en t, m a in ly lo c a l govern m en t;
six p e rce n t w e r e s e lf-e m p lo y e d .
T a b le 5.
P e tro le u m R e fin e r y --T y p e s o f In d u stries
P ro v id in g C urren t J o b s 1
Indu stry
P e r c e n t of
w orkers
T o ta l, a ll e m p lo y e d w o r k e r s ..............
100
M a n u fa c tu r in g ...................................................
S teel p ro d u cts ............................................
C h e m ica l p ro d u cts ......................... ..
O il r e f i n i n g ...................................................
C leaning p ro d u cts .....................................
F o o d p ro d u cts ..........................
Othe r ...............................................................
64
31
7
7
5
3
11
N onm anufacturing ..........................................
F in an ce and in su ra n ce ............................
C o n s t r u c t io n .................................................
R e t a i l .................................. ...........................
O ther ...............................................................
18
4
3
3
8
G o v e r n m e n t ........................................................
L o c a l govern m en t (p o lic e , fir e m e n ,
e t c .) ..........................................................
P o s t o ffic e ............ ............... ......................
12
S e l f - e m p l o y e d ................ ..................................
6
xJ o b s h eld at tim e o f the su rv e y .
8
4
20
A s s is ta n c e in F inding J o b s . The m o st freq u en t s o u r ce o f jo b le a d s , cite d
by o v e r h a lf o f the p eop le su rv ey ed , w as ''fr ie n d s and r e la t iv e s ." Next
m o s t co m m o n w e re "n e w sp a p e r a d s, " m en tion ed by o v e r tw o -fifth s o f the
group; "o th e r co m p a n ie s w h ere a p p lied fo r jo b s " (n e a rly tw o -fifth s ); the
"State em p loy m en t s e r v ic e " (a lm o st a th ird ); and the " r e f in e r y 's jo b p la c e
m ent s e r v ic e " (a ls o a lm o st a th ird ). P riv a te em p loy m en t a g e n c ie s reta in ed
by the r e fin e r y w e re nam ed by n e a rly a fou rth .
S ligh tly o v e r h alf o f th ose resp on d in g a ls o nam ed "fr ie n d s o r r e l a
t iv e s , " as the s o u r ce w hich a ctu a lly lo c a te d th e ir jo b s . H ow e v e r, "o th e r
com p a n ies w h ere a p p lied fo r jo b s " w as nam ed by 12 p e rce n t; n ew sp a p er
a ds, by 8 p e rce n t; the r e fin e r y 's jo b p la ce m e n t s e r v ic e o r p riv a te e m p lo y
m en t a g e n cie s re ta in e d by the r e fin e r y by 6 p e rce n t; oth er p riv a te e m p lo y
m ent a g e n c ie s , by 2 p e rce n t; the State em p loy m en t s e r v ic e by 1 p e rce n t,
and the union by 1 p e rce n t. N e a rly a fifth (18 p ercen t) cla im e d they got the
jo b "o n th eir own. "
The a n sw e rs to this s e ctio n o f the q u estion n a ire fre q u e n tly did not
a g re e with oth er in fo rm a tio n c o lle c t e d . A bou t h a lf o f the m en file d c la im s
fo r u n em p loym en t co m p e n sa tio n w ith the State em p loy m en t s e r v ic e . N e a rly
a fou rth o f th ese w e r e given jo b r e f e r r a ls , and o v e r o n e -th ir d o f th ose r e
fe r r e d found jo b s w ith the fir m to w h ich they w e re sent. Y et v irtu a lly none
o f th ese c r e d it e d the a g en cy with having lo c a te d th eir jo b fo r th em .
The r e fin e r y o ffic ia ls e stim a te d that, ex clu d in g e m p lo y e e s who le ft
v o lu n ta rily under the s e v e ra n ce pay a rra n g e m e n ts, the com p an y a s s is te d
in lo ca tin g jo b s fo r o n e -th ir d o f the w o r k e r s . In fo rm a tio n on jo b r e f e r r a ls
by the com p an y c o m p a r e s v e r y c lo s e ly w ith the w o r k e r 's p la ce o f e m p lo y
m en t (as shown on the q u e stio n n a ire ). H o w e v e r, a grea t m any w o r k e r s did
not se e m to be aw are o f the p art p la yed by the com p a n y in h elp in g them get
jo b s . O nly h a lf o f the m en whom the com p an y a s s is t e d in lo ca tin g jo b s ,
h o w e v e r, w e r e still w o rk in g at th ose p a r tic u la r jo b s at the tim e o f the su rvey .
T h o se who had le ft did so eith er b e ca u se they had b een la id o ff o r had s e cu re d
b etter p o sitio n s e ls e w h e r e .
M o b ility and R e e m p lo y m e n t. The d is p la c e d w o r k e r s w e r e a sk ed w h eth er
they had lo o k e d fo r w o r k b eyon d the lo c a l a re a . F r o m th eir r e s p o n s e s , it
a p p ea rs that, co m p a rin g th ose who obtain ed jo b s and th ose who did not,
about equal p ro p o r tio n s sought w o r k ou tsid e th eir h om e city . H o w e v e r,
1 out o f 7 o f the r e e m p lo y e d w o r k e r s had lo o k e d fo r w o r k fu rth er than 50
m ile s away; none o f th ose who w e re u n em p loyed had done th is.
T ra in in g and R e e m p lo y m e n t. A bout 1 out of 10 w o r k e r s r e p o r te d that e a r lie r
tra in in g given b y the com p an y fo r jo b s in the r e fin e r y h elp ed them subsequ en tly
in getting jo b s o u tsid e .
21
A bout a fifth o f the w o r k e r s re p o rte d that they had had jo b trainin g
sin ce lea vin g the r e fin e r y . In about tw o -th ird s o f these c a s e s , the trainin g
w as on the jo b . In the rem ain in g c a s e s , the trainin g w as g e n e ra lly obtained
in p riv a te s c h o o ls and paid fo r by the w o r k e r s . A ll w o r k e r s who had r e c e iv e d
fo r m a l jo b trainin g e ith e r at the r e fin e r y o r at s ch o o ls w e re e m p lo y e d at the
tim e of the su rv e y .
C lo se to n in e-ten th s o f the d isp la c e d w o r k e r s said they w ould be
in te re s te d in taking a trainin g co u r s e if they did not have to pay fo r it.
T h r e e -fo u r th s said they w e re in te re s te d in trainin g fo r a b etter jo b . Of those
in te re s te d in tra in in g , 21 p e rce n t d e s ir e d a c o u r s e in e le c t r o n ic s . Other
in te re s ts w e re e le c t r ic a l trainin g (10 p e r c e n t), la b o r a to r y r e s e a r c h (6 p e r
cen t), w elding (5 p e r c e n t), and en g in eerin g (4 p e r c e n t).
Som e Job E ffe c ts o f D isp la ce m e n t
D is p la ce d w o r k e r s who w e re em p lo y e d at the tim e of the su rv e y ,
re p o rte d lo s s e s in ea rn in gs on th e ir p re se n t jo b s co m p a r e d to th e ir jo b at
the r e fin e r y and, in g e n e r a l, som e dow ngrading in sk ill le v e ls .
E ffe c t on E a r n in g s . F ou r out o f 5 re e m p lo y e d
at the tim e of the su rv e y than at the r e fin e r y .
tenth w e re earnin g about the sam e w ages and a
had h igh er ea rn in g s. F o r a p p ro x im a te ly 1 out
w as at le a st 20 p e r c e n t.
w o r k e r s w e re earnin g le s s
(See table 6 .) C lo se to o n e little m o r e than on e-ten th
o f 3, the d rop in ea rn in gs
M ost sh a rp ly a ffe cte d w e re those who had b een in the h ig h er ea rn in gs
c a t e g o r ie s . W ell o v e r h alf (58 p e rce n t) o f the w o r k e r s who had b een earning
$ 3 .1 0 an hour o r m o r e su ffe re d a d e clin e of at le a st 20 p e rce n t co m p a re d
with 8 p e rce n t in the lo w e st paid g rou p , under $ 2. 70 p e r h ou r. Only 8 p e r
cen t o f the h igh est paid g rou p a ch ie v e d h igh er e a rn in g s, co m p a re d with 31
p e rce n t in the lo w e st paid g rou p .
A num ber o f w o r k e r s com m en ted on the lo s s o f frin g e b en efits
b e ca u se o f d isp la ce m e n t. T y p ica l com m en ts w e r e :
"I lo s t a g re a t deal in old age p en sion and v a ca tion .
a re im portant to m e and m y fa m ily . M (Age 40)
,fMy only r e g r e ts at leavin g w e re giving up o r lo sin g
v a ca tion o f th ree w eek s fo r 14 y e a rs o f s e r v ic e , m y
b e n e fits. I lik ed the re tire m e n t plan on w hich I paid
the stock plan. Things in that line w e re a lot b etter
I have now. ,! (Age 41)
T hese
my
frin g e
p a rt,
than
22
T a b le 6.
P e tro le u m R e fin e r y --C h a n g e in E arn in gs L e v e l
P e r c e n t on c u r re n t jo b r e c e i v i n g - H ou rly ea rn in gs
le v e l at r e fin e r y
At
T otal le a s t
30%
le s s
2 0 .0 29. 9%
le s s
1 0 .0 19.9%
le s s
Up to
H igher
Sam e
9 .9% e a rn in g s1
ea rn in gs
le s s
25
24
23
9
12
A ll e m p lo y e d
w o r k e r s ..........
100
Under $ 2 . 7 0 ............
100
8
8
38
15
31
$ 2 . 70 - $ 2. 8 9 ____
100
14
29
29
9
19
$ 2 .9 0 - $ 3 . 0 9 ____
100
6
20
35
23
10
6
$ 3. 10 and o v e r . . . .
100
14
44
14
14
6
8
7
W it h in 5£ eith er w ay.
S om e w iv e s o f d is p la c e d w o r k e r s app a ren tly a d ju sted to the change
by seek in g ou tside em p loy m en t. B e fo re the la y o ff, the w iv e s o f 25 p e r c e n t
o f the d is p la c e d w o r k e r s w e r e e m p loy ed . T he p ro p o r tio n o f w iv e s w o rk in g
had in c r e a s e d to 29 p e rce n t, at the tim e o f the su rv ey ; the in c r e a s e w as
m a in ly in p a r t-tim e w o rk , with little change in the p ro p o r tio n obtain ing fu ll
tim e w o r k .
C hanges in T ype o f J o b . D is p la ce d w o r k e r s in g e n e ra l had to take jo b s at
lo w e r s k ills . (See table 4 .) E ven am ong the m aintenance w o r k e r s , on ly
h a lf w e r e em p lo y e d at the sam e sk ill le v e ls . T he ’ 'o p e r a t o r 11 and the " t e c h
n icia n or in s p e c t o r " groups show ed siz a b le p ro p o r tio n s taking jo b s in the
u n sk illed w o r k e r c a te g o r y .
In co m p a rin g th e ir cu rre n t jo b with th e ir jo b at the r e fin e r y , the
la rg e m a jo r it y c o n s id e r e d the cu rre n t jo b w o r s e in te r m s o f both w a g es and
frin g e b e n e fits. In 3 other a sp e cts o f the jo b - - s u p e r v is io n , type o f w o rk ,
and tr a v e l to w o r k --t h e g e n e ra l b e lie f w as that th ere had been an im p r o v e
m ent. The resp on d en ts g e n e ra lly fe lt that th ere had been little change in
hou rs of w o r k and p r o s p e c t s o f p ro m o tio n .
23
III.
A C lo s e d A u tom otive E quipm ent P la n t
A M id w est au tom otive equipm ent plant w as c lo s e d in June 1962,
d isp la cin g a p p ro x im a te ly 1, 100 e m p lo y e e s . The o p e ra tio n s and equipm ent
o f the plant w e r e t r a n s fe r r e d to an e x istin g plant about 150 m ile s away, in
an adjacen t State, and to a new plant in the South. The com p a n y a ls o had
s e v e r a l plants lo c a te d in a num ber o f oth er a r e a s . The su rv e y w as con d u cted
in A p r il 1963, 10 m onths a fte r the plant shutdown.
D e s crip tio n of P lant
A t the tim e o f the shutdown, the plant had been in e x iste n ce m o r e
than 40 y e a r s . The com p an y had lo s t its p rin cip a l c u s to m e r , a m a jo r
a u tom obile m a n u fa ctu re r w h ich had d e cid e d to p ro d u ce its own equipm ent.
The re s u lt w as a sig n ifica n t change in the nature o f o p e ra tio n s at the plant,
fr o m lo n g -r u n fo r a sin gle c u s to m e r , to s h o r t-r u n o p e ra tio n s fo r m any
c u s to m e r s . The lo s s o f b u sin e ss had ca u se d the com p an y to c lo s e two other
plants in the sam e a rea at e a r lie r d a tes. The plant c lo s in g , in June 1962,
w as p r e c e d e d by lon g c o n flic t betw een the com p an y and the union o v e r p r o
p o s e d m e a s u r e s to a ch ie v e e c o n o m ie s .
The plant w as lo c a te d in a h igh ly in d u s tria liz e d a re a , w h ich has a
la b o r fo r c e o f c lo s e to 2 0 0 ,0 0 0 . M anu facturing w o r k e r s in the a rea a ccou n t
fo r about 1 out o f 3 w o r k e r s in n o n a g ricu ltu ra l em p lo y m e n t. P r in c ip a l m anu
fa ctu rin g in d u strie s p ro v id in g em p loym en t a re tra n sp o rta tio n equipm ent;
stone, cla y , and g la ss p ro d u cts; fa b rica te d m e ta l p ro d u cts; and e le c t r ic a l
m a ch in e r y .
T he a re a w as c la s s if ie d by the U .S . D epartm en t o f L a b o r as one o f
r e la tiv e ly substantial u n em p loym en t at the tim e o f the plant c lo s in g . The
un em ploym en t rate o f 6. 8 p e rce n t, h o w e v e r, had d e clin e d fr o m 9. 3 p e rce n t
a y ea r e a r lie r . T he d e clin e contin ued, with the un em p loym en t rate dropping
to 4 . 9 p e rce n t in A p r il 1963, the m onth o f the su rv e y , when the a re a w as
c la s s ifie d as one o f on ly m o d e ra te u n em p loym en t.
M e a s u r e s to E a se D isp la ce m e n t
The bulk o f the p lan t1s p ro d u ctio n and m ain ten an ce w o r k e r s w e re
r e p re s e n te d by an in d u stria l la b o r union. Som e sk ille d w o r k e r s w e r e
o rg a n iz e d by a c r a ft union. Both unions w e r e a ffilia te d with the A F L -C I O .
Interplan t T r a n s fe r s . The co n tra ct betw een the com p an y and the in d u stria l
union had p ro v id e d fo r interplant tr a n s fe r s o f m e m b e r s o f the b a rgain in g
unit. If the com p a n y shut down a plant and t r a n s fe r r e d its o p e ra tio n s to
another plant, the e m p lo y e e s w ou ld be given the opportun ity to tra n s fe r to
the other plant w ith th e ir jo b s . W hile w ork in g on the t r a n s fe r r e d jo b , such
e m p lo y e e s w ou ld be c r e d ite d with fu ll s e n io r ity fo r la y o ff and r e c a ll as w e ll
as fo r e co n o m ic b e n e fits, such as v a ca tion pay, p e n sio n s , e tc.
24
If the com pan y shut down a plant and did not tr a n s fe r o p e ra tio n s to
another plant, e m p lo y e e s w e re to be g iv en the right to tr a n s fe r to oth er
plants c o v e r e d by the m a s te r a g reem en t b e fo r e new w o r k e r s w e r e h ire d by
such p la n ts. Although tra n s fe rr in g w o r k e r s w ould start as new e m p lo y e e s ,
they w ould c a r r y s e n io rity with them fo r p u rp o se s o f e c o n o m ic b e n e fits .
A p p ro x im a te ly 800 jo b s w e re tr a n s fe r r e d to a plant in another State
a fter the clo s in g o f the su b ject plant. In M a rch 1962, 3 m onths b e fo r e the
plant c lo s in g , the w o r k e r s w e re a d v ised by plant b u lletin to sign a re q u e s tt o -t r a n s fe r fo r m . Som e 230 w o r k e r s w e r e , at th eir own re q u e st, t r a n s
fe r r e d with th e ir jo b s to the oth er plant and reta in ed fu ll s e n io r ity on those
jo b s . A few oth er w o r k e r s tr a n s fe r r e d to v a rio u s plants o f the com p an y as
new h ir e s e x cep t fo r reten tion o f s e n io rity fo r e c o n o m ic b e n e fits . T ota l
tr a n s fe r e e s n u m bered about 265. The co n tra ct betw een the com p an y and the
cra ft union did not p ro v id e fo r interplant t r a n s fe r s , and m e m b e r s of that
bargain in g unit do not appear to have b een g iv en the op portu n ity to m ake
such t r a n s fe r s .
C om pany E ffo r ts . The com pan y announced the im pending shutdown o f the
plant 6 m onths in advance o f the c lo s in g . The com p an y su bsequ en tly c i r c u
lated in fo rm a tio n about the sk ills o f the d is p la c e d w o r k e r s am ong the in d u s
t r ie s in the a re a of the plant shutdown. It m et with a co m m itte e of re a l estate
p eop le in the a re a to w hich the o p e ra tio n s w e r e t r a n s fe r r e d and s e cu re d th eir
a g reem en t not to r a is e rents a r b it r a r ily . It a ls o p u b licly announced the e s ta b
lish m en t o f a $100, 000 retra in in g fund in F e b ru a ry 1962, but the trainin g p r o
g ra m w as n ev e r a ctu a lly put into e ffe c t . A total o f 322 e m p lo y e e s , in a ratio
o f 3 m en to 1 w om an, r e g is t e r e d fo r tra in in g. The a v e ra g e age o f the m en
w as 52, and o f the w om en 49. Both m en and w om en had a v e ra g e sch o o lin g
o f a little o v e r ninth g ra d e . The com pan y re p o rte d that fo r m o r e than 70
p e rce n t o f the re g istra n ts th ere was no re a so n a b le p r o s p e c t fo r jo b p la ce
m ent a fter retra in in g b e ca u se o f a g e , inadequate sch o o lin g , o r low s c o r e s
on aptitude te s t s . It stated that m any w e re not w illin g to take tra in in g co u r s e s
fo r s e r v ic e jo b s paying m uch lo w e r w ages than they had been r e c e iv in g , and
few w e re w illin g to give up un em ploym ent co m p e n sa tio n and su p p lem en tary
un em ploym ent b en efits fo r w hich they w ould have b een d isq u a lifie d under
ex istin g reg u la tion s w hile engaged in a fu ll-t im e trainin g p r o g r a m .
Union E ffo r ts . The union re p re se n tin g the la rg e m a jo r it y of the w o r k e r s
sought to a s s is t its d is p la c e d m e m b e r s in finding re e m p lo y m e n t. It invited
a ll d is p la c e d m e m b e r s to fill out jo b r e f e r r a l f o r m s , d e s c r ib in g th e ir p e r
sonal c h a r a c t e r is t ic s , q u a lifica tio n s , ed u ca tion , and em p loy m en t h is to r y .
The fo r m s w e re then cir cu la te d am ong co m p a n ie s with w h ich the union had
c o n tr a c ts . A s a re su lt o f those e ffo r t s , a p p ro x im a te ly 200 w o r k e r s w e re
em p loy ed by com p a n ies under con tra ct with the union. The la r g e s t p r o p o r
tion o f th ese w e r e h ir e d by one fir m w hich w as expanding and w h ich a cce p te d
d is p la c e d w o r k e r s up to age 55. Union re p re s e n ta tiv e s explain the w illin g n e ss
of this com p an y to h ire o ld e r w o r k e r s on the groun d that it d e s ir e d ’ ’instant
s k ills , " tra in ed w o r k e r s who could adapt to new jo b s with a m in im u m of
retra in in g .
25
A p p a ren tly , the union w as not able to p la ce w om en w o r k e r s re a d ily .
Union r e p re s e n ta tiv e s stated that m en at 55 and o v e r and w om en at any age
w e r e h a rd est hit by fa ilu re to find jo b s . The union r e p re s e n ta tiv e s said that
they cou ld p la ce sk ille d trade s m e n --m illw r ig h t s , m a ch in ists , e le c t r ic ia n s - at any age, w ith little d ifficu lty .
U nem ploym en t I n s u ra n ce . At the tim e of the su rvey , about 7 out o f 10 o f
the d isp la c e d w o r k e r s had r e c e iv e d som e u n em ploym ent in su ra n ce b en efits
(table 7). The a v e ra g e duration o f th ose b en efits w as 21 w e e k s.
S ep a ra tion P a y m e n ts . Under the union co n tra ct, d isp la ce d w o r k e r s w e re
en titled to th ree typ es o f sep a ra tion paym ents: su p p lem en tary u n e m p lo y
m en t b en efits; d e fe r r e d se v e ra n ce pay; and p e n sio n s. S u pplem entary
u n em ploym ent b e n e fits, p ro v id e d fo r under union co n tra ct and paid c o n c u r
ren tly with un em ploym ent co m p e n sa tio n , had been obtain ed by tw o -th ird s of
the d isp la ce d w o r k e r s , fo r an a v era ge duration of 22 w eek s by the tim e o f
the su rv ey (table 7).
T a b le 7.
A u tom otiv e E quipm ent P la n t--U n e m p lo y m e n t In su ra n ce and
S u pplem entary U nem ploym ent B en efits
U .I .
(P e rce n t)
S .U . B.
(P e rce n t)
T o ta l1 ......................................................................................
100
100
R e ce iv in g b en efits ...................................................................
F o r 1-10 w eek s ...................................................................
F o r 11-20 w eek s .................................................................
F o r 21-30 w eek s .................................................................
F o r 31 or m o r e w eek s ......................................................
69
17
8
43
1
67
19
12
35
1
Not r e c e iv in g b e n e f i t s .............................................................
31
33
A v e r a g e num ber o f w eek s ben efit r e c e i v e d ...................
(21)
(22)
P e r io d ben efit r e c e iv e d
xD oes not include w o r k e r s not seeking em p loy m en t.
The S .U .B . p r o v is io n in the co n tra ct a lso p ro v id e d fo r lu m p -su m
sep a ra tion paym ents to be r e c e iv e d 1 y e a r a fte r in volu n tary term in a tion by
w o r k e r s not e lig ib le fo r n o rm a l o r e a r ly re tire m e n t p e n sio n s . F o r m o s t o f
the d isp la ce d w o r k e r s , the due date fo r r e c e iv in g paym ents w as July 1963.
26
The am ount fo r each w o r k e r w as com p u ted by a fo rm u la in volvin g his b a se
h o u rly ra te, plant s e n io rity , and the state of the tru st fund. T h is sum w as
re d u ce d by any b en efits p r e v io u s ly paid under the S .U . B. p r o g r a m .
For
ex a m p le, if the tru st fund had been fu lly funded, a w o r k e r w ith a $ 2. 50
base h o u rly rate and 25 y e a rs of s e r v ic e (a v e ra g e s e n io rity w as g re a te r)
w ou ld have been en titled to a lu m p -su m paym ent o f $ 2 , 782. 50 m inus S .U . B.
p ay m en ts. H ow e v e r, the am ount of the paym ent w as re d u ce d by 35 p e rce n t
b e ca u se the fund had been su b sta n tia lly d epleted 3 y e a rs e a r lie r when s e p a
ra tion pay b en efits w e r e given to o v e r 1,0 0 0 e m p lo y e e s o f another plant
c lo s e d by the com p an y.
B etw een M a rch 1962 and M ay 1963 p en sion s hAd b een p a id to 375
w o r k e r s , 283 o f them in the m a jo r b argain in g unit. T h r e e -fo u r t h s o f the
p e n s io n e r s w e re m en . O n e -six th o f the total obtain ed n o rm a l re tire m e n t
b e n e fits, h a lf as m a n y r e c e iv e d d isa b ility p e n sio n s, and the r e s t - - m o r e
than 3 out o f 4 p e n s io n e r s --t o o k e a r ly re tire m e n t b e n e fits. In a c c o r d a n c e
w ith c o n tr a c t p r o v is io n s , the heavy drain on the p en sion fund r e q u ir e d the
p a r tie s to re d u ce d e fe r r e d p en sion s to a little m o r e than 40 p e rce n t o f the
am ounts c r e d ite d to w o r k e r s age 5 0 -5 9 and to a llo t no d e fe r r e d p en sion s to
w o r k e r s under 50. T h is ca u se d c o n s id e r a b le b itte r n e s s , so m e o f it d ir e c te d
at the union as w e ll as at the com p an y, am ong d is p la c e d w o r k e r s who lo s t
th eir p en sion rig h ts.
P e r s o n a l C h a r a c te r is tic s of the D is p la ce d W o r k e r s
A bou t 4 out o f 5 o f the d isp la ce d w o r k e r s w e r e m en . (See ch a rt 2
and table 8 .) The p ro p o r tio n o f w om en e m p lo y e d by the com p an y had d e clin e d
b e ca u se o f red u ctio n s o f the w o r k f o r c e . A ll the te rm in a te d w o r k e r s w e r e of
the w hite r a c e . A c c o r d in g to union re p r e s e n ta tiv e s , about 100 N e g r o e s had
been h ir e d during W o rld W ar II and up to 195 2; but, b e ca u se o f lo w e r se n io rity ,
none w as left a fte r p re v io u s re d u ctio n s in f o r c e .
V e r y few w o r k e r s w e r e under age 45 when the plant w as c lo s e d .
M o re than h a lf w e r e betw een 45 and 54 y e a rs of a ge, and the re m a in d e r
w e r e 55 and o v e r . T h is high age le v e l w as the re s u lt of the ’ ’bum ping11 of
w o r k e r s with le s s s e n io rity in the c o u r s e of a nu m ber of e a r lie r w o r k f o r c e
c o n tr a c tio n s . A s a re s u lt, a lm o st 7 out o f 8 had 26 o r m o r e y e a r s of
s e n io r ity when d is p la c e d .
A lm o s t o n e -th ir d o f the w o r k e r s w e r e high sch o o l g ra d u a tes. An
equal p ro p o r tio n had attended high s ch o o l but had not graduated. A little
m o r e than a th ird had no high s ch o o l ed u cation at a ll.
M ost of the w o r k e r s w e re m a r r ie d . O nly 5 p e rce n t w e r e sin gle and
10 p e rce n t w id ow ed o r d iv o r c e d . H o w e v e r, 24 p e rce n t had no dependents and
a la r g e r p ro p o r tio n had 1 dependent. F e w e r than 40 p e rce n t had 2 o r m o r e
dependents.
27
C h a r t 2. A u t o m o t iv e E q u ip m e n t P l a n t — P e r s o n a l C h a r a c te r is tic s o f D i s p l a c e d W o r k e r s.
DEPENDENTS
UNDER 16
J ob Hunting E x p e rie n ce
E m p loy m en t and U n em p loy m en t. T en m onths a fte r the fin al la y o ff, only
3 out o f 5 of the d is p la c e d w o r k e r s w e re e m p lo y e d . (See table 8 .) T h is
in clu d ed w o r k e r s tr a n s fe r r e d to oth er plants of the com p an y. M o re than
o n e -fo u r th w e re u n em p loyed, and about 1 out of 7 w as not seek in g w o rk .
P r im a r ily as a re su lt o f the siza b le nu m ber o f w o r k e r s who t r a n s
f e r r e d to another plant o f the com p an y in a c c o r d a n c e w ith the union a g r e e
m en t, 1 out of 5 d is p la c e d w o r k e r s lo s t no tim e through un em p loym en t.
A bou t o n e -th ir d lo s t le s s than 5 w e e k s. On the other hand, m o r e than 2
out of 5 w o r k e r s w e r e out o f w o r k a h a lf-y e a r o r m o r e . O ver h a lf w e r e
u n em p loy ed 16 w eek s or m o r e . (See ch a rt 3 .)
28
T a b le 8.
A u tom otiv e E quipm ent P la n t --S e le c t e d C h a r a c t e r is t ic s and
E m p loy m en t Status of D is p la ce d W o rk e rs
C h a r a c t e r is t ic s
A ll
d isp la c e d
w ork ers
E m p loy m en t statu s1
T otal
Em
p lo y e d
U n em
p lo y e d
Not seek in g
em p loy m en t
P ercen t
T o ta l, a ll w o r k e r s . . .
100
100
59
27
14
Sex:
M a l e ...................................
F e m a l e ...............................
79
21
100
100
67
26
20
56
13
18
R a ce :
W hite .................................
100
100
59
27
14
A ge:
L e s s than 35 y e a rs . . .
35 - 44 y e a r s .................
45 - 54 y e a r s .................
55 y e a r s and o v e r . . . .
3
3
53
41
100
100
100
100
63
89
67
44
10
11
29
29
27
0
4
27
E du cation :
No high s ch o o l ..............
Som e high s c h o o l ..........
High s ch o o l gradu ates .
36
32
32
100
100
100
46
58
73
35
33
15
19
9
12
H ou rly ea rn in gs le v e l:
Under $ 2 . 5 0 ...................
$ 2. 50 - $ 2. 89 ..............
$ 2 . 90 - $ 3 . 2 9 ..............
$ 3 .3 0 - $ 3 . 6 9 ..............
$ 3. 70 and o v e r ..............
21
31
25
18
5
100
100
100
100
100
36
57
64
78
81
45
31
22
13
8
19
12
14
9
11
lAt tim e o f su rv e y .
29
C h a r t 3. A u t o m o t i v e E q u i p m e n t P l a n t — L o n g -T e r m
Unemployed as Percent of T o ta l Displaced W o r k e r s
PERCENT
90
DURATION OF UNEMPLOYMENT
80
V ?,
16 weeks or more
26 weeks or more
70
60
40
30
20
I0
TO TAL
MEN
WOMEN
30
O ver h alf o f the d isp la c e d w o r k e r s had h eld on ly one jo b sin ce
term in a tion . A lm o s t a tenth had had 2 jo b s . R e la tiv e ly few had w o rk e d
fo r m o r e than 2 e m p lo y e r s .
The e ffe c t s o f un em ploym ent on the m o r a le o f the d isp la c e d w o r k e r
w e r e s u c c in c tly stated in the fo llo w in g com m en t by a 4 9 - y e a r - o ld m an: nI
get the sam e a n sw er e v e ry d a y . ’ C om e back la t e r ’ . I am ash a m ed o f m y
s e lf. I hate to co m e h o m e . ”
A ge and R e e m p lo y m e n t. A ge w as c le a r ly re la te d to u n em p loym en t. O nly
a v e r y sm a ll p ro p o r tio n w e re under 45 y e a rs of a g e. R e la tiv e ly few in this
group w e r e u n em p loyed and seek in g w o rk , on ly 1 out o f 10 (table 9).
In the 4 5 -5 4 age group, the u n em p loy ed w e r e about 3 out o f 10.
A m on g th ose who w e r e 5 5 -5 9 , they a cco u n te d fo r 3 out o f 8. F r o m age
60 on, the u n em p loym en t rate d e clin e d , but m o r e than half w e r e no lo n g e r
seeking em p loy m en t. T h is r e fle c t s in part the siz a b le nu m ber o f e a r ly
re tire m e n ts m en tion ed e a r lie r . It a lso r e fle c t s the fe e lin g s o f h o p e le s s n e s s
e x p r e s s e d by a n u m ber o f o ld e r d is p la c e d w o r k e r s , fo r exa m p le:
’ ’The m inute they see that I am o v e r fifty they turn m e
d o w n .” (A ge 56)
’ ’T h e re is m u ch talk about d iscrim in a tin g again st the c o lo r e d
r a c e , but. . .1 am co n v in ce d that th e re is m o r e d is crim in a tio n
again st the aged group. ” (A ge 54)
’ ’ L ife e x p e cta n cy is lo n g e r now than it e v e r w a s. M y g ra n d
fath er liv e d to be 90, m y fa th e r -in -la w is 80 and still goin g
alon g. I have 20 to 30 y e a rs to lo o k fo r w a r d to doing nothin g. "
(A ge 60)
” 1 am 48 and I d on ’ t think I should be c o n s id e r e d o ld . ”
’ ’M in e, lik e a lo t of p e o p le , is a ge, plus no ed u ca tion . . . .
Now, m a ch in e s a re taking jo b s that p e o p le h a d .” (A ge 56)
” A t m y age o f 55, it is a lm o s t im p o s s ib le to obtain a jo b .
It w as on ly through the help o f the union that som e in our
group w e r e able to obtain e m p lo y m e n t.”
E du cation and R e e m p lo y m e n t. A sig n ifica n tly h ig h er p ro p o r tio n o f high
s ch o o l gradu ates (73 p ercen t) had em p loy m en t than w o r k e r s who had not
graduated high s c h o o l (58 p e rce n t), o r those had not attended high s c h o o l
(46 p e rce n t). (See table 9 .) The un em ploym ent ra te w as r e la t iv e ly low
am ong high s ch o o l g ra d u a te s,(14 p e rce n t), c o m p a r e d with the w o r k e r s in
each o f the oth er grou p s (33 p e rce n t or m o r e ). A la r g e r p ro p o r tio n o f
th ose with no high s ch o o l ed u cation w e r e not seek in g em p loy m en t than
th ose w ith h ig h e r le v e ls of ed u ca tion .
31
T a b le 9.
A u to m o tiv e E q u ip m en t P la n t- - E m p lo y m e n t of D is p la c e d W o r k e r s by A ge
G ro u p and E d u c a tio n a l L e v e l1
Percent
Age group
All
displaced
workers
Employment status2
All
workers
Em
ployed
Unem
ployed
Not seeking
employment
All workers
All age groups ..................
Less
35
45
55
60
65
than 35 years . ..............
- 44 years .......................
- 54 y e a r s.......................
- 59 y e a r s......... ..
- 64 y e a r s......... ..
years and o v er..............
100
100
58
28
14
3
3
53
25
15
1
100
100
100
100
100
100
60
89
67
58
27
0
11
11
29
37
19
14
29
0
4
5
54
86
No high school
All age group s..................
Less
35
45
55
60
65
than 35 y e a r s ................
- 44 y e a r s........... ..
- 54 years . . . . . . . . . . .
- 59 years . . . . . . . . . . .
- 64 y e a r s................
years and over . . . . . . .
100
100
46
36
18
_
1
40
33
24
2
100
100
100
100
100
_
100
58
44
33
0
_
0
38
49
16
0
_
0
4
51
100
33
9
_
0
5
2
7
Some high school
A l l age group s..................
Less
35
45
55
60
65
than 35 y e a r s ........... .. .
- 44 years .......................
- 54 y e a r s........... ..
- 59 years .......................
- 64 y e a rs......... ..
years and o v er..............
100
100
58
_
_
100
100
100
100
100
_
_
50
62
67
28
50
33
31
30
40
2
62
23
12
1
o
42
60
High school graduates
All age groups..................
100
100
73
14
13
than 35 years ................
- 44 y e a r s.......................
- 54 y e a r s..................
- 59 y e a r s.......................
- 64 y e a r s........... ..
years and o v er..............
8
8
57
19
8
—
100
100
100
100
100
61
100
80
75
11
0
16
20
10
—
28
0
4
5
83
Less
35
45
55
60
65
—
7
—
xA ge gro u p and e d u c a tio n a l le v e l at te r m in a tio n .
2At tim e of s u r v e y .
N ote: D iffe r e n c e s betw een t a b le s 8 an d 9 a r e due to e x c lu sio n of q u e stio n
n a ir e s that did not co n tain d ata fo r both a g e and ed u c atio n .
32
A lthough high sch o o l ed ucation h elp ed the o ld e r w o r k e r s in obtaining
em p loy m en t, the un em p loym en t rate in c r e a s e d with age am ong the m o r e
ed u cated as w e ll as am ong th ose with le s s e d u c a t io n --fr o m 16 p e rce n t at
age 4 5 -5 4 to 20 p e rce n t at age 5 5 -59 fo r high s ch o o l g radu ates, co m p a r e d
with an in c r e a s e fr o m 38 p e rce n t to 49 p e rce n t fo r those with no high s ch o o l
tra in in g. The fo llo w in g a re co m m en ts by d is p la c e d w o r k e r s on the im p o r
tance o f education:
’ ’E du cation is so im portan t now if you want to w o rk . ”
(A ge 56)
” 1 think ed u cation is the key today fo r s u c c e s s , a ls o w o rk
o p p ortu n itie s. M y ed ucation w as lim ite d to high s c h o o l, and
with m y p re se n t p o sitio n I fe a r m y advan cem en t m ight be
h a m p e re d b e ca u se o f t h i s . ” (A ge 36)
R eem p loy m en t o f W o m e n . One o f the m o s t strik in g findings o f the study
w as the d ifficu lty w om en had in finding re e m p lo y m e n t. W ell o v e r h a lf o f
the w om en w e re out o f w o rk as co m p a r e d with o n e -fifth o f the m e n . W ith
the in clu sio n o f th ose not seek in g em p loy m en t, a total o f t h r e e -fo u r th s o f
the w om en did not have jo b s . Chart 3 show s that 5 out o f 6 w om en w e r e
u n em p loyed at le a s t a h a lf-y e a r , co m p a r e d w ith 1 out of 3 m en . It it a ls o
notable that v e r y few w om en who had been u n em p loy ed fo r 16 w eek s o r
lo n g e r had s e c u r e d jo b s .
F u r th e r m o r e , the le v e l o f u n em p loym en t am ong w om en w as c o n
s id e ra b ly h igh er than am ong m en at all ages and a ll ed u ca tion le v e ls . (See
ch a rt 4 and ta b le s 10 and 11. ) High sch o o l gradu ation , h o w e v e r, a p p ea rs
to have been an aid in se cu rin g re e m p lo y m e n t am ong both s e x e s . W hile no
w om en s p e c ific a lly ch a rg e d d is crim in a tio n b e ca u se o f sex in th e ir c o m
m en ts on the q u e stio n n a ire s, a nu m ber co m p la in e d about age d is crim in a tio n
at age le v e ls b e lo w th ose at w h ich m en co m p la in e d . C hart 4 show s a peak
un em p loym en t rate o f 67 p e rce n t am ong w om en in the 4 5 -5 4 age grou p . The
h igh est u n em p loym en t rate am ong m en w as re a ch e d betw een a g es 55 and 59
and w as a lm o st double the rate in the 4 5 -5 9 age group.
Skill L e v e l and U n em p loym en t. T a b le 12 p re se n ts o ccu p a tio n s b e fo r e and
a fter d isp la ce m e n t. The table e x clu d e s data fo r a p p ro x im a te ly o n e -fifth of
the w o r k e r s t r a n s fe r r e d to other plants o f the com p a n y under the union
a g re e m e n t. Sin ce m o s t of these e m p lo y e e s w e r e t r a n s fe r r e d with th eir
jo b s , th eir in clu sio n w ould have tended to o b s c u r e what had happened to the
oth er e m p lo y e e s . The table a lso show s sep a ra te data fo r ce rta in o c c u p a
tion s by sex b e ca u se o f the e x tre m e ly la r g e p ro p o r tio n o f w om en who had
not obtain ed jo b s . A m on g the 4 w o m e n 's o ccu p a tio n s shown, a ll but the
one in v olv in g c le r ic a l e m p lo y e e s show at le a s t 4 out o f 5 u n em p loy ed .
F o r m a le w o r k e r s , u n em ploym ent w as h ig h est am ong the u n sk ille d
la b o r e r s , 3 out of 5. C lo s e to h a lf o f the m en re m a in e d u n em p loy ed who
had been in s e m is k ille d o ccu p a tio n s as a s s e m b le r s and in s p e c t o r s . M en
who w e r e m a ch in e o p e r a to r s , who appear to have been c la s s if ie d h ig h er
than s e m is k ille d at the equipm ent plant, had a m u ch lo w e r p r o p o r tio n o f
33
Chart 4. Automotive Equipment Plant-Unemployment by-Sex, Education, and Age Group
PERCENT OF DISPLACED W ORKERS
20
E D U C A TIO N
30
40
50
60
70
T
NO H IG H SC H O O L
SO M E H IG H SCH O O L
H IG H SCH O O L G R A D U A TE
PERCENT OF DISPLACED WORKERS
A G E GROUPS
0
10
20
30
40
50
60
70
80
U N D ER 35
35-44
45-54
55-59
U N D ER 35
i !iii hi liirn
WOMEN
35-44
liitHiHUSKlIliiI
45-54
M I 111.1.1111Jill]j i i l 1 1 1 .1 m
55-59
u i n i n L i i i i iLMM1:1.11 .i.&ii.JJlLli.
_____ i_____ i_____ i_____ i_____ i_____ i_____ i_____
mm
34
T a b le 10.
A u tom otiv e E quipm ent P la n t--E m p lo y m e n t Status o f D is p la ce d
W o rk e rs by Sex and A ge G rou p 1
Percent
Age group
All
displaced
workers
Employment status2
All
workers
Em
ployed
Unem
ployed
Not seeking
employment
Men
All age groups . . . .
Less
35
45
55
60
65
than 35 years . . .
- 44 y e a r s ...........
- 54 y e a rs...........
- 59 y e a r s...........
- 64 y e a r s...........
years and over . .
100
100
67
21
12
2
3
51
26
16
2
100
100
100
100
100
100
84
93
79
65
30
0
5
7
17
32
20
14
11
0
4
3
50
86
Women
All age groups . . . .
Less
35
45
55
60
65
than 35 years . . .
- 44 years . . . . . .
- 54 y e a r s ...........
- 59 years . . . . . .
- 64 y e a rs...........
years and over . .
100
100
25
57
18
4
4
59
23
10
100
100
100
100
100
11
75
27
23
9
22
25
67
62
13
67
0
6
15
78
xAge group at termination.
2At time of survey.
Note: Differences between tables 8 and 10 are due to exclusion of
questionnaires that did not contain data for both sex and age.
35
T a b le 11.
A u tom otiv e E quipm ent P la n t--E m p lo y m e n t Status o f D is p la ce d
W o r k e r s by Sex and E du ca tion al L e v e l1
Percent
Educational level
All
displaced
workers
Employment status2
All
workers
Em
ployed
Unem
ployed
Not seeking
employment
Men
All educational
le v e ls ........... .. . . .
100
100
67
21
12
No high school................
Some high s c h o o l.........
High school graduates .
34
33
33
100
100
100
56
66
79
26
25
11
18
9
10
Women
A ll educational
levels ....................
No high school................
Some high s c h o o l.........
High school graduates .
100
100
25
57
18
43
33
24
100
100
100
15
28
39
67
64
31
18
8
30
Educational level at termination.
2At time of survey.
Note: Differences between tables 8 and 11 are due to exclusion of
questionnaires that did not contain data for both sex and education.
Table 12.
Automotive Equipment Plant--Employment Before and After Termination, by Occupation (excludes transferred workers)
Employment sta tu s a t survey d a te ( p ercen t)
O ccup ation a t
c lo s e d p lan t
Sex
P ercen t
age d i s
t r ib u t io n
a t c lo s e d
p lan t
Employed In p resen t jo b as- A ll
work
ers
Unem
ployed
Machine
op era
to r
Assem
b le r
Insp ec
to r
Main
tenance
worker
1
--
M
F
22
3
100
100
30
90
27
--
4
--
3
--
M
F
11
16
100
100
45
79
8
1
10
1
4
2
I n s p e c to r .........................
M
F
7
3
100
ICO
47
84
13
--
--
18
Maintenance worker . . .
M
6
100
26
-
Machine o p e r a to r .........
Assem bler .........................
S et-u p ...............................
M
3
100
24
T o o l and d ie maker . . .
M
4
100
12
M ach in ist .........................
M
3
100
12
2
4
4
--
-
-
--
24
12
--
- -
--
--
S u p e rv isor ......................
M
3
100
17
4
4
Draftsman ........................
M
3
ICO
8
ICC
76
8
--
-■-
-
-
7
””
6
-
-
8
*■*
1
2
5
5
-
-
-
--
--
--
--
--
2
-
2
9
14
10
6
Id
-
-
Other
5
5
-
--
--
--
-
-
--
--
—
--
--
-
-
--
—
—
--
--
—
--
15
5
--
--
--
--
12
5
/,
8
--
""
P r o fe s
s io n a l
worker
—
--
--
100
100
—
4
-“
D r a fts
man
--
84
-““
3
1
-2
Super
v is o r
4
-
10
--
M
F
4
S ales
worker
--
12
- -
--
6
8
-
17
C le r i
ca l
worker
12
-
4
8
Ship
p in g stock
worker
2
5
10
-
-
-
-
C usto
d ia l
worker
9
5
2
-
42
?
-
-
100
K
--
11
3
C t h e r .................................
58
-
M
-
—
-
S h ip p in g -s to ck
worker ...........................
-
--
-
5
100
3
-
59
2
---
-
100
M
__
---
--
Laborer
““
-
5
-
__
Machin
is t
76
M
P r o fe s s io n a l worker . .
8
32
-
L aborer .............................
C le r i c a l worker ...........
-
T ool
and
d ie
maker
-““
~-
9
4
--
--8
-"---
33
76
9
---
17
—
--
33
31
-
—
18
--
84
4
4
-12
~
~
---
""
--
92
8
37
u n em p loym en t. U nem ploym en t was still lo w e r fo r m en in the m o r e sk ille d
jo b s , such as m ain ten an ce and se t-u p m an and w as lo w e s t fo r th ose who
had h eld the h igh ly s k ille d jo b s o f m a ch in ist and to o l and die m a k e r.
Considering relative earnings as a rough measure of skill, workers
earning the lowest pay at the automotive equipment plant, under $ 2. 50 per
hour, experienced the highest unemployment, 45 percent (table 8). Unem
ployment was lower for successively higher wage groups and amounted to
only 8 percent in the group earning $3. 70 and over per hour.
Industries Providing Jobs. Three-fourths of the reemployed workers had
obtained jobs in other manufacturing plants--almost half in the automotive
equipment industry, and another one-tenth in the automobile industry
(table 13). Seventeen percent were working in nonmanufacturing indus
tries, and 6 percent in government, mostly local government jobs. A
small proportion were self-employed.
Table 13.
Automotive Equipment Plant--Types of Industries Providing
Current Jobs1
Industry
Percent of employed workers
Including
Not including
transferred
transferred
workers
workers
Total, all employed w o rk e rs...............
100
100
Manufacturing...................................................
Automotive equipment...............................
Automobile.....................................................
Steel products..............................................
Other................................................................
75
47
11
6
11
62
21
17
8
16
Nonmanufacturing............................................
Engineering firms ......................................
Hospitals .......................................................
Service stations ..........................................
Other ..............................................................
17
2
2
1
12
25
3
3
2
17
G overnm ent.......................................................
F ederal............................................................
State ................................................................
County..............................................................
M unicipal.......................................................
6
(2)
1
1
4
10
1
1
1
7
Self-em ployed ...................................................
2
3
^obs held at time of survey.
2Less than 0. 5 percent.
38
After exclusion of the transferred workers who constituted one-third
of the reemployed workers, over three-fifths were found employed in manu
facturing industries--with one-fifth in automotive equipment plants, and close
to that proportion in the automobile industry. Nonmanufacturing industries,
then, accounted for one-fourth of the reemployed, and government for onetenth.
Assistance in Finding Jobs. The principal sources of job leads, cited by
over half of the respondents, were the State employment service and friends
or relatives. Others were the union, newspaper ads, and direct application.
However, the principal source cited as actually locating present job was
friends or relatives, cited in almost half the cases; the second most impor
tant source was the union which was credited with locating the jobs of 1 out
of 4 of the reemployed workers; other sources were named by much smaller
proportions of workers.
Mobility and Reemployment. About 2 out of 3 displaced workers stated that
they had limited their job search to their home city. A greater proportion
of the unemployed had thus limited themselves than had the employed workers,
and a much smaller ratio of unemployed to employed had extended their search
for jobs more than 50 miles beyond home.
The sizable number of displaced workers who obtained jobs with the
same company in other areas provides an opportunity to make a special study
of the characteristics of these transferees and to compare them with the
employees who had not left the area. As indicated earlier, the union con
tract permitted all workers whose actual jobs were moved to another plant
to move with their jobs and retain all their seniority as long as they worked
at those jobs. All others had transfer rights to any plants covered by the
union’ s master agreement and would retain seniority only for purposes of
employee benefits, such as vacation pay, pension, etc.
The workers who chose to move with their jobs amounted to some
30 percent of the number eligible and 20 percent of all displaced workers.
They constituted by far the greater number of all transferred employees.
Chart 5 presents a comparison of certain characteristics of the transferring
workers with those of all displaced workers.
Only 7 percent of the transferring workers were women, compared
with 21 percent of all displaced worker s (table 14). The overriding influence
would seem to be the fact that in most cases husbands were working in the
home area.
39
5. A u to m o tiv e Eq u ip m e n t P la n t - C o m p a ris o n o f Selecte
too
90
80
70
60
50
40
30
20
to
0
MEN
M A RR IED
OWN
HOME
TWO OR
MORE
DEPENDENTS
AGE GROUP
55-59
40
T a b le 14. A u tom otiv e E quipm ent P la n t --S e le c t e d C h a r a c t e r is t ic s of
W o r k e r s Who T r a n s fe r r e d to O ther P la n ts of the C om pany C om p a red
W ith A ll D is p la ce d W o rk e rs
Percent
Characteristics
T ransferred
workers
All displaced
workers
All w o rk ers.................................................
100
100
Sex:
M a le ................................................................
F em ale............................................................
93
7
79
21
Age:
Less than 35
35 - 44 years
45 - 54 years
55 - 59 years
60 - 64 years
y e a r s ...................................
..............................................
..............................................
..............................................
..............................................
1
2
51
38
8
3
3
53
25
15
Education:
No high school ............................................
Some high sch o o l........................................
High school graduate .................................
29
38
33
36
32
32
Marital status:
M a rr ie d .........................................................
S in gle..............................................................
Other ..............................................................
85
2
13
85
5
10
Dependents:
N o n e................................................................
i .......................................................................
2 .......................................................................
3 .......................................................................
4 or more .....................................................
15
33
22
17
13
24
38
18
11
9
Home ownership:
Own or buying home .................................
Renting home ..............................................
74
26
84
16
41
A comparison by age reveals slightly fewer transferees below 55,
a considerably greater proportion in the 55-59 age group, and fewer at age
60 and over. The fact that 38 percent of the transferred workers were age
55-59 indicates that fear of unemployability at that age level and unwilling
ness to lose pension benefits were compelling factors. Two typical
comments:
nIt seemed advisable and practical, considering age,
experience, etc. , to go with the job. The move has been
disturbing to family life. . . . However, to protect pension
rights, insurance, and other benefits, I intend to stay with
the company. n (Age 58)
!,I came with my work in order to save pension rights. M(Age 56)
While there was not much difference in marital status, the trans
ferees as a group had more dependents than other workers. On the ques
tion of home ownership, 3 out of 4 of those who responded were homeowners,
a smaller ratio than for the entire group of displaced workers, about 5 out
of 6 of whom were homeowners.
That a great deal of hardship was involved in the transfer is shown
by the fact that by far the majority of those who stated that they owned their
homes owned homes in the closed plant area. This meant: (l) for many,
weekly commuting the 150 miles between the two areas; and (2) the burden
of maintaining two homes. A number of workers commented on this, for
example:
nI own my home in / the closed plant areaJ and we drive back
andJEorth each weekend. . . . We rent an apartment in /the job
area./ and pay $80.00 a month rent.”
MI have to travel each weekend and. . . rent an apartment and
live apart from my family, which does not make for happiness. ”
,!The big thing is I canTt be at home with my family where
I belong, and the added expense of traveling and keeping two
homes. M
A wife: ”I!m only in / the job area/ every other week with
my husband and we haven’t been apart for 35 years. ”
Influences inducing transferred workers to keep their homes in the
closed plant area included fear that the new jobs would be eliminated, age
of the transferees and nearness of retirement, close family and social ties,
children in school, and similar factors. As time passes, more of them may
sell their homes and put down some roots in the job area. Others may rent
their old homes in the expectation of returning to them after retirement.
Nevertheless, the costs of transfer--economic, personal, and social--were
high.
42
These costs indicate some of the reasons why so many displaced
workers did not take advantage of the favorable terms of transfer that had
been negotiated for them. The following are statements by the workers
who had chosen not to transfer with their jobs:
nI could have went to /the job area/ with the company, but I
didn't want to sell out and go there and get stuck. They aren't
too sure how long they will be there. ,r
"The reason I didn't go with the company is I don’t think they
will be there a couple of years and start moving somewhere
else, or they will sell the business. Another thing is I own
a new home and if I would sell it here and buy there, I
would lose my sh irt."
"W e were told if we wanted to go to sign up. We would have
had to sell everything and start over again. It is not easy
for people to give up what they took a long time to get
together. . . . Many went and quit, as it was impossible to
keep two places. "
Some of the transferred workers complained that the company and
the workers were not being treated equally by the tax laws. They stated
that the company could write off the costs of its move, while the workers
received no deductions for their heavy transfer costs. Some examples:
"Why aren't we allowed to write our moving expenses off
on taxes the same as the company?"
"If my expenses were deductible from income taxes, we
would be better off. "
"If a company makes a move. . . does said company have to
bear cost of moving or is this cost charged off in some
manner against their taxes? If a salaried employee trans
fers with the company, the cost of moving for said salaried
help is paid for by the company. But if an hourly worker
goes along with the company, he must bear his own cost of
moving. "
Training and Reemployment. About 6 percent of the displaced workers
reported having taken training courses since leaving the automotive equip
ment plant. Only a little more than 2 out of 5 workers stated that they
would be interested in taking training if it were offered without cost to them.
This group comprised roughly one-third of the employed workers and twothirds of the unemployed.
43
The type of training desired covered a wide variety of occupational
fields. Among those more frequently mentioned were welding, machinist,
tool and die, office and clerical, machine operation, and electrician. Some
displaced workers attested to the importance of training in obtaining reem
ployment:
nIn the smaller shops you have to be experienced in reading
blueprints and set up your own machine. I do not have enough
training in this field to qualify. fr (Age 51)
nI think if a person can read a blueprint thoroughly, age
doesn’t matter much in getting employment. M (Age 51)
”1 was selected for this position not only due to my past
experience in drafting, but also my background in electronics
which I secured by home study. n (Age 5 2)
As noted earlier, the company publicly announced a $ 100, 000 retrain
ing fund at the time of the shutdown, but later said that the age, educational
level, or aptitude scores of most of the displaced workers made them ineli
gible for retraining. Various workers commented bitterly, feeling the
original offer had not been sincere. One stated: nI feel that the company,
in announcing a retraining program and then abandoning it, has harmed our
chances of employment in this area. "
Some Job Effects of Displacement
Effects on Earnings. Close to three-fifths of all employed workers, includ
ing transferred workers, were earning lower hourly pay than at the automotive
equipment plant. (See table 15.) For half of this group, the drop in pay was
at least 20 percent. Only 1 out of 10 reemployed workers received higher
earnings. A sizable proportion (almost one-third) were employed at the same
earnings levels, due largely to the interplant transfers.
Workers who had been in the lowest pay category at the automotive
equipment plant, under $2. 50 per hour, experienced the greatest decrease
in earnings. More than one-third of this group experienced a decrease in
pay of at least 30 percent. On the other hand, the highest paid group, $3. 70
and over, had the largest proportion of workers with increased earnings.
44
Table 15.
Automotive Equipment Plant--Change in Earnings Level
Percent on current job receiving-Hourly earnings
level at closed
plant
At
Total least 20. 0 - 1 0 .0 - Up to
Higher
Same
30% 29. 9% 19.9% 9.9% earnings1 earnings
less
less
less
less
All employed
workers .........
100
17
12
16
13
32
10
Under $ 2 .5 0 ...........
100
36
11
8
12
24
9
$2. 50 - $2. 8 9 .........
100
14
9
11
9
47
10
$2. 90 - $3. 2 9 .........
100
18
8
23
14
29
8
$3. 30 - $3. 6 9 .........
100
11
21
14
22
21
11
$ 3. 70 and over . . . .
100
12
7
26
2
30
23
Within 5£ either way.
Chart 6 presents the change in earnings of reemployed workers by
age and education. In the oldest age group, 55 years and over, a greater
proportion of workers earned 20 percent less pay and a smaller proportion
had increased earnings than workers in the 45-54 age group. Both of these
age groups fared worse than the relatively few workers in the two lower age
groups. A considerably higher proportion of high school graduates than
nongraduates increased their earnings. About an equal proportion of workers
with no high school and workers with some high school had experienced a
drop in earnings, but the percentage decline in earnings was smaller for the
group which had had some high school.
A number of the workers felt deeply about the loss of employee
benefits, particularly the loss of pension rights, upon displacement, for
example:
"I think the company should compensate all those people under
50 years old who are unable to claim pension rights. n (Age 44)
nI worked for the company for 2 7 -1 /2 years. Yet I will not
receive my pension, and the company can start the same
cycle again with a new set of employees. M (Age 49)
45
nThe thing Ifm very bitter about is, I lost all my insurance,
and I get no pension, and I will receive only a small percent
of my severance pay.11 (Age 49)
In some families, about 10 percent of the total adjustment to the loss
of income took the form of a previously nonworking wife (or husband) obtain
ing employment--mainly part-time work for spouses in the case of the reem
ployed workers and full-time work for spouses of the unemployed workers.
Chart 6. Automotive Equipment Plant-C hange in Earnings of
Reemployed W orkers, By Age and Education
PERCENT
100
80
LOWER
60
EARNIN GS
40
--------------- 1
---------------- 1
---------------- 1
—
20
1
PERCENT SAME OR HIGHER EARNINGS
0
TOTAL
0
20
0
20
40
60
80
40
60
80
AVERAGES
___________
__________ 1
___________ 1
___________ 1
_____ _____ 1
100
80
60
40
20
AGE GROUP
“i------- r
UN DER 35
35-44
45-54
55 AND O VER
100
80
60
40
20
EDUCATION
NO H IG H SC H O O L
S O M E H IG H SCHO OL
H IG H SC H O O L GR AD U AT E
At least 20 % lower earnings
Same earnings
Less than 20 % lower earnings
Higher earnings
46
Changes in Type of Job. Professionals, draftsmen, and skilled workers,
such as tool and die makers, machinists, and maintenance workers, seemed
to have had little difficulty in securing jobs in their specialties. (See
table 12.) In other occupations, however, even among clerical workers and
supervisors, relatively small proportions were reemployed in the same occu
pations. In the largest group, the lesser skilled machine operators, close to
1 out of 5 of the reemployed were working as laborers or in custodial jobs.
In comparing their current jobs with their jobs at the automotive
equipment plant, a majority of the reemployed workers reported their
present job as less favorable in wages and fringe benefits. They were about
equally divided in evaluating the type of work. More than 4 out of 5 thought
the new job was better or the same in terms of supervision. About one-third
or more felt that, in terms of travel to work, hours of work, and prospects
for promotion, the current jobs were worse. No more than one-fourth found
any improvement in these three items.
Effects on Union Membership. Before displacement, 94 percent of the
workers surveyed were union members. This proportion had declined to
69 percent at the time of the survey. It may be noted that membership was
maintained by the bulk of the displaced workers who had remained unemployed
or were not seeking jobs--alm ost 80 percent of each group. Despite the ad
mitted help of the union in securing jobs for a sizable number of the reem
ployed workers, little more than 60 percent were members of a union at the
time of the survey. This may have been partly due to employment of many
in nonunionized plants or industries.
Effects on Seniority. As noted earlier, close to 7 out of 8 displaced workers
had had at least 26 years of seniority at the closed plant. This seniority
which had meant protection against layoffs, was totally lost except for the
1 out of 5 displaced workers who transferred with their jobs to another city
150 miles away. Seniority also conferred certain economic benefits, such
as longer vacations and pension rights, and these also were lost by all but
those who transferred to other plants of the company. The significance of
the loss of seniority is indicated in the following comment by a 47-year old
man who had had 27 years of seniority at the closed plant:
’’Work at / a second shop/ May 1962 to March 1963.
Reason, less than one year of seniority.”
Laid off.
Other comments were:
”1 feel strongly that a man has as much right to his full
seniority as the investors of money have to their money. ”
”1 also think that some kind of laws should be passed that,
when a person spends practically a lifetime on one job, he
should not be thrown out on the street with no protection or
security for his family because a company decides to move
their plant out of town. ”
47
IY.
Partial Closing of a Glass Jar Plant
A plant located in the Midwest closed its glass jar and a small paper
box manufacturing operations in March 1962, displacing approximately 600
workers. Both production and clerical workers were included in the layoff.
About 800 other workers continued to be employed at the plant in its other
activities, including a zinc rolling m ill, a metal products division, the
company1s laboratories, and its main offices. The company has a number
of other plants in different areas of the country and various subsidiary firm s.
It has continued to manufacture glass products in some of the plants. The
survey on which this study is based was conducted in November 1962, 8
months after the March 1962 layoff.
Description of the Plant
The plant was about 75 years old. In announcing the closing of the
glass and paper box operations to the employees in January 1962, the com
pany stated that it nis a high cost plant, with a low productivity, and that it
cannot compete with more efficient operations throughout the industry. n Two
of the company's other glass jar manufacturing plants were newly constructed
and had more modern equipment. In the opinion of a union representative, the
move was motivated more by a desire to obtain lower wage rates and fringe
benefit costs.
The labor market in which the plant is located is a highly industrial
ized area with a labor force of close to 50,000. Manufacturing accounts for
45 percent of all nonagricultural employment of the area. The majority of
manufacturing employment is in the durable goods industries, and the largest
industry is automotive equipment and parts. Other important manufacturing
industries include electrical machinery, primary metal products, and food
and kindred products. The glass manufacturing plant was the second largest
employer in the area a little over a half-year prior to the shutdown of the
glass operations. A half-year after the shutdown, it was still the sixth
largest employer.
At the time of the layoff, March 1962, the unemployment rate was
7 .5 percent, and the labor market area was designated by the Department of
Labor as one of substantial unemployment. That rate, however, represented
a decline of more than 4 percentage points from a year earlier. Unemploy
ment continued to drop and the rate stood at 5. 1 percent in November 1962,
the month of the survey. The extent of the decline appears to have been
largely seasonal, as the rate rose to 6 .9 percent by March 1963. Despite
the loss of 600 jobs at the company, total manufacturing employment in the
area rose slightly between January and November 1962. Total nonagri
cultural employment increased by 4 percent.
48
Measures to Ease Displacement
The employees were informed of the closing of the glass jar and
paper box operations on January 12, 1962, a little more than 2 months
before the shutdown on March 19, 1962. Within the 2-month period, oper
ations were gradually decreased until the date of the closing. The majority
of the workers were represented by one union, and some specialized crafts,
by two others. All three unions were AFL-CIO affiliates.
Pension Benefits. The workers were covered by group insurance
and by pension plans provided for in the three union contracts, and a salaried
workers1 plan. A few who had reached retirement age received their
pensions. Early retirement at reduced rates was provided for in all three
union contracts and in the plan for salaried employees. One contract,
covering 7 5 percent of the displaced workers, permitted early retirement
at age 60 with 15 years of service; the other contracts, at age 55. A vested
right in a delayed pension was provided for by the plan for workers repre
sented by the largest of the unions and by the salaried workers1 plan.
Separation Payments. Displaced employees who had been employed
any time in 1962 obtained separation pay. It was based on length of service
and hourly rate. The amounts paid ranged from $ 160 to $ 690. A few older
employees who were ineligible for retirement benefits received $ 900.
Unemployment Compensation. About three-fourths of the displaced
workers received unemployment insurance benefits for an average of 18
weeks. One-third were paid benefits for 21 weeks or more. These figures
should be interpreted conservatively since the survey was conducted only 8
months after the plant closing, and a number of workers had not yet exhausted
their unemployment insurance.
Placement of Displaced Workers. A firm which took over the closed
box department of the glass jar plant had hired about 30 of the displaced
workers at the time of the survey. Despite the subject company's policy of
hiring only former employees for its metal operations in the area, it appears
from the employment information contained in the questionnaires that only a
small proportion of the displaced workers were transferred to those oper
ations or were employed by any of the company's plants located in other areas.
The company temporarily hired a retired personnel officer to assist
displaced workers by writing resumes, talking with other personnel people
in the area, and arranging interviews. Also, before the shutdown, it allowed
workers time off for interviews with representatives of the State employment
service.
49
Personal Characteristics of the Displaced Workers
The ratio of men to women among the displaced workers was roughly
3 to Z; nearly all were white. (See chart 7 and table 16.) The median age
at termination was 49. One-third were between age 45 and 54, and nearly
as many were older; only one-tenth were under 35.
Four out of 5 were married; most of the remainder were divorced or
widowed. A sizable proportion (3 out of 10) had no dependents, and almost
as many had only one dependent. Three-fourths owned their own homes.
Four out of 10 workers had had no high school education. A slightly smaller
proportion had gone to school above the elementary level but had not gradu
ated from high school. A little less than one-fourth were high school
graduates.
Plant seniority averaged 18 years. Only 1 out of 8 had fewer than 11
years' seniority. Almost 1 out of 3 had at least 21 years of seniority.
C h a rt 7. G l a s s J a r P l a n t - P e r s o n a l C h a ra c te ristic s of D is p la c e d W o rk e rs.
NUMBER OF
DEPENDENTS
UNDER-35
SEN IO RIT Y-YEAR S
HIGH SCHOOL
EDUCATION
50
Table 16,
Glass Jar Plant--Selected Characteristics and Employment
Status of Displaced Workers
Employment status1
All
dis placed
workers
Characteristics
Em Unem
Total2 ployed ployed
Not
seeking
employment
Percent
100
100
50
39
n
58
42
100
100
67
27
23
61
10
12
Race:
White ..................................
Other ..................................
93
7
100
100
51
40
39
40
10
19
Age:
Dess than 35 years . . . . .
35 - 44 y e a rs....................
45 - 54 years . . . . . . . . . .
55 years and o v e r...........
11
26
34
29
100
100
100
100
72
59
55
28
24
39
40
44
4
2
5
28
Education:
No high school........... ..
Some high s c h o o l...........
High school graduate . . .
40
37
23
100
100
100
37
53
63
46
41
32
17
6
5
Hourly earnings level:
Under $ 1 .9 0 ........... ...........
$ 1.90 - $2. 29 . ................
$ 2 .3 0 - $ 2 . 6 9 ..................
$ 2. 70 and o v e r ............. ..
37
24
17
22
100
100
100
100
29
53
60
70
61
33
30
22
10
14
10
8
Total, all workers . . . .
Sex:
Male
F e m a le ......... ..
1
2
..
At time of the survey.
Because of rounding, sums of individual items may not equal 100.
51
Job Hunting Experience
Employment and Unemployment. The search for employment was a
difficult experience for most of the displaced workers; for many it was
fruitless. At the time of the survey, only one-half of the displaced workers
were employed. Close to two-fifths were unemployed, and the remaining
tenth were not seeking work. (See table 16. )
The result of the layoff was not only a high level of unemployment
but also unemployment of substantial duration. More than 2 out of 5 of the
displaced workers were out of work a half-year or more. Three out of 5
experienced at least 16 weeks of unemployment. (See chart 8. ) Fewer than
1 out of 10 lost no time at all; and fewer than 1 out of 4 lost less than 6 weeks
of work. These figures do not include data covering retiring employees,
most of whom collected a number of weeks of unemployment compensation
before retiring.
Two out of 5 displaced workers had held no jobs at all by the time of
the survey. Close to half had had one job. One out of 6 had had two or more
jobs.
Reemployment of Women. There was a marked difference between
the success of male workers and female workers in obtaining employment.
Two out of 3 men were employed compared with little more than 1 out of 4
women. As many as three-fifths of the women workers were unemployed,
and the remainder were not seeking work. (See table 16. )
This contrast in the employment experiences of men and women is
highlighted by the data on duration of unemployment (chart 8). Twenty-three
percent of the men and 70 percent of the women were unemployed at least a
half year. On the other hand, 36 percent of the men and only 4 percent of the
women had less than 6 weeks of unemployment.
While unemployment among men was heaviest in the older age groups,
age 55 and over, and among those with the least education (no high school
training at all), women experienced heavy unemployment in all age groups
and at all educational levels. (See tables 17 and 18 and chart 9 .)
Age and Reemployment. The rate of employment declined in each
successive age group (table 19). Unemployment increased from 24 percent
of those under age 35 to 60 percent of workers age 55-59. The majority of
the workers in the 60-64 age group stated that they were not looking for work.
In the case of men, age appears to have become an important factor
in obtaining employment in the late fifties (table 17 and chart 9). The rate of
unemployment rose from one-fifth to one-half between age group 45-54 and
age 55-59. The rate of unemployment of women was high at all ages but rose
to a level of 70 percent as early as age 45-54.
52
a r t 8. G l a s s J a r P l a n t — L o n g - T e r m U ne m p lo y e d as Pe
of T o t a l Dis pla ced W o r k e r s
PER*
90
DURATION OF UNEMPLOYMENT
80
16 w e e k s o r mo r e
26 w e e k s o r m o r e
70
60
50
40
30
20
I0
0
TO TAL
MEN
WOMEN
53
T able 17.
G la ss Jar P la n t--E m p lo y m e n t Status o f D is p la ce d W o r k e r s ,
b y Sex and A ge G rou p 1
Percent
Ag
Employment status
All
dis
Not
All
E m Unem
placed
wo rk seeking
ployed ployed
workers
ers
employment
Men
All age groups . .
Less
35
45
55
60
65
than 35 years .
- 44 years . . . .
- 54 years . . . .
- 59 years . . . .
- 64 years . . . .
years and over
All age groups
Less
35
45
55
60
65
than 35 years .
- 44 years . . . .
- 54 years . . . .
- 59 years . . . .
- 64 years . . . .
years and over
100
100
26
63
11
7
25
38
16
13
1
100
100
100
100
100
100
37
35
26
24
9
0
58
63
70
71
35
33
5
2
4
5
56
67
1 Age group at termination.
Note: Differences between tables 16 and 17 are due to exclusion of
questionnaires that did not contain data for both sex and age.
54
T a b le 18.
G la ss Jar P la n t--E m p lo y m e n t Status o f D is p la ce d W o r k e r s ,
by Sex and E du ca tion al L e v e l1
P ercen t
E d u ca tion al le v e l
A ll
d is
p la ce d
w ork ers
E m p loy m en t status
A ll
w ork
ers
Em
p lo y e d
U nem
p lo y e d
Not
seek in g
em p loy m en t
M en
A ll edu ca tion a l le v e ls . . .
100
100
66
24
10
No high s c h o o l ..........................
Som e high s ch o o l .....................
High s c h o o l graduate and
h i g h e r ................................... .
42
33
100
100
50
73
32
23
18
4
25
100
85
11
4
W om en
A ll edu ca tion a l le v e ls . . .
100
100
26
63
11
No high s c h o o l ..................... .. .
Som e high s c h o o l .....................
High s c h o o l graduate and
h ig h er .....................................
38
42
100
100
19
33
65
59
16
8
20
100
27
65
8
1 E du ca tion al le v e l at te rm in a tio n .
N ote: D iffe r e n c e s betw een ta bles 16 and 18 a re due to e x c lu s io n of
q u e stio n n a ire s that did not con tain data fo r both se x and edu ca tion .
55
Chart 9. G lass Jar Plant— Unemployment by-Sex, Age, and Education
P E R C E N T OF D IS P L A C E D W O R KER S
A G E GROUPS
0
10
20
30
40
50
60
U NDER 35
35-44
45-54
55-59
U NDER 35
35-44
45-54
55-59
P E R C E N T OF D IS P L A C E D W O R K E R S
70
80
56
T a b l e 19.
G l a s s J a r P l a n t - - E m p l o y m e n t S ta tu s of D i s p l a c e d W o r k e r s , by
E d u c a t io n a l L e v e l and A ge G r o u p 1
Percent
A ge group
A ll
d isp la ce d
w orkers
E m p lo y m e n t S tatu s1
2
A ll
w orkers
Em
p lo y e d
U nem
p lo y ed
Not s eek in g
em p lo y m en t
A ll w o r k e r s
A l l a g e g r o u p s ...........................
Less
35
45
55
60
65
th a n 35 y e a r s ........................
- 4 4 y e a r s ................................
- 54 y e a r s ................................
- 59 y e a r s ................................
- 6 4 y e a r s ................................
y e a r s a n d o v e r .....................
100
100
49
40
11
11
27
34
14
12
2
100
100
100
100
100
100
72
58
53
38
16
8
24
40
43
60
30
25
4
2
4
2
54
67
N o h ig h s c h o o l 2
A l l a g e g r o u p s ...........................
Less
35
45
55
60
65
th a n 35 y e a r s ........................
- 4 4 y e a r s ................................
- 5 4 y e a r s ................................
- 59 y e a r s ................................
- 6 4 y e a r s ................................
y e a r s a n d o v e r .....................
100
100
38
45
17
5
15
32
24
20
4
100
100
100
100
100
100
83
48
46
32
15
11
17
46
47
64
29
33
0
6
7
4
56
56
S o m e h ig h s c h o o l 2
A l l a g e g r o u p s ...........................
Less
35
45
55
60
65
th a n 35 y e a r s ........................
- 4 4 y e a r s ................................
- 5 4 y e a r s ................................
- 59 y e a r s ................................
- 6 4 y e a r s ................................
y e a r s a n d o v e r .....................
100
100
54
40
6
12
30
40
10
7
1
100
100
100
100
100
100
62
60
53
55
25
0
35
40
43
45
31
0
3
0
4
0
44
100
H igh s c h o o l g r a d u a t e and h i g h e r 2
A l l a g e g r o u p .............................
Less
35
45
55
60
65
th a n 35 y e a r s ........................
- 4 4 y e a r s ................................
- 5 4 y e a r s ................................
- 59 y e a r s ................................
- 6 4 y e a r s ..................... ..
y e a r s a n d o v e r .....................
100
100
64
31
5
22
41
28
5
4
100
100
100
100
100
76
65
68
29
0
17
33
32
71
7
2
0
0
67
33
0
1 A ge and ed u ca tio n a l le v e l at te r m in a tio n .
2 At tim e of su rv e y .
N o te : D i f f e r e n c e s b e t w e e n t a b l e s 16 a n d 19 a r e due to e x c l u s i o n of
q u e s t i o n n a i r e s w h ic h d id not c o n t a in d a t a f o r both a g e a n d e d u c a t i o n .
57
A bout 1 out of 3 resp on d en ts to the w ritte n q u estion n a ire v o lu n te e re d
com m en ts co v e rin g a b roa d range of s u b je c ts , the m o st freq u en t o f w hich
w as the com p lain t against age b a r r ie r s en cou n tered in the path o f r e e m p lo y
m ent, The follo w in g a re som e ty p ica l co m m e n ts:
" A ll a p p lica tio n s r e je c te d b e ca u se o f age and se x . M (Age 58)
MT oo old to get a jo b any p la ce e ls e and not old enough to draw
m y s o c ia l s e c u r ity . 11 (Age 58)
"I am now a lm o st 42 y e a r s old and they d on 't se e m to want to
h ire a p e r s o n a fte r they re a ch the age o f 40. 11 (Age 42)
MAt m y a g e, they don 't want you in f a c t o r ie s . I w ould be w illin g
to take a tra in in g co u r s e in anything that m y sch o o lin g and age
w ould let m e . " (Age 49)
"E m p lo y e r s should be u rg ed to h ire o ld e r e m p lo y e e s as long as
they a re ca p a b le . We have to liv e a ls o and d on 't have a ch a n ce. 11
(Age 58)
"A t 60, one is as old as one fe e ls and to think that a ll I am good
fo r at this span o f life is to be a 'baby s it t e r ' is not a g ood f e e l
ing fo r o n e 's m o r a le and m ental state. " (Age 60)
E du ca tion and R e e m p lo y m e n t. In g e n e r a l, th ose who had attained
h igh er edu ca tion a l le v e ls found re e m p lo y m e n t m o r e e a s ily . (See table 1 9 .)
T hu s, 2 out of 3 high s ch o o l gradu ates w e re e m p lo y e d , co m p a re d with a
little m o r e than h a lf o f those who had som e high s ch o o l ed u ca tion but did not
graduate and 2 out of 5 w o r k e r s who had no high s ch o o l tra in in g. G re a te r
ed u ca tion help ed o ld e r w o r k e r s in finding re e m p lo y m e n t (ex cep t fo r high
s c h o o l gradu ates age 5 5 -5 9 w h ere the sm a ll nu m ber in v olv ed d oes not p e rm it
v a lid in terp reta tio n ).
High s ch o o l gradu ation w as im portan t fo r the m en , and a ll but a few
o f the m a le gradu ates w e re re e m p lo y e d (table 18). In co n tra s t, on ly h alf o f
the m en with no high sch o o l ed u ca tion w e re w o rk in g . In the ca se o f the
w om en , edu ca tion a l le v e l a p p ea red to m ake little d iffe r e n c e in se cu rin g jo b s .
(See ch art 9. )
The fo llo w in g a re com m en ts on the edu ca tion a l b a r r ie r :
"W hen you a re past 35 y e a rs old and h a ven 't gradu ated fr o m high
s c h o o l, no one wants you. " (Age 49)
"I have found during m y 7 m onths o f un em ploym ent that a ll
m a n u fa ctu re rs re q u ire a high sch o o l ed u ca tion b e fo r e they even
c o n s id e r h irin g . " (Age 62)
58
Skill L e v e l and R e e m p lo y m e n t. In view o f the fa ct that w o r k e r s at
the g la s s ja r plant w e r e paid under an in cen tiv e s y s te m , th e re w as p ro b a b ly
le s s d ir e c t rela tio n sh ip betw een h o u rly ea rn in gs and individual sk ill le v e ls
than w ould e x is t if h o u rly ra te s w e re p a id . N e v e r th e le s s , the co n tra st in
re e m p lo y m e n t e x p e r ie n c e s betw een the h ig h er and lo w e r sk ille d w o r k e r s
should be and is b ro a d ly in d ica ted by a c o m p a r is o n betw een the h igh est and
lo w e s t earnin g le v e ls (table 16). C lo se to tw o -fifth s o f the w o r k e r s ea rn ed
le s s than $ 1 .9 0 an hou r at the g la s s ja r plant; and a little m o r e than o n e fifth ea rn ed $ Z .7 0 o r o v e r an h ou r. Only 29 p e r c e n t o f the lo w e s t paid
g rou p w e r e e m p lo y e d at the tim e o f the s u r v e y , w h ile 70 p e rce n t o f the
h igh est paid w o r k e r s w e r e e m p lo y e d .
A n o ccu p a tio n a l a n a ly sis r e v e a ls a high le v e l of un em p loym en t in
u n sk illed and s e m is k ille d p ro d u ctio n jo b s , such as la b o r e r s , m a ch in e o p e r
a t o r s , and p a c k e r s , with u n em ploym ent ra tes fr o m 36 to 71 p e r c e n t. (See
table 2 0 .) In c o n tra s t, u n em ploym ent w as r e la tiv e ly low am ong d isp la c e d
m ain ten an ce w o r k e r s and s u p e r v is o r s .
The fo llo w in g two statem en ts by d is p la c e d ja r plant w o r k e r s a re a
co m m e n ta ry on this situation:
f,I found th ere w e r e no jo b s a v a ila b le f o r g e n e ra l la b o r o r s e m i
sk ille d w o r k e r s . n (Age 28)
"I found th e re a re sk ille d jo b s ju st w aiting f o r the a sk in g. ,r
(A ge 30)
In d u stries P ro v id in g J o b s . Of th ose who had obtain ed e m p lo y m e n t,
on ly about h a lf w e r e w ork in g in m a n u factu rin g in d u s tr ie s . (See table 21. )
The la r g e s t grou p am ong th e s e , constitu tin g 21 p e r c e n t o f a ll re e m p lo y e d
w o r k e r s , w e r e e m p lo y e d in the g la s s in d u stry , a lm o s t a ll o f them in oth er
g la s s com p a n ie s lo ca te d in o th e r a r e a s . A c o n s id e r a b ly s m a lle r p r o p o r tio n
had s e c u r e d jo b s in the m anu factu re of co rr u g a te d co n ta in e r s , with the fir m
w h ich had taken o v e r the su b ject co m p a n y 1s p a p er b o x o p e ra tio n s . Only 6
p e r c e n t o f a ll re e m p lo y e d w o r k e r s w e r e e m p lo y e d in the dom inant auto and
auto p a rts in d u stry . The r e s t w e r e sca tte re d am ong s e v e r a l d iffe re n t m a n u
fa ctu rin g in d u s trie s .
A bout 1 out of 3 o f the total w e r e e m p lo y e d in nonm anufacturing in d u s
t r i e s , including co n s tr u ctio n , h o s p ita ls , re ta il tra d e , d o m e s tic s e r v ic e , and
m any o th e r s . Of the rem a in in g e m p lo y e d w o r k e r s , m o s t w e r e w ork in g in
g ov ern m en t a c t iv it ie s , p r im a r ily at a State c o lle g e and the m u n icip a l p u b lic
s c h o o ls ; and the r e s t w e r e s e lf e m p lo y e d .
A s s is ta n c e in Finding J o b s . The s o u r c e s m o s t w id e ly u sed in seek in g
jo b s , ea ch cite d by m o r e than h a lf o f the w o r k e r s , w e re the State e m p lo y
m ent s e r v ic e and frie n d s o r r e la t iv e s . A substantial num ber a ls o stated that
T a b le 20.
G lass
Per cen tage
d is tri
b u tion
at
clo sed
p la n t
O c c u p a t i o n at
c l o s e d p la n t
J a r P l a n t - - E m p l o y m e n t B e fo r e and A ft e r T e r m in a t io n , b y O c c u p a tio n
E m p l o y m e n t s t a t u s at s u r v e y d a t e ( p e r c e n t )
E m p l o y e d in p r e s e n t j o b as
A ll
U nem
M a in te w ork
O per
p loy ed
Laborer
nance
ers
ator
w orker
C le ri
Super
cal
v isor
w orker
A ssem
C u sto
b ly o r
d ia l
p ack in g
w orker
w orker
D om es
tic o r
re stau - O ther
rant
w orker
O p e ra to r o r m a ch in e
a t t e n d a n t ......................
20
100
39
28
3
12
_
5
2
9
. .
M a in ten a n ce w o r k e r .
17
100
11
14
51
11
5
5
1
2
--
--
L a b o r e r . . . * ...................
17
100
36
10
10
21
--
4
19
--
--
5
100
7
3
7
7
59
11
3
5
100
44
4
--
4
40
4
4
--
1
--
l 1)
--
4
9
--
13
2
--
--
--
15
5
11
--
11
S u p e rv isor
. . . . . . . . .
C le r ic a l w o rk e r
....
P a ck in g w o r k e r
. *. .
33
100
71
I n s p e c t o r . . . » ................
3
100
58
1
L e s s th an 1 p e r c e n t
--
--
2
3
--
60
T able 21.
G la ss Jar P l a n t - T y p e s o f In d u stries P ro v id in g
C u rren t J o b s 1
Indu stry
T o ta l, a ll e m p lo y e d w o r k e r s
P ercen t of
e m p lo y e d
w ork ers
100
M a n u fa c t u r in g .....................
G la ss ...................................
C on tain ers (co rru g a te d )
A u tos and auto p a r ts . . .
F o o d p r o d u c t s ................
Steel p r o d u c t s .................
T o o l s ...................................
F ou n d ry ............................
O ther ...................................
53
21
9
6
N onm anufacturing ................
C o n s t r u c t i o n .......................
H o s p i t a l .................................
D o m e s tic s e r v i c e ..............
D ep artm en t s t o r e ..............
L aundry and d ry clean in g
V ending m a c h in e s ..............
R e s t a u r a n t ............................
O t h e r ........................................
31
3
1
1
1
1
20
G o v e r n m e n t .....................................
State c o lle g e ..............................
State p r is o n s ..............................
County d e p a r t m e n t s .................
M u n icipal p u b lic s c h o o ls . . . .
O ther m u n icip a l d epartm en ts
11
4
1
1
4
1
S e lf-e m p lo y e d
1Jobs h eld at tim e o f the su rv e y .
2
2
1
1
11
2
2
5
61
they had u sed n ew spa p er ads and had app lied to oth er com p a n ies fo r jo b s .
F ew had gone to p riv a te em p loym en t a g e n cie s o r to the union in th eir jo b
se a rch .
T w o -th ir d s o f the w o r k e r s who a ctu a lly obtained em p loy m en t
cre d ite d frie n d s o r r e la tiv e s with the re s p o n s ib ility fo r lo ca tin g th eir c u r
rent jo b s . One out o f 6 cre d ite d the State em p loym en t s e r v ic e . O ther
s o u r c e s w e re in d ica ted by sm a ll p ro p o r tio n s of th ose who resp on d ed to this
qu estion .
M o b ility and R eem p loy m en t. It a p p ea rs that m o b ility had a s ig n ifi
cant in flu en ce on s u c c e s s in finding w o rk . T hu s, 3 out o f 5 u n em ployed
w o r k e r s had lim ite d th eir a re a o f jo b se a rch to th eir hom e city , co m p a re d
with 1 out of 3 d is p la c e d w o r k e r s who obtain ed em p loy m en t. On the oth er
hand, on ly 1 out o f 5 un em p loyed sought w ork fu rth e r than 50 m ile s fr o m
th e ir hom e city , as against 2 out of 5 of the r e e m p lo y e d . A s noted e a r lie r ,
rou gh ly h alf o f the la tte r , o n e -fifth o f a ll r e e m p lo y e d w o r k e r s , le ft th eir
hom e city to obtain w o rk in the g la ss in d u stry e ls e w h e r e . H om e ow n ersh ip ,
fa m ily t ie s , the s p o u s e ! s jo b , and in su fficie n t funds w e re am ong fa c t o r s
w hich appear to have a ffe cte d w illin g n e ss to seek jo b s outside the a re a . One
d is p la c e d w o r k e r said: nI w ould be w illin g to go anyw here to find w o rk if I
had the m on ey to get th e re . n
T rain in g and R eem p loy m en t. A sm a ll p r o p o r tio n of the d isp la ce d
w o r k e r s re p o rte d that they had taken trainin g c o u r s e s sin ce leavin g the
g la ss ja r plant. Such tra in e e s con stitu ted about 5 p e rce n t of the w o r k e r s
who had b een re e m p lo y e d and 3 p e rce n t of th ose still un em p loyed at the tim e
of the su rv e y .
The la rg e m a jo r ity of the re sp o n d e n ts, 4 out o f 5 e m p loy ed and 9 out
o f 10 u n em p loy ed , stated that they w e re in te re s te d in taking trainin g c o u r s e s
if they w e re o ffe r e d without ch a rg e . The kinds of trainin g d e s ir e d c o v e r e d
a w ide v a rie ty o f o ccu p a tion a l fie ld s , fr o m n u rsing and c le r ic a l w ork to
m achine o p e ra tio n and e le c t r o n ic s .
The r e co g n itio n o f the need fo r retra in in g d is p la c e d w o r k e r s is in d i
cated in the fo llo w in g co m m e n ts:
"N ot able to find w o rk , and not e x p e r ie n ce d in anything but
fa c t o r y w o rk . " (Age 37)
"T h is has taught m e that e v e ry o n e should have som e training in
a s p e c ia l fie ld . T h ere a re too m any untrained p eo p le like
m y s e lf look in g fo r any kind o f a jo b at any w a g e. " (Age 50)
62
Som e Job E ffe c ts of D isp la ce m e n t
E ffe ct on E a rn in g s. T h r e e -fo u r th s o f the re e m p lo y e d w o r k e r s
e x p e r ie n c e d a lo s s in ea rn in gs (table 22). F o r h a lf o f th ose with lo w e r
e a rn in g s, the d rop w as 30 p e rce n t o r m o r e . In addition, a substantial nu m
b e r had an ea rn in gs lo s s of betw een 20 and 30 p e r c e n t. O nly 19 p e rce n t of
the total nu m ber o f e m p lo y e d w o r k e r s in c r e a s e d th e ir ea rn in g s.
T a b le 22.
G la ss J ar P la n t--C h a n g e in E arn in gs L e v e l
P e r c e n t on cu rre n t jo b r e c e i v i n g - -
H ou rly ea rn in gs le v e l
at c lo s e d plant
At
20. 0 - 10. 0 T ota l le a st
29.
9% 19. 9%
30%
le s s
le s s
le s s
Up to Same H igher
9.9% e a r n - e a r n
ings
le s s in g s 1
100
37
17
10
10
7
19
............
100
50
6
6
11
6
21 .
$ 1 .9 0 - $ 2 . 2 9 .......................
100
41
12
12
9
12
14
$ 2 ,3 0 - $ 2 .6 9
100
16
31
10
8
8
27
100
37
19
13
10
5
16
A ll em p lo y e d w o r k e r s .
Under $ 1 .9 0
.......................
$ 2 . 70 and o v e r . . . . . . . . . .
1 W ithin 5£ eith er w ay.
Chart 10 show s that both age and ed u ca tion w e r e c lo s e ly re la te d to
change in ea rn in gs le v e ls . The g rea t m a jo r it y of w o r k e r s at age 45 and o v e r
and m o s t of those w o r k e r s with little o r no high s ch o o l ed u ca tion e x p e r ie n ce d
an h o u rly ea rn in gs lo s s o f at le a st 20 p e r c e n t. On the oth er hand, the bulk
o f the w o r k e r s w h ose ea rn in gs in c r e a s e d w e r e eith er under age 45 o r high
s c h o o l gra du ates o r both.
63
C h a rt 10. G la s s Ja r P la n t — Change in E a r n in g s o f
Reemployed W o r k e r s , by Age and Education
PERCENT SAME OR HIGHER EARNINGS
O
20
40
60
80
— r --------- 1----------- 1----------
PERCENT LOWER EARNINGS
IOO
80
60
40
20
-----------1 ■ 1----------- 1
]
w/rnmm
AVERAGES
i_______ 1---------- i----------
_______ 1-----------1-----------1-----------1---------- :
IOO
80
60
40
20
A G E G RO UP
UNDER 36
35-44
45-54
55 AND OVER
A majority of the reemployed also stated that their present job was
inferior to their job at the glass jar plant in fringe benefits. The effects of
the loss of employee benefits were expressed with particular poignance in
the following comments:
HI had four more years to work and I could have retired, but I
lost my factory pension and retirement along with my job. Now,
I have no life insurance or hospitalization. 11 (Age 57)
f*I went to work when my husband left me with 3 small children
and was going to finish my life with my factory pension. Now,
I have nothing.ri {Age 57)
64
Changes in T ype of Job. M any o f the r e e m p lo y e d w o r k e r s a cce p te d
jo b s at lo w e r s k ills . (See table ZO. ) F o r e x a m p le , about o n e -th ir d of the
s e m is k ille d m achine o p e r a to r s who obtained re e m p lo y m e n t w e re in la b o r e r
o r cu stod ia l jo b s . W hile a lm o st th r e e -fo u r th s o f the w om en w o r k e r s in
packing occu p a tio n s w e re u n em p loyed, a lm o st half o f th ose with jo b s w e r e in
d o m e s tic o r resta u ra n t w o rk . A nu m ber o f fo r m e r m aintenance w o r k e r s
w e re r e e m p lo y e d in m ach in e o p e ra to r o r la b o r e r jo b s .
In com p a rin g th e ir cu rre n t jo b with th eir jo b at the g la ss ja r plant,
a m a jo r it y co n s id e r e d th eir cu rre n t jo b w o r s e in te r m s of both w a g es and
frin g e b e n e fits. Only 25 p e rce n t fe lt th ere w as any im p ro v e m e n t in p r o s p e c t s
fo r p ro m o tio n . Substantial p ro p o r tio n s (40 p e r c e n t o r m o r e ) b e lie v e d that
th ere w as little change in th ree oth er a sp e cts of the j o b - - su p e rv isio n , tra v e l
to w o rk , and h ou rs o f w o rk .
E ffe c ts on U nionization. Union m e m b e rs h ip am ong the d is p la c e d
w o r k e r s fe ll sh a rp ly . B e fo re the la y o ff, 9 out o f 10 w o r k e r s b elon g ed to a
union. At the tim e o f the su rv e y , the ra tio of union m e m b e rs h ip w as re d u ce d
to 1 out o f 3. E ven am ong those w o r k e r s who w e r e e m p lo y e d , union m e m b e r
ship had d rop p ed by h a lf, fr o m 86 p e rce n t to 44 p e rce n t o f the total num ber
o f em p lo y e d w o r k e r s , p ro b a b ly due la r g e ly to re e m p lo y m e n t in u n org an ized
p la n ts. In the ca se o f the u n em p loy ed , m e m b e rs h ip fe ll to le s s than o n e -s ix th
o f the p re v io u s le v e l.
L o s s of S e n io rity . A s in d ica ted e a r lie r , the a v e ra g e d is p la c e d w o r k e r
had a ccu m u la ted 18 y e a r s o f s e n io rity at the g la s s ja r plant. One out o f fiv e
had had m o r e than 25 y e a rs o f s e n io r ity . The lo s s o f this s e n io rity sig n ifie d
a lo s s o f jo b s e c u r ity fo r s e v e r a l y e a r s to c o m e , sin ce th ose re e m p lo y e d by
oth er com p a n ie s w ould have the le a st p r o te c tio n against fu rth er la y o ff. It
a ls o m eant the lo s s o f a ccu m u lated c r e d its tow a rd e c o n o m ic b e n e fits,
including v a ca tio n , p e n sio n , and oth er frin g e e m p lo y e e b e n e fits.
65
V.
A C lo s e d F lo o r C o v e rin g P lan t
A flo o r co v e r in g plant in the E ast w as c lo s e d in June 1961, d isp la cin g
o v e r 300 w o r k e r s . T h is w as one of 7 plants of the sam e com p an y, a ll lo c a te d
in the e a s te rn part o f the cou n try. The su rv e y on w hich this study is b a se d
w as con d u cted in O cto b e r 1962, 16 m onths a fte r the plant c lo s in g .
D e s crip tio n of P lant
The shutdown r e p re s e n te d a co n s o lid a tio n o f the f ir m 's a c tiv itie s due
p r im a r ily to changing co n s u m e r ta ste s , a g re a tly d e c r e a s e d dem and fo r a
type o f flo o r c o v e r in g w h ich the plant w as g e a re d to p ro d u ce . The co m p a n y 's
p r o fit and lo s s statem ents show ed a net lo s s in 4 o f the 5 y e a r s , 19 57 -6 1 .
The plant had been co n s tru cte d about 35 y e a r s e a r lie r and had been
e n la rg ed 14 y e a rs p r io r to its c lo s in g .
The plant w as lo c a te d in a h ig h ly in d u stria liz e d m e tro p o lita n a re a ,
in w h ich about o n e -th ir d o f the total la b o r fo r c e and tw o -fifth s of a ll n on a g ricu ltu ra l em p loy m en t w e r e in m an u fa ctu rin g. The p rin cip a l m a n u fa ctu r
ing in d u stry in the a re a w as c h e m ic a ls , fo llo w e d by tra n sp o rta tio n equipm ent.
Other in d u strie s w e r e ston e, cla y and g la ss p ro d u cts, fo o d , m a ch in e ry , and
fa b r ic a te d m e ta ls .
The la b o r m a rk e t a re a was c la s s ifie d by the U .S . D epartm en t o f
L a b or during the p e r io d betw een the la y o ff and the su rv e y as an a re a of
m o d e ra te u n em p loym en t. The un em ploym en t rate w as 5. 9 p e rce n t in the
m onth of the plant shutdown, June 1961, and d e clin e d to 4 .0 p e rce n t one
y e a r la te r . It d e clin e d fu rth er to 3 .0 p e rce n t in O cto b e r 1962, the m onth
o f the su rv e y . T hus, g e n e ra l e c o n o m ic con d ition s in the la b o r m a rk et a re a
w e r e re la tiv e ly fa v o ra b le fo r re e m p lo y m e n t a fte r the la y o ff.
M e a su re s to E a se D isp la cem en t
The d e c is io n to c lo s e the plant w as m ade in F e b ru a ry 1961, 4 m onths
b e fo re the plant shutdown. The e m p lo y e e s w e re fir s t n o tifie d o f this d e c is io n
by le tte r during that m onth. T h ey w e r e kept fu rth er in fo r m e d by bulletins
and le t t e r s .
Interplant T r a n s fe r s . In M ay 1961, the w o r k e r s w e r e n o tifie d that
the op e ra tio n s w e r e bein g m o v e d to the co m p a n y 's plant in another city ,
70 m ile s away, and w e r e a d v ise d that they m ight apply fo r re h irin g by that
plant in a c c o r d a n c e w ith the union a g re e m e n t.
66
The d is p la c e d w o r k e r s w e re r e p re s e n te d by an in d u stria l type o f
union, a ffilia te d w ith the A F L -C I O . T h e ir union a g re e m e n t c o v e r e d the
p rod u ction and m ain ten an ce w o r k e r s o f the plant to be c lo s e d and two oth er
plants o f the com p an y lo c a te d in oth er a r e a s . T he a g re e m e n t p ro v id e d that,
if the com p a n y d iscon tin u ed a ll m an u fa ctu rin g o p e ra tio n s in any one o f the
th ree c o v e r e d p lan ts, the e m p lo y e e s o f that plant w ou ld have ’ ’p r e fe r e n c e
fo r em p lo y m e n t o p p ortu n ities at any o f the oth er tw o p lan ts. M P r e fe r e n c e
w ou ld be in the o r d e r o f the c lo s e d plant s e n io r ity . T h is co n tra ctu a l righ t
to re e m p lo y m e n t w as lim ite d by the fo llo w in g fa c t o r s : ( l) A ny e m p lo y e e s
cu r r e n tly on la y o ff fr o m the plant with the em p loy m en t op p ortu n ities w ou ld
have f ir s t op portu n ity fo r r e c a ll; (2) T r a n s fe r r e d e m p lo y e e s w ou ld lo s e
th eir s e n io r ity fo r future la y o ff and oth er p u r p o s e s , e x ce p t fo r p en sion ,
in su ra n ce and health b e n e fits, and paid v a ca tion ; and (3) E lig ib ility fo r
re e m p lo y m e n t w as su b je ct to p h y sica l and m en tal q u a lifica tio n s , and k n ow l
ed ge, tra in in g, and s k ill.
A lthough 3 out o f 5 d is p la c e d w o r k e r s had m ade a p p lica tio n to be
p la c e d on the r e c a ll lis t at the c lo s in g o f the f lo o r c o v e r in g plant, r e la t iv e ly
f e w - - n o m o r e than 1 out o f 8 - -a c c e p t e d em p loy m en t in the other plant.
P e n s io n B e n e fit s . A n eg otia ted p en sion plan m a d e p r o v is io n fo r
re d u ce d e a r ly r e tire m e n t p en sion s fo r w o r k e r s at le a s t 60 y e a r s old with
15 o r m o r e y e a r s o f c r e d it e d s e r v ic e . T h irte e n w o r k e r s w e r e e lig ib le fo r
e a r ly r e tir e m e n t at the tim e o f plant c lo s in g . F o u r o f th ese sh o rtly t h e r e
a fter b e ca m e e lig ib le fo r n o rm a l r e tir e m e n t, and the oth er 9 e le c t e d to take
th eir e a r ly r e tir e m e n t b en efits ra th er than w ait fo r a fu ll p e n sio n at 65. The
plan m a d e no p r o v is io n fo r v e ste d rig h ts in a d e fe r r e d p e n sio n fo r w o r k e r s
b elow e a r ly re tire m e n t a g e.
S ep a ra tion P a y . S ep aration paym ents w e r e given to so m e s a la r ie d
e m p lo y e e s in a c c o r d a n c e w ith com p an y p r a c t ic e . P r o d u c tio n w o r k e r s , h o w
e v e r , w e r e not e lig ib le fo r such p aym en ts.
P la ce m e n t o f D is p la ce d W o r k e r s . The com p a n y w ro te one le tte r
to ea ch o f 47 co m p a n ie s to a s s is t in p la ce m e n t o f w age e m p lo y e e s , and two
le t t e r s to ea ch o f 23 co m p a n ie s to a s s is t its s a la r ie d w o r k e r s in finding
em p loy m en t. A re p re s e n ta tiv e fr o m the State em p loy m en t s e r v ic e v is ite d
the plant to explain u n em p loym en t in su ra n ce p r o c e d u r e s .
U nem p loym en t C o m p e n sa tio n . U nem ploym en t in su ra n ce b e n e fits
w e r e ob tain ed b y 87 p e rce n t o f the d is p la c e d w o r k e r s fo r an a v era g e o f 25
w e e k s. A bout o n e -th ir d o f the w o r k e r s r e c e iv e d b e n e fits fo r 31 w eek s o r
m o r e . O nly 27 p e rce n t r e c e iv e d le s s than 11 w e e k s ’ co m p e n sa tio n .
67
P e r s o n a l C h a r a c te r is tic s o f the D is p la ce d W o rk e rs
A ll but a sm a ll p r o p o r tio n o f the d is p la c e d w o r k e r s w e r e m e n , and
n ea rly a ll w e re w h ite. (See ch art 11 and table 23. ) The m ed ia n age o f d i s
p la ce d w o r k e r s at the tim e of te rm in a tio n w as 43. A bout o n e -fifth w e re under
35 and another fifth w e re age 55 and o v e r . O n e -th ird w e re in the 3 5 -4 4 age
g rou p . A v e r y sm a ll p ro p o r tio n , about o n e -s ix th , had fin ish e d high s c h o o l,
and m o r e than tw o -fifth s had not attended high sch o o l at a ll.
N ea rly fo u r -fift h s o f the d isp la c e d w o r k e r s w e r e m a r r ie d , and
on e-ten th w e r e sin g le . O v er h alf su pported two o r m o r e depen d en ts.
th ird s ow ned th e ir own h o m e s. T w o -fifth s had 11-15 y e a rs o f s e r v ic e
plant. O n e-fifth had le s s than 6 y e a r s o f s e n io rity ; and o n e -e ig h th had
y e a rs and o v e r .
only
T w oin the
21
C h a rt 11. Flo o r C o ve ring P la n t— P e rso n a l C h a ra c te ristic s o f D isp la c e d W o rk e rs .
FEM A LE-3 % 7
OTHER
j
68
T able 23.
F lo o r C overin g P la n t --S e le c t e d C h a r a c te r is tic s and
E m p loy m en t Status o f D is p la ce d W o rk e rs
E m p loym en t statu s1
C h a r a c te r is tic s
A ll
d is
p la ce d
w ork ers
T ota l
Em
U nem
p lo y e d p lo y e d
Not
seeking
em p loy m en t
P ercen t
100
100
74
17
9
Sex:
Klale ........................................
F e m a l e ...................................
97
3
100
100
75
50
16
40
9
10
R a ce :
White .....................................
O t h e r ........................................
94
6
100
100
76
67
17
20
7
13
L e s s than 35 y e a rs .........
35 - 44 y e a r s .......................
45 - 54 y e a r s .......................
55 y e a rs and o v e r ............
21
34
26
19
100
100
100
100
72
83
77
47
26
16
20
6
2
1
3
47
E du cation :
No high s c h o o l .....................
Som e high s c h o o l ..............
High s ch o o l graduate . . . .
44
40
16
100
100
100
75
75
89
20
17
7
5
8
4
H ou rly ea rn in gs le v e l:
Under $ 2 . 0 0 .......................
$ 2 . 00 - $ 2 . 14 ...................
$ 2 . 15 - $ 2 . 29 ...................
$ 2 . 30 - $ 2 .4 4 ...................
$ 2. 45 and o v e r ...................
13
32
29
12
14
100
100
100
100
100
60
79
71
81
84
24
19
20
3
8
16
2
9
16
8
If
T o ta l, a ll w o r k e r s ..........
l
At tim e of the su rv ey .
69
Job Hunting E x p e rie n ce
E m p loym en t and U nem ploym ent. Although the rate o f u n em ploym ent
in the la b o r m a rk et a re a as a w h ole w as down to 3 p e rce n t at the tim e o f the
su rv e y , 17 p e rce n t o f the d isp la c e d w o r k e r s w e re still u n em p loyed . A nother
9 p e rce n t w e r e not seeking w o rk . S e v e n ty -fiv e p e rce n t w e re e m p lo y e d .
(See table 2 3 .)
M o r e o v e r , m o r e than 50 p e rce n t o f the d is p la c e d w o r k e r s had been
u n em p loyed o n e -h a lf y e a r o r lo n g e r . (See table 24. ) Tw o out o f th ree had
e x p e r ie n c e d at le a st 16 w eek s o f u n em p loym en t. Only 8 p e rce n t did not lo s e
any tim e at a ll, and 18 p e rce n t lo s t le s s than 6 w e e k s. C lo se to 2 out o f 3
o f a ll d isp la c e d w o r k e r s had had only one jo b in the 16 m onths betw een the
date of the plant c lo s in g and the tim e o f the su rv e y . One out o f 7 had had two
jo b s in that in te rv a l. F ew had w ork ed fo r m o r e than two e m p lo y e r s .
T a b le 24.
F lo o r C o v e rin g P la n t--D u r a tio n o f
U nem ploym ent
Length o f tim e un em p loyed
P ercen t
o f all
w ork ers
P e r c e n t o f d is p la c e d
w o r k e r s c u r r e n tly 1- E m p lo y e d
T o ta l2 .............................................
100
100
No days lo s t ...................................
Up to 1 w e e k ...................................
2 - 5 w e e k s .....................................
6 - 1 0 w e e k s ...................................
1 1 - 1 5 w e e k s .................................
16 - 20 w e e k s .................................
21 - 25 w e e k s .................................
26 o r m o r e w eek s .......................
8
2
8
6
10
9
5
52
10
3
10
8
13
11
6
39
1
2
U nem ployed
At tim e o f the su rv e y .
D oes not include w o r k e r s not seeking em p loy m en t.
100
—
--
2
2
96
70
A ge and R ee m p lo y m e n t.
The rate of re e m p lo y m e n t w as high est
(83 p e rce n t) in the 3 5 -4 4 age group and next h igh est (77 p e rce n t) at age
4 5 -5 4 . (See table 2 3 . ) E xcept fo r the o ld e st age g ro u p , in w h ich c lo s e to
h a lf of the w o r k e r s w e re not seeking em p loy m en t, em p loy m en t w as lo w e st
(72 p e rce n t) in the you n gest age g rou p . U nem ploym ent a ccou n ted fo r 26
p e rce n t o f the group under 35 as co m p a re d with 16 p e rce n t o f the w o r k e r s
age 3 5 -4 4 .
U n em ploym en t, h o w e v e r, w as o f s h o r te r d u ration am ong the you n ger
w o r k e r s . (See ch art 12. ) L o n g -t e r m u n em ploym ent o f 26 w eek s o r m o r e
w as e x p e r ie n c e d by 44 p e rce n t o f those under 35, 51 p e rce n t o f those at age
3 5 -4 4 , and 58 p e rce n t o f w o r k e r s who w e r e 45 o r o v e r .
C h a rt 12. F lo o r Coverning P la n t - Lo ng -Te rm Unem ployed as Percent o f T o ta l Displaced
W o r k e r s , by Age and Education
P ER C EN T
80
70
60
50
40
30
20
10
0
V///M
UNDER 35
35-44
16 W eeks or more duration
26 W eeks or more duration
45 -54
55 or Over
NO
HIGH SCHOOL
SOME
HIGH
SCHOOL
HIGH SC HOO L
GRADUATE
71
The o b s ta c le s to re e m p lo y m e n t p o se d by age w e r e m o s t fre q u e n tly
com m en ted upon by resp on d en ts to the q u e stio n n a ire . The fo llo w in g a re
som e sa m ple co m m e n ts:
"W hen y o u rre 40 y e a r s o f a g e , no w o r k . 11 (A ge 40)
MI fe e l that not on ly fo r m y s e lf, but m any in m y age g rou p ,
tim e is fa st running out on u s. 11 (Age 42)
MIf I w e r e a few y e a r s o ld e r , I doubt that any com p an y w ould
h ire m e . n (Age 38)
f,They don*t want o ld e r p e o p le . . . . I have to w ork as I have
no one to support m e . . .
. T o o young to r e tir e and too old
to w o rk , as it s e e m s . " (Age 53)
,fM y age w as a big fa c t o r . . . .
T hey told m e so . M (A ge 49)
E du cation and R e e m p lo y m e n t. The sm a ll p r o p o r tio n who had g ra d u
ated fr o m high s ch o o l fa re d sig n ifica n tly b e tte r (only 7 p e rce n t un em ployed)
than those who had no high s ch o o l o r had gone to high s ch o o l but had not been
gradu ated (20 p e rce n t and 17 p e r c e n t, r e s p e c t iv e ly ). A s shown in ch a rt 12,
th ere w e r e a ls o c o n s id e r a b ly fe w e r lo n g -t e r m u n em p loyed am ong the g ra d u
ates than am ong eith er o f the oth er g ro u p s.
A c r o s s -ta b u la t io n o f em p loy m en t status by ed u ca tion f o r two age
g ro u p s , ,!le s s than 4 5 lf and ,!45 and o v e r , 11 r e v e a ls v irtu a lly no d iffe r e n c e in
reem p loy m en t e x p e r ie n ce betw een edu ca tion a l le v e ls fo r the you n ger grou p
(table 25). A m on g the o ld e r w o r k e r s , h o w e v e r , th ere w as a c le a r r e la t io n
ship betw een em p loym en t and ed u ca tion . The u n em p loyed a ccou n ted fo r 1 out
o f 4 w o r k e r s with no high sch o o l ed u ca tion , 1 out o f 7 w o r k e r s with som e
high s c h o o l, and none am ong high s ch o o l g ra d u a tes.
A nu m ber o f d is p la c e d w o r k e r s stated that they w e r e h a m p e re d by
inadequate ed u ca tion in seek in g re e m p lo y m e n t. Som e cite d oth er f a c t o r s - a g e, no t r a d e - - a s w e ll as ed u ca tion .
Som e e x a m p le s:
tfI d o n lt know what I cou ld qu alify f o r , sin ce I have on ly an
eighth g ra d e ed u ca tion . . . . I have been w ork in g in
d iffe re n t plants fo r the past 18 y e a r s , doing u n sk illed w o r k ,
and I am still su b je ct to la y o ffs . fr (Age 33)
MI find it v e r y hard to get a jo b a fte r the age of 35, if you
d o n !t have any s p e c ia l tra in in g, o r a re not a high s ch o o l
g ra du ate. n (A ge 35)
72
T a b le 25.
F lo o r C overin g P la n t--E m p lo y m e n t Status o f D is p la ce d W o r k e r s ,
by S e le cte d A ge G roup and E du ca tion al L e v e l1
P ercen t
E d u cation al le v e l
A ll d is p la ce d
w ork ers
E m p loy m en t status
A ll
w ork
ers
Em
p lo y e d
U n em
p loy ed
Not seeking
em p loy m en t
L e s s than 45 y e a rs
A ll ed u ca tion a l le v e ls . . . .
100
100
88
12
0
No high s c h o o l ............................
Som e high s c h o o l .......................
High s ch o o l gradu ates ............
33
48
19
100
100
100
86
88
88
14
12
12
0
0
0
45 y e a r s and o ld e r
A ll ed u ca tion a l le v e ls . . . .
100
100
66
19
15
No high s c h o o l ............................
Som e high s c h o o l .......................
High s c h o o l gradu ates ............
60
30
10
100
100
100
68
54
86
25
14
0
7
32
14
1 A ge and ed u ca tion le v e l at te rm in a tio n .
N ote: D iffe r e n c e s betw een ta b le s 23 and 25 a re due to e x c lu s io n of
q u estion n a ires that did not contain data fo r both age and ed u ca tion .
"M o s t e m p lo y e r s today a re look in g fo r at le a s t high s ch o o l
g ra d u a tes. (I have on ly 2 y e a r s o f high s c h o o l .) " (Age 37)
"I find it v e r y hard to get a jo b in plants b e ca u se o f la ck o f
ed u ca tion and no tra d e . " (Age 41)
Skill L e v e l and R e e m p lo y m e n t. The rate o f u n em p loym en t w as
h ig h est in the lo w e s t sk ill c la s s ific a t io n , la b o r e r s (table 26). It w as at about
the sam e le v e l fo r both s e m is k ille d m ach in e o p e r a to r s and h ig h er sk ille d
m aintenance w o r k e r s .
T a b le 26.
F lo o r C overing Plant - -E m p lo y m en t B e fo re and A fter T erm in ation ,
by O ccup ation
E m p lo y m e n t status at su rv e y date (percent)
O c c u p a tio n at c l o s e d plant
Percentage d is
tribution
at c lo s e d
plant
E m p l o y e d in p r e s e n t jo b a s - '
A ll
w ork
ers
Unem
ployed
O pera
tor
M ain
tenance
w orker
Laborer
Super
visor
C leri
cal
w orker
C usto dial
w orker
Other
1
6
14
O p e r a t o r .....................................................
38
100
22
29
9
18
1
M a i n t e n a n c e w o r k e r ........................
16
100
21
10
51
15
--
- -
L a b o r e r ........................................................
37
100
33
16
9
28
--
--
2
12
5
100
31
--
--
15
39
--
--
15
4
100
18
Supervisor
...............................................
C lerical w orker
.................................
55
- -
3
27
74
C on sid e rin g ea rn in gs le v e l as a rough m e a su re o f s k ill, the h igh est
un em ploym ent r a t e s --r a n g in g fr o m 19 p e rce n t to 24 p e r c e n t - - w e r e found in
the ea rn in gs le v e ls b e lo w $ 2 .3 0 p e r hou r (table 23). The lo w e st u n e m p lo y
m ent r a t e s - - 3 p e rce n t and 8 p e r c e n t - - o c c u r r e d am ong the grou p s with
ea rn in gs at $ 2. 30 and o v e r .
In d u stries P ro v id in g J o b s . F e w e r than 2 out o f 3 o f the d is p la c e d
w o r k e r s who responded, to this q u estion obtain ed em p loy m en t in oth er m a n u
fa ctu rin g p la n ts. (See table 2 7 .) T h ose w ork in g in the sam e in d u stry w e re
on ly the w o r k e r s tr a n s fe r r e d to a plant o f the sam e f lo o r co v e rin g fir m in
another a re a and am ounted to 17 p e rce n t of a ll r e e m p lo y e d w o r k e r s . O ther
m anufacturin g in d u strie s sig n ifica n tly r e p re s e n te d w e r e ru b b er p ro d u cts ,
c h e m ic a l p r o d u c ts , and t e x tile s . M o re than o n e -fifth o f the total w e r e
e m p loy ed in nonm anufacturing in d u s tr ie s , and m o s t o f the re m a in d e r in
g ov ern m en t. A v e r y sm a ll p r o p o r tio n w e r e s e lf-e m p lo y e d .
T a b le 27.
F lo o r C overin g P la n t --T y p e s o f In d u stries
P ro v id in g C u rre n t J o b s 1
Industry
P ercen t of
e m p lo y e d
w ork ers
T o ta l, a ll e m p lo y e d w o r k e r s ................... .............
100
M a n u fa c t u r in g .............................................................
F lo o r co v e rin g (T r a n s fe r s to another plant of
the sam e com p an y) ............................
R ubber p r o d u c t s ................ ..
C h e m ica l p ro d u cts . . . . . . . . . . . . . . . . . . . . . . . . .
T e x tile s .............................................................................
W a llb oa rd p r o d u c t s ......................................................
T ra n s p o rta tio n e q u ip m e n t........................................ .
O ther .......................... ................................................
63
N onm anufacturing ............................ ................................
C on stru ction ....................................................................
O th er .................................................................................
22
5
17
G o v e r n m e n t ...........................................................................
F e d e r a l G o v e r n m e n t ...................................................
State G o v e r n m e n t .......................................... ...............
County G o v e r n m e n t ......................................................
M u n icip a l G overn m en t ...............................................
13
1
4
3
5
S e l f - e m p l o y e d ......................................... ...........................
2
1 Jobs h eld at tim e o f the su rv e y .
17
8
7
7
4
2
18
75
A s s is ta n c e in Finding J o b s. The two s o u r c e s m o st w id e ly u sed in
look in g fo r w o r k , e a ch cite d by m o r e than h a lf of the d is p la c e d w o r k e r s ,
w e re the State em p loym en t s e r v ic e and frie n d s o r r e la t iv e s . A substantial
num ber a lso in d ica ted that they had re p lie d to newspaper ads and had
a pp lied at oth er co m p a n ie s. R e la tiv e ly few had u sed p riv a te em p loym en t
a g e n cie s o r w e re r e fe r r e d by the union o r com p an y.
A s the s o u r ce re s p o n s ib le f o r a ctu a lly lo ca tin g th e ir p re s e n t jo b s ,
m o r e than 3 out o f 5 o f the e m p lo y e d w o r k e r s cr e d ite d frie n d s o r r e la tiv e s .
About 1 out o f 10 ea ch cite d n ew sp a p er ads and a p p lica tio n s to oth er c o m
pan ies fo r jo b s . The State em p loy m en t s e r v ic e w as nam ed by 6 p e r c e n t,
p riv a te em p loy m en t a g e n cie s by 5 p e r c e n t, and the union by 2 p e r c e n t o f the
re e m p lo y e d w o r k e r s .
M ob ility and R e e m p lo y m e n t. M o b ility a p p ea rs to have been a fa c t o r
in s u c c e s s in finding w o rk . Sixty p e rce n t o f th ose u n em p loyed at the tim e o f
the su rv ey had lim ite d th e ir s e a r c h fo r em p loy m en t to th eir h om e city ,
co m p a r e d with 45 p e r c e n t o f those who w e r e e m p lo y e d . A ls o , a s m a lle r
p r o p o r tio n o f the u n em p loyed than of the em p lo y e d w o r k e r s (5 p e rce n t c o m
p a red with 11 p e rce n t) had tra v e le d m o r e than 50 m ile s fr o m hom e to look
fo r w o r k .
A c lo s e a n a ly sis o f the r e la tiv e ly sm a ll p r o p o r tio n o f the term in a ted
w o r k e r s , who w e re tr a n s fe r r e d to one of the co m p a n y 1s plants in a city
70 m ile s d istan t, sheds additional light on the m o b ility p r o b le m s o f d isp la ce d
w o r k e r s . T h ese w o r k e r s , w hile tr a n s fe r r in g ea rn ed p e n sio n rights and
oth er e c o n o m ic b e n e fits , w e re o th e rw ise h ire d as new e m p lo y e e s having lo s t
a ll a ccu m u lated s e n io r ity fo r p u rp o se s o f la y o ff and r e c a ll. T his m ight
accou n t in p a rt fo r the sm a ll num ber o f t r a n s fe r e e s . A s a g rou p , the t r a n s
fe r e e s w e r e o ld e r than the oth er d is p la c e d w o r k e r s , tw o -th ird s o f them age
45 o r o v e r co m p a re d with fe w e r than h alf o f a ll d is p la c e d w o r k e r s in that
age g rou p . Of th ose giving in fo rm a tio n as to hom e o w n e rsh ip , 55 p e rce n t
w e r e h o m e o w n e rs , a s m a lle r p r o p o r tio n than f o r the n o n tra n s fe re e s .
A bout 4 out o f 5 o f the t r a n s fe r e e s w e re still re sid in g in the la b o r
m a rk et a re a of the c lo s e d plant o r n ea rb y a re a s at the tim e of the su rv e y .
T h ese p eop le com m u ted d a ily o r m aintained a te m p o r a r y , se co n d r e s id e n c e
in the new a re a during the w ork w eek .
One stated that he had t r a n s fe r r e d
only b eca u se h is a g e, 57, p re v e n te d him fr o m se cu rin g oth er em p loy m en t.
He stated:
MI had no ch o ic e but to go b a ck to w o rk with the com p an y as
I w as turned down at s e v e r a l plants b e ca u se o f m y a g e . I
now have to tra v e l . . . 70 m ile s each w a y .11
A nother found he w as unable to m aintain two h o m e s , and left the new jo b fo r
a jo b in another State w h ere he cou ld liv e te m p o r a r ily with r e la t iv e s .
76
T rain in g and R eem p loy m en t.
Only 2 p e rce n t o f the w o r k e r s in d ica ted
that they had taken any trainin g c o u r s e s sin ce leavin g the flo o r co v e rin g
plant. S e v e n ty -se v e n p e rce n t of the to ta l, and o v e r 90 p e rce n t of th ose who
w e r e u n em p loy ed , stated that they w e re in te re s te d in taking tra in in g; 12
p e rce n t o f th ose d e sirin g trainin g w e re in te re s te d in lea rn in g to b e co m e auto
m e c h a n ic s . O th ers e x p r e s s e d in te re s t in train in g as m a ch in is ts , w e ld e r s ,
c a r p e n t e r s , and s e v e r a l oth er o ccu p a tio n s.
A need fo r retra in in g was c le a r ly e x p r e s s e d by one w o r k e r who stated
that he had b een "unable to s e cu re em p loy m en t due to la ck o f tra in in g and a g e,
a fte r w ork in g with the com pan y fo r 26 y e a r s . ,f (Age 46)
Som e Job E ffe c ts o f D isp la ce m e n t
E ffe c ts on E a r n in g s . Som ewhat m o r e than h a lf o f the re e m p lo y e d
w o r k e r s e x p e r ie n c e d a d rop in h o u rly pay. (See table 2 8 .) The d e clin e
am ounted to 20 p e rce n t o r m o r e fo r o n e -fo u r th o f the w o r k e r s . O v er o n e fourth obtain ed h ig h er pay. The data re v e a l no c le a r re la tio n sh ip betw een
changes in w age le v e ls and sk ill le v e l as re p re s e n te d by the h o u rly rate
r e c e iv e d at the f lo o r co v e rin g plant.
T able 28.
F lo o r C overin g P la n t--C h a n g e in E arn in gs L e v e l
P e r c e n t on cu rre n t jo b r e c e i v i n g - -
H ou rly ea rn in gs le v e l
at c lo s e d plant
A ll e m p loy e d w o r k e r s .
Under $ 2 . 0 0
..........................
At
le a s t
T ota l
30%
le s s
20. 0 29. 9%
le s s
10. 0 - Up to
19. 9% 9. 9%
le s s
le s s
Sam e H igh er
earn
earn ings
in g s 1
100
8
16
18
12
18
28
100
9
14
23
4
9
41
$ 2 . 00 - $ 2 . 14
.....................
100
2
13
26
8
25
26
$ 2 . 15 - $ 2 . 29
.....................
100
12
23
6
17
23
19
$ 2 . 30 - $ 2 . 44
.....................
100
9
18
23
14
...................
100
10
6
20
17
$ 2. 45 and o v e r
1 W ithin 5£ e ith e r w ay.
36
17
30
77
A s shown in ch art 13, age b o re an im portan t re la tio n sh ip to change
in ea rn in gs le v e ls . A bout o n e -e ig h th o f a ll the w o r k e r s in the lo w e st age
group had a d e clin e in w ages o f at le a s t 20 p e r c e n t. The ra tio r o s e to o n e th ird in the 4 5 -5 4 g rou p , and w as c lo s e to t h r e e -fifth s o f the o ld e st grou p .
On the oth er hand, h ig h er w ages w e re a s s o c ia te d with lo w e r a g e - - o v e r half
o f the youngest group and le s s than on e-ten th o f the o ld e st re p o rte d in c r e a s e s
in w a g e s.
Chart 13. Floor Covering Plant —Change in Earnings of
Reemployed W o rk e rs, By Age and Education
PERCENT
100
80
LOWER
60
PERCENT SAME OR HIGHER EARNINGS
EARNINGS
40
20
0
TOTAL
0
20
40
60
20
40
60
1
!
i
i
AVERAGES
100
80
60
40
20
AGE GROUP
UNDER 35
35-44
45-54
55 AND OVER
---------- 1----------1---------- 1----------1---------
NO HIGH SCHOOL
SOME HIGH SCHOOL
HIGH SCHOOL GRADUATE
W t,
____ 1____ 1__
2
1
1
At least 20 % lower earnings
Same
Less than 20 % lower earnings
Higher
earnings
earnings
80
78
In cre a s e d w a g es w e re a lso a s s o c ia te d with g r e a te r e d u c a t io n --2 out
o f 5 high sch o o l gradu ates as co m p a re d with 1 out of 5 o f those with no high
s ch o o l r e c e iv e d h ig h er w a g e s. S ign ifican t d e clin e s in w a g e s , at le a st ZO
p e r c e n t, w e re e x p e r ie n c e d by a c o n s id e r a b ly g r e a te r p r o p o r tio n of w o r k e r s
who had not attended high s ch o o l than in the oth er two g ro u p s.
C lo se to h a lf o f the re e m p lo y e d stated that th e ir p re se n t jo b w as l e s s
lib e r a l in frin g e b en efits than th eir jo b at the flo o r co v e rin g plant. A nother
th ird found no change and fe w e r than o n e -fifth b e lie v e d that there had b een
an im p ro v e m e n t. E xcep t in the ca se o f tr a n s fe r r e d w o r k e r s , th ere w as a
tota l lo s s o f righ ts to a ccu m u lated p e n sio n b e n e fits.
B etw een the tim e o f the plant c lo s in g and the tim e of the su rv e y , the
p r o p o r tio n o f w iv e s w ork in g r o s e fr o m a ra tio o f 1 out o f 3 to 2 out o f 5.
T h ere w as an in c r e a s e both in w iv e s w ork in g fu ll-t im e and those w ork in g
p a r t-t im e . The in c r e a s e o c c u r r e d m o s tly am ong the w iv e s o f re e m p lo y e d
w ork ers.
C hanges in Type o f Job. A nu m ber o f d is p la c e d w o r k e r s w e re
r e e m p lo y e d on jo b s at lo w e r s k ill. One out o f 4 o f the siz a b le g rou p o f s e m i
sk ille d m ach in e o p e r a to r s had b een dow ngraded to la b o r e r and cu sto d ia l jo b s .
(See table 2 6 . ) A m ong the m o r e sk ille d m aintenance w o r k e r s , 1 out o f 10
w e r e em p loy ed as m ach in e o p e r a to r s and n e a rly 1 out of 6 held la b o r e r jo b s .
The on ly occu p a tio n a l grou p s in w hich a m a jo r ity of the d isp la c e d w o r k e r s
w e r e re e m p lo y e d in the sam e c la s s ific a tio n s w e re m aintenance and c le r ic a l
w ork ers.
A m a jo r it y o r c lo s e to a m a jo r ity o f the w o r k e r s c o n s id e r e d th e ir
p re se n t jo b w o r s e than th eir jo b at the flo o r co v e rin g plant, not only in te r m s
o f w a g es and and frin g e b e n e fits , but a lso in te rm s o f type o f w o rk and p r o s
p e cts f o r p ro m o tio n . About h a lf thought h ou rs o f w o rk w e r e about the sam e
as b e fo r e . O v er tw o -fifth s b e lie v e d that quality o f su p e rv is io n and tra v e l to
w o rk w e re about the sa m e. In none o f the jo b c o m p a r is o n s did m o r e than
o n e -th ir d c o n s id e r that th eir con d ition s had been im p r o v e d .
E ffe c ts on Union M e m b e rs h ip . A co n se q u e n ce of the plant c lo s in g w as
a m a rk ed lo s s in union m e m b e rs h ip . M ore than 9 out o f 10 w o r k e r s at the
flo o r c o v e rin g plant had been m e m b e r s o f the union. At the tim e o f the
su rv e y , union m e m b e rs h ip am ong the d is p la c e d flo o r co v e rin g plant w o r k e r s
had d e clin e d to l e s s than t w o -fifth s . E ven am ong the re e m p lo y e d w o r k e r s ,
it fe ll to le s s than h a lf.
79
VI.
The C lo sin g o f T w o Iro n F o u n d rie s
A com p an y with a num ber o f plants lo c a te d in the M id w e ste rn and
W e ste rn a r e a s o f the co u n try c lo s e d two iro n fo u n d rie s in July I960 and
M a rch 1961, d isp la cin g a tota l o f about 100 w o r k e r s . T he su r v e y w as c o n
ducted in A p r il 1962, 21 m onths and 13 m onths r e s p e c t iv e ly , a fte r the two
plant c lo s in g s ,
D e s crip tio n o f the P la n ts
T h e plant shutdowns re s u lte d fr o m the d e v e lo p m e n t o f a new p r o c e s s
to p rod u ce s te e l ca s tin g s , w h ich had been in s ta lle d in som e o f the co m p a n y 's
p la n ts. C on su m er dem and fo r the new p rod u ct brought about an in c r e a s e in
p rod u ction in th ese plants and the d iscon tin u a n ce o f p ro d u ctio n in the two
plants under study.
Both a re a s in w h ich the plants w e r e lo c a te d a re m a jo r p ro d u ctio n and
em ploym en t a r e a s . One a re a had a la b o r fo r c e o f c lo s e to 2 0 0 ,0 0 0 . M anu
fa ctu rin g em p loy m en t a cco u n te d fo r 1 out o f 5 n o n a g ricu ltu ra l w o r k e r s . The
m an u factu rin g in d u strie s with the la r g e s t em p loym en t w e re food , p r im a r y
m e ta ls , and o rd n a n ce . N onm anufacturing em p loy m en t c o n s is t e d m a in ly o f
w o r k e r s in tra d e , g ov ern m en t, and s e r v ic e s . A t the tim e o f the su rv e y ,
the la b o r m a rk e t a re a w as d esign a ted by the U .S . D epartm en t o f L a b o r as
one of m o d e ra te u n em p loym en t. At the tim e o f the la y o ff, in July I960,
the un em ploym ent rate w as 2. 8 p e rce n t. It r o s e the fo llo w in g y e a r and was
3 .7 p e rce n t in July 1961. U nem ploym ent d e clin e d in 1962 to 3. 1 p e rce n t at
the tim e o f the su rv e y in A p r il and d ropp ed fu rth er la te r in the y e a r .
The se co n d a re a is a la rg e m e tro p o lita n ce n te r w h ich had a la b o r
fo r c e o f w e ll o v e r 5 0 0 ,0 0 0 . M anu facturing w o r k e r s a ccou n ted fo r 1 out o f
4 o f total n on a g ricu ltu ra l em p loy m en t. The la r g e s t m a n u factu rin g in d u s
t r ie s w e r e m a ch in e r y and fo o d . T h is a re a a ls o w as c h a r a c t e r iz e d by
m o d e ra te u n em p loym en t. The un em p loym en t rate fo r the a re a w as up to
6. 9 p e rce n t when the plant w as c lo s e d in M a rch 1961, but fe ll to 3. 6 p e rce n t
during the su rv e y m onth in A p r il 1962.
M e a su r e s to E a se D isp la ce m e n t
U nem ploym ent C o m p e n sa tio n . A ll but 6 p e rce n t o f the d is p la c e d w o r k e r s
r e c e iv e d som e u n em ploym ent co m p e n sa tio n . O n e -fo u rth obtain ed u n e m p lo y
m ent com p en sa tio n fo r 41 w eek s or m o r e ; tw o -fifth s fo r 31 w eek s o r m o r e ;
and th r e e -fift h s fo r at le a s t 21 w e e k s. The a v e ra g e num ber o f w eek s o f
u n em ploym ent co m p e n sa tio n was 27.
S ep aration P a y m e n ts . S ep a ra tion pay w as p ro v id e d fo r u n der union c o n tr a c t.
H ow ev er, th is g e n e ra lly am ounted to only a few weeks* pay, sin ce a su b sta n
tia l p ro p o r tio n o f the w o r k e r s had re la tiv e ly little s e r v ic e w ith the com p an y.
80
P la ce m e n t o f D is p la ce d W o r k e r s . In both a r e a s , the w o r k e r s w e r e given
le s s than 6 m onths n o tice o f the im pending plant c lo s in g s . The companystated that it gave som e w o r k e r s the opportun ity to tr a n s fe r to other
lo c a tio n s , but v e r y few a cce p te d the o ffe r and m o s t o f th ose who did a cce p t
soon retu rn ed to th eir h o m e s . The q u e stio n n a ire s show ed that none of the
d is p la c e d w o r k e r s w e re e m p lo y e d at oth er plants o f the com p an y. A p p r o x i
m a te ly 1 out of 7 w o r k e r s stated that the com p an y a s s is te d them in look in g
fo r w o rk . An equal n u m ber stated that the union, an A F L .-C IO a ffilia te ,
help ed th em .
P e r s o n a l C h a r a c te r is tic s o f the D is p la ce d W o rk e rs
V irtu a lly a ll o f the d is p la c e d w o r k e r s w e re m en; a ll but 7 p e rce n t
w e r e w h ite. (See ch a rt 14 and table 29.) At the tim e of term in a tion , the
m edia n age w as betw een 47 and 48. O n e -fifth w e r e under 35. T h r e e -te n th s
w e re 55 and o v e r . The edu cation al le v e l w as v e r y low ; th ree out of 5 had no
high s c h o o l tra in in g. M o st o f the r e s t had not graduated fr o m high s c h o o l.
C h a r t 14.
F o u n d r i e s — P e r s o n a l C h a r a c t e r i s t i c s o f D is p la c e d W o r k e r s .
EDUCATION
81
T able 29.
F ou n drie s - -S e le c te d C h a r a c te r is tic s and E m p loym en t Status
o f D is p la ce d W o rk e rs
C h a r a c te r is tic s
A ll
d isp la ce d
w ork ers
E m p loym en t statu s1
T otal
Em
p loy ed
U n em
p loy ed
Not seek ing
em ploym en t
P e rce n t
T ota l, a ll w o r k e r s . . .
100
100
59
28
13
Sex:
M a l e ...................................
F e m a l e ..............................
98
2
100
100
58
100
28
0
14
0
R a ce:
White .................................
Other .................................
93
7
100
100
60
33
25
67
15
0
A ge:
L e s s than 35 y e a r s . . .
35 - 44 y e a r s ................
45 - 54 y e a r s ................
55 y e a rs and o v e r . . . .
21
20
29
30
100
100
100
100
72
71
68
35
28
29
28
35
0
0
4
30
E ducation:
No high s c h o o l ..............
Som e high s c h o o l .........
High s ch o o l graduate . .
58
26
16
100
100
100
50
45
93
34
41
7
16
14
0
H ou rly ea rn in gs le v e l:
Under $ 2. 3 0 ...................
$ 2. 30 - $ 2. 49 ..............
$ 2. 50 - $ 2. 69 ..............
$ 2. 70 - $ 2. 89 ..............
$ 2. 90 and o v e r ..............
24
26
24
20
6
100
100
100
100
100
46
52
46
83
100
50
36
21
17
0
4
12
33
0
0
xA t tim e o f the su rv ey .
82
A la r g e m a jo r it y of the d is p la c e d w o r k e r s w e r e m a r r ie d . A lm o s t
th r e e -fift h s had no dependents or on ly one dependent. H o w e v e r, o n e -fift h
had 4 dependents o r m o r e . T w o -th ir d s w e r e h o m e o w n e rs.
P la n t s e n io r it y a v e ra g e d about 14 y e a r s . O n e -fifth had s e r v ic e not
e x ce e d in g 5 y e a r s , and another fifth had s e r v ic e fr o m 6 to 10 y e a r s . H ow
e v e r , o n e -fo u r th had at le a st 21 y e a rs o f s e n io r ity .
J ob Hunting E x p e rie n ce
E m p loy m en t and U n em p loy m en t. A t the tim e o f the su rv e y , tw o -fifth s o f
the d is p la c e d w o r k e r s w e r e not e m p lo y e d . T w e n ty -e ig h t p e rce n t w e r e u n e m
p loy ed and look in g fo r w o rk , and 13 p e rce n t w e r e not seek in g e m p lo y m e n t.
(See ta b le 2 9 .)
The plant c lo s in g s a ls o had been fo llo w e d by lo n g p e r io d s o f u n e m
p loy m en t. (See table 3 0 .) M o re than h a lf of the w o r k e r s w e r e out o f w o rk
fo r at le a s t 26 w e e k s . Seven out o f 10 had 16 o r m o r e w eek s o f u n e m p lo y
m en t. E ven am on g th ose who w e r e e m p lo y e d at the tim e o f the su r v e y ,
o n e -th ir d had been out o f w o rk a h a lf-y e a r o r m o r e .
T a b le 30.
F o u n d r ie s --D u r a tio n o f U nem ploym en t
P e r c e n t o f d is p la c e d
w o r k e r s c u r r e n tly 1- -
P ercen t
o f all
w ork ers
E m p lo y e d
U n em p loyed
T o ta l2 ...... .......................... ....................
100
100
100
No days lo s t ...............................................
Up to 1 w eek ...............................................
2 - 5 w e e k s ................................................
6 - 10 w eek s
1 1 - 1 5 w eek s ........................................
1 6 - 2 0 w e e k s ............................................
21 - 25 w e e k s ............................................
26 o r m o r e w eek s ...................................
1
7
8
8
7
10
7
52
L ength o f tim e u n em p loy ed
2 '
11
12
7
9
14
11
34
lAt tim e o f the su r v e y .
2D oes not in clu d e w o r k e r s not seek in g em p lo y m e n t.
11
4
-85
83
O n e -fo u rth o f all d isp la ce d w o r k e r s had h eld no jo b s at a ll sin ce
lea v in g the fou n d ry . O n e -h a lf of the total had had one jo b during the p e r io d .
A s m any as 1 out o f 4 had h eld two jo b s o r m o r e . One w o r k e r in d ica ted the
p r e c a r io u s n e s s of his re e m p lo y m e n t by stating: 11W ill be la id o ff fr o m p re se n t
jo b b eca u se of a u to m a tio n --17 oth ers in clu d ed. ir
A ge and R e em p lo y m e n t. U nem ploym en t w as at about the sam e le v e l, a little
o v e r o n e -fo u r th , am ong a ll age groups under 55 (table 29). At 55 and o v e r ,
u n em ploym ent am ounted to m o r e than o n e -th ir d ; and in addition a lm o s t one th ird w e r e not seek in g w o rk .
C om m en ts by d is p la c e d w o r k e r s resp on d in g to the q u e stio n n a ire s
m o s t freq u en tly c ite d age as a c r it ic a l handicap in s e cu rin g re e m p lo y m e n t,
fo r ex a m p le:
"W ho w ou ld h ir e a m an o f 50 u n less he w o rk e d fo r n o th in g ? ”
(A ge 51)
" T o o o ld to w o r k and too young fo r a p en sion . I hope the
G ov ern m en t w ou ld co m e up w ith som e kind of w o r k fo r us
m en 50 and o v e r . M (A ge 50)
"E v e ry w h e re I lo o k e d fo r w o rk they to ld m e I w as too o ld . n
(A ge 49)
MIt w as quite d isco u ra g in g to be to ld I w as too o ld .
now 49 and can still put out a d a y ’ s w o rk . "
I am
E du cation and R e e m p lo y m e n t. The r e la tiv e ly sm a ll group o f high sch o o l
graduates fa r e d c o n s id e r a b ly b etter than a ll o th e rs , with a re e m p lo y m e n t
total o f o v e r 90 p e r c e n t. (See table 2 9 .) On the other hand, th ose with
som e high s ch o o l ed u cation had a sligh tly w o r s e e x p e r ie n ce than w o r k e r s
who had not attended high s c h o o l.
T a b le 31 p re s e n ts a c r o s s tabu lation o f em p loym en t status by age
and edu ca tion . B e ca u se of the sm a ll num ber of w o r k e r s in v olv ed , only two
age groups o f about equal s iz e a re u sed : " le s s than 45 y e a r s " ; and "45 y e a rs
and o ld e r . " A m on g the o ld e r w o r k e r s , th ose who had som e high sch o o l
ed ucation had a b etter re e m p lo y m e n t r e c o r d than th ose with no high sch o o l
tra in in g. T h e ir u n em p loym en t rate was about o n e -fo u r th , co m p a r e d with
a rate of m o r e than o n e -th ir d am ong the le s s ed u ca ted. The high sch o o l
graduates w e r e too few fo r v a lid co m p a r is o n . In the you n ger group, high
s ch o o l graduates had a c o n s id e r a b ly m o r e fa v o ra b le e x p e r ie n c e than eith er
o f the other two g ro u p s, an un em ploym ent rate o f only 8 p e rce n t. H o w e v e r,
those who did not co m p le te high sch o o l fa r e d w o r s e than the w o r k e r s who
did not attend high s ch o o l at a ll.
84
The feelings of older workers with little education were expressed
by one respondent, 55 years old, as follows: l,My age is against me. My
education is against me. Nobody seems to want me anymore. n
Table 31.
Foundries--Employment Status of Displaced Workers by
Selected Age Group and Educational Level1
Percent
Educational level
A ll
displaced
workers
All
workers
Employment status
Em
Unem Not seeking
ployed ployed employment
Less than 45' years
All educational
levels ....................
100
100
75
25
0
No high s c h o o l.............
Some high sc h o o l.........
High school graduate . .
47
20
33
100
100
100
76
43
92
24
57
8
0
0
0
45 years anc. older
All educational
levels ....................
100
100
49
32
19
No high s c h o o l.............
Some high school . . . « .
High school graduate . .
68
28
4
100
100
100
44
54
100
37
23
0
19
23
0
*Age and educational level at termination.
Note: Differences between tables 29 and 31 are due to exclusion of
questionnaires that did not contain data for both age and education.
Skill Level and Reemployment. As shown in table 32, the rate of unemploy
ment was highest for the lowest skill job, laborer. About one-half of the
workers in that occupational group were unemployed. Unemployment rates
among operators and maintenance workers were each about one-third.
A rough measure of relative skill is hourly earnings. For example,
the percent employed was considerably greater for the 1 out of 4 foundry
workers who had earned $2 .70 or more per hour than for lower paid workers
(table 29). The rate of unemployment was by far the highest for the lowest
paid fourth who had received less than $2. 30 per hour.
85
Table 32.
Foundries--Employment Before and After Termination,
by Occupation
Employment status at survey date (percent)
Occupation
at closed
foundries
Employed in present job a s -Percent
Main
Custo
ah
age dis
te
Oper
Unem
L a
dial
tribution work
nance
Other
ator
ployed
work borer
at closed
ers
work
er
foundries
er
Operator . . . .
55
100
36
16
24
13
0
11
Foreman . . . .
4
100
0
40
60
0
0
0
Laborer .........
22
100
48
14
14
24
0
0
Maintenance
worker . . .
13
100
33
17
0
17
33
0
Clerical
worker . . .
6
100
0
0
0
40
0
60
Industries Providing Jobs. Only 8 percent of the reemployed workers found
jobs in other foundries. (See table 33.) Fewer than half were working in
manufacturing industries. Manufacturing industries providing the most jobs,
other than foundries, were machinery and fabricated metal products. E m
ployment in nonmanufacturing firms was secured principally in construction
and retail trade. One-fifth were employed in government, mainly in schools.
Assistance in Finding Jobs. More than 3 out of 5 workers cited the State
employment service, friends or relatives, and classified newspaper ads as
sources used in seeking jobs. About equal proportions, 1 out of 8, named
the company, the union, and private employment agencies, respectively.
Friends or relatives was the source named as responsible for actually
locating present jobs by close to half of the reemployed workers. One out of
7 stated they had obtained their jobs without assistance. One-tenth credited
the State employment service. Four percent named the union.
Mobility and Reemployment. As indicated by the actions of the displaced
foundry workers, the mobility of the job seekers seems to have had little
effect on their success in securing employment. A slighter greater percentag*
86
of the employed workers than unemployed stated that they had sought work
outside their home city. The same percentage of both groups, about 1 out
of 12, extended their area of job search further than 50 miles from home.
Table 33.
Foundries--Types of Industries
Providing Current Jobs1
Industry
Percent of
employed
workers
Total, all employed w o rk ers...........
100
Manufacturing...............................................
Foundry .....................................................
Other primary metal products .........
M achinery................................................
Fabricated metal products..................
Paper products........................................
O t h e r ......... ................... ............................
42
8
4
8
6
4
12
Nonmanufacturing........................................
Construction............................................
R e ta il..........................................................
Other
.................. ...................
36
12
12
12
Government...................................................
Schools.......................................................
H o sp itals.......................................... .. . . .
Other ..........................................
19
8
3
8
Self-employed ...............................................
3
^o b s held at time of the survey.
Training and Reemployment. Only 4 percent of the workers reported having
taken training courses since leaving the foundries. Approximately 75 percent
of the workers, however, responded that they would be interested in taking
training if it were offered without cost to them. Among the training courses
most desired were welding, construction equipment, construction, mechanics,
and electronics.
87
Some Job Effects of Displacement
Effect on Earnings, Three-fourths of the displaced
secured jobs suffered a decline in hourly earnings.
over one-fifth of the total, the drop in earnings was
For close to two-fifths, it was 20 percent or more.
higher earnings than at the foundry.
Table 34.
foundry workers who
(See table 34.) For
30 percent or more.
Only one-sixth had
Foundries--Change in Earnings Level
Percent on current job receiving-At
20. 0- 10 .0- Up to
Same
least
Higher
T otal
29. 9% 19.9% 9.9%
30%
earnings1 earnings
less
less
less
less
All employed
workers .........
100
22
16
22
16
8
16
Under $2. 3 0 ...........
100
8
8
25
17
17
25
$ 2 .3 0 - $ 2 . 4 9 ____
100
15
8
15
15
15
31
$2. 50 - $2. 6 9 ____
100
25
25
8
33
0
8
$2. 70 - $2. 8 9 ____
100
30
30
40
0
0
0
$ 2. 90 and over . . . .
100
67
0
33
0
0
0
1Within 5£ either way.
Note:
equal 100.
Because of rounding, sums of the individual items may not
Those most sharply affected were the workers previously at higher
wage levels. Well over half of those earning $ 2 .50 or more per hour expe
rienced a decline of at least 20 percent, compared with less than one-fourth
of those previously earning less than $2. 50. Moreover, virtually all of the
workers attaining increased earnings had been in the lower wage group.
Five out of 6 reemployed workers stated that their current jobs were
no better than their foundry jobs in fringe benefits, and close to half said
they were worse. The impact of the loss of fringe benefits, on top of the
88
combined handicaps of age and education in seeking reemployment, was
expressed by a 54-year-old displaced worker as follows: llEvery place I
went. . . .too old and didn’t have a high school education. After 23 years
at one company. Then to lose everything, pensions and insurance.”
The proportion of wives working increased somewhat in families
with displaced men, but mainly where men were employed at the time of
the survey. The number of wives working full-time increased substantially,
among the families of both the employed and the unemployed men, since the
foundry closings.
Changes in Type of Job. Many workers were reemployed at lower skills.
Thus, most of the machine operators who were reemployed were working
at custodial or laborer jobs (table 32). A number of maintenance workers
obtained jobs as machine operators or laborers.
In comparing their current job with their foundry job, close to half
of the workers believed their current jobs to be worse in prospects for
promotion. Around half found there was no difference in supervision and
hours of work. Somewhat equal proportions stated that the type of work
was better, the same, or worse.
Effects on Union Membership. Before the closing of the foundries, 9 out of
10 workers were union members. At the time of the survey, however, union
membership among the displaced workers was reduced to one-third of the
total. A major part of the membership loss occurred among the unemployed
and those not seeking work. However, even among the employed, slightly
under one-half indicated that they were members of a union after reemploy
ment.
89
Appendix A.
Scope and Method
This is a study of the characteristics and experiences after layoff
of close to 3,000 displaced w orkers.1 Information about the workers was
obtained from four sources: (1) the previous employer’ s payrolls and per
sonnel records were used to obtain the names, addresses, and data on
certain characteristics of the displaced workers; (2) company officials and
union representatives were interviewed to obtain background information;
(3) questionnaires mailed to the workers contained most of the information
received from the employers for correction or corroboration by the workers,
and provided for additional information on worker characteristics and post
layoff experiences; and (4) local offices of the State employment service
agencies supplied data on length of unemployment and job referrals.
Obtaining the Data
In three cases, information was obtained from over 90 percent of
the displaced workers. In the other two, because of the large number of
workers involved, a sample of the displaced workers was selected for study:
1 out of 4 in the case of the petroleum refinery; and 2 out of 3 in the case of
the automotive equipment plant.
In each of the studies, more than half of the displaced workers to
whom questionnaires had been sent answered the first request. A second
request was sent to those not responding and generally about half of those
likewise responded. A sample of the remaining nonrespondents was
selected for follow-up. These generally were reached by telephone or,
if they could not be reached in that way, by personal visit. In a few cases,
when the selected nonrespondent could not be reached, some information
was obtained through neighbors or relatives. The information obtained
from the workers by telephone and personal visits was weighted to repre
sent the other nonrespondents in the sample and nonrespondents who were
not In the sample in order to minimize any bias resulting from the possible
similarity of nonrespondents.
l T h e individual case studies concerned: (1) about 800 workers laid
off by a Midwest petroleum refinery in the course of a year; (2) over 1,000
workers displaced by the shutdown of a Midwest automotive equipment plant;
(3) some 600 workers displaced upon the partial closing of a Midwest glass
jar plant; (4) about 300 workers displaced by the closing of an Eastern floor
covering plant; and (5) about 100 workers displaced by the shutdown by a
single employer of two iron foundries, one in the Midwest and the other in
a Mountain State. Because the small number of workers displaced by the
closing of each of the two iron foundries limited feasible statistical break
downs, the data for both foundries have been combined to form a single case
study.
90
A comparison of the information from the voluntary respondents and
that obtained by telephone and personal visits revealed no significant differ
ences in characteristics or status. Observations made by the nonrespondents
indicated that they generally felt more bitterly toward their previous employer
or their union. Several stated they did not respond because they could not
adequately report their feelings. Others said they were suspicious that the
company was connected with the study and was seeking information.
Tabulation of the Data
Answers to each question were tabulated independently. Because of
omissions, therefore, the number responding to each question varied. In
each instance, only those responding to a particular question were included
in the tabulation and the total number of answers were given the value of
100 percent. This variation in the total number of cases sometimes resulted
in minor discrepancies in cross tabulations requiring answers to two or more
questions. Such discrepancies have been noted where they occurred. On
some tables, percentages do not total 100 because of the rounding of decimals.
Since some of the questions asked for opinions or could be interpreted
differently, there were also other apparent inconsistencies in the tabulations.
For example, the workers were asked to evaluate their present wages as
"b e tte r,” "w o r s e ," or "s a m e ." In some cases, they would consider a lower
wage as "better" because they were able to work more hours. No attempt
was made to edit either fact or opinion answers. Where there was an obvious
misunderstanding, the answer was omitted from the tabulation.
Throughout the study, data on length of time unemployed or length of
period for which unemployment insurance benefits were received include all
unemployment experiences between the time of layoff and the time of the sur
vey. The terms "employed" and "reemployed" are used interchangeably and,
for the purposes of this report, have the same meaning.
Limitations of the Study
In evaluating the findings of this study, it is important to note certain
limitations of its scope and method.
First, as a series of case studies, the study as a whole is at most
illustrative, not representative, of the characteristics and experiences of
workers who have been displaced because of technological or other change.
Some generalizations have been made from the data, but the data in the
separate case studies have not been combined statistically. What has been
attempted in the summary section was a comparison of the data for the dif
ferent case studies to bring out any consistent patterns or contrasts that they
might reveal.
91
Second, the study was based on written questionnaires sent to the
homes of the displaced workers, as well as written records of the compa
nies involved and the local offices of the State employment service agencies.
Because of the size of the project and time limitations, no oral interviews
were obtained from the voluntary respondents to secure other than the basic
employment data requested in the questionnaires. Consequently, the ques
tions had to be more limited and simpler than might otherwise have been the
case to prevent misunderstanding. Even so, there was some variation in
the answers to certain questions, depending on the respondents interpreta
tion of the information requested. Also, it is clear from some of the com
ments that, despite the statement on the use that would be made of the
questionnaire, some respondents might have hoped for some benefits or
assistance as a result of their cooperation, and such expectations might
have influenced their answers.
Third, it was not feasible to establish a uniform time interval between
layoff and survey. Consequently, the interval varied broadly from a minimum
of 6 months to a maximum of 21 months. In one case, a large-scale layoff
was carried out over a period of more than a year, and the period between the
layoffs and the survey varied from 6 months to over a year and a half. Much
of the data on employment and unemployment and duration of unemployment
were affected by the time that had elapsed after layoff.
93
Appendix B.
Selected Bibliography of Displaced Worker Studies
Adams, Leonard P .; and Aronson, Robert L. Workers and Industrial
Change (Ithaca, N. Y. , Cornell University, 1957). 209 pp.
Automation Committee (Clark Kerr, Chairman), Progress Report of
Armour’ s Tripartite Automation Committee (Chicago, June 19, 1961).
29 pp. Excerpted in Monthly Labor Review, August 1961, pp. 851-857.
Clague, Ewan; Couper, Walter J. ; and Bakke, E. Wight.
Shutdown (New Haven, Conn., Yale University, 1934).
After the
153 pp.
Creamer, Daniel; and Coulter,__Charles W. Labor and the Shutdown of the
Amoskeag Textile M ills. /U .S ^ / Works Progress Administration,
Report No. L -5 of the National Research Project (Philadelphia, Works
Progress Administration, November 1939). 342 pp.
Creamer, Daniel; and Swackhamer, Gladys V. Cigar M akers--After the
Lay-Off: A Case Study of the Effects of Mechanization on Employment
of Hand Cigar Makers. /U .S . / Works Progress Administration, Report
No. L - l of the National Research Project (Philadelphia, Works Progress
Administration, December 1937). 93 pp.
Ferman, Louis A. Death of a Newspaper: The Story of the Detroit Times
(Kalamazoo, Mich. , The W. E. Upjohn Institute for Employment
Research, April 1963). 63 pp.
Haber, William; Ferman, Louis A .; and Hudson, James R. The Impact of
Technological Change: The American Experience (Kalamazoo, Mich. ,
The W. E. Upjohn Institute for Employment Research, September 1963).
62 pp.
Lubin, Isador. The Absorption of the Unemployed by American Industry
(Washington, Brookings Institution, 1929). 4 2 pp.
Miernyk, William H. Inter-Industry Labor Mobility: The Case of the
Displaced Textile Worker (Boston, Northeastern University, 1955).
158 pp.
Myers, Charles A. ; and Shultz, George P. The Dynamics of a Labor
Market (New York, Prentice-Hall, Inc., 1951). 219 pp.
Myers, Robert J. ’’Occupational Readjustment of Displaced Skilled
Workmen, ” Journal of Political Economy, August 1929, pp. 473-489.
94
Palmer, Gladys L .; and Williams, Constance. Reemployment of Phila
delphia Hosiery Workers After Shutdowns in 1933-34. /U .S . / Works
Progress Administration, Report No. P -6 of National Research Project
and Industrial Research Department, University of Pennsylvania (Phila
delphia, Works Progress Administration and University of Pennsylvania,
January 1939). 100 pp.
Sheppard, Harold L. ; Ferman, Louis A. ; and Faber, Seymour. Too Old
to W ork--Too Young to Retire: A Case Study of a Permanent Plant
Shutdown. Special report, U .S. Senate, Special Committee on Unem
ployment Problems, 86th Cong. , 1st sess. (Washington, Government
Printing Office, I960). 74 pp.
Sheppard, Harold L .; and Stern, James. "Impact of Automation on
Workers in Supplier Plants, " Labor Law Journal, October 1957,
pp. 714-718.
Weber, Arnold R. "Interplant Transfer of Displaced Employees, " Adjust
ing to Technological Change, edited by Gerald G. Somers and others
(New York, Harper and Row, 1963), pp. 95-143.
Wilcock, Richard C. "Employment Effects of a Plant Shutdown in a
Depressed Area, " Monthly Labor Review, September 1957, pp. 10471052. For full report, see BLS Bulletin 1264 (i960), Impact on Workers
and Community of a Plant Shutdown in a Depressed A rea.
Wilcock, Richard D.; and Franke, Walter H. Unwanted Workers: Perm a
nent Layoffs and Long-Term Unemployment (New York, Free Press of
Glencoe, 111. , 1963). 340 pp.
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