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Digitized by Google WORKS PROGRESS ADMINISTRATION HARRY L. HOPKINS Administrator CORRINGTON GILL Assistant Administrator NATIONAL RESEARCH PROJECT 'I on Reemployment Opportunities and Recent Changes in Industrial Techniques DAVID WEINTRAUB Director IRVING KAPLAN Associate Director Studies of the Effects of Industrial Change on Labor Markets . ~ \ I • '- Digitized by Google THE W.P.A. NATIONAL RESEARCH PROJECT ON REEMPLOYMENT OPPORTUNITIES A..~D RECENT CHANGES IN INDUSTIµAL TECHNIQUES Under the authority granted by the President ln the Executive Order whlch created the Works Progress Admlnlstratlon, Admln 1 strator /iany L. Bop kins au tnorl zed the estaoll shmen t o! a research program ror the purpose or couectlng and analyzing data oearlng on problems or employment, unemployment, and re11er. Accordingly, the National Research Program was establ 1 shed 1n October 19.36 under the supervt ston or Cor-rin6 ton Gill, Assistant Adrelnlstrator or the WPA, who appointed the directors or the lndlvldual studies or proJects. The Project on Reemployment Opportunl ttes and Recent Changes ln Industrial Techniques was organized tn December 1935 to lnqulre, wlth tne cooperation or industry, labor, and governmental and private agencies, lnto the extent or recent changes ln lndustrlal technlq_ues and to evaluate the errects or these changes on the volume or employment and unemployment. David Weintraub and IrtJing Kaplan, members or the research start or the Divlslon er Researcn, Stat1stlcs, and Finance, were appointed, respectively, Director and Associate Director or the Project. The task set ror them was to assemble andorganlze tne exlstlng data Whlch bear on the problem and to augment these data bY tield surveys and analyses. To this end, many governmental agencies which are the collectors and repositories or pertinent 1nrormatlon were lnVl ted to cooperate, The cooperating agencies or the Unlted States Government include the Department or Agriculture, the Bureau or Mlnes or the Department or the Interior, the Bureau or Labor Statistics or the Department or Labor, the Rall road Retirement Board, the Social Security Board, the Bureau or Internal Revenue or the Department or the Treasury, the Department or Col1l!llerce, the Federal Trade Commission, and the Tar1rr Commisslcn. The roll owing pr 1vate agenc I es j o lned w1 th the Natl onal Research Project in conducting spectal studies: the Industrial Research Department or the Untversl ty or Pennsylvania, the Natlonzl Bureau or Economic Researcn, Inc., the Employment Stablllzatlon Research Institute or the UnlversitY or Minnesota, and the Agrtcul tural Economics Depart.men ts ln the Agricultural Experiment Stations or Callrornla, lllinols, Iowa, and New York. Digitized by Google CIGAR MllERS - AFTER THE LAY-OFF A case study of the effects of mechanization on employment of hand cigar makers by Daniel Creamer and Gladys V. Swackhamer Studies ot the Ettects ot Industrial Change on Labor Markets Report No. L-1 Philadelphia, Pennsylvania Dece11ber 1937 Digitized by Google EMPLOYMENT AND UNEMPLOYMENT AFTER LAY-OFF PERCENT DISTRIBUTION Of TOTAL ELAPSED SINCE LAY-Off IN C IGAR INDUSTRY 19.0% * / MONTHS / / / EMPLOYED / / / / NOT IN CIGAR INDUSTRY 16.8% See table 22 for data. WPA - Natlonal Resaarch Project LS-6 *This figure consists of 10.2 percent spent in working for others and 8.8 percent spent inself-employment which has constituted chiefly a form of disguised unemployment. See d i scussion, pp. 51-7. Digilized by Google WORKS PROGRESS ADMINISTRATION WALKER-JOHNSON BUILDING 173' NEW YORK AVENUE NW. WASHINGTON, D. C. HARRY L. HOPKINS ADMINlffll,.TOII December i6, i937 Hon. Harry L. Hopkins Progress Administrator Works Sir: I have the honor to transmit a report on the study of the effects of mechanization on employment and earnings of workers in the cigar industry. The study is the first in a series on "Effects of Industrial Change on Labor Markets" and is based primarily on a case study of a plant which was mechanized in i93i. The competitive conditions under which the change in process was made and the characteristics of the personnel involved have been and continue to be so typical of the industry, as the supporting evidence presented shows, that generalization of the findings has been appropriately undertaken. The principal finding, of special concern to a relief administration, is that many thousands of workers, formerly or now attached to the cigar industry as skilled artisans, will be primarily dependent for their wellbeing on public relief formany years. Since i920, the cigar has rapidly been losing ground to the cigarette. Ever increasing numbers of cigar manufacturers have been finding themselves confronted with the alternatives of either losing their markets or reducing the costs of production and the price of their product to levels whichwillmaintainaprofitable volume of output. Mechanization of the cigar-making process has afforded the instrument for the reduct ion in cost, and the manufacture of a product to retail at five cents or less has resulted in at least the r~tardation of the decline in production. The combined inroads of declining production and mechanization of the production process have reduced the average employment in the cigar industry 760826 Digitized by Google from ii4,000 in i9i9 i935. to 84,000 in i929 and 56,ooo in The decline in employment represented by the above figures reflects only part of the loss of employment to which cigar workers have been subject. It is estimated that byi929, ten years after the first cigar plant was mechanized, 35 percent of the total cigar output was a machine product. The aggravated price competition during the depression further favored the encroachment of machine production so that more than half of the i933 output was machine made. Almost without except ion, whenever a plant is mechanized, the entire force of hand cigar makers is dismissed and a smaller number of young women is hired to operate the newly installed machines. It is estimated that upwards of iS, 000 machine operators have been thus substituted in automatic production plants, and that approximately 40,000 are working in the other plants. The hand cigar worker who can still find an employer for his craft works under the overhanging threat of displacement by machine competition - a threat reflected in his reduced wage rate and earnings. Available evidence indicates that, for cigars selling at 5 cents or less, hand workers whose product competes with machine production earn less than the machine operators. The great majority of skilled cigar makers are well on in years and have been long habituated to a single craft which is not transferable to other industries. The typical prospect, when the cigar factory at which he is employed mechanizes, is unemployment of long duration, interrupted for relatively few by occasional jobs. The displaced artisan cannot look forward to making a living at a job at his craft. Self-employment in the industry frequently does not yield subsistence. The employed artisan who will be displaced by machines in the years ahead will find small comfort in the present coverage of the unemployment compensation laws. The chances are that irregulariJy of employment prior to his final lay-off will leave him with a very short or no period of eligibility for benefits ahead, and, in any event, the limited eligibility period will only postpone the problem of long-time unemployment. Typically too old a hand at his craft to make a favorable self-adjustment and not old enough for an old age pension, the cigar worker who will be displaced in the next few years will ordinarily, like his i.)rother dis- Digitized by Google placed in the past, wait for the means test to overtake him. This study was made under the direction of Irving Kaplan, Associate Director of our National Research Project. The Bureau of Research and Statistics of the Social Security Board has collaborated in the project, out of which this study has developed, by making available the services of Danie 1 Creamer, a member of its staff. The report was prepared by Mr. Creamer and Miss Gladys V. Swackhamer. Respectfully yours, ~7 /2 ~ Corrington Gill Assistant Administrator Digitized by Google Digitized by Google C O N T E N T S Section Page PREFACE • • • I. xv INTRODUCTION •• l Survey procedure. II. III. 2 TRENDS WITHIN THE CIGAR INDUSTRY AND THEIR RELATION TO THE COMPANY. Economic pressures. • Mechanization and the 5-cent cigar. Proposed wage cut and refusal of hand workers Mechanization and -lay-offs. • • • • Productivity and production costs of men and machines. • • • • • • • • • • • • • • Extent and nature of the labor displacement at the Company. • • • • • • • • • • 20 PERSONAL CHARACTERISTICS OF THE HAND WORKERS •• 27 Nativity • • • • • • • • Years at cigar making. Years in Manchester. Years with the Company •• Employment pattern at the Company before the lay-off • • • • • • • IV. V. 4 DIFFICULTIES OF REEMPLOYMENT IN INDUSTRY AFTER THE LAY-OFF. • 4 9 13 15 16 27 28 30 31 32 34 Special obstacles presented by the cigar industry and the Manchester Area Unemployment between lay-off and next job Total unemployment • • • • • • • • • • • Employment status at time of interview •• Relation of age to employment status at time of interview. • • • ••• The role of migration • • • • • • • Character of jobs after the lay-off Duration of current status. Public assistance • • • • • Self-employment at cigar making Earnings as "buckeyes" • • • • • • I • Other eDlployment as cigar makers • • • 54 58 COMPARISON OF EMPLOYMENT PATTERN, EARNINGS, AND UNIONIZATION OF MACHINE OPERATORS AND HAND WORKERS • • • 59 Employment of machine operators. 34 36 37 38 40 40 43 47 49 51 59 ix Digitized by Google CONTENTS X Page Section 64 67 Earnings of machine operators. The union after the lay-off. VI. 70 SUMMARY AND CONCLUSIONS 70 Summary • • • • • • • Appraisal of social resources Conclusion - residual relief problem. APPENDIX A: Case Case Case Case Case Case Case 1. 2. 3. 4. 5. 6. 7. 72 76 79 A FEW CASE HISTORIES 79 80 81 81 82 .. . . APPENDIX B: 83 83 DESCRIPTION OF PROCESSES 85 Preliminary operations. • Description of hand manufacture of cigars. Description of combination hand and machine manufacture of cigars, • • Description of machine manufacture of cigars. Subsequent operations • • • • • • • • • APPENDIX C: WEEKLY EARNINGS OF CIGAR WORKERS. APPENDIX D: SCHEDULE AND EXPLANATION OF TERMS USED IN THE SCHEDULE 85 85 86 87 87 88 91 92 Schedule used • • • • • CHARTS AND ILLUSTRATIONS Figure Employment and unemployment after lay-off. • • 3. 1ron.Hsf)iece Per capita consumption of cigars and cigarettes, 1900-1934. • , •• 5 Total cigars and class "A" cigars produced in the United States and in New Hampshire, 1921-1935 • • 7 Cigar-making machine. 9 Number and sex of employees of the Company, 1921-36, 23 Age of cigar machine operators and hand cigar makers 25 Digitized by Google CONTENTS xi CHARTS AND ILLUSTRATIONS-Continued Page Ptgure e. Preparing the binder for a hand-made cigar • • • • 32 7. Employment status by age groups five years after the lay-off • • , • 39 a. Hand worker "bunching the filler" 55 9. Hand cigar maker applying the binder leaf. 56 10, Making oigars by hand • • • • • . • 62 11. Two-operator cigar-making machine. 63 TEXT TABLES Table Table Table Table Table Table Table Table Table 1. 2. 3. 4, 5. 6. 7. a. 9. Table 10. Production of large cigars, in New Hampshire and the United States, 1920-36 • • • • • • • 6 Percentage distribution of cigars produced, by classes, in New Hampshire and the United States, 1921 and 1924-35. • • • 10 Distribution by average production per machine-hour of 74 wrapper machine operators at the Company, 1936. • • • • • • • • • • 18 Distribution of the estimated daily production of 26 hand cigar makers while working for · the Company • . • • 18 Average annual number employed and the average annual production of cigars at the Company by biennial periods, 1929-36, • • • • • 21 Number of hand oigar makers employed at the Company, 1931-32 • • • • • • • 22 Distribution by sex of the Company employees, 1921-36. • • • • • • • • • • • • • 23 Comparison of the age distribution of 202 machine operators with the age distribution of 328 hand cigar makers. • • • 26 Classification by country or State of birth of 150 hand cigar makers in Manchester, New Hampshire. • • • • • • • • 27 Distribution of 150 cigar make~s at the Company by time spent at making cigars by hand. 28 Digitized by Google xii CONTENTS TEXT TABLES-Continued Table 11. Table 12. Table 13. Table 14. Table 15, Table 16. Table 17. Table 18. Table 19. Table 20. Table 21. Table 22. Table 23, Table 24, Page Distribution of 150 cigar makers at the Company by years at making cigars by hand as a percent of years in the labor market. 29 Three hundred and twenty-eight hand cigar makers employed by the Company, classified by the cigar trade union local of first affiliation. • . • . • • • • • 30 Distribution of 150 hand cigar makers by length of service with the Company, 1931 31 Distribution of 116 cigar makers by months of unemployment between lay-off from the Company and next job, • • , • • • • • , • • 36 Distribution of 116 cigar makers according to their total unemployment since lay-off • 37 Employment status and age distribution of 224 cigar makers laid off by the Company in 1931 39 Geographical dispersion of 149 cigar workers who left Manchester after lay-off. • . • . 41 Distribution by age of 90 hand cigar makers who emigrated from Manchester, related to age distribution in entire sample, 1931-36 42 Two hundred and twenty-four hand cigar workers classified by industry of present job in Manchester and elsewhere 43 Classification by industry of all jobs held by 116 hand cigar workers seeking work after lay-off in 1931. . • • . • • • • 46 Duration of current employment status of 129 cigar makers laid off by the Company in 1931 • . . . . . • . . . . . . • • • 47 Distribution of total elapsed months between lay-off and date of interview, by employment status. . • • • . • • • • . • . 49 Geographical dispersion of cigar makers who are working at their trade , , • • • • • 53 Estimated annual earnings from cigar making at the Company in 1930 and as "buckeye" proprietors in 1936, • • • • , • • • , , , • 57 Digitized by Google CONTENTS xiii TEXT TABLES-Continued Table 25. Table 26. Table 27. Page Monthly index of man-hours worked by machine operators at the Company in 1936, 59 Distribution of 202 machine operators at the Company by the percent of actual man-hours worked in 1936 to the theoretical maximum. 60 Distribution of 202 machine operators at the Company, by number of weeks with no employment, 1936 • . • . • . . • • • . . . • 61 Table 28 •. DistributiQn of 202 machine operators at the Company, by weeks of less than full-time but not less than half-time employment, 1936 . . . . . . . . . . . • • • . • . Table 29. Table 30. Table 31. 62 Distribution of 202 machine operators at the Company by weeks of full-time employment, 1936 . . • . . • . . • . . . . . . . . 64 Distribution of 202 machine operators at the Company, by annual earnings, 1936. . . 65 Distribution of 202 machine operators at the Company by hourly earnings in 1936. • 66 APPENDIX TABLES Table C-1. Average earnings per week, by classes of cigars produced in the United States. • 88 Table C-2. Average earnings per week, by States, of workers on class "A" cigars . . . • , • 89 Digitized by Google Digitized by Google PREFACE This study of workers in the cigar industry begins a series planned to throw light on the bearing of economic conditions and the technological developments associated with these conditions on the employment and unemployment experience of workers in selected industrial situations. In the situation covered by this survey, more than 600 male cigar makers were laid off in 1931, and some 200 female machine operators were taken on instead to make a cheaper product by automatic machinery. The findings are based primarily on an analysis of the employment and earnings records of the cigar workers who were laid off and the machine operators who were substituted. During the 5 years following the lay-off, the cigar makers, as a group, were without work 52 percent of the time, although able and willing to work and actively seeking ~ork. Nine percent of their time was spent in self-employment in the cigar industry, 10 percent in working for others in the industry, and 17 percent in working outside the cigar industry. The remaining 12 percent of the time was accounted for by those who became too old or otherwise disabled for work. Five years after the lay-off approximately 13 percent were self-employed cigar makers, and many more had tried self-employment in the interim and had failed. Another 17 percent were employed by others in the cigar industry; some of these had the precarious security of jobs with "buckeyes", 1 while others were no longer cigar makers but had obtained semiskilled or unskilled jobs with the company which had mechanized_ its plant. Though many of them roamed far and wide in quest of a livelihood, the majority found no work at cigar making, and 25 percent found no work at all during the 5 years after the lay-off. Jobs were typically casual, unemployment typically of long duration, and the older the worker the more prevalent was going without work. The effects of the mechanization of the cigar-making process are illustrative of the type of technological change in which the production process is completely converted fromasystem employing hand workers to one ut il iz ing automatic machinery and 1 The •buckeye• 1s a self-employed cigar maker manuractur1ng on a small scale. He has no or only a re" employees. In the situation surveyed, "buckeye• operation has constituted a form or disguised unemployment. xv Digitized by Google xvi PREFACE machine operators. Since mass product ion methods have become widely preTalent, the field for this type of technological change has necessarily become limited. Other examples do, however, come to mind. Glass blowing went through a cycle of such changes during the earlier decades in this century. In more recent years the baking industry has been similarly affected. When a hand process becomes mechanized, the experience and personal characteristics of the hand workers ordinarily afford no special qualification for service in the substituted production process. Frequently, as in the caseofmechanization in the cigar industry, there is at least an apparent advantage in substituting new personnel with the new process. The character of the technological change is thus important in determining the number and type Df workers who become unemployed. On the other hand, the extent of unemployment facing the workers immediately affected by the loss of job is controlled, not by the type of technological change, but by the economic conditions under which the change takes place and by the characteristics of the workers affected. In the case of the cigar industry, the economic conditions have been those of markedly declining production, reducing opportunities for employment in the industry, and the characteristic worker is a skilled artisan long associated with his craft and an "older worker." Examples of industries characterized by declining production and declining opportunities for employment are, of course, much wore numerous than those of industries affected by the drastic type of technological change represented by the transformation of handicraft to machine methods. Moreover, during the past 8 years almost all industries have been subject to severe curtailment of production and employment for relatively long periods of time. Under such circumstances the pressure for cost reduct ion is indeed very great, and a technological improvement which reduces the number of jobs or subst it ntes one group of workers for another is 1 ikely to impose prolonged unemployment among many of the workers laid off. When jobs elsewhere, in the worker's usual industry or in other industries utilizing his special qualifications, are scarce, theworker's eagerness to work is usually of little consequence. The cigar maker's skill is not transferable to other industries and this is characteristic of skills in many industries. The Digitized by Google PREFACE xvii skills of hand operatives and of skilled workers generally are, to a greater or lesser degree, specialized to an industry, and this specialization may fundamentally limit their transferability. These skilled workers are quite generally subject to the effects of technological changes, whether singularly drastic, as in the case of the cigar industry, or continuous and cumulative, as in most instances. Their security is therefore much more generally undermined by the more common types of technological change than by the complete conversion from hand tomachine production. Apart from the mechanical capacity to utilize or adapt skills required in other industries, long-established association with one industry may also limit the opportunity to become established in another industry. Hen who have worked in the mines traditionally remain dependent on the availability of jobs as miners. It is the farm youth rather than the experienced farmer who finds his way into industry. While 111a.chinists were in demand by many Philadelphia metal industries in 1936, machinists attached to the heavy-equipment industries remained unemployed. In the same year, the Minneapolis metal-working plants were seeking machinists, but railroad machinists remained on the relief rolls. In all these cases the workers I skills are, in greater or lesser degree, specialized to the particular requirements of their usual industry. Other factors than the ability to adapt or acquire the skill required for jobs in another industry are, however, important. The absence of extensive and adequately used placement services may account for the worker's dependence on his habitual associations in his quest for work. A number of studies of the National Research Project are concerned with the degree to which and the conditions under which workers in given occupations and industries find employment in other occupations a11d industries. Since age also is a selective factor, with older workers frequently finding it more difficult to establish themselves anew in industry than young workers, the relationship between age and the characteristics of employment and unemployment experience are subjects of analysis in a number of forthcoming reports in this series. Digitized by Google xviii PREFACE A debt of gratitude is owed to all the cigar makers who were interviewed and without whose generous cooperation this survey would not have been possible. We also are indebted to the R. G. Sullivan Company and the Manchester Local No. 192 of the Cigar Makers' International Union for their help in making necessary records available to us. Mr. John Bogaert, secretary of the union, Hr. Fritz Kuehn, and Mr. Michael Quinn, all former hand cigar makers at the R. G. Sullivan plant, were particularly helpful in tracing the whereabouts of persons in our sample and in providing general information on the history of th~ industry in the Manchester area. To Hr. Lucianus Altenau of Manchester we are obligated for information on the problems of the "buckeye" proprietors, and to Kiss Jules Teras, forelady at the R. G. Sullivan factory, for material on the present-day conditions of e111ployment of the machine operators. Finally, acknowledgment is made to the Portsmouth, New Hampshire, office of the United States Bureau of Internal Revenue, to the Division of Unemployment Compensation of the New Hampshire Bureau of Labor, to the office of the Commissioner of Charities of Manchester, the office of Charities and Correction of Hillsboro County, New Hampshire, and the Central Index of Agencies of Manchester for making available special tabulations included in the report. DAVID WEINTRAUB IRVING KAPLAN PHILADELPHIA December 7, 1937 Digitized by Google SECTION I INTRODUCTION Vice President Marshall is reported to have remarked during a period of war anxiety that what the country neededwasa goodscent cigar. He could scarcely have realized that the need would so soon be filled. When, in 1919, a leading cigar manufacturer demonstrated that cigars could be made entirely by machines, the goods-cent cigar was well on its way toward becoming a reality. Up to that year cigar making had been largely a hand process. The successful introduction of machines meant a virtually complete change in manufacturing technique and an almost complete change in the labor personnel. Artisans, mostly men, with a highly specialized skill, were replaced by machines operated by young women whose work falls into the category of semiskilled. The problems arising from this replacement concerned the sort of adjustments which could be made to an abrupt change in manufacturing technique - a change which involves the substitution of a completely mechanized process for a hand process and the complete turnover in personnel. As an approach to the specific problems of the cigar industry within the framework of the general problems posed by technological innovations of the above type, a particular case was selected fora special study. In 1931, the R. G. Sullivan Company, located in Manchester, New Hampshire, decided to discontinue the manufacture of cigars by the hand process and to substitute the machine method. About s years after the hand workers had been dismissed by the management, this survey was undertaken in an attempt to find out what sort of readjustment these displaced workers had been able to make. The following specific problems of technological unemployment within the cigar industry presented themselves for analysis: To what extent does the long-time shrinkage in the demand for the industry's product intensify the difficulties of adjustment of the displaced worker? To what degree do the personal characteristics of the displaced group Note. - The au th ors wl sh to acknowledge the 1r Indebtedness to the mallJ' who have made contrltlutlons to thls study. Few can here tie specially mentioned. Marlon Hayes designed the charts and made numerous suggestions that have been Incorporated ln the text. Thomas G. Casey assisted ln selecting the sample, Susan R. Caldon and Theresa Corbett were responsible ror the scheduled Interviews, Hay Belle Baird, Lillian Wolkln and Wllllam Barnum prepared tbe taolea, and Margaret Snowden and Roselle Moore prepared the charts. 1 Digitized by Google 2 CIGAR MAKERS condition the type of adjustment that is actually achieved or might possibly be achieved? Finally, what effect has this technological change had upon labor income? SURVEY PROCEDURE These problems are dealt with according to the following procedure. The fluctuations in the R. G. Sullivan Company's business and the circumstances that determined mechanization are traced against the background of the trends in the cigar industry as a whole during the decade of the nineteen twenties and the ensuing depression. The reaction of the workers to the Company's proposed alternative of mechanization or wage reduction has been ascertained by reference to the trade-union minutes covering the negotiations with the management and by personal interviews with individuals. The increase in productivity re-sul ting from the use of machines is evaluated, together with the displacement of manpower. The problems and the extent of readjustment of the displaced hand workers are analyzed in the light of the workers I personal characteristics and occupational history before the lay-off. The personal characteristics and occupational history of these displaced workers were analyzed from data recorded onschedules 1 for a part of a sample of all displaced workers. This sample was obtained by copying from the records of the Manchester local of the Cigar Makers International Union the first 316 names of cigar makers on the membership rolls of 1931. These 316 names rep resented approximately so percent of the displaced hand workers. Since the names had been entered by the secretary in the order in which the men sat in the factory and since there was no planned s~ating arrangement, the sample may be regarded as a random one. In addition, the names of 1.2 small cigar-factory operators, or "buckeyes", in Manchester were obtained from the Internal Revenue Department in order to investigate the adequacy of small cigar factory operation as a method of economic adjustment. Two trained investigators called at the men's homes during a 3-week period in February 1937 and obtained detailed personal and occupational histories for 150 of the 3.28 cases. In1The schedule with the explanation or terms 1s reproduced in Appendix D. Digitized by Google INTRODUCTION 3 eluded in these 150 were the 12 cases added from list and 138 from the random sample. the Revenue Many of the men had moved away or could not be reached personally in the time allotted. Under these circumstances, other sources of information were utilized, and for all but six cases it was possible to secure some items of information, such as the current employment status or the location of the job or the place of residence. From union records the date of birth and the union local of first affiliation were ascertained for almost all of the 328 cases. Many workers were traced through the secretary of the union local and through certain former union members, such as the secretary-treasurer of a workmen's sick and death benefit fund, the City Clerk, and a number of the older men. In addition, the records of the Bureau of Vital Statistics of the city and of the relief agencies were consulted, as well as the files of the American-Canadian Association, a beneficial society operating extensively among the French-Canadian population. Accordingly, the size of the sample will vary with the items under consideration. To complete the investigation of the effects of machine production, consideration is given to the regularity of employment and the earnings of the machine operators who replaced the hand workers. The findings are based on returns made by the R. G. Sullivan Company to the New Hampshire Division of Unemployment Compensation. The gradual demoralization of the trade-union local is also regarded as an aftereffect of mechanization. The concluding section summarizes the efforts, generally unsatisfactory, at economic readjustment on the part of the displaced hand workers, and undertakes an evaluation of the adequacy of· the usual types of social assistance available to such a group. Digitized by Google SECTION II TRENDS WITHIN THE CIGAR INDUSTRY AND THEIR RELATION TO THE COMPANY The Company has been in existence for more than 60 years, and during its en tire history ownership has resided with Mr. Roger G. Sullivan and his children. Its development from a very modest retail tobacco shop, employing one cigar maker, to a factory employing 1,s00 persons at the peak during the war years seems to have been due to the business talents of the founder. His genial personality enabled him to introduce his cigar, the 11 7-20-4", into ever widening markets in New England, and his practice of manufacturing the cigar with quality Havana filler assured him that orders once given would be repeated. 1 At an early date the union obtained a closed-shop agreement, and it was generally understood that the employees at the Company were to have a slight differential above whatever terms and conditions prevailed in Boston, once an important cigar-making center. As a result, cigar making was the highest paid industry of size in Manchester, and the cigar maker enjoyed an enviable position in this mill city. By virtue of his handcraft, he was permitted a degree of independence unknown to other factoryworkers in an age of mechanization. Up to the time of the great depression the factory enjoyed the reputation among hand cigar makers of being the best place to work of all the cigar plants in the country. ECONOMIC PRE8SURES Economic pressures, however, made themselves felt. For some time the popular taste had been changing in favor of the cigarette, which represented a cheaper smoke. The per capita consumption of cigars in this country, asshown in figure 1, began to decline in the first decade of the century, but the peak of annual production was reached in 1920. That the cigar production of New Hampshire, represented to the extent of about 90 percent by the 1rne cigar gets Its name rrorn tne address on Elm Street, Hancnester, New Hampshire, where the business was !lrst housed. 4 Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY FIGURE 1.- PER CAPITA CONSUMPTION OF CIGARS AND CIGARETTES• 1900-19311 (Semi-•ogarithnd:; scale) NUMBER CONSUMED PER CAPITA 1,000 900 --------800 r --- - -- - -- - -- ---- 1---~--·--- ,-, ./ 700 -- - ----- ./ 600 - ---- ----- - --- - t------ 500 ----- ----- ----- 400 ·-f-------- ---/- --- - I ~ JV -/-' ------ 300 - ------ - - - - - - I CIGARETTES~ 200 100 90 - ~70 ~' 80 ~- - I ,_.___ ~I -- ..... I J ~/ I r --- ~- - , ..... >----- ··-- \. I V I 60 I V 40 -------- - ' '·..,,. ...-..... _ CIGARS ,I I 50 30 ---/--- -' - ~ -.... _ •. I ' \. /' \ ..... \/ y 20 10 I 1900 1905 1915 1910 1925 1920 WPA - 1930 National Research 1934 Project L 5- 7 *Tax-paid Reports c.i~ars ana cigarettes of population Co111111lssloner estifl ■ tes of of 101<1 per Internal the Bureau of fiscal Revenue, the ,ear, as derived divided Census, bt fro111 annual .Annual nlldyear 01p1rt111ent of Com11terc1. Digitized by Google CIGAR MAKERS 6 Company, affords no striking exception to national trends, can be seen from table 1 and figure 2. 2 Table 1,- PRODUCTION OF LARGE CIGARS,a IN NEW HAMPSHIRE AND THE UNITED STATES, l920-36b Year 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936c Number of cigars Produced in New Hampshire United States New Hampshire United States (Hill ions) (Percent) 69,7 55,4 56.5 ea.a 74,O 65,9 66,5 60,5 55,3 52,8 Cigar production relative to 1920 8,097 6,726 6,722 6,950 6,598 100.0 79,5 81,1 98,7 106,2 100.0 83,1 83,0 85,8 81,5 6,463 6,499 6,519 6,373 6,519 94.5 95,4 79,8 80.3 80.5 78.7 80,5 40,4 5,894 41,7 44,5 45,4 5,348 4,383 4,300 56,1 4,526 57.8 59,4 86,8 79,3 75,8 58.O 59.8 63,8 72.8 ee.o 54.1 65,1 53.1 80.5 55,9 4,685 82,9 n. a. 85.2 57,9 n.a. aC!gars weighing more than 3 pounds to the thousand. bBased on •Tobacco Division,• Anni.at llepo,,-t of the Co••issione,,. of Inteni.ai Revenue (U. S. Treas. Dept., Bur. Int. Rev., 1920-36). cFigure ror the Company. oras. 0Otalned rrom the Bureau or Internal Revenue rec- n.a.Data not available. 2 At the re.iuest or the R. 0. Sullivan Company, the Bureau or Internal Revenue prov!ded us with the annual total product Ion Cigures or th!S company ror the perJod 1931 through 1936 and wlth the production r1gures oy classes or cigars manuractured during the last 3 years or thls period. The product Ion records 0y classes tor the years prlor to 1931 have oeen destroyed oy the Bureau 1n accordance wlth Its congressional authorlzatlon. In the years 1931 to 1936 1nc1us1ve, the Company produced 97 percent, 92 percent, 95 percent, 94 percent, and 95 percent respectively or New Hampah1re•s total. Thus the output or the Company during this period, all classes considered, was never less than 92 percent or all cl gars manuractured 1n New H8lllPSh1re. Tbis lowest percentage was produced 1n 1932 when many or the displaced cigar makers opened •ouckeye• shops. As these shops gradually l lquldated, the percentage produced 0y the Company Increased. For this period, thererore, It certainly Involves no distortion or racts to assume that tile relative changes In the various annual production totals ror New Hampshire represent accurately the relative changes In tile respective totals or the Company, The assumption seems equally valid ror tile decade or the twenties, since the Industrial directory compiled blennlallY by the New Hampshire Bureau or Laoor lists ror the period under constderatlon only two ctgar manutacturers, the Company and a manuracturer whose personnel never exceeded 10. Toe Census of Nam,factu,,-es has not published the statistics or this Industry tor New Hampshire In order to avoid disclosure. Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY FIGURE 2 .- 7 TOTAL CIGARS AND CLASS "A' CIGARS PRODUCE D IN THE UNI TED ST ATE S AND IN HEW HAMPSHIRE 1921-1935 UNITED MILLIONS STATES Of' CIGAR$ 9.000 8.000L......- - - - - - - - - -- 1921 1924 1925 1928 1927 NEW MILLIONS 80 C:=J - -- OTHER THAN CLASS 'A'" ~ CLASS "A" (FIVE CENTS OR LESS) 1928 1929 1930 193 1 1932 1933 1934 1935 HAMPSHIRE Of' CIGARS c==J OTHER THAN CLASS "A" ~ CLASS " A" (FIVE CENTS OR LESS) 20 L - - - - '- -+-- --+- - 1--- IOL-- - - ' - - + - - - - +- -1----- oL_ _ ........- - '- -+-- --+- - ...,__ _,_ __,__ _ J..._.1-_.i..._.__.._______ 1924 1925 1928 Bated on data in table 2. 1927 1928 1929 1930 1931 WPA - 1932 1933 1934 1935 Nat io na l R•s • arch Pr ojec t LS- 8 Digitized by Google 8 CIGAR MAKERS Although the peak of production for the entire industry was reached in 19.20, the peak for the Company's, or New Hampshire's, share of the industry was not reached until 19.2q. Production for this year was 6 percent above that for 19.20, whereas production for the intervening years seemed to reflect cyclical rather than secular influences. But from 19.25 to the end of the decade a downward trend in New Hampshire's production was discernible. Thus, New Hampshire's production for 19.29 was .2q percent less than for 19.20, although the production for the entire industry had been stabilized during the second half of the twenties at about .20 percent below its 19.20 level. In the first year of the depression the rate of decline for the Company was greatly accelerated and reached its low point in the first half of 1931, whereas the somewhat accelerated but orderly decline for the entire industry did not reach its trough until 1933. This general decline in the volume of cigar production after 19.20 occurred at the very time that an important part of the industry was attempting to improve its competitive position by marketing a low-priced cigar of good quality. To carry this out profitably, it was necessary to effect a substantial reduction in costs. This was tantamount to requiring a substantial reduction in labor costs, since this itemwasa high percentage of the total. The perfection of the automatic "bunching" and "rolling" machine by 1919 provided a method foraccomplishing the requisite cost reduction. In that year the firm of Waitt and Bond, manufacturer of the "Blackstone" cigar, attempted to solve its labor difficulties by moving its factory from Boston to Newark, New Jersey, and there installing automatic cigar-making machinery. 3 The successful use of the machine process by this company was sufficient demonstration of the practicability of applying automatic machinery to the industry, and mechanization, therefore, was not slow to take hold. Upon the basis of Bureau of Labor Statistics figures on cigars produced by machines it has been estimated that in 1919 machinemade cigarswere .2.6 percent of the total; in 1929, 35.1 percent;" and in 1933, 5.2.3 percent. 6 3 Russell H. Mack., The Ci.garKanufactudng Industry(Phlladelphla: Untverstty or Pennsylvania Press, 1933), p. 71. 4 •Technologl cal Changes In the Cigar Industry and Their Errects on Lat>or, • KonthLy Labor Review, 33, No. 6 (Dec. 1931), 13 & 17. 6 r11e Tobacco Sttidy (U. S. Dept. Com., National Recovery Administration, Dlv1s1on or Review, mtmeo. report, Mar. 1936), p. 169. Digitized by Google TRENDS WITHI N THE CIGAR I NDUSTRY 9 MECHAN IZATION AND THE 5-CENT CIGAR The relationship between increased mechanization and the concurrent increase in t he production of inexpensive cigars is sug gested by the shift of production 6 rec ord ed in table 2 . Clas s "A" cigars, which are made to retail at not more than 5 cents, represented only 30 .2 percent of all cigars prod uced in the United FIGURE 3.- CIGAR-MAKING MACHINE This four-operator machine makes long-filler cigar s . From right to left, the first girl places filler tobac c o in the machine, which automatically 1Dakes the bunch. The next oper a tor is respons i ble for the binder leaf, and the third, for the wrapper. The machine then drops the finished cigar for inspect ion by the fourth girl. States in 1921. 7 By 1929 this class accounted for 54.9 percent of the total production and by 1933 for over 85 pe rcent. The gain in class "A" production by 1935 resulted in the virtual elimination of class "B" and the reduction of class "C" by threefourths. 8 Production or cigars by classes is not available, but data ror re111oved tax P&1d ci1ars are available. B1nce there ls onlJ a alight dtrrerence between th1s two series ror the period under consideration, ror purposes or exposition tax-paid re•oved r1gurea have been regarded as production rigures. 7 Throu1hout this report, the word 'cigars• rerers to large cigars weighing •ore than 3 ~ounds per thousand. Small cigars (weighing less than 3 pounds per thousand) have constituted a negligible proportion or total production. Digitized by Google ,. Table 2.- PERCENTAGE DISTRIBUTION OF CIGARS PRODUCED, BY CLASSES,a IN NEW HAMPSHIRE AND THE UNITED STATES, 1921 AND 1924-35b 0 (Cigars weighing more than 3 pounds per thousand) Calendar 1ear 1921 1924 1925 1926 192? Total "C" "A" "B" "D" "E" New New United United New United New United New United Hew United Hampshire States Hampshire States Hampshire States Hampshire States Hampshire States Hampshire States D.a. 100.O 100.0 100.O 100.O 100.0 100.0 100.0 100.0 100.O 3O.2c 39.3 41.6 44.O 48.4 n.a. .4 .4 .5 .5 n.a. 19.? 23.1 23.4 22.5 2?.ac 20.8 1?.6 14.5 11.5 n.a. ?9.9 ?6.5 ?6.1 ??.O 39.2c 38.O 38.? 39.3 3?.9 D.a, 0 0 0 0 2. ?c 1.8 2.0 2.1 2.1 • 1c .1 .1 •1 .1 n.a. 0 0 0 0 0 Ci) 0 (6" "" f'j" CD a. -:?" 0 0 ~....ro 1928 1929 1930 1931 1932 100.0 100.0 100.O 100.0 100.0 100.O 100.0 100.O 100.0 1OO.O .9 1.4 1.? 39.O 59.6 51.? 54.9 61.1 69.? ?8.? 22.9 20.6 20.1 3.4 .1 1O.O 1933 1934 1935 100.0 100.O 1O0.O 100.O 100.0 100.0 ?0.1 ??.8 81.9 85.6 86.2 88.1 (d) (d) ( d) aClaaa 1 A1 clgara aanuractured to Class •B• clpra ■anuractured to Clase •c• clpre •nuractured to Clase •D• clpre aanuractured to Clase •E• clpre ■anuractured to retall retall retall retall retail at at at at at 6.? 3.3 1. 2 ?6.2 ?8.0 ?8.2 5?.6 40.3 36.2 34.2 30.3 25.5 19.O 0 0 (d) ( d) (d) 2.0 2.0 1.8 1.5 1.1 0 0 0 ( d) 0 .1 .1 .1 (d) ( d) .? 1.2 1.4 29.9 22.2 18.1 12.9 12.O 9.9 (d) ( d) (d) .a 0 0 0 (d) a.a .6 .6 (d) (d) not ■ore than 6 cents each. aore than 6 cents each and not aore than 8 cents each. aore than 8 cents each and not ■ ore than 16 cents each. aore than 16 cent• each and not aore than 20 cents each. aore than 20 cents each. bBaeed on ■Tobacco D1Y1alon,• Anm,ai Report oftlul C01111issioner of Internal Rev•- (U. 8. Treas. Dept., Bur. Int. ReY., 1921-36). Be• also root.Dot• o, p. 9. cfhe fobacco Stvdy (U. 8. Dept. Coa., Natlon&l Recovery Adlllnletratlon, D1Y1alon or ReYlew, ala•o. nport, Kar. 193e), p. 170. 4Leee than one-tenth or 1 percent. n.a.D&t& not &Y&ll&ble. ► !lO ....DIii~ !lO Cll TRENDS WITHIN THE CIGAR INDUSTRY 11 The production record of the Company (as indicated by the New Hampshire columns of table 2) also provides a confirmation of the relationship between mechanization and the shift to a cheap cigar, Prior to 1931, the year of mechanization, class "A" cigars represented less than 2 percent of the Company's production, whereas class "C" cigars accounted for about three-fourths. In the first full year of production by machines, 1932, the production of class "A" cigars was greater than that of class "C" cigars; the respective shares were 60 and 40 percent. The makers of the 11 7-20-4 11 cigar realized, even before the depression, the necessity for offering a cheaper cigar. In addition to the 11 7-20-4 11 , which retailed at 15 cents and upon which the firm's reputation was built, they were producing the "Dexter", which retailed since the boom year of 1924 at 10 cents apiece or two for 15, Other brands, inconsequential in terms of volume, were the "7-20-4 Pony" and the "Little Gold Dust", both made to retail at scents. At the first evidences of serious shrinkage in business in 1927 and 1923, the management was ready to resort to the use of machines. The step, however, was not taken. As a result of friendly conferences on matters relating to shop conditions, an amicable agreement was reached between the officials of the company and of the Cigar Makers Union, Local 192, assisted by the president of the international organization, whereby the present brands bearing the name of R, G, Sullivan "7-20-4" will continue to be hand made • • • • • controversy over the contemplated introduction of machines in the factory has existed for some time. The satisfactory arrangement between employer and employee means that one of Manchester's laq~est and most important industries will continue to function as in the past. Cigar makers are among the highest paid workers in the cornrnuni ty and the weekly payroll of the Sullivan Company, when operating at capacity, totals many thousands of dollars. In view of the fact that many of the large cigar manufacturers are using machines, the decision of the Sullivan Company is most important for this industry. 8 The failure of the Company to mechanize prior to the onset of the depression accounted in large part for the precipitate drop in its production during 1930 as compared with the more moderate decline in national production. That is, since a large part of the cigar industry was already mechanized, it could profitably 8 the Nancheste~ Leade~, Manchester, New Hampsntre, June 7, 1928, Digitized by Google 12 CIGAR MAKERS manufacture a cheap cigar and thereby was in a better position to meet the competition of cigarettes. The "7-20-4" plant, on the other hand, was in no such position, since it still relied on a 15-cent cigar. As a cigar of that price is in the category of luxuries, the demand for it would be more drastically curtailed during a :,)eriod of business recession than would that for a cheap cigar. 9 During the period preceding the mechanization of the Company's plant, the management saw the demand for its 10-cent cigar, the "Dexter", increase and the sales of its 15-cent cigar, the 11 7-20-4 11 , decline. By 1930, about two hundred cigar workers in the factory were employed on "Dexters" and six hundredon"7-20-4's. 1110 The makers of the 11 7-20-4 11 had taken a $3 cut in the wage rate of $21.50 per thousand and were working only 24 hours a week. Though the rate was $18.50 per thousand cigars and the daily production about three hundred cigars per man, the weekly wage of the" 7-20-4 11 worker averaged under $20.00. A "Dexter" mold worker averaged about five hundred cigars a day, but at the rate of $10 per thousand his weekly wage very likely did not exceed that of the "7-20-4 11 worker. The f irmstated that business was so poor that they could lay off fifty to one hundred men and still operate ona 3-day week. It was under these conditions that the management again turned to the cigar-making machines as a solution. The manufacturers of high-priced cigars were finding that the public accepted the machine-made product, which could be retailed at much less though the tobacco content was the same or better. In the latter part of !930 a few machines were introduced into the 11 7-20-4 11 plant for making the "Dexter" cigar. By the early part of 1931, the machines had justified themselves for "Dexter" manufacture, but the "7-20-4's 11 , which had been the mainstay of the Company's business, were lagging behind in sales. The tail was wagging the dog, and again a change was indicated. 9 The tact that the nuctuat1ons in the Company•s production have greater amplitude than those tor the entire Industry ls, in part, due to statistical rel)crting. In a series coml)csed or many reporting tlrms, tnere is a possibility :r rises orrsetting declines and vice versa and thereby moderating the amplitude or tluctuations, since the business fortunes or all rtrms in a .;!ven industry are not perfectly synchronizea. In a series composed or only one !!rm, tnls posslollltY does not exist. 10 Both were tull-s!ze, hand-made cigars, but the •Dexter• had a bunch com!lOSed er Havana scrap, whereas the •7-20-4" was maae w!th Havana whole-lea! bunch. In addition, the molds used ror shaping the •Dexter• decrease the time re~u1red tor making lt. Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY 13 PROPOSED WAGE CUT AND REFUSAL OF HAND WORKERS Before turning to machines for producing the 11 7-20-4 's", in February 1931 the Company made a wage-reduction proposal to the six hundred hand workers with the installation of automatic machinery as the alternative to its rejection. It proposed a rate of $14 per thousand, which represented a cut of $4 .so from the prevailing rate of $18.50. Demoralized by the constant attacks upon hand work and the part-time employment of the last year, the men, nevertheless, were united in refusing the offer. In their special meeting of February 25, 1931, they elected a committee of five to negotiate with the firm, specifying that "if anyone is fired as a result of taking 2art in this controversy, others would go out on strike," It appears plain from the record of the negotiating committee which met with the management that the men pressed to know if their acceptance of the lower rate would keep additional machines out of the factory. It appears equally plain that the two executives who met personally with the union committee replied frankly that they could make no promises that machines would not have to come and , • • • added that they were surprised that they kept on making cigars by hand as long as they did, considering the price at which the machines make them. In the beginning, they were afraid to try the machines, but they find that the public is buying machine made cigars. With their trade falling off continually, the fact that their product is made by hand, does not even influence the public to pay an extra cent for their goods, All the salesmen report that it is a matter of price, The shop should be making 1,500,000 a week and they are shipping only 421,000 and a part of those are "Dexters" that were made at Christmas. All our friends in the tobacco business have advised us to go into machines. To be frank, when we figured everything down to a rock oottom basis, we realized that the machine is the only solution to our problems. We do not feel positive that the price that we propose will meet the situation. Even at the $14 rate, we have no assurance that this figure will not delay the inevitable, 11 Again in summarizing the management's position the same lack of assurance was expressed thus: 11 .M1nutes or Cigar Makers Union, Local 192, Manchester, N. H., or Feb. 27, 1931. Digitized by under date Google CIGAR MAKERS 14 Union spokesman: , • • • Now as we understand it, we will report back to the meeting and state that $14 is your price, that you do not urge the men to take it and that even if they do take it, you have no expectation and are not sure that even at that price it will act as a deterrent to the machine. Management: That is right. 12 That even the acceptance of the wage cut could not forestall the use of machines is evident from the cost figures mentioned by the management at this meeting. • • • So when you ask for a compromise (9n the wage rat~, we say there isn't any possibility of that when you figure that with four girls on machines, the royalty and interest figured in, you have a total cost of $6. 25 per thousand. 13 This is to be contrasted with the proposed cost by hand of $1q per thousand. The large differential in the cost between the two methods of production lends much credence to the statement of one displaced cigar maker that by accepting the cut, "we would have stayed only long enough to have paid for the machinery." The union received the report of the negotiating cormnittee and persisted in its decision to reject the proposed wage cut. On March 7, 1931, the firm was notified of the action of the union and stated that "as everything had been thrashed out, there was nothing more to say. 1114 When, in April, the management was asked if it would discontinue the use of machines provided the workers would accept the $1q bill of price, it had apparently irrevocably decided on mechanization • • • • • They G,he firm] started to make "7-20-4" by machines last week and are satisfied with results. When they learned of the action of the union on the $14 price last February it was then decided to use machines. If the men had accepted the reduction they !}he firm] would have been willing to gamble. They ----12Ibid. 13 Ibid. 1411inutes or Cigar Makers Union, Local 1112, Mancnester, N. H., Mar. 7, 11131. or Digitized by under date Google TRENDS WITHIN THE CIGAR INDUSTRY 15 would have put the· "7-20-4" in the 10-cent class, taken the differential between machine made cigars of their competitors and $14, and tried to put it over, al though they were not sure of success. Their competitor's price is between 75 and 78 dollars per thousand [compared with $95 for the Company's], therefore they must make the cigar cheaper in order to continue. 16 MECHANIZATION AND LAY-OFFS In April the lay-off of the six hundred hand workers started and by January 6, 1932 it was completed. 16 The cigar makers had expected that about a hundred would be retained to supply the market for the hand-made "7-20-~", but only 13 remained to make the original product which st ill retails for 1931, 15 cents. The union record indicates that at best it is only a partial truth to claim that the hand cigar maker himself must take the main responsibility for his displacement bymachines, a displacement which, it has been alleged, had arisen out of his lack of foresight and his naive, arrogant belief in the undiminished efficacy of his skill. 17 Such a claim overlooks the additional facts that some of the workers had come to the Company only after they had been displaced by machines elsewhere, and that the union journal carried news of technological displacement throughout the industry at home and abroad. It appears unjustified to say that the workers faileJ to appreciate the technological trends in the industry, even though a few were reported to have believed that "the machines wouldn't stay", or that "if the old man were living, the machines would not be brought in." But appreciation of technological trends did not necessarily provide a sat is factory solution. The union record also shows the lack of resourcefulness of the hand workers in the face of machine competition. In their lengthy discussions with the firm the most that their strategy could suggest was to press for information on costs, in order to prove that they were being asked 16M1nutes or Cigar Makers Union, Local 192, Manchester, N. H., or Apr. 28, 1931. under date 16 rnrormat1on provided, at the request or the Company, by th~ Treasury Depart111ent, Internal Revenue service, Cigar Manuracturer•s Monthly Returns, 1931 and 1932. 17 Accord1ng to union sources this Judgment has been rostered by the Co111pany to orrset the commun1 ty 111-w111 evoked by the displacement or a skilled and well-paid group or artisans. It could not be deter1111ned to what extent the union 1s Just1r1ed 1n this belie!. Digitized by Google 16 CI GAR MAKERS to take a cut out of proportion to the loss borne by their firm. Once the machines were installed, suggestions for action, which were dropped after much discussion, were reduced to declarations that the lay-offs were a lock-out or to insistence upon a different union label for the machine-made product - an issue on which the manufacturers had wons years earlier. More practical was the suggestion that the union negotiate with the firm for the employment of the hand workers as machine operators. This suggestion, however, was not acceptable to the Company because: • • • • when they considered putting in machines they also considered women to operate them as all their competitors were doing the same. They could not consider the men at this time. 18 According to several cigar workers, the refusal on the part of the management to put men on the machines was conditioned to some extent by its experience with two young men who had just completed their apprenticeship as hand cigar makers. They were allowed to operate the first "Dexter" machines but, since they expressed dissatisfaction with them, no men were given the opportunity to operate the machines thereafter. As the impending lay-offs became a reality, the resulting distress among the workers was reflected at once in the minutes of the union. It was the custom of the union to permit old or sick members or widows of former workers to solicit funds in the factory. One widow reported a collection of $44. When the men were laid off, many solicited similar box collections to raise funds to leave Manchester or to help support themselves. Notices of such requests for collections appeared at nearly every meeting toward the end of the year 1931 and were never refused. If an opening for a cigar maker was reported to the secretary of the union local, he put the names of all unemployed men in a hat and drew a name at random to determine whom to recommend. PRODUCTIVITY AND PRODUCTION COSTS OF MEN AND MACHINES In the course of negotiations with the union, the firm commented that "they were surprised that they kept on making cigars 18 ttinutes ot Cigar Makers Union, Local 192, Mancnester, N. H., under date or Apr. 28 and Aug. 31, 1931. For evidence that tnts was the usual procedure in the industry, seep. 24 & table 8. Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY 17 by hand as long as they did." 19 It is indeed surprising after an inspection of the relative productivity of the hand and machine process. So striking is the difference that the lack of refined measurements is no serious deficiency. The productivity of the machine can be measured with accuracy for 1936. The "Dexter 1120 cigars are made by a two-operator machine, requiring a binder operator and a wrapper operator. The Company liste~ the names of 67 binder operators and 74 wrapper operators, and the Division of Unemployment Compensation of the Bureau of Labor in New Hampshire cooperated by submitting for analysis the year's weekly record of earnings and man-hours for each operator on the above lists. From this the annual earnings for each operator were computed as well as the aggregate of the hours worked throughout the year. Annual earnings divided by annual man-hours yielded earnings per hour. Since each operator in 1936 received $1.25 per thousand cigars, this amount divided into the earnings per hour gives a quotient representing the number of cigars produced in an hour. A frequency distribution of the output per hour of the 74 wrapper-machine operators is presented in table 3. This may be regarded as a distribution of production per machine-hour. The productivity of hand malcers is shown in table 4 forcomparison. These displaced cigar makers who are now operating "buckeye" shops in Manchester were asked to state what they considered their average daily output when working for the Company. The answers of these 26 former employees are here tabulated. It would be only natural for these estimates to have a somewhat upward bias. The vast difference in productivity is evident. Thus, the median output per machine-hour is 459 cigars and the median output per machine operator is .2.29,5 per hour, 21 whereas the 19 fide sup-ra, p. 13. 20The •Dexter• cigar leads the 1 7-20-4• now in production, and, since many or the •7-20-4 1 machines were 1dle, the •Dexter• machines making a scraptiller cigar were considered best tor this analysts. 21 Expressed in terms or man-nours per thousand cigars, this would be 4, 36 hours. In a plantmaklng a short-r111er cigar reta111ng at6 cents, surveyed Dy the U. 8. Bureau or Labor Statistics and the National Research Project, the comparable figure was 3.89 hours. (W, D. Evans, report on productiV1tY or labor 1n the cigar manuracturlng industry, in preparation.) The speed or the machine 1s set wi th1n wide 11mi ts by each team or two operators. Tbe upper 11m1 t ls set by the physical capac1 tY or the machine and the lower l1m1t by what the rtnn conslders an uneconomical use or 1ts machine. In practice, the operators or the Company are given much latitude in determining their own speed. Digitized by Google 18 CIGAR MAKERS Table 3.- DISTRIBUTION BY AVERAGE PRODUCTION PER MACHINE-HOUR OF 74 WRAPPER MACHINE OPERATORS AT THE COMPANY, 1936a Number of "rapper operators Total '74 9 2 0 3 2 6 6 10 13 13 9 2 0 0 Median - Average production of cigars f>er ■achine-hour 403 and under 404-411 412-419 420-42'7 428-435 436-443 444-461 462-46~ 460-46'7 468-4'75 4'76-483 484-491 492-499 500 and ouer 459 aco111puted rrom records or New Hampshire Bureau or Labor, Diviaion or Unemployment Compensation. Table 4.- DISTRIBUTION OF THE ESTIMATED DAILY PRODUCTION OF 26 HAND CIGAR MAKERS WHILE WORKING FOR THE COMPANYa Number of hand oigar makers Total Median Estimated daily production of cigars 26 - 1 2 10 2 200 276 300 325 6 2 3 1 350 400 450 476 - 300 il.rhe esttmateswere rurnlahed by the men and rerer to product ton or the •7-20-4' ct gar. Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY 19 median output per hand worker per day is 300. 22 The machine in 1 hour produces, on the average, 53 percent more cigars than a hand worker did in a da.y, and the average output per machine operator in 1 hour and 18 minutes equals the average daily output of the hand worker. The difference is still striking when the output of the machine operator is compared with the output of the former "Dexter" hand worker. According to union sources, the latter averaged about 500 cigars whereas the machine operator produces 1,836 per man-day of 8 hours - an increase of productivity of 267 percent. If the productivity of the machines could be translated into pecuniary terms, the real advantage over manufacture by hand could be established. Unfortunately, the cost of machine operation per thousand cigars could not be determined for this company. The only figure available is $6.25 quoted by the management in the course of its negotiations with the union over the wage cut. But this was before the firm had had any extensive experience with machine operation and before the current wage rate of the operators had been set. An approxi111ation of this cost may be attempted, however, on the assumption that the cost of operation of its cigar-making machinery, other than the wages of operators, does not differ from that of other large companies manufacturing a 5-cent cigar under the terms of the President's Reemployment Agreement. These cost items were incorporated in an investigation of the cigar-man:.1facturing industry conducted by a firm of New York public accountants, Rossmoore, Robbins and Company. The investigation was sponsored by the group of cigar manufacturers who were interested in having a code adopted by the industry. The most detailed cost information was supplied by the four leading companies producing machine-made 5-cent cigars. The costs are for September 1933. The following costs of machine operation have been adapted from National Recovery Administration file material. 23 From Company ani:I union sources it has been established that each machine operator at the Company is paid $1.25 per thousand. 22 No allowance 1s here made ror any change 1n the size of the cigar and the length or the working day. The !act that both were greater before mechanization than they were arter It 1s, In this case, an orrsettlng consideration. or course, no account 1s taken or any qualitative differences. 23As transcribed by W. D. Evans. Digitized by Google CIGAR MAIERS 20 Added elements of cost chargeable to machine production (excluding wages of operators) Coste per 1,000 Total cigars $3.0409 Wages of machinists and oilersa Powera Machine repairs and repair partsa Depreciation on cigar machines Interest on cigar machines • 3291 .1489 .1895 . 38?0 . 2844 Insurance on cigar machines Machine production overhead (includes overhead applicable to direct machine production, including supervision)a Application of cost of maintaining idle cigar machines to production Loss on defective cigars and on learners Royalties on leased machines .004? . 5815 .1054 .0953 1.0051 8 Total ror factory. It ls Impossible to allocate that proportion or these Items which ls due to use or c!gar-mak!ng lllllch!nes. Since the machine making the s-cent "Dexter" cigar requires two operators, $~.so must be added to the above cost, making a total cost for this stage of product ion of $5 .54. Since the hand worker on the "Dexter" cigar was paid $lo per thousand, there has been a net saving of $4.46 on production costs if the above cost figures apply to the Company. How much of this margin had to be sacrificed in order to enable the cigar to retail at scents instead of two for 15 cents or 10 cents straight cannot be determined in the absence of the prices charged the wholesaler. EXTENT AND NATURE OF THE LABOR DISPLACEMENT AT THE COMPANY In view of the extreme difference in the costs of the two methods, of the limitations to expansion of demand, and of the complete labor turnover at the Company's plant, the displacement of workers was considerable. This displacement of workers is proved by other statistical relationships also, even after full allowance has been made for the crudeness of the statistics. The number of hand workers employed by the Company previous to 1931, when machine installation was completed, cannot be as- Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY 21 certained. However, the biennial reports of the New Hampshire Bureau of Labor contain a directory of manufacturing establishments with the number of males and females employed by each. The annual average number of cigars produced for the same biennial periods has been obtained from the Bureau of Internal Revenue. From Company sources it has been established that there have been no technological changes in any of the other departments of the factory. Consequently a divergence in the rates of change in numbers employed and number of cigars produced may be attributed almost entirely to the technological improvements in the cigar-making branch of the business. These rates are presented in tables. They are striking even for the biennium 1931-32, during which the transition was made to the machine-made product. Compared with the average for 1929-30, production decreased in this 2-year period by less than one-seventh, but employment by more than one-third. 24 Production in the succeeding period, 1933-34, was almost 2 percent above product ion in the base period, 1929-30, but the number employed continued to decline, being only 1t6 percent of the average number employed in 1929-30. Although the decline in Table 5,- AVERAGE ANNUAL NUMBER EMPLOYED AND THE AVERAGE ANNUAL PRODUCTION OF CIGARS AT THE COMPAMY BY BIENNIAL PERIODS, 1929-36 Number Biennium 1929-30 1931-32 1933-34 1935-36 Annual average employed a 1,068 664 489 522 Percent Annual average of cigars producedb (thousands) 46,665c 40,295 4?,45? 5?, 131 Annual average employed 100.0 62.2 45.8 48.9 Annual average of cigars produced 100.0 86.3 101.? 122. 4 &Adapted trom the biennial reports or the New Hampshire Bureau.or Labor. b0bta1ned from the Bureau or Internal Revenue records. cProduct1on tor New Hampshire rrom •Tobacco Div1sion,• Annlj(ll Nepc,,,-t of the C01111bsionef' of Intenia l Revenue (U. S. Treas. De pt., Bur. Int. Rev., 1930-31). i:: 4 The production figures tor 1929-30 are those tor the State or New Hampsh1re. They are probat>ly trom 3 to 5 percent in excess or the '.:ompany's production for this period. However, since no adJustment was 111ade, a conservative bias was there Dy imparted to the results. Digitized by Google 22 CIGAR MAKERS employment was arrested in 1935-36, it was still less than so percent of the 1929-30 average, and the disparity in relative rates of change between employment and production had become g_reater, production being more than 20 percent above the 192930 level. 26 The rate at which the hand makers were dismissed is indicated in table 6. Within a year their number had been reduced from 626 to 13. The distribution by sex of all workers at the Company from 1921-22 to 1935-36 is shown in table 7 and figure~When production was by hand, the number of males greatly exceeded that of fe~ales. In 1929-30, for example, there were 3.2 males for each female. With the installation of machinery, however, the proportion was reversed, and in 1935-36 there were nearly two female workers !or each male worker. Table 6,- NUMBER OF HAND CIGAR IL\KERS EIIPLOYJ!:D AT THE COMPANY, 1931-32 6 Month Average number of hand cigar makers employed daily in 1931 I 1932 January February March April 626 620 620 555 13 13 13 May June July August 493 539 515 515 13 13 13 13 September October November December 417 323 228 196 13 13 13 13 3b 6 Treasury Department, Internal Revenue Service, Cigar Manuracturer•s Monthly Returns - coples or returns suppl1ed by the Bureau at suggestion or the Company. bunt11 January 6, 195 hand ctgar makers were employed. The number dropped precipitately to 3 on January 11, The 3 1s thererore not the actual arlthmetlc average or the number employed durlng January but the representatlve one. 25 The increase 1n output between 11l33-34 and 1935-36 ls due to a decrease in part-time operatlon rather than to any improvement in the machinery. Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY 23 Table 7 . - DISTRIBUTION BY SEX OF THE COMPANY EMPLOYEES 1921-36a (Annual average for biennium) T otal Male 19 21-22 1923- 24 1925- 26 192?-28 1,183 1, 282 1, 239 1,156 90 3 1, 004 981 882 280 2?8 258 2?4 19 29- 30 19 31-32 19 33-34 19 35-36 1, 068 664 489 522 813 35 1 1 62 1?6 255 31 3 327 34 6 Biennium Female aAdapted fr om the b1enn1al reports or the New Hampshire Bureau or Labor. FIGURE U.- NUMBER ANC Sf.X OF EMPLOYEES OF TH E COM PAN Y , 192 1-36 1921-22 1925-26 1927-28 1929-30 1931-32 1933-34 1935-36 j;f;:," 'j FEMA L E St t toblo 7 for d at a . WPA - Na t i onal M AL E Res ea rc h Pro j e ct LS -9 Digitized by Google 24 CIGAR MAKERS The displacement may be expressed in still another way. The hand workers employed in January 1931 had been replaced by 1936 by 13 hand workers on part time, 20.2 machine operators, and .20 machinists. This reduced number produced more than the larger force of hand workers. 6.26 The refusal to retrain hand workers for machine operation appears to have been general throughout the industry. Indeed, so thoroughgoing was the discrimination against them that in 1933, according to a special survey of the industry made by the Census of Nanufactures for the National Recovery Administration, only .23 male hand workers were employed out of a total of 1.2 ,001 machine piece-workers. 26 Moreover, women hand workers were in almost equal disfavor. Not only were men being displaced in the modern organization of the industry but the older women were losing ground to the young girle. Wherever machine equipment had been installed superintendents expressed a preference for young girls in place of the older women who were skilled hand makers. 27 Little other than their age is known about the young women employed to operate the machines in Manchester. This item of information, supplied by the Bureau of Unemployment Compensation of New Hampshire, is classified in table 8 and co!Tlpared with the age distribution of the hand workers. !See also figures.I The comparison is for 1931, the year in which the displacement occurred. The tabulation discloses that a group with a median age of .26 • .2 replaced an industrially-aged group with a median age of q.7. Twenty-one of the 3.21 hand workers in the salTlple studied, or about 7 percent, were 65 years of age or over, and about onefourth were at least 55 years old. 28 Whether the young girls had had any previous industrial experience could not be ascertained. Previous experience with cigar-making machinery was 26 The Tobacco Study (U. s. Dept. Corn., National Recovery Ad1111n1atrat1on, D1v1s1on or Review, mlmeo. report, Mar. 19~6), pp. 159-60. 27 carol!ne Manning and Harriet A. Byrne, TIie Effects on lro11en of Cllangi.ng Conditions fo tile Ci.gar and Cigarette Industries (U.S. Dept. Labor, Wornen•s Bur., Bull. or the women's Bur., No. 100, 1'132), p. 37. 28 That the hand worker generally was an older worker le conrirrned by Manning and Byrne, of>. cit., p. 41. or the 847 women hand workers 1nterv 1ewed, • . • . • about two-r1rthe were lees than 30, and about three-tenths 1n each case were 30 and under 40 and 40 years or age or more.• Add1t1onal evidence to the same errect le provided by the d1str1but1on by age or 1,ij08 hand cigar rollers or class 'A' cigars 1n York County, Pennsylvania District, as or August 1934. Their modal age was between 46 and 55. See TIie fobacco Study, p. 154. Digitized by Google TRENDS WITHIN THE CIGAR INDUSTRY 25 FIGURE 5.- AGE OF CI GAR MA CHI NE OPE RATOR S ANO HAND CIGAR MAKERS AS of Jul y 193 1 MACHINE OPERATORS PERCENT OF TOTAL RC NT OF TOTAL 35 35 30 30 MEDIAN AGE : 26 25 25 20 20 15 15 IQ 10 5 5 0 0 16- 19 20-24 25 - 34 35- 44 AGE 45 - 54 55 - 64 GROUPS HAND CIGAR MAKERS PERCENT OF TOTAL PERCENT OF TOTAL 35 35 301---- -- - -- - - -- ----- - - - -- - - - -- -- ---1 30 MEDIAN AGE : 4 7 20 1-- - -- - - -- - - - -1 25 - 15 1---- - - -- -- f---- 101---- - - -- - - -115 - - 1 - - -- ---i lO 5 >--- - - - -- - 5 o _ _ _ __ 0 20-24 25-34 AGE Soo tob lo 8 for do t &. 35-44 45 - 54 55-64 65 AND OVER GROUPS WPA - Nat Ion a I Rosurch Digitized by Pro jact LS-10 Google CIGAR MAIERS 26 not a prerequisite for employment, since a forelady instructed the newcomers in the use of the machine. 29 Table 8.- COMPARISON OF THE AGE DISTRIBUTION OF 202 MACHINE OPERATORS WITH THE AGE DISTRIBUTION OF 328 HAND. CIGAR UKERSa (As of July 1, 1931} Aise on July 1, 1931 b Aise unknown Machine operators I female) Hand ciisar makers I male) Number Percent Number Percent 18 - 7 - 184 100.0 321 100.0 years years years years 34 49 59 31 18.5 26.6 32,1 16.8 0 53 77 0 2,2 16.5 24.0 45-54 years 55-64 years 65 and over 9 2 0 4.9 1.1 100 63 21 31.2 19,6 6.5 Total reporting 16-19 20-24 25-34 25-44 Median (age in years) 0 26.2 7 47.0 &Data on machine operators from records or New Hampshire Bureau or labor. Division or Unemployment Compensation, and data on hand makers rrom records 9r Cigar Makers Union, Local 192, Manchester, N. H. bAges ascertained were calculated back to July 1, Hi131. Dates or entering upon or or leaving employment were scattered; the entire group was not engaged at the same time. 211 It appears that local girls were selected and the ramtly names or some are Identical with those or the displaced workers. It has been claimed the Company attempted to mitigate the hardships or displacement by employing the daughters or the cigar makers as operators. This Is denied by union sources which claim that whate,rer representation the cigar makers' ramllles nave among the machine operators does not result from the systematic pursuance or a Company policy but Is rather the result or plant politics. Digitized by Google SECTION I I I PERSONAL CHARACTERISTICS OF THE HAND WORKERS NATIVITY It has been stated that the hand worker was industrially-aged at the time of displacement. That he was typically foreign-born is indicated in table 9. Table 9. - CLASS I FI CATION BY COUNTRY OR STATE OF BIRTH OF 1'5() BAND CIGAR MilKR8 IN IU.NCIIBSTER, NEW IIAIIPSBIREa Number of cigar makers Country or State of birth Total born in foreign countries 110 Belgium Canada Holland 81 22 15 Germany France Scotland 3 3 2 Russia England Switzerland 2 1 1 40 Total born in United States New Hampshire Massachusetts Pennsylvania 28 8 2 Illinois Maryland New York 1 1 1 Rhode Island Vermont Washington 1 1 1 •r1eld survey data. The cigar makers compose an ethnic group somewhat apart from the textile and shoe workers of Manchester who are French-Canadian, Irish, Polish, and Greek. Over one-half of the cigar 27 Digitized by Google CI GAR MAKERS 28 makers are of Germanic origin, having come from Belgium, Holland, Switzerland, and Germany. The Netherlands have been prominent in tobacco trading since the discovery of the weed, and Dutch and Belgian cigar makers migrated to Manchester in considerable numbers. French-Canadian cigar makers form the other large group, having come down from the eastern cities of Canada. The younger men of native birth are generally the cigar makers' sons who were inducted into the trade by their fathers. The period of apprenticeship is 3 years for hand workers and .2 for mold workers, and union regulation in 1931 limited the number of apprentices to s at a time ina factory employing soo cigar makers. These limitations have nodoubt operated to restrict the occupation to certain families. This is confirmed by the recurrence of certain surnames. YEARS AT CIGAR MAKING An idea of the degree of their occupational habituation may be had from a tabulation of the years spent at to 1931. Thus, so percent of the workers had the single trade of making cigars by hand for 30 and 7.2 percent had been so engaged for at least cigar making up been en~aged at years and more, .20 years. Table 10.- DISTRIBUTION OF 150 CIGAR MAKERS AT THE COMPANY BY TIME SPENT AT MAKING CIGARS BY HANOa As of 1931 Time spent at making cigars by hand Total Number of cases Percent of total 150 100.0 4 6 mo. to 4 yrs., 5 mo. 4 yrs., e mo. to 9 yrs., 5 mo. 9 yrs., e mo. to 14 yrs., 5 mo. 14 yrs., e mo. to 19 yrs., 5 mo. 14 16 2.7 5.3 9.3 10.7 yrs., e mo. to 24 yrs., 5 mo. yrs., e mo. to 29 yrs., 5 mo. yrs., 6 mo. to 34 yrs., 5 mo. yrs., 6 mo. and over 17 17 21 53 11.3 11.3 14.0 35.4 19 24 29 34 8 aF1eld survey data. The continuity of employment at their trade can be indicated in still another way. The years spent at cigar making by an inDigitized by Google CHARACTERISTICS OF HAND WORKERS 29 dividual may be expressed as a percentage of the total number of years that he has been in the labor market. Table 11 represents such a tabulation for the year 1931. Table 11.- DISTRIBUTION OF 150 CIGAR MAKERS AT THE COMPANY BY YEARS AT MAK.ING CIGARS BY HAND AS A PERCENT OF YEARS IN THE LABOR MARKETa As of 1931 Years at making cigars by hand as a percent of years in the labor market Total Cigar m?-kers Number Percent 150 100.0 4 2,7 10.7 Under 50 percent 50-74 75-79 80-64 16 9 8 85-89 90-94 95-99 100 22 21 25 45 e.o 5,3 14, 6 14,0 16,7 30.0 aFteld survey data. In this sample, 30 percent had been engaged at cigar making for all their working years; 60 percent worked at the trade for at least 90 percent of all their years in the labor market, and three-fourths had spent a minimum of 85 percent of their working time at cigar making. While the degree of occupational habituation of this sample seems extreme, it appears not uncommon for the hand cigar maker to have spent many years at his trade. The Women's Bureau, for example, interviewed 1,086 women who had been employed in hand cigar factories. Of this number, one-quarter had been employed in the industry less thans years, slightly more than one-half had been so engaged a minimum of 10 years, and almost one-fifth had spent 20 or more years in the industry. 1 1carol1ne Kann1ngandHarr1et A. B;yrne, fhe lffech on lfo•enofChanging Conditions in the Ciga,,. and Cigantte Indu.stdes (U. S. Dept. labor, Women's Bur., Bull. or the Women's Bur., No. 100, 11132), p. 49. Digitized by Google CIGAR MAKERS 30 YEARS IN MANCHESTER Community ties were nearly as strong as occupational ties, as may be seen from a distribution of the sample of 150 cigar makers by years of residence in the community. Twenty-one, or 1q percent of the total, reported residence in Manchester since birth, while an additional 85 persons, or56.7 percent, had resided there at the time of enumeration for at least 20 years. As many as 85 percent claimed Manchester residence for at least 15 years. Yet in their younger years many of them must have been quite mobile. This is evidenced not only by the fact that a large percentage of the workers came from foreign countries in pursuit of employment in the United States, but also by the fact that a substantial fraction of the sample was first initiated into the union by some local other than the Manchester one. How many locational changes were made before coming to Manchester is not known. A list of the locals of first affiliation is given in table 12. Table 12.- THREE HUNDRED AND TWENTY-EIGHT HAND CIGAR MAKERS EMPLOYED BY THE COllPANY, CLASSIFIED BY THE CIGAR TRADE UNION LOCAL OF FIRST AFFILIATIONa Location of local of first affiliation Number of persons Total 328 97 Manchester Rest of New Hampshire Boston Rest of Massachusetts Vermont, Maine, Rhode Island, and Connecticut 6 96 9 10 New York, New Jersey, and Pennsylvania Southern States North Central and Mountain States Canada Unknown 41 9 10 33 17 aFrom records or Cigar Halters Union, Local 192, Manchester, N. H. The number for Manchester, 97, undoubtedly is largest because men had come to the Company from shops which were not unionized or froll' foreign countries and therefore joined the union for the first time in Manchester. The next largest group, 96, gave Digitized by Google CHARACTERISTICS OF HAND WORKERS 31 Boston as their local of first affiliation. This number includes many Belgians and Hollanders who left Boston because of the aforementioned advantages enjoyed at the Company's factory. Only 19 of 311 known cases came from west of the Atlantic Seaboard States; only 5 of them were from the far West. YEARS WITH THE COMP.AMY The men were not asked how long they had worked for the Company, and the detailed occupational history begins onlywith 1926. The characteristic tenure of this group may be inferred, however. The 11 7-.20-11- 11 factory was virtually the only one in the Manchester area. Hence, when a schedule shows fewer years in Manchester than years at cigar making, the former figure may be taken to represent theyears of employment at the Company. Likewise, when years in Manchester exceed the years at cigar making, the latter figure may be taken to represent the years of employment at 11 7-.20-11-. 112 A distribution of the cigar makers by the length of their service with the Company at the time of the lay-off follows. This discloses that 31 percent had been employed for more than 20 years, more than so percent for at least 15 years, and more than 75 percent for a minimum of 10 years. Table 13,- DISTRIBUTION OF 150 HAND CIGAR MAKERS BY LENGTH OF SERVICE WITH THE COMPANY, 1931a Length of service with the Compan,y Total Under 5 yrs., 5 mo. 5 yrs., e mo. to 10 yrs., 5 mo. 10 yrs., e mo. to 15 yrs., 5 mo. 15 yrs., e mo. to 20 yrs., 5 mo. 20 yrs., e mo. and over Number of cases Percent of total 150 100.0 e 4,0 29 19.3 34 22,7 35 23.3 46 30.7 •r1eld survey data. 2 10 those cases where the 1nd1V1dual e1ther was born 1n Manchester or took up res1dence there before enter1ng the labor market, years or residence 1n Kancheeter were computed rro■ the year or enter1ng the labor market. Digitized by Google CI GAR MAKERS 32 EMPLOYMENT PATTERN AT THE COMPANY BEFORE THE LAY-OFF Association with one company over a considerable number of years was not the only item of security enjoyed by these artisans. The actual employment provided was steady. Except during the dull winter season from January to April, full-time work was the characteristic employment status. At least, this may be implied from the data available for the s-year period, 19.26 to 1930. L. C. Durotto WPA - Natlonal Rosoarch Project FIGURE 6.- PREPARING THE BINDER FOR A HANO-MADE CIGAR Note pile of binder leaf at left and, in front of the worker, the mold containing bound bunches ready for molding. This man is now a "buckeye•. whose factory is the cellar of his home. Thus, out of 149 3 cases 144 reported no employer shifts between 1926 and 1930, and 5 cases reported one to two employer shifts. Equally indicative of stability is the lack of occupational shifts. No occupational changes were recorded for 14.2 workers, and only one to two shifts were reported for 7. That these shifts represent mostly advancement from jobs of lesser skill in the cigar industry is suggested by the fact that only one 3 one case out or the 160 was reported ullknoWD w1th respect to the items here enumerated. Digitized by Google CHARACTERISTICS OF HAND WORKERS 33 worker in the sample changed industries (from textiles to cigar making) in this 5-year period, and this change occurred in the first year of the period. It is also of significance that in this period none attempted to operate his own cigar shop or engage in any enterprise that would involve self-employment. In view of this evidence of stability, it is not surprising that unemployment was all but nonexistent. Only 8 of the 150 reported a period of 1 month or more duration of unemployment seeking work, None of these was unemployed for more than a year and only one was unemployed for more than 6 man t hs. But even these figures exaggerate the extent of unemployment, for in one case the unemployment occurred before the worker's connection with the Company, and in s cases the unemployment period was placed in 1930 after final separation from it. 4 Hence, according to our records, in only two cases was tenure with the Company interrupted by unemployment periods of a month or more in which the cigar worker was seeking work. Unemployed but not seeking • work was recorded for only five of the cigar makers, and the period of unemployment never exceeded 6 months. In 1930, however, this economic security was shaken by the extension of the part-time employment of the dull winter season to the remaining months of the year. As subsequent events proved, this was a mere foreshadowing of the change in status. To summarize, at the time of his displacement by machines the typical cigar maker was elderly and, in terms of industry's requirements, industrially-aged. He had learned cigar making early and had followed th is trade almost to the exclusion of any other. His long tenure with the Company enabled him to grow roots which went deep into the community, and the regular employment that he enjoyed gave him little opportunity to learn the art of job hunting. Considering these personal handicaps, what were his avenues of adjustment? 4 Qutte probably tnese rive cases or unemployment result rrom raultY memory. Kacntnes were not introduced as early in lij30 as toe remarks or tne persons 1ntervtewed 1nd1cate. Digitized by Google SECTION IV DIFFICULTIES OF REEMPLOYMENT IN INDUSTRY AFTER THE LAY-OFF SPECU.L OBSTACLES PRESENTED BY THE CIGAR INDUSTRY AND THE MANCHESTER AREA Possibly if the times had be~n favorable, the limitations of training would have been less severe. But the widespread depression at the time of the lay-off militated against any easy adjustment. Workers were being laid off generally throughout the country. Moreover, the demand for cigars had declined to such an extent that, while production in other manufacturing industries from 1920 onward was increasing, cigar product ion had dropped 20 percent by 1929, A special survey of employment conditions in the cigar industry in 1933 was made by the Bureau of the Census at the request of the "National Recovery Administration. The statistics obtained showed that "weekly wages in the cigar industry throughout the period Q921-193U were far below those paid in the other industries." 1 Sweatshop conditions already existed among hand workers employed on the cheap "two-for-five" cigars, notably in Pennsylvania and Florida, where nearly half of the total output of cigars is produced. When an attempt was made toestablish a code of hours and wages under the National Recovery Administration, the state of the industry was chaotic. The code provided for a qo-hour week and a minimum wage of 30 cents an hour in the north for hand workers on the cheap cigars, and allowed a lower rate for socalled slow workers. In York County, Pennsylvania, however, an exemption to these rates was granted to avoid closing of factories. In a memorandum of the Industrial Advisory Board of the National Recovery Administration of October 19, 193q, it was stated that: The average wage paid cigar rollers Q.n York County districil is $9.00 a week, minimum wage in the Code is $10. 80 [per week]. Manufacturers are making no profit and, if a higher wage has to be paid, they cannot stay in business and make 2 for 5 cent cigars • • • • • If 1the tobacco Study (U. s. Dept. Com., National Recovery Administration, 01v1s1on or Review, mlmeo. report, Mar. 1936), p. 169. 34 Digitized by Google DIFFICULTIES OF REEMPLOYMENT 35 the Code is enforced, over 8,000 will be thrown out of work; if it is not enforced it will have a bad effect on the wages and hours provisions of the Code, 2 This was the state of a craft whose members had once boasted of making their $60 per week. With a future so dark for employment at their own trade, where else could the displaced workers turn? The larger number were too old to acquire a new skill, and the generally depressed conditions of 193.2 gave no encouragement to them to do so. Manchester had been settled by Amoskeag Mill workers and the wellbeing of the city depended upon the mills. The Amoskeag Company had employed more than fifteen thousand persons in its heyday in the pre-war and war years, but its business had declined steadily, and by 1931 was severely affected by the depression. It closed in 1935, Although in 1931 the company employed on the average about seven thousand operatives, a portion of them were extra hands who were taken on and laid off at brief intervals as orders were received and completed, Depressed wages and increased speed of production were additional factors making the workers' position unenviable. The great majority of the employees, though classed as semiskilled, were performing machine operations which could be mastered in a few hours I time. Although preference was ordinarily given to former employees, the cigar makers had some chance at Amoskeag jobs, unstable in character as these were. The other large industry in .Manchester is shoe manufacturing, employing q,800 persons in 1935, It had experienced many vicissitudes during recent years, and by 1931 the companies which remained in the city had established a labor policy of open shop. Only young persons, however, were employed as beginners. Industrial workers in this city, never a highly paid group, were suffering in 1931-3.2 from loss of work incident to the depressed world markets. Retail trade and the personal service industries in this city of 77,ooo quickly reflected the state of the workers I pocketbooks. Construe t ion work was practically nonexistan tin the area, and many skilled mechanics could get no work. Agriculture, which many unemployed craftsmen attempted to pursue during the depression, did not favor the novice here; for the soil was stony, and even poultry raising, the most generally pursued form of the agricultural industry in this section, re2 Ibid., p. 172. Digitized by Google CIGAR MAIERS 36 quired a considerable capital outlay. Finally, the odd-job field of the untrained laborer was largely closed to men who had been accustomed to a sedentary occupation which made no demands upon physical strength. UNEMPI.DYIIENT BETWEEN LAY-OFF .&ND NEXT JOB The findings of this survey indicate moreover that this picture of employment opportunities for the displaced men has not been too darkly painted. That the difficulties manifested themselves at the outset is indicated by the distribution of the interval of unemployment between leaving the Company and obtaining the next job in private industry, including self-employment ( tab le 14 l • Si nee 13 of those of the random sample with whom personal contact was established withdrew from the labor market at the time of the lay-off and since 9 of the random sample were retained as hand makers at the 11 7-20-4" plant, the sample in this connection covers 116cases. About one-eighth of this total, 15, Table 14,- DISTIUBllTION OF 116 CIGAR IIADRS BY MONTHS OF UNBIIPI.DYIIENT BETWEEN LAY-OFF P'ROII THE COIIP.l!IY J.ND NEXT Joe• (Including self-employment) Interval in months'b Number of persons Percent of total 116 100.0 0 1-2 3-5 &-8 9-11 15 5 B 4 2 12,9 4,3 6.9 3,4 1,7 12-23 24-35 36-47 48-59 60-67 21 19 18. 1 16,4 9,5 7.8 19.0 Total 11 9 22c •rteld su"ey data. •Job" excludes gOYerllll8Dt ••rgency work, but not peraanent gover1111ent poeltlons. 'bzxcludes periOds or •not seeking work.• cor these, 1G37. iG had no Job 'between the lay-off and the interview in February (See p. 48.) Digitized by Google DIFFICULTIES OF REEMPLOYMENT 37 found work again without experiencing any unemployment. 3 Th is included 10 who had never been unemployed since the lay-off. Within a year 29 percent of the 116 workers had secured employment and within 2 years almost half were back in private industry for the first time since the lay-off. This about coincides with the trough of the great depression. In the third year after the layoff, one of general revival, an additional 16 percent obtained employment. But 2 more years had to elapse before another 17 percent left the ranks of the unemployed for the first time. Finally, when business had attained a large measure of recovery, 22, or almost one-fifth of the sample, had been unemployed at least s years. Three of these found some work, but the other 19 have been continuously unemployed since the lay-off. TOTAL UNEMPWYMENT Equally revealing of the difficulties of reabsorption into economic life is the distribution by the total months of "unemployment seeking work" experienced any time between displacement and the date of our census, a maximum interval of 6•1 months I table 15). As noted above, the sample is reduced to 116 cases, Of this Table 15,- DISTRIBUTION OF 116 CIGAR MAKERS ACCORDING TO THEIR TOTAL UNEMPWYMENT SINCE LAY-OFFa ( As of February 1937) Duration of unemployment in monthsb Number of persons Percent of total 118 100.0 0 1-2 3-5 8-6 9-11 10 a.8 3.4 8.0 12-23 24-35 38-47 48-59 80-87 12 18 12 20 32 Total 4 6 0 0 0 0 10.4 15.5 10.4 17.2 27.6 aFleld survey data. bExcludes periods or •not seeklng work.• 3 s1nce the enumerators were Instructed to disregard employment or unemployment or less than a month•s duration, it would be more accurate to say that 16 round employment wl thin a month arter the lay-oU. Two or these were perrormlng less skilled Jobs at the •7-20-4 1 plant. Digitized by Google 38 CIGAR MAKERS number 1o, or 9 percent, experienced no unemployment, having been continuously employed either by others or for themselves. But 32, or 28 percent, had been unemployed for at least s years, and 19 of this number had had no employment since leaving theCompany, 4 Of the 32, 20 were agedss or over. Slightly more than so percent had been unemployed a minimum of 3 years, while only 19 percent hadbeenunemployed not inexcessof8 months, includingthosewith no unemployment. As for the remainder, 15.5 percent had been unemployed from24 to35 months and 10.4 percent from 12 to23 months. EMPLOYMENT STATUS AT TIIIE OF INTERVIEW Even at the time of our interview - about 511 years after the lay-off - the readjustments were tar from satisfactory. Out of 307 cigar makers (excluding the 12 "buckeye" proprietors who were known to be employed at the time of sampling and the 9 retained on hand work at the "7-20-4 11 plant l, 129, or 42 percent, were either working for others or were self-employed at the time of the interview; 23 .4 percent were unemployed seeking work I this includes those doing governlT'ent emergency work) and 7.5 percent were no longer seeking work. The employment status of 48, or 15.6 percent, was unknown. Of this number 45 were no longer living in Manchester. In all probability many of these were unemployed, for when a man finds work the news spreads rapidly among a displaced group and is quickly passed along, whereas relief status or unemployment is not so readily reported. Almost 10 percent had died by February 1937, additional evidence of the high age level of the group, and for 6 cigar :nakers, or about 2.0 percent, no information whatever was obtained. Excluding the last 3 groups (employment status unknown, dead, and no information I, the distribution of the remainder of the sample by employment status is shown in table 16. (See also figure 7. I Some 5 years after displacement 58 percent were employed, 32 percent were unemployed but looking for work, and 1~ percent had withdrawn from the labor market. As subsequent analysis will show, the extent of employment indicated here gives a more favorable impression than is warranted. 4 Arter several years or seeKlng worK 3 additional persons wltndrew rrom the labor market. Digitized by Google DIFFICULTIES OF REEMPLOYMENT 39 Tab le 16.- EMPLOYMENT STATUS AND AGE DISTRIBUTION OF IIAKERS LAID OFF BY THE COMPANY IN 1931a 224 CIGAR (As of February 1937) T otal Dist ributi on by a,le ,l r oups (numbers) NumPer ber Un65 and cent of known 25 - 34 3 5-44 45-54 55-64 over of pert o t al sons Status Total Employed by others Self-empl oyed Unemployed seeking work Unemployed not seeking work 22 4 100.0 2 26 39 64 61 32 83 46 37 . 1 20 .5 0 1 18 2 21 5 26 17 11 18 7 3 72 32.1 1 6 10 19 27 9 23 10.3 0 0 3 2 5 13 aEmployment status rrom fleld survey data and age data rrom records or Clgar Makers Unlon, Loca l 192, Manchester, N. H. FIGURE 7.- EMPLOYMENT STATUS BY AGE GRO UPS FIVE YEARS AF TER THE LAY-OFF PERCENT Of TOTAL IN EACH AGE GROUP 100 100 90 90 80 70 t -- - \ - - - - 1- ---1 60 50 40 30 20 10 0 25-34 35-44 45 -5 4 AGE - EMPLOYED BY 0Tf-£RS SELF" - EMPLOYED 8a11d on data In tab lo 16. 55- 64 65 AND OVER GROUPS CJ CJ UNEMPLOYED SEEKING WORK UNEMPLOYED NOT SEEK ING WORK WPA - National Rosoar c h Pro j ect LS-11 Digitized by Google 40 CIGAR MAKERS RELATION OF AGE TO Eli!PWYIIBNT STATUS AT TlM.E OF INTERVIEW That age had some re lat ions hip to stat us is borne out by table 16. The chances of being employed by others were greater for those between the ages of 25 and 44 than for those aged 45 to 54 and 55 and over. The group 45 to 54 has a significantly larger proportion of its workers employed than did the older group. These relationshi;_Js we re consistently maintained in the other categories, Thus, as the older workers experienced greater difficulty in finding an employer, they resorted to operation of "buckeye" shops. This is evidenced by the higher percentage who were self-employed in the age groups from 45 to 64 than in tlie younger age groups. The fate of the unemployed seeking work was shared in about equal proportion by all age groups except those aged 55 to 64. These experienced the greatest difficulty in finding employment, although they were not yet sufficiently incapacitated by old age or sufficiently well off to withdraw fro:n the labor market. They are in sharp contras t to those aged 65 and over, 40 percent of whom had withdrawn from the labor market.6 THE ROLE OF MlGllATlON Even the precarious livelihood earneJ by this group was attained in :nany cases only at the expense of leaving their homes. The extent of the geographical dispersion at the time of the canvass is presented 1n table 17. It understates the amount of mobility, since some of those resident infunchester in February 1937 had moved about during the 5-year period since the lay-off. A few, for example, returned to Europe, tried to find work, and later came back to Manchester. likewise, among those known to be dead, some died after returning to their former homes in foreign countries and some died in other parts of the United States. Out of the 307 comprising the sample about .!9 percent, or 90, had left Manchester, 7 of who,,, were in unknown localities. More than 5 Tnls relationship oetween age and the d1rr1cultles or securing employment Is similar to that r ound In another area and rcr a lar,;er sample. For eIaiuple, accordln.; tc a former cigar plant superintendent In tile Belt Area (the valley between Ailentown and Norristown, Pennsylvania), • • . • • There probaoly were a thousand hand cl.;ar mall.era here 10 years ago, but oare1y a hundred are sc employed now . . • • • It was hardest ror those over 30, and the older they were the harder It was. The great dlrtlcu1ty was that rew or tne cigar worKers were under 35 or 40 when the slump came, slnce no apprentices had oeen tra1ned In the Industry tor years.• Caroi lne Manning and Harriet A. Byrne, The iffects on l>'osen of Changing Conditions in the Cigar and Cigarette Ind=tries (U. S. Dept. Laoor, women•s Bur., Bull. or Women•a Bur., No. 100, lll32J, p. 17. G Digitized by 008 [ e DIFFICULTIES OF REEMPLOYMENT 41 t hr ee - fifths of the know n t otal r e mained in the New England r eg i on with concent r ations in Massachusetts and . Connecticut . Twelve were reported to be in Europe and 8 in Canada. The geographical dispersion of 59 former cigar workers not included in our sample confirms the regional distribution of the sample migrants, according to info'nnation from the tax assessor' s files. 6 Table 17 .- GEOGRAPHICAL DISPERSION OF 149 CIGAR WORKERS WHO LEFT MANCHESTER AFTER LAY-OFFa Present location To tal Number of cigar workers who left Manchester Out of the Oth ers included Total total included in tax assessor' s in the sample list of migrant s of 307 cases after 1930° 149 90 59 Hillsboro Coun ty Rest o f New Hampshire Massachusetts Connecticut 10 6 42 26 5 5 5 22 18 Rest of New England Middle Atlantic ( Pennsylvania New Jersey New York ) Rest of Unit ed St ates Canada 7 3 4 13 9 5 8 5 4 9 8 1 l 1 20 B Holland Belgium Germany Other 12 2 0 0 10 2 0 1 2 0 0 Unknown 12 7 5 aField survey data. bro rac111tate the col lecti on o r the annual poll tax, the orr1ce or the tax assess or maintains a card 1ndex or each resident aged 21 year s or over. In the course or the annua l canvass, the cards or th ose "'h o have moved rr om Hancbester are placed 1n the 1nact1ve r11e with a notati on o r the community or 11111111grat1on, tr known. It 1s rr om tb1s r11e or 1nact1ve cases tnat the above tabulation was made. 6 1t ls interesting to note that only one o r the band workers In e ither SaJl!ple 1s reported t o have gone to Pennsylv ania, where hand methods or manufacture are s till extensively employed. (See tabl e 23, ) Digitized by Google CIGAR MAKERS 42 The factors causing immobilitywereascertained from 111 cigar workers who limited their search for employment to Manchester. The largest number, or 45, found jobs of some kind at home before the matter became so urgent that they were willing to leave the city. Twenty reported family or community ties and 5 had property which kept them in the city. Nineteen either were aged or suffered from infirmities. In 22 cases the reasons were a composite of considerations which seemed to group themselves around the belief that the odds for security were greater at home than elsewhere. The continually decreasing demand for hand-made cigars was a general consideration, and the discouraging reports of men who went out and sought employment where hand workers were still used was a particular consideration. A more specific consideration was the responsibility for support of families, who would at least be fed as citizens of Manchester but would have no claim on other communities if efforts to find work or to live on work obtained were unsuccessful. The age selection among the migrating cigar makers was contrary to that usually encountered among migrants. That is, a relatively larger number among the aged groups, 55 and over, than among the younger groups left Manchester. Since the employment status of half of the migrants is unknown, this is difficult to explain. Table l~.- DISTRIBUTION BY AGE OF 90 HAND CIGAR MAKERS WHO EMIGRATED FROM MANCHESTER, RELATED TO AGE DISTRIBUTION IN ENTIRE SA.111.PLE, 1Y31-36a Age as of July 1, 1931 Age groups Number of migrants Total 20-24 25-34 35-44 45-54 55-64 65 and over Unknown Numoer in total sample Migrants as percent of total in each age group 90 307 - 0 7 53 0 7.6 22.2 28.9 4 16 26 72 26 57 21 7 14 4 90 45.6 66.7 - aAge data rrom records or Cigar Makers Union, Local 192, Manchester, N. H., and mlgratlon data rrom tleld survey data. -No meanlngtul r1gure. Digitized by Google DIFFICULTIES OF REEMPLOYMENT 43 CHARACTER OF JOBS AFI'ER THE LAY-OFF An examination of the type of jobs held and of the duration of their current status discloses that even those who got employment, with few exceptions, were unable to make any adjustment that did not involve a serious lowering of their standard of living. Table 19 classifies the types of jobs of the 83 men employed by others and the 46 self-employed (table 16) at the time of the survey. The jobs outside of Manchester are classified separately. By far the largest number of those in Manchester, or 37, were in the cigar industry, of whom 29 were making cigars and 8 had other jobs in the industry. These 8 represent transfers, principally of younger men, to semiskilled or unskilled jobs in the Company's factory. Of the 29, 18 were self-employf:d, but as a subseqnent discnssion will show, their status may be considered for the most part as a form of disguised unemployment. This applies Table 19.- TWO HUNDRED AND TWENTY-FOUR HAND CIGAR WORKERS CLASSIFIED BY INDUSTRY OF PRESENT JOB IN MANCHESTER AND ELSEWHEREa (Including self-employment) Present jobs ( Pebruary 1937) Industry Total In Manchester 129 87 42 Cigar iranufacturing Textile rnanufacturing Shoe rnanufacturin~ Retail and wholesale trade Hotel and restaurant 66 6 7 15 9 37 4 7 12 8 29 2 0 Personal service Recreation and amusement ii'ariring Building and construction City offices 2 3 13 2 3 0 3 3 2 3 2 0 3 0 0 10 B 2 Total with jobs Other Total unernployed Elsewhere 3 1 95 aF1eld survey data. Digitized by Google 44 CIGAR MAKERS also to much of the self-employment and casual employment reported in industries other than cigar making. A mere enumeration of the jobs makes this evident. Of the so men employed in Manchester outside the cigar industry, only 4 were in the textile industry. Two of these were laborers who helped to set up machinery while new companies were moving into the Amoskeag Mills. Seven were employed in the shoe industry, 4 of whom are known to be machine operators. The largest number who were employed at other than cigar making were in retailandwholesale trade inthecity. Of the 12 so engaged, 3 were self-employed. One was the manager of a chain grocery. Two were grocery salesmen and 1 was a cigarette salesman. Of the remaining s jobs, 1 was skilled, 2 were unskilled, and 2 were semiskilled. Two of the proprietors noted in the group had no doubt been able to get a foothold in business through capital invested. The stock of the third is limited to doughnuts which he himself makes and sells from hou!"e to house. Six of the jobs are in food selling. Closely related to this field is the hotel and restaurant trade in which 8 men were engaged. Three were cafe or restaurant managers, 2 of whom owned their stock. Three were bartenders, 1 a waiter, and the eighth was a night clerk in a hotel. All of these were skilled jobs. Recreation and amusc~ent offered employment to 3. One was a waiter in a club. Although bookmaking for horse races is illegal in the State, 2 men were so employed. Three men were farmers, 2 of whom were known to be poultry farmers. It is reported that other cigar makers had invested savings in poultry farms and had failed to make them pay. A few of those who opened "buckeye" shops have followed poultry raising as a concurrent occupation. Building and construction, private, State, or municipal, offered employment to only 2 men, a truck driver and a tool man on State highway construction. The 3 city offices held by former cigar makers were the only positions which may be regarded as better than their former jobs. Of the 8 men who held miscellaneous jobs 2 were janitors and 1 a watchman, 1 a railroad laborer and 1 an insurance salesman. One man helped his son-in-law who was an upholstert.r and 2 men trimmed lawns. The latter 2 were old men and their work was mainly unskilled and seasonal. A description of the jobs held by the migrants suggests that their readjustment was no more fortunate than the readjustment Digitized by Google DIFFICULTIES OF REEMPLOYMENT 45 of those who remained in Manchester. Of the 4-2 migrants whose occupations are known, 29 were at their old trade, 11 in shops of their own. Two were working in textile mills, occupation unknown. Three were in retail and wholesale trades, 2 of them as gas station attendants and 1 as salesman. One was manager of a restaurant. Two were attendants ina State hospital. Three were reported as farming, 2 of them as poultry farmers. Two were miscellaneous as to industry, being an elevator operator and a painter respectively. Five of the 13 outside of the cigar industry were self-employed. In terms of skill, s were semiskilled occupations, 6 were skilled, and 2 were unknown. It is obvious that the type of work and the skill required do not vary to any appreciable extent in the two groups and that the bulk of the jobs, exclusive of cigar making, in both groups are semiskilled or unskilled. Nor can it be maintained that the deterioration in the quality of employment was gradual, for the character of the jobs held at the time of the survey did not differ significantly from the kind of employment secured throughout the s-year period since displacement, judging by the occupational histories taken for 116 workers of the sample (table 20). Previous to our census there were many more jobs in textile manufacturing, but these had been eliminated by the closing of the Amoskeag Mills in 1935. Another marked decrease was in the field of building and construction. Formerly the.re had been a number of laboring jobs on highways and municipal projects, other than e11ergency, where work was contracted for by a private firm. Some of the men who held these posit ions had become accustomed to physical labor while doing service in the city's woodyard for their relief check or while performing other emergency work. At the time of our survey, however, emergency work !which has not been tabulated as employment} had largely superseded all other State and municipal construction, and private building had had no revival in the Manchester area. It is especially noteworthy that only 14- jobs were held outside of Manchester; 10 were at cigar making and none were outside of New England. The extremely precarious work status of some the depths of the depression is shown by the termination of employment. An apprentice ina his job because the factory closed, as did saloon and a store that went out of business. of the men during reasons given for shoe factory lost workers in a beer A house-to-house Digitized by Google 46 CIGAR MAKERS salesman could not sell enough goods, nor could a taxi-driver who covered night calls pay expenses. A taxidermist could not make a living at his trade. An outdoor man on an estate had to leave when the weather got cold because he could no longer sleep in the barn. A dishwasher in a hotel was discharged at the end of the summer. Thirteen cigar makers who opened "buckeyes" had toclose them for lack of markets for their cigars, although two of them reopened later. In the Amoskeag Mill, wool sorters, laborers, and a watchman had two periods of temporary work. Table 20.- CLASSIFICATION BY INDUSTRY OF ALL JOBS HELD BY ll6a HAND CIGAR WORKERS SEEUNG WORK AFI'ER LAY-OFF IN 1931b (Including self-employment) Industry Total Cigar manufacturing Textile manufacturing Shoe manufacturing Retail and wholesale trade Hotel and restaurant Personal service Recreation and amusement Farming Building and construction City offices Other Total jobs held Present jobs (Feb. 1937) Former jobs ( Separated before Feb. 1937) In Manchester Elsewhere 143 e3 ee lA 58 35 13 10 22 2 7 4 19 3 1 0 15 9 e 0 e 3 3 0 2 1 1 0 4 1 1 3 1 0 0 2 2 3 14 0 3 0 0 2 19 2 e 3 a19 or tnese c1gar workers nave nad no Job at all since the lay-orr altllougll continuously seeking work ror at least 60 months ( see table 21 ). 3 or tnese 19 men, arter having oeen cont1nuous1y une111ploye<1 ror 6 years or more, were no longer seeking work at tne time or interview. Tne 143 Jobs were therefore dlstributed among 97 workers. bfield survey data. Digitized by Google DIFFICULTIES OF REEMPLOYMENT 47 DURATION OF CURRENT STATUS The description of the jobs held by these workers has indicated the quasi-casual character of their employment. Th is is also suggested by the data in table 21 on the duration of their status as of February 1937. Such information can be presented only for the 129 workers of the random sample, who were interviewed for their occupational histories. Of this smaller sample 42 were employed by others, but only six, or one-seventh, of these had been continuously employed for 5 years or more at the same job since the lay-off from the Company. At the other extreme, 7 had secured their jobs only within the 2 months preceding the date of interview, and 13, or 31 percent, within a year prior to this date. While 17 held their jobs from 12 to 35 months, only 6 had been continuously employed at their current positions from 36 to 59 months. Table 21,- DURATION OF CURRENT EMPLOYMENT STATUS OF 129 CIGAR MAKERS LAID OFF BY THE COMPANY IN 1931a Status as of February 1937 Current status Duration in months Employed by others Selfemployed Unemployed seeking workb Unemployed not seeking work Total 42 21 47 19 0-2 3-5 7 0 2 2 1 1 5 3 4 0 1 0 0 0 3 0 0 13 6-8 9-11 4 0 12-23 24-35 8 1 9 0 0 9 3 36-47 48-59 60-67 4 2 6 4 5 3 1 19 9 aF1eld survey data. brncludes those employed on emergency work. Those who reported themselves as self-employed enjoyed at least superficially a somewhat more lasting tenure. Thus 9 out of the Digitized by Google CIGAR MAKERS 48 21 so reported had been self-employed continuously for 5 years or more, and for 5 of these this represents the entire time since the displacement. On the other hand, only 4 had acquired this status within the year preceding the survey. Of the remaining 8, 1 had been self-employed for 12 to 23 months and 7 for 36 to 59 months. At the time of the interview 47 were recorded as unemployed but seeking work, 19 of whom had been without private employment since leaving the 11 7-20-4 11 factory, a period of more than 5 years. Since 6 additional had been continuously unemployed for at least the last 3 years, half of the total may be regarded as chronic unemployed, particularly since 15 of the 25 were aged 55 or over. For nine of this group the present stat us of unemployment had set in only within the 5 months previous to the interview. Of the 19 who were unemployed but not seeking work 13 withdrew from the labor market when they were displaced by the machines. Three had withdrawn only within the last 2 months and the remaining 3 from 24 to 35 months previous to enumeration. 7 The experiences of the 129 dis placed hand workers may be summarized by a distribution, according to employment status, of their total elapsed time between the lay-off and the date of interview (table 22). This total elapsed time amounted to8,287 man-months for the 129 workers. More than half of these months were reported as "unemployment seeking work" and more than one-tenth of the months as "unemployment not seeking work." The remaining 36 percent of the time represented employment. However, less than a fifth of the total time involved employment in the cigar industry, andalmost half of this employment was in "buckeye" shops, a type of self-employment that may be regarded in large part as 7 rt would appear that the results or our survey 1n this respect are not unrepresentative. At least the 1nvest1gat1on made by the Women•s Bureau shows that the women hand workers, even though laid orr during an upswing 1n general business, were reeluced in the main to outright unemployment, parttime employment, and quasi-casual Jobs. The results were su111111ar1zed .. s follows: or the total 1,150 women, 144 [about one-eighth] had hael no Jot> since the enforced separation. The 1,006 with subsequent work. had had 1,669 Jobs. Almost one-nalr or thes'e, 477 women, had ha<l only one Job, 306 had had two, and 223 had had three or more. or the 1,889 subsequent Jot>s reported by the 1,006 women, Just over 60 per cent were inmanuracturing pursuits. Almost two-thirds or these were in tobacco, practically all in cigars. The proportion or the women 40 years or age or more who had round manufacturing Jobs was less than such proportions in the other age groups. Manu racturlng Jobs 1n other 11nes than cigars were reported much more commonly by the women under 30 years or age than by those older, • • • . Manning and Byrne, op. cit., pp. 69-60. Digitized by Google DIFFICULTIES OF REEMPLOYMENT 49 disguised unemployment, as indeed was much of the employment in industries other than cigar making. Table 22.- DISTRIBUTION OF TOTAL ELAPSED MONTHS BETWEEN LAY-OFF AND DATE OF INTERVIEW, BY EMPLOYMENT STATUSa b (129 Hand Cigar Workers) Employment status Number of months Total elapsed time between lay-off and date of interview Unemployed not seeking work Unemployed seeking work Employed in cigar industry for others Employed in cigar industry for self Employed in other than cigar industry Percent of total 8,287 100.0 959 4,380 11.6 52.6 842 10.2 729 8.8 1,397 16.8 &Employment or unemployment or less tllan a montll 1n duration was not recorded. bF1eld survey data. PUBLIC ASSISTANCE In view of the extent and duration of unemployment among the workers, the role of public assistance must have been considerable,8 At the time of the interviews with the 129 men 9 whose histories were recorded, no inquiry was made regarding relief status, and unless the man was on emergency work there was no way of knowing this status. If a cigar worker had grown children who were unemployed, a son rather than his father would possibly be assigned to work as a laborer on WPA. In such cases, the father would merely be noted as unemployed and the fact of public assistance would not be known. In th is random sample of scheduled 8 The role or prlvatP. relier agenc 1es seems to have oeen negllglole 1n Hanr.hester. This ts not surprising 1nv1ew or the small percent or tne populatl on w111c11 could oe expected to support them. Tne Amoskeag Hanuracturlng Company ma1nta1ned health and we1rare services among 1ts workers until tile strike or 1922. 9 1n tills connection tile sample numoers 307. or this number, 129 were interviewed, another 68 were cnecked wltll relier case records, and an additional 120 el tiler llad moved away, nad died, or were unknown. Digitized by Google 50 CIGAR MAKERS cases 23 of the 66 unemployed cigar makers were on WPA. Of the 43 remaining, 24 were seeking work and 19 were not. Among the latter number, 12 were disabled, - 9 permanently, - 5 were reported as aged and 2 as retired. Among the disabled and aged group, as well as among the 24 who considered themselves still in the labor market, there were undoubtedly some indigents. Many of those who were self-employed or working only part time were not making a living. Among some full-time employees, the nature of the unskilled work performed did not pay enough to live on. Many were reported to have lost their property, to have moved to smaller quarters, or to be living with relatives, Savings accumulated in previous years have been drawn upon until they have been exhausted. Of the 23 on WPA rolls, 2 had just attained a relief -status in 1937 and had been assigned to WPA jobs at the time of the survey. Three had been on emergency work totaling from 3 to 8 months, 10 from 12 to23 months, 6 from 24 to 35 months, and 2 from36 to 47 months. In addition to these, 11 men among the scheduled cases who did not have a relief status inFebruary 1937 have performed emergency work in the past. Two of them who were self-employed on this date had been on emergency work from 1 to 6 months; 4 holding jobs had been onemer 6ency work for periods varying from less than 6 months to as much as 42 months. Two men in the labor market had worked from 1 to 6 months and another one from 13 to 18 months. In addition, two other men, who were not seeking work at this date, had worked from 7 to 12 months on emergency jobs, Thus at the very least, a total of 34, slightly more than oneguarter, had some time or other been on emergency work. With the exception of a few foremanships, which represented a promotion from a previous unskilled laboring status, all emergency employment reported involved unskilled labor, Fifty-eight former cigar workers living in Manchester were not contacted personally. These 58 were checked for relief status with the case records of the City and County Commissioners of Charities and the family welfare agency of the city. It is known, however, that the records of all these agencies are incomplete for both past and present relief status. The Central Index of Agencies, which was also checked, did not cover possible omissions since only one of the Commissioners registers with it. Recordswerefound for 23 of the 58, or 40 percent, who had Digitized by Google DIFFICULTIES OF REEMPLOYMENT 51 applied for assistance since the lay-of! at the Company. 10 Although the case records are fragmentary, the indications are that assistance was granted in all cases recorded, either in the form of employment under the CWA, 11 the State Emergency Relief Administration, and the WPA, or in the form of direct relief. Nineteen of the 23, or 33 percent of the total, were reported to be receiving public assistance at the time of this survey. 12 There is no doubt that this isan understatement of the extent of public assistance, both past and present, among our sample of former 11 7-20-q." cigar makers. Concerning relief supplementary to a job, we know of two cigar makers engaged at their trade to whom work relief is granted. There are no doubt other such cases. For the 120 cases constituting those who had moved away or died or were unknown, no information whatever about relief status is at hand. But in view of the casual and part-time nature of much of the reported employment, as well as the periods of unemployment, it may be assumed that public relief has assumed a much larger role than our limited figures indicate. Moreover, the cigar makers constituted a special relief problem despite their relatively small share in the entire relief burden of Manchester. Their standard of living had been higher than that of most of the mill population of the city, and yet the relief grants were designed to meet the needs of the latter group. This imposed upon the cigar makers additional difficulties of adjustment. SELF-EMPLOYMENT AT CIGAR MAKING The extent to which self-employment at cigar making has really been disguised unemployment cannot be appreciated without a fuller discussion of the "buckeye" shops. We have already indicated that a considerable fraction of the 233 13 men whose occupations are known have remained in the cigar industry. At the time of 10 one case or temporary assistance tollow1n& a flood in tbe Kerr1mac Valley in 1Q36 ls not included in tbls figure. 11 cwA enploYJDent noted bere was granted arter needbadoeen establlsbed, and ls not to be contused wltb CWA appo1nt111ents !rom tbe general unemployed J)OJ)Ulatlon. 12rwo men were on direct relier, one or wbom was incapacitated by old age and tbe otber by cbron1c illness. Two others were recetvtng 1nst1tuttonal care. 13rbts includes tbe nine wbo were retained by tbe Co111pany as band makers. Two 1n tbe interim bad le!t tbe Company, Le., one secured employment as a Cigar maker elsewbere, and one was employed as a caretaker on a private estate. Digitized by Google 52 CIGAR MAIERS this survey 74, or 3..1 percent, still had employment dustry. Of these, 29 were self-employed. 14 in the in- On first thought onewould expect a still larger percentage to have remained in the industry, especially in their own shops or "buckeyes." 1 5 In most instances of technological displacement of a skilled group, it is not feasible for the artisan to continue to ply his trade as a self-employer. For example, a linotyper, displaced by improved machinery, cannot very well set up his own printing press in the back-yard shed, nor can a bituminous coal miner, displaced by a mechanical loader, ordinarily continue to make use of his skill on his own account. In hand cigar making, however, the equipment is extremely simple: a small table, a knife, and a set of wooden molds are the tools of the trade. An extra room or a shed in the rear of the house serves the purpose of workshop and storage place for tobacco and finished goods. Moreover, the capital investment involved is not great. One "buckeye" reported that $150 was sufficient to set up in business. And there is no problem of complementary skills. As an employee he made the complete cigar from fashioning the filler tobacco into a bunch to rolling it in the final wrapper leaf. On the surface then, it appears that cigar making is an exception to the general rule applying to technological displacement in a craft enterprise. But a closer examination indicates that several important considerations have been omitted. While employed in the factory the hand worker makes his cigars from the tobacco with which he has been supplied. As a self-employer he must select his own mixture of tobacco, and his long training as a cigar maker has not provided him with the adequate, specialized knowledge. Consequently he is at the mercy of his tobacco broker ina matter that is obviously important in conditioning the salability of his product. It is 14 A geographlcal cUstr1but1on or cigar makers employed by tile Company 1n 11131 who were employed at cl gar making 1n February 1937 ls shown 1n t&ble 23. 15 The term •buckeyes• ls used interchangeably ror tile shops and the men. Its connotations 1n the trade are usually derogatory. The name appears to nave been current 1n tile trade as long ago as 50 years according to some e1aerly nand cigar makers. From 1nqu1r1es made 1n tile trade as to tne or1g1n or tile word, 1t would seem that the most plaus1Dle explanation ls that a large number or tile small ractor1es rtrst existed 1n the State or Ohio, wlllcll ls popularly known as tile Buckeye State. There ls, moreover, so■e stat1st1ca1 evidence 1n support or tills. For example, according to tile nuaL Repo,,-t of the Coa•issionef' of Intenia i Reveni.e fo,,- the fiscal Tea,,. 1889 there were 1,733 establlsbments manuracturlni C1iars 1n Ohio. Thie l)ll■bar was exceeded only DY tbose 1n New York and Pennsyl van1a, which had 5, ego &Del 4,978 estaol1srunents respect1ve1y. On the oasis or number or cl&ars produced per estaol1sllment, however, it would appear that or all tile ieac11na cigar-producing States, 01110 bad the smallest shops. Tile number or c1gare produced per establlsllment 1n 18811 was 170,4113 ror Ohio, 189,830 tor New Tork, &11d 202,454 !or Pennsy1van1a. ,n- Digitized by Google DIFFICULTIES OF REEMPLOYMENT ft3 not without significance that the most successful "buckeye" in Manchester bad worked at sampling tobacco for 4 years in Holland. Nor does the trade of cigar making prepare him to be a good salesman when he becomes a "buckeye" operator. And yet an unusual amount of salesmanship is necessary to sell in a declining market in competition with large business units that make use of all the methods of high-pressure sales promotion. Thus, the successful operation of a "buckeye" shop demands a variety of talents which factory employment does not develop. Apparently, these facts were realized by the displaced cigar workers only after bitter experiences. According to the 1932 Annual Report of the Co11111issioner of Internal Revenue, 45 cigar factories were opened in New Hampshire in 1931, making a total of 61 in business on January 1, 1932. In the ensuing year 32 were opened, and 80 were in business at the beginning of 1933, Thereafter, the number of failures exceeded the number of shops opened. Table 23,- GEOGRAPHICAL DISPERSION OF CIGAR MAKERS WHO ARE WORKING AT THEIR TRADEa ( As of February 1937) Location Total Manchester Rest of Hillsboro County Rest of New Hampshire Massachusetts Connecticut Employed by others Selfemployed 37 40 19 29 0 0 2 2 4 9 4 0 1 1 0 1 1 0 0 1 0 3 , Maine Pennsylvania Canada Belgium Germany &Excludes occupations in the cigar industry other than band making. In addition to those now employed at cigar making in the sample or 224., this table includes the 8 employees kept on as makers at the Co11pa111 lfho are still employed at making, and 11 1 buckeyes• whose names were added rrom the Bureau ot Internal Revenue report. The tlfelrth person list.ed by the Bureau was no longer in the c1gar tndustry at the time or our Ueld survey. All or the persona included 1n this table lfOrlted ror the Company pr1or to 11131. Digitized by Google CIGAR MAKERS In Manchester, 6q "buckeyes" were reported to have been operating in 1933, and on the date of this survey (February 19371 35 shops were reported to be in existence. Twenty-nine of these are included among the 40 self-employed cigar makers shown in table 23. The duration of operation is known for only 27 of the qo; 18 had been in business for at least Si years while 3 had begun to operate only within the 6 months preceding the date of interview. The remaining 6 had been in business anywhere from 7 to 48 months. It is known that 1..1 others had failed in the Si-year interval between the lay-off and our survey. The duration of operation of only 6 is known. None of these lasted more than 3 years and 3 withdrew within 18 months. The major difficulties have already been mentioned. Perhaps a contributory factor is the variation among the men of the quality of their product, particularly since the high standard of workmanship on the machinemade product requires a good hand-made article to compete with it. Lacking advertising, the hand-made cigar has nothing to recommend it except itself. EARNINGS AS •BUCKEYES• But even those who have managed to hold on to their shops have hadonlya meagre livelihood from the business. Of the 35 "buckeyes" in Manchester, only 4 were reported to be making a living from their work. There is reason to believe that those who avoided competition with other "buckeyes" by moving to neighboring cities in New Hampshire or other parts of New England have been more successful. The fact that the "buckeye" shop must compete in the market of the 5-cent cigar suggests that it could yield but a poor return in most cases. The "buckeyes" agreed to sell at a wholesale price of $1.75for50, or 3/. cents apiece, but few have lived up to the agreement owing to the pressure of competition. One dollar and sixty cents for so has been the usual amount obtained. Some had sold their cigars to retail as low as ..i for 5 cents. From his gross income of 3/. cents a cigar - if he got it - the "buckeye" had to pay the revenue tax and union dues and cover the cost of a band, a cellophane cover, and a portion of a box or pack, in adclition to the cost of the tobacco. During the life of the Digitized by Google DIFFICULTIES OF REEMPLOYMENT 55 Agricultural Adjustment Administration the processing tax cost from $8 to ;£10 per month additional, and the market was too precarious to pass the extra cost along to the retailer. Detailed cost figures are not needed to make the point that the combined wages of labor and of management per cigar must be very; very small. L. C. Durette The mold WPA - National Research Project FIGURE 8.- HANO WORKER "BUNCHING THE FILLER" in which the bunches are formed under pressure is seen alongside the bench. This "buckeye• is also shown in figure 6. The nature of "buckeye" markets suggests, moreover, that the smallness of the per-unit return above material costs was not compensated for by large volume of sales. The chief selling places have been drug stores, restaurants, cafes, and the clubs run by the various ethnic groups in Manchester or nearby communities, Some men have been their own retail salesmen, canvassing the offices and even thestreets of the city selling their cigars singly or in packs at scents a cigar. None of the "buckeyes" who were scheduled put in full time at cigar makinu. They have been their own salesmen and collectors, and the time consumed in these activities varied with the distance to their selling place and the difficulties of collection. Some Digitized by Google CIGAR MAKERS 56 have had assistance from other members of the family in cellophaning and packing the cigars. The majority have not been able to sell enough cigars to keep them fully occupied in the cigar business and when possible have been doing other work. One man who has been regularly employed in a store made cigars after hours. A few have had poultry farms in addition to their shops. Only L. C, Durette WPA - latlonal Reaearch Project FIGURE 9.- HAND CIGAR MAKER APPLYING THE BINDER LEAF Note in front or him the grooved mold for bunches. This 0 buckeye" uses for a factory the 1 iv ing room or his cottage in the country near Manchester. a few have been able to maintain the standard of living of pre- vious years. One small manufacturer and reported his 1936 income as $600 a job at $15 a week, he would throw ment tomorrow. These facts suggest fication "self-employed but seeking who employed fourassistants stated that if he could get away his cigar making equipthe feasibility of a classiwork." The difficulties inherent in self-employment in this industry are reflected in the annual income earned in 1936 at cigar making, as reported by22 "buckeyes." !See table 24. I The median earnings of the "buckeyes" were $550 with only one person reporting earnings of over $1,000 and two under $150. There were concentrations at $150-$249, $450-$549, and $750-$849. The retrenchDigitized by Google DIFFICULTIES OF REEMPLOYMENT 57 ment that this must have caused can be appreciated by the comparison with the estimated annual earnings reported as received by these 22 "buckeyes" and 4 others when employed at the Company in 1930, a year of part-time employment even during the usual "busy" months. The median wage was $1,070 1 e with the range beginning with $750, i.e., $200 above the median earnings of the "buckeyes." Earnings of $1,750 and over were reported by four. Table 24.- ESTIMATED ANNUAL EARNINGS FROM CIGAR MAKING AT THE COMPANY IN 1930 AND AS "BUCKEYE" PROPRIETORS IN 1936a Annual earnings Total Cigar makers at the Company in 1930 "Buckeyes" in 1936 26 22 Under $150 $150-$249 $250-$349 $350-$449 $450-$549 0 0 0 0 0 2 4 0 1 4 $550-$649 $650-$749 $750-$849 $850-$949 $950-$1,049 0 0 1 4 8 1 3 5 1 0 $1, 050-$1, 149 $1,150-$1,249 $1,250-$1,349 $1,350-$1,449 $1,450-$1,549 1 3 1 0 3 0 0 $1,550-$1,649 $1, 650-$1, 749 $1,750-and over 1 0 Hedi an ( annual earnings) . 0 0 0 4 0 1 0 $1,070 $550 aF1eld survey data. lelt would appear that this rigure ls representative. The Internal Revenue records disclose that 8,09e thousand class 1 B' and31,<4.<4.e thousand class cigars were manutactured 1n New Hupshire in 1930. Production ln the other classes was negllglble. It 1s known that tbe Company produced 97.2 percent or New Hampsbire•s total ln this year. Uslng tbls as a correction !actor tor each class, a very close appro:umation to tbe Company•s output ls obtained. since tbe makers or tbe •De:i:ter• clgar ( class 1 B1 ) were pald at tbe rate or $10 per thousand and tbe ma1ters or the 1 7-20-<4.' ( class •c•) at the rate or $18.50 per thousand, tbe Company•s wage blll ror cigar making ror the year can be detel"llllned. Tbis amounted to $e<4,<4,, 162.60. Tbe records snow that on January 1, 1931 there were 828 band worlters lntbe Company•s employ. since displacement bad not yet occurred, this number very liltely represents the average number employed in 19:3(). Tbls number diVlded into tbe wage bill gives an average annual earnings or $1,028. •c• Digitized by Google 58 CIGAR MAKERS OTHER EMPLOYMENT AS CIGAR MAKERS There remain the 37 other cigar makers whowere still employed at their trade. (See table ..13.) Seven of them continued to work in the 11 7-20-lf" factory from 1 to 2 days a week, producing the hand-made 11 7-20-!f" for its strictly limited market. The remaining 12 in Manchester were employed by other "buckeyes", generally on part-time, so that at least one is known to receive public assistance in the form of emergency work. Of the other 18, 9 had gone toConnecticut where union wages st_ill obtained in factories where hand workers were employed, Their hours of employment were not reported. The exact status of six is unknown and three are reported to have been working for "buckeyes." With the possible exception of the 9 in Connecticut, therefore. the 37 men who were not in business for themselves had not fared any better than those who were. They were either employed on short hours in factories or were working for "buckeyes." It would appear from this survey that the avenues of readjustments with few exceptions have been only the dead-end streets of part-time employmentforothers orforself, unemployment, and emergency or direct relief. Digitized by Google SECTION V COMPARISION OF EMPLOYMENT PATTERN, EARNINGS, AND UNIONIZATION OF MACHINE OPERATORS AND HAND WORKERS EMPLOYMENT OF MACHINE OPERATORS The full effects of the use of machines in this particular instance cannot be gauged without a consideration of the type of employment and the amount of earnings enjoyed by the machine operators. From the records filed by the Company with the Division of Unemployment Compensation of New Hampshire it is possible to obtain this information for 1936. For this year the Division required a statement of the hours and the wages earned in each week of the year for each of the 202 machine operators who were employed by the Company during the year. By computing an average of the weekly aggregates of man-hours for each month and relating these to the average for the year, the month-to-month fluctuations can be shown. (See table25,) If the monthly fluctuations in 1936 are represen- worked Table 25,- MONTHLY INDEXa OF MAN-HOURS WORK.ED BY MACHINE OPERATORS AT THE COMPANY IN 1936b Percent of averase for the year Month 50.? January February March ?4.5 84.0 June 95.3 108.3 111,4 July August September 11?.5 108.5 106.4 October November December 11?.? April May 114,4 111.4 ~aaed on averages or weekly man-hours. bcomputed rrom data in records or New Hampshire Bureau or Labor, Div1s1on or Unemployment Compensation. 59 Digitized by Google CIGAR MAKERS 60 tative of the seasonal movement in the q preceding years, it is clear that the use of machines has not ironed out the seasonal variations in employment. The winter months still constitute the dull season. 1 The degree of full-time employment represented by the man-hour data can be shown in several ways. For example, the 202 operators can be distributed by the percentage of man-hours worked during the entire year to the theoretical maximum. Since the day shift works a ~a-hour week and the night shift a 33.75-hour week and since there is an interchange of shifts once each week, the full-time hours ina biweekly period equal 73.75. The product of the latter multiplied by 26 yields the theoretical maximum full-time employment in this 53-week period reported to the Bureau after allowance is made for five holidays. On this basis slightly more than half of the operators were employed, on the average, 85 percent of the work-year and only four operators more than 90 percent. An additional one-fifth was employed threequarters of the time; almost one-tenth had worked half of the time or less. (See table 26.) Table 26.- DISTRIBUTION OF 202 MACHINE OPERATORS AT THE COMPANY BY THE PERCENT OF ACTUAL MAN-HOURS ~RKED IN 1936 TO THE THEORETICAL MAXIMUMa Percent of theoretical maximum Number of operators Percent of total number of operators 202 100.0 30 and under 31-40 41-50 51-60 3 6 10 9 1.5 3.0 4.9 61-70 71-80 81-90 91 and over 23 43 104 11.4 21. 3 51.5 2.0 Total 4.4 4 aComputed rrom data tn records or New Hampshtre Bureau or LaDor, D1v1s1on or unemployment Compensation. 1Tnts seasonal 1ndex ls stm!lar to the one Dased on stamp sales Wh1Ch Russell H. 11ack computed ror class •A• cigars ror the period 1925 to 1931. rhe Ci.ga,,,Nanufact'IJlf"i.ng Indust.-y (Ph1ladelph1a: Un!verslty or Pennsylvania Press, 1933). p. 96- Digitized by Google MACHINE OPERATORS AND HAND WORKERS 61 This suggests that complete unemployment in contradistinction to partial employment was not widely prevalent. The statistics on weeks of no employment confirm this inference. Thus 28 percent had some employment in each week of the year and an additional 27 percent was completely unemployed for only 1 week. Only ina little more than one-quarter of the cases did the weeks of unemployment exceed 4, but one-fifth of these were unemployed at least .26weeks. (See table 27.) Failure to achieve a fuller degree of employment cannot therefore be explained by complete unemployment but rather by partial unemployment. Table 27.- DISTRIBUTIOI OF 202 MACHINE OPERATORS ~T TD COMPANY, BY NUIIBD. OF WEEKS WITH NO EIIPLOYIIENT, 1936a Number of weeks wit.h no employment, Tot.al Number of ope rat.ors Percent. of tot.al 202 100.0 0 1 2 56 54 18 3 12 27,7 26,7 8.9 5,9 4 5 6-7 8-9 10-13 14-20 21-26 Over 26 7 6 4,5 3,0 3,5 3,0 6 10 8 10 3,0 4,9 4,0 4,9 9 6 acomputed rro■ data 1n records or Ne" Ha111pah1re Bureau or Labor, D1v1111on or Une ■ plo1'1118nt Compensation. There is additional evidence of part-time employment resulting from the company policy of sharing the work in the dull seasons. From table 28 it can be seen that more than two-thirds of the operators had from 6 to 8 months of not less than half-time but Digitized by Google CIGAR MAKERS 62 L. C, WPA Durette - Nationa I Research Project FIGURE 10.- MAKING CIGARS BY HAND The worker is tapering off the wrapper of a nearly finished cigar. In one day the hand worker makes about 500 cigars of the kind made by the mach,ne in figure 11. The picture was taken in the interior of a "buckeye shop• which is housed in the rear of a small store operated by the same man. Table 28.- DISTRIBl'TION OF 202 MACHINE OPERATORS ATTHECOMPANY, BY WEEKS OF LESS THAN FULL-TIME BUT NCYI' LESS THAN HALF-TIME EMPLOYMENT, 1936a ·~ Number of weeks of less than Number of Percent full-time but not less than of total operators half-time employment Total 0 1-8 9-H\ 17-24 25-32 33-40 41 and over 202 100.0 0 1 12 30 0 0.5 14.9 138 20 1 68.3 9.9 0.5 5.9 -~~~ aCom1iuted from data In records or New Hampshlre Bureau or Unemployment Compensation. or Labor, D1v1s1on Digitized by Google MACHINE OPERATORS AND HAND WORKERS 63 less than full-time employment. 2 Another 10 percent had from 8 to 9 months of such employment while only 6 percent were so employed for less than 4 months. Obviously, this leaves but a small margin for full-time weeks as is disclosed by the distribution in table 29, While only two operators had zero weeks of full-time employment, almost twothirds had full-time employment, including overtime, from one- International Cigar Machinery Co, FIGURE 11,- TWO-OPERATOR CIGAR-MAKING MACHINE This machine, making scrap-filler cigars, is of the type which has largely displaced hand workers at the Company. The filler is fed into the hopper at right, and the girl places the binder in position. The operator at the left places the wrapper leaf and inspects the finished cigar. In one hour about U6O cigars are manufactured on this machine. quarter of such for the Nor did to one-half of the year. None had more than 28 weeks employment, while the duration of full-time employment remaining one-third was less than a quarter of a year. the peak demands require many overtime weeks of employ- 2As previous 17 e:rpla1neel 1t bas been necessary to analne the operators• employment 1n units or b1weekl7 per10Cls with 73.76 hours constituting rull time. Boirever, because or a Clec1Cleel concentration or cases at 72 hours tor a rortn1gbtl7 per10CI, this nuaber or hours bas been taken to represent runtime n1plo,ment. Accore11nal1, 38 hours over 2 weeu constltutee halt-time employment. For purposes or presents t1on the b1weeltl7 per10Cla have been converte<I to a weekly basts. Digitized by Google CIGAR MAKERS 64 ment in this year which was a relatively prosperous one in terms of produc.t ion. 3 For example, 29 percent had only 1 to ~ overtime weeks, another 38 percent S to 8 weeks, and one-quarter, 9 to 12 weeks. None had more than 13 overtime weeks. Table 29.- DISTRIBUTION OF 202 MACHINE OPERATORS AT THE COMPANY BY WEEKS OF FULL-TIME EMPLOYMENT, 8 1936b Number of weeks of full-time employment Number of operators Percent of total 202 100.0 0 1-4 5-8 9-12 2 10 21 37 1.0 5.0 18.3 13-16 17-20 21-24 25-28 48 43 36 23.8 21.3 17.8 5 2.4 Total 10.4 8 Includ1ng overtime weeks. bcomputed from data 1n records of New Hampshire Bureau or Unemployment Compensation. or Labor, D1v1s1on From these facts it seems clear that the seasonal utilization of labor for peak demands has created a labor reserve. That is, the peak operations, which occur during 2 or 3 months, provide full-time work !or practically all of the 202 operators and occasionally provide overtime work. To insure the availability of the full force for the busy season, and thus avoid the cost of training new personnel each year, the entire group of operators is kept attached to the plant throughout the dull seasons by parttime employment that results from sharing the work. EARNINGS OF MACHINE OPERATORS It is for this reason that partial employment was the typical experience of the operators, despite the fact that 202 operators displaced about 600 hand workers and that the operators produced more cigars in 1936 than the hand workers in 1929 - a -year of 3 see table 1. Digitized by Google MACHINE OPERATORS AND HAND WORKERS 65 full-time employment outside the slack winter months . This is reflected in their annual earnings, whic h are classified in table 30. Table 30. - DISTRIBUTION OF 202 IIACHINE OPERATORS AT THE COMPANY, BY ANNUAL EARNINGS , 1936a Amount of ann ual earn ings Operators with a maximum unemployment of 4 weeks Number Total $250 251 501 751 801 and under to $500 75 0 to 800 to 850 to 900 851 to 950 901 to 951 to 1,000 1,001 to 1 , 250 Over 1,250 Med ian (annual earnings) Percent of total Operators with a minimum unemployment of 5 weeks Number Percent of total 149 100 . 0 53 100.0 0 0 2 8 15 0 0 1.3 5,4 10.1 2 15 21 5 e 3.8 28,3 39.e 9,4 11.3 32 29 21.5 19,5 29,5 12.7 0 2 2 0 0 0 3.8 3.8 0 0 0 44 19 0 $931 $1321 aco111puted rrom data ln records or Ne,r Hampshire Bureau or Unemplo7ment Compensation. or La b or, Dlvlslon The operators are divided into two grou ps : one i s composed of those whose unemployment, measured in pay - roll weeks , did not exceed 4. These may be regarded as the r egul a r workin g forc e . They constituted about 75 percent of the ope r at o r s. Th e other 25 percent did not have employment in as ma ny a s 48 wee ks. It is instructive to compare the median annual wage of $ 9 3 1 of the regular operators with $1,070, the median of th e annual ea rnings reported by 26 ha nd worke rs at the Comp a ny i n 1 9 30, a poor year . The lower and upper limits of the range for th e former are below the respective limits of the range of annual earni ngs of the ha nd workers. This may be ex plained in part by the fact that the lat"ter are subjective estimates with something of a n upwa rd bias . But even with some allowance for this factor it would appear that the operators with the fullest employment in a r a ther pros perous year earned less on an annual basis than the hand workers Digitized by Google 66 CIGAR MAKERS in a year of depressed trade. That is, despite the increased productivity of the operator over the hand worker, due to the greater use of capital, labor's share of the product is less on an absolute basis and perhaps still less on a relative basis. The "7-.20-4 11 plant, moreover, appears t"o be paying an hourly wage considerably above that of some other large manufacturers. The hourly wage rate at the Company was derived for each of the 202 operat0rs by dividing the annual rnan-hours into the annual earnings. The rates are classified in table 31, The median hourly wage in this distribution was 57.2 cents. Ina recent survey of four large machine-operated factories making short-filler cigars to retail at less than scents apiece -which of all the factories surveyed are the most comparable to the Company - the average hourly wages were 30, 35, 42, and 48 cents. 4 To what extent the differential may be due to the presence of the union at the Manchester plant cannot be indicated, since it is not known whether the four factories that enter into the comparison deal with the union. Table 31,- DISTRIBUTION OF 202 MACHINE OPERATORS AT THE COMPANY BY HOURLY EAIUIINGS IN 1936~ Hourly rate Total $.40-$.44 . 45- ,49 .50 . 51, .52 Number of operators Percent of total 202 100.0 3 1.5 4.9 0 1.0 1.0 10 0 2 2 .53 .54 .55 .56 .57 8 5 10 .58 .59 .60- . 64 .65- . 69 39 51 25 4.0 2.5 4.9 5.4 16.8 11 34 19.3 25.3 12.4 1.0 2 acomputed rrom data 1n records or New Hampshire Bureau or Unemployment Compensation. or Labor, D1v1s1on 4wPA National Research Project 1n cooperation wtth U. S. Bureau or Labor Stat1st1cs, report byW. D. Evans on producttvt ty or labor tn the ct gar manuracturlng Industry, In preparation. fide in.f-ra p. 68. Digitized by Google MACHINE OPERATORS AND HAND WORKERS 67 If available data on costs and net profit were adequate, it would be of interest to determine whether the increased productivity of the machines alone was sufficient to enable the manufacturer to rroduce as-cent cigar with an adequate profit margin, or whether the reduction in the workers' earnings was also necessary. Unfortunately, the requisite information is not at hand. However, since an increasing fraction of the industry has mechanized, it may be assumed that the combination of mechanization and reduced wages has yielded profits. Just how much leeway there has been for establishing earnings for machine operators at or closer to the earnings of the band makers who were displaced, maybe subject to dispute, but, under existing circumstances, it is not difficult to understand the demoralization of wage rates and earnings that has overtaken the industry. Machine use has established a standard of co111petition such that hand 111anufacturers can survive only by payin~ pitifully 111eager wages to their e111ployees. Paralleling the proble111 of wages paid by hand-made cigar 111anufacturers, the wage rates in effect throughout the 111achine-111ade cigar industry provided but a bare subsistence for the workers. 5 Moreover, • It will be observed • • • • [fro111 a special survey by States 111ade by the Census of Manufacturers in 1933] that low as wage payments seem for the country as a whole, they were even lower for some of the principal cigar producing states. Attention is directed to Florida and Pennsylvania in particular. 6 To appreciate the effeGt of the changes in the cigar industry on the hand rollers who are st ill employed, it need only be added that Florida and Pennsylvania are the locations at which the surviving hand production is concentrated. THE UNION AFTER THE LAY-OFF The change in status of the Manchester local of the Cigar Workers' International Union subsequent to the lay-off must also be considered as an effect of the introduction of machines. The 6 the tobacco Stwy (U, Dept. Com., National Recovery Administration, D1v1s1on or Review, m1meo. report, Har. 11136), p. 140. 6Ibici. p, 164. nde supra pp. 34 and 35 and infra Appendix C, s: Digitized by Google 68 CIGAR MAKERS union local see!Tls to have enjoyed no better fortune than the displaced cigar workers; it too has merely continued to exist. In this instance there were fewer extenuating circumstances, since the managerr.ent continued to observe the closed shop agreement and the female !Tlachine operators were obliged to joint he union. The young girls, however, came to the union without any previous tradeunion experience or any current interest in labor proble!Tls and organization. Nor was such interest developed by the older members. It is not clear whether personal difficulties of economic adjustment which the older !Tlembers experienced precluded any such activity or whether organizational and educational ability were lacking among the me!r.bership. Yet at one time this union was the strongest and best organized in the central labor body of Manchester. It had apparently developed a strong sense of labor solidarity as judged by the reports that this local had contributed :£40,000 to the strikers in the Lawrence mills in 1912 and ;£35 ,ooo to the Amoskeag workers during their 9-month strike in 1922. It had engaged also in so!Tle welfare activities for its membership. Thus, the monthly dues of $2 entitled each member toa death benefit of $350. A fund for the sick and disabled was created by assessing each mefl'ber 1 percent of his earnings, and when a member was unable to work through sickness or disability, his dues were paid from this fund. Because of the high rrortality rate of cigar makers resulting from the large number of older men in the trade, two classes of membership had been established by the International in May 1931. Two-dollar dues continued the death benefit; $1 covered organization benefits only. In June 1933 the former class of member in this local was discontinued, and all employees of the factory paid the same rate of $1 'per month, which is the rate that still prevails. The dew.oralization of the union was gradual. Although it was undergoing a transition from craft to industrial status in 1931, when the machines were being installed, nevertheless, it had evidenced an aggressive spirit. In May of that year,anexecutive committee investigated charges of favoritism and coercion by two foremen, and adjusted the complaints satisfactorily with the firm. Moreover, as soon as the women were employed to operate the machines, a bill of price of $1.25 per thousand cigars was made for them. This wage rate prevails today and is said by the secretary to be 10 cents in advance of the Boston rates. Digitized by Google MACHINE OPERATORS AND HAND WORKERS 69 But within a few months the dismissal of the hand workers was reflected in the treasurer's balance. The union found cheaper office space and sold some fixtures. The secretary took a 25 percent reduction in salary. With the further demoralization of the older members and the complete lack of interest on the part of the new members no meetings for the membership had been held since 1932. The secretary has called the executive committee to order only once a year since this date, in order to have himself legally reelected. Little wonder then that the machine operators regard the dues as another tax on wages without any apparent quid pro quo in the present or future. Digitized by Google SECTION VI SUMMARY AND CONCLUSIONS SUMMARY Sufficient evidence has been presented toshow that theproble'Tls and results of readjustment presented in our survey may be considered representative of the problems faced and the results achieved by hand cigar makers throughout the industry_ after they were dis placed by machines. The problems and results may be summarized as follows: The data are concerned with that type of technological change which substitutes one complete process for another. In this case it is the substitution of a machine process for a hand process. This change in process took place at a time of recessive trends in the cigar industry. The per capita consumption of cigars had begun to decline in 1905 but the volume of production reached its peak in 19.20. The continued swing to cigarettes in the popular taste resulted in a ~7-percent decline in the volume of production from the high point of 19.20 to the low point of 1933. In the face of this intensive competition, the cigar manufacturer was forced to shift his production from the class "C" cigar lto retail at more than 8 and not more than 15 cents) to the class "A" cigar ( to retail at not more than 5 cents l. In 19.21, class "A" cigars constituted 30 . .2percent of the total production. By 1935 they were 88.1 percent of the total production. The profitable production of a less expensive cigar necessitated a substantial reduction in labor costs. This reduction was accomplished by the use of automatic cigar-making machinery. It was estimated that in 1933, only 1q years after the commercial introduction of the machines, about 5.2 percent of all cigars were machine-made. The economic pressures just reviewed were accelerated by the decline in demand resulting from world-wide depression. Between 1909 and 1933 the decline in demand and the use of labor-saving machinery resulted in the loss of 60,000 jobs, according to an estimate based on Tht Census of Nanufacturts. 1 1rhe 1obaccoSti.dy (U. S. Dept. Com., National Recovery Ac1mln1Strat1on, D1v1slon or Review, mlmeo. report, Mar. 1936), p. 14,1. 70 Digitized by Google SUMMARY AND CONCLUSIONS 71 The social consequences of the factors of economic pressure just described have been traced in one community. At the time of the change in process from hand work to machine work a complete substitution of personnel occurred. Although more than a quarter of the displaced men migrated in search of work, an entire population of artisans was left stranded in the sense that it has never been reabsorbed in industry. After S years of seeking work and after more than 2 years of business revival, 30 percent of the workers were unemployed and 20 percent operated "buckeye" shops which, with few exceptions, yielded such a meagre return that they may well be regarded as a form of disguised unemployment. The bulk of the ~o percent who were employed by others were working at part-time, casual jobs. The remaining 10 percent were no longer in the labor market, the majority having withdrawn because of physical disabilities, while a fewwere living on their savings. The difficulties in finding satisfactory reemployment were largely conditioned by the personal characteristics and the occupational background of the displaced workers. It was found that the displaced workers were an industrially-aged group which had long been habituated to a single skill. This skill was now practically obsolete, and the workers' age and limited experience in industrial adaptation represented an insurmountable hurdle to all but a few. A Government study made in 1930 covering 109 cigar factories in 11 States shows that the same lot befell its sample of displaced hand workers, who had an average age and a degree of occupational habituation almost as great as those in this study. The similarity of our findings with those of a much more extensive study of displaced hand workers in the cigar inaustry warrants generalization that such has been their usual fate. The median age of our displaced group was ~7, and the median years of employment at cigar making were 29. This last figure was approximated by the number of years of residence in Manchester, indicating the high degree of stability which derives from employment with one company over a large number of years. The tabular data representing occupational history reflect the contrast between the relatively regular employment experienced by the hand maker prior to 1931 and the frequent job shifts, casual employment of a semiskilled oran unskilled nature, and unemployment experienced after their separation in 1931. Digitized by Google 72 CIGAR MAKERS The earnings for the year 1936 of those cigar makers who were running "buckeyes", or small factories of their own, in Manchester were contrasted with their earnings during their last year at the 11 7-.20-~" plant. Their median 1936 earnings were found to be $520 less than they had been during a slack year at the factory. The hand workers werenotpermitted to remainasmachine operators. But even had they been, a study of the wages and hours of the present machine operators reveals t.hat the median wage of the operators in 1936 was $139 less than that of the hand workers in the slack year of 1930. Although few of the girls are on full time, a comparisonofwage rates at the "7-.20-4 11 plant with those of other plants shows that the wage rate is higher at the 11 7-20-4 11 plant than at most factories. APPRAISAL OF SOCIAL RESOURCES As already suggested, the natural tendency of workers to seek reemployment in their own field was unavailing because of conditions within the industry itself. Job opportunities outside of their own field were of an inferior sort, as an analysis of actual jobs held at home and afield shows, The conditioning factors of advanced industrial age and occupational habituation were a severe handicap as long as economic developments failed to reabsorb current large numbers of unemployed whowere younger, It is doubtful whether the aid of employment exchanges and vocational training, which were not available to our sample, would have helped much, for the group most in need of assistance was and will be the older workers, who are difficult to retrain and still more difficult to place in employment. No account has been taken of emergency work or direct relief history as such. However, among the 129 men who were interviewed, one-quarter reported emergency work at some time in their occupational histories, and more than one-third of those seeking work at the time of the interview were holding current WPA jobs. The facts concerning direct relief or concerning other persons in the household engaged in emergency work, or even concerning relief supplementary to a job held at present or previously, were not ascertained. In the case of 58 other men living in Manchester, the names were checked with the relief agency as an aid to tracing them. Though the relief records are known to be incomplete, Digitized by Google SUMMARY AND CONCLUSIONS 73 ~o percent of those 58 had a relief history. For the remaining 120, 29 of whom are now dead and 85 moved away, no information whatever about relief status is at hand. In view of the casual and part-time nature of much of the reported employment as well as the periods of unemployment, it is reasonable to suppose that many more than we know of have received assistance off and on during the years or are receiving it now. Even upon the basis of partial information, the conclusion seems inescapable that without public relief the condition of many of these artisans would have been truly desperate. Presumably the inability of the cigar makers' union at the Company to force any concessions in behalf of the displaced workers was typical of other locals of this union. At any rate, no evidence has come to light where any other local in the industry was able to secure dismissal wages for its displaced members or to have them retained as machine operators. At best, however, dismissal wages are temporary expedients which tend to reduce the magnitude of the difficulties somewhat, but not to eli.minate them. Under the most generous arrangements a dismissal wage, whether paid in a lump sum or in monthly installments, has rarely exceeded a year 1 s earnings, even for those with a long service record. Usually the payment amounts to much less. Whatever the sum - and in view of the state of the industry, it could not have been a large amount - it would doubtless have been a welcome addition to the workers I savings. Nonrecurring income, however, is no solution to a condition of chronic underemployment and unemployment. Possibly it would have enabled a st ill larger number to have become owners of ''buckeye" shops, but our study indicates that these shops may well be regarded as a misdirected investment. 2 2.rne ltm1ted ert1cacy or d1sm1ssal wages ls analyzed by Robert J. Hyers, •occupatlonal Readjustment or Displaced Skilled Workmen,• The Jou.-nal of PoLitical Econo•y, XXXVII, No. 4 (Aui,i;. 1921l J, 473-89, and oy Ewan Clague and w. J. Couper, •Tne Readjustment or Workers Displaced oy Plant Shutdowns,• The Quarte.-ly Jou.-na I of Econo•ics, Vol. XLV ( Feo. 1931), pp. 309-46, Tile rormer discusses tile experiences or the cutters lald orr DY Hart, Scnarrner and Harx wl th a dlsmlssal wage wlllcll bad Deen negotiated ror them bY tile Amalgamated Clotlllng Workers. Tile latter discusses tile experiences or tile employees or tile L. Candee Company, a suosldlary or tile United States Ruooer Company 1n New Haven, whlcll granted a dismissal wage at tile time or Its permanent shut-down. Hore recently there nave been several examples or organized labor ootaln!ng a dlsmlss,n wage. See ror example tile contract entered 1nto oy tile International Seamen's Union or America and tile Ncrtllwestern PacUlc Railroad Company In bellalr or tile rerrymen who were to oe dlsmlssed oecause or tt1e completion or tile San Francisco-Oakland and Golden Gate or!di,i;es. For tile tenns or tills contract as well as otner contracts negotiated at tills tlme see 1 Dlsm1ssa1 Compensation ror San Francisco Ferrymen,• Honthly I,abo• Review, 43, No. 4 ( Oct. 1936 ), 867-9. Proo.ioly tile most spectacular case !sthe arrangement through Federal les!slat!on ror protectlni,i; railroad workers to be dlsplaced oy contemplated consolldatlons. Tn!s ls discussed oy Otto S. Beyer In •unemployment Compensation ln tile Transportation Industry,• The Annals of tlie A111e.-ican Acade•y of Political <Jnd Soci<JI Science, Vol. 187 (Sept. 1936), pp. 96-9. Digitized by Google 74 CIGAR MAKERS The expe~ient of retaining some of the hand workers to operate the machines would have affected the incidence of unemployment but not itsvolume. Had they been retained at theCompany's plant, there would have been 202 fewer hand workers seeking employment in 1931-32, but there would have been202 additional young women in need of jobs. Since they were younger than the hand workers and occupationally more flexible, perhaps they would have had a better chance to find employment than did the hand workers. However, in the absence of a shortage of that type of labor, whatever jobs the young women would have obtained would have been at the expense of others. Of overshadowing consequence is the fact that there would still have been a very considerable net displacement of workers because of the great increase in the productivity of the machines, which was not overcome by the increased volume produced, Moreover, if the hand workers had been retained, very probably the youngest in the group, ~ho had the least difficulty in making the adjustments, would have been selected as machine operators. Another possibility open to the hand workers was the acceptance of a wage rate low enough to have removed any incentive for mechanization. Apparently this is the solution that was effected in the York County, Pennsylvania, cigar district, where cheap cigars are still made by hand. It is clear that such a step entails a serious loss in annual income and standard of living compared with the earnings and status of the hand workers before the advent of machines. 3 Whether this is to be preferred to the standard of living and the income of those displaced from the industry is not easy to determine. How effective will the Social Security program be now or in the immediate future if the particular circumstances that have surrounded displacement in our case study continue to obtain in other cases? In those States inwhich partial unemployment is compensated, it is likely that only a few displaced workers would qualify for benefits at the time of displacement, for the parttime character of the employment that precedes the lay-off would leave little or no uncharged earnings upon which to claim unemployment benefits at the time of the lay-off. That is, the uncharged earnings in all probability would be exhausted before full unemployment set in. Even in those States which compensate 3 Yide supra pp. 34., 36, and 67. ctgar makers 1n July 1933. See a1so Appendix C tor weekly earnings or Digitized by Google SUMMARY AND CONCLUSIONS 75 only weeks of complete unemployment, the protection accorded the worker displaced by changes similar to those affecting these cigar workers will be decidedly limited. Although many will qualify for benefits at the time of displacement, the duration of unemployment before obtaining the new job will very probably greatly exceed the duration of benefits. The provision most usually encountered in unemployment compensation legislation allows the payment of benefits for a maximum of 16 weeks in 52. In our particular case, however, slightly more than one-fifth of the displaced cigar workers found employment within the first 4 months following displacement, 4 and about 70 percent were unemployed a minimum of 1 year. Therefore, unemployment insurance as administered by present statute would be grossly inadequate in circumstances such as these. For those aged 65 and over at the time of displacement, financial aid based on a means test isavailatle under the old-age assistance laws of the various States, and in 1942 monthly Federal old-age benefits become payable to workers who qualify. In our survey, however, only 7 percent of the 328 men had reached the pensionable or benefit age at the time of the lay-off. As displacement occurs in this industry in the future, a larger percentage will beof retirement age, since there has been virtually no recruiting of apprentices for hand work. The income from these sources would doubtless be a very helpful supplement to the savings of the group that has most difficulty in finding employment. But it appears that the majority of the workers in our survey, since they were below the pensionable age at the time of displacement, will be little affected by the Social Security measures for the aged. Those under the retirement age at the lay-off who are cnvered by the old-age insurance system may derive very restricted assistance when the benefits do become payable; forjuring the period of unemployment subsequent to the layoff there will be no taxable wage, and consequently there will be no accruals increasing the monthly benefit payments to be received. This may serve lo suggest the desirability of lowering the qualifying age for old-age benefits under circumstances illustrated by this case and the need for making some provisions for the continued accrual of earnings credit for old-age benefits by having either the former employer or the Government pay the 4 see taole 14, p. 36. Digitized by Google CIGAR MAKERS 76 worker's premium until he obtains either other employment or a pension. The question may also be raised of the desirability of regarding occupational immobility, created by the circu:nstances that have been considered here, as a form of disability compensable under a scheme of disability payments supplementary to our present Social Security Act. CONCLUSION - RESIDUAL RELIEF PROBLEM It seems that the results which might have been obtained through the various alternatives discussed do not differ appreciably from the results of the adjustments actually made. These results may be summarized as a lowered standard of living even for the one-half of the displaced workers who found some employment during a 5-year period, the exhaustion of the savings of all, and the dependence on the private charity of relatives and on public relief for a considerable portion, i.e., it has constituted a residual relief problem. Indications are that economic pressure is compelling the continuation of the recent and current trends in the industry and that such adjustment as may be possible must continue to depend upon social resources which lie largely outside the sphere of the industry. The adjustment discussed above may be regarded as typical of that which could be made by displaced hand workers generally throughout the cigar industry. The judgment is also ventured that similar results would attend the introd1Jction of any extremely labor-saving invention into an industry undergoing a secular decline in which the work had been performed by an industrially-aged group of artisans who have long followed a specialized skill. Digitized by Google APPENDIXES Digitized by Google Digitized by Google APFENDIX A A FEW CASE HISTORIES To help the reader visualize the men whom our study concerns, the following case histories have been appended. 1 The cases are representative of the chief groupings presented in the tables. Case 1 represents a characteristic "buckeye" owner of rather more than usual resourcefulness, Case a is one of those still following the trade who were receiving an adequate wage. Case 3 is typical of the group receiving public assistance. In case 4 we have a white blackbird, a cigar maker who has accomplished the successful transition to other equally remunerative work. Case 5 is typical of those who found employment after the depression began to lift, but employment of a less skilled and dead-end sort. Case 6 represents those who in spite of active search have held only casual and part-time jobs and are unemployed today. Case 7 is representative of men in the higher age brackets who have had practically no employment since the lay-off though actively in the labor market and who are ineligible for WPA because relatives can assist them. CASE 1 James Fontainbleau, a French-Canadian by birth, had 5 years of schooling and started to learn the trade at 1~. He is now 55 and has ~1 years of cigar making behind him, Married, he has lived in Manchester for 39 years. His first job was in Boston. Out of work there, he heard through other cigar makers of good conditions at the "7-20-~" plant and came to Manchester in 1898. His average output was 325 cigars daily, When the machines were installed in the Company's factory he rented the loft of an old building around the corner from the main street and acquired enough equipment for himself and two assistants. At first the response of the town to the "buckeye" shops was encouraging, and Mr. Fontainbleau, being early in the field, established a trade name and a list of customers. But as the number of "buckeye" shops increased steadily, the market became over1Tbe racts presented are true, out they bave been rearranged to so111e extent, and tlie names and places have Deen cbapged to prevent recoinltlon. 79 Digitized by Google 80 CIGAR MAKERS crowded in Manchester and its environs, with the result that selling became more and more difficult. He enlarged his field of selling, going many miles out of the city, but still the market fell off, and the small shops and saloons expected him to make purchases in return for handling his products. His men have been on part time, eking out a living by other employment, or forced to take WPA laboring work. nr. Fontainbleau himself has tried to find a cigar maker's job in the New England factories where hand work still obtains, but without success. He estimated his net income during 1936 as between 1.2 and 13 dollars per week. More time goes into distributing and collecting on his wares than into making them. His comment on the whole situation was "If I could get a job at $15 a week, I'd throw out my equipment tomorrow." CASE 2 Fred Van Loon is 53 years old and a native of Belgium. After 6 years of schooling he started work at the age of 12, helping to set type in a printing plant in Antwerp. At the end of a year he left to learn cigar making and after 3 more years came to the United States. From the time of learning the trade until the lay-off at the 11 7-20-4 11 plant in 1931, a period of 34 years, he was steadily em?loyed at cigar making. He came to the Company's factory 15 years ago from a shop in Philadelphia because his cousin who was employed in Manchester described the superior working conditions there. Immediately after the lay-off he found 2 months' employment during the Christmas rush in a neighboring cigar factory and then was without work for over a year. In the early part of 1932 he risked part of his savings in a shop of his own but lost money and at the end of 6 months gave it up. After another stretch of idleness lasting for a year, he took a job as a wool sorter in the Amoskeag mills in Manchester. Following 2 years of steady work he again found himself without employment when the textile mills closed in the summer of '35. There followed another 16 months of fruitless search, for there was no work to be had in Manchester for a man of his age and he lacked money to travel to more prosperous places. Through the good offices of a friend working in a cigar factory in Waterbury, Connecticut, he learned of an opening there and got the job in December 1936. His wife and two grandchildren are remaining in Digitized by Google APPENDIX A 81 Manchester until they know more of what the future holds for the head of the home. At the moment he may be regarded as a well-: paid cigar worker for his wages are between $17 and $18 a week. CASE 3 George Lederer was born in Germany 49 years ago. After 6 years of schooling he began work in a cigar factory at the age of 12 and within a few months went to work for his uncle as cigar maker. At the age of 25 he came to Boston, found work immediately, and was never without work at his trade until the lay-off at the 11 7-20-4 11 factory in 1931. He began work there in 1919 after other members of his family had preceded him and reported that wages were higher than in Boston. Since the lay-off he has found only unskilled work to do. For a year he "couldn I t buy a job" but in the fall of 1932 he was employed for 2 months cleaning stables on a dairy farm. He had to leave when the weather became too cold for him to sleep in the unheated barn. The following summer he had 3 months of part-time, intermittent employment mixing cement for a private construction company. Being out of funds, he then applied for re lief and became a wood chopper in the State woodyard for 10 months to pay for his groceries. Informed by a friend of an opening for cigar makers in a small factory in Vermont, he applied, got the job, and was occupied for 3 weeks. In the meantime he had lost his relief status and being single was unable to obtain emergency work again until 5 months had passed. Finally in December 1935, he was assigned to pick-and-shovel labor ona WPA highway repair project. Since that time he has been on relief, transferring from one project to another but always at unskilled labor. He was rejected for road-construction work by the Resettlement Administration following a doctor's examination but was returned to the same kind of work under WPA where he was working 3 days a week at the time of the survey, CASE 4 Thomas Ry all, 42 years old, was born in Mane hes ter and lived there all his life, He completed the seventh grade and started to work as a stock boy in the Company's factory at the age of Digitized by Google B.Z CIGAR MAKERS His father had been a cigar maker there before him, and the good wages and steady work were a source of much satisfaction to Thomas and his family. After 22 years of employment he was discharged in the last months of the tay-off. Three months of seeking work resulted in a laboring job with the city Department of Public Works. Within 7 months the job was completed, but he was successful in obtaining immediately a county position as assistant foreman in road building. After 4 months these jobs were designated for needy persons only and, as he was not eligible for relief, he was laid off again. But a city post of assistant commissioner fell vacant and he was appointed to the position after only 2 months of unemployment. He has held this position ever since, representing one of the very few cigar makers whose economic status is as good today as it was prior to 1931. 14, CASE 5 Johan Van der Bank was born in Amsterdam, Holland, but came with his parents to Manchester at the age of three and has lived there ever since. He is now 33 years old, His employment history was bounded by the walls of the Company's factory up to the time of the lay-off. He finished grammar school while still 13 and went to work when 14 years of age. His first job in the cigar factory was operating a banding machine, In 6 months he was promoted to stock clerk and continued as such for 2 years. At 17 he started making cigars. He had worked at this trade for 12 years up to January 1932. In the meantime, he had acquired a wife and 3 children and a home in Manchester. After leaving the "7-20-4" factory he was unemployed for nearly 3 years. During this period he sought work of any kind inall the industries in the city, He did not look for work outside, knowing he could not support his family at home and pay for room and board elsewhere at the wages obtainable during the depression. Finally in 193LI- he got work as a warehouse clerk in a shoe factory which went out of business s months later. Within a month after this lay-off he found an opening as chauffeur for a private family for whom he has worked ever since. Digitized by Google APPENDIX A 83 CASE 6 Augustus Boerr was born in Belgium 39 years ago. After 7 years he began making cigars at the age of 1q.. He worked for s years in the same factory in Ghent and then decided to try his fortune in America. Coming to Boston he found immediate employment at cigar making there. He had heard of the merits of the Company's factory and during a strike in the Boston factory he went to Manchester and applied for a job. He was accepted and did not return to Boston when thestrik~ ended. Laid off at the "7-20-q." plant in the fall of 1931 after 20 years at cigar making, he did not try to continue at his trade as there were no good jobs available. He sought work of any kind in the shoe shops in Manchester and in the textile mills at Nashua, Lowell, and Lawrence. He also applied at the Portsmouth Navy Yard and at the trucking companies in Boston and surrounding towns. These out-of-town searches were made possible through the kindness of friends who took him along in their cars when they were going to these places. In spite of all efforts, however, Mr. Boerr has been able to obtain during the summer months only casual work inadequate in character to support himself and family. From June to September during the first two summers he got part-time employment as a caddy on the public golf course in the environs of Manchester. In November 1933 he was placed in the CWA at laboring work. But within 3 months all nonrelief workers were dismissed. Four months later in June 193q. he was offered a job at road building in a neighboring State. He took the job after arranging for his wife and child to stay with relatives. When in November the work was discontinued for the winter, he returned to Manchester. After another winter of idleness he found work as a construction laborer with a building firm. This employment was part-time and lasted for only 7 months. He immediately found another job as a cement mixer with a roadbuilding contractor in a neighboring city but had worked only a month when the work was completed. That was in November 1936. Since then he has had no work. of school attendance CASE 7 Martin Eichhorn, 51, was born in Springfield, Massachusetts, and completed the grammar school. He started work as a roving Digitized by Google 84 CIGAR MAKERS boy in a cotton mill at the age of thirteen. His father was a friend of the foreman and got the job for him. After 3 years in the mill he decided to learn the cigar trade and got employment in a cigar factory there. For 17 years he worked in the factory but lost 1 to 3 months each year during the dull season. This continual loss of work finally prompted him in 1919 to seek an opening at the Company's plant. He knew of the favorable working conditions there and friends encouraged him. He was accepted and continued there until the lay-off. He had been a hand cigar maker for 30 years when the machines replaced him. Since that date in January 1932 he has had no employment with the exception of a few odd jobs each of less than a month's duration. He tried to get work at his trade in the cigar factories in Springfield by applying personally at the plants and writing to the union secretary but without any success. He also wrote to the overseers of several textile mills, but was told that he could not be given consideration in some of them because he resided outside the State. He believes his age has been the conditioning factor, but he is in good health and would take a job at $10 a week. He applied for WPA employment but was refused because his son, with whom he lives, is working in private industry. , Digitized by Google APPENDIX 8 DESCRIPTION OF PROCESSES 1 PRELIMINARY OPERATIONS Although cigars may be made by hand, by machine, or by a combination of both methods, the first steps in manufacture are the same in any case. The very first step is the assembly of the leaf tobacco. Cigar leaf is classified according to three general types - wrapper, binder, and filler,-although there is a substantial degree of alternative usewi thin each of these groups. Tobacco leaf comes to the cigar factories in bales. The bales are opened and spread out. The leaf is sorted and put in to proper condition for handling by moistening, generally by dipping it in clear water and allowing it to stand covered in trays for a day or two. If further curing is necessary, the leaf may be stored in bins for a period of from 1 to 6 weeks; otherwise it goes directly to the strippers or stemmers who remove the hard midvein of the leaf. From the stemming operation the leaf goes to the hand cigar maker or to the cigar-making machine. DESCRIPTION OF HAND MANUFACTURE OF CIGARS The simplest and earliest method of making a cigar is still in use in some shops, particularly those making higher priced cigars. It is referred to as the "out-and-out" method. The worker uses no tools except a knife with a curved blade and a board on which to work. The worker cuts a thin strip from a wrapper leaf, another from a binder, and selects the right amount of filler, which may be composed of long leaves, short leaves, or scraps of tobacco leaves. (See figure 8.) He then fashions the filler into proper form and size in the palm of his hand and wraps it in the strip of binder, making the "bunch." (See figures 6 and 9.) This is then placed on the strip of wrapper which lies flat on the board, and with a deft rolling movement theworker fashions the cigar, beginning 1Adapted Crom an unpuollshed report on the cigar manufacturing Industry prepared oy w. D. Evans under the supervision or w. H. Dillingham or the National Research ProJect. 86 Digitized by Google CIGAR MAKERS 86 at the lighting end and finishing at the end which goes into the mouth, called the "head." It is necessary to trim the wrapper a trifle just before the head is formed; then, with a bit of gum tragacanth, the last bit of wrapper is fastened securely, and the head is smoothed between the thumb and forefin 5er. (See figure 10.) The cigar is then put in a gauge which stands on the table in front of the worker and is trimmed to the proper length. This "out-and-out" method of cigar making prevailed generally until the introduction of the mold in 1869. The mold isa wooden block with cigar-shaped grooves carved in it, generally fifteen in number. Bunches of leaves are placed in these grooves, a duplicate block is placed on top, and the two are put under pressure for a few minutes. (See figures 6, 8, 9, and 10.) The blocks are then separated and the bunches are ready for wrapping. Several decades after the mold came into use, the suctiontable was introduced. Th is consists of a metal sheet with a perforated plate in the center, the plate being just the right size and shape for the cigar wrapper. The wrapper leaf is placed on the plate and held down firmly by air sucked through the perforations. A foot pedal raises the plate, and a roller is passed over it, cutting the leaf on the plate's sharp edges. Although the mold and the suction-table changed the cigar maker's trade considerably, these devices probably should be considered tools rather than machines. Their use increased efficiency in manufacture but tended to su~plement the skill of the hand cigar maker rather than to perform automatically any of the required operations. DESCRIPTION OF COMBINATION HAND AND MACHINE M~~UFACTURE OF CIGARS About 1900 a machine was introduced which made short-filler bunches automatically. This machine, known as the automatic shortfiller bunching machine, requires no labor other than that necessary to feed the hopper with filler and to place the binders. These operations can be performed by unskilled labor. The bunches, delivered in molds, are wrapped by hand. A significant but undetermined proportion of the cheaper short-filler cigars are made by this method. Digitized by Google APPENDIX B 87 DESCRIPTION OF !tACHINE MANUFACTURE OF CIGARS Although the automatic short-filler bunching machine reduced labor costs to some extent, the most expensive operation in the manufacture of cigars, wrapping, was still performed by hand. It was not until 1917, when a machine was patented which performed both the binding and wrapping operations and turned out a finished cigar comparable with the hand-made article, that the superiority of the hand-made product was seriously threatened. This machine, the automatic long-filler cigar machine, requires four operators (see figure 31: one to place the filler onan endless feed belt; a second to place the binder leaf on the binder die; a third to place the wrapper leaf on the wrapper die; and a fourth to "catch" and inspect the finished cigar. The machine performs the operations of the hand cigar maker mechanically. Knives cut the filler to the proper length, corrugated rollers compress it and pass it to the apportioning knives where just the right amount of filler is cutoff to make a bunch. The bunch is tapered and rolled in the binder, and then passed to the wrapper, spirally wound, formed, sealed, and clipped to the right length. The head end is smoothed by a knurler, and the cigar is dropped on a table for inspection. 2 The scrap-filler cigar is made by a two-operator machine (see figure 11): one operator places the binder leaf on the binder die and the other places the wrapper leaf on the wrapper die and inspects. The only major variation in procedure is in the processing of the bunch. Instead of a knife to cut the filler to the proper length, there is a balance to weigh out the proper amount of scrap as it comes from the hopper. SUBSEQUENT OPERATIONS Subsequent operations are similar, bywhatever method the cigars may have been made. The cigars are inspected, and then may be banded and boxed by hand or may go to a banding and wrapping machine. This machine, requiring one operator, automatically bands the cigars and wraps them in cellophane. The operator of the machine then usually packs the cigars by hand. 2 A more detailed descrlptlon or the operation or the long-rtller c1gar-111a1tlng uch1ne ls ,1ven 1n •Technologlcsl Changes ln the Clgar Industry and Their Errects on Laoor,• Nonthly Labor Revie~, 33, No. e (Dec. 1931), 11-13, Digitized by Google APPENDIX C WEEKLY EARNINGS OF CIGAR WORKERS The data presented in this appendix are for July 1933. These data are based on a special survey of labor in the cigar-manufacturing industry made for the National Recovery Administration by the United States Department of Commerce, Bureau of the Census. The survey covered, as of July 1, 1933, all manufacturers making $5,000 or more worth of products per year. The earnings data summarized in tables C-1 and C-2 relate only to individuals whowere paid on a piece-work basis. Pieceworkers in the cigar industry predominantly are employed directly on the "making" operation. The columns, "low" and "high", represent averages of minimum and maximum rates of weekly earnings, re- Table C-1.- AVERAGE EARNINGS PER WEEK. BY CLASSES OF CIGARS PRODUCED IN THE UNITED STATES July 1933& Machine work Hand work Class of Women Men Women cigarsb Low High Low High High Low Class "A" $11.86 $14-13 $ 8.90 $11,60 $10.71 $13.e2 Class "B" 15.26 16.78 11.11 13.57 9.75 10.89 Class "C" 16.92 19.66 12.34 15.34 13.77 14.76 Class "D" 20.71 22.11 15.22 18.07 ( C) (c) Class "E" 21.89 25.58 18.64 24.64 ( C) (c) &The Tobacco Study (U. S. Dept. Com., National Recovery Adnlinistration, Division or Review, mimeo. report, Mar. 1836), pp. 168-60. bc1ass •A• cigars manuractured Class •B• cigars manuractured more thane cents each. Class •c• cigars manuractured more tnan 16 cents eacn. Class •D• cigars manuractured more than 20 cents eacn. Class •E• cigars manuractured to retail at not more than 5 cents each. to retail at more than 5 cents each and not to retail at more than e cents each and not to retaU at more than 15 cents each and not to retail at more than 00 cents each. cNo machine work on this class or cigar. 88 Digitized by Google APPENDIX C 89 Table C-2.- AVERAGE EAIUHNGS PER WEEK, BY STATES, OF WORKERS ON CLASS •A• CIGARS July 1933a Machine work Hand work St.at.e Men Low Women Women High Low High Low High u. s. b $11,86 $14, 13 $ 8,90 $11,60 $10.71 $13,62 Calif. Colo. Conn. Fla. 11.20 12,67 16.02 9.66 13.19 12.67 18.27 12.07 10.60 n.a. n.a. 8.67 12,37 n. a. n.a. 11.19 10.00 n. a. n. a. 9,97 10.00 n. a. n. a. 12.57 Ga, Ill. Ind. Iowa 5,08 14,80 13,81 11.50 9,25 15,63 14.39 14.00 5.45 ll.25 9.47 9.76 7.85 12.17 9,83 14.42 !cl !cl 12.00 10.50 22.00 12.00 11.50 28.00 La. Maine Md, 13,50 17,52 10.47 16.64 8.08 n. a. 11. 37 10.53 10.99 n. a. 12.eo Mass. 11.66 15,33 8,73 15.94 12.10 10.87 Mich, Minn. Ho. N. J. 15.61 14,21 13.29 13,30 16,07 16.97 14.45 18.41 9,79 10.50 7.80 9.79 N. Y. 14, 13 9,47 7.79 14.93 16,53 11.33 11.36 15,04 15.22 16,19 Ohio Pa, w. Va. Wis, 9.29 n. a. (cl n. a. (c J 15.02 16.60 13. 10 11.67 10.07 11.69 10.08 14.32 (c J (cl (cl (cl 10,70 14,81 12.00 7.60 7.50 n.a. 15,82 9.67 11,23. n. a. 12.53 9,03 9.64 n. a. 15,49 10.77 13,67 n. a. 16,09 16.09 (cl (Cl afhe tobacco Stvdy (U. a. Dept. Com., Nat1onal Recovery Ada1n1atrat1on, D1V1s1on or Rev1ew, mimeo. report, Har. 19381, pp. 183-4. bincludes States not 11ated in the stub to avoid diac1os1n1 data ror an 1nd1V1dual eataD11shlllent. cNo data obtained. n.a.Data not ava1lable. Data are not shown to avoid d1aelosin& 1nroraat1on ror an 1nd1V1dual establishllent. Digitized by Google 90 CIGAR MAKERS spectively. The returns for all classes of cigars ( table C-1 I covered total numbers of piece workers as follows: 8,422 male hand workers, 18,518 female hand workers, and 11,978 female machine workers. 1 For more recent data on earnings, not grouped by classes of cigars, see Nonthly Labor Review for April 1937. 2 1 r1ie fobacco St1Jdy (U. 8. Dept. Com., National Recovery Administration, D1v1s1on or Revtew, 111meo. report, Har. 1836), p. 160. Not Included In tnese tabulations are returns tor 1,381 women and 405 men wno ~erecomDlnatton hand and 11acn1ne piece workers. It ts notao1e that the survey round a total or only 23 male machine operators In the country. Tnese l11tew1se are eJCcluded trom tne tables or AppendlJ: c. Tne weekly earnings or those or the 23 men wno worked on Class •A• cigars ranged trom $14.0l (average low) to $t?.g4 (average high). or the 23 men, 16 were employe1 In E·1orlda. (These details on the 23 men were ootatned trom National Recovery Admlnlstratton r11e material by w. D. Evans and used 1n a.n unpublished report on the cigar manurac~urlng Industry prepared tor the National Research ProJect under the supervision or w. H. Dillingham.) 2 •i:arnlnl!'.s and Hours In Cigar Industry, Haren 11136, • Nontli!y Labor Review, 44, No. 4 (Apr. 1837), 863-68. Digitized by Google APPENDIX D SCHEDULE AND EXPLANATION OF TERMS USED IN THE SCHEDULE The occupational history schedule, NRP Form #20, shown on page 93, was used fort he survey. Certain terms on the schedule which are not self-explanatory are defined below: Age is the age on last birthday. Years in City were calculated from the beginning date of the most recent period of continuous residence in the community. Absences of 6 months or less were not counted. Employment History: The employment data were divided into the first job, the longest job, and all jobs between 1926 and February 1, 1937, the date of the survey. This last section called for a chronological record of changes in employment status, the character of employment , and the kind of work performed. The i nformat ion was entered in this section by beginning with the person's employment status at the time of the interview and working back in chronological order to January 1, 1926. A job was defined as gainful employment lasting for 1 month or more in an occupation with a single employer. 1 Periods of employment or unemployment of less than 1 month's duration were not entered. Unpaid apprenticeships were not considered as jobs. Self-employment and ownership were distinguished and included those usually self-employed, or doing contract or specialized work, or owning the establishment. The character of employment was deternii ned and classified into regular, casual or intermittent work in private industry, selfemployment, emergency work, or unemployment. Full time and part timewerealso distinguished. Part-time work was defined as less than 30 hours a week. The designation of "casual" work was reserved for jobs in occupations or industries in which work is ordinarily contracted for by the hour or by the day, such as domestic service by day workers, "odd jobs" by laborers, or loads hauled by truck drivers. Intermittent employment was applied to the service of persons constituting "spare hands" or "contingent crews" on call for a particular employer or extra crews 1For exception to work w1tb a slngle employer, see de!1n1t1on ror casual or intermittent employment. 91 Digitized by Google 92 CIGAR MAKERS hired to complete orders in the "rush" period in industries which ordinarily offered regular rather than casual employment. Casual and intermittent employment were recorded regardless of the number of employers involved in each period of a month or more. The industrial classifications were based on those in the United States Census. The tables in the report are constructed to conform to the industries and occupations found to be important in the locale of this study. Unemployment, to be recorded, was likewise of a month's duration or more. Unemployment was divided into unemployment seeking work and unemployment not seeking work. Employment status was determined according to whether or not the person had a job on the day the enumerator visited the house. If a man was employed at the time even though he was looking for another or an additional job, he was not regarded as seeking work. If the person was not seeking work during any month of the period between 1926 and the date of the survey, the reason for not seeking work was entered. Possible reasons were: out on strike, temporarily disabled (sick for over 1month but under 1 year without payl, permanently disabled (illness of 1 year or morel, retired persons living on income or pension, persons 65 and over who have not worked in the lasts years, and those who consider themselves or are considered by their relatives as too old to work. Unemployment History: Emerfency Work: Emergency work was used as an inclusive term to cover all forms of government-made work, whether city, State, or federal. If it was of more than 1 month's duration, it was entered, regardless of the number of hours employed per week. scmmuu: usED A facsimile of the schedule used, NRP Form following page. 1120, appears on the Digitized by Google APPE ND IX D f ~ i, ! ll ~ - I 93 I l! ~ i : L :~;~ I! : -u :a p 0 J i i" ! a v 3 !I I ! ~ 'i 1 I ◄ ii ! i~ = ;: , ;• ?I z g... ~ ~ . l i I I :; - I . :': I e C - II: z !i I I I I ~ ! i ! i, It ~ ! -.~•e II . 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