View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

COLLECTIVE BARGAINING PROVISIONS
Wage Adjustment Plans

Bulletin No. 908-9
UNITED STATES DEPARTMENT OF LABOR
L. B. S c h w e l l e n b a c h , Secretary




BUREAU OF LABOR STATISTICS
E w a n C l a g u e , Commissioner

Letter of Transmittal
U nited States D epartment op L abor,
B ureau of L abor Statistics ,

Washington, D. 0., May 14, 1948.
T he Secretary

of

L abor :

I Have the honor to transmit herewith the ninth bulletin in the series on
collective bargaining provisions. The bulletin deals with wage adjustment plans,
and is based on an examination of collective bargaining agreements on file in
the Bureau. This bulletin was prepared by, and under the direction of, Abraham
Weiss and by Eleanor R. Lehrer of the Bureau’s Division of Industrial Relations,
Boris Stern, Chief.
E w an Claque, Commissioner.
Hon. L. B. Schw elienbach ,
Secretwy of Labor.

UNITED STATES GOVERNMENT PRINTING OFFICE, WASHINGTON 25, D. C.

For sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C.
Price 20 cents




Preface
As early as 1902 the Bureau o f Labor Statistics, then the Bureau o f
Labor in the Department o f the Interior, recognized the growing
importance o f collective bargaining, and published verbatim the bitu­
minous coal mining agreement o f 1902 between the Associations o f
Coal Mine Operators o f Pennsylvania, Ohio, Indiana, and Illinois and
the respective districts o f the United Mine Workers o f America.
Since 1912 the Bureau has made a systematic effort to collect agree­
ments between labor and management in the leading industries and
has from time to time published some o f those agreements in full or
in summary form in the Monthly Labor Review.
The first bulletin entirely devoted to collective bargaining agree­
ments was published in 1925 under the title “Trade Agreements in 1923
and 1924.” Similar annual bulletins were published in 1926, 1927,
and 1928. These bulletins analyzed only outstanding agreements af­
fecting certain industries and certain skilled crafts in which collective
bargaining has followed a more or less established pattern.
No bulletins in this field were published by the Bureau between
1928 and 1942—a period during which collective bargaining first lost
ground in the depression and then made rapid strides follow ing the
enactment o f the National Labor Relations Act in 1935. The growth
in trade-union membership from fewer than 4,000,000 workers in 1935
to more than 10,000,000 in 1942 not only resulted in a large increase
in the number o f collective agreements covering industries hitherto
not included under collective bargaining, but also extended the scope
and area o f bargaining in individual industries. In recognition o f
this development, the Bureau’s 1942 report on union agreements (Bul­
letin No. 686) dealt with provisions and clauses on particular labormanagement problems rather than with the agreements o f each union
or industry separately.
The substance and character o f collective bargaining agreements
change continuously, and many o f the clauses and provisions covered
in Bulletin No. 686 underwent significant changes during the war
emergency, as a result not only o f the normal processes o f collective
bargaining but o f the decisions o f the National W ar Labor Board.
New problems meant new clauses and new provisions. The Board
also gave added impetus to certain forms o f union security, and to cer­
tain practices, now deeply imbedded in the entire field o f labor-manage­
ment relations.
The liquidation o f the Board, and the renewal o f emphasis on free
collective bargaining after VJ-day, led £o a tremendous increase in




in

PREFACE

IV

the demand for information on specific current provisions in agree­
ments. Urgent requests came from employers and unions, from the
United States Conciliation Service, and from mediators and arbi­
trators engaged in settling or preventing labor-management disputes.
It was largely in response to these requests that the Bureau o f Labor
Statistics undertook to revise and bring up to date the material on
union agreements.
In this revision two significant departures have been made: (1)
Accumulation o f data has made possible the use o f a larger sample
than was possible heretofore. (2) The information will be presented
in a series o f small bulletins, each stressing a major area or significant
problem o f collective bargaining. This will permit the material for
each major problem to be published as rapidly as finished without
waiting until all o f the subjects o f collective bargaining are analyzed.
It will have the advantage of greater flexibility in handling specific
requests for material from employers, unions, and the public. Some
clauses are more or less stable and undergo relatively minor changes
even over a considerable period o f time and therefore need only oc­
casional revision, whereas others undergo rather rapid change. Also,
as new issues develop it will be possible to add new bulletins to the
series without revising those already published.
The clauses used are designed to facilitate, but not to condition,
the bargaining process. No special attempt has been made to de­
termine the prevailing industry practice or the most frequently used
provisions. The clauses are presented, not as models, but as a source
o f reference for those who participate in collective bargaining negotia­
tions, by making available to them a wide variety o f provisions on
the specific subjects under consideration. An index o f all the contract
clauses quoted, with a brief description o f each clause, is appended
to each report.
This report, dealing with wage adjustment plans, is the ninth in
this Collective Bargaining Provisions series. The bulletins already
published are as follow s:
No. 908-1
No. 908-2
No. 908-3
No. 908-4
No. 908-5
No. 908-6
No. 908-7
No. 908-8



Union Security Provisions.
Vacations; Holidays and Week-End Work.
Incentive Wage Provisions; Time Studies and
Standards o f Production.
Apprentices and Learners.
Discharges, Discipline, and Quits and Dismissal Pay
Provisions.
Leave o f Absence and Military Service Leave.
Promotion,# Transfer, and Assignment; Lay-Off,
W ork-Sharing, and Reemployment.
General W age Provisions.

Contents
Page

Introduction___________________________________________________________
Adjustment of individual wage rates during term of agreement__________
General permissive adjustment of individual rates: Clauses 1-13____
Adjustment of intra-plant inequities or inequalities: Clauses 14-21__
Wage progression plans-----------------------------------------------------------------Merit plans: Clauses 22-37____________________________________
Automatic progression plans: Clauses 38-52____________________
Combination automatic and merit progression: Clauses 53-59___
Adjustment of general wage level during term of agreement_____________
Permissive wage adjustment plans_________________________________
General wage reopening clauses: Clauses 60-74_________________
Wage reopening based on specific factors_______________
Changes in cost of living: Clauses 75-87___________________
Changes in Government wage or price policy: Clauses 88-95_
Changes in general economic conditions or company’s com­
petitive position: Clauses 96-104_________ ^_____________
Changes in industry or area wage levels: Clauses 105-112...
Reduction in workweek: Clauses 113-116__________________
Changes in price of product: Clauses 117-120______________
Status of agreement if parties fail to agree on wage adjustment:
Clauses 121-134.....................................................................
Automatic wage adjustment plans_________________________________
Automatic adjustments based on cost of living: Clauses 135-143.
Automatic adjustments based on prevailing industry or area wages
Clauses 144r-155_______________________________
Automatic adjustments based on reduction in workweek or change
in minimum wages: Clauses 156-161_________________________
Automatic adjustments based on price of product: Clauses 162165......................
Combination permissive and automatic plans: Clauses 166-167______
Cost-of-living bonus: Clauses 168-173______________________________
Bonus plans_______________________________________________________
Christmas and continuous service bonus plans: Clauses 174-196.
Attendance bonus plans: Clauses 197-202______________________
Production, sales, and other bonus plans: Clauses 203-214______
Profit-sharing: Clauses 2 1 5 - 2 3 2 .________
Index_____________________________________________________________




v

1
1
2
4
6
7
12
15
18
20
20
22
22
25
26
28
29
30
31
35
35
38
40
41
42
44
46
47
51
52
57
67




Bulletin T^o. 908-9 o f the
United States Bureau o f Labor Statistics

Collective Bargaining Provisions
Wage Adjustment Plans
Introduction
Wage adjustments, whether applied to individual workers, to em­
ployees in a particular job classification, or to a plant as a whole, are
often provided for in union agreements. Where authorized or re­
quired, wage adjustments may be made on one or several o f the follow ­
ing bases: length o f service; m erit; cost-of-living change; promotion
or reclassification; going job rates in the area; company profits; or
other specific economic factors. Wage changes based on such factors
as cost o f living, general economic conditions, industry or area wage
changes, are general in character and affect the plant as a whole. The
other factors account for wage adjustments to individuals or to groups
o f employees within a given job classification.

Adjustment o f Individual Wage Rates During
Term o f Agreement
Union agreements frequently provide for the adjustment of wage
rates paid to individual employees without affecting the basic occupa­
tional wage scales. Such provisions may be general in character,
permitting the employer to adjust individual rates, or may specifically
spell out a schedule for such increases. Systematized schedules have
been evolved as a means o f compensating individual employees in
proportion to the value o f their services to their employer, and in this
respect perform somewhat the same purpose as a piecework or wageincentive plan. In addition, such plans have the merit o f encouraging
long service and o f reducing turn-over. In effect, systematic indi­
vidual wage adjustment plans standardize the practice o f paying
several different rates to workers in the same occupation or on the same
job.
In such plans, a minimum starting wage rate and a maximum top
rate are set. Advancement from the minimum to the maximum rate
is determined by a definite schedule of progression. Pay raises within
the rate range constitute individual increases in contrast with a general
wage level rise which affects the scales for the various job classifica­




1

2

COLLECTIVE BARGAINING PROVISIONS

tions. Progression within a job classification range may be on the
basis o f merit alone, automatic length-of-service increments, or some
combination o f both.
General Permissive Adjustment of Individual Rates
Some agreements provide for individual wage adjustments on the
employer’s initiative or the union’s request without affecting the rates
o f other employees. Still others make no specific provision for indi­
vidual wage changes but state that the employer reserves the right to
give increases to deserving workers. The employer may be required to
notify the union or secure union approval before increasing a single
employee’s wages without raising wages o f all employees in the same
classification. In a few instances, individual wage decreases are
barred, except by mutual consent of the parties.
1. Employer May Make Individual Wage Adjustments if Warranted
Nothing contained herein shall prevent the company from changing the status
of employees within established job classifications from time to time where war­
ranted or from making individual wage adjustments from time to time where
warranted in cases where job classifications have not been established.
2. Employer Pledge to Acknowledge Merit T y Granting Merit Increases
>
The employer will continue his policy to regard minimum wage rates as
minimums and to acknowledge individual merit by raises above the minimums.
3. Union May Request Individual Adjustment
The employer may make, and/or the union request, individual adjustments in
wages at any time during the life of this contract.
4. Union May Request Adjustment; Procedure Outlined
The union may at any time request an adjustment, effective as of a date not
earlier than the date of such request, in the rate of pay for any individual job to
compensate employees for increases in skill required, responsibility involved,
effort and job conditions required in the performance of the job. Such requests
for adjustments shall be presented to the employer in writing. On all such
requests, the following procedure will be used in order set forth :
1. Representatives of both the union and the employer will review the
job specifications, requirements, and conditions.
2. If the parties do not agree, each may then restudy and analyze the
particular job, and the resulting data exchanged and reviewed by both
parties.
3. If, after 20 days from the date of the written request, an agreement is
not reached on the proposed adjustment, the lack o f such agreement shall
be considered a dispute and shall be submitted to arbitration in accordance
with the provisions of. article — o f the agreement.
5. Individual Increase hy Mutual Consent When Jot Duties Increased
During the life of this agreement, the company and the union may mutually
agree upon additional pay for any particular employee when his duties are
materially changed beyond those set out in the wage schedule.




WAGE ADJUSTMENT t>LANS

a

6. Joint Consideration to Rates for Exceptional Employees
Rates for employees with exceptional ability in their class of work will be
given special consideration by the union committee and management.
7. Individual Increase Allowed Only by Mutual Consent or Arbitration Award
No increase shall be granted to any employee unless such increase is mutually
agreed to by company and the union, or if said increase is awarded through the
decision of an arbitrator.
8. Union Approval for Merit Increase
Merit increases in excess of the above rates shall be administered by the
company after submitting same to the executive shop committee for approval.
9. Notification to Union of Individual Wage Adjustments
The company may at its discretion increase wages in any class or to an
individual in any class without necessitating a change in the rate of any other
individual or class. The union shall be notified of any such changes.
10. All Employees in Classification to Receive Some Increase Granted to Indi­
vidual Already Receiving Top Rate
After the signing of this agreement no increase shall be granted to any employee
receiving the top rate in a classification in any department unless the same rate
of increase is granted to all employees in the same class and type of service in
such department.
11. No Individual Increase Without Equal Grant to All Employees in Classifica­
tion, Unless Union Agrees Otherwise
No increase shall be granted to any employee in any department unless the
same rate of increase is granted to all employees in the same class, and type
of service in such departments, except with the approval of the executive shop
committee.
12. Individual Merit Rates No Cause for Changing Base Rates
The employers reserve the right to pay additional or premium wages under any
particular classification in recognition of experience, willingness, and efficiency,
but such premium wages for such job shall not be considered as changing the
base pay for that job.
13. Merit Rates Based on Merit Survey Not To Be Used as Basis for Future
Minima
It is clearly understood by the [employer] and the [union] that the attached
schedule of minimum wages is not to be regarded as a wage scale intended to fix
the weekly salary of every employee. On the contrary, it is understood by the
[employer] that this schedule represents merely the minimum standards of
compensation in the various classifications below which the [employer] shall
not go. The [employer] recognizes that individual merit and responsibility
shall be considered for reward. The [employer] agrees to conduct a survey to
establish individual wages in keeping with relative merit and responsibility,
such survey to be made by each department separately and need not be made
at the same time. Such survey shall be completed and any resulting increases
made effective not later than 6 months from the date of this agreement. The
[union] agrees on its part, that wages above the minima may be paid without
incurring obligation by the [employer] to consider such wages as a basis for
future minima. Furthermore, the [union] and the [employer] agree that such
raises when made shall be on a basis of relative merit and responsibility without
791532°— 48------ 2




4

COLLECTIVE BARGAINING PROVISIONS

reclassification of the employee, except where such reclassification results from
duties actually performed.

Adjustment of Intra-Plant Inequities or Inequalities
Negotiations to eliminate alleged intra-plant inequities or inequali­
ties are sometimes specifically provided. Inequalities involve rates
or classifications among employees doing the same class o f work, or
rates out o f line with those for similar skills in other classifications.
Other agreements do not specifically mention “ inequalities” but con­
tain provisions which can be interpreted as designed to eliminate
inequalities. Some o f these refer to adjustments to bring individual
rates into proper relationship with the general wage schedule or to
eliminate unfair conditions or inconsistencies in wage rates; others
state that employees doing the same work shall receive the same pay.
Most o f the agreements which provide for the adjustment o f indi­
vidual wage inequalities do not specifically outline the procedural
steps in handling disputes arising over such questions. These negoti­
ations may be handled through the regular grievance procedure, or
through special machinery set up solely for the correction o f inequities.
They may specifically call for arbitration as a final method or exclude
it. In addition, some agreements provide for negotiations to correct
individual wage rates not in line with those prevailing in the particular
area.
14. Claims of Inequalities Subject to Arbitration
If the wage rates being paid to any employee or group of employees are in­
equitable, they shall be increased in accordance with the procedure set forth
in clause—of this agreement [grievance and arbitration procedure].
Same or similar jobs shall receive same or similar pay and inequalities which
exist shall be adjusted under clause—of this agreement.
15. Inequality Disputes Excluded from Arbitration
In the event the company or the union or any employee makes claim that any
individual wage rate set forth in annex A represents an inequality, this agreement
shall open up solely for the negotiation of an increase or decrease in such rate.
It is specifically recognized by the parties to this agreement that the negotia­
tions referred to in this article shall not be subject to the arbitration provisions
of this agreement
16. Special Rate Review Procedure; Final Decision by Employer
The union shall have the right to bring to the attention of management any
alleged inequalities of classification or individual wage rates, which shall be
reviewed in accordance with the rate review procedure outlined [below].
The various steps in the procedure for handling requests for review of alleged
inequalities in individual hourly rates or incentive rates shall be as follow s:
(a)
The employe shall present his request directly to his foreman. But
he may request his foreman to send for the steward of his department for the
purpose (1) of discussing his request with him prior to presentation to his
foreman, and (2) of presenting the request. No other union representative



WAGE ADJUSTMENT PLANS

5

shall participate in su* h conference. The foreman shall send for such steward,
who, before absenting himself from his job, shall fill out and hand to the foreman
a written request for such leave of absence on form MS-100. The employe shall
be present at the time the request is presented to the foreman.
(b) I f the matter is not adjusted to the satisfaction of the employee within
48 hours after presentation of the request to the foreman, then the employee may
fill out a rate review request, form MS-09, and forward such form? to the company
review committee for discussion at convenient times fixed by such committee
during working hours or at the end of the first shift. The employe may request
his foreman to send for the steward of his department (in the manner provided
in paragraph — ), (1) for the purpose of assisting him in filling out the rate review
request form, and (2) for the purpose o f participating in the discussion, at which
the employe shall be present.
(c) If the request is not adjusted to the satisfaction of the employe within
1 week after the forwarding of the rate review request form to the company
review committee, then the chief steward may request a meeting with the man­
agement committee (or representatives thereof) for the purpose o f discussing
designated rate review request. Only the chief steward, department steward
and affected employe may be present at this meeting. Following a review and
discussion of the requested rates as provided herein in case an agreement cannot
be reached, the decision of the management committee shall prevail.
17. Consideration of Ability in Settling Inequality Claims
Where alleged inequality in individual wage rate prevails, the matter may
be taken up for adjustment and settlement made on an equitable basis, ability
and skill receiving due consideration.
18. Semi-Automatic Elimination of Differential for Similar Jobs
If work is being performed by an employe that is equal to the same work
being performed at a higher rate within the company, the employe performing
the job at the lower rate shall be brought by an automatic step to the midpoint
of the range as follow s:
Seven cents at the end of 60 days. Raises from the mid-point of the range
to the top of the range will be made on a merit basis, provided that the quality
of production or work performed is equal to that of the employe receiving the
higher rate of pay.
19. Wage Inequality Adjustments Effective as of Date of Settlement
When alleged inequalities in rates prevail, the matter may be taken up for
plant adjustment and settlement made on a mutually satisfactory basis, but
the new rate shall not be retroactive and shall only take effect after it has been
mutually agreed on.
20. Wage Inequality Claims Retroactive to Date Mutually Agreed on or SO Days
A fter Original Request
In the event that either party hereto feels that any standard wage classifica­
tions or rates are incorrect by comparison with the general wage level of standard
wage classifications or rates in the plant it may, by written notice, signify its
desire that such wage classifications or rates be changed and the matter shall
then be negotiated. If as a result of consideration of such notice it is determined
by negotiation or arbitration that any standard wage classifications or rates
should be changed, then such wage classifications or rates shall be adjusted and
the revised wage classifications or rates shall become the standard wage classifi­
cations or rates in place of those formerly in effect. Payment on revised basis
shall start on a date mutually agreed upon, or if date cannot be agreed upon,



6

COLLECTIVE BARGAINING PROVISIONS

shall become effective 80 days after written notice was served by complaining
party that change was desired.
21. Claims of Inequity Banned Unless Job Content Increases Substantially
The job classifications and wage scales shown in appendix A, attached hereto,
represent the equitable and proper wage rate relationship for all the said classi­
fications. Accordingly, it is agreed that no basis shall exist for an employee
whether paid on an incentive or a nonincentive basis, to allege that an incentive
base rate inequity exists or a nonincentive wage rate inequity exists and no griev­
ance on behalf of an employee alleging a wage rate inequity shall be filed or
processed during the term of this agreement, unless there subsequently is a sub­
stantial increase in job content or requirements over that existing on the effective
date of this agreement.

W age Progression Plans
Some plants operate on the basis o f single or flat rates, so that every
worker in a job classification receives the same rate o f pay. Other
plants have so-called spread rates or wage progression plans with d if­
ferentials within the same job classification, and a definite sliding scale
whereby workers advance from the minimum to the maximum. In a
third group o f plants, some jobs carry a single rate, and others a rate
range.
Wage progression plans are designed to reward employees for their
increasing skills and abilities or for length o f service (with consequent
savings to employers in the cost of labor turn-over) or some combina­
tion o f these. The plans may differ not only as to the basis for pro­
gression from minimum to maximum, but as to spread o f the progres­
sion, the speed o f the progression, and the increment at each step.
Wage-rate increases in progression plans may be automatically set
in accord with length o f service alone, or may be based entirely on
merit criteria or on some combination o f both. Under automatic in­
grade wage progressions based on length o f service, each worker re­
ceives automatic increments until he attains the maximum o f the job
rate range within a given period o f time,1 Under merit progression
systems, a worker’s progress within the rate range for his job is deter­
mined by management, on the basis o f periodic reviews o f his work and
efficiency. A merit increase, in the strict sense o f the term, applies only
to the individual worker and not to the job or group o f workers. Some
plants combine both automatic and merit progression for certain job
classifications.
Employers generally claim the right to grant increases solely on
merit basis. Many o f them are willing to make such adjustments
within certain rate ranges on the condition that they alone determine
the amounts granted, and oftentimes the periods at which merit in-1
1 A utom atic progression plans are to be differentiated from so-called learner's starting,
or hiring-in rates, which represent the rates paid to a new, inexperienced worker fo r a given
period before he is advanced to the job rate i f it is a single rate job, or to the minimum
of the rate range in a progression plan.




WAGE ADJUSTMENT PLANS

7

creases should be granted. They maintain that the awarding or denial
o f a merit increase lies within their own discretion and within their
responsibility. According to management, substitution o f automatic
length o f service increases for merit raises in a wage progression plan
means loss o f incentive for workers to increase their efficiency. Since
rate ranges imply differences in competence, skill, and ability o f indi­
vidual workers, such factors should alone determine in-grade adjust­
ments. Moreover, differences in individual ability and efficiency are
not ironed out by time. Some employers prefer length o f service
schedules because they mean less administrative effort and respon­
sibility in the handling o f individual increases.
Unions generally prefer automatic progression based both on length
o f service and on additional skill acquired through experience.
According to the union, any man who is allowed to keep his job has
to meet certain standards and his wage scale should be determined by
length o f service. Merit rating, they contend, is too personal and may
become discriminatory and a source o f justified dissatisfaction, or lead
to favoritism and to speed-up through employee competition. Some
unions, however, accept plans for individual merit increases for
greater effort and superior abilities.
Merit Plans

Agreements with merit increase plans provide that an employee
progresses within the rate range for his job on the basis of merit alone,
i. e., his individual ability and increasing technical proficiency. Very
often, such agreements provide for reviews o f employees’ qualifications
every 3,4, or 6 months to determine who should be granted an increase.
In some instances, there are no regular rate review periods, but each
employee may file a request for a merit raise at any time. The inter­
vals for merit reviews, the parties to the review (whether management
alone or management and union join tly ), and the amount o f increase
may be outlined in the agreement. Some agreements also specify the
actual method or standards to be followed in determining an em­
ployee’s eligibility for a merit increase.
Management generally has full discretion in granting or withhold­
ing merit increases. In rare instances, however, agreements provide
for a joint union-management committee for reviewing employee
records. Sometimes the union has the right to negotiate the standards
which are to govern the granting of merit increases without, however,
participating in the initial application o f these standards in the case
o f each individual employee. Management’s recommendations or
decisions may be submitted in advance to the union and quite often
the union (or employee involved) is permitted to appeal management’s
action through grievance procedure. I f an increase is withheld, the



8

COLLECTIVE BARGAINING PROVISIONS

agreement may provide that the employee be given a complete
explanation.
22. Merit Review Every 3 Months; Amount and Frequency of Merit Raise and
Employees Receiving Raise Determined Solely by Company
The spreads above the minima of the foregoing rate range schedules in sections
5-C and 5-D shall be available for merit increases to individual employees who
qualify therefor in keeping with the company’s plan of merit rating. Each em­
ployee, after having progressed to the minimum of the rate range for the job
classification, will be merit-rated during the months of February, June, and
October of each year that this agreement is in force to determine his eligibility
for a merit increase. The employees to receive merit increases and the amount
and frequency thereof shall be solely within the discretion of the company.
23. Semi-Annual Reviews; Appeal Within 10 Days
The company will review the position of each employee within the rate range o f
his job classification each May 1 and November 1, and will notify the employees
of the results of the review. Should an employee be dissatisfied with such review,
he must appeal through the grievance procedure within 10 days.
24. Frequency of Merit Reviews Geared to Weekly Salary Ranges; Merit Increment Limited to 10 Percent of Basic Rate
Rules for merit increase: Performance of employees will be reviewed by the
company periodically to determine eligibility for increase. Such increase, if
granted, shall be based upon merit, efficiency, and other qualifications, and shall
not exceed 10 percent of the employee’s basic weekly salary rate. The maximum
applicable time between merit increase reviews shall be as follow s:
Basic weekly

Length
6
7
8
9
10
11
12

of time from previous increase:
salary rate
months______________________________________$45.00 or less
months______________________________________$45.00 to $60.00
$60.00 to $70.00
months____________________
months______________________________________$70.00 to $80.00
months______________________________________$80.01 to $90.00
months______________________________________$90.00 to $100.00
months_____________________________________ $100.00 and over

Each employee shall be informed within 30 days after the designated review
date of his status of eligibility for a merit increase. Any disagreement by the
union with the decision of management as to the employee’s eligibility for a merit
increase under this paragraph is subject to the grievance procedure. Nothing in
this general agreement shall prevent the company from making such individual
interim increases as in its judgment individual effort and efficiency may warrant.
25. Initial Rating by Company at 6-month Intervals; Notice to Employee and
Union of Results of Review Within 5 Days; Reasons for Action Given if
Grievance Filed
Attached hereto and made a part of this agreement as appendix 2, are copies
o f: (a) the form which sets forth the objective factors to be followed in making
merit increases within rate ranges, a definition of normal quantity of a given
operation, and (b) a tabulation setting forth the weighting assigned to the
objective factors.
The company shall apply these standards and make the initial determination
as to merit increases. Each employee shall be reviewed for this purpose once
each 6 months, without prejudice to the company’s right to make more frequent




WAGE ADJUSTMENT PLANS

9

reviews in its discretion. Any complaints as to the company’s action may be filed
through the contract grievance procedure. Immediately, or in no event later
than 5 working days following a review, each employee and the union will be
notified in writing whether or not he has been awarded a pay increase.
In the event a grievance is filed, the employee and the union committeeman
shall be entitled to a full statement of the reasons for the action. Such statement
need not be in writing, but should specify which standards o f performance the
employee has failed to meet.
The company shall establish for each employee a review date at each interval
of 6 months from his date of hire, and shall grant him a merit review at that
time. When it is found to be impracticable to review the employee on this
specific date, he shall be reviewed as nearly as possible to his established review
date, but in no event later than 15 days from his review date; however, any
increase in his rate resulting from such review shall be effective as of the pay-roll
period nearest to his established review date.
26. Periodic Reviews Suspended When Economic Conditions Affect Company.
Listing of Permissible Actions by Company if Employee not Qualified for
Merit Raise.
Increases within the rate range of a job classification shall be made as follow s:
The records of employees who have had a previous review in the same job
classification shall be reviewed 6 months after the last review. New employees
who have been placed in a new job classification shall be entitled to a review 6
months after employment or after having been transferred to the new job classi­
fication; except in the case of transfer to a new job in the same promotional
series, with no increase in pay, when the review shall be 6 months after the
employee’s last review. Continuing reviews shall be made at 6 months’ intervals
until the maximum of the range is reached. The interval between reviews will
usually be 6 months but in case of absences for any cause except vacation, the
review date shall be 6 months, plus the number of days of absence in excess of
10 regular 8-hour workdays during the 6 months’ period, after the last review
date or date of transfer or employment, adjusted to the nearest date on which a
pay-roll week begins.
Although those reviews will usually and normally be made, this procedure
may be suspended during periods when the company is seriously affected by
economic conditions, but will be resumed when the period of severe economic con­
ditions no longer prevails. When the review indicates that the employee has
made progress on the job by demonstrated ability and performance, he shall be
considered to have qualified for and shall be given an increase to the next step
of progression in his job classification. These progression steps shall be at the
rate of 5 cents each, except that the last step within the range may be less than
5 cents if a greater increase would exceed the maximum for the job range. When
the review indicates that the employee has not made progress on the job by
demonstrated ability and performance so as to qualify him for an increase to the
next progression step and for that reason an increase in pay is not warranted,
he may be retained in his job at the same rate, or be transferred, or separated
from the pay roll, but the employee shall be informed of such determination, and
the union shall be notified. I f necessary the union may request a review of such
a decision. Such review shall be made by a representative or representatives o f
the union and a representative or representatives of the company.
27. Union Representative Present at Periodic Merit Review; Disputes Subject to
Grievance Procedure
The rate and record o f each employee shall be reviewed every 16 weeks with a
view to wage adjustment in accord with his proven ability, production, etc. This



10

COLLECTIVE BARGAINING PROVISIONS

periodic review is not to be construed to mean that any employee is guaranteed
an increase as a result of this review.
Periodic reviews of employees shall be administered in such a way as to allow
the union to represent the employee at the time o f his review. Any such review
that is not satisfactorily concluded automatically goes to step 2 of the grievance
procedure.
A special review for any employee shall be made in the event of a change of
work or other conditions which may warrant such special review.
28. Joint Merit Review; Shortened Procedure for Complaints
Merit increases shall be granted to employees who qualify under the merit
rating plan set forth in subsection “c” immediately above.
Merit committees shall be established for purposes of reviewing an employee’s
qualifications to determine whether such employee qualifies for a merit increase.
These committees shall be composed of the department bsad and the office
manager representing the company and the chief steward and committeeman rep­
resenting the union.
This committee shall conduct quarterly reviews of all employees eligible for
merit increases.
After such quarterly reviews, each employee who has been reviewed shall be
given a copy of the review sheet. If the employee is denied a merit increase
and feels that he has just cause for complaint, he shall have the opportunity of
appealing his review through the grievance procedure as is provided for in step
3 and subsequent steps.
29. Employer's Merit Review Subject to Arbitration
We will arbitrate with the committee every man not drawing top wages in his
department so that he can be considered for an increase every 90 days until he
receives top pay. I f at the end of 90 days the arbitration committee considers
he has not improved his efficiency, he will not receive the increase.
30. No Definite Review Periods; Amount of Increment and Factors Considered
Specified
Within the rate range merit increases shall be made at 5-cent intervals wherever
possible, based upon the following three factors:
1. Quantity of production;
2. Quality o f production;
3. Attendance.
31. Merit Increases During Review Period Limited to 20 Percent of Staff
The employer shall review the pay-roll for consideration of merit increases
to not more than 20 percent of the employees on July 1, October 1, January 1,
and April 1. Merit increases, if given, shall be in recognition of ability, coopera­
tion, and general improvement in suitability for the position, and shall not in
any instance exceed $10 per month.
32. Merit Raises Granted to 25 Percent of Workers at Each Review Period; Time
Limit on Filing Complaints
Between July 15 and July 31 and the following January 15 and January 31
the company shall review the status of each employee who at the beginning of
such review period was being paid at a rate equal to or more than the midpoint
of his labor grade and below the maximum rate for such grade. Upon each such
semiannual review individual merit increases will be granted to 25 percent of
the number of such employees in amounts of 5 cents, or if the rate of an em­
ployee receiving an increase is less than 5 cents below the maximum rate for
his labor grade, then in an amount equal to the difference between such ena


WAGE ADJUSTMENT PLANS

11

ployee’s rate and such maximum rate. Merit increases so granted shall be made
effective as of the beginning of the first pay-roll period commencing on or after
the twenty-second day of the month in which such review is being made. Under
no circumstances shall a merit increase result in a rate higher than the maximum
rate for the labor grade in which the employee is working.
Any denial of a merit increase as a result o f improper discrimination in the
application of the merit review shall be subject to the grievance and arbitration
procedures. Any grievance under this section must be filed in writing within
15 days after the end of the semiannual review period.
33. Increases Up to Top of Job Grade by Aptitude and M erit; to Top by Merit
Only; Factors Listed
Advancement from “D” to “ 0 ” and from “ C” to “ B” grades may be made by
the company at any time the employee has demonstrated superior aptitude and
merit.
Advancement in all classes from “B” to “A ” shall be by merit only. Merit
increases shall be determined within the limit of total merit increase by the
company.
In considering increases because of merit, the company will take into con­
sideration all factors regarding the employee’s qualifications including the
follow ing:
(a ). General aptitude and skill.
(&). Sense of responsibility for equipment used.
( 0). Quality of work performed.
(d ) . Quantity o f work performed.
( e ) . General cooperation with other employees and management.
( / ) . Length of service.
34. Employer to Give Consideration to Union Nominations fo r Merit Increase
The status of all employees covered by this agreement shall be reviewed at
least twice a year by the company for the purpose of granting salary increase
for merit. The company will give consideration of proposals from the union
concerning special qualifications o f any employee, but shall be the judge of merit
and shall make the final determination as to merit increases under this section.
35. Union May Petition Company for Individual Merit Raises
The grievance committee shall have the right to present requests for adjust­
ment of inequalities and for merit increases in wages to which the company
will give reasonable consideration.
36. Union May Recommend Merit Increases; Disputes Arbitrable
Merit reviews for engineers and technicians shall take place on May 1 and
November 1 of each year. The merit reviews shall be handled on the following
basis:
The union shall submit to the company a list of employees whom they
consider eligible to receive merit increases within the month preceding the
review.
Amy dispute arising out of the application o f this section shall be subject
to grievance procedure and arbitration.
37. Employee Participates in Efficiency Rating; Right to Make
Agreement

Written

The rating or evaluation of all employees shall be specific, be related to the
job description, and shall discuss the actual performance o f the work done by
791532'




12

COLLECTIVE BARGAINING PROVISIONS

the employee. The rating or evaluation shall be made with the knowledge and
active cooperation of the employee and such a rating or evaluation in its final
form shall be seen by and discussed with the employee, who may thereafter
comment on it in writing. Such comments shall be filed along with the rating
or evaluation as part of the employee’s personnel record.

Automatic Progression Plans

Agreements containing automatic progression plans provide fo r
automatic wage increases from the minimum to the maximum
rate on the basis o f length o f service. Generally, the automatic stepups cease when an employee reaches the maximum rate for his job.
The increment is nearly always specified, as is the time span o f the
rate range established for the job.
Some agreements specifically recognize management’s right to
m odify the fixed plans in exceptional cases and grant increases at
shorter or longer intervals and in larger or in lesser amounts. Some
allow management to withhold raises for certain reasons, such as lack
o f qualifications. In some cases, details are included regarding in­
creases for employees on leave o f absence. Since the key factor in
automatic length-of-service wage progression is experience within the
job, credit is often extended for comparable experience with other
employers.
38. Automatic Increases Every 4 Months to Maximum of Rate Range
Employees employed at the minimum rates of the classification
established herein shall receive an automatic increase of 5 cents
4 months’ employment, but the last automatic increase shall in no
the wage rate above the maximum of the employee’s classification

rate ranges
after every
event bring
rate range.

39. Automatic Increases Yearly for 8 Years
First pilots shall be paid a minimum base pay, payable monthly at the fol­
lowing rates:
P er annum

First year------------------------------------------------------------------------------Second year--------------------------------------------------------------------------Third year------------------------------------------------------Fourth year---------------------------------------------------------------------------Fifth y ea r__________________________________________________
Sixth year-----------------Seventh y ea r------------------------------------------------------------------------Eighth year and thereafter------------

0)
C)
0)
(*)
0)
C)
0)

1 Increases o f $200 per year.

40. Automatic Yearly Progression to Maximum Except for Laborers
For each year o f service with the company an employee shall be entitled to a
rate of 2 cents per hour above the minimum set for his particular job and such
increased rate shall be effective automatically upon each anniversary of employ­
ment until the maximum rate for the job has been reached; Provided, however,
That no automatic increase in rate shall be paid to employees who are classified
as “laborers.”



13

WAGE ADJUSTMENT PLANS

41. Automatic Increases in Mileage Rates Up to S Tears
The company will pay all motor coach operators in division — on the following
rate schedule:
P er m ile

Less than 6 months* service--------------------------------------------------$0. 0395
. 0410
More than 6 months* service and less than 1 year-------------------More than 1 year’s service and less than 18 months___________
. 0440
More than 18 months* service and less than 3 years____________
. 0455
More than 3 years* service___________________________________
. 0485
42. Progression to Top Rate Limited to “ Qualified” Employees
It is agreed that no employee will remain in the first bracket in a classification
for longer than 3 months after his first regular quarterly rating, and that no
employee will remain in the second bracket for a longer period than 6 months
after his first regular quarterly rating; then all qualified employees will be
advanced to the third bracket.
43. Automatic Progression Schedule Modified According to Worker's Progress
These schedules indicate the intervals and amounts of adjustment for con­
sideration, and it is recognized that cases might arise where it would be
advisable for the management to grant increases at shorter intervals or in larger
amounts than shown on the schedule to those employees who are making excep­
tional progress as workmen, or to grant increases at longer intervals or at lesser
amounts than shown on the schedule to those employees who are not making
satisfactory progress.
44. Listing of Prerequisites for Length of Service Increase. Cancellation of In­
crease on Failure to Qualify.
Employees may in the company’s discretion be considered for a length o f service
increase only when they have: (1) Reached the maximum rate of their labor
grade; (2) been continuously employed for at least 2 years; (3) not had an in­
dividual increase for at least 1 year; (4) no opportunity or capacity at that time
for promotion or transfer to a higher grade jo b ; (5) qualified on the basis of their
last four merit ratings and their attendance and safety records.
I f after receiving a length o f service increase an employee fails in any two
successive ratings to qualify, such increase may be removed. I f removed, such
increase shall be restored whenever a subsequent rating shows the employee
to be properly qualified. No question arising under this section 5B shall be the
subject of the grievance or arbitration procedure except as to whether or not the
company has followed the procedure provided for herein.
45. Specified Increase Quarterly; Effect of Absence on Service Requirement
Specified; 10-Day Notice to Union if Automatic Increase Withheld
The standard hourly rate of an employee, when below the job rate o f his
job grade, shall be increased during the term of this agreement according to,
the schedule set forth in paragraph —, provided the employee has worked 30
days or more since the date of his last employment or since the date of the last
wage progression increase he received following the date of his last employment
subject to the further provisions of paragraph —.
An increase of 6 cents per hour shall be given quarterly to employees in all
grades and shall become effective on the first of the fiscal months o f July, October,
January, and April, provided that an employee’s resulting rate of pay shall not
exceed the job rate of his job grade classification.
Computation of the minimum requirement of 30 days worked under (the first)
paragraph above shall be made as indicated in the following special cases:



14

COLLECTIVE BARGAINING PROVISIONS

An employee who goes out on a personal or disability leave of absence
and returns to the roll between two successive scheduled increase dates
shall be credited with any days worked (since date of employment or last
scheduled increase whichever is applicable) both before and after the leave.
An employee who has qualified to receive a scheduled increase under [the
first] paragraph, but who does not receive the increase due to the fact
that he is off the roll [personal or disability leave of absence] on the
effective date of the increase, shall receive the increase effective on his
return to the roll provided he returns before the next succeeding scheduled
increase date.
An employee absent [other than paid vacation absence] on the effective date
o f an increase provided in [the first] paragraph above, but otherwise eligible,
shall receive the increase effective only on and after his return to active duty.
If, in the judgment of the company, an employee is not entitled to an increase
under the provisions of [the first] paragraph due to his performance on the job,
his conduct, or excessive unexcused absenteeism or tardiness, the company may
withhold such increase, provided it has notified the union in writing at least
10 days in advance of the date the increase was to have become effective.
46. Speed of Progression Varies With Type of Job
Unskilled job.— Start at bottom of the range and after 4 months progress to
top of range.
Semiskilled employees.—Start at bottom of the range and after 6 months
progress to top of range.
Skilled employees.— Start at the bottom of the range and after 8 months pro­
gress to the top of range.
A list of classifications showing a break-down of skilled, semiskilled, and un­
skilled jobs follow s: * * *
47. Reclassification Not to Affect Automatic Progression to Maximum of Grade
Reclassification from one occupation group to a different occupational group
within the same grade will not affect the automatic rate progression of the
employee. The automatic rate progression shall continue without interruption
until the maximum rate of the grade is reached.
48. Credit for Previous Experience Toward Progression
In the application of the foregoing schedules of minimums, experience shall
include all regular employment in comparable work,
49. Credit for Previous Experience at Company's Option
The company may, at its discretion, grant a new employee pre-employment
service credit for starting rate or wage progression purposes not to exceed the
total service of such employee with the company or any other telephone company.
50. Credit for Previous Experience on Specified Jobs Only
The following schedule of minimum wages shall be in effect from [date] for
the balance of the term of this agreement, unless changed as a result of the
wage reopening provided in sectiop—hereof. Experience, as used herein, shall
mean only experience gained as an employee of the [company], except in certain
classifications which have been specifically designated by an asterisk (* ). In
these classifications experience gained on a daily newspaper in a city of 100,000
population or more shall be credited to employees to establish the proper minimum
wage.




WAGE ADJUSTMENT PLANS

15

61. Service Credit for Time Lost During Leave Limited to Absences for Specified
Causes
The rate for each employee shall be determined by the length of time the
employee has worked in his particular classification insofar as automatic pro­
gression is concerned. Time lost through illness or other causes in excess of 10
consecutive calendar days shall not be included in computing length o f time
for purposes of calculating the date when an automatic increase becomes
effective, except for the follow ing:
(a) Absence for service with the land or naval forces of the United States
which shall be governed by the provisions of section — o f article — hereof.
(b) Absence due to an accident subject to the provisions of the Workmen’s
Compensation Act.
(c) Not more than one employee in a calendar year who has been regu­
larly employed by the company for more than 1 year and who has been
granted a leave o f absence for official union business will be entitled to
receive the rate of pay in his job classification, upon his return to work,
which he would have received had he not taken such leave.
52. Lay-Off and Leaves Over SO Days, Except Military Leave, Excluded in Calcu­
lating Length of Service for Automatic Increase
Where length of service with the company determines an automatic increase
in rate of pay, such length of service is determined from the time of original
employment by the company, except in a case where employment ceased as a
result of resignation, discharge, or dropping from the rolls, in which case such
length of service is determined from the time of the last employment by the
company. In determining such length of service for this purpose the period of
any lay-off of 30 or more days and the period o f any leave of absence of 30 or
more days and the initial period of formal training do not count as service with
the company. Where an employee is granted a military leave of absence for
service in the armed forces, or a female auxiliary thereof, or in the Maritime
Service of the United States, and he is reinstated by the company upon the
termination of such leave of absence, the period of such leave o f absence will
count as service with the company in determining such total length of service
for this purpose.

Combination Automatic and Merit Progression

Under plans combining the basic principles o f both the automatic
and merit increase plans, increases may be made automatically at
specified intervals for a certain length o f time on the basis o f length
o f service and thereafter by merit, or increments may be granted auto­
matically up to some point within the range, with further increases on
the basis o f merit alone. These plans sometimes represent a compro­
mise between the union’s desire for an automatic increase plan and
management’s wish to give merit increases only.
53. Automatic increases to Mid-Point of Rate Range; Merit Progression to Top
of Range
The present wage rate ranges of the production day work employees shall be
split at the mid-point in each case, the lower half range to be an automatic steprate schedule with two equal steps at 1 month and 2 months to the mid-point o f




16

COLLECTIVE BARGAINING PROVISIONS

the range. The upper half from the mid-point to the maximum shall be a merit
range, subject to the rating of the responsible foreman or department heads.
54. Automatic Progression to Mid-Point of Range for Day Workers, to ThreeQuarter Point for Incentive W orkers; Merit Increases Thereafter
A day worker shall be advanced automatically to the mid-point of the rate
range for his job, and an incentive worker shall be advanced automatically to
the three-quarter point o f the rate range for his job, after he has worked on his
job for the following periods:
(a) Four months, for jobs having a guaranteed top rate up to and including
$1.16 per hour.
(b) Six months, for jobs having a guaranteed top rate from $1.17 per hour
up to and including $1.44 per hour.
(c) Eight months, for jobs having a guaranteed top rate from $1.45 per
hour up to and including $1.73 per hour.
Merit increases above the mid-point of the rate ranges for day workers
and the three-quarter point of the rate ranges for incentive workers shall be
determined every 6 months by the company subject to review under the grievance
procedure.
Employees subject to merit increases shall be notified in writing o f the result
o f the company’s review o f their rates.
55. Automatic Increases Up to 12 Months’ Service; Further Increases on Merit
$asis
(a)
(b)
(c )

for length of service increases:
After 3 months’ service, 5 cents per hour.
After 6 months’ service, 2y2 cents per hour.
After 12 months’ service, such employees will be eligible for merit
increases.
Plan for merit increases:
(a) The rates of employees eligible for merit increases will be reviewed on
July 1 and January 1 of each year.
(b) No merit increases to exceed 5 cents per hour.
(©) Nor more than two merit increases to be granted to the same employee in
any 12-month period.

56. Automatic Increases to “Normal Rate/ ” Merit Reviews Thereafter at
6-Month Intervals
That the following system of wage increases will be follow ed:
Job levels 1 to 6 inclusive:
Step 1. An employee starting at the minimum of the wage range will re­
ceive 4 cents an hour increase at the expiration o f the first 3 months
after he is classified.
Step 2. An additional 5 cents an hour at the expiration of the next 3
months.
Step 3. An additional 5 cents an hour at the expiration of the next 3 months
(which brings him to the normal rate).
Job levels 7 to 9 inclusive:
Step 1. An employee starting at the minimum o f the wage range will re­
ceive 5 cents an hour increase at the expiration of the first 3 months.
Step 2. An additional 5 cents an hour at the expiration of the next 3 months.
Step 3. An additional 5 cents an hour at the expiration of the next 3 months
(which brings him to the normal rate).




WAGE ADJUSTMENT PLANS

17

Job levels 10 to 12 inclusive:
Step 1. An employee starting at the minimum of the wage range will re­
ceive 5 cents an hour increase at the expiration of the first 3 months after
he is classified.
Step 2. An additional 5 cents an hour at the expiration o f the next 3 months.
Step 3. An additional 6 cents an hour at the expiration o f the next 3 months
(.which brings him to the normal rate).
The foregoing is to be automatic providing the employee is making reason­
able progress and has the proper attitude towards his job.
That the employer may of his own accord change the rates of individual
employees based on the following factors 2
(a) Attentiveness to duty.
(b) Quality o f work.
(c) Rate o f production.
That the employer will review the wage rate o f individual employees at least
once every 6 months for increases above the normal rate of the job level but
such increases will be granted only as provided in paragraph — above.
57. Primary and Secondary Length of Service and Merit Increases,
Amount of Individual and Plant Merit Raises

Limit on

Primary length of service increases:
Automatic increases of 5 cents per hour at 2-month intervals shall be granted
to employees who are rated below the minimum of their labor grade until their
rate is — dollar and — cents ($— ) per hour, or the minimum rate for the labor
grade, whichever is less. As shown by the schedule, this results in employees in
skilled labor jobs being automatically increased to — dollars and — cents ($— )
per hour, while employees in unskilled labor jobs are increased to the single rate
shown fpr these labor grades.
Secondary length o f service increases:
These increases shall be granted to employees receiving less than the minimum
for their labor grade in 5-cent increments on their anniversary date. The in­
creases shall be continued thereafter at 6-month intervals until the employee has
reached the minimum rate o f his labor grade, with the final increment in an
amount sufficient only to adjust to the minimum rate.
These increases are based on the assumed progress of the average producer,
and shall not preclude the granting o f merit increases to employees who are above
the average producer. However, if intervening merit increases are granted, no
automatic length of service increase shall be granted sooner than 6 months.
Such increases will become effective on the weekly pay period immediately
following the anniversary date.
Primary merit increases:
These shall cover increases between the starting rate o f the employee and the
minimum rate o f his labor grade in recognition o f faster than average
advancement.
Secondary merit increases:
These shall cover merit increases between the minimum and the maximum of
the labor grade. Such merit increases will be considered at any time, and the
foreman will advise the employee whether or not he will recommend such merit
increase within 3 days.




18

COLLECTIVE BARGAINING PROVISIONS

All individual merit increases (primary or secondary) shall be restricted to
not more than 10 cents an hour, or two-thirds of the difference between the mini­
mum and the maximum rate o f the labor grade, whichever is higher.
The average of all merit increases (primary or secondary) for all employees
shall not exceed 5 cents per employee by departments during any 1 year, effective
July 1 o f each year.
58. Semi-Automatic Increases to P ro fessio n Point; Merit Raises Thereafter.
Denial of Merit Raise Subject to Arbitration
The company and the union have agreed to the following plan for making
wage increases within the wage rate ranges applicable to the classifications set
forth in schedule B, which also reflects the stipulated progression points and
progression intervals applicable to the plan.
1. Increases to progression point:
Employees below the progression point of their classification who have a length
of service o f 6 months in that classification since the date o f their last increase
shall be eligible for a progression increase to the next higher step of the pro­
gression schedule. The time required for an employee to progress from the hiring
rate to the minimum rate, normally 3 months, shall not be considered as service
for the purposes of this plan.
Increases up to the progression points are semi-automatic. Such increases
may be withheld but the affected employees may submit their cases to grievance
procedure and arbitration.
2. Increases from progression point to maximum:
Employees above the progression point shall be reviewed for an increase 12
months from the date of their last increase and be eligible for an increase.
Increases above the progression point shall be determined in the discretion of
the company but shall be subject to appeal through the grievance and arbitration
procedure in case of any claim that the company has acted in an arbitrary or
capricious manner in its determination of such increases.
3. Effective date of increases:
Effective dates of all increases under this plan will be the beginning o f the
week following the completion of the applicable intervals.
59. Average of Merit Increments Limited to 5 Cents an Hour in Year
Classifications shown in schedule A provide a “ guaranteed maximum” and
a “merit maximum.” Advancement above the “ guaranteed maximum” will be
by merit only and to secure such advancement an employee must possess special
ability and experience or other unusual qualifications. The average merit
increase to all employees eligible to merit increases shall not exceed five
cents per hour in any calendar year beginning July 1.

Adjustment o f General Wage Level During Term o f
Agreement
Prior to W orld W ar I I a few union agreements contained pro­
visions for the adjustment o f general wage rates during their life.
The main concern o f the labor movement has been to maintain and
gradually raise the standard o f living. Unions have, therefore, been
reluctant to include plans for the adjustment o f wage rates during the




WAGE ADJUSTMENT PLANS

19

life o f an agreement because o f the possibility that wage adjustment
formulas may be offered as substitutes for actual wage increases.
Under normal conditions and on a long-term basis, unions are op­
posed to the principle o f tying wages to the cost o f living. Such a
policy would, in their opinion, freeze the level o f “ real wages” and
prevent employees from benefiting from expanding business, in­
creased labor productivity, and expanding national income. They
regard wage raises to compensate for increases in the cost o f living
as only one factor, and not the major factor justifying requests for
higher wages. They also generally avoid plans whereby wages are
adjusted to profits or specified commodity prices, because o f fear
that (1) the workers will be forced to bear the brunt o f depressed
conditions or managerial inefficiency, and (2) living standards will be
lowered.
During the war period, plans for wage adjustments to cost-of-living
changes during the life o f an agreement were considered valid only
if adjustments made under them conformed to the limitations set by
Government wage stabilization regulations.2 In the reconversion
period, the uncertainty o f forecasting price trends and their effects on
wages and the cost o f living induced a number o f unions to negotiate
contracts providing for wage reopening during the life o f the agree­
ment. These unions did not want wages to remain frozen for a year
or longer (depending on the length o f contract term) while important
price and other economic changes might seriously undermine the
standard o f living o f the workers affected by the contract.
Wage renegotiation plans are o f two general types—permissive and
automatic. The permissive plans authorize the negotiations o f new
wage rates at any time or at stated intervals during the life o f the
agreement, or when either party can demonstrate that a significant
change in such factors as general economic conditions, cost o f living,
or prevailing wages, has occurred justifying a change in wages. The
automatic plans make wage changes compulsory in conformance with
specified change in the cost o f living, price o f given commodities,
profits, or other economic factors.
Some agreements have combined permissive and automatic plans.
These require automatic adjustments within certain limits, after
which the question o f wage rates becomes a subject for further
negotiations.
Either type may provide for upward wage adjustments only or for
both upward and downward adjustments. In the latter case, exist­
ing wage standards may be protected by prohibiting any decrease in
rates below the wage level at the time the agreement was signed.
a General Order No. 22, National W ar Labor Board.
791532°— 48------ *




20

COLLECTIVE BARGAINING PROVISIONS

In the event the parties are unable to reach agreement on m odifying
the wage scale, under a permissive plan, the existing wage scale may
remain in force; or the issue may be arbitrated; or the agreement may
be terminated; or the union may have the right to strike, while the
rest o f the contract remains in force. The Labor Management Rela­
tions A ct o f 1947 requires 60 days’ written notice o f intent to m odify
or terminate a contract, notification within 30 days to the Federal
Mediation and Conciliation Service and the State Mediation Agency
(if any exists) that a dispute exists, and extension o f the contract
without strike or lock-out until 60 days after the initial notification
or until expiration o f the contract, whichever is later. It is not clear
whether, under the Act, the restrictions on strikes apply only to the
expiration o f agreements or whether they apply also to wage re­
opening clauses.
Permissive Wage Adjustment Plans
General Wage Reopening Clauses

General wage reopening clauses permit either party (although in
some cases the union only) to reopen the wage question for any reason
at any time during the term o f the agreement after due notice. Such
clauses provide the greatest flexibility in wage renegotiations since
they do not tie the reopening to any specific economic factor.
Another type o f general wage reopening clause, designed to main­
tain a degree o f stability in the wage level, authorizes wage reopenings
only at stated intervals during the life o f the agreement or only after
a stated period o f time, or limits the number o f times wages may be
renegotiated. During these intervals, the established rates must re­
main in effect. A few agreements, however, which permit either party
to ask for wage renegotiation only at specified times, allow wage re­
opening at any time by mutual consent.
Some agreements, on the other hand, provide that the wages agreed
upon at the time o f contract negotiation shall be fixed for their dura­
tion and no reopening is permitted.
60. Wage Reopening—No Restrictions
Wages shall be subject to negotiations at any time at the request o f either
party.
61. Wage Reopening—Notice Required
Wage adjustments through the plant may be considered by special negotiations
at any time during the Ufe of this agreement, upon 30 days’ written notice to the
company or the union.
62. Wage Reopening Every 4 Months
The company and the union agree that at the end o f each and every 4 months,
either party has the right to reopen this contract to readjust the existing wage
scales.



WAGE ADJUSTMENT PLANS

21

63. Wage Reopened A fter 120 Days
General wage rates shall remain unchanged for a period of 120 days. There­
after, general wage rates shall be subject to negotiations from time to time during
the term of this contract. If either of the parties subject to this agreement desire
to reopen the general wage rate issue, they shall give the other party 15 days*
written notice.
64. Reopening Once During Second 6 Months of 1-Year Agreement
Either party may give 30 days* written notice for negotiations on a general
wage change once during the second 6-month period of this agreement
65. Reopening at 6-Month Intervals of 1-Year Agreement
It is agreed, however, that the wage clause of this agreement can be reopened
at the expiration o f any 6-month period, without the reopening of this working
agreement, upon written notice given by either party 30 days prior to the expira­
tion of any 6-month period from the date of this agreement or any anniversary
date of this agreement.
66. Reopening Twice During 1-Year Agreement
Both parties to this agreement reserve the right to take up the question of
wages whenever deemed advisable but such request may not be made oftener
than twice a year.
67. Reopening Limited to Twice During 1-Year Term
It is agreed that the present classifications as shown in “ B” and present wage
scales will be continued during the life of this agreement except insofar as they
may be changed as a result of negotiation between the company and the union, it
being understood that neither party may request negotiations for change in
wage scale more than 2 times in the contract year.
68. Wage Reopening—Either Party Every 6 Months; Mutual Agreement at Any
Time
Either party may reopen wage negotiations once every 6 months upon 15 days’
written notice to the other party, unless reopened at a shorter interval by
mutual agreement.
69. Two-Year Agreement—Yearly Wage Reopening
The parties reserve the right to open the question of wage rates as of [date]
by giving notice in writing by registered mail to the other, 30 days prior to
[date]. In the event no such notice is given the wage rates as provided for
herein shall remain unchanged for the duration of this agreement.
70. Reopening Twice During Second Year of 2-Year Agreement
Either part, upon the giving of 30 days* written notice to the other party, may
reopen the single subject of general wages, on one occasion only between
April 1 5 ,------ and October 1 5 ,--------, and again on one occasion only between
October 15,------ and April 15,-------, on the single subject o f general wages.
71. Three-Year Agreement— Yearly Wage Reopening
Either the union or the company may reopen the contract for a general revision
only of (1) the scales of basic monthly and hourly wage rates in any or all
classifications, or (2) changes in shift differentials, effective as-qf November 30,
------ , and November 3 0 ,------ , upon serving the other party with a written notice,
not less than 40 days prior to the aforesaid dates, of its desire to so reopen the
contract; whereupon, the parties shall negotiate such wage revision during the
40-day period.



22

COLLECTIVE BARGAINING PROVISIONS

72. Fringe Issues and Wages May Be Reopened on Specified Notice at First
Anniversary Date o f 2-Year Contract
Notwithstanding the forgoing provisions o f this agreement, either party may
reopen negotiations on August 12, ------ , for the sole purpose of discussing
vacations, social security program, sick benefits, pensions and wages, provided
that the party desiring to reopen such negotiations shall give to the other party
written notice o f sucn desire at least 60 days and not more than 75 days prior to
August 12,------ . In the event that neither party serves such notice of reopening
prior to August 12, ------, as herein provided this agreement shall continue in
full force and effect and subject to the provisions o f sections — and — o f this
article.
73. Time Limit on Negotiations A fter Reopening
Six months from the date o f this agreement either party may give notice to
the other of an intention to negotiate wage rate adjustments. The parties agree
upon receipt of 7 days* written notice to meet and negotiate wage rate adjust­
ments to become effective the first pay period after an agreement is reached.
Such agreement shall be reached within 10 days from the commencement of
negotiations.
74. Fringe Wage Issues Excluded in Wage Reopening Clause
It is agreed that matters such as holidays with pay, shift bonuses, vacation pay,
insurance, overtime pay, reporting pay, make-up pay, guaranteed minimums,
and the like are not wage matters subject to this clause and are therefore not
subject to reopening or revision hereunder.
N o t e .—Wages may be reopened twice a year, with arbitration if no agreement
is reached.

Wage Reopening Based on Specific Factors
CHANGES IN COST OF LIVING

A change in the cost o f living is the factor most commonly specified
in justifying renegotiation o f wages. *The broadest type o f cost-ofliving wage adjustment clause is that which permits reconsideration
o f wages whenever the cost o f living changes, without, however,
specifying the amount o f change. Others use such general criteria
as a “ substantial” or “ decided” change. Such general clauses allow
room for disagreement as to whether there has been sufficient change
in the cost o f living to warrant reopening, what index to use as a
measuring rod, and what basis to use for computing the wage changes
in the event there has been a change in the cost o f living.
In order to avoid disputes as to whether or not negotiations should
take place, some permissive cost-of-living clauses require a given
change in a cost-of-living index before an adjustment in wages may be
requested. These changes may be expressed in percentage or point
terms. The agreement may also specify which index is to be used to
measure the amount o f change, the Bureau o f Labor Statistics over­
all national consumers’ price index, the local city index, or some other
index.



WAGE ADJUSTMENT PLANS

23

75. General Permissive Cost-of-Living Reopening Clause
The parties acknowledge that under the agreement between the union and
the (employer), the wages of workers may be revised in the case of a change in the
cost of living.
76. Upward and Dowmoard Adjustments to “ Substantial” Change in Bureau of
Labor Statistics Index
It is further agreed that should the cost of living as published by the United
States Bureau of Labor Statistics Index show a substantial increase or decrease,
either party to this agreement may reopen the question of wage scales for
appropriate revision, upon 15 days’ notice.
77. Reopening Geared to “Decided” Change in 6-Month Period
At the end o f 6 months, should the cost o f living vary to a decided extent,
the union or the employer shall have the right to open negotiations for a wage
adjustment. Fifteen days’ notice in writing must be given by either party.
78. Upward and Downward Adustment to Cost o f Living or Devaluation of
Dollar
Should there be a rise in the cost of living or devaluation o f the dollar, then
it is agreed that the parties will meet for the purpose o f considering an increase
in wages commensurate with the rise in the cost of living. Should the parties
disagree, then such disagreement shall be treated as a dispute under this agree­
ment and be adjusted as any other dispute through the machinery for adjust­
ment o f disputes, as hereinafter provided.
I f the wages shall have been increased pursuant to the provisions of paragraph
— immediately above, and should there thereafter occur a decrease in the cost
of living, then it is agreed that the parties will meet for the purpose of consider­
ing a decrease in wages commensurate with such decrease in the cost of living.
Should the parties disagree, then such disagreement shall be treated as a dispute
under this agreement and be adjusted as any other dispute through the machinery
for adjustment o f disputes, as hereinafter provided. However, it is understood
and agreed that in no event shall any decrease in wages, if granted under this
paragraph—, exceed the amount o f the increase which has been previously
granted under paragraph — o f this agreement.
79. Specified Percentage Increase in Cost of Living; No Reference to Index
In the event of an increase in the cost o f living of at least 5 percent from the
effective date o f this agreement, the union may ask for a general increase for its
members.
80. Specified Point Increase in Bureau of Labor Statistics Consumer's Price Index
This agreement shall be in effect and full force from February 1 5 ,------ , to
April 80,------. In the event, however, that the cost of living index as established
by the Department of Labor’s Bureau o f Labor Statistics, known as the “ Con­
sumers’ Price Index,” should, at any time during the term of this agreement,
show a rise o f 10 or more points by comparison with the index on February 15,
------, the union shall have a right to reopen the wage provisions of this agreement.
81. Specified Point Change in National Industrial Conference Board Index
This agreement shall be in full force and effect from the twenty-fifth day of
November, ------ , to the first day of December, ------ , and thereafter until or
unless 30 days’ notice in writing containing the proposed change is given by either
party to the other for a change. However, should the cost of living index, as
compiled by the National Industrial Conference Board, show an increase or




24

COLLECTIVE BARGAINING PROVISIONS

decrease of 6 points above or below the index level of — between November
25, ------ , and December 1, ------ , the union or the management will have the
privilege of initiating a discussion regarding a wage rate adjustment.
82. Reopening Geared to Specified Point Increase; Bureau of Labor Statistics
and Rational Industrial Conference Board Indexes Averaged
It is further agreed that the question of wage rates, including piece rates, may
be reviewed at any time after December 1 5 ,------ , at the written request of the
union by registered mail to the corporation, only if the average cost of living
index figures for J u ne------ as published by the Bureau o f Labor Statistics and
the National Industrial Conference Board shall have increased 10 points or more,
this 10-point increase to be determined by averaging the increases shown by the
Bureau of Labor Statistics and the National Industrial Conference Board.
83. Reopening When Massachusetts State Index Shows Specified Percent Rise
A fter Given Date
If on July 1 ,------ , or at any time thereafter during the term of this agreement,
the cost of living, as shown by the Necessaries of Life Division, Massachusetts
Department of Labor and Industries, shall have increased 5 percent or more
over the cost of living for the month of January-----, as shown by said Necessaries
of Life Division, Massachusetts Department of Labor and Industries, the Union
shall have the right to request a wage increase based on such increased cost of
living, and in the event that the parties hereto are unable to arrive promptly at
an agreement on such increase, the question shall be arbitrated in the manner
provided by article — hereof. It is understood and agreed that in the event
there shall be an increase in the cost of living, under the provisions of this
paragraph of the agreement, that such increase shall not be for any period prior
to July 1 , ------ .
84. Reopening Geared to Cost of Living and Other Specified Factors; Wage
Changes Not to Affect Employer’ s Competitive Position Adversely
I f during the term of this agreement, or any renewal thereof, there shall be
any significant change in the factors upon which wages depend, either in cost of
production, competitive conditions, cost of living, or inflation or deflation, either
party may demand a change of existing rates, provided that said change in no
wise affects the “employer’s” competitive position in relation to o th e r------ mills
in the South. If the “union” and the “ employer” cannot agree upon the terms of
such revision within 15 days of the opening of negotiations, such matters shall be
submitted to the impartial chairman, as hereinafter provided, for final and
binding decision in the same manner as provided for the disposition of disputes,
grievances, and other matters.
85. Maximum Amount of Increase Stipulated; Agreement Terminated Upon
Notice if Negotiations Fail
I f at any time after June 1 ,------, the parties hereto agree that living costs and
area wage rates have risen substantially over the living costs and area wage
rates which prevailed in November------ , then the union may reopen this agree­
ment at any time thereafter by written notice to the company for the negotiation
o f a nonretroactive general increase not exceeding 5 cents an hour in the wage
rates fixed by paragraph — but for no other purpose. Upon the giving of such
notice, the parties will immediately commence negotiations in respect to an
increase within the foregoing limits. I f the parties are unable to agree within
30 days after the commencement o f such negotiations upon a general increase
within the above limits, then either party may terminate this agreement forth­




WAGE ADJUSTMENT PLANS

25

with by giving written notice to this effect to the other within the next 10 days.
The failure to give such notice within said period shall constitute a waiver of
the right to terminate this contract pursuant to the aforesaid provision, shall
then continue in accordance with its terms. One reopening shall exhaust the
privilege granted by this paragraph.
86. Effective Dates of Any Wage Adjustments Specified
In the event o f national currency regulation or other changes which shall
affect the purchasing power of the dollar, or in the event of an increase or
decrease in the cost of living, the wages herein provided to be paid shall be
subject to revision, upwards or downwards, as the case may be, and for that
purpose, conferences between the association and the union shall be h e ld ------.
However, any revision in the wages, if so determined, shall not become effective
until whichever of the following dates first succeeds the date of such dispute:
May 15, July 15, September 15 or January 15.
87. Union May Reopen in Event of Inflation or Legal Reduction in Hours
In case of inflation of monetary values, commodity prices, or reduction in
working hours by law, within the life of this agreement, local No. — reserves
the right to reopen this agreement for necessary readjustments.
CHANGES IN GOVERNMENT WAGE OR PRICE POLICY

Agreements negotiated during the war years, when wages were
largely controlled by Government stabilization regulations, very often
based reopening o f wages on substantial changes in the national wage
policy. Wage rate renegotiations are still currently stipulated by some
agreements, where legislation or other Government action affects
minimum wages in the industry or changes the price ceilings o f the
company’s product.
88. Wage Reopening Based on Change in Rational Wage Stabilization Policy
Upon any change in the National Wage Stabilization Policy brought about by
legislation, Executive Order, War Labor Board, Presidential proclamation or
through interpretation by, or directives of, the Economic Stabilization Director,
either party, upon 30 days’ written notice to the other, shall have the right to
open for renegotiation the present wage scales in conformity with such newly
established wage policy.
89. Company May Reopen if Premium Price Plan Discontinued
The wage schedule attached hereto shall continue in full force and effect
until June 30,------ , and for a further period of 12 months unless notice is given by
either party to the other not less than 30 days prior to July 1 ,------ , that changes
are desired in said schedule, except that the company reserves the right to
reopen wage negotiation at any time the present premium price plan is dis­
continued.
90. Reopening Based on Economic Conditions or State or Federal Wartime
Regulations
It is the intention of both parties to this agreement to continue with the wage
schedule as stated herein until June 1 , ------ ; Provided, however, That revisions
in the scale of wages that may be necessary due to economic conditions or war­
time regulations by State or Federal authorities, shall be subject to negotiations
upon 35 days’ written notice by either party. Both parties reserve the right to
terminate this agreement upon failure to arrive at an agreement on wage schdules,



26

COLLECTIVE BARGAINING PROVISIONS

91. Reopening if Price R elief Granted by OPA
In the event that the company should obtain price relief from the OPA suffi­
cient to compensate it for its increased labor costs resulting from the various
provisions of this contract, the union shall have the right to reopen and re­
negotiate the straight time hourly job rates upon 30 days' notice in writing to
the company.
92. Reopening if Price Controls on Food, Clothing, and Rents are Terminated
In the event price controls are abolished during the term of this contract on
food, clothing, and rents, the wage clause may be reopened upon 30 days* written
notice by either party.
93. Reopening if National Wage and Price Policy Adopted for Industry or if
Overtime Work Discontinued
Provided that it is mutually agreed by the parties hereto that if and when
a national policy be adopted prescribing a formula for wage rates and ceiling
prices in th e ------ industry as a whole throughout the Nation, or if the employer
permanently discontinues overtime employment as a general and over-all prac­
tice at it s ------ mills, except for causes beyond its control, either party hereto
may ask for further consideration of the wage scales herein specified, and
negotiations shall be undertaken to arrive at a scale of wages consistent with
the formula which may thus be nationally adopted. In such negotiations and
in the application of any such formula, consideration shall be given to in­
creases in wage rates which have heretofore been made by the employer, in­
cluding those made by reason of this agreement; and a mutual effort will be
made to arrive at a new wage scale based upon the application of the formula
so adopted.
94. Increase in Minimum Wages
It is hereby agreed that, should the Congress o f the United States pass a law
establishing a minimum wage rate of 65 cents per hour, the parties will on 30
days' written notice by either party reopen the wage clause of this contract for
further discussion; provided, however, such clause shall not be reopened and
no meeting shall be held until 10 days prior to the effective date o f such law.
N ote.— The starting rate in this agreement, 60 cents per hour, is increased
to 70 cents after 16 weeks o f continuous service.
95. Increase in Minimum Wage or Change in Price Ceilings of Product
It is agreed that in the event of any Federal legislation which increases the
minimum wage to or above — cents per hour, or in the event of any change in
price ceilings of the type o f [product] manufactured by the company during
the life of this agreement, rates o f pay may be subject to revision upward or
downward as of the date of the giving of the notice hereinafter provided for.
CHANGES IN GENERAL ECONOMIC CONDITIONS OR COMPANY’ S
COMPETITIVE POSITION

Some agreements provide that wage negotiations may be reopened
if changes in economic conditions or in the company’s competitive
position warrant it, or if such changes have imposed a hardship on
either party.
96. Wage Reopening When Economic Conditions Warrant
The company or the employees shall have the right to open negotiations in
regard to wages by giving 1 month's written notice of such intention when
economic conditions warrant such.



WAGE ADJUSTMENT PLANS

27

97. Reopening Geared to Substantial Change in Economic Conditions
It is further agreed that in the event that there be a substantial change in
economic conditions for and during the term of this contract warranting a
reconsideration and adjustment of the wages paid employees, either party to this
agreement shall have the right to reopen the wages fixed at the time of this
agreement upon giving no less than 30 days’ notice of such intention to the other
party.
98. Reopening Geared to Industry and Area Economic Status
The matter of the general wage scale shall be subject to negotiation during
the life of this agreement only if conditions economically and in the industry and
area warrant. It is specifically understood that matters of general wage scale
shall not be subject to arbitration provided in article — .
99. Reopening Based on Changes in Company’s Competitive or Economic Posi­
tion; Effective Date of Adjustment Outlined
In the event that at any time either party hereto feels that changes in the
company’s competitive or economic position justify a different general level
of wages in the plant it may, by written notice, signify its desire that all or
certain wage classifications or rates be changed and the matter shall then be
negotiated. I f as a result of consideration of such notice it is determined .by
negotiation or arbitration that any or all standard wage classifications or rates
should be changed, then such wage classifications or rates shall be adjusted and
the revised wage classifications or rates shall become the standard wage classifi­
cations or rates in place of those formerly in effect. Payment on revised basis
shall start on a date mutually agreed upon, or if date cannot be agreed upon,
shall become effective 30 days after written notice was served by complaining
party that change was desired.
100. Wage Reopening When Changed Economic Conditions Impose Hardship on
Either Party
Negotiations can be reopened on the matter of wages at such time as economic
conditions change to such an extent that a hardship is imposed on either party.
Notices to reopen must be given 30 days in advance.
101. Reopening Based on Companys Ability to Pay as Shown by Its Books
The wage structure, a basic part of this agreement, and appearing herein as
exhibit —, shall not be changed during the term of the agreement. However, the
ability of the company to pay higher or lower wages, as determined by its books
and records, and the standard of its industry, may be the basis of wage
negotiations prior to any renewal of the agreement.
102. Reopening for Upward Adjustment Based on Company’s Financial Position
It is mutually agreed that within 30 days prior to January 1 2 ,------ , the wage
schedule will be reviewed to ascertain whether the financial position of the
company, at that time, will permit of further upward adjustments and such
review is to include consideration of the question of two additional paid holidays.
If the review and negotiations connected therewith fail to terminate in a
mutual agreement, the provisions of article XVI, paragraph 1 (a) of this agree­
ment (no strike, no lock-out clause), shall be waived and either party shall enjoy
complete freedom of action.
103. Company May Reopen Wages if Operations Run at Loss for 3 Months
The company, likewise, reserves the right to reopen the discussion of wages
at any time after July 1 ,------, should its manufacturing operations be a loss for
791532*— 48------ 5




28

COLLECTIVE BARGAINING PROVISIONS

3 consecutive months. Such discussions shall continue for not more than 80
calendar days after the company has given the union notice of its intentions to
make any change in wage rates and if a mutually satisfactory understanding
cannot be concluded during such period, nothing in this agreement shall be con­
strued as limiting the right of the company to make any such change after the
expiration of said period.
104. Company Will Consider Wage Adjustment in Event of Drastic Inflation;
Union Will Consider Reduction if Necessary to Meet Competition.
The company declares that it will voluntarily consider remedying any great
hardship caused its employees by drastic inflation when it can be shown such
action becomes necessary; and the union declares that it will voluntarily con­
sider reduction in rates of pay of employees covered by this agreement if in its
judgment such reduction is necessary to meet a competitive situation which
interferes with the procurement of business by company.
CHANGES IN INDUSTRY OR AREA WAGE LEVELS

In some agreements, wage reopening is conditioned on the pre­
vailing wage level of competing companies. Reopening may be re­
quested by one or both of the parties if general wage increases or
decreases are adopted by a majority of the companies in the specific
industry, by the leaders o f the industry, or by other plants in the
area. In some instances, wage adjustments are applied to individual
job classifications to keep pace with “ going” rates for these jobs in
the area.
105. R eopening in E v en t o f Change in W a g e Structure Generally and N ationally
I f during the term of this agreement the wage structure generally and nationally
shall change then the parties agree to negotiate on the subject of wages.
106. Reopening if Industry Leaders Make General Wage Increases
If, during the life of this agreement, increased wage rates on a company-wide
basis are established and paid by t h e ------ yard packers, the union shall have
the right to reopen the wage rates by giving 30 days’ prior written notice of
such intention.
107. Reopening if 60 Percent of Industry Modifies Wage Policies
This agreement shall continue in full force and effect until September 1 , ------,
except that wage schedules shall continue until March 18, ------• The only
.
exception to this is that in case of a major or outstanding change in wage
policies in the industry, as represented by 60 percent of the productive capacity
o f t h e ------ industry, the wage question may be reopened on 30 days’ written
notice by either party.
108. Reopening if Three of Five Competitors in Area Renegotiate Wages
If at any time during the life of this contract three of the five competing
refineries in the ------ area open negotiations for general wage increase, the
union may, on 30 days’ written notice, open wage negotiations.
109. Reopening in Event of General Wage Changes in Area
In the event of any general fluctuation in wages in this area, either party
to this agreement shall be entitled to open negotiations under this section for
a revision of wages specified herein in accordance with such a trend.




WAGE ADJUSTMENT PLANS

29

110. Adjustment to Prevailing Rates in Similar Plants in Area
The company also agrees to cooperate with the union in any effort to keep the
rates in the plant covered by this contract in line with the majority of similar
plants in this competitive area.
111. Adjustment of Wages Not in Line With Area Practice
All employees whose wages or remuneration is not in accord with the existing
comparative standard rates in this area for like work shall be adjusted to a
favorable level; Necessary adjustments may be reached through collective
bargaining.
112. Reopening if Non-Association Member Has Competitive Advantage
If any dairy employer, who is not a member o f the [association], and therefore
not subject to the wage provisions o f this agreement, and who, by reason o f this
fact, has a competitive advantage over the employer who is signatory to this
agreement, it is agreed that the wage provisions of this agreement may be re­
opened for further negotiations and adjustments. I f no agreement can be reached
the matter shall be referred to arbitration as provided in article —.
REDUCTION IN WORKWEEK

Some agreements allow wages to be subject to renegotiation if the
workweek is reduced either through legislation or by the employer at
his own discretion since reductions of the workweek without a wage
adjustment may mean a considerable loss in weekly pay.
113. Wage Reopening if Workweek Reduced by Company
It is the intention o f the company to operate t h e ------ mill and powerhouse
Should conditions develop beyond the control of the company,
necessitating a reduction in the workweek schedule, the company will be willing
to reopen the contract for the purposes of discussing an upward revision of
wages.

6 days per week.

114. Reopening if Workweek Reduced by Legislation
In the event that the maximum workweek is reduced by legislative act to a
point below the regular workweek provided for herein, the question of wages may
be reopened for further negotiations.
115. Wage Reopening on Return to 5-Day Week
It is agreed that the wage clause may be reopened for negotiations in the event
the company desires to return to a 5-day week.

lie.

Reopening if Workweek Reduced Below J8 Hours.
j
for Retroactivity of Wage Adjustment.

Prerequisites Listed

It is also mutually agreed that should a reduction in hours occur whereby less
than 48 hours per week are worked, the union or the company may open the
agreement for wage negotiations. Temporary reduction of the 48-hour workweek
caused by conditions beyond the control of the company shall not be cause for
opening. In the event that wage negotiations are inaugurated due to conditions
within the company's control, the result of wage negotiations shall be effective
from the date when the reduction in workweek occurred, provided negotiations
are concluded or the case has been referred to some Federal or State agency
created for the purpose of settling labor disputes within 90 days after reduction in
hours betaine effective.




30

COLLECTIVE BARGAINING PROVISIONS
CHANGES IN PRICE OF PRODUCT

In rare instances, the wage question may be reopened in the event
the employer increases the price of the products manufactured or in
the price of the metal used in the employer’s operations.
117. Reopening Geared to Rise in Price of Product
In case of inflation and the rise in price o f ------products, the union workers
have a right to demand a higher union wage scale during negotiations of repre­
sentatives of both the union and the employers.
118. Reopening of Wages if Discontinuing of OPA Results in Change of Price o f
Copper
All wage increases granted in this contract shall continue during the term o f
this agreement only so long as the present program of the Office of Economic
Stabilization, Office of Price Administration, and Civilian Production Adminis­
tration as to price quotas, premiums, and subsidies set forth in the Office o f
Economic Stabilization release of March 28, 1946, OES Release 84, as supple­
mented by a telegram from the Office of Economic Stabilization and the Office o f
Price Administration dated April 16, 1946, shall remain in effect without reduc­
tion of the amount of money received by the company per pound of applicable
metal, and shall be applied to the operations of the company herein. In the event
of discontinuance or modification of said program resulting in a reduction, or
such reduction, the wages and compensation paid employees for work performed
hereunder shall be thereupon considered to be reopened for further negotiation..
119. Reopening if Price of Metal Used in Construction Changes
Contractor and union agree that the question of wages may be reopened at
any time by the union during the life of this agreement in the event there is
any change in the [city and State] base price of sheet metal.
120. Reopening if Prices Fall Below Cost of Production or if Natural Catastrophe
Occurs.
The minimum rates of pay shall be those set forth and described on addendum
“A” and made a part hereof; Provided, That at any time between September 1
and December 1, ------ , either party may open up negotiations with a view to
fixing the wage scale for the 1947-48 season. Within 5 days after the giving of
said notice, the parties agree to enter into negotiations with a view of agreeing
on a wage scale for the 1947-48 season. I f they are unable to reach an agree­
ment thereon within a period of 15 days, then either party shall have the right
to refer the matter to arbitration for settlement as provided in article VII hereof.
In the event of such disagreement, the parties hereto agree to immediately and
forthwith, instead of waiting 10 days, proceed to select the arbitrators, and
the arbitrators shall fix and determine the rates of pay for said season
within 30 days after the matter has been referred to them. Such wage
scale, when fixed and agreed on, shall remain in full force and effect for the
1947-48 season; except that in the event of any catastrophe during the term o f
contract which would be considered an act of God, such as a hurricane or freeze
o f other conditions beyond the company’s control, including a decline in the price
of the products sold by the company to a point below the cost of production,
processing and selling, wages shall be open to revision on the part of either
party on 1 week’s written notice.
Upon the giving of such written notice, as aforesaid, of an intention to re­
negotiate such wage scale for the reasons aforesaid and effective date and dura­




WAGE ADJUSTMENT PLANS

31

tion thereof, the parties shall immediately enter into negotiations with a view
to settling such new wage scale. If they are unable to agree on such new wage
scale within 15 days, each party shall have the right to refer the matter to arbi­
tration in the same manner above set forth for the fixing of the 1947-48 wage
scale.
Note.—This agreement covers processing of fruits.

Status of Agreement if Parties Fail to Agree on Wage Adjustment

A permissive clause merely permits wages to be renegotiated but
does not guarantee that a wage adjustment will actually be made.
Some permissive clauses, however, stipulate that if the parties fail to
agree on the amount of the wage adjustment, the matter will be re­
ferred to arbitration for a final determination. Others provide a
special wage tribunal to settle these disputes. I f arbitration is not
provided for, the ban on strikes and lock-outs may be lifted if the
parties fail to agree on the wage changes. Still others provide that
the wage clause may be canceled if no agreement is reached on wage
adjustment, but that the other provisions are to remain in force until
their expiration date. Other agreements allow cancellation of the
entire contract in the event the parties fail to agree on the wage
changes.
121. Arbitration if Parties Fail to Agree on Wage Adjustment
Either party to this contract may propose to the other at any time changes
in the general wage rates by giving to the other party 30 days’ formal written
notice of their proposal. The parties shall then meet within a week from receipt
o f such notice for the purpose of negotiating a new wage scale. If no agreement
is reached within 30 days from the service of written notice, the matter shall be
referred to arbitration as provided in article — .
122. Special Wage Arbitration Tribunal
It is hereby agreed that if there shall occur a general decUne or fall of earn­
ings of full fashioned hosiery workers in the industry, or if the cost o f pro­
duction on the same type and condition of equipment shall generaUy decline,
or if general conditions shall warrant a decrease, then the association on behalf
o f all its members covered by this agreement, may request in writing and in
detail a specific revision o f the rates of pay.
In the event there shall occur a rise in the earnings of full fashioned hosiery
workers in the industry, or an increase in the cost of living, or if conditions gen­
erally shall warrant an increase in earnings, then the union may request in
writing and in detail a specific revision of the rates of pay.
In either event, the union and the association shall negotiate the request and
if they cannot agree within 15 days after the receipt thereof upon a revised sched­
ule of rates o f pay, then that matter shaU be submitted to arbitration by a wage
tribunal, composed o f three persons, who shall be selected as follows: The
union shall designate one person, the association shall designate one person
(these two persons shall be known as the party representatives), and these two
shall select a third person, who shall be known as the referee. In the event
the two party representatives shall fail to agree upon a referee within 5 days
after the expiration of the aforesaid 15-day period o f negotiations, then the




32

COLLECTIVE BARGAINING PROVISIONS

impartial chairman shall designate the referee, after consultation with the
parties to the agreement.
The wage tribunal shall hear testimony as expeditiously as possible and
render its decision, which shall be final conclusively binding upon the parties
hereto. A majority decision by the wage tribunal shall be the decision of the
wage tribunal.
The wage tribunal may revise the schedule of rates under the provision o f
this clause, but only after considering the operating conditions in the member
mills and their continued sound operation, and may condition the revision of
the schedule of rates upon changes in method of operation, installation o f new
equipment, or fulfillment of any other condition, which in its opinion will tend
toward job and earning security.
123. Standards to Govern Arbitrator's Decision Stipulated
On or a ft e r ------ the union or the employer may initiate negotiations by giv­
ing 14 days’ written notice for an increase or reduction in the piece or time rates
provided in this agreement. Upon failure to agree either party may submit the
matter to arbitration in accordance with section — of this contract. In con­
sidering such matter the arbitrator shall consider all pertinent factors, and shall
hear both sides, giving weight particularly to the elements of the changes in
the cost of living, degree of business prosperity in the branch or division in
question, competitive conditions generally, domestic and foreign, and unfilled
orders on hand. The arbitrator will be expected to render a decision within
2 weeks after the hearing.
124. Scope of Arbitrator's Authority Specified
At any time during the term hereof, the union shall have the right to demand
an increase in wages, based upon an increase in the cost of living. Should the
employer reject this demand, the demand shall be referred to arbitration as
provided for in paragraph — hereof, and the arbitration award shall fix the
amount of such increase and the time during which it shall remain in effect, but
not beyond [the expiration date o f the agreement].
125. Agreement Continues to Stated Expiration Date if Parties Fail To Agree on
Adjustment
The terms and conditions of this agreement shall continue in effect until
midnight April 3 0 ,------; Provided, however, That either party may, on April 1 ,
------ , give written notice to the other party of its desire to negotiate a general
and uniform change in rates of pay. Within 5 days after the giving of such
notice, the parties shall meet for the purpose of negotiating such issue. Failing
agreement on such issue on or before April 30 ,------, this agreement shall remain
in effect until midnight April 3 0 ,------ .
126. Wage Clause Terminated; Other Contract Provisions Remain in Effect
The plant-wide level of wages in effect on the date this agreement is signed
will not be changed by plant-wide wage increases or decreases during the term
of this agreement, except should either of the parties desire to negotiate
a change of this wage level, 60 days’ written notice to that effect shall be given.
During said 60-day period no change in the plant-wide wage level will be made
except by agreement between the company and the union. At the end of the
60-day period if no agreement is reached, the obligation of either party to main­
tain the then existing plant-wide level of wages shall be terminated, but all
other provisions of this agreement shall remain in effect.




WAGE ADJUSTM ENT PLANS

33

127. Agreement Terminated Unless Jointly Extended for Further Negotiations ;
Cost-of-Living Bonus Continued if no Reopening
On or after September 1 ,------ , either party hereto may once request by written
notice a conference to consider the question of wages. I f within a period o f
30 days from receipt of said notice an agreement is not reached on the question of
wages then this contract shall forthwith terminate unless the parties mutually
agree to extend this contract for a specific period for the continuation of negoti­
ations. In the event neither party requests such conference on or after Septem­
ber 1 ,------ , then said payment o f said provisional living allowance of $17.70 per
month shall continue in effect to and including December 3 1 ,------ , at which time
it shall forthwith cease and terminate.
128. Strike Permitted if Parties Fail To Agree on Wage Adjustment
Either party may give 10 days’ written notice to the other party o f the time
and place for the commencement of a conference o f the parties for the purpose
of negotiating changes in wage rates. In the event that the parties fail to
reach an agreement within 60 days from the time notice was given to begin
conferences both parties shall be relieved from compliance with rule 5 of arti­
cle — (no-strike no-lock-out clause).
129. Strike Permitted Provided Secret Strike Vote Taken on Company Premises
Under Government Supervision
This agreement shall become effective upon date of signing and shall remain
in full force until April 15, ------, inclusive, and thereafter from year to year
unless within the 10-day period immediately preceding the 30 days prior to any
date of expiration, notice is given in writing to the other party by the party
desiring the change. Provided, however, That either party may reopen this
agreement once, on or after April 15,------ (upon giving o f 10 days’ prior written
notice) for the sole purpose of negotiating upon the subject o f wages. All pro­
visions of this agreement shall remain in full force and effect after reopening as
above provided, except that employees constituting a majority of the bargaining
unit may “ strike” in support of the “wage” demands upon the following con­
ditions, namely:
(1) Not less than the 40 days following the date of notice of reopening, a
majority of the employees o f the bargaining unit have voted by secret ballot for
such strike;
(2) Such vote shall be conducted on the company premises during working
hours and at company expense under the supervision of the United States
Conciliation Service or the National Labor Relations Board; and
(3) The ballot for taking such a vote shall read as follow s: “Do you vote for
an immediate strike for the wage demands made by local — upon the company?”
Y e s ____ N o ____
A “ strike” (for the purpose of this paragraph) shall mean the concerted action
of certain individual employees constituting a majority o f the bargaining unit
in remaining away from the company’s premises until settlement of the “ wage”
demands.
130. Action A fter Failure to Reach Settlement Does Not Affect Agreement; NoStrike Clause Inoperative
Either party to this agreement may propose to the other at any time adjust­
ments in rates of pay or wages by giving the other party written notice of the
adjustments desired. Whereupon, the parties will meet promptly for discussion
and will endeavor in good faith to reach an agreement. I f no agreement is
reached within 15 days from the service o f such written notice aforesaid (or such




34

COLLECTIVE BARGAINING PROVISIONS

time as is mutually agreed upon), then either party may be free to take such
action as it deems proper. Any action taken under this section shall not affect
the remainder of the agreement, and the no-strike section shall become in­
operative.
131. No-Strike Clause Not Applicable to Wage Issues; Other Agreement Terms
Remain in Effect
Either party to this agreement shall have the right to open negotiations on
wages and other economic issues by serving 30 days’ written notice upon the other
party of such desire at any time after March 21 ,------. A period of 30 days shall
be provided for negotiations on such demands, and any Such adjustments agreed
upon within 60 days of such notice shall become effective 60 days after the date
of such notice.
If the parties are unable to reach an agreement under the provisions of this
paragraph on these issues, the first sentence of paragraph 3.03 (no strike, no
lock-out clause) shall not be applicable with respect to these issues but all other
provisions of this general agreement shall remain in full force and effect.
132. Agreement Terminates SO Days A fter Notice if Negotiations Fail
At any time during the month of April, and at any time during the month
of September, either party may request a revision in wages and rates of pay,
whereupon the parties shall negotiate in good faith for a period of 15 days. If
the parties are unable to reach an agreement within such 15-day negotiating
period, then either party dissatisfied may within 1 week after the expiration of
said 15-day negotiating period, give to the other party, notice in writing, of the
termination of the contract. Upon such written notice of the termination of
the contract being duly given, the contract shall remain in effect for a period
of 30 days from the service of such notice, but shall thereupon at the expiration
of such 30-day period stand terminated, and of no further force and effect.
133. Agreement Terminated on Secret Vote of 75 Percent of Employees if
Negotiations Fail A fter 60 D ays; Wages and Other Money Items Subject
to Revision
This agreement may be opened once after September 28, ------ , upon 60 days
notice in writing by either party for the purpose of negotiating in respect to
base wages, overtime pay, holiday pay, and vacation pay. If, after 60 days
of negotiation following the opening of the agreement subsequent to September
28, ------ , as provided above, the parties have failed to reach agreement, the
employees may vote to terminate this agreement on a secret ballot in a poll at a
place to be mutually agreed upon under the supervision of a committee of 3
persons selected by the employer and the union. If 75 percent of the employees
vote to terminate this agreement in the poll as conducted above, this agreement
shall then expire on the first Monday following the tally of the votes in the
poll. Only one such poll may be conducted during the life of this agreement and
it must take place after November 28 ,------, and before September 2 8 ,------ .
134. Effective Date of Wage Adjustment Specified, Whether Mutually Agreed
Upon or Awarded by Arbitrator
This agreement shall commence on the 4th day of F ebruary------ , and shall
end on the 31st day of January------ ; Provided, however, That not later than
December 15, ------ , either the union or the employer may give notice that it
desires an increase or decrease in wages, as the case may be, and call for a
conference thereon. I f any change shall be agreed upon, it shall become effective
as of February 1 ,------ . If after notice for an increase or decrease in wages has
been requested, and an agreement with respect thereto has not been reached on
the 15th day of January------ , the matter shall be submitted to arbitration in



WAGE ADJUSTM ENT PLANS

35

accordance with the arbitration provision contained in this agreement. Any
increase or decrease in wages awarded by the arbitrators shall be effective as
of February 1 ,------ .

Automatic Wage Adjustment Plans
An automatic wage adjustment clause makes specified wage adjust­
ments mandatory whenever certain stipulated changes take place in
the factors cited in the agreement. Such a clause makes unnecessary
frequent negotiations on the wage issue.
Automatic plans may be designed to adjust wage rates to fluctuations
in the purchasing power of wages or in the ability o f the enterprise
to pay higher or lower wages. They are based on a recognition, in
advance, that a wage adjustment should automatically follow changes
in cost of living, specified prices, or the rate of profit.
In the case o f automatic adjustments to changes in the purchasing
power o f wages, the purpose is to maintain at a fixed level during
the life of the agreement the amount of goods and services the wages
will buy. I f wage rates are geared to cost of living, then “ real wages”—
the amount of goods and services which the workers can buy—remain
the same.
Automatic Adjustments Based on Cost of Living

Automatic cost of living adjustment or “ escalator” clauses make
mandatory a specified wage adjustment if there is a change in the
cost of living. Wages may be automatically adjusted whenever a
specified change occurs in a cost-of-living or price index or may be
adjusted to whatever change occurs in the index during a specified time
interval.
Some clauses provide for wage adjustments corresponding to per­
centage changes in a consumers’ price index; others base adjustments
on point changes in an index. The wage change may be a flat monetary
amount, that is, a uniform number o f cents per hour for all workers,
or the wage rates may be adjusted by the same percentage that the
index has changed. The change in wages may correspond exactly to
the degree o f change in the cost of living index. It may be less or more.
A percentage wage increase gives the more highly paid workers a
larger money increase, while a uniform cents-per-hour wage adjust­
ment is more favorable to the lower paid workers. A percentage
change retains the same relative difference between job classifications,
but alters existing monetary differentials between the rates for
different classifications. A flat increase in cents-per-hour gives the
lower paid workers a larger percentage increase and reduces the pro­
portionate spread between them and the more highly paid workers.8
8 F or a more detailed discussion o f point v. percentage changes, se e : “ Adjustm ent o f
W ages to Changes in the Cost o f Living,” M onthly Labor Review, November 1946, reprinted
as Serial No. R 1862.
791532°— 48-------6




36

COLLECTIVE BARGAINING PROVISIONS

135. One Cent Change for Each Point Change in Bureau of Labor Statistics Index
During the life of this agreement the base rates of each individual employee
will be adjusted 1 cent for each point increase or decrease in the Bureau of
Labor Statistics Cost of Living Index above or below the index for December
1946: Provided, however, no wage rate shall be reduced below the rate in effect
September 3 , ------ .
Any increase or decrease in wages made in accordance with such index shall
be effective on the first day of the workweek following the release of such index
by the Bureau of Labor Statistics.
136. Automatic Percent Increase to Specified Percent Increase in Bureau of
Labor Statistics City Index
It is hereby agreed that should cost o f living figures for the city of -----issued by the United States Bureau of Labor Statistics, at any time during the
term of this agreement, show an increase of 3 percent or more above the figures
issued nearest to March 1 , ------ , a like percentage o f increase shall be made
on all rates specified in this agreement, such increases payable from the date
such increases in cost-of-living figures were issued by the United States Bureau of
Labor Statistics.
137. Upward and Dowmward Percent Adjustment Equal to Specified Percent
Change in Index During 6-Month Period
The rates hereinabove set forth shall become effective July 1 , ------ , in accord­
ance with agreement between negotiating committees dated August 16,------ .
I f the Bureau of Labor Statistics Cost of Living Index for th e ------ area is 5
percent or more higher or lower on January 15, ------ , than it was on July 15,
------ , then the wages payable to employees covered hereunder and the contract
rates shall be automatically increased or decreased the same percentage on
January 1 5 ,------ .
138. Percent Wage Adjustment Based on Percent Change in Index; Adjustments
at 3-Month Intervals; Limits on Downward Adjustments
As used hereinafter, the “ base level” of the cost of living in [city] shall be
considered to be at 130.5 index points, as shown upon the Consumers’ Price
Indexes for Moderate Income Families, published by the Bureau o f Labor
Statistics of the United States Department of Labor.
Upon every rise or fall in said “ Consumers’ Price Indexes for Moderate Income
Families” for [city] of 3 percent or more of its base level, the employer will
increase or decrease the wages of each of his employees by an equal percentage
o f those wages on the date of said increase, or decrease; Provided, however,
That no such increase or decrease shall be made before August 1 5 ,------ , or less
than 3 months after any prior such change in wages; and no such change in
wages shall bring about a reduction of the wages of any employee below the level
o f those wages 1 week after the date of the execution of this agreement, or below
the minimum wage rates hereinafter provided.
139. Percent Wage Adjustment Based on Point Change in In d ex; Limit on
Downward Adjustment
Because of the danger of inflation or rapid rise in the cost of living, it Is
agreed that each time that the cost-of-living index of the United States Bureau
of Labor Satistics rises 2% points or more, during the life of this contract,
the employer will increase the wage rate of each of his employees a corres­
ponding percentage. Similarly, whenever the cost-of-living index declines 2y2
points or more, wages shall be decreased a corresponding percentage, except




WAGE ADJUSTMENT PLANS

37

that in no event shall a lesser wage rate be paid than that provided for each
individual at the inception of this agreement or any extension thereof. Within
5 days after the receipt o f a notice containing such request, the company shall
appoint representatives empowered to act jointly with a committee of the union
for the purpose of making such wage and hourly rate adjustments. AH such
increases and decreases shall be retroactive to the date of notification. The
cost-of-living index is assumed to be 134.0 as o f M ay,------.
140. Percent Wage Change Based on Specified Point Change in Index if Change
Lasts 2 Months
Said salaries and wages shall remain in effect for the life of this agreement,
except that salary and wage scales shall be adjusted automatically during the
term of this agreement if the Consumers' Price Index for Large Cities, published
by the United States Department o f Labor, increases or decreases more than 5
points from the index figure for the month which includes the date on which
this agreement becomes effective [date], which figure shall constitute the base
index figure for the purpose of this agreement. Changes in salary and wage
schedule shall only be considered if such variations from the said base index
figure remain for another 30 days succeeding the month during which the change
of more than 5 points occurred.
The monthly indices used as a basis for making automatic adjustments pro­
vided for in this article shall be the actual months covered by the index and
not the date o f their release or publication. The base index figure shall be
that published for the month in which this agreement becomes effective [date]
and not the date of its publication.
Any such automatic adjustment in wages and salaries shall be retroactive to
the beginning of the first pay week in any one month for which the index had
increased or decreased, as outlined in [the first] section of this article.
Notwithstanding any provisions contained in [the first] paragraph hereof,
it is expressly agreed that in the event of a decrease in the cost of living during
the term of this agreement the wage scales payable by the company shall not in
any case be adjusted below the wage scales established by this agreement, so
that the wage scales established hereunder shall be the floor of such scales
for the term of this agreement.
Examples o f the cost-of-living clause are as follow s:
(1) Assuming that the base index would be 136.0 and should it rise to 141.0
and remain at this figure for another 30 days, this would result in an automatic
salary and wage increase equal to 5 points, which, measured on the figure of
136.0, would amount to 3.68 percent of the prevailing base rates in the case of
increases.
(2) Assuming that the base index would be 136.0 and should it fall to 131.0
and remain at this figure for another 30 days, this would result in an automatic
salary and wage decrease equal to 5 points which, measured on the figure of
136.0, would amount to 3.68 percent of the prevailing base rates in the case of
decreases.
141. Percent Wage Change Based on Point Change in Index—Adjustment at
6-Month Intervals
During the life of this contract rates may be adjusted every 6 months in
accordance with the composite index, Changes in Cost of Living, as published
by Department of Labor, Washington, D. C. Adjustments may be made as of
April 15 and October 15 on the basis of 1 percent of the base rate of pay for
each point change during the preceding 6 months. It is understood that the
index for [city] “all items” be used for the purpose.




38

COLLECTIVE BARGAINING PROVISIONS

142. Flat Wage Changes Based on Point Changes
It is agreed that whenever the cost of living as shown by the official monthly
cost-of-living index o f the Bureau of Labor Statistics, United States Department
o f Labor, has risen 3 full points, using 115.6 as the base, an increase of 2 cents
per hour in base wage rates will be granted, to become effective as of the
fifteenth day of the first calendar month in which such increase is shown by such
official figures for each additional 3 full point increase in said index an addi­
tional increase o f 2 cents per hour will be granted effective in like manner.
Piecework rates will be adjusted proportionately.
143. Automatic Adjustment to Specified Point Change in Average of Specified
Commodities in Bureau of Labor Statistics Index
I f the cost of living as reflected in the figures of the Bureau o f Labor Statistics
of the United States Department of Labor as of the date hereof shall fluctuate 5
points in the average o f the following commodities: food, clothing, fuel, and
housing—the wage scale shall be adjusted accordingly after giving 30 days’
notice of such desire by either party, subject to such governmental regulations
or orders as may be applicable.

Automatic Adjustments Based on Prevailing Industry or Area Wages

A few agreements provide that wages are to be automatically ad­
justed to meet rates paid by competing companies in the industry or
area. Scales may be increased or decreased automatically in case o f
increase or decrease in the wage structure nationally or in an industry
or in a particular branch of an industry.
144. Automatic Increase in Event of General Wage Increase in Industry
The company agrees that in the event of a general wage increase in t h e -----industry, that they will give the same increase.
145. Automatic Increase if Industry Raises W ages; Company Right to Reduce
Wages if Industry Does So
During the continuance of this agreement whenever there is a general increase
in the rates of wages in effect in the worsted branch of t h e ------ industry the
company will increase wages accordingly and whenever there is a general de­
crease of wages in said branch of said industry it shall have the right to decrease
wages accordingly.
146. Automatic Adjustment to Increases Granted by Industry Pace Setters
It is stipulated and agreed that the wage rates set forth in a letter from the
company to the union dated September 18,------ , and acknowledged by the union,
shall be the prevailing wage rates during the life of this agreement, with the
proviso that in the event of a general wage adjustment within the so-called “Big
Four,” namely, ------ , ------ , ------ , ------ , the amount of such adjustment and/or
adjustments will be automatically reflected in the rates set forth in the existing
contract between the parties.
147. Company Will Give Increase Given by Competitors in Area
In consideration of the union and its members agreeing that there will be no
strikes, refusal to work, slow-downs or interference with the company’s producction as a result of the present wage demand, the company agrees that it will
give the increase given by the big th re e ------ mills o f [city] effective as o f the




WAGE ADJUSTMENT PLANS

39

date agreed to by s a id ----- mills. In the event that there is a difference in the
increase given by the big three------ mills, the company will follow the majority,
regardless of whether the majority is higher or lower. In the event of a differ­
ence in the effective date, the company will make its increase effective as o f
the middle of the three b ig ------mills.
148. Company to Maintain Job Rates Not Lower Than “ Weighted-Average Rate”
of Competing Plants in Area
The company will maintain a wage rate for each job classification not lower
than the weighted-average rate of pay currently in effect and paid for a comparable
job classification by other plants in the general locality within a radius of 20 miles
from its [city] plant. It is nor to be construed that the company’s rates of pay
will be the highest paid by any one individual plant for comparable job classi­
fications, but it does mean that each rate of pay will be not lower than the
weighted-average rate in the aforesaid locality.
149. Automatic Adjustment to Equal Prevailing Minimum Rates in Area
The company hereby agrees that it will at all times pay rates at least equal to
the prevailing minimum rates for similar work in this area.
150. Automatic Adjustment to Going Area Rates on Specified Date
The company agrees to continue to pay wages in a fair relationship to going
rates in th e ------ area, and that on January 1 , ------- , wages at th e ------ company
will be adjusted by mutual agreement, based upon the [year] pattern of wages
then paid in the area.
151. Automatic Adjustment to Prevailing Rate Paid Under Local Agreements
Negotiated by Affiliated Unions
Provided, however, That the company agrees that all of its employees at the
plant of the company who are in a classification which but for this agreement
would be represented by some local union affiliated with the [international union]
other than the said [international union], shall be paid the same rates of pay
as do apply for such employees under the prevailing terms of local agreements
which may be in effect with such other union in that particular locality for that
specific classification of work, at the time of execution of supplemental agreement.
152. Adjustment “ On Comparable Basis” to Competitor's Increase
During the life of this agreement if any competitor doing business in our same
trading area increases the wage of his worker above our scale we offer to meet such
increase on a comparable basis.
153. Employer to Pay Rates Comparable to Those Paid by Named Competitors
The company shall pay to employees performing [product] work in the com­
pany’s plants, rates comparable to those paid for the same type of [product]
b y ------ corporation at [c ity ]; b y ------- company at [city] and b y ------- company at
[city].
154. Employer to Match Increase Obtained by Union in Agreement With Com­
peting Employers
Should any increase in the wage scales existing under the agreement presently
in force between the [employers’ association] and lo ca ls------ of th e ------- Inter­
national Union of America, be agreed to by them or otherwise fixed, during the
term of this agreement, then and in such event, the employer herein agrees that
he will be bound thereby and will be obligated to pay to his employees hereunder,
retroactive to February 1,------ , such increased wage scales.




40

COLLECTIVE BARGAINING PROVISIONS

155. Automatic Increases Equal to Those Granted in Other Specified Plants of
Employer
If, during the term of this agreement, the company shall grant to all hourly
production employees at all other works o f the company engaged in the manu­
facture of [product] i. e. [name of plants] ( 1 ) a general wage increase or ( 2 )
beneficial changes in the vacation-with-pay plan, then such general wage in­
crease or changes in the vacation-with-pay plan shall forthwith be placed in
effect for the employees of ------ works covered by this agreement; providedt
however, That if the amounts of the general wage increases at said works are
not identical then the company will place in effect a general wage increase
a t ------ works equal to the highest general wage increase placed in effect at
the aforementioned works. A “ general wage increase” means an increase iden­
tical in amount per hour for all employes in the production bargaining unit
over and above the $0.18% per hour recently placed in effect or currently being
offered at the aforesaid works.

Automatic Adjustments Based on Reduction in Workweek or Change in
Minimum Wages

Agreements sometimes protect employees against loss o f ‘‘take
home” pay when the workweek is reduced by providing for auto­
matic, specified adjustment in wages. Guaranties may be given that
no worker will have his wages reduced or provision may be made for
a specific amount or percentage of increase in wage rates.
156. Specified Wage Increase if Federal Minimum Wage Increased to 65 Ocnts
It is agreed that if, during the term of this contract, or any extension thereof,
the United States Government changes the minimum wage law to provide for
a minimum wage of 65 cents per hour, that simultaneously with the effective date
of such minimum wage law the wage rate per hour in classifications (a ) to (d),
inclusive, above, shall be increased 2 % cents per hour.
157. Specified Monetary Increase if Workweek Falls Below 48 Hours
If during 1947, the company, for any reason whatsoever, should drop the
schedule for the regular full workweek below 48 hours an additional 6 cents per
hour will be paid for the period affected.
158. Specified Percent Increase if Hours Cut From 48 to 40
Hours of employment shall be based upon an 8-hour day and a 48-hour week
for the duration of this agreement. However, the practicability of reducing the
workweek to 40 hours may* be reviewed on May 1 , ------ . If, as a result o f that
review, a decision is reached to so reduce the workweek, it is agreed that all
wages set forth in exhibit A shall be increased by 8% percent.
159. Specified Increase if Workweek Cut from 6 to 5 Days
Effective as of the date of the signing of this agreement by the company and
the union, an increase of $ 1 per 8-hour shift in all present wage classifications
will be granted to employees covered by this agreement, with 50 cents per 8-hour
shift thereof retroactive to and including March 1 9 ,------ . This increase shall
be effective while the plant is operating on a 6-day per week basis.
It is the policy of the company to operate the plant on 6 days per week basis
with 1 shut-down day per week, but in the event it becomes necessary for any
reason to operate on a 5 days per week basis and in conformance with the rec­




WAGE ADJUSTM ENT PLANS

41

ommendations of the Nonferrous Fact-Finding Board, an additional increase of
48 cents per 8-hour shift will be granted in all wage classifications.
160. Agreement to Conform Automatically to New Legal Minimum Wage, if
Higher, and Hours, if Lower
It is hereby mutually agreed that in the event that the Federal, State, or
municipal government shall pass a law, statute, or ordinance limiting the hours
of work and establishing a minimum wage applicable’ to the employer’s business,
such law, statute, or ordinance is to supersede this agreement in respect to the
hours of work and minimum wage to be paid herein, provided the minimum
wages so declared by law are higher or hours less than those provided herein.
161. No Reduction in Weekly Wages and Upward Adjustment of Piece Rates if
Law Limits Hours of Work
In the event that either a State or Federal law reduces the working week to
less than 40 hours, the wages actually received by week workers shall not be
reduced by virtue of such reduction in hours, and the piecework rates shall be
revised upwards so that no employee suffers a loss of money wages as the
result of any legislation limiting the number of hours which the employee may
work.

Automatic Adjustments Based on Price of Product

Provisions calling for the automatic adjustment of wages to the
price of a commodity are rare in this country, except in nonferrous
metal mining and smelting. Such agreements provide for wage in­
creases and decreases as the prices change, but specify a minimum rate
below which wages cannot fall during the life of the agreement. The
adjustments may be made in line with the prices of the several metals
produced by a particular mine, or on an “ average” or a combined price
change o f the metals produced or on the price of one metal.
Unions have generally opposed this system of wage adjustment on
the ground that such a sliding wage adjustment has no relationship
to the needs o f the workers who may be forced to take a wage cut when
they can least afford it. Moreover, where the wage scale is based on
an industry average, a particular group of workers may have their pay
adjusted according to the average price even though their employer
may receive far more for his metal or metals than the average market
price.
162. Weekly Bonus Geared to Quoted Selling Price of Metal
Effective July 1, — —, the company agrees to pay a weekly lead price bonus, as
follow s:
“25 cents per shift worked for each 1 cent above 12‘ per pound lead [city].
Fractions shall be paid in proportion. The [city] lead price shall be the average
weekly price as quoted in the Engineering and Mining Journal for the current
week. In the event the price of lead shall drop below 13y2 cents per pound the
company will agree to continue to pay a lead price bonus o f 37 y2 cents per shift
worked.”




42

COLLECTIVE BARGAINING PROVISIONS

163. Upward and Downward Adjustment Based on Sales Price
All cigars sold to retail at more than quoted retail price, the making price
shall be advanced $2 per 1,000 for each 1 cent increase in retail sales price. The
same formula shall apply on reduced selling price down to list price only. This
shall apply to cigars in any class.
164. Bonus Geared to Price of Product Plus Upward Wage Adjustment to Match
Increase in Specific Industry
It is agreed, that if, during the term o f this contract, and its continuation as
agreed upon by the joint industrial relations board, there shall be variations in the
price of shingles as determined by methods to be agreed upon, bonus payments
shall be made.
1 . The minimum wage shall remain at
per hour and all differentials be­
tween the bracket classifications shall remain the same except as they may be
adjusted under art. — , and with the further exception that in the event wage
rates in the lumber industry are adjusted upward, the above minimum, together
with all other classifications shall be adjusted uniformly upward in an amount
sufficient to maintain the now existing differential between the minimums of the
Douglas fir area and the shingle industry, and thereafter shall be adjusted uni­
formly upward or downward to maintain said differential but shall in no event
be reduced below the rates now in effect except that if lumber industry increases
are made retroactive, the date the adjustment in the shingle industry shall be
effective shall be the beginning of the pay roll during which the lumber industry
increase is agreed to.
2. Effective December 1 ------, a bonus of 10 cents per hour at straight time for
all hours worked shall be paid in all classifications. (See sec. —.)
3. A committee which shall be chosen by the joint board shall meet on the third
Friday in the months of April, July, October, and January, beginning with the
month of A p ril------ , for the purpose of determining and announcing changes in
the hourly bonus rate.
4. Under rules which shall be agreed to by the joint board, the net mill price
of grades No. 1, No. 2, and No. 3, 16-inch shingles shall be obtained as of the
close of each of the 3 months preceding the month in which the committee
meeting is held. The average of the prices thus obtained shall be used—allowing
for 60 percent of grade No. 1 shingles, 30 percent of No. 2, and 10 percent of
No. 3—to determine the amount of price change.
For each full 4 cents increase in price above $7.85 per square, the bonus rate
shall be increased 1 cent per hour.
For each full 4 cents decrease in price, the bonus rate shall be decreased 1 cent
per hour.
5. Should the regular wage rates be changed in accord with subsection 1, under
this section, the current hourly bonus rate shall be increased or decreased to
correspond exactly with such changes, except that the bonus set up for the first
period of December 1 ,------, to May 1 ,------ , shall not be affected by this section.
165. Sliding Scale Geared to Price of Metal Suspetided
The sliding scale relating wages to the price of [metal] is suspended for the
duration of this agreement.

Combination Permissive and Automatic Plans
Some agreements combine permissive and automatic wage adjust­
ment plans. Within certain limits, wage adjustments are automatic,




WAGE ADJUSTMENT PLANS

43

but beyond these limits rates become a subject for negotiation between
management and the union.
166. One-Cent Adjustment for Every Point Change Within Fixed 20-Point Range;
Negotiations Thereafter
It is agreed between the company and the union, that paragraph — of article —
of the present agreement (which permits either party to reopen wage question
on 30 days’ notice “when economic conditions warrant” ) between them be
temporarily suspended during the substitution of the following procedure, which
provides for an automatic cost-of-living adjustment on wages within the 20-point
range of 131.1 and 151.1 of the Index of Consumer Prices for Moderate Income
Families, including all items, as published monthly by the United States
Department of Labor.
The above mentioned automatic cost-of-living adjustment shall go into effect
as of September 1 6 ,------ , for the balance of the month of September and the
month of October and thereafter is to be changed from month to month, up or
down, as the case may be, based on the above mentioned index as published
monthly by the United States Department of Labor.
This cost-of-living adjustment is to be granted on the basic rates of pay now
in effect, at the rate of 1 cent per hour for each point, bringing it up or down,,
from month to month as the index may indicate, starting with the index figure
of 131.1 as of April 15,------ , and until such index figure reaches 151.1, equivalent
to a cost-of-living adjustment of 20 cents per hour, actually being paid by the
companies, at which point the companies and the union would again meet to
review the situation on wages. The latest information available being,
that the index figure for August 15, ------ , is 143.7, this would mean that the
cost-of-living adjustment for the period from September 16, ------ , to end o f
October would be at the rate of 13 cents per hour.
In order to facilitate computation of the adjustment it is agreed that if the
index should show an exact one-half point difference, then it would count for
one-half cent, but that all fractions under one-half point be disregarded and
over one-half point be counted as one full point.
It is agreed that in no case would the present basic wage rates be reduced
during the life of the agreement.
It is agreed that each monthly change shall be in effect as of the first pay period
in such month.
It is agreed that this procedure is based on the Index of Consumer Prices for
Moderate Income Families, including all items, as published monthly by the United
States Department of Labor, and that the proposed cost-of-living adjustment will
be increased or decreased from month to month as the index figure may fluctuate.
167. Percent Wage Adjustments Twice Yearly Based on Percent BL 8 Index
Changes; Negotiations Including Arbitration if Index Rises Abnormally
Between Periods
All the parties hereto recognize that the United States today is laboring under
a state of emergency due to world conditions generally, and, as a result thereof,
general rises in the cost of living are possibly in the offing; it is therefore
agreed:
(a) That if, during the time of this agreement, the general cost of living rises
to 5 percent or over from that of January 1, ------ , this to be determined by
the Department of Labor Statistics, then and in that event, the scales of wages
herein provided, and the pay of such workers receiving more than the pay herein
provided, shall be increased by the employers proportionately to such existing
rise or rises.



44

COLLECTIVE BARGAINING PROVISIONS

( 6) Such increases in the scale of wages, proportionate and equivalent to the
rise of 5 percent or over in the cost of living as stipulated above, shall become
effective twice during each year, if the emergency so requires, on July 1 and
January 1. In the event that the rise in the cost of living does not reach 5
percent during the first 6-month period, the increase in the scales o f wages
shall become effective immediately, as soon as the cost o f living rises to and
over 5 percent at any time during the second period.
It is understood by both parties that should the cost of living rise abnormally
during any of the two given periods, namely, July 1 and January 1, the union
and the employers will meet in conference to discuss ways and means o f meeting
any unusual emergency of this kind. In the event of any disagreement result­
ing from such conference the matter shall be referred for arbitration, as provided
in paragraph — of this agreement.
(c) In the event that the cost of living will rise in excess o f 5 percent
during each specified 6-month period, the union shall have the right to ask
for a further adjustment in the scales, equivalent to the amount over and
above the 5 percent increase as stipulated in the preceding paragraph. Such
additional increase shall also become effective on July 1 and on January 1.
In the event of any dispute as to such additional increase above 5 percent said
matter shall be referred for arbitration, as provided in paragraph — of this
agreement.

Cost-of-Living Bonus
Wage adjustments based on changes in the cost of living are an
addition to existing wage rates and become an integral part o f these
rates. Allowances for increased cost of living, however, may take the
form of a temporary bonus supplementary to and kept separate from
the regular wage rates.
168. Cost-of-Living Bonus Continued
It is agreed that the cost-of-living bonus granted in previous agreements shall
continue in full force and effect during the life of this contract.
169. Flat Monthly Cost-of-Living Bonus
To pay to each employee employed in said classifications a provisional living
allowance of $17.70 per month. Said provisional living allowance shall not
become a part of basic wages and shall be included in computing employee
benefits, vacation allowance, -holiday pay, overtime payments, and tax
deductions.
170. Monthly Cost-of-Living Bonus Graduated to Employees9Hourly Rates
That effective March 1, ------, and continuing through September 30, ------ ,
and thereafter, if not terminated on such date by 10 days’ prior written notice by
one party to the other, on a month-to-month basis until terminated by either
party at the end of any such month by 10 days’ prior written notice to the
other, a further cost-of-living bonus shall be paid each month to each employee
actively and continuously working during the month, such bonus for each em­
ployee to be equivalent in amount to the rate hereafter set forth applicable
to such employee for each pay-roll hour for such employee, with time and
one-half such rate for all hours worked in excess of 40 hours per week, and to be
calculated and paid at the end of each month, except the bonuses for March
and April, which shall be calculated and paid in the ordinary course of business
in the immediate future. The bonus rates shall be as follow s:




45

WAGE ADJUSTMENT PLANS

The bonus rats
shall be
(cents)

Where the basic hourly rate is—
$0.82 or below_________________________________________________ 10.4
$0.83-$0.87_____________________________________________________11.3
$0.88-$0.92_____________________________________________________ 12.1
$0.93-$0.97______________________________________________________12.9
$0.98-$1.02______________________________________________________13. 7
$1.03-$1.07______________________________________________________14.6
$1.08-$1.12______________________________________________________15. 5
$1.13-$1.17_____________________________________________________ 16.3
$1.18-$1.22______________________________________________________17.2
$1.23-$1.27______________________________________________________18.0
$1.28-$1.32______________________________________________________18.9
$1.33 or above---------------------------------------------------------------------------- 19.8

171. Three Percent Cost-of-Living Bonus Applied Only to Specified Amount;
Minimum Increase in BLS Index Specified
Should the Consumers’ Price Index for [city] (formerly Cost-of-Living Index),
as determined by the Bureau of Labor Statistics, increase not less than 3 index
points (nearest integer) above the June 15,------ , figure in any subsequent 3-month
period, the company will pay as a corresponding cost-of-living bonus, in cash
monthly installments, the sum? o f not less than 3 percent (nearest integer) on
the first $— of annual salary of each employee. The adjustment shall be made
no oftener than quarterly and shall become effective in the first month occurring
after the 3-month period in which the above rise in the index occurs.
172. Combination Automatic and Permissive Cost-of-Living Bourns Plan; Weekly
Percentage Adjustments to Gross Earnings When BLS Index Rises Be­
tween 7 and 12 Percent; Renegotiation, Including Arbitration, if Index
Increases More than 12 Percent
When the cost o f living as shown by the United States Department of Labor
Consumers’ Price Index for Large Cities, for all items, exceeds by 7 percent, the
level of July 15,------ , the following clause shall become effective:
A percentage bonus equal to any increase over 7 percent in the cost of living,
as shown by the above-mentioned index, above the July 1 5 ,------ , level, shall be
added weekly to the gross earnings of all persons covered by this agreement.
This bonus will be paid on the first full week in the month following the receipt
by the company o f publication of any increase in the cost of living over the
established level. This bonus will be continued weekly until such receipt of the
next publication. Should there be any increase as indicated by the index, the
bonus will then be the increase in the percentage above the 7 percent over the
July 1 5 ,------• level. This procedure will be followed until the index shows an
,
increase in the cost of living of 12 percent over the July 15,------ level.
Should the cost of living exceed 12 percent of the July 15,------ , level, then the
company reserves the right to reopen the cost-of-living bonus section of this con­
tract for any further increases, above the 12 percent in the cost of living. The
union shall be given a 10 -day written notice by the company o f this reopening.
Immediately following that 10-day period, the union and the company shall re­
negotiate the cost-of-living bonus and the agreement resulting from such re­
negotiation shall then be incorporated in a writing to be signed by both the
union and the company. Should such renegotiation fail, the company agrees to
arbitrate any increase in the cost of living over 12 percent above the July 15, - — ,
level.




46

COLLECTIVE BARGAINING PROVISIONS

Should the cost of living drop while any bonus is in effect, the bonus will be*
lessened by an equal amount.
173. No Increased Bonus if Cost of Living R ises; Reduction in Existing Bonus
if Cost of Living Declines
Other than the agreed exceptions, all other employees shall have added to
their weekly earnings a 10 percent cost-of-living bonus. This cost-of-living
bonus shall remain at 10 percent as long as no decrease occurs in the cost-of-living
figure for December 15,------ , as shown in the index of the cost of living for [city]
published by the Bureau of Labor Statistics of the United States Department of
Labor. Should such a decrease occur then from month to month thereafter, com­
mencing in each month with the first full week thereof, the percent of the
decrease in the cost of living will be determined by subtracting from the cost-ofliving figure for December 1 5 ,------ , as described above, the cost-of-living figure
shown in each succeeding monthly issue of the said publication. The amount o f
such decrease in the cost of living shall be converted to the nearest full percentage
and the cost-of-living bonus for that month shall be obtained by subtracting the
percent of the decrease from 10 percent.

Bonus Plans
Some agreements provide for a gratuity to workers in the form o f
a Christmas or year-end bonus or some other specified gratuity. Even
in plants and establishments where such bonus plans are actually in
operation, management has been reluctant to write bonus provisions
into agreements because it has felt that a bonus represents a gratuity
which employers should tie free to grant or not. Bonus payments o f
various sorts have, however, been incorporated into the terms of some
agreements. Such bonuses may take the form of an outright gift or be
made contingent on employees’ specific contributions. Bonuses for
attendance, safety, production or continuous service are more fre­
quently included since management feels that these represent pay­
ments for specific performance rather than gratuities.
It is sometimes difficult to differentiate between a Christmas bonus*
annual bonus, and continuous-service bonus in those cases where the
amount o f the bonus is related to the employee’s period of service with
the employer. The distinction at times seems to be in the time of the
payment, i. e., whether made at Christmas or at another time of the
year, and/or the frequency o f payment, i. e., whether made annually*
semiannually, or at more frequent intervals.
The bonus may be a fixed amount, a percentage of earnings, a portion
of an available sum of money, and it may be graduated according to
length o f service. Eligibility requirements may be established, such
as a minimum length of service or nonparticipation in strikes or other
work stoppages.
Clauses which provide for bonuses if the company operates at a
profit are similar to profit-sharing plans except that they do not tie
the amount of the bonus directly to the amount of profit made. Bonus



WAGE ADJUSTMENT PLANS

47

payments tied directly to production may be established as a fixed
amount per employee or per unit o f production, or may be based on
the total output, production, or sales.
Christmas and Continuous Service Bonus Plans
174. Christmas Bonus To Be Negotiated
The firm agrees that on or about November 1 of each year, it wiU negotiate
with the union for the payment of a Christmas bonus to its employees and will
make a satisfactory attempt to arrive at an agreement in connection therewith.
175. Christmas Bonus—Company to Continue Past Practice
The company agrees to continue its past practice with respect to the payment
o f a Christmas bonus; such payment, if any, to be contingent upon the same
factors as heretofore.
176. Employer Relieved of Obligation for Future Christmas Bonuses But Reserves
Right to Pay Bonus
In consideration of the increased rates of pay granted in this contract, the
union acknowledges and agrees that the company is hereby relieved o f any
responsibility in the future for the payment of Christmas and year-end bonus
awards, but nothing in this contract shall prevent the company paying such
awards if the company deems it to be advisable.
177. Christmas Bonus—Provided Profits in Company*s Opinion are Sufficient
The company agrees to pay a Christmas bonus (for the y ear------ ), if the profits
for the 6-month period ending December 1 ,------ , are determined by management
to be sufficient to pay the same.
The bonus plan will be as follow s: Those employed continuously from 1 to 5
years will receive 1 percent of yearly earnings based on the number of hours
worked per week not to exceed 40 hours per week at the base hourly rate; those
employed 5 years and over will receive 2 percent o f yearly earnings based on
the number of hours worked per week not to exceed 40 hours per week at the
base hourly rate.
The period over which this bonus will be figured is from December 1, —— , to
December 1 , ------ .
178. Christmas Bonus—Fixed Amount to All Regular Employees
The employer agrees to pay all regular employees a Christmas bonus o f $25
each.
179. Christmas Bonus—Fixed Amount to Employees with 1 Year o f Service
In lieu of the present Christmas bonus as now paid by the employer, a Christ­
mas bonus of $20 for each employee (except clerical and supervisory) having 1
year or more of service shall be paid during the month of December.
180. Christmas Bonus—40 Hours’ Pay
The company will not change its Christmas bonus policy, to wit, the payment
o f 40 hours’ pay to those employees in the company’s employ at least 2 months
at Christmas time.
181. Christmas Bonus—Fixed Amounts Geared to Length o f Service; No mini­
mum Service Requirements
All employees covered by this agreement shall receive a Christmas bonus com­
puted in the following manner:




48

COLLECTIVE BARGAINING PROVISIONS

(a) All employees who, as of December 1 5 ,------ , have b^en in the employ of
the company for less than 3 months shall receive the sum of $5.
(&) All employees, who, as of December 1 5 ,------, have been in the employ of
the company for 3 months but who have accumulated less than 1,500 working
hours in the employ of the company shall receive the sum of $15.
(c) All employees who, as of December 1 5 ,------, have accumulated 1,500 work­
ing hours or more in the employ of the company but have been in the employ of
the company less than 2 years, shall receive the sum of $25.
(d) Each employee who, as of December 1 5 ,------, has been in the employ of
the company for 2 years or more shall receive 1 week’s pay based on the average
normal straight time pay per week of such employee as computed over the prior
52 weeks and not less than the guaranteed pay of such employee for a 40-hour
week.
182. Christmas Bonus—Fixed Amount if no Strike During Year
Employer shall give to each employee a Christmas gift of $25, payable on the
pay day closest to Christmas. In the event that there has been any strike or
work stoppage, authorized or unauthorized, complete or partial, during a calen­
dar year in which the gift is to be paid, this paragraph shall be inoperative and
no Christmas gift of $25., or in any other amount, shall be paid to any employee.
183. Christmas Bonus Not Considered Part of Basic Wage Structure
Christmas bonus—The company agrees to pay a Christmas bonus as follow s:
To those in the employ of the company 1 to 6 months, $15; 6 to 12 months, $20;
1 to 2 years, $30; 2 to 5 years, $35; 5 to 10 years, $40; over 10 years, $50. The
same provisions concerning requirements for qualification for vacations in terms
of hours to be worked which apply before employees can qualify for Christmas
bonuses, except that the date for determining the number of hours worked in
the course of the year shall be the 15th of December of each year.
It is understood that by paying this Christmas bonus this shall not be deemed
to be a part of the basic wage structure of the company. The company is unable
to make any representation to the union as to whether or not it will be in a
position to continue the Christmas bonus after the termination of the contract.
184. Continuous Service Bonus Plan—Fixed Amounts Graduated According to
Length of Service
Effective Christmas [year] it is agreed that any employee on the seniority list
having 60 days or more seniority shall receive a Christmas bonus to be paid in
the following manner:
60 days to 1 year------------------------------------------------------------------- $5.00
1 year to 2 years--------------------------------------------------------------------- 15.00
3 years or more---------------------------------------------------------------------- 25.00
185. Annual Bonus at Sole Discretion of Company
The company has, in the past, when its financial condition was deemed ade­
quate, distributed to its employees a percentage of their annual straight time
earnings as a gratuity.
It is understood and agreed that such bonus gratuities are specifically ex­
cluded from negotiations between the parties to this agreement. The determina­
tion as to payment o f such annual distributions as well as the amount thereof
lies within the exclusive discretion of the company.
186. Annual Bonus— 2 Percent U
Wage Dividend”
The company agrees to pay all employees on December 18, a 2 percent wage
dividend based on any work performed during the current year. The year shall



49

WAGE ADJUSTM ENT PLANS

be computed from December 1 o f the previous year to November 30 of the curent year.
187. Annual Bonus—2% Percent of Annual Earnings; Bonus Paid, to Separated
Workers
The company agrees to pay a bonus o f 2Y percent on the total compensation
2
received by each employee from December 1 , ------ , to November 3 0 ,------ . This
bonus shall be payable on December 1 5 ,------ , except that if any employee quits,
is discharged, or laid off, he shall receive this bonus with his final pay.
188. Annual Bonus—S Percent of Earnings to Employees with 1 Year of Seniority
by Cut-Off Date
For the calendar y e a r ------ , a bonus of 3 percent of his total earnings during
the calendar year ------ will be paid to each employee covered hereby having
one or more years of seniority on December 3 1 ,------ . Such bonus will be paid
by the company during the period from May 1 , ------ , to June 1 5 ,------ . No em­
ployee who has lost his seniority for any reason on or prior to December 31,
------, shall be entitled to such bonus or any portion thereof. Any employee en­
tering the military service of the United States after the date hereof but be­
fore such payment becomes due and who had at least 1 year’s seniority on De­
cember 3 1 ,------ , shall be paid his bonus at the time of his departure.
189. Continuous Service Bonus—Semi-Annual Percentage Bonus Graduated
According to Length of Service
The company shall pay a semiannual bonus for the y e a r ------ to all regular
employees. Such bonus shall be upon a graduated scale, according to the em­
ployee’s tenure of service, and shall be based upon a designated percentage of
the employee’s gross earnings during the bonus period. The scale and basis for
determining such bonuses shall be as follow s:
Percent of
earnings

Service
Service
Service
Service
Service

from 3 months to 18 months---------------------------------------from 18 months to 3 years___________________________
from 3 years to 5 years-------------------------------------------from 5 years to 10 years-------------------------------------------over 10 years---------------------------------------------------------------

1
2
3
4
5

Each semi-annual bonus shall be computed on the employee’s gross earnings
for not more than 13 complete pay periods preceding the computation. A period
of 3 weeks shall be allowed the company for computation purposes, and the
succeeding bonus shall be computed on the next 13 pay periods following the
last pay period used in the previous computation. The bonuses shall be paid
at the end of the computation periods or sooner if possible.
190. Continuous Service Bonus Twice Yearly—Percentage of Earnings; Grad­
uated According to Length of Service. Payable to Discharged or Resigned
Workers
A service bonus based on length of continuous service with the company will
be paid to all eligible employees twice a year, about July 1 and January 1.
The percentage of earnings to be paid as a service bonus shall be as follow s:
Percent

Employees with service over 30 days and less than 6 months____
9
Employees with service over 6 months and less than 1 year______ 12
Employees with service of 1 year or more_________________________
15
When an employee resigns from the service of the company or is discharged,
he or she shall be entitled to the service bonus payable on his wages earned.



60

COLLECTIVE BARGAINING PROVISIONS

191. Continuous Service Bonus for Women—Percentage o f Earnings Graduated
According to Length o f Service
Regular hourly-paid women employees will continue to receive the service
bonus premium which is applied on their regular hourly rates, in the amounts
of 3 percent after 1 , 6 percent after 2 , and 10 percent after 3 years of continuous
service, respectively. Such years are further defined as meaning 52 weeks in
each of which one or more days have been worked.
192. Ten Percent Bonus Twice Yearly to Employees With 6 Months’ Service;
Separated Employees Excluded
All hourly employees with 6 months or more seniority shall receive a 10 per­
cent bonus of their gross earnings for the past 6-month period, payable approxi­
mately July 1 and January 1.
An employee who has been laid off or is on sick leave shall receive a bonus
based upon his earnings for the period worked payable at the regular time.
An employee discharged or who quits shall not be entitled to any bonus.
A new employee’s first bonus is payable at the end of his first 6 months o f
continuous employment. Thereafter it is payable January 1 and July 1 as in
[first paragraph above]. It is understood that his second bonus will be based
upon his gross earnings dating from his first bonus payment date to the regular
payment date.
193. Union Members Only Receive Bonus Based on Percentage of Employee’s
“ Gross Wages”
There shall be paid to each employe on May 1 and November 1 o f each year, or
at such time when said employee is discharged or terminates his employment, a
lump sum cash bonus o f 5 percent of the total of such employee’s gross wages
during the preceding 6-month period, but no bonus shall be paid until an employee
has become a member of the union.
194. Continuous Service Bonus— 10 Percent of Wages to Personnel Who Stay
With Vessel for Stated Period
Each member of the unlicensed personnel who shall have been continuously
employed on a vessel at the company for at least 45 days prior to the lay-up of
such vessel at the close of the sailing season and who shall complete his duties
in connection with such lay-up, shall receive a bonus equivalent to 10 percent
of the wages received by him during the period of such continuous employment
in such season.
195. Bonus to Employees Finishing Season Based on Minimum Time Worked
Each Season
All employees, at the finish of our completed season, or once a year, in case we
should work the year around, and who have worked 65 percent of the total days
the factory has operated and are on the pay roll at the end of the completed season,
will be paid a bonus as follow s: Those who have been on the pay roll 65 percent
of the working days each year for 5 consecutive years or more and finished season
will receivers bonus equal to 80 hours at their regular hourly rate they are re­
ceiving when bonus is paid. Those who comply with the above conditions for
3 to 4 years, inclusive, will receive a bonus equal to 60 hours, and those who comply
with the above conditions from 1 to 2 years, inclusive, will receive a bonus equal to
40 hours at the hourly rate they are receiving when the bonus is paid.
196. Flat Bonus for Continuous Employment for Stated Period; Weekly Bonus
to Those Employed Part Time During Period
The employer shall, upon the signing of this agreement, pay a bonus of $36 to
each worker who was employed continuously during the period of August 25 to



WAGE ADJUSTM ENT PLANS

51

December 31,------ , both dates inclusive, and a bonus at the rate of $2 per week for
each week of employment during said period to each worker who was employed
during any part, but not during the whole of said period.

Attendance Bonus Plans
197. Attendance Bonus—Flat Weekly Bonus in War Stamps; No Excuses for
Absence or Lateness
The Employer agrees to pay each employee $1.50 in war stamps per week for full
attendance and promptness. No excuse will be accepted for absenteeism or
lateness.
198. Attendance Bonus—5 Cents Per Hour for ail Hours Worked in Week Pro­
vided No Absences
Each employee who works the full schedule o f hours required during each week
shall receive an attendance bonus o f 5 cents per hour for all hours worked during
that week. It is understood and agreed that employees absent from work for
any reason whatsoever during any part o f the full schedule of hours required dur­
ing any week shall not be entitled to receive the attendance bonus for the week in
which the absence occurred. It is further understood and agreed that the at­
tendance bonus shall not be considered as part of the earnings o f each employee
for the purpose o f computing the cost-of-living bonus.
199. Attendance Bonus—5 Percent; Excusable Absences Listed
Unless otherwise mutually agreed upon, the firm shall continue its present
5 percent attendance bonus. The company and the union shall mutually agree
upon a fair and equitable list o f rules covering valid excuses, the period when
this bonus should be paid.
The union agreement provides that the present attendance bonus of 5 percent
will remain in effect and will be paid to the employees every 3 months. The fol­
lowing shall be among the legitimate excuses for being absent:
1. Death in family.
2. Jury service.
3. Attendance in court or before other Government agencies.
4. Visit to a serviceman or woman or by a serviceman or woman in the imme­
diate family.
5. Sickness of worker.
Only when so requested by the company, an employee, who was absent due to
sickness, shall present reasonable proof of such sickness.
200. Attendance Bonus:— Cents Per Hour for Hourly W orkers; Percent of Earn­
ings for Salaried Employees; Amount of Bonus Cut by Unexcused Absences
Regular hourly employees will receive an attendance bonus amounting to
2% cents per hour for all hours worked from January 1 to the first Sunday
in December as regular employees. Regular employees (salaried) will receive
an attendance bonus o f 5 percent o f the wages earned during the period January
1 to the first Sunday in December. Employees quitting or discharged prior to
the first Sunday in December shall not be entitled to any bonus. Regular em­
ployees laid off for lack of work, however, shall receive the bonus. Employees
absent from work without excuse as hereinafter provided, for 2 days in the period
January 1 to the first Sunday in December shall have their total bonus reduced by
20 percent, and each additional day’s absence shall reduce their original total
bonus by an additional 10 percent Absence because o f illness will be excused
only on receipt o f a doctor’s certificate or by reporting to the employer’s person­
nel department at the time o f illness, if possible, not after. Other necessary
absences may be excused by obtaining written permission from a designated



52

COLLECTIVE BARGAINING PROVISIONS

executive of the employer 24 hours in advance. Only absences approved in
writing by an executive designated in writing to the union shall be excused.
The company agrees to notify an employee of any alleged unauthorized absence
within a period of 1 week of its occurrence. Any disagreement between the em­
ployee and the company regarding the absence must be presented as a grievance
to the union within 1 week of the date of original notification, otherwise the
absence will be considered unexcused.
201. Attendance Bonus— Graduated Amounts Geared to Number of Shifts Worked
During Year
The company agrees to continue, during the life of this union agreement, the
antimigration bonus established for the y e a r ------ . The bonus is payable for
each calendar year after January 1 of the succeeding year to employees on the
pay roll on January 1 of the succeeding year. The bonus is computed as follow s:
1. For men working—
Per shift

265 to 269 shifts in any calendaryear------------------------------------$0.15
270 to 274 shifts in any calendaryear-------------------------------------.10
275 to 279 shifts in any calendaryear-------------------------------------.15
280 to 284 shifts in any calendaryear_________________________
.20
285 or over shifts in any calendar year------------------------------------. 25
2.
The number of shifts worked shall be determined by dividing total straight
time hours worked by 8.
202. Attendance Bonus Eliminated; Amount Added to Existing Rates
All bonuses being paid as a reward for employee attendance will be eliminated
and this same percentage of bonus now allowed will be added to existing rates
as o f the date of this contract.

,

Production, Sales and Other Bonus Plans
203. Graduated Bonus if Production Exceeds Quota in 4-Week Period
When the ticketed 1 production of rolled zinc, rolled lead and ceramite for a 4week period is within the brackets shown below, the wage rate for the 4-week
period will be increased by the amount indicated.
Increase per
hour
(cents)

Ticketed production during 4-week period (in to n s ):
461 to 530________________________________________________________
531 to 599------------------------------------------------------------------------------------600 to 668----------------------------------------------------------------------------------669 and o v e r --------------------------------------------------------------------------------

2
2

2
2

204. Flat Bonus if Production Exceeds Quota Over 4-Week Period
When the first-run production in the dye department shall reach an average
of 8,000 dozen per day for a consecutive 4-week period, the company will pay
to the dye-house employees an additional bonus o f 3 cents an hour for time
worked after such 4 weeks average of 8,000 dozen a day has been established.
205. Production Bonus to Production and Nonproduction Workers. Paid Weekly
for Excess Over Past Performance Standard. Computing Overtime Under
Bonus Plan
The wage bonus plan is based upon past performance standards o f list price
production and productive hours worked during the prescribed base period.
1 T icketed production was substituted fo r shipments on [d ate] at a m eeting between the
Company and the union.




WAGE ADJUSTMENT PLANS

53

These are the essential factors for initiating a standard amount o f list price
production per hour which must be exceeded during a week using the entire
week’s production and the entire week’s productive labor in order to effect bonus
payment.
The wage bonus shall be paid weekly along with the regular pay-roll check.
To arrive at the amount of bonus paid for the productive workers take 50
percent of the excess over standard and apply this percentage to their total pay,
the result being the amount of bonus paid for that week.
In order to arrive at the bonus paid for the nonproductive worker, take 50
percent of the excess over standard and apply this percentage to their total pay,
the result being the amount of bonus paid for that week.
The basic hourly rates in existence will continue and be guaranteed under the
operation of this plan.
Bonus wage earnings are increased in proportion to increased production.
Overtime under the bonus plan will be computed as follow s: regular hours
times the regular base rate equals regular pay. Overtime hours times one^half
of the base rate equals overtime pay. Overtime pay plus regular pay equals pay
roll before bonus payment. Bonus percentage equals standard excess times 50
percent. Regular pay including overtime pay times bonus percentage equals
bonus earnings. Bonus earnings plus total pay including overtime equals total
pay including bonus earnings.
The past performance standard has been arrived at by taking 0 months’ actual
production of the entire plant divided by the total amount of productive hours
for the same period.
The weekly amount o f plant production divided by the weekly amount of
productive hours will give the actual performance for that particular week.
Percent of excess of the weekly performance over standard is the factor used
to arrive at bonus pay for that particular week.
206. Production Bonus Based on Monthly Ratio of Pay Roll to Total Productivity
The following incentive plan is a part of this contract:
(1) When the ratio of pay roll to total productivity for any month is less
than 0.50, a premium o f 1 cent per hour for each hour worked during that month
will be paid. The productivity figure referred to above will be calculated as
follow s:
Net sales, less purchased parts, plus the sales value o f kiln settings, plus the
sales value of first-grade ware discharged, divided by 3.
Pay roll shall be the total wages paid to all workers exclusive of office, tech­
nical, and managerial personnel.
(2) A bonus of 1 cent per hour for each hour worked during the month will be
paid i f :
The new kiln production value of first grade stoneware drawn from the kiln is
94 percent or greater than the total content value of such kilns drawn and
The new kiln production value o f first grade whiteware, exclusive of porous
ware drawn from kiln is 84 percent or greater than the total content value o f each
kiln drawn and
The net kiln production value of first grade porous ware drawn from kiln is
80 percent or greater than the total content value o f such kilns drawn.
207. Monthly Production Bonus Fund Based on Items Made and Sold. Eligibility
Defined as 60 Days’ Service
For calendar months commencing on March 3 , ------ , the company will pay a
monthly production bonus to each eligible employee. The term “ eligible em­
ployee” shall include all employees who are members o f the bargaining unit



54

COLLECTIVE BARGAINING PROVISIONS

who have been continuously in the employ of the company for 60 days or more
prior to the beginning o f any calendar month.
At the end o f each calendar month commencing with the end o f the month o f
M arch------ , the company will credit to a production bonus fund an amount o f
money equal to the number o f products manufactured and sold by the company
on and after March 3 , ------ , and for which the purchase price has been paid
multiplied by the unit bonus. A list of products manufactured by the company
on which the bonus will be computed and the amount o f the unit bonus to be
credited to the production bonus fund for each product is set forth in exhibit
B—Bonus, which is attached hereto and made part of this agreement. Subject
to approval by the negotiating committee, the company may amend the exhibit
B—Bonus, by adding or deleting products listed thereon and by increasing or
diminishing the unit bonus for any of the products listed.
To determine the amount o f the individual bonus for each eligible employee
for the calendar month, the amount o f money which has been credited to the
production bonus fund for that month will be divided by the total number o f
hours actually worked during such calendar month by all eligible employees o f
the company entitled to participate in the production bonus for such month.
The quotient of such division will be the rate o f bonus per hour actually worked
per eligible employee. This rate o f bonus per hour actually worked per eligible
employee will then be multiplied by the number o f hours actually worked by
each eligibile employee during the calendar month. The result of this multiplica­
tion will be the amount o f production bonus payable to such individual eligible
employee for the calendar month.
The production bonus will be paid by the company to its eligible employees on
the twentieth day o f the month following the month during which the bonus
was earned. The first production bonus will be paid on April 2 0 ,------ .
208. Production Bonus—Fund Based on One-Half o f Each 1 Percent Net Gain in
Annual Production Over Base Production Index Multiplied "by Total Pay
Roll. Individual Bonus Geared to Hours Worked. Union and Employer
Share Wages o f Employee Appointed to Check Company Calculations
The following plan is established for sharing the benefit o f improvements in
productivity over the levels of production performance which were accomplished
in the year’s period preceding August 1 ,------ .
a. A production index of 72.9 pounds of salable products produced per man­
hour is established as the standard of performance actually accomplished in the
year’s period from July 1 ,------ , through June 30,------ .
b. The total pounds o f production includes all finished [products] manufactured
at the — plant, but does not include the byproducts o f the [product] manufac­
turing operations, such as [byproducts].
0. The total hours worked includes the actual hours worked by all hourly-paid
employees with two exceptions: Mechanical construction project hours charged
to capital account, and labor hours spent in packing the variety package.
d.
At the end o f each calendar year the actual production index for the year
will be compared with the index o f 72.9 for the base period year. One-half of
each 1 percent net gain over the standard will be multiplied by the total dollars
o f pay roll for all hourly-paid employees during such year to establish a fund
to be distributed as follow s:
1. The hourly-paid employees eligible to share in the fund will be as follow s:
(a) All hourly-paid employees currently on the pay roll at the end of
the year.
(b) All hourly-paid employees who are on a leave of absence status.



WAGE ADJUSTMENT PLANS

55

(c) All hourly-paid employees temporarily laid-off at the end of the
calendar year who have had one or more years o f continuous service.
(d) All hourly-paid employees who were retired at age 65 during the
current calendar year.
2.
The total fund will be apportioned as soon as practicable after the end of
the year to those who are eligible for a share on the basis of the actual hours
worked by each participant in relation to the total hours by all of the participants
in that calendar year.
e. It is recognized that the objectives specified can be accomplished in the
following ways among others:
1. Improved methods and equipment.
2. Less waste of materials which will increase the pounds produced as well
as reduce the hours required for handling waste materials.
3. Increased pounds produced within capacities of equipment by avoiding delays
and interruptions as far as possible.
f. Employees will be kept posted of progress toward objectives by quarterly
reports which will be posted.
g. An hourly-paid employee whose qualifications are determined as satisfactory
by mutual agreement of both parties will be selected to work with the members
of the management staff in determining the results under this plan. It is
understood that such person will be given full opportunity to check the calcula­
tions made by the company under this plan. It is understood that the appoint­
ment of such person will be for a period of 1 year subject to renewal for ad­
ditional years, unless either party objects to a reappointment. The company
and the union will share equally the actual cost of the wages of such person
at his regular wages for the actual hours that he will be required on this
assignment.
h. In order that the plan covered in this section may have a fair start for
the calendar y ear------ , the company agrees to give credit for an accomplishment
at the standard index o f 72.9 pounds per hour for the first 7 months of the
year ------ (January 1 through July 31), rather than use the actual index
for that period which is a lower amount.
209. Production Bonus—Specified Amount Per Unit Shipped. Pro Rata Payment
to Employees on Leave
The company shall place in a fund to be distributed among the hourly paid
employees each 3 months $2 per unit for each [product] shipped and 10 cents on
each [product] shipped.
New employees will not be eligible for participation in this plan until the start
o f the next 3-month period from the date of his employment.
An employee on sick leave or authorized leave of absence must work at least
30 days of the 3-month period to be eligible for participation. His participation
shall be equal to the percentage o f the period for which he worked.
210. Monthly Bonus Graduated to Value of Shipments Above Stmdard. Adjust­
ment for Varying Workweeks. Minimum Work Requirements Specified
As an additional incentive and until the employer obtains sufficient experience
to prove or disprove the practicability o f the following bonus arrangement, the
employer agrees to an over-all monthly production bonus which shall begin at
a shipping minimum o f ($550) times the number of shop employees. The rate
of bonus shall be 1 hour’s pay for each $2.50 o f shipments per employee above
the minimum. Example: Total shop employees 200 times $550 equals $110,000
minimum. Monthly shipments equal $130,000 less $110,000 minimum equals
$20,000 bonus shipments; 200 employees times $2.50 equals $500 worth o f ship­




56

COLLECTIVE BARGAINING PROVISIONS

ments per hour of bonus; $20,000 bonus shipments divided by $500 equals 40
hours o f bonus pay. Should experience prove this bonus arrangement not prac­
tical the employer shall notify the union and suspend within 30 days this arrange­
ment and in the meantime shall meet with the union and arrive at a bonus
arrangement which shall be mutually satisfactory. It is also further understood
that the shipping rate of $550 per employee is based on a 40-hour week. Should
the workweek be increased, for example, to 44 hours per week, the shipments per
employee shall be increased a similar percentage or to $605 per employee, or to
such percentage as the percentage of work hours increases.
To determine the minimum shipments for bonus calculation and to share in
this an employee must be on the pay roll for the first day of the bonus period
for which the bonus is paid. Any employee who works at least 50 percent of
the time in any given month shall receive bonus for that period worked regardless
of the reasons for not having worked a full month. To compensate for the
employees not eligible to share in the bonus because they did not work 50 percent
of the full month, the employee or employees who did not share will not be
counted in determining the minimum shipments. This revision, if any, will take
place at the end of the month for which the bonus is figured.
The bonus is to be paid monthly on the third pay-day of the following month.
Should an employee leave the employ of the employer, he shall be paid the amount
due him for the specific period in which he was employed.
211. Production Bonus— Specified Amount Graduated to Monthly Sales. Bonus
Includes All Company Employees with Earned Exceptions and Excludes
Employees Absent or Late
The employer agrees to pay a bonus to its employees employed at the factory
at [address], whether members o f the bargaining unit or not, and excluding
o n ly --------------, to be divided amongst them equally and to be payable monthly
as follow s:
Where the sales as represented by shipments of the employer less returns, dis­
counts and credits total at least $75,000 per month then the bonus to be paid
shall be the sum o f $1 ,000.
Where the sales as represented by shipments per month as defined herein
exceed $75,000 then the bonus shall be an additional $150 for each additional
$10,000 of such sales.
The bonus provided for herein shall be payable on or before the fifteenth o f
the month and is to be based on the sales of the preceding month.
A statement by the auditor of the employer setting forth the sales of the
employer as defined herein shall be final and conclusive on the parties hereto.
It is agreed between the parties that if an employee is absent from work for 2
days in one month without permission of the plant superintendent and not as a
result of sickness or injury then such employee shall not be entitled to share in
the bonus payment based on the sales in the month when the employee was so
absent.
It is agreed between the parties that if an employee is late on three occasions
during 1 month without permission of the plant superintendent then such em­
ployee shall not be entitled to share in the bonus payment based on the sales in
the month when the employee was late.
In the event of a dispute on absences or latenesses then the decision of the
employer shall be final and conclusive.
212. Production Bonus—Amount Geared to Time Saved in Doing Specific Job
Incentive payment and other special conditions of employment for emptying
and refilling gas oxide purifying boxes at th e ------ plant;




WAGE ADJUSTMENT PLANS

57

1. In addition to the regular hourly wage o f employees assigned this work, a
bonus will be paid as follow s:
I f the job is completed in not more than 825 man hours, a total bonus of $115.
I f the job is completed in not more than 775 man hours, a total bonus of $130.
If the job is completed in not more than 725 man hours, a total bonus of $145.
If the job is completed in not more than 675 man hours, a total bonus of $160.
I f the job is completed in not more than 625 man hours, a total bonus of $175.
If the job is completed in not more than 575 man hours, a total bonus of $190.
I f the job is completed in not more than 525 man hours, a total bonus of $215.
2. The only man hours that shall not be included in the above bonus hours of
the employees in the emptying and refilling of the oxide gas purifying box shall
be the hours of the employee designated to care for the conveyors and the fore­
man designated to supervise the job.
3. The disposal of the spent oxide and cleaning up of the grounds outside of
the oxide gas purifying box during and after the emptying and refilling of the
box shall be done by the crew participating in the bonus and such time for this
cleaning up shall be included in the man hours when determining the total bonus
earned.
213. Increase Granted if Hourly Production Matches That of Specific Competitors
If at any time the hourly production o f the — plant or the [plant] is raised
to a point comparable with the production of the 7— company and the — com­
pany, then the rate of pay for machine-men shall be — cents per hour in accord­
ance with the foregoing schedule.
214. Safety Bonus—Specified Mileage Rate if no “ Chargeable Accidents.” Right
to Appeal Accident Claim
In addition to the above rates operators shall be paid .25 cents per mile for
the actual mileage operated and on all allowed mileage on regularly scheduled
sign-up runs as a bonus for having no “ chargeable accidents.”
This bonus shall continue to be paid to each operator during the term o f this
agreement until an operator shall have a chargeable accident at which time
the operator involved in the chargeable accident shall be deprived of such bonus
for a period of 30 days. At the end of the 30-day period the bonus, as stated
above, shall again be paid and shall extend until such time as another chargeable
accident may occur. Each chargeable accident shall cause the operator involved
in same to be deprived of his bonus for 30 days.
Crowded busses, weather conditions, condition of pavement, traffic conditions,
and all other conditions which contribute to the cause o f accidents are • be
to
taken into consideration whenever accidents are charged; and whenever thei
operator involved feels unjustly charged .with an accident he shall have the
right to appeal.
An appeal on a chargeable accident must be handled in the form of a grievance
and a report made in writing by the operator to his union committee within 5
days of the date of the form 10 that is issued on such chargeable accidents.
The union committee will then make an investigation and if they deem it ad­
visable a hearing will be held in accordance with the grievance procedure set
up in the contract in section — ; however, such hearing must be held within 15
days of the date o f the form 10 otherwise the decision o f the superintendent
charging the accident shall stand.

Profit-Sharing
Under profit-sharing plans, employees receive, in addition to wages,
a predetermined and fixed share in the company’s net profits at the



58

COLLECTIVE BARGAINING PROVISIONS

close o f any fiscal period. In contrast to automatic wage adjustment,
profit sharing usually takes the form o f annual or semi-annual bonuses,
supplemental to regular wages. The amount of the bonus is tied di­
rectly to the amount o f company profits. Such plans do not include
either bonus systems of wage payment or year-end gratuities given at
the discretion of the employer.
The underlying principle of profit sharing is based on the belief
that the present wage system is too rigid to enable employees to secure
their proper share in the company’s income and that profit sharing
(by promoting mutuality o f interest on the part of management and
workers )w ill tend to increase productivity and thus the company’s
net income, and at the same time assure its fair distribution.
The United States has only a small number of profit-sharing plans,
and probably a majority of these are in unorganized plants. It is
unusual for a profit-sharing plan to exist side by side with a union
agreement, or for union agreements to contain provisions for the
adjustment o f wages by a share of the employer’s profits.
Profit-sharing plans provided in union agreements differ in three
major respects: (1) the formula or method used in calculating the
share o f profits going to employees; (2) eligibility requirements; and
(3) frequency and manner of distribution o f the total amount
available.
Some plans are based on sharing a fixed percentage o f the profits,
either before or after taxes. In others, a fixed amount is set aside by
the company from the net profit and the remainder (or part o f the
remainder) is distributed among the eligible workers as a cash bonus.
A cash profit-sharing bonus may be given when the company’s share
holders receive dividend payments. Accounting practice for comput­
ing the profit figure is frequently specified.
The individual employee’s share may be based on his total hours
worked during the fiscal period, in relation to his annual earnings, on
his length of service, or on a combination of these factors.
215. Reference to Company Profit-Sharing Fund
The following benefits will be available to all eligible employees, subject to
economic conditions and general company policy with respect thereto: -----Employees Savings and Profit Sharing Pension Fund, in accordance with the
provisions and bylaws theerof. * * *
216. Profit Bonus at Sole Company Discretion
Bonuses from the profits of the company shall be paid to the employees as
heretofore, without the right, however, of the union to be furnished with any
statements o f the profits of the company, or the method in which said bonuses
are calculated and distributed; it being the company’s intent to continue in effect
the bonus plan heretofore paid employees, which has been filed and approved by
the War Labor Board. According to that plan, bonuses will be more or less
dependent upon the earnings o f the company.




WAGE ADJUSTMENT PLANS

59

217. Payment and Amount of Bonus at Sole Company Discretion
The company has, in the past, when its financial condition was deemed ade­
quate, distributed to its employees a percentage of their annual straight time
earnings as a gratuity.
It is understood and agreed that such bonus gratuities are specifically ex­
cluded from negotiations between the parties to this agreement. The determina­
tion as to payment of such annual distributions as well as the amount thereof
lies within the exclusive discretion o f the company.
218. Cash Bonus Graduated According to Company’s Net Earnings
The employer agrees to pay a Christmas bonus on the following basis:
(a)
If the net earnings o f the company for the year 1947 equal or exceed
$800,000, but are under $900,000, a bonus of $40. will be paid each employee.
(ft) I f the net earnings o f the company for the year 1947 equal or exceed
$900,000, but are less than $1 ,000,000, the company will pay each employee a
bonus of $50.
(c) If the net earnings of the company for the year 1947 equal or exceed
$1 ,000,000, but are less than $1 ,200,000 the company will pay each employee a
bonus of $60.
(d) I f the net earnings of the company for the year 1947 equal or exceed
$1 ,200,000, but are less than $1,300,000, the company will pay each employee a
bonus of $70.
(e) If the net earnings of the company for the year 1947 equal or exceed
$1,300,000, but are less than $1,400,000, the company will pay each employee a
bonus of $80.
(f) If the net earnings of the company for the year 1947 equal or exceed
$1,400,000, but are less than $1,500,000, the company will pay each employee a
bonus of $90.
(g) If the net earnings of the company for the year 1947 exceed $1,500,000, the
company will pay each employee a bonus of $100.
To qualify for the bonus, employees shall have been employed by the company
for 30 days or longer, as of December 1.
This bonus shall be paid on or before the 21st day o f December and in the
first instance shall be based upon the net earnings as determined by the company
auditor, and following the annual C. P. A. audit, including deductions for the
previous bonuses paid. If there is any discrepancy resulting in an increase in
bonus, as against that paid, all employees shall be paid such increase on or
before January 31 of the year following.
219. Bonus Based on Percentage of Annual Earnings if Company Operates “At a
Profit.” Limitations on Arbitrator
A bonus of 1% percent o f the earnings of each employee for the current year
will be paid at Christmas, provided the company operates at a profit for the period
of January 1 ,------ to January 1 ,------- . The company will supply a statement by
a certified public accountant indicating whether such profit has been made. No
changes in the principles employed in operating expenses in the current year shall
be made as compared with those incurred in the previous year. This may be
submitted to arbitration, as per this contract, and the arbitrator will not in any
manner disclose any facts obtained from the company’s financial statements or
records to the union or to other parties but shall only render a decision as to
whether the bonus is due.




60

COLLECTIVE BARGAINING PROVISIONS

220. Ten Percent of Net Profits. Individual Share Proportionate to Hours
Worked During Year. Share Paid to Eligible Employees Despite Severance.
The employer and the union are agreed that there shall be a distribution of
10 percent of the net profits for the fiscal year resulting from the employer's
operations, as more fully provided herein, commencing with the fiscal year of
February 1 ,------ .
The 10 percent net profits, as determined herein, shall be divided among all
the employees of the employer or any concessionaires of the employer, upon the
following bases:
( a ) The fund resulting from the determination of 10 percent of the net profits,
as set forth herein, shall be divided by the total man-hours worked by the em­
ployees qualified to participate in the distribution.
(b) Bach qualified employee will be paid a sum equal to this hourly figure
multiplied by the number of hours he (or she) worked during the fiscal year
period of the plan.
(c) A ‘'qualified’' employee shall be an employee who has worked for the
employer more than 300 hours during one fiscal year. The number of hours
worked by every such qualified employee shall be used in the determinations
under (a) and (b) above and such employee shall share in the distribution not­
withstanding his (or her) severance of employment before the time for
distribution.
(d) Distribution o f the said 10 percent shall be made as soon after January
31 of each year as is practicable.
The 10-percent distribution shall be determined upon the net profit figure
resulting each fiscal year from a compilation of the data from the employer’s
operations based as follow s: (a ) gross sales less the cost of goods sold and
normal operating expenses, including deductions for shrinkage caused by theft,
errors, and mark-downs; (b) plus items of other income, including, but not limited
to, cash discounts; interest on accounts receivable, interest charged to depart­
ments (expense offset) for inventory investment, and income from tenants.
The employer further agrees that the items comprising “ operating expenses”
shall not be unduly augmented by the inclusion therein o f: (a ) charges for in­
creased rentals paid to owners of property who are identical to, or affiliated with,
stockholders of the employer; (b) interest for loans or mortgages in excess
of the normal rates for such loans; (c) charges to depreciation, reserves, or
special items in excess of recognized accounting practices; or (d) charges for
improvement which may be more properly chargeable to capital asset items.
It is understood and agreed between both parties hereto that the yearly state­
ment of net profits and balance sheet attested to b y --------------, certified public
accountants shall constitute a full and final accounting for the purposes of this
agreement.
It is agreed that the provisions of this article relative to profit sharing shall
be continued from year to year hereafter so long as collective bargaining relations
between the parties hereto continue, subject, however, to revision or termination
as provided for in the basic collective bargaining agreement of which this article
is a part.
221. One-Fifth of Net Profits Before Taxes. Individual Share Based on Animal
Earnings, Service, and Position
The company shall for the calendar year 1947 distribute to its employees, other
than officers of the company, one-fifth of its net profits before income taxes.
Distribution shall be made to employees on a unit basis as follow s:
(a) Each employee is credited with one unit for each $100 o f annual earnings.



WAGE ADJUSTMENT PLANS

61

( 6 ) Each employee is credited with one unit for each year of continuous
service.
(c) Five units are credited for each employee holding a supervisory position.
( d) Fifteen units are credited to each assistant department head.
(e) Twenty-five units are credited to each department head.
Payment shall be made semiannually as follow s:
(a) One payment to be made as soon as possible after June 30,------ , based upon
an estimate of the net profits for the year as shown by the company’s books for
the first 6 months of the year.
(b) A second payment shall be made on or about the end of the calendar year
based upon profits for the entire year, less the payment previously made.
In order to be eligible to receive the foregoing payments, an employee must
actually be in the employ of the company on June 30,------, as to the first payment,
and December 31,------ ■as to the second payment (or on the day on which payment
,
is computed if such payment is computed prior to December 3 1 ,------ ). In the
eyent an employee leaves the employ of the company after said dates, but before
the date of actual payment, he shall not thereby lose his right to share in said
payments.
In order to be eligible to participate in the foregoing plan, an employee must
have acquired seniority of at least 1 year. However, any employee who has
acquired 6 months’ seniority but less than a year’s seniority on June 3 0 ,------,
or December 31, ------ , shall be eligible for his share of the profits for the 6
months he worked ending with those dates, providing he remains in the employ
of the company for the next 6>months and thus has acquired at least 1 year’s
seniority before actual payment becomes due.
222. Ten Percent of Net Profits Before Taxes. Individual Share Equals Ratio
of 10 Percent Profits to Total Pay R oll;'W ith Minimum Guarantee of 5
Percent of Annual Earnings. Company Figures Not Subject to Question by
Union. Special Provision for Employees Leaving Company Before Bonus
Payment
As a bonus to all its employees (employees in this article include all office,
supervisory, salaried, and technical employees, excepting those earning $5,000
or more per year) the company will divide among its eligible employees 10 percent
of the company’s net profit before taxes earned during the fiscal year ending
September 30,------ , not including any dividends or other distributions from any
subsidiary corporation of the company, and the company further guarantees that
such bonus shall, under no circumstances, amount to less than 5 percent of the
total earnings of each eligible employee, from October 1 ,------ , to October 1 ,------ .
It is mutually agreed that such bonus shall be paid in consideration of annual
employment of not more than 2,700 hours and shall if added to the regular rate
be so divided as to include the additional time and one-half for all hours worked
in excess of 2,080 hours.
To determine each employee’s share in such bonus, an amount equal to 10
percent of the company’s net profit, as provided above, shall be divided by an
amount equal to the company’s total pay roll for the fiscal year ending September
3 0 ,------ , exclusive of payments made to employees whose base pay is $5,000 or
more during such fiscal year. Each eligible employee’s share of the bonus shall be
the same percentage of his total earnings during the fiscal year as results from
such division.
The amount of the total year’s bonus shall be estimated as o f April 1 ,------ , and
40 percent of each employee’s share in such bonus, as so estimated, shall be cal­
culated and paid to eligible employees on July 1 ,------ . The actual bonus shall be
determined at the dose o f the fiscal year and that portion o f each employee’s



62

COLLECTIVE BARGAINING PROVISIONS

actual share in such bonus not already paid shall be paid to eligible employees on
December 1 5 ,------ .
Any employee who has been in the employ of the company for 6 months or more,
and severs his relations with the company for any reason, shall be paid his share
o f the profit sharing bonus, such bonus to be paid on the dates specified above.
Any employee that is compelled to leave the company for the following reasons,
before the payment of the profit sharing bonus payment ( 1 ) illness and furnished
certificate signed by attending physican; ( 2 ) death of employee; (3) marriage of
female employee; (4) employee retiring at the age of 65; (5) veteran leaving to
attend school; ( 6 ) other unforeseen conditions that are agreed upon by the
company and the union: then the profit-sharing bonus will be paid to such em­
ployees or their beneficiaries, such payments to be made on scheduled dates.
Any portion of the total bonus which is not distributed to employees by reason
of ineligibility shall be added to the amount o f bonus for distribution pro rata
among the then remaining eligible employees at the next payment date.
In the event that the aggregate payment of bonus to each employee, as calcu­
lated herein, should not equal 5 percent of such employee's total earnings, the
company will add to such payment on December 1 5 ,------ , an amount sufficient
to make such aggregate distribution equal to 5 percent of such employee’s total
earnings for the fiscal year.
On or before the thirtieth day of each month, beginning with the month of No­
vember ------ , the company shall post, in a conspicuous place in the plant, a
notification of the estimated percentage of total earnings for the preceding
month under this plan and also the estimated percentage of total earnings
for the period from October 1 ,------ , to the date of posting under the plan, based
upon the earnings and pay roll o f the company for such month and such period.
It is an express condition of* the operation of this bonus plan that the union
agrees to accept, as conclusive and final, the figures, records, data, and calculations
submitted by the company to the Revenue Department of the United States o f
America in its Federal tax returns filed for the period involved; and further, as
a condition precedent to the operation of this plan, the union agrees to accept
as final, without recourse to any review or dispute, the statement of the company
as to all elements or factors upon which estimated anticipatory and final profit
sharing calculations are made, based upon such records.
In addition to the wages, incentives and bonus plan provided above, the
company will not reduce or withdraw, during the life of this contract, the
security program and other benefits in effect on the date hereof, consisting of
life insurance, health, and accident insurance, hospitalization for employees and
their families, and surgical benefits for all employees fully paid for by the
company after 1 year’s employment.
223. Twenty Percent of Operating Profit Before Taxes. Individual Share Grad­
uated to Seniority. Union May Use Own Accountants to Verify Profit
Figures.
In addition to the cost-of-living hourly rate adjustment, a profit sharing plan
will become operative with the signing o f this contract.
Twenty percent of the operating profit of the — division, before providing for
Federal Government income and excess profit taxes, shall be distributed to men
on the factory pay roll as soon after the end of the company’s fiscal year on
June 30, as the books can be closed and audited to determine the proper amount
to be apportioned under this plan.
It is understood that the — division includes all products fabricated in both
the — and — plants, as long as these properties are operated by the — corporation.




WAGE ADJUSTMENT PLANS

63

In other words all products on which men included on the factory pay roll per­
form labor.
It is also understood that the operating profit of the — division will not include:
(1) Profit or loss arising from the sale of capital assets generally known as
land, buildings, equipment, other investments and raw material or parts (aside
from ordinary and regular company transactions) on which no labor operations
have been performed.
(2) Profit or loss arising from the sale of [product] and any other products
sold by the — products division. This division sells only products in the same
form as purchased and on which no factory operations are involved. Separate
records of the activities of the — products are maintained.
This new labor agreement is effective from February 1 1 ,------ , however, since
it is not expedient to take a physical inventory on February 10, a necessary step
to segregate the profit for the period from February 11 to June 30 from the
profit for the full fiscal year, for the purpose o f inaugurating the profit-sharing
plan, the initial portion to be distributed as soon after June 30,------ , as completed
records will permit, shall be based on 10 percent of the — division profit for
the full fiscal year ending June 3 0 ,------. Thereafter the profit to be distributed
shall be 20 percent of the — division profit for periods ending June 30 as provided.
The negotiating committee will accept the certified statement as prepared by
--------------, a firm of certified public accountants employed by the company. In
the event the committee should have reason to question computation of —
division profit as determined by the firm of certified public accountants employed
by the company, and the question cannot be satisfactorily cleared by the com­
pany’s officers, the negotiating committee shall have the right to call in another
firm of certified public accountants, acceptable to the company, for the purpose
of verifying the figures prepared by the company’s independent firm of certified
public accountants. The cost of such a verifying audit shall be shared equally
by the company and union.
No man shall participate in the profit-sharing plan unless he has performed at
least 800 hours straight time labor in the period from January 1 ,------ , to June 30,
------, and thereafter at least 1,600 hours straight time labor in the 12 -month
period from July 1 to the following June 30. The only exception to be made from
this provision is that in case of extended illness o f an employee, he shall (or in
case of death of an employee, his estate shall) participate in the profit-sharing
plan in the class he would have been placed had he worked the full year, in the
ratio of the number of full months worked to the 12 months in the full period.
In order to be eligible under this exception the employee at the time he becomes
incapacitated must:
( 1 ) have at least 1 full year continuous local — union seniority,
( 2 ) and be subject to medical examination by company’s doctor to determine
cause of illness,
(3) be free from venereal diseases. In the event illness or death results from
venereal diseases the employee is excluded from the benefits of the above
exception.
The method of distributing the apportioned share o f profit to individuals shall
be based bn local — union seniority together with any other factors the company
and negotiating committee may agree upon.
Credits in the form o f units will be assigned to individuals as indicated in the
following schedule:
All men with a local — union seniority of 5 years or more at the end of
any June 30, shall be assigned a credit of 5 units.
All men with a local — union seniority of 4 full years at the end of any
June 30 shall be assigned a credit of 4 units.



64

COLLECTIVE BARGAINING PROVISIONS

All men with a local — union seniority of 3 full years at the end of any June 30
shall be assigned a credit of 4 units.
All men with a local — union seniority of 2 full years at the end o f any June 30
shall be assigned a credit of 3% units.
All men with a local — union seniority of 1 year at the end of any June 30
shall be assigned a credit of 3 units.
Ajiy man with a local — union seniority of less than 1 year, but who has per­
formed at least 800 hours straight time labor in the period from January 1 ,-----to June 3 0 ,------, or at least 1,600 hours straight time labor in subsequent 12month period shall be considered a one year man.
The total units assigned for any profit sharing period will be divided into the
total amount of apportioned profit to be distributed, thereby giving the unit a
monetary value which when applied to the number each man has accrued will de­
termine his individual share.
224. Ten Percent of Net Profit A fter Taxes. Semi-Annual Distribution. OneYear Service Requirement
It is agreed that all hourly employees in the employ of the company, for a
period of 1 year and affected by this agreement, will receive 10 percent of the
annual net profit, derived from the [city] and [city] plants, after proportionate
[city] and [city] taxes of the company. (This net profit to be shown on the pub­
lished statement of the company as submitted to the stockholders and Security
Exchange Commission by the certified public accountant.) Such moneys will be
proportioned to the employees on the basis of the actual hours worked during the
period, however, such hours not to exceed an average of 40 hours per week. This
additional compensation will be paid semiannually to the employees as soon as
possible after the closing of the company’s records, for the 6-month period ending
June 30 and December 31.
225. Ten Percent of Net Profits Before Taxes but not Over 15 Percent of Net Profits
A fter Taxes. Equal Shares to Employees, Prorated if Absent for Listed
Causes. Employees Terminated Are Disqualified
Anything in this contract notwithstanding, it is recognized that the task of
operating and maintaining the facilities of the No. 2 refinery will require, insofar
as the management shall deem practical, the interchangeability of employees
between classifications, groups, and departments, the overlapping of classifica­
tions and duties, and a substantial reduction in the force heretofore required
to operate and maintain each of the various parts of the refinery. In considera­
tion, therefore, of the agreement of the union and employees to cooperate in
achieving the foregoing ends, the company agrees that in addition to the wages
set forth in article — o f this contract there shall be distributed annually to
the refinery employees, as defined in this contract, and other employees o f the
company working at the No. 2 refinery a total of 10 percent of the net profits,
before income taxes (but not in excess of 15 percent of net profits after taxes)
of the No. 2 refinery, subject to the following terms and conditions.
The net profits of the No. 2 refinery shall be determined by an audit made by
that firm of independent certified public accountants which audits the company’s
annual financial statement and shall be certified by such firm of certified public
accountants to both the company and the union within 30 days after the com­
pletion of the annual audit and report o f the company’s operations. Such cer­
tificate shall be final and binding upon the company, the union, and all employees.
All employees eligible to participate in the foregoing distribution of profits
shall receive an equal share, except that in the case of employees working only
part time in the No. 2 refinery, the share of such employees will be on a pro rata




WAGE ADJUSTMENT PLANS

65

basis, based on the amount of time charged by the company to the No. 2 refinery
operations. The company shall have the right to designate one or more super­
visory employees as ineligible to participate in the profit-sharing plan.
In case an employee does not work the entire fiscal year for reasons such as
those listed below, his share in profit distribution shall be a pro rata share based
on the period he worked during the fiscal year.
(а) Employment after the beginning of the fiscal year.
( б ) Death before the end of the fiscal year.
(c) Absence for illness or injury, except for the period during which sick bene­
fits are paid plus 30 days.
( d) Lay-off.
(e) Leave of absence.
Any individual whose employment is terminated, either voluntarily or other­
wise, before the end o f the fiscal year shall not be eligible to share in profit
distribution.
In the event of a general breach of article — which results in shutting down
the plant, all employees, as defined herein, shall forfeit their claim to share in
the distribution of the net profits for the fiscal year in which such breach occurred
226. Fifteen Percent of Profit A fter Company Sets Aside Fixed Amount of Net
Profits A fter Taxes. Equal Distribution to Employees With 1 Year's
Service
The company will set aside $225,000 of the net profits o f the company after
taxes; 15 percent of the balance of the net profit remaining will be distributed
to the employees covered by this agreement. In the case o f any employee who
has been an employee o f the company less than 1 year at the time of the dis­
tribution of said net profit, his or her share will be computed and distributed to
such employee pro rata in accordance with the employee’s length of service; the
balance then remaining shall be distributed equally among all other employees
o f the company covered by this agreement who have been employees of the com­
pany for 1 year or more. Distribution of profits under the above plan shall be
made within 30 days after the profits are determined at the end of the company’s
fiscal year to such employees covered by this agreement who are still in the
employ of the company. It is recognized by the union that this is a gratuitous
profit-sharing plan; that it is not to be construed as employee earnings so as
to be made, either by the union or any employee covered by this agreement, the
subject matter of any claim or suit under any Federal or State Fair Labor
Standards Act. Employees’ share of distributions will be subject to any deduc­
tions required by Federal or State law including taxes and Social Security.
227. Twenty Percent of Net Profits A fter Company Pays Wages, Salaries, and
$2 per Share to Stockholders. Distribution to Factory and Office Em­
ployees on Seniority Basis
After paying the existing rate of wages to mill employees and salaries to office
employees and a fair return to its stockholders, which shall be $2 per share, the
company will then divide 20 percent of the remaining net profits as a bonus
among its mill employees and office employees strictly on the basis of seniority.
The distribution of the bonus is to be made early in the month of December
after the result o f the first 1 1 months’ operation is known.
228. One-Half of Annual Net Profit A fter Specified Deductions. Employee Shares
Distributed by Union
A profit-sharing plan shall be in effect between the company and the employees,
whereby after deduction of 8 percent of the — fair valuation of the company’s
assets plus inventory on hand as of July 31, the annual net profit o f the com


66

COLLECTIVE BARGAINING PROVISIONS

pany, to be determined after closing of the company’s books July 31, will be
divided equally after taxes are paid (50-50) between the contracting parties.
The amount so to be divided will be known about the end o f the next following
month (August). The union will make distribution o f its share of the profits
among the employees as it may decide. The company’s office personnel will be
available to assist in calculating the amount due each employee, placing same
in envelopes or writing checks therefor and to aid in any other reasonable way.
229. One-Half of Net Income A fter Company Sets Aside Fixed Sum and Taxes
The amount paid union employees, beginning February 1 , ------ , shall be in­
creased as herein set forth b y ------------- .
A share of the profits earned by [company] during the fiscal year ending
January 3 1 ,------. The share of the said profits shall be paid weekly over the
period February 1 , ------ to January 3 1 ,------- . The total amount of profits to be
divided is $196,775. An employee’s share of the profits is determined by dividing
the total number of regular employees, irrespective of union affiliation, ex­
cluding the executives, buyers, resident and operating manager, and all em­
ployees having separate contract or other union arrangements with [company],
into the total amount of the wage fund. For the purpose of this agreement, the
amount guaranteed to be paid weekly to each full-time union employee will be
$2.11 per week. Employees working on a schedule less than 40 hours to receive
a proportional part of the $2.11. If, at the end of the year, there remains any
sum in the profit funds undistributed the balance shall be paid and distributed
with the last payment.
All union members who were members on February 1 ,------, and are presently
employed shall be entitled to participate in the profits as of February 1 , ------ ,
but otherwise no employee shall be entitled to participate in the profit fund until
they have been employed by [company] for a period of at least 3 months. No
person leaving the employ of the company shall be entitled to any further share
of the profits after the date of severance o f employment.
In the event that this profit sharing plan is continued beginning February
1 , ------ , unless the parties agree on modification thereof, the amount of the profits
to be placed in the profit pool for distribution will be calculated as follow s: New
profits before taxation for the fiscal year ending January 3 1 ,------ , will be con­
clusively determined by the certification by the [company] accountants, in ac­
cordance with the customary accounting practices, from the operation of the
business, excluding what is known as “ Capital gains and losses.” Out of the
net profits there will be set aside 4 percent on the total capital investment in the
business of $12,500,000, or the sum of $500,000. There will be then set aside the
amount of taxes applicable to this sum of $500,000, which $500,000 is to be net
to the corporation. The balance of the net income, after deducting this item of
$503,000 and the item of taxes in respect to the $500,000, will be divided one-half
to the owners and one-half to the employees’ profit pool.
230. Percent Bonus if Plant Shows Profit; Bonus Increased if Company and
Plant Both Shota Profit
A year end bonus of 1% percent shall be paid if the plant operates at a profit.
This will be increased to 2 percent if the company and the plant both operate at
a profit.
231. Cash Bonus Equal to Dividend on 50 Shares of Stock if Dividends Are Paid
to Shareholders. No Eligibility Requirements Specified.
The company agrees that whenever it shall pay a dividend to shareholders, it
will pay to each employee on the company’s pay roll on the pay-day following the
date of declaration of such dividend, a cash amount equivalent to the dividend



WAGE ADJUSTMENT PLANS

67

on 50 shares of stock, subject to the necessary deductions required by law. Pay­
ment shall be made on the pay-day coinciding with or following the date on
which dividends are paid to shareholders.
232.

Two Gents Per Hour if Net Earnings Before Taxes Do Not Decrease More
than 15 Percent
--------------the company also agrees that if the net earnings of the company
before taxes for the period of May 1 , ------ to May 1 , ------- , do not decrease more
than 15 percent, an additional 2 cents an hour will be paid to the drivers of both
companies and that this wage payment will be made for the period from May
1 , ------ , to December 3 1 ,------ , if the net earnings before taxes for the calendar
y ea r------ do not decrease more than 15 percent.

Index
WAGE ADJUSTMENT PLANS
Adjustment of individual wage rates during term of agreement__________
General permissive adjustment of individual rates:
Clauses
( 1 ) Employer may make individual wage adjustments if warranted(2) Employer pledge to acknowledge merit by granting merit in­
creases_____________________________________________________
(3) Union may request individual adjustment________- ____________
(4) Union may request adjustment; procedure outlined___________
(5) Individual increase by mutual consent when job duties increased( 6) Joint consideration to rates for exceptional employees_________
(7) Individual increase allowed only by mutual consent or arbitration
award_____________________________________________________
(8) Union approval for merit increase_____________________________
(9) Notification to union of individual wage adjustments---------------(10) All employees in classification to receive some increase granted to
individual already receiving top rate________________________
( 1 1 ) No individual increase without equal grant to all employees in
classification, unless union agrees otherwise__________________
( 12 ) Individual merit rates no cause for changing base rates________
(13) Merit rates based on merit survey not to be used as basis for fu­
ture minima_______________________________________________
Adjustment of intra-plant inequities or inequalities:
(14) Claims of inequalities subject to arbitration___________________
(15) Inequality disputes excluded from arbitration--------------------------(16) Special rate review procedure; final decision by employer---------(17) Consideration of ability in settling inequality claims----------------(18) Semi-automatic elimination of differential for similar jobs______
(19) Wage inequality adjustments effective as of date of settlement—
(20) Wage inequality claims retroactive to date mutually agreed on or
30 days after original request_______________________________
(2 1 ) Claims of inequity banned unless job content increases substan­
tially______________________________________________________
Wage progression plans-------------Merit plans:
(22) Merit review every 3 months; amount and frequency of merit
raise and employees receiving raise determined solely by com­
pany-----------------------—
-----------------------------------------------


Page

1

2

2
2
2
2
3
3
3
3
3
3
3
3
4
4
4
5
5
5
5

6
6

8

68

COLLECTIVE BARGAINING PROVISIONS

Merit plans— Continued
Pa*«
8
(23) Semi-annual reviews; appeal within 10 days___________________
(24) Frequency of merit reviews geared to weekly salary ranges; merit
increment limited to 10 percent of basic rate________________
8
(25) Initial rating by company at 6-month intervals; notice to em­
ployee and union of results of review within 5 days; reasons
8
for action given if grievance filed___________________________
(26) Periodic reviews suspended when economic conditions affect
company. Listing of permissible actions by company if em­
ployee not qualified for merit raise__________________________
9
(27) Union representative present at periodic merit review; disputes
subject to grievance procedure--------------------------------------------9
(28) Joint merit review; shortened procedure for complaints________
10
(29) Employer’s merit review subject to arbitration________________
10
(30) No definite review periods; amount of increment and factors con­
10
sidered specified______________________________________________
(31) Merit increases during review period limited to 20 percent of staff.
10
(32) .Merit raises granted to 25 percent of workers at each review
10
period; time limit on filing complaints_________________________
(33) Increases up to top of job grade by aptitude and merit; to top by
merit only. Factors listed____________________________________
11
(34) Employer to give consideration to union nominations for merit
increase____________________________________________________
11
(35) Union may petition company for individual merit raises_______
11
(36) Union may recommend merit increases; disputes arbitrable____
11
(37) Employee participates in efficiency rating; right to make written
agreement_________________________________________________
11
Automatic progression plant:
(38) Automatic increases every 4 months to maximum of rate range.
12
(39) Automatic increases yearly for 8 years________________________
12
(40) Automatic yearly progression to maximum except for laborers..
12
(41) Automatic increases in mileage rates up to 3 years------------------13
(42) Progression to top rate limited to * qualified” employees_______
'1
13
(43) Automatic progression schedule modified according to worker’s
progress___________________________________________________
13
(44) Listing of prerequisites for length of service increase. Cancella­
tion of increase on failure to qualify________________________
13
(45) Specified increase quarterly; effect of absence on service require­
ment specified; 10 -day notice to union if automatic increase
withheld___________________________________________________
13
(46) Speed of progression varies with type of job___________________
14
(47) Reclassification not to affect automatic progression to maximum
of grade____________________________________________________
14
(48) Credit for previous experience toward progression______________
14
(49) Credit for previous experience at company’s option____________
14
(50) Credit for previous experience on specified jobs only____________
14
(51) Service credit for time lost during leave limited to absences for
specified causes____________________________________________
15
(52) Lay-off and leave over 30 days, except military leave, excluded
in calculating length of service for automatic increase________
15
Combination automatic and merit progression:
(53) Automatic increases to mid-point of rate range; merit progression
to top of range-----------------15



WAGE ADJUSTMENT PLANS

69

Combination automatic and merit progression— Continued
Page
(54) Automatic progression to mid-point of range for day workers, to
three-quarter point for incentive workers; merit increases
thereafter__________________________________________________
16
(55) Automatic increases up to 12 months’ service; further increases
on merit___________________________________________________
16
(56) Automatic increases to “ normal rate;” merit reviews thereafter
at 6-month intervals_______________________________________
16
(57) Primary and secondary length of service and merit increases.
Limit on amount of individual and plant merit raises________
17
(58) Semi-automatic increases to progression point; merit raises there­
after. Denial of merit raise subject to arbitration__________
18
(59) Average of merit increments limited to 5 cents an hour in year___
18
Adjustment of general wage level during term of agreement_____________
18
Permissive wage adjustment plans______________________________________
20
General wage reopening clauses:
(60) Wage reopening— no restrictions______________________________
20
(61) Wage reopening— notice required_____________________________
20
(62) Wage reopening every 4 months---------------------------------------------20
(63) Wage reopened after 120 days________________________________
21
(64) Reopening once during second 6 months of 1 -year agreement_
_
21
(65) Reopening at 6-month intervals of 1-year agreement___________
21
(66) Reopening twice during 1 -year agreement-------------------------------21
(67) Reopening limited to twice during 1-year term------------------------21
(68) Wage reopening— either party every 6 months; mutual agree­
ment at any time---------------------------------------------------------------21
(69) Two-year agreement— yearly wage reopening__________________
21
(70) Reopening twice during second year of 2-year agreement_______
21
(71) Three-year agreement— yearly wage reopening. --------------------21
(72) Fringe issues and wages may be reopened on specified notice at
first anniversary date of 2 -year contract------------------------------22
(73) Time limit on negotiations after reopening------------------------------22
(74) Fringe wage issues excluded in wage reopening clause__________
22
Wage reopening based on specific factors-----------------------------------------------22
Changes in cost of living:
(75) General permissive cost-of-living reopening clause--------------------23
(76) Upward and downward adjustments to “ substantial” change in
Bureau of Labor Statistics index____________________________
23
(77) Reopening geared to “ decided” change in 6-month period______
23
(78) Upward and downward adjustment to cost of living or devalua­
tion of dollar_______________________________________________
23
(79) Specified percentage increase in cost of living; no reference to in­
dex________________________________________________________
23
(80) Specified point increase in Bureau of Labor Statistics Consumer’s
Price index_________________________________________________
23
(81) Specified point change in national industrial conference board in­
dex________________________________________________________
23
(82) Reopening geared to specified point increase; Bureau of Labor
Statistics and National Industrial Conference Board indexes
averaged_______________________________ >__________________
_
24
(83) Reopening when Massachusetts State index shows specified per­
cent rise after given date___________________________________
24




70

COLLECTIVE BARGAINING PROVISIONS

Changes in cost of living— Continued
(84) Reopening geared to cost of living and other specified factors;
wage changes not to affect employer’s competitive position ad­
versely_____________________________________________________
(85) Maximum amount of increase stipulated; agreement terminated
upon notice if negotiations fail______________________________
(86) Effective dates of any wage adjustments specified____________ _
(87) Union may reopen in event of inflation or legal reduction in hoursChanges in Government wage or price policy:
(88) Wage reopening based on change in National Wage Stabilization
policy_____________________________________________________
(89) Company may reopen if premium price plan discontinued______
(90) Reopening based on economic conditions or State or Federal war­
time regulations____________________________________________
(91) Reopening if price relief granted by OPA______________________
(92) Reopening if price controls on food, clothing, and rents are ter­
minated____________________________________________________
(93) Reopening if national wage and price policy adopted for industry
or if overtime work discontinued____________________________
(94) Increase in minimum wages__________________________________
(95) Increase in minimum wage or change in price ceilings of product.
Changes in general economic conditions or company’s competitive position:
(96) Wage reopening when economic conditions warrant____________
(97) Reopening geared to substantial change in economic conditions.
(98) Reopening geared to industry and area economic status________
(99) Reopening based on changes in company’s competitive or eco­
nomic position; effective date of adjustment outlined________
(100) Wage reopening when changed economic conditions impose hard­
ship on either party________________________________________
(101) Reopening based on company’s ability to pay as shown by its
books______________________________________________________
(102) Reopening for upward adjustment based on company’s financial
position_________________________
(103) Company may reopen wages if operations run at loss for 3 months.
(104) Company will consider wage adjustment in event of drastic
inflation; union will consider reduction if necessary to meet
competition________________________________________________
Changes in industry or area wage levels:
(105) Reopening in event of change in wage structure generally and
nationally__________________________________________________
(106) Reopening if industry leaders make general wage increases------(107) Reopening if 60 percent of industry modifies wage policies______
(108) Reopening if three of five competitors in area renegotiate wages.
(109) Reopening in event of general wage changes in area____________
(110) Adjustment to prevailing rates in similar plants in area________
(111) Adjustment of wages not in line with area practice____________
( 112 ) Reopening if non-association member has competitive advantage
Reduction in workweek:
(113) Wage reopening if workweek reduced by company_____________
(114) Reopening if workweek reduced by legislation_________________
(115) Wage reopening on return to 5-day week______________________
(116) Reopening if workweek reduced below 48 hours. Prerequisites
listed for retroactivity of wage adjustment__________________



Page

24
24
25
25

25
25
25
26
26
26
26
26
26
27
27
27
27
27
27
27

28

28
28
28
28
28
29
29
29
29
29
29
29

WAGE ADJUSTMENT PLANS

71
Page

Changes in price of product:
(117) Reopening geared to rise in price of product___________________
(118) Reopening of wages if discontinuing of OPA results in change of
price of copper_____________________________________________
(119) Reopening if price of metal used in construction changes_______
(120) Reopening if prices fall below cost of production or if natural
catastrophe occurs--------------------------------------------------------------Status of agreement if parties fail to agree on wage adjustment:
(121) Arbitration if parties fail to agree on wage adjustment_________
(122) Special wage arbitration tribunal______________________________
(123) Standards to govern arbitrators decision stipulated____________
(124) Scope of arbitrator’s authority specified_______________________
(125) Agreement continues to stated expiration date if parties fail to
agree on adj ustment_______________ _ — , ---------------------------(126) Wage clause terminated; other contract provisions remain in
effect______________________________________________________
(127) Agreement terminated unless jointly extended for further nego­
tiations; cost-of-living bonus continued if no reopening___ ___
(128) Strike permitted if parties fail to agree on wage adjustment____
(129) Strike permitted provided secret strike vote taken on company
premises under Government supervision------------------------------(130) Action after failure to reach settlement does not affect agree­
ment; no-strike clause inoperative___________________________
(131) No-strike clause not applicable to wage issues; other agreement
terms remain in effect______________________________________
(132) Agreement terminates 30 days after notice if negotiations fail_
_
(133) Agreement terminated on secret vote of 75 percent of employees
if negotiations fail after 60 days; wages and other money items
subject to revision__________________________________________
(134) Effective date of wage adjustment specified, whether mutually
agreed upon or awarded by arbitrator---------------------------------Automatic wage adjustment plans--------------------------------------------------------Automatic adjustments based on cost of living:
(135) One cent change for each point change in Bureau of Labor Sta­
tistics index________________________________________________
(136) Automatic percent increase to specified percent increase in Bureau
of Labor Statistics city index_______________________________
(137) Upward and downward percent adjustment equal to specified
percent change in index during 6-month period______________
(138) Percent wage adjustment based on percent change in index;
adjustments at 3-month intervals; limits on downward adjust­
ments_____________________________________________________
(139) Percent wage adjustment based on point change in index; limit
on downward adjustment___________________________________
(140) Percent wage change based on specified point change in index if
change lasts 2 months______________________________________
(141) Percent wage change based on point change in index— adjustments
at 6-month intervals________________________________________
(142) Flat wage changes based on point changes____________________
(143) Automatic adjustment to specified point change in average of
specified commodities in Bureau of Labor Statistics index^__




30
30
30
30
31
31
32
32
32
32
33
33
33
33
34
34

34
34
35

36
36
36

36
36
37
37
38
38

72

COLLECTIVE BARGAINING PROVISIONS
Page

Automatic adjustments based on prevailing industry or area wages:
(144) Automatic increase in event of general wage increase in industry.
(145) Automatic increase if industry raises wages; company right to
reduce wages if industry does so____________________________
(146) Automatic adjustment to increases granted by industry pace
setters_____________________________________________________
(147) Company will give increase given by competitors in area_______
(148) Company to maintain job rates not lower than “ weighted-average
rate” of competing plants in area___________________________
(149) Automatic adjustment to equal prevailing minimum rates in
area_______________________________________________________
(150) Automatic adjustment to going area rates on specified date____
(151) Automatic adjustment to prevailing rate paid under local agree­
ments negotiated by affiliated unions_______________________
(152) Adjustment “ on comparable basis” to competitor’s increase____
(153) Employer to pay rates comparable to those paid by named
competitors_______________________________________
(154) Employer to match increase obtained by union in agreement
with competing employers__________________________________
(155) Automatic increases equal to those granted in other specified
plants of employer_________________________________________
Automatic adjustments based on reduction in workweek or change in
minimum wages:
(156) Specified wage increase if Federal minimum wage increased to 65
cents______________________________________________________
(157) Specified monetary increase if workweek falls below 48 hours. .
(158) Specified percent increase if hours cut from 48 to 40___________
(159) Specified increase if workweek cut from 6 to 5 days___________
(160) Agreement to conform automatically to new legal minimum
wage, if higher, and hours, if lower__________________________
(161) No reduction in weekly wages and upward adjustment of piece
rates if law limits hours of work____________________________
Automatic adjustments based on price of product:
(162) Weekly bonus geared to quoted selling price of metal__________
(163) Upward and downward adjustment based on sales price_______
(164) Bonus geared to price of product plus upward wage adjustment
to match increase in specific industry_______________________
(165) Sliding scale geared to price of metal suspended_______________
Combination permissive and automatic plans:
(166) One-cent adjustment for every point change within fixed 20point range; negotiations thereafter_________________________
(167) Percent wage adjustments twice yearly based on percent BLS
index changes; negotiations including arbitration if index rises
abnormally between periods________________________________
Cost-of-living bonus:
(168) Cost-of-living bonus continued----- -------(169) Flat monthly cost-of-living bonus_____________________________
(170) Monthly cost-of-living bonus graduated to employees’ hourly
rates______________________________________________________
(171) Three percent cost-of-living bonus applied only to specified
amount; minimum increase in BLS index specified_____ ...___




38
38
38
38
39
39
39
39
39
39
39
40

40
40
40
40
41
41
41
42
42
42

43

43
44
44
44
45

WAGE ADJUSTMENT PLANS
Cost-of-living bonus— Continued
(172) Combination automatic and permissive cost-of-living bonus plan;
weekly percentage adjustments to gross earnings when BLS
index rises between 7 and 12 percent; renegotiation, including
arbitration, if index increases more than 12 percent__________
(173) No increased bonus if cost of living rises; reduction in existing
bonus if cost of living declines______________________________
Bonus plans___________________________________________________________
Christmas and continuous-service bonus plans:
(174) Christmas bonus to be negotiated_____________________________
(175) Christmas bonus— company to continue past practice--------------(176) Employer relieved of obligation for future Christmas bonuses
but reserves right to pay bonus_____________________________
(177) Christmas bonus— provided profits in company’s opinion are
sufficient_____________
(178) Christmas bonus— fixed amount to all regular employees_______
(179) Christmas bonus— fixed amount to employees with k year of
service____________________________________________________
(180) Christmas bonus— 40 hours’ pay--------------------------------------------(181) Christmas bonus— fixed amounts geared to length of service; no
minimum service requirements______________________________
(182) Christmas bonus— fixed amount if no strike during year_______
(183) Christmas bonus not considered part of basic wage structure—
(184) Continuous service bonus plan—fixed amounts graduated accord­
ing to length of service_____________________________________
(185) Annual bonus at sole discretion of company___________________
(186) Annual bonus— 2 percent “ wage dividend” ____________________
(187) Annual bonus— 2% percent of annual earnings; bonus paid to sep­
arated workers_____________________________________________
(188) Annual bonus— 3 percent of earnings to employees with 1 year of
seniority by cut-off date__________________________________
(189) Continuous service bonus— semi-annual percentage bonus grad­
uated according to length of service_________________________
(190) Continuous service bonus twice yearly— percentage of earnings;
graduated according to length of service. Payable to discharged
or resigned workers_________________________________________
(191) Continuous service bonus for women— percentage of earnings
graduated according to length of service------------------------------(192) Ten percent bonus twice yearly to employees with 6 months’ serv­
ice; separated employees excluded___________________________
(193) Union members only receive bonus based on percentage of em­
ployee’s “ gross wages” ______________________________________
(194) Continuous service bonus— 10 percent of wages to personnel who
stay with vessel for stated period___________________________
(195) Bonus to employees finishing season based on minimum time
worked each season_________________________________________
(196) Flat bonus for continuous employment for stated period; weekly
bonus to those employed part time during period____________
Attendance bonus plans:
(197) Attendance bonus— flat weekly bonus in war stamps; no excuses
for absence or lateness________________________
(198) Attendance bonus— 5 cents per hour for all hours worked in
week provided no absences_________________________________
(199) Attendance bonus— 5 percent; excusable absences listed________



73
Page

45
46
46
47
47
47
47
47
47
47
47
48
48
48
48
48
49
49
49

49
50
50
50
50
50
50

51
51
51

74

COLLECTIVE BARGAINING PROVISIONS

Attendance bonus plan— Continued
Page
(200) Attendance bonus:— cents per hour for hourly workers; percent
of earnings for salaried employees; amount of bonus cut by
51
unexcused absences------------------------------------------------------------(201) Attendance bonus— graduated amounts geared to number of
shifts worked during year___________________________________
52
(202) Attendance bonus eliminated; amount added to existing rates_
_
52
Production, sales, and other bonus plans:
(203) Graduated bonus if production exceeds quota in 4-week period-52
(204) Flat bonus if production exceeds quota over 4-week period_____
52
(205) Production bonus to production and nonproduction workers.
Paid weekly for excess over past performance standard. Com­
52
puting overtime under bonus plan__________________________
(206) Production bonus based on monthly ratio of pay roll to total
productivity_______________________________________________
53
(207) Monthly production bonus fund based on items made and sold.
Eligibility defined as 60 days’ service_______________________
53
(208) Production bonus— fund based on one-half of each 1 percent net
gain in annual production over base production index multi­
plied by total pay roll. Individual bonus geared to hours
worked. Union and employer share wages of employee ap­
pointed to check company calculations______________________
54
(209) Production bonus— specified amount per unit shipped. Pro
rata payment to employees on leave________________________
55
(210) Monthly bonus graduated to value of shipments above standard.
Adjustment for varying workweeks.
Minimum work require­
ments specified_____________________________________________
55
(211) Production bonus— specified amount graduated to monthly sales.
Bonus includes all company employees with named exceptions
and excludes employees absent or late______________________
56
(212) Production bonus— amount geared to time saved in doing specific
job ________________________________________________________
56
(213) Increase granted if hourly production matches that of specific
competitors________________________________________________
57
(214) Safety bonus— specified mileage rate if no “ chargeable accidents.”
Right to appeal accident claim______________________________
57
Profit-sharing:
(215) Reference to company profit-sharing fund---------- :--------------------58
(216) Profit bonus at sole company discretion_______________________
58
(217) Payment and amount of bonus at sole company discretion_____
59
(218) Cash bonus graduated according to company’s net earnings____
59
(219) Bonus based on percentage of annual earnings if company oper­
ates “ at a profit” . Limitations on arbitrator_______________
59
(220) Ten percent of net profits. Individual share proportionate to
hours worked during year. Share paid to eligible employees
despite severance___________________________________________
60
(221) One-fifth of net profits before taxes. Individual share based on
annual earnings, service, and position_______________________
60
(222) Ten percent of net profits before taxes. Individual share equals
ratio of 10 percent profits to total payroll; with minimum
guarantee of 5 percent of annual earnings. Company figures
not subject to question by union. Special provision for em­
ployees leaving company before bonus payment_____________
61




WAGE ADJUSTMENT PLANS

Profit-sharing— Continued
(223) Twenty percent of operating profit before taxes. Individual
share graduated to seniority. Union may use own accountants
to verify profit figures______________________________________
(224) Ten percent of net profit after taxes. Semi-annual distribution.
One-year service requirement_______________________________
(225) Ten percent of net profits before taxes but not over 15 percent of
net profits after taxes. Equal shares to employees, prorated
if absent for listed causes. Employees terminated are dis­
qualified___________________________________________________
(226) Fifteen percent of profit after company sets aside fixed amount
of net profits after taxes. Equal distribution to employees
with 1 year's service________________________________________
(227) Twenty percent of net profits after company pays wages, salaries,
and $2 per share to stockholders. Distribution to factory and
office employees on seniority basis__________________________
(228) One-half of annual net profit after specified deductions. Em­
ployee shares distributed by union__________________________
(229) One-half of net income after company sets aside fixed sum and
taxes______________________________________________________
(230) Percent bonus if plant shows profit; bonus increased if company
and plant both show profit_________________________________
(231) Cash bonus equal to dividend on 50 shares of stock if dividends
are paid to shareholders. No eligibility requirements specified.
(232) Two cents per hour if net earnings before taxes do not decrease
more than 15 percent_______________________________________




75
Page

62
64

64

65

65
65

66
66
66
67