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Employee Benefit Plans
Under Collective Bargaining

[Reprinted (with additional data) from the January, May, and
September 1948 issues of the Monthly Labor Review]

Bulletin No. 946
Maurice J. Tobin, Secretary
Ewan Clague, Commissioner

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

Price 20 cento


Letter of Transmittal
U n it e d S t a t e s D e p a r t m e n t op L abor ,
B u r e a u of L abor S t a t is t ic s ,

Washington, D. €., October 20,1948.
The S ecretary of L abor :
I have the honor to transmit herewith several articles, illustrative collective-bargaining
contract clauses, and a selected bibliography on employee benefit plans under collective
bargaining. The materials in this bulletin comprise part of a general long-range study
of insurance, sickness, medical care, and retirement plans conducted jointly by the
Bureau of Labor Statistics, and the Social Security Administration and Public Health
Service of the Federal Security Agency.
The materials for this bulletin were assembled in the Bureau’s Division of Industrial
Relations by Abraham Weiss (who also participated in planning the over-all study), with
the assistance of Evan Keith Rowe. Joseph Zisman of the Bureau of Research and
Statistics, Social Security Administration, and members of the staff of the Industrial
Hygiene Division of the Public Health Service participated in the planning of the over-all
study, and in the conduct of several of the field surveys.
E w a n C la g u e , Commissioner.
Hon. M a u r ic e J. T o b in ,
Secretary of Labor.



Benefit plans under collective bargaining______________________________________
Medical service plans under collective bargaining______________________________
Employee-benefit program of Consolidated Edison_____________________________
Appendix I —Sample employee-benefit clauses in collective bargaining a g r e e m e n t s . 19
Continuation of existing group insurance benefits__________________________
Employer-financed group insurance plans:
Details of benefits not listed_________________________________________
Blue Cross hospitalization plan_______________________________________
Multiple benefits listed______________________________________________
Detailed multiple-benefit clause; coverage for dependents at employee’s
expense optional with employee____________________________________
Employer contributions to union fund to purchase group insurance_____
Jointly financed group insurance plans:
Life, accident and sickness insurance—Employer to pay half the cost___
Health, hospitalization, and accident insurance—Employee cost not to
exceed specified amount. Joint committee to administer dividends___
Life, health, accident, and hospitalization insurance—No details. Depend­
ents covered. Employee cost specified_____________________________
Details of benefits not specified. Dependent coverage optional with em­
ployee. Division of dividends on same ratio as payments____________ 22
Group insurance plan: Hospitalization noncontributory; other benefits, con­
Welfare and retirement fund—Employer financed--------------------------------------22
Medical health center fund---------------------------------------------------------------------- 24
Pension or retirement plans:
Noncontributory plan----------------------------------------------------------------------- 26
Contributory plan---------------------------------------------------------------------------- 27
Appendix I I —Selected bibliography on employee-benefit plans under collective
bargaining------------------------------------------------------------------------------------------------ 28



Employee Benefit Plans Under Collective Bargaining

Within recent years there has been a growing
trend toward the inclusion of various insurance,
sickness, and retirement plans in agreements
between employers and unions. Because of the
increasingly important role of such plans in collec­
tive bargaining negotiations, the Bureau has
assembled three articles on this subject which
first appeared in the Monthly Labor Review.
Previous Monthly Labor Review articles on the
same subject are not reproduced here because
they were released as separate bulletins. These
are listed in Appendix II, Selected Bibliography.
The first article in this bulletin, Benefit Plans
under Collective Bargaining, presents a current
over-all picture of the scope and characteristics
of such plans. In addition, it traces the growth
and development of employee-benefit plans and
summarizes postwar developments in this field.
Reference is also made to the regulation of health
and welfare funds by the Labor Management
Relations Act and to decisions of the National
Labor Relations Board on employers’ obligations
to bargain collectively on employee-benefit plans.
The second article, Medical Service Plans Under
Collective Bargaining, is a comparative study of
the origin, growth, and development of two out­
standing medical service plans established through
collective bargaining, namely: The Labor Health
Institute in St. Louis sponsored by the St. Louis

Board of the United Retail and Wholesale Union
(CIO), the Union Health Center in Philadelphia
established under the terms of an agreement
between the Philadelphia Waist and Dress Manu­
facturers’ Association, and the International
Ladies’ Garment Workers’ Union (AFL) acting
through the Philadelphia Joint Board Waist and
Dressmakers’ Union.
The final article, Employee-Benefit Program of
Consolidated Edison, is a detailed presentation of
a company program embracing both medical
care and insurance benefits. The plan, initiated
over half a century ago, has in recent years come
within the scope of the company’s collective­
bargaining agreement with the union.
Two appendices are also included in this bulletin.
The first contains a number of health, welfare,
and retirement benefit clauses excerpted from
collective bargaining agreements on file in the
Bureau. They are neither model contract clauses
npx are they necessarily representative of prac­
tice in the industry, but rather a sample selection
which indicates a variety of approaches. On the
other hand, they may well serve as a reference
guide to those who participate in collective bar­
gaining negotiations.
The Selected Bibliography on Employee-Benefit
Plans Under Collective Bargaining is included as
Appendix II for those who may be interested in
further study of the subject.

Benefit Plans Under Collective Bargaining
More than 3 million workers—over twice the
number in early 1947—were covered by some type
of health, welfare, and/or retirement benefit plan
under collective-bargaining agreements by mid1948. This coverage includes benefit plans nego­
tiated as a part of labor-management agreements,
and those originally established by employers and
later incorporated into an agreement.

This rapidly growing trend toward the inclusion
of such plans for employees in collective bargain­
ing contracts represents a determined attempt by
unions to cope with the dangers of insecurity facing
workers and their families from wage loss and
medical expense due to illness or to injury not
covered by workmen’s compensation. The Social
Security Act and State workmen’s compensation




laws provide some measure of financial protection
against unemployment, dependent old age, death,
and job loss through work injury, but not against
nonoccupational illness or injury. Only three
States—Rhode Island, California, and New Jer­
sey—have adopted such benefit systems for work­
ers covered by unemployment insurance. Federal
legislation in this field applies only to railroad
workers, for whom benefits became effective in
July 1947.
The emphasis placed by unions and employers
on illness and injury benefits is widespread.
Adoption of such programs through collective
bargaining, however, is still a comparatively new
phenomenon in industrial relations, and has
created problems in labor-management relations
of the employers’ obligation to bargain collectively
on health-benefit and pension plans. Recent
decisions of the National Labor Relations Board
indicate that such benefits are subject to collective
bargaining, but the issues involved have been
submitted to the courts for final determination.

bility relief.1 Between 1900 and 1930, the num­
ber of welfare plans sponsored by employers in­
creased substantially. Organized labor, because
it had no voice in the administration and was not
protected by contractual obligations, never whole­
heartedly endorsed such plans.
A Bureau survey of 15,636 manufacturing
establishments, in 1945 and 1946, disclosed that
47 percent had insurance or pension plans for
plant workers. Life insurance plans were found
in 37 percent, health insurance in 30 percent, and
retirement pension systems only in 5 percent of
the manufacturing plants.2
Employers have also assisted in the formation
of employee mutual benefit associations which, in
most instances, are supported solely by employ­
ees, and which supply some financial assistance to
disabled workers.3
Health and welfare programs under collective
bargaining have been in effect, in isolated cases,
since the late twenties.4 On the whole, progress
was slow during the 1930’s, and at the outbreak
of World War II relatively few union agreements
made provision for health and welfare benefits
Growth and Development of Plans
and/or old-age pensions.
The war period stimulated the growth of plans
Unions, and employers’ concern with problems
also brought a number of existing employer
affecting the health and welfare of workers is not
within the scope of union agreements.
new. In fact, most of the older craft unions have
wage stabilization regulations limited
had for many years plans for rendering financial
of wage increases which employers
aid to their members. Many of these unions
at the same time, permitted the
started as fraternal or benevolent associations.
employee insurance and
Their objective was not only to raise wages and
in 1945, the National
improve working conditions, but also to supply
in a number of
sickness, unemployment, old-age, and mortuary
not modify or
aid to the members or their widows. Such plans
were financed entirely by union members, through discontinue their group insurance plans during
membership dues or special assessments. After the life of their union agreements. The Boards
World War I rising benefit costs, financial insta­ also ordered employers, in some cases, to include
bility due to the depression, and the enactment of existing unilateral benefit plans within the agree­
the Social Security Act in 1935 led many unions ment.
Other factors contributing to the growth of
to revise or terminate their self-financed benefit
and welfare plans, whether employer spon­
schemes. Others have continued and are still
established through collective bargaining,
Employers also have for many years made
W. Latimer: Industrial Pension Systems in the United States
available, both with and without employee con­ and1 Murray
Canada, 1932 (p. 20).
2 Extent of Insurance and Pensions in Industrial Employment, in Monthly
tributions, medical aid to workers in the form of Labor
Review, July 1947.
direct medical services, hospitalization, and cash
8 Office space and clerical help are generally furnished by the employer.
4 The first agreement, according to records of the Bureau of Labor Sta­
payments during disability, as well as group life tistics,
employees of the Newburgh, N. Y., Public Service Corpora­
insurance and pension plans. The railroads or tion andinvolved
was negotiated by the Amalgamated Association of Street and
Electric-Railway Employees (AFL) May 1,1926. This agreement provided
companies closely associated with them were the for
a life insurance policy of $1,000 and weekly sick benefits of $16. (Monthly
first to set up formal plans for old-age and disa­ Labor
Review, February 1930, p. 10.)


were favorable tax regulations and a growing feel­
ing, in many quarters, that existing social security
benefits, as provided by the Social Security Act
of 1935, no longer were adequate. Based on
experience with their own benefit schemes, as well
as the demands of their members, unions became
increasingly aware of the need for protecting their
members from the hazards of sickness and accident
and for providing medical-care assistance.
Health benefit plans put into operation through
collective bargaining are of two major types.
The first, and by far the most predominant pat­
tern, is some form of a group insurance program.
Operated through commercial insurance com­
panies, it provides cash reimbursement to the
workers to compensate them in part for loss of
wages resulting from sickness, for hospital expense,
cost of surgery, and, less frequently, for other
medical expenses. The second and less prevalent
type of plan provides service which includes
hospitalization and care rendered by a physician
in the home and clinic.
In a number of industries, the existence of
these plans is the direct result of union sponsor­
ship and collective bargaining; in others, they
represent a pre-existing employer-sponsored plan
which has been incorporated into the union con­
tract. Current programs differ from earlier union
or company welfare plans in several respects:
(1) The plans are part of the collective-bargaining
agreement and affect all the workers covered by
the agreement; (2) they are financed entirely or in
considerable part by the employer; (3) the funds
involved are union or jointly administered;
(4) benefits are generally more comprehensive in
coverage and amount.
Status and Characteristics of Plans, 1948

About 45 percent of the 3 million workers
included under some type of employee-benefit
plan, it is estimated, are covered by plans which
provide health and welfare benefits, except retire­
ment.*6 Such plans include one or more of the
following benefits: Sickness or accident, hospitali­
zation, surgical, maternity, medical care (services
or cash), accidental death or dismemberment,
welfare assistance, life insurance, and death.6
About 44 percent are covered by plans which
provide one or more of these specific benefits, as
well as pensions, and about 11 percent are covered
solely by retirement or pension provisions.


Health, welfare, and retirement benefit plans
under collective bargaining are known to exist
in some form, and in varying degrees, within the
jurisdiction of nearly 100 national and interna­
tional unions surveyed having an estimated total
membership of slightly over 12,000,000. Of the
remaining 100 unions surveyed, at least 40 operate
in fields such as State or Federal Government
where written collective-bargaining agreements
do not generally exist, although some groups of
employees are covered by benefits, or on railroads
where health and retirement benefits are provided
by law. Some unions did not reply; others stated
no such plans existed; and still others furnished
insufficient information to determine whether
such benefit programs existed within their juris­
Some plans are union-, industry-, or area-wide
in their coverage, as in the case of the United
Mine Workers (Ind.), the International Ladies
Garment Workers (AFL), and the Amalgamated
Clothing Workers (CIO). In the majority of
instances, however, plans are confined to various
union locals in a particular area.
Large numbers of workers in the following indus­
tries are covered by some type of health, welfare,
and/or retirement benefit plan under collective
bargaining: Coal mining, clothing (men's and
women's), textiles and hosiery, millinery, building
trades, machinery (particularly electrical), rubber,
office and professional workers, paper, furniture,
shipbuilding, steel, utilities, retail and wholesale
trade, local transportation, fur and leather, clean­
ing and dyeing, hotel and restaurant, telephone
and telegraph, playthings, and jewelry.
About 450,000 workers in coal mining, at least
875,000 in clothing and textiles, and 150,000 or
* Estimates are based on a questionnaire survey made by the Bureau of
Labor Statistics as part of a continuing study of health and welfare benefits
under collective bargaining, conducted jointly with the Social Security
Administration and the U. S. Public Health Service. The questionnaire
was sent to 200 national and international unions (AFL, CIO, and independ­
ent) during the later half of 1947 and early 1948, and was supplemented by
material on file in the Bureau as well as other available sources. A limited
amount of field work was also undertaken in connection with the study.
Previous Bureau estimates indicated that at least 600,000 workers were
covered by various types of health-benefit plans under collective-bargaining
agreements in 1945 (see BLS Bull. No. 841) and that approximately
1,250,000 were covered by early 1947 (BLS Bull. No. 900). The estimate
of 3 million is not directly comparable with the earlier figures, since the
present survey is of somewhat broader scope and includes life insurance and
pension or retirement plans not generally included in the earlier studies.
• Inasmuch as the primary objective of the survey was to ascertain the
extent and coverage of workers under these plans, no attempt was made to
determine the coverage by specific type of benefit. Such data are not
available in most cases at the national or international union offices.



more bus, street, and electric railway workers
are covered by some type of plan under collective
bargaining. In the steel industry, approximately
138,000 workers are covered in over 300 contracts;
about an equal number of workers are covered in
agreements of the United Electrical and Radio
Workers (CIO).
A uniform plan is sponsored by some national
and international unions for adoption in the col­
lective bargaining agreements of their districts,
joint boards, councils, locals, etc. Currently,
between 25 and 30 unions are known to follow
this pattern. The majority of employee-benefit
plans, however, are negotiated on a local or
regional basis. Although a uniform plan may be
sponsored by a union, it does not follow that the
plan is incorporated in all of the various collectivebargaining agreements of its local affiliates. It is
often but a proposed goal, particularly where
collective bargaining is centered at the local level.
National unions, which do not sponsor a uniform
plan, assist their locals in negotiating a benefit
program. In some cases, the national union
supplies the local with information of a general
character and with copies of welfare plans in effect
in the same or a similar industry. In contrast,
other national unions make available their repre­
sentatives to aid the local in negotiations, or provide
actuarial advice, information on costs and admin­
istration of various plans, and technical assistance
in analyzing management proposals. Some unions
retain technical experts to assist in developing
these programs. As a result of this extensive aid
and close supervision by the parent organization,
considerable similarity is found among the plans
adopted by the various local unions.
Administration of existing benefit plans, with
few exceptions, fall into four basic types: (1) Those
administered solely by the union, (2) those admin­
istered jointly by the union and employer, (3)
those administered by union and employer rep­
resentatives and a neutral person, and (4) those
administered by a private insurance carrier which
undertakes the responsibility for determining eli­
gibility claims and payments of benefits.7
Plans administered by the union, or jointly by
the union and employer, usually require that parti­
cipants be union members in good standing. If
7 See footnote 11, p. 6, for the provisions of the Taft-Hartley Act dealing
with the administration of welfare funds.

the benefit program is handled by an insurance
company, the coverage usually is not restricted
to union members unless the agreement provides
that the union shall purchase the insurance;
In the majority of plans underwritten by an
insurance company, benefit coverage (except life
insurance) generally ceases upon termination of
employment or at the end of the policy month.
Life insurance coverage generally terminates at
the end of the policy month following severance
of employment. Extended coverage for hospi­
talization and surgery is often provided employees
disabled at the time of lay-off. In unionadministered plans, workers are quite often
eligible for benefits during slack seasons or
lay-offs provided they remain members in good
standing with the union. Under an area- or
industry-wide plan, employees can usually transfer
from employer to employer without loss of coverage.
Most of the plans created under collective
bargaining are financed entirely by the employer,
either through the contribution of a specified per­
centage of his pay roll (usually 2 or 3 percent,
higher in some cases), or by outright purchase of
insurance policies. Payments into the bituminous
coal and anthracite funds are based on a fiat con­
tribution of 20 cents for each ton of coal produced
“for use or for sale.” The recent Kaiser-FrazerUAW-CIO agreement provides for payment by
the employer on the basis of 5 cents per hour
worked by each employee. If the plan is of a
contributory character, the amount the employer
contributes may be specified in detail or the em­
ployer may assume all costs of the plan over and
beyond a stipulated contribution made by the
individual worker through regular wage deduc­
tions. The present trend is toward complete
financing of the plan by the employer, or toward
lowering the employee’s share of the cost in a
contributory plan.
The present tendency is to increase the number
of different benefits provided, as well as to liberal­
ize existing benefits. Medical services, particularly
of a preventive nature, and pension programs are
currently receiving special attention. The pro­
gram of the St. Louis Labor Health Institute,
which evolved from a plan sponsored by the local
joint council of the CIO Retail and Wholesale
Department Store Union, is a noteworthy example
of the trend toward furnishing more medical care;
the establishment of additional health centers


by the International Ladies’ Garment Work­
ers’ Union (AFL) outside the New York market
area illustrates the manner by which preventive
medical services are being extended to greater
numbers of workers.8* Plans for the establishment
of health centers have recently been announced by
the Amalgamated Clothing Workers (CIO) and
the New York Clothing Manufacturers’ Exchange,
as well as by the AFL New York Hotel Trades
Council and the Hotel Association of New York
Weekly disability benefits are usually based on
an employee’s average weekly earnings—ranging
to as high as 60 percent of his regular income.
Most benefits start on the eighth day in case of
illness and on the first day in case of accidents.
An increasing number of unions are proposing
that the waiting period for illness be shortened.
The maximum time allowed for receiving bene­
fits is generally from 13 to 26 weeks (6 weeks in
case of pregnancy) for any one continuous dis­
ability, although a number of plans allow con­
tinuous coverage for 52 weeks, as in the case of
the Upholsterers’ (AFL) plan.
Hospital benefits may take the form either of
cash reimbursement for a specified period (often
31 days for any one continuous disability) or
the provision of service, such as characterizes
the various so-called Blue Cross plans. Surgical
insurance usually provides cash reimbursement
in accordance with a schedule of maximum bene­
fits allowable for specific types of surgical opera­
tions performed in a hospital. These maxima
may range from $5 for minor operations to as
high as $225 for major operations in a few plans.
Hospital coverage for dependents is provided
in some plans, but additional contributions by
the employee are usually required.
Postwar Developments

During the war and the immediate postwar
period, organized labor stepped up its drive for
health and pension plans. Such demands no
longer were considered as “fringe” issues. Many
unions sought and, in a number of cases, obtained
new benefit plans or succeeded in bringing exist­
ing plans within the scope of the collective bargain­
ing agreement. The United Mine Workers
proposed the establishment of a welfare and retire­
8 For description of these plans, see Monthly Labor Review, January 1948
(p. 34), or p. 7-13 of this bulletin.



ment fund during the 1945 bituminous-coal con­
tract negotiations. They obtained such a fund
in May 1946 in the Krug-Lewis agreement follow­
ing Government seizure of the mines. The
United Automobile Workers (CIO), in negotia­
tions with General Motors Corp. in August 1945,
proposed that the company finance a social
security fund. It created a social-security com­
mittee to study various types of employee socialsecurity plans and to promote the union’s socialsecurity program.
In October 1947, the union and the Ford Motor
Co. reached agreement on a pension plan, but the
agreement was rejected by the workers in a
referendum vote. Employees were given the
choice of a 7-cent hourly wage increase and the
retirement program, or a 15-cent wage package as
agreed to by the other major automobile pro­
ducers, consisting of an 11%-cent pay increase and
six paid holidays. The second alternative was
accepted by the workers. On June 11, 1948, the
UAW obtained its first major employee welfare
plan under collective bargaining when the KaiserFrazer Corp. agreed to put 5 cents for each hour
worked by its employees into a jointly admin­
istered social-security fund.
In December 1945, the Amalgamated Clothing
Workers of America (CIO) concluded an agree­
ment with the manufacturers and contractors of
men’s and boys’ clothing which provided retire­
ment benefits, equal to those under Federal
Old-Age and Survivors Insurance, for approx­
imately 150,000 employees. Payments under this
plan went into effect January 1, 1947. This is in
addition to death benefits, weekly disability pay­
ments, and hospital expense and maternity
benefits which were obtained in previous years.
The International Brotherhood of Electrical
Workers (AFL) and the National Electrical Con­
tractors Association negotiated an agreement in
September 1946 under which contractor members
of the association became contributors to the
IBEW pension fund (in existence since 1928).
Contributing union members reaching age 65,
after 20 years’ membership in good standing, are
paid $50 a month. The employer contributions
amount to 1 percent of gross pay rolls.
The United Steelworkers of America (CIO) and
the United States Steel Corp. reached an agree­
ment in 1947 to participate in a joint study of the
problem of insurance coverage for the corpora­



tion’s employees. It was further provided that
“when agreement is reached with the union on the
elements of the new plan, methods of financing and
administration, it will be adopted and put into
effect.” 9 One of the first contractual insurance
plans in the basic steel industry was negotiated in
May 1947 by this union with the AlleghenyLudlum Steel Corp., providing life insurance,
accidental death and dismemberment, sickness and
accident, hospitalization, and surgical and matern­
ity benefits. This agreement replaced a companyestablished, noncontractual, contributory insur­
ance plan. This union also signed an agreement
in May 1947 with the Aluminum Co. of America,
providing death, sickness and accident, and
hospitalization benefits.
Regulation oj Health and Welfare Funds. The
pressure arising from union demands for “health
and welfare” and the growth and increasing
importance of such plans 10 focused the attention
of Congress on the administration and disposition
of the funds built up by employer contributions.
Concern over the uses to which such funds might
be put if the union were sole administrator led
Congress to prescribe certain rules and regulations
governing the purpose and administration of
welfare funds in the Labor Management Relations
Act of 1947 (Taft-Hartley Act).11
Employer’s Obligation To Bargain. Increased union
demands for the establishment of health and wel­
fare plans or for a voice in administering or modi­
fying existing employer plans have also brought to
a head the question of an employer’s obligation to
bargain collectively on such issues. The National
Labor Relations Board, in two recent cases,
ruled that employers must bargain on these
• Letter of April 19,1947, from J. A. Stephens, vice president, U. 8. Steel
Corp. of Delaware, to Philip Murray, president, United Steelworkers of
America, attached to basic agreement between the union and the corpora­
m The number of workers covered by health-benefit plans negotiated
between employers and unions, it is estimated, more than doubled from
1945 to early 1947.
H Public Law 101 (80th Cong., 1st sess.), section 302. This section of the
act specifies that health and welfare arrangements must provide for a trust
fund established for the sole benefit of employees, their families, and depend­
ents. The purposes for which payments may be made out of the trust are
limited. Except for plans established before Jan. 1, 1946, any plan must
be set out fully in writing and must provide for bipartisan administration,
with some arrangement for a neutral person to break dead locks. Payments
intended to be used for purchasing pensions or annuities for employees must
be made into a separate trust which cannot be used for any other purpose.

In the Inland Steel Co. case, the Board held on
April 12, 1948, that “under the Labor Manage­
ment Relations Act, employers must bargain with
their employees on pension or retirement plans
if the employees request it.” •12 The union’s re­
quest that the company bargain with it regarding
the application of, and amendments to, its exist­
ing pension plan was rejected by the company.
The union specifically objected to the company’s
action in automatically retiring employees at age
65. The company contended that the establish­
ment of its pension plan and the termination of
employment pursuant to the terms of the pension
plan were not proper subjects for collective
The substance of the NLRB ruling was that
unions have a right to bargain collectively on
rates of pay, wages, hours of work, or other con­
ditions of employment; that pensions are in­
cluded in the term “wages” ; and that the union’s
interest in pensions is therefore no different from
its interest in the wage structure; and that the
age terms of retirement fall within the category
of “conditions of employment.”
The Board likewise held on June 17, 1948, that
the Labor Management Relations Act required an
employer to bargain with the representatives of
his employees on any group health and accident
insurance program covering them.13* This de­
cision arose out of a complaint by the United
Steelworkers of America (CIO) that the W. W.
Cross and Co. had refused to bargain on the
union’s request for an insurance plan, but that
it had later unilaterally established the terms and
conditions of such a program. The Board ordered
the company “to refrain from taking any action
with respect to its group health and accident in­
surance program which affects any of the employ12 NLRB Release R-62, dated Apr. 13, 1948. The order to bargain was
conditioned upon the union’s compliance within 30 days with the filing and
affidavit requirements of the Labor Management Relations Act. The union
involved is the United Steelworkers of America (OIO).
is Shortly prior to this decision, a NLRB trial examiner (following the
reasoning in [the Inland Steel decision) ruled that group insurance was a
mandatory subject for collective bargaining when requested by the author­
ized bargaining agent. (Case No. 7-CA-37, May 11, 1948.) In this case
(on which the NLRB as a whole has not yet ruled), the General Motors
Corp. announced a new group insurance plan to be effective Feb. 1,
1948, after the union had requested the company to negotiate such a plan with
it. A temporary order, issued at the Board’s request, restrained the com­
pany from putting into effect its new insurance plan insofar as it covered
or affected employees represented by the United Auto Workers (CIO).



ees in the unit represented by the union, without tion * * * to bargain collectively with the
prior consultation with the union and, in addi- union upon request.” 14

Medical Service Plans Under Collective Bargaining
Unions, in negotiating health programs for
inclusion in agreements, have adopted two general
approaches. One is the cash benefit plan, under
which visits to doctors, hospitalization, maternity,
and surgical costs are provided through employer
pay-roll contributions (premium payments) to a
commercial or union-owned insurance carrier.15
The other is the medical service plan, under which
medical care is provided through a health center
supported by employer pay-roll contributions at
little or no cost to the workers. Although the
medical service plan covers relatively few workers
compared with the cash benefit type, the compre­
hensive medical care sought for low income groups
through such voluntary, private organizations
merits particular attention.
In the early part of 1947, representatives of the
Bureau of Labor Statistics and the United States
Public Health Service studied two comparable
medical service plans established through collec­
tive bargaining: The Labor Health Institute in
St. Louis and the Union Health Center in
Origins of the Plans

Both medical service plans were started in the
war years. Favorable business conditions, part of
operating expenditures offset through tax deduc­
tions, and wage stabilization regulations, which
made direct wage increases difficult to obtain,
stimulated the establishment of the health centers.
The Philadelphia Union Health Center was estab­
lished in March 1943, under the terms of an agree­
ment between the Philadelphia Waist and Dress
Manufacturers’ Association and the International
Ladies’ Garment Workers’ Union (AFL) acting
through the Philadelphia Joint Board Waist and
Dressmakers’ Union. This was the first ILGWU
plan to be established under collective bargaining,
the earlier centers having been maintained by the
H NLRB Case No. l-C-2676 in the matter of W. W. Cross and Co. and
United Steelworkers of America (CIO). As in the Inland Steel case, the
Board's order was conditioned upon the union's compliance with the filing
and affidavit requirements of the act.
i®Some plans provide for contributions to a union administered fund.

union through dues and assessments.16 Funds to
operate the new venture were obtained from
employers’ contributions of 3% percent,17beginning
in June 1942, and raised to 6 percent in 1946,
including unemployment benefits. A sick benefit
and vacation fund was also financed from these
Unlike the ILGWU in Philadelphia, the St.
Louis Board of the United Retail and Wholesale
Union (CIO) had no model health center pre­
viously set up by the union. The local union offi­
cials had been members of a consumer group health
association, organized by a physician who later
became the medical director of the Labor Health
Institute, and they were convinced that no “insur­
ance package” could meet the health needs of the
workers. The employers were not so easily con­
vinced, however. Although conferences on the
proposed medical service plan were held in 1944,
agreements covering the projected Labor Health
Institute were not obtained until the summer
and fall of 1945. For the first few months of its
existence, the new health center was conducted
from the office of its medical director, largely with
the aid of a loan later repaid to the union. By
November 1945, sufficient funds were accumulated
from the employer pay-roll contributions of 3%
percent19 to enable the Labor Health Institute
to move into its own quarters in a downtown office
Membership and Eligibility

The Philadelphia program serves about 15,000
workers, of whom 10,000 are in dressmaking and
5,000 in knit goods, cloaks, raincoats, department
stores, and south New Jersey dress firms. The
nondressmakers’ locals have their own agreements
16 The ILGWU founded the first union health center in New York in 1911.
For a description of this plan, see Monthly Labor Review, February 1947
(p. 201).
17 In 1945, average earnings in the Philadelphia ladies’ garment industry
were reported at $32 per week.
18 The break-down is 2 percent for health center, hospitalization, surgical
and sickness, 2 percent for vacations, and 2 percent for unemployment
insurance and administrative costs.
19 In 1946, average earnings in the companies covered by the St. Louis Labor
Health Institute were reported to be about $33 per week.



institute, control and management are functions
of the board of trustees, composed of 27 members,
of whom 18 are members of the union, 8 are em­
ployers, and 1 is a public member (currently a
university professor). As a practical matter, a
much smaller number of union and employer
representatives serve on the board. The union
members of the board are elected at the annual
meeting by the regular members of the institute
from candidates nominated by a committee of the
board of trustees. Employer representatives are
nominated and elected by the board of trustees as
a whole. Between the quarterly meetings of the
board, the executive committee of 9, of whom twothirds are union members elected by the board of
trustees from among its own number, supervises
the activities and carries out the policies of the St.
Louis Labor Health Institute. The board of
trustees is authorized to “ approve and enforce all
plans, projects and policies of the institute, hear
reports of semiannual audits of the financial
records of the institute, and have general super­
vision of the St. Louis Labor Health Institute.”
The health insurance fund of the Philadelphia
Waist and Dressmakers Joint Board is controlled
by a Health Insurance Fund Committee consisting
of two representatives (designated by the joint
board) from each of seven of the eight locals 23
comprising the joint board. Three additional
members of the committee hold office by virtue of
official positions on the joint board. The com­
mittee is divided into health center, sick benefit,
vacation fund, and appeals subcommittees.
Since the Philadelphia Health Insurance Fund
Committee is an offspring of the Dress and
Waistmakers’ Joint Board, no important decisions
are made without the concurrence of the parent
body. All funds are deposited in a bank account,
maintained in the name of the Health Insurance
Fund Committee, from which all payments are
made. The committee decides on the amount to
Policy-Making Bodies
be appropriated “ to any one or more” of its pur­
The committee elects three officers from
The St. Louis Labor Health Institute was or­ poses.
members including the director of the
ganized under the laws of the State of Missouri as Union Health
An affirmative vote of a
a nonprofit corporation. Under the bylaws of the majority of theCenter.
committee may alter or amend
the rules and regulations of the fund. Only dress
20 Members of nondressmaker locals report to their own locals first and then
are referred to the Union Health Center.
waistmakers’ locals are represented on the
21 Dependents may obtain technical services (X-ray, metabolism tests, etc.)

providing for health insurance funds. Under ex­
isting arrangements they are not direct partici­
pants in the Union Health Center, but reimburse
the health insurance fund of the Waist and Dress­
makers’ Joint Board on a fee-for-service basis for
those members who avail themselves of the center’s
In St. Louis the several locals of the Retail and
Wholesale Union bargain separately with indi­
vidual employers, most of whom have agreed to
the standard health benefits clause. In March
1947, 23 employers in wholesale establishments—
dry goods, hardware, food, candy—and 15 small
shoe-repair shops were parties to agreements
covering somewhat less than 3,000 workers (since
increased to 5,000). In addition, about 2,000
dependents of these workers were participating
in hospitalization benefits obtained through the
St. Louis Labor Health Institute for which they
themselves paid. A small number of special
members were drawn from the staffs of the union
and the institute; additional members were drawn
from a group health association, a cooperative
organization in existence for 10 years and now
contracting with the Labor Health Institute for
In Philadelphia, a worker becomes eligible after
6 months’ membership in the union, provided he
is not more than 13 weeks in arrears in dues,
regardless of the length of time his employer has
been contributing to the fund. No provision is
made for participation of outsiders.21
In St. Louis, employees of a company agreeing
to contribute to the health fund must wait 30
days before becoming eligible. Workers newly
hired by companies already under the medical
service plan must wait 60 days. Membership
under the St. Louis plan is open to all workers
in the bargaining unit, whether union members
or not.22

at reduced cost upon referral by a private physician.
22 Most of the agreements with contributing firms provide for a modified
union shop.

23 The agreements of one of the locals do not provide for contributions to the
Health Insurance Fund.


Philadelphia Health Insurance Fund Committee,
although, as previously indicated, outside locals
participate in the health center. Employers are
not represented on the administrative board nor
is there a separate advisory employer body.
Day-to-Day Administration

The organization of the St. Louis Labor Health
Institute for day-to-day operations places key
authority in the hands of the president of the
board of trustees and the medical director. The
former is also director of the joint board of the
union and has general supervision of the activ­
ities of the institute. The president makes
“regular reports and recommendations to the board
of trustees on plans, finances, and projects.”
Between meetings of the board, the president is
responsible to the executive committee. The
bylaws empower the president to recommend to
the board of trustees a medical director and a
business administrator. The medical director is
authorized to select professional personnel and
supervise the functioning of the medical program.
He also has “final authority on the extent of
medical services to be rendered any individual,”
and reports regularly to the board of trustees.
The business administrator engages all non­
professional personnel with the approval of the
president and reports directly to the president.
Although there are no physicians on the board
of trustees, two representatives of the medical
staff attend board meetings. A union and an
employer representative (members of the board)
attend the business conferences of the medical
staff. In this manner an exchange of views is
obtained between medical and lay persons.
At the Philadelphia Union Health Center, the
administrative director reports monthly to the
health center and sick benefit committees, inas­
much as he is responsible for the day-to-day
operations of these programs. (The vacation and
fair-income funds are handled in the office of the
joint board.) One step removed in authority
from him is the medical director who is selected
by the Health Insurance Fund Committee; he has
immediate responsibility for administration of the
medical service plan. On matters of appoint­
ments to the professional staff, adding medical
departments or equipment, the medical director
makes his recommendations to the lay director,


who in turn goes before the Health Insurance
Fund Committee for final authorization. Unlike
the St. Louis organization, in which the medical
director reports directly to the board of trustees,
greater authority is placed with the lay director
under the Philadelphia plan. Whatever the for
mal division of responsibility, effective day-to-day
administration of these two plans results from
teamwork between lay and medical administrators.
Medical Staff

The medical staff of the St. Louis Labor Health
Institute is an autonomous unit under the super­
vision of the medical director, assisted by an
associate medical director. Staff appointments
are initiated by the medical director, subject to
the approval of the 23 physicians and surgeons
employed by the institute. The medical men
select their own chief of staff, and committees on
facilities, equipment, and make recommenda­
tions on salaries. Most of the staff physicians are
specialists in their fields, as evidenced by the fact
that all, except the general practitioners and
dentists, are diplomates of specialty boards. All
staff physicians are employed on a part-time basis
at the minimum rate of $5 an hour, this employ­
ment supplementing their private practices. The
caliber of the institute’s medical staff is admit­
tedly of high quality, as attested to by the staff
members’ standing in the medical profession in
St. Louis.
In Philadelphia, the health center’s medical
staff is selected by the medical director, subject
to the formal approval of the lay director and
the Health Insurance Fund Committee. A staff
of 22 part-time physicians and 3 consultants serve
the Philadelphia garment workers. Staff mem­
bers average 6 hours a week and are paid at the
minimum rate of $6 an hour. Although there are
no staff committees, it is planned to form a med­
ical committee on scientific matters to confer on
problems affecting the center. The medical di­
rector also intends to have the professional staff
choose its own members in the future.
Group Practice

Both centers endeavor to conduct group practice
under which the associated specialists and general
practitioners get the benefit of each other’s opinions



through staff consultations. It is pointed out
that under a prepayment group practice plan a
patient may be given tests, X-rays, or further
examinations that may be required, without delay
or additional costs. Such pooling of knowledge
and skills, as well as equipment, it is claimed, makes
possible complete utilization of all advances in
medical science at a greatly reduced cost. In
practice, it has not always been possible to realize
fully the theoretical advantages of group medicine
at these health centers. A number of the St.
Louis physicians interviewed expressed the opinion
that when the staff is composed of specialists with
few general practitioners, there is a tendency to
withhold criticism of one another's work because
of the aura of infallibility which surrounds speciali­
zation. In Philadelphia, the extent of group prac­
tice is limited by the scope of the plan which con­
fines medical care to diagnosis and therapy of
ambulatory cases on referral by private physicians.
Most of the doctors interviewed joined the health
center for reasons other than their interest in the
labor movement. A reason frequently given for
joining the staffs of these organizations was the
opportunity afforded thereby to supplement
private practice. In the absence of medical service
plans, the same doctors would be treating some of
the same patients at a clinic or hospital without
remuneration. From a professional standpoint,
all are interested in the ready availability of
technical services and of consultation with fellow
physicians under group practice.

in Philadelphia the worker receives complete
ambulatory care, while in New York medical
attention is limited to an amount equivalent to
$25 a year per member. In part, too, the differ­
ence in approach between the two plans is attri­
butable to the St. Louis union leaders' experience
in a consumer group health association.
Union officials and the medical director of the
St. Louis Institute were determined from the start
to obtain for the members the best and most
complete medical care available, even though it
meant a large initial investment for facilities,
equipment, and staff. In their view, it was
extremely important to leave no gaps in the
development of a complete medical-care program
that might defeat the fundamental aim of safe­
guarding the workers' health. A general physical
check-up alone was inadequate, if not followed up
by the necessary treatments, however elaborate
they might be. It was also considered essential
to the success of the program that the members
understand the importance of preventive as well
as curative measures and the need for visting the
Labor Health Institute at regular intervals.
The fact that medical care problems are often
linked with sociological conditions was recognized
by adding a psychiatrist and a medical social
worker to the professional staff.
Under the St. Louis plan, a worker is entitled
to the following medical care without cost to
himself: Diagnosis and treatment by general
practitioner and specialist (such as eye, ear, nose
and throat, skin, internal medicine, gynecology,
obstetrics, and pediatrics); home and hospital
Medical Services Provided
calls by staff physicians; technical services (such
The two health centers differ in extent of medical as X-ray, fluoroscope, physiotherapy, and lab­
services provided the membership. The St. Louis oratory tests); regular physical examinations and
Labor Health Institute offers the workers complete routine dental care; and major and minor surgery.
medical care described by its medical director Hospitalization costs are covered by Labor Health
as “portal to portal medicine." The Philadelphia Institute participation in the local Blue Cross
Union Health Center restricts its services to Plan. (In general, provisions are 60 days per
treatment of ambulatory cases, i. e., patients who contract year in member hospital at no cost for
can be treated at the center. Doctors' visits to the room and specified extras; additional days at
home are not included, while hospitalization and discount.) Extra charges, not covered by Blue
surgical fees are extended only on a limited cash Cross, are paid by the institute. Pharmaceutical
benefit basis. The difference in approach is and surgical appliances are provided at reduced
explained largely by the fact that no established costs. The institute has purchased an apart­
pattern was set by the Retail and Wholesale ment house to be converted to a hospital as an
Union, whereas the Philadelphia Dress Joint addition to the medical center.
Board followed in the footsteps of its predecessor—
The Philadelphia Union Health Center operates
the Union Health Center in New York. However, its limited medical service plan with modern


medical facilities and equipment. In addition
to the standard departments, orthopedics, minor
surgery, dermatology, and endocrinology are
included. Technical departments cover X-ray,
electrocardiogram, basal metabolism, physi­
otherapy, and clinical laboratory. Ambulatory
care is furnished the worker without cost, except
for pharmaceuticals and appliances provided at
reduced prices. Dependents of members are not
treated at the center, but for a reduced fee they
may obtain services of the technical departments
on referral by private physicians. If the required
medical specialty is not available at the center,
the patient is referred to a qualified doctor whose
fees are paid by the Union Health Center.
Membership in the St. Louis Labor Health
Institute is open to families of regular members
on a dues-paying basis ($3 a year for adults, $1 a
year for each child). Families may obtain medical
services on a reduced fee-for-service basis. In
October 1947, a new family plan was introduced
under which an employee, a spouse, and children
under 18 become eligible for full medical services
and hospitalization, provided the employer agrees
to remit 5 percent of the employees' gross pay.
The policy under the Philadelphia plan is to
encourage members to obtain an annual physical
examination at the center but to consult their own
doctor on other occasions if they can afford to do
so. When treatment or special diagnosis are re­
quired, the private doctor usually refers the mem­
ber to the center which uses its facilities as long
as the patient can be treated as an ambulatory
case. The record of diagnosis and treatment is
made available to the referring physician. This
procedure is followed to maintain the traditional
relationship between the referring physician and a
diagnostic center.
Should the worker require surgery, the Phila­
delphia Health Insurance Fund allows $25 toward
defraying the cost of a major operation—as defined
by the medical director. Hospitalization benefits
are $2 a day up to and including 12 days of hospi­
talization in any benefit year.24 In addition, sick
benefits are payable at the rate of $10 a week for
a maximum of 10 weeks in any one benefit year
after a 9-day waiting period, whether or not hospi-*
** It is proposed to increase the surgery allowance to $50, and the hospitali­
zation benefits to $3 a day up to 31 days.


talization is required.25 Before a worker may
receive hospitalization or sick benefits, a physician
must certify the existence of a disability. If the
doctors engaged in this work are not on the regular
staff of the Union Health Center, they are com­
pensated for each visit.
In general, these medical service plans exclude
care of injuries or diseases incurred in the course
of employment which are provided for under com­
pensation laws,26 and treatment in a sanitarium
or public institution. Tuberculosis and alcohol­
ism are not treated after diagnosis has been made.27
Under the St. Louis plan, newly hired workers who
become members subsequent to the company's
date of entry in the institute are excluded for
treatment of pre-existing chronic conditions.
However, no exception is made in the initial group
which represents 90 percent of the members.
Worker Utilization of Services

Both health centers faced a serious problem at
the start in obtaining adequate participation in
the medical service plans. Workers' failure to
utilize the services was attributed to the inertia of
accustomed ways of obtaining medical care, i. e.,
calling upon the family doctor only when abso­
lutely necessary. It took time for workers to
understand what was available to them free of
charge. Fear that disabling conditions might
somehow be revealed to employers or affect their
jobs also was a factor in retarding utilization.
In St. Louis, the Retail and Wholesale Union
attempts to bring the advantages of the Labor
Health Institute to the attention of its members
through health education pamphlets, a health col­
umn in the union newspaper, and forums under
the auspices of health and safety shop councils at
work places. To a limited extent, the institute
has provided in-plant medical services, such as
mass inoculation against influenza. In some in­
stances, employers use the institute for pre-hiring
physical examinations. It is planned eventually
Although the St. Louis Medical Service Plan does not provide for cash
sick benefit allowances, most of the agreements of the Retail and Wholesale
Union with member companies of the Labor Health Institute cover sick
leave to the extent of 10, 20, 30, or 7,14, 21 days a year at the regular rate of
pay for continuous service ranging from 1 to 10 years. Workers may, if they
wish, utilize services of an LHI physician to certify disabling illness.
20 However, the Philadelphia ILG plan includes care of industrial injuries
and illnesses.
27 The ILG has long made provision for tuberculosis care in the form of
cash benefits ($250) or sanitarium care.



to widen this phase of medical service so that the
Labor Health Institute will staff the medical de­
partments of contributing employers. In an effort
to expand its activities, the Retail and Wholesale
Union has interested a number of AFL and CIO
unions in St. Louis in the possible use of the insti­
tuted facilities if they succeed in negotiating med­
ical service plans.28
The Philadelphia Union Health Center does not
press health education; nor does it plan to bring
in other unions or embark upon industrial med­
icine. Officials of the center have not undertaken
an extended program because of fear that facilities
would soon become overtaxed.
Union Approach to the Plans

Since employers’ contributions to health funds
are regarded by the unions as a substitute for a
wage increase, control of the funds is considered
to be of primary concern to the unions and their
memberships. To assure adherence to the objec­
tives of the program and to protect the workers’
interest as consumer of the medical services which
it affords, union officials of both the Labor Health
Institute and the Union Health Center contend
that medical service plans must be union-adminis­
tered as to both basic policy-making functions and
day-to-day operations.29 Their view recognizes
the wide latitude to be given the medical adminis­
trator in professional matters. However, it does
not conceive of the medical administrator as co­
equal in ultimate authority but rather as an
employee of the medical center.
Union suspicion of bipartite or tripartite (includ­
ing medical representation) control is explained by
the fact that some employers actively opposed the
medical service plan and accepted it only after
strike action. Since the program entails an added
cost to the employer (partly discounted by income
tax deduction), it is vulnerable to attack when
business declines. Union officials are of the
28 For the calendar year 1946, the Union Health Center reported that 1,600
separate individuals utilized 36,660 services (a service is defined as a visit to
any department or technical unit). About 100 individuals a day were
treated; referral cases averaged from 70 to 80 a month. For the period July
1945-December 1946, the Labor Health Institute reported that 1,700 separate
individuals utilized 20,300 services in the medical center, and about 2,400
services outside the medical center. Complete statistics on cost of operation
are not available.
2®Under the Labor Management Relations Act of 1947, health-welfare
plans in effect prior to Jan. 1, 1946, are not required to provide for equal
representation in the administration of the plan.

opinion that minority employer representation on
the governing body is desirable. This enables
employers to understand more clearly what the
problems of a medical service plan are and makes
for more responsible criticism. Opposition of
organized medicine to prepayment group medical
care plans accounts to some extent for the disin­
clination of unions to agree to medical representa­
tion on the governing body. Finally, union ad­
ministered medical service programs add consid­
erably to the prestige of unions; the member can­
not come away without the impression that these
benefits are available because of the unions’
Given a union administered medical service
plan, the question facing unions is how compre­
hensive to make it. If the health center is one of
a number of benefits, it must compete for available
funds. When the health center is the recipient
of the entire contribution, it can develop a compre­
hensive medical care program. Clearly, too,
multiple cash benefits, however limited each may
be, necessarily curtail the scope of medical services
unless financial contributions and facilities are
The medical director may be generally expected
to demand increased and improved services.
Union officials and the lay director are usually
persuaded to expand, with an eye to future
curtailment when financial reserves contract.
Employer Approach to the Plans

Employer attitudes toward medical service
plans included in the survey may be summarized
as acceptance on the part of some, “wait and see”
on the part of others, and opposition by a third
group. In the ladies’ garment industry where
benefit plans have become standard collective­
bargaining provisions, employer acceptance is
based on the principle of industry responsibility
for the health and welfare of its workers. In
St. Louis, some employers were of the opinion
that the medical service plan was producing a
favorable effect upon worker efficiency and
morale, but others were skeptical of its advantages
and preferred to make up their minds at a later
date. Employers who opposed the St. Louis plan
contended that insurance would be cheaper,
particularly since workers were not utilizing the


facilities of the plan, and that employers were
being denied equal participation in the administra­
tion and control of the Labor Health Institute.


In their opinion, the cost of operating the institute
would be the first object of employer attack in
the event of a business recession.

Employee-Benefit Program of Consolidated Edison80
Medical care comprises the core of the employeebenefit plan of the Consolidated Edison Co. of
New York, Inc. This plan, which was initiated
57 years ago, is sponsored in part by the employer
and in part by the employer and the employees
jointly. In recent years, it has come within the
scope of the collective-bargaining agreement.
Under this company’s health and medical care
program, more services are made available at a
lower cost than under most similar programs.
Sick pay, weekly cash sick benefits, group life
insurance, and retirement benefits are also pro­
vided under the employee-benefit plan.
Coverage for complete medical care and for
cash disability benefits is effected through mem­
bership in the Sick Benefit Fund of the Consoli­
dated Edison Employees’ Mutual Aid Society,
Inc., which is open to regular employees paid on a
weekly or biweekly basis. Nonmember employees
may participate in any of the services which are
available at the six company climes, generally
referred to as Medical Bureaus.
Dining 1947, operation of the company’s med­
ical department cost approximately $1,100,000.
The company bore 65 percent of the cost of the
cash disability benefits and the medical care pro­
gram. The difference was paid by the employees,
through their contributions to the mutual aid sick
benefit fund. The group life insurance is also
financed jointly by the employees and the com­
pany. The retirement system is financed entirely
by the company.
The Consolidated Edison Co., which furnishes
electric, gas, and steam service to New York City
90 Based on interviews with company and union representatives and
officials of the employees* mutual aid society, and a visit to the main clinic
of the company.
The Bureau of Labor Statistics, in cooperation with the Social Security
Administration and the Public Health Service, has been studying employeebenefit plans for workers under collective-bargaining agreements. Two
approaches have been used: (1) a study of the agreements to determine the
extent and the characteristics of such plans; and (2) a field survey to analyze
the operation and experience of selected plans. The operation of two col­
lectively bargained plans was described in Medical Service Plans Under
Collective Bargaining, in the January 1948 Monthly Labor Review and is
reprinted in this bulletin (p. 7-13).

and parts of Westchester County, N. Y., employs
over 29,000 workers, about 10 percent of whom
are women. The average age of the employee is
44. The average length of service for all em­
ployees is 18 years; for women employees, it is
about 16 years. The average pay (including
overtime) for all weekly employees amounted to
$61.21 a week, for the year 1947.
The company has engaged in collective bar­
gaining with the recognized representatives of its
employees since 1937. Currently, it has an
agreement with the Utility Workers’ Union of
America (CIO). About 26,000 workers are repre­
sented in the bargaining unit. This group cor­
responds to the number who are eligible for mem­
bership in the employees’ mutual aid society.
The present collective agreement, like all those
previously in force, provides that “for the dura­
tion of this contract but without commitment or
liability thereafter,” the company “will continue
in force substantially its present system and pro­
visions for the welfare of employees, including
group insurance, medical service, sickness allow­
ances, mutual aid benefits.” Apparently no
conflict has ever arisen in connection with this
commitment. The company states that the em­
ployees consider the benefits an integral part of
the terms and conditions of employment.
The Mutual Aid Society

Virtually 100 percent of the employees eligible
participate in the company’s benefit program
through the medium of the employees’ mutual
aid society, which was organized in 1891. At
the end of 1947, membership in the society totaled
Benefit membership in the society is open to all
regular employees paid on a weekly or semi­
monthly basis, who have had 3 months of service.
Supervisory and executive employees are ex­



Membership in the society’s sick benefit fund
entitles employees to full participation in the
medical care program and to sick benefit pay­
ments in the event that absence occasioned by
sickness or nonoccupational accident exceeds the
period during which the company provides sick
pay allowance (equivalent to full pay).
The mutual aid society is administered by an
elected board of managers of 15 members, all of
whom are members of the society and participate
in its benefit programs. Seven board members are
selected by the employees each year for 2-year
terms, and one member is appointed by the com­
pany on a full-time basis for a 1-year term, to act
as liaison agent between it and the society. The
board of managers elects its own officers. The
administrative expenses of the society, which has
. a staff of 10, are paid by the company.
The board of managers supervises and admin­
isters the society’s sick benefit fund. It makes
the final decisions on all matters pertaining to the
fund, except those concerning investment of the
society’s funds which are subject to the company’s
approval. The company has the right to audit the
society’s books and records at reasonable intervals.
Employees pay approximately 1 cent for each
$1.80 of their base pay, as dues to the society’s
sick benefit fund. Employees in salary brackets
over $57 a week make proportionately larger con­
tributions. The company matches the employees’
Any balance that is left, after payments for
sick benefits and transfers to the sick benefit
reserve fund have been made, is contributed by
the society each month to the company to assist
in financing the medical care program.
Cash Benefits. An employee who is disabled as a
result of a non-work-connected illness or injury
receives sick pay from two sources—the company
and the society’s sick benefit fund (provided, of
course, he is a member of such fund).
Employees on sick leave receive company sick
allowances at the rate of 1 week’s pay for each
year of service. Members of the society who are
still sick after company allowances have been
fully paid then receive payments from the
society’s sick benefit fund. These amount to
approximately 80 percent of their basic regular
weekly salary for a period not to exceed 26 weeks
in any 52 consecutive weeks, or 26 weeks in cases

of chronic illness, irrespective of its duration or
its recurrence.81
Cash sickness benefits are paid when employees
are unable to work because of sickness, disability,
or nonoccupational injury, except when these are
due to use of intoxicants or drugs or to pregnancy.
Benefits are not paid while an employee is receiv­
ing workmen’s compensation.32
There is no waiting period for company sick
allowances. After 2 days, medical certification
is required, either by an employee’s personal
physician or by a company doctor.
Sicknesses of 4 consecutive weeks are checked
for diagnosis and probable length of illness by the
company’s medical director and the attending
Toward the end of the allowed time for com­
pany sick pay allowances, the company personnel
office forwards to the society a memorandum which
includes the doctor’s prognosis of time necessary
for recovery, approved by the medical director.
Sick benefits are then allowed by the society.
Sickness benefits, in all cases, are disbursed weekly
through the company’s medical and pay-roll
The mutual aid society had a total income of
$913,206 in 1947, provided in equal parts by the
members and the company. The society paid
out $163,000 in cash sickness benefit payments
during 1947.
Company sick allowances (at the rate of 1
week’s pay for every year of service) amounted
to about $1,864,000 in 1947, and accounted for
about 92 percent of the cash disability benefits
received by company employees. The fact that
the great majority of days of disability are com­
pensated for by the company is largely due to the
high average length of service of its employees.
As a result, cash disability payments by the
society are required only in cases of prolonged
illness or for short-service employees.
Croup Health and Medical Service Program.33 Gen­
eral medical service in the office, clinic, home, and
m Employees with chronic illnesses who have exhausted their benefit pay­
ments are still eligible for medical care.
m Workmen’s compensation is not part of the society’s plan, but such cases
are cared for by the company’s medical staff. The company pays for such
compensation on the basis of a full week’s pay.
3* in addition to the medical care program, the usual preventive services of
an industrial hygiene program are provided by the company (except for
periodic health examinations, which are voluntary with the employees). All
prospective employees receive a pre-placement medical examination.


hospital is provided by the society to members of
the sick benefit fund. To obtain these benefits,
company doctors or company owned or sponsored
facilities must be used. Medical services are avail­
able without cost when obtained according to the
prescribed rules and regulations. When necessary,
the company’s specialists are available for con­
sultation by a member’s family physician, at no
charge to the member.
The medical plan includes: Medical care for
any disability, whether work-connected or not, at
a company medical bureau or at a district doctor’s
office; treatment for accident or illness at home by
a district doctor; diagnosis and treatment by
specialists (in all cases, members of their respective
specialty boards); dental care; and eye examina­
tions and prescriptions for glasses. The following
services are available whether prescribed by a
company or a family doctor: Medicines (pre­
scriptions) ; X-ray and laboratory services; physio­
therapy; check-up after illness to determine fitness
for work; hospitalization in an authorized hospital
ward, including surgical and medical care; immuni­
zation against certain of the preventable com­
municable diseases; and treatment for allergies.
In individual cases, the mutual aid society has
extended the benefits of the medical service
department to include psychiatry, the employee
paying a portion of the cost. Tuberculosis and
maternity cases are not covered.
In cooperation with the company’s medical
department and the Blood Bank of Queens
County, Inc. (a nonprofit organization), the mutual
aid society has recently organized a blood bank for
its members and their immediate families (wives
and children). Without any cash outlay, the
employee may obtain blood of the right type and
Kh factor from the blood bank. Employees are
asked to volunteer as blood donors.
Medical care is under the supervision of the
company’s medical department, which includes
the full-time medical director and his 2 full-time
assistants, 33 physicians and specialists, 17 nurses,
9 pharmacists, 33 district doctors, 44 district
dentists, 1 dispensary dentist, 1 dental hygienist,
and 2 physiotherapists. In addition, 22 specialists
are on call as the need for their services arises.
The company’s 6 medical bureaus are located
at the main office and at its key plants. During
the bureau’s office hours—8:30 a. m. to 5:15 p. m.
Monday through Friday—employees may receive


preventive treatment, diagnostic aid, check-ups
after illness, routine physical examinations, and
treatment during illness. The staffs consist of
part-time, salaried doctors, who may engage in
private practice when not on duty. Visits to the
bureaus are by appointment. An employee may
consult the doctor of his choice. If he requires
care while on the job, the appointment must be
made through his immediate supervisor.
A district doctor is a private physician paid by
the company for home and office calls, on a fee-forservice basis—$2 for office visits and $3 for home
visits. He is paid $4 for all original calls for his
services received on Saturdays, Sundays, and
holidays. Each district doctor has his own
territory. However, an employee entitled to med­
ical service may choose any doctor on the staff.
Compliance with his choice depends on the availa­
bility of the doctor selected.
A member may obtain the services of a district
doctor by calling his supervisor between the hours
of 8:30 a. m. and 5:15 p. m., Monday through
Friday. The call is relayed to the medical depart­
ment, which acts as the control office. If services
are required on Saturday or Sunday, the member
calls the company’s main office between the hours
indicated above. After hours, and in an emer­
gency, he may obtain any physician’s services, pay
for the visit himself, and request a district doctor
to take over his case the next day. District
doctors are not authorized to accept direct re­
quests for home calls unless members pay for the
At 23 affiliated hospitals, ward accommodation,
including physician’s or surgeon’s care, is fur­
nished without charge to mutual aid society sick
benefit members. The member must, however,
pay for special services, such as X-ray treatments,
private-duty nurse’s care, special medications,
and appliances, and for hospitalization for chronic
diseases beyond a maximum limit required for
diagnosis. Arrangements for hospitalization must
be made through the medical bureau whether the
patient is under the care of the medical department
or a private physician. An employee who chooses
and pays for private or semiprivate room care
instead of ward care is reimbursed at the rate of
$4 a day.
Members who, in order to obtain hospital cover­
age for their dependents, also belong to the Asso­
ciated Hospital Service of New York (Blue Cross



plan) may choose for themselves either the so­
ciety’s or the Blue Cross plan of hospitalization,
but they cannot be granted full benefits by both
for the same service. They can be reimbursed by
the mutual aid society for the period in excess of
the hospitalization coverage under the Blue Cross
plan, at a rate not to exceed $4 a day.34
Ambulance service is provided only in the
boroughs of Manhattan, Bronx, Brooklyn, and
Queens, and must be authorized by a medical
bureau or by the district doctor.
Prescriptions ordered by either a company or a
family physician are filled without charge at any
of the company’s five pharmacies within office
hours. Proprietary preparations and patent med­
icines are not supplied by the company’s phar­
Emergency dental care, which includes extrac­
tions, prophylactic treatment, and denture work,
is provided at the company’s main office medical
bureau. For other dental care, company dentists
are available at their private offices; appoint­
ments—usually after working hours—are ar­
ranged through the medical department.
The dental services provided include prophy­
lactic treatment, fillings (except gold), extractions
(except impacted teeth or those requiring sur­
gery), X-rays, and complete or partial dentures
(to members with 2 years’ standing in the mutual
aid society). Special types of work, such as
bridges, ordodentures, and root canal work are
not provided.
Laboratory tests, such as fluoroscopic exami­
nation, cardiograms, and metabolism tests, are
provided at the main office medical bureau.
X-rays and other laboratory services, provided
entirely by private practitioners and paid by the
company on a fee-for-service basis, may be ob­
tained only with the approval of the company
doctor. Requests for such services by a private
physician must be approved by the medical
Care at a convalescent home at the cost of $1
a day can be arranged for members through the
medical department and the Green Mountain
Lake Foundation. The foundation was estab­
84 It is estimated that 60 percent of the society's members carry hospital
insurance for their dependents. The worker cannot purchase this insurance
unless he is also covered by the policy. The society is considering affiliating
with the Health Insurance Plan of New York (HIP), which would provide
coverage for dependents and eliminate duplication of coverage for its

lished by the company late in 1945 to assist sick
benefit members of the mutual aid society to pay
the cost of certain medical services not included
in the schedules of the society and the medical
department. This assistance is limited to mem­
bers considered unable to meet the cost of such
services without hardship. The foundation is a
nonprofit membership corporation. Its 18 mem­
bers—representatives of the company and the
mutual aid society—serve as trustees to direct
and oversee its operation and establish its policies.
Union and Employee Participation. The union
does not actively participate in direction of the
medical care program, the administration of which
is entrusted to the medical department of the
Although the employees through the mutual
aid society contribute over a third to the cost of
the medical department, there is no joint labormanagement supervision of the health program.
Employees, as members of the mutual aid society,
have a definite voice in its operation, however,
through the medical service committee, chosen
from the society’s board of managers. (Present
composition of the medical service committee of
3 includes 1 employee who is a union member and
another who is a chief steward of the union.)
The committee presents the grievances, problems,
or suggestions of the society’s members, concern­
ing medical services, to the medical director for
review and determination. The medical director’s
decision is final; in case of disagreement, the con­
tract between the society and the company permits
either party to withdraw on 90 days’ notice.
The union has no officially designated repre­
sentatives on the board of managers. However,
union officials are asked to suggest competent
employees as nominees for the board and to com­
ment on the society’s nomination slate before its
submission to the membership for vote.
The society gives consideration to all union
requests and consults with union officials on those
matters which in any way concern the welfare of
the employees. For publicity purposes, the soci­
ety uses both the official union paper and the
company’s plant organ.
No determination has been made, the company
reports, of whether a complaint regarding its
benefit program is within the scope of the union
grievance procedure, although the union maintains


that any complaint over the services or activities
of the medical department or any other aspect of
the company’s welfare program can be processed
as a grievance through the regular grievance pro­
cedure. The union justifies its stand on the
ground that it has the right to negotiate with
management whenever the employees’ welfare is
affected adversely.
Union officials concluded: “You can’t get better
medical service as far as group medicine is con­
cerned.” Nevertheless, they and the mutual aid
society representatives find certain gaps in the
program, such as lack of coverage for dependents,
night home service by district doctors, and ob­
stetrical care.
Company representatives point out that the
company can justify its expenditures for its em­
ployees’ medical care on the grounds of safety
and morale, and that the State public utilities
commission considers these expenditures properly
absorbable in the company’s rate (price) structure.
The company maintains, however, that it cannot
justify any expenditure for employees’ dependents.
District doctor service on a 24-hour basis has
been requested by some employees. The exclu­
sion of night calls is based largely on the company’s
fear that this service would be abused if provided.
This fear, many workers feel, is unjustified, since
availability of care, by day, without expense,
would limit the volume of night calls to a mini­
mum. Most workers accept the principle of day
doctor service, the company reports, and, since it
is the employee, and not his dependents, who is
served, the absence of night calls is not serious.
The failure to include maternity services con­
stitutes another gap in the medical program, since
10 percent of the employees are women and such
services represent a major part of their medical
needs. The exclusion of such services appears to
be an extension of the company’s policy against
the continued employment of mothers.
Group Life Insurance

The constitution of the mutual aid society pro­
vides that the board of managers shall procure
group life insurance “through the company or
otherwise.” The company has maintained a
group life insurance plan since 1912, underwritten
by a commercial insurance carrier. All regular
employees are eligible to participate.


Coverage under the plan is provided in an
amount equal to approximately one and one-third
times the employee’s basic annual salary. For
this protection the employee pays $2.60 a year
for the first thousand dollars of coverage and $7.20
a year for each additional thousand. Employee
premium payments, which are made through
regular deductions from earnings, represent ap­
proximately one-third of the total premium costs.
The company pays the remainder.
Members totally and permanently disabled
before the age of 60 receive the face value of the
insurance, and interest, payable in 60 equal
monthly installments, instead of payment at
death to their beneficiaries.
The company has an insurance department,
which assumes responsibility for paying premiums,
filing reports, and other contacts with the com­
mercial insurance carrier. Claims and other de­
tails of the plan are administered by the insurance
carrier. Details as to the insurance of new em­
ployees and the filing of claims for death or dis­
ability benefits are handled by the company’s
personnel department.
Retirement Plan

In addition to its health and insurance programs,
the company maintains a voluntary noncontribu­
tory pension plan, which is administered by the
personnel department. Although the company in
its agreement with the union has stated its inten­
tion to continue the plan for the term of the agree­
ment, continuance beyond that period is at the
company’s discretion. This has caused some con­
cern on the part of the union and its members.
However, historically, the plan has had continuity.
The union favors a contractual plan, and as one
step to setting the plan on a contractual basis, it
has sponsored bills in the New York State Legis­
lature to permit gas or electric corporations to
allocate to operating expenses contributions to a
contractual pension retirement plan operated and
maintained for employees, and to any reserves
necessary therefor.
Without referring to the bill, the Edison Co.
took the position that a substantial reserve fund
would have to be set up if a contractual pension
plan were instituted. The company’s liability
for past service is very great, because of the
present high average age (44) and average length



of service (18 years) of its employees, and the
very low quit rate. A major difficulty in financing
the suggested contractual plan would presumably
be that the reserve fund for past service could not
be chargeable to operating expenses but would
have to come out of surplus; therefore, the stock­
holders would have to approve such a fund. Com­
pany spokesmen also indicated that a modification
or cancellation of the existing plan would not
affect those employees receiving pensions.
Employees are eligible for benefits under the
plan when they are retired for age or for physical
disability, and, at the discretion of the company
board of directors, for other reasons. Retirement
is compulsory at age 65 for men and at age 60 for
women. Disability retirement may be made
effective at any age.
Pension benefits under the plan are payable in
the form of either a retirement annuity which
affords the pensioner an assured monthly income
for the rest of his life, or a separation allowance
which provides income for a limited number of

months or weeks, determined by the total amount
of the allowance payable in the particular case.
To be eligible for an annuity, the employee’s
service and age must total 75 or more. Com­
binations of service and age which total less than
75 warrant the payment of a separation allowance.
Benefits average 2 percent of average basic
salary per year of service, and are determined by
the following factors: (1) Age at retirement and
length of continuous service (limited to the last
30 years prior to retirement), which determine the
benefit rate, and (2) average basic salary. The
maximum total amount which any employee can
receive under the pension plan is $15,000 annually.
Government old-age benefits are deducted from
pensions payable under the plan. Pension pay­
ments cease upon the death of the retired em­
The pension plan is financed, not as insurance,
but out of operating expenses, on a year-to-year
basis. During 1947, the company paid out
$3,883,909 in pension payments.

Appendix I.—Sample Employee-Benefit Clauses in Collective Bargaining Agreements
Continuation of Existing Group Insurance Benefits
The company has now in effect certain insurance cover­
age and hospitalization benefits. It is agreed that such
benefits shall continue for the life of this agreement.
[Blockson Chemical Co.—Joliet, 111.—International Chem­
ical Workers Union (AFL), Local No. 4. Effective date
of agreement, July 1, 1947.]

Employer-Financed Group Insurance Hans

Details oj Benefits Not Listed
The company also agrees to stand all premium cost on
the health, accident, and hospitalization insurance plan in
effect as of August 31, 1946, and insured with th e ----------- Life Insurance Co. as of that date. [Brockway
Glass Co., Inc.—Brockway, Pa.—Glass Bottle Blowers
Association of the United States and Canada (AFL),
Local No. 110. Effective date of agreement, June 1,1947.]

Blue Cross Hospitalization Plan
It is agreed that the existing straight hospitalization plan
(Blue Cross), which now covers some of the employees
shall be immediately extended to cover all of the employees
to whom this contract is applicable, and it is further
agreed that the entire cost of said straight hospitalization
plan covering all of said employees shall be borne entirely
by the company. [Elmhurst Rubber Co., Inc.—Elm­
hurst, Long Island, N. Y.—United Rubber, Cork, Lino­
leum and Plastic Workers of America (CIO), Local No.
153. Effective date of agreement, May 1, 1948.]

Multiple Benefits Listed
The management shall institute a system of group
insurance which it shall maintain at its sole expense dur­
ing the term of this agreement and any extension and
renewal thereof, providing all of the following benefits for
all of the employees covered by this agreement.
(1) Weekly Accident and Sickness Benefits—Weekly ben­
efits in cases of disability due to accident or sickness not
covered by the applicable Workmen’s Compensation Law
shall be $14 per week for a period of 13 weeks beginning
with the first day of disability due to accident and the
eighth day of disability due to sickness for each separate
(2) Hospital Expense Benefits—Benefits shall be paid for
at the rate of $4 per day beginning on the first day of ad­
mittance into the hospital and continuing up to a period
as designated in the insurance contract for each separate
admittance to the hospital. This will also cover further
benefits as outlined in the insurance contract.

(3) Surgical and Operation Benefits—Surgical benefits
will be paid up to $125 according to the standard $125
surgical schedule as indicated by the insurance company.
[Goodall-Sanford, Inc.—Sanford, Maine—United Tex­
tile Workers of America (AFL), Local No. 1802. Effective
date of agreement, August 1, 1947.]

Detailed Multiple-Benefit Clause; Coverage for De­
pendents at Employee’s Expense Optional With,
A. The company agrees to maintain in force during the
life of this agreement the following insurance benefits (all
as more fully provided in the group policy or policies) for
each employee of the company covered by this agreement:
(1) Life insurance of $1,000, payable on death, plus an
additional $1,000 if death is due to accidental means.
(2) Permanent disability benefits as set forth in the
group insurance policy.
(3) Weekly sickness and accident benefits computed on
the basis of the employee’s basic weekly earnings, as
Basic weekly earnings

Weekly benefits

Less than $30_____________________________$15
$30 but less than $36____________________ 18
$36 but less than $42____________________ 21
$42 but less than $48____________________ 24
$48 but less than $54____________________ 27
$54 and over____________________________ 30
Such benefits shall begin, in the case of sickness, on
the eighth day of disability, and in the case of nonoccupational accident, on the first day of disability, and shall
continue for a maximum of twenty-six (26) weeks for
any one disability, provided that no employee over 60
shall be entitled to such benefits for more than one
twenty-six (26) week disability in any one year. “Basic
weekly earnings” shall mean the employee’s hourly rate
at the time of the disability multiplied by the standard
workweek prevailing in the company.
(4) Medical expense benefits beginning with the first
medical attendance in the case of accident and beginning
with the fourth medical attendance in the case of sick­
ness in the amount of three dollars ($3) for each doctor’s
visit at the home or hospital, and two dollars ($2) for
medical attendance other than at home or hospital,
limited, however, to three medical attendance in each
period of seven (7) consecutive days and not more than
50 attendances as the result of any one disability. No
benefits under this paragraph shall be payable for dental
work or treatment, nor for eye examination or the
fitting of glasses, nor for X-rays, drugs, dressings, or
medicines, nor for medical expenses incurred during



disability resulting from pregnancy, which term includes
resulting childbirth or miscarriage.
(5) Reimbursement for fees charged for surgical oper­
ations up to $150 according to the surgical schedule
attached to the group policy, with provision for com­
mensurate benefits for operations not listed in said
(6) Daily hospital benefits equal to a maximum of
six dollars ($6) per day for a maximum of seventy
(70) days for any one disability, and reimbursement for
special hospital services as provided in the group policy
up to a maximum of sixty dollars ($60) for any one
(7) In case of disability resulting from pregnancy,
including resulting childbirth or miscarriage, the em­
ployee shall be entitled to the weekly sickness benefits
provided in subparagraph (3) of this paragraph A for a
maximum period of six (6) weeks, and will be entitled
also to the obstetrical benefits set forth in the schedule
of operations and hospital benefits for not more than a
maximum of fourteen (14) days.
(8) During a period of temporary lay-off or leave of
absence, the system of insurance provided herein shall
be continued for a period of one (1) month beyond the
end of the policy month during which the employee has
ceased work.
(9) The personal benefits provided by this paragraph
A not in effect prior to the execution of this agreement
shall become effective on the first day of the month
next succeeding the execution of this agreement for all
insured employees who are actively at work on that
date. If an insured employee is absent on that date,
his increased personal benefits will become effective
automatically on the date of his return to active work.
A new employee will be insured after having been con­
tinuously employed by the company for one (1) month,
if then actively at work, and if not then actively at
work, the benefits will become effective automatically
on the date of his return to active work.
(10) The benefits set forth in subparagraphs (3), (4),
(5), (6), (7) and (10) of this paragraph A are for nonoccupational injury or sickness which shall mean:
(a) Any injury not arising out of or in the course of
employment; or
(5) Any sickness for which no benefits are payable
under any applicable workmen’s compensation
or occupational disease law.
B. Employees who desire may, at their own expense,
arrange for pay-roll deductions for hospital and surgical
benefits for dependents at seventy (70) cents per week
per employee (45 cents per week for hospital benefits
and 25 cents per week for surgical benefits), provided
75 percent of all employees with eligible dependents shall
elect to participate and authorize the company to make
pay-roll deductions. The term “dependents” as used
herein shall mean a wife and unmarried children over
three (3) months and under eighteen (18) years of age.
C. If, during the term of this agreement or any extension
or renewal thereof, there shall become effective any com­

pulsory State or Federal system of employee-group insur­
ance financed by compulsory contributions from employers,
including the company herein, which system duplicates in
whole or in part the system of benefits provided in this
paragraph A of this section 5A, then the obligation of the
company as hereinabove provided shall be modified so
that its obligation will be to provide benefits that will,
when added to the benefits under such compulsory system,
equal the benefits of the employees as hereinabove pro­
vided. In the event such compulsory State or Federal
system shall be financed by compulsory contributions from
both employees and employers, then the benefits herein­
above provided shall be reduced and any savings in costs
to the company shall be utilized to provide additional life
insurance benefits. TFelters Co., Inc.—Millbury, Mass.—
Textile Workers Union of America (CIO), Local No. 232.
Effective date of agreement, April 3, 1947.]

Employer Contributions To Union Fund To Pur­
chase Group Insurance.
Whereas, the union has established a comprehensive
insurance program, for the purpose of maintaining a social
security program under which its members may be entitled
to receive benefits under the provisions hereinafter set
A. Accident benefits.
B. Dismemberment benefits.
C. Death benefits.
D. Sick benefits.
E. Medical benefits.
F. Surgical benefits.
G. Hospital benefits.
and whereas, the employer now desires to obtain said
insurance benefits for his employees who are members of
this union and who shall be eligible to participate in the
benefits above described under the provisions hereinafter
set forth.
Now, therefore, the employer hereby agrees to forward
to the Upholsterers’ International Union Social Security
Department, 1500 North Broad Street, Philadelphia 21,
Pa., each and every month, in advance, between the first
(1st) and fifth (5th) day of every month, beginning with
October 5, 1947, a sum equaling three (3) percent of the
gross wages earned by his employee-members of this union,
for transmittal to the insurance carrier(s). The said sum of
three (3) percent shall be calculated on the basis of the
total aggregate wages earned by said employee-members
during the pay period of four (4) or five (5) weeks, ter­
minating during the preceding calendar month.
The above described sum of three (3) percent shall be
forwarded by the employer to the Upholsterers’ Inter­
national Union of North America, Social Security Fund, as
above described, for transmittal by the Upholsterers’
International Union Social Security Department to the
insurance company (s) providing the benefits herein stated.
In consideration of said money forwarded to the Up­
holsterers’ International Union Social Security Department
as herein provided, the Upholsterers’ International Union


Social Security Department agrees to procure such insur­
ance coverage which will extend, beginning the date the
employer’s first contribution is due as set forth in tne pre­
ceding paragraph, the benefits herein stated to said
The union has contracted for the issuance of blanket
coverage insurance policy or policies to provide for the
payment of the foregoing benefits as therein provided. The
rights and duties of all parties including the union, the
employer, and the employee-members shall be governed by
the provisions of said blanket coverage policy or policies
which are incorporated in and made part of this provision.
The union agrees that the program of social security
benefits hereinabove described shall be maintained in full
force and effect for the entire period of time during which
this agreement is in effect and the terms hereof fully com­
plied with in all respects by the employer.
The employer agrees that the union shall have the right
to substitute the insurance company now providing said
insurance coverage provided the present benefits to
employee-members are maintained in full force and effect
for the entire period of time during which this agreement
is in effect and the terms hereof fully complied with in all
respects by the employer.
The blanket insurance policy or policies herein men­
tioned having been executed and delivered in Philadelphia,
Pa., it is hereby mutually agreed that the laws of the
Commonwealth of Pennsylvania shall govern the validity
and interpretation of the within social security provision
and the said policy or policies herein mentioned.
In the event any rules and regulations issued by the
United States Government concerning the operation of the
above described program should make necessary any
changes in the program hereinabove described, such
changes shall automatically become part of this agreement
during the effective period of operation of such rules and
regulations. Parties hereto further agree automatically to
do any and all things necessary to effectuate compliance
with the pertinent provisions of the aforesaid act and said
rules and regulations. [American Wicker Works—Min­
neapolis, Minn.—Upholsterers’ International Union of
North America (AFL), Local No. 1859. Effective date of
Agreement, August 21, 1947.]

Jointly Financed Group Insurance Plans

Life, Accident and Sickness Insurance—Employer
To Pay Half the Cost.
The company will offer to the employees a group in­
surance plan as follows:
Life insurance________________________ $1, 000
Accident and sickness insurance first day
for accident; eighth day for sickness; 13
weeks benefits____________ per week. _
The company agrees to pay one-half of the cost of such
group insurance. [United Album Co., Inc.—Kings Mills,
Ohio—United Mine Workers of America, District No. 50,


Local No. 13113. Effective date of agreement, March
20, 1947.]

Health, Hospitalization and Accident Insurance—
Employee Cost Not to Exceed Specified Amount.
Joint Committee to Administer Dividends.
It is agreed, by the company and union, that a health,
hospitalization, and accident policy shall be taken out on
the basis of an equal share in the costs of the premiums,
such contracts to cover the following liabilities in ac­
cordance with standard contracts heretofore in general use:
$23 weekly benefits, first day after accident and after
three (3) days in case of sickness.
$5 per day hospitalization for a period of 31 days.
$25 hospital expense.
$150 surgical expense.
The plan as outlined above shall be presented to the
employees, who shall have the privilege of accepting or
rejecting this coverage on an individual basis.
The cost of this insurance will be not more than ap­
proximately $0.61 each 2-week pay day to each employee
and to the company.
Any monies refunded as dividends from the health and
accident plan are to be administered by a joint committee
of the union and the company, such committee to be set
up immediately. [Milwaukee Solvay Coke Co.— Mil­
waukee, Wis.—International Chemical Workers Union
(AFL), Local No. 152. Effective date of agreement,
June 1, 1947.]

Life, Health, Accident and Hospitalization
Insurance—No Details. Dependents Covered.
Employee Cost Specified.
The company agrees to provide life, health, accident and
hospitalization insurance for all of its regular employees
under a group insurance plan. The policy also will provide
hospitalization and surgical benefits for the employee’s
wife, children over 3 months and under 18 years of age.
Employees desiring to participate in the group insurance
program shall indicate such intention by signing the
necessary application forms and authorize deductions for
the premiums.
The cost of this entire coverage shall be paid by the
company except that the employee shall pay 25 cents per
week by deducting $1 each 4 weeks.
The coverage provided by the policy is to be set forth in
detail in literature provided by the insurance company and
a copy will be available to each employee. Employees
desiring further information regarding the provisions of the
policy may obtain it by calling on the local agent of the
insurance company.
The policy is to become effective September 1, 1947, or
as soon thereafter as possible. [American Plywood Corp.—
New London, Wis.—United Brotherhood of Carpenters
and Joiners of America (AFL), Local No. 2890. Effective
date of agreement, August 18, 1947.]



Details of Benefits Not Specified. Dependent Cover­
age Optional With Employee. Division of Divi­
dends on Same Ratio as Payments.
The company will inaugurate a plan, to be underwritten
by the ------ Life Insurance Co., covering group
life insurance, nonoccupational accident and sickness
benefits, hospital care, and such other benefits as are
provided by the plan.
The company will pay one-half of the employee cost for
each employee subscribing to the service and will deduct
one-half of the cost from the employees’ earnings. If the
employee also elects to cover his family under the same
plan or in any other way increase his premium, the
company will also deduct all of the additional premium
from the employee’s earnings.
All deductions to be made from the third pay received
each month. Annual dividends are to be divided between
the company and the employees on the same ratio as the
This article which covers a new departure may be
amended by mutual agreement concerning the distribution
and use of the dividends. [Central Aluminum Castings
Corp.—Chicago, 111.—International Union, United Auto­
mobile, Aircraft and Agricultural Implement Workers of
America (CIO), Local No. 845. Effective date of agree­
ment, June 2, 1947.]

Group Insurance Plan: Hospitalization Noncon­
tributory; Other Benefits, Contributory
The employer shall provide Blue Cross hospitalization
insurance for individual employees and their families at
no expense to the employee.
The employer shall provide group insurance which will
give the employees the following schedule of benefits:—
(1) Life insurance: $1,500.
(2) Accidental death and dismemberment insurance:
$1,500 according to scale.
(3) Medical expense: $2 for office and hospital visits;
$3 for home visits or elsewhere for treatment by
physician starting with the first visit for non­
industrial accident cases and the fourth visit for
sickness, to the extent of fifty visits.
(4) Surgical benefits: Maximum of $150 according to
Life, accidental death and dismemberment, surgical
benefits and medical expense as above are contingent on
weekly contributions by all employees in the amount of
twenty-two (22) cents weekly.
A booklet setting forth the details of the entire insurance
program shall be placed in the hands of each employee.
[American Wringer Co., Inc.—Woonsocket, R. I.—Indus­
trial Trades Union of America (IND.). Effective date of
agreement, December 1, 1947.]

Welfare and Retirement Fund—Employer
A. It is hereby stipulated and agreed by the contracting
parties hereto that there is hereby created a fund to be
designated and known as the “United Mine Workers of
America Welfare and Retirement Fund.” During the
life of this agreement, there shall be paid into such fund by
each operator signatory hereto the sum of twenty (20)
cents per ton of two thousand (2,000) pounds on each
ton of coal produced for use or for sale. Such fund shall
have its place of business in Washington, District of
Columbia, and it shall be operated by a board of trustees,
one of whom shall be appointed as a representative of the
employers, one of whom shall be appointed as a representa­
tive of the United Mine Workers of America, and one of
whom shall be a neutral party selected by the other two.
In the event of resignation, death, inability or unwilling­
ness to serve of the trustee appointed by the operators or
the trustee appointed by the United Mine Workers of
America, the operators shall appoint the successor of the
trustee originally appointed by them and the United Mina
Workers of America shall appoint the successor of the
trustee originally appointed by it.
The operators signatory hereto do hereby appoint Ezra
Van Horn of Cleveland, Ohio, as their representative on
said board of trustees. The United Mine Workers of
America do hereby appoint John L. Lewis of Washington,
D. C., as its representative on said board of trustees.
It is further stipulated and agreed by the joint contracting
parties that the aforesaid two trustees shall with all dis­
patch designate and name a third and neutral trustee.
Said three trustees so named and designated shall con­
stitute the board of trustees to administer the fund herein
In the event of a deadlock on the designation or agree­
ment as to the neutral trustee, or any future neutral
trustee, an impartial umpire shall be selected either by
agreement of the two trustees, representatives of the
contracting parties hereto, or by petition by either of the
contracting parties hereto to the United States District
Court for the District of Columbia for the appointment
of such an impartial umpire, all as made and provided in
section 302 (c) of the ‘‘Labor Management Relations Act,
It is agreed by the contracting parties hereto that the
trustees herein provided for shall serve for the duration
of this contract and as long thereafter as the proper con­
tinuation and administration of said trust shall require.
It is agreed that this fund is an irrevocable trust created
pursuant to section 302 (c) of the “Labor Management
Relations Act, 1947,” and shall endure as long as the
purposes for its creation shall exist. Said purposes shall
be to make payments from principal or income or both,
of (1) benefits to employees of said operators, their families
and dependents for medical or hospital care, pensions on
retirement or death of employees, compensation for injuries
or illness resulting from occupational activity or insurance
to provide any of the foregoing, or life insurance, dis­
ability and sickness insurance or accident insurance;


(2) benefits with respect to wage loss not otherwise com­
pensated for at all or adequately by tax supported agen­
cies created by Federal or State law; (3) benefits on
account of sickness, temporary disability, death or retire­
ment; (4) benefits for any and all other purposes which
may be specified, provided for or permitted in section
302 (c) of the “Labor Management Relations Act, 1947,”
as agreed upon from time to time by the trustees, including
the making of any or all of the foregoing benefits applicable
to the individual members of the United Mine Workers
of America and their dependents; and (5) benefits for all
other related welfare purposes as may be determined by
the trustees within the scope of the provisions of the
aforesaid “Labor Management Relations Act, 1947.”
Subject to the stated purposes of this fund, the trustees
shall have full authority within the terms and provisions
of the “Labor Management Relations Act, 1947,” and
other applicable law, with respect to questions of cover­
age and eligibility, priorities among classes of benefits,
amounts of benefits, methods of providing or arranging
for provisions for benefits, investment of trust funds, and
all other related matters.
The aforesaid trustees shall designate a portion (which
may be changed from time to time) of the payments
herein provided based upon proper actuarial computa­
tions, as a separate fund to be administered by said trustees
herein described and to be used for providing for pensions
or annuities for the members of the United Mine Workers
of America or their families or dependents and such other
persons as may be properly included as beneficiaries
It is further agreed that the detailed basis upon which
payments from the fund will be made shall be resolved in
writing by the aforesaid trustees at their initial meeting,
or at the errliest practicable date that may by them there­
after be agreed upon.
Title to all the monies paid into said fund shall be vested
in and remain exclusively in the trustees of the fund, and
it is the intention of the parties hereto that said fund
shall constitute an irrevocable trust and that no benefits
or monies payable from this fund shall be subject in any
manner to anticipation, alienation, sale, transfer, assign­
ment, pledge, encumbrance or charge, and any attempt
so to anticipate, alienate, sell, transfer, assign, pledge,
encumber or charge the same shall be void. The monies
to be paid into said fund shall not constitute or be deemed
wages due to the individual mine worker, nor shall said
monies in any manner be liable for or subject to the debts,
contracts, liabilities or torts of the parties entitled to
such money, i. e., the beneficiaries of said trust under
the terms of this agreement.
The obligation to make payments to the “United Mine
Workers of America Welfare and Retirement Fund” under
this contract shall become effective on July 1, 1948, and
the first actual payments are to be made on August 20,
1948, and thereafter continuously on the 20th day of each
succeeding calendar month covering the production of all
coal for use or sale during the preceding month.
It is stipulated and agreed by the contracting parties
hereto that the trustee designated by the United Mine


Workers of America shall be the chairman of the trustees
of the fund provided for in this agreement.
It shall be the duty of the operators signatory hereto,
and each of them, to keep said payments due said fund, as
hereinabove described and provided for, current and to
furnish to the United Mine Workers of America and to the
trustees hereinabove designated a monthly statement
showing the full amount due hereunder for all coal pro­
duced for use or for sale from each of the several individual
mines owned or operated by the said operators signatory
hereto. Payments to said fund shall be made by check
payable to “United Mine Workers of America Welfare
and Retirement Fund” and shall be delivered or mailed
to the office of said fund located at 907 Fifteenth Street,
NW., Washington, D. C., or as otherwise designated by
t'he trustees.
It is stipulated and agreed by the contracting parties
hereto that an annual audit of the fund hereinabove
described shall be made by competent authorities to be
designated by the trustees of said fund. A statement of
the results of such audit shall be made available for inspec­
tion of interested persons at the principal office of the
trust fund and at such other places as may be designated
by the trustees.
Failure of any operator signatory hereto to make full and
prompt payments to the “United Mine Workers of America
Welfare and Retirement Fund” in the manner and on the
dates herein provided shall, at the option of the United
Mine Workers of America, be deemed a violation of this
agreement. This obligation of each operator signatory
hereto, which is several and not joint, to so pay such sums
shall be a direct and continuing obligation of said operator
during the life of this agreement and it shall be deemed a
violation of this agreement if any mine to which this
agreement is applicable shall be sold, leased, subleased,
assigned, or otherwise disposed of for the purpose of
avoiding the obligation hereunder.
Action which may be required hereunder by the oper­
ators for the appointment of a successor trustee repre­
senting them, or which may be required in connection
with any other matter hereunder, may be taken by those
operators who at the time are parties hereto, and authoriization, approval, or ratification of operators representing
fifty-one (51) percent or more of the coal produced for use
or sale during the calendar year previous to that in which
the action is taken shall be sufficient and shall bind all
B. It is hereby stipulated and agreed by the contracting
parties with respect to the fund created by section 4 (a)
of the National Bituminous Coal Wage Agreement dated
May 29,1946 (commonly known as the Krug-Lewis Agree­
ment),* as follows:
(1) The operators signatory hereto agree to make pay­
ments into said fund on or before July 15,1947, on account
of all coal produced for use or sale up to and including
June 30, 1947, with respect to which payment has not
heretofore been made, such payments to be on the basis
heretofore made by said operators under the provisions of
the Krug-Lewis Agreement.



(2) The operators signatory hereby renounce and for­
ever release any and all claims to or interest in payments
made into said fund.
(3) The Trustees appointed pursuant to this agreement
are hereby authorized and directed to accept into the new
trust fund hereby created and to devote for the purposes
hereinabove specified and enumerated, any and all trust
funds remaining unexpended or unobligated in said trust
fund so created by section 4 (a) of the Krug-Lewis Agree­
(4) The parties hereto agree that the best interest of the
beneficiaries of said trust fund would be served by having
all unexpended or unobligated funds therein transferred
as above provided, and agree that the trustees thereof
should transfer such funds to the new trust fund created
by this agreement.
C. It is stipulated and agreed by and between the con­
tracting parties that the monies collected under section
10 of the Krug-Lewis Agreement for the benefit of the
fund designated as “ Medical and Hospital Fund” as pro­
vided for in section 4 (b) of said Krug-Lewis Agreement
shall be transferred to the trustees of the “United Mine
Workers of America Welfare and Retirement Fund” as
established by this agreement and said monies shall be
coordinated into the aforesaid fund and be made subject
to the stated purposes hereinabove set out.
It is stipulated, understood and agreed by the contract­
ing parties hereto that present practices with respect to
wage deductions and their use for provision of medical,
hospital and related services shall continue during the
term of this contract or until such earlier date or dates as
may be agreed upon by the United Mine Workers of
America and any operator signatory hereto.
D. It is the intent and purpose of the contracting parties
hereto that full cooperation shall by each of them be given
to each other, the trustees named under this section and
to all affected mine workers to the eventual coordination
and development of policies and working agreements
necessary or advisable for the effective operation of this
fund. [National Bituminous Coal Wage Agreement as
amended, effective July 1, 1948—United Mine Workers
of America (Ind.).]

Medical Health Center Fund
Employer and union hereby recognize the advantage to
employees of a medical health center which shall be open
to all employees of employer, who are members in good
standing of a local union affiliated with the Philadelphia
Joint Board of the Amalgamated Clothing Workers of
America, and who comply with provisions herein set forth,
and such persons and groups as shall be approved for the
purpose by a two-thirds vote of all of the trustees. Em­
ployer agrees to contribute to a fund established under
this agreement and similar agreements between the union
and other employers to be known as the:
Men’s Apparel Industry Health Center Fund (herein­
after referred to as “Industry Health Fund”) for the pur­
pose of maintaining the Men’s Apparel Industry Health

Center. The Men’s Apparel Industry Health Center shall
be organized, maintained and administered as follows:
A. The Men’s Apparel Industry Health Center and
Industry Health Fund shall be received, held, and adminis­
tered by a committee of trustees consisting of ten (10)
representatives of union and ten (10) representatives of
the manufacturers. The committee may make all neces­
sary and appropriate rules and regulations for its govern­
ment, not inconsistent with the provisions of this agree­
ment, and shall operate and maintain the health center.
The ten (10) members of the board of trustees, on behalf
of union (herein called union trustees) shall be designated
by the Philadelphia Joint Board and the ten (10) rep­
resentatives of manufacturers (herein called industry
trustees) shall be designated by the president of the
Philadelphia Clothing Manufacturers Association. All
decisions and resolutions of the Board of Trustees shall
become effective and valid only upon the unanimous
vote of both classes of trustees. Each class of trustee
shall cast its vote upon the determination of a two-thirds
majority in number of such class. It is the intention of
this agreement that both classes of trustees shall be re­
quired to act jointly in the event that they cannot agree
upon any matter; then the matter shall be referred to the
Impartial Arbitrator of the men’s clothing industry of the
city of Philadelphia, and his decision shall be final and
binding upon the parties hereto. The position of Chair­
man of the Committee of Trustees shall alternate each
year between an industry representative and a union
B. Commencing with the first pay-roll week following
the vacation period of July 1946, employer shall pay into
the Industry Health Fund three-fourths of 1 (% of 1)
percent of the gross earnings of all union employees who
are members of the Philadelphia Joint Board. These
earnings will include the cost-of-living bonus, overtime,
if any, as well as holidays with pay, but will not include
any vacation payments.
C. By the provisions of preceding paragraph 1, section 9
(f), the employer has agreed to pay 2.5 percent of the
contract price of garments manufactured for him by con­
tractors, of which amount 0.6 percent shall be paid to the
Industry Health Fund. This payment shall commence
with the first pay-roll week following the vacation period
of July 1946. The payments provided for in preceding
paragraph B and in this paragraph shall only be based
upon sho'ps wherein the employees are members of local
unions affiliated with the Philadelphia Joint Board of the
Amalgamated Clothing Workers of America.
D. Employer agrees that the funds received by the
trustees of the health center shall be utilized first, to the
extent of three hundred fifty thousand ($350,000) dollars
as provided in paragraph G-II hereof and the balance
shall be utilized for the maintenance and operation of the
health center and expended under the direction of the
aforementioned health center fund committee of trustees
or their successors.


E. The committee of trustees, in its discretion, shall
have the right to establish a nonprofit corporation for the
purpose of holding title to the property of, and to manage
the health center, and may turn over to said corporation,
subject, however, to the provisions of this agreement, the
funds and assets which may have come into their possession.
F. Union agrees in accordance with its bylaws and
constitution to levy an assessment in the sum of twenty
($20) dollars on each of its members who are employed
by employer and upon those members who may hereafter
belong to the union, which shall be utilized for the purpose
of purchasing the said buildings, real estate, and equip­
ment, etc. Union shall pay the said special assessments
into a building fund established by the committee of
trustees to a maximum of three hundred fifty thousand
($350,000) dollars when an equal amount is likewise paid
into said building fund from the Industry Health Fund.
The monies in said building fund shall be deposited in a
bank selected by the trustees and shall be withdrawn
only upon the signature of an industry trustee and a union
trustee and shall be used for the cost of construction or
purchase of the building, the land, and the equipment
therein contained, and for the repayment of any obliga­
tion or mortgage occasioned by the construction and
equipment. Pending the purchase and completion of
appropriate building and equipment, trustees are em­
powered to invest the funds upon deposit with any banks
in the United States of America, or purchase any Govern­
ment bonds, or such other securities which shall be legal
for trust funds in the Commonwealth of Pennsylvania.
Interest on any mortgage or incumbrance shall be paid
from the joint fund. After the land, building, and origi­
nal equipment have been fully paid for, the receipts from
the twenty ($20) dollar assessment of new members in
excess of the amount of three hunrded fifty thousand
($350,000) dollars shall be paid by Union to the trustees
and may be utilized by the trustees for operating expenses
similarly with the other payments received from employers,
provided that employer shall make the payment required
under 2-B hereof.
G. The trustees, in addition to the powers herein set
forth and not in limitation thereof, shall have the power:
I. To determine whether a suitable building shall be
leased, purchased or constructed.
II. Shall join with union to merge the funds available
from the twenty ($20) dollar assessment for the building
fund to a maximum of three hundred fifty thousand
($350,000) dollars with an equal amount from the Industry
Health Fund derived from the percentage payments called
for in paragraph 2B, and after said merger of both funds
then title to the buildings, real estate, equipment, etc.,
purchased from joint funds shall belong to the board of
trustees or their successors or to a nonprofit corporation
organized by said trustees in accordance with the provi­
sions of this agreement, subject, however, to the terms
and conditions of this agreement.
III. May determine what reserves shall be held in cash
or legal investments in order to effectuate the purpose of
this agreement.


H. The employer shall furnish to the trustees, upon
request, such information and reports as they may require
in the performance of their duties under any of the agree­
ments. The trustees, or any authorized agent or repre­
sentative of the trustees, shall have the right at all reason­
able times during business hours to enter upon the premises
of the employer and to examine and copy such of the books,
records, papers and reports of the employer as may be
necessary to permit the trustees to determine whether the
employer is fully complying with the provisions hereof.
I. No employee shall have the option to receive instead
of the benefits provided for by this agreement any part of
the contribution of the employer. No employee shall
have the right to assign any benefits to which he may be
or become entitled to under any of the agreements or to
receive a cash consideration in lieu of such benefits either
upon termination of the trust herein created, or through
severance of employment or otherwise.
J. This supplemental agreement and the collective
bargaining agreement shall be construed as a single docu­
ment, and all of the provisions of the collective bargaining
agreement relating to the administration and enforcement
thereof (including provisions for arbitration) shall apply
to the administration and enforcement of this supplemental
K. In the event that the union receives written notice
from one or more of the trustees, designated by the trustees
for that purpose, that the employer has failed to pay in
full any sums due the trustees, and that such failure has
continued for five (5) days, the union may direct its mem­
bers to discontinue work in the plant of the employer and
to discontinue work upon clothing being manufactured for
the employer by contractors until all sums due from the
employer have been paid in full. The remedy provided
for in this subparagraph shall be in addition to all other
remedies available to the union and the trustees and may
be exercised by the union, anything in the collective bar­
gaining agreement to the contrary notwithstanding.
The trustees, in their own names as trustees, may insti­
tute or intervene in any proceeding at law, in equity, or in
bankruptcy for the purpose of effectuating the collection
of any sums due to them from the employer under the
provisions of this agreement.
L. In no event will the employer be entitled to the re­
turn of any part of any contribution made hereunder.
M. Neither the execution of this agreement nor any
provisions herein contained, or contained in any other
agreement affecting the same, shall be deemed to release
the employer from any contribution or contributions pro­
vided for in any prior agreement or agreements, and which
have become due and payable.
N. The trustees and their successors shall not be per­
sonally liable for any matter in connection with the man­
agement and operation of the said trust and the trust shall
indemnify and save harmless each and every trustee from
any claims, liabilities or costs of any nature in connection
with the operation of the said trust.



No trustee shall be liable for any action taken or omitted
by him in good faith, nor for the acts or omissions of any
agent, employee, or attorney selected by the trustees with
reasonable care, nor for any act or omission of any other
O. The trustees shall provide for an annual audit of
the trust funds and shall prepare a statement of the results
of said audit, which shall be available for inspection by
persons having an interest under this agreement at the
principal office of the trustees, and also at the office of the
Philadelphia Joint Board, Amalgamated Clothing Workers
of America, and at the office of the Philadelphia Clothing
Manufacturers Association.
P. Upon the expiration of this agreement, or any re­
newal thereof, if no provision is mutually made for the
continuance of the health center, then the board of trustees
shall have the discretion to determine whether they shall
operate the center insofar as funds may be available or
may be obtained from any source or, in their sole discretion
they may liqidate, sell, assign, or transfer the property,
equipment or other assets belonging to the health center
and transfer said property and assets to any other insti­
tution, public or private, in the city of Philadelphia which
will utilize the said funds or property for the purpose of
carrying out, insofar as may be possible, the furnishing of
clinical medical care to the members of the Philadelphia
Joint Board of the Amalgamated Clothing Workers of
America similar to the manner provided in this agreement.
3. The provisions of this supplemental agreement shall
expire the 15th day of May 1952, similarly with the pro­
visions of the contract between the Philadelphia Joint
Board, Amalgamated Clothing Workers of America, and
employer, dated May 15, 1945, to which this shall be a
supplement and which said agreement shall continue in
full force and effect except as amended in writing by the
parties and this supplemental agreement. [Coleby Tailor­
ing Company—Philadelphia, Pa.—Philadelphia Joint
Board Amalgamated Clothing Workers of America (CIO).
Effective date of supplemental agreement, August 15,

Pension or Retirement Plans

Noncontributory Plan
The company agrees to continue, during the term
hereof, the present pension plan, the provisions of which
are as follows:*6(I)
(I) (a) Any employe who has completed twentyfive (25) years of continuous service with the company
(and its predecessor) and has reached the age of sixty-five
(65) years (in the case of female employees the age shall
be fifty-five (55) years) may voluntarily retire upon
a regular pension.
(6) The company may require an employe with
twenty-five (25) years of continuous service to retire on

a pension if the employe has reached the age of sixtyeight (68) years (for female employes the age shall be
fifty-eight (58) years).
(c) The amount of the aforesaid pension shall be
fifty (50) dollars per month for employes with twentyfive (25) years of continuous service with an additional
one (1) dollar per month for every year of service in
excess of twenty-five (25) years; provided, however,
that in no case shall a pension exceed seventy-five (75)
dollars per month.
(d) (i) The company may retire, upon a modified
pension, employes coming within the following classifica­
tions: Any employe over seventy (70) years of age
with less than twenty-five (25) years but more than
fifteen (15) years of service may be retired on a pension
at the rate of two (2) dollars per month for each year
of service.
(ii) Any employe who is permanently in­
capacitated and has had at least twenty (20) years of
service will be retired on a pension of rate two (2) dollars
per month for each year of service up to twenty-five (25)
years, with an additional one (1) dollar per month for
each year of service in excess of twenty-five (25) years.
Provided, that in the case of any person who shall
hereafter be put on a pension and who is also then or at
any time thereafter contemporaneously receiving work­
men’s compensation, employer’s liability, occupational
disease or similar compensation payments from the
company or from its insurance carrier, the amount of such
payments shall be a credit against the amount of pension
payment to which he shall be entitled; Provided further,
that the maximum continuous amount of sick leave to
which an employe shall be entitled during the entire
course of his employment without breaking the con­
tinuity of his employment, so far as calculation of years
of continuous employment for pension purposes is con­
cerned, shall be 2 years.
(II) The aforesaid pensions shall be in lieu and
satisfaction of pensions from the PRT Co-Operative
(III) The revocation, by the agreement of Feb­
ruary 21, 1946, of the first two provisos which were
contained in section 701 of the agreement of October
15, 1945, and which said two provisos have been eliminated
from the foregoing provisions of this section 701, is with
respect to employes going on pension since February
11, 1946 and pension payments since February 11, 1946
to pensioners who went on pension from and after Feb­
ruary 11, 1944. The amendments made in section 701
by the agreement of February 13,1947, which amendments
have been incorporated and reflected in the foregoing
provisions of this section 701, are retroactive to February
11, 1944 for the purpose of determining whether any
former employes who had left the service of the company
since February 11, 1944 are qualified for pensions under
this section as so amended, but payments to any thereof
who are so qualified will begin February 11, 1947 and no
retroactive payment will be made. [Philadelphia Trans­
portation Co.—Philadelphia, Pa.—Transport Workers


Union of America (CIO), Local No. 234. Effective date
of agreement, August 21, 1947].

Contributory Plan
Membership. An employee may become a member of the
plan on the first day of the month after the following
conditions have been met:
(а ) He has been in service at least 5 years.
(б ) He is under 6 4 years of age.
An eligible employee may become a member of the plan
by signing the card provided for that purpose. Each
member will receive a certificate of his membership in
the plan.
An employee who does not become a member of the
plan when first eligible may do so at a later date. In such
a case, membership will commence on the first day of the
month after the card is signed, and he will receive no
retirement annuity or other benefits for service before
that date.
Retirement Date. The normal retirement date is the first
day of the month coinciding with or next following the
65th birthday. Retirement annuity payments commence
on the normal retirement date and continue as long as the
member lives.
With the consent of the company, a member may retire
before the normal retirement date on a reduced amount
of retirement annuity.
A member will not be permitted to remain in service
after the normal retirement date except with the special
consent of the company. If a member is permitted to
remain in service after the normal retirement date, his
and the company’s contributions will stop and retirement
annuity payments will commence as if the member had
actually retired on the normal retirement date.
Members’ Contributions. Each member will contribute
2 percent of his earnings up to $3,000 per year.
A member whose earnings are over $3,000 per year
will contribute 2 percent of the first $3,000 of his earnings
each year and 4 percent of the excess of his earnings over
$3,000 each year.
Members’ contributions will be deducted from their
earnings each pay day. In determining the rate of con­
tribution, earnings are computed from January 1, of each
year. Thus, a member will contribute 2 percent of his
earnings until his total earnings in each year have reached
$3,000 (counting all earnings from January on, regardless
of the date he becomes a member), and 4 percent of his
earnings during the remainder of that calendar year.
Retirement Annuity and Company1s Contributions. Each
member who remains in service until his normal retirement
date will receive a retirement annuity to be paid monthly.
The yearly amount of this retirement annuity will be
50 percent of the member’s total contributions under
the plan.
The company will pay the excess of the cost of the
above retirement annuity over the member’s contributions.


The company will pay considerably more than one-half
of the cost of this retirement annuity.
The company intends to provide, without cost to the
employees, an additional retirement annuity for each
employee who became a member of the plan as of June
1, 1942, and who had then been in service at least 6 years.
The yearly amount of this retirement annuity will be
1 percent of the member’s yearly rate of earnings on
June 1, 1942, multiplied by the number of completed
years of continuous service, excluding the first 5 years
of such service. The company expects to make payments
to the insurance company over a period of years, and
each such payment will be applied to purchase these
retirement annuities for eligible employees in order
of nearness to retirement date.
All benefits and contributions under the plan are
independent of, and in addition to, benefits and taxes
under the Federal Social Security program.
N o t e . —Refer to examples of the amounts of members’
contributions and retirement annuities.
Death Before Retirement. If a member dies before his
retirement annuity payments commence, his beneficiary
will receive the member’s contributions plus 2 percent
interest, compounded annually, on each contribution from
the June first following the date it was paid to the first
of the month in which death occurs.
A member may change his beneficiary at any time.
Benefits After Retirement. The regular retirement annuity is
paid as long as the member lives after his retirement date,
and if he dies before receiving total retirement annuity
payments at least equal to his contributions with interest,
the balance will be paid to his beneficiary. Interest is at
the rate of 2 percent compounded annually, on each con­
tribution from the June first following the date it was paid
to his retirement date.
Instead of receiving the benefits described in the pre­
ceding paragraph, the member may elect a reduced retire­
ment annuity to be paid as long as he lives, with the further
provision that all or a part of this reduced retirement
annuity will be continued after his death during the remain­
ing lifetime of a person (known as the joint annuitant)
named by him.
A member may elect this form of retirement annuity at
any time more than 5 years before his retirement annuity
payments commence; otherwise, satisfactory evidence of
his good health will be required.
N o t e : Further information concerning this form of
retirement annuity and the conditions governing its
election will be included in the certificate issued by the
insurance company.
Termination of Service. If a member leaves the service be­
fore his retirement annuity payments commence, he may
elect one of the following options:
(a) He may leave his contributions and interest with
the insurance company and receive a retirement annuity
beginning at his normal retirement date.
If he has been a contributing member of the plan for 10
years and is age 40 or over, the retirement annuity will be



that purchased by both his own and the company’s con­
tributions. The retirement annuity for service before
June 1,1942 will be included only to the extent it has been
purchased before the member leaves service.
If he has been a contributing member of the plan for less
than 10 years or is under age 40, the retirement annuity
will be that purchased by his own contributions only.
(b) He may have his contributions returned to him with
2 percent interest, compounded annually on each contri­
bution from the June first following the date it was paid to
the first of the month in which the election is made. The
insurance company will ordinarily make the payment in
one sum, but it reserves the right to spread the payment
over 12 months.
If he elects this option, all of his benefits under the plan
will be canceled.
N o t e .—A member may not withdraw his contributions
or interest as long as he remains in the service of the
company, or borrow against them at any time.
Temporary Absence. A temporary absence, authorized by
the company (such as sickness, accident, military service,
or leave of absence), will not be considered termination of
service and will be governed as follows:
(a) If earnings continue during the absence, contribu­
tions by the member and the company will continue on the
basis of such earnings.
(b) If earnings cease, contributions by the member and
the company will cease, but the retirement annuity pre­
viously purchased will not be affected. Upon resumption
of earnings, contributions will be resumed.

If a member’s service is terminated during a period of
temporary absence, the provisions governing termination
of service will apply.
Assignments. No assignments of any of the benefits under
this plan will be valid or recognized.
Contracts. The member’s rights and benefits, under the plan
outlined in this booklet, will be governed by the group
annuity contract issued by th e ------Life Insurance Co.
to Excel Corp.
Future Changes in Plan. Any suggested change to the
plan shall be negotiated and mutually agreed upon by the
company and the bargaining committee. Also, the insur­
ance company has the right to make changes in the con­
tract after May 30, 1947. No change or suspension will
affect the retirement annuity or other benefits already
purchased by the member’s and the company’s contri­
If the plan is discontinued, each member will receive a
retirement annuity to commence at the normal retirement
date, including the regular death benefit provisions, but
without the right to withdraw contributions. Whether
or not the member remains in the service of the company,
the amount of the retirement annuity will be that pur­
chased by both the member’s and the company’s contri­
butions before discontinuance. [Excel Corp.—Elkhart,
Ind.—International Union, United Automobile, Aircraft
and Agricultural Implement Workers of America (CIO),
Local No. 764. Effective date of agreement May 1, 1948.]

Appendix II.—Selected Bibliography on Employee-Benefit Plans Under Collective
American Federation of Labor. Health-Benefit
Plans by Collective Bargaining. 901 Massa­
chusetts Aye., NW., Washington, D. C. May
1946. 11 pp. Collective Bargaining Series,
No. 1.
American Federation of Labor. Benefit Plan
Provisions of Collective Agreements and Federal
and State Social Security Laws. Bulletin of the
Metal Trades Department, May 1948, vol.
XXXI, No. 5. 8 pp.
American Management Association. Trends in
Employee Health and Pension Plans. New
York, 1948. 30 pp. Personnel Series, No.
American Management Association. Trends in
Workmen's Compensation and Employee Bene­
fits. 330 W. 42nd St., New York, N. Y. 1946.
Insurance Series, No. 65, pp. 24-33.
Brumm, J. M. Health Insurance Plans Under
Union-Management Agreements. Labor and
Nation, January 1947, pp. 46-48.

Conference Board Management Record. Features
of Union Health and Welfare Plans. By F.
Beatrice Brower. April 1947, vol. IX, No. 4,
pp. 80-83.
Conference Board Personnel Management Record.
Group Insurance in Union Agreements. By
Arax Simsarian. August 1948, vol. X, No. 8,
pp. 393-398.
Dartnell Corporation. Experience of 182 Com­
panies with Employee Benefit Programs. Sec­
tions one and two. Chicago. 85 pp. and
exhibits. Report No. 555.
Dyers, Finishers, Printers, and Bleachers of
America (CIO), Federation of. Health Insurance
in the Textile Dyeing, Finishing and Printing
Industry. Paterson, N. J., 1945. 16 pp.
Electrical, Radio, and Machine Workers of
America (CIO), United. U E Guide to Group
Insurance. 11 East 51st Street, New York
22, N. Y. 1944. 127 pp.


Fletcher, Andrew. Role of Management in Medi­
cal Plans. Journal of American Medical Asso­
ciation, November 23, 1946, vol. 132, No. 13,
pp. 758-760.
Hewitt, Edwin S., and Kluss, Charles L. Bar­
gaining on Employee Benefits. Personnel, July
1948, pp. 23-30.
Industrial Relations Counselors, Inc. The Inland
Steel Decision and Pension Policy. New York,
May 13, 1948. 21 pp. Industrial Relations
Memoranda, No. 99.
Inter-Union Institute. Royalties, Taxes and As­
sessments. Labor and Nation, Part Two,
August 1945. 14 pp.
Journal of Commerce and Commercial (New
York). Management and Labor Look at
Retirement Plans. September 23, 1948, vol.
217, No. 16735, Second Section. 28 pp.
Kettering, W. L. Benefit Programs in Collective
Bargaining. Personnel, March 1946, vol. 22,
No. 5, pp. 335-345.
Kogan, B. A. Some Labor Union Enterprises in
Public Health Economics. American Journal
of Public Health, July 1948, vol. 38, No. 7,
pp. 943-950.
National Industrial Conference Board. Lnion
Health and Welfare Funds. New York, 1947.
48 pp. Studies in Business Economics, No. 8.
New York School of Industrial and Labor Rela­
tions. Health and Welfare Funds in the Needle
Trades. (By Adolph Held.) Industrial and
Labor Relations Review, vol. 1, No. 2, January
1948, pp. 247-263.
Petrillo, James C. James C. Petrillo Explains
Why Members of the A. F. of M. Have Not
Been Making Recordings Since January 1, 1948.
International Musician, February 1948, pp. 3-7.
Princeton University, Industrial Relations Sec­
tion. Group Health Insurance and Sickness
Benefit Plans in Collective Bargaining. By
Helen Baker and Dorothy Dahl. Princeton,
N. J., 1945. 89 pp. and appendices.
Princeton University, Industrial Relations Sec­
tion. Sickness Benefits and Group Purchase of


Medical Care for Industrial Employees: A
Selected, Annotated Bibliography. By Dorothy
Dahl. Princeton, N. J., October 1944. 28 pp.
Reisner, Erwin T. Security Provisions in Labor
Contracts. Personnel Journal, June 1946, vol.
25, No. 2, pp. 67-71.
Rosenthal, Robert. Union-Management Welfare
Plans. Quarterly Journal of Economics, No­
vember 1947, vol. LXII, No. 1, pp. 64-94.
Schmidt, Godfrey P. United Mine Workers of
America Welfare and Retirement Funds. Fordham Law Review, November 1947, vol. XYI,
No. 2, pp. 253-263.
Stern, Boris. Labor and Management at the
Conference Table. Journal of American Medi­
cal Association, November 23, 1946, vol. 132,
No. 13, pp. 758-760.
U nited S tates G overnment

Labor, Department of. Extent of Insurance and
Pensions in Industrial Employment. Monthly
Labor Review, July 1947, vol. 65, No. 1, pp.
Labor, Department of. Health Benefit Programs
Established Through Collective Bargaining. Wash­
ington, 1945. 19 pp. Bureau of Labor Statis­
tics Bulletin No. 841.
Labor, Department of. Health Program of
ILGWU. By Leo Price, M.D. Monthly Labor
Review, October 1939, vol. 49, No. 4, pp. 811830.
Labor, Department of. Maternity Benefits Under
Union-Contract Health Insurance Plans. Wash­
ington, 1947. 19 pp. Women’s Bureau Bul­
letin No. 214.
Labor, Department of. Union Health and Welfare
Plans. Washington, 1947. 24 pp. Bureau of
Labor Statistics Bulletin No. 900.
National Wage Stabilization Board. The Admin­
istration, Under Collective Bargaining, of Welfare
Plans Based on Employer Contributions. By
David J. Farber. Washington, 1946. 44 pp.