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E m p l o y e r E x p e n d it u r e s fo r S ele e te d
S u p p le m e n ta r y C o m p e n s a tio n P ra c tic e s
fo r P r o d u c t io n a n d R e la te d W o r k e r s
Dayton & Montgomery Co-

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public Library
J J J U 1 4 L4&4

O O f i U M E N t C O L L E C T I O N .,

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M E A T P A C K IN G A N D P R O C E S S IN G




IN D U S T R IE S ,

1962

Bulletin No. 1413

UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS




E m p lo y e r E x p e n d it u r e s fo r S e le c te d
S u p p le m e n t a r y C o m p e n s a t io n P ra c tic e s
fo r P ro d u c t io n a n d R e la te d W o r k e r s

M E A T P A C K IN G A N D P R O C E S S I N G
IN D U S T R IE S , 1 9 6 2

Bulletin No. 1413
June 1964

UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU
Ewan

O F

L A B O R

Clague,

STATISTICS

Commissioner

For sale b y the S u p e r i n t e n d e n t of D o c u m e n t s , U.S. G o v e r n m e n t Printing Office, W a s h i n g t o n , D.C., 2 0 4 0 2 - Price 2 5 cents










Preface

This study was undertaken by the Bureau of Labor
Statistics as a special project within the framework of a
general survey of all manufacturing employers* expendi­
tures for selected supplementary compensation practices.
The general cooperation of the meatpacking and processing
companies in providing the basic data enabled the Bureau
to complete the project with confidence in the reliability of
these published estimates of supplementary compensation
expenditures for these industries.
The results of the broad survey of all manufactur­
ing industries will be published later in the year. That
report will show both the level of expenditures for 1962
and measures of change since 1 9 5 9 , the date of the first
survey.
This study was conducted in the Bureau’s Divi­
sion of National W a g e and Salary Income, by N o r m a n J.
Samuels, Chief of the Division, under the general direction
of L. R. Linsenmayer, Assistant Commissioner for Wages
and Industrial Relations. The analysis was prepared by
Arnold Strasser.

HI

Contents
Page
S u m m a r y ---------------------------------------------------------------Industry characteristics------------------------------------------------Prevalence of supplements----------------------------------------------Paid leave -------------------------------------------------------------Paid vacations and holidays------------------------------------------Sick leave and other paid leave-------------------------------Overtime, weekend, holiday, and shift p r e m i u m s ------------------------Yearend, Christmas, and other irregular bonuses-----------------------Legally required insurance programs — ----------------------------------Private welfare plans---------------------------------------------------Composition of payroll hours---------------------------------------------

1
1
2
2
4
4
5
6
6
7
9

Chart: Employer expenditures for selected supplementary
compensation practices for production and related
workers, meatpacking and processing
industries, 1962-----------------------------------------------

3

Tables:
1. Employer expenditures for supplementary compensation
practices for production and related workers,
meatpacking and processing industries, 1962--------------------2. Distributions of production and related workers
by employer expenditures as a percent of
gross payroll, for selected supplementary
compensation practices, meatpacking and
processing industries, 1962-------------------------------------3. Distribution of production and related workers
by employer expenditures in cents per hour paid
for selected supplementary compensation
practices, meatpacking and processingindustries, 1962------------

10

11

12

Appendixes:
A.
B.

Scope and method of survey------------------------------------Questionnaire----------------------------------------------------




iv

13
16

Employer Expenditures for Selected Supplementary Compensation
Practices for Production and Related Workers

M e a tp a c k in g

and

P r o c e s s in g

I n d u s tr ie s , 1 9 6 2

Summary
About 12.5 percent of the gross 1962 payroll for production and related
workers in the meatpacking and processing industries 1 consisted of payments to
the workers for leave time; p r e m i u m s for overtime, weekend, holiday, and shift
work; and yearend, Christmas, or other irregular bonuses. In addition, employers
m a d e payments equal to about 10 percent of the gross payroll for legally required
insurance programs and selected private welfare plans.
The total expenditures for the selected practices in all meatpacking and
processing plants amounted to 62 cents for every hour paid for during 1962, or
67 cents for each plant hour. 2 M o r e than half of these expenditures, 34 cents
an hour paid for or almost 37 cents per plant hour, were paid directly to pro­
duction and related workers for leave time, p r e m i u m payments, and bonuses.
A m o n g the items studied for which employers m a d e payments to special funds or
insurance corfipanies, life, accident, and health insurance accounted for the largest
expenditure— 3.1 percent of gross payroll or almost 30 percent of total employer
expenditures for legally required insurance programs and private welfare plans.
In general, the rate of expenditures for the supplementary practices
studied tended to increase with establishment size and average wage. However,
bonuses were paid m o r e often by smaller units with lower average wages than
by the larger or higher paying establishments. Nevertheless, about 58 percent
of the workers in the plants that paid yearend, Christmas, or other irregular
bonuses were employed by the larger units (those with 100 or m o r e production
and related workers).

Industry Characteristics
In 1962, about four-fifths of the employees in the Nation's meatpacking
and processing industries worked for establishments primarily engaged in the
slaughtering of animals for their o w n account or on a contract basis, and onefifth worked for m e a t processing establishments that manufacture sausages and
other prepared m e a t and mea t specialties. M o r e than half the industries1 e m ­
ployment wa s centered in the North Central States, and about one-fifth in the South.
While m o s t of the industries1 establishments are small, the vast majority
of the employees worked for large units. Only 10 percent of all establishments had
as m a n y as 100 employees and only 2 percent employed 500 or more. However,
about one-third of the workers were employed by plants with 100 to 500 workers
and about two-fifths were employed by establishments with 500 or more. In general,
those establishments primarily engaged in slaughtering were substantially larger

1 The meatpacking and processing industries include establishments classified, in accordance with the 1957 edition
of the Standard Industrial Classification Manual, in SIC 2011—meatpacking plants and SIC 2013—sausages and other
prepared meat products.
2 Hours paid for consist of aggregate hours paid for during the year including "clothes-change tim e, " other
nonleave hours paid for but not worked, and paid leave hours. Plant hours exclude paid leave hours. The terms
"plant hours" and "working hours" as used in this report are synonomous.




1

2

than those that manufacture sausages and other prepared meat products. Estab­
lishments in the North Central States were almost twice as large as those in
other regions of the country. 3
About 45 percent of the total numb e r of employees (including production
workers) in the industries worked for multiplant companies, establishments of
which were primarily engaged in slaughtering. 4
Approximately four-fifths of the production and related workers were e m ­
ployed by establishments in which a majority of the workers were covered by
collectively bargained agreements.

Prevalence of Supplements
All of the workers in the meatpacking and processing industries were
covered by social security and almost all were also covered by unemployment
insurance and w o r k m e n 1s compensation. 5 In addition, the vast majority of the
workers (about 94 percent) were employed by establishments that had expend­
itures for s o m e type of private welfare plan— usually life, accident, and health
insurance. 6
Paid leave time, primarily for vacations and holidays, was provided by
establishments that employed m o r e than 98 percent of the production workers, and
p r e m i u m payments for overtime, weekend, holiday, and shift work were m a d e by
establishments with about 94 percent of the production employment. About a third
of the workers were employed by establishments that paid yearend, Christmas, or
other irregular bonuses during 1962. 7

Paid Leave
Employer payments for leave time comprised 7.4 percent of the gross
payroll and 7.8 percent of the straight-time payroll for production and related
workers (chart and table 1). Leave expenditures were generally higher in larger,
higher wage, or unionized establishments in metropolitan areas than in the small­
er, lower wage, or nonunion establishments, located in nonmetropolitan areas.
Expenditures in establishments that paid for leave averaged 20. 3 cents for every
hour paid for during the year or 22 cents per plant hour. Half of the workers
were employed by establishments that had average expenditures of 20 cents or
m o r e an hour for leave, and 17.2 percent worked for plants in which expenditures
averaged at least 30 cents for each hour paid for in 1962.

3 County Business Patterns, First Quarter, 1962, parts 1-10, U .S. Bureau of the Census.
4 A multiplant company is considered to be one with two or more establishments classified in either one o f the
industries studied (SIC 2011 and 2013).
For additional data about multiplant companies and occupational wages and earnings in the meatpacking and
processing industries, see Industry Wage Survey: Meat Products, November 1963 (BLS Bulletin 1415, 1964).
5 A ll o f the workers employed by establishments participating in the survey were covered by unemployment
compensation. However, in some States the unemployment insurance laws do not cover workers in establishments
with fewer than four workers. To the extent of the number o f workers in such small establishments, the data for
unemployment compensation presented in this report are overstated. The number of workers in establishments with
fewer than four is estimated to comprise approximately 1 percent of total employment, and hence has little effect
on the data.
6 The percentages noted apply to all production and related workers, not the proportion of workers actually re­
ceiving the benefit.
7 For purposes o f this study, production bonuses, incentive and suggestion awards, and bonuses for longevity
and perfect attendance were not considered to be yearend or irregular bonuses.




3

E m p lo y e r

E x p e n d itu r e s
P r a c tic e s

F or

F or

S e le c te d

P r o d u c tio n

M e a tp a c k in g

a n d

S u p p le m e n ta r y

an d

R e la te d

P r o c e s s in g

C o m p e n s a tio n

W ork ers,

I n d u s tr ie s ,

1962

Expenditures as a percent of gross payroll
DIRECT P A Y M E N T S TO W O R K E R S :

0

I

2

3

4

5

6

7

8

-------- 1-------- 1-------- 1-------- 1--------- 1-------- 1-------- 1---------

Paid leave

Premiums
Bonuses
J------------ 1________ I________I________ I_______ I________ L

P A Y M E N T S FOR SOCIAL A N D
PRIVATE WELFARE PLANS,'
Private welfare plans
Legally required insurance
programs

Expenditures in cents per hour paid for
DIRECT P A Y M E N T S TO WORKERS;

0

5

10

Paid leave
Premiums

Bonuses
J_________________I

P A Y M E N T S FOR SOCIAL A N D
PRIVATE WELFARE PLANS;
Private welfare plans
Legally required insurance
programs




15

20

----------------- 1------------------1------------------1------------------

4

Paid Vacations and Holidays. Expenditures for vacations and holidays
constituted about 87 percent of total leave time payments.
These payments
were m a d e by plants that employed about 98 percent of the production and re­
lated workers.
Vacation payments comprised 4. 2 percent of the industries’ gross pay­
roll and about 4.4 percent of the straight-time payroll. They ranged by estab­
lishment f r o m under 1 percent to over 8 percent. (See table 2.) Large clusters
of workers were employed by plants that had expenditures of 2, 3, and 5 percent
for the practice. Establishments with expenditures of 5 percent or m o r e of their
gross production worker payroll were generally the largest employing units in
the industries.
The aggregate vacation expenditure, w h e n divided a m o n g all 1962 hours
paid for, amounted to 11.3 cents an hour in all establishments or 11.5 cents in
those that had expenditures.
In terms of plant hours, the latter establishments
had expenditures that averaged 12.5 cents. *
In all establishments employer payments for holiday leave accounted for
2. 3 percent of gross payroll and 2.4 percent of the straight-time payroll for pro­
duction and related workers. These payments a m o n g the establishments that had
expenditures averaged 6.4 cents an hour or 7 cents per plant hour.10
Higher
expenditures, as a percent of gross payroll and in cents per hour were generally
m a d e by the larger establishments. Most of the workers employed by establish­
ments that had no expenditure for holiday leave worked in plants located in nonmetropolitan areas of the South. The remainder were scattered a m o n g the other
areas of the country.
Sick Leave and Other Paid Leave. About 62 percent of
production and related workers were employed by meatpacking
establishments that had expenditures for paid sick leave, and
51 percent worked for plants that had expenditures for military,
voting, and other personal leave.

the industries’
and processing
approximately
jury, witness,

Expenditures for these types of leave were m a d e most frequently by large
unionized establishments. A greater proportion of the production workers in the
West and Northeast, than in the North Central or South, were employed by plants
that paid for sick time. Military, jury, witness, voting, and other personal leave
was mos t prevalant in the North Central States, where over 60 percent of the
workers in this region worked for packers and processors that had expenditures
for those types of leave.
Total expenditures for paid sick leave and other paid leave amounted to
0.9 percent of the industries* gross payroll and 1 percent of the straight-time
payroll. In establishments that had expenditures in 1962 for these types of paid
leave, 1.2 percent of the gross payroll consisted of payments for sick time and
0.2 percent was for military, jury, witness, voting, and other personal leave.

8 The establishments in the survey sample were also asked to provide data about their payments to vacation
and holiday funds. The respondents reported that they did not make such payments.
9 It should be noted that the basis of computation used to determine a worker's vacation pay varies among es­
tablishments. In establishments that make production incentive payments, the vacation pay is usually an average of
the total earnings during some previous tim e period. In some instances that period is the previous year and in others
the preceding weeks.
Payments for clothes-changing tim e, suggestion awards, or bonuses received during the base
period may be excluded from the base earnings. Because the payments are based on a previous earnings period, the
employer's payments for a workers' vacation may be at a lower hourly rate than for current working hours; conversely,
if the base period earnings were high, the vacation payment may be at a higher hourly rate than for current working
hours.
1° The holiday pay received by production and related workers in these industries is usually based on the worker's
"basic" or "regular" rate o f pay and generally excludes incentive earnings.




5

Sick leave payments ranged from less than 1 percent of gross payroll
to less than 4 percent. Only 11 percent of all workers, 18 percent of those in
plants with expenditures, were employed by establishments whose sick leave ex­
penditures comprised 2 percent or m o r e of the gross payroll. In terms of cents
per hour, the employer expenditures, a m o n g those establishments that paid for
sick leave in 1962, amounted to 3.6 cents each hour paid for as either working
or leave time or almost 4 cents per working hour.
The largest concentration
of workers, 25 percent of those in plants with expenditures, were employed by
establishments whose expenditures for sick leave averaged between 2 and 4 cents
for each hour paid for. 11
Expenditures in establishments that paid for military, jury, witness,
voting, and other personal leave amounted to 0.2 percent of gross payroll and
were at an average rate of 0.5 cents per hour paid for during 1962.
Almost
half (49 percent) of the total production workers were employed by establishments
whose expenditures for these types of paid leave comprised less than 1 percent
of gross payroll, and about the s a m e proportion (48 percent, table 3) worked
for plants whose expenditures were at an average rate of less than 1 cent per
hour paid for.
Overtime, Weekend, Holiday, and Shift P r e m i u m s
Employer expenditures for overtime, weekend, holiday, and shift pre­
m i u m s comprised 4.6 percent of the industries* gross payroll and 4.8 percent
of the straight-time payroll. These p r e m i u m s were paid by establishments that
employed over 94 percent of all of the production and related workers in m e a t ­
packing and processing plants. A m o n g those plants that had such expenditures,
the p r e m i u m s comprised 4.8 percent of the gross payroll and 5.1 percent of
straight-time payroll.
Most of the p r e m i u m expenditures were for overtime, weekend, and hol­
iday work. The p r e m i u m payments, in establishments that had expenditures for
hours of w o r k that were not part of the normal or regular week, other than shift
work, amounted to 4.4 percent of the gross payroll and 4.6 percent of the straighttime payroll for production and related workers.
These plants employed about
94 percent of the industries1 production and related workers. About 52 percent
of the total production workers (56 percent of those in establishments with ex­
penditures) were employed by plants whose p r e m i u m payments for overtime, w e e k ­
end, or holiday w o r k comprised between 2 to 5 percent of their gross pay­
roll.12 These data indicate that approximately 7 to 10 percent of all hours paid
for in 1962 were either overtime hours, or weekend, or holiday hours that
were worked.13 Employer payments of p r e m i u m s for overtime, weekend, or

Many of the collectively bargained agreements in these industries contained provisions for paid sick leave.
The plan found in a large proportion o f these agreements provided for a sliding scale o f payments—about 50 to 65 per­
cent o f regular pay excluding incentive earnings. These payments are generally made after a 7-day waiting period.
There is no waiting period, however, for workers who have a specified number o f years o f service. Benefits are usually
paid for 13 weeks or 2 weeks for each year o f service, whichever is more, reduced by the amount of sick leave paid
for in a previous period.
12 For ease o f reading in this and subsequent discussions o f tabulations, the limits o f the class intervals are
designated as 2 to 5 percent, 1 to 6 cents, e t c ., instead of using the more precise terminology, 2 and under 5 per­
cent, 1 and under 6 cents, etc.
13 Many union contracts in these industries provide for payments o f time and on e-half for overtime and Sat­
urday work, and double time for Sunday and holiday work. The holiday rate is in addition to regular holiday pay.
The data in this section reflect only the premium portion of the payments and exclude the basic pay for the time
worked. Also excluded, in the case o f holidays, are the payments that would have been made even if the day had
not been worked. That portion o f holiday pay is included in the data pertaining to paid leave. Some contracts in­
dicate that workers employed in plants that operate 7 days a week are not paid these premiums for weekend days worked
as part of the regular workweek. These workers, in most cases, are compensated at a different rate of pay for the
weekend hours than for the other hours in their workweek. The additional compensation for the sixth and seventh day
as such, is included in the above data.




6

holiday work, w h e n divided a m o n g all hours paid for in establishments that had
these expenditures, amounted to 11.9 cents, or 12.9 cents per working hour.
Shift differentials comprised a very small proportion of the industries1
total payroll for production workers. About 0.4 percent of the gross payroll and
of the straight-time payroll, for production and related workers in all meatpacking
and processing plants, was paid as a differential for working hours outside of
those hours usually worked on the day shift. A m o n g the plants that had ex­
penditures for differentials, the payments amounted to only a slightly greater
proportion of payroll— 0.6 percent of both gross and straight-time payrolls.
The
most usual shift differential reported by the survey respondents was 12 cents
above the regular day rate. However, the employer expenditure when averaged
a m o n g total paid hours amounted to 1.6 cents; on a plant hour basis, the ex­
penditure was 1.8 cents. 14
Year end, Christmas,

and Other Irregular Bonuses

Bonus payments, amounting to only about one-half percent of the indus­
tries1 total payrolls, are not prevalent in these industries.
M o r e small establishments than large, as previously indicated, reported
having expenditures for bonuses during 1962. However, 58 percent of the w o r k ­
ers in establishments with bonus expenditures were employed by meatpacking and
processing plants that had 100 or m o r e production and related workers.
Bonus payments accounted for 1.5 percent of the gross payroll of the
plants with the expenditure. Nearly four-fifths of the workers in establishments
with the expenditure were employed by plants whose bonus payments accounted for
less than 2 percent of gross payroll.
About 3 percent worked for units whose
bonus expenditures amounted to m o r e than 5 percent of the gross production
worker payroll.
Legally Required Insurance P r o g r a m s
In all establishments, employer expenditures of 13.4 cents per paid hour
or 14. 5 cents per plant hour covered production and related workers under social
security, unemployment insurance, workmen*s compensation, and other legally
required insurance programs.15 These payments were equal to about 5 percent
of the industries* production worker payrolls.
Expenditures for social security (old-age, disability, and survivors in­
surance) accounted for half of the employer payments for all legally required
social insurance programs.
The payments, m a d e under the provisions of the
Federal Insurance Contribution Act, were at the rate of 3.125 percent of the
first $4,800 earned in covered employment by each worker during 1962.
The
actual employer payments were equal to about 2. 5 percent of their production
worker payroll.
About 9 percent of the workers were employed by establish­
ments whose expenditures for social security averaged less than 2 percent and
about 20 percent of the workers were employed by plants whose payments equaled
3 percent or m o r e of the gross production worker payroll. These expenditures
averaged 6. 7 cents per hour paid for, or 7. 3 cents per working hour.
14 For additional information about provisions for shift differentials and the proportion o f production workers
actually receiving differential rates, see BLS Bulletin 1415, 1964, op. cit.
15 Temporary disability insurance was required by law, during 1962, in California, New Jersey, New York, and
Rhode Island. Under certain circumstances, employers were required to make payments to the Ohio Disabled Workmen’ s
R e lie f Fund.




7

U n e m p lo y m e n t c o m p e n s a t io n p a y m
w e re eq u a l to abou t
1 .4 p e r c e n t o f th e ir
w h ic h a v e r a g e d 3 .9 c e n t s p e r h o u r p a id f o
c o m p o s e d o f S ta te a n d F e d e r a l ta x e s o n th e
i n g s i n m o s t S t a t e s . 16

e n ts b y m e a tp a ck e r s
and p r o c e s s o r s
gross
p a y r o ll.
T h ese
e x p e n d itu r e s ,
r , o r 4 . 2 c e n t s p e r p la n t h o u r , w e r e
fir s t $ 3 ,0 0 0 o f e a c h w o r k e r ’ s e a r n ­

A b o u t 71 p e r c e n t o f t h e p r o d u c t i o n w o r k e r s w e r e
e m p lo y e d in p la n t s
w h o s e u n e m p lo y m e n t c o n t r ib u t io n r a te w a s e q u a l to le s s th a n 2 p e r c e n t o f t h e ir
g r o s s p a y r o ll.
A l m o s t a t h ir d (3 2 p e r c e n t ) w o r k e d f o r p la n t s w h o s e S ta te a n d
F e d e r a l u n e m p lo y m e n t in s u r a n c e c o n t r ib u t io n s w a s e q u a l t o l e s s th a n 1 p e r c e n t
o f th e ir p a y r o ll.
lis h m e n ts w h o s e

H ow ever, 84
c o n t r ib u t io n s

about
15 p e r c e n t
12 c e n t s p e r p a id

w ork ed
h ou r.

W o r k m e n 1s

fo r

p e r c e n t o f th e w o r k e r s w e r e e m p lo y e d b y e s t a b ­
ran ged fr o m
1 t o 5 c e n t s p e r h o u r p a id f o r a n d
p la n t s

c o m p e n s a tio n

w hose

e x p e n d itu re s

e x p e n d itu re s ,

p a id

to

w ere

S ta te

b etw een

in s u r a n c e

6

and

fu n d s ,

p r iv a t e in s u r a n c e c a r r i e r s , o r d ir e c t ly to th e w o r k e r s w e r e m a d e b y e s t a b lis h ­
m e n ts th a t e m p lo y e d 9 8 .4 p e r c e n t o f th e p r o d u c t io n w o r k e r s .
T h e s e p a y m en ts
e q u a le d 1 p e r c e n t o f th e t o t a l p r o d u c t io n w o r k e r p a y r o ll.
O v e r 53 p e r c e n t o f
th e w o r k e r s w e r e e m p lo y e d b y p la n t s w h o s e e x p e n d it u r e s f o r w o r k m e n ’ s c o m ­
p e n s a tio n p r o g r a m s e q u a le d le s s th a n 1 p e r c e n t o f p a y r o ll, an d o n ly a b o u t 1 p e r ­
c e n t w o r k e d f o r p la n ts w h o s e p a y m e n ts e x c e e d e d 4 p e r c e n t o f th e g r o s s p r o d u c t io n
p a y r o ll. In a ll e s t a b lis h m e n t s t h e s e p a y m e n t s , f o r p r o t e c t io n a g a in s t jo b - c o n n e c t e d
in ju r y o r ill n e s s , a v e r a g e d
2. 7 c e n t s p e r h o u r p a id f o r ,
or
about 3 cen ts p e r
w o r k in g h o u r .
T h e y r a n g e d f r o m u n d e r 1 c e n t t o m o r e th a n 10 c e n t s p e r h o u r .
A m a jo r it y o f th e w o r k e r s (6 2 . 1 p e r c e n t ) w e r e e m p lo y e d b y p la n ts w h o s e e x p e n d i­
t u r e s w e r e u n d e r 3 c e n t s p e r p a id h o u r .

P r iv a te

W e lfa r e

P la n s

A lm o s t

94

p ercen t

of

th e

p r o d u c tio n

and

r e la t e d

w ork ers

in

th e

m e a t­

p a c k in g a n d p r o c e s s in g in d u s t r ie s w e r e e m p lo y e d b y e s t a b lis h m e n t s th a t h a d e x ­
p e n d it u r e s in 1 9 6 2 f o r s o m e t y p e o f p r iv a t e w e l f a r e p la n .
T h e m o s t p r e v a le n t
p r iv a t e p la n p r o v i d e d o n e o r m o r e f o r m s o f l i f e , a c c id e n t , o r h e a lt h in s u r a n c e .
S lig h t ly l e s s th a n 9 4 p e r c e n t o f th e i n d u s t r i e s ’ w o r k e r s w e r e e m p lo y e d b y p la n ts
th a t p r o v id e d s u c h in s u r a n c e p r o t e c t io n .
P e n s io n s o r r e t ir e m e n t p la n s , p r o v id e d
b y p la n t s w ith a lm o s t 67 p e r c e n t , o f th e p r o d u c t io n w o r k f o r c e ,
w e r e th e s e c o n d
m o s t p r e v a le n t , an d a fo u r t h o f th e w o r k e r s
w e r e e m p lo y e d b y e s ta b lis h m e n ts
th a t h a d e x p e n d it u r e s f o r s e v e r a n c e o r d is m is s a l p a y .
A fe w o f th e la r g e r e s t a b ­
lis h m e n t s m a d e p a y m e n t s t o s a v in g s a n d t h r ift fu n d s a n d s u p p le m e n t a r y u n e m p lo y ­
m e n t b e n e fit p la n s .
In a ll e s t a b lis h m e n t s e m p lo y e r p a y m e n t s f o r p r iv a t e w e lf a r e p la n s e q u a le d
5 .4
p e r c e n t o f th e g r o s s
p r o d u c tio n an d r e la te d w o r k e r p a y r o ll an d a v e r a g e d
1 4 . 7 c e n t s p e r h o u r p a id f o r .
E x p e n d itu r e s , a m o n g th o s e
p la n ts th a t p a id f o r
o n e o r m o r e p r iv a te p la n s , w e r e e q u a l t o 5 .7 p e r c e n t o f t h e ir g r o s s p r o d u c tio n
w o r k e r p a y r o ll a n d a m o u n te d t o 1 5 . 6 c e n t s p e r p a id h o u r o r 17 c e n t s p e r w o r k in g
h ou r.

T h ese

e m p lo y e r p a y m e n ts ra n g e d fr o m

p e r p a id h o u r . T h e r e w e r e n o
b u tio n .
A b ou t 53 p e r c e n t o f a ll

under

1 cen t to

m ore

th a n

30

cen ts

c l u s t e r s (m o d a l g r o u p in g s ) e v id e n t in th e d i s t r i ­
p r o d u c tio n w o r k e r s , h o w e v e r , w e r e e m p lo y e d b y

p la n ts w ith e x p e n d it u r e s th a t e q u a le d f r o m
r e la t e d w o r k e r p a y r o lls .

5 to

9

p ercen t

of

th e ir

p r o d u c tio n

and

16 The wage base in nine States was higher than $3,000. These States and the wage base in each are: Alaska—
$7, 200j California and Oregon—$3, 800; Delaware, Hawaii, Massachusetts, Nevada, Rhode Island, and West Virginia—
$3, 600. Contribution rates for Federal taxes were 0 .8 percent of the first $3,000 of earnings in all States except
Alaska and Michigan.
The rate was 1.1 percent in Alaska and 0 .9 5 percent in Michigan.




8

L ife ,

a c c id e n t,

a n d h e a lt h in s u r a n c e e x p e n d it u r e s a c c o u n t e d f o r m o r e th a n

h a lf o f th e e m p lo y e r p a y m e n ts f o r p r iv a t e w e lf a r e p la n s ,
th e in d u s t r ie s 1 g r o s s p a y r o lls .
S p re a d a m on g a ll h o u rs
p a y m e n ts

a m o u n te d

to

8 .5

cen ts.

The

e x p e n d itu r e s

in

e q u a lin g
p a id f o r

3. 1 p e rce n t o f
in 1 9 6 2 , t h e s e

e s ta b lis h m e n ts

f o r o n e o r m o r e in s u r a n c e p la n s a m o u n te d t o 9 . 1 c e n t s p e r p a id h o u r ,
p e r p la n t h o u r .

In su ra n c e p r o te c tio n w a s p r o v id e d b y

p la n ts

of

a ll

s iz e s .

th a t

o r 9 .8

p a id
cen ts

H ow ever,

a l­

m o s t a ll o f th e p la n t s th a t r e p o r t e d n o e x p e n d itu r e f o r in s u r a n c e p la n s e m p lo y e d
fe w e r th a n
100 p r o d u c tio n w o r k e r s
a n d m o s t h a d fe w e r th a n 20 w o r k e r s .
In
g e n e r a l,
th e l e v e l o f e s t a b lis h m e n t e x p e n d it u r e s t e n d e d t o i n c r e a s e w ith th e
n u m b e r o f e m p lo y e e s .
H o w e v e r , s o m e s m a ll p la n ts w e r e at th e h ig h e s t e x p e n d i­
tu re le v e ls .
T h e e x p e n d itu r e s ,
as a
p ercen t of
gross
p a y r o ll, ra n g e d fr o m
a m o u n ts e q u a l t o l e s s th a n 1 p e r c e n t t o o v e r 5 p e r c e n t .
M ost w ork ers w ere e m ­
p lo y e d b y p la n t s w h o s e e x p e n d it u r e s w e r e at th e 2, 3 , a n d 4 p e r c e n t l e v e l s .
In
t e r m s o f c e n t s p e r h o u r , th e la r g e s t g r o u p in g o f w o r k e r s , a b o u t 35 p e r c e n t ,
w as
e m p lo y e d b y p la n t s w h o s e e x p e n d it u r e s f o r in s u r a n c e w e r e b e t w e e n 9 a n d 12 c e n t s
p e r p a id h o u r .

P e n s io n o r
r e t ir e m e n t e x p e n d itu r e s e q u a le d
2 .1 p e r c e n t o f th e in d u s ­
tr ie s 1 g ross
p a y r o l l a n d 2 . 9 p e r c e n t in p la n t s th a t m a d e p a y m e n t s in
1962 fo r
t h e s e p la n s .
A lm o s t a ll o f th e p la n ts w ith e x p e n d it u r e s r e p o r t e d th a t th e m a ­
jo r it y o f th e ir p r o d u c tio n an d r e la t e d w o r k e r s w e r e c o v e r e d b y c o lle c t iv e ly b a r ­
g a in e d a g r e e m e n t s
a n d m o s t o f t h e s e p la n t s
e m p lo y e d
100 o r m o r e w o r k e r s .
A b o u t 52 p e r c e n t o f th e in d u s t r ie s 1 p r o d u c tio n a n d r e la t e d w o r k e r s , 78 p e r c e n t o f
t h o s e in p la n ts w ith e x p e n d it u r e s , w o r k e d f o r e s t a b lis h m e n t s w h o s e e x p e n d it u r e s
f o r p e n s io n s o r r e t ir e m e n t p la n s e q u a le d a t le a s t 1 p e r c e n t a n d l e s s th a n 4 p e r ­
ce n t o f g r o s s p a y r o ll.
In t e r m s o f c e n t s p e r h o u r , t h e s e
e m p lo y e r p a y m e n ts
a v e r a g e d 8 . 5 c e n t s p e r h o u r p a id f o r o r 9 . 4 c e n t s p e r w o r k in g h o u r .
M easu red
in t h e s e t e r m s , th e e m p l o y e r p a y m e n t s r a n g e d f r o m l e s s th a n 1 c e n t p e r h o u r
p a id f o r to o v e r
15 c e n t s .
A b o u t 45 p e r c e n t o f th e w o r k e r s , a p p r o x im a te ly
67 p e r c e n t o f t h o s e in e s t a b lis h m e n t s w ith e x p e n d it u r e s , w o r k e d f o r m e a t p a c k ­
in g a n d p r o c e s s i n g
th e s e p la n s .

p la n ts

th a t

p a id

an

average

of

7 to

12

cen ts

an

hour

fo r

S e v e r a n c e o r d is m is s a l p a y m e n ts w e r e m a d e b y e s t a b lis h m e n t s th a t e m ­
p lo y e d a b o u t 25 p e r c e n t o f th e in d u s t r ie s 1 p r o d u c tio n an d r e la t e d w o r k e r s .
As
in d ic a t e d p r e v i o u s ly , a lm o s t a ll o f th e p la n t s th a t m a d e s u c h p a y m e n ts e m p lo y e d
m o r e th a n 100 w o r k e r s .
A l l o f t h e s e l a r g e u n it s h a d c o l l e c t i v e l y b a r g a in e d a g r e e ­
m e n ts w h ich c o v e r e d a m a jo r it y o f t h e ir p r o d u c tio n an d r e la t e d w o r k e r s .

E x p e n d itu r e s
p a id

h ou r.

severan ce

The
or

am ong

p a y m e n ts

d is m is s a l

a ll

p la n ts

averaged

e x p e n d itu r e s ,

a m ou n ted

1 .4
or

to

le s s

th a n

o n e -h a lf

cen ts

per

hour

p a id

fo r

in

1 .6

cen ts

per

p la n t

h ou r.

cent

p la n ts
T h ese

per
w ith
ex­

p e n d itu r e s e q u a le d o n e -te n th p e r c e n t o f th e in d u s t r ie s 1 p r o d u c tio n p a y r o lls a n d
h a lf o f 1 p e r c e n t o f th e g r o s s p a y r o l l in t h o s e p la n t s th a t h a d e x p e n d it u r e s f o r
severan ce

or

d is m is s a l

p a y . 17

17
Severance payments in these industries are usually made to workers with 1 year or more o f continuous service
when a plant or department is permanently closed. Some union contracts also provide for severance payments to
workers who have been in layoff status for a specified period o f tim e—usually 2 years. Additional information about
these payments w ill be presented in a BIS report on severance pay and related plans in major collective bargaining
agreements to be released later this year. Also see Wage Chronology*. Armour and C o .. 19 4 1 -6 3 (BLS Report 187,
revised 1963), and the October 1959 issue o f the Monthly Labor Review (pp. 1109-1110) for information about sever­
ance and other payments resulting from technological change.




9

C o m p o s itio n

of

P a y r o ll

H ou rs

In 1 9 6 2 , 9 2 .4 p e r c e n t o f a ll h o u r s
w o r k e r s w e r e p a id
w e r e w o r k in g h o u r s .
The
tio n , h o lid a y , s ic k le a v e , a n d o th e r ty p e s o f
w e r e e m p lo y e d b y e s t a b lis h m e n t s w ith le a v e
p r o d u c t io n a n d r e la t e d w o r k e r s ) w e r e p a id f o
d u rin g th e y e a r .

fo r w h ic h p r o d u c tio n an d r e la t e d
b a la n c e w a s d iv id e d a m o n g v a c a ­
p a id le a v e h o u r s .
W ork ers w ho
e x p e n d itu r e s ( 9 8 .4 p e r c e n t o f a ll
r a n a v e r a g e o f 21 d a y s o f l e a v e

A b o u t 87 p e r c e n t o f a ll p a id le a v e h o u r s w e r e f o r v a c a t io n s a n d h o l i ­
days.
T h e s e a c c o u n t e d f o r a n a v e r a g e o f a b o u t 18 d a y s p e r m a n y e a r o r a b o u t
1 h o u r o f p a id le is u r e t im e f o r e v e r y 1 4 h o u r s o f w o r k in g t im e .
T h e r e m a in d e r
o f th e p a id le a v e h o u r s c o n s is t e d o f s ic k le a v e a n d m ilit a r y , ju r y , w it n e s s , v o tin g ,
an d o th e r p e r s o n a l le a v e .
T h e ta b u la tio n b e lo w
sh o w s th e r a tio o f le a v e
tim e ,
b y ty p e o f le a v e , t o t o t a l h o u r s p a id f o r .

Distribution o f hours paid, for production and related workers,
meatpacking and processing industries. 1962
_____________ Percent o f —
Hours

Total hours

Total paid hours----------------------------------------

100.0

Plant hours1 ---------------------------------------------Leave hours2 — ---------------------------------------V a ca tio n ---------------------------------------------H o lid a y -----------------------------------------------S i c k ----------------------------------------------------O ther2 ............................................................

9 2 .4
7 .6
4 .2
2 .5
.9
.1

Leave hours

100.0
54 .7
32 .7
11.3
1 .4

1 For purposes o f this study, "plant" or "working" hours included hours worked
and other nonleave hours paid for including tim e not worked but spent at the plant and
tim e away from the plant but under company direction and control.
2 Includes military, jury, witness, voting, and other personal leave.
NOTE:

Because o f rounding, sums o f individual items may not equal totals.

T h e g r e a t e s t p r o p o r t i o n o f le a v e t o p la n t t i m e w a s r e p o r t e
lis h m e n t s in th e N o r t h C e n t r a l S t a t e s , a n d th e le a s t w a s r e p o r t e d
th e S o u th .
A b o u t 8 . 4 p e r c e n t o f a ll h o u r s p a id f o r b y N o r th C e n t r a l
le a v e h o u r s .
In
th e S o u th , p a id le a v e
h o u rs a cco u n te d
fo r
5. 1
to ta l h o u rs.




d by esta b ­
b y t h o s e in
p la n ts w e r e
p ercen t
of

T a b le 1.

E m p loy er Expenditures fo r Supplem entary Com pensation P r a c tic e s f o r P rod u ction and R elated W orkers,
Meatpacking and P r o c e s s in g In dustries, 1962

O

E xpenditures b y —
A ll establishm ents

E stablishm ents with expenditures 1

P r a c t ic e
P e r ce n t o f p a y r o ll

Cents p e r hour

P e r ce n t o f p a y r o ll

Cents p e r hour

G ro s s

Straighttim e

P aid fo r

Plant

2 1 .7
12 .2
6 .7
2 .4

7 .5
4 .2
2 .3
1 .2

7 .8
4 .5
2 .5
1 .3

2 0 .3
11.5
6 .4
3 .6

2 2 .0
12.5
7 .0
3 .9

.3

.3

.2

.2

•5

•6

1 2 .4
1 1 .3
1 .2

1 3 .4
12 .2
1 .2

4 .8
4 .4
•6

5 .1
4 .6
.6

1 3 .2
11.9
1 .6

14.3
12.9
1.8

G ro s s

Straighttim e

P aid fo r

P lant

P a id l e a v e ______________________________________________
V a c a t i o n __■■■-!.!■■■■■ _________ , m m m ...riu_m
m
________
H o lid a y __ ~
...................................
Sick le a v e
___ --------------------M ilita ry , ju r y , w itn ess, votin g, and
o th er p e r s o n a l le a v e ----------------------------------------------

7 .4
4 .2
2 .3
.8

7 .8
4 .4
2 .4
.9

2 0 .0
1 1 .3
6 .2
2 .2

. 1

. 1

P re m iu m p a y m e n ts _____—----------------------- — — —-------O ve rtim e, w eekend, o r h olid a y w o r k --------- -------- —
Shift d iffe r e n t ia l___________ ____— ---------------------------

4 .6
4 .2
.4

4 .8
4 .4
.4

.5

.5

1 .3

1 .4

1.5

1.6

4 .1

4 .3

14.5
7 .3
4.2
2 .9
.1

5 .0
2 .5
1. 4
1 .0
.6

5 .2
2 .6
1. 5
1.1
.6

13 .4
6 .7
3. 9
2 .7
1 .6

14.5
7 .3
4.2
2 .9
1.8

15 .9
9 .2
6 .2
.4

5 .7
3 .3
2 .9
.5

6 .0
3 .4
3 .0
.5

15.6
9 .1
8 .5
1 .4

17 .0
9 .8
9 .4
1.6

Y earen d , C h ristm a s , and oth er irre g u la r
b o n u s e s .. ____ .
. . .
—
-

--------------

L e g a lly re q u ire d in su ra n ce p r o g r a m s -----------------------S o cia l s e c u rity — ____ ______________________________
U nem ploym ent com p e n sa tio n . . . . .
W ork m en 's c o m p e n s a t io n ------------ ------------------------O t h e r * -----------------------------------------------------------------------

5 .0
2 .5
1. 4
1 .0
(3)

5 .2
2 .6
1. 5
1 .0
(3 )

1 3 .4
6 .7
3. 9
2 .7
. 1

P riv a te w e lfa r e pla ns 4 -----------------------------------------------L ife , a ccid e n t, and health in s u r a n c e --------------------P e n sio n and re tire m e n t p la n s ----------------------—-------S e v era n ce and d is m is s a l pay
.
------

5 .4
3 .1
2 .1
.1

5 .7
3 .3
2 .2
. 1

14.7
8 .5
5 .7
.4

1 D etail by p r a c t ic e , f o r establishm ents with expenditures, does not add to total b eca u se o f a change in the b a se u sed in com puting each
o f the com p on en ts.
2 P r in c ip a lly State T e m p o ra ry D isability Insurance.
3 L e s s than 0 .0 5 p e r ce n t.
4
D etail d oes not add to tota l. Included in the total a re data, not p resen ted sep a ra tely, fo r savings and th rift, and supplem ental unem ­
ploym en t b en efit p la n s.
NOTE:




B ecau se

o f r o u n d in g ,

su m s

o f in d iv id u a l it e m s

m ay

n o t e q u a l to ta ls .

T a b le 2.

D is tr ib u tio n o f P r o d u c tio n a n d R e la te d W o r k e r s b y E m p lo y e r E x p e n d itu r e s a s a P e r c e n t o f G r o s s P a y r o ll,
f o r S e le c t e d S u p p le m e n ta r y C o m p e n s a tio n P r a c t i c e s , M e a tp a c k in g a n d P r o c e s s i n g I n d u s t r ie s , 19 6 2

W orkers
in a ll
estab­
lis h ­
m ents
(percent)

P r a c t ic e

P e r ce n t o f w o rk e rs in establishm ents with—
No e x ­
pen d !tures
fo r the
p ra ctice

Expenditures f o r the p r a c tic e as a p e rce n t o f g r o s s p a y r o ll o f—
Under
1

1 and
under
2

2

3

4

5

6

7

8

9

3

4

5

6

7

8

9

10

7 .1
17.8
6 3 .6
9 .6

6 .3
19 .9
8 .6
1 .7

8 .8
1 4 .0
.9
-

13 .9
2 0 .8
-

10 .9
10.5
.
.

10 .9
1 .0
.
.

9 .8
1. 1

1 17.9

•

10.3
•
_
.

1(>
and
over

P aid le a v e —----------------------------V a ca tio n _____________ —____
H oliday _-r—
__
S ick le a v e __________________
M ilita ry , ju r y , w itn ess,
votin g, and oth er
p e r s o n a l le a v e -----------------

100.0
100.0
100.0
100.0

1 .6
2 .4
3 .7
3 8 .3

0 .7
2 .4
4 .8
2 4 .7

1 .8
10.1
18.5
2 5 .6

100.0

4 8 .8

4 9 .0

2 .2

P re m iu m paym ents __________
O v e rtim e, w eekend, o r
h olid a y w o r k _____________
Shift d iffe r e n t ia l__________

100.0

5 .9

5 .0

4 .7

11 .5

1 6 .4

19 .2

12.5

7 .0

7 .7

4 .0

2 .6

3 .3

100.0
100.0

6 .2
3 0 .9

5 .3
6 2 .8

6 .4
5 .4

14.8
.9

18.5
-

18 .8
-

9 .4
-

5 .6
-

6 .4
-

4 .7
-

1 .0
-

3 .0
-

Y e a r end, C h ristm a s , and
o th er ir r e g u la r b o n u s e s ____

100.0

6 7 .0

15 .9

10.3

1 .8

1 .7

.4

.7

.4

.7

.2

.7

.2

100.0
100.0

18 .6
2 0 .2

2 4 .2
.

14 .0
.

10.5
-

5 .9
.

1.8
.

.7

9 .3

8 .0
7 0 .7

16 .3

-

100.0
100.0

1.6

3 2 .0
5 3 .2

39. 1
3 0 .8

2 1 .0
7 .7

6 .6
5 .9

1.1
.7

.2
. 1

-

-

-

-

-

100.0

9 .2

8 .6

17 .2

9 .8

14 .2

1 2 .0

3 .3

.4

16 .2

4 .0

.4

9 .9

.2

L e g a lly re q u ired in su ran ce
p r o g r a m s 2 __________________
S o cia l s e c u r i t y ____________
U nem ploym ent c o m ­
p e n sa tio n _________________
W ork m en 's com p en sa tion ..
P riv a te w e lfa r e plans 3 ______
L ife , a ccid en t, and health
in s u r a n c e ________________
P e n sio n and retirem en t

-

6 .1

3 .7

6 .4

9. 1

100.0

6 .4

4. 1

9 .0

2 4 .8

3 4 .9

100.0

33. 1

4 .6

9 .8

2 0 .6

'2 1 .6

100.0

7 4 .6

2 3 .3

.2

-

_

.2
. 1

S e v era n ce o r d is m is s a l
1 .7

-

-

-

-

-

.2

-

-

1 The w o rk e r s in establishm ents with expenditures o f 10 p ercen t o r m o re fo r paid lea ve w e re d istribu ted as fo llo w s : 10 to 11 p ercen t— 7 .6
11 to 12 p ercen t— 6 .5 ; 12 to 13 percen t— 2 .1 ; 13 to 14 p ercen t— 0 .6 ; and 14 to 15 p ercen t— 1 .1 .
2 In clu des data fo r other le g a lly requ ired in su ra n ce, p rin cip a lly State T e m p ora ry D isa b ility In su ra n ce, not p resen ted sep arately.
3 In cludes data fo r savings and th rift, and supplem ental unem ploym ent ben efit plans not p resen ted sep a ra tely.
NOTE:




B ecau se

o f r o u n d in g ,

su m s

o f in d iv id u a l it e m s

m ay

not equal

10 0 .

T a b le 3 .

D is tr ib u tio n o f P r o d u c tio n an d R e la te d W o r k e r s b y E m p lo y e r E x p e n d itu r e s in C e n ts P e r H o u r P a id F o r !
S e le c t e d S u p p le m e n t a r y C o m p e n s a t io n P r a c t i c e s , M e a t p a c k in g a n d P r o c e s s i n g I n d u s t r ie s , 19 6 2

P r a c t ic e

W orkers
in all
e sta b ix ail­
m ents
(percent)

P e r ce n t o f w o rk e rs in establishm ents with—
No e x -

Expenditures f o r the p r a c tic e in cents p e r hour paid fo r o f—

tures
1 and
Under
under
fo r the
1
2
p ra ctice

2

4

6

8

10

12

14

16

18

20

22

24

26

28

4

6

8

10

12

14

16

18

20

22

24

26

28

30

4 .7
10.5
5 2 .5
7 .0

5 .4
1 0 .4
1 5 .0
2 .1

4 .5
8 .5
2 .0

6 .4
8 .6
.2
.3

6 .9
1 1 .6
-

7 .0
9 .6
•

4 .3
7 .8
.

2 .6
5 .3
-

6 .4
2 .9
-

8 .5
.

9 .6
-

5 .4
.2
.

17.2
-

30
and
over

P a id l e a v e _______________ _____
V a ca tio n -----------------------------H o lid a y ......................................
S ick le a v e __________________
M ilita ry , ju r y , w itn ess,
votin g, and oth er
p e r s o n a l le a v e -----------------

10 0.0
10 0.0
10 0.0
10 0.0

1.6
2 .4
3 .7
3 8 .3

0 .2
.7
2. 1
13.2

0 .5
2 .8
4 .6
5 .4

4 .9
7 .5
1 0 .0
2 1 .0

3 .8
11.3
10.3
12.7

10 0.0

4 8 .8

4 8 .0

1 .0

2 .2

-

-

-

-

-

-

-

-

-

-

-

-

-

*-

P re m iu m p a y m e n ts __________
O v e rtim e, w eekend, o r
h olid a y w o r k _____________
Shift d iffe r e n t ia l__________

100.0

5 .9

.5

1.5

6 .2

3 .5

7 .5

15.5

12 .3

16 .0

8 .2

6 .6

3 .9

4 .2

2 .2

.6

2. 1

1 .9

1.4

10 0.0
1 0 0.0

6 .2
3 0 .9

5 .2
13. 1

5 .0
1 .8

1 2 .4
.7

15 .7
-

15.7
-

10 .9
-

6 .4
-

5 .7
-

3 .7
-

1.3
-

2 .9
-

2 .4
-

1 .2
-

-

1.4
-

Y e a r end, C h ristm a s , and
o th er ir r e g u la r b on u ses

100.0

6 7 .0

-

-

1 .6

.4

-

.2

.5

.5

-

-

-

2 9 .2
.5

12 .4
“

4 .9

6 .5
•

3 .9
-

1. 1
•

1.8
•

.6
•

.8
•

.5
•

L e g a lly re q u ired in su ra n ce
p r o g r a m s 1 ---------------------------S o c ia l s e c u r it y ____________
U nem ploym ent c o m ­
pen sa tion -------------------------W ork m en 's com pensation^.
P riv a te w e lfa r e plans 2 ---------L ife , a ccid e n t, and health
in su ra n ce ------------------------P e n sion and re tire m e n t
S e v era n ce o r d is m is s a l
p a y -------------------------------------

100.0
10 0.0

-

1 0 0.0
10 0.0

1 .6

100.0

6 .1

.2
3 .8
1 6 .2 3 7 .3
6 .6

7 .7

8 .3

5 .4

1.8

•

•

2 .3

.1
2 0 .4

2 .6
6 2 .8

12.5
1 3 .2

2 3 .0
.8

. 3 15.8
2 0 .0 2 3 .6

3 9 .4
3 3 .9

2 9 .2
1 2 .4

12 .0
4 .2

2 .5
2. 1

.9
1 .9

-

.3

-

-

-

-

-

-

-

-

1.5

1.8

8 .2

4 .0

6 .1

4 .7

7 .2

5. 1

9 .0

5 .9

8 .0

8 .9

9 .7

4 .9

2 .4

2 .3

4 .3

6 .5

14 .4

16 .9

2 3 .3

9 .9

3 .8

1 .4

1.8

.5

1.1

•

“

“

7 .9

12 .0

12 .7

13 .6

10 .9

1. 1

“

•

•

-

1. 1

.6

-

•

10 0.0

6 .4

1.5

2 .6

10. 1

100.0

33. 1

2 .3

2 .1

4 .2

1 0 0.0

7 4 .6

2 2 .4

.9

.2

~

.1

•

•
•

•
•

1 Includes data f o r oth er leg a lly requ ired in su ran ce, p rin cip a lly State T em p ora ry D isa b ility Insu rance, not p rese n te d sep a ra tely.
2 Includes data f o r savings and th rift, and supplem ental unem ploym ent ben efit plans not p resen ted sep a ra tely.
N O TE:




B e c a u s e o f r o u n d in g ,

-

s u m s o f in d iv id u a l it e m s m a y n o t e q u a l 10 0 .

.2

A p p e n d ix A :

S co p e and M e th o d o f S u rvey

S cop e o f S u rv e y and In d u stry C la s s ific a tio n
T h is
p r o d u c tio n

stu d y o f

and

e m p lo y e r

r e la te d

e x p e n d itu r e s

w ork ers

covers

fo r

s u p p le m e n ta r y

a ll e s ta b lis h m e n t s

c o m p e n s a tio n

c la s s ifie d ,

in

p r a c tic e s

accordance

fo r

w ith

th e

1 9 5 7 e d i t i o n o f th e S t a n d a r d I n d u s t r i a l C l a s s i f i c a t i o n M a n u a l ( S I C ) p r e p a r e d b y B u r e a u o f th e
B u d g e t , in S I C 2 0 1 1 — m e a t p a c k i n g p l a n t s , a n d S I C 2 0 1 3 — s a u s a g e s a n d o t h e r p r e p a r e d m e a t
p ro d u c ts.
r a b b its ,

la te

E s ta b lis h m e n t s

p r im a r ily

e n g a g e d in k i l l i n g ,

and o th e r s m a ll g a m e w e r e e x c lu d e d f r o m
S u r v e y c o v e r a g e e x t e n d e d to t h e 5 0 S t a t e s
th e c a l e n d a r y e a r 1 9 6 2 , a n d w e r e l i m i t e d

to

d r e s s in g ,

p a c k in g o r c a n n in g p o u l t r y ,

th is stu d y .
a n d th e D i s t r i c t o f C o l u m b i a .
D a ta r e ­
to e m p l o y e r e x p e n d it u r e s f o r p r o d u c t io n

and r e la te d w o r k e r s .

C o lle c t io n o f D a ta

m ade
a ls o

by

D a ta w e r e c o lle c t e d p r im a r ily b y m a il q u e s tio n n a ir e .
H o w e v e r, p e r so n a l v is its w ere
B u r e a u r e p r e s e n t a t i v e s to a b o u t 15 p e r c e n t o f th e s a m p l e .
P e r s o n a l v is its w ere

m a d e to a s a m p l e o f e s t a b l i s h m e n t s

q u e s tio n n a ir e
duced

in

an d e x p la n a tio n

a p p e n d ix

sh e et,

th a t

had

not

resp on d ed

to

tw o

m a il

re q u e sts.

w h ic h

d e f i n e s th e

te rm s,

u s e d i n th e s u r v e y

on

b a s is

h ig h ly

s tr a tifie d

are

The
rep ro­

B.

S a m p lin g P r o c e d u r e
The

su rvey

w as

co n d u c te d

th e

of

a

p r o b a b ilit y

s a m p le .

D a ta w e r e o b ta in e d f r o m
e s ta b lis h m e n t s
s e le c t e d b y lo c a tio n and e m p lo y m e n t s i z e .
The
s a m p l e w a s d e s i g n e d to p e r m i t p r e s e n t a t i o n o f d a t a f o r th e i n d u s t r i e s o n a n a t i o n a l l e v e l .

In a l l

cases,

th e

lis ts

of

e s ta b lis h m e n ts

fro m

w h ic h

th e

s a m p le

w as

s e le c te d

w ere

t h o s e m a i n t a i n e d b y t h e S t a t e a g e n c i e s a d m i n i s t e r i n g th e u n e m p l o y m e n t c o m p e n s a t i o n l a w s .
T h e s e l i s t s s h o w th e e m p l o y m e n t , i n d u s t r y c l a s s i f i c a t i o n , a n d l o c a t i o n o f a l l e s t a b l i s h m e n t s
c o v e r e d b y t h o s e l a w s in e a c h S t a t e .
S in c e s o m e S ta t e s do n o t c o v e r e s t a b li s h m e n t s w ith
f e w e r t h a n f o u r e m p l o y e e s u n d e r t h e i r u n e m p l o y m e n t c o m p e n s a t i o n l a w s , th e s a m p l e d i d n o t
i n c l u d e e s t a b l i s h m e n t s in t h i s s i z e g r o u p .
e m p l o y m e n t in s u c h e s t a b l i s h m e n t s . )
W ith in

each

tim a te s

p o s s ib le

w ith

g re a te r

p r o p o r tio n

of

in d u s tr y
th e

th e

m e th o d

of

e stim a tio n

s a m p le w a s so s e le c t e d

as

to

resou rces

la r g e

(S e e

a v a ila b le .

e s ta b lis h m e n t s

T h is

th a n

of

w as

done

s m a ll.

In

y ie ld
by

fo r

th e

tr e a tm e n t

m ost

in c lu d in g

g e n e r a l,

an

o f th e

a c c u r a te

in th e

es­

s a m p le

a

e s ta b lis h m e n t1 s

c h a n c e o f s e l e c t i o n w a s r o u g h l y p r o p o r t i o n a t e to i t s e m p l o y m e n t s i z e .
T h e in itia l s o li c i t a t i o n s , e ith e r b y m a i l o r b y p e r s o n a l v i s i t , in c lu d e d s o m e 4 4 4
e s ta b lis h m e n t s .
In a d d i t i o n , p e r s o n a l v i s i t s w e r e m a d e to a b o u t 3 5 e s t a b l i s h m e n t s o u t o f
a b o u t 1 2 0 n o n r e s p o n d e n t s to t h e tw o m a i l r e q u e s t s .
In a l l , u s a b l e
r e p lie s w e r e o b ta in e d
f r o m 2 2 9 e s t a b li s h m e n t s , e m p lo y in g o v e r 8 5 ,6 0 0 p r o d u c tio n an d r e la t e d w o r k e r s .

M e th o d o f E s tim a t io n
D a t a f o r e a c h s a m p l e e s t a b l i s h m e n t w e r e w e i g h t e d in a c c o r d a n c e
of

s e l e c t i o n o f th a t e s t a b l i s h m e n t .

in

a

s iz e -in d u s t r y

ta b lis h m e n ts ,
o f v a c a tio n

i.e .,

le a v e

v a c a tio n h o u rs

c la s s ,
it w a s
and

it w a s

F o r in s ta n c e w h e r e

c o n s id e r e d as r e p r e s e n tin g

g iv e n a w e ig h t

5 0 ,0 0 0

h ou rs

le v e l o f g r o s s




of

o f p a id

5.

T h u s,

h ou rs

of

if
a ll

its e lf

th e

as

w ith

p r o b a b ilit y

of

5 w as

w e ll

as

fo u r

e s ta b lis h m e n t

c la s s e s ,

th e

out

it w o u l d

had

s e le c t e d
o th er

es­

1 ,0 0 0

h ou rs

c o n tr ib u te

5 ,0 0 0

a n d 2 5 0 , 0 0 0 t o t a l h o u r s to th e f i n a l e s t i m a t e .

A ll e s t im a t e d to ta ls d e r iv e d f r o m
th e

1 e s ta b lis h m e n t

m a n -h o u r s

in

s u c h w e ig h tin g p r o c e d u r e s w e r e f u r th e r

1 96 2 , b a se d on

13

d a ta

fr o m

th e

B u reau !s

m o n th ly

a d ju s te d

to

e m p lo y m e n t

14

s ta tis tic s
p rogram ,
in
e a c h o f fo u r
broad
e c o n o m ic
r e g i o n s . 18
F or
in s ta n c e ,
i f th e
le v e l o f e s tim a te d g r o s s
m a n -h o u rs ,
as
d e r iv e d
fr o m
th e w e ig h t in g
p roced u res,
w as
4 0 , 0 0 0 , 0 0 0 , a n d th e c o r r e s p o n d in g l e v e l o f m a n - h o u r s a s s h o w n b y th e e m p lo y m e n t s t a t is t ic s
s e r i e s w a s 4 4 , 0 0 0 , 0 0 0 , t h e t o t a l w a s m u l t i p l i e d b y 1 . 1.

T h e a d ju s t e d d a ta r e p r e s e n t a ll e s t a b l i s h m e n t s , in c lu d in g t h o s e w it h f e w e r th a n f o u r
e m p l o y e e s , in th e i n d u s t r i e s s t u d i e d .
T h e s e e s t a b lis h m e n ts a r e e s t im a te d to e m p lo y a b o u t
1 9 1 ,6 0 0 p r o d u c t io n a n d r e la t e d w o r k e r s .

R e p o r tin g

P ro b le m s

S e p a ra te d a ta b y e s ta b lis h m e n t, s u p p le m e n ta r y c o m p e n s a tio n p r a c t ic e , an d c la s s o f
e m p lo y e e (p r o d u c t io n w o r k e r ) w e r e c o l l e c t e d in m o s t c a s e s .
H o w e v e r , a ll c o m p a n ie s do n ot
k e e p r e c o r d s in s u c h m a n n e r a s t o b e a b le to f u r n i s h a c t u a l f i g u r e s in t h is d e t a il , a n d s o m e
a p p r o x im a t io n s h a d to b e a c c e p t e d .
T w o ty p e s o f e s tim a te s w e r e u s e d .
F ir s t, w h ere r e c ­
o r d s w e r e k ep t o n ly f o r a b r o a d e r g r o u p o f e m p lo y e e s th an p r o d u c t io n an d r e la t e d w o r k e r s
in th e s a m p l e e s t a b l i s h m e n t , th e p r o r a t e d s h a r e f o r th e e m p l o y e e s i n c lu d e d in th e s u r v e y
w a s e s t im a t e d o n th e b a s i s o f e m p lo y m e n t , m a n - h o u r s , o r p a y r o l l , w h ic h e v e r w a s m o s t a p ­
p r o p r ia te .
S e c o n d , u s in g c o l l a t e r a l d a ta , e s t im a t e s w e r e m a d e in c e r t a i n c a s e s w h e r e r e c ­
o r d s w e r e n o t k ep t o r w e r e s u m m a r iz e d o n ly fo r s p e c if ic p r a c t ic e s .
F o r e x a m p le , th e e x ­
p e n d it u r e s f o r h o lid a y p a y m ig h t b e e s t im a t e d b y m u lt ip ly in g th e n u m b e r o f h o u r s p a id f o r
h o lid a y le a v e b y a v e r a g e h o u r ly e a r n in g s .

It s h o u ld b e n o t e d th a t e r r o r s in th e u s e o f e s t im a t in g p r o c e d u r e s w o u ld h a v e to b e
in t h e s a m e d i r e c t i o n i n e a c h c a s e ( o v e r s t a t e m e n t o r u n d e r s t a t e m e n t o f a c t u a l v a l u e s ) t o h a v e
a c u m u la t iv e e f f e c t o n th e a c c u r a c y o f th e r e s u l t s .
A n a ly s is o f th e d a ta f r o m tw o s i m i l a r
s u r v e y s p r o v i d e d e v i d e n c e to s u p p o r t a c c e p t a n c e o f e s t i m a t e d d a t a w h e r e t h is w a s n e c e s s a r y .
T h u s , a m e t h o d o lo g ic a l s tu d y le d to th e c o n c lu s io n th a t " V i r t u a l l y n o s ig n if ic a n t d if f e r e n c e
w a s r e f l e c t e d b y th e a v e r a g e s f o r a c t u a l f i g u r e s a n d f o r a ll r e p o r t i n g e s t a b lis h m e n t s c o m ­
b i n e d ; th a t i s , th e i n c l u s i o n o f e s t i m a t e d f i g u r e s h a d o n ly a n e g l i g i b l e e f f e c t o n o v e r a l l
d a t a . " 19
A s t u d y o f th e c o m p o s i t i o n o f p a y r o l l h o u r s in m a n u fa c t u r in g c o n c l u d e d th a t " t h e
d i f f e r e n c e in l e v e l o f p a i d l e a v e b e t w e e n e s t a b l i s h m e n t s s u p p ly in g a c t u a l a n d t h o s e p r o v i d i n g
e s t i m a t e d f i g u r e s i s g e n e r a l l y s m a l l . . . w i t h i n m o s t i n d u s t r y d i v i s i o n s . " 20

D e fin itio n o f T e r m s

E x p e n d it u r e r a t i o s f o r " a l l e s t a b l i s h m e n t s " r e p r e s e n t th e e x p e n d it u r e s f o r th e s u p p l e ­
m e n t d iv id e d b y th e p a y r o l l f o r a ll e s t a b lis h m e n t s — b o t h t h o s e w it h a n d w ith o u t e x p e n d it u r e s —
w h e r e a s th e r a t i o s f o r " e s t a b l i s h m e n t s w it h e x p e n d it u r e s f o r th e p r a c t i c e " r e l a t e th e s a m e
e x p e n d it u r e s to th e p a y r o l l o f o n ly t h o s e e s t a b lis h m e n t s th a t r e p o r t e d a c t u a l e x p e n d it u r e s f o r
th e s u p p le m e n t .
T h e fo r m e r m e a s u r e c a n b e r e la t e d to p u b lis h e d d a ta fo r e n tir e in d u s tr ie s ,
s u c h a s a v e r a g e h o u r l y e a r n i n g s s h o w n i n t h e B L .S m o n t h l y s e r i e s .
T h e la t te r m e a s u r e is
u s e fu l f o r d e t e r m in in g th e a v e r a g e e x p e n d it u r e b y f i r m s th a t a c t u a l l y h a v e th e p r a c t i c e .
The
e x p e n d it u r e r a t e s r e p r e s e n t th e s a m e e x p e n d it u r e s d iv id e d b y th e c o r r e s p o n d in g m a n - h o u r s .

B o th th e e x p e n d it u r e s a n d th e p a y r o l l s
ta in to p r o d u c t io n a n d r e la t e d w o r k e r s o n ly .*

(m a n

h ou rs)

to w h ic h

th ey

are

r e la te d

p er­

T h e regions used in this study are: Northeast— Connecticut, Maine, Massachusetts, N e w Hampshire, N e w Jersey, N e w York,
Pennsylvania, R h o d e Island, a nd Vermont; South— A l a b a m a , Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky,
Louisiana, Maryland, Mississippi, North Carolina, O k l a h o m a , South Carolina, Tennessee, Texas, Virginia, a nd West Virginia; North
Central:— Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, a nd W i s ­
consin; a n d West— Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, N e w Mexico, Oregon, Utah, Washington,
a nd W y o m i n g .
*9 Problems in M e a s u r e m e n t of Expenditures o n Selected Items of Supplementary E m p l o y e e Remuneration, Manufacturing Es­
tablishments, 1953 (BLS Bulletin 1186, 1956), p. 46.
20 Composition of Payroll Hours in Manufacturing, 1958 (BLS Bulletin 1283, 1960), p. 25.




15

The
fo r m u la s :

e x p e n d it u r e

1.

r a tio s

used

in

th is

report

w ere

o b ta in e d b y

u s in g

th e

fo llo w in g

E x p e n d itu r e a s a p e r c e n t o f g r o s s p a y r o ll=
E x p e n d it u r e f o r th e p r a c t i c e
G r o s s p a y r o ll

2.

E x p e n d itu r e as a p e r c e n t o f s t r a ig h t -tim e p a y r o ll^
________ E x p e n d i t u r e f o r t h e p r a c t i c e _______
G r o s s p a y r o l l m in u s p r e m iu m p a y m e n ts
fo r o v e r t im e , w e e k e n d , h o lid a y , and
s h ift w o r k

3.

E x p e n d i t u r e in c e n t s p e r h o u r p a i d f o r =
E x p e n d it u r e f o r th e p r a c t i c e
T o t a l h o u r s p a id f o r in c lu d in g h o u r s
o f p a id le a v e

4.

E x p e n d it u r e in c e n t s p e r p la n t o r w o r k in g h o u r —
E x p e n d it u r e f o r th e p r a c t ic e
T o t a l h o u r s p a id f o r m in u s le a v e
h o u r s p a id f o r

The
(a p p e n d ix B ),

oth er
t e r m s u s e d in th is
su rvey are
d e fin e d in th e " E x p la n a t io n
w h ic h w a s g iv e n to e a c h e s t a b lis h m e n t in th e s u r v e y s a m p le .

S h e e t ,"

P r a c tic e s C o v e re d
T h e s t u d y w a s l i m i t e d to c a s h d i s b u r s e m e n t s o f e m p l o y e r s d u r in g 1 9 62 a n d th u s
e x c l u d e d a m o u n t s , s e g r e g a t e d in b o o k k e e p i n g t r a n s a c t i o n s , o v e r w h ic h th e e s t a b l i s h m e n t r e ­
t a in e d c o n t r o l .
T h e in f o r m a t io n , in f o o t n o t e s , a b o u t m e t h o d s o f c o m p u t a t io n o f v a c a t io n , h o lid a y ,
s i c k le a v e , an d p r e m iu m p a y m e n t s , an d th e in fo r m a t io n a b o u t s e v e r a n c e p a y p la n s , w a s o b ­
t a i n e d f r o m c o l l e c t i v e b a r g a i n i n g a g r e e m e n t s in t h e B u r e a u * s f i l e s .
T h e se a g re e m e n ts w e re
b e t w e e n v a r i o u s u n io n s a n d s in g le u n it a n d m u lt ip la n t c o m p a n i e s .
T h e p r a c t i c e s s t u d i e d , w h i c h a r e i t e m i z e d in t h e t a b l e s , a r e b e l i e v e d t o c o m p r i s e
th e m a jo r e le m e n t s o f s u p p le m e n t a r y c o m p e n s a t io n f o r p r o d u c t io n a n d r e la t e d w o r k e r s in th e
m e a tp a c k in g a n d p r o c e s s in g in d u s t r ie s .
S o m e o f th e o m it t e d p r a c t i c e s , h o w e v e r , m a y o c ­
c a s i o n im p o r t a n t e x p e n d it u r e s in p a r t i c u l a r e s t a b lis h m e n t s .
A m o n g th e e x c lu d e d p r a c t i c e s
w e r e s t o c k b o n u s p la n s a n d s o m e o t h e r i r r e g u l a r p a y m e n t s , an d e x p e n d it u r e s f o r s u c h fa ­
c i l i t i e s a s in -p la n t m e d i c a l c a r e , c a f e t e r i a , r e c r e a t i o n , a n d p a r k in g .




Appendix B. Questionnaire
B udget Bureau N o. 4 4 -R 1 1 2 7 . 1
A p p ro v a l ex p ires 1 2 - 3 1 -6 3

BLS 2669
(R e v . ’ 63)

U.S. DEPARTMENT OF LABOR
B U R E A U O F L A B O R STATISTICS
W ashington

Y ou r r e p ly w il l b e
h e ld in c o n f id e n c e .

25, D.C.

EXPENDITURES FOR SELECTED COMPENSATION PRACTICES
IN MANUFACTURING INDUSTRIES, 1962

1.

COMPANY IDENTIFICATION:

2.

ESTABLISHMENT IDENTIFICATION:
L o c a tio n o f esta b lis h m en t fo r w h ic h d ata are req u ested
i f d iffe re n t fr o m c o m p a n y address. A n "e s ta b lis h m e n t"
is g e n e r a lly d e fin e d as a sin g le p h y s ic a l lo c a t i o n w h ere
business is c o n d u c t e d o r w h ere s e r v ice s o r in dustrial
o p e ra tio n s are p e r fo rm e d .

PLEASE READ EXPLANATION SHEET BEFORE COM PLETING THIS FORM
3.

M AJOR PRODUCT:
W h a t w as th e p r in c ip a l p ro d u ct p r o d u c e d at th is esta b lis h m en t du rin g 1 9 6 2 ?

4.

____________________________________________

EM PLO YM EN T:
W h a t w as th e t o t a l n u m b er o f e m p lo y e e s (in c lu d in g f u l l - t i m e and p a r t - t im e ) o n th e p a y r o ll o f this e sta b lis h m en t du rin g th e
p a y p e r io d en d in g nearest th e 15th o f th e m o n th ?
P ro d u ctio n and
r e la te d w orkers

A l l e m p lo y e e s

5.

M archN

M a rch

June

June

S e p te m b e r

S e p te m b e r

D ecem b er

D ecem b er

GROSS P A Y R O L L FO R A L L EM PLOYEES:
Enter th e t o t a l o f a ll w a g e s, sa la ries, bon u ses, and co m m is s io n s fo r a ll e m p lo y e e s p r io r t o a ll p a y r o ll d e d u ctio n s in 1 96 2.
( Y o u m a y use th e d e fin it io n o f gross p a y th a t is used fo r i n c o m e ta x pu rposes o n th e W ith h o ld in g T a x F o r m . ) __________________

D ata sh o u ld b e re p o rte d in th e ite m s w h ic h
t if ie d a b o v e . I f c o m p a n y re co rd s a re not so
m a y b e m a d e o n th e basis o f e m p lo y m e n t,
a c o m b in e d fig u re ca n n o t b e fo u n d , en ter

fo l lo w o n ly fo r P R O D U C T IO N A N D RELATED W O R K E R S in th e esta blis h m en t id e n ­
m a in ta in e d , p le a s e p rora te th e c o m b in e d fig u res o n th e c o m p a n y b o o k s . P rora tion
m a n -h o u rs , p a y r o ll, o r o th e r a p p rop ria te m e a n s. I f a re a s o n a b le m e th o d o f p rora tin g
th e c o m b in e d fig u re and d o th e fo llo w in g :

F or a fig u re re la tin g t o m o re th an o n e esta blis h m en t, in d ic a t e in th e "R e m a r k s " s e c t io n th e e sta blish m en ts th a t are
in c lu d e d .
F or a fig u re th a t co v e r s m o re th a n p r o d u c tio n w orkers, p le a s e in d ic a t e in th e "R e m a r k s " s e c t io n w hat o th e r c a t e ­
g o rie s o f w orkers a re in c lu d e d .
F or a fig u re c o m b in in g d a ta fo r s e v e ra l lin e s , b ra ck e t th e lin e s in c lu d e d in th e c o m b in e d fig u re or e x p la in
"R e m a r k s " s e c t io n w h ic h lin e s a re in clu d e d .
IF N O M A N -H O U R S O R EXPENDITURES WERE INVO LVED D U R IN G 196 2 F O R A G IVEN ITE M ,
A P P R O P R IA T E SPACE.
PLEASE D O N O T LEAVE A N Y LINES BLANK.

EN TER

"n on e"

in th e

IN T H E

FOR BLS USE ONLY
Schedule
num ber




Reg.

State

City
size

SIC
code

16

E st.
size

W eight

Special
ch a ra c.

17

6.

ANNUAL P A Y R O L L EXPENDITURES AND MAN-HOURS:
A.

G ROSS PAY R O L L A N D T O T A L M A N -H O U R S :
Enter th e t o t a l o f a ll w ag es, sa la ries, bonuses, and co m m is s io n s , p rior t o a ll p a y ­
r o ll d e d u ctio n s, du rin g th e y ear.
Y o u m a y use th e d e fin itio n o f gross p a y that
is used fo r in c o m e tax purposes on th e W ith h o ld in g T a x F orm .
R e p o rt a lso th e
t o t a l nu m b er o f m a n -h ou rs fo r w h ic h th ese e m p lo y e e s r e c e iv e d this p a y . ----------------

B.

P ro d u ctio n and r e la te d w orkers
M a n -h ou rs

E xpenditures
$

PAID LEAVE:
R e p o rt p a y m en ts m a d e d ir e c t ly t o th e e m p lo y e e b y th e co m p a n y , fo r th e f o l ­
lo w in g le a v e ite m s and th e m a n -h ou rs e q u iv a le n t t o th o se p a y m en ts. If an e m ­
p l o y e e r e c e iv e d b o th p a y in li e u o f v a c a t io n o r h o lid a y le a v e and p a y fo r w ork,
rep ort h ere o n ly th e p a y m en ts in li e u o f t im e o f f and th e m a n -h o u rs o f le a v e
p a id fo r .
( I f a n e m p lo y e e d id not r e c e iv e fu ll p a y fo r an e x cu s e d a b s e n ce , r e ­
port o n ly th e m a n -h ou rs e q u iv a le n t t o th e p a y r e c e iv e d .
T o d e te r m in e m a n ­
hours e q u iv a le n t, d iv id e th e e m p lo y e e 's to ta l p a y fo r th e e x cu s e d a b s e n ce b y his
s tr a ig h t-tim e h ou rly p a y . )
1.

C.

P aid v a c a t i o n s ------------------------------------------------------------------------------------------------------------

2.

Paid s ic k le a v e

3.

Paid h o l i d a y s ---------------------------------------------------------------------------------------------------------------

---------------------------

4.

Paid m ilita ry , ju ry , w itness, v o tin g , and p erson a l le a v e (s p e c ify
ty p e o f p erson a l le a v e ) ___________________________________________________________

_________________

PREM IUMS ABOVE REG U LA R P A Y :
1.

P rem iu m p a y fo r d a ily o v e r tim e , w e e k ly o v e r t im e , and w e e k e n d and h o lid a y w ork.
R e p o rt ex p en d itu res fo r p a y a b o v e th e reg u la r s tr a ig h t-tim e rates. (T h u s, i f o v e r t im e is p a id
at t im e and o n e -h a l f, rep ort o n ly th e h a lf t im e h ere.
For th e w ork o n a p a id h o lid a y , e x ­
c lu d e th e reg u lar str a ig h t-tim e p a y fo r th e w ork p e r fo rm e d and th e h o lid a y p a y th e e m p lo y e e
w o u ld h a ve r e c e iv e d i f he ha d not w o r k e d .) ------------------------------------------------------------------------------------- --

2.

D iffe re n tia l fo r shift w ork.
R e p o rt ex p en d itu res fo r p r e m iu m p a y a b o v e th e reg u la r rates fo r d a y s h i f t . -------------------------------------

D.

7.

C H R IS T M A S ,

YE AREN D ,

A N D O TH E R IRREG U LA R BONUSES

.................. — ........................ — ................

EXPENDITURES IN ADDITION TO P A Y R O L L :
A.

B.




LEGALLY REQU IRED IN SU RAN CE:
1.

S o c i a l S e cu rity ( O l d -A g e , S urvivors, and D is a b ility I n s u r a n c e )-------------------------------- --—

2.

U n e m p lo y m e n t C o m p e n s a tio n —

------------—

a.

P aym ents t o S ta te g o v e r n m e n t

b.

P aym ents t o F e d e ra l G o v e r n m e n t ----------------------------------------------------------------------------------------------------—

------------------------------------------------------------------------------------------------------------

3.

W o rk m e n 's C o m p e n s a t i o n -----------------------------------------------------------------------------------------------------------------------------

4.

O th er, in clu d in g S ta te T e m p o ra ry D is a b ility Insurance (s p e c ify ) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

P R IV A T E W ELFARE PLANS:
E x clu d e w ork er con trib u tion s and p a y m en ts a lre a d y rep orted un d er I te m 6 -B — Paid le a v e , and
Item 7 - A — L e g a lly re q u ire d in su ra n ce.
In clu d e pa y m en ts t o funds, in su ra n ce ca rriers, or d i­
r e c t ly t o th e e m p lo y e e .
1.

L ife in su ra n ce, a c c id e n t a l d e a th and d is m e m b e rm e n t in su ra n ce, and d e a th b e n e f i t s --------------

2.

H o s p ita liza tio n , sickn ess and a c c id e n t in su ra n ce, and m e d i c a l plan s

3.

P en sion and re tire m e n t plans (in c lu d in g p a y - a s - y o u - g o p l a n s ) ------------------------------------------------------

4.

V a ca tio n s and h o lid a y funds (u n io n -m a n a g e m e n t and o t h e r ) ----------------------------------------------------------

5.

S e v e ra n ce o r d ism issa l p a y ---------------------------------------------------------------------------------------------------------------------

-----------------------------------------

6.

S u p p le m e n ta l u n e m p lo y m e n t b e n e fits

7.

S avings and th rift p l a n s ---------------------------------------------------------------------------------------------------------------------------

8.

O th er ( s p e c i f y ) __________________________________________________________________________________________ ____________________

PRO FIT SH A RIN G :

------------------------------------------------------------------------------------------------

P rofit sharing as su ch should n ot b e rep o rte d .
I n clu d e in I te m 6 -D , Bonuses, im m e d ia t e
ca sh disbursem en ts.
O ther u tiliz a tio n o f p r o fit-s h a rin g p r o ce e d s sh ou ld b e re p orted in th e
a p p rop ria te su b d iv isio n o f Ite m 7 -B .
(F or e x a m p le , p a y m en ts d e fe rre d u n til re tire m e n t
sh ou ld b e in clu d e d in Ite m 7 - B - 3 . )

18

8.

ESTABLISHMENT PRACTICES AND POLICIES FOR PRODUCTION
AND RE LATED WORKERS:
T h e f o llo w in g in fo rm a tio n is n e e d e d fo r th e in te rp re ta tio n o f th e da ta y o u h a v e re p o rte d .
N E C E SSAR Y, w ith th e e x c e p tio n o f th e q u e stio n o n v a c a tio n s .

A.

N O C O M P U T A T IO N S A R E

N u m b er o f w eek s
p a id fo r
(o r e q u iv a le n t)

PAID V A C A T IO N S :
R e p o rt th e n u m b er o f p r o d u c tio n and r e la te d w orkers w h o w ere
o n th e p a y r o ll at a n y t im e during 1962 r e c e iv in g v a c a t i o n pa y
d ir e c t ly fr o m th e c o m p a n y .
I f v a c a t io n b e n e fits w e re d e te r ­
m in e d as a p e r ce n ta g e o f th e w ork er's a nnual e a rn in gs: 2 % or
s lig h tly m o re is t o b e co n s id e re d e q u iv a le n t t o 1 w e e k 's v a c a ­
t io n ; 4 % o r s lig h tly m o re t o 2 w e e k s' v a c a t io n ; e t c .

R e p o rt
n um ber o f
w orkers

N on e -----------------------------------------------------------------------U n der 1 w e e k

----- --— - - _ _ _ _ _ _ _ _ _ _ _ _ _

1 and und er 2 w e e k s --------------------------------------------2 and un d er 3 w eek s — - — - — __________________
3 and und er 4 w e e k s --------------------------------------------4 w eek s and o v e r ---------------------- -----------------------------

B.

P A ID H O LID A YS OBSERVED D U RIN G 1962:
R e p o rt n u m b er o f p a id h o lid a y s .

C.

1.

F u ll-d a y h o lid a y s

--------------------------------------------------------------------------------------------------------------------- --------------

2.

H a lf -d a y h o lid a y s

------------------------------------------------------------------------------------------------------------------------------------

SICK LEAVE P AID BY TH E ESTABLISHMENT D IR E C T L Y T O T H E W O R K E R (N O N IN SU RED ):
D id th e esta b lis h m en t h a v e a d e fin it e and fo r m a l p a id s ic k le a v e p l a n ? ---------------------------------------

D.

YES ____

NO

YES _ _
YES
YES
YES

NO
NO
NO
NO

YES

NO

YES ____
YES

NO
NO

YES
YES

NO
NO

YES

NO

H E ALTH , A C C ID E N T , A N D LIFE IN SU RAN CE (O T H E R T H A N LEGALLY REQU IRED PLA N S):
1.

2.

D id
a.
b.
c.
d.

th e c o m p a n y fin a n c e a n y part o f p r iv a te —
L ife in su ra n ce, a c c id e n t a l d ea th and d is m e m b e rm e n t in su ra n ce, o r d e a th b e n e fits ? — ---------H o s p ita liz a tio n , m e d i c a l o r s u r g ica l in su ran ce, o r m e d i c a l p la n s? ---------------------------------------------S ick n ess and a c c id e n t in su ra n ce? — ----------— -----O th er (s p e c ify ) ________________________________________________________________________________________

If "Y E S , " d id th e w orkers c o n tr ib u te t o th e p a y m en ts fo r th e co s t o f a n y o f th e
a b o v e b e n e fits ?

E.

PENSION O R R ETIREM EN T PLANS (O T H E R T H A N LEGALLY REQU IR ED PLANS):
1.
2.

F.

---------------------------------------------------------------------------------------------------------------------------------------------

D id th e c o m p a n y fin a n c e a n y part o f a p r iv a te p e n s io n o r re tire m e n t p la n ? —
I f "Y E S , " d id th e w orkers c o n tr ib u te t o th e p a y m en ts fo r th e co s t o f th is p la n ?

----- ------— — —
--------------------------

V A C A T IO N A N D H O L ID A Y FUNDS:
D id th e c o m p a n y co n trib u te t o a u n ion o r o th e r fu n d w h ic h p r o v id e d —
1. V a c a t io n b e n e f i t s ? ----------------------------------------------------------------------------------------------------------------------------------------2. H o lid a y b e n e f i t s ? --------------------------------------------------------------------------------------

G.

C O LLE CTIVE B A R GA IN IN G AG REEM EN TS:
D id c o l l e c t i v e b a rg a in in g a g re e m e n ts c o v e r th e m a jo r it y o f th e p r o d u c tio n and r e la te d w orkers
in th e esta b lis h m e n t? — ---------------------------------------------------------------------------------------------------------------------------------------

H.

SHIFT DIFFERENTIALS:
R e p o rt th e p r e m iu m , a b o v e th e reg u la r h ou rly ra te fo r th e d a y sh ift, p a id fo r w ork o n th e 2d, 3d, and o th e r shifts.
(U se th e d e fin it io n o f shift d iffe r e n tia l g iv e n in th e e x p la n a tio n s fo r I te m 6 - C - 2 .
T h u s, i^ la t e -s h ift w orkers r e c e iv e
8 hours' p a y fo r 7 Vz hours' w ork , c o m p a r e d t o 8 hours' w ork fo r th e d a y sh ift,
rep ort t h e / 2 hours' p a y as th e d i f­
fe r e n tia l r a t e .)
S hift

N u m b er o f p r o d u c tio n and r e la te d
w orkers n o r m a lly w ork in g o n shift

R a te o f shift d iffe r e n tia l

E ven in g (2 d s h i f t ) -----------------------------------------------N ig h t (3 d s h i f t ) ---------------------------------------------------O th er ( e . g . , 4th, r e lie f , e t c ., s p e c i f y ) ----------

I.




S T A N D A R D W O RKW EEK:
H o w m a n y hours w e re th e re in th e standard re g u la rly s c h e d u le d w o rk w e e k (n o t th e hours a c t u a lly w ork ed ) fo r th e m a ­
j o r it y in e a c h o f th e fo llo w in g c a te g o r ie s ? W hat w as th e a v e r a g e n u m b er o f persons e m p lo y e d in e a c h c a t e g o r y in 1 9 6 2 ?

1.

2.

N on su p ervisory w orkers:

N u m b er o f
hours
per w eek

A vera ge
n u m b er o f
e m p lo y e e s

a.

P ro d u ctio n and r e la te d w o r k e r s ------------------------------------------------------------------------------------------

----------------------

-------------------

b.

C l e r i c a l and oth er non su pervisory w o r k e r s -----------------------------------------------------------------------

---------------------

-------------------

---------------------

-------------------

E x e cu tiv e , p r o fe s s io n a l, and su p erv isory e m p lo y e e s

----------------------------------------------------------

19

Remarks
I f a ny part o f th is rep ort in clu d e s data fo r m o re than o n e esta blis h m en t, in d ic a te th e lo c a t io n , m a jo r p rod u ct, and
t o t a l e m p lo y m e n t, as o f M a rch 15, 1962, fo r e a ch o f th ese esta blish m en ts and th e ite m s in w h ic h c o m b in e d data
w'ere en tered .

M a jo r
prod u ct

Establishm ent lo c a t io n

T o t a l nu m b er o f
e m p lo y e e s as o f
M a rch 15, 1962

Item s

If a ny lin e in Ite m 6 th rough 8 co n ta in s data fo r o th e r th an p r o d u c tio n and r e la te d w orkers, in d ic a te w h ic h oth e r
e m p lo y e e groups are in clu d e d , th e nu m b er o f such e m p lo y e e s , and th e ite m s in w h ic h c o m b in e d da ta w e re en te re d .

N u m b er

O th er e m p lo y e e groups in clu d e d

IF A N Y E S T I M A T E D D A T A A R E I N C L U D E D IN A N Y
THE

M E T H O D

O F

ESTIMATION

T H E ITEMS, I D E N T I F Y T H E I T E M A N D I N D I C A T E

.

N a m e o f a uthorizing o f f i c i a l
(P le a se print o r ty p e )

D o y o u w ant a c o p y o f th e B ureau's rep ort fo r this su rvey?




O F

Item s

T it le "

"Date"

Y es □

No □

20

EXPLANATION SHEET
BLS 2669
(R e v . '6 3 )

EXPENDITURES FOR SELECTED COMPENSATION PRACTICES
IN MANUFACTURING INDUSTRIES, 1962

3.

M ajor P rod u ct
If the establishm ent cov e re d by this rep ort is a cen tra l o ffic e o r other unit in
which there a re no m anufacturing op era tion s, lis t the p rin cip a l p rodu ct m anu fac­
tured in the establishm ents o f the com pany which are s e r v ice d by this unit.

4.

Em ploym ent
A ll em p lo y e e s.
In addition to production and related w ork ers defined below , in ­
clude the em p loyees engaged in the follow in g a ctivities: F a ctory su pervision
(above the w orking forem en le v e l), execu tive, purchasing, finance, accounting,
legal, p erson n el, ca fe te ria s, m ed ica l, p ro fe s s io n a l, tech n ical, sa le s , sa les d e ­
liv e r y (e. g . , routem en), a d vertisin g, cred it, c o lle ctio n , and in stallation and
serv icin g o f own p rod u cts, routine o ffic e functions, and fo r c e -a c c o u n t c o n s tr u c ­
tion em p loyees on your p a y ro ll engaged in con stru ction o f m a jor additions o r
alterations to the plant who are u tilized as a separate w ork fo r c e .
P roduction and related w o rk e r s . Include w orking forem en and all n on su p erv isory
w ork ers, both fu ll-tim e and p a rt-tim e , engaged in fab rica tin g, p r o ce s s in g , a s ­
sem bling, inspecting, receiv in g, storing, handling, packing, w arehousing, sh ip ­
ping, trucking, hauling, m aintenance, rep a ir, ja n itoria l, watchman s e r v ic e s ,
p rodu ct developm ent, au xilia ry production fo r p la n t s own u se (e. g . , p o w e rplant), recordk eepin g and other s e r v ic e s c lo s e ly a s socia ted with the above p r o ­
duction operation s.

5.

G ross P a y r o ll fo r A ll E m ployees
R eport the total amount paid to a ll em p loyees during 1962. Include pay fo r o v e r ­
tim e, standby tim e, h olida ys, vacations, and s ick lea ve, paid by the esta b lish ­
m ent d ire ctly to the w ork er. A ls o include co m m is s io n s , bonuses not paid reg u ­
la rly each pay p eriod (e. g . , C hristm as bonuses) and pay not earned during the
y ea r (e. g . , re troa ctiv e pay, d is m is s a l pay). A ll paym ents should be shown p r io r
to such deductions as e m p loy ees1 S ocia l S ecu rity contrib ution s, withholding ta xes,
group in su ran ce, union dues, and savings bonds.
Exclude value o f fr e e rent,
fu el, o r other paym ent in kind, m ade fo r the convenience o f the em p loyer.
You
m ay fo llo w the definition o f g ro s s pay that is used fo r in com e tax p u rposes on
the Withholding Tax F orm .

6 -A .




G ross P a y ro ll and T otal M an-H ours fo r P rod u ction and Related W orkers
R eport, fo r production and related w o rk e rs, the g ro s s p a y ro ll as defined in
Item 5.
A lso rep ort the total num ber o f m a n -h ou rs fo r which pay was given
to these w ork ers during the yea r.
(T ota l m a n -h ou rs are the m a n -h ou rs that
a re related to the g ro s s p a y .) This should include* "plan t” m an -h ou rs (i. e . , m a n ­
hours spent at the establishm ent during regu lar w orkdays as w ell as during h o li­
day and vacation p eriod s that w ere not taken), m a n -h ou rs paid fo r standby o r
reporting tim e, and the m a n -h ou rs equivalent to pay fo r tim e spent away fro m
the "p lan t" during paid h olida ys, paid vacations, etc.
To determ ine the m a n -h ou rs equivalent to the pay re ce iv e d divide the paym ent
fo r the item by the em ployee*s average h ou rly pay.
F or exam ple, if an e m ­
p loyee who is regu la rly paid $2 an hour was given $5 fo.r a day*s ab sen ce fo r
ju ry duty, the m a n-h ou rs equivalent to the pay r e ce iv e d would be 2Vz hours
(i. e . , $5 -f $2 ). S im ila rly, if an em p loyee re ce iv e d a day*s s ick leave at h alf
his regu lar rate o f pay, the m a n -h ou rs equivalent would be 4, even though the
em p loyee was absent fo r 8 hours.
Do not con vert ov ertim e
valent hours.

o r other p rem iu m paid hours

to stra ig h t-tim e eq u i­

21

6 -B .

Paid Leave
This section is intended to m ea su re the extent to which production and related
w ork ers w ere granted paid leave during the y e a r.
F or each type o f excused
absen ce listed , rep ort total paym ents m ade d ire ctly to the em ployee by the c o m ­
pany and the m an-h ou rs equivalent to the paym ents m ade. If an em p loyee did
not r e ce iv e fu ll pay fo r an excu sed absen ce, rep ort only the m a n-h ou rs equiva­
lent (as defined above) to the pay receiv ed .
1.

Paid vacation s.
R eport total vacation paym ents m ade by the com pany d i­
re ctly to the em ployee during 1962 and the total m an-hours, equivalent to
those paym ents, whether vacations w ere taken o r not.
If an em ployee
w orked during his vacation p eriod , and was given both pay fo r w ork and
pay in lieu of vacation, rep ort h ere only the paym ents in lieu o f vacation
and the m an-h ou rs equivalent to them.
If em p loyees who left the com pany w ere paid fo r unused vacation,
the paym ents m ade and the m an-h ou rs equivalent to the payment.
Exclude contributions to union o r other vacation funds.
reported in Item 7 -B -4 , Vacation and H oliday Funds.

6 -C .




rep ort

These are to be

2.

Paid sick lea ve.
R eport total sick leave paym ents m ade by the com pany
d ire ctly to the w ork ers during the year and the m a n -h ou rs equivalent to
these sick leave paym ents.
Paym ents m ade d ire ctly to the w orker under
s elf-in s u ra n ce p rov ision s of State T em p ora ry D isa bility Insurance laws
should be reported in Item 7 -A -4 , Other L egally R equired Insurance. E x ­
penditures fo r insurance p rem iu m s should be reported in Item 7 -B -2 , H o s ­
pitalization, Sickness and A ccid en t Insurance, and M edical P la n s.

3.

Paid h olid a ys.
R eport total holiday paym ents m ade by the com pany d ire ctly
to the w ork ers during the y ea r, and the total m a n-h ou rs equivalent to these
paym ents, whether the holidays w ere taken o r not. F o r w ork ers who w orked
on a paid h oliday, and receiv ed both pay fo r w ork and pay in lieu o f tim e
o ff, rep ort only the h oliday pay the w ork er would have re ce iv e d if he had
not worked and the m an-h ou rs equivalent o f this holiday pay. Exclude the
regu lar stra ig h t-tim e pay fo r w ork actually p erform ed and prem iu m pay fo r
w ork on a h oliday.
(P rem iu m pay is d es crib ed in Item 6 - C - l . )

4.

Paid m ilita ry , ju ry, w itness, voting, and p erson a l lea ve. R eport total p a y m ents m ade by the com pany, d ire ctly to the w ork ers during the yea r and the
m an-h ou rs equivalent to these paym ents fo r m ilita ry , ju ry , w itness, or
voting lea ve, o r leave granted fo r p erson a l reasons such as death in the
fam ily, tim e o ff fo r p e rfe ct attendance, etc.

P rem iu m s Above Regular Pay
In this section it is n e ce s sa ry to distinguish between the regu lar hourly rate fo r
w ork during the n orm al day hours and the extra amounts paid fo r w ork after the
regular day h ours, on holidays, etc.
Only expenditures fo r the extra pay are
to be reported h ere; exclude the portion that rep resen ts the regu lar rate.
R e­
p ort total expenditures during 1962 fo r the prem iu m s fo r each type o f w ork
listed; do not report the rate o f pay.
1.

P rem iu m pay fo r daily ov ertim e, w eekly ov ertim e, and weekend and holiday
w ork.
Include only pay above the regular h ourly rates.
Thus, if an em p loyee who re ceiv ed $ 1 .5 0 an hour fo r stra igh t-tim e was
paid an additional $0. 75 an hour as prem iu m fo r ov ertim e, the ov ertim e
expenditures reported h ere should include only the $ 0 .7 5 overtim e p r e ­
m ium .
Include prem iu m pay fo r Saturday and Sunday o r fo r 6th and
7th days as such.
F or prem iu m pay fo r holiday w ork, it is n e ce s s a ry to distinguish between
the extra pay fo r w ork on a holiday, the payment at the regu lar rate fo r
w ork p e rfo rm e d , and the holiday pay the -worker would have receiv ed if he
had not w orked.
T otal expenditures fo r h olidays which w ere w orked should
be defined as follow s to obtain expenditures for prem iu m pay:

22

Exclude regu lar stra ig h t-tim e pay fo r w ork actually p erfo rm e d . Exclude the
holiday pay the em p loyee would have r e ce iv e d if he had not w orked.
The
balance is the prem iu m fo r w ork on h olida ys, which should be reported h ere.

2.

6 -D .

EXAM PLE:

E m ployee was paid d ou b le-tim e fo r w ork on a paid holiday.
That is , he was paid his regu lar stra ig h t-tim e pay fo r w ork
p erform ed and the holiday pay he would have re ce iv e d if he had
not w orked.
In this ca se , no expenditure fo r p rem iu m pay
would be reported h ere.

EX AM PLE:

E m ployee was paid d ou b le-tim e and o n e-h a lf fo r w ork on a paid
holiday. That is , he was paid his regu lar stra ig h t-tim e pay fo r
w ork p e r fo rm e d , the h oliday pay he would have re ce iv e d if he
had not w orked, and an extra h a lf-tim e as a h oliday prem iu m .
In this ca se , only the expenditures fo r the on e-h a lf tim e should
be reported h ere.

EX AM PLE:

E m ployee was paid tr ip le -tim e fo r w ork on what would have
been a paid h oliday. O ne-third o f this pay should be reported
as expenditures fo r prem iu m pay.

EX AM PLE:

E m ployee was paid tim e -a n d -o n e -h a lf fo r w ork
holiday. That is , he would have re ce iv e d no pay
w orked.
In this ca se , the expenditures on the
should be reported as p rem iu m pay fo r w ork

on an unpaid
if he had not
on e-h a lf tim e
on a h oliday.

D ifferen tia l fo r shift w ork . Include only shift p rem iu m pay above the regu lar
h ourly rates fo r the day shift. This c o v e r s not only d ifferen tia l paid in the
fo r m o f a higher h ourly rate, but a lso sp e cia l paym ents to la te -sh ift w ork ers
fo r m ea l p eriod s and fo r any other h ours not w orked by them but paid fo r
(e. g . , if la te -sh ift w ork ers r e ce iv e 8 hours* pay fo r l l!z hours* w ork, c o m ­
pared with 8 hours* w ork fo r the day shift, total expenditures fo r the V2
hour*s pay should be reported as shift d ifferen tia l).

C h ristm as. Y earend,

and Other Irreg u la r Bonuses

R eport sp ecia l bonus paym ents m ade at the end o f the calen dar o r fis c a l y ea r or
during the C hristm as sea son .
Include only cash paym ents. Exclude regu larly
paid bonuses (such as w eekly and m onthly produ ction bonuses) and bonuses in the
fo r m o f m erch a n d ise.
7 -A .




L egally R equired Insurance
R eport the net lia b ility in cu rred by the com pany fo r the y ea r 1962 fo r em p loyee
ben efit p rogra m s that are requ ired by law. Exclude em p loyee contributions to the
paym ents. R eport the net lia b ility in cu rred fo r 1962 rather than the amount paid
during 1962. F o r exam ple, rep ort S ocia l S ecu rity tax paym ents fo r the fourth
quarter o f 1962, even though they w ere paid in the fir s t quarter o f 1963. Exclude
paym ents fo r the fourth quarter o f 1961, even though they w ere paid in the fir s t
quarter o f 1962.
1.

S ocia l S ecu rity Taxes (FICA) fo r O ld -A g e, S u rv iv ors, and D isa bility In su r­
an ce.
R eport the lia bility in cu rred fo r 19&2 rather than the amount paid
during 1962. NOTE: If you obtain your fig u res fro m your "Q u a rterly R eport
o f W ages Taxable Under the F e d e ra l Insurance Contributions A ct (fo r S ocia l
S ecu rity), " (F o rm 941), p lea se exclude amounts deducted fr o m em ployees*
pay.

2.

Unem ploym ent Com pensation.
R eport sep arately paym ents to State g o v e rn ­
m ents and to the F ed era l G overnm ent.

3.

Workmen*s Com pensation.
R eport net expenditures during the y ea r fo r in ­
surance prem iu m s (i. e., prem iu m s le s s refunds) and paym ents to State funds.
If under
total net
benefits
fir s t -a id

State laws your com pany qu alifies as a s e lf-in s u r e r , rep ort the
expenditures m ade during the yea r fo r Workmen*s Com pensation
that are requ ired by law.
Do not include costs o f m ed ica l and
s e r v ice s n orm a lly supplied by the com pany.

23

4.

7 -B .




O ther, including State T em p ora ry D isability Insurance,
Specify each other
leg a lly requ ired p rogra m fo r which expenditures w ere m ade. Include total
paym ents m ade to insurance c a r r ie r s , to State o r other funds, o r d ire ctly
to the em p loyee fo r those benefits requ ired by law which have not been a c ­
counted fo r elsew h ere in this section .
Exam ples o f item s to be included
h ere are: R ailroad retirem en t ben efits, ra ilroa d unem ploym ent in su ran ce,
and State T em p ora ry D isa bility Insurance. (T em p ora ry D isa bility Insurance
laws co v e r w ork ers in the States o f C alifornia, New J e rs e y , New Y ork, and
Rhode Island, and in the ra ilroa d industry throughout the country. Include
paym ents m ade by the establishm ent d ire ctly to em p loyees under s e lfinsurance p rovision s o f the law. W here leg a lly requ ired em p loyer expendi­
tures fo r T em p ora ry D isa bility Insurance cannot be isolated fro m em p loyer
paym ents fo r other benefits rep orted on the questionnaire, p lea se indicate
this fa ct in the "R e m a rk s" section and also the item which includes the p a y­
m ents fo r T em p ora ry D isa bility In su ra n ce .)

P riva te W elfare Plans
Exclude insurance already reported under Item 6 -B , Paid L eave, and Item 7 -A ,
L egally Required Insurance.
Exclude w ork er contributions to the paym ents.
Include com pany paym ents to funds and to plans financed through p ro fit sharing.
F o r paym ents to insurance c a r r ie r s rep ort only net expenditures (i. e . , prem iu m s
le s s rebates, refunds, and dividends re ce iv e d during the y ea r, unless they go
to pu rch ase additional insu ran ce). Include prem iu m s fo r dependents o r retired
em p loyees.
1.
2.

L ife insurance, a cciden tal death and d ism em berm en t in su ran ce, and death
ben efits, and
H ospitalization, sickn ess and a cciden t in su ran ce, and m ed ica l pla ns. R eport
net expenditures fo r in su ran ce prem iu m s and paym ents to w elfare funds.
Exclude adm inistrative e^qpenses in cu rred by the com pany and em ployee co n ­
tributions to the paym ents fo r the plan. Include paym ents fo r tra v el acciden t
insurance in Item 7 - B - l .

3.

P en sion and retirem en t plans.
R eport prem iu m s paid by the com pany to an
insurance c a r r ie r , le s s dividends o r other cre d its ; com pany paym ents into
an ir re v o c a b le trust fund; and com pany paym ents to p en sion ers under p a y a s -y o u -g o plans (i. e . , unfunded plans). Paym ents fo r past s e r v ic e lia bility
as w ell as cu rren t s e r v ice cred its should be reported. Exclude a d m in is­
trative costs in cu rred by the com pany and em p loyee contributions to the
paym ents fo r the plans.

4.

Vacation and h oliday funds.
R eport total paym ents during the y ea r
arate funds (such as union-m anagem ent funds) which a re given the
sib ility fo r disbu rsin g vacation and h oliday benefits to w ork ers.
w ork er paym ents into such funds. Company paym ents d ir e c tly to the
should be reported under Paid L eave (Item s 6 - B - l and 6 -B -3 ).

5.

Severance o r d is m is s a l pay.
This item c o v e rs plans which a re designed to
p rovid e paym ents in ca se o f lo s s o f em ploym ent. N orm ally, they p rovid e
lu m p-su m paym ents. These plans a re a lso r e fe rr e d to as term ination o r
la yoff pay plans. R eport paym ents m ade by the com pany during the y ea r,
d ire ctly to separated w ork ers o r to funds which are resp on sib le fo r making
such paym ents to separated w ork ers. Paym ents to plans which are p rim a rily
supplem ental unem ploym ent ben efit plans should be reported in Item 7 -B -6 .

6.

Supplemental unem ploym ent ben efits.
This item co v e rs plans which are
designed p rim a rily to p rovid e benefits which supplem ent leg a lly requ ired
unem ploym ent com pensation ben efits. R eport paym ents during 1962 to s e p ­
arate funds and net expenditures fo r insurance prem iu m s (i. e . , total p r e ­
m ium s le s s dividends and other refunds re ce iv e d in 1962).
Expenditures
fo r severa n ce pay should be reported in Item 7 -B -5 .

7.

Savings and thrift pla ns.
Under these plans, w ork er savings are su pple­
m ented by com pany contributions. R eport cash paym ents, m ade by the c o m ­
pany during the y ea r, to a separate fund o r to w ork er accoun ts. Exclude
in terest credited to the w ork er’ s account. A lso exclude paym ents m ade in
the fo rm o f stock and paym ents m ade under arrangem ents which a re p r i ­
m a rily pension plans. Paym ents to funds which a re p rim a rily designed to
provid e pension o r retirem en t benefits are to be reported in Item 7 - B -3 .

8.

O ther. R eport total payments m ade to in su ran ce c a r r ie r s , to union o r other
funds, o r d ire ctly to the w orker fo r those plans which have not been cov ered
elsew h ere in this section. Do not include the co st of providing such e m ­
ployee s e r v ice s as parking fa c ilitie s , in-plant m ed ica l ca re, and ca fe te ria s.
(H ow ever, d ire ct paym ents to em p loyees fo r m ea ls should be reported h ere,
unless they constitute sim ply a prem iu m fo r la te -sh ift w ork, in which ca se
they should be reported in Item 6 - C - 2 . )

to se p ­
resp o n ­
Exclude
w orker

* U.S. G O V E R N M E N T PRINTING OFFICE : 1964 0 — 735-223







BUREAU OF LABOR STATISTICS REGIONAL OFFICES