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Glossary o f c u r r e n t ly used W A G E TERM S Bulletin No. 983 UNITED STATES DEPARTMENT OF LABOR Maurice J. Tobin, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Com m issioner June 1950 Glossary of currently used W A G E TER M S B ulletin N o. 983 U N IT E D S T A T E S D E P A R T M E N T OF LAB O R M aurice J. T obin, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner For sale by the Superintendent of Documents, U. S. Government Printing Office Washington 25, D. C. - Price 15 cents Letter of Transm ittal U nited S tates D epartm ent B ureau of of L a b or , L ab or Statistics , Washington , D . C., M ay 1 5 ,1 9 5 0 . The S ec reta ry of L abor: I have the honor to transmit herewith a glossary o f wage terms in current use. The prepara tion o f the Glossary was undertaken in an effort to clarify the meaning o f the many wage and salary terms now employed in such areas as collective bargaining, wage administration, and statistical reporting. The Glossary was prepared in the Bureau’s Division o f Wage Statistics. Initial work was undertaken by Philip Arnow and carried through to completion by Charles Rubenstein. Edith M. Olsen also participated at one stage in the preparation o f the definitions. E w an C lague , Commissioner. Hon. M au rice J. T obin , Secretary of Labor. iii Preface The Glossary of Currently Used W age Terms was issued in multilithed form in December 1949. The demand for copies was so great that an early printing appeared advisable. Except for minor revisions, the present edition does not differ from the original multilithed version. A preliminary draft o f the Glossary was made available to numerous individuals in govern ment, labor, business, and universities for critical comment. Many valuable suggestions were received, and the Bureau would like to take this opportunity to thank all o f those who gave generously o f their time in reviewing the preliminary definitions. N o glossary o f this type is ever complete, hence additional suggestions will be most welcome. The present Glossary takes account o f the fact that a wide variety o f terms relating to wages are used in wage and salary administration, collective bargaining, accounting, government regulation and statistical reporting. minology has been developed. In each field, to a certain extent, special-purpose ter Many o f the terms now in use are not too clearly defined; some appear to be similar but have different meanings and cannot be readily distinguished. The variety o f terms employed stems largely from the equally wide variety o f uses to which wage and salary information is put. In collective bargaining alone, for instance, wage informa tion is used to make various kinds o f comparisons between wages in one plant and wages in other plants; to measure the trend o f wages in relation to the trend o f living costs, production, profits, or other factors; to determine the proper internal alignment o f wage structures; and for other purposes. Wage information for these various uses may be required in the form o f rates o f pay unrelated to the earnings o f individual workers, in the form o f hourly or weekly earnings o f workers regardless o f the method o f wage payment or rates o f pay, or in the form o f indexes o f wage rates or earnings. In some instances, differences in the meaning o f similar terms are a reflection o f differences in systems o f wage payment. The basic difference between the concepts o f “ wages” and “ sal aries” lies in the method o f payment. A “ wage” system is ordinarily regarded as one under which payment is made by the hour or day to workers, most o f whom do manual work; a “ salary” system is one under which payment is usually made on a weekly, semimonthly, or monthly basis to workers, most o f whom do “ white-collar” or nonmanual work o f some sort (some o f it super visory)., There are many kinds o f wage and salary systems, each giving rise to some new terminology. Some o f the terms used are purely statistical or accounting formulations, somewhat abstractly created, and frequently not found in day-to-day wage administration or collective bargaining. They may have been designed to describe specially constructed series o f data, such as the Bureau o f Labor Statistics “ Urban Wage Rates” series, or to describe a series o f estimated data like the Bureau’s “ Average Hourly Earnings Exclusive o f Overtime Payments.” Brief clarifying descriptions o f the terms most frequently used are essential to full under standing and accurate use o f wage and salary information. The compilation o f terms and definitions contained in this glossary was based largely on experience gained in the work o f the Bureau o f Labor Statistics and other government agencies. The definitions, except in a few cases where official government definitions or regulations are quoted, have been specially pre pared for this Glossary, and are designed to indicate current usage and, insofar as possible, variation in usage o f individual terms. The definitions are not presented, therefore, as “ stand ard” or “ correct” descriptions o f usage. iv GLOSSARY OF CURRENTLY USED WAGE TERMS Across-the-B oard Increase to operating time in computing the simultaneously all or most o f the employees within a plant, company, or industry. Such an increase may standard time allowed for a par ticular operation as the basis for establishing piece rates or produc tion bonuses. be granted in uniform percentage or Ann ual Earnings A general wage increase affecting cents-per-hour terms. In the former case, the absolute amount o f increase will differ among employees in ac The total amount o f compensa tion received for services by a worker during the year, including wages, cordance with their original rate salaries, and bonuses. The total annual earnings o f a worker may be levels. Advance on W ages the result o f work performed for a In general, refers to any practice by which employees are entitled to draw wages or salaries in advance o f actual work performance; e. g., wage advances to new employees, ad vances during slack seasons to work ers on commission basis o f wage payment, etc. Also applies to the single employer or a number o f em ployers in a given year. A nn ual W age or E m ploy m en t Guarantee An arrangement under which any employer guarantees his workers a minimum amount o f wages or em ployment during the year. Under payment o f wages in advance o f the the Fair Labor Standards Act, as regular pay day for services already amended in October 1949, employers rendered. may enter agreements, with certified Allowed T im e labor unions, which set a maximum Under incentive wage systems, the o f 2,240 hours o f employment in a total time allowed or set as standard specified 52-week period and which to guarantee not less than 1,840 hours complete thereof. a task or element Also relates to the amount (or not less than 46 weeks at the o f time permitted a worker for the normal number o f hours worked per care o f tools, for rest periods, or for week, but not less than 30 hours per other reasons. week) This time is added 1 and not more than 2,080 hours. Under such agreements, em ployers are relieved from the over time pay requirement for the first 12 hours o f work in a day, or 56 in a week, during the guarantee period. width o f the rate ranges and the number o f steps within each range may vary among occupations, estab lishments, and industries, but under Thereafter they are liable for over time pay at time and one-half for all hours after 40 in a week up to 2,080 are received at specified time in tervals until the maximum rate for all fully automatic plans increments the jo b is reached. Some plans combine automatic progression up to a specific point (for example, the hours, and for all hours o f work after 2,080 hours in the 52-week period. I f the 2,240-hour maximum midpoint) within the range, with discretionary increases, usually based limit is exceeded, the entire agree ment is made retroactively inef fective. {See also Guaranteed Wage Plan and Wage Advance Plan.) on some type o f merit review, up to the top o f the range. Also refers to the automatic movement from a trainee rate to a jo b classification single rate or to the minimum o f a jo b classification rate range. Apprentice R ate The schedule o f rates applicable to workers being given formal ap prenticeship training for a skilled job, in accordance with set standards* The rate schedule is usually estab lished in such a manner as to permit the gradual achievement o f the minimum journeyman rate. Average H ourly Earnings Exclusive of Overtime Paym ents In general, average hourly earn ings from which the effect o f premium payments for overtime work has been eliminated. Also, a measure o f Apprentice Scale average hourly earnings published by the Bureau o f Labor Statistics in {See Apprentice Rate.) which gross average hourly earnings Assessm ent in manufacturing are adjusted sta A charge levied by a union on each tistically to eliminate the influence o f member for a purpose not covered by the regular dues. premium overtime payments at time and one-half the regular rate o f pay Assessments may be either one-time or periodic after 40 hours o f work a week. charges. The adjustment does not compensate for A u to m a tic Progression other forms o f overtime payment nor for other types o f premium pay. A policy by which rates o f pay o f workers in jobs with established rate {See ranges are increased automatically Hourly Earnings and Gross Average and Hourly Earnings.) at set time intervals. The 2 also Average Straight-Time Average S traight-T im e H ourly Earnings Base Rate The amount o f pay for a unit o f time; e. g., hour, day, week, month, or year, exclusive o f premium pay for overtime or other premium pay ments. Under incentive wage sys tems, other than piece-rate systems, the term may refer to the rate to be Average wages earned per hour excluding premium overtime pay ments and shift differentials. Com missions, production bonuses, and cost-of-living bonuses are included, but nonproduction bonuses (such as Christmas, profit-sharing, paid for production at “ standard,” before the addition o f extra earnings for production above standard; more attend ance, and service), tips, and allow ances for room or board or other generally, under piece-rate or other incentive systems, the term may payments in kind are excluded. This concept is used by the Bureau o f Labor Statistics in virtually all refer to the amount guaranteed per hour or other time period. (See also Guaranteed Rate.) o f its occupational wage rate studies and by numerous private organiza tions engaged in wage survey work. This definition, however, is not Bonus A broad term which refers to any payment above regular or base rates. It includes extra payments for night work, hazardous work, regular at tendance, and overtime, as well as any annual or regular allotment such as a Christmas bonus. It also refers to extra earnings o f incentive work ers above the base or guaranteed rate. Specific forms o f bonuses are usually preceded by descriptive terms universally accepted. There appears to be general agreement on the elimination o f overtime premium payments; but differences are found as to the treatment o f shift dif ferentials and the monetary value o f some other wage and related practices. (See also Average Hourly Earnings Exclusive o f Overtime Payments and Gross Average Hourly Earnings.) such as “ Christmas bonus,” “ at tendance Back Pay bonus,” etc. (See also Nonproduction Bonus and Produc tion Bonus.) Delayed payment o f part o f the wages for a particular period o f Bootleg W ages time, arising from arbitration awards, grievance procedure regarding par The wages above those at the ticular rates, errors in computation o f pay, or current legal interpretation prevailing rate or the union scale which an employer may pay in a o f wage legislation. active Pay.) employees. (See also Retro tight labor market to hold or attract 3 M ay also refer to wages at rates below the prevailing or union rate which an employee may accept in order to obtain employ ment. {See also Kick-back.) o f more than 1 year, or beyond the termination date o f the agreement, whichever occurs sooner. C lothing Allowance C all-B ack Pay The pay (usually An allowance granted by an at premium employer to those o f his employees rates) received by a worker called back to duty after completing his who are required to buy special regular assignment. Union clothing, such as uniforms and safety garments, in connection with the agree ments frequently provide for pay for performance o f their work. a minimum number o f hours for C om m ission Earnings workers called back to duty, usually Compensation to sales personnel based on a percentage o f value o f sales. Commission earnings may be in addition to a guaranteed salary at premium rates. C a ll-In Pay The amount o f pay guaranteed to a worker who is called to work on a day on which he otherwise would not have reported, and finds no work available or is not given a full or half shift's employment. Call-in pay may be higher than the amount o f re porting pay, and may be provided for at premium rates on specified premium days, such as Saturdays, Sundays, and holidays. Reporting Pay.) or may constitute total pay. Sales personnel on straight commission usually have a fixed drawing account which is balanced against actually realized commission earnings at specified periods. {See also Draw ing Account.) C o m m o n Labor R ate In general, the hourly rate paid to {See also adult males for physical or manual labor o f a general character and Check-O ff simple nature, requiring no special training or skill and requiring little The practice whereby the em ployer, by agreement with the union, or no previous experience. regularly withholds from the wages establishments, this rate may apply In some o f his union workers assessments and to a common labor crew or pool who dues, and transmits these funds to the union. Under the Labor Man are assigned to specific tasks as required, while in other establish agement Relations Act o f 1947, the ments it may refer to the rate paid employer must receive from each employee a written assignment which for specific unskilled tasks, such as sweeping, hand trucking, loading, shall not be irrevocable for a period and unloading. 4 C o m m u n ity W age Survey Contributory Pension Plan A general term used to describe a survey designed to reveal the struc ture and level o f wages within a particular geographical area for a given industry or, more typically, for broad categories o f industry. A pension plan for the benefit o f the employee under which the cost is shared by both the employer and the employee. (See also Noncon tributory Pension Plan.) C o st-o f-L iv in g A d ju stm en t Com parable R ate An adjustment o f wages or salaries in accordance with changes in the cost o f living as measured by an appropriate index o f the retail prices o f goods and services that enter into the consumption o f low- or moder A rate paid for work agreed or determined to be comparable within a plant or within an area. Com parisons o f this type may be limited to virtually identical occupations within a specific industry or be ate-income families. Limitations as to the extent o f wage adjustment are broadened to include occupations with similar characteristics in various industries. Such comparisons are sometimes provided for. Escalator Clause.) (See also used in wage negotiations and wage determinations. Daily Rate Com petitive W age For a worker hired on a daily rate basis, the rate o f pay is normally expressed as a rate for a standard number o f work hours per day. Like the hourly rate, the quotation o f a daily rate normally excludes premiums that may be paid for lateshift work or overtime hours, as In economic theory, the wage within a given labor market required to balance the demand for and supply o f labor o f a particular type. More popularly, the wage level a company must maintain to compete with other firms in the same labor market for particular types o f labor. well as bonuses for special conditions Also used o f work or for other reasons unrelated directly to production. in the sense o f the wage level that is required by a company to maintain a competitive price position with Danger Zone Bonus other firms in the same industry. A bonus paid to employees who are required to work in an area where Contract W age P aym ent An arrangement worker contracts specific jo b for whereby to a perform either the material or machinery is the particularly a 880479°— 50------2 S u ch manufacturing industry and in the amount o f compensation. h azard ou s. bonuses are common in the explosives predetermined 5 a period o f time. The amount o f the payment to any one employee is usually related to the amount o f his regular wages and his length o f work o f longshoremen. During the war, special payments were made to members of the merchant marine as war-risk bonuses. service. Deadheading Pay D ism issal Pay A special payment to a transporta tion worker who is required to report for work at a point far removed {See Dismissal Compensation.) Disposable In com e from his home terminal. “ Dead heading” refers to the extra time {See Spendable Earnings tf«</TakeHome Pay.) consumed in traveling to and from the place o f work. Doubleheading Pay Refers to the extra compensation Dead T im e given the railroad engineer where Time lost by a worker because o f lack o f materials, a break-down o f machinery, or from other causes beyond his control. An incentive worker usually receives his guaran teed or base rate during this period. ( See also Down Time.) very steep grades require the use o f more than one engine for some distance. The specific rules regulat ing payment under these conditions are found in the various union agreements. Downgrading Dead W ork The reassignment o f workers to A term used in mining, referring tasks with lower skill requirements to nonproductive work, including and lower rates o f pay. the removal o f rock, debris, and resorted to when a marked change in other waste matter from the product products or in methods o f produc mined. Usually tion occurs and a lesser degree o f skill in work performance is re D ism issal C om pensation quired; also applied in reductions o f A specific payment, in addition to force which require reassignments regular wages, which is given an o f workers to jobs o f lower skills. employee upon permanent termina Downgrading was used by tion o f employment through no fault establishments after World War II o f his own. when conversion from war work to The dismissal compensa some tion, or wage, may be paid in one the manufacture o f civilian goods sum at the time employment is required less skilled operations. also Upgrading.) terminated, or it may be spread over 6 {See Down T im e establishment. In the case o f a skilled worker, the rate may be slightly less than or equivalent to the minimum jo b rate; it may also be identical with the probationary rate. The entrance rate for unskilled work ers may be synonymous with the minimum plant rate, and may be increased after designated time in Brief periods o f idleness while waiting for repair, set-up, or adjust ment o f machinery. (See also Dead Time.) Drawing Account A weekly allowance given to sales personnel working on a straight com mission basis in retail and wholesale trade. The drawing account tervals. (See also Minimum plant rate and Probationary Rate.) is balanced against total commission earnings at specified periods, in some cases 6 months or more. The anticipated earning power o f sales personnel is usually the determining Equal Pay for Equal W ork The payment o f equal compensa tion to all employees within an establishment or other unit perform ing the same kind and amount o f work, regardless o f race, sex, or other factor in establishing the amount o f the drawing account. (See also Commission Earnings.) characteristics workers. D ual Pay A system o f wage payment used by railroads under which employees are paid on a mileage or hours basis. A standard mileage is defined as a basic day, usually 8 hours, for the purpose o f determining the daily of the individual Escalator Clause A provision in a union agreement allowing for the adjustment o f wages in accordance with specified changes in the cost o f living as measured by an appropriate index, or in the price o f materials used in production, or rate. Wages are computed on the number o f hours or miles, whichever yields the greater compensation to the employee. in accordance with some other agreed-upon criterion, such as pro Earnings duction index or price o f product. (See also Cost-of-Living Adjustment.) The total remuneration o f a worker or group o f workers for services Expected Earning Level rendered, including wages, overtime (See Target.) pay, bonuses, commissions, etc. Expense Account Entrance R ate The hourly rate which a worker An account o f expenses paid or receives upon being hired into an incurred by an employee in connec 7 Fixed Sh ift tion with the performance o f his services, usually covering such items as transportation, meals, and lodging while in a travel status and away from home. These expenses are reimbursable to the employee; pay ment is usually made after the The term applied to the type o f shift on which a group o f workers maintains the same schedule o f hours week after week rather than rotating time-of-day assignments periodically with other groups. expense account has been audited. (See also Rotat ing Shift, Shift, Split Shift, and Swing Shift.) Explosive Trucking Bonus A bonus paid to workers in the explosives manufacturing industry who are engaged in moving highly Flat R ate (A.uto Repair) dangerous explosives by means o f hand trucks. auto repair shops. The flat rate refers to the labor charge made for a repair jo b and is usually based on the F in ish -G o -H o m e Basis of Pay standard time specified in an official A system o f remuneration used in automobile repair manual. The auto mechanic receives a percentage o f the total labor cost, which is com puted at a rate which allows a margin o f profit for the employer. I f the actual time spent on a jo b is greater than the standard allowance, the actual time is the determining factor in computing the labor cost. A practice under which employees are permitted to go home after com pleting a specific work assignment generally considered a standard day’s work. An example o f the “ finishgo-home” basis o f pay may be found in nonferrous smelters. Charging the furnace in less than 8 hours permits more time for the actual Floor Under W ages smelting process and workers are (See Minimum Wage.) encouraged to complete charging in less than 8 hours but are paid for a full shift. Fringe Benefit Similar standards for a day’s work are set up in unloading o f railroad cars facilities, in or other shake-out A benefit supplemental to wages shipping work received by workers, at a cost to in employers. Among these benefits, commonly designated as “ fringe,” foundries, and in other industries. Essentially, this may be considered are paid holidays, paid vacations, an pensions, incentive generally method involves o f pay; making it costly facilities available for use as quickly tion, as possible. “ fringe” and insurance benefits (life, accident, health, hospitaliza 8 and m ed ica l). was widely The term applied to benefits o f this type during World War II in connection with the wage stabilization program. industry basis for comprehensive groups o f manufacturing and non manufacturing industries by the Bureau o f Labor Statistics in its employment and pay-roll reporting program. {Seealso Average StraightTime Hourly Earnings and Average Hourly Earnings Exclusive o f Over time Payments.) F u ll-T im e Earnings Earnings received for working a regular schedule o f hours over a stated period o f time. Full-time earnings may be defined in terms o f a day, week, month, or other period. Gross Average W eekly Earnings F u ll-T im e W orker Rate A measure o f weekly wages typic ally obtained by dividing total com A rate paid to a full-time or regular worker, as distinguished from that pensation prior to pay-roll deductions paid to a part-time or temporary worker. for taxes, social security payments, or other purposes for a given weekly pay-roll period (or, by the use o f a conversion factor for a period o f longer duration) by total employ G arnish m ent of W ages The practice o f legally attaching the wages o f a debtor and collecting ment or, alternatively, by multiply ing average hourly earnings by average weekly hours. Computed monthly on an industry basis for comprehensive groups o f manu facturing and nonmanufacturing in dustries by the Bureau o f Labor Statistics in its employment and pay-roll reporting program. the debt directly from his employer. G oing Rate {See Prevailing Rate.) Gross Average Hourly Earnings As used by the Bureau o f Labor Statistics, a measure o f hourly wages obtained by dividing total compensa Guaranteed Rate tion prior to pay-roll deduction for taxes, social security, or other pur The rate o f pay guaranteed to an poses for a given pay-roll period by incentive worker. man-hours worked plus hours paid for sick leave, holidays, and vaca production bonus worker, this rate tions. the base rate. In the case o f a may be equivalent to or higher than Total compensation includes When earnings at premium payments for overtime and late shift work, as well as recurrent production and nonproduction bo bring earnings up to the guaranteed nuses. levels. incentive are lower than the guar anteed rates, allowances are made to Computed monthly on an 9 {See also Base Rate.) G uaranteed W age Plan An arrangement, written or un written, by which an employer guarantees or assures to some or all o f his employees, in advance, a definite period o f employment or a specific amount o f wages. In a study conducted by the Bureau o f Labor Statistics in 1945 and 1946, Under the Federal Fair Labor Standards Act, rates below the legal minimum wage may be established for handicapped workers in accord ance with regulations issued pursuant to section 14 o f the Act. {See also Substandard Rate.) H istorical W age Differential {See Wage Differential.) this term was defined to include guarantees o f employment for at least 3 months a year or an equiv alent amount o f wages. ( See also Annual Wage or Employment Guar Holiday Pay Pay to workers, typically at regular rates, for holidays not worked. For work on such days payments antee and Wage Advance Plan.) are often provided at premium rates. Guarantee on Trial Rate H ourly R ate A minimum guaranteed rate that remains in effect during the time that trial runs are made on new work and a trial or temporary piece rate is in effect. The level o f these guaranteed rates is usually higher than plant minimum jo b or base rates and is related to past earnings o f the individual or the group o f workers affected. Typically, the rate o f pay ex pressed in terms o f cents-per-hour, usually thought o f as applying to manual and other workers remu nerated on a time basis. Hourly rates are normally basic rates; i. e., exclusive o f extra payments for shift work and overtime, and exclusive o f production or nonproduction bonus In order to pro vide an inducement to the worker p aym en ts. to return on an incentive basis as “ hourly H ow ev er, soon as possible, the trial rate is terpreted to mean “ earned rate per rate” is the term sometimes in frequently set at 95 or 98 percent o f hour” under incentive methods o f the average earnings o f the worker for a given number o f weeks prior wage payment. Im provem ent Factor to the trial run. {See also Temporary A Rate.) term used in an agreement negotiated by the United Automo H andicapped W orker R ate bile Workers (CIO) with the General A lower rate o f pay for a worker whose efficiency is impaired because Motors Corporation in M ay 1948, describing an annual increase in o f physical or mental handicaps. wages o f a stipulated amount during 10 Intercity Differential the life o f the agreement. The im provement factor is designed to enable the wage earner to share in the benefits resulting from increased productivity in the economy. Costof-living adjustments were also pro Differences in prevailing wage levels among a group o f cities. Usually such differences are meas ured by rates for comparable occupa tions and industries from city to city, but more general measures are sometimes employed. In particular negotiations, historical relationship vided for in this contract. Incentive R ate The term “ incentive rate” may apply to a piece rate, a rate o f pay in rates between various cities may per unit for production above a pre determined minimum standard o f output, a ratio o f management-labor sharing o f labor cost savings resulting instances, the rank o f a particular city with respect to other cities may be o f more significance than the percentage relationships among the from the operation o f an incentive cities over a period o f years. be o f prime importance. system, etc. The incentive plan may contain as an integral part o f its operation one or more kinds o f special rates which also influence the In such Job Classification An arrangement o f jobs in an establishment or industry into a series o f categories, each o f which is based on progressively higher re quirements in terms o f skill, experi ence, training, and similar considera tions. Essentially, this process re sults in a rough grouping o f occupa tions where distinctions between jobs are clear and sharp. Usually job descriptions are used as a basis for worker’s pay: a guaranteed rate, a base rate, a down time rate, special rates for try-out on experimental work, etc. Individual R ate In many establishments, there is no formal wage structure (either job rates or rate ranges), and the rates paid are known as individual rates. classification. These rates may be based in a loose {See also Job Evalua tion and Labor Grade.) way upon the job being done, or may Job Description be related to the training, ability, skill, and bargaining power o f the individual worker. A written statement listing the The term “ in elements o f a particular jo b dividual rate” is also used to indicate occupation. the rate actually received by the individual worker, as distinguished Job Evaluation or from the job rate shown in the rate The evaluation or rating o f jobs structure maintained by an employer. to determine their position in a job 11 hierarchy. The evaluation may be achieved through the assignment o f points or the use o f some other systematic rating method for essen tial jo b requirements such as skill, experience, and responsibility. Job evaluation is widely used in the establishment o f wage rate structures and in the elimination o f wage in equalities. It is always applied to jobs rather than the qualities o f individuals in the jobs. (See also skilled trade or craft, who has com pleted an apprenticeship or equiv alent training. Typically, such rate is a minimum rate for the trade in a particular area or a union scale; some journeymen, however, may receive rates above or below the union scale. The latter are gener ally paid to certain employees (super annuated or handicapped) by special arrangement with the respective unions. Job Classification and Labor Grade.) K ick-back Job Rate (See Minimum Standard Rate.) job rate and A practice by which an employer or his representative arranges with his workers for a return o f a part o f parel industries, the unions have their wages, established by union contract or by law, as a condition o f employment. A Federal anti-kick back law was enacted in 1934, prohibiting kick-backs by workers employed on public construction work or on any work financed wholly or in part by Federal funds. (See also Bootleg Wages.) achieved a relatively high degree o f Labor Grade Joint Rate Setting The process o f establishing rates jointly by representatives o f manage ment and labor. The extent o f labor participation in the actual process o f rate setting varies from industry to industry and from establishment to establishment. In some o f the ap participation through formal joint organizational machinery. One o f a series o f rate steps (single At the rate or rate ranges) in the wage rate other extreme are situations where structure o f an establishment. Labor management alone sets rates, but labor through its grievance grades are an outcome typically o f ma some form o f jo b evaluation in which chinery has the right to “ protest” various occupational classifications specific rates, and to adjust them in are rated on the basis o f such labor conference with management if the requirements grievance is found to have validity. as skill, experience* training, working conditions, Journeym an Rate etc. The rate o f pay for a journeyman The occupations are then grouped into a limited number o f steps or or a fully qualified worker in a grades, so that occupations o f ap- 12 proximately equal" value” or" worth” fall into the same grade. ( See also Job Classification and Job Evaluation. Learner Rate the term is also associated with the practice o f permitting employees to earn a full week’s wages by making up for lost time. The rate or, more frequently, the schedule o f rates applicable to workers inexperienced in the job for M erit Increase which they are employed, during performance or service. This is widely used as a method o f advancing their period o f training. The sched ule o f rates is usually established in such a manner as to permit the gradual achievement o f the mini mum job rate as the learner develops competence on the job. Under the Fair Labor Standards Act, an em ployer may be permitted to employ learners in a specified plant at a wage lower than the legal minimum, whenever employment o f learners at such lower rate is believed necessary to prevent curtailment o f employ ment opportunities. Hearings are held by the Administrator to de termine under what limitations as to wages, time, number, proportion, and length o f service, special cer tificates authorizing the employment o f learners at subminimum rates may be issued to an employer for certain An increase in the wage rate o f an individual worker on the basis o f workers within established ranges, sometimes with a provision rate in conjunction for automatic increases over part o f the range. Merit increases may be administered informally at the discretion o f the employer, or provision may exist for the periodic review o f the per formance o f employees for granting o f merit increases. {See also Wage Review.) M in im u m Rate There are several kinds o f mini mum rates, those that are applicable to specific jobs and those that are applicable to entire establishments. Normally, those that are applicable to specific jobs are called minimum job rates and those applicable to entire occupations in his plant. establishments are called minimum Loose Rate plant rates. In addition, there are several varieties o f guaranteed mini {See Runaway Rate.) mum rates, usually applicable to M a k e-u p Pay individual jobs under wage incentive systems. Minimum job Allowances given by employers to rate.— The mini piece workers to make up differences between actual piece-work earnings mum rate o f pay for experienced and earnings at guaranteed rates or workers on a given job. statutory minimum rates. mum rate may be either a single rate 880479°—50-----3 At times, 13 The mini or the minimum o f a rate range. Union rates or union scales are usually minimum job rates. Nor mally, entrance rates, probationary N oncontributory Pension Plan rates, or learner rates fall below the cost is borne by the employer. {See also Contributory Pension Plan.) A pension plan for the benefit o f the employee under which the entire minimum job rates. Minimum plant rate.— Normally N onproduction Bonus the minimum rate o f pay for ex perienced workers in the lowest- A bonus that depends on factors other than the output o f an in dividual worker or a group o f work paid job in the establishment. The term may, however, mean different things in plants with differently organized wage structures. ers. Profit-sharing, safety, attend ance, waste elimination, and Christ In some plants, the term refers to the rate for the lowest-paid production job, although lower rates may exist for such jobs as common labor or janitor. mas bonuses are examples o f non production bonuses. {See also Bo nus and Production Bonus.) O ccupational Rate In some plants, there are different minimum rates for men and women workers, or for white and Negro workers. In some plants, the socalled minimum rate may actually be a hiring or probationary rate. {See also Entrance Rate.) Rates (single or ranges) that are designated for particular occupations in an establishment, area, or in dustry. Generally, these rates are formal rates, and are paid to any worker who is qualified to perform the work o f the occupation. M in im u m W age O ccupational W age R elationship Rates o f wages, established legally or through collective bargaining, below which workers cannot be The relationship o f wage rates The Fair Labor Stand among occupations representative of ards Act establishes the legal mini a range o f duties, skills, and re mum wage to be paid to workers engaged in interstate commerce, sponsibilities. employed. a community or region, or on an unless such workers are covered by State laws which provide for higher minimum wages. Minimum rates are also established through col lective bargaining and are applicable to individual plants, or to groupings o f plants within an area or an industry. Relationships may be analyzed within an individual plant, industry basis. O n e-M a n Car Differential In the transportation industry, a premium paid to streetcar operators who operate vehicles without the assistance o f conductors. 14 O u t-o f-L in e Rate P art-T im e Worker Rate (See Runaway Rate.) Overtim e Prem ium Pay Payment o f wages at a premium rate for time worked beyond the regular hours o f employment estab lished by union agreement, employer or industry practice, or law. In the United States, payment is typically made at one and a half times the regular rate o f pay. Higher premium rates are found to a limited extent. (See also Premium Rate.) A rate paid to a part-time, tem porary, or contingent worker, as distinguished from that paid to a regular or full-time worker. Parttime rates may be equal to, or lower or higher than, regular or full-time rates. During periods o f ample labor supply, part-time rates are usually lower, but may become equivalent or higher when the labor market is tight because o f keen competition for such help. Retail trade estab lishments and restaurants are among the industries dependent on parttime or temporary help to carry on Pace Setter their normal functions. A worker who is better than average on a particular job, and whose production is used by the employer as a standard for measur ing the amount o f work which can be done in a given period o f time. Paym ent by Result Package A term used to describe a com bination o f benefits received by workers as a result o f collective bargaining. A package may include wage increases and other benefits o f monetary value, such as insurance, paid holidays, paid vacations, and sick leave. The term generally Pay-R oll Deduction A deduction from an employee's gross earnings made by his employer for social security, unemployment insurance, Federal income tax, local government pay-roll tax, union dues, implies that during the bargaining special process the parties agreed that a union assessments, group insurance premiums, etc. specified amount o f increase was to P ay-R oll Period be applied partly to rates o f pay and The established frequency with partly to the financing o f the related which workers are paid in a particular benefits. Refers to any method o f wage payment where the amount o f the wage depends upon the amount of output. The term applies to straight piecework or other types o f incentive systems. The production to which wages are related may be the output o f an individual worker or the output o f a group o f workers. 15 Perm anent Piece R ate industry, regardless o f the time to which the rate applies. Thus, hourly rated workers may be paid weekly, biweekly, semi-monthly, or monthly. A rate established for a piece work jo b calculated to yield an appropriate level o f earnings and based, generally, on experience with trial rates for the jo b assignment; such rates are expected to persist until basic conditions change. Similarly, workers on an annual or monthly rate basis may be paid weekly; the pay-roll period in this case is a week. The minimum frequency o f pay-roll periods is often specified in State legislation. Perquisite P ay-R oll Tax Relates to the furnishing by em ployers o f food, lodging, and other payments in kind to workers in addition to monetary compensation. Taxes levied by the Government and paid by employers, employees, or both, creating funds from which employees receive retirement, unem ployment, or other benefits. Also Thus, waitresses are generally al lowed a certain number o f meals, depending upon the ‘ length o f the may refer to employer contributions, based on fixed percentages o f total pay roll, to union or other private health and welfare and vacation funds, and to pay-roll taxes levied by cities. shift; board and lodging are usually supplied to workers in lumber camps and in some cases to farm labor. Piece Rate Under an incentive wage system, the predetermined amount paid to a worker for each unit o f output. Peg Point An occupational rate for a key unskilled, semiskilled, or skilled job, establishing differentials within the wage structure. Term first used by the National War Labor Board in its decision on wages in the cotton textile industry in 1945 (see 21 Rates may be based on individual or group output. Rate.) (See also Incentive Piece Scale (See Price List.) W. L. B. 882), and thereafter applied P. M . to the wage structure through col lective bargaining. An incentive payment to sales personnel in retail trade to push and Penalty R ate sell items on which the margin o f An extra rate which is paid for profit is large, to dispose o f slow hazardous jobs, late-shift work, Sun moving items, or to clear out old day and holiday work, or for over stock. time. money,” and “ push money.” (See also Premium Rate.) 16 Also referred to as “ premium P ortal-to-P ortal Pay In mining, the computation o f hours worked and paid for so as to include travel time between the mine entry and the place o f work at the start and completion o f the work shift. Also applies to payments made by other industries for time spent on company premises in getting to and from the working places. P rem iu m M oney found in an area in numerous estab lishments, the geographic unit may be narrow as, for example, the metropolitan area. I f labor has to be induced to migrate to the area where the prevailing rate is to be set, and no local labor is available, the geographic unit upon which de termination is made may be a locality far removed from the site under consideration; at times, addi tional pay may be provided to induce labor to move. Such situa (See P. M .) tions frequently arise under DavisBacon Act determinations. Under P rem iu m Rate Public Contracts Act determinations, prevailing minimum wage determina An extra rate paid for overtime, work on late shifts, holiday and Sunday work, or for work in par ticularly dangerous or unpleasant occupations. The term is also used in reference to extra rates paid to employees, usually because o f ex ceptional ability or skill in the occupation. (See also Overtime Pre mium Pay, Penalty Rate, and Skill Differential.) Typically, the predominant or more common rate paid to a group o f tions usually refer to an entire industry in the United States as a whole. Another set o f variations in the application o f the term “ prevailing rate” arises from differences in industry limits used as a reference. Thus, certain occupations are found only in metalworking establishments, and prevailing rates for engine lathe operators in an area, for example, are in effect rates found in that portion o f industry that employs workers, usually with reference to such workers, whether or not the specific occupations in an industry or limits are specified in the determina Prevailing Rate labor market area. tion. In actual appli Other occupations, on the cation, the term “ prevailing rate” is other hand, may be found in all used in a variety o f ways. industries in an area. Some o f Frequently, variation in the con the variations arise from differences in the concept o f the geographic unit or industry that is pertinent to a particular situation. For example, where comparable occupations are cept o f prevailing rate arises from differences in rate structure in particular occupations and in bar gaining conditions. 17 Thus, in the building trades and in some o f the ment on a new jo b or in a new plant. metal trades, there is a tendency toward single rate formation in an area, even though bargaining is con ducted with reference to a minimum rate only, or a union scale. The probationary rate is usually lower than the minimum rate for the jo b (in which case it is usually indistinguishable from Another source o f variation in the use o f prevailing rate concept arises sometimes be the minimum rate also Entrance Rate.) rates. Production Bonus o f these terms hiring applicable to the individual job. {See from the use o f quantitative or statistical descriptions o f prevailing Some the rate for the jo b ), although it may are rather loosely conceived as, for example, “ going rate,” when refer A bonus payment directly related to the output o f an individual worker ence is made to the rate received by a substantial number o f workers, possibly the modal rate. In some situations, notably locality wage surveys, measures o f prevailing rates relate to the arithmetic mean or to the median. or a group o f workers. Usually paid for production in excess o f a quota or for the completion o f a job in less than standard time. The bonus may be a flat amount paid for all production above standard or it may increase in various proportions as production increases. {See also Bo nus and Nonproduction Bonus.) In view o f these variations, the use o f the term “ prevailing rate” requires specific mention o f the area, occupation, industry, rate, and type o f quantitative measure involved to have definite meaning. Protest Price In some industries, notably pot tery and women’s dresses, piece rates on new work are determined on the Price List basis o f previously developed time A listing o f piece prices or rates to elements. A worker may not be be paid by a company or a group o f able to earn an appropriate amount companies making similar products* under such estimated time allowances In unionized establishments, price and piece rates. lists are established typically upon enough, he enters a protest but con I f he does not earn agreement between the union and tinues to work at these rates until a the employer. review is made and new rates are set. Probationary Rate The rate o f pay for an experienced protest or to the time the worker was started on the new work. {See also Temporary Rate.) and otherwise qualified worker dur ing the initial period o f his employ Any adjustment in rates is usually retroactive to the time o f 18 Push M oney specific rates between a set minimum {See P. M .) and a set maximum rate ($1.60-A rate, $1.55— B rate, $1.50— C rate, $1.45— D rate, $1.40— E rate). In the latter case, the individual A-BC-D-E-points within the range may actually represent different jobs or classes or grades within jobs rather Race Differential Differentials in rates paid to workers o f different races in the same occupation for similar or identical duties and responsibilities. than parts o f the same range. R ate C u ttin g Term generally refers to reduc tion by employers o f established incentive or time rates in the M ay the requirements for the rates related to job content rather than to the merit and ability o f the individual absence o f changes affecting jo b content. This would be the case, for instance, if worker. also refer to rate A rate range, like a single rate, is reductions in cases in which tech usually established for experienced workers, and the minimum rate o f nological or other changes have altered jo b content and methods, or in which incentive rates were set “ too high” in terms o f earnings the range is not intended for workers who are not at all experienced in the jo b . levels for similar work in the industry A complete and separate rate structure below the minimum rate of the range, including learner or ap prenticeship schedules, is frequently established for workers not fully qualified for the full jo b rates. Automatic progression from the minimum to the maximum o f the range after specified periods o f service is common. or area. R ate Range A range o f rates for the same job , with the specific rates o f individual workers within the range determined by merit, length o f service, or a combination o f various concepts o f merit and length o f service. Rate ranges may be set up with various R ate Setting degrees o f formality and more or less rigid rules respecting the position The process o f establishing rates within the range at which new work through joint union-management ac ers are hired and the rules concerning tion or by management alone. their nonautomatic involve use o f jo b evaluation and, advancement to the maximum rate. in the case o f incentive plans, time and motion study. Job evaluation is automatic or May The range may be expressed as a spread from a set minimum to a set used primarily for setting time rates maximum rate (e. g., a spread o f or incentive base rates in proper $1.40 to $1.60) or as a series o f relation to each other, taking into 19 account for each job such factors as skill, responsibility, and working conditions. Incentive rate-setting involves the establishment o f a sions. In the United States, atten tion has tended to focus on dif ferentials that prevail between the South and the North. Such dif production standard by time or other study methods. Rate setting may also involve comparison with ferences have particular significance rates for similar work in the industry or local labor market. Real W ages chased with money wages; i. e., real wages are an expression o f the pur power portant examples are: hosiery, tex tiles, lumber, furniture, and cotton garments. Real wages are represented by the goods and services typically con sumed by workers that can be pur chasing in individual industries that are found in the South and in other parts o f the United States. Im of money wages. There are also signifi cant differences in wage levels among other regions in the United States (New England, Pacific Coast, Middle West, etc.). Regular R ate Over periods o f time, changes in real wages are obtained by dividing indexes o f money wages by an ap propriate index o f consumers’ prices. Thus, if wages increase by 5 percent and consumers’ prices by 10 percent, real wages have declined by 4.5 The rate o f pay received by a worker for all hours o f work per formed at straight-time rates. Also refers to the rate o f pay at which a worker is predominantly engaged when he is subject to assignments at varying rates. percent (105-s-llOX 100=95.5, the new level o f real wages). The Reporting Pay Bureau o f Labor Statistics maintains The amount o f pay guaranteed to a series on Gross Average Weekly a worker who reports for work at Earnings in Current and 1939 Dol the usual hour, without notification lars, which indicates changes in the to the contrary, and finds no work level o f weekly earnings prior to and available or is not given a full shift’s after employment. adjustment for changes. in Typically, pay for a purchasing power as determined from minimum number o f hours at regular the Bureau’s Consumers’ Price Index, rate is provided for in union agree the year 1939 having been selected ments. (See also Call-in-Pay.) for the base period. Retroactive Pay Regional Differential Delayed payment o f part o f the Differences in wage levels among wages for a particular period, re several broad geographic sub-divi sulting from a retroactive applica 20 tion o f wage increases arising from wage negotiations. (See also Back Pay.) The system o f rotating the crews where two or more shifts are worked in an establishment. This system and the American Federation o f Musicians, although the term is not the official designation for such pay ments. In these cases, the applica tion o f the term stems, at least in part, from the fact that employer contributions are based on tons o f coal mined and number o f musical is designed to distribute day and night work on an equal basis among records produced. For some types o f professional the various workers. workers, such as musicians, singers, and writers, payment fo> work is frequently based on a percentage on R otatin g Shift In some in dustries, where 7-day operations are common, the work schedules may be arranged so that workers are given different days off in each week. (See also Fixed Shift, Shift, Split Shift, and Swing Shift.) sales o f the final product (book, R ound of W age Increases A piece rate or other incentive rate which results in earnings that are out o f line with earnings in other article, or song). Such payments are referred to as royalties. Runaway Rate A term widely used after the end o f World War II to describe broad wage movements affecting large segments o f the economy. Thus, the “ first round” o f postwar wage increases is identified largely with the period between VJ-day and the autumn o f 1946; the “ second round” with 1947, etc. Actually, these wage movements exhibited great internal diversity and were in no jobs o f similar requirements. This situation may occur because o f changed technology or from faulty rate setting and may cause earnings to reach levels beyond normal expectations. Salary and C om m ission (See Commission Earnings.) sense uniform among industries or occupational groups or even, in Salary Rate For workers hired on a weekly, many cases, among establishments monthly, or annual basis, the rate o f in the same industry. pay is normally expressed in terms R oyalty o f dollars per week, month, or year. In relation to wages, the pay ments to union health and welfare Workers employed on a monthly or annual salary basis may actually be funds, paid such as those benefiting members o f the United Mine Workers monthly, semi-monthly, more frequently. 21 Usually, or t he length o f the workweek is specified and a policy is established for com pensation in the event that longer or shorter hours than a full week are worked. Severance Pay (2) a percentage over earnings at the regular day shift rates; (3) shorter hours with full daily pay, or (4) both shorter hours and additional mone tary compensation above full daily pay. Single R ate CSee Dismissal Compensation.) A rate which is the same for all Sex Differential workers on the same jo b or in the Differences in rates paid to men and women in the same occupation same jo b classification, and under which the individual worker on a for work o f comparable quality and jo b receives the same rate during the quantity. Where quality or quan tity o f output differs as between men job. and women, differences in pay are not necessarily differentials based on sex. entire time that he is holding the The single rate usually is paid to experienced workers in jobs re quiring varying degress o f skill. A term applied to a work period where two or more groups o f workers are employed at different hours during the operating time o f an establishment; e. g., an establish ment may operate two shifts o f 8 Learners or apprentices may be paid according to rate schedules which start below the single rate and permit the worker to achieve the full job rate over a period o f time. In the less skilled jobs, the rates for begin ners and experienced workers may be identical because the period o f time necessary to become familiar hours each or 16 hours a day. with all phases o f the work is rel S h ift In some industries, the term “ trick” or atively short. “ tour” is used instead o f “ shift.” may occasionally be paid above or Individual workers {See also Fixed Shift, Rotating Shift, below the single rate for special Split Shift, and Swing Shift.) reasons, but such payments are re garded as exceptions to the usual Sh ift Differential rule. The definition o f a “ jo b ” or Added compensation to workers “ classification” may be very narrow who are employed on a work schedule or very broad, and the single rate other daytime may therefore be applicable to as schedule. Shift differentials may be paid in a number o f ways: (1) a few as one or two workers doing than the regular identical jobs, or as many as several fixed amount per hour above the thousands performing a number o f rate paid on the regular day shift; essentially different jobs which are 22 nevertheless regarded the same rate of pay. as meriting available for private spending or saving, but this usage would include certain types o f deductions (e. g., union dues) as spendable earnings. “ Net spendable average weekly earn ings” is a series developed by the Bureau o f Labor Statistics in which Federal social security and income Skill Differential Differences in wage rates paid to workers engaged in occupations re quiring varying levels o f skill in work performance. M ay also refer to differentials in rates o f workers in taxes are deducted from gross aver the same occupation, higher rates being paid to those who usually age weekly earnings for workers with specified number o f dependents. {See also Take-Home Pay.) perform the more complex tasks. {See also Premium Rate.) Split Shift Sound and Tested Going Rate The daily working time that is not continuous but split into two or more working periods. “ Split shifts” are usually found in industries such as local transportation, which is {See Wage Rate Bracket.) Special Perm it Rate A rate paid to a union worker affected by peaks or rush periods at various times o f the day. {See also Fixed Shift, Rotating Shift, Shift, and Swing Shift.) who comes from another city and is employed under a special permit because o f local labor shortages. The rate received is the same as that paid to a permanent worker in the area. In the unionized brewery industry, this term refers to the rates paid to special workers who are temporarily employed during Standard Rate A basic rate o f pay established for an occupation in a plant, industry, or community through collective bargaining, company regulation, or the peak summer period. These rates are usually lower than those by law. M ay also refer to estab received by “ regular” union workers. lished rates for services rendered in a community in connection with Spendable Earnings maintenance and repair o f auto In general, the money earnings o f mobiles, appliances, buildings, etc. Starting Rate workers less various amounts de ducted for taxes and other purposes {See Entrance Rate.) from pay rolls; hence, “ spendable Style Developm ent Rate earnings” may be identified broadly with “ take home” earnings. Similar to temporary, experimen Term tal, or trial rate. also used in the sense o f the earnings 23 The term is used in the hosiery manufacturing industry efficiency is impaired because o f physical or mental handicaps. The term is also used to refer to rates below Federal or State minimum and relates to work on new styles for which no piece rates have yet been set. Generally, hourly rates are paid on such work. Usually these hourly rates average close to wage levels or below prevailing levels for an occupation in an industry or the workers* previous piece-rate earnings. The style development area. (See also Handicapped Worker Rate.) rates are in effect for a specified time Superannuated Rate and are then replaced by new piece A rate o f pay below the prevailing rates. level for a worker above a certain S u b m in im u m Rate age. A rate below the minimum estab lished for an occupation, establish lowed in union agreements. At times, the agreement requires the employment o f a certain ratio o f ment, industry, or area by union agreement, law, or policy. older workers at superannuated rates. Superannuated workers with long service are sometimes retained in an employed status because o f their economic need; also, their services are sometimes sought during periods o f labor shortages. Such rates may be paid to learners and to substandard, superannuated, pro bationary, or special permit workers. Subsistence Allowance A payment to a worker for ex penses covering meals, lodging, and transportation while in a traveling status for his employer. Such rates are frequently al Supplem ents to W ages and Salaries Such al lowances may be based on a fixed As defined by the U. S. Depart amount for meals and lodging plus ment other expenditures or on the actual income purposes: “ Supplements to expenses Wages and Salaries is the monetary incurred for all items. of Commerce for national There are also cases where institu compensation o f employees not com tional workers (e. g., nurses) receive a subsistence allowance for living monly regarded as wages and salaries. outside the institution, since free for social insurance, employer con It consists o f employer contributions room and board are incorporated tributions to private pension and into the wage structure. welfare funds, compensation for injuries, directors* fees, pay o f the Substandard Rate A rate o f pay below the prevailing military reserve, and a few other minor items o f labor income.** Term or standard level for a worker whose sometimes used more broadly to 24 refer to all supplements to basic wage or salary rates. Swing Sh ift An extra or “ swing” shift o f workers required in establishments where continuous or seven-day opera tions are scheduled, to provide the other crews with days off. The “ swing crew” usually rotates among all o f the other shifts. Also refers to the practice o f one o f three rotating shifts staying on the jo b through two shift periods, thus “ swinging” the shifts into their new assignments. (See also Fixed Shift, Rotating Shift, Shift, and Split Shift.) T a k e-H o m e Pay Typically, earnings for a pay-roll period, less required deductions. (See also Spendable Earnings.) Target In piece-rate systems, a rate is set with the objective o f making it pos sible for a worker to earn, on the average, 10, 15, or some other per centage above the base rate. rates are established. These rates are later revised and are made per manent when found to be satis factory. Sometimes they are called “ experimental” or “ trial” rates. These are alternate designations in various industries. (See also Guar antee on Trial Rate and Protest Price.) T ip A gratuity given by a customer or patron in recognition o f satisfactory personal service or through custom. Tips are considered as compensation by the Bureau o f Internal Revenue, thus constituting taxable income. A substantial proportion o f the earnings o f some categories o f work ers in hotels, restaurants, steam ships, and barber and beauty shops is realized from tips. Tonnage Rate Pay for a unit o f work applicable to incentive workers, and common in such industries as coal mining and basic iron and steel, where output for important categories o f workers can be measured on a tonnage basis. The Tool M aintenance T im e expected earnings to which the piece rate is geared is referred to as a target. (See Allowed Time.) Trainee Tem porary Rate The A rate set tentatively on new term “ trainee” applies to workers who receive formal training under piece rates in some industries for occupations requiring a limited degree o f skill. The training may and it is not known whether or not include some classroom work. the initial rates can be properly set trainee differs from a learner in that for the tasks involved, temporary a learner does not receive formal work. When new work is started 25 A training but learns his jo b through Urban Wage Rate Index actual perform ance, supervision. under Series maintained by the Bureau o f Labor Statistics, beginning in 1943, to measure the movement o f wage The time spent traveling to and rates in urban areas in manufactur Travel T im e from a designated point and place ing, major manufacturing industry o f work. Such travel includes portalto-portal in mining, deadheading on groups, and selected nonmanufac turing industries. railroads, Vacation Pay and out-of-town work performed by building tradesmen, Payment for a period o f time mechanics, musicians, etc. U nion Rate An hourly rate, usually a single rate for an occupation or trade, received by workers for vacation purposes. The time period fre quently varies with length o f service. During busy times or in a tight labor established by agreement reached market, workers may be given the through collective bargaining. A union rate or scale is usually the minimum rate that may be paid to qualified persons in the jo b ; there are usually no restrictions prohibit ing the employer from paying higher option o f accepting vacation pay in lieu o f time ofF. rates. U nion Scale {See Union Rate.) W age Advance Plan Advancing o f wages in work weeks o f short duration under plans obligating employers to maintain weekly wages up to a specified mini mum level. Wages must be repaid during later weeks in which regular or longer hours are worked. Upgrading No The process o f a more rapid than repayment is required unless the employer provides sufficient work to normal advancement o f workers to enable the advance to be repaid. jobs having greater skill require (See also Annual Wage or Employ ments and commanding higher rates ment Guarantee and Guaranteed Wage Plan.) o f pay. This measure is largely resorted to when experienced help is W age Arbitration difficult to secure, as was the case during World War II, and when The new work o f long or permanent dur referral of wage disputes between employers and unions to an ation is undertaken requiring higher arbitrator or board o f arbitration. degrees o f skill on the part o f the The arbitrator's award or decision is customarily binding upon both par- labor force. {See also Downgrading.) 26 ties. Arbitration is usually volun tary, both parties having agreed to refer the dispute to a third party for a d e c i s i o n . ( See also W a g e Mediation.) Wage inequalities can be considered either on an intraplant or interplant basis. The elimination o f wage inequalities is often accomplished through jo b review or the adoption o f job evaluation plans. During World War II, the concept was a major basis upon which the National War Labor Board was authorized to permit exceptions from the general stabilization o f wages. The “ wage W age A ssignm ent A voluntary transfer by a worker o f some o f his earned wages or com missions to another party or parties. Such assignments may be used for payment o f purchased goods and debts, purchase o f savings bonds, and payment o f union dues and assessments. rate bracket” procedure was an application o f the inequality policy. (See also Wage Inequity.) W age Inequity W age D eterm ination An unjust relationship between The process o f establishing wage rates and wage structures through collective bargaining, arbitration, individual employer determination, the wage rates o f workers or o f job classifications. The concept was a major basis upon which the National War Labor Board was authorized to permit exceptions from the general stabilization o f wages during World War II. (See also Wage Inequality.) etc. The process may involve com parisons with rates paid by other firms, the use o f job evaluation, or other techniques. The term is also applied to findings, orders, or deci sions o f wage regulatory bodies such as minimum wage boards. W age Leadership The influence exercised by the wage settlements reached by a large firm or group o f firms on other settle ments in an industry or labor market. W age Differential “ Follow-the-leader” Differences in wages among occu pations, industries, or areas. ments His appear to wage be adjust particularly torical wage differentials, to which significant in some industries. frequent reference is made, are those which have existed over long periods also relate to a policy adopted by a firm o f maintaining a position o f wage o f time. leadership in an industry or area. W age Inequality W age Level An unjust disparity between rates M ay o f workers whose duties and re The level o f wages received by workers in an occupation, establish sponsibilities are similar or identical. ment, 27 industry, or area. Wage levels are generally indicated average rates. by W age M ediation The entrance o f a disinterested third party into a wage dispute in an effort to effect a settlement. Unlike arbitration, the mediator merely makes recommendations and assists the disputant parties in reaching a settlement. This is the principal function o f the Federal Mediation and Conciliation Service. {See also Wage Rate Bracket In the administration o f wartime wage stabilization policy by the National War Labor Board, the term referred to a range o f “ sound and tested going rates” for an occu pation in a labor market area. The minimum o f the range or bracket, the most important point in actual wage administration, was frequently set at the level o f the first substantial cluster o f rates in a wage distribu tion. The minimum o f the bracket was the point up to which the War Wage Arbitration.) W age Policy A formalized practice o f an estab lishment or industry relating to elements o f wages, such as wage rate scales, shift differentials, overtime provisions, nonproduction bonuses, automatic increments, paid holidays, paid vacations, pensions, and insur ance benefits. In a broader sense, criteria for wage adjustments are stated in terms o f objectives (e. g., stabilization, rising standard o f liv Labor Board would permit adjust ments in interplant inequity cases. W age Reopening A provision or clause in a union agreement permitting the question o f wages to be reopened for negotia tion before the expiration o f the agreement. W age Review A periodic review o f the per ing, etc.) or in terms o f prevailing formance o f workers to determine or economic conditions. select those who deserve merit increases or advancement to higher W age Rate p ay i n g j o b s . Increase.) The monetary compensation for a {See also Merit given unit o f time or effort by which W age and Salary A d m in istration a worker’s pay is calculated. There are several kinds o f wage rates, related to the system o f wage pay The managing and supervision o f ment used in an establishment. The principal kinds are hourly rates, the wage structure o f an employer. daily rates, weekly rates, monthly and salary adjustments, according rates, to established policies, and the analysis o f data such as cost o f living, annual rates, and It involves the application o f wage various kinds o f incentive rates. 28 area and interregional variations in rates o f pay; (5) methods o f pay; prices, wage and salary surveys, which have a direct bearing on the wage structure and are used in wage negotiations. M ay also involve the establishment o f new rates through jo b evaluation, job analysis, and time studies. (6) provisions for lunch and rest periods; and (7) supplementary benefits, such as vacations, insurance, sick leave, and holiday provisions. W age Survey W age and Salary Receipts income purposes: “ Wage and Salary Receipts is equal to wages and A general term used to describe a wage study based on the collection, tabulation, and analysis o f original data. Wage surveys are o f many types, and the kinds o f data col salaries less employee contributions lected for social insurance, except that retroactive wages are counted when which the surveys are put. As defined by the U. S. Depart ment o f Commerce for national depend upon W ages and Salaries paid rather than when earned.” As defined by the U. S. Depart ment o f Commerce for national W age Structure The sum total o f the various elements and considerations that characterize a specific rate schedule in an establishment, industry, area, or country as a whole. Typical o f such elements are: (1) relationship between rates o f occupations o f dif ferent skills; (2) relationship between rates o f pay for men, women, and income purposes: “ Wages and Sal aries consists o f the monetary re muneration o f employees commonly regarded as wages and salaries, inclusive o f executives* compensa tion, commissions, tips, and bonuses, and o f payments in kind which represent income to the recipients.** More generally, this term refers to remuneration to individuals for pro workers o f different races and color in the same occupations; (3) provi ductive effort. sions for extra pay for late shift W aitin g T im e work, overtime, hazardous, unpleas ant, or unhealthful work; (4) inter the uses to (See Dead Time.) 29 Index Page Account, drawing....................................... 7 Account, expense........................................ Page 7 Comparable rate......................................... Compensation, dismissal........................... 5 6 Across-the-board-increase......................... 1 Competitive wage...................................... 5 Adjustment, cost o f living........................ 5 Contract wage payment............................ 5 Administration, wage and salary............. 28 Contributory pension plan....................... 5 Advance on wages...................................... 1 Cost-of-living adjustment......................... 5 Allowance, clothing.................................... 4 Cutting, rate............................................... 19 Allowance, subsistence.............................. 24 Daily rate.................................................... 5 Allowed time............................................... 1 Danger zone bonus..................................... 5 Annual earnings......................................... 1 Deadheading p ay....................................... 6 Annual wage or employment guarantee. 1 Dead time.................................................... 6 Apprentice rate.......................................... 2 Dead work................................................... 6 Apprentice scale......................................... Arbitration, wage....................................... 2 26 Deduction, pay-roll.................................... 15 Description, j o b .......................................... 11 Assessment.................................................. 2 Determination, wage................................. 27 Assignment, wage...................................... 27 Differential, historical wage..................... 10 Automatic progression.............................. 2 Differential, intercity................................. 11 Differential, one-man car.......................... 14 19 20 Average hourly earnings, exclusive o f overtime payments................................ Average straight-time hourly earnings. .. 2 3 Differential, race........................................ Differential, regional.................................. Back p ay ..................................................... 3 Differential, sex.......................................... 22 Base rate..................................................... 3 Differential, shift........................................ 22 Benefit, fringe............................................. 8 Differential, skill........................................ 23 Bonus............................................................ Bonus, danger zone.................................... Bonus, explosive trucking......................... 3 5 8 Differential, wage....................................... Dismissal compensation............................ 27 6 Dismissal p ay .............................................. 6 Bonus, nonproduction............................... 14 Disposable income...................................... 6 Bonus, production...................................... 18 Doubleheading pay.................................... 6 Bootleg wages............................................. 3 Down-grading............................................. 6 7 Bracket, wage rate..................................... 28 Down time. ................................................ Call-back p ay .............................................. 4 Drawing account........................................ 7 Call-in p ay.................................................. 4 Dual p ay..................................................... 7 Check-off..................................................... 4 Earning level, expected............................. 7 Classification, j o b ....................................... 11 Earnings...................................................... 7 Clause, escalator......................................... 7 Earnings, annual........................................ 1 Clothing allowance..................................... 4 Earnings, average hourly, exclusive o f Commission earnings................................. 4 overtime payments................................ 2 Commission, salary and............................ 21 Earnings, average straight-time hourly.. 3 Common labor rate.................................... 4 Earnings, commission................................ 4 Community wage survey.......................... 5 Earnings, full-time..................................... 9 31 Page Earnings, gross average hourly.............. Earnings, gross average weekly............. . Page 9 9 Labor grade................................................. 12 Leadership, wage........................................ 27 23 7 7 7 11 7 7 Learner rate................................................... 13 Level, wage........... ...................................... 27 Minimum rate............................................... Going rate................................................. . 8 10 8 8 8 8 8 9 9 9 9 Grade, labor.............................................. Gross average hourly earnings............... . Gross average weekly earnings.............. . . 12 Guarantee, annual wage or employment Earnings, spendable................................. . Entrance rate........................................... . Equal pay for equal work....................... . Escalator clause....................................... . Evaluation, j o b ........................................ . Expected earning level............................ . Expense account...................................... Explosive trucking bonus....................... . Factor, improvement............................... . Finish-go-home basis o f p ay................... . Fixed shift................................................. . Flat rate (auto repair)............................ . Floor under wages................................... Fringe benefit........................................... . Full-time earnings.................................... . Full-time worker rate.............................. List, price....................................................... 18 Loose rate.................................... Make-up p ay................................................. Mediation, wage......................................... Merit increase. .............................................. Minimum wage. ......................................... 13 28 13 13 14 Money, premium........................................ 17 Money, push............................................... 19 Noncontributory pension plan................. 14 Nonproduction bonus................................ 14 Occupational rate......................................... 14 Occupational wage relationship............... 14 One-man car differential........................... 14 Out-of-line rate.............................................. 15 Overtime premium p ay................................ 15 Pacesetter..................................................... Package.......................................................... 15 15 1 Part-time worker rate.................................. Pay, back..................................................... 15 3 Guaranteed rate....................................... 9 Pay, call-back............................................. 4 Guaranteed wage plan............................ . 10 Pay, call-in.................................................. 4 10 Pay, deadheading....................................... 6 . 10 . 10 Pay, dismissal............................................. 6 Pay, doubleheading.................................... 6 . . . 10 Pay, dual..................................................... 7 10 10 Pay, equal for equal work......................... 7 Pay, finish-go-home basis o f ..................... 8 Incentive rate........................................... . 11 Pay, holiday................................................ 10 Garnishment o f wages............................. Guarantee on trial rate........................... . Handicapped worker rate....................... Historical wage differential..................... Holiday p ay .............................................. Hourly rate............................................... Improvement factor................................ 9 9 Income, disposable................................... 6 1 Increase, merit......................................... . 13 Individual rate......................................... . 11 Inequality, wage...................................... . 27 Inequity, wage.......................................... . 27 Intercity differential................................ . 11 Job classification...................................... . 11 Job description......................................... . 11 Job evaluation.......................................... . 11 Job rate..................................................... . 12 Joint rate setting...................................... . 12 Pay, make-up................................................ Increase, across-the-board...................... Payment by result........................................ 15 Payment, contract wage........................... 5 Pay, overtime premium............................... 15 Journeyman rate...................................... . 12 Pay, vacation.............................................. . 12 Peg point........................................................ Kick-back.................................................. Pay, portal-to-portal.................................... 17 Pay, reporting............................................. 20 Pay, retroactive.......................................... 20 Pay-roll deduction........................................ 15 Pay-roll period.............................................. 15 Pay-roll tax.................................................... Pay, severance............................................ Pay, take-home............................................. 32 13 16 22 25 26 16 Page Page Penalty rate................................................... 16 Rate, out-of-line......................................... Pension plan, contributory....................... 5 Rate, part-time worker............................. 15 Pension plan, noncontributory................... 14 Rate, penalty.............................................. 16 Period, pay-roll............................................. 15 Rate, permanent piece............................... 16 Permanent piece rate................................... 16 16 17 17 15 Perquisite....................................................... 16 Piece rate....................................................... 16 Rate, piece.................................................. Rate, premium........................................... Rate, prevailing.......................................... 16 Rate, probationary.................................... 18 Rate, regular............................................... 20 21 Piece scale...................................................... Plan, wage advance................................... 26 P. M ............................................................... 16 Rate, runaway............................................ Point, peg...................................................... 16 Rate range................................................... 19 Rate, salary................................................. 21 19 Policy, wage................................................ 28 Portal-to-portal p ay..................................... 17 Rate setting................................................ Premium m oney........................................... 17 Rate setting, jo in t...................................... 12 Premium rate................................................ 17 Rate, single................................................. 22 Prevailing rate.............................................. 17 Rate, sound and tested going................... 23 Pricelist......................................................... 18 Rate, special permit................................... 23 Price, protest................................................. 18 Rate, standard............................................ 23 Probationary rate......................................... 18 Rate, starting.............................................. 23 Production bonus......................................... 18 Rate, style development........................... 23 Progression, automatic.............................. 2 Rate, subminimum..................................... 24 Protest price.................................................. 18 Rate, substandard...................................... 24 Push m oney................................................... 19 Rate, superannuated.................................. 24 Race differential........................................... 19 Rate, temporary......................................... 25 Range, rate.................................................... Rate, apprentice......................................... 19 2 Rate, tonnage............................................. Rate, union................................................. 25 26 Rate, base................................................... Rate, common labor.................................. 3 4 Rate, wage.................................................. 28 Rate, comparable....................................... 5 Real wages.................................................. Receipts, wage and salary........................ 20 29 Rate cu ttin g ................................................. 19 Regional differential.................................. 20 Rate, daily.................................................. 5 Regular rate................................................ 20 Rate, entrance............................................ 7 Reopening, wage........................................ 28 Rate, flat (auto repair).............................. 8 Reporting p ay ............................................. 20 Rate, full-time worker............................... 9 Result, payment b y ................................... 15 Rate, going.................................................. 9 Retroactive p ay .......................................... 20 Rate, guaranteed........................................ 9 Review, wage.............................................. 28 Rate, guarantee on trial............................ 10 Rotating shift............................................. 21 Rate, handicapped worker........................ 10 Round o f wage increases........................... 21 21 Rate, hourly................................................ 10 R oyalty........................................................ Rate, incentive........................................... 11 Runaway rate............................................. 21 Rate, individual.......................................... 11 Salaries, wages and.................................... 29 Rate, jo b ...................................................... 12 Salary and commission.............................. 21 Rate, journeyman...................................... 12 Salary rate.................................................. 21 Rate, learner............................................... 13 Scale, apprentice........................................ 2 Rate, loose................................................... 13 Scale, piece.................................................. 16 Rate, minimum.......................................... 13 Scale, union................................................. 26 Rate, occupational..................................... 14 Setter, pace................................................. 15 33 Page Setting, rate................................................ 19 Severance pay............................................. 22 Page Travel time........... ............... Union rate................................................... 26 26 Sex differential............................................ 22 Shift............................................................. 22 Union scale........... ...................................... Upgrading.................................................... 26 26 26 Shift differential......................................... 22 Urban wage rate index.............................. Shift, fixed................................................... 8 Vacation p ay ............................................... 26 Shift, rotating............................................. 21 Wage advance plan.................................... 26 Shift, split................................................... Shift, swing................................................. 23 25 Wage arbitration........................................ 26 Wage assignment........................................ 27 Single rate................................................... 22 Wage, competitive..................................... 5 Skill differential.......................................... 23 Wage determination................................... 27 Sound and tested going rate..................... 23 Wage differential........................................ 27 Special permit rate..................................... 23 Wage increases, round o f .......................... 21 Spendable earnings.................................... 23 Wage inequality......................................... 27 Split shift..................................................... 23 Wage inequity............................................. 27 Standard rate.............................................. 23 Wage leadership......................................... 27 Starting rate............................................... 23 Wage level................................................... 27 Structure, wage.......................................... 29 Wage mediation........... .............................. 28 Style development rate............................. 23 Wage, minimum......................................... 14 Subminimum rate...................................... 24 Wage plan, guaranteed............................ 10 Subsistence allowance................................ Substandard rate........................................ 24 24 28 28 28 26 Superannuated rate................................... 24 Wage policy................................................ Wage rate.................................................... Wage rate bracket...................................... Supplements to wages and salaries......... 24 Wage rate index, urban............................. Survey, community wage.......................... 5 Wage relationship, occupational.............. 14 Survey, wage............................................... 29 Wage reopening.......................................... 28 28 Swing shift.................................................. 25 Wage review................................................ Take-home p ay ........................................... 25 Wages, advance o n ..................................... 1 Target.......................................................... 25 Wage and salary administration.............. 28 29 Tax, pay-roll............................................... 16 Wage and salary receipts.......................... Temporary rate.......................................... 25 Wage structure.......................................... 29 Time, allowed............................................. 1 Wage survey................................................ 29 Time, dead.................................................. 6 Wages and salaries..................................... 29 Time, dow n................................................. 7 Wages, bootleg............................................ 3 Time, tool maintenance............................ 25 Wages, floor under..................................... 8 Time, travel................................................ 26 Wages, garnishment o f .............................. 9 Time, waiting.............................................. 29 Wages, real.................................................. 20 T ip ................................................................ 25 Wages and salaries, supplements to. . . . 24 Tonnage rate............................................... 25 Waiting time............................................... 29 Tool maintenance time.............................. 25 Work, dead.................................................. 6 Trainee......................................................... 25 34 U. S. GOVERNMENT PRINTING OFFICE: 1980