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Health, Insurance,
and Pension Plans
in Union Contracts




Bulletin N o. 1187

UNITED STATES DEPARTMENT OF LABOR
James P. Mitchell, Secretary
BUREAU OF LAB O R ST A TIST IC S
Ewan Clague,

Commissioner




Health, Insurance,
and Pension Plans
in Union Contracts


For sale by the Superintendent o f Documents,


Bulletin N o. 1187

October 1955
UNITED STATES DEPARTMENT OF LABOR
James P. Mitchell, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, C o m m is s io n e r

U. S. Government Printing Office, Washington 25, D . C.

Price 15 cents




ation. Decisions as to types and amounts of
benefits, methods of funding, investment policies,
reserve policies, and administration had to be
made.5 New areas of labor-management coopera­
tion, frequently in the form of joint committees
set up to administer the programs, were estab­
lished; in many cases this involved the establish­
ment of separate grievance machinery to handle
disputes arising under the plans. M an y unions
and companies established insurance and pension
departments or expanded existing operations to
cope with the complex technical problems arising
from the negotiation and administration of these
programs.

Health, Insurance,
and Pension Plans
in Union Contracts
E van K

e it h

R

ow e

*

l e a s t 11,290,000 workers were covered by some
type of health and insurance or pension plan under
collective bargaining agreements in early 1954
(table l).*1 The number of workers covered by
these programs has increased more than twenty­
fold since 1945, when about 0.5 million workers
were provided with one or more benefits under such
plans. B y mid-1948, upwards of 3 million workers
were covered. In the following 2 years, reflecting
in part the drive of unions in the basic steel and
automobile industries in late 1949 and early 1950,
coverage increased to more than 7% million
workers.2 In early 1954, it is estimated, approx­
imately 70 percent of all workers under collective
bargaining agreements 3 were provided with at
least one type of health, insurance, or pension
benefit.
Excluded from these estimates were government
and railroad workers for whom benefits are pro­
vided under Federal, State, or municipal legisla­
tion. N or is the jointly financed health program
negotiated in August 1954 between the nonoperat­
ing railroad unions and the carriers included in
this survey.4
The movement by employers and unions to
establish new employee-benefit programs or to
bring existing programs within the scope of labormanagement contracts represents one of the out­
standing postwar developments in labor-manage­
ment relations. However, the introduction of
health, insurance, and pension plans into the collec­
tive bargaining agreement raised many new
problems for both management and labor. Em ­
ployers and unions were introduced, all too abruptly
in some cases, to subjects quite different from those
involved in the usual collective bargaining situ-

At

362985—55




Health and Insurance Plans
In early 1954, approximately 11 million workers,
or about two-thirds of the total number of workers
covered by union contracts (exclusive of railroad
and government unions), were protected by health
and insurance plans under collective bargaining.
These plans provided one or more of the following
benefits: life insurance or death benefits, accidental
death and dismemberment benefits, accident and
sickness benefits (excluding sick leave and work*Of the Bureau’s Division of Wages and Industrial Relations. Harry E.
Davis assisted in the conduct of this survey.
1Data for this study were obtained by questionnaires sent to all national
and international unions listed in the Bureau’s 1953 Directory of Labor
Unions in the United States (Bull. 1127) and to a selected group of single-firm
unaffiliated unions. Incomplete data were supplemented by available
Bureau records, including the files of collective bargaining agreements and
employee-benefit plans, current wage developments reports, and union wage
surveys. A preliminary release summarizing the major findings of this
survey was issued in December 1954.
2 For previous studies in this field, see BLS Bulls. 841,900,946, and 1017.
* On the basis of the responses to the Bureau’s questionnaire it was esti­
mated, roughly, that 16 million workers, exclusive of government and railroad
employees, were covered by collective bargaining agreements at the time of
this survey.
4
This program, which became effective in early 1955, provides for an
insured plan covering approximately 500,000 workers, the cost of which is
shared equally by the employer and employee. In addition, almost 250,000
other workers employed on railroads which have hospital associations are to
receive benefits through those hospitals, with the employer paying one-half
the cost, up to $3.40 monthly. The insured program includes the following
benefits for the employees: hospitalization, surgical, medical (both in and out
of hospital); maternity; polio; special laboratory and X-ray allowances; and
major or extended illnesses. To round out the program, the participating
unions have made arrangements for a group insurance plan to cover de­
pendents and furloughed and retired workers. This coverage is to be paid
for by the workers.
1 Considerable public attention has been focused in the past 2 years on the
administration of health, insurance, and pension plans. Disclosures of irregu­
larities and alleged corruption in the operation of certain programs stimulated
investigations at both Federal and State levels. While the reports of investi­
gating bodies thus far made public generally have indicated that the great
majority of plans are reasonably well managed, they have exposed corruption
and inefficient administration in some cases and have stimulated activity
pointing toward closer scrutiny of these programs and the possible need for
additional legislation in this area.
(i

2

men’s compensation), and cash or services covering
hospital, surgical, maternity, and medical care.6
(See table 2 and chart 1.)
Between mid-1950 and early 1954, the number
of workers covered by health and insurance plans
under collective bargaining increased by 55 per­
cent, as contrasted with a 40-percent increase in
pension coverage (table 2 and chart 2). A t the
same time, there were a large number of changes
in existing plans. For example, of over 1,200
collective bargaining settlements in 1954 known
to the Bureau, each covering 1,000 or more workers,
38 percent involved the establishment or liberali­
zation of health and insurance programs.7 The
great majority of these changes were in the form
of liberalizing existing programs.
Liberalization of existing programs has taken
various forms. Probably the most common have
been increases in the amount and duration of
benefits, the addition of such benefits as surgical
and in-hospital medical care, or the extension of
benefits to dependents or retired workers. New
features have also been introduced, which, al­
though not yet common, are attracting widespread
attention. An example is the private supplemen­
tation of workmen’s compensation. Histori­
cally, weekly accident and sickness benefits, with
few exceptions, have been payable only to em­
ployees prevented from working by off-the-job
injuries or illnesses. Partial wage payment in
case of disability incurred on the job is provided
by workmen’s compensation Jaws and, in many

cases, the payments made are less than the worker
would receive for off-the-job injuries. In recent
years an increasing number of health and insurance
plans have been amended to guarantee the worker
who is injured on the job an income equal to the
amount provided for off-the-job disability.
Provisions for added protection against extended
or catastrophic illness are also becoming more
prevalent. Typically, provision is made for par­
tial reimbursement, generally up to a specified
maximum, for medical care expenses above those
covered by the basic program. For example: A
worker incurs total medical care expenses of $3,000
during a period of extended illness. The basic
plan covers $900 of this amount. The plan further
provides that the worker will bear the next $200
of charges (commonly referred to as deductible”
under the plan). Of the remaining $1,900 of
expenses ($3,000 less [$900 + $200]), the plan
pays 75 percent. Thus under the combined basic
and extended medical programs, the worker is
reimbursed for $2,325 out of a total charge of
$3,000.
Am ong other benefits increasingly being incor­
porated into health and insurance plans in recent
years are: (1) allowances for diagnostic and labora­
tory fee services performed out of the hospital as
well as in the hospital; (2) special allowances for
* For details of health and insurance plans, see Digest of 100 Selected
Health and Insurance Plans Under Collective Bargaining, 1954, BLS Bull.
1180.
7 Monthly Report, Current Wage Developments, No. 87 (p. viii), Bureau
of Labor Statistics, March 1, 1955.

T able 1.— Workers covered by health and insurance and pension plans under collective bargaining,1 by union affiliation,
mid-1950 and early 1954
Union affiliation
All unions 1
AFL
Type of plan

1954

1950

1954

CIO
1950

1954

Unaffiliated
1950

1954

1950

Work­
Work­
Work­
Work­
Work­
Work­
Work­
Work­
Per­
Per­
ers
Per­
ers
Per­
ers
ers
ers
Per­
ers
Per­
ers
Per­
Per­
ers
(thou­ cent (thou­ cent (thou­ cent (thou­ cent (thou­ cent (thou­ cent (thou­ cent (thou­ cent
sands)
sands)
sands)
sands)
sands)
sands)
sands)
sands)
Total.......... ................................ 11,292 100.0

7,652 100.0

5,098 100.0

2,683 100.0

4,813 100.0

3,631 100.0

1,381 100.0

Health and insurance2and pension.
Health and insurance only_______
Pension only................................

4,599 60.1
2,529 33.1
524 6.8

2,106 41.3
2,819 55.3
173 3.4

884 32.9
1,364 50.9
435 16.2

3,649 75.8
1,137 23.6
28 0.6

2,830 78.0
749 20.6
52 1.4

1,160 84.0
221 16.0
(3)
(4)

21

6,914 61.2
4,176 37.0

202

1.8

Excludes unions of railroad and government employees.
Includes one or more of the following: life insurance or death benefits;
accidental death and dismemberment benefits; accident and sickness benefits
(but not sick leave or workmen’s compensation); cash or services covering
hospital, surgical, maternity, and medical care.




1,338 100.0
885
416
37

66.1
31.1
2.8

8<Less
Less than 500.
than 0.05 percent.
N o t e .— B e ca u s e o f r o u n d in g , s u m s o f in d iv i d u a l it e m s d o n o t n e c e s s a r ily
e q u a l to t a ls .

3
T

a b l e

2.

—Workers covered by health and insurance and pension plans under collective bargaining,1 by method of financing
and union affiliation, mid-1950 and early 1954
Union affiliation
All unions 1
AFL

Method of financing

1954

1950

1954

Unaffiliated

OIO
1950

1954

1950

1954

1950

Work­
Work­
Work­
Work­
Work­
Work­
Work­
Work­
Per­
ers
Per­ ers
Per­
ers
Per­
ers
Per­
ers
ers
ers
ers
Per­
Per­
Per­
(thou­ cent (thou­ cent (thou­ cent (thou­ cent (thou cent (thou­ cent (thou­ cent (thou­ cent
sands)
sands)
sands)
sands)
sands)
sands)
sands)
sands)
Health and insurance plans 2
Total-.......... ......... ..............

11,091 100.0

7,128 100.0

4,925 100.0

2,248 100.0

4,785 100.0

3,580 100.0

1,381 100.0

Employer only................ ............
Joint—employer and worker. _*__
Information not available___ ___

6,887 62.1
4,204 37.9

3,890 54.6
2,600 36.5
638 8.9

3,730 75.7
1,195 24.3

1,509 67.1
440 19.6
299 13.3

2,225 46.5
2,560 53.5

1,491 41.7
1,837 51.3
252 7.0

932 67.5
448 32.5

1,300 100.0
890
323
87

68.4
24.9
6.7

Pension plans
Total............................................

7,116 100.0

5,123 100.0 2,279 100.0

1,319 100.0

3,676 100.0

2,883 100.0

1,160 100.0

Employer only________________
Joint—employer and worker_____
Information not available_______

6,029 84.7
1,087 15.3

3,828 74.7
993 19.4
302 5.9

1,793 78.7
487 21.3

771 58.5
495 37.5
53 4.0

3,274 89.1
402 10.9

2,342 81.3
338 11.7
203 7.0

962 82.9
199 17.1

1See footnote 1, table 1.
2See footnote 2, table 1.

emergency accident care in addition to those nor­
mally provided under the program; (3) provision
for medical care in the home and the physician’s
office, heretofore generally limited to in-hospital
cases; and (4) inclusion of fam ily polio coverage.

Financing. Of the workers covered by health and
insurance plans in early 1954, 62 percent made no
money contribution toward their cost (table 2).
The remainder of the workers contributed to the
cost of their benefit coverage. Under many con­
tributory plans the employer has assumed either
all or a greater share of the increased cost resulting
from the changes made in existing plans in recent
years.
Types of Benefits Provided to Workers. Life in­
surance continued to be the most commonly pro­
vided benefit in terms of the proportion of workers
8 For the first time in this type of Bureau survey, an attempt was made to
obtain data on the extension of health and insurance benefits to the depend­
ents of employees, retired workers, and to retired workers’ dependents under
collectively bargained programs. The data obtained, although incomplete,
merit publication in view of the increasing importance of this development
and the current lack of comprehensive data dealing with these aspects of
collectively bargained health and insurance plans. Table 3 provides infor­
mation on the extent to which data were available on the extension of benefits
to the groups affected. No attempt was made to obtain information on the
actual number of dependents, retired workers, or dependents ofretired workers
covered by benefits.




921 100.0
715
160
46

77.6
17.4
5.0

N o t e . —Because of rounding, sums of individual items do not necessarily
equal totals.

covered (93 percent).- Ranked in descending order
of importance, the other benefits were hospitali­
zation (88 percent), surgical (83 percent), accident
and sickness (73 percent), accidental death and
dismemberment (54 percent), and medical benefits
(47 percent). These data are based on the reports
of 173 unions on plans covering approximately 8.7
million workers for which a breakdown of the
individual benefit coverage was available. No
change occurred between 1950 and 1954 in the
sequence of prevalence of the various types of
benefits provided workers under health and insur­
ance plans.

Benefits for Dependents, Retired Workers, and
Dependents ofRetired Workers? One of the major
developments in health and insurance programs
in recent years has been the increase in the practice
of extending benefits to employees’ dependents.
More than 70 percent of the nearly 7% million
workers for whom information on the extension
of benefits to dependents was available were cov­
ered by plans under which provision was made
for dependents’ benefits (table 3). H alf of these
workers shared the cost of dependents’ coverage
with the employer; for about 38 percent of the
workers, the employer assumed the entire cost;

4

a n d t h e r e m a in in g e m p lo y e e s p a id th e e n tir e b ill
th e m s e lv e s .
T h r e e t y p e s o f b e n e fit s w e r e m a d e a v a ila b le t o

Chart 2. Extent to Which Workers Under Collective
Bargaining Agreements 1 Were Covered by Health
and Insurance and Pension Plans, by Method of
Financing, Early 1954

d e p e n d e n t s — h o s p it a liz a t io n , su r g ic a l, a n d m e d ic a l
b e n e fit s .9
p r o v id e d

A c c i d e n t a n d s ic k n e s s b e n e fit s a re n o t
to

d ep e n d e n ts,

fo r

th e

reason

th a t

t h e y a re b a s e d s o le ly o n a n e m p lo y m e n t r e la t io n ­
s h ip

and

rep resen t

p a r t ia l p a y m e n t in

w a g e s lo s t b e c a u s e o f a b s e n c e fr o m
a c c o u n t o f s ic k n e s s o r a c c id e n t .

lie u

th e j o b

of
on

V i r t u a lly a ll o f

t h e w o r k e r s (9 9 p e r c e n t ) u n d e r p la n s e x t e n d in g
b e n e fit s w e r e c o v e r e d b y p r o g r a m s u n d e r w h ic h
h o s p it a liz a t io n

b e n e fit s w e r e m a d e

a v a ila b le

to

d e p e n d e n ts , a c c o r d i n g t o r e p o r t s o f 112 u n io n s o n
in d iv id u a l b e n e fit c o v e r a g e f o r a b o u t 4 .2 m illio n
w ork ers.

T h e d e p e n d e n t s o f n e a r ly 95 p e r c e n t

o f th e s e w o r k e r s w e r e e lig ib le f o r s u r g ic a l c a r e ,
w h ile s o m e w h a t le s s t h a n h a lf h a d th e ir fa m ilie s
1See footnote 1, chart 1.
2See footnote 2, chart 1.

p r o t e c t e d b y s o m e t y p e o f m e d ic a l c a r e p r o g r a m .

Chart 1. Workers Covered by Health and Insurance
and Pension Plans Under Collective Bargaining/
1948,1950, and 1954

I n f o r m a t i o n w a s a v a ila b le o n th e e x t e n s io n o f
b e n e fit s t o r e tir e d w o r k e r s u n d e r p la n s c o v e r in g
a b o u t 6K m illio n w o r k e r s

(t a b le

3 ).

O f th e s e ,

n e a r ly t w o -t h ir d s w e r e u n d e r p la n s p r o v i d in g f o r
th e e x te n s io n o f b e n e fit s .

A s u b s ta n t ia l m a jo r i t y

o f th e s e w o r k e r s w e r e c o v e r e d

by

p la n s u n d e r

w h ic h th e e m p lo y e r p a id th e e n tir e c o s t o f th e
r e t ir e e ’ s b e n e fit s .

H o w e v e r , w e ll o v e r h a lf o f th e

w o r k e r s u n d e r p la n s e x t e n d in g b e n e fit s t o r e tir e d
w o r k e r s w e r e c o v e r e d b y p la n s u n d e r w h ic h th e
o n ly b e n e fit e x t e n d e d w a s life in s u r a n c e , w h ic h
w a s g e n e r a lly f o r

a s m a lle r a m o u n t

th a n

th a t

p r o v i d e d t o th e a c t iv e w o r k e r .
T h e b e n e fit m o s t c o m m o n ly e x t e n d e d t o r e tir e d
w o r k e r s w a s life in s u r a n c e , fo llo w e d in o r d e r b y
h o s p it a liz a t io n ,
A

r e la t iv e ly

under
or

p la n s

s u r g ic a l,

and

m e d ic a l

b e n e fit s .

s m a ll p r o p o r t io n

of

w h ic h

e x te n d e d

a c c id e n t a l

b e n e fit s .

T h ese

d is m e m b e r m e n t

b a s e d o n in fo r m a t io n fr o m

w ork ers

w ere
d e a th

d a ta

a re

72 u n io n s , c o v e r in g

a p p r o x im a t e ly 4 .1 m illio n w o r k e r s , w h ic h p r o v i d e d
a b r e a k d o w n o n th e e x te n s io n o f th e se b e n e fit s .
P la n s p r o v i d in g f o r th e e x te n s io n o f b e n e fit s t o
d e p e n d e n t s o f r e tir e d w o r k e r s a p p lie d t o le s s th a n
2 5 p e r c e n t o f th e 6 .4 m illio n w o r k e r s f o r w h o m
in fo r m a t io n w a s a v a ila b le (t a b le 3 ).
1Excludes unions of railroad and government employees.
2Includes one or more of the following: life insurance or death benefits;
accidental death and dismemberment benefits; accident and sickness benefits
(but not sick leave or workmen’s compensation); cash or services covering
hospital, surgical, maternity, and medioal care.




F or about

9 It is known that a few collectively bargained plans do make life insurance
available to dependents, generally in smaller amounts than that provided
the worker.

5
th r e e -fifth s o f th e s e w o r k e r s , th e b u r d e n o f fin a n c ­

T

in g th e se b e n e fit s fe ll o n th e r e t ir e d w o r k e r s a lo n e .
A b o u t 1 K m illio n w o r k e r s w e r e c o v e r e d u n d e r th e

3 . — W o rk ers covered b y health a n d in su ra n c e p la n s 1
u n d e r collective b a r g a in in g 2 w h ich exten ded benefits to
e m p lo yees' d e p en d en ts, r e tir e d w o rk ers a n d th e ir d e p en d ­
e n ts , b y m eth ods o f fin a n c in g , e a rly 1 9 5 4

able

h e a lt h a n d in s u r a n c e p r o g r a m s o f th e 31 u n io n s
r e p o r t in g

on

d ep en d en ts

th e

t y p e s o f b e n e fit s p r o v i d e d

o f r e tir e d

w ork ers;

v ir t u a lly

of workers
Workers covered Percent
under plans in which
by plans in
benefits
were
financed
each category
by—

to

a ll o f
Groups affected

th e se w e r e u n d e r p la n s w h ic h e x t e n d e d h o s p it a l

Joint— Work­
Number Per- Em­ employer
er
(thous­ cent ployer
and
only
only worker
ands)

a n d s u r g ic a l b e n e fit s a n d a b o u t h a lf, u n d e r p la n s
e x t e n d in g m e d ic a l b e n e fits .

Pension Plans
P e n s io n p la n s u n d e r c o lle c t iv e b a r g a in in g c o v ­
ered

a p p r o x im a t e ly

7 m illio n

w ork ers

in

e a r ly

19 54 , o r a lm o s t 4 0 p e r c e n t m o r e t h a n in m id -1 9 5 0
(t a b le 2 a n d c h a r t 1 ).

H o w e v e r , th is r e p r e s e n t e d

less t h a n h a lf o f th e e s t im a te d n u m b e r o f w o r k e r s
u n d e r c o lle c t iv e b a r g a in in g a g r e e m e n ts in e a r ly
19 54 (c h a r t 2 ).
c o m p le x

and

P e n s io n p la n s a re u s u a lly m o r e

m ore

e x p e n s iv e

th a n

h e a lt h

and

Employees_________________
Employees’ dependents:
Benefits extended to de­
pendent______________
Benefits not extended to de­
pendent............. ...........
Information not available.
Retired workers:
Benefits extended to retired
workers______________
Benefits not extended to re­
tired workers___ _ _ _
Information not available. __
Dependents of retired workers:
Benefits extended to de­
pendents of retired work­
ers____ ______________
Benefits not extended to
dependents of retired
workers ______
Information not available. __

11,091 100.0 62.1

37.9

5,336 48.1 338.3

*50.9

*9.2

31.4

4.6

3.9

61.7

2,119 19.1
3,636 32.8
4,192 37.8 64.0
2,401 21.6
4,497 40.6
1,554 14.0 34.4
4,816 43.4
4, 721 42.6

in s u r a n c e p la n s , w h ic h m a y a c c o u n t , in p a r t , f o r
th e d iffe r e n c e in p r e v a le n c e .

P e n s io n s , in m o s t

ca se s, in v o l v e s u b s ta n t ia l fin a n c ia l c o m m it m e n t s
o f a lo n g -t e r m n a tu r e , w h ile h e a lt h a n d in s u r a n c e

1See footnote 2, table 1.
2 See footnote 1, table 1.
2Information not available for 1.6 percent of employees covered.
Note.—Because of rounding, sums of individual items do not necessarily
equal totals.

b e n e fit s are o f a r e la t iv e ly s h o r t -t e r m n a tu r e .
A d e v e lo p m e n t in th e p e n s io n p la n fie ld w h ic h
has

r e c e iv e d

c o n s id e r a b le

a t t e n t io n

s in c e

19 50

c o n c e r n s th e in t e g r a t io n o r c o o r d i n a t io n o f p r iv a t e

s e c u r it y b e n e fits .
n a lly

fr o m

th e

T h is p re ss u re , s t e m m in g o r ig i­
s u b s ta n t ia l a m e n d m e n ts

S o c ia l S e c u r it y A c t in

to

th e

19 50 , w a s r e e n fo r c e d b y

p la n s w it h th e F e d e r a l s o c ia l s e c u r it y p r o g r a m .

th e a d d it io n a l in c r e a s e s u n d e r th e F e d e r a l p r o ­

A

g r a m in th e a u t u m n o f 19 5 4 .

c o n s id e r a b le

num ber

r e v is e d t h r o u g h
v id e d

in

of

p la n s

n e g o t ia t e d

or

c o lle c t iv e b a r g a in in g h a v e p r o ­

th e ir b e n e fit fo r m u la s f o r

s o c ia l s e c u r it y p a y m e n t s .

“ o ffs e t t in g ”

B e c a u s e t o t a l b e n e fit

F in a n c in g .
p e n s io n

The

is su e

p la n s — th e

of

who

e m p lo y e r

w as

a lo n e

to
or

fin a n c e
th e

em ­

le v e ls w e r e fix e d u n d e r m a n y o f th e s e p r o g r a m s ,

p lo y e r a n d w o r k e r jo i n t l y — p la y e d

th e s t a t u t o r y in cr e a s e s in s o c ia l s e c u r it y p a y m e n t s

r o le in th e d e v e lo p m e n t o f th e s e p r o g r a m s .

in

th e

tr e n d t o w a r d e m p lo y e r -fin a n c in g o f p e n s io n p la n s ,

th e p r iv a t e p la n s a n d

w h ic h w a s q u it e e v id e n t in 19 50 , w a s e v e n m o r e

19 50

and

19 54 r e s u lte d

a m o u n t s t o b e p a id fr o m

in

d e c r e a s e s in

th u s d id n o t in cr e a s e th e in d iv id u a l's t o t a l r e tir e ­

p r o n o u n c e d in e a r ly 1 9 5 4 .

m e n t in c o m e .

th e w o r k e r s c o v e r e d

I n m a n y s u c h ca ses, m a n a g e m e n t

by

a s ig n ific a n t
The

N e a r ly 8 5 p e r c e n t o f
p e n s io n p la n s r e c e iv e d

v o lu n t a r i ly o r in a g r e e m e n t w it h u n io n s a m e n d e d

th e s e b e n e fit s o n a n o n c o n t r i b u t o r y b a s is in 19 54 ,

th e p r o g r a m s s o as t o p a ss o n a ll o r p a r t o f th e

as c o m p a r e d w it h

s o c ia l s e c u r it y

19 50

in c r e a s e

to

th e

w ork er.

In

in ­

te g r a te d p r o g r a m s w h e r e n o c h a n g e s w e r e m a d e

(t a b le

2 ).

a p p r o x im a t e ly 75 p e r c e n t in
The

a s s u m p t io n

of

in c r e a s e d

c o s t s r e s u ltin g fr o m r e v is io n s in p r o g r a m s d u r in g

f o r th e d u r a t io n o f th e p e n s io n a g r e e m e n t, m a n y

th is p e r io d are, o f c o u r s e , n o t r e fle c t e d in th e s e

u n io n s , u p o n r e n e g o t ia t io n , s o u g h t t o p a s s o n t o

d a ta .

th e

in c r e a s e d .

w ork er

pa rt

in c r e a s e e it h e r b y
c o m p le t e ly

or

a ll

of

th e

s o c ia l

s e c u r it y

a d ju s t in g th e fo r m u la o r b y

d iv o r c in g

th e

fo r m u la

fr o m

s o c ia l

i®For an analysis of these and other features of pension plans, see Pension
Plans Under Collective Bargaining, BLS Bull. 1147, 1953.




as

B e n e fit s

v e s tin g ,

s t r ic t iv e
m e n ts
p la n s .10

under

m any

p la n s

have

been

T h e a d o p t io n o f o t h e r fe a t u r e s s u c h
d is a b ilit y

r e tir e m e n t,

(o r m o r e lib e r a l)

a lso

added

U nder

to

th e

and

le s s

re­

q u a lific a t io n r e q u ir e ­
cost o f a n um ber o f

n o n c o n trib u to r y

program s,

th e

6
a d d it io n a l

co sts

r e s u ltin g

fr o m

w e r e a s s u m e d b y th e e m p lo y e r .

th e s e

changes

(t a b le 4 ) .

S ig n ific a n tly , 69 o f th e se , r e p r e s e n t in g

m o r e th a n 4 5 p e r c e n t o f a ll w o r k e r s u n d e r th e

In a num ber of

c o n t r i b u t o r y p r o g r a m s th e e m p lo y e r h a s a s s u m e d

a g r e e m e n ts

of

a ll o r a g r e a te r p r o p o r t io n o f th e a d d e d c o s t .

som e

o f h e a lt h

ty p e

th e

168

u n io n s ,

and

had

n e g o t ia t e d

in s u r a n c e b e n e fit f o r

m o r e t h a n 8 0 p e r c e n t o f t h e w o r k e r s w h ic h t h e y
rep resen ted .

Variations in Coverage Among Unions

168
A p p r o x im a t e ly 4 5 p e r c e n t o f th e 1 1 .3 m illio n
w ork ers

under

b e n e fit

p la n s

w ere

covered

by

O n th e o t h e r h a n d , o n l y 4 0 o f th e

u n io n s

had

m ore

th a n

w ork ers

w hom

th ey

rep resen ted

60

p ercen t

p e n s io n

p la n s .

H ow ever,

th e s e

of

th e

covered

by

u n io n s

repre­

c o n t r a c t s n e g o t ia t e d b y u n io n s a ffilia te d w it h th e

s e n te d 41 p e r c e n t o f a ll w o r k e r s u n d e r th e c o l ­

A m e r ic a n F e d e r a t io n

le c t iv e b a r g a in in g a g r e e m e n ts o f th e 168 u n io n s .

o f L ab or.

S lig h t ly fe w e r ,
u n io n s

N o h e a lt h a n d in s u r a n c e b e n e fit s u n d e r a g r e e ­

a ffilia te d w it h t h e C o n g r e s s o f In d u s t r ia l O r g a n i­

m e n t w e r e r e p o r t e d b y 2 7 u n io n s , w h ile m o r e th a n

z a tio n s ,

t w ic e t h a t n u m b e r h a d n o p e n s io n p la n s .

about

43

p e rce n t,
and

in d e p e n d e n t

th e

w ere

rep resen ted

r e m a in d e r ,

u n io n s .

In

by

19 50 ,

by

u n a ffilia te d
th e

or

H ow ­

e v e r , th e s ig n ific a n t a re a o f p o t e n t ia l e x p a n s io n o f

c o m p a r a b le

p e r c e n t a g e s f o r t h e 2 m a jo r fe d e r a t io n s w e r e 35

c o v e r a g e d o e s n o t lie a m o n g th e s e u n io n s .

a n d 4 7 p e r c e n t r e s p e c t iv e ly (t a b le 1 ).

2 7 u n io n s w it h

A lt h o u g h

no

h e a lt h

and

in s u r a n c e

The
p la n s

A F L u n io n s a c c o u n t e d f o r a la r g e r s h a r e o f th e

r e p r e s e n t e d o n ly a b o u t 1 p e r c e n t o f all w o r k e r s

w ork ers

under

c o m in g

under

p la n s

s in c e

19 5 0 ,

C IO

h ig h e r p r o p o r t io n o f th e ir t o t a l c o lle c t iv e b a r g a in ­
O f t h e 168 n a t io n a l a n d in te r n a tio n a l u n io n s
in c lu d e d in th e s u r v e y ,12 a b o u t h a lf h a d b e t w e e n
60 a n d

100 p e r c e n t o f th e w o r k e r s w h ic h t h e y

T

able

under

h e a lt h

and

in s u r a n c e

fo r

b a r g a in in g ,

43

p ercen t

of

but
a ll

56

u n io n s

w ork ers

ac­

under

11As previously noted, coverage of railroad and government employees,
many of whom are represented by the AFL, have been excluded from the
study. Also excluded are plans administered by unions and financed en­
tirely by membership dues or assessments. Many AFL affiliates, as well
as their locals, have for many years maintained such plans. For information
on these programs see the Proceedings of the Seventy-third Convention of
the American Federation of Labor, September 20, 1954 (pp. 74-78).
12See footnote 1, table 4.

in g c o v e r a g e u n d e r s u c h p la n s .11

rep resen ted

c o lle c t iv e

c o u n t in g

u n io n s , in b o t h 1 9 5 0 a n d 19 54 , h a d a s u b s t a n t ia lly

p la n s

1 b y p ro p o r tio n o f w o rkers covered b y health a n d in su ra n c e a n d
p e n sio n p la n s to all w o rkers covered by a g reem en ts , e a rly 1 9 5 4

4 . — D is tr ib u tio n o f n a tio n a l a n d in te r n a tio n a l u n io n s

national and international unions with
National and international unions1 Number oftotal
agreement coverage of—
Workers covered by plans as percent of all workers covered by agree­
ments negotiated by national and international unions
Number Percent

Percent of
all workers
covered by
collective
bargaining
agreements

Under
25,000
workers

25,00050,000
workers

50,000100,000
workers

100,000- 250,000
250,000 workers
workers and over

!

Health and insurance plans 2
Total___________ ______ ________________________________

168

100.0

100.0

91

20

21

21

15

80 to 100 percent________ ______ . _ ______ _________________
60 to less than 80 percent__________________________________
40 to less than 60 percent____________
___ _____ ___ _______
20 to less than 40 percent________ _______________ ____ ____ 1 to less than 20 percent________________ ____ ______________
None_______________ ___________
. ________ _______

69
16
31
15
10
27

41.1
9.5
18.4
8.9
6.0
16.1

45.4
10.2
27.6
12.6
3.0
1.1

39
2
12
5
8
25

9
1
6
2
1
1

8
8
2
2

4
4
7
5
1

9
1
4
1

15

1

Pension plans
Total__________ _____ __________________________________

168

100.0

100.0

91

20

21

21

80 to 100 percent___ _____________________________________
60 to less than 80 percent____ _____ ______ _ ______ ____ _____
40 to less than 60 percent_____ __ __________ ____ ______ ___
20 to less than 40 percent________ ___________ ___ ________
1 to less than 20 percent........................ . _ _
_ ______ ____
None__________ __ __________________ __________ - _____

26
14
16
24
32
56

15.5
8.3
9.5
14.3
19.1
33.3

18.2
22.8
5.6
10.9
31.8
10.8

15
3
5
8
13
47

2
2
3
6
3
4

3
2
6
4
4
2

5
2
4
8
2

*Excludes unions of railroad and government employees. This tabulation
also excludes AFL federal labor unions, CIO local industrial unions, and
unaffiliated unions confined to a single plant or establishment.




6
2
2
4
1

3See footnote 2, table 1.
N ote .— B ecause of rounding, sums of individual items do not necessarily
equal totals.

7

a g r e e m e n ts h a d less th a n 60 p e r c e n t o f th e w o r k e r s
w hom

th e y rep resen ted c o v e r e d .

T

6 . — W o rk ers covered by h ealth a n d in s u r a n c e a n d
p e n s io n p la n s u n d e r collective b a rg a in in g , by in d u s tr y
d iv is io n 1 a n d m eth od o f fin a n c in g , e a rly 1 9 5 4

able

F o r p e n s io n s ,

c o m p a r a b le d a t a s h o w e d 56 u n io n s , r e p r e s e n t in g
about

11

p ercen t

of

a ll

w ork ers

w it h o u t

Method of financing

th is
All workers
covered

b e n e fit , as a g a in s t 72 u n io n s , r e p r e s e n t in g a lm o s t
h a lf o f th e t o t a l, w it h less t h a n 6 0 p e r c e n t o f
th e ir w o r k e r s c o v e r e d .
T

o f u n io n s b y p r o p o r tio n o f all
w o rk ers u n d er health a n d in su ra n c e a n d p e n sio n p la n s
w ho w ere covered b y e m p lo y er-fin a n ce d p la n s ,1 b y u n io n
a ffilia tio n , e a rly 1 9 5 4

able

Work­
Work­
Workers
Per­
ers
ers
Per­
Per­
(thou­ cent (thou­ cent (thou­ cent
sands)
sands)
sands)

5 . — D is tr ib u tio n

Number of unions
by affiliation

All unions3
Percent of workers covered by
plans financed entirely by
employers 1

Percent
Un­
of all
Num­ Per- workers
ber cent under AFL CIO affili­
ated
plans
Health and insurance plans *

All unions with health and in­
surance plans_____________

226 100.0

100.0

79

33

114

80 to 100 percent_________ 1. .
60 to less than 80 percent_____
40 to less than 60 percent_____
20 to less than 40 percent_____
0 to less than 20 percent______

112 49.6
12 5.3
12 5.3
8 3.5
82 36.3

45.7
5.6
12.3
25.2
11.2

48
7
4
4
16

17
4
3
3
6

47
1
5
1
60

Health and insurance plans 2
All industries 8_ .................. 11,091 100.0
Manufacturing industries......
Nonmanufacturing i n d u s- 6,901 100.0
tries3...............................
4,190 100.0

6,887 62.1

4,204

37.9

3,491 50.6

3,410

49.4

3,396 81.0

794

19.0

Pension plans
All industries 3.....................

7,116 100.0

6,029 84.7

1,087

15.3

Manufacturing industries___
Nonmanufacturing i n d u s tries3.............. ..... ........

4,770 100.0

4,051 84.9

719

15.1

2,346 100.0

1,978 84.3

368

15.7

1The workers were classified as manufacturing or nonmanufacturing
according to where the preponderance of the membership of the union re­
porting the plan was employed.
2See footnote 2, table 1.
3See footnote 1, table 1.
o f A F L a ffilia te s in e a r ly 1 9 54 w e r e c o v e r e d o n a
n o n c o n trib u to r y

Pension plans

Jointemployer
and worker

Employer
only

Type of benefit and in­
dustry division1

less

th a n

h a lf

b a s is ;

under

r e c e iv e d

C IO

b e n e fit s

a g r e e m e n ts ,
w it h o u t

con ­

All unions with pension plans-.

189 100.0

100.0

63

29

97

tr ib u t in g .

80 to 100 percent____________
60 to less than 80 percent_____
40 to less than 60 percent_____
20 to less than 40 percent_____
0 to less than 20 percent___ ...

118 62.4
14 7.4
7 3.7
12 6.4
38 20.1

75.3
9.3
6.9
4.4
4.1

41
8
1
9
4

18
3
2
2
4

59
3
4
1
30

in s u r a n c e p la n s u n d e r a g r e e m e n ts h a d b e t w e e n 8 0

1The difference between 100 percent and the percent of workers covered
by plans financed entirely by employers represents the percent of workers
covered by plans financed jointly by employers and employees. Thus, the
112 unions shown as having between 80 and 100 percent of their workers
covered by employer-financed health and insurance plans have between 0
and 20 percent of the workers under jointly financed plans.
2See footnote 1, table 1.
3See footnote 2, table 1.

A b o u t h a lf o f th e 2 2 6 u n io n s h a v in g h e a lt h a n d
and

100 p e r c e n t

covered

on

a

of

t h e ir w o r k e r s

n o n c o n trib u to r y

u n d e r p la n s

b a sis

(t a b le

5 ).

T h e s e 112 u n io n s a c c o u n t e d f o r a b o u t 4 6 p e r c e n t
o f th e m o r e th a n 11.1 m illio n w o r k e r s u n d e r c o l ­
le c t iv e ly b a r g a in e d p la n s .

O n th e o t h e r h a n d , 9 0

u n io n s , a c c o u n t in g f o r o v e r 36 p e r c e n t o f th e 11.1
m illio n w o r k e r s , h a d less t h a n 4 0 p e r c e n t o f th e

C o n s id e r a b le v a r ia t io n e x is t e d w it h r e s p e c t t o
th e

e x te n t to

w h ic h

n a t io n a l a n d in te r n a tio n a l

w o r k e r s w h o m t h e y r e p r e s e n t e d u n d e r e m p lo y e r fin a n c e d p r o g r a m s .

u n io n s o f v a r io u s sizes h a d n e g o t ia t e d h e a lt h a n d
in s u r a n c e a n d p e n s io n p la n s .

A g r e a te r p r o p o r ­

P e n s io n

p la n s

w ere

p r o v id e d

on

a

n oncon-

t r ib u t o r y b a s is f o r b e t w e e n 8 0 a n d 100 p e r c e n t o f

tio n o f th e u n io n s r e p r e s e n tin g u p w a r d s o f 2 5 0 ,0 0 0

all

w o r k e r s e a c h h a d m o r e th a n 8 0 p e r c e n t o f th e ir

u n io n s (ta b le 5 ).

T h e s e u n io n s r e p r e s e n t e d m o r e

th a n

p ercen t

of

a ll w o r k e r s

A lt h o u g h

38

of

w ork ers

covered

by

h e a lth

and

in s u r a n c e

and

w ork ers
75

under

p e n s io n

a g r e e m e n ts

of

118

u n d e r p e n s io n

p e n s io n p la n s th a n d id u n io n s in a n y o f th e sm a lle r

p la n s .

siz e g r o u p s (ta b le 4 ) .

p e n s io n a g r e e m e n ts h a d le ss th a n 2 0 p e r c e n t o f

In

b oth

th e

AFL

and

C IO ,

th e

num ber

of

th e ir

covered

w ork ers

th e

189 u n io n s h a v in g

under

n o n c o n trib u to r y

w o r k e r s c o v e r e d b y e m p lo y e r -fin a n c e d h e a lt h a n d

p la n s ,

in s u r a n c e p la n s in c r e a s e d s in c e 19 5 0 .

p e r c e n t o f a ll w o r k e r s c o v e r e d b y p e n s io n s .

H ow ever,

th e s e

u n io n s

a cco u n te d

fo r

less

th a n

5

a p p r o x im a t e ly 3 o u t o f e v e r y 4 w o r k e r s c o v e r e d

T h e c o n t in u in g tr e n d t o w a r d e m p lo y e r -fin a n c e d

b y h e a lth a n d in s u r a n c e p la n s u n d e r a g r e e m e n ts

p e n s io n s w a s fu r t h e r e m p h a s iz e d b y th e f a c t th a t,




8

in e a r ly 19 54 , a p p r o x im a t e ly 8 o u t o f e v e r y 10

h e a lt h a n d in s u r a n c e p la n s , a b o u t 62 p e r c e n t w e r e

w o r k e r s w h o w e re e lig ib le f o r p e n s io n p r o t e c t io n

in m a n u fa c t u r in g

u n d e r a g r e e m e n ts o f A F L a ffilia te s w e r e c o v e r e d

p r o p o r t io n w a s s lig h t ly g r e a te r — a p p r o x im a t e ly 6 7

on

p e r c e n t o f th e 7.1 m illio n s o c o v e r e d .

a

n o n c o n trib u to r y

about 6 out of

com p a red

w it h

10 w o r k e r s s o c o v e r e d in

b a s is

as

1950

A lt h o u g h

th e r e

(t a b le 6 ).

w as

no

F o r p e n s io n s , th is

s ig n ific a n t

d iffe r e n c e

S im ila r ly , e m p lo y e r -fin a n c e d p e n s io n

b e t w e e n m a n u fa c t u r in g a n d n o n m a n u fa c t u r in g in

p la n s o f C I O a ffilia te s c o v e r e d a h ig h e r p r o p o r t io n

th e p r o p o r t io n o f p e n s io n p la n s w h ic h w e r e e m ­

o f w o r k e r s u n d e r p e n s io n a g r e e m e n ts in 19 5 4 th a n

p lo y e r -fin a n c e d , a b o u t h a lf o f th e w o r k e r s c o v e r e d

in 19 50 .

b y h e a lt h a n d in s u r a n c e p la n s in m a n u fa c t u r in g

(t a b le 2 ).

c o n t r ib u t e d t o w a r d

Coverage in Major Industry Divisions

th e c o s t o f th e b e n e fit s , as

a g a in s t 1 o u t o f 5 in n o n m a n u fa c t u r in g in d u s tr ie s .
T h is d iffe r e n c e is a c c o u n t e d fo r , in p a r t , b y th e

M ore

w ork ers

w ere

covered

by

h e a lt h

and

p r e v a le n c e o f jo i n t l y fin a n c e d h e a lt h a n d in s u r a n c e

in s u r a n c e a n d p e n s io n p la n s u n d e r a g r e e m e n ts in

p r o g r a m s in t h e m e t a l p r o d u c t s , p e t r o le u m

m a n u fa c t u r in g

fin in g , c h e m ic a ls , p a p e r a n d a llie d p r o d u c t s , a n d

in d u s tr ie s

th a n

in

n o n m a n u fa c ­

re­

tu r in g in d u s tr ie s (e x c lu d in g r a ilr o a d a n d g o v e r n ­

ston e,

m e n t u n io n s ).13

th e

im p o r t a n c e o f e m p lo y e r -fin a n c e d p la n s in m in in g ,

in

c o n s t r u c t io n , t r a n s p o r t a t io n , c o m m u n ic a t io n s , a n d

h e a v ie r

T h is w a s d u e , in p a r t , t o

c o n c e n t r a t io n

of

u n io n

o r g a n iz a t io n

m a n u fa c t u r in g a n d t h e la r g e n u m b e r s o f w o r k e r s
c o v e r e d b y u n io n a g r e e m e n ts in m a s s -p r o d u c t io n
in d u s tr ie s .

Of

th e




11.1

m illio n

w ork ers

under

c la y ,

and

g la s s

in d u s tr ie s

and

by

th e

th e s e r v ic e in d u s tr ie s .
18Unions were classified as manufacturing or nonmanufacturing according
to where the preponderance of membership was employed.

U. S. GOVERNMENT PRINTING OFFICE: 1955