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