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I mpact of and T echnological C hange A utomation in t h e ______ P ulp and P aper I ndustry Bulletin No. 1347 UNI TED S T A T E S D E P A R T M E N T OF LABOR W. W i l l a r d W i r t z , Secretary BUREA U O F LA BO R S TA TIS TIC S Ewan Clague, Com m issioner O T H E R B LS P U B L IC A T IO N S O N A U T O M A T IO N A N D P R O D U C T IV IT Y Implications of Automation and Other Technological Developments* (Bulletin 1319, 1962), 136 pp., 65 cents. A Selected Annotated Bibliography Describes over 500 books, articles, reports, speeches, conference proceedings, visual aids, and other readily available materials published primarily since 1956* Technological Change and Productivity in the Bituminous Coal Industry, 1920-60 (Bulletin 1305, 1961), 136 pp,, 65 cents. Trends in technology and productivity and implications for employment, unemployment, wages, prices and profits. Impact of Automation (Bulletin 1287, 1960), 114 pp., 60 cents. A collection of 20 articles about technological change, from the Monthly Labor Review. Adjustments to the Introduction of Office Automation (Bulletin 1276, 1960), 86 pp., 50 cents. A study of some implications of the installation of electronic data processing in 20 offices in private industry, with special reference to older workers. Studies of Automatic Technology (Free). A series of case studies of plants introducing automation. Describes changes and implications for productivity, employment, occupational requirements, and industrial relations. A Case Study of a Company Manufacturing Electronic Equipment. The Introduction of an Electronic Computer in a Large Insurance Company. A Case Study of a Large Mechanized Bakery (Report 109^. A Case Study of a Modernized Petroleum Refinery (Report 120). A Case Study of an Automatic Airline Reservation System (Report 137). Indexes of Output per Man-Hour for Selected Industries, 1939 and 1947*60. (December 1961), 21 pp. Free. Annual Industry Series Indexes of output per man-hour, output per employee, and unit labor requirements for 22 industries, including coal and metal mining, various foods and fibers, basic steel, etc. Trends in Output per Man-Hour in the Private Economy, 1909-1958 (Bulletin 1249, 1959), 93 pp., 50 cents. Indexes of output per man-hour, output, and employment in major sectors. factors affecting changes. Analysis of trends and Labor Requirements for Federal Office Building Construction (Bulletin 1331, 1962), 43 pp., 35 cents. The third of a series of studies of on-site and off-site labor requirements in each of the major types of construction. Sales publications may be purchased from the Superintendent of Documents, Washington 25, D. C., or from regional offices of the Bureau of Labor Statistics at the addresses shown below. Free publications are available, as long as the supply lasts, from the Bureau of Labor Statistics, U.S. Department of Labor, Washington 25, D. C. Regional Offices: New England Region 18 Oliver Street Boston 10, Mass. Middle Atlantic Region 341 Ninth Avenue New York 1, N.Y. East Central Region 1365 Ontario Street Cleveland 14, Ohio North Central Region 105 West Adams Street Chicago 3, 111. Southern Region 1371 Peachtree Street, NE» Suite 540 Atlanta 9, Ga. Western Region 630 Sansome Street San Francisco 11, Calif. IMPACT OF TECHNOLOGICAL CHANGE AND AUTOMATION IN THE PULP AND PAPER INDUSTRY Bulletin No. 1347 October 1962 UNITED STATES DEPARTMENT OF LABOR W. Willard W irtz, Secretary B U R E A U O F LA BO R S TA TIS TIC S Ewan Clague, C om m issioner For sale by the Superintendent of Documents, U .S. Government Printing Office, Washington 25, D.C. Price 50 cents Preface The benefits and problems of automation and other technological changes have been described as one of the most urgent issues before the Nation. New equipment, processes, and products may open opportunities for investments, jobs, lower costs and prices, improved living standards, greater leisure* and a stronger national defense. On the other hand, technological advances may involve displacement of workers, requiring special measures to prevent layoffs and to retrain workers for new skills. This study examines some implications for automation and other tech nological advances in the pulp and paper Industry, a major industry undergoing extensive change. Historically, technological changes in the industry have been accompanied by expanded output and increased employment. Industry ex perts foresee further changes, with opportunities for growth and with new problems of adjustment. The study is part of the Bureau of Labor Statistics program on the progress, outlook, and implications of technological change. Previous stud ies were generally confined to case studies of Individual plants and offices. This bulletin presents a summary analysis of trends and outlook for the in dustry as a whole, in addition to illustrative case studies of adjustments to technological changes at three plants. The study is based on published data from the Bureau of Labor Sta tistics. the Bureau of the Census, trade and technical publications, and information collected by the HLS directly from three plants through field visits. The generous cooperation of the officials of the companies, dnions. and trade associations visited is deeply appreciated. This bulletin was prepared in the Bureau*s Division of Productivity and Technological Developments, by Edgar Weinberg. Chief. Branch of Analysis and Technological Studies, and Richard Riche. Bennett Moss participated in the detailed case studies. i Contents Page Introduction • • • « • • • • • • • • • • • • • Highlights and summary • • • • • • • • • • • • • Trends and outlook • • • • • • • • • « • • • • Adjustments in three selected plants • • • • • • • • Part I* Trends and outlook for the pulp and paper industry Development of the pulp and paper industry • • • • • • • Industrial revolution • • • • • • • * • • • • • Era of mass production • • • • • • • • • • • • Post-World War II trends in output per man-hour* production* employment, hours and earnings* and labor turnover • • Trends in technology and research • • • • • • • • • • Trend toward continuous automatic production • • • • • Improved measurement* inspection* and control • • • • • Development of new sources of raw materials « • • • • Research and new products • • • • • • • • • • • Outlook for the 1960*s • Part II* Selected Case Studies • • • • • • • • • • • • • 1 3 3 4 • 7 • • • 7 7 9 • • • • • • • • • • • • • 11 18 18 20 23 25 28 ................................ ... Case study of mechanization of materials handling • • • • • • Case study of the introduction of continuous processing equipment • Case study of an automatic paper roll handling system • • • • • 30 31 50 67 Tablest 1* 2* 3* 4* 5* 6* 7* Average annual percent change in output per production worker man-hour, selected periods* 1919-60 • • • • • Production of paper and board* and percent increases by grade* 1947 and 1960 • • • . • • • • • • • • * Woodroom of Plant As Horsepower installed and daily capacity* before and after modernization • • • • • • Woodroom of Plant At Ouptut per man-hour* and unit man-hour requirements, before and after modernization • • Woodroom of Plant A: Value of plant and equipment* before and after modernization • • • • • • • • • Plant At Job status of workers formerly assigned to the old woodroom 15 months after startup of the new system • « • Plant At Grade status of woodroom workers who remained in the unit, and of those who transferred to other plant departments • * • • • • • • • • • • • • • • ili 11 13 33 34 35 37 38 Contents— Continued Tables— Continued* 8* 9* 10. 11* 12* 13, 14* 15* 16* 17, 18* 19, 20* 21* 22. 23. 24. 25. Page Classification of woodroom occupations, by job content, before and after modernisation • » • • • • « • • Average hourly wage rate and percent distribution of woodroom employees by wage rate, before and after modernization • • • • . • • • • • • • # • • Plant At Composition of the work force, by occupation or plant department, 1953 and 1958 • • • • • • • • Plant At Frequency of disabling injuries (per million man-hours), total plant and woodroom, 1954*58 • • • • Plant Ai Job status of woodroom workers 15 months after startup of the woodroom, by age group • • • « • • • Plant Ai Results of union-management negotiations over wage rates for selected woodroom occupations, based on operating experience • • • • • • • • • • • • • Plant Bt Horsepower Installed, and daily capacity, before and after technological change • • • • • • • • • Plant Bi Output per man-hour, and unit man-hour requirements, semichemical pulping, before and after technological change • • • • • • • • • » • • • Plant Bt Value of plant and equipment, old and new semichemical system • • • • • • • • • • • « • Plant Bi Percent distribution of unit costs in semichemical pulping, before and after technological change • • • • • • • • • • • • • • • • • Plant Bt Job status of digester room and diffuser room workers after technological change • • • • « • • • Plant Bt Grade status of workers in affected units immediately after technological change • • • • • • • Plant Bt Changes in job assignments and hourly wage rates of the eight diffuser room employees whose jobs were eliminated • • • • • » • • • • . . « . » • Plant Bt Staffing pattern of digester room and Ho. 2 diffuser room, before and after technological change • . Plant B: Distribution of digester room and No. 2 diffuser room occupations by classification, before and after technological change Plant Bi Average hourly wage rate, and percent distribution of employees by wage rate, before and after technological change • • • . • • • « • • • « • Plant Bt Composition of the work force by occupation or plant department, 1953 and 1958 • • • • • • • • • Plant Bt Average age, years of service, and wage rates of workers in new jobs and in jobs eliminated . . . . iv 39 40 41 44 45 49 52 53 54 55 58 57 58 59 60 62 63 65 Contents— •Continued Tables— Continued* 26* 27* 28. 29. 30. 31* Plant Ct Horsepower installed and dally capacity* shipping operations, before and after technological change • • • • • • • • • • • • • • • • • Plant Ct Output per man-hour, and unit man-hour requirements, shipping operations, before and after technolgoical change • • • « • • • • • • • • • Plant Ct Indexes of man-tours worked, output,and output per man-tour, total plant, 1954-58 • • • • • • • • Plant Ct Job status of finishing and shipping department employees 1 year after technological change • • • • • Plant Cs Distribution of shipping occupations, by job classification, before and after technological change « • Plant Ct Average hourly wage rate, and percent distribution of employees by wage rate, before and after technological change • • • • • • • • • • • • • 70 70 71 72 74 74 Charts* 1« 2* 3* 4* Indexes of output, man-tours, and output per man-hour, pulp, paper, and board industry, 1919-80 • • • • • • Production and capacity of paper and board and percent of capacity utilized, 1947-60 • • • • • • • • • • Employment in the pulp, paper, and board industry, 1947-60 • Percent changes in the distribution of employees and establishments, pulp, paper, and board industry, 1947 to 1958, United States and census regions • « • • • • • Appendix A* A-l. A-2* A-3* A-4* A - 5. A-6, 14 15 16 Tablest Expenditures for new plant and equipment, pulp, paper, and board mills, 1947-60 • • • • • • • • • • • Capacity,and production of paper and board as a percent of capacity, 1947w60 . • • • • • • • • • • • Indexes of output, production worker man-hours, and output per production worker man-hour in the pulp, paper and board industry, 1919-60 • • • • • • • • Indexes of output, man-hours, output per man-hour, and unit labor requirements in the pulp, paper, and board industry, 1939 and 1947-60 • • • • • • • • • • Employment in the pulp, paper and board industry, 1947-60 Average weekly hours and average hourly and weekly earnings of production workers in the pulp, paper, and board industry, 1947-60 • • • • • • • • • • • 12 v 79 80 81 82 83 84 Contents— Continued Tables— Continued i A-7* A-8« A-9t Page Employment in the pulp, paper, and board industry, by region, 1947 and 1958 ................................ Establishments in the paper and board industry, by region, 1947 and 1958 • • • • • • • • • • • « Labor turnover rates (per 1,000 employees), pulp, paper, and board industry, 1949-60 • • • • • • • Appendix B, Selected Bibliography • vi • • • • • • • • • • 85 86 87 89 IMPACT OF TECHNOLOGICAL CHANGE AND AUTOMATION IN THE PULP AND PAPER INDUSTRY Introduction This survey covers the nature, status, and outlook of some impor tant technological innovations and some implications for trends in produc tivity, production, employment, occupational requirements, and industrial relations practices in the pulp and paper Industry. Part I covers the in dustry as a whole and is based on previously published data, the statistics covering mainly 1947-60. Part II presents case studies of adjustment to specific technological changes at three selected plants, based on data collected through field visits and interviews. Industry Characteristics In the text of this study, the term "pulp and paper" is used instead of the full title, "pulp, paper, paperboard, and building paper and building board." This term encompasses the 4 Standard Industrial Classification 1/ in dustries: pulp mills (SIC 261), which primarily manufacture various types of pulp from pulp wood and other cellulose fibers; paper mills, except building (SIC 262), which primarily produce various grades of paper, such as newsprint, book, fine, and sanitary tissue; paperboard mills (SIC 263), which primarily make various types of container board; and building paper and building board mills (SIC 266), Which primarily produce different types of insulating board, construction paper and fiber boards. Some of the larger plants integrate the production of pulp, paper, and paperboard. In the appendix tables, the term, "pulp, paper, and board" has the same coverage. The pulp and paper industry group excludes establishments (SIC 264265) primarily engaged in converting paper and paperboard into finished prod ucts such as bags, boxes, and other containers. Although such plants are sometimes under the same ownership and at the same location as plants in the pulp and paper industry, they are classified in the paper products industry. I960. 1/ About 294,000 persons (BLS data) were employed in the industry in In 1958 there was a total of 802 pulp and paper establishments. 1/ U.S* Bureau of the Budget. Standard Industrial Classification Manual— 1957 (Washington, U.S. Government Printing Office, 1957), pp. "75775. The employment figure for 1960 differs from earlier BLS employment data (275,300) because of recent comprehensive revisions in BLS employment and earnings statistics. These changes reflect such factors as introducing the 1957 Standard Industrial Classification, adjustment of data to new benchmarks, development of improved techniques, availability of more extensive basic data, and inclusion of Alaska and Hawaii. Except for the employment figure cited above (294,000 workers) and data on overtime hours (5.1), all other BLS data on employment and earnings in the pulp and paper industry used in this Bulletin are from an earlier series. Revised data for this industry are not available for years prior to 1958, and are not comparable with previously published data for 1958-60. 2 Plants are located In about 500 communities, in more than 40 States* More than 90 percent of the industry's production workers are covered by union agreements* the majority with the United Papermakers and Paperworkers and the International Brotherhood of Pulp* Sulphite and Paper Mill Workers* The industry produces a vide variety of products* for both indus trial and household uses* Most of the pulp produced by pulp mills is used by paper and paperboard mills; some pulp* however, is sold to producers of rayon* plastics, cellophane and related materials based on cellulose* Of the total tonnage of paper and paperboard produced* about one-half is used for packaging; nearly one-fourth for books* magazines and newspapers; about one-tenth for writing papers; about one-tenth for building; and about onetwentieth for sanitary purposes* Exports amounted to about 3 percent of total production in I960* Some Qualifications In assessing the findings of this bulletin* it is helpful to keep in mind some difficulties of studying the implications of technological change* Emphasis is on the adjustments to changes made by plants within the pulp and paper industry* The data pertain primarily to the labor aspects of such adjustments* Industries* however* are interdependent* Technical changes in papermaking, for example* result not only in savings of wood pulp* but also chemicals, power* water* and other materials and services purchased from other industries* The implications for employment in the supplying indus tries, as a result of such changes* are not readily determined through available statistics. Moreover* the development of improved equipment* processes* and products increases the rate of technical obsolescence and affects the vol ume of investment in new plants and equipment* The volume of employment generated by purchases of new papermaking plants and equipment, however* is not readily estimated* Finally, new, improved* and less costly pulp and paper products have an impact on competitive markets such as those for textiles* steel* and wood* and hence on employment in these industries* These effects also are difficult to isolate from the complex of competitive factors. In short* not all implications of technological change in the pulp and paper industry can be covered in this study* A more complete description of the ramifications of such changes depends on the assembling of additional data on interindustry relationships and the interpretation of information on industries related to papermaking* Highlights and Summary Trends and Outlook Trend Toward Automatic Production. The post-World War II period has been one of significant technological changes in many phases of pulp and paper manufac turing with important Implications for employment and working conditions* Mechanized handling of pulpwood and paper rolls* continuous pulp processing* greater instrumentation* and semichemical pulp processing* reduce unit require ments for labor* capital* materials and fuel* The 1960*8 will probably see wider application of these innovations. The plant of the future will probably use more electronic equipment such as industrial television* radioisotope gages* and electronic computers to improve control of operations* Some in dustry experts see a new era of far-reaching changes* affecting producers of competitive materials as well as the industry* as more funds are channeled into research to improve processes and develop new and better products* Increased Output per Man-Hour* Output per production worker man-hour in the pulp and paper industry increased at an average annual rate of 3*7 percent a year during the 1947-60 period* This rate was over 50 percent above the long term trend (1919-60) after two decades of slow growth during the Depression and World War II* Technological advances will probably mean continued growth in the 1960*s in output per man-hour at a rate above the long-term average* More emphasis will probably be placed on modernization and efforts to improve the efficiency of existing plants rather than on capacity expansion* Production Growth. Physical output increased at an average annual rate of 4*5 percent during the 1947-60 period* only slightly above the long-term growth rate* The postwar advance in production exceeded the growth rate of output per production worker man-hour only by a small margin* Output is expected to rise over the next few years but at a slower annual rate than during the 1947-60 period* The 1960*s may see output per man-hour rise at the same or a slightly faster rate than production* Employment Implications. Employment in the pulp and paper industry increased by 41,300 between 194f a n d 1960. The rate of increase was faster than that in manufacturing employment as a whole. Production worker employment during this period, however* rose relatively more slowly than administrative* pro fessional, technical* and clerical employment* and between 1956 and 1960* declined* The outlook for a significant increase in the level of employment over the next few years appears limited. Mechanization of materials handling operations and extension' of continuous processing reduce the opportunities for semiskilled and unskilled workers. Administrative* technical* clerical* and supervisory employees* on the other hand* constitute a growing proportion of employment. A slower growth of employment in the 1960's than in the 1950*s may result in less flexibility in adjusting the work force of the industry to changing technology. Also* in communities where pulp and paper plants are located* this industry may not be as important a source of job opportunities for the expanding labor force of the 1960*s as it was in the 1950's. Adjustments in Three Selected Plants The potentialities and problems of Introducing some important tech nological changes that will probably be more widely used in the 1960's are illustrated by the experience of three plants: one had installed advanced materials handling equipment in woodroom operations; another* continuous pulping; and the third* automatic devices for paper roll handling. Although the study is limited to three plants* these case studies provide illustrative information on some types of labor problems that may be encountered in the future. Introduction of Changes. Each innovation was part of a sequence of changes whereby capacity of the entire mill was enlarged. This expansion provided occasions for management to consider adoption of advanced technology that would reduce costs of labor* materials* fuel* and capital per unit of out put. Improvements in the efficiency of one operation required improvements in others to achieve a balanced growth throughout the plant. Increased Output per Man-Hour. The technological changes resulted in substan tial increases in output per man-hour in particular operations. Because of initial operating difficulties* however* these gains were not always realized immediately. For each plant as a whole, the increase in output per man-hour was significantly less than in the particular operation mechanized. The rise in output per man-hour was accompanied by a sharp increase in the ratio of plant and equipment and of horsepower to worker. Changes in capital per unit of output varied; in one case* the ratio increased slightly; in another* the innovation produced a saving in capital. Displacement and Reassignment. The immediate result of the changes studied in two of the three plants was the elimination of certain jobs and the reas signment of workers to other positions in the plant according to seniority procedures. The extent to which this caused serious dislocations of workers varied from plant to plant. Where the change involved only a moderate ex pansion of capacity and little increase in plant employment* reassignment of - 5 - workers to avoid layoffs required extensive advance planning, including sup plementing normal attrition by encouraging retirement of eligible employees, opening up apprenticeship for an older worker, and hiring employees on a temporary basis* Where the change accompanied a substantial increase in capacity, displaced workers were absorbed by the need for additional workers, and reassignments were made with little dislocation. Upgrading and Downgrading* The extent of upgrading and downgrading created by the change depended largely on special circumstances and the coverage and size of the seniority unit* Where additional employees were needed to handle a much greater output, former crews were promoted to better jobs. Severe down* grading occurred at one plant, however, where employees in an entire senior ity line were "bumped-back" temporarily to the extra board (a central labor pool) at substantial reductions in wages. Because of the narrowness of the seniority unit, however, some employees with less seniority who were work ing in the line of progression where new jobs were created were promoted to better jobs. Occupational Changes. Only a slight increase occurred in the average grade level of production workers in the plants studied by the case approach. The Introduction of more conveyor!zation and continuous processing, however, produced a significant reduction in the proportion of laborers who moved materials or manipulated machinery by hand. The new jobs required workers to oversee a wider expanse of work flow, relate one processing step to an other, and regulate operations by pushbutton control. Greater automation also Increased the need for instrument repairmen. Despite the increase in automatic operations, however, some manual operations still remained. In the plant as a whole, the general trend in recent years has been toward an increasing proportion of administrative, technical, professional, and office workers. More formal education is now required for those entering the technical and engineering occupations* Training and Retraining. Workers assigned to the newly created positions were retrained at company expense so that they could operate the new equip ment. This training was given by company personnel and by representatives from the equipment supplier. Where the change Involved mechanization of a materials handling operation, training was brief and was provided on the job. The introduction of a new continuous processing system required more elaborate training, lectures, classroom instruction, and training manuals in order to give the worker an understanding of the sequences of the steps that he was monitoring. Workers transferring to existing jobs within af fected departments or elsewhere within the plant received little formal retraining, since they were generally able to acquire job proficiency on the job. At one plant, however, some displaced maintenance employees were assigned to a formal training program to upgrade maintenance skills. - 6 - Implications for Safety and Working Conditions* The technological changes appeared to offer significant opportunities for making the work environment safer. For example, some workers monitor instruments from an enclosed air* conditioned control room. Departments installing modern materials handling equipment reported a decline in incidence of certain handling injuries and strains, this evolved from a reduction in manual tasks and the removal of certain hazards associated with older equipment. At one plant, however, the frequency of injuries was higher until workers adjusted to new equipment and procedures. Moreover, more powerful moving conveyors and high-speed equipment constituted new hazards for severe injuries. Older Worker and Changes. Employees age 45 and over generally benefited in the three plants from the reduction in heavy physical labor. They had no special difficulties in performing new tasks although the initial adjust ment sometimes required a little time. The seniority system in general protected the older worker in transfer and reassignment, but the extent of protection in a particular case depended on the nature of the change and the definition of the unit for purposes of computing seniority. Some older workers encountered substantial downgrading in pay where the unit was defined narrowly. Establishment of Wage Rates. An important phase of installing the new tech nology was establishing wage rates for new jobs. The union agreements gen erally contained a special provision for initiating rate changes. One mill used this period to make a systematic job analysis. Rates were generally negotiated on a tentative basis, and later revised on the basis of actual operating experiences. Another method was to set wage rates for the new jobs cotqparable with similar jobs in other mills. 7 Part I. Trends and Outlook for the Pulp and Paper Industry Development of the Pulp and Paper Industry Workers employed in pulp and paper mills are primarily engaged in operating, controlling, and maintaining large complexes of mechanical and chemical processing equipment* A modern integrated newsprint mill (600-ton daily capacity) costs over $72 million to construct. The buildings are some times spread out over several acres. According to Census data, investment per employee (i.e., gross value of depreciable assets) amounted to $22.6 thousand in 1957, or more than three times the investment per employee in all manufacturing. Paper is made by first converting wood into pulp (a moist semi solid mass of vegetable matter) and processing this material into paper of a wide variety of types and grades. Except for some steps at the beginning and end of the production sequence, materials are moved from step to step in a semi fluid state or as a continuous sheet by pumps, pipes, and moving conveyors, with little direct intervention by workers. Sheets are made from pulp on high-speed papermaking machines, some as large as three stories high and a block long, where the pulp is deposited continuously on the rapidly moving wire mesh screen to form a smooth wet sheet. This sheet is dried as it moves over a series of large drums at speeds up to 2,600 feet per minute. This highly mechanized technology is the culmination of many decades of invention and research by scientists and inventors from many countries. Advances in the search for a more abundant raw material, for improvements in equipment and processes, and for the diversification of products were closely interrelated. The development of papermaking up to the end of World War II can be divided into two stages: the industrial revolution and the era of mass production in the 20th century. The era of automation and research since 1947 is discussed in later chapters. Industrial Revolution The industrial revolution in the 19th century in the paper industry was marked by five major developments: Substitution of mechanical power for hand labor; discovery of more abundant raw material; development of chemical pulping processes; development of special machinery; and a massive reduction in unit labor requirements. Mechanical Power for Hand Labor. The first steps toward replacing hand labor by mechanical effort were the adoption first of the water wheel and later steam as sources of power for beating rags into pulp. These methods replaced ex tensive series of separate, time-consuming hand washing, beating, and pressing operations performed by small groups of workers. Broadening of Raw Material Supply* With the market for paper expanding, an intensive search was initiated for new sources of cheap and abundant raw ma terials to replace rags which were becoming relatively scarce in relation to demand. An important step toward mass production occurred in 1844 when Friedrich Keller, a German, patented a practical mechanical method of obtain ing fibers from wood, an abundant raw material hitherto unutilised. This discovery established a basis for further expansion. Chemical Pulping Processes. The three basic chemical pulping methods (soda, sulphite, and sulphate) now in use, were developed in the second half of the 19th century by English, American, and German scientists. In all chemical pulping methods, the first step is the reduction of pulpwood logs to small chips. These chips are then cooked in a large, cylindrical steel tank called a "digester" where chemicals, steam, and pressure combine to remove lignin and other waste materials, leaving a residue of nearly pure cellulose. The search for more efficient methods of obtaining pulp on a mass scale was pur sued at the same time that revolutionary changes in printing were expanding the mass market for paper. Special Machinery. Along with the development of pulp making technology, important steps in mechanising papermaking itself were taking place. The introduction of the Fourdrinler papermaking machine proved to be a revolution ary contribution to mass production of paper. Continuous papermaking on this machine contrasted sharply with early manufacturing methods which involved a sequence of hand dipping and pressing operations. Sheets of paper were made one at a time. By 1850, nearly every papermill in this country was using Fourdrinler machines, which were developed in England in 1803 by the Fourdrinler brothers. This machine consisted essentially of a rapidly moving wire screen on which pulp was formed into a sheet and carried to a press for drying. Im provements were made so that manual handling of sheets was virtually eliminated. Reduction in Unit Labor Requirements. The Industrial Revolution brought about a massive reduction in laborrequirements per unit of output. Although there are no overall measures of this shift from hand to machine labor, the comments of Carroll 0. Wright, the first Commissioner of Labor, are enlightening: It is very difficult to get at the exact dis placement of labor in the manufacture of paper, but a machine now used for drying and cutting, run by 4 men and 6 girls, will do the work formerly done by 100 persons, and do it very much better. . . . Six men can now produce as much per day on a given sample as 100 men could produce in 1800 of an ap proximate grade. A well-known firm in New Hampshire states that by the aid of machinery it produces three times the quantity, with the same number of employees, - 9 - that it did 20 years ago. In the manufacture of wallpaper the best evidence puts the displacement in the proportion of 100 to 1. 2/ Era of Mass Production The first half of the 20th century may be described as an era of mass production in the pulp and paper industry. Output and employment were substantially increased as greater literacy, improved health and living standards, and a larger population expanded the demand for paper products. Major changes during this period encompassed more powerful and larger capacity machinery, broadening of the sources of raw materials, and changes in the industry's organization and structure. More Powerful and Larger Capacity Equipment. A key factor which enabled the industry to supply the mass demand for paper was the development of more powerful and larger capacity equipment without a significant increase in num ber of operators required. One overall Indicator of this trend was the tripling of horsepower per production worker between 1919 and 1954. 3/ An example of this trend was the fivefold increase in the horse power of chippers. By the 1950's, chippers were being used to reduce logs to chips for chemical pulping without first sawing them into pieces. Much larger chipper discs, the large revolving face plate which holds the cutting knives, were used. These large chippers were often used with hydraulic barkers, which strip the bark off trees mechanically. Another example of the trend was the introduction of larger and more powerful grinders to produce mechanical pulp (groundwood). Until the introduction of the artificial grinding stone in the middle twenties, the most powerful grinder was rated at about 2,400 horsepower; modern grinders are rated as high as 5,000 horsepower. The artificial stone allowed higher operating pressures of wood against the stone, and increased machine speeds. 4/ Although the basic process remained unchanged, significant design improvements in Fourdrinier papermaking machines were made after World War I. The sectionalised machine drive, involving a separate motor drive for each 2/ Industrial Depressions. The First Annual Report of the Com missioner of Labor. March 1886. U.S. Department of the Interior, Bureau of Labor. (Washington, U.S. Government Printing Office, 1886), p. 85. 3/ Derived from Census of Manufactures data. 4/ George S. Witham, Modern Pulp and Papermaking, 3d ed. Revised and edited by John B. Calkin (New York, Reinhold Publishing Corp., 1957), pp. 202-203. - 10 section of the paper machine, made possible substantially higher machine speeds. As a result, average capacity of Fourdrinler machines more than tripled between 1919 and 1947. 5/ Shifts in Sources of Raw Materials, (hie key change in papermaking was the improvement and spread of the sulphate pulping process which made possible the use of southern longleaf pine. Plants and jobs were expanded in Southern States. By 1939, sulphate pulp accounted for 42 percent of all pulp produced. Research by the U.S. Department of Agriculture's Forest Products Laboratory and by Dr. Charles H. Herty, a noted chemist, contributed to this growth. Another key step was the discovery by American chemists, building on the work of European scientists, of ways of eliminating objectionable chemical odors in this process. Changes in the Industry's Organization and Structure. Important changes in the organization and structure of pulp and paper companies accompanied the introduction of mass production. Some of the largest corporations manufacturing paper today were founded during the era of growth between 1890 and 1920. The beginning of the 20th century also saw the growth in unionism. Although skilled workers had been organized prior to this period, the turn of the century marked the beginning of the organization of the bulk of the industry's workers. The extension of unionism throughout the industry continued during the 1930's. Formal organizations were started to carry out research into the chemistry and other aspects of papermaking. The Technical Association of the Pulp and Paper Industry (TAPPI), established in 1913, and the Institute of Paper Chemistry, established in 1929, conducted research that led to im provements in the quality and diversity of paper. Scientific methods began to supplant the craftsmanship of papermakers of the 19th century. 3/ Derived from Census of Manufactures data - 11 - Post-World War II Trent < In Output per Man-Hour* Production* Employment, Hours and Earrings* and Labor Turnover Statistical trends on output per man-hour* production* and employ ment afford a basis for gaging overall effects of post World War II tech nological changes* This chapter therefore reviews trends since 1947 in relation to long-term trends in the industry* Trends in technology and the outlook for the 1960*s are discussed in the following chapters* Increasing Output Per Man-Hour A partial* though useful* indicator of the pace of technological change is the rise in output per man-hour* A rise in this ratio reflects not only technical improvements* but also Such factors as shifts of produc tion from low to high productivity plants* the exit of less efficient firms* and changes in capacity utilization* technology* capital investment per worker* layout and flow of material* skill of the work force* efficiency of management* and labor-management relations* Although output is related to the input of labor* the ratio does not measure the specific contribution of labor* capital* or any other factor to production* Output per production worker man-hour Increased by 66 percent between 1947 and I960* The increase in output per production worker was somewhat less* 59 percent* Output per employee increased by 48 percent* reflecting the growing proportion of nonproduction workers in the industry. (See chart 1 and table A-4*) Output per all employee man-hour increased by 56 percent* The average annual rate of increase in output per production worker man-hour for the 1947-60 period— 3,7 percent per year— was substantially higher than the 2*4-percent rate for the long-term period* 1919-60* (See table 1*) This rate of increase during the 1947-60 period was only slightly above the rate of 3*5 percent for all manufacturing industries during the same period* Table 1. Average annual percent change in output per production worker man-hour, selected periods, 1919-60 Period Long-term rate, 1 9 1 9 - 6 0 ................... • Post-World War I decade, 1919-29 ........... Depression decade, 1929-39 ................. World War II period, 1939-47 ............... Post-World War II period, 1947-60 ......... Average annual percent change 1/ 2.4 5.5 2.6 -2.2 3*7 1/ Average annual rates are based on the least squares trend of the logarithms of the index numbers. - 12 It is noteworthy that the rate of increase in the post-World War II period was below the 1919-29 rate when output per production worker man-hour rose 5.5 percent a year* This was a period of intensive mechanization and modernization of plant and equipment* During the depression decade of the 1930*s* output per man-hour continued to increase but at a lower rate. Short ages of equipment and of skilled labor and management underlie the World War II decline. Except for 1952, output per production worker man-hour increased in every year since 1947. In 1950, 1955, and 1959, following recession periods, the increases were substantially above the average for the entire period. In 1953 and 1957, however, the increases were substantially below average. Chart 1. Indexes of Output, Man-Hours, and Output Per Man-Hour, Pulp, Paper, and Board Industry, 1919-60 INDEX (1947=100) Production Trends Production of pulp and paper (BLS weighted Index) increased by 73 percent between 1947 and 1960. The rate of increase for the post-Wbrld War II period— 4.5 percent a year— was only slightly above the long-term (1919*60) average rate of 4.3 percent. Moreover, the postwar rate of pro duction growth was only slightly higher than the rate of increase in output per production worker man-hour. Over the entire 1919-60 period, however, production expanded at a rate almost twice that of output per man-hour. - 13 - The industry*s output growth rate was slightly higher than the growth rate of total industrial output. The postwar rate of increase— 4*5 percent-compares with the annual growth rate of 4.1 percent shown by the Federal Reserve Board index of total industrial output. Long-term rates for the 1919-60 period show a similar relationship, 4.3 percent a year compared with 4.1 percent for industrial production. Growth of output over the post-World War II period, however, was uneven. In the 1949 recession output declined, then recovered sharply; in 1952, during the Korean war, output again declined. Following a 3-year period of substantial growth ending in 1956, production declined in 1957. The re covery in 1959 was sharp, with output exceeding the 1956 peak. Preliminary data indicate that expansion continued in 1960. (See table A-3.) Output varied considerably, by type of paper and board. Between 1947 and 1960, the output of special food board, such as used in frozen food packages, containers, and cups, more than tripled, and newsprint and sanitary and tissue papers more than doubled. (See table 2.) Table 2. Production of paper and board, and percent increases by grade, 1947 and 1960 Grade Newsprint ................ .......... . Printing p a p e r ..... ................. ...... Fine papers .............. ....... Coarse and special industrial papers ....... Sanitary and tissue papers ................ . Container b o a r d .......... Bending board (except special food board) .. Nonbending and other paperboard ............ Construction paper .............. ........ . Construction board .............. ........... Production 1/ (in thousands of tons) 1947 1960 833 3,029 1,172 3,293 1,089 4,944 2,298 460 1,635 1,289 1,072 2,004 4,668 1,771 4,753 2,217 8,649 2,905 1,478 2,804 1,422 1,789 Percent increase 140.6 54.1 51.1 44.3 103.6 74.9 26.4 221.3 71.5 10.3 66.9 1/ Unweighted aggregate tonnage. An output index for this indus try based on these data would differ from the output indexes shown in tables A-3 and A-4 which include pulp, and are based on weighted averages for 24 product classes. Source: U.S. Department of Commerce, Bureau of the Census. - 14 - Postwar gains in production, however, did not keep pace with ex pansion in capacity. Between 1957 and 1960, rate of capacity utilization in paper and board mills (according to American Paper and Pulp Association data) averaged only 88 percent; well below the rate of nearly 100 percent preferred by the industry, and the actual operating rates of over 96 percent during 1955 and 1956. (See chart 2 and table A-2.) A high rate of capacity utili zation is considered desirable by the industry because of substantial fixed costs. Chart 2. THOUSANDS OF TONS Production and Capacity of Paper and Board and Percent of Capacity Utilized, 1947-60 Source: Capacity, American Paper and Pulp Association Production, U.S. Department of Commerce, Bureau of the Census. - 15 - Employment, Hours, and Earning* Although output in the pulp and paper industry increased by 73 per* cent between 1947 and 1960, production worker employment rose by only 8 per cent. Nonproduction workers (i.e., administrative, professional, technical, and clerical) increased by 93 percent so that the total number of employees rose by 18 percent (from 234,000 in 1947 to 275,300 in 1960). In 1960, non production workers constituted 19 percent of all employees; in 1947, they comprised only 12 percent. (See chart 3 and table A-5.) The employment in crease in the pulp and paper industry was significantly greater than the rise in employment in all manufacturing industries between 1947 and 1960. Chart 3. Employment in the Pulp, Paper, and Board Industry, 1947-60 THOUSANDS OF WORKERS Following a peak in 1956, the number of all employees declined by 2,700. The decline in production worker employment between 1956 and 1960 amounted to 7,500, while nonproduction workers Increased 4,800, from 47,600 to 52,400. The decline in production worker employment reflected the slow rate of increase in output relative to that of output per man-hour. Output per production worker man-hour increased at a rate of 3.5 percent a year (com pounded) while total output increased somewhat less (2.7 percent). Pro duction worker employment declined by 0.8 percent per year. 16 Average weekly hours for production workers in the industry varied only slightly between 1947 and 1960, declining from 44*2 to 43*4 hours* (See table A-6.) Compared with average weekly hours in manufacturing (39*7 in 1960), the average in the pulp and paper industry is relatively high* Produc tion workers in pulp and paper averaged 5*1 hours overtime per week in 1960, compared with 2.4 overtime hours for production workers in manufacturing* Compared with manufacturing earnings, the average hourly earnings of production workers in pulp and paper increased at a greater rate between 1947 and I960* Production workers in both industries averaged about $1*22 per hour in 1947, but by 1960, the average hourly rate in pulp and paper had reached $2.42, compared with $2.26 in manufacturing. Average weekly earnings of production workers in pulp and paper were also well above manufacturing in 1960 ($105*03 compared to $89*72) because of the longer workweek and the higher hourly rate* These data exclude gains in certain supplementary bene fits such as pensions and related benefits* (See table A-6«) Shifts in Location of Jobs One of the most significant employment developments (based on Census data) between 1947 and 1958 was the shift in the regional distribution of jobs. The Northeast and North Central regions lost in proportion of workers) total employment in the Northeast declined, and the increase in employment in the North Central region was below the United States average* In contrast, the South and West experienced sharp gains in employment; both regions had approximately one-third more employees in 1958 than they had in 1947* (See chart 4 and table A-7.) The South in 1958 was the dominant region, with more than one-third of the total employment In the industry* Chart 4. Percent Changes in the Distribution of Employees and Establishments Pulp, Paper, and Board Industry, 1947 to 58 PERCENT CHANGE United States and Census Region PERC EN T CHANGE 'Excludes pulp mills because data are not strictly comparable^ Source: U.S. Department of Commerce, Bureau of the Census. - 17 - The expansion of jobs in the South and West accompanied a signifi cant increase in the number of paper and board establishments in these regions. Although the total number of establishments grew by only 12 percent between 1947 and 1958. the number in the South increased by 22 percent, and the num ber in the West doubled. In the North Central region, however, the net in crease was slightly below the industry average, and in the Northeast, the number of plants declined by 1 percent. (See chart 4 and table A-8.) Shifts in the location of plants relative to available raw materials have long characterized the industry. Until wood was substituted for rags and straw in the manufacture of pulp, the industry was concentrated in the populous States of New York and Pennsylvania. After the 1880's the industry shifted toward its new sources of raw materials, first, near the forests of the Northeast and then into the North Central States. Rapid expansion into the West began early in the 20th century, and into the South, in the middle twenties, with the discovery of new processes which made it economically feasible to manufacture pulp from southern pine, hemlock, Douglas fir, and other species found in these regions. Labor Turnover The specific impact of technological change on labor turnover trends cannot be readily isolated from various economic factors affecting the labor market. Changes in hiring and layoff rates reflect the expansion and con traction of business activity and the opening and closing of plants because of competitive or other conditions as well as the effect of laborsaving inno vations. It should be recognized that workers whose jobs are abolished be cause of technological change possibly may not be laid off until periods of recession. Moreover, workers laid off during business declines may not be rehired during recovery because of laborsaving changes introduced in the interim. Finally, when opportunities are lacking generally, fewer workers quit their jobs and plants which have installed laborsaving machinery may not be able to reduce employment by means of attrition to the extent possible when jobs are generally abundant. The changing demand for labor in the pulp and paper industry is reflected in the sharp reduction in hiring rates and the rise in layoffs since 1949. The total accession rate was reduced from an average of 23 employees per 1,000 in 1949-51, to 16 per 1,000 in 1958-60. The number of new hires declined substantially. The layoff rate rose from an average of 6 employees per 1,000 in 1949-51, to 7 employees per 1,000 in 1958-60. The quit rate declined from an average of 13 employees per 1,000 to 7 per 1,000 during the same period. (See table A-9.) 13 Trends in Technology and Research Technological developments in the 1950's marked the beginning of automation as well as the continuation of earlier developments. Along with changes in technology came a substantial increase in expenditures for re search. According to one expert, "It is no exaggeration to state that in the past 5 years we have progressed as far as in the previous 20 years. . . ." 6/ Relatively large postwar expenditures for new plant and equipment provided mills with opportunities to install these latest improvements in papermaking technology. Between 1947 and 1960, close to $5 billion was spent for new machinery and equipment and for new structures and additions to plant. Consequently, between 1947 and 1960, paper and paperboard capacity increased by 76 percent. (See tables A-l and A-2.) Looking to the future, one expert concluded: "The paper industry is in the midst of a period of growth and evolution from which it may emerge quite changed from its traditional character." 7/ Technological changes in this era of automation are described under four major headings: trend toward continuous automatic production; development of improved measurement, in spection, and control devices; development of new sources of raw materials; and growth of research and development. Trend Toward Continuous Automatic Production A significant postwar trend has been the linking together of separate production steps and the elimination of labor involved in direct production. This trend is particularly important in wood handling, pulping, and shipping operations* Materials Handling. One of the most important steps toward continuous auto matic production involves the mechanization of materials handling. These changes encompass improving and expanding conveyor systems, merging separate conveyor lines into unified systems, and centralizing control units so that materials move from step to step with a minimum of labor. Woodyard operations offer particularly challenging materials hand ling problems. Unloading pulpwood in the woodyard from railroad cars, trucks, or barges, and transporting it to storage prior to barking and chipping, 6/ Lee Eberhardt. "Economic Impact of New Processes on the Pulp and Paper Industry," The Paper Industry (Fritz Publications, Inc., Chicago), March 1958, p. 982. TJ McGraw-Hill Encyclopedia of Science and Technology, Vol. 9 (New York, McGraw-Hill Book Co., 1960), p. 541. - 19 require extensive manual effort* Some pulpmills have developed unique sidedumping rail cars and other mobile devices which either rake or shove pulpwood off cars and into conveyors or flumes* These changes greatly reduce the need for manual labor. A few mills have installed automatic paper roll handling systems in their shipping departments. These systems utilize conveyors to transport paper rolls automatically through banding machines and scales, and then to loading platforms or storage areas with a minimum of handling. The worker monitors these shipping operations from a central control panel, and memory devices and electric eye mechanisms are used to actuate an operation at a specific location. Continuous Pulping. Another significant development toward continuous automatic production is the growing use of continuous pulping systems. These systems differ from conventional batch pulping methods because of the con tinuous flow of the input of wood chips and of the output of pulp. Automatic controls, involving instruments to measure and control temperature and pressure in the pulping process, are an important feature of these systems, and they eliminate the need for manual starting and stopping of each batch. 8/ Continuous pulping offers important economies in capital through a reduction in physical plant required per ton of pulp produced, laborsavings resulting from a reduction in manual operations, and steam savings owing to a reduction in the liquor (cooking agent) to wood ratio. Installations of continuous pulping after 1945. Three continuous systems were in 1945; by 1958, 50 were in use (principally in systems, however, still comprise only a small 1,000 pulping systems in operation. 9/ 2d ed. systems increased significantly operation in North America in the United States). Continuous proportion of the more than 8/ James P. Casey. Pulp and Paper: Vol. 1, Pulping and Bleaching. (New York, Interscience Publishers, Inc., 19<)0), p. i04. 9/ John 0. McCutcheon. "Continuous Pulping," Paper Mill News (L. D. Post, Inc., Philadelphia), March 28, 1960, pp. 46, 48. 20 Improved Measurement, Inspection, and Control An important aspect of automation is the introduction of instrument tation and automatic control. Paper mills have adapted new developments arising out of advances in electronics to their own special production technology. Instrumentation. Since manufacturing pulp and paper involves processing with large quantities of steam, water, and chemicals, instruments for measuring and regulating temperature, pressure, liquid flow rates, levels, and con sistencies, are used extensively. The increasing emphasis on quality control has alerted management to the importance of instrumentation which offers more accurate and reliable control of these variables, than is possible with human operators. One example of an important advance in instrument technology is the magnetic flowmeter. First Introduced in 1955, this instrument is being widely adopted to measure and control the flow of pulp through refining equipment. The magnetic flowmeter makes use of a magnetic field and an electrical current to measure continuously and accurately the velocity of the pulp flowing through a pipe, regardless of variations in pulp consistency, temperature, and pressure. No obstructions interfere with the flow of pulp. An important advantage of magnetic flowmeters over other measuring instruments is their low maintenance requirements. 10/ Another important development is the installation of controls for several processes at central control stations. These stations are generally clean, air-conditioned rooms where an operator and an assistant read, monitor, and log instruments for an entire operation. A key advantage is that all motors and pumps can be started, regulated, and stopped, quickly and effi ciently. Warning systems which utilize light and sound signals enable an oper ator to pinpoint quickly an equipment malfunction. When a breakdown in one unit occurs, the interlocking control systems automatically close down other units to prevent further damage. In some systems, adjustments are made auto matically in other parts of the system to ensure a continuous flow rate. 11/ Graphic control panels are being used increasingly. One expert de fines this innovation as: " . . . a central control panel, on which appear devices for maintaining control and obtaining records, in addition to a process flow diagram illustrating the most important process equipment; all panel in struments being located on the flow diagram relative to their actual point of 10/ R. F. Barber. "Process Instrumentation for Continuous Refining," Paper Trade Journal (Lockwood Trade Journal Co., Inc., New York, October 31, 1960), p. 24. 11/ M. C. Boyd. "Automation for Insulating Board at Barrett*s New Sunbury MiTT," Taylor Technology (Taylor Instrument Companies, Rochester 1, New York, Fall Issue, 1957), pp. 16-17. - 21 control in the process.M 12/ An important element of these systems is that an operator can readily scan the panel and make necessary adjustments with minimum delay. Computers. Paper companies are also exploring the feasibility of applying computer technology to their production operations. For example, one company is testing a computerised process control system on a large paperboard machine. The system provides operating personnel with detailed data on such items as stock flow, composition, and temperature. With a computer, it is possible to analyze data that could not heretofore be collected and to Improve the oper a t o r s control of the entire process. The company expects to realize savings of $600,000 annually by reducing downtime and offgrade time by 75 percent. Besides expanding the system on the paperboard machine, the company plans to apply computer control systems to pulp digesters, caustic and bleach plants, and coating operations. In the opinion of some experts, however, widespread application of computer technology to papermaking depends first on the adoption of more sensitive measuring instruments. 13/ Radioisotope Gages. An important peacetime application of atomic energy in the paper industry is the growing use of radioisotope (beta) gages on paper machines. These gages are used primarily to measure and control the basis weight (weight per unit area) of paper and paperboard, and thickness of coated, laminated, and Impregnated paper products. They consist of radioisotopes which emit beta rays and electronic detection devices which measure the amount uf beta rays absorbed by the paper. Changes in paper density or thickness are reflected by variations in gage readings. Since measurement is continuous and the instrument does not touch the product, this equipment is particularly use ful in paper manufacture. (See Fig. 1.) The use of radioisotopes has yielded substantial operating economies. According to a study by the National Industrial Conference Board 14/ for the Atomic Energy Commission, 99 companies in the paper industry were using beta 12/ J. Newell Stephenson, editor. Pulp & Paper Manufacture: Vol. 4 , Auxiliary Paper Mill Equipment (New York, McGraw-Hill Book Co.,1955), p. 165. 13/ "Computers Enter Paper Industry," Chemical and Engineering News (American Chemical Society, Washington, November 20, 1961), pp. 58 and 60, S. S. Livers. "Taking the Art Out of Papermaking,* Control Engineering (McGraw-Hill Book Co., New York, December 1961), pp. 20-21. 14/ Although the NICB study refers to the paper and allied products industry, operations on which beta gages are used were in the pulp and paper making branches of the Industry. 22 gages in 1957-58. Of these, 93 companies invested a total of $369,000 in radioisotope equipment and facilities during a 12-month period, and realized an estimated net saving of $2,818,000, or nearly $8 for every $1 invested. 15/ Of the $2.8 million saved, 80 percent resulted from the use of radioisotope thickness gages. A manufacturer of coated papers, for example, achieved net savings of $183,000 in 12 months from a $10,000 investment in radioisotope gages to monitor and control coating thickness. Included in these savings were the annual wages of a paper tester for each of three shifts, which amounted to $18,400, and scrap savings of $175,000 attributable to a reduction in off-specification production. 16/ An important though intangible benefit, according to some paper pro ducers, was the improvement in customer relations which resulted from closer quality control and improved quality products. The prospect of substantial savings, with increasing emphasis on quality control, is believed to be lead ing to wider adoption of radioisotope gages. Automatic beta gage measuring the coating applied to the paper base; speed is approximately 1,000 feet per minute. 15/ John J. McMahon and Arnold Berman. Radioisotopes in Industry (New York, National Industrial Conference Board, Inc., 1959), p. 77. 1J6/ Ibid, pp. 77, 80 23 Industrial Television* The use of closed circuit television for inspection purposes is another postwar application of electronics. A basic closed cir cuit television system consists of a camera, a receiver, and a transmission link, such as a coaxial cable or a microwave linkage. These units are said to be reliable and easy to operate and maintain. 17/ Operating experience, so far limited to a few installations, suggests potentialities for cost savings through more efficient utilization of manpower and more efficient inspection methods. A pulp washing installation, for ex ample, currently uses a television camera to permit a worker to inspect pulp washing operations from a distance. This continuous Inspection system is used to warn an attendant of improper pulp formation or vat overflow so that costly production delays can be prevented. Although currently used on a limited basis, television units are expected to become more widely adopted as new applications become feasible. Experts see potential uses, for example, in controlling and inspecting con veyor operations in the woodyard and in the shipping department. The use of television to read Instruments in certain recovery operations is expected to reduce accidents. Development of New Sources of Raw Materials The search for low-cost raw materials and the adaptation of manu facturing processes to them have long been dominant features of technological developments in the paper industry. The direction of current trends in pulp ing, according to one expert, " . . . is to use whatever species are available and to adapt the cooking process to those species. The development of new pulping processes has been a necessary accompaniment of the broadening in the number of wood species used." 18/ Semichemical Pulping. One of the most important postwar trends is the increased use of semichemical pulping systems which can utilize low cost Southern hard woods. Because of the decline in softwood reserves, this new source of raw material has been particularly valuable. Like other changes in raw material utilization, this has important implications for location of plants and jobs. 17/ G. I. Burner. The Use of Closed Circuit Television in the Paper and Pulp Industry (Conference paper presented at A.I.E.E. Paper and Pulp Conference, Gainsvllle, Fla., March 8-9, 1956). 18 pp. 18/ James P. Casey. Op. cit., p. 102 24 This process involves a relatively brief chemical treatment of chips, followed by mechanical separation of the fibers. Semichemical systems permit higher yields from pulp wood than can be achieved in full chemical systems. Semichemical pulp combines well with regular chemical and groundwood pulps, resulting in improved forming characteristics. 19/ First developed in 1925 by the Forest Products Laboratory, semi chemical pulping was adopted slowly until the end of World War II. Even in 1952, only 22 semichemical pulping mills were in use. By 1961, however, 48 such mills were in operation. 20/ Although semichemical pulp comprised only 8 percent of total pulp output in 1960, semichemical grades are expected to increase in importance. In 1950, semichemical pulp comprised 5 percent of total output. 21/ Some experts predict that in total tonnage produced, semi chemical pulps will eventually rank second in importance to regular kraft sulphate pulp. 22/ Use of Wood Residue Pulping. A significant postwar development in Pacific Coast pulpmills is the growing use of sawmill residue such as slabs and edg ings as raw material in pulping. Wood chips from sawmill wastes now account for about 40 percent of all pulpwood consumed in these mills. Some new mills report using purchased wood chips almost exclusively, thereby achieving labor and capital savings in woodyard and woodroom operations. Although experts foresee further expansion in use of sawmill residue, they predict that even faster growth would occur if an economical, portable chipper and barker could be developed capable of processing western woods. This would enable sawmills to convert waste to chips economically and thereby increase the supply of chips for sale to pulp mills. Moreover, this equipment could efficiently process logging wastes such as limbs and small trees which are customarily left in the forests. 23/ 19/ George S. Witham. Op. cit., pp. 157-158. 20/ Lockwood*8 Directory of Faper and Allied Trades (Lockwood Trade Journal Co., Inc. , New York:), 1952 and 1961 eds. 21/ Pulp, Paper and Board. (U.S. Department of Commerce, Business and Defense Services Administration. Annual Review issues, March 1961 and March 1960). 22/ George S. Witham. Op. cit., p. 185. 23/ John A. Guthrie and George R. Armstrong. "The Pulp and Paper Industry," Western Forest Industry: An Economic Outlook. Published for Re sources for the Future, Inc. (Baltimore, Johns Hopkins Press, 1961), pp. 121-123. 25 - Future Advances. Research followed over the past 100 research in breeding trees tions and jobs in the pulp may introduce some departures from the processes years. For example, some experts see the need for free of bark and impurities, so that many opera mill would be eliminated. 24/ A new development under study, the "bush mill pulping concept" could have far-reaching implications for the location of the industry and its employ ment. This may involve locating pulp mills near the source of wood supply, partially pulping the wood and shipping semiconverted pulp to a central mill for further processing. If feasible, this method would yield economies in transportation. In addition, some experts see the possibility of using the bush mill concept in connection with a small, semiportable paper machine, recently developed, which could be located at the market rather than at the raw material source. 23/ Research and New Products A key factor in postwar technological change is the increased ex penditures for research and development activities to broaden raw materials utilisation, improve production processes, and to develop new products. Accord ing to a National Science Foundation survey, the paper and allied products industry in 1960 spent $66 million on research and development. This amount was 50 percent greater than was spent in 1956. 26/ A portion of this in crease resulted from increased salaries and other costs, as well as from more workers engaged in R&D activities. 27/ 24/ "Searching the Sixties . . . for Future Growth," Paper Mill News, February 29, 1960, p. 31. 25/ Lee Eberhardt. Op. cit., pp. 983 and 996-997. 26/ Funds for Performance of Research and Development in American Industry, 1960 (Preliminary Report). National Science Foundation, Reviews of Data on Research and Development (Washington, U.S. Government Printing Office, 1961), pp. 3 and 5. 27/ The data on research and development activities presented in this report are for the paper and allied products industry (SIC 26), and con sequently includes plants engaged in converting activities. Data on research and development expenditures in the pulp, paper, and paperboard segment are not shown separately. 26 About 98 percent of these expenditures were for applied research. For example, one field of applied research is the development of new uses for lignin, now a waste substance from the pulping process. However, $1 million was spent in 1960 for basic research. One large diversified paper company, for example, reports carrying on a continuing program in fundamental research on the chemical and physical structure of cellulose and lignin molecules. The objective is to gain an understanding of materials worked with and to pro vide support for future research. The development of new paper products and processes is one of the goals of research and development. A recent McGraw-Hill report, for example, estimates that 8 percent of the sales of the paper and pulp industry in 1963 will consist of products that were not on the market in 1959. 28/ Stretchable kraft paper is an outstanding example of a product recently introduced. Some of its useful properties are its great toughness, flexibility, good printability, and excellent folding qualities. The use of stretchable paper has thus far been primarily in the field of packaging, such as multiwall and grocery checkout bags. One important trend is the development of new products by combining paper with products from other industries, especially plastics and metals, to produce end products with desirable features of both materials. For example, a low cost paper that conducts electricity has been manufactured by combining aluminum and wood fibers, and is reported well suited for many industrial electronics applications. Another firm is marketing inexpensive paper baking dishes coated with polyethylene plastic to withstand high oven temperatures. 29/ New types of plastic coated paper for cartons is being sold with unique proper ties to protect contents from damage from moisture, grease, etc. According to some experts, an even wider range of new products may be feasible if the in dustry can develop a technique for blending plastics with pulp prior to reach ing the paper machine. 30/ 28/ The American Economy— Prospects for Growth Through 1975 (New York, McGraw-Hill Book CoT, 1961>,p . 13. 29/ David G. Smith. nal, Dec. 1 7 1961, p. 1. "Promoting Paper . . .," the Wall Street Jour 30/ Charles W. Heckroth. "Significant for the Sixties Paper Mill News, Dec. 26, 1960, pp. 29-30. • • • t - 27 An important research goal in this industry is the development of low cost paper products as substitutes for textiles. One large firm, for ex ample, has developed a bonded web, nonwoven fabric from cellulose, with certain characteristics of cloth, which can be made water repellant and fire resistant. Relatively inexpensive and easily disposable, industry experts claim that it is suitable for many applications in medical care. Examples of similar paper products now in use include shop aprons and towels for use in industrial plants, and paper pillow cases, operating table covers, and slippers for hospital use. Looking further ahead, paper firms are undertaking research (in one case with a textile concern) to develop a variety of fabric substitutes. For example, a disposable paper fabric is being developed, which can be produced on conventional papermaking machines, using as a raw material cellulose wadding (a wood pulp product) and synthetic fibers. This material is reported to cost a fifth of the cost of conventional fabrics. Several firms report plans to market low cost paper clothing manufactured from materials of this type, which can be discarded when soiled. One firm is experimenting with a paper fabric that can even withstand laundering. 31/ 31/ David G. Smith. Op. cit., pp. 1 and 8 23 - Outlook for the 1960's The outlook for changes In production, output per man-hour, and employment over the next few years is presented in the following sections on the basis of a review of trends in the industry since 1947 and a weighing of some factors that would tend to alter these trends in the immediate future. Since the industry's growth is affected by economywide factors, significant departures from the overall economic pattern of the 1950's will necessarily influence the outlook for the Industry. Output per production worker man-hour is expected to continue to increase at an annual rate above the long-term average of 2.4 percent a year. In view of the expected rise in production and changes in technology, the rate of increase may be roughly in line with post-Uorld War II changes in output per man-hour. The effect of newly constructed plants on higher levels of out put per man-hour will probably be smaller in the 1960's than during the 1950's when the industry substantially enlarged capacity to meet expanding demand and to overcome obsolescence accumulated during World War II. Paper plants are placing more emphasis on modernization of existing facilities than on the building of new plant capacity. 32/ Greater mechani zation of materials handling in woodroom and finishing operations, improved instrumentation, and the introduction of continuous instead of batch process ing will probably be important sources of laborsavings. Continued efforts by management and labor to improve efficiency and reduce waste should also con tribute to greater productivity. Since technological improvements depend on management's investment decisions, trends in sales, costs, interest rates, taxes, depreciation allowances, and profits necessarily have an important bearing on the outlook for productivity increases. Output of pulp and paper is expected to continue to increase, but at a slower rate than the average 4.5 percent annual rise during the 1947-60 period. According.to 1957 estimates by the U.S. Department of Commerce (based largely on historic relationships to indicators of the economy*s growth), by 1965, net demand for paper and board (unweighted tonnage) may increase by about 40 percent over 1956 or at an average rate (compounded) of 3.8 percent per year* 33/ The increase in the output of pulp would be sometriiat higher. 32/ The U.S. Industrial Outlook for 1961--91 Selected Industries. U.S. Department of Commerce, Business and Defense Services Administration. (Washington, U.S. Government Printing Office, 1961), p. 145, Business Plans for New Plants and Equipment— 1961/1964. (New York, McGraw-Hill Book Co., 1961.) p. 7. 33/ Pulp, Paper and Board Supply-Demand. U.S. House of Representa tives, Committee on Interstate and Foreign Commerce, 85th Cong., 1st sess. (Washington, U.S. Government Printing Office, 1957), p. 20. David L. Luke. "Pulp and Paper," American Enterprise: The Next Ten Years, Martin R. Gainsbrugh, editor” (New York, The Macmillan Co., 196l), p. 217. 29 - The outlook for demand for special food board, sanitary and tissue papers, and building board is considered especially favorable. Continued growth of population and gross national product and more intensive marketing and production of new paper products contribute to increased demand. Improve ments in plastics and other competitive materials, on the other hand, may limit increases in sales. The prospects for a significant increase in the level of production worker employment over the next few years (implied by the changes discussed above) appear to be limited. If output per production worker man-hour in creases at the same rate as during the 1947-60 period, the estimated increase in output by 1965 could be achieved with about the same number of production workers as of I960. This prospect is based on a continuation of the average weekly hours of about 43, which includes on the average about 5 hours overtime. Widespread modernization, higher rates of capacity utilization, and successful cost reduction programs may increase output per production worker man-hour at a faster rate than during the 1950's. In that event, productionworker employment would decline unless production increases at a faster rate than expected. A continuation of the 1947-60 rate of increase in production, on the other hand, could increase production worker employment. The outlook for certain occupations within the industry is more favorable than for others. Installation and maintenance of complex equipment as a result of changing technology and accelerated research and development activities will require more skilled workers and additional engineers and scientists, especially those with specialized training in paper technology. Specific skilled occupations expected to show above average growth include electricians, machinery repairmen, carpenters, pipefitters, and millwrights. During the decade of the 1960's, administrative and clerical occupations may increase faster than production jobs. The demand for semiskilled and un skilled workers, however, will probably decline significantly as more materials handling, continuous processing, and other laborsaving equipment is introduced. 30 Part II. Selected Case Studies Part II of this bulletin presents case studies of the implications of the introduction of technological changes at three pulp and paper plants. The studies cover the background, main objectives, and the impact of spe cific technological changes on labor requirements, displacement and transfer of workers, occupational requirements, working conditions, and industrial relations. The plants were selected after review of technical literature de scribing specific installations of new technology in the pulp and paper in dustry. Each of the three plants was highly advanced in some particular phase of paper technology: two had made important advances in materials handling; and one had introduced continuous processing. Only plants which replaced preexisting systems were selected so that the results of changes could be traced conveniently. The three plants are located in different geographic areas and vary in size. The data which formed the basis for the detailed case studies were collected by BLS representatives during plant visits. This involved inter viewing both labor and management officials who had a direct knowledge of the change, and extracting pertinent data from plant records. In assessing the findings, it is essential to keep in mind certain qualifications of the case study approach. First, the plants selected are not necessarily representative or typical of all plants in the industry or of all plants making changes. The case studies are illustrative only and do not imply that the experiences described are necessarily widespread. Also, the study was not designed to cover the impact of techno logical advances at competitive plants which could not or did not make the changes and therefore may have been adversely affected. The data for the industry as a whole discussed in part I reflect the net effects of such changes. Finally, the case studies cover primarily the objective, formal aspects of the changes. No attempt was made to survey the subjective atti tudes of workers and managers. However, managers, supervisors, foremen, and union officials were interviewed concerning various aspects of the changes. Each case study begins with a brief description of the technological change, and then discusses such topics as changes in capital requirements, output per man-hour, extent of displacement and reassignment, occupational changes, training and retraining, safety, implications for older workers, labor-management relations, and setting of wage rates. - 31 - Case Study of Mechanization of Materials Handling Summary This study concerns the problems that arose when a relatively old mill with a large proportion of older workers mechanized materials handling operations in its woodroom. The change provided additional wood processing capacity needed for future expansions in mill output. Many manual tasks were eliminated and a larger amount of wood was processed with fewer workers. Since production was increased only moderately during the change, extensive planning was undertaken so that layoffs could be averted. This involved use of normal attrition supplemented by encouragement of retirement of eligible workers. There was considerable reassignment of workers to jobs elsewhere within the mill. The new equipment required fewer laborers and more machine operators and tenders, but the overall grade level remained relatively un changed. The use of electronic devices to stop conveyors and machinery was a factor in reducing the hazard of serious accidents. Establishing wage rates for new jobs provided management with an opportunity to devise a system atic method of describing jobs. Extensive negotiations between management and unions took place before the final wage rates were established. Description of Plant Plant A, a relatively large pulp and paper mill, employs about 1,500 workers and is a major employer in its community. Approximately 80 percent of its annual production is enamel printing paper for use mainly in magazines. The remaining output consists of a variety of paperboard products such as shipping containers and folding cartons. Annual production is approximately 130,000 tons, and annual sales exceed $20 million. The parent company, of which plant A is a major division, has been one of the pioneers in papermaking technology. Since World War II, the com pany has spent more than $62 million for new facilities and plant improvement A new research and development center has been built to coordinate research and development with engineering, marketing, and manufacturing activities. Plant A's new woodroom, its most important postwar laborsaving innovation, is considered one of the most completely integrated and highly mechanized wood processing installations in the industry. According to some industry experts, it is "the forerunner of woodrooms of the future." The plant also installed beta gages and automatic controls on paper machines, conveyors, control instruments, improved pulp refining equipment, and new equipment to prepare paper coating materials. Specific projects planned for the future include the development of new paper coating tech niques, and more efficient methods of recovering chemicals from manufacturing operations. 32 Converting logs into chips is the first step of papexmaking in this plant. The basic process consists of sawing pulpwood logs to proper length, removing the bark, and converting them into chips. In the old woodroom, this process required an extensive series of manual operations. Although sawing, barking, and chipping operations were done on special purpose machinery, a considerable number of men stationed adjacent to the conveyors were still re quired to break up log jams, manually remove inadequately barked logs from conveyors, and perform numerous other heavy tasks by hand. Several important limitations of the old system motivated manage ment to plan for a new woodroom. The old system had too little capacity to sustain additional output; most of the equipment was in need of replacement, and labor costs were relatively high. A planning group consisting of the plant superintendent, a foreman, and several company engineers drew up spe cifications for a new woodroom. Company A's new $1.8 million woodroom began operations in August 1955. Company construction crews under the supervision of company civil engineers installed the equipment. Six different companies supplied equip ment, conveyors, motors, control units, and pumps. Major Technological Changes More machinery and expanded conveyor systems sharply reduced the number of manual operations. Capacity was increased by nearly 60 percent. The new system is flexible and can process a variety of softwoods and hard woods. Major technological innovations in the new woodroom are described in the following paragraphs. Faster Transportation System. The efficiency of transporting logs from stor age to the woodroom entrance was substantially improved by a new pumping sys tem which induces a faster current in the wood pond. The number of employees who formerly propelled logs by using long spiked poles has been greatly reduced. More Extensive Conveyor!zation. An extensive integrated conveyor system which transports logs through a sequence of processing operations also helped to increase efficiency. This conveyor system consists of a main sorting belt and several auxiliary conveyors. The system permits the return of improperly barked logs to the barkers, diversion of groundwood logs to special saws, and routing of logs to one of two chippers. Since log jams along the new con veyor system occur less frequently than before, important laborsavings were derived from a substantial cutback in standby inspection personnel. More Powerful Equipment. More powerful wood processing equipment is used. The barking drums now remove a greater percentage of the total bark and hence eliminate manual debarking operations. Reduction in employment also resulted from substituting mechanical for manual methods of loading and positioning logs in the splitters and chippers. 33 Increased Equipment Capacity. An important change was the enlargement of the capacity of the chippers, a key step in the woodroom operations. The chippers in the new woodroom can accommodate 8-foot logs, whereas the older equipment could process only logs less than 2 feet long. The total combined horsepower of the two chippers in the old system was 650, while the main chipper in the new system alone is rated over 1,000 hp. The amount of sawing required was reduced with significant decreases in material and labor. Centralized Control Systems. An outstanding feature of the new woodroom is the centralized control system. Transporting logs efficiently through a se quence of processing operations by integrated conveyor systems requires more coordinated control of operations. Regulation of all operations is now cen tered in two locations. Pushbuttons on these control units supplant less efficient and less dependable manual control methods at a number of scattered locations. Some overall measures of mechanization in the woodroom are shown in table 3. Total horsepower in the woodroom was increased nearly threefold. Because of reduction in employment, horsepower per worker was increased seven fold. Table 3. Woodroom of plant A: Horsepower installed and daily capacity, before and after modernization Item Before modern ization After modern ization Percent change Total horsepower installed ......... 1.130 3,160 179.6 8.9 65.8 639.3 450 713 58.4 2.5 4.4 76.0 Horsepower per worker ........ ......... . Daily (24 hour) capacity (cords) ................ .............. Horsepower per cord of daily capacity ....... ..................... . Source: Derived from data from plant records 34 Effect on Output Per Man-Hour Mechanization resulted in a sharp increase in output per man-hour in the woodroom. (See t'able 4.) Cords processed per man-hour increased more than 200 percent. Although actual volume of cords processed was only 14 per cent higher, man-hours dropped sharply. Table 4. Woodroom of plant A: Output per man-hour, and unit man-hour requirements, before and after modernization Item Cords processed (annual) ............. Man-hours (annual) ................... Cords per man-hour (average)..... . Man-hours per cord (average) ........ Source: Year be fore modern ization Year after modern ization Percent change 119,853 264,160 .454 2.20 136,754 99,840 1.370 .73 14.1 -62.2 201.8 -66.8 Derived from data from plant records. These substantial output per man-hour gains, however, did not occur immediately. About 1 year was required to overcome operating difficulties, because of the breakdown of several conveyors. Effect on Capital Requirements The technical changes involved a substantial increase in the volume of capital installed per worker. In the new woodroom, capital investment per worker was about $37,000, compared with about $8,500 (estimated replacement cost) in the old woodroom, an increase of 336 percent. Total value of plant and equipment was 65 percent higher, but the number of workers was reduced sharply. (See table 5.) In terms of capacity, the ratio of capital per unit of capacity was only 4 percent greater than in the old woodroom. Table 5. Woodroom of Plant As Value of plant and equipment* before and after modernization Before modernization Item Value Value per Value per of plant and of plant and worker of plant and 100 cords of 1/ 2/ equipment equipment If After modernization Percent change $1,077,504 $1,774,887 2/ 64.7 8*484 36,977 335.8 239,445 248,932 4.0 equipment capacity Estimated replacement cost at time of change. Affected by price changes as well as by amount of plant and equipment. Sources Derived from data from plant records. Effect on Costs Tangible savings in the cost of processing a cord of pulpvood through the woodroom were achieved. Although hourly wage rates rose by more than 20 percent in a 5-year period because of percentage wage increases* gross costs per cord remained virtually unchanged. The net cost per cord actually declined by 6 percent vften the value of bark recoverable for use as fuel is deducted from gross costs. Annual savings in payroll alone amounted to nearly $300*000 the year following the change* owing to the elimination of 79 jobs. More than $70*000 was also saved from the increased value of bark recovered for use as fuel. Based on these savings* the $1.8 million cost of the new woodroom would be amortized in less than 5 years. Effect on Plantwide Output Per Man-Hour Since employment in woodhandling conprised only about 13 percent of total plant employment* gains in output per man-hour for the plant as a whole were substantially less. Output per man-hour for the plant rose by about 15 percent. Total output increased by 19 percent* while total man hours were up by 3 percent. 36 Displacement and Reassignment The installation of new laborsaving equipment resulted in a sharp reduction in the number of jobs required in the woodroom, and in reassign ment of a substantial number of workers directly affected to other jobs within the woodroom and throughout the mill. Reduction of Jobs and Reassignment. The number of jobs required in the woodroom was reduced from 127 to 48, or 62 percent. (See table 6.) Of the 127 employees in the woodroom, 66 were transferred to other departments. Although none of the workers affected was laid off, 11 voluntarily retired, 1 quit, and 1 died. Of the 66 workers transferred to other departments, a large pro portion were initially reassigned to the yard, and subsequently reassigned as job openings developed in other departments of the plant. Fifteen months after startup of the new system, one-third of the 66 workers were still working in the yard. Workers who were retained in the woodroom were also reassigned to other jobs. Only five were assigned to the same job they had before the change. Downgrading and Upgrading. Approximately two-thirds of the workers affected by these changes experienced some change in grade status. (See table 7.) Forty-five workers were upgraded, and 30 were downgraded. Those who remained in the woodroom had about the same experience as those who were transferred. Although the hourly wage rate for some employees declined upon transfer from the new woodroom, percentage wage increases received by these employees in the next year more than offset most of these reductions. Changes in Plant Employment. Total plant employment declined by 60 employees from December 1954 to December 1955, or 4.1 percent. This reflected quits, layoff of temporary workers and those with the least seniority in the mill, as well as retirements. Some retired because of management*s program to encourage retirement of eligible workers in order to make positions available. Total employment in 1956 rose to nearly the 1954 level, the year preceding the change, and again declined in 1957. Although the employment increase in 1958 more than offset the 1957 decline, employment was still not as high as in 1953. Production in 1958 was about 2 percent below 1953. Change in Occupational Structure A major result of mechanization was the elimination of many jobs primarily done by hand. The job of hand barker was eliminated entirely. Other job classifications either abolished or substantially cut back included tail sawyer, sorting conveyor, and pond man. The number of job titles was reduced from 34 before modernization to 13 after modernization. Table 6. Plant Ai Job status of workers formerly assigned to the old woodroom 15 months after startup of the new system Workers Job status Number Percent 127 100.0 Remained in woodroom ........... ....... . Assigned same j o b ............................... Assigned different job .......................... 48 5 43 37.8 3.9 33.9 Transferred to other departments ................. . Y a r d ............................ ................ Finishing room .................... ........ . Maintenance ........ ........... .................. Cleaning ............ ............ ............. . Stock preparation ......... ...................... Screens and deckers ............ ................. Shipping .......................... .............. . Other (units receiving fewer than 3 employees) .. 66 22 10 6 5 5 4 3 11 52.0 17.3 7.9 4.7 3.9 3.9 3.1 2.4 8.7 Laid o f f ..... ........... ................. ...... Retired ................... ......... ............. Q u i t .......... .................................. D i e d ............................ ................ 13 mm ii i i 10.2 ---8.7 .8 .8 T o t a l .... . Note: Because of rounding, sums of individual items may not equal totals. Source: Plant records Table 7. Plant At Grade status of woodroom workers who remained In the unit, and of those who transferred to other plant departments Workers remaining in woodroom Total Grade status Number Total ........ Upgraded ......... No change in grade Downgraded ....... Sourest ■Jh h m 45 39 30 Workers transferring to other departments Percent Number Percent Number Percent 100.0 48 100.0 66 100.0 39.5 34.2 26.3 18 18 12 37.5 37.5 25.0 27 21 18 40.9 31.8 27.3 Plant records. Another significant change was the shift of maintenance workers to the central plant maintenance pool. Seven maintenance occupations were used in the old system, compared with only two in the new woodroom. Since the new equipment is more complex than the old. it required more technical main tenance. For this reason, management centralised the maintenance function. Although a number of jobs were abolished in the new woodroom. several new job classifications were created. The controller, a key job in the new system, controls a number of processing operations over a wide area. He stands near the main conveyor and oversees and regulates the speed of the conveyor and the flow of logs through processing stations by means of a central control board. He has responsibility for coordinating operations from the time the logs leave the barking drums until they are reduced to chips and transferred to storage. The controller communicates by phone with the sawyer and chip bin operator for purposes of production control. Some jobs retained the same job title but were changed in content. The change in the sawyer's duties illustrates the extent to irfiich some work ers have been removed from direct manual participation in the production process. The sawyer in the old woodroom manually operated a lever to control the movement of a steam-powered carriage used to transport logs to the saws. He made his adjustments in operation of the equipment on the basis of sensa tions such as vibration and sound. The sawyer in the new system, however, controls this operation by pushbuttons located on a central control panel. He stops and starts the movement of the carriage without manual intervention. 39 - Jobs at various stages of the production process now require less physical activity. The method of transporting logs through the pond* for example, has changed. Formerly, pond men utilizing long spiked poles manu ally pushed logs through the pond to the woodroom entrance. Now an elec tric pump produces a current of water which provides sufficient force to move these logs. Pond men are still required in the new woodroom, but their job duties require less physical activity. Improved barking and pulp cleaning methods and a more efficient conveyor system also reduced physical demands of splitting and sorting jobs. The procedure for sorting logs is the same, but workers now have fewer logs to remove by hand from the conveyor for return to the drums for debarking. The splitting and sorting man is no longer required to manually position oversize logs in the splitter, since they are now transported to the chipper by conveyor and positioned automatically. Table 8 summarizes the overall change. The new equipment reduced markedly the proportion of workers in hand occupations. In the old woodroom, more than half of all workers were hand laborers. After modernization, however, only about one-third of all workers were in this category, and more than half were machine operators or tenders. The proportion of supervisors was also higher after the change, although the actual number was less. Table 8. Classification of woodroom occupations, by job content, before and after modernization Job classification Before modernization Number Total ........ ...... ........ Machine operators and tenders .. Machine feeders ............... . Maintenance w o r k e r s ..... ...... Hand laborers .................. Note: equal totals. Sourcet After modernization Percent Number Percent 127 100.0 48 100.0 5 34 6 13 69 3.9 26.8 4.7 10.2 54.3 2 27 0 2 17 4.2 56.2 mtmmm 4.2 35.4 Because of rounding, sums of individual items may not Derived from data from plant records. - 40 - Overall Change in Grade Level. One method of assessing the effect of new technology on skill requirements in the woodroom is to compare the average wage (or grade) level before and after the change. This method gives only an approximation, however, since wage rates are based not only on skill requirements, but also on such factors as working conditions and Job responsi bi1iti es. The average hourly wage (adjusted for percentage wa<>e increases) increased only slightly— from $1.80 in 1954 to $1.82 in 1956; the overall labor grade thus remained practically unchanged. Significant shifts occurred, however, in the proportion of workers in high-end low-wage categories. For example, in the old woodroom only about 1 out of every 25 workers was in a job paying a wage equivalent to $2 an hour. After modernization, however, approx imately 1 out of every 7 workers was making $2 or more. (See table 9.) Table 9. Average hourly wage rate and percent distribution of woodroom employees by wage rate, before and after modernization 1/ After modern!zation Before modernization Number of jobs or employees Total ......... $2.20 and over .... $2.10-$2.19 ...... $2.00-$2.09 ...... $1.90-$1.99 ...... $1.80-$1.89 ...... $1.70-$1.79 ...... Average hourly rate Percent Number of jobs or employees Percent 127 100.0 48 100.0 4 1 0 10 17 95 3.1 .8 2 1 4 2 5 34 4.2 2.1 8.3 4.2 10.4 70.8 *• 7.9 13.4 74.8 $1,799 $1,817 l! In order to compare average rates affected by job changes only, rates before modernization were Increased by an amount approximating percent age wage increases between the two periods. Source: Derived from data from plant records. - 41 - Plantwide Changes* Important shifts in the job structure of the mill as a whole have taken place in recent years. Although not directly related to the changes in the woodroom, they are indicative of the effects of changing technology in the plant as a whole. Between 1953 and 1958, the proportion of employees in administrative, professional, and office occupations Increased in importance relative to those in production and related jobs. Although total employment increased by only 2.0 percent, the number of administrative, professional, and office workers increased by 28.1 percent. The number of production and related workers, however, increased by only 0.3 percent. (See table 10.) Table 10. Plant A: Composition of the work force by occupation or plant department, 1953 and 1958 1958 1953 Occupation or plant department Number Percent Number Percent 1.454 100.0 1.483 100.0 Administrative, professional, and office employees ...... .............. Administrative ................... . Supervisors and foremen ......... . Engineers, chemists, and draftsmen .. Typists, stenographers, etc....... . Miscellaneous office ................ 89 3 41 4 38 3 6.1 0.2 2.8 0.3 2.6 0.2 114 3 54 3 52 2 7.7 0.2 3.6 0.2 3.5 0.1 Production and related workers ....... Wood preparation and handling ...... Pulp mi 11 ........................ . Paper mill ........ ............. . Finishing and converting ............ Shipping and receiving .............. Maintenance and repair ............. . Laboratory testing and research ..... Other I f ...................... . 1,365 183 154 297 230 20 171 24 286 93.9 12.6 10.6 20.4 15.8 1.4 11.8 1.6 19.7 1,369 94 161 290 275 21 214 25 289 92.3 6.3 10.9 19.6 18.5 1.4 14.4 1.7 19.5 Total employment ................... 1/ Includes powerhouse, storeroom, custodial, yard, timekeeping, etc. Note: equal totals. Source: Because of rounding, sums of individual items may not Plant records - 42 - Several overhead occupational groups increased in relative irnportance during this 5-year period: supervisors and foremen, maintenance and repair workers, and typists and stenographers. Employees in the finishing and shipping activities also gained in relative importance. Employment in wood preparation and handling activities declined sharply, owing to the installation of the new laborsaving equipment in the woodroom. In 1953, 2 years prior to modernization, 12.6 percent of all employees were engaged in wood preparation and handling tasks. By 1958, however, only 6.3 percent of all employees were in these activities. A significant change has been a growing need for specialized employees to maintain more extensive and more complex instrument systems. Prior to World War II, plant A needed only one employee working on a parttime basis to service instruments. At present, however, a crew of six full-time instrument repairmen is employed. The size and skill requirements of the parent company*s plant engineering staff (those in charge of building new equipment and making major repairs) were also affected. In 1940, only seven employees were on its engineering staff--four engineers and three draftsmen. By 1959, the engineering staff had grown to 24 employees— 15 engineers and 9 draftsmen. Management at company A now seeks "engineers** with more formal training. It feels that modern papermaking equipment requires more skill and a broader education in engineering. Thus, the company will eventually hire only college graduates to fill these jobs. A graduate engineer is now in charge of the engineering group, replacing an employee who "had come up from the ranks." Training and Retraining Skill in operating the new woodroom equipment required only Informal on-the-job training of workers assigned to new jobs. Representatives from the equipment manufacturer provided instruction. Since most of the job duties in the new system were not complex, the training period generally required only 1 month. The jobs of foremen, controller, and sawyer, the most responsible positions in the new woodroom, required the longest period of training. Employees received their regular wages during the training period. Retraining Reassigned Employees. Workers assigned to jobs elsewhere in the mill were not given special retraining. During the 30-day probationary period provided for in the union agreement, these workers were able to learn their duties on the job. Four employees from the repair crew in the old woodroom, however, were assigned to formal training in the millwright - 43 - apprenticeship program. All of these employees became millwright journeymen within 15 months after the change, and consequently were upgraded in pay. Formerly, they were performing "handyman” type duties. This training program provided an opportunity to acquire new skills in equipment maintenance. Educational Requirements for New Jobs. A significant result of installing new woodroom equipment was the requirement of formal education for employees entering the new jobs. No such requirements existed for jobs in the old woodroom. At first, management felt that the increased complexity of the new equipment, especially the new central control board, would require the foremen and controller be high school graduates, and that employees in the remaining positions have at least an eighth grade education. After the woodroom had been in operation for a time, however, management reduced entry level educational requirements for the foreman and controller jobs, from a high school to an eighth grade education. Effect on Safety Conditions The woodrooms are one of the most hazardous work areas in a paper mill. Workers are in danger of injury from falls on wet surfaces, from being caught in conveyors and other moving equipment, from being struck by logs and chips, and from incurring strains in lifting and positioning heavy logs. The new equipment in plant A reduced the danger of cuts and puncture wounds from barking knives and long spiked poles, but increased the work hazards associated with more powerful and more extensive conveyor systems, and more powerful processing equipment. The elimination of hand barking and hand knotting operations in the new woodroom removed a hazard from the sharp cutting knives, a partic ularly troublesome source of injury. Another source of injury eliminated was the use of long spiked poles to sort and route logs along the pond and the conveyors. Since the number of employees using these spiked poles has been substantially cut back, the number of injuries has fallen correspondingly. The powerful main conveyor and the 1,000 hp., 360 r.p.m. chipper are considered potential sources of serious injuries in the new woodroom. An electric eye safety device has consequently been installed above the main conveyor belt and just ahead of the chipper. Should a workman or an over size log inadvertently approach the entrance of the chipper, the beam of the electric eye is broken, the conveyor stops immediately, and the barking drum doors close automatically. 44 - Statistics on the frequency of disabling injuries for the woodroom and for the total plant are shown in table 11. The high injury-frequency rate in 1955 was due primarily to the newness of the equipment. As workers became accustomed to the new equipment and work flow in the new systems, the rate of injuries declined sharply. Table 11. Plant A: Frequency of disabling injuries 1/ (per million man-hours), total plant and woodroom, 1954-58 Year Area Total plant .... W o o d r o o m .... . 1954 1955 1956 1957 1958 7.05 16.87 10.15 65.19 9.22 15.67 6.61 (2/) 9.25 19.62 1/ An injury which renders an employee unable to perform his regular job duties. 2/ Information not available. Source: Plant records* The Older Worker and the Changeover The changeover to a more mechanized woodroom created factors both favorable and unfavorable for the utilization of employees age 45 and over. No arbitrary age barriers were imposed for new jobs. A provision in the union agreement which provides a 30-day trial period without loss of senior ity for employees transferring to new positions proved a useful mechanism for reassigning older workers. Older employees benefited from the seniority provisions in the union agreement to the extent that they were retained in their former work place to a greater extent than were younger employees. In addition, 4 out of the 5 employees who retained the same job after modernization that they had held before the change were age 45 or over. (See table 12.) Table 12. Plant A: Job status of woodroom workers 15 months after startup of new woodroom, by age group Workers under age 45 Job status Total ........................... Remained in woodroom ............... Assigned same job ................ Assigned different job .......... Transferred to other departments ... Left the company ................... Laid off ......................... Retired ................ .......... Quit ...................... ....... Died ............................. Note: equal totals. Workers age 45 and over Number Percent of total Number Percent of total 60 100.0 67 100.0 21 1 20 37 2 0 0 1 1 35.0 1.7 33.3 61.7 3.3 27 4 23 29 11 0 11 0 0 40.3 6.0 34.3 43.3 16.4 -16.4 - - 1.7 1.7 -- Because of rounding, sums of individual items may not Source: Plant records. Some problems arose, however, in reassigning older employees to positions in the new woodroom. For example, a 66-year-old sawyer in the old woodroom with 40 years of company service was extremely reluctant to accept a job as sawyer in the new woodroom because of the increased respon sibility. The company felt, however, that he could perform well in the new position on the basis of his prior work record. After a discussion with the foreman, the employee accepted the job and performed satisfactorily for nearly 3 years until he retired. Special Problems of Retraining Older Workers. A special provision for the retraining of an older worker to avoid layoff was worked out through joint union-management negotiation. The union requested that the company permit an older relief repairman to enter the maintenance apprenticeship training program to avoid his being laid off after startup of the new system. The company acknowledged "that /this matter7 was something that could be dis cussed, although the company had taken a pretty definite stand /against this7 because of the employee’s age (52). If the union has some new angles, we might explore them.” A special program was finally worked out without es tablishing a precedent, and the employee became a millwright apprentice. - 46 - Labor-Management Practices Regarding Personnel Adjustments About 18 months prior to the startup of the new woodroom, management informed employees in the old woodroom about the forthcoming technological changes. Notice was given that a sharp cutback in woodroom employment would occur. The woodroom foreman assured employees, however, that efforts would be made to reassign affected employees to other positions within the mill. During the 12 months immediately preceding startup, the progress of the change was discussed with union representatives. Within management, plans for achieving an orderly transition were formulated. The Assistant Director of Industrial Relations, in a memorandum to the woodroom superintendent, wrote that: The new woodroom has been designed to do the necessary work of wood preparation with a minimum of manual labor , • • definite plans must be made for reducing the present woodroom crew so that the change can be made in an orderly manner with mini mum hardship. As planning progressed, management was able to determine its per sonnel requirements more precisely and concluded that all affected employees could be utilized somewhere in the plant and that there would be no layoffs. During one of the union-management meetings before-the changeover, company officials set forth certain policies to reduce personnel displacements. As permanent openings occur in the mill, woodroom personnel will be studied to see if a qualified employee is available to fill such a vacancy. His place to be filled then with a yard employee with less seniority, or if no one is available, a man will be hired with the understanding that his woodroom job is only of a tempo rary nature. Encourage those of retirement age in the woodroom to retire when the new woodroom is in operation in order to move younger men up in the new woodroom. Encourage men throughout the mill who are of retire ment age to retire so that more jobs are available throughout the whole plant. Inform woodroom men who will lose their jobs in the woodroom to come in and talk over with the woodroom superintendent, their qualifications and where they would like to work. This statement of management^ policy regarding the adjustments was received favorably by union representatives. 47 Practices Regarding Reassignment. Reassignments of workers were made accord ing to the provisions regarding seniority in the union agreement. These pro visions included: Seniority with ability and qualifications shall govern in promoting, demoting, transferring, filling vacancies and new positions, layoffs, and recalls after layoffs . . . If there should be any difference of opinion as to the ability and qualifications of an employee be ing considered for promotion, the Committee and the Management shall take the matter up for adjustment and settle such differences before promotion is allowed . . . An employee who is transferred or promoted shall be on probation for 30 days for determination as to whether or not he can meet the job requirements. This probationary period may be extended by mutual consent in cases requiring more than 30 days. If at the end of this period, he fails to qualify, or in case of discontinuance of his position during this qualifying period, he shall be returned to his former position without loss of seniority. Employees transferred from one division or de partment to another shall be identified as temporary or permanent, with a written notice of permanent transfers given the union . . . Permanently trans ferred employees will be considered new employees in the division or department to which transferred with their department or division seniority accumu lative from the date of transfer . . . The seniority provisions governed both the selection and assignment of former employees of the old woodroom who were retained in the new woodroom, and the transfer and reassignment of those who were no longer required. The latter constituted the bulk of the original group. Management posted job openings as they developed throughout the mill, and interviewed woodroom workers whose jobs were affected to determine their job preferences. Efforts consistent with seniority and ability pro visions of the union agreement were made to place these workers in jobs they desired. A number of workers were initially reassigned to the yard, and sub sequently reassigned to other mill departments. As workers were gradually transferred out of the woodroom, temporary workers were hired to take their place to insure continuity of operations. - 48 - The 34 men with the longest seniority were finally retained. In assigning these men to jobs, the woodroom foreman first drew up two alterna tive rosters which listed them by seniority. One list placed them according to age and physical condition, following the line of seniority as much as possible and utilizing their experience and skills by placing them in jobs comparable with their present duties. The second list considered seniority only, with the older men falling in line for the more important and physically demanding jobs. The foreman then sent these lists to the woodroom super intendent who forwarded them to the pulp mill superintendent with a recommen dation that only the first list be considered. The woodroom superintendent subsequently talked individually to the 34 men to explain further the opera tion of the new woodroom, to tell them about the jobs to which they might eventually be assigned, and to learn of their Individual job preferences. A summary of the interviews was also forwarded to the pulp mill superintendent. Management then developed a tentative staffing pattern based on the recommendations and interviews and submitted it to the union for comment dur ing a regularly scheduled union-management committee meeting. Several staff ing changes were made as a result of these discussions. Setting Wage Rates for New Jobs. One of the most important steps in planning for the changeover was establishing wage rates for new jobs. The general procedure was provided in the union agreement. Individual wage rates for new jobs or substantially changed jobs may be considered for special negotiations at any time during the term of the agreement . . . Since the extensive technological changes resulted in a substantial change in the structure and content of woodroom jobs, management decided to initiate a more systematic procedure for describing jobs and establishing wage rates. The new method involved an intensive analysis of the new jobs on the basis of their educational requirements, responsibility, skill, and phys ical demands, learning time, and job hazards. Tentative rates for new jobs were established, subject to revision after a 60- to 90-day equipment shakedown, and were then submitted to the union for review. The company and union met prior to startup to discuss these rates. Several revisions were made on the basis of the negotiations. After the woodroom had been in operation 4 months, union and manage ment officials met again to evaluate the tentative rates on the basis of actual operating experience. The union proposed that the hourly rate for six job classifications be revised upward on the basis of unanticipated changes in job skill and responsibility requirements. The company concurred on four jobs, felt no change was necessary for one job, and postponed action on another pending installation of additional equipment. New rates were made retroactive to the date of initial startup. Table 13 summarizes the union and company positions and the final disposition of rates. Table 13. Plant A: Results of union-management negotiations over wage rates for selected woodroom occupations, based on operating experience Job title Union position Company position Results Foreman .......... Job compares with a craft journeyman; rate should be increased. Job carries increased equipment responsi bility, but decreased employee responsibility. Rate increased 4 cents an hour. Controller ...... Job carries responsibility to keep production moving; rate should be increased. Responsibility for keep ing production moving is recognized. Rate increased 5 cents an hour. Pondman .......... Job duties require several sets of work clothing; rate should be increased. Rate satisfactory. No change. Sawyer ........... Job content has changed; large saw requires full time operator; rate ini tially set on basis of part time on large saw and part time on groundwood saw; rate should be increased. Change in job content recognized. Rate increased 6 cents an hour. Chip bin operator ...... Rate should be increased. Job responsibilities recognized. Rate increased 3 cents an hour. Bark handler .... Rate should be increased. Additional equipment to be installed; rate study should be postponed pending installation. Postponed action. Source: Plant records. 50 - Case Study of the Introduction of Continuous Processing Equipment Summary This study describes the installation of a continuous digester to replace an obsolete batch system in manufacturing semichemical pulp. As a result, output per man-hour rose by one-fourth after conversion. Because of the narrowness of the seniority system, the elimination of an entire line of progression meant that some senior workers were downgraded while others with less seniority but in a different line of progression were promoted to better jobs created by the new technology. Management avoided layoffs by trans ferring employees whose jobs were eliminated temporarily to the extra board (a work pool from which temporary and permanent placements are made), and later to other mill departments. The new system required machine operators instead of the former manual labor occupations. The new operation entailed not only training workers on the job, but also providing some outside in struction. Description of Plant Plant B is the largest employer in its community, with over 3,500 employees and an annual payroll of about $18 million. It produces about 300,000 tons of paper, primarily bags and unbleached kraft papers. About one-third of the mill's output is converted into finished products by the plant's Container Division, located at the same site. The bulk of the re maining output is shipped to other plants within the parent company, a large, diversified pulp and paper manufacturer. Nearly 90 percent of pulp produced is sulphate pulp, and the remainder is semichemical pulp. Plant B allocated considerable funds for new equipment during the postwar period. A major outlay was $1.1 million for a continuous digester and washing system to manufacture semichemical pulp from low-cost hardwoods. This shift to continuous digester operations in pulping is one of the impor tant technical changes taking place in the industry. Future installations in the plant will center on mechanized mate rials handling equipment to achieve economies in unloading pulpwood logs from railway cars and trucks and in handling paper rolls in shipping. The plant also plans to purchase more pulpwood in chip form. Major Technological Changes Plant B converts wood chips to pulp in large cylindrical steel tanks (digesters), cooking with chemicals under heat and pressure. This pulp is then washed and refined prior to being sent to the papermill for conversion into paper and paperboard. Prior to installing new equipment, pulp was prepared by the batch method in four conventional digesters and subsequently transferred to a dif fuser room where it was washed in eight diffuser tanks (large steel vats). 51 - The batch method of preparing and washing pulp required employees to move and service heavy equipment manually. The sequence of operations was repeated for each digester in a rotating cycle. Planning the Change. A major reason for installing the new system was that the conventional digesters were rapidly becoming corroded, owing to the action of the cooking liquor. Since operating efficiency was declining, management decided to install an alternative system for producing semichemical pulp. A team of three company engineers was assigned responsibility for determining the economic possibility of a continuous digester. The team estimated that it would yield savings and greater yields sufficient to amortize the equipment cost in about 4 years, even though the cost of this new equipment was about four times greater than the cost of relining the old digesters. The planning team selected the new equipment and developed instru mentation and controls with engineers from the equipment suppliers. The new system required not only the continuous digester itself, but also pulp wash ing equipment; chip storage silos; conveyors and elevators; a pulp storage tank with circulating pulp conveyor system; numerous control instruments; and graphic control panels, pumps, and compressors. More than 12 different com panies supplied this new equipment. The equipment was installed primarily by the company's regular maintenance crew. During construction and initial startup periods, representa tives from equipment suppliers were on hand to assist company engineers. Com plete Installation required about 10 months. The New System. The new continuous system began production in April 1957. Equipment ranging in age from 2 to 40 years was replaced. The old digesters were kept in place and can be put into service in the event of a prolonged breakdown of the new equipment. The two major differences between the old and new systems are summarized in the following paragraphs. Continuous Production. An outstanding feature of the change is conversion from batch to continuous production. In the new system, chips are fed con tinuously and compacted by a screw conveyor; cooking liquor is added auto matically and the pulp, under constant and uniform pressure and temperature, flows through the digester and then on to a continuous pulp discharger which automatically removes partially delignified chips from the digester and deposits them in a storage tank. A mechanism automatically draws the pulp through the tank and deposits it on moving conveyors, which transport it to the washing machinery. - 52 The washing cycle is also continuous and automatic. Chips are forced through the washing equipment in two stages* During the first stage, cooking liquor is removed until the pulp reaches a specified consistency. Water is added, and the pulp is transferred to the second washing unit where the cycle is repeated. During these stages, the chips are being "defibered," a process which was not done in this cycle under the batch system. More extensive Instrumentation. The continuous flow of chips and liquor through successive processing stages required more instrumentation than was used in the batch system. A feature of the new system is the graphic con trol panel, located in an air-conditioned room, where the instruments are displayed. The entire operation is now monitored and controlled by two men, one In the control room and the other in the pulp washing area. Since all instruments are clearly visible, the operator can quickly make required adjustments in operations such as changing steam and liquor flow rates, and conveyor speeds. An alarm mechanism is built into the system to quickly pinpoint the unit where an equipment breakdown has occurred. This unit automatically closes down until repairs are made. The vast change in the extent of mechanization and its effect on plant capacity is shown in table 14. Table 14. Plant B: Horsepower installed, and daily capacity, before and after technological change Indicator Total horsepower Installed ........ Horsepower per worker ................. Daily capacity (tons) ................. Horsepower per ton of capacity ....... Source: Former system New system Percent change 120.0 1,135.0 845.8 10.0 175.0 .7 141.9 150.0 7.6 1,319.0 -14.3 985.7 Derived from data from plant records - 53 Effect on Output Par Man-Hour The effect on output per man-hour of installing the new pulping equipment is shown in table 15. Table 15. Plant B: Output per man-hour, and unit man-hour requirements, semichemical pulping, before and after technological change Item Tons produced (daily average) .... Man-hours (daily) ................ Tons per man-hour (average) ..... Man-hours per ton (average) ..... Source: Year be fore change Year after change Percent change 119.0 96.0 1.24 .81 99.0 64.0 1.55 .65 -16.8 -33.3 25.0 -19.8 Derived from data from plant records. Although output per man-hour increased significantly, production was not as great as management anticipated. Actual production fell substan tially short of the 126 tons desired. One reason was that equipment downtime for maintenance was much greater than expected. The continuous system has a greater number of motors, pumps, conveyors, and other moving parts than the batch system. Foreign objects in the wood chips, and malfunctions in moving parts caused some costly shutdowns during the first few months of operation. However, improved operating techniques, more familiarity with equipment, and equipment modifications are expected to reduce sharply the frequency of break downs. As downtime declines, both production and output per man-hour are ex pected to increase significantly. Other Savings The new equipment yields 10 percent more pulp from the same quantity of wood through closer control of the cooking process. About a third less steam per ton of pulp produced is used: the former equipment used approxi mately 4,500 pounds per ton, the new system, 3,000 pounds. The new continuous system also has a potential for impressive savings in plant space. The system now occupies an area formerly occupied by eight diffusers. 54 Economies achieved in other parts of the mill comprised a signifi cant, but not easily measured result of the new equipment. For example, the use of high consistency washing equipment, which leaves a greater amount of solids in the spent cooking liquor, led to economies in evaporator capacity required. Effect on Capital Requirements The comparative capital requirements for the new and old systems are shown in table 16. Table 16. Plant B: Value of plant and equipment, old and new semichemical systems Item Value of plant and equipment .... Number of workers ............... Value of plant and equipment per w o r k e r ................... Value of plant and equipment per ton of daily capcity ..... Old system New system 1/ $1,500,000 12 $1,085,000 8 2/ -27.7 “ -33.3 $125,000 $135,625 8.5 $8,571 $7,233 -15.6 Percent change g- 1/ 2/ - - ■ - At time of purchase (estimated). Affected by price changes as well as amount of plant and equipment. Source: Derived from data from plant records. Effect on Costs In the first year after installation of the new system, the cost of producing and washing a ton of pulp was greater than in the old system. Al though significant savings were achieved, these economies were more than off set t>y unexpectedly high maintenance expenses as explained on p. 53. Table 17 gives a breakdown of unit costs, before and after the change. Table 17. Plant B: Percent distribution of unit costs in semichemical pulping, before and after technological change Year before change Item Total ......................... W o o d .... ........... .......... . Chemicals .......... . Conversion .............. ......... Maintenance (labor and materials) Operating labor ................ Other c o s t s ................ . \J Year after change 100.0 100.0 57.1 10.7 32.2 1/ 2.8 5.9 23.5 50.2 10.2 39.6 12.6 3.4 23.6 Estimated. Source: Plant records. Within the maintenance account, the composition of cost items has been changed significantly. Prior to the change, labor expenses amounted to 80 percent of total maintenance charges, and materials expenses were 20 per cent. After the change, however, labor costs were about one-third, and parts expense amounted to about two-thirds of total costs. Effect on PIantwide Output Per Man-Hour The gains in output per man-hour tfiich were achieved in the diges ter room had little effect on total plant output per man-hour. Over the same period that output per man-hour rose by 25 percent in the digester room (semichemical pulp), it increased by only 2.4 percent for the total plant. Displacement and Reassignment The change involved the elimination of 12 jobs and the creation of 8 new ones, but in the process 69 workers were affected because of shifting and bumping. 56 Of the 69 workers affected in the two seniority units (61 in the digester room and 8 in the diffuser room), the 61 digester room workers re mained in their unit, and the 8 diffuser room workers were temporarily re assigned to the extra board. These eight workers were eventually assigned to permanent jobs elsewhere in the mill as positions became available. Four other workers (three from the extra board and one from the chip bin) were brought into the digester room to fill vacancies created triien workers moved up to better jobs on the basis of their job seniority. (See table 18.) Thus, the total number of jobs eliminated was small, but a con siderable number of workers who remained in the unit were reassigned to new jobs. Twenty-six of the 61 digester room workers were assigned to a different job after the change. Table 18. Plant 8: Job status of digester room and diffuser room workers after technological change Employees Job status Total .............................. Remained in digester room ••••••••••••• Assigned same job Assigned different job •••••••••••••• Diffuser room employees transferred to extra board Left the company ...................... Source: Number Percent 69 100.0 61 35 26 88.4 50.7 37.7 8 0 11.6 m m Plant records. Downgrading and Upgrading. Of the 69 workers in affected units, 26 were up graded an average of 6 cents an hour, and 8 were downgraded an average of 48 cents an hour. The remainder experienced no change in grade. (See table 19.) Table 19. Plant B: Grade status of workers in affected units immediately after technological change Grade status Total .................... Upgraded ........ ............ No change in grade .......... Downgr a d e d...... . Number Percent 69 100.0 26 35 8 37.7 50.7 11.6 Average increase or decrease (cents per hour) 6.2 --47.5 Source: From 7 to 16 months after assignment to the extra board, the eight workers who experienced sharp cutbacks in pay were reassigned to permanent jobs elsewhere in the mill. They were not able, however, to regain a wage level equivalent to that prior to the change. The average hourly wage rate for the eight workers was $2.15 per hour prior to the change, but was reduced to $1.67 per hour or 22 percent immediately after the change, and then rose to $1.89 an hour after reassignment to jobs elsewhere in the plant. However, this average hourly wage rate ($1.89) was still 12 percent below the average rate they received prior to the change. (See table 20.) Change in Occupational Structure The most significant occupational change resulting from the new equipment was a cutback in manual jobs involving physical, repetitive manipu lation of machinery. Formerly, the workers whose jobs were eliminated manu ally unbolted and removed a heavy steel digester cover, lowered a chute into the digester to refill it with chips after each cook, and then replaced the digester cover and bolted it down. This sequence of manual operations was repeated for each of the four digesters in a rotating cycle. In the washing operation, the workers cleaned the diffuser tanks after each batch of chips was washed— a physically demanding task. Employees in these jobs worked in an atmosphere of wood dust, heat, and steam. Table 20. Plant B: Changes in job assignments and hourly wage rates of the eight diffuser room employees whose jobs were eliminated Em ployee Title Subsequent change Job after change Job before change Hourly wage rate Title Hourly wage rate Title Hourly wage rate Number of months after being assigned to extra board Unit n.9ii 16 Brown stock washers. Filter man 2 .2 7 12 Yard. 1 .6 7 Chip bin 1.91 11 Digester room. Extra board 1 .6 7 (i/) <2 /> (3/) 1.89 Extra board 1 .6 7 Utility man 1.73 10 Sulphate finishing room* Diffuser dumper 1.89 Extra board 1 .6 7 Salt cake roller 1.80 — Recovery room. G •••• Diffuser dumper 1.89 Extra board 1 .6 7 Salt cake roller 1.80 8 Recovery room. H .... Diffuser dumper 1.89 Extra board 1 .6 7 Salt cake roller 1.80 7 Recovery room. A .... Diffuser operator #2.1*0 Extra board 1 1 .6 7 B .... Diffuser operator 2.1»0 Extra board 1 .6 7 C *... Diffuser operator 2.1(0 Extra board D .... Diffuser operator 2.U0 E .... Diffuser dumper F •••• 1/ Information not available. Source: Plant records* Second helper (i/> 59 The content of the new jobs contrasted sharply with that of the eliminated jobs. The operator (pandla cook) monitors a graphic control panel of dials located in an air-conditioned room. On the basis of his readings, he manually adjusts controls which vary digester pressure and temperature, steam and liquor flow, stock chest level, and conveyor speed. He also re cords certain instrument readings in a logbook every hour. In addition to assisting the pandia cook, the assistant operator (pandia helper), occasionally leaves the control room to tour the pulping and washing area to check the condition of the equipment. He also records hourly data from instruments. The impact of these changes on the digester room occupations is summarized in tables 21 and 22. Before the change, about 3 out of every 4 workers were hand laborers; after the change, about 2 out of every 3 workers were in this category. For the semichemical unit only--where the new tech nology was introduced--the occupational shift was more striking. All workers are now machine operators, whereas before they were all hand laborers. Table 21. Plant B: Staffing pattern of digester room and No. 2 diffuser room, before and after technological change Occupations Number employed Be fore After change change Total .............................. 69 65 Digester room ......................... 61 65 Digester cooks ...................... Assi stant cooks *.... ................ Pandia cooks ........................ Pandia helpers ...................... Gas off m e n ....... ................. Measuring tank men ................ Blow m e n ......... ............. . Blow men helpers ........ . Cappers .......... .................. 8 4 — — 12 4 4 4 25 8 4 4 4 12 4 4 4 21 8 0 4 4 1/ 1/ No. 2 diffuser room ................. . Diffuser operators .................. Diffuser dumpers .................... 1/ Diffuser room closed down Source: Plant records. Table 22. Plant B: Distribution of digester room and No. 2 diffuser room occupations by classification, before and after technological change Digester room and No. 2 diffuser room 2/ Semichemical unit only Job classification Before change After change Before change After change Number Number Percent Number Percent Number Percent Total .......... 69 100.0 65 100.0 12 100.0 8 Supervisors ...... Machine operators.. Hand laborers .... 1/ 4 12 53 5.8 17.4 76.8 1/ 4 17 44 6.2 26.2 67.7 0 0 12 » 0 8 0 1/ 2/ — 100.0 100.0 »«■ 100.0 A digester cook is a working foreman. After the change refers to digester room only; No. 2 diffuser room was closed down. Note: mm Percent Source: Because of rounding, sums of individual items may not equal totals. Derived from data from plant records. o i - 61 - Overall Change In Grade Levels* Based on comparisons of average hourly rates, skill requirements in the new semichemical unit, where most of the job changes took place, increased slightly after the change: wages rose less than 2 per* cent--from $2.05 to $2.08 per ton. (See table 23.) In the digester room, the change had little impact on the overall skill level of the unit. In comparing skill levels only on the basis of wage rates, however, it is important to keep in mind that wage rates are established not only on skill levels, but also on working conditions. For example, the unpleasant working conditions of the diffuser dumper were important considerations in establishing his wage rate. Plantwide changes, 1953-58. From 1953 to 1958, total plant employment declined by 5.6 percent, but production increased by 2.6 percent. The reduc tion in employment was accomplished by not filling vacancies and not rehiring workers released because of a business decline. The increase in output per man-hour in the digester room was among the factors enabling the plant to in crease production with fewer workers. The relative Importance of administrative, professional, and office employees increased from 10.2 percent of total plant employment in 1953, to 11.3 percent in 1958. (See table 24.) Significant gains in the relative importance of specific occupa tional groups occurred. Supervisors and foremen, for example, rose from 3.8 to 4.5 percent of total employment. Engineers, chemists, and draftsmen also increased slightly in importance over the 5-year period. Training Workers for New Jobs Training employees to provide them with the skills needed to per form new jobs was especially important, since the content of the new jobs differed considerably from the old ones. Workers selected for new jobs received training over a period of 6 months prior to startup of the new system. As a first step, company engi neers prepared a detailed illustrated manual describing the new system's operation, a copy of which was given each worker to study. Next, a series of lectures on the subject was presented during working hours by company engi neers and representatives of the equipment suppliers. Finally, practice runs were held to acquaint workers further with the procedure for starting up and shutting down the new system. When workers became proficient on the system's operation, the new equipment was put into regular production. The company now concludes,on the basis of operating experience, that a new worker can be trained completely in about 2 or 3 weeks. Table 23. Plant B: Average hourly wage rate, and percent distribution of employees by wage rate before and after technological change Digester room and No. 2 diffuser room Before technological change Number of jobs or employees Percent Semichemical unit only After tech nological change Number of jobs or employees Percent Before technological change Number of jobs or employees Total ............... 69 100.0 65 100.0 12 $2.60 and over ......... $2.50-$2.59 ............ $2.40-$2.49 ............ $2.30-$2.39 ............ $2.20-$2.29 ............ $2.10-$2.19 ............ $2.00-$2.09 ............ $1.90-$1.99 ............ $1.80-$1.89 ............ 8 0 4 4 0 12 0 8 33 11.6 -5.8 5.8 8 0 0 4 4 12 0 8 29 12.3 -- 0 0 4 0 0 0 0 0 8 Average hourly rate .... Note: Source: — 17.4 — 11.6 47.8 $2,075 — 6.2 6.2 18.5 -12.3 44.6 $2,079 Because of rounding, sums of individual items may not equal totals. Derived from data from plant records. Percent 100.0 -33.3 _ -— __ _ 66.7 $2,053 After tech nological change Number of jobs or employees 8 Percent 100.0 0 0 0 0 4 0 0 0 4 — _ _ 50.0 _ _ 50.0 $2,080 Table 24. Plant B: Composition of the work force, by occupation or plant department, 1953 and 1958 tfV'/MtnAf*4r%n />r nl anP rlonorfmor»t- 1958 1953 Number Percent Number Percent 2,007 100.0 1,891 100.0 Administrative, professional, and office employees .......... . Administrative ...................... Supervisors and foremen ............ Engineers, chemists, and craftsmen*. Typists, stenographers, etc..... . 204 21 77 20 86 10.2 1.0 3.8 1.0 4.3 214 18 85 26 85 11.3 1.0 4.5 1.4 4.5 Production and related workers .... . Wood preparation and handling ...... Pulpmill ............................ Papermill ................. . Finishing and converting ......... . Shipping and receiving ............. Maintenance and repair ............. Laboratory testing and research .... Other 1/ ........................... 1,803 81 402 317 93 67 428 96 319 89.8 4.0 20.0 15.8 4.6 3.3 21.3 4.8 15.9 1,677 69 379 315 78 59 404 92 281 88.7 3.6 20.0 16.7 4.1 3.1 21.4 4.9 14.9 Total employment (yearend) .... . 1/ Includes powerhouse, storeroom, custodial, yard, timekeeping, etc. Note: Because of rounding, sums of individual items may not equal totals. Source: Plant records* Retraining Reassigned Workers. Those who were assigned to different jobs were not formally retrained. Workers who moved into new jobs within the digester room on the basis of seniority were generally familiar with the duties of the next position to which they would be assigned within the job progression system. These workers were able to learn specific duties of the new jobs during the 30-day probationary period provided for in the union agree ment. No training was given to the eight workers assigned to the extra board, since their next job assignment was not yet determined. 64 affect on Safety Conditions Compared with the batch system, the continuous pulping installation is a safer workplace. There is less danger of workers accidentally falling into the digesters, or of being injured by flying chips and wood dust. Since the work of the capper and diffuser dumper have been abolished, there has also been a reduction in muscle strains. Labor Management Practices Regarding Personnel Adjustments Affected workers were informed in advance concerning their reassign* ment. Since no layoffs were planned, those whose jobs were being abolished when the unit was closed down were informed, under terms of the union agree ment, that they would be "bumped back" to the extra board. This information was given verbally by the tour foreman, but most workers were already aware of the proposed change, owing to informal discussion with members of the plan ning group. Practices Regarding Reassignments. Reassignments of workers to different jobs were made according to provisions of the union agreement. These pro visions include: The principles of departmental seniority, if the employees in question are equally capable and efficient, will be given every consideration by the management in all promotions and demotions . . . and layoffs and rehiring. In each line of promotion, seniority will be based on length of service in each position, rather than on total length of employment with the company. The management will consult with the departmental adjustment committee . . . in regard to layoffs and re hiring. Men will be hired in the reverse order in which they were laid off. Since workers in the diffuser room whose jobs were abolished con stituted a complete seniority unit, they were transferred to the extra board. At the same time, new jobs in the digester room were filled with workers from the extra board who had some previous seniority in the digester room. (See table 25.) These employees were given a 60-day trial period, according to provisions of the union agreement. The assignment of lower seniority workers 65 - to digester room jobs over the displaced diffuser room workers with longer seniority was governed by a clause in the union agreement: Regular men whose jobs are abolished or who are cutback due to curtailment of operations, will have preference to extra work and vacancies in all parts of the mill based on qualifications and date of em ployment (except these employees will not supersede employees who acquired seniority in a unit prior to July 1, 1956, or who have established callback time in a department). Although workers in jobs eliminated in the diffuser room averaged twice as much plant seniority as those who moved into new jobs in the di gester room, they could not be assigned to the new jobs as long as others had some seniority within the digester room unit. Table 25. Plant B: Average age, years of service, and wage rates of workers in new jobs and in jobs eliminated Item Number of w o r k e r s .................... Average age ......................... . Average years of company service .... Average wage rate: Before the change .................. After the change ....... . 1/ Workers in new jobs in the digester room Workers in jobs eliminated in thi diffuser room 1/ 8 “ 39,0 11.2 8 48.4 22.1 $2.02 $2.08 $2.15 $1.67 Includes 4 digester room workers whose jobs were abolished. Source: Plant records. Setting Wage Rates for New Jobs. In establishing wage rates for the new jobs of pandia cook and pandia helper, management and union representatives met to negotiate according to a general provision in the union agreement 56 - regarding changes in the schedule of rates: The wag'e rates . . . shall remain in effect during the term of this agreement, unless changed by mutual consent of the signatory parties at a meeting called on 30 days’ written notice by either of the parties hereto. Since both jobs were new to the company, management proposed that the hourly rates for these positions be made comparable with those set for similar jobs in plants in nearby states. Although the union representatives initially accepted rates established by this method, they now feel, on the basis of operating experience, that the rate for the pandia operator should be increased. - 67 Case Study of an Automatic Paper Roll Handling System Summary The effect of installing an automatic paper roll handling system in a recently built and highly mechanized mill was to expand capacity and to reduce unit labor costs substantially in the shipping operations. The system is an example of the most advanced automation in this operation. The change involved moving conveyors with electronic devices that performed tasks for* merly done by hand. Because of enormous increases in capacity and employment, the changes were made with minimum dislocation. Employees acquired the skills needed for operating and maintaining new equipment by attending a school oper ated by the equipment supplier. The new system required more supervisors and machine operators but fewer record keepers and hand laborers. The overall grade level, however, was not raised. Description of Plant Plant C employs over 800 workers to produce more than 425,000 tons of kraft paper and board annually. This highly mechanized mill was construc ted in the early 1950’s. The high quality kraft paper and board produced is sold to bag and box manufacturers and converted into such items as corrugated boxes, shipping containers, bags, packages, and wrapping papers. About 50 percent of the annual output is retained for use within the parent company. The plant is owned by one of the Nation's largest paper and pack aging manufacturers. Since the end of World War II, net sales of the parent company have nearly tripled, largely as a result of the introduction of new products such as glassine and greaseproof papers; waxed paper products; and corrugated, folding, and setup boxes. Plant C has had an equally impressive growth. In response to the strong postwar demand for kraft products, capacity was increased by more than 300 percent and employment nearly doubled since the plant began operations. Management plans to place high priority on improved quality control procedures to meet increased competition among kraft producers. Beta gages and equipment to measure moisture content of paper may be installed on paper making machines to give continuous and more accurate quality control. - 68 Major Technological Changes The major change described in this study concerned the finishing and shipping department, the final processing area. Most of the plant's production is shipped in large rolls each weighing as much as 3,000 pounds. Some output is processed through finishing operations where it is converted into sheets and rolls, according to customer specifications. The Former System. Prior to the change, preparing rolls for shipment in volved heavy manual operations. After leaving the winder at the end of the Fourdrinier papermaking machine, rolls were pushed by hand onto a scale where a worker recorded weight and hand stenciled information such as type of paper and order number, on the face of the roll. Loose ends of paper were glued down, plugs driven by hand into the center of rolls, and protective steel bands were applied. Next, rolls were transferred by elevator and conveyor to an area near the loading docks where they were inspected and moved by forklift truck to railway cars and trucks. The primary drawback of the old system was its lack of capacity to handle additional output from a second papermaking machine installed in 1957. Since all output must pass through shipping operations, a larger system was felt to be necessary, with a capacity to process at least 1,300 tons of kraft paper and board daily, instead of only 300 tons. The old materials handling operation was also relatively inefficient and time consuming. The rolls had to be transported a considerable distance from paper machine to loading dock by hand and by lift truck. Management therefore sought an alternative method, to achieve laborsavings and lower per ton costs. Planning the Change. To improve the system, the finishing and shipping super intendent and his staff, assisted by company engineers, began an intensive study to develop better handling methods. Equipment manufacturers were con sulted and their systems studied in detail. Finally, on the basis of these studies, the planning group recommended the purchase of an automatic roll handling system. Installation of the equipment by the manufacturer required about 1 year. The New System. The new automatic control and conveyor system began opera** tion in the fall of 1957, simultaneously with startup of the new papermaking machine. The new system resulted in virtually automatic transfer of paper rolls through shipping operations. It consists of a dual line of integrated conveyors (one to service each papermaking machine) over which rolls are mechanically transported to preselected loading areas. The control mechan isms include memory drums, photoelectric devices, switches, relays, and timers which automatically start the equipment in sequence. Although rolls are still stenciled, glued, and plugged by hand, significant laborsavings are derived from more extensive and integrated conveyor systems, and automatic banders. (See Fig. 2.) 69 Processing paper rolls through shipping operations by an automatic paper roll handling system Worker controlling movement of paper roll along a conveyor line Banding machine automatically applying steel straps to paper roll 70 Some Indicators of Change. The total installed horsepower of equipment used in shipping operations was nearly four times greater after modernization. (See table 26.) Employment increased by 170 percent, but horsepower per worker rose by only 44 percent. Horsepower per ton of capacity, however, declined by 22 percent after the change. Table 26. Plant C: Horsepower installed and daily capacity, shipping operations, before and after technological change Indicator Total horsepower installed ....... Horsepower per w o r k e r ............. Daily capacity (tons) .... .......... . Horsepower per ton of capacity ...... Source: Former system New system Percent change 207 807 289.9 6.3 300 .69 9.1 1,500 .54 44.4 400.0 -21.7 1 Derived from data from plant records. Effect on Output Per Man-Hour After modernization, output per man-hour was one-third higher, total output rose by 267 percent, and total man-hours increased by 170 per cent. Man-hours per ton of paper processed consequently declined by 26 per cent. (See table 27.) Table 27. Plant C: Output per man-hour, and unit man-hour requirements, shipping operations, before and after technological change Item Tons processed (daily average) ...... Man-hours (daily) .................... Tons per man-hour (average) ......... Man-hours per ton (average) ......... Source: Former system New system Percent change 300 264 1.14 .88 1,100 712 1.54 .65 266.7 169.7 35.1 -26.1 Derived from data from plant records 71 Effect on Maintenance Requirements Maintenance requirements for the new equipment have been higher than anticipated. Most of the mechanical and electrical equipment used in operating the conveyors is located below floor level where inspection and maintenance is difficult and costly. For example, the new automatic banders have already been a source of difficulties with maintenance expense averaging as high as $2,000 per month. On the basis of operating experience with the present system, management reported that it would strongly consider installing an overhead monorail system in future expansions of finishing facilities. This method would be easier to maintain and would offer more protection for rolls in transit. The economies possibly achieved through leasing this equipment rather than purchasing it outright are being explored. Effect on Plantwide Output Per Man-Hour Output per man-hour increased 112 percent between 1954 and 1958. Total output increased by 230 percent during this 4-year period, but total man-hours increased by 56 percent. The sharpest year-to-year change in output per man-hour occurred between 1957 and 1958, during which the plant underwent a major expansion. In addition to the automatic paper roll hand ling system, one of the world's largest kraft papermaking machines was in stalled. (See table 28.) Table 28. Plant C: Indexes of man-hours worked, output, and output per man-hour, total plant, 1954-58 ^ Year 1954 1955 1956 1957 1958 .......... .......... ....... . .......... .......... 1/ 100.0 95.1 101.3 133.9 156.1 output y 100.0 107.3 109.0 170.4 330.1 Tons of unbleached kraft paper. Source: Man-hours Derived from data from plant records. Output per man-hour 100.0 112.8 107.6 127.3 211.5 72 Displacement and Reassignment Since total finishing and shipping department employment had to be expanded to handle the Increased output, none of the original crew was laid off. Of the 33 employees in shipping jobs prior to the change, 32 remained in the department and 1 was transferred to the paper mill 2 months prior to startup of the new equipment. Most of the 32 employees who remained, how ever, were promoted to better jobs in the new system according to seniority provisions in the union agreement. Only 1 out of every 8 of these employees was working in the same job 1 year after the change. (See table 29.) Table 29* Plant C: Job status of finishing and shipping department employees 1 year after technological change Status Finishing and shipping (total) Shipping opera tions only Employees Number Percent Employees Number Percent Total ..................... Remained in unit ............. Assigned same job ......... Assigned different job ..... Transferred to another unit .. Laid off ...................... 44 100.0 33 100.0 43 9 34 1 0 97.7 20.5 77.3 2.3 32 4 28 1 0 97.0 12.1 84.8 3.0 mm m “ Note: Because of rounding, sums of individual items may not equal totals. Source: Plant records. Downgrading and Upgrading. The expansion in the number of finishing and shipping jobs resulted in extensive upgrading. Thirty-six out of 44 employees (82 percent of the total) were upgraded an average of 31 cents an hour. The remaining eight employees experienced no change in grade. No employee was downgraded. The eight employees promoted to tour foremen and shipping clerk jobs also received increases. - 73 Change in Occupational Structure Although only slight changes were made in the number and titles of job classifications used in shipping operations, the content of several jobs changed significantly. These changes resulted from the use of automatic equipment to perform certain operations which were done by hand in the former system, and from the introduction of improved materials handling machinery. The content of the stenciler and production helper classifications, for example, was simplified, but not abolished, by the introduction of the automatic banding machines. One of the duties performed by the stenciler and production helpers in the old system was to apply, using hand tools, thin steel bands to each end of the paper roll. In the new system, however, rolls are automatically transported through banding machines by conveyors, and bands are applied mechanically. The duties of the production weigher also changed significantly. In the old system, the production weigher recorded the weight of the roll after it had been pushed manually onto a scale, wrote certain information on the roll, and then pushed the roll off the scale by hand. Under the new system, the production weigher is now stationed at a control panel located between the conveyor lines. He controls by pushbutton the movement of con veyors which carry rolls into and out of the weighing stations. His job now involves surveillance of a wider expanse of the work area. Although infor mation is still recorded and transcribed by hand, all material handling is accomplished by conveyors. Table 30 summarizes the net effect of new equipment on the content of jobs. The decline in the relative importance of recordkeepers and hand laborers after the change, has been offset by the increase in the proportion of machine operators and supervisors. Change in Overall Grade Levels The introduction of the new materials handling equipment did not raise the overall skill level (measured by the wage rate) required to perform shipping jobs. The average hourly wage rate of shipping employees (excluding the tour foreman who is paid monthly) declined slightly after the change. (See table 31.) 74 Table 30. Plant C: Distribution of shipping occupations, by job classification, before and after technological change After change Before change Job classification Number Percent Number Percent Total 1/ .............. 35 100.0 95 100.0 Supervisors .............. Recordkeepers ............ Machine operators ........ Hand l a b o r e r s ........ . 2 4 5 24 5.7 11.4 14.3 68.6 6 8 25 56 6.3 8.4 26.3 58.9 1/ Includes the finishing and shipping department superintendent and his assistant* Note) Because of rounding* sums of individual items may not equal totals* Source! Derived from data from plant records* Table 31. Plant C: Average hourly wage rate, and percent distribution of employees by wage rate, before and after technological change Before tech nological change Number of jobs or Percent employees 1/ After tech nological change Number of Percent jobs or employees 2/ Total ............... 33 100.0 89 100.0 $2.50 and over ........ . $2.40-$2.49 ............ $2.30-$2.39 ............ $2.20-$2.29 ............ $2.10-$2.1 9 ......... . $2.00-$2.09 ............ $1.90-$1.99 ............ $1.80-SI.89 ............ $1.70-$1.79 ............ 4 0 0 0 4 1 6 12 6 12.1 --- 16 0 0 0 0 1 28 16 28 18.0 — Average hourly rate .... ... . - i i m 12.1 3.0 18.2 36.4 18.2 .962 m mm -i.i 31.5 18.0 31.5 $1. 923 1/ Excludes the finishing and shipping department superintendent and his assistant. 2/ Excludes the finishing and shipping department superintendent and his assistant and 4 tour foremen. Note: Because of rounding, sums of individual items may not equal totals. Source: Derived from data from plant records 75 Retraining for Changes Several workers were sent to a school maintained by the equipment supplier where they received brief formal instruction in maintaining and operating the new banders. Immediately prior to startup, all workers were given a brief, informal orientation in operation by company personnel and by engineers from the equipment suppliers* The 28 workers in shipping jobs who remained in the unit and were assigned to different jobs were not formally retrained, since their new duties were only slightly different from those previously performed. Speci fic requirements of the new jobs were learned on the job. Effect of New Jobs on Safety Conditions A significant result of the installation of the new equipment was the decline in frequency and severity rates of injuries in the finishing and shipping department, one of the most hazardous work areas in the mill. Al though the absolute number of injuries Increased along with the increased employment, the relative frequency of sprains, bruises, and other injuries per employee declined. Labor-Management Practices Regarding Personnel Adjustments Management's first step was to give advance notice of the impending changes to employees affected. Department foremen informally assured them that no one would be laid off owing to mechanization of shipping operations. Moreover, it was well known that more workers would be needed to handle the increased volisne of work, and that those on the job would likely be promoted to better jobs under seniority provisions of the union agreement. Thus, a favorable climate existed before the actual personnel changes were made. The changeover was discussed with union representatives at various times during the conversion. Suggestions were made by union representatives not only on labor aspects of the change, but also on methods of improving operations and installing the new equipment. Company officials adopted several of these suggestions. The union president reported that these advance negotiations by the local plant officials contributed to favorable relations during the changeover. Practices Regarding Reassignment. Because of expansion in departmental em ployment, the principal problem of the changeover was assigning the former finishing and shipping crews to higher paid jobs according to seniority pro visions in the union agreement. The provisions stated: The principles of seniority shall govern in promotions, layoffs, demotions, filling vacancies, vacations, transfers and rehiring, provided the employee has the necessary qualifications, dependa bility and ability to perform the work properly and efficiently. 76 For the purpose of this agreement there shall be three types of seniority* Job seniority* departmental seniority* and mill seniority* Job seniority is defined as the length of service on a given job within a line of progression .. . Departmental seniority is defined as the length of service in line of progression. Mill sen iority is defined as the length of service in the . • . mill. In the consideration of seniority in promotions and demotions* first preference shall be given job seniority. Where job seniority is equal, departmental seniority shall prevail. If job and departmental seniority are both equal then mill seniority shall determine the pro motion or demotion. Seniority will operate according to lines of gression agreed upon between the local unions and mill management. Such lines of progression shall subject to change only by mutual agreement of the parties. pro the be two In filling subsequent vacancies in lines of pro gression, the senior qualified employee shall be pro moted. Should a question arise as to whether or not the senior employee is qualified* and it cannot be re solved by agreement between the unions and management* the senior employee will be given a trial period up to thirty (30) days on the job in question. Hiring New Workers. Management could, under provisions in the union agreement* employ new workers from outside the plant since the capacity of the department was increased substantially and experienced help was not available from within the mill. The specific provision states: Should the capacity of the mill or a department of the mill be increased it is understood management may hire experienced help where necessary. Applicants for new jobs in the department were interviewed about 3 months prior to startup of the new system. Management sought high-school graduates with good employment records tfio were under age 30* and in good physical condition. Preference was given married persons who resided in the area. Those employed were brought into the department about a week before the new system was put into operation. Since most of the original workers in the department had moved into better jobs on the basis of seniority* new employees were used to fill the lower paid positions. 77 Special Problems During Reassignment* Some difficulties concerning seniority arose during assignment. According to union spokesmen, the "if qualified** clause in the seniority provisions of the union agreement permitted manage ment to advance some employees into better jobs ahead of those with longer periods of service. The union also felt that an additional worker was needed to reduce the workload for the stencilers in the new system. Establishing Wage Rates. The basis for negotiations over wage rates was a specific clause in the union agreement as follows: When major changes are made in the plant which create new jobs, or substantially change the duties of existing jobs, the management will meet with the unions concerned and receive from them their suggestions as to size of crew and appropriate rates of pay. If after discussion mutually satisfactory rates cannot be agreed upon, management will set rates but such rates may be subject to further negotiations at the next contract negotiations in a separate discussion from other adjust ment requests, and any changes agreed upon at that time shall be retroactive to the date of the job changes which occasioned the rate adjustments. It was agreed to apply the same wage rate after the change to most jobs because it was assumed that the content would remain substantially unchanged. The jobs of car bracer and car loader, however, were combined into a single classification (car loader and bracer), and the rate of the car bracer, the higher of the two rates, was assigned the new job. 79 Appendix A. Table A-l. Tables Expenditures for new plant and equipment, pulp, paper, and board mills, 1947-60 Expenditures for new plant and equipment (in millions) Year Tot a 1 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 ......... .......... .......... ......... ......... ......... ......... ......... ......... .......... ......... ......... ......... ......... 1/ 290.6 (1/) 212.4 211.6 262.8 274.0 276.3 370.5 388.9 548.5 584.4 424.7 449.8 391.0 77.8 (1/) 36.8 40.2 46.1 40.9 41.3 83.7 68.7 106.5 98.3 84.7 (1/) (T/) New machinery and equipment 212.8 (1/) 175.6 171.4 216.7 233.1 235.0 286.8 320.2 442.0 486.1 340.0 (1/) (1/) Information not available. Source: New structures and additions to plant U.S. Department of Commerce, Bureau of the Census Table A-2. Capacity, and production of paper and board as a percent of capacity, 1947*60 Capacity Year 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ....... Tons (in thousands) Index (1947-100) 22,025 23,389 25,048 26,059 26,789 27,854 29,089 30,025 30,926 32,579 34,845 36,025 37,504 38,847 100.0 106.2 113.7 118.3 121.6 126.5 132.1 136.3 140.4 147.9 158.2 163.6 170.3 176.4 Production as a percent of capacity 95.9 93.6 81.1 93.5 97.2 87.7 91.5 89.5 97.6 96.5 88.0 85.6 90.8 88.7 Source: Capacity--American Paper and Pulp Association, year-end historic basis. The historical method assumes an annual capacity of 310 days' production-per-year for paper, and an annual capacity of 313 days' production-per-year for paperboard. Production--Bureau of the Census. Table A-3. Indexes of output, production worker man-hours, and output per production worker man-hour in the pulp, paper, and board industry, 1919-60 /1947=100/ ~TT ■ I.S S .I. ... .... Index Index Year Output 1/ Production worker man-hours Output per production worker man-hour 1919 ......... 31.7 64.7 1920 1921 1922 1923 1924 ......... ......... ......... ....... .. ......... 36.2 27.4 35.1 39.2 38.2 1925 1926 1927 1928 1929 ......... ......... ......... ......... ......... 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Year Output 1/ Production worker man-hours Output per production worker man-hour 49.0 1940 ......... 72.6 63.2 115.0 70.6 53.1 58.1 61.0 57.5 51.3 51.5 60.5 64.2 66.5 1941 1942 1943 1944 1945 ......... ......... ......... ......... ......... 85.6 83.5 79.9 80.0 81.6 73.9 76.5 81.4 84.2 85.4 115.9 109.1 98.1 95.0 95.6 43.3 46.6 47.2 49.2 52.8 61.8 64.9 62.0 61.3 65.4 70.2 71.8 76.1 80.2 80.8 1946 1947 1948 1949 1950 ......... ......... ......... ......... ......... 90.9 100.0 104.2 96.9 115.8 92.7 100.0 (2/) 90.8 97.1 98.0 100.0 (2/) 106.7 119.3 ......... ......... ......... ......... ......... 49.6 45.5 38.7 43.9 43.3 61.0 48.8 41.8 46.3 48.2 81.3 93.1 92.7 94.9 90.0 1951 1952 1953 1954 1955 ......... ......... ......... ......... ......... 126.2 120.0 128.0 130.5 146.4 100.7 97.0 103.4 101.0 106.4 125.3 123.7 123.8 129.2 137.6 ......... ......... ......... ......... ......... 49.9 56.8 60.9 54.3 64.4 52.3 56.9 60.3 52.6 59.0 95.5 99.9 101.1 103.2 109.2 1956 1957 1958 1959 3/ 1960 ......... ......... ......... ......... ......... 155.3 151.2 151.9 169.0 172.8 107.1 103.3 100.9 105.8 103.9 145.0 146.4 150.5 159.7 166.3 1/ Weighted average index for production of 24 product classes (since 1947); 8 pulp grades and 16 paper and paperboard categories. This index differs from an unweighted production index based on aggregate tonnage. 2/ Information not available, 3/ Pre1irainary. Sources: Output based on data from the U.S. Department of Commerce, Bureau of the Census. Employment and hours based on data from the U.S. Department of Commerce, Bureau of the Census, and the U.S. Department of Labor, Bureau of Labor Statistics. Data prior to 1936 based on WPA National Research Project study. Table A -4. Indexes of output, man-hours, output per man-hour, and unit labor requirements in the pulp, paper, and board industry, 1939 and 1947-60 71947=100/ Output per— Year Output 1939 .... 1947 ..... 1948 .... 1949 .... 1950 .... 1 9 5 1 .... 1952 .... 1953 .... 1954 .... 1955 .... 1956 .... 1957 .... 1958 .... 1959 .... 2/ 1960 .... 1/ 2/ 64.4 100.0 104.2 96.9 115.8 126.2 120.0 128.0 130.5 146.4 155.3 151.2 151.9 169.0 172.8 Production worker man-hours 59.0 100.0 (in 90.8 97.1 100.7 97.0 103.4 101.0 106.4 107.1 103.3 100.9 105.8 103.9 Emp loyee (1/) 100.0 <l/> 100.0 116.1 120.9 116.5 116.7 119.4 130.5 135.5 132.2 134.7 145.7 148.3 Production worker 99.5 100.0 (in 101.9 118.0 123.7 120.0 120.8 124.2 135.4 142.0 139.4 142.4 155.2 159.4 Labor requirements per unit Production worker man-hour 109.2 100.0 (V) 106.7 119.3 125.3 123.7 123.8 129.2 137.6 145.0 146.4 150.5 159.7 166.3 Employees (in 100.0 <l/> 100.0 86.1 82.7 85.8 85.7 83.8 76.6 73.8 75.7 74.3 68.6 67.4 Production workers 100.5 100.0 Production worker man-hours 91.6 100.0 (in (in 98.1 84.7 80.8 83.3 82.8 80.5 73.8 70.4 71.8 70.2 64.4 62.7 93.7 83.9 79.8 80.8 80.8 77 A 72.7 69.0 68.3 66.4 62.6 60.1 Information not available. Preliminary. Sources: Output based on data from the U.S. Department of Commerce, Bureau of the Census. Employment and hours based on data from the U.S. Department of Commerce, Bureau of the Census; and the U.S. Department of Labor, Bureau of Labor Statistics. 83 Table A-5. Employment in the pulp, paper, and board industry, 1947-60 /Annual average— workers in thousandsT Year 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... All employees Nonproduction workers 234.0 242.8 232.6 245.5 257.6 252.8 258.3 262.9 271.2 278.0 277.4 269.4 273.8 275.3 27.1 30.1 30.1 32.0 35.1 37.1 38.7 40.7 43.8 47.6 48.3 48.7 50.7 52.4 Production workers Number 206.9 212.7 202.5 213.5 222.5 215.7 219.6 222.2 227.4 230.4 229.1 220.7 223.1 222.9 Percent of all employees 88.4 87.6 87.1 87.0 86.4 85.3 85.0 84.5 83.8 82.9 82.6 81.9 81.5 81.0 84 Table A-6. Average weekly hours and average hourly and weekly earnings of production workers in the pulp, paper, and board industry, 1947-60 /Annual average/ Production workers Year 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 ......... ......... ......... ......... ......... ......... .......... ......... ......... ......... ......... ......... ......... ......... Average weekly hours 44.2 44.0 42.4 43.9 44.4 43.6 44.0 43.5 44.3 44.2 43.4 42.9 43.9 43.4 Average hourly earnings $1.22 1.36 1.41 1.48 1.60 1.69 1.79 1.84 1.94 2.06 2.17 2.24 2.34 2.42 | Average weekly earnings $54.10 59.88 59.83 65.06 71.04 73.68 78.76 80.04 85.94 91.05 94.18 96.10 102.73 105.03 Table A-7. Employment in the pulp, paper, and board industry, by region, 1947 and 1958 /Workers in thousands/ 1958 1947 Census regions 1/ Number of employees 2/ Percent of total employment Number of employees 2/ Percent of total employment Percent change United States ... 197.9 100.0 223.2 100.0 12.8 Northeast .......... North Central ..... South .............. West ............... 72.1 55.1 54.5 16.2 36.4 27.8 27.5 8.2 71.1 56.2 74.4 21.6 31.9 25.2 33.3 9.7 -1.4 1.8 36.5 33.3 1/ The regions in this table are: NORTHEAST--Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, and Pennsylvania; NORTH CENTRAL— Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, and Kansas; SOUTH— Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, and Texas; and WEST— Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah, Nevada, Washington, Oregon, and California. 2/ Employment data from the Bureau of the Census differs from the BLS series because of differences in collection methods and other factors. Note: Source: Because of rounding, suras of individual items may not equal totals. U.S. Department of Commerce, Bureau of the Census. w * Table A-8. Establishments in the paper and board industry, by region, 1947 and 1958 Number of establishments Census regions Percent change 1947 1958 United States ... 665 1/ 743 11.7 Northeast .......... North Central ..... S o u t h .............. West ............... 333 198 94 40 329 219 115 80 -1.2 10.6 22.3 100.0 1/ 44 establishments were misclassified in 1958 and included in industry SIC 2661, building paper and board mills, and excluded from industry SIC 2643, bags, except textile bags. The figures for each region were there fore adjusted downward in proportion to the regional distribution of establish ments in industry SIC 2643 in 1958. Source: U.S. Department of Commerce, Bureau of the Census 87 Table A-9. Labor turnover, rates (per 1,000 employees), pulp, paper, and board industry, 1949-60 /Annual average? Accession rates Year Total 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... 17 24 28 24 24 16 18 18 16 15 18 16 New hires (1/) (1/) ?3 20 20 12 14 15 12 9 13 14 Separation rates Total 22 20 28 25 23 16 16 17 19 17 17 18 Quits Layoffs 10 12 17 15 14 8 9 10 9 6 8 7 i______________________ 1/ Information not available on new hires in 1949 or 1950. 9 4 4 4 4 5 4 3 7 8 6 7 - Appendix B. 1* 89 - Selected Bibliography U.S. Government Documents A. U.S. Department of Labor Publications The Coarse Paper Industry: Capital Requirements and Operating Ratios, 1949 and 1950, Bureau of Labor Statistics Report 24, Washington, May 1953. 5? pp. Prepared by the University of Pennsylvania, Wharton School of Finance and Commerce, for Mutual Security Agency, and Bureau of Labor Statistics. "Occupations in the Pulp, Paper, and Paper Products Industry," Occupational Outlook Handbook, Bureau of Labor Statistics, Bulletin 1300 (Washington, U.S. Government Printing Office, 1961), pp. 682-690. Pulp and Paper Mills: Case Study Data on Productivity and Factory Performance, Bureau of Labor Statistics, Washington. December 1951. 54" pp. Prepared for the Mutual Security Agency, Productivity and Technical Assistance Division. B. Other U.S. Department of Agriculture, Forest Service. Woodpulp Mills in the United States by State and Types of Products (Washington, U.S. Government Printing Office, June 1961). 23 pp. U.S. Department of Commerce, Business and Defense Services Adminis tration. The U.S. Industrial Outlook for 1961-91 Selected Indus tries (Washington, U.S. Government Printing Office, 19<>l), pp. 144-48. U.S. Department of Commerce, Business and Defense Services Adminis tration. Pulp, Paper, and Board, Annual review issues, March 1961, and prior years (Washington, U.S. Government Printing Office, 1961). U.S. Congress, House of Representatives, Committee on Interstate and Foreign Commerce. Pulp, Paper, and Board Supply-Demand; Report, 85th Cong., 1st sess. (Washington, U.S. Government Printing Office, 1957). 218 pp. U.S. Congress, Joint Economic Committee, Subcommittee on Economic Statistics. Measures of Productive Capacity; Hearings, 87th Cong., 2nd sess. (Washington, U.S. Government Printing Office, 1962). Statement on measuring capacity in the paper industry by Robert S. Shultz, 3d, pp. 148-165. *» 90 <• II. Books and Reports American Paper and Pulp Association. The Statistics of Paper--1960 (New York, May 1961). 98 pp. See also The Statistics of Paper-1961 Supplement. James P. Casey. Pulp and Paper--Chemistry and Technology, 2d ed., 3 vols. Pulping and bleaching, Papermaking, Paper testing and converting (New York, Interscience Publishers, Inc., 1960). John A. Guthrie. The Economics of Pulp and Paper (Pullman, Washington, The State College o£ Washington"Press, 1950). 194 pp. John A. Guthrie and George R. Armstrong. T h e Pulp and Paper Industry," Western Forest Industry: An Economic Outlook. Published for Resources for the Future, Inc. (Baltimore, Johns Hopkins Press, 1961), pp. 95123. International Brotherhood of Pulp, Sulphite and Paper Mill Workers. Report of the Proceedings of the 25th Convention, Montreal, Canada, August 3l-September 4, 1^59 (Fort Edward, N.Y., 1959). 288 pp. Clark Kerr and Roger Randall. Causes of Industrial Peace, Case Study No. 1, Crown Zellerbach Corp., and the Pacific Coast Pulp and Paper Industry (Washington, National Planning Association, 1948). 78 pp. David L. Luke. "Pulp and Paper," American Enterprise? The Next Ten Years, Martin R. Gainsbrugh, editor (New York, The Macmillan Co., I95TT, pp. 217-222. Robert M. Macdonald. "Pulp and Paper," The Evolution of Wage Structure by Lloyd G. Reynolds and Cynthia H. Taft (New Haven, Yale University Press, 1956), pp. 99-166. John J. McMahon and Arnold Berman. Radioisotopes in Industry (New York, National Industrial Conference Board, Inc., 1959), pp. ?7-82. Organization for European Economic Cooperation. The Pulp and Paper Industry in the U.S.A. (Paris, 1951). 378 pp. The Progress of Paper (New York, The Lockwood Trade Journal Co., Inc., " 1947). 392 pp. J. Newell Stephenson, editor. Pulp and Paper Manufacture, 4 vols. (New York, McGraw-Hill Book Co., 1950-1955). ~ 91 United Papermakers and Paperworkers. Proceedings of the 2d Constitutional Convention, Washington, D.C., September 19-23, 1960 (Albany, N.Y., I960). 346 pp. George S. Witham. Modern Pulp and Papermaking, 3d ed., revised and edited by John B . C a i k i n (New York, Reinhold Publishing Corp., 1957). 549 pp. Wood Pulp Statistic8--26th Edition (New York, United States Pulp Producers Association, Inc., August 1961). 255 pp. III. Periodicals and Articles A. Periodicals The Paper Industry, Fritz Publications, Inc., Chicago (Monthly). Paper Mill News, L. D. Post, Inc., Philadelphia (Weekly). Paper Trade Journal, Lockwood Trade Journal Co., Inc., New York (Weekly). Pulp, Paper, and Board, U.S. Department of Commerce, Business and Defense Services Administration (Washington, U.S. Government Printing Office, Quarterly). Southern Pulp and Paper Manufacture, E. A. Abernethy Publishing Co., Inc., Atlanta, Ga. (Monthly). Tappl, Technical Association of the Pulp and Paper Industry, Easton, Pa. (Monthly). B. Articles George W. Brooks and Sara Gamm. "The Practice of Seniority in Southern Pulp Mills.1* Monthly Labor Review. July 1955, pp. 757-765. **Computers Enter Paper Industry," Chemical and Engineering News, American Chemical Society, Washington, November 20, 1961, pp. 58-60. Lee Eberhardt. "Economic Impact of New Processes on the Pulp and Paper Industry," The Paper Industry, Fritz Publications, Inc., Chicago, March 1958, pp. 982-983 ff. 92 Charles W. Heckroth. "Significant for the Sixties," Paper Mill News, L. D. Post, Inc,, Philadelphia, December 26, 1960, pp. 29-30, Helen Hunter. "Innovation, Competition, and Locational Changes in the Pulp and Paper Industry: 1880-1950." Land Economics (Madison, University of Wisconsin, November 1955), pp. 314-327. Stephen S. Livers. "Taking the Art Out of Papermaking," Control Engineering, McGraw-Hill Publishing Co.. New York, December 1961, pp. 20, 21. John 0. McCutcheon. "Continuous Pulping," Paper Mill News, Philadelphia, March 28, 1960, pp. 46 ff. Paul L. Phillips. "Automation in Pulp and Paper," I.U.D. Digest, Industrial Union Department, AFL-CI0, Washington, D.C., Summer 1957, pp. 35-40. Edward F. Thode. "What of Computers and the Paper Industry?--A 1959 View," Paper Trade Journal, Lockwood Trade Journal Co., Inc., New York, March 2, 1959, pp. 34-36. * U.S. G O V E R N M E N T P R IN T IN G O F F IC E : 1962 0 — 6 61934
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