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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
http://fraser.stlouisfed.org/ Superintendent of Documents, U .S. Government Printing Office, Washington 25, D.C.
Federal Reserve Bank of St. Louis

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.
1
J6/

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

Year
be fore
modern­
ization

Item

Cords processed (annual) .............
Man-hours (annual) ...................
Cords per man-hour (average)..... .
Man-hours per cord (average) ........

Source:

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
m
m
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
1954
Total plant ....
W o o d r o o m .... .

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

Workers age
45 and over

Number

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.

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

Year be­
fore change

Item

Tons produced (daily average) ....
Man-hours (daily) ................
Tons per man-hour (average) .....
Man-hours per ton (average) .....

Source:

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

Old
system

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 .....

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> unexpectedly high maintenance expenses as explained on p. 53. Table 17
y
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
Number
Total ..............................
Remained in digester room •••••••••••••
Assigned same job
Assigned different job ••••••••••••••
Diffuser room employees transferred
to extra board
Left the company ......................

Source:

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

Title

Hourly
wage
rate

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

t V / t A *4r% / r nl anP rlonorfmor»tf'Mnf
n >

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
Workers in new
jobs in the
digester room

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 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

Finishing and
shipping (total)
Employees
Number
Percent

Status

Shipping opera­
tions only
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,
P . (Monthly).
a
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