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COLLECTIVE
BARGAINING
AGREEMENTS




SUBCONTRACTING

Bulletin No. 1425-8
April 1969

UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR S T A T IS T IC S




M AJO R
C O L L E C T IV E
B A R G A IN IN G
AG REEM ENTS

SUBCONTRACTING

Bulletin No. 1425-8
A p ril 1969

UNITED STATES DEPARTMENT OF LABOR
George P. Shultz, Secretary
BUREAU O F LA B O R STATISTICS

G e o ffre y H . M oore, C o m m issio n er

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 2 04 02 - Price




55

cents







Preface

This bulletin is the eighth in a Bureau of Labor Statis­
tic s se rie s of studies surveying the entire scope of the
collectiv e bargaining agreem ent.
Previous reports are
listed on the last page.
Subcontracting rem ains one of the sensitive issu es of
day-to-da y labor-m anagem ent relations, a frequent subject
of arbitration and National Labor Relations Board cases,
and a m atter which has required U. S. Supreme Court
decision s.
Agreem ent provisions governing contracting
out of in-plant production, construction, or maintenance
w ork embody the settlement reached by the parties to
r e s o l v e their contracting out problem s.
This bulletin
d e scrib e s subcontracting provisions and reports on their
prevalence in m ajor con tracts.
The study is based on agreem ents in the United States
covering 1,000 w orkers or m o re , exclusive of the r a il­
road and airline industries and the government.
These
con tracts accounted for alm ost half of the estim ated c o v ­
erage of all agreem ents outside of the excluded industries.
The study does not n e ce ssa rily reflect pra ctices in m inor
collectiv e bargaining situations.
The clau ses quoted in this report, identified in appen­
dix B, are not intended as m odels.
The cla ssifica tion
and interpretation of clau ses, it must be e m p h a s i z e d ,
re fle ct the opinion of ou tsiders, but not n ecessa rily of the
parties who negotiated them.
The bulletin was prepared in the O ffice of Wages
and Industrial Relations by Leon E. Lunden, assisted by
Theesa E llis a n d Ernestine M oore of the D ivision of
Industrial R elations.

iii




Contents
Page
1

Related stu d ie s-------------------------------------Scope o f study---------------------------------------P reva len ce and tren ds------------------------------T r e n d s ---------------------------------------------------Types of p rov ision s ---------- -------------- ---- -—
A reas of perm itted subcontracting-

2
2

3
3
6
6

P rov isio n s protecting in-plant em ploym ent opportunties------------------------------------------------------N otice and consultation p r o v is io n s _______________________________________________________
Layoff and p a rt-tim in g o f w o r k e r s -------------------------------------------—__________ ______ ________

P rotectin g individual w o r k e rs---------------------------------------------------------------------------------------------P rotectin g con tract and union stan d ards_____________________________________________________

P rotectin g the su b con tra ctor1s em p loy ees------------------------------------------------------------------------Lim itations concerning co st, production, and other business c o n d itio n s ---- --------------- ---- —
Equipment, skill, and m anpow er—-------------------------------- --------------- -----------------------------------Disputes settlem ent and savings p r o v is io n s ---------------------------------------------------------------------------

8
9
10

12
14
15
15
16
16
17
19
21
21

22
24
24
25
26
27
27
27
29

T ables:
1.
2.
3.
4.
5.
6.
7.

Subcontracting p rov ision s in m a jor agreem ents by industry, 1965—
66----------------------Subcontracting perm itted subject to lim itations in m a jor agreem ents,
sele cte d in du stries, 1959 and 1965— ------------------------------------------------------------- ------66
A ctivities and operation s governed by subcontracting lim itations,
Specified conditions w here subcontracting lim itations apply by
a ctivities and operation s governed, m a jor agreem ents, 1965—
66-_________________
L im itations affecting in-plant em ploym ent opportunities in
subcontracting p ro v isio n s, m a jor agreem ents, 1965— 6 ---------------------------------------6
Lim itations affecting union and con tract standards in subcontracting
p ro v isio n s, m a jo r agreem en ts, 1965—
66-----------------------------------------------------------------Lim itations con cern in g co st, production, and other business
conditions in subcontracting p ro v ision s, m a jor agreem ents, 1965— 6 -----------------6

30
31

32
32
33
33

Chart: Subcontracting p ro v isio n s in m a jor c o lle ctiv e agreem ents,
A ppendixes:
A.

S elected subcontracting p r o v is io n s -------------------------------------------------------------------------------




v

35




Major Collective Bargaining Agreements—
Subcontracting
Introduction

In the Labor-Management Reporting and
Disclosure Act of 1959, 3 there was, among
several amendments to the Labor-Manage­
ment Relations Act of 1947, one pertaining
to "hot cargo" a g r e e m e n t s , section 8(e),
which stated that it would be an unfair labor
practice for any employer and labor organi­
zation to agree openly or tacitly to arrange­
ments under which the employer would not
handle, use, sell, or transport the goods of
another employer or would not do business
with him.
Apparel and construction indus­
tries were specifically exempted from this
proscription. This section of the law, which
was intended to handle hot cargo problems,
also was pertinent to contracting out provi­
sions, since such provisions in effect gov­
erned the relationship b e t w e e n a primary
employer and a secondary employer (the sub­
contractor).
Accordingly, contracting out
clauses had to be written carefully to avoid
the prohibition on secondary boycotts or also
be declared unenforceable in any subsequent
litigation.

Few firms can perform all of the activ­
ities necessary to operate their businesses
successfully, and consequently they contract
with other companies to assume responsibility
for specified work activities.
Some com­
panies contract out infrequently; others, more
regularly. Some let out excess production or
the manufacture of parts; others engage con­
tractors to perform only ancillary mainte­
nance, construction, or janitorial services.
Although appearing to be a normal eco­
nomic practice and having characteristics of a
peaceful, unencumbered activity, subcontract­
ing is a volatile and complicated collective
bargaining issue. For management, subcon­
tracting raises issues of company flexibility,
of the firm 's ability to progress economi­
cally, and of management's right to pursue
freely its e c o n o m i c goals.
For workers
and unions, subcontracting evokes job inse­
curities, challenges from competing groups
of workers and unions, and threats that con­
tract s t a n d a r d s will be undermined.
The
degree to which these problems trouble the
parties may vary according to the economic
health of the e n t e r p r i s e , industry, and
economy.

Since the earlier Bureau study, NLRB
policies have undergone a significant trans­
formation, a process which was aided by cru­
cial court decisions.
The board has been
involved in subcontracting matters for over
a quarter-century. As early as 1941, the
board had decided that e m p l o y e r s were
obliged to bargain with unions over the effects
that subcontracting decisions had upon work­
ers. 4 Management also was required to bar­
gain over a decision to contract out that had
an antiunion motivation.
However, econom­
ically motivated decisions were not subject
to bargaining until the board released its
findings in the Town and Country Manufac­
turing Case. 5 Although the board ordered
bargaining when subcontracting was based in
part on economic motivation, the U. S. Court
of Appeals, in upholding the NLRB, ignored
the economic motivation rule and justified its

The importance of contracting out for
management and organized labor is apparent
in their confrontations, especially in disputes
which eventually go to arbitration or reach
the courts, and in the growing prevalence of
subcontracting provisions in collective bar­
gaining agreements. An earlier Bureau of
Labor Statistics study1 reviewed the status
of published arbitration decisions involving
subcontracting issues where there were no
subcontracting provisions in the agreement to
guide the arbitrator.
The study also high­
lighted the I960 decision of the U. S. Supreme
C o u r t in the United Steelworkers vs. the
Warrior and Gulf Navigation Company case
w h i c h held that subcontracting— and other
issues— were arbitrable, even in the absence
of specific contract language. 1
2

1 Subcontracting Clauses in Major Collective Bargaining
Agreements (BLS Bulletin 1304, 1961V.
2 363 U.S. 574.
3 73 Stat. 519, as amended 79 Stat. 888.
4 Brown vs. McLaren Manufacturing Company, 34 NLRB
984(1941).
5 316 F. 2d 846 (Fifth Circuit, 1963).

The focus now has shifted towards sub­
contracting as a collective bargaining issue;
it results from legislative action and a series
of decisions by the National Labor Relations
Board (NLRB) and the courts.




1

2
d ecision solely upon the e m p lo y e r’ s antiunion
m otivation.
T hus, there was no c l e a r c u t
court recognition that the board had re v e rse d
its rule, until the F ib reb oa rd Paper P rodu cts
C orporation d e c i s i o n . 6 In this ca se , the
U .S. Supreme Court concluded that, because
the e m p lo y e r’ s econ om ica lly m otivated d e c i­
sion to con tra ct out affected the term s and
conditions of em ploym ent, management was
required to bargain with the union b e fo re it
could im plem ent its d ecision . Bargaining did
not mean agreem ent, but "g ood faith" b a r ­
gaining, which con ceivea b ly could term inate
in an im passe.
The court*s decision was lim ited n a r­
row ly. It has since been am plified in addi­
tional NLRB and cou rt d e c is io n s .7 T hese
ca se s have distinguished between econ om ica lly
m otivated d ecision s in which bargaining is
m andatory, and those in which bargaining is
not requ ired.
F or exam ple, the board has
decided that certain m a n a g e m e n t rights
clau ses o r certain subcontracting provision s
have fre e d the em ployer of the duty to b a r ­
gain ov er the d ecision to let out con tra cts.
At the present tim e, the p r o c e s s of refining
the F ib reb oa rd doctrine continues, and even­
tually should provide a c le a r e r understanding
o f the e m p lo y e r's obligation to negotiate on
econ om ica lly m otivated d e cisio n s.
The present exam ination of su bcon tract­
ing p rov ision s found that such clau ses w ere
m uch m ore w idespread in 1965—
66 than in
1959, w h e n the B ureau's f i r s t study was
initiated.
In the intervening 7 y e a r s , the
number o f contracting out p r o v i s i o n s has
alm ost doubled.
Although few er t h a n half
the agreem ents studied r e fe r r e d to subcon­
tractin g, these a g r e e m e n t s affected over
th ree-fifth s of the w o r k e r s in the study.
Over fo u r-fifth s o f the p rov ision s established
rules governing the subcontracting o f all or
som e of the p r o d u c t i o n p r o c e s s (a term
sp e cifica lly applicable to manufacturing) or
of the m a jor a c t i v i t y (a term sp e cifica lly
a p p l i c a b l e to nonm anufacturing), w hereas
only slightly m ore than on e-th ird o f the p r o ­
vision s established ru les applicable to a n cil­
la ry c o n s t r u c t i o n , m aintenance, a n d /o r
s e r v ic e s .
Frequently, provision s p re se rv e d
in-plant job opportunities, protected con tract
standards, or established certain business
conditions under which re strictio n s on co n ­
tracting out would not be operable.
Subcontracting p rov ision s a ccom p lish ed
their regulatory goals in a va riety o f w ays.
M ost prom inently— and significantly, for the
recent N LRB trends cited above— c l a u s e s



required notice to the unions of the subcon­
tracting d ecision and the right o f unions to
consult or negotiate with m a n a g e m e n t . 8
Others p e r m i t t e d subcontracting if there
w ere no layoffs; if unem ploym ent would not
r e s u l t ; or if subcontractors ob serv ed the
prim e em p lo y e r's agreem ent or w ere them ­
selv es "union" su bcon tractors.
Contracting
out also was perm itted if the prim e em ployer
needed equipment or lacked the sk ills and
m anpower; if costs or the efficien cy of the
en terprise would otherw ise be affected; if
business was at a peak; or if em erg en cies
required subcontracting.
Related Studies. Subcontracting r e fe r ­
ences in m anagement rights clau ses w ere
d i s c u s s e d in an e a rlie r bulletin in this
s e r ie s . 9 Pertinent job secu rity issu e s , in­
cluding plant m ovem ent, inter plant tran sfer,
reloca tion allow ances, and layoff and re ca ll
p ro ced u res, are subjects of other studies,
either in p ro g re ss or planned, in this Bureau
s e r ie s .
Scope of Study.
F o r this s t u d y , the
Bureau e x a m i n e d 1,823 m a jor co lle ctiv e
bargaining agreem ents, each cov erin g 1,000
w ork ers or m o re , or virtually all a g r e e ­
m ents o f this size in the U n i t e d S t a t e s ,
ex clu siv e of those in the ra ilroa d and airline
industries and in governm ent. T hese a g re e ­
m ents applied to 7. 3 m illion w ork ers, or a l­
m ost on e-h a lf of the total co v e re d by c o l le c ­
tive bargaining agreem ents o u t s i d e o f the
excluded industries.
Of these, 4. 2 m illion
w ork ers co v e re d by 1,048 con tracts w ere in
m anufacturing; and the rem aining 775 a g re e ­
m ents, applying to approxim ately 3. 2 m illion
w ork ers, w ere in nonmanufacturing. M ost of
the con tracts w ere in effect in 1966 o r later.
F ew er than one-tenth expired during the last
3 months o f 1965. F o r these, renewed a g re e ­
m ents w ere not available at the tim e that tab­
ulations fo r this study w ere com pleted.
F o r purposes of this analysis, p rov ision s
banning con v ersion of w ork ers into subcon­
tra ctors and barring lumping (i. e. , con tra ct­
ing out of labor s e rv ice s only) w ere tabulated
fo r the fir s t tim e, as w ere letters of intent.
The fo rm e r did not affect com parison s to the
6 379 U.S. 203 (1964).
7 For instance, it has been held that there is no require­
ment to bargain unless the subcontract would have an immediate
adverse impact upon the bargaining unit. Puerto Rico Telephone
Company, NLRB 359 F. 2d 983 (1966).
8 In Shurtenda Steaks, Inc. vs. Meat Cutters, 161 NLRB
88 (1967) the Board held that notice and c o n s u l t a t i o n were
required even if subcontracting was for economic reasons.
9 Major Collective Bargaining Agreements: Management
Rights and Union-Management Cooperation (BLS Bulletin 1425-5,
1966).

3
Bureau*s 1959 study since in 6 out of 7 ca se s ,
these p rov ision s also contained other r e f e r ­
ences to subcontracting. L etters o f intent had
no im pact on p rov ision prevalen ce, but w ork er
cov era ge was influenced becau se one was the
General M otors-U A W letter.
Clauses w ere selected fo r quotation in
this rep ort to illu strate either the typical
ch a ra cte ris tics under con sideration o r the
variety of ways in which negotiators have
m odified that fo rm . M inor editoria l changes
w ere made w here n e ce ssa ry to highlight p a r­
ticular c h a ra cte ris tics , and irrelev a n t parts
w ere om itted.
A ll illu stration s w ere taken
from agreem ents in effect during the last
quarter of 1967 or later.
M ost provision s
used w ere effective in 1968 o r later.
The
clauses are num bered and the agreem ents
from which they have been taken are identified
in appendix B. In appendix A, sev era l p r o ­
vision s are produced in their entirety to illu s ­
trate how the various features fit together.
P reva len ce and Trends *
7
Out o f 1,823 agreem ents studied, 4 3 .9
percen t contained clau ses re fe rrin g to c o n ­
tracting out (table 1). T hese agreem ents c o v ­
ered 4.5 m illion w o rk e rs, o r 61 percent of the
7. 3 m illion in the study. C lauses w ere evenly
divi led between m anufacturing (396) and non­
manufacturing (405) industries, but in term s
of w ork er cov e ra g e , m anufacturing provision s
affected about 600,000 m o re w ork ers than sub­
contracting clau ses in nonm anufacturing. The
differen ce re fle cts con tracts coverin g la rge,
m ultiregion al e m p loy ers, e sp e cia lly in p r i­
m ary m etals and transportation equipment.
In both m anufacturing and nonmanufacturing,
h o w e v e r , about th ree-fou rth s of the w ork
fo r c e was protected by subcontracting cla u ses.
Six industries accounted fo r ov er on e-h alf
the con tracts (58. 5 percent) and over th re e fifths o f the w ork ers (62. 3 percent) cov ered
by subcontracting p ro v isio n s. Included w ere
constru ction and apparel, in which contracting
out is the accepted way of doing business, as
w ell as transportation, u tilities, m achinery,
and transportation equipment.
Interregional agreem en ts, becau se of the
large size of many o f the units, continued to
exert a sp ecia l influence on w ork er covera ge
and accounted fo r only 16. 8 percent of the
contracts re fe rrin g to subcontracting, but for
49 percen t of the a ffected w o rk e rs. This in ­
fluence was even m ore dram atic when data
w ere cla ssifie d by size o f bargaining unit.
There w ere 86 agreem ents, or 10. 2 percent
of all those re fe rrin g to subcontracting, each
of which co v e re d 10,000 em ployees or m o re.
In total, 2.7 m illion w ork ers w ere affected,



o r 59.3 percent of all persons co v ered by co n ­
tracting out cla u ses.
Seventy-three different national and in­
ternational unions, ex clu siv e o f s in g le -firm
independent unions, had affiliates which had
negotiated one subcontracting clause o r m ore.
Twenty unions each accounted fo r 20 clau ses
o r m ore, including 6 whose affiliates had n e­
gotiated 40 subcontracting clau ses or m o re .
T ren d s.
This s t u d y of subcontracting
provision s in m a jor co lle ctiv e b a r g a i n i n g
agreem ents is the second fo r the Bureau.
The fir s t study analyzed clau ses in effect in
1959— a period shortly b efore the enactment
of the LMRDA amendments to the T aft-H artley
A ct and the decision s in two m a jor court ca ses
noted e a rlie r (U .S. Steelw orkers vs. W a rrior
and Gulf Navigation C orporation, and F ib r e board Paper P roducts C orporation vs. Na­
tional Labor R elations B oard).
P rov ision s in m a jor agreem ents r e fe r ­
ring to subcontracting have doubled over the
7 -y e a r period ; risin g from 22.6 percent in
the total studied in 1959 to 43. 9 percen t in
1965—
66. W orkers affected by contracting out
p rovision s in crea sed about as sharply and a c ­
counted for th ree-fifth s of the w ork ers in the
present study (chart, page 4).
An exam ination of industry changes r e ­
vealed that the number of construction indus­
try agreem ents included in the study had
risen m arkedly, fro m 155 in 1959 to 256 in
1965—
66; w orker cov era ge rose from 701,900
in 1959 to 970,000 in 1965—
66. A relative as
w ell as an absolute in crea se o ccu rre d in co n ­
struction agreem ents and w ork ers cov ered .
Since the construction industry is one in which
contracting out is a regular way of doing b u si­
ness, and since it is likely to have a high
prevalence of contract clau ses, it was co n ­
ceivable that co n s tru ctio n s in crea sed co n tri­
bution to the study would influence the resu lts.
A ccord in gly , data from the two Bureau studies
w ere review ed, fir s t including and then e x ­
cluding the construction industry.
Percent referring to subcontracting
Construction
Year of study
included
1959:
Agreements------ -——
22.6
Workers------------------------34.6
1965-66:
Agreements —- — ----------43.9
Workers — ------ --------60.8

Construction
excluded
19.3
31.5
38.2
57.3

Within the confines of each study, rem oval of
construction industry data d ecrea sed the p r o ­
portion of con tracts referrin g to subcon­
tracting and w ork ers affected by them. How­
ever, exclusion of construction industry data

SUBCONTRACTING PROVISIONS IN MAJOR
COLLECTIVE AGREEMENTS
1959 AND 1965-66

Percent

70
Workers affected

60
50

40

30
20

10

0




1959

1965-66

1959

1965-66

5
had little e ffe ct on the upward trend o f sub­
contracting p rovision s fro m the fir s t to the
second study. The prop ortion o f agreem ents
re ferrin g to contracting out doubled, even
with the absence of con stru ction industry data.
M ore unions have negotiated agreem ents
that contain subcontracting p ro v isio n s.
As
noted e a r lie r , affiliates of 73 differen t na­
tional and international unions, ex clu siv e of
sin g le -firm independent unions, com pared to
56 in 1959, had negotiated one contracting out
p rovision o r m o re .
In general,
how ever,
subcontracting p rov ision s w ere concentrated
in con tracts involving a ffiliates of a handful of
unions.
The number of labor organizations
having affiliates which negotiated 10 clau ses
o r m ore alm ost doubled, risin g fro m 11 in
1959 to 20 in 1965—
66. Four of the nine new
unions in this category w ere in the building
trades (B rick la y e rs, Iron W ork ers, P ain ters,
and P lu m b ers), again reflectin g the in crea se of
constru ction industry agreem ents in the study.
Of the rem aining fiv e , three w ere in m anufac­
turing industries (Furniture W ork ers, Rubber
W ork ers, and E le ctrica l W ork ers, IUE); and
two (U tility W ork ers, S erv ice E m ployees) o r ­
ganized nonmanufacturing em ployees.
P ro v isio n s re fe rrin g to m a n a gem en ts
right to subcontract, as w ell as clau ses p e r ­
mitting contracting out subject to lim itations,
shared in the general rise in p rev a len ce. A l­
though still not num erous, agreem ents leaving
the em ployer fre e to subcontract ro se fro m
4 in 1959 to 38 in 1965—
66. T hese w ere p a r­
ticu larly clu stered in the e le c tr ic a l m achinery
industry, which alone accounted fo r alm ost
on e-th ird o f the agreem ents and o v er on e-h alf
the w ork ers co v e re d by cla u ses declaring
m an agem en ts right to subcontract.
The m arked rise o f this particu lar group
o f p rov ision s follow s the W a rrio r and Gulf d e­
cision in I960, which, as noted e a r lie r , had
d ecla red that a m atter could not be excluded
from arbitration unless there was fo r c e fu l e v ­
idence that the parties contem plated such an
exclusion .
Am ong the 12 p rov ision s in the
e le c tr ic a l m ach in ery industry w ere sev era l
which s p e cifica lly excluded subcontracting as
an arbitrable i s s u e .
G eneral E le c tr ic and
W estinghouse negotiated about on e-h a lf the in ­
d u stry ^ p rov ision s.

1959
All industries------------Total (6 industries)------------Primary metals-------------Machinery--------------------Electrical machinery-----Transportation equipment
Transportation-------------Construction------------------




378
158
9
11
6
26
23
83

P rov ision s which in som e manner r e ­
stricted management*s right to subcontract
w ere far m ore num erous and accounted for
m ost of the upswing in subcontracting cla u ses.
In 1959, a total of 378 clau ses w ere in this
c a t e g o r y , com pared with 763 in 1965—
66.
C lauses which prohibited subcontracting or
which vaguely established lim its rem ained the
same during the 7 -y ea r span, so that the in ­
cre a se cen tered en tirely in the agreem ents
setting lim itations on subcontracting.
The
latter ro se from 369 in 1959 (21.9 percent
of all contracts studied) to 755 in 1965—
66
(4 1 .4 percent of all c o n t r a c t s
studied)
(table 2). The ris e was even m ore m arked
for the prop ortion of w ork ers cov ered , in­
crea sin g from 34 percen t in 1959 to 57. 1 p e r ­
cent in 1965—
66.
F ive industries com bined, accounted for
ov er th ree-fifth s of the rise in agreem ents
lim iting subcontracting and alm ost th re e fourths o f the in crea se in w ork ers cov ered
(table 2). The rise in p rovision s was p a rtic­
ularly dram atic in the p rim ary m etals indus­
try, where steel*s experim ent with subcon­
tracting p ra ctice s under the Human Relations
C om m ittee was finally in corp orated into the
contract. The m achinery industry also ex p e­
rien ced a sharp r is e . To a large extent this
re fle cte d the heavy representation of S teel­
w ork ers and Auto W ork ers in the industry.
T h r e e other industries (transportation
equipment, transportation, and construction)
significantly in crea sed their totals. In each,
subcontracting p rov ision s lim iting the rights
of the prim e em ployer had established a fo o t­
hold in 1959. By 1965—
66, there had been a
d isp ersion to a la rg er number of em ployers in
transportation equipment and transportation.
The in crea se of p rov ision s in the construction
industry, as noted e a r lie r , results from a
la rg er number of agreem ents in the 1965—
66
study than in the 1959 study.
Four m anufacturing and two nonm anufac­
turing industries experien ced s h a r p r is e s ,
either in the number of agreem ents or in the
number of w ork ers affected, or in both. These
six industries, com bined, accounted fo r th reefifths of the in crea se in agreem ents and th reefourths of the rise in w ork ers affected from
the fir s t to the second Bureau study:
_________ Having reference to subcontracting__________
Agreements__________ ________ Workers (in thousands)
1965-66
Increase
1959
1965-66
Increase
801
422
45
47
22
49
56
203

423
264
36
36
16
23
33
120

2,588.1
1,411.3
35.0
17.5
11.6
654.3
240.7
452.2

4, 464.4
2, 858. 9
423.6
158.9
175.3
821.6
463.9
815.6

1,876.3
1,447.6
388.6
141.4
163.7
167.3
223.2
363.4

6
Types o f P rov ision s
Of the 801 clau ses re fe rrin g to con tra ct­
ing out, only 38, o r le ss than 5 percen t stip ­
ulated that the e m p lo y e r's subcontracting a c ­
tivities would not be r e stricte d (table 1). M ost
of these (29) sp e cifie d that m anagem ent had the
right to farm out production a n d /o r m ainte­
nance w ork. The B u re a u s 1959 study o f sub­
contracting p rov ision s found only four clauses
assertin g m anagem ent's right. In the 1963—
64
study o f m anagem ent rights p ro v isio n s, 31
contracts r e fe r r e d to subcontracting, but not
all left the em ployer com pletely free o f r e ­
strictio n s. 1 1 M o re o v e r, the Bureau did not
0
exam ine the agreem ent beyond the m anage­
m ent rights clause to determ ine if additional
p rov isio n s m odified the e x e r cis e o f m anage­
m en t's rights in this area.
In the present
Bureau study, the 29 agreem ents stipulating
the e m p lo y e r's freedom to subcontract w ere
not lim ited by other p ro v isio n s.
T ypically,
the statem ent that m anagem ent was free to
c o n t r a c t out appeared in the managem ent
rights cla u se, as in the follow ing exam ples:
Except as otherwise specifically provided in this agreement,
the employer has the sole and exclusive right to exercise all
rights or functions of management, and the exercise of any
such rights or functions shall not be subject to the grievance
or arbitration provisions of this agreement.
Without limiting the generality of the foregoing, as used
herein, the term "rights of management" includes . . . the
placing of production, service, maintenance, or distribution
o f work with outside contractors or subcontractors. (1)
* * *
Subject to the provisions of this agreement, the company re­
tains the sole right to manage its business and direct the
working forces, including, but not limited to the right to: . . .
distribute work among departments and yards, to subcontract
work, . . .
(2)
* * *
The company shall retain all rights, powers, and authority it
had prior to entering into this agreement, including, but not
limited to the sole right to manage its business and direct
the working force including the rights . . .
to determine,
whether and to what extent any work shall be performed by
employees. . . .
(3)

As in the fir s t illu stration above, sev era l
stipulated that all rights set forth in the m an­
agement rights clause would be excluded from
arbitration p ro ce d u re s . The i l l u s t r a t i o n
below is m ore d ire ct in barrin g su bcon tract­
ing issu es from arbitration:
The management of the plant and the direction of the working
forces, including, but not limited to . . . the contracting or
subcontracting of production, service, maintenance, or other
type of work performed by the company . . . are vested ex­
clusively in the company, and, excepting disciplinary sus­
pensions and discharges, are not subject to the arbitration
procedure provided in this agreement. (4)




Another nine have the same fo rce as a
managem ent rights clau se, but are found e l s e ­
where in the agreem ent. These either stip ­
ulated that the e m p lo y e r's subcontracting a c ­
tivities w ere not subject to arbitration or
com bined this kind of declaration with another
statement in the m anagement rights clau se.
Among these was the follow ing which made
subcontracting subject to arbitration only by
m anagem ent's voluntary agreem ent:
All requests for arbitration which are not subject to arbitration
as a matter of right . . . are subject only to voluntary arbi­
tration. In particular, it is specifically agreed that arbitration
requests shall be subject only to voluntary arbitration, by
mutual agreement, if they . . .
Involve issues which were discussed at national level
negotiations, but which are not expressly covered in this
national agreement (e. g ., subcontracting). . . .
(5)

Such p rov ision s w ere found m ostly in G eneral
E le c tr ic and W estinghouse agreem ents.
At the other end o f the continuum of r e f­
eren ces to subcontracting w ere four a g re e ­
m ents which b a rred contracting out:
There shall be no subcontracting.

(6)

In addition, four con tracts alluded to sub­
contracting in div erse w ays.
One re fe r r e d
to a sp ecia l m em orandum on subcontracting
that was not part o f the agreem ent; one r e ­
fe rre d subcontracting issu es to lo ca l n eg oti­
ations; and two noted that contracting out a c ­
tivities could cause la yoff.
A l t h o u g h not
lim iting the em p lo y e r's action s, one gu ar­
anteed severan ce pay to affected w ork ers, and
the second made affected w ork ers eligible fo r
preferen tia l hiring through an "Industry Wide
Automation Unemployment L ist. "
M ost agreem ents referrin g to subcon­
tracting (755) perm itted the p ra ctice , but at
the sam e time establish ed various r e s t r ic ­
tions that w ere designed to safeguard w ork ­
e r s , unions, and con tract standards. The rest
of this study w ill d iscu ss details of these
arrangem ents.
A reas o f P erm itted Subcontracting
Of the 755 p rov ision s perm itting subcon­
tracting, ov er 85 percen t regulated farm ing
out of production p r o c e s s e s or m a jor a ctiv i­
ties of the em ployer 1 (table 3). In 35 percen t
1
o f the agreem ents, con trols w e r e placed on

10 Ibid., p. 14.
11 Major activity, for purposes of this study, is the non­
manufacturing equivalent o f production work, i. e . , the basic
function o f the firm to which all others are ancillary.

7
contracting out con stru ction , m aintenance, r e ­
pair and installation a ctiv itie s; se r v ice s w ere
sp e cific a lly r e fe r r e d to in slightly m ore than
7 p ercen t o f the agreem en ts.
Construction
and s e r v ice s together (as in the 1959 study)
accounted fo r 275 agreem en ts, o r 36 percen t
o f the total perm itting subcontracting subject
to re strictio n .

Those p rov ision s governing the p rod u c­
tion p r o c e s s o r m a jo r activity w ere found
m ore often in nonmanufacturing than in manu­
facturing in du stries. To a large extent, this
finding was influenced by the preponderance
o f these p rov ision s in the building trades,
as w ell as by the p resen ce o f substantial
num bers of such clau ses in e le c tr ic and gas
u tilities.
H o w e v e r , p rov ision s controlling
production also w ere fa ir ly w idespread in
m anufacturing. Among those clau ses lim iting
production o r m a jor activity subcontracting
w ere the follow in g:

The company recognizes and acknowledges the rights of its
employees to perform its telephone work, and agrees not to
contract work out that is not customarily contracted out in
such a way as to currently and directly cause layoffs and/or
part-timing of present employees . . .
(7)
*

*

*

In the event company shall contract or sublet any electrical
work which under ordinary circumstances it would perform in
the regular line of its operation, it agrees to impose the con­
ditions as outlined herein upon such contractor or subcontractorj it being understood, however, that this section does not
apply to work not so classified . . .
(8)
* * *
This provision shall apply only to contracts and subcontracts for
the performance of logging and lumbering operations and shall
not apply to building construction contracts or other contracts
outside logging and lumbering operations themselves. (9)

Clauses regulating con stru ction , m ainte­
nance, and rep a ir w ere preponderantly in
m anufacturing in du stries, e sp e cia lly in p r i­
m a ry m eta ls, m ach in ery, and transportation
equipment. T ypical of the language in these
p rov ision s w ere the follow in g:

The union shall have jurisdiction over all maintenance, re­
pair and other work in and around the plants under this con­
tract, except when the manufacturer decides that such work
will be done by contract. Manufacturer shall not exercise
this right unreasonably. The manufacturer also agrees to keep
the local union officers informed o f construction jobs that are
to be contracted. (10)




* * *

When maintenance d e p a r t m e n t employees are laid-off or
working in other departments, the company will not hire out­
side contractors to come into the plant and do the work until
the company has first discussed the proposed work with the
bargaining committee. A violation of this obligation shall
result in pay to the appropriate employees for time loss, if
the work was of the kind, quality, and amount normally per­
formed by the maintenance department. (11)
*

*

*

Maintenance work, in-plant repair work, and in-plant con­
struction work, of the nature that employees of the bargaining
unit are able to do such work with due regard to their own
safety, through the exercise of their normal skills, and within
the time limits imposed by the company’ s business require­
ments, shall be performed by employees of the bargaining
unit. (12)

As noted e a r lie r , subcontracting o f co n stru c­
tion and maintenance w ork may lead o c c a ­
sionally to conflicting claim s between the in plant union seeking to retain such w ork and
the outside union seeking it fo r seasonally
unemployed m em b ers.
In such ca s e s , the
dispute not only involves labor and m anage­
ment, but also causes ju risd iction a l riv a lrie s
between in-plant and outside u n ion s.12
One avenue for the peaceful settlem ent
of these ju risd iction a l con flicts was to d if­
ferentiate in the agreem ent between the kinds
of construction and maintenance w ork that
would be retained by in-plant w ork ers and the
kinds that could be subcontracted. Of the 267
agreem ents which contracted out construction
and m aintenance, 42 percent adopted such
dem arcations. The clustering in p r i m a r y
m etals was p articu larly strong.
As a rule,
clauses coverin g these areas perm itted sub­
contracts for m a jor or new construction or
installation, or additions to existing plants:
New construction including major installation, major replace­
ment, and major reconstruction of equipment and productive
facilities at any plant may be contracted out, subject to any
rights and obligations o f the parties which, as o f the begin­
ning of the period specified above, are applicable at that
plant. (13)
* * *
The company reserves the right to contract work when it does
not take work from the production and maintenance unit or
when men are unavailable in the unit for temporary or seasonal
jobs to perform the work when required.
Contracting major new surface construction, or major altera­
tions o f existing surface facilities, excluding short connecting
lines to the project, shall not be considered as taking work
from the production and maintenance unit. (14)
* * *

12
For an interesting exposition of this view, see Margret
Chandler, Management Rights and Union Interests. New York,
McGraw-Hill, 1964, 329 pp.

8
The company agrees that it will not subcontract maintenance
work (as distinguished from new construction or major modifi­
cation or rehabilitation work) to be performed on company
premises when such subcontract covers continuing work opera­
tions. . . . (15)

The sm all num ber that allow ed se rv ice s
to be con tracted— i. e. , trucking, ja n itorial,
and c a f e t e r i a s e r v ic e s — was concentrated
la rg ely in p rim a ry m etals. V ery few stipu­
lated s e r v ice s perhaps, because of the broad
interpretation that might be given to m ainte­
nance p ro v isio n s. The few specifying se r v ice s
largely adopted un iform language as follow s:
If production, service, and day-to-day maintenance has in
the past been performed 'within the plant under some cir­
cumstances . . . and under some circumstances by em­
ployees o f contractors, or both, such practice shall remain
in effect . . .
(16)
*

*

*

Irrespective of any other provision or provisions of this agree­
ment, the company retains and may exercise the free and
unrestricted right and privilege to contract or subcontract . . .
for the performance of any work, services, projects, jobs,
or operations of the character or nature heretofore so contracted
or subcontracted and performed by outside contractors. The
company shall not contractor subcontract for or assign any work,
services, projects, jobs, or operations to outside contractors
not heretofore performed by outside contractors or subcon­
tractors and which is normally performed by employees within
the bargaining unit before discussing same with the union. (17)

Over on e-fifth of the agreem ents p e r ­
mitting subcontracting co v e re d m ore than one
area, m o st often production and construction;
but 45 co v e re d production, con stru ction , and
s e r v ic e s . Am ong these com binations was the
follow ing letter of intent regulating the sub­
contracting of production and maintenance
work:
All production and maintenance work customarily performed
by the employer in its own plant and quarries and/or mines
and with its own employees shall continue to be performed
by the employer with its own employees . . . so long as the
company has the facilities and equipment and available trained
personnel to properly perform the work required. (18)

As the follow ing pages w ill indicate, the
area o f subcontracting, in som e ca se s , has
influenced the kind of lim itation placed on
such a ctivities.

bargaining unit which cam e under the sub­
contracting p ro v isio n ’ s re strictio n s . By im ­
plication, all w ork not falling within t h i s
vaguely defined area was excluded from the
p ro v isio n ’ s ju risd iction :
Work usually performed by employees in this bargaining unit
will not be contracted out if it will result in layoff of the
employees covered by this agreement. (19)

In c o n t r a s t , very few provision s d e ­
scrib ed the kind of w ork which would not be
cov ered by the clause:
It is recognized that the employer and the union have a
common interest in protecting work opportunities for all em­
ployees covered by this agreement. Therefore, except for
work which is exclusively inventory or janitorial (such as
washing windows, washing or waxing floors, and cleaning rest
rooms) work or work hereinabove excluded (e. g . , stocking,
rearranging, and displaying of nonfood merchandise . . . such
as drugs, health and beauty aids, housewares, soft goods,
books and magazines is being done by an employee of a rack
jobber or service merchandiser in all or any of the retail food
stores of an employer within the geographical jurisdiction of
the contract . . .) , no work covered by this agreement, . . .
shall be performed under any sublease, subcontract, or other
agreement unless . . . (20)
*

Two hundred and tw e n ty -six provision s
a t t e m p t e d to define, in broad te rm s, the
lim its o f perm itted subcontracting. Although
no p re c is e data w ere available, m ore than
on e-h a lf o f the clau ses retained a m easure
of flexib ility . They did not stipulate the w ork
that would be excluded fro m the cla u s e ’ s lim ­
itations, but sp e cifie d the w ork n orm ally,
regu la rly, or cu stom a rily p e rfo rm e d by the




*

When overtime work by contractors is authorized and controlled
by the company, equal opportunity for such overtime work
shall be afforded those company employees normally doing
the same type of work within the same exchange in which
contract labor is employed. As an example, the work of
tree trimming, on an extensive scale, is a specific type of
work not normally performed by company employees. (21)

Additional clau ses cited w ork which habitually
the em ployer had subcontracted and stipulated
that such past p ra ctice , when already estab­
lish ed, should be allow ed to continue:
. . . nothing herein shall prevent the company from following
companywide past practices in engaging outside contractors
to do work when necessary. (22)
*
*

*

*

The employer shall not engage any outside persons, firms,
or corporations to do any of the work that can be efficiently
performed by the employees covered by this agreement, except
work that has normally been sublet. (23)
*

G eneral P rov ision s

*

*

*

The company agrees not to contract out work customarily per­
formed by its employees. However, nothing herein contained
shall prevent the company from continuing to have work per­
formed outside of the company which prior to April 30, 1962,
it customarily has had performed outside the company. (24)

Other p rov ision s reliev ed the em ployer
from increasing the size of the regular in plant labor fo rce fo r short duration jo b s .
A cco rd in g ly , a few clau ses allowed such jobs
to be subcontracted without restriction :

9
. . . the company may subcontract where . . . the work is
of such urgency or short duration as to make it impractical
to add additional men to the regular production or mainte­
nance force . . . (25)

Clauses a lso might define short duration as
in the follow ing:
Work performed by a subcontractor within the plant for periods
in excess o f 2 consecutive weeks will be discussed with the
union . . . (26)
*

*

*

The company agrees that it will not subcontract maintenance
work operations to be performed on company premises when
such subcontract covers continuing work operations to be per­
formed for longer than two (2) months and when the work
operations involved have normally been performed by employ­
ees in the bargaining unit, unless a sufficient number of em­
ployees are not available to perform such work operations
within the time required. (27)

One variant of
d escrib e d job s
contracting
another variant
a given cost:

the short duration p rovision
outside the scope of the subclause as on e-tim e jo b s , and
in e ffect excluded job s over

The company will not subcontract work normally performed
by men in the association, except for one-time jobs. (28)
* * *
The company agrees that it will not subcontract maintenance
work (as distinguished from new construction or major modifi­
cation or rehabilitation work) to be performed on company
premises when the work operations involved have normally been
performed by employees in the bargaining unit, except in the
following instances:
. . . Where unusual or one-shot jobs are required which
are not usually performed by the company. (29)
* * *

Where the company contracts for an item or service which is
made or worked on by its own employees, for which it has
not contracted for in the past, and which exceeds $750.00 in
cost, it will, upon the request o f the grievance and negotiating
committee, explain the reason for so doing. Such request shall
be made by the unit chairman to the personnel director. (30)

P ro v isio n s which s t i p u l a t e d that the
volum e of subcontracting would be maintained
at present le v e ls w ere ra re:
. . . With respect to work or functions which in the past have
been performed for the company both by persons within and
without the unit the company may continue to have such work
performed outside the bargaining unit to a degree no greater
than heretofore. . . .
(31)

P rov ision s P rotectin g In-Plant Em ploym ent
Opportunities
About tw o-th irds (498) of the agreem ents
perm itting subcontracting had one rule or



m ore which d ire ctly or in d irectly safeguarded
in-plant w ork ers and their job s (table 4). Of
the three categ ories of con trols (to p rotect
in-plant w ork ers, and union and c o n t r a c t
standards, and to establish business con d i­
tions perm itting subcontracting), regulations
protecting in-plant w ork ers w ere the m ost
num erous. Included w ere 16 p rovision s which
also p rotected em ployees o f regular rather
than occa sion a l su bcon tractors. The 4 9 8 p r o ­
vision s cov ered over th ree-fou rth s of the
w ork ers (3. 2 m illion ) under provision s p e r ­
mitting subcontracting. Manufacturing c o m ­
panies w ere m ore lik ely to have included
em ploym ent protection ru les, where p r o v i­
sions w ere found in m ore than 78 percen t of
manufacturing agreem ents, than nonm anufac­
turing firm s, where slightly under 55 percent
protected in-plant w ork opportunities. Nonm anufacturing^ low er prevalence was influ­
enced by the construction industry, where
only about on e-th ird of the p rov ision s sa fe ­
guarded in-plant job opportunities.
The construction industry subcontracts
as an accepted daily activity and since the
same unions rep resen t both subcontractors *
and prim e contractors* w ork ers, su bcon tract­
ing p o licie s concentrate m ore on insuring
contract and union standards than on retaining
job opportunities. H ow ever, the apparel in ­
dustry, which also subcontracts as a m atter
o f co u rse , follow ed different p o licie s .
A l­
m ost all o f app arel's 52 p rov ision s regulating
contracting out contained one rule or m ore
safeguarding w ork opportunities. In part, this
divergence can be explained by the differing
attachments that w ork ers have to em ployers
in each industry. Attachment in the co n stru c­
tion industry is casual. W ork ers are likely to
be em ployed by se v e ra l different construction
com panies during one season.
A ccord in gly ,
construction w ork ers are m ore interested in
areawide contract standards then in p r e s e r v ­
ing em ploym ent opportunities with a single
firm .
In the apparel industry, on the other
hand, attachment to an em ployer is rela tiv ely
firm . W orkers are lik ely to be em ployed by
one m anufacturer fo r the season; they also
m ight w ork casually fo r him during the rest
of the y ear. In addition, there is a regularity
in the attachment of su bcon tractors to p a r tic ­
ular prim e co n tra ctors.
As a consequence,
som e effort is made to safeguard em ploym ent
opportunities for w ork ers o f both the inside
shop and the regular su bcon tractors.
In part, the divergence of subcontracting
p o licie s between construction and apparel also
can be explained by div erse strategies to co n ­
trol contract standards. As w ill be noted in

10
a later section , con stru ction contracts often
provide that the co lle ctiv e bargaining a g r e e ­
m ent o f the prim e em ployer w ill co v e r w o rk ­
e rs of the su bcon tractor. This firm con trol
assu res that wages and other working con d i­
tions w ill not be undercut. The apparel in ­
dustry has not protected standards in this
way; instead, it has stipulated that the sub­
c o n t r a c t o r be organ ized by a union, and
usually, be re g iste re d by the prim e em ployer.
Both are gen eral con trols of subcontracting.
By requiring notice o r union approval o f sp e ­
c ific subcontracting action s, industries other
than apparel ord in a rily allow in-plant w o rk ­
ers to com pete with outside w ork ers fo r job
opportunities. Thus, apparel unions have o b ­
tained an additional con trol against abuse of
subcontracting to the detrim ent o f in-plant
w ork ers and their standards.
P rov ision s which applied to con stru ction,
m aintenance, and s e r v ice s w ere m ore lik ely
to p rotect in-plant em ploym ent opportunities
than p rov ision s which co v e re d the production
p r o c e s s o r m a jor activity. A lm ost tw o-thirds
of the clau ses coverin g the production p r o c e s s
(65. 1 percen t) protected in-plant opportuni­
ties, but fou r-fifth s of those pertaining to
constru ction and maintenance (81. 3 percen t)
and alm ost nine-tenths o f those dealing with
s e r v ic e s (89. 1 percen t) had one rule o r m ore
concern in g in-plant w ork ers and their jo b s .
Again, the low er prevalen ce o f clau ses p e r ­
taining to production or a m a jor activity was
influenced la rg e ly by con stru ction industry
data. In addition, the subcontracting of p r o ­
duction o r a m a jo r activity is lik ely to occu r
in em e rg e n cie s, when fa c ilitie s becom e o v e r ­
taxed o r when deadlines m ust be m et.
Con­
sequently, production w ork ers would be less
con cern ed about lo st opportunity than m ainte­
nance w ork ers who, in periods o f dim inishing
em ploym ent, see w ork that they can p erform
going to outside co n tra cto rs.
N otice and Consultation P ro v is io n s .
In
light of the recen t focus on m anagem ent’ s
duty to bargain ov er its e co n o m ica lly m o ti­
vated subcontracting d e cisio n s, it is sig n ifi­
cant that s p e cific notice and c o n s u l t a t i o n
clauses w ere the m ost prevalent o f those p r o ­
vision s dealing with em ploym ent opportunities
(258), but accounted fo r only about on e-th ird
of the 755 p rov ision s regulating contracting
out (table 5).
These clau ses co v e re d about
45 percen t o f the w ork ers under provision s
governing subcontracting a ctivities.
There are probab ly additional co lle ctiv e
bargaining situations in which a notice o f in ­
tention is provided.
F ir st, if a regu latory
p rov ision e x ists in the con tract, em ployers



in form ally m ust give notice of their d ecision s
to activate, in good faith, existing contractual
rules or subcontracting. Second, even in the
absence of a subcontracting p rov ision , it is
also p ossib le that the F ibreboard and su b se­
quent d ecision s have in crea sed the in form al
p ra ctice o f providing a notice of intention to
subcontract.
Although the 258 notice and consultation
p rov ision s w ere relativ ely w idespread among
all industry grou ps, five i n d u s t r i e s had
m arked concentrations. Together, these five
accounted fo r on e-h a lf of the agreem ents and
th ree-fou rth s o f the w ork ers c o v e r e d by
notice and consultation cla u ses:
Having notice and
participation provisions
Industry
Total — -----------Apparel---------------------Primary metals —— —
Machinery —---------—
Transportation equipment—
Utilities — — -------------

Agreements

Workers
(in thousands)

132

1,417.2

21
40
24
24
23

173.0
414.4
117.0
648.0
64.9

The totals w ere affected p a rticu la rly by the
p rim a ry m etals industry w h e r e the S teelw o r k e rs ’ settlem ent with Big Steel established
a pattern fo r the re st of the industry.
B e­
cause o f the large size of many steel b a r ­
gaining units, its influence was p a rticu la rly
strong on w ork er cov era ge; in the tra n sp or­
tation equipment industry w ork er cov era ge
was affected sim ila rly .
O ver on e-h a lf of the construction a n d
maintenance contracts (58. 1 p ercen t)cov erin g
th ree-fou rth s of the w ork ers (75. 3 percent)
provided fo r notice and consultation p r o v i­
sions com pared with few er than on e-th ird
of the production p r o c e s s or m a jor activity
agreem ents (31. 3 percen t) cov erin g tw o-fifth s
of the w ork ers (42 p ercen t). H ow ever, m ore
agreem ents involving production or a m a jor
activity had notice and consultation clau ses
(203) than those involving constru ction and
maintenance (155).
This dichotom y m e re ly
reflected the grea ter number of agreem ents
l i m i t i n g subcontracting of production that
w ere in the study. P rop ortion a tely, co n stru c­
tion and m aintenance p rov ision s which had
notice p o licie s w ere m ore prevalent becau se
retention o f jo b opportunities was a m ore
s e n s i t i v e issu e fo r in-plant maintenance
w ork ers than it was fo r production w ork ers.

1
1
Timing the n otice was c r it ic a l to the
effectiven ess of the clau se. D iscu ssion at the
time or after a con tract was already let o b ­
viously gave the union little room to act for
its in-plant m em bersh ip except that by r e t r o ­
spective review a p olicy fo r future subcon­
tracting a ctivities of the em ployer could be
established. Few p rovision s would give notice
or d iscu ssion after the d e cisio n had been
m ade.
Among the few was the follow ing:

work, when so performed, under the company's basic mana­
gerial responsibility is not more costly and can be performed
as timely and effectively as compared with outside repair work
personnel. The arrangements therefore shall be worked out in
advance between the parties; however, should the parties be
unable to work out arrangements in advance, there shall be
no delay in maintenance and repair work. The wages, hours
of work, and other conditions of employment for such work
shall be negotiated between the union and the company. Any
dispute arising hereunder shall be subject to provisions of
section 2 of the agreement. (37)

If the union wishes an explanation as to why the company has
contracted out certain work, the union shall make an inquiry
at the personnel office and receive a prompt answer as to
why the company deems it necessary to contract out such
work. (32)

The union was designated m ost often as
the party to re ce iv e n otice. H ow ever, several
individuals and groups might re ce iv e n otice.
Stewards, shop delegates, chairm en of the
shop com m ittee, shop com m itteem en, and
loca l union o ffice r s w ere sp ecified in various
p rov ision s.
In oth ers, an u n n a m e d c o m ­
m ittee, or the shop, u n i o n , or bargaining
com m ittee a lso m ight be notified or consulted.

P ro v isio n s in which timing of n otice was
vague w ere equally ra re:
If any question arises concerning the effect o f subcontracting
on bargaining unit employees' jobs or hours o f work, the com­
pany will negotiate with the union. . . . (33)

M ost o f the p rov ision s stipulated that
notice had to be given b efore a con tract could
be let.
A number o f prov ision s furnished
both advance notice and a com m ittee review of
subcontracting p o lic ie s . By specifying p rior
notice the union had m ore opportunity to co n ­
vince management of the advantages of p e r ­
mitting inside w ork ers to do the job:
Prior to engaging an independent contractor, the company will
notify the union and will outline the nature of the project or
plan, and the union will be given an opportunity to make
prompt suggestions for consideration by the company. (34)
* * *
. . . In any case in which it is proposed to use an outside
contractor for work usually done by the regular employees of
the company which does not result in the discharge or layoff
o f regular employees or in a reduction in their rate o f pay,
the union shall be given notice and an opportunity to be heard
before the contract is let.
(35)
*

*

*

Without diminishing in any way its right to subcontract, the
company agrees to give the local union advance notice in
writing of work to be subcontracted. (36)

An occa sio n a l clau se recogn ized that under
certain circu m sta n ce s, the com pany m ight not
be able to give ea rly n otice of subcontracting.
The follow ing prov ision insured the com pany
against delay in ca se tim ely arrangem ents
could *not be a greed to with the union:
Maintenance and repair work on any of the mechanized, semimechanized, or retrofit vessels of the company while the vessels
are in port, which falls within the jurisdiction of the licensed
engineers and can be performed aboard the vessel, shall be
performed by the regular complement of ship's engineers or
licensed engineers who have been cleared by the union for
such work, and shall not be contracted out, provided that the




N otice prov ision s allow ed the union to try
to retain w ork fo r in-plant w ork ers. These
provision s gave the union the opportunity to
request detailed ju stification from the c o m ­
pany, file a grievan ce if the em ployer p e r ­
sisted in his d ecision to s u b c o n t r a c t , or
consult and discu ss the decision with the em ­
ployer to convince him to abandon his d e c i­
sion.
B asically , h ow ever, the decision r e ­
m ained with the em ployer.
H o w e v e r , 32
provision s m odified m anagem ent’ s right to
farm out work to the extent that agreem ent
or union consent was n e ce ssa ry fo r the prim e
em ployer to subcontract. Fully one-third of
these provision s w ere in the apparel industry,
where union consent was a regulatory tool
adopted fo r plant rem oval as w ell as for sub­
contracting:
It is agreed that no member of the association shall have any
work performed or any of its products or parts thereof (including
binding and piping) manufactured outside of its own shop ex­
cept with the consent of the union, . . .
(38)
* * *
Employers shall not manufacture or cause to be manufactured
in whole or in part, in places other than on the premises
owned, operated, or leased by them; however, employers whose
factory space and facilities are used to full capacity . . .
may apply to the union for consent to have ladies' or children's
hats manufactured in other shops . . . (39)

Work regularly performed by the bargaining unit employees
shall not be contracted out except by mutual agreement of
the company and the union. (40)

Under a few p rov ision s, the em p loy er’ s
subcontracting program was to be subject to
p eriodic review . These stipulations perm itted
m anagem ent’ s p olicy to be questioned, and the
union to exert an influence towards changing

12
the com pany’ s subcontracting p olicy .
As a
rule, these provision s sim ply stipulated the
period of review :
It is the intent and desire of the company to utilize its own
employees to do the kind of work they have customarily done
in the past in our plants to the extent it is practical and
economical to do so. It is the intention of the company to
use the machine shops in the plants wherever it is efficient
and economical to do so with the existing machinery, equip­
ment, and manpower. The company will meet locally with
the union officers periodically, but no less often than once
each three (3) months, for the purpose of discussing sub­
contracting. . . .
(41)
* * *

F ifty-th ree agreem ents com bined two of
the various types of notice and consultation
p rov ision s.
F or exam ple, in the following
prov ision , the com pany was required to give
written notice of its intention to contract out,
and the union was allow ed a m inimum o f 10
days to discu ss the m atter b efore the sub­
contracting o ccu rre d .
In addition, a c o m ­
m ittee was established to discu ss with m an­
agement sp e cific contracting out problem s:
When the contracting out o f such work is being considered,
the company shall withhold taking such action to provide the
union a reasonable opportunity for discussion of the matter.

The company agrees to review annually with the union in­
formation showing by crafts the work contracted out and the
number of men employed to perform the work. (42)

A reasonable opportunity for union discussion shall mean a
period fixed by written notice to the union o f not less than
10 working days, unless the company explains to the union
the reason why a shorter discussion period is specified.

In the follow ing cla u se, the period ic m eeting
requ ired the com pany to furnish detailed in­
form ation . It sp e cifica lly exem pted subcon­
tracting d ecision s fro m grievan ce proced u res
or other con tract p rov ision s:

. . . The purpose of this committee shall be to discuss other
specific problems raised by either party in connection with
contracting o f work regularly and customarily performed by
employees and to develop a background o f experience for
future guidance. (44)

In recognition of the union’s interest in the company's makeor-buy or subcontracting activities, and the mutual desire of
the company and union to maximize employment opportunities,
the parties agree that during the term of this agreement they
will engage in discussions of such matters in the following
manner and to the following extent.
1. A committee of three union representatives to represent
all . . . unions representing employees of the company will be
established.
2. The said committee will meet quarterly on a regularly
scheduled day beginning June 1964 with the executive vice
president of the company (or his personal representative) and
two additional company representatives to be d e s i g n a t e d
by him.
3. At each quarterly meeting, the following areas will
be reviewed:
a. The significant make-or-buy, and subcontracting
decisions of the previous quarter;
b. The significant anticipated business of the coming
quarter, and the probable direction of make-or-buy, or sub­
contracting decisions anticipated during that quarter;
c. The recommendations and suggestions of the union
committee with respect to anticipated decisions and their com­
ments or views as to the decisions of the previous quarter, will
be given consideration with a view to retaining at the com­
pany's Long Island facilities the maximum amount of work
feasible under all relevant circumstances, such as scheduling
and cost.
d. Any special problems that may arise with respect
to these areas.
4. It is recognized and agreed that decisions as to makeor-buy and subcontracting must finally rest with the company,
and shall be the responsibility solely of the company.
5. No matter or issue related to or growing out of sub­
contracting or make-or-buy decisions of the company or the
effect of such decisions, or concerning this memorandum,
shall be subject to the grievance or arbitration procedures of
the contract, under any provisions of the contract or any pro­
vision of this or any other memorandum or understanding. (43)




Of the 53 com binations, 35 w ere in p r i­
m ary m etals.
The clause was lengthy, but
in ess e n ce , it provided that agreem ent (1)
would be required to subcontract production,
s e r v ice s , and d a y -to -d a y maintenance and r e ­
pair within the plant where the practice had
been to have the w ork perform ed by the b a r ­
gaining unit; (2) would be required i f there
w ere any change in past p ra ctice where such
w ork (a) had som etim es been contracted out,
or (b) had always been contracted out.
In
addition, the parties established a joint c o m ­
m ittee to resolv e problem s in the operation,
application, and adm inistration of the sub­
contracting p rov ision and to discu ss current
subcontracting problem s and related item s. 1
3
L ayoff and P a rt-T im in g o f W ork ers. Of
the 498 p rov ision s protecting job opportuni­
ties, 187, or over on e-th ird , applied to rules
restrictin g contracting out w h e r e in-plant
w ork ers w ere on la yoff or working part tim e;
or if, as a result of subcontracting, w ork ers
would be laid off or placed on a part-tim e
schedule (table 5). A lm ost one-fourth o f all
c l a u s e s regulating subcontracting included
such a la yoff or p art-tim e p rov ision . N early
tw o-thirds w ere in nonmanufacturing, where
they w ere heavily concentrated in tra n sp or­
tation (45), utilities (44), and com m unications
(20). These three in du stries, com bined, a c ­
counted fo r 58 percent of the 187 clauses and

13

The full clause appears in appendix A.

13
alm ost 72 percent o f the w ork ers co v e re d by
such ru les.
P ro v isio n s concerning layoffs
and part-tim e w ork w ere w idely scattered in
manufacturing but no significant con cen tra ­
tions exist.
A greem ents pertaining to con stru ction
and maintenance had proportion ately m ore
provision s with la yoff or pa rt-tim e rules (33.3
percent) than those concerning the production
p ro ce ss (24. 9 percen t).
A variation of the layoff or p a rt-tim e
rule was the p rov ision stipulating that w ork
could not be subcontracted unless the inside
shop was fully supplied with w ork.
These
provision s w ere found in 55 a greem en ts, 38
of which w ere in the apparel industry. The
l a n g u a g e was p a rticu la rly suited to such
piecew ork in du stries.
Combined, la yoff or pa rt-tim e provision s
and those stipulating that regular em ployees
be fully supplied with w ork w ere found in
240 con tracts coverin g 1.4 m illion w orkers
which contained p rov ision s to protect regular
em ployees fro m the a d v erse effects of sub­
contracting. This total does not double count
two agreem ents which had both prov ision s and
which co v e re d 3, 700 w o rk e rs. This number
was slightly over 30 p ercen t of the contracts
and w ork ers under the 755 agreem ents regu ­
lating con tract w ork.
T ypical of those p rovision s which p r o ­
hibited subcontracting if w ork ers w ere a l­
ready laid off a re the two illustrations below ,
both fro m differen t plants o f the sam e c o m ­
pany and each organized by a differen t union.
Although the prin cip le rem ained the sam e,
ch oice of language was differen t and an o v e r ­
time w aiver was included in the secon d p r o ­
vision . The w aiver applied to sk illed crafts
in the plant:
It is the intention o f the company to provide full and regular
employment for its employees except during periods when
conditions necessitate reduction in plant output. In accord­
ance with this intention, the company agrees that work per­
formed by members o f the unit shall not be contracted out . . .
so long as there are qualified employees available from among
present and/or laid off employees eligible to return to work
under the recall provision. (45)
*

*

*

The company will not contract out maintenance work while
there are employees available on the active payroll working
in the required craft or working in another department in lieu
o f layoff, or employees entitled to recall from layoff who
have seniority in the required craft . . .
This provision above shall not obligate the company to pro­
vide overtime work for employees in the required crafts or
craft, nor shall it obligate the company to hire additional
employees. (46)




In the follow ing p rov ision , norm al and rou ­
tine w ork could be let if there was no layoff,
but if layoff should occu r during the con tract,
no further w ork would be farm ed out:
. . . the company will enter into outside contracts for normal
and routine work such as laying mains and services or installing
or regulating gas appliances only when all employees engaged
in such work are working full time and when the work con­
tracted for is of such a nature that it cannot be postponed.
In case layoffs for lack of work occur in a line of work which
is being performed under a contract, the company agrees not
to enter into any additional contract or contracts affecting that
work, until all regular employees so laid off have been re­
turned to work.
The c o m p a n y will continue, as in the past, to employ
architects and contractors, as occasion and fair outside busi­
ness relations may require, for construction and building oper­
ations and for special maintenance projects not regularly a
part of its activities in producing and distributing natural gas.
The company will not undertake to regulate the conditions
of employment which may prevail under outside contracts or
subcontracts covering such construction, building or mainte­
nance. (47)

Other agreem ents barred contracting out if
regular em ployees w ere not working 40 hours
a week or a full week plus overtim e:
Each member shall manufacture its requirements of dresses,
completed articles, parts, wigs, masks, shoes, stockings, and
clothing in its plant wherever located to the limit of its maxi­
mum capacity.
A member shall be deemed to be manufacturing its require­
ments of the items referred to above to the limit to its maxi­
mum capacity only when all of its employees who have not
lost their seniority under this agreement are working at least
a full 40 hours a week during the entire period in which work
is given to companies or contractors or is purchased from
outside. (48).
* * *
It is agreed that . . . the company will not subcontract or
send out work to be performed by any other company unless
the employees covered by this agreement are working at least
forty (40) hours weekly in the department within which such
work would be normally performed. . . . (49)
* * *
No work shall be given to any contractor, subcontractor, or
branch factory of said employer unless all employees covered
by this agreement are working a full week including maxi­
mum overtime . . . (50)

M ost num erous w ere those provision s
which prohibited subcontracting if, as a r e ­
sult, w ork ers would be laid off or placed in
part-tim e status. The concentration was e s ­
pecially heavy in e le ctric and gas u tilities
which alone accounted for 42 out of 90 p r o ­
vision s. Some of these clau ses stipulated that
work would not be subcontracted i f w ork ers
would be laid off, disp la ced , or deprived o f
em ploym ent. The fir s t illustration protected

14
only w ork ers who had 10 years of s e r v ice .
In a second variation, m anagem ent agreed to
con sid er em ploym ent secu rity b efore subcon­
tracting as in the third illu stration below :
The company may let independent contracts but will not let
a maintenance contract . . . that will cause an employee
in either mechanical division who has 10 or more years of
plant service to be laid off for lack o f work during the term
o f this agreement. (51)
*

*

During the time that any outside contract is in effect for work
which could be done by the company's own mechanics, no
regular mechanic will be transferred out or laid off from his
skill, nor scheduled for less than a 5-day workweek. An ex­
ception will apply when work is fabricated elsewhere in order
to secure the materials. . . , (57)

In 18 ca s e s , subcontracting was perm itted
if in-plant w ork ers either w ere not on layoff
or if layoff would not result:

*

The company shall have the right at any time to enter into
a contract or contracts with any person, firm, or corporation
for plant repairs, changes, improvement, or major mainte­
nance, or for the installation, removal, or changes o f ma­
chinery and equipment, provided that no company employees
who are capable of performing such work will be displaced,
and the union will not interfere with such independent con­
tract work. . . . (52)
* * *
When it becomes necessary to determine when, or what, to
subcontract, it is, and will be, the policy of the company
to first consider the impact on the employment security of
its employees. . • • (53)

Other prov ision s sp e cifie d that a reduction
in w eekly h ou rs, in addition to la yoff, might
be sufficien t grounds to deny subcontracting.
In the secon d illu stration , subcontracting that
resulted in the dem otion of regu lar em ployees
was forbidden :
The company agrees that the work ordinarily and customarily
performed by its own employees will not be contracted out
if such contracting would result in the direct layoff o f its
forces or in a reduction o f their workweek below the normal
workweek o f the company. . . . (54)

The company will not enter into a contract or contracts for
the construction of telephone plant or the installation of tele­
phone equipment . . . without first having obtained in each
instance the consent of the union . . . ; except that where
(it) is not coincident with or will not result in any layoff of
employees who could perform the contracted work, the con­
sent of the union need not be obtained. (58)

The variant noted e a r lie r , appearing in
38 agreem ents, b a rred subcontracting unless
regular em ployees w ere fully supplied with
w ork.
The illu stration below requ ired, in
addition, that in-plant w ork ers would have to
be working ov ertim e:
When transfers, upgrading, overtime, and rehiring of laid-off
personnel will not meet the overload situation, we must meet
it by hiring new personnel or-subcontracting.
Under normal circumstances, we would not subcontract unless
our own people were on overtime. . . . (59)

In the apparel industry eight a g r e e m e n t s
allow ed expansion of subcontracting only if
in-plant w ork ers and w ork ers of regular sub­
con tra ctors w ere fu lly supplied with w ork:

* * *

All work contracted by the company with a contractor will
not in any way cause layoff, curtailment below a normal
scheduled workweek, or demotion. (55)

Two interesting clau ses provided w ork
guarantees. In the fir s t, in-plant job s could
be elim inated, but if the su bcon tractor did not
hire d isp la ced w ork ers in com parable jo b s ,
the prim e em ployer would be obligated to
place them in equivalent w ork.
The second
p rov ision s insured w ork ers against la yoff or
reduced w eekly hours, but w aived the gu a r­
antee when it would be n e c e ssa ry to p re fa b ­
ricate w ork elsew h ere to obtain m a te ria ls:
When the transferring or contracting of work to others involves
the elimination of jobs of regular full-time employees, it is
agreed that if the transferee or contracting company does not
afford said employees the opportunity to continue the same
general type of work, the company shall furnish such em­
ployees with work requiring comparable skill. When such
employees are furnished such other work within the com ­
pany, their tenure of employment shall thereafter be subject
to the same conditions as apply to other regular full-time
employees. (56)




* * *

A member of the association shall have the right to desig­
nate an additional contractor or contractors, when the em­
ployees of his inside shop, if he maintains one, and all of
his designated permanent contractors who employ workers in
the crafts covered by this agreement are fully supplied with
work . . . (60)
* * *

In order to safeguard working standards and employment op­
portunities of the workers covered by this agreement, it is
agreed . . . that the employer shall not sell or handle, pur­
chase or obtain, as sales agent or otherwise, directly or in­
directly, from or for other manufacturers, jobbers, merchants,
wholesalers, or contractors, any other wholly or partly finished
garments whatsoever during the term of this agreement unless
his inside shop and the shops of his duly designated contractors
are fully supplied with work, and no such purchase and sale
shall be made unless the same is bona fide and genuine or
if the employer's purpose is to avoid any of his obligations
under this agreement. (61)

M iscellan eou s P ro te ctio n s. In 33 a g re e ­
m ents, se v e ra l different p r o t e c t i v e ap­
proach es w ere adopted to retain jo b op p o r­
tunities fo r in-plant w ork ers and, in 16 of
these, fo r w ork ers of su bcon tractors. Fifteen

15
of the 33 p rovision s w ere in the apparel in ­
dustry and accounted la r g e ly for the a g r e e ­
m ents covering w ork ers of su bcon tractors.
M o st num erous w ere 17 p rovision s that o b li­
gated the p rim e em p loyer to use his b est
effo rts to obtain job s for laid off em p loyees
with the subcontractor or em p loyees who
could be re le a se d to w ork for the subcon­
tra c to r:
In all operations, when contract work is necessary, the com ­
pany agrees to use its best offices that the contractor employ
available Continental employees who can be released or Con­
tinental laid-off employees who are qualified . . . (62)

One p rovision stipulated t h a t
an em ployee
working for the s u b c o n t r a c t o r would be
guaranteed reem ploym en t with his fo rm e r
e m p lo y e r:
The employer agrees that its employees then engaged in the
particular work which is contracted out shall become em­
ployees of the initial contractor or any successor contractor,
and agrees to employ or reemploy those employees in the
employment of the contractor at the time of termination or
cancellation of the contract . . . (63)

Fourteen provision s p rotected the seniority
of in -plan t em p loyees assign ed to a subcon­
tr a c to r:
Employees granted leaves of absence to work for a contractor
performing services for the employer shall retain their seniority
on the same basis as though they had continued to work for
the employer. (64)

Among the cla u ses that protected su b ­
c o n tr a c to r s em p loyees w ere a number e s ­
tablishing the principle that w ork would be
shared equally among em p lo yees of the in ­
side and the reg u larly designated outside
shop during sla ck se a so n s.
This clause was
typ ically found in apparel a g r ee m e n ts:
It is further agreed that during the slow season, all work
shall be divided as equally as possible between the inside
shop and the shops of the duly registered regular or per­
manent contractors or submanufacturers w o r k i n g for the
employer. . . . (65)

O thers provided that the w ork ers of a regular
subcontractor who planned to term inate op ­
erations or se v er the contractual relationship
with the p rim e em p loyer would be absorbed
by the inside shop or the rem aining subcon­
tr a c to r s:
Should a contractor designated by a member of the associa­
tion abandon his designation or cease to operate his busi­
ness . . . the workers of such contractor shall immediately
be absorbed either by the inside shop of the member, if he
maintains one, or by the remaining designated contractors of
such member. . . . (66)

P re feren tia l C on sideration .
F ifty -fo u r
p r o v i s i o n s covering over o n e -h a lf m illio n
w ork ers stipulated that the e m p l o y e r , in




making his subcontracting d ecisio n , would
give p referen ce or consideration to in-plant
w o r k e r s (table 5). About o n e -h a lf of the
agreem en ts as w ell as 87 percent of the
w ork ers covered by such p rovision s were
concentrated in m a c h i n e r y , transportation
equipment, and transportation.
The p r o v i­
sions w ere about evenly divided between those
who subcontracted production w ork and those
who farm ed out construction a ctiv itie s.
B a s ic a lly , p rovision s of p referen tial con­
sideration weakly re stricte d m anagem ent’ s
a c tiv itie s.
The decision to subcontract r e ­
m ained with m anagem ent and was virtu ally un­
im peded, except that the em p loyer would allow
in -p lan t w ork ers to com pete fo r the w ork;
would p r e fe r in -p lan t w orkers to the fu llest
extent p ra ctic a b le; would give advantages that
can be reasonably provided to his em p lo y e e s;
or would consider them :
The employees covered by this agreement shall be given pref­
erence for maintenance and construction work in the plant
to the fullest extent practicable. (67)
* * *

The method or combination of methods used will vary de­
pending upon the circumstances, but we can state as a gen­
eral principle that our intent in all cases is to give our own
people all the advantages that can reasonably be provided
before we hire new people or subcontract. I feel sure that
union and company can agree on this principle and that dif­
ferences in opinion will arise only in deciding in specific
instances what advantages for our own people can reasonably
be provided . . .
(59)
* * *

In cases of unusual items of work which the company con­
templates letting out on contract, consideration will be given
to having such work done by its production and maintenance
employees. (68)

O vertim e P r o v is io n s . One m eans of p e r ­
suading em p lo yers not to sublet work was to
r a ise the co st of such contracts so that the
em ployer would benefit by keeping the work
in the plant. In 29 p r o v is io n s , o vertim e was
employed towards this goal. In the fir s t illu s ­
tration, plant em ployees would re c e iv e o v e r ­
tim e if w ork ers for subcontractors w ere r e ­
ceiving o v e r t i m e ; in the second , in -p lan t
w orkers m u st be receivin g overtim e before
work could be contracted out.
The second
illustration waived this obligation for new
construction:
If contractors' or other utilities' employees are used on com ­
pany property during emergencies and are receiving double
time, company employees in the same department and district
working on the emergency shall be paid two times the straighttime wage rate. This shall also apply to employees from
other departments working on such emergencies. . . . (69)

16
It will be company policy to accomplish its general mainte­
nance work with its own employees . . .
In every instance,
consistent with said policy, company employees will be utiUzed, in preference over outside contractors, and a 6th day
of work will be offered to such numbers and classifications of
its employees as the company’s needs may require.
In the case of new construction it will be company policy to
accomplish a large amount of such work with the employees
of the new construction section of its own maintenance de­
partment and to employ outside contractors for new construc­
tion when deemed advisable, without any obligation as to
lengthening the workweek for any of the employees of the
company. . . . (70)

W a iv e r s , in fact, w ere ch a ra cte ristic of o v e r ­
tim e re str ic tio n s. The fir s t p rovision below
gave in -p la n t w ork ers p referen ce over the
su b co n tra ctor’ s em p loyees for o vertim e w ork,
if it did not affect efficien cy or o v e r -a ll cost.
The second w aived overtim e
requirem en ts
when the sk ills required by governm ent and in­
surance regulations w ere not available among
c o m p a n y e m p lo y e e s; and the third would
forego overtim e when industry p ractice or the
continuous b a sis of the job n ecessitated sub­
c o n tr a c to r ^ em p loyees working o v e r tim e :
. . . The company will, as far as practicable, restrict contractors
to the same workweek as that established for employees under
this agreement. With regard to overtime work, the company
will, as far as is practicable, follow the policy of assigning
such work to its own employee work forces rather than those
of contractors in those instances where the effect of such
assignment would not adversely affect either the efficiency
or over-all cost of doing the job. (71)

avoid this potentiality, four agreem en ts stipu­
lated that in -p lan t w ork ers did not have to
work with c o n tr a c to r s ’ e m p lo y e e s:
When construction work is being performed by outside con­
tractors, company employees are not to be required to work
in conjunction with contractors' employees. (74)

Seventy-nine provision s prohibited e m ­
ployer effo rts to convert in -p lan t w orkers
into individual su b co n tra ctors. Such contracts
w ere b a s ic a lly contracts for labor only, and
could re su lt in rem oving job s fro m the plant
and in undercutting contract standards by
changing the existing e m p lo y e r-e m p lo y e e r e ­
lationship:
No employer shall set up any employee in his own shop as
a contractor or in any other shop, directly or indirectly, in
order to evade the terms o f this agreement. (75)

Sixty-one of the 79 c la u ses w ere in co n str u c ­
tion industry a gree m e n ts. A number of these
c le a r ly prohibited contracts for labor s e r v ­
ices only— so m e tim e s ca lled lum ping. Thus,
construction industry p rovision s appeared to
be d irected m ore towards maintaining con ­
tract standards than retaining jo b s :
No journeyman shall be permitted to subcontract or lump the
installation o f any work under the jurisdiction o f the local
union. Both parties violating this section shall be penalized
by their respective organizations . . .
(76)
*

*

*

* * *

Contract work performed on the company's manufacturing
premises at its Rumford plant . . . will be done only while
the company is providing a 48-hour workweek for an equiv­
alent number of its own employees corresponding to those the
contractor is using. Where governmental or insurance regu­
lations require on such work the use of men with special
qualifications or licenses not possessed by Oxford employees
than the foregoing obligations to work corresponding employ­
ees on a 48-hour basis will not apply. (72)
* * *
With respect to skilled trades within the plant, it is under­
stood that if a contractors' employees work overtime, then,
at least an equivalent number of available plant employees
of the same skill will be permitted to work overtime on the
same day, except when special circumstances exist, such as:
1. Industry practice as regards to brick masons provides
that overtime must be worked.
Example: Silicate furnace tank repair—contractor per­
sonnel cannot be obtained unless they work 10 hours a day.
2.

Where the job must be worked on a continuous basis.

Example: Where welding and annealing pipe lines is
involved and must be continued until job completion. (73)

P r o t e c t i n g Individual W o r k e r s .
The
p resen ce of su b co n tra ctor’ s em p loyees w ork ­
ing in the plant can create resentm en ts which
eventually could re su lt in trouble between the
in -p lan t and the su bco n tra ctor’ s w o r k e r s. To




No work covered by this agreement shall be performed at
piece rates and no work shall be let by piece, contract or
lump sum for labor services only. The only method of pay­
ment shall be on an hourly basis in accordance with the pro­
visions o f this agreement. (77)
* * *
No work will be let by piece, contract or lump sum direct
with journeymen or apprentices for labor services on carpenter
work. The prime contractor agrees that he will not award
a subcontract pertaining to carpenter work to be performed
on any construction site unless it provides for the furnishing
o f power equipment and carpenters necessary to do the work.
The union agrees that no carpenter shall be allowed to do
piece work or contract for labor services only. (78)

S evera l contracts prevented m anagem ent
from converting w ork ers into individual sub­
contractors by banning their buying m achines
or equipment as a condition of em ploym ent:
The employer shall not require, as a condition o f continued
employment, that an employee purchase a truck, tractor,
and/or tractor and trailer, or other vehicular equipment. (79)

P rotecting C ontract and Union Standards
The p revalen ce of re stric tio n s designed
to p rotect contract and union standards was
n ea rly as high as lim itations for protecting

17
in-plant job opportunities (table 4).
There
were 471 agreements covering 2.6 million
workers protecting contract and union stand­
ards.
Manufacturing covered fewer provi­
sions and w o r k e r s than nonmanufacturing
agreements, reflecting the influence of con­
struction industry agreements. This industry
accounted for 40 percent of all clauses pro­
tecting contract standards (191) and repre­
sented about 30 percent of the workers cov­
ered by such clauses (780, 000).
Four industries accounted for over 30
provisions controlling contract standards, and
each covered over 300, 000 workers.
The
4 were responsible for two-thirds of the 471
provisions protecting standards and threefourths of the 2.6 million workers covered:
Having provisions

T o t a l-----------

Agreements
-

Industry

Apparel - - - - - - - - - - - Primary metals — —
Transportation--------Construction191

319
48
31
49

Workers
(in-thousands)
1,981.2
381.0
380.1
440.2
780.0

Provisions concerned with the production
process or a major activity were more likely
to protect contract standards than agreements
bearing upon construction, maintenance, in­
stallation, and repair work.
Three of the
four industries having the largest proportion
of contract protection provisions (apparel,
construction, and transportation) in particular
influenced this conclusion. In the first two,
subcontracting was part of the normal mode of
operations, and in the third (transportation),
leasing operations normally occurred during
peak capacity.
As a rule, the same unions
organize both in-plant and subcontractors*
workers. Thus, in all three, the concern is
not to preserve opportunities— in this respect,
their provisions are permissive— but to pro­
tect wages and terms of employment of reg­
ular in-plant workers from being undercut
when excess production work or major activ­
ity is let.
Compliance Provisions. One hundred and
eighty-one provisions required the subcon­
tractor to comply with the prime employees
labor contract (table 6). These represented
slightly under one-fourth of all 755 agree­
ments and applied to 20 percent of the 4 .2
million workers under contracts which had
subcontracting controls. Compliance clauses
were overwhelmingly a construction industry
phenomenon.
Almost three-fourths of these
provisions (131 out of 181) involved building
trades unions and contractors.



Another 190 agreements contained gen­
eral compliance clauses— i.e., provisions re­
quiring the subcontractor to observe union
rates or prevailing standards of the contract
rather than the specific norms established
in the prime employees agreement, or re­
quiring prime employer or subcontractor not
to evade the agreement.
These provisions
were clustered in three industries: Trans­
portation (48), primary metals (31), and con­
struction (31). Together these accounted for
over 57 percent of the general compliance
agreements and more than 72 percent of the
workers affected by thepn.
In 23 provisions, the subcontractor could
be required to adopt the terms and conditions
of the prime employer* s collective bargaining
agreement under certain circumstances, but in
other situations he could be required to adopt
only general observance of prevailing rates.
When these 23 provisions were taken into ac­
count, there were a total of 348 compliance
provisions, or just under 50 percent of the
755 c o n t r o l l i n g employer subcontracting
activities.
Provisions requiring the subcontractor to
apply the prime employer*s agreement to his
employees w e r e the most numerous of all
contract compliance provisions, accounting
for 115 of the 181 provisions.
In requiring
this observance, they used diverse language.
For example, the contractor had to comply or
be bound by the agreement; or the terms of
the prime contract had to be equally effective
for workers of subcontractors:
It shall be the duty of all contractors subletting bricklaying
or masonry contracts to ascertain that the subcontractor is re­
liable, financially responsible, and will comply with the pro­
visions of this agreement. (80)
*

*

*

If a contractor, bound by this agreement, contracts or sub­
contracts, any work covered by this agreement to be done at
the job-site of the construction, alteration or repair of a
building, structure or other work to any person or proprietor
who is not signatory to this agreement, the contractor shall
require such subcontractor to be bound to all the legally en­
forceable provisions of the agreement. . . . (80)
* * *

No member of the association shall send any work, including
shoulder straps, to be done by, or obtain work horn, any
contractor or submanufacturer unless such contractor or sub­
manufacturer is under contract with the union and maintains
the conditions of labor specified in the contract . . .
(82)
* * *

It is agreed that all provisions of this agreement shall be
equally effective under any subcontract covering work done
in the hotels within the classifications of work herein set
forth. (83)

18
These guarantees w ere autom atic and did not
ca ll fo r separate negotiations between the
union and the su bcon tractor. Thus, the prim e
con tra ctor b ecom es resp on sib le fo r the en­
forcem en t o f con tract standards.
Other p rov ision s added extra insurance
by requiring that the su b con tra ctor's p rom ise
In a rare
to c o m p l y m ust be in w riting.
ca se , the su bcon tractor m ight have to sign
the prim e e m p lo y e r's agreem ent or a short
form agreeing to com ply with the contract:
The employer shall require the contractor to become a party
to this agreement and to file a subassent hereto with the
union through (the association), and the contractor shall agree
to be bound by all the terms and provisions thereof in the
same manner and to the same extent as members o f (the asso­
ciation) . . . (84)

The m ost frequent written com plian ce
p rov ision stipulated that the con tract between
the prim e em ployer and the su bcon tractor
(i.e . , the agreem ent establishing the business
term s of the subcontract) had to guarantee
com plian ce with the wages and conditions of
the prim e e m p lo y e r's co lle ctiv e bargaining
agreem ent.
S ixty-fou r p rovision s included
this requirem ent:
The employer agrees to specify in all contracts and sub­
contracts that all subcontractors performing work on the job
site within the councils jurisdiction must comply with the
terms and provisions o f this agreement, including the union
membership provision, or be a party to an agreement with the
council for such work. (85)
* * *

That if a contractor shall subcontract job-site construction
work covered by this agreement, said subcontract shall contain
the provisions:
That the wages, benefits, hours, and other conditions
(of this contract) shall be paid and observed on all such sub­
contract work by the subcontractor . . . (86)
* * *
If the contractor or subcontractor shall subcontract job-site
work covered under the jurisdiction o f the union, including
the furnishing and installation o f materials, performance o f
labor, or the operation o f equipment, provisions shall be made
in writing for the observance and compliance by the subcon­
tractors with the full terms of this agreement. (87)

The 190 gen era l com plian ce provision s
took se v e ra l distin ct fo r m s .
F o r instance,
som e stipulated that subcontracted w ork would
have to be p erform ed under union conditions:
In the event new construction is contracted out, such work
shall be performed under the applicable building trades wages
and conditions. (88)




* * *

In all new construction work where outside contractors may
be employed it will be the established policy o f the company
to have such work done under union conditions if possible. (89)

Others did not s p e cifica lly require com pliance
with the p r i m e em p lo y e r's contract, b u t
n ev erth eless achieved this goal by awarding
the subcontract dependent upon the subcon­
tr a c to r 's w ork ers receivin g the same c o m ­
pensation and other conditions of employm ent
enjoyed by in-plant w ork ers:
The contractors agree that whenever any work covered by this
agreement is subcontracted, it shall be subcontracted only to
a subcontractor whose employees enjoy wages, hours, and
other conditions o f employment equal to those contained in
this agreement. (90)
* * *
The company shall require subcontractors to pay all persons
employed on or in connection with said work at least the
basic rate o f pay prevailing at the shipyard for the same or
comparable class o f work. In a d d i t i o n the subcontractor
shall pay the appropriate overtime premium, the recognized
paid holidays and the vacation schedule prevailing in the
shipyard. (91)

C om pliance p r o v i s i o n s , appearing in 94
a g r e e m e n t s , banned subcontracting which
would evade con tract obligations:
Maintenance and repair work performed within the plant, other
than that described in paragraph one, and installation, re­
placement and reconstruction o f equipment and productive
facilities, other than that described in paragraph three, m a y
not be contracted out . . . unless contracting out . . . as
o f the time o f decision to contract out . • • can be demon­
strated by the company to have been the more reasonable
course . . . Whether the decision was made at the particular
time to avoid the obligations o f this paragraph may be a
relevant factor for consideration. (92)
*

*

*

It is further agreed that the intent o f this clause and this
entire agreement is to assure the payment o f the union scale
o f wages as provided in this agreement and to prohibit the
making and carrying out o f any plan, scheme or device to
circumvent or defeat the payment o f wage scale provided in
this agreement. . . .
It is further agreed that the employer or certificated or per­
mitted carrier will not devise or put into o p e r a t i o n a n y
scheme, whether herein enumerated or not, to defeat the
terms o f the agreement, wherein the provisions as to com­
pensation for the services on and for use o f equipment owned
by owner-driver shall be lessened, nor shall any owner-driver
lease be canceled for the purpose o f depriving union employ­
ees o f employment, and any such complaint that should arise
pertaining to such cancellation o f lease or violation under
this section shall be subject to the grievance procedure o f
the agreement. (93)

One variation of the contract evasion r e s t r ic ­
tion b a rred subcontracting if it deprived em ­
ployees of w ork. These d iffered fro m those
clau ses d iscu ssed e a rlie r where w ork could
not be con tracted out if la yoff or part-tim ing

19
would resu lt.
The con tract evasion p r o v i­
sions cited h ere involve lo ss of w ork as a
d e l i b e r a t e purpose of subcontracting and
barred such actions:
The employer agrees not to subcontract work normally per­
formed by the employees under this agreement . . . in order
to deprive employees o f work. (94)
*

*

*

The company subscribes to the principle o f telephone work
for telephone employees and will not contract out work pres­
ently and regularly done by employees for the sole purpose
o f decreasing the available work for employees in the bar­
gaining unit. . . . (95)

A second variation prohibited subcontracting
which discrim in ated against the union or em ­
ploy ees:
The company agrees not to transfer any o f its work to any
other concern for the purpose o f discrimination against the
union. (96)
*

*

* * *
. . . The company agrees it shall manufacture garments
only in such outside factories as are under contract with, and
employ numbers of the Amalgamated Clothing Workers of
America. (99)
*

*

*

Each individual employer agrees that he will not contract to
have performed any work at the site o f construction altera­
tion, roofing, or repair of a building, structure or other work
with anyone not signatory to a collective bargaining agreement
with (1) a national or international union now or previously
affiliated with the building and construction trades depart­
ment, AFL-CIO, or (2) a labor organization whose national
or international union was or is now affiliated with the build­
ing and construction trades department AFL-CIO or its pred­
ecessor, or (3) a State or local building and construction trades
council. (100)

*

. . . it is understood that the company will not exercise these
rights (to subcontract) for the purpose o f discriminating against
the union, or an employee, or a group o f employees. (97)

Union C on tractor R equ irem en ts. One
hundred and sixty-eigh t p rov ision s stipulated
that the prim e em ployer had to ch oose a union
subcon tractor (table 6).
O ver tw o-thirds of
these had been negotiated in the apparel and
constru ction in du stries, both of w h i c h had
been sp e cifica lly exem pted, as noted e a r lie r,
from section 8(e), the hot ca rg o provision
of the L abor Management Relations A ct of
1947, as amended.
The fir s t illu stration requ ired the sub­
con tra ctor to have an agreem ent with the
same union, but not n e c e ssa rily the same
agreem en t, as the prim e em ployer*s.
The
second clau se n ecessita ted the su bcon trac­
to r 's having a con tract with a lo ca l in the
same international union. In the third illu s ­
tration, the s u b c o n t r a c t o r could have an
agreem ent with any of the building trades
unions. The expulsion of the T eam sters from
the A F L -C IO has not obviated the need for
constru ction unions to w ork harm oniously with
this labor organization.
Consequently, this
third p r o v i s i o n perm itted relations with
unions now or prev iou sly affiliated with the
A F L -C IO 's Building and C onstruction T rades
Department or related interm ediate bodies:
The employer agrees that when subletting or contracting out
work covered by this agreement which is to be performed
within the geographical coverage of this agreement and at
the site of construction, alteration, painting, or repair of a




building, structure or other work, he will sublet or contract
out such work only to an employer who has signed or is covered
by a written labor agreement with the union (which agreement
shall be in substance identical with this agreement) and who
employs or agrees to employ two (2) or more journeymen dur­
ing at least thirty-nine (39) weeks of the year. (98)

The u n i o n subcontractor requisite was
not a rigid rule.
T y p ically , flexibility was
injected by setting conditions under which the
union stipulation might be w a i v e d .
Thus,
apparel and construction unions w ere able to
con trol the use of nonunion con tra ctors to the
advantage o f union em p loy ers. F or exam ple,
a nonunion con tractor could be hired only if
the union and em ployer reached agreem ent:
A manufacturer who employs contractors shall employ only
c o n t r a c t o r s who are in contractual relationship with the
New York Joint Board of the Amalgamated Clothing Work­
ers of America and shall not cause or permit any work to
be performed for him, directly or indirectly, by any person,
partnership, c o r p o r a t i o n or contractor who is not in con tructual relationship with the New York Joint Board except
by mutual agreement of the Exchange and the New York
Joint Board. (101)

A prim e em ployer could hire a nonunion subc o n t r a c t o r if no unionized subcontractors
w ere available. The second illustration below
also required that the union be given the name
and location of the nonunion subcontractor—
obviously with the intent to organize his w ork ­
e rs . The fir s t illustration required the non­
union subcontractor to sign a union contract
following a trial period:
The employer may use the services of nonunion contractors
only under the following circumstances, but only if it has
first given the union written notice thereof, and in no event
shall such contractor be one whom the union is picketing or
otherwise engaging in a labor dispute.
1. The employer contemplates the manufacture of a new
garment or style for which production facilities in the existing
factories are inadequate} or

20

2. Production facilities of the p e r m a n e n t contractors
are inadequate to take care of an increased volume of pro­
duction; or
3. A permanent contractor refuses to accept a garment
or style at the piece rate established for that or similar work
in the Bay Area industry by collective agreement.
The period of trial for any such nonunion contractor shall be
agreed upon in writing between the employer and the union.
After such trial period, the contractor shall become a signatory
to the union agreement. Failure to sign the agreement by the
contractor shall make it mandatory upon the employer to
cease dealing with such nonunion contractor. (102)
* * *
No work shall be caused to be performed by an employer in
a shop not under contract with the union, unless the union
upon written notice from the employer, fails within seven days
thereafter to notify the employer in writing of a shop under
contract with the union which can reasonably perform the work
and which is willing to take the work. If work is sent to a
nonunion shop, the employer, at the request of the union,
shall furnish the union with the name and address of such
nonunion shop. (103)

The union su bcontractor rule a lso might be
waived for certain kinds of operations not
n orm ally p erform ed by the prim e em ployer.
Thus, building trades, landscaping and tru ck ­
ing operation s, and sp ecia l equipment in sta ll­
ers w ere excluded fro m the nonunion bar:
. . . However, the employer agrees he will not subcontract
on-site construction work except to subcontractors having co l­
lective bargaining agreements with unions affiliated with the
local building trades council and shall so advise prospective
subbidders. The a b o v e shall not apply to installation by
technically trained factory representatives, and other such
special situations. (104)

In these situations, one type of clause
called for the em ployer and the union to co n ­
fer and coop erate should the work of in-plant
em ployees be tran sferred .
M ore prevalent,
how ever, w ere construction industry p r o v i­
sions which required the prim e em ployer, in
his agreem ent with the subcontractor, to in ­
clude a clause binding the latter to the ju r i s ­
dictional settlem ent m achinery in the industry:
In recognition of the rights of the employees covered hereby
to perform available work of the character covered by this
agreement for the company, the company agrees to confer and
cooperate with the union on any matter involving the efforts
of other labor organizations to take such work away from em­
ployees of the company. (107)
* * *

The employer agrees that it is in the best interests of j o b
progress and efficiency to, insofar as possible, develop and
encourage a uniform labor policy on any particular job. In
order to promote, insofar as possible, the principles set forth
above, the employer agrees to insert in his subcontract docu­
ments, a provision which would require the subcontractor and
his subcontractors to be bound by the terms and provisions of
the agreement creating the National Joint Board for the Settle­
ment of Jurisdictional Disputes. In addition, the employer
agrees, through the association's respective committees, to
encourage the architects to include in their specifications a
requirement that all contractors on the job, whether general,
prime, sub, or sub-sub shall be bound by the terms and pro­
visions of the agreement of the National Joint Board.
Nothing in this article shall be construed to limited or restrict,
in any way, the employer's right to determine which portion
of the work, if any, he may perform with his own employees
or may subcontract to others. (108)

* * *
The employer agrees that all subcontractors performing work
covered by this a g r e e m e n t must be union subcontractors.
Except that the above shall not apply to landscapers, vendors
furnishing material solely or to any persons furnishing trucking
or transportation. (105)

One interesting prov ision was designed to
prevent abuse of the union subcontractor r e q ­
u isite to con trol the supply of em ployers in
the industry:
The employer agrees that no firm, person, or corporation shall
be engaged as a subcontractor to perform any of the work
covered by this collective bargaining agreement unless such
firm, person, or corporation is in contractual agreement with
a local union of the (international union). This section shall
not be used to prevent an employer from entering the segment
of the building industry covered by this agreement. (106)

The em ploym ent of union labor by the
subcontractor was s p e cifica lly re fe rre d to in
56 agreem ents— again overw helm ingly in the
construction i n d u s t r y .
In 44 agreem ents,
union labor was a requ isite.
Such provision s
might stipulate that workm en hired by the
subcontractor had to be furnished through the
union hiring hall. In the second illustration,
unions extended their ju risd iction to the tra n s­
portation of m aterials to the site, whether by
the prim ary em ployer or his subcontractor:
. . . in the event it subcontracts any work coming under the
provisions of this contract . . . it shall subcontract the same
only to another employer either a party to this contract or
who adopts the same by employing employees through the
hiring hall established under this contract . . .
(109)
* * *

T hirty-nine agreem ents dealt with p o s ­
sible ju risd iction a l disputes between c o n tra c­
tor and su bcon tractor em ployees. T h irty-one
of these w ere in the con stru ction industry
w h e r e ju risd iction a l problem s are of long
standing.




So far as it is within the control of the employer or his sub­
contractor all materials, supplies, and equipment used on the
job shall be transported to or from the site of the work by
workmen furnished by the appropriate craft union signatory
hereto. Nothing herein contained shall be construed to pro­
hibit the normal delivery of freight by railroad. (110)

21
In 12 p ro v isio n s, sp e cific language reliev ed
the su bcon tractor of an o b l i g a t i o n to h ire
union la b or. H ow ever, the su bcon tractor had
to com ply with the prim e e m p lo y e r’ s a g r e e ­
ment or with sim ila r standards:
The contractors agree that whenever any work covered by this
agreement is subcontracted it shall be subcontracted only to
subcontractors whose employees enjoy wages, hours, and other
conditions of employment equal to those contained in this
agreement. . . . The union agrees that the scope of this
article is expressly restricted to the aforesaid subjects, and
shall not be construed to include union recognition, union
security, or hiring clauses, or any other provisions related
thereto. ( I l l )

Unfair G oods a n d S trik es.
F o r ty -fiv e
agreem ents re stricte d the handling o f unfair
goods. A ll but three provision s w ere either
in the apparel (28) or con stru ction (14) in­
dustry, both o f which are exem pted lega lly
from the hot ca rg o prohibition (section 8(e)
of the LM RA).
Tfao k i n d s of goods w ere
designated as unfair in these p rov ision s:
(1)
Those p ro c e ss e d by nonunion su b con tra ctors,
and (2) those p ro ce ss e d by em ployers whose
w ork ers w ere on strik e. 14 T hese types of
p rov ision s in the apparel industry b a rred the
p r i m e em ployer fro m doing business with
nonunion su b con tra ctors. C onstruction indus­
try cla u se s, on the other hand, w ere le ss
clea r when requesting con tra ctors and sub­
con tra cto rs to refra in fro m using m aterials
or equipment which might cause d isco rd and
disturbance. Such p rovision s could apply in
a variety of situations and disputes:
No member of the association shall . . . obtain work from
any contractor or submanufacturer unless such contractor or
submanufacturer is under contract with the union and maintains
the conditions of labor specified in this contract, and unless
the name of said contractor is included in the list of union
shops furnished by the union. (112)
* * *
That the contractors and their subcontractors shall have free­
dom of choice in the purchase o f materials, supplies, and
equipment save and except that every reasonable effort shall
be made by the contractors and their subcontractors to re­
frain from the use of materials, supplies, or equipment which
use will tend to cause any discord or d i s t u r b a n c e on the
project. (113)

P ro v isio n s a g a i n s t struck goods w ere
c lo s e ly a llied with cla u ses which re stricte d
subcontracting with em p loy ers whose w ork ers
w ere on strik e. Such p rov ision s gen erally a b ­
solved w ork ers fro m any d isciplin e stem ­
ming fro m a refu sal to handle hot goods. As
the fir s t illustration show s, prim e em ployers
also could be r e stricte d in handling struck
goods:



The members of the association shall not, directly or indi­
rectly, handle or obtain any goods or merchandise or parts
and/or components thereof, whether finished or partly finished,
of the type usually made by workers employed under union
agreement from . . . any contractor, jobber, or manufacturer
against whom a strike declared by the (union) or any of its
affiliates is pending, and the members of the' association
shall in no event request any of their respective employees
to perform work destined directly or indirectly for any such
concern. Such work shall not be deemed in the workers'
regular course of employment and the workers need not per­
form such work. (114)
* * *
. . .
in no event shall (the employers) request any o f its
employees to perform work destined, directly or indirectly,
for such concern (against which a strike or labor dispute exists).
Such work shall not be deemed in the workers' regular course
of employment. (115)

Seventy-one provision s stipulated t h a t
s i g n a t o r y em ployers would not deal with
struck em p loy ers, either as a subcontractor
or prim e em ployer. F ailure to handle such
work was not to be con sid ered a con tract
violation:
No member of the
perform work for
ucts from or sell
there is a pending
its locals. (116)

association shall, directly or indirectly,
or have work performed by, obtain prod­
products to, any concern against which
strike declared by the ILGWU or any of
* * *

If work on a project is declared to be unfair by a (union) and
the work thereon is stopped for that reason, the union shall
not be deemed to have violated this agreement if, during
the period of said work stoppage, the members of the union
fail to perform their work for the contractors or the subcon­
tractors. (117)*
* * *
If a contractor is performing work on a job, it shall not be
a violation of this agreement or cause for discharge or dis­
ciplinary action in the event that the (union) or any of its
affiliated unions places a lawful primary picket line on such
job and any employee refuses to go through or work behind
any such lawful picket line. Nor shall the contractors be
deemed to have violated this agreement if they cease opera­
tions during the period if a stoppage of work by unions other
than those who are parties hereto. (118)

R e g i s t r a t i o n P r o v is io n s . Sixty - f ou r
agreem ents made reg istra tion o f the subcon­
tra ctor a requisite fo r letting out the contract
and gave the unions con siderable con trol over I

I4 A third category of unfair goods would be prefabricated
items which conflicted with the work preservation goals of in-plant
unions. No attempt was made to tabulate these prefabrication
provisions as such since they were more pertinent for study of
secondary boycotts than of subcontracting. However, the discord
and disturbance clauses in the construction industry are broad
enough to include prefabrication prohibitions.

22
such arrangem ents. Each agreem ent allow ed
the union to investigate the su bcon tractor,
his w ages, and working conditions when he
operated under a separate con tract. R e g is ­
tration p rov ision s w ere e sp ecia lly co n ce n ­
trated in the apparel industry (34) and to a
le s s e r degree in construction (14). The rest
w ere scattered among eight other in du stries,
som e of which, like textile and toy m anufac­
turing, had operating p roced u res somewhat
sim ila r to apparel:
No member of the association shall have work performed
outside its own shop . . . unless such outside shop . . . is
registered by the members of the association with the union
herein . . . (119)

In som e, registration was requ ired at
the same time that the business relationship
was established or within a short tim e th e re­
after.
In the secon d illu stration , the union,
in turn, was to furnish a current list of o r ­
ganized con tra ctors to the em ployer a s s o c ia ­
tion. In oth ers, registration had to be c o m ­
pleted b e fo re the su bcon tractor re ce iv e d any
work. In the illu stration s below , the subcon­
tra cto rs fir s t had to be reg iste re d with a
lab or-m anagem ent com m ittee:
The individual employer will give written notice to the union
of any subcontract involving the performance of work covered
by this agreement within 5 days of entering such subcon­
tract, and shall specify the name and address of the sub­
contractor. (120)
* * *
The employers are to register with the union the names of
all the shops they buy goods from immediately upon entering
into business relations with them, and in no event later than
1 week after business relations have been entered into. . . .
The union shall furnish the council with a list of all shops in
contractual relations with the union, which is to be kept upto-date weekly . . . (121)
* * *

. . . Painting contractors will be permitted to sublet contracts
and in such cases shall mail to the county joint committee,
prior to the start of such sublet contract work, the list of the
subcontractors’ names and address . . . (122)

A sm all num ber of agreem ents attempted
to maintain stability in the industry by co n ­
trollin g further contracting out by subcon­
tra cto rs.
Such activity was either
banned
outright or was subject to the p e rm issio n o f
the prim e em p loy er, as in the second illu stra ­
tion. Thus, resp on sib ility for the su bcon trac­
to r 's actions rested on the prim e em ployer:
No employee shall lump or work piece work for any employer.
All T. and G. Flooring shall be laid by employees on the job
unless this work has been sublet for labor and material to an
employer who accepts this agreement. Upon request the union
shall be furnished with the names and addresses of all sub­
contractors on the job doing work which is covered by this




agreement. The subcontractors must be such employers who
have agreed to this agreement. The subcontractor shall not
sublet any part of the subcontract.
No employee shall while working for an employer, rent or
furnish either bench clamps, handscrews, mechanical mitre
boxes, power tools, trucks, or lock mortising machines. (123)
* * *
The contractor shall not permit subcontracting by subcontrac­
tors without his knowledge and permission in writing. (124)

P rotecting the Subcon tractor's E m ploy­
e e s . Even though c o m p l i a n c e provision s
assu re negotiated wages and working con d i­
tions to em ployees of su bcon tractors, a num ­
ber of agreem ents (82) provided that actual
payments to em ployees a n d /o r trust funds
w ere the ultim ate resp on sib ility of the prim e
con tra ctor.
This guarantee against delin ­
quency by the subcontractor took s e v e r a l
fo rm s.
T ypically, the prim e em ployer was
required to negotiate and en force a contract
com pliance clause with the su bcon tractor, or,
alternatively, he had to be resp on sible for
payments to su b con tra ctors' w ork ers or make
the payments h im self.
In the second illu s ­
tration, the prim e em p loy er, in e ffect, guar­
anteed payments by accepting resp on sibility
fo r violations by the subcontractor:
In the event employer subcontracts out any work that would
otherwise be subject to this agreement, employer shall have
the option either (1) to obtain from the subcontractor an agree­
ment to comply with the minimum compensation provisions in
this agreement and cause such subcontractor to comply with
such provisions, or (2) in the alternative, employer shall make
such payments. (125)
* * *

Employers shall be held liable for all violations of this agree­
ment, including violations committed by subcontractors. (126)

S everal apparel industry agreem ents in­
cluded stipulations that the con tract had to
provide sufficient com pensation to enable the
subcontractor to m eet labor and operating
costs:
It is recognized that the employer is a substantial ultimate
source of employment for and of wages and other benefits
paid to or for employees of contracting shops to which the
e m p l o y e r supplies work, and that the employer is con­
cerned with the payment of wages and other benefits to or
for employees in contracting shops. The employer agrees
therefore that, if and when it contracts out work, it shall,
in order to prevent undermining of union wage scales and their
standards of benefits, pay to each of the contracting shops
for work performed for the employer an amount sufficient to
enable each of said contracting shops, after retaining a rea­
sonable amount for overhead for producing the employer's
work, to pay to its employees the wages and benefits provided
for in the agreement now, or hereafter in force between the
contracting shop and the union during the term of this co l­
lective bargaining agreement. (127)

23
F or delinquency, som e con stru ction in ­
dustry con tracts requ ired prim e em ployers to
(1) exert p re ssu re on su b con tra ctors, to (2)
withhold payments to the subcontractor until
w ork ers w ere paid, (3) use withheld payments
to pay w o rk e rs, (4) requ ire ce rtifica tio n of
payments by the su bcon tractor, or (5) post a
bond to co v e r at least trust fund paym ents.
The second illu stration a lso placed a time
lim it upon the prim e e m p lo y e r's lia b ility, a
provision
frequently included, and waived
liability when the union continued to r e fe r
w ork ers to delinquent su bcon tractors:

If such notice is given, the individual employer shall pay
and satisfy the amount o f any such delinquency by such sub­
contractor occurring within 60 days prior to the receipt o f
said notice from the union, and said individual employer
may withhold the amount claimed to be delinquent out of
the sums due and owing by the individual employer to such
subcontractor.

In the event any subcontractor or an individual employer fails
to comply with the terms or conditions of this agreement . . .
upon notice from the union the individual employer shall
immediately demand that the subcontractor remedy any such
noncompliance and comply fully with the terms and conditions
o f this agreement. In the event any such subcontractor fails
to respond to such demand o f the individual employer and
fails to comply, . . . the individual employer shall withhold
payment o f the next payable amount due to the subcontractor
until such sections have been complied with in full by such
subcontractor} provided, however, that if the payment next
due to the subcontractor is the last or terminal payment under
the subcontract then the individual employer shall require a
certification from the subcontractor, as a condition of making
such last or terminal payment that the subcontractor has com ­
plied in full and has made all payments in full.

In one agreem ent, the p rim e em ployer
could enlist the assistan ce of the union to
determ ine c o n t r a c t com pliance by subcon­
tra ctors:

The individual employer shall require all subcontractors per­
forming work covered by this agreement, prior to the com­
mencement o f work under the subcontract, to post a surety
bond, or cash bond in lieu thereof, in the amount o f ten
thousand dollars ($10,000.00) to cover payment o f contribu­
tions to the trust funds specified in this agreement. A copy
o f said bond shall be posted with the trust funds. Each of
such trust funds shall certify that such bond has been so posted
and the subcontractor will deliver such certification to the
individual employer. Failure o f the individual employer to
enforce the provisions o f this subsection shall make said indi­
vidual employer liable for payment to the appropriate trust fund
or trust funds with respect to all contributions and payments
specified herein for all work performed by the subcontractor
on the job or jobs o f the individual employer. The provisions
o f this subsection requiring the posting o f a bond shall become
effective on or before October 13, 1965. (128)
* * *

An individual employer who provides in the subcontract that
.the subcontractor will pay the wages and benefits and will
observe the hours and all other terms and conditions o f this
agreement, shall not be liable for any delinquency by such
subcontractor in the payment of any wages or fringe benefits
provided herein . . . except as follows:

The individual employer will give written notice to the union
o f any subcontract involving the performance of work covered
by this agreement within 5 days o f entering such subcontract,
and shall specify the name and address o f the subcontractor.

If thereafter such subcontractor shall become delinquent in the
payment o f any wages or benefits as above specified, the
union shall promptly give written notice thereof to the indi­
vidual employer and to the subcontractor specifying the nature
and amount o f such delinquency.




The individual employer shall not be liable for any such de­
linquency if the local union where the delinquency occurs
refers any employee to such subcontractor after giving such
notice and during the continuance o f such delinquency.
The individual employer shall not be liable for any such de­
linquency occurring more than 60 days prior to receipt o f
written notice from the union. (129)

The employer agrees that all subcontractors shall comply with
and be governed by this agreement. Failure to do so shall
constitute a violation of this agreement and the employer shall
be responsible therefore. The employer may request the local
union to check and verify if their subcontractor on his job-site
has complied with all wages and fringe benefits. The union
shall reply to such a request of the employer within a reason­
able time thereafter. This paragraph shall not apply to ven­
dors furnishing materials solely, or to any person furnishing
trucking or transporation. (130)

In the apparel industry, alm ost all of the
agreem ents included a provision which p r o ­
tected the subcontractor from abuse by the
prim e em p loy er. By protecting subcontrac­
to rs , the union stabilized the industry and
thereby in directly p r o t e c t e d the w ork ers.
These sophisticated and extensive clauses r e ­
quired prim e em ployers to distribute work
equitably among its permanent or designated
subcontractors and governed the a d d i t i o n ,
diminution, or substitution of subcon tractors.
Some a lso set conditions for the use of tem ­
p orary su bcon tractors, and others regulated
tria l or probationary periods fo r newly d e s ­
ignated su bcon tractors. The follow ing p ro v i­
sions illustrate som e, but not a ll, of these
regulatory devices:
The employer shall distribute its work among its factories and
the factories of its permanent contractors on as equitable a basis
as is practically possible. . . . The services o f a permanent
contractor shall not be terminated by the employer except upon
4 weeks' notice and only for just cause. (102)
* * *

In order to protect employment opportunities • . • and to
insure that there shall be no discrimination in the distribution
o f work against employees working in shops o f contractors
designated . . . by a member o f the association, it is agreed
that . . . a member of the association whose garments are
manufactured in shops o f his contractors . . . shall not open
an inside shop on his own premises or elsewhere, nor shall he
enlarge his inside shop, wherever situated, if at the date o f
the execution o f the agreement he maintained one, by employ­
ing a larger number o f machine operators, unless with the
consent and approval of the administrative board. (131)
* * *

24
All contractors (and the workers thereof) who were designated
by a member o f the association as o f May 31, 1967, shall
continue to be the designated contractors o f such member
during the term o f this agreement provided they and each of
them continue to maintain union shops.

The determination o f whether a member o f the association
requires additional contractors and the number o f contractors
which shall be designated by a firm which becomes a mem­
ber o f the association after the effective date of this agree­
ment, shall be made on the following basis: (1) The annual
volume o f such firm’s production} (2) the capacity o f the
designated contractors to produce. If such firm has not there­
tofore been in business, it shall designate the member o f con­
tractors, if any, which it actually requires.

. . .
He shall distribute his work equitably among his con­
tractors with due regard to their ability to p r o d u c e and
perform.

If the member making such designation shall, at any time,
change the character o f his product and the contractors desig­
nated by him or any o f them and the workers thereof shall
be incapable o f meeting his changed requirements he shall
have the right to substitute and/or add such other contrac­
tors in place of those incapable of meeting his changed re­
quirements. . . . (132)

In a few co lle c tiv e bargaining situations, how­
e v e r, a prov ision has been in serted absolving
the prim e em ployer of any resp on sibility:
It is recognized that if the terms of employer’s lease, con­
tract or other agreement obligates the lessee or other party,
as the case may be, to pay the wages and observe the other
terms and conditions o f this agreement, then the union agrees
that the sole and entire financial responsibility for meeting
the costs o f observance of this agreement shall be upon said
lessee or other party and not upon this employer and that he
shall be, and by these presents is, hereby released from any
and all financial liability in connection therewith. (133)
* * *

. . .
No individual employer who has complied with t hi s
requirement shall be liable to the union or any employee for
any default o f his subcontractor in the observance of the terms
and conditions of this agreement. (134)

Lim itations C oncerning C ost, P rod u ction .
and Other B usiness Conditions
Of the t h r e e m a jor areas into which
restrictio n s upon subcontracting have been
grouped, lim itations concerning co st, p rod u c­
tion, and other business conditions w ere the
least prevalent (table 4).
Under 40 percent
of the 755 agreem ents perm itting subcon­
tracting su bject to re strictio n s (294) pertained
to business conditions.
T hese, h o w e v e r ,
applied to over on e-h a lf of the w ork ers c o v ­
ered by such prov ision s— i. e. , to 2. 1 m illion
w ork e rs. A pparently, agreem ents involving
large em ployers accounted fo r this substantial
w ork er im pact.




P rov ision s of this nature appeared m o re
frequently in m anufacturing than in nonmanu­
facturing agreem en ts. Of the 294 p ro v isio n s,
205, coverin g 1. 6 m illion w ork ers, w ere in
manufacturing; o n l y 89, coverin g 560, 700
w ork ers, w ere in nonmanufacturing. N either
the apparel nor the construction industries
contained any significant number of p rovision s
about business conditions perm itting su bcon ­
tracting, since in both, subcontracting was a
regular m ode of operations.
A greem en ts con cern ed about construction,
m aintenance, and installation a ctivities w ere
m ore likely to include provision s dealing with
business conditions than con tracts about p r o ­
duction or m a jor a ctiv itie s. This con clu sion ,
too, was influenced by the absence of building
trades agreem ents.
Industries having concentrations of b u si­
ness conditions p rov ision s included prim ary
m etals (41), m achinery (27), transportation
equipment (37), transportation (41), and u til­
ities (24).
These five industries accounted
for 170 (57. 8 percent) of the 294 agreem ents
and 1. 8 m illion w ork ers (83. 5 percent) out of
2.1 m illion w ork ers co v e re d by them. T ra n s­
portation equipment, transportation, and p r i­
m ary m etals had a p articu larly strong im pact
on w orker cov era g e totals.
In a sen se, re striction s or lim itations
about business conditions are a m isn om er.
A greem ent p rov ision s falling into this c la s s i­
fication actually set conditions which p e r ­
m itted em ployers to contract out. A s table 7
show s, these fe ll into four ca te g o rie s , a ll of
which are d iscu ssed below .
Cost and E fficie n cy .
The 149 co st and
efficien cy requirem ents (table 7) appearing in
subcontracting p rov ision s w ere found largely
in m anufacturing industries (which accounted
alone for 124 prov ision s) and w ere con cen ­
trated esp ecia lly in p rim a ry m etals (37), m a ­
chinery (24), and transportation equipment
(20).
The p rov ision s w ere about evenly d i­
vided between those coverin g the production
p ro ce ss or a m ajor activity (112) and those
covering con stru ction , maintenance, and in ­
stallation (121).
The cla u ses used relatively inexact lan­
guage, which was la rg ely im p re cise and unde­
fined to anyone not fam iliar with the bargain ­
ing relationship. G enerally, a broad prin cip le
is established which m ust be applied on a
c a s e -b y -c a s e b a s is .
F or e x a m p l e , som e
p rov ision s allow ed subcontracting when it was
p ra ctica l and expeditious, econ om ica lly fe a s i­
b le, when the em ployer had strong econ om ic

25
and p ra ctica l rea son s, and when it was a d is ­
tinct econ om ic advantage, or when it was not
p ractica b le to use the in-plant w ork fo rce
because it could not p erfo rm the w ork e c o ­
n om ica lly or efficie n tly :
. . . Insofar as p r a c t i c a l , all work within the factory
grounds, including maintenance o f equipment at receiving
stations, except for emergency or minor repairs, shall be per­
formed by employees covered by this agreement. . . . (135)
*

sk *

It is the policy o f the company to use its own employees
as much as possible in the performance of construction and
maintenance work consistent with such consideration as effi­
ciency, economy, quality, governmental, customer, or time
requirements, and with regard for the interest of affected
employees . . . (44)

Others adopted even m ore general te r m i­
nology.
Thus, the com pan y's operating r e ­
quirem ents might requ ire decision s in light
of sound business p ra ctice , or contracting
out m ight be the' m ore reasonable co u rse :
The company recognizes the union's desire to retain work
normally performed and will continue its practice o f using
unit employees to perform this work. However, it is recog­
nized that the company's operating requirements may neces­
sitate the contracting out o f such work after a thorough review
o f its decision in the light o f sound business practice. Such
action will be reasonably and fairly applied . . . (136)

Whenever the journeymen skilled trades employees in any
given craft are scheduled for less than forty (40) hours per
week or are laid o ff and are available for immediate recall,
the company may not contract work normally done by such
journeymen except when the company has made the deter­
mination that: . . .

The company can obtain the work to be performed at a cost
at least fifteen (15%) percent less than the cost of doing the
work with its own employees using its established cost account­
ing procedures. If in order to meet a time limitation as set
forth . . . it would be necessary to schedule company em­
ployees overtime, the company shall be entitled to calculate
such overtime costs as part of the total cost in determining
whether or not there is sufficient cost differential to warrant
contracting the work, . . . (139)

Equipment, Skill, and M anpower. Over
th ree-fifth s o f the contracts concerning b u si­
ness conditions (180) provided that the e m ­
ployer could subcontract whenever he lacked
the sk ills, m anpow er, or equipment to do the
contem plated w ork inside the shop.
These
conditions w ere m ore lik ely to be found in
manufacturing agreem ents than in nonmanu­
facturing, e sp e cia lly in transportation equip­
ment (32) and m achinery (20). They also w ere
m ore lik ely to be found in agreem ents c o v ­
ering con stru ction , m aintenance, and in stalla­
tion activities than production p r o c e s s e s o r a
m a jor activity.

* * *

Maintenance and repair work performed within the plant other
then that described (above), and installation, replacement,
and reconstruction o f equipment and productive facilities,
other than that described (above), may not be contracted out
for performance within the plant unless contracting out under
circumstances existing as o f the time o f the decision to con­
tract out was made can be demonstrated by the company to
have been the more reasonable course than doing the work
with bargaining unit employees, taking into consideration the
significant factors which are relevant . . . (137)

P ro v isio n s also could focus on the co st
fa ctor.
Thus, the em ployer could su bcon­
tract if the c o st of in-plant w ork was high,
but contracting out would not be allow ed if
in-plant costs w ere reason ably com petitive
as in the follow ing illu stra tion :
Fabrication and machine shop work normally performed for a
plant by its mechanical departments will not be contracted
out if such departments are equipped and qualified to perform
such work at a reasonably competitive cost and within the
alloted time . . . (138)

In one con tract, the parties defined the co st
level that would allow the em ployer to sub­
contract as at least 15 p ercen t le ss than in plant c o s t s :



Few p rov ision s stated in positive term s
that the lack of m anpower o r equipment would
be a reason fo r letting out a contract, as in
the follow ing:
The employer agrees that he will hire equipment to supple­
ment his own equipment only when he does not have the num­
ber or type of equipment required for his purpose. (140)

M ore frequently, p rov ision s s t a t e d a
p olicy of not contracting out and then waived
the p o licy in the event o f a shortage of skills
o r m ach in ery:

It is the intent of the company to utilize its employees for
all work in the yard which it customarily performs; except,
however, the company may subcontract work if the require­
ments for men or materials make such subcontracting neces­
sary. The company may subcontract work on new facilities
for the yard. (141)
* * *
It is the policy of the (company) to perform, maintenance
work with its own employees,-provided it has the manpower,
skills, equipment, and facilities to do so. . . . (142)

26
A s in co st and efficien cy p ro v isio n s, the use
here of such term s as n e c e s s a r y , su fficien t,
or sp ecialized sk ills or equipment gave a
great deal of flex ib ility to the c la u se .
F or
e x a m p le :

stances in the plant w arranted. In 128 a g r e e ­
m e n ts, for ex am p le, the usual lim itations did
not apply if the em p loyer experien ced either
a peak period in operations or other e m e r ­
g e n c ie s:

The company states that it will be its policy and intention
to use the employees covered by this contract and will not
subcontract work customarily performed by such employees to
another firm . . . unless adequate existing equipment and/or
other facilities are not available to perform the work when
it is needed or unless the company does not have employees
covered by this contract in sufficient number and/or with
sufficient skill to perform such work . . . or xmless it is
deemed necessary to transfer or subcontract such work because
of other demands on such equipment and other facilities to do
other work which is to be performed. (143)

. . . Overflow loads may in any event be delivered by
drivers other than the employer's employees p r o v i d e d all
provisions of this contract are observed. Loads m a y also
be delivered by other agreed to m e t h o d s or as presently
agreed to. (148)

The c la u ses fa ll into two c la s s e s : F ir s t,
there w ere the p rovision s which waive su b­
contracting re stric tio n s in an e m e r g e n c y .
N o rm a lly , em e rg en cy was undefined:

* * *

During the life of this agreement, the company agrees that
it will not contract out work, other than work which is cus­
tomarily contracted out, except when the work force does not
have the skill, or ability to do the work, the necessary equip­
ment, or machines to perform the work . . . (144)

The employer represents that it will not change its present
and normal practice of using its normal sources of supply for
any lithographic production work. Any deviation from the
normal practices will not be considered to be in conflict with
the above provisions where such deviations are due to emer­
gencies . . . (149)

* * *

* * *

The company agrees that it will not subcontract maintenance
work (as distinguished from new construction or major modi­
fication or rehabilitation work) to be performed on company
premises . . . when the work operations involved have nor­
mally been performed by employees in the bargaining unit,
provided there are sufficient employees possessing the neces­
sary maintenance skills then available to perform such work
operations within the time required. (145)

. . . Insofar as p r a c t i c a l , all work within the factory
grounds, including maintenance of equipment at receiving
stations, except for emergency or minor repairs, shall be per­
formed by employees covered by this agreement. It is under­
stood, for example, that situations may arise wherein it is
necessary to employ t e m p o r a r i l y or to contract out work
where; . . . such work cannot be completed by employees
within required time limits. (135)
* * *

* * *
The situations which develop into problems in our relations
with employees involve subcontracting of maintenance and in
some cases certain tool and die work. In this area, there
is recognition by the union that among other things:
1. It is necessary to contract work which requires spe­
cialized tools or equipment and special skills . . .
It is our intent and desire to utilize our own skilled trades
employees to do the kind of work they have customarily done
in our plants in the past, to the extent that it is practicable
and economical to do so. We have neither the equipment
nor personnel to do all of the maintenance and tool and die
work in our plants • . . (146)
* * *
Where deemed advisable, contracts will be let to outside
contractors under certain conditions. Such outside assistance
will be engaged where peculiar skills are involved, where
specialized equipment not available at (the company) is re­
quired, or where for other reasons economics can be realized
because specialized contractors can better perform the work
in question . . . (147)

Production N e e d s. Subcontracting r e ­
striction s could be w a i v e d when c ir c u m ­




The management of the company believes that as a general
rule it is not desirable to obtain the services of contract
engineers who are not employees of the company for the pur­
pose of using such engineers in the plants of the company on
work equivalent to that performed in various job classifications
covered by this agreement. However, to meet certain emer­
gencies or special conditions, it may be in the best interests
of the company to obtain and use such services. . . . (ISO)

In public u tilitie s, on the other hand, an
em e rg en cy m a y be defined, as in the fo llo w ­
ing illu stration , as any condition endangering
the p ublic:
Overhead line work . . . may be let to a contractor when . . .
an emergency exists jeopardizing life, public safety, property,
and service to customers . . .
(151)

In its second fo r m , the clause under­
sc o r e s the im portance of the volum e of p r o ­
duction or w ork.
T hus, the em p loyer m a y
subcontract w h e n the volum e of w ork in ­
c r e a s e s or when the shop is so busy that the
w ork subcontracted could not be done in the
p la n t.

27
. . .
In addition, work may be contracted out on occasions
where the volume of work, or the time limits for completing
the work, precludes the possibility of effectively using our
own personnel. (152)
* * *
All work which has been performed in the tool and die depart­
ment . . . shall continue to be done there and shall not be
contracted out except where the shop is so busy that it is
unable to do necessary work . . . (153)

Among the 128 p ro v isio n s, 11 re fe rre d
sp e cifica lly to the em p loyer m eeting d eliv ery
d a te s :
It shall be the policy of the company to utilize its seniority
employees by continuing to use its best efforts to keep the
production of work parts, tools, dies, fixtures, and mainte­
nance in the works insofar as practical and efficient to do so.
. . . The objectives of the policy will require the company's
consideration of whether (a) there are adequate numbers of
qualified seniority employees available to perform the needed
work within any required time limitations as well as continuing
to meet time limitations on other scheduled work . . . (154)

C u stom er R ela tio n s. Fourteen p rovision s
stipulated that cu stom er a n d /o r public r e la ­
tions requirem ents would be a consideration
whether to contract out. Such con sid era tio n s,
how ever, also underlie the cla u ses w h i c h
refer to production requirem en ts and sim ila r
needs in subcontracting d e c isio n s:
The c o m p a n y will have the right to contract out work
when . . . public and customer relations require it. (155)
* * *
The company shall have the right, at its discretion, to appor­
tion work by subcontract to company employees or others, as
it may see fit in order that the contractual work to which
the company may be committed at that time, may be car­
ried out in the most economical and expeditious manner for
the benefit of the customer and the remainder of the work
or any particular vessel or vessels. (156)

D isputes Settlem ent and Savings P ro v isio n s
Disputes S ettlem en t. A s a rule disputes
over contract p rovision s are subject to the
traditional settlem en t procedure of the a g r e e ­
ment— n am ely, the grievance and arbitration
m ach in ery. Y et, over on e-fou rth of the 755
subcontracting p rovision s
(192) sp e c ific a lly
establish ed p roced u res to settle d ifferen ces
and/crr c o m p e l observance of the subcon­
tracting p ro vision .
Another seven clau ses
were at the other pole and stipulated that
subcontracting p rovision s w ere outside the
scope of the c o n tr a c ts grievance and a r b i­
tration p ro ced u res.
These 192 p rovision s w ere about evenly
divided between manufacturing (100) and non­
m anufacturing (92). Although p rovision s w ere




c lu stered in the construction industry (47 out
of 202), actual s h o r t-te r m em ploym ent on
building p ro je cts m eant that enforcem en t by
the grievance procedure was not as p ra ctica l
as in industries c h ara cterized by y e a r-ro u n d
em ploym ent. Over o n e -h a lf of the c o n str u c ­
tion in d u stry ’ s en forcem en t p ro vision s s p e c i­
fied that building trad esm en could strike if
they concluded that the subcontracting p r o v i­
sion had been v i o l a t e d .
Other industries
having substantial num bers of enforcem en t
p rovision s sp e c ific a lly relating to subcon­
tracting included apparel (32), p rim a ry m eta ls
(35), and transportation (38).
The four in ­
d u stries together accounted for over th re e fourths of the p rovision s p articu la rly dealing
with com p liance.
N either provision s concerning production
or m a jo r activities nor p rovision s about con­
struction, m aintenance, and i n s t a l l a t i o n
tended to include enforcem en t p roced u res in
any great n um b ers. Although the fo rm e r had
a lm o st 3 tim es as m any p rovision s (184) as
the latter (63), relative to the total number
of p rovision s each had in the study, the p r a c ­
tice was re la tiv e ly c lo s e : 2 8 .4 percent of the
agreem en ts concerning production and 2 3 . 6
percent of the contracts pertaining to con ­
stru ction, in stallation , and m aintenance had
enforcem en t p ro v isio n s.
A ll p rovision s which b arred enforcem en t
stated that neither the e m p lo y e r ^ subcon­
tracting actions nor subcontracting disputes
would be subject to grievance a n d /o r a r b i­
tration p ro ce d u re s:
. . . The company will give the union . . . notice of its
intention to contract out . . . . if such contracting out of
work will result in the layoff of regular full-time employees
covered by this agreement, and will discuss such action with
union representatives. Contracting out of work shall not be
subject to the grievance procedure or arbitration and in all
cases the final decision will be left to the company. (157)
* * *
Arbitration of disputes before an impartial arbitration shall
not be mandatory in the following instances: . . .
Where a subcontractor performs work exclusively on the jo b site and with the knowledge of the contractor and after written
notification from the union has failed, refused, or neglected to
comply with the terms and provisions of this agreement. (158)

Of the 192 enforcement provisions, 129
specifically utilized the contracts grievance
and arbitration machinery; 32 permitted work­
ers to strike; 9 provided financial remedies
or the suspension of management violators
from their employer association; and 22 com­
bined these enforcement remedies. In 129

28
con tra cts, the grievance and arbitration p r o ­
cedure represen ted the sole e n f o r c e m e n t
m easu re, and in another 17 cla u se s, it was
com bined with other p ro ce d u re s:
The area grievance committee members will be given notice
by the company when the company believes it should have
significant items of work performed in the plant by outside
contractors. Should the area grievance committee members
believe discussion to be necessary, they shall so request the
company in writing within three days (excluding Saturdays,
Sundays, and holidays) after receipt of such notice and such
a discussion shall beheld within three days (excluding Saturdays,
Sundays, and holidays) thereafter. Should the company fail
to give notice as provided above, or should the matter not be
resolved by the discussion, then not later than (30) days f r o m
the date of the commencement of the work a grievance re­
lating to such matter may be filed under the grievance and
arbitration procedure. (159)
* * *

It is further agreed that the company, when it thinks it neces­
sary to contract a job out, will, well in advance notify the
union of its intention by letter, and by means of discussion,
if requested by union officers, qualify their reasons for desiring
to contract the work out.
Any differences that are left unresolved shall be settled through
the grievance procedure.
It shall be the general policy of the company not to subcon­
tract tool and die work when there are tool and die journey­
men on layoff, unless the work is of a nature that the com­
pany does not have the equipment or skills to perform, and
in such instances the union will be notified, in advance, by
letter and afforded the opportunity to question and discuss the
job in question. Any differences remaining unresolved will
be settled through the grievance procedure. (160)
* * *

When major construction work is to be done, the company
will call in the union, outline the work to be done, establish
insofar as practicable the duration of time involved, and set
down the manner in which the work will be done, whether by
contractor or otherwise. Any major construction work as de­
fined in its constitution within the jurisdiction of LAM will
be performed by members of LAM.
Any disputes shall be
subject to the grievance procedure as now provided. (161)

In e ss e n ce , the availability o f the g r ie v ­
ance proced u re allow ed the em ployer to in iti­
ate action subject to a subsequent challenge
by the union. R ecou rse to the grievance p r o ­
cedure thus becam e a p e a c e f u l m eans to
balance equities without obstructing a ctivities.
This p ra ctice was rather c le a r ly set forth in
the follow ing p ro v isio n s:
When the company is about to contract work . . . it will
notify the chairman of the skilled trades council . . . The
chairman . . . accompanied by as many as three other union
representatives may meet with the company's representative
who has issued the notice for the purpose of discussing the
company's intent to let such contract. This provision is not
to be construed to mean that the company may not let such
contract until the union representatives have agreed that let­
ting of the contract is justified. If the c h a i r m a n of the
skilled trades council believes that letting the contract was
unjustified, he may file a grievance under the grievance pro­
cedure, challenging the company's determination under this
section. (139)




A sensitive issu e, esp e cia lly when w ork ­
ers fear fo r their jo b s , subcontracting o c c a ­
sionally has been a ccord ed sp ecial treatm ent
sim ila r to appeals from disch arge.
E a rly
steps of the grievance proced ure could be
b y -p a sse d to expedite settlem ent:
Within five (5) working days of filing of grievance claiming
violation of this (subcontracting) article, the parties to this
agreement shall proceed to the final step of the grievance pro­
cedure, without taking any intermediate steps, any other pro­
vision of this agreement to the contrary notwithstanding. (162)

In a few p rov ision s, the parties substi­
tuted negotiation fo r arbitration between high
lev el com pany and union o fficia ls where a
subcontracting com plaint had been p ro ce s s e d
fir s t through the low er steps o f the grievance
p roced u re without arrivin g at a settlem ent:
. . .
It does not prevent the union from processing a griev­
ance through the normal steps of the grievance procedure.
Such grievance is not subject to arbitration, however, should
the union not agree with the third step disposition, then the
chairman and international representative may discuss the dis­
position with the corporate director of industrial relations or
his designated representative. (163)

Under 32 p r o v i s i o n s , w ork ers could
strike if subcontracting regulations w ere v io ­
lated.
These agreem ents w ere c l u s t e r e d
la rgely in the construction industry w here,
as noted e a rlie r, strikes w ere m ore likely to
produce a m eaningful settlem ent than g r ie v ­
ance p roced u res because o f the tim e elem ent.
Another 14 agreem ents allow ed strikes as w ell
as other enforcem ent m ea su res:
(The) local union . . . is a part of the International Brother­
hood of Electrical Workers, and any violation or annulment
of working rules or agreement of any other local union of the
IBEW, or the subletting, assigning, or the transfer of any work
in connection with electrical work to any person, firm, or
corporation not recognizing the IBEW as the collective bar­
gaining representative will be sufficient cause for cancellation
of this agreement, after the facts have been determined by
the international office of this local union. (164)
* * *

. . . The employer, in an effort to maintain work juris­
diction peace, shall require all subcontractors to sign an agree­
ment stipulating that the subcontractor shall agree to be bound
by this agreement, including the submission by all subcontrac­
tors of all jurisdictional disputes, wherein this craft is involved,
to the National Joint Board for the Settlement of Jurisdictional
Disputes. All subcontractors shall be bound by that board's
decision. In the event any employer under the terms of this
article does not comply with its contents, this agreement is
considered to be abrogated. (126)
* * *

Upon failure of the subcontractor to comply with such non­
monetary terms or conditions within one (1) full working day
after the determination by the association or its agent and
the union or the arbitration committee, then in that e v e n t
the union shall in addition to any and all other remedies
available to it, be released from any provision of this agree­
ment which restricts or delays their right to strike. (165)

29
Twenty-seven agreements provided that
financial penalties could be assessed against
employers violating the subcontracting clause
or that such employers might be suspended
from association m em bership. These clauses
were confined almost exclusively to the ap­
parel industry.
The union's financial rem ­
edies were designed to counteract any advan­
tage gained by the employer as a result of
his violation:
The parties acknowledge that should a member of the asso­
ciation violate (the requirement that the subcontractor hold
a contract with the union), such violation would have an ad­
verse effect upon the interest of the workers, as well as upon
the interest of the union in the establishment and maintenance
of the labor standards provided for in union agreements with
other employers in the industry. The parties also acknowledge
that the damage to the union flowing from such violations
is difficult, if not impossible, of accurate ascertainment.
Therefore, the parties agree that in the event of such vio­
lation by a member of the association, such member shall
pay to (the local union) liquidated damages computed as
follows . . . (166)
* * *

Should a member of the association send piece goods to be
cut to a "cut up" contractor or send garments to be manu­
factured by any "struck" contractor or, except as otherwise
provided in subdivision . . . should a member of the asso­
ciation be found giving work to or dealing with a contractor
who is not in contractual relations with joint council, such
member shall pay to joint council damages for each such
violation in a sum equivalent to twenty (20%) percent of the
total amount (not merely the payroll of the contractor) paid
by him and still due from him to such contractor for said work.
A member of the association who is in collusion with a con­
tractor who sends such member's garments to be manufactured
by other contractors or by "struck" contractors or to be cut
by 'tut up" contractors shall pay to joint council damages
for each such violation in a sum equivalent to twenty (20%)
percent of the total amount (not merely the payroll of the other
contractor) paid out still due to such other contractor. (131)

The few contracts stipulating suspension
from association membership for employers
violating subcontracting jobs varied the dura­
tion of suspension, contingent upon the number
of offenses and the magnitude of the offense:
Should an employer be found guilty of violating this article,
he shall be subject to sanctions as follows:
(a) Upon a first conviction involving a system of violation
(i. e . , a number of garments at one time, or the repeated
giving out or purchase of garments): Three months' suspen­
sion from the association.
(b) Upon a second conviction:
the association.

One year's suspension from

(c) Upon a first conviction growing out of isolated or minor
transaction: Payment of the labor cost plus liquidated dam­
ages not to exceed one thousand dollars . . . (167)




Savings Clauses. Twenty-six agreements
set the conditions under which subcontracting
restrictions might be waived.
M ost w e r e
concentrated in t r u c k i n g and construction
and were concerned with the possible conflict
between clause requirements and the law.
Like general savings clauses in the c o lle c ­
tive bargaining agreement, those provisions
specifically referring to subcontracting stipu­
lated that illegal language would become in­
operative :
If this article shall be held to be illegal, the same shall be
eliminated from this agreement. (75)

One clause specified t h a t if the provision
was determined to be inoperative, then the
parties would renegotiate the clause:
. . . This provision shall be operative only to the extent
permitted by law. Should any final determination of any
board or court of competent jurisdiction affect this provision,
the contractors and the union shall meet within ten (10) days
of such final determination for the purpose of renegotiating
this paragraph D. (168)

Clauses, in addition to waiving r e s tric ­
tions for legal reasons, also might relinquish
controls for economic reasons.
These r e ­
sembled cost and efficiency provisions noted
above; thus, the following provisions were
inoperative if cost would be unreasonable or
excessive, or if the work would be delayed,
or if the contractor would not be readily
available or equipped:

If it becomes necessary for the company to contract out work
of the type regularly and customarily performed by employ­
ees covered hereby, it shall so notify the union and give
preference to qualified contractors in agreement with unions
affiliated with the American Federation of Labor. Nothing
herein shall require the company to violate any regulations,
ordinance, or statues of a n y kind whatsoever, nor s h a l l
it be required hereby to assume unreasonable or excessive
cost. . . . (169)
* * *

When building or construction work of the type customarily
performed by the Building Trades Unions of the American
Federation of Labor is contracted out, preference shall be
given to qualified contractors employing members of these
trades unions, provided that nothing herein shall require the
company to violate Federal, State, or municipal regulations,
to delay the work or to employ a contractor either not readily
available or not equipped to do the work. . . . (170)

T a b le 1.

S u b c o n tr a c tin g P r o v i s i o n s in M a j o r A g r e e m e n t s b y I n d u s t r y ,

1 9 6 5 —6 6

(W o rk e rs in thousands)
Subcontracting—

T o ta l
studied

Ind ustry

T o ta l

A gree­
W o rk e rs
m ents

U n re s tric te d

A gree­
W o rk e rs
m ents

A gree­
W o rk e rs
m ents

A llow ed
but lim ite d
A gree­
W o rk e rs
m ents

Other 1

P rohibited
A gree­
W o rk e rs
m ents

No re fe re n ce

A gree­
W o rk e rs
m ents

A gree­
W o rk e rs
m en ts

.

1 ,8 2 3

7 ,3 3 9 .2

801

4 ,4 6 4 .4

38

2 4 0 .6

755

4 ,1 8 6 .8

4

9. 3

4

<J
\

00

1, 022

2, 8 74. 8

M an u factu rin g__________________________________

1, 048

4 , 155. 5

396

2, 5 42. 0

35

231. 2

356

2, 2 7 8 . 0

!

5. 0

4

27. 8

652

1 ,6 1 3 . 5

O rdnance and a c c e s s o r i e s ______________________
F ood and kindred p ro d u cts . . . . . . . . . _____ _______
T o b a cco m a n u fa ctu re s__ _______ ____ ____ _______
T e x tile m i ll p r o d u c ts __________ — ---------------- — .
A p p a re l and other fin ish e d p r o d u c t s ....__ ___
L u m b er and w ood p ro d u c ts , excep t
fu rn itu re _
_
. . . . .
. ____ . . . . —
F u rn itu re and fix tu r e s — — . __
— _ —
P a p er and a llie d p r o d u c ts _____ _ —____ _______
_
P r in tin g , p u blish in g, and a llie d in d u s t r ie s —
C h e m ic a ls and a llie d p r o d u c ts -------------------------P e tr o le u m refining and re la te d i n d u s t r ie s ...
R ubber and m is c e lla n e o u s p la s tic s
p ro d u cts —
..
---------------------— .
L e a th er and lea th er p ro d u c ts_____ _____ _______
Stone, c la y , and g la s s p r o d u c ts _______________
P r im a r y m e t a l in d u strie s
. . . . . .
F a b ric a te d m e ta l p ro d u cts --------------------------------M a c h in e ry , excep t e le c t r i c a l---------------------------E le c t r ic a l m a c h in e ry , equ ipm ent,
and s u p p lie s __ rT,-r_____________________ _____ , ,
__
T ra n sp o rta tio n eq u ip m e n t________ ___ __________
In stru m e n ts and r e la te d p r o d u c ts -------- ----------M isc e lla n e o u s m anu facturing in d u strie s . . —.

18
126
11
30
55

69. 9
382. 0
2 4 .2
71. 8
392. 0

5
31
1
10
52

32. 9
1 3 1 .7
1. 1
37. 0
388. 5

1
1
2
-

6 .4
2. 8
3. 6
-

4
28
1
8
52

26. 5
120. 9
1. 1
3 3 .4
388. 5

1
-

5. 0
-

1
_
-

3. 0
-

13
95
10
20
3

13
18
50
28
61
20

2 4 .6
2 9 .6
112. 2
59. 1
106. 8
44. 9

6
4
12
13
20
15

9 .6
5. 0
1 8 .4
2 9 .5
37. 5
31. 2

1
1

2 .6
2. 8

6
4
12
13
19
14

9 .6
5. 0
1 8 .4
2 9 .5
34. 9
2 8 .4

_
-

_
-

-

_
-

7
14
38
15
41
5

15. 0
2 4 .6
93. 9
2 9 .6
69. 3
13. 7

21
23
37
106
55
115

1 0 7 .6
73. 8
115. 5
5 4 5 .7
129. 9
3 1 4 .6

13
8
19
45
12
47

7 0 .7
32. 3
75. 8
4 2 3 .6
3 3 .5
158. 9

1
2
1
1
1
5

1. 1
4. 5
1. 1
3 .5
1. 5
13. 5

11
6
18
44
11
42

49. 3
27. 8
74. 7
420. 1
32. 0
1 4 5 .4

-

-

1
-

20. 3
-

8
15
18
61
43
68

36. 9
41. 5
3 9 .7
122. 2
9 6 .5
1 5 5 .8

106
118
25
12

398. 7
1, 075. 5
4 8 .6
28. 9

22
49
6
6

175. 3
8 2 1 .6
10. 0
1 8 .4

12
5
1

135. 1
50. 2
2 .6
-

9
43
5
6

3 7 .4
769. 7
7 .4
1 8 .4

-

-

1
1
-

2. 8
1 .7
-

-

-

-

-

84
69
19
6

223.
253.
38.
10.

Nonm an ufacturing-------- ----------- ——— . — --------

775

3, 183. 8

405

1, 9 2 2 . 5

3

9 .5

399

1 ,9 0 8 . 8

3

4. 3

_

_

16
91
88
80
19
119
37
65
256

1 1 1 .4
607. 0
5 24. 9
180. 0
35. 3
3 1 7 .6
171. 5
2 5 8 .2
970. 9

10
56
28
62
6
16
4
20
203

103. 0
463. 9
22 0 . 3
138. 3
9. 3
32. 4
41. 3
98. 5
8 1 5 .6

1
1
-

1 .6
6. 7
-

9
56
27
62
6
15
4
18
202

1 0 1 .4
46 3. 9
2 1 3 .6
138. 3
9 .3
30. 9
41. 3
95. 9
814. 3

1

1. 5

-

_
-

-

-

-

-

-

1
1

1. 5
1. 3

-

-

-

4

7. 2

"

“

”

A l l in d u s t r ie s .

——

......

..

——

M in in g, cru de p e tro le u m , and n a tu ral
gas p r o d u c tio n .___ __. . — ----------- -------- ----- ----T r a n s p o r t a t io n 1 — _ — — .
2
—
- .
C om m u n ic ation s-------------- ----- -------— -----------------. . .
U tilitie s : E le c tr ic and g a s --------------------------------W h o le sa le t r a d e ----------------------------------------------------R eta il tra d e— ---------------------------------------------------------H otels and r e s t a u r a n t s --------------- ----- ----- ------------S e r v ic e s — --------------— — --------- —---------------—— —
Cons t rue tion--------------- ----- —----- --------- ------ ------------M isc e lla n e o u s nonm anufacturing
in d u s t r ie s ------------------------------------------------------------ -

“

-

-

-

-

-

-

-

1

1. 2

“

-

1 Su bcon tracting m ention ed in the a g re em en t but details a re vague or sub ject to n egotiation s.
2 E x clu d es ra ilr o a d and a ir lin e in d u s trie s .
NOTE:

B ecau se




o f r o u n d in g ,

su m s

o f in d iv id u a l i t e m s

m a y not e q u a l t o t a l s .

“

“

37.
250.
23.
34.
3.

0
4
1
9
5

4
9
7
5

370

1, 2 6 1 . 3

-

6
35
60
18
13
103
33
45
53

8. 4
143. 1
304. 7
4 1 .7
26. 0
2 85. 2
130. 2
1 5 9 .7
155. 4

-

4

7. 2

-

T a b le 2 .

S u b c o n tr a c tin g P e r m it t e d S u b je c t to L im it a t io n s in M a j o r A g r e e m e n t s , S e le c t e d I n d u s t r i e s ,

1 9 5 9 and 1 9 6 5 —66

(W ork ers in thousands)
A g reem en ts

N um ber
studied
A ll i n d u s t r ie s .

____

_____

_______

T o ta l (5 in d u str ie s)____________ ____

. . .

_______

_
___ ________
P r im a r y m e ta l in d u s t r ie s ____ _
M a c h in e ry , e x c e p t e l e c t r i c a l ._______ _______ __ _
_
T r a n sp o rta tio n e q u ip m e n t_______ _______________ _
T r anspo r tation-------------- -- ------------------------------------------C o n stru c tio n .______
_
_____ _ ____________
_




1 9 6 5 -6 6

1959

Ind ustry

W o rk e rs
P rop ortion with
p ro v isio n

N um ber
N um ber
with
studied
p ro vision s

1959

1 9 6 5 -6 6

N um ber
studied

J P roportion with
[
pro vision s

1 9 6 5 -6 6

1959

N um ber
with
p ro v isio n s

N um ber
N um ber
with
studied
p ro v isio n s

N um ber
with
p ro v isio n s

1959

1 9 6 5 -6 6

34. 0

57. 1

I----------------| 40. 5
-

74. 4

i
!
i
]
!
!

77. 0
46. 2
7 1 .6
7 6 .4
83. 9

1 ,6 8 7

369

1, 823

755

2 1 .9

4 1 .4

7 ,4 7 7 .3

2, 5 4 5 .6

7, 3 3 9 .2

4 , 1 8 6 .8

618

148

686

387

24. 0

5 6 .4

3 ,4 3 6 . 0

1 , 3 9 1 .6

3, 5 1 3 . 7

2 ,6 1 3 .4

124
117
127
95
155

9
11
26
23
79

106
115
118
91
256

44
42
43
56
202

7. 3
9 .4
20. 5
24. 2
51. 0

41. 5
36. 5
3 6 .4
61. 5
78. 9

724.
283.
1, 152.
573.
701.

T able 3.

8
9
2
2
9

35. 0
17. 5
6 54. 3
2 4 0 .7
444. 1

545. 7
3 1 4 .6
1, 0 75. 5
607. 0
9 70. 9

420. 1
1 4 5 .4
7 6 9 .7
463. 9
8 1 4 .3

4 .8
6 .2
56. 8
42. 0
63. 2

A c tiv itie s and O peration s G overn ed by Subcontracting L im ita tio n s,
M a jo r A g r e e m e n ts , 1965—66
(W o rk e rs in thousands)
N u m ber

P e rcen t

A c tiv itie s and operations
A g re e m e n ts
T o ta l, a ll a r e a s ______________
Production p ro c e s s or m ajor
activity o n ly ------------------------------------C onstruction , m aintenance only —
S e rv ic e s o n l y ________________________
C om binations--------------------------------------Production and co n stru ctio n ___
Production , con struction, and
s e r v i c e s --------------------------------------Production and s e r v i c e s -----------C onstruction and s e r v i c e s -------Vague __________________________________
A r e a s sp ecified : 1
P roduction p ro c e s s or m a jo r
a c t i v i t y ---------------------------------------C onstruction , m aintenance,
S e r v i c e s ------------------------- -------------Vague ----------------------------------------------

1 N onadditive.
NOTE:

W o rk e rs

755

4. 186. 8

100. 0

100. 0

477
100
2
173
120

2, 238. 1
606. 8
3. 9
1, 300. 0
8 4 3 .6

63.
13.
.
22.
15.

2
3
3
9
9

53.
14.
.
31.
20.

5
5
1
1
2

6.
.
.
.

0
8
3
4

10.
.
.
.

2
6
1
9

45
6
2
3

425.
26.
4.
38.

6
2
7
0

A g re e m e n ts

W o rk ers

648

3, 543. 6

85. 8

84. 6

267
55
3

1 ,8 8 0 .7
460. 3
38. 0

35. 4
7. 3
. 4

44. 9
11. 0
. 9

M o re than 1 a re a is

sp e cifie d in 173 a g re e m e n ts .

B ecause of rounding, su m s o f individual item s m ay not equal to ta ls.

2

S p e c i f ie d C o n d it io n s W h e r e S u b c o n tr a c tin g L im it a t io n s A p p ly b y A c t i v i t i e s an d O p e r a t io n s G o v e r n e d , M a j o r A g r e e m e n t s ,

T o ta l
C onditions s p e c if i e d 1
A gree­
m ents
A ll a g r e e m e n t s _______________________________

Union and con tract sta n d a rd s-------------- ------------C o st, production , and other
b u sin e ss con ditions------------------ ---------------------------

1755

W o rk ers
4 , 1 8 6 .8

(W ork e rs in thousands)
C onstruction ,
Production p r o c e s s
m ainten ance,
or m a jo r
activity only
only
A gree­
A gree­
W o rk e rs
W o rk e rs
m en ts
m ents
477

1 9 6 5 —6 6

C om binations

S e rv ic e s only
A gree­
m ents

W o rk e rs

A gree­
m ents

W o rk e rs

1 N onadditive.

M o r e than

B ecau se o f rounding,




W o rk e rs

100

606. 8

2

3 .9

173

1, 3 00. 0

3

423. 1
121. 8

_

_

2

3 .9

149
73

1, 2 3 8 . 7
510. 7

2
2

33. 1
36. 9

4 6 8 .2

“

“

117

'

'

498
471

3, 2 1 3 .6
2 ,6 0 9 .7

274
369

1, 5 1 8 .7
1, 9 36. 5

73
25

294

2, 1 4 3 .2

109

600. 5

68

1 condition m ay be sp e cified .
su m s of individual item s m a y not equal to ta ls.

Table 5. L im itatio n s A ffectin g In -P la n t E m p loym ent O pportunities
in Subcontracting P r o v is io n s , M a jo r A g r e e m e n ts , 1965—66
(W o rk e rs in thousands)
Lim itations affecting in -p lan t
em ploym ent op p ortu n ities1

A g re e m e n ts

W ork ers

Total with l im it a t io n s ____________________________________________

498

3. 213. 6

L im itatio n s specified:
L a yoff and p a r t-t im in g -----------------------------------------------------------------------F u lly supplied with w o r k -------------------------------------------------------------------W orking with su b con tracto rs' e m p lo y e e s -------------------------------------N otice and co n su lta tio n ---------------------------------------------------------------------S eniority p ro te c te d ___________________________________________________
O vertim e re q u ir e m e n ts ---------------------------------------------------------------------C onsideration a n d /o r p re fe ren ce to in -p la n t w orker s -------------C onversion of em ployee into s u b c o n tra c to r--------------------------------M iscella n eo u s em ploym ent p r o t e c t io n s -----------------------------------------

187
55
4
258
14
29
54
79
33

983.
397.
30.
1, 905.
81.
121.
559.
343.
281.

1 N onadditive.

i A gree­
m ents

2, 2 3 8 . 1

1, 074. 5
I ____________
_

NOTE:

Not cle a r

C
O
00
o

T a b le 4 .

A g reem en ts m ay sp e cify m o re than 1 lim itation,

7
3
9
5
3
4
1
2
6




Table 6. L im itatio n s A ffectin g Union and C ontract Standards in
Subcontracting P r o v is io n s , M a jo r A g r e e m e n ts , 1965—66
(W o rk e rs in thousands)
L im itatio n s affecting union
and con tract standards 1

Total with lim itation s _____________________________
L im itations sp e cified :
C ontract c o m p lia n c e ______ ____________
G eneral c o m p lia n c e _________________ ________________
Union subcontractor re q u ir e m e n t___________________
Union labor r e q u ir e m e n t _____________________________
U nfair goods _____________________________
S t r ik e s _
_ ...... _ _
R egistratio n r e q u ir e m e n t ____________________________
P rotecting su b co n tra c to rs' w o r k e r s _______________
P rotecting the s u b c o n tra c to r_________________________

1 Nonadditive.

A g re e m e n ts

W o rk e rs

471

2. 6 09. 7

181
190
168
56
45
71
64
82
25

8 44. 2
1, 3 52. 5
8 50. 3
216. 7
3 1 4 .4
418. 8
547. 0
6 4 0 .4
206. 6

A g re e m e n ts m ay sp e cify m o r e than 1 lim itation .

Table 7. L im ita tio n s Concerning C o s t, Production , and O ther B u sin ess
Conditions in Subcontracting P r o v is io n s , M a jo r A g r e e m e n ts , 1965— 6
6
(W o rk e rs in thousands)
L im itations con cern in g c o s t , production,
and other b u sin ess conditions 1

Total with lim itation s _____________________________
L im itations specified:
C ost and effic ie n cy r e q u ir e m e n ts ___________________
Equipm ent, sk ill and m anpow er
r e q u ir e m e n t s _________________________________________
Peak p e rio d s, e m e r g e n c ie s , and unusual
order bu ild-up s _______________________________________
C ustom er or public relations
req uirem ents _________________________________________

N onadditive.

A g re e m e n ts

W ork e rs

294

2. 143. 2

149

1, 328. 5

180

1, 322. 8

128

1, 273. 7

14

38. 9

A g re e m e n ts m ay sp e cify m o re than 1 lim itation .

8




A ppendix A.

Selected Subcontracting Provisions

This appendix illu stra tes how various parts of the subcontracting clause fit together.
These clau ses should not be con sid ered as m odel or typical p rov ision s.
F rom the agreem ent between

New England Sportswear Manufacturing Association and the
International Ladies’ Garment Workers’ Union (AFL-CIO)
(ex p ires June 1970)
1.
The em ployer shall em ploy or continue em ploying only such con tractor or co n tra c­
tors who are conducting union shops and who are in contractual relations with the union.
The
em ployer shall not o rd e r or purchase goods or otherw ise deal or continue dealing with any
con tra ctor not in contractual relations with the union.
A union contractor* s shop is herein
defined to m ean one which has a co lle ctiv e bargaining agreem ent with the International L a d ies1
Garment W o rk e rs1 Union.
The em ployer ag rees that it w ill not do business with or give
any w ork to any con tra ctor or subcontractor who is not in contractual relations with the
International L a d ie s1 Garment W o rk e rs1 Union.
2.
The em ployer shall have no work perform ed by a con tractor unless the w ork ers of
its inside shop are fully supplied with w ork, and unless such con tractor is under a contract
with the International L a d ie s1 Garment W o rk e rs1 Union.
The em ployer shall designate and
re g iste r with the union the nam es of all con tra ctors presently doing w ork for the em ployer.
Any needed additional con tra ctor designated by the em ployer shall be reg istered with the union.
In the event of a change in the existing situation, the union re s e rv e s the right to r e ­
open this clause fo r the purpose of negotiating new p rov ision s regarding con tractors in co n ­
form ity with law.
3.
Where an em ployer u ses m ore than one co n tra ctor, it shall, during the slack
season, distribute its w ork proportion ately among all its con tra ctors in sofar as p racticable.
Where an em ployer with an inside shop uses co n tra ctors, it shall, during the slack season,
distribute its w ork proportion ately between the inside shop and its regular con tra ctors,
giving p refe re n ce where p ra ctica b le to the inside shop.
4.
In o rd e r to safeguard working standards and em ploym ent opportunities of the
w ork ers co v e re d by this and other agreem ents in the garm ent industry, it is agreed that
all garm ents or parts th ereof handled by the em ployer during the term of this agreem ent,
whether finished or partly fin ish ed, shall be m anufactured ex clu siv ely either in its own shop
o r, as parts of an integrated p r o c e ss of production under the jo b b e r-co n tra cto r system of
production, in a shop under contract with the International L a d ies1 Garment W ork ers1 Union;
and a cco rd in g ly the em ployer shall not handle, purchase, im p ort, or otherw ise obtain,
d irectly or in d irectly , any other wholly or partly finished garm ents w hatsoever during the
term of this agreem ent.
5.
In the event the em ployer sends garm ents to be m anufactured by any '‘ stru ck ”
con tra ctor after n otice that such con tractor is being struck, or in the event the em ployer
at any tim e sends garm ents to be m anufactured by a non-ILGWU con tra ctor, including a
non-ILGWU “ cutter c o n tr a c to r ” , the em ployer shall pay to the union dam ages fo r each such
violation in a sum equivalent to twenty (20%) per cent of the total amount (not m erely the
payroll of the con tra ctor) paid by it and still due from it to such con tractor fo r said work.
Such payment shall include the obligation of the em ployer stated in A rticle X V(4).




35

36
F rom the agreem ent between

United States Steel Corporation and the
United Steelworkers of America (AFL-CIO)
(ex p ires July 1971)

The parties have existing rights and obligations with re sp e ct to various types of co n ­
tracting out. In addition, the follow ing supplements protections fo r bargaining unit em ployees
or a ffirm s existing management righ ts, w hichever the ca se m ay be, as to those types of
contracting out sp ecified below :
a. P roduction, s e r v ic e , and d a y -to -d a y maintenance and rep a ir w ork within a plant
as to which the p ra ctice has been to have such w ork p erform ed by em ployees in the
bargaining unit shall not be con tracted out fo r p erform an ce within the plant, unless
otherw ise mutually agreed pursuant to paragraph 2 -A -4 -d .
If production, s e r v ic e , and d a y -to-d a y maintenance and rep air w ork has in the past
been perform ed within a plant under som e circu m sta n ces by em ployees within a b a r ­
gaining unit and under som e circu m sta n ces by em ployees of co n tra cto rs, or both, such
contracting out shall be p e rm issib le under circu m sta n ces sim ila r to those under which
contracting out has been a p ra ctice , unless otherw ise mutually agreed pursuant to p a r­
agraph 2 -A -4 -d .
P rodu ction , s e r v ic e , and d a y -to-d a y maintenance and repair w ork within a plant as
to which the p ra ctice has been to have such w ork p erform ed by em ployees of con tra ctors
m ay continue to be con tracted out, unless otherw ise mutually agreed pursuant to p a r­
agraph 2 -A -4 -d . H ow ever, in the event reduced operations are anticipated in the s e ­
n iority unit to which the w ork would m ost appropriately be assigned, management shall,
p rio r to contracting out the w ork, give consideration to the assignm ent of such w ork
to the em ployees within said unit providing such w ork w ill not involve overtim e fo r
such em ployees or alter schedules fo r the com pletion of other jo b s .
b. Maintenance and repa ir w ork p erform ed within the plant, other than that d e­
scrib e d in paragraph 2 -A -4 -a , and installation, replacem ent and recon stru ction of
equipment and productive fa c ilitie s , other than that d escrib ed in paragraph 2 -A -4 -C ,
m ay not be con tracted out fo r perform an ce within the plant unless contracting out under
the circu m sta n ces existing as of the tim e the d ecision to contract out was made can be
dem onstrated by the com pany to have been the m ore reasonable cou rse than doing the
w ork with bargaining unit e m p loy ees, taking into consideration the significant fa cto rs
which are relevant.
Whether the decision was m ade at the particular tim e to avoid
the obligations of this paragraph m ay be a relevant fa cto r fo r consideration.
c . New construction including m a jor installation, m a jor replacem ent and m a jor r e ­
con stru ction of equipment and productive fa cilitie s at any plant m ay be contracted out,
subject to any rights and obligations of the p arties which, as of the beginning of the
period com m encing August 1, 1963, are applicable at that plant.
d. At each plant a regu larly constituted com m ittee consisting o f not m ore than four
p erson s (except that the com m ittee m ay be enlarged to six person s by lo ca l agreem ent),
half of whom shall be m em b ers of the bargaining unit and designated by the union in
w riting to the plant management and the other half designated in writing to the union
by the plant m anagem ent, shall attempt to re so lv e p roblem s in connection with the
operation , application and adm inistration of the foreg oin g p rov ision s.
In addition to the requirem ents of paragraph 2 -A -4 -e below , such com m ittee m ay
d iscu ss any other current p rob lem s with re sp ect to contracting out brought to the
attention of the com m ittee.
e. The union com m ittee m e m b e rs w ill be given notice by the company m em b ers,
when the com pany b e lie v e s it should have significant item s of w ork perform ed in the
plant by outside co n tra cto rs.
Such notice shall contain an adequate d escrip tion of the



37
w ork to be p e rform ed and shall be given at such early date as w ill allow good faith
d iscu ssion of whether such w ork should or should not be contracted out, unless e m e r ­
gency conditions prevent such ea rly n otice.
Should the union com m ittee m em b ers b e ­
lieve d iscu ssion to be n e ce ssa ry , they shall so request the com pany m em b ers in writing
within five days (excluding Saturdays, Sundays, and Holidays) after receip t of such
n otice and such a discu ssion shall be held within three days (excluding Saturdays, Sun­
days, and Holidays) th erea fter.
The union m em bers of the com m ittee m ay include in
the m eeting the union represen tative from the area in which the problem a r is e s .
Should
the com m ittee re so lv e the m atter, such resolution shall be final and binding.
Should
a discu ssion be held and the m atter not be resolv ed or in the event a d iscu ssion is
not held, then within thirty days from the date of the com pany’ s notice a grievance
relating to such m atter m ay be filed under the grievance and arbitration p roced u re.
Should the com pany com m ittee m em b ers fail to give notice as provided above, then not
later than thirty days fro m the date of the com m encem ent of the w ork a grievance
relating to such m atter m ay be filed under the grievance and arbitration proced u re.

F rom the agreem ent between

Climax Molybdenum Company, a Division of
American Metal Climax, Inc. and the
Oil, Chemical and Atomic Workers International Union (AFL-CIO)
(ex p ires July 1968)
1. The com pany r e s e r v e s the right to contract w ork when it does not take w ork from
the production and m aintenance unit or when m en are unavailable in the unit fo r tem porary
or seasonal jo b s to p e rfo rm the w ork when required.
2. Contracting m a jor new su rface con struction, or m a jor alterations of existing surface
fa cilitie s , excluding short connecting lines to the p ro je ct, shall not be con sid ered as taking
work from the production and m aintenance unit.
3. The follow ing underground con struction p ro je cts m ay be contracted.
Neither the
company nor the union con ced es that sim ila r p ro je cts are or are not bargaining unit w ork.
3a.

The con stru ction of a cru sh er underground.

3bc The con stru ction of any shaft or shafts for transportation of ore from under­
ground to the Storke L evel yard.
4.

The

union w ill be inform ed b efore any work is contracted.

5. The com pany shall maintain its surface maintenance and residual e le c tr ic a l crew s
unless a reduction is brought about by a curtailm ent of operations, im proved m ethods or
equipm ent, or automation.
6. A fter the con tra ctor has com pletely p erform ed the con tract, Clim ax em ployees
w ill use and m aintain the fa cility constructed.
7.

No em ployees w ill be laid off fo r the purpose of perm itting the company to contract

w ork.
8.
When the com pany tem p ora rily assigns an em ployee to p erform the w ork of a co n ­
tra cto r at C lim ax, his hourly w ork rate shall be the highest of the follow ing:
8a.

His hourly w ork rate as a C lim ax em ployee.

8b.

The hourly w ork rate of Clim ax em ployees doing the same work to which he
is tem p ora rily assigned.

8c.

The prevailing union hourly w ork rate the con tractor would have paid had his e m ­
p loyees done the w ork to which the Clim ax em ployee is tem p orarily assigned.




38
9. Any failure of the com pany to e x e r cis e any of its rights to contract out w ork shall
not constitute a w aiver or qualification of those rights as to that w ork or any other w ork.
10. The com pany may submit to arbitration the question of the com pany’ s right to
contract w ork a n d /o r the com pany m ay p roceed to contract the w ork and the union m ay submit
the question to arbitration within (5) w orkdays after notification m eeting or the day follow ing
the regu larly scheduled union m eeting w hichever is g rea ter.
F or this paragraph one of the
permanent a rb iters listed in a rticle 7 shall be selected i m m e d i a t e l y using the scratch
system , the fir s t scratch being
decided by a coin to s s .
His d ecision shall be final and
binding. F or said arbitration the grievan ce proced ure w ill not be used, and the facts w ill
not be lim ited.
11. Any prop osals submitted in negotiations on this a r tic le , nor the agreem ent of Jan­
uary 24, 1962, m odifying a rticle 5 of the old agreem ent, shall not under any circu m sta n ces
alter or affect the interpretation or application of this a rticle .

F rom the agreem ent between

Weyerhaeuser Company and the
International Woodworkers of America (AFL-CIO)
(ex p ires May 1969)
The com pany shall requ ire its con tra ctors and su b -con tra ctors to maintain the standards
of wages and working conditions provided fo r in this agreem ent, subject to the follow ing co n ­
ditions:
A . This p rovision shall not apply to a con tractor or su b -con tra ctor during the tim e
that such con tractor or su b -con tra ctor has a co lle ctiv e bargaining agreem ent with his own e m ­
p loy ees.
B. This provision shall only apply to contracts and su b -con tra cts entered into h e r e ­
after and to renew als of present con tracts which are m ade h erea fter.
C. This provision shall apply only to con tracts and su b -con tra cts fo r the perform an ce
of logging and lum bering operations and shall not apply to building construction contracts
or other con tracts outside the logging and lum bering operations th em selv es.
D. Contracts and su b -con tra cts fo r logging or w oods operations shall be made subject
to the co lle ctiv e bargaining contract of the IWA, A F L —
CIO, only if the co lle ctiv e bargaining
contract o f the IWA, A F L —
CIO, and the com pany co v e rs the w oods or logging em p loy ees.
E. C o n t r a c t s and su b -con tra cts for m ill operations shall be m ade subject to the
co lle c tiv e bargaining contract of the IWA, A F L —
CIO, only if the co lle ctiv e bargaining contract
of the IWA, A F L —
CIO, and the com pany c o v e rs the m ill em p loy ees.
F . This provision shall not apply to con tra ctors and su b -con tra ctors perform in g w ork
which was not previou sly being p erform ed by em ployees of the com pany.

F rom the agreem ent between

General Telephone Company of Michigan and the
International Brotherhood of Electrical Workers (AFL-CIO)
(ex p ires May 1969)
Section 11— Contracting W ork Out
A . The com pany re co g n iz e s and acknow ledges the right of its em ployees to p erform
its telephone w ork and in protection of this right a g rees to con fer and cooperate with the



39

union with re sp e ct to effo rts of other labor organizations to take telephone w ork from its
em ployees.
B.
Nothing in this agreem ent shall be construed to lim it the com pany in the em ­
ployment of such contract labor as in the d iscretion of the com pany m ay becom e n e ce ssa ry
for the prop er con stru ction , installation, and maintenance of com m unication fa cilitie s owned
served, a n d /o r operated by the com pany for the rendition of prop er and adequate c o m ­
m unication se r v ice to the public.
C.
W ork done by con tra cto rs shall in no way result in the laying off, part-tim ing, or
dem otion of any em ployee qualified to p erform the w ork being done.
D. When overtim e w ork by con tra ctors is authorized and con trolled by the com pany,
equal opportunity for such overtim e w ork shall be afforded those com pany em ployees n o r ­
m ally doing the same type of w ork within the same exchange in which contract labor is e m ­
ployed.
A s an exam ple, the w ork of tree trim m in g, on an extensive sca le, is a sp e cific
type of w ork not n orm ally perform ed by com pany em ployees.
E. None of the re strictio n s or lim itations ex p ressed herein shall apply to w ork done
by em ployees of an equipment m anufacturer in the cou rse of a m a jor installation, m odification
or rearrangem ent of equipment of his own m anufacture or equipment a ssocia ted with it in the
o ffice s of G eneral Telephone Company of M ichigan.

F rom the agreem ent between

National Lead Company and the
Oil, Chemical and Atomic Workers International Union (AFL-CIO)
(expires F ebru ary 1970)

It is the intention of the com pany to provide full and regular em ploym ent fo r its e m ­
ployees except during p eriod s when conditions n ecessitate reduction in plant output.
In
accord a n ce with this intention, the com pany a g rees that w ork p erform ed by m em bers of the
unit shall not be contracted out as long as the em ployer has the prop er and sufficient equip­
ment and so long as there are qualified em ployees available fro m among present a n d /or
laid o ff em ployees eligible to return to w ork under the re c a ll prov ision .
It is understood the plant cannot be staffed econ om ica lly and efficien tly fo r peak periods
of m aintenance, con stru ction , m a teria l handling, e tc ., and w ill r e s o rt to outside con tra ctors
to augment the working f o r c e , which w ill not preclude ov ertim e.
The union a g rees it does not intend fo r the company to in crea se the w ork fo r c e , pur­
chase additional, new or sp ecia l equipment fo r the sole purpose to avoid the em ploym ent of
co n tra cto rs. F u rth erm ore, it w ill not cause the com pany to w ork the present fo r c e on an
overtim e b a sis when such w ork can be con tracted out on a straight tim e b a sis.
On the other
hand, this does not preclu de present fo r c e s working ov ertim e.
The com pany w ill advise the union and discu ss the use of con tra ctors a n d /or sub­
con tra cto rs who w ill p erfo rm w ork r e fe r r e d to in Section 1, paragraph 2, on the p rem ises
p erform ed by m em b ers of the union.
Nothing in this section is intended to prevent the layoff of em ployees because of te ch ­
n ologica l im provem ents or to prevent the hiring of additional em ployees when con sid ered
n e ce ssa ry by the com pany.



40
F rom the agreem ent between

Northern and Central California Chapter, the
Associated General Contractors of America and the
Laborers' International Union of North America (AFL-CIO)
(ex p ires June 1968)

Section 11—
The te rm s and conditions of this agreem ent insofar as it a ffects em ployer and individ­
ual em ployer shall apply equally to any subcontractor under the con trol of, or working under
contract with such individual em ployer on any w ork co v e re d by this agreem ent, and said
subcon tractor with re sp e ct to such w ork shall be con sid ered the same as an individual e m ­
ployer co v e re d h ereby.
If an individual em ployer shall subcontract w ork h erein defined, such subcontract shall
state that such subcontractor a g re e s to be bound by and com ply with the term s and p r o ­
v ision s o f this agreem ent,
A su bcon tractor is defined as any person , firm or corp oration who a g rees under c o n ­
tra ct with the em p loy er, or any individual em p loy er, or a su bcontractor of the em p loy er,
or any individual em ployer to p erform on the job site any part or portion of the construction
w ork co v e re d by the prim e con tract, including the operation of equipment, perform an ce of
labor and installation of m a te ria ls.
An individual em ployer who provides in the subcontract that the subcontractor w ill pay
the w ages and benefits and w ill ob serv e the hours and all other term s and conditions of this
agreem en t, shall not be liable fo r any delinquency by such subcontractor in the payment of
any w ages or fringe benefits provided h erein, including payments required by Sections 28
(A ), 28(B) and 28(C), except as fo llo w s:
The individual em ployer w ill give written notice to the union of any subcontract in ­
volving the perform a n ce of w ork co v e re d by this agreem ent within five (5) days of entering
such subcontract, and shall sp ecify the name and add ress of the subcontractor.
If th ereafter such su bcontractor shall b ecom e delinquent in the payment of any wages
or benefits as above sp ecified , the union shall prom ptly give written notice th ereof to the
individual em ployer and to the su bcon tractor specifying the nature and amount of such d e ­
linquency.
If such notice is given, the individual
any such delinquency by such subcontractor
receip t of said n otice fro m the union, and said
claim ed to be delinquent out of the sums due
su b con tra ctor.

em ployer shall pay and satisfy the amount of
occu rrin g within sixty (60) days p rior to the
individual em ployer m ay withhold the amount
and owing by the individual em ployer to such

The individual em ployer shall not be liable fo r any such delinquency if the lo ca l union
w here the delinquency o c c u r s r e fe r s any em ployee to such subcontractor after giving such
notice and during the continuance of such delinquency.
The individual em ployer shall not be liable for any such delinquency occu rrin g m ore
than sixty (60) days p rio r to receip t of written notice from the union.




A ppendix B.

Identification o f Clauses

E m ployer and union
1
2

3

4
5
6
7
8

9
10

11
12

13
14
15
16
17
18
19
20
21

22

23
24
25
26

Sam sonite C orporation
Rubber W ork ers (URW)
N orfolk Shipbuilding and D rydock C orporation
B oilerm a k ers (BBF)
Burroughs C orporation
Auto W orkers (UAW) (ind. )
C am eron Iron W orks, Inc.
M achinists (IAM)
G eneral E le ctric Company
E le c tr ic a l, International (IUE)
Building Maintenance E m ployers A ssocia tion
S ervice E m ployees (SEIU)
G eneral Telephone Company of Indiana
Com m unications W orkers (CWA)
Houston Lighting and P ow er Company
E le c tr ic a l, B rotherhood (IBEW)
Potlatch F o r e s ts , Inc.
W oodw orkers (IWA)
G lass Containers M anufacturers Institute, Inc.
G lass Bottle B low ers (GBBA)
Hupp C orporation— G ibson R efrig era tor D ivision
Auto W orkers (UAW) (in d .)
A llis-C h a lm e rs Manufacturing Company
Steelw orkers (USA)
National Steel C orporation — Great Lakes Steel
D ivision
S teelw orkers (USA)
A m erica n M etal C lim ax, Inc.
Oil, C hem ical and A tom ic W orkers (OCAW)
Lockheed A ir c r a ft C orporation— Lockheed -C aliforn ia
D ivision
M achinists (IAM)
Bethlehem Steel C orporation
Steelw orkers (USA)
St. Joseph Lead Company
S teelw orkers (USA)
I /A C aliforn ia Cement Companies
Cement W ork ers (CLGW)
Iroqu ois Gas C orporation
E le c tr ic a l, B rotherhood (IBEW)
I /A R etail F ood and Liquor Stores
Retail C lerks (RCIA)
G eneral Telephone Company of M ichigan
E le c tr ic a l, B rotherhood (IBEW)
H olly Sugar C orporation
G rain M ille rs (AFGM)
G reater St. Louis Autom otive A ssocia tion
M achinists (IAM)
I /A Ice C ream D rivers
T eam sters (IBT) (ind. )
K earney and T re ck e r C orporation
E m ployees Independent Union (Ind. )
Rohr C orporation
M achinists (IAM)




41

42
Clause
number
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55

Employer and union
North A m erica n Aviation, Inc.
A u to W o rk e rs (UAW) (Ind.)
B altim ore Transit Company
Transit Union, A m algam ated (ATU)
Lockheed A ir c r a ft C orporation— L ock h eed-G eorgia D ivision
M achinists (IAM)
National Castings Company
Auto W orkers (UAW) (ind. )
N ational Broadcasting Company
B roadcast E m ployees and Technicians (NABET)
B ird sb o ro C orporation
Steelw orkers (USA)
T or ring ton Company
Auto W ork ers (UAW) (Ind. )
Crown Z elle rb a ch C orporation
P aperm akers and P a p erw ork ers (UPP)
Brooklyn Union Gas Company
T ran sp ort W orkers (TWU)
C a rrie r C orporation— E lliott D ivision
Steelw orkers (USA)
P a c ific M aritim e A sso cia tio n
M arine E n gin eers' (MEBA)
P le a te rs, S titch ers, and E m b roid ers A sso cia tio n , Inc.
Garm ent W ork ers, Ladies'(ILG W U )
A m erica n M illin ery M anufacturers A ssocia tion , Inc.
Hatters (HCMW)
Cartage of C hicago, Inc. Illin ois M otor Truck O perators
A sso cia tio n , Inc. , Central M otor F reight A ssocia tion
M achinists (IAM)
National Lead Company— D o e h le r-J a rv is D ivision
Auto W orkers (UAW) (Ind. )
Monsanto C hem ical Company
M etal Trades Council
Sperry-R an d C orporation
E le c tr ic a l, International (IUE)
M ack T ruck, Inc.
Auto W ork ers (UAW) (Ind.)
N ational Lead Company
O il, C hem ical and A tom ic W ork ers (OCAW)
National Lead Company— Titanium D ivision
P ain ters and Paperhangers (BPDP)
Southern Counties Gas Company
C hem ical W ork ers (ICW)
Stuffed Toy M anufacturers A sso cia tion
T oy W orkers (IDTW)
K oils man Instrum ent Company
M achinists (IAM)
U pholstery E m ployers A sso cia tio n
U p h olsterers' (UIU)
Humble Oil and Refining Company
Independent Industrial W ork ers (in d .)
B org W arner C orporation— G ear D ivision
Auto W orkers (UAW) (In d .)
B u cy ru s-E rie Company
Steelw orkers (USA)
Boston Gas Company
D istrict 50 Mine W ork ers (UM W-50) (Ind.)
East Ohio Gas Company
S ervice E m ployees (SEIU)




Expiration
date
Septem ber 1968
Septem ber 1968
July 1968
F ebruary 1968
M arch 1970
O ctober 1969
May 1970
July 1970
M arch 1968
M arch 1968
July 1969
F ebru ary 1970
D ecem ber 1968
A p ril 1970
June 1968
May 1970
June 1970
O ctober 1967
F ebruary 1970
M arch 1969
M arch 1969
June 1970
June 1968
August 1968
A p ril 1969
O ctober 1967
August 1970
O ctober 1969
June 1969

Employer and union

57
58
59
60
61
62
63
64
65
66
67
68

69
70
71
72
73
74
75
76
77
78
79
80
81
82

A m erica n Telephone and Telegraph Company— Long Lines
C om m unications W ork ers (CWA)
K ellogg Company
Grain M ille rs (AFGM)
G eneral Telephone Company of C alifornia
Com m unications W ork ers (CWA)
Leeds and N orthrup Company
Leeds and N orthrup E m p lo y e e s’ (Ind. )
United Better D ress M anufacturers A ssocia tion , Inc.
G arm ent W ork ers, L a d ies’ (ILGWU)
New Y ork Coat and Suit A sso cia tion , Inc.
Garm ent W ork ers, L a d ie s’ (ILGWU)
Continental Oil Company
Oil W ork ers of Oklahoma (in d .)
Realty A d v iso ry B oard on L abor R elations, Inc.
S ervice E m ployees (SEIU)
Sinclair Refining C orporation
Oil, C hem ical and A tom ic W ork ers (OCAW)
A sso cia tio n o f Rain A pparel C on tractors of New Y ork
and New J ersey
Garm ent W o rk e rs, L a d ie s’ (ILGWU)
National Skirt and Sportsw ear A ssocia tion , Inc.
G arm ent W o rk e rs, L a d ie s’ (ILGWU)
W orthington C orporation
S teelw orkers (USA)
The P eoples Gas Light and Coke Company
S ervice E m ployees (SEIU)
Pennsylvania E le ctric Company
E le c tr ic a l, B rotherhood (IBEW)
Brown Company— 3 plants
Pulp (PSPMW )
C onsum ers P ow er Company
Utility W ork ers (UWU)
Oxford Paper Company
P aperm a kers and P a p erw ork ers (UPP)
Pittsburgh Plate G lass Company
A llied C hem ical and A lkali (In d .)
L ibbey-O w ens -F o r d G lass Company
G lass and C eram ic W ork ers (UGCW)
S ch iffli L ace and E m b roid ery M anufacturers A ssocia tion
T extile W o rk e rs, United (UTWA)
Cook County A sso cia tio n of Plum bing, Heating and
Cooling C on tractors
Plum bing (P P F )
A sso cia te d G eneral C on tractors, N orthern and
Central C aliforn ia
C arpenters (CJA)
A ss o cia te d Building C on tractors o f C olorado
C arpenters (CJA)
I /A G eneral Trucking A greem en t of
New J e rse y -N e w Y ork
T ea m sters (IBT) (Ind. )
B uilders A sso cia tio n of Chicago
B rick la y e rs (BMP)
A ss o cia te d G eneral C on tractors of Oregon and
Southwest Washington
Carpenters (CJA)
A llie d U nderwear A sso cia tio n
G arm ent W o rk e rs, Ladies'(ILG W U )




44
Clause
num ber
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
*
108
109

Expiration
E m ployer and union
San F ra n cisco Hotel A sso cia tio n
Hotel and Restaurant E m ployees (HREU)
Midtown Realty Owners A sso cia tion , Inc.
S ervice E m ployees (SEIU)
G eneral C on tractors A sso cia tio n of B ridgeport, Inc.
C arpenters (CJA)
A sso cia te d G eneral C on tractors and Other A ssocia tion s
Phoenix Building T rades Council
A sso cia te d G eneral C on tractors of San Diego
E n gin eers, Operating (IUOE)
F lorid a P ow er C orporation
E le c tr ic a l, Brotherhood (IBEW)
P ublic S erv ice Company of C olorado
E le c tr ic a l, Brotherhood (IBEW)
Heavy C on stru ctors A sso cia tio n of the
G reater Kansas City A rea
L a b orers (LIUNA)
Litton Industries— Ingall Shipbuilding C orporation
M etal T rades Department
United States Steel C orporation— A m erican Bridge
D ivision
Steelw orkers (USA)
Oregon Draym en and W arehousem en’ s A ssocia tion
T eam sters (IBT) (ind. )
G eneral Dynam ics C orporation— E le ctric Boat
D ivision
M arine and Shipbuilding W ork ers (IUMSW)
R och ester Telephone Company
Com m unications W orkers (CWA)
B riggs and Stratton C orporation
Industrial W ork ers, A llied (AIW)
W arw ick E le ctro n ics, Inc.
E le ctrica l, International (IUE)
A llied C onstruction E m p lo y e rs’ A ssocia tion
C arpenters (CJA)
M erit Clothing Company Inc.
Clothing W ork ers (ACWA)
A ssocia ted Roofing C on tractors of the Bay A rea
R oofers (RDWW)
U niform s M anufacturers Exchange
Clothing W ork ers (ACWA)
I /A Sportsw ear Industry
Garm ent W ork ers, Ladies* (ILGWU)
Needle T rades E m ployers A sso cia tion
Garm ent W ork ers, L adies’ (ILGWU)
A ssocia ted G eneral C on tractors of St. Louis
L a b orers (LIUNA)
H artford G eneral C on tractors A ssocia tion
L a b orers (LIUNA)
Building T rades E m p lo y e rs’ A ssocia tion
of R och ester
L a b o re rs (LIUNA)
G eneral Telephone of W isconsin
Com m unications W orkers (CWA)
A sso cia te d G eneral C on tractors of St. Louis
Iron W ork ers (BSOIW)
The Plumbing and Pipe Fitting Industry of
the State of Washington
Plumbing (PPF)




date
D ecem ber 1970
F ebruary 1969
June 1969
May 1970
May 1969
O ctober 1967
May 1968
July 1969
F ebruary 1968
July 1968
July 1970
M arch 1969
M arch 1970
July 1969
January 1969
May 1968
May 1968
July 1968
May 1968
August 1970
January 1970
A p ril 1969
M arch 1970
A p ril 1970
January 1970
A p ril 1969
May 1968

Employer and union

no

in
112
113
114
115
116
117
118
119
120
121

122

123
124
125
126
127
128
129
130
131
132

133

A ssocia ted G eneral C on tractors of A m e rica , San Diego
Building C on tra ctors, Engineering and Grading C ontractors
A sso cia tio n , Inc. , San D iego Chapter
Building and C onstruction T rades Department,
T eam sters (IBT) (In d .)
Heavy C onstruction A sso cia tio n of
the G reater Kansas City A rea
E ngineers, Operating (IUOE)
The N egligee M anufacturers A sso cia tion of New Y ork, Inc.
Garm ent W ork ers, Ladies'(ILG W U )
A ssocia ted G eneral C ontractors
of A m e rica — Southern Nevada
Building and C onstruction T rades Department
Belt A sso cia tio n , Inc.
Garm ent W ork ers, Ladies'(ILG W U )
A ssocia ted Garm ent Industries of St. Louis— D ress Branch
Garm ent W ork ers, Ladies'(ILG W U )
L in gerie M anufacturing A ssocia tion
Garm ent W o rk e rs, Ladies'(ILG W U )
Southern C alifornia G eneral C ontractors
E ngineers, Operating (IUOE)
Plum bing, Heating and Piping E m ployers Council of
Southern C alifornia
Plumbing (P P F )
New J e rse y W ashable D ress C on tractors
Garm ent W o rk e rs, Ladies'(ILG W U )
A sso cia te d G eneral C on tra ctors, Inc. , Building, Heavy,
Highway and Engineering C on structors
L a b orers (LIUNA)
New Y ork Industrial Council of the
National Handbag A ssocia tion
Leather G oods, P la stic and
N ovelty W ork ers (LGPN)
L os A ngeles County P ainters and D ecora tors Joint Com m ittee
P ainters and Paperhangers (BPDP)
A sso cia te d C on tractors o f E ssex County, Inc.
C arpenters (CJA)
M ason C on tra ctor's Exchange o f Southern C alifornia
L a b o re rs (LIUNA)
T elevision F ilm Labor A greem ent
M usicians (AFM)
M aster Builders A sso cia tio n o f B ergen County, New J e rse y
Carpenters (CJA)
M en 's N eckw ear A sso cia tio n of New Y ork, Inc.
Clothing W ork ers (ACWA)
A sso cia te d G eneral C on tractors of A m erica
P la s te r e r s ' and Cement M ason s' (OPCM)
A sso cia te d G eneral C on tractors of C alifornia
L a b orers (LIUNA)
New England Road B uilders
L a b orers (LIUNA)
Popular P rice d D ress M anufacturers' Group, Inc.
Garm ent W ork ers, Ladies'(ILG W U )
Infants' and C hildren's Coat A sso cia tion , Inc. ,
and M anufacturers of Snowsuits, N ovelty W ear,
and Infants' C oats, Inc.
Garm ent W ork ers, Ladies'(ILG W U )
I /A Retail G ro ce ry Industry
R etail C lerks (RCIA)




Employer and union
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161

Plum bing, Heating and Piping E m p loy ers' Council
of N orthern C alifornia
Plumbing (P P F )
The A m algam ated Sugar Company
G rain M ille rs (AFGM)
O w en -Illin ois, Inc.
G lass Bottle B low ers (GBBA)
Phoenix Steel C orporation
Steelw orkers (USA)
F ireston e T ire and Rubber Company
Rubber W ork ers (URW)
Maytag Company
Auto W ork ers (UAW) (In d .)
New England Road B uilders A sso cia tion of M assachusetts
T eam sters (IBT) (Ind. )
Todd Shipyards C orporation
M arine and Shipbuilding W ork ers (IUMSW)
C h rysler C orporation— A irtem p D ivision
E le c tr ic a l, International (IUE)
A nchor Hocking G lass C orporation
G lass W o rk e rs' , Flint (AFGW)
A . E. Staley M anufacturing Company
Industrial W ork ers, A llie d (AIW)
Lockheed A ir c r a ft C orporation— M is s ile s
and Space D ivision
A u to W o rk e rs (UAW) (Ind.)
R ockw ell-Standard C orporation
Auto W orkers (UAW) (Ind. )
F ord M otor Company
Auto W orkers (UAW) (Ind. )
L abor Relations A d v isory A sso cia tion
T eam sters (IBT) (Ind. )
G raphic A rts E m ployers A sso cia tion
of San F ra n cisco
Lithographers and P hotoen gravers (LPIU)
Boeing Company
Seattle P ro fe ssio n a l Engineering A ssocia tion (Ind.)
W iscon sin Public S ervice C orporation
E n gin eers, Operating (lUOE)
Eaton Manufacturing Company
Auto W ork ers (UAW) (Ind. )
Eastern P rodu cts C orporation
Furniture W orkers (UFW)
International H arvester Company
Auto W orkers (UAW) (Ind. )
Pennsylvania P ow er and Light Company
E m ployees Independent A sso cia tion (in d .)
Alabam a D ry Dock and Shipbuilding Company
M arine and Shipbuilding W ork ers (IUMSW)
I /A Sugar Plantation Com panies
L on gsh orem en 's and W arehousem en's (ILWU)
Ohio C on tractors A sso cia tio n
T eam sters (IBT) (In d .)
Calum et and H ecla, Inc.
S teelw orkers (USA)
White M otor Company
Auto W orkers (UAW) (Ind. )
F riden , Inc.
M achinists (IAM)




47
Clause
number
162
163
164
165
166
167
168
169
170

Employer and union
Central States A rea L o ca l Cartage A greem ent
T ea m sters (IBT) (Ind. )
L in g -T em co-V ou g h t, Inc.
Auto W orkers (UAW) (Ind. )
National E le c tr ic a l C on tractors A ssocia tion , Inc. ,
St. Paul Chapter
E le c tr ic a l, B rotherhood (IBEW)
C onstruction Industry E m p lo y e rs’ A ssocia tion of Buffalo
Carpenters (CJA)
N ational A sso cia tio n o f B louse M anufacturers
G arm ent W o rk e rs, L a d ies’ (ILGWU)
A ssocia ted Fur M anufacturers, Inc.
Meat Cutters (MCBW)
A ssocia ted G eneral C on tractors of N orthern
and Central C alifornia
C arpenters (CJA)
J e rse y Central P ow er and Light Company
and New J e rse y P ow er and Light Company
E le c tr ic a l, B rotherhood (IBEW)
N arragansett E le ctric Company
Utility W ork ers of New England (In d .)

Expiration
date
M arch 1970
N ovem ber 1968
May 1969
May 1969
May 1970
F ebruary 1969
June 1968
O ctober 1969
M arch 1968

NOTE: A ll unions are affiliated with the A F L -C IO except those follow ed by (Ind.)







The Bulletin 1425 series on major collective bargaining agreements is available from the Super­
intendent of Documents, U. S. Government Pointing Office, Washington, D. C ., 20402, or from the
BLS Regional Offices, as shown on the inside back cover.

Bulletin
number

Price

Major Collective Bargaining Agreements:
1425-1

Grievance Procedures

45 cents

1425-2

Severance Pay and Layoff Benefit Plans

60 cents

1425-3

Supplemental Unemployment Benefit Plans
and Wage-Employment Guarantees

70 cents

1425-4

Deferred Wage Increase and Escalator Clauses

40 cents

1425-5

Management Rights and Union-Management
Cooperation

60 cents

Arbitration Procedures

$1

1425-6

For a list of other industrial relations studies, write for A Directory of BLS Studies in Industrial
Relations, 1954—
65.




* U S. GOVERNMENT PRINTING OFFICE : 1 9 69 0 - 3 3 8 - 2 4 9

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