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BULLETIN NO. 1574

MANPOWER
PLANNING
FOR
TECHNOLOGICAL
CHANGE

CASE
STUDIES
OF
TELEPHONE
OPERATORS

STATISTICS




MANPOWER
PLANNING
FOR
TECHNOLOGICAL
CHANGE
Case
Studies of
Telephone
Operators
B U L L E T IN N O . 1574

U N ITED S TATES D EPAR TM EN T OF LABOR
Willard W irtz, Secretary

BUREAU OF LABOR S TA TIS TIC S
A rth u r M. R oss, C om m issioner

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 2 0 4 0 2 - Price 30 cents







PREFACE
T e c h n o l o g i c a l ch a n g es a r e a s t r a t e g ic f a c t o r in the grow th of the e c o n o m y .
T h ese a d v a n ce s , h o w e v e r , m a y be a c c o m p a n ie d by d is p la c e m e n t o f l a b o r , shifts in
lo c a t io n of j o b s , and ch a n ges in s k ill r e q u i r e m e n t s . If e f f o r t s a re m a d e to m anage
ch a n ges in an o r d e r l y w ay, a d v e r s e e ff e c t s on the status and s e c u r i t y of individual
e m p l o y e e s can be s ig n ifica n tly re d u c e d .
T his b u lletin d e s c r i b e s the m a n p o w e r p o l i c i e s and e x p e r i e n c e s of s e v e r a l
telephone c o m p a n i e s in cu sh ion in g the im p a c t of t e c h n o l o g i c a l change on th eir e m ­
p l o y e e s . This a cco u n t of the b e n efits and p r o b l e m s o f m a n p o w e r planning by these
c o m p a n ie s should have value f o r o t h e r s who a re planning to in tro d u c e m a j o r ch a n ges
in their own o f f i c e s or plants.
This bulletin is one in a s e r i e s of c a s e studies o f m a n p o w e r planning f o r
t e c h n o l o g i c a l change. O ther stu dies c o v e r the e x p e r i e n c e s of a g o v e rn m e n t a g e n c y
and an e l e c t r i c p o w e r co m p a n y .
This study is b a s e d on in fo r m a t io n c o l l e c t e d through in t e r v ie w s with co m p a n y
o f f ic i a l s and o f f i c e r s of the e m p l o y e e s ’ union, and on d o cu m e n ts and data f r o m c o m ­
pany f i l e s . The Bureau o f L a b o r S ta tistics is d e e p ly g r a te fu l f o r th eir a s s is t a n c e
and c o o p e r a t i o n .
Data w e r e c o l l e c t e d f o r this study by R ic h a r d R ich e and H e r b e r t H a m m e r m a n ,
and the r e p o r t was w ritten by A u d r e y F r e e d m a n , under the s u p e r v i s i o n of E d ga r
W e in b e rg , C h ief, D iv is io n of T e c h n o l o g i c a l Studies. T h e s e studies a r e p a rt of the
B u r e a u ’ s r e s e a r c h p r o g r a m on p r o d u c t iv it y , t e c h n o lo g y , and grow th, u n d er the
g e n e r a l d i r e c t i o n of J e r o m e A. M ark , A s s is t a n t C o m m i s s i o n e r .




111




Table of Contents

Chapter I. I n t r o d u c t i o n ................................................................................................................

P age
1

C hapter II. S u m m a ry and h i g h l i g h t s ...................... ... ......................................................

3

Chapter III. M a n pow er and telephone t e c h n o l o g y ................... ......................................
E m p lo y m e n t in the in d u stry ..........................................................................................
C o l l e c t i v e b a r g a i n i n g ...............................................................
T e c h n o l o g i c a l cha nges a ffe c tin g o p e r a t o r s . ............................. ............................
M a npow er outlook . . . . . ...............................................................................................

5
5
5
5
6

Chapter IV. M a npow er planning p o l i c y . ................................................................... ...
A dva n ce p la n n in g ...................................................................................................................
E s tim a te of w ork f o r c e r e q u i r e m e n t s ...............................................
A dva n ce n otice and c o n s u l t a t i o n ................................................................................ .
A p p lica tio n of a t t r i t i o n ......................................................................................................
T r a n s f e r s and r e a s s i g n m e n t ..........................................................................................
R e t ir e m e n t p r o g r a m s .........................................................................................................
S e v e ra n ce p a y .........................................................................................................................
A s s i s t a n c e in finding a jo b outside the telephone i n d u s t r y .............................
T ra in in g and r e t r a i n i n g ...................................................................................................
R e h irin g r i g h t s ......................................................................................................................

7
7
8
8
9
9
10
10
11
11
11

C hapter V. M a n pow er planning in o p e ra tio n : F o u r c a s e s t u d i e s ................... ... .
T e c h n ic a l p r e p a r a t io n s and m a n p o w e r p la n n i n g ...................................................
A dva n ce n o t i c e ......................................................................................................................
U n io n -m a n a g e m e n t n e g o t i a t i o n s ...................................................................................
E m p lo y e e i n t e r v i e w s .........................................................................................................
Use of a t t r i t i o n ...............
T r a n s f e r s ................................................................................................................................
L a y o ff and s e v e r a n c e p a y ............................
C om p a n y help in finding other j o b s .............................................................................
R e t r a i n i n g ...............
U pgrading and d o w n g r a d i n g ...............................
O ld e r w o r k e r a d j u s t m e n t ................................................................................................

13
13
14
14
18
18
19
20
21
21
21
21

A p p e n d ix e s :
A. Union c o n t r a c t p r o v i s i o n s at o f f ic e B ...................................
B. S e le cte d b ib lio g r a p h y on adjusting to t e c h n o l o g i c a l c h a n g e ...................




v

23
33




Chapter I.

Introduction

In its consideration of the benefits and
problems of automation and other techno­
logical changes, the President’ s AdvisoryCommittee on Labor-Management Policy,
a tripartite group of labor, management,
and public leaders, unanimously agreed on
three general points in 1962: “First, auto­
mation and technological progress are e s­
sential to the gneral wefare, the economic
strength, and the defense of the Nation.
Second, this progress can and must be
achieved without the sacrifice of human
values and without inequitable cost in terms
of individual interests. Third, the achieve­
ment of maximum technological develop­
ment with adequate safeguards against eco­
nomic injury to individuals depends upon a
combination of private and governmental
action consonant with the principles of a
free society.” 1
J

s e p a r a t i o n s re suiting from retirement,
quits, and so forth).” The Committee also
recommended that “ private employers and
unions f a c e d with automation or techno­
logical changes should make every reason­
able effort to enable workers who are being
displaced, and who need to be retrained, to
qualify for new jobs available with the same
employer and to enjoy a means of support
while so engaged.”
Following this report, the President’ s
Committee sponsored several meetings of
management and labor representatives to
discuss the benefits and problems of private
adjustment methods. In a summary of the
major conclusions of the discus sions, it was
stated: “ Diversity is the key to any consid­
eration of private adjustment techniques...
the private adjustments utilized in any
situation are heavily dependent upon the size
of the firm, the size of the union, the extent
of the organization of the industry or the
nature of the labor market. Also, adjustment
methods are dependent upon the kind of eco­
nomic processes that are contributing to the
changes that cause displacement as well as
the economic health of the industry. Finally,
different approaches must be developed to
meet the specific demands of the labor force
in terms of age, sex, skill level, basic edu­
cation geographic location, etc.”_2
/

Specifically, the Advisory Committee
recommended, among other measures, that
serious consideration be given to “accept­
ance by management of responsibility for
taking measures, to the maximum extent
practicable, for lessening the impact of
technological change, including (a) adequate
leadtime, (b) open reporting to the employ­
ees involved, (c) cooperation with repre sentatives of the e m p l o y e e s to meet the
problems involved, (d) cooperation withpublic employment services, (e) the timing of
changes, to the extent possible, so that
potential unemployment will be cushioned
by expected expansion of operations and nor­
mal attrition in the work force (through

The Bureau of Labor Statistics has made
case studies in several different industries
which describe experiences with manpower
planning that follow the Committee’ s general
guidelines. Additional studies have been rec­
ommended by students of labor in the United
States and international bodies such as the
Organization for Economic Cooperation and
Development. In 1966, the National Com­
mission on Technology, Automation and

\J The Benefits and Problems Incident to
Automation and Other Technological Ad-*
1
cances, President’ s Advisory Committee on
Labor-Management Policy, January 11,1962,
11 pp.
Excerpts from this report appear in the
Monthly Labor Review, February 1962,
pp. 139-144.




2 / Seminars on Private Adjustments to
Automation and Technological Change, MayJune 1964, President’ s Advisory Committee
on Labor-Management Policy, p. A -4.

1

Economic Progress stated “Because of the
dearth of available information, we suggest
that the Department of Labor and the Depart­
ment of Commerce systematically investi­
gate and report publicly on successful
private adjustment programs d< ' e l o p e d
through either collective bargaining or the
unilateral efforts of management. This
would not only add to the present store of
general knowledge about the adequacy of
adjustment coverage, but would alsopermit
more extensive communication about effec­
tive adjustment programs among and be­
tween employers, employees, and unions.”3 /

This report de scribes the manpower plan­
ning policies of several companie s within the
Bell Telephone System and the operation
and results of these policies in several cases
of conversion from manual to long distance
dial ttl< phone systems. The companies were
selected because they had made deliberate
efforts to plan the orderly adjustment of
employees.
This bulletin was based on case studies
and union contracts records and documents
presenting company policies in dial conver­
sions. F our conversions in three states were
surveyed: one located in a large city, and
three in small towns. Officials of the com ­
panies, and unions representing the employ­
ees, were interviewed to supplement the
information obtained from records and
documents.

_3/ Technology and the American Eco­
nomy, Report of the National Commission
on Technology, Automation, and Economic
Progress, Vol. I, February 1966, p. 60.




2

Chapter II. Summary and Highlights

Over many decades, changing technology
has been a major characteristic of the tele­
phone industry. To facilitate the orderly
introduction of changes affecting operators,
the major telephone companies developed
a systematic program to minimize pos sible
adverse affects on employees.

revised as conditions changed. A second
major feature was the ability of each office
in the study to broaden the scope of its
manpower planning to take account of op­
portunities in other departments and in
nearby offices and towns to which displaced
employees could transfer.

Nature of the Change

Advance Notice

Technological change in the four case
studies involved the introduction of fully
automatic telephone switching equipment,
for both long distance and local calls, which
drastically reduced the need for local man­
ual telephone operators. All of these em­
ployees were women. Engineering and in­
stallation of the equipment required several
years of advance planning. This long leadtime afforded opportunities for manpower
planning, retraining, and application of var­
ious adjustment teclmiques.

The unions and employees were notified
many months before the change was sched­
uled to take place. Employees were inform­
ed about transfer and training opportunities,
and the number of employees who would con­
tinue as operators, several months before
the conversion. Personal interviews were
then held to i n f o r m each employee of
options available to her, and to motivate her
to plan her own future and determine her
choice.
Union-Management Negotiations

Manpower Planning
Union contracts, in the case study com­
panies, provide for early notice to the union
and negotiation of force reduction moves.
Union-management meetings held during the
preconversion period provided a means for
direct communication between employees
and management about the change and the
employees affected. They also led to discus­
sions of alternative plans for layoffs or part
timing. In most cases, the unions were con­
cerned with enforcing the role of seniority
in all manpower adjustment measures.

A formal systemwide policy on manpower
planning in dial conversions had existed for
several decades prior to the changes. Fairly
detailed guidelines for coordinating tech­
nical and manpower changes were set forth
In a comprehensive policy document. The
objectives of manpower planning were: to
retain as many employees as possible, to
provide “ suitable” transfer, to avoid down­
grading employees, and to avoid a surplus
work force. In practice, local management
adapted the general policy guidelines to fit
the particular circumstance s of the individ­
ual town or office.

Use of Attrition and Controlled Hiring
In order to reduce employment through
attrition, the companies instituted strict
control over hiring at an early date. Hiring
of permanent employees ceased 1 year or
more before conversion. As losses from
quits and retirements reduced the regular
work force, temporary employees were
hired; overtime was scheduled; and vaca-

A major feature in planning these cases
was the development, in advance, of esti­
mates of the number of operator s who would
be needed after the change, and the number
of operators for whom some adjustments
would be necessary (retirement, transfer,
etc.). These estimates were periodically




3

tions, retirements, and leaves of absence
were postponed in order to maintain the
level of available man-hours without hiring
regular employees. Despite these efforts to
retain all employees and a relatively high
rate of voluntary turnover among women
workers, it was necessary for some em ­
ployees to transfer or be laid off in each of
the offices studied.

increased
vacancies.

turnover

created

Training and Retraining
The manual telephone operators who were
displaced by new equipment were most
easily retrained to long distance, informa­
tion, or intercept operating. All were offered
this retraining, and all but a few were able
to learn the new procedures. Some retrain­
ing was also given in clerical jobs in other
departments but none for outside jobs.

Transfer and Reassignment
Transfer to other offices were offered to
all regular employees who would not have a
job after cutover. Employees who trans­
ferred maintained their seniority for pur­
poses of job security and pension and other
benefit rights, including vacation length. The
transfers were arranged, in most cases, to
offices with the same or a higher wage rate.
In one case study, both management and the
union were concerned that the transfer of a
large number of employee s, who had a decade
or more of seniority, would adversely affect
the choice of shift and vacation dates of em­
ployees in the receiving offices.

Older Workers
Individual interviews and advance notice
were particularly helpful to older employ­
ees, by allowing sufficient time for individ­
ual adjustment to occur. Training, also, was
flexible enough to permit the older worker
to learn more slowly, or to take less de­
manding intercept positions. Since sever­
ance pay was based on length of service,
older workers who could not retire were
given a relatively large lump sum at layoff.
This proved important to the older worker
who was unable to relocate.

Layoff, Severance Pay, and Rehiring Rights

Coordination With Public Agencies

B e c a u s e family responsibilities pre­
cluded transferring to telephone openings in
other towns, some women accepted layoff
with severance pay, the only other option
open to them. Severance benefits were paid
to nearly all of the regular employees who
could not transfer. In accordance with the
understanding made at the time of hiring,
none of the temporary employees who were
laid off received severance pay. Contracts
covering three of the case study offices
provided that regular employees on layoff
for less than a year should receive pref­
erence, in order of seniority, if additional
hiring should take place in jobs for which
they qualify. Some laid-off operators were
rehired under this provision, as business




and/or

Although, in one case, the company at­
tempted to obtain jobs in another plant for
some employees who were laid off, none of
the case study offices notified or worked
with public agencies in advance or during
the changeover. The offices acted to min­
imize employee a d j u s t m e n t problems
through internal planning, but their greatly
reduced operator requirements reduced
openings in each community for young, un­
skilled, female high school graduates. To
this extent, the problems of vocational
guidance, placement counseling, and job
creation were increased for public agencies
in these communities.

4

Chapter III. Manpower and Telephone Technology

This chapter describes the telephone in­
dustry, its work force, and the types of
technological change which affect telephone
operators. It presents the background from
which the manpower policy (described in
Chapter IV) has been developed.

Today, telephone operators make up close
to 200,000 employees or about 28 percent of
the industry’ s work force. About two-thirds
handle toll calls exclusively; about a fifth
provide information on all type s of calls; and
the rest handle intercept calls (wrong num­
ber, number changed, etc.) and other types of
special services.

Employment in the Industry
The telephone communication industry
employed over 800,000 persons in mid 1967,
making it one of the largest industries in the
Nation. Although employment has increased
since 1964, the trend in employment between
1957 and 1963 was downward. Future pros­
pects are for a stable or slightly rising
level of employment over the next decade.

Collective Bargaining
Most of the workers in the industry are
covered by collective bargaining agree­
ments, negotiated company by company.
Although there are about 2,500 operating
companies in the industry, about 85 percent
of all employees work for the BellSystemof
23 companies, each of which provides serv­
ice to one State or more. The leading union
is the Communications Workers of America,
AFL-CIO, which encompasses all crafts and
departments and represents a majority of
nonsupervisory workers in the industry.
The International Brotherhood of Electrical
Workers, AFL-CIO, represents selected
departments in some companies. A large
number of independent unions typically repr e s e n t one department in one company.
Some have formed federations or alliances.

Employment in a typical company may be
classified into five broad groups: About 40
percent are employed in the Plant Depart­
ment, which installs and maintains wire,
cable, telephones, and maintains central
office equipment; one-third are in the Traf­
fic Department, which provides service to
customers placing calls; one-tenth are in the
Commercial Department, which handles
sales and collections; less than one-tenthare
in the Accounting Department; and about
one-tenth are in the managerial and profes­
sional group.

Union locals may be organized along de­
partmental dines, i.e ., separate plant, traf­
fic, commercial, and accounting locals in
each town. In some companies, all workers
in one town may belong to the same local.

Women constitute over half of the work
force. They are concentrated in the Traffic
Department and in clerical jobs in Plant,
Commercial, and Accounting Departments.
The Traffic Department hires young girls
mostly from high school, trains them as
operators, and promotes some to service
assistant, assistant chief operator, and
chief operator. Turnover is high among
telephone operators, particularly in the first
2 years of service. After the second year of
service, the proportion of women who re­
main in the company for very long periods
rises sharply.




Contract provisions about wage rates,
call-in pay, night-work differentials, term i­
nation pay, and holidays vary among com­
panies. The noncontributory retirement and
disability pl a n , however, is the same
throughout the Bell System.
Technological Changes Affecting Operators
The telephone industry has undergone
several major technological changes in over

5

calls--distant as well as local--w ere being
made without any operator assistance, some
special services--person-to-person, credit
card, and collect calls, information and
intercept--still require human intervention.
For each of these types of calls, operator
man-hours are being reduced by installation,
of semiautomatic, sometimes computerassisted, equipment. All of the changes in
operating methods drastically reduced man­
hours per call but made no change in the in­
dustry’ s practice of hiring untrained women.

75 years of its history. These changes have
emerged from extensive research and de­
velopment programs and long-term tech­
nical planning that are characteristic of the
industry. Rapid expansion of service also
has taken place; between 1920 and 1966, the
number of telephones operated by the largest
system increased tenfold, the number of
calls increased ninefold.
One of the first major changes was local
dial conversion. First introduced in the
1920’ s, dial conversions were made grad­
ually, central office by central office. By
1930, nearly a third of all Bell telephones
were equipped for local dialing; by 1940,
about 60 percent were dial. At the present
time, virtually all United States telephones
are dial.

Manpower Outlook
In the future, very rapid expansion is ex­
pected in data transmission utilizing tele­
phone company facilities. Overseas and
domestic toll calls will grow rapidly, as will
special services to business users.

As operator handling of local calls was
eliminated, a series of changes also re­
duced the amount of operator time required
for long distance toll service. First, during
the late 1940’ s toll operators began to dial
the long-distance telephones rather than
make connections manually connecting with
numerous other long-distance operators and
tieing together a route to the distant city.
Because of operator long-distance dialing,
the originating operator could handle the
call more quickly. For many calls (depend­
ing upon the route and traffic conditions),
the assistance of other operators along the
call’ s route was eliminated.
The second innovation, in toll call han­
dling, “m ark-sensing,” not only saved op­
erator time, but also saved clerical man­
hours in the Traffic and Accounting Depart­
ments. The toll operator rapidly marked
punch cards (to indicate calling number and
called number) rather than prepare a tim econsuming, handwritten record. Clerical
time was saved because the marked card
could be machine-read (“sensed” ) and tab­
ulated. Mark-sensing required the retrain­
ing of tens-of-thousands of toll operators.

The relative proportion of telephone
operators in the industry’ s employment will
probably continue to decline over the next
decade. Local- and long-distance dialing
have already reduced the proportion of op­
erators from over half of total telephone
employment in 1945 to 28 percent in 1966.
By 1975, operators may constitute a little
over one-fifth of total employment. Although
employment will also be lower, the industry
will need to hire many women to replace
operators who quit or retire and, in some
areas, to meet growing demand for services.
By 1975, most telephone operators will
be working at new, desklike equipment which
switches all calls automatically. With the
aid of special purpose computers, the oper­
ator will handle person-to-person, credit
card, collect, third-number charge, paystation, and time-and-charges calls with
only momentary intervention. Moreover,
information operating and intercept calls
may be totally or partially computerized.
In summary, the telephone industry has a
long history of planned technological change,
with each development preparing the way for
the next. The problems of human adjustment
and manpower planning for these innovations
are discussed in the following chapters.

The third toll innovation, automatic cus­
tomer distance dialing eliminated all oper­
ator handling on dialable station-to-station
calls. Because the great bulk of all telephone




6

Chapter IV.

Manpower Planning Policy

Advance Planning

Although dial conversion of the entire
telephone system was “gradual,” spanning
several decades, the change in any one town
or exchange was fairly abrupt. Technical
preparations are extensive and prolonged.
However, the moment its telephone system
begins operating automatically, a whole
town’ s requirements for operators might be
reduced from several hundred to a few
dozen. Some offices built exclusively for
local manual operations might be shutdown
permanently at the cutover hour.

Planning for the change involved both
technical and personnel phases. Technical
preparations for dial conversions require
about 3 or 4 years of complex engineering
work, from the decision to install the dial
system to the moment of cutover, when all
calls are routed through the dial system.
Switching equipment for automatic dial
offices must be planned, engineered, manu­
factured, and (until recently) installed on a
custom basis. Current and future communi­
cations needs of the community must be
surveyed, decisions made with the equip­
ment manufacturer about type of equipment
to be used, and tentative installation sched­
ules established. These technological and
organizational necessities create a long
leadtime which the operating company can
use to plan its manpower adjustment steps.

To cope with the human problems of this
extensive changeover, companies compris­
ing the Bell Telephone System developed at
an early stage a detailed statement of man­
power policy which provided for close coor­
dination of personnel with technical planning
in all cases of dial conversion. The objec­
tives of this manpower planning policy are
set forth in the system’ s manual describing
the procedures to be followed by local
offices, as follows:

The specific circumstances of each cut­
over influences the particular emphasis to
be followed in planning manpower policy. If
the conversion affects only one office of a
large city, the emphasis of planning is on
transferring employees elsewhere within
the city. There is a wider choice of jobs in
other departments available to employees
who must leave the operating force. If the
cutover is in a small, single-office city (or
encompasses many exchanges in a larger
city), fewer local opportunities are avail­
able and wider transfer areas must be
considered.

1. “To retain as many as possible of those
who wish to continue to work.
2. “ To place in suitable positions those
whom it is necessary to transfer.
3. “ To avoid reducing in rank any regu­
larly appointed nonmanagement em ­
ployee with a title above that of
operator.
4. “To avoid a surplus after the cutover.”

Timing of the conversion is also critical.
A cutover scheduled just before the busy
season (usually June through September)
will leave fewer redundant workers immedi­
ately after the cutover because of the
seasonally heavy traffic load. Other spe­
cial circumstances which planner s must take
into account are: the age distribution of
employees; nearness to other towns (and
their operator surplus or shortage status);
the union contract clauses which deal with
seniority; and layoff and transfer actions.

This policy has been applied in thousands of
conversions over the past several decades in
all parts of the country. Although some of it
has been modified by union contract provi­
sions relating to seniority rights and layoffs,
it remains substantially intact. This chapter
presents a generalized version of the policy
and program. The next chapter describes
how it was carried out in four specific cases
of dial conversion during the late 1950’ s
and early 1960’ s.




7

E stimate of Work Force Requirements
Planners need basic information about
total traffic man-hour s required before cut­
over, immediately after cutover, and for
several months thereafter, so that normal
operations can continue while personnel
changes take place. Operator man-hour re­
quirements are calculated by dividing the
expected volume of calls which require
operator attention by average operator time
per call. This figure is estimated long before
cutover and covers the precutover period
plus several months thereafter. It is ad­
justed if new information indicates a change
in circumstances.
The calculations are complicated by such
elements as peak periods, lower average
operator speeds with a predominantly inex­
perienced work force (or the converse), and
estimates about call volume which extend 2
or 3 years into the future. Suchforecasts are
developed from company information con­
cerning community growth and are updated
regularly at management forecasting con­
ferences attended by all departments of the
operating company. Changes in traffic vol­
ume, changes in work per call, and changes
in the installation schedule may require
review of the entire work force estimate.
The program is usually reviewed at 3-month
intervals until a year before the cutover.
During the last year, the plan is usually
reviewed monthly.
The estimated operator man-hour re­
quirements after cutover are subtracted
from the precutover requirements. After an
adjustment for hours consumed by vaca­
tions, leaves of absence, and training time,
this yields an estimate of the number of
operators who will no longer be needed in
this office after conversion.
Next, the company estimates normal at­
trition in the work force (by applying the
office’ s turnover rate to the current opera­
tor totals). If this attrition, over the 1 or
2 year preconversion period, will reduce the
current work force to the e stimated postcut­
over requirements, the company knows that
layoff of the specific operator s then working




may not be necessary. It will then stop hiring
“ regular* employees. From this point on,
the employees who leave through normal
attrition are replaced with temporary or
term employees, who are told that their jobs
will probably not extend beyond the cutover
date. The company often recruits former
operators for these temporary positions in
order to avoid training an inexperienced new
employee who would be on the job for only a
year or less.
Despite planned reduction by attrition, a
number of regular employees may not be
needed after cutover because automatic
dialing reduces operator requirements so
drastically. Using the same methods as
above, the company can calculate in advance
how many of these regular employees would
no longer be needed in the office; and, moving
down the seniority roster, the company can
then identify these operators. Thus, a year
or two in advance of the cutover, the com­
pany knows, relatively accurately, who will
be required to transfer or retrain. It is then
in a position to plan transfer actions, sched­
ule training, and develop other means of
retaining workers who want to continue
working in the industry.
Advance Notice and Consultation
When the company has developed its estimates to this point--where the seniority date
for retention in the office is known--it in­
forms the union and the employees. The
union is informed in advance of employees
and public, “ so that there will be no m is­
understanding and so that questions or dis­
cussions among the employees, if taken to
the union, may be given answers in accord­
ance with the facts.” (From company policy
document.) The company may give the union
its estimate of work force to be retained-which also indicates the required seniority
for an employee to be sure that she will be
retained. The company also may describe its
planned adjustment steps with the union at
this time, usually 1 or 2 years before con­
version. Conferences with the union may
continue wi t h regularity throughout the
period prior to cutover.

The collective bargaining agreement in
some companies provided for a 30-day
period (from the date of notification of the
decision to install new equipment) to nego­
tiate any special arrangement for manpower
changes which departs from the written con­
tract provisions. If special procedures are
not negotiated during this period, the general
c ontract provisions usually require that lay­
offs be made in inverse order of seniority
within the Bell Systems.

3. Postponing other company activity
which can be performed later.
4. Reducing work time per call.
5. B o r r o w i n g operators from other
office s.
6. Curtailing absences.
7. Scheduling regular overtime tours of
duty.
8. Hiring temporary or term employees.
These measures result in temporarily
increasing the number of man-hours avail­
able for operations, without hiring additional
permanent employees. The a r t i f i c i a l
stretching of man-hours involved in the
first method results in a spurt of retire­
ments, vacations, and leaves of absence
among regular employees immediately after
cutover. Deferred training is undertaken
now, overtime is stopped, borrowed employ­
ees are returned, and postponed m isscellaneous projects are begun. All of these
measures reduce available operator man­
hours after conversion, thus permitting
some regular employees to be retained who
might otherwise have been laid off. In effect,
the man-hours that were “artificially” ex­
panded just prior to conversion are now
contracted suddenly, in order to retain as
many permanent employees as possible.

The employees are notified immediately
after the union, and given the same informa­
tion about the change. They are told how
much seniority will be required to remain
in the office (if this estimate has been
developed). This serves to help the less
senior operators to p l a n for possible
transfer.
Later, a management official holds indi­
vidual conferences with each employee to
determine her wishes as to retirement,
retraining, transfer, and other options
available in this office’ s plan. This informa­
tion, together with data on work experience,
seniority, and other personnel information,
is used in planning the adjustments neces­
sary to assure individual placement after
conversion. The company policy manual
states:

Transfers and Reassignment
A frequently-used method of retaining
employees is to transfer them to other
offices in the same city, or to other depart­
ments, or to other cities. The system tries
to preserve its investment in training
(several hundred dollars per operator) by
using experienced employees, wherever
possible, to fill operator vacancies. Oppor­
tunity for transfer is particularly good in a
steadily growing system which employs
nearly 200,000 operators; has offices in
most of the cities, suburbs, and small towns
of the United States; and has a turnover rate
which generates many thousands of new
vacancies each year. Transfers are not
prevented by union barriers between craft
or departmental lines.

“it is well to keep in mind in this connec­
tion, that in addition to the effect on the
general employment situation, it' is better
from a service and cost standpoint to retain
in the System experienced employees for
whom a considerable investment for training
has already been made, than to engage and
train new people in some places while laying
off experienced employees in others.”
Application of Attrition*
1
A variety of methods is used to avoid
adding permanent employees to the work
force during the period immediately prior
to conversion and to maximize the effect
of attrition after the cutover. These are:
1. Postponing retirements, v a c a t i o n s ,
and leaves of absence*
2. Postponing some training.



An effort is made to create local transfer
possibilities in advance of cutover. Traffic
Department jobs to which displaced employ­
9

ees may be reassigned include information,
intercept, and toll operator positions, either
within the same office or in another ex­
change. Where other central offices are
within the same commuting area as the
affected office, the man-hour “ stretching”
procedures described on page 9 may be
applied to another office in order to create
openings for incoming transfers at cutover.
This procedure would be most likely when
one exchange, in a city of several exchanges,
is switched to dial.

the same as the operator’ s present wage.
The policy document does not suggest that
transportation or moving expenses be paid.
Employees who transfer within the sys­
tem generally retain their system seniority
for purposes of job security (layoff order),
relative pay level, pension and sickness
benefits, and length of vacation. Seniority
for choice of shift and choice of vacation
may be suspended until the next regular
rescheduling, so that the incoming trans­
feree does not bump numerous other em ­
ployees from their regular shift and their
planned vacation. Shift choice is important
to an operator because some tours of duty
occur during evening and night hours and
on weekends.

Seniority, qualifications, home address,
and transportation availability are all con­
sidered in determining who should be trans­
ferred. Transfers to nonoperator jobs (such
as clerk) in the traffic and other departments
also may be made. Other departments may
become part of the manpower plan. They
also may be asked to lower their age
requirements in order to accept the oper­
ators for training. Operators may consider
such transfers as advantageous because they
may carry a better work schedule or higher
wage rates.

Retirement Programs
Older employees are encouraged to re­
tire after the cutover, if they are eligible
for pensions. Precutover interviews, in
which various alternatives are offered, in­
clude a discussion of retirement benefits
with the employees whose age and service
were sufficient to qualify.

The company’ s policy may involve ar­
ranging transfers to distant cities for em­
ployees for whom no local positions can be
found. This is particularly necessary when
a whole town is converted to dial at one time.
Such transfers are usually arranged far in
advance of the conversion.

Pensions are available to all system em ­
ployee s on the same basis and are not ve sted.
They are granted automatically to women
employees at age 65 if they have 15 years of
system service; or at ages 55 to 65 upon
employee’ s request, if they have 20 years of
service. At the discretion of the manage­
ment-operated Employees’ Benefit Com­
mittee, pensions may be granted to women
with 25 years of service if they have reached
the age of 50, or with 30 years of service at
any age. Monthly pension payments are 1
percent of the employee’ s average pay
during his last 5 years of service, mul­
tiplied by total years of service. When the
retiree is eligible for social security, an
amount equal to one-quarter of the social
security benefit is deducted from the system,
pension payment.

If the number of surplus employees in
the town to be cut over is expected to be
large, the statewide operating company may
institute a work force planning program in
one or more distant cities in order to create
vacancies into which surplus operators can
transfer. The distant office selected for in­
transferring will also postpone vacations,
leaves of absence, and retirements until the
cutover date. It may even hire temporary
employees. At cutover, this distant office
will then have vacancies for the incoming
transferee s.

Severance Pay

It appears, from the pattern of transfer
offers in the case studies, that the system
usually offers transfers into jobs and into
areas where the new wage rate will be about




If a regular employee is unable to trans­
fer and is laid off and is not eligible for a
10

pension, she may be given severance pay.
Severance pay and pension benefits cannot
both be collected. Severance pay provisions
are common in the communications industry
(telephone and t e l e g r a p h ) . 4 / Of the 81
“major” agreements (those which cover
1,000 workers or more) in the industry, all
but 5 specifically provide some type of
severance payment. In contrast, in the elec­
tric and gas utility industry, only 21 of the
86 major agreements provide severance or
layoff benefits. In the telephone industry,
payment amounts depend on the worker’ s
weekly wage, multiplied by a length of
service factor. All but two of the agreements
in this industry have a minimum service
requirement, usually between 6 months and
1 year.

the company’ s reputation as an employer.”
It also recommends that the operating
company contact “other likely employers
(especially those who have private branch
exchange switchboards) either directly or
through the Chamber of Comm erce.” If any
job openings are located, the company in­
forms operators who were looking for work
directly. The company policy also states:
“ Granting employees time off to seek other
positions may be considered.” No explicit
mention is made about contacting the State
Employment Service as a mean of assisting
employees to find jobs.
Training and Retraining
In a typical dial conversion, the operators
who are no longer needed are those skilled
only in local switchboard operations. Since
these employees are already familiar with
basic operating practice and the general
functioning of switchboards, they are more
easily retrained to operate toll boards or to
handle information or intercept positions
than any other position in the company.

One system contract states:
“Each regular employee laid off as a
result of force surplus, other than em ­
ployees who are offered and refuse em­
ployment in a related or reasonably
equivalent occupation and within reason­
able commuting distance of their then
place of employment, will be paid a layoff
allowance.”

Since toll service accounts for most of
the operator positions, it provides most of
the openings available to transferees. Toll
operating is the most complicated operator
position, requiring the operator to respond
to a wider variety of requests and service
conditions. Therefore, toll training gener­
ally requires 3 weeks; information training
takes 1 week; intercept training a few days.

If the operating company has been able to
carry out all aspects of its manpower plan,
and has been hiring temporary or term em ­
ployees to fill vacancies over the last year
or more before the cutover, the number of
termination payments which must be made
may be quite small.

Highly developed training programs exist
for nearly all jobs in the system, even at the
nonmanagement supervisory level. There­
fore, retraining can be accomplished rela­
tively smoothly by assigning a surplus
operator to any one of a number of courses
already being given in many departments
and occupations. This policy enables some
operators to remain at work without relocat­
ing to another town.

Assistance in Finding a Job Outside
the Telephone Industry
The system policy document provides
that any office that must layoff employees
should take steps to help surplus operators
find jobs in other industries “because of
possible hardship, p o s s i b l e unfavorable
public reaction, and possible impairment of

Rehiring Rights
4 / Severance Pay and Layoff Benefit
Plans, Bulletin No. 1425-2, Bureau of Labor*
1
Statistics, U.S. Department of Labor, March
1 965.




11

Union contracts often provide that laid off
employees are to be rehired in inverse order
of seniority before new employees can be
hired. The rehiring rights may be limited

to employees who have been laid off for less
than 1 or 2 years and are qualified for the
type of job which is being filled. Payment
of severance benefits does not affect recall
rights. Employees on layoff keep the com­
pany informed of their address so that they




may be contacted when hiring takes place.
If they are recalled in fewer weeks than the
number paid for by a separation allowance,
employees repay the difference between the
allowance and their wage rate for the period
laid off.

12

Chapter V. Manpower Planning in Operation: Four Case Studies

The case studies presented in this chapter
describe the application of the general
policy of the Bell System in four instances
of conversion from manual equipment toautomatic dialing for local and long-distance
service combined. These dial conversions
were unusual in the industry’ s technological
history, since most exchanges had been con­
verted to local dial many years before long­
distance dialing was installed. Thus, three
of the case studies represented an extreme
telescoping of change for the type of small
town affected. The fourth case study was a
c onversion of one manual exchange in a large
city where all other exchanges had already
been converted to dial.

Workers of America; in the other two offices
(A and D), by a statewide independent union.
All offices had been represented by the same
union for at least a decade prior to the
conversion.
The age distribution of employees varied
among the four offices; office B had the
youngest work force (about 75 percent had
less than 10 years of service), and office D,
the oldest (44 percent of the work force had
less than 10 years service). In fact, a
number of operators in office D had trans­
ferred to the office as manual operators
when other offices in that city had been
converted to dial. Table 1 indicates the
seniority level of employees in each office.

The long-distance dial equipment in­
stalled was the most advanced type inuse at
the time of the case studies. It contained
automatic number identification equipment,
which permits dialed toll calls to go through
without the operator’ s intervention to deter­
mine the calling number.

Table 1. Seniority o f A ffected Regular
Employees at Tim e o f Cutover
Years of
company service
at cutover

O ffice B

O ffice C

O ffice D

Percent distribution o f affected employees

Total --------

100.0

100.0

100.0

100.0

30 and o v e r ----25 - 29 ----------20 - 24 ..............
15 - 1 9 ----------10 - 1 4 ----------5 - 9 --------------Less than 5 -------

Labor requirements were reduced dras­
tically: In office A, by 40 percent; office B,
by 47 percent; office C, by 85 percent; and
office D was closed down. The employees
directly affected were operators, service
assistants, assistant chief operators, and
chief operators. All of these employees were
women. Although this type of dial conversion
also a ffe c t e d s o m e plant and accounting jobs,
such jobs were not studied.

5.5
3.4
1.4
9.7
9.0
29.7
41.4

6.2
1.7
3.9
1.1
12.4
37.1
37.6

5.4
.8
2.3
11.5
18.5
40.0
21.5

19.1
4. 2
8.4
9.6
15. 1
15. 7
28. 9

NOTE: Because o f rounding,
may not equal 100.

sums o f individual items

SOURCE: Company records.

Technical Preparations and
Manpower Planning

Three of the offices affected (described in
text and tables as A, B, and C) were located
in towns of 40 to 50,000 in the Appalachian
region. Unemployment was relatively high,
ranging from 5 to 13 percent, during the
cutover period. The fourth office (D) was the
last manual central office in a large Eastern
city. Because of its size, the city had many
central offices to which employees could
be transferred.

In all four cases, advance planning of both
the technological and per sonnel adjustments
began several years before the cutover. In
office B, for example, planning began 2 years
in advance; in office C, 3 l/l years in
advance. In both of these offices, a specific
management official was put in full charge of
cutover arrangements, both personnel and
technical. The District Traffic Engineer was
in charge of office B’ s conversion. In office

The operators in two offices (B and C)
were represented by the Communications




O ffice A

13

C, a Traffic Supervisor was sent to the town
to plan and carry out all aspects of the
conversion.

office C, 17 months prior to cutover. Office
B did not carry on formal consultation with
the union but notified the local of cutover
plans 2 year s prior to the date of conversion.

The technical phases of planning involved
various time consuming preparatory activ­
ities related to purchasing and installing
equipment. Preparing the complex speci­
fications for manufacture and assembly of
switching equipment in one community, for
example, required 5 man-years of engineer­
ing work by the equipment manufacturer.
Installation took 8 months. During this
period, the operating company had responsi­
bility for training operators, instructing
customers, compiling and publishing a di­
rectory, arid making a great variety of
community arrangements to minimize cus­
tomer confusion with the new dial system.

In all offices, the union contracts required
that the company notify the union of “an
occasion for the adoption of a program of
mass or general layoffs or part-timing (less
than a normal workweek) 1or both” for
regular employees. (The contract covering
office C does not include “part-timing” but
is otherwise the same.) All four contracts
provide that, within 30 days of such notice,
either (1) a special layoff or part-timing
arrangement shall have been negotiated, or
(2) contract provisions shall apply which
require that inverse order of seniority be
observed in layoffs. (See appendix A for
contracts in the case study offices.)

The manpower phases of this planning
involved forecasting in advance for em ­
ployment requirements as described on
page 8. For example, 21 months before the
cutover, office C estimated turnover rates,
retirement rates, and work force needs
for each month over the next 2 years.
It also estimated work force needs after
conversion. These data were applied to total
employment to estimate the number of em ­
ployees who would have to transfer or be
laid off. This estimate was revised period­
ically, to take account of changes in turnover
rates, call volume, new postcutover work
force estimates, and the re suits of employee
interviews concerning willingness to trans­
fer. The estimate prepared 2 years before
cutover proved to be quite inaccurate,
chiefly because the necessary postcutover
force had been overestimated. The esti­
mates prepared 8 months prior to cutover,
however, proved to be very close to the
actual result.

At the time of notification, planning in all
four offices had progressed to the point
where management was able to give the
union the approximate cutover date, some
indication of how many employees would be
retained, and transfer information. F or
example, in office D, management was able
to inform the union that all manual operator s
would be retrained for toll work, that they
would be transferred to other offices within
the city in advance of cutover (and be re ­
placed by temporary workers), and that the
retraining and transfer program would begin
10 months before cutover. In office C, man­
agement indicated the seniority date of the
least senior employee who could be retained
in the office and explained how transfers
would be arranged.
Union-Management Negotiations
In office A, management proposed as an
alternative to the c ontract provision regard­
ing layoffs, that the less senior half of the
regular employees be given part-timework
--about 2 - 1 / 2 days a week--that they also be
offered transfers, and that some special
temporary clerical projects be brought into
office A to occupy the surplus force immed­
iately after cutover. The union counterproposed that the workday for all regular office
A operators should be cut 1 hour, at no cut

Advance Notice
Unions and employees were notified far
in advance of the change. In office A, the
union and employees were notified about 20
months prior to conversion. Aformalunionmanagement meeting was held just prior to
employee notification. In offices A and D,
meetings began a year prior to cutover; in




14

in pay; that employees should be offered
expense-paid transfers anywhere in the
system, by seniority; and that pensions be
provided to all employees with 20 years
service. The union was firmly opposed to
part-timing, partly because it would reduce
the operators’ income while preventing them
from obtaining unemployment compensa­
tion. After three negotiating sessions, the
company agreed to pay transportation and
moving expenses to transferees. Since the
union was opposed to part-timing, the com­
pany withdrew this proposal and returned
to the contract’ s layoff procedure.
Union-management meetings in office D,
which was to be closed, dealt at length with




transfer provisions. All employees had to
transfer to other offices in the city. Man­
agement proposed that the choice of office
to which they would like to be transferred
not be offered in order of seniority. Instead,
management proposed that the seniority list
be split into four groups, and the limited
number of transfer openings in each office
be apportioned among the four groups. With­
in each group, choice would be made by
seniority. A result of this method would be
that the operator, for example, who was 41st
in order of seniority could have last choice
in transfer opportunities, while the operator
who was 42d on the seniority roster could
have first choice.

15

CHART I
CHRONOLOGY OF UNION-MANAGEMENT U MEETINGS IN OFFICE C

About 20 months prior to cutover

working tour. Management agreed to find
out and inform the union.

Management informed union local that a
dial cutover was being planned. The con­
tract procedure for work force surplus
was discussed. Management indicated
that an announcement would be made to
employee s.

The union asked for clarification of the
transfer procedure. Management said
that it would offer transfers in inverse
order of seniority, as close to cutover as
possible. Union and management re­
viewed results of the individual operator
interviews concerning their desire to
transfer and their choice of locations.

16 months prior to cutover
Management informed union of estimated
office size after cutover, and explained
how it had estimated the seniority date of
the least senior operator to remain in
office C. (This estimate was revised at
a later meeting because turnover had been
underestimated slightly.)

Managment agreed to pay a layoff allow­
ance to a regular (not term or temporary)
employee who had accepted a transfer,
then later decided not to transfer. How­
ever, it would not pay a layoff allowance
to an employee who refused to transfer
to a toll job in the same town as office C.

Management informed union that each
operator would be interviewed next month
to determine whether or not she will want
a transfer to another exchange elsewhere
in the State.

Union asked that the layoffs be applicable
to all departments (to create jobs for
senior operators who would otherwise
have to move). Management refused.

In response to a union question, manage­
ment said that it “would not use the cutover as a means of g e t t i n g rid of
attendance problems, but attendance will
continue to be stressed.”

9 months prior to cutover
Discussed position of employees with
enough seniority to remain in townC, but
who are on leave of absence at cutover.
Union indicated that it would mase sure
that seniority was strictly observed in
offering jobs to employee s returning from
such leaves. (A grievance later was filed
on this issue.)

Union asked if senior operators could
bump junior employees in other depart­
ments. Management said no.
15 months prior to cutover

Management indicated the wage grade
which operators and service assistants
would be offered if they were hired by
the Commercial Department.

The union stated that temporary em ­
ployees are unhappy with their constantly
changing work schedules. It wanted to
know how many could be reclassified as
regular, so that they could obtain a fixed

Management said that if there were no
extenuating circumstances, an operator
could be required to work a 6-day week
“as a condition of continued employment. ”
(This scheduling was used to add man­
hours before cutover.)

See footnote at end of chart.




16

6 months prior to cutover

Management answered a query about a
second layoff subsequent to cutover by
stating that this might be a possibility,
but that the company was considering
scheduling vacations to avoid layoffs.
This would help absorb the force during
this period in the expectation that traffic
growth and force turnover would nullify
the surplus.1

Management answered a union question
about employees below the seniority level
for retention. About five will be used for a
temporary plant job and may be needed
again later (by the time the temporary
project is completed) as operators.
Management told the union when vaca­
tions would begin (a month after cutover).
Vacations could be chosen for the follow­
ing 6 months.

1 / At early meetings, an international
union representative joined the officers of
the local. Management was usually repre­
sented by the District Traffic Manager,
Traffic Manager, and Chief Operator.

Management altered its earlier position
on operators who refuse transfer. If a
long-service employee (who could have
been retained in office C) accepted a
transfer, then later decided not to go, she
would not be given a layoff allowance.




Source: Company minutes of meetings.

17

The union proposed six groups, rather
than four groups, since it was concerned that
the relative position on the seniority roster
of operators in the offices receiving the
transferred employees would be lowered by
an influx of more senior employees from
office D. This would adversely affect the
receiving office operators’ choice of hours
and vacations. The company and union
agreed to proceed on the basis of six groups.

10 months later:
“Has decided to transfer to Washington,
D. C .”
“Single; supports parents. Will talk to
family and let us know about transfer.
Mother’ s health not good.”
9 months later:
“Cannot transfer. Must take layoff.”
“Husband’ s job is not a good one as far
as wages. He is trying tofind a better job.
Car will not be paid for until 7 /6 1 .”
10 months later:
“Will transfer to W. City at cutover. Hus­
band unemployed.”

Chart I presents a chronological account
of meetings between labor and management
representatives at office C. These discus­
sions began about 20 months prior to the
cutover and dealt with many of the person­
nel problems of the change.

Use of Attrition

Employee Interviews

In all offices, regular employees who left
during the year preceding the cutover were
replaced with temporary workers. In addi­
tion, in offices B, C, and D, transfers took
place during the few months prior to cutover,
and the vacancies thus produced were filled
with temporary workers. As a result of these
measures, temporary employees accounted
for over a third of the total operator force in
offices C and D, and nearly a fourth of the
operating force in office B by cutover time.

Interviews were held with the employees
in offices B, C, and D to inform them of the
choice in transfers, training, or other ad­
justments. The interviewer was either the
management person in charge of the cutover
or one of his staff. This far-in-advance
notice and variety of choice were partic­
ularly helpful to women workers in pre­
paring their family for the change. Women
are not expected to put job or career above
family convenience or preference, even if
they support the family (as was the case for
many of the women operators in these case
studies). The following notes made by a
personnel interviewer illustrate some of the
problems that arose:

Overtime was used in all four case study
offices to add to operator man-hours.
Usually, operators were scheduled for a 6day week, rather than a longer day. Table 2
shows that about one-quarter of the total
man-hour s required to operate office B were
obtained through the use of temporary em ­
ployees and overtime scheduling. The peak
in overtime at 11-12 months prior to con­
version was due to a seasonal peak traffic.
The cutover was planned for 1 year later,
when another seasonal peak in traffic would
require extra operator man-hours, and
therefore would result in fewer layoffs
immediately after cutover.

“Husband is going to look for work (now
unemployed), and if he finds employment,
she will want a transfer to that city.
Otherwise will work until cutover.”
“Will accept transfer to P. City. Prefers
to go as close to cutover as possible,
since her son is in school and she wants
him to finish the year here. Divorced;
supports self and child.”

Offices A, B, and C postponed vacations
until after the cutover (although two vaca­
tions each week were permitted in office A).
In office C, this measure added the man­
hours equivalent of five workers to the

“Father will not permit her to transfer
anywhere. When she becomes 21 may
change her plans.”




18

Office C, for example, shifted 14 operators
to a single small town. After transfer, they
had to be trained for toll operations. There­
fore, these transfers were spread out over
several months to prevent a sudden influx
of untrained operators into one office. Sim­
ilarly, office D moved 132 operators to
other offices in the same city over a period
of several weeks. All of them had to be re­
trained for toll work. In both offices, as
regular operators moved, their positions
were covered either by hiring additional
temporary employees or by scheduling
overtime.

operating force during the 3 months prior
to conversion. Office C had estimated its
turnover during the year of conversion to be
35 percent; during the year preceding con­
version, 20 percent. It began filling the va­
cancies created by this attrition with term
employees 2 years before cutover. One year
before cutover, vacancies were filled with
temporary workers.
Transfers
The company arranged to transfer some
operators to other offices in all four cases.
In offices A, B, and C, jobs in other towns,
mostly within the State, were available for
some employees; in office D, the jobs were
within the city. Nearly all of these moves
were to other types of traffic work (usually
toll, information, or intercept operating). In
all four cases taken together, only five em ­
ployees w e r e transferred into another
department in the same town.

The system usually does not pay moving
or transportation costs to employees who
are required to transfer. In office A, how­
ever, transportation and some moving costs
were paid to the 11 employees who moved
to another town. Also, at the time office C
closed, the telephone company of a large
city a few hundred miles away was recruit­
ing high school girls in office C’ s town
because of a serious operator shortage.
The company was paying transportation ex­
penses to girls who moved to the city.
Therefore, when office C was cutover, the
same offer of transportation expenses was

The transfers to other cities and offices
did not all take place immediately at the
cutover. They were spread out over a period
of months preceding cutover, in order to le s­
sen the training load on the receiving office.

Table 2.

Months prior
to cutover

Estimated
force
required

Office B: Anticipated Use o f Regular and Temporary Employees and
Overtime Prior to Cutover, by Selected Months

Number

Percent of
total required

Regular employees

18

218

218

218

12
11
10
9
8
7
6
5
4
3
2
1

208
218.
225
227
235
221
222
224
225
226
230
225

190
196
204
214
218
221
222
224
221
215
209
203

185
183
182
181
180
179
178
177
175
173
172
170

Temporary employees
Number

100
89
84
81
80
77
81
80
79
78
77
75
76

NOTE:

Because o f rounding, sums of individual items may not equal 100.

SOURCE: Derived from company records.




Estimated overtime

Estimated fdrce composition

Estimated total
number o f
employees
available

19

Percent of
total required

Equivalent
employees
represented
by overtime

Percent
o f total
force

-

-

-

-

5
13
22
33
38
42
44
47
46
42
37
33

2
6
10
15
16
19
20
21
20
19
16
15

18
22
21
13
17
0
0
0
4
11
21
22

9
10
9
6
7
-

2
5
9
10

over. The actual number laid off was higher
than the number estimated 21 months in
advance.

made to any operators in office C who
wanted to transfer to the city. In spite of
this offer and a higher operator wage scale,
only one of the displaced office C operators
took a job in the distant city.

All regular employees were offered the
option of transferring in the four case
studies (although not always to the city of
their choice). Nevertheless, layoffs took
place because of the inability of some oper­
ators to move. Many of these regular em ­
ployees had families and were homeowner s.
For these and other personal reasons,
transfers were rejected by 142 of the 222
regular employees who would be laid off
if they did not transfer. Twenty-eight of the
142 were able to retire because of their
length of service or the discretion of the
benefit committee. Eighteen took a leave of
absence. The remaining 96 operators who
could not transfer were laid off; all but 17
received layoff pay.

Two offices in the same State created
openings for 26 operators of office C by
planning their hiring during the 3 months
prior to cutover. In office A, nonoperating
departments of the company (in the same
town) restricted hiring in certain occupa­
tions for 1 year preceding cutover. However,
these measures produced only one opening.
Table 3 shows the disposition of affected
employees in the four case studies near the
cutover date.
Layoff and Severance Pay
Estimates of the number of persons who
might be without jobs at the cutover dates
were made during the pre-cutover period.
In office C, these estimates were revised
every 6 months or so, taking into account
interview results, retirements, and turn­

Table 3.

In office C, which had the largestnumber
of laid-off employees (39), layoff payments
ranged from $107 for an employee with 2 l/4
year’ s service to $1,001 for an employee

Disposition o f Affected Employees in Four Case Studies Near the Cutover Date
Number o f employees

Employment status
Office A

Office D

216

262

1 265

126
103
91
1

Regular employees, t o t a l -----------------------------------Retained, t o t a l --------------------------------------------Retained in department-------------------------------Transferred to another department-----------------Transferred to another office in the
same c i t y ------------------- ---------------------------Transferred to another c i t y --------------------------Not retained, t o t a l ----------------------------------------Leave o f absence (may be temporary)------------R etired----------------------------------------------------Resigned (no termination p a y )---------------------Laid o ff (termination p a y)---------------------------Term, temporary, and occasional employees,
t o t a l------------------- --------------------------------------------Retained, total (transferred to another c i t y ) ---------Not retained, total (laid off, no termination
p a y)------------- ---------------------------------------------

158
142
115
-

157
86
40
4

165
148
2

_

_

_

11
23
3
3
18

27
16
3
13

42
71
IS
6
11
39

28
1

58
5

105

27

53

1 An estimated 100 temporary employees included in total.
^ No exact data available; about 100 temporary employees were used.
^ Information not available.
Company records and case study interviews.




O ffice C

154

Total affected ---------------------- --------------------

SOURCE:

O ffice B

20

146
17
4
13
2

100

(3 )

( 3>

(3 )

( 3)

with 9 years service. The average sever­
ance benefit was about $350. (See table 4.)
These benefits were calculated on the basis
of wages paid in the early 1960’ s and do not
reflect current higher wage rates. In offices
A and C, about a third of these laid-off
regular employees were rehired within a
year or two after cutover, due to increased
business and turnover. Employees probably
were eligible for State unemployment insur­
ance in addition to severance pay.
Table 4.

Upgrading and Downgrading
In nearly ail cases, transfers were
arranged to towns with the same wage scale
for operators; some transfers were to
larger cities with a higher wage scale. In
office B, most of the transfer openings which
were available for operator choice were in
towns with a wage rate between $0.50 and
$7.50 higher a week. In offices A and C,
most transfer openings were to towns with
the same operator wage scale. In office D,
operators shifted within the same town, so
their wage scale remained the same.

Office C: Distribution o f Separation Allowances

Range in amount o f
separation allowance

Number of employees
receiving allowance

T o ta l------------- ----------$700 and o v e r ------------------$600 - $699 ---------------------$500 - $599 ---------------------$400 - $499 ---------- ---------—
$300 - $399 ---------------------$200 - $299 ---------------------$100 - $199---------------------Less than $100-------------------

In office C, downgrading took place, pri­
marily because the position “Service A ssis­
tant” was no longer required after cutover.
Eleven Service Assistants and one Assistant
Chief Operator were downgraded to operator
positions, at lower pay rates. One Assistant
Chief Operator was moved to another de­
partment to prevent her being downgraded
to operator.

39
5
2
1
1
8
7
15

"

SOURCE: Derived from company records.

Older Worker Adjustment
Company Help in Finding
Other Jobs

In the case study situations, manual
operators who were unfamiliar with toll
practice had to be trained on this service for
the first time. Older operators who had
trouble adjusting to toll work were given
more time to learn or were trained for the
somewhat less rigorous intercept or infor­
mation positions. Office C interview notes
illustrate the older worker’ s problems:

Only office C made contacts with other
firm s. Here, five production-worker jobs
were located in a nearby manufacturing
plant. In no case did the operating companies
contact the State employment service.
Retraining
Nearly all retraining in the four cases
involved training operators to work toll
boards. A few were retrained for informa­
tion and intercept work; only five were
trained for jobs in other departments. Toll
training took 3 weeks, in most cases, but
extra time was given to operators who had
difficulty learning toll board procedures.
In training, the operators sat at a regular
switchboard and handled a variety of sim ­
ulated calls and signals. This type of train­
ing may have been less upsetting to older
experienced o p e r a t o r s than classroom
instruction.




Operator 6 (54 years old. 31 years" service)

“Still wants to work on. Definitely would
not be interested in transfer. Has house
to finish paying for. Doesn’ t want pension
while her health is good. Doe s not feel she
is as efficient as she should be on the toll
board. Apprehensive about toll training.
Afraid it may be difficult for her in the
new office.”
(This operator did remain at work and
did adjust to toll operating.)

21

However, some of the resignations and
retirements in office D were due to inability
to learn toll work, even though extra training
time was given.

adjust to the idea that they would have to
learn new skills. In addition, the training
course was adjusted, to some extent, to the
individual student’ s learning speed. Finally
the company benefit Committee appears to
have taken the cutover situation into account
and granted applications for early retire­
ment to operators who felt that they could
not adapt to the new situation (see p. 10 for
early retirement terms).

Several management steps were partic­
ularly helpful to older worker s. The advance
notice of change, which came 1 to 3 years
before cutover, gave older operators time to




22

Appendix A. Union Contract Provisions at Office B.
Article V - SenioritySection 1. It is agreed that work requirements, service conditions, and the
ability of the employee developed through previous training and experience in the
work involved as determined by Company are the controlling factors in the selection
of working tours and vacation periods. If such requirements do not operate to the
contrary:
(a) seniority based on net credited service shall govern the selection of vaca­
tion periods by all employees (other than Traffic central office operating
employees) within each working group in each office, and
(b) except as provided in Section 2 of this Article, seniority based on net cred­
ited service shall govern the selection by plant employees working in
central offices and Traffic central office operating employees of tours and
vacation periods within each working group in each central office unit; pro­
vided that in the case of Traffic Service Assistants, Traffic Service Ob­
servers, and Senior Central Office Clerks, seniority based on continuous
service, including time spent in management positions, since last appoint­
ment to this level, less periods of leaves of absence, shall govern prior to
October 4, 1953, and commencing October 4, 1953, all periods paid for of
one day or more in managment positions or within that particular job
classification. In the administration of this Section, it is understood that
no credit for previous service in any of these positions shall be given upon
reappointment if the employee, since, October 4, 1953, has (1) elected to
return to a lower rated position in the bargaining unit, or (2) been demoted
to a lower rated job in the bargaining unit for any cause other than force
surplus. An employee in one of these job classifications returning from a
leave of absence after the effective date of this Agreement shall receive
credit for all previously accumulated seniority upon reinstatement in the
position held before leave of absence began.
Section 2. Traffic central office operating employees who are transferred
from an office within Company’ s territory or from another Bell System Company
into a new location within Company’ s territory, and employees transferred from
other departments of Company into Traffic central office operating job classifica­
tions, shall be assigned whatever vacant tour remains on the schedule at the time of
transfer without depriving any present employee of the tour she then is entitled to.
As vacancies occur through resignation, promotions, transfers out, or other causes,
the employee shall step into such vacancies on the seniority list until she has attained
her proper place in the schedule in accordance with her seniority, but not later than
the starting date for the first selection of tours on the basic schedule after the em ­
ployee transfers to the office involved.
Section 4. It is agreed that Traffic central office operating employees shall
normally be allowed to select working tours, generally not less than every 90 days
nor more than 120 days; provided, however, that such selections may be made more
or less frequently when Company determines that force and service conditions
require.




23

Article VII - General Layoffs and Part-Timing
Section 1. Whenever, in the judgment of Company, there exists an occasion
for the adoption of a program of mass or general layoffs or part-timing (less than
a normal work week) or both, of regular full-time and regular part-time nonsupervisory employees of Company, Company agrees before proceeding with such
program, in the following sequence, to:
(a) Lay off all occasional and temporary employees engaged within the job
classifications and exchanges affected in a sequence to be determined by
C ompany.
(b) Notify Union of its intention to introduce such program and negotiate with
Union in regard to the method or methods to be employed.
Section 2, Company shall determine the extent of the reductions required, the
effective date or dates thereof, the exchanges, and the job classifications involved.
Section 3. If an agreement as to the method or methods to be employed in in­
troducing such program is not reached by Company and Union within thirty days
from the date of such meeting, Company may then proceed as hereinafter outlined.
Section 4. The order of layoff within job classifications and exchanges selected
shall be by length of service groups and in the sequence outlined below, provided
that all employees shall be laid off in the inverse order of their seniority:
(a) Employees with less than two years of net credited service.
(b) Employees with two or more but less than three years of not credited
service.
(c) Employees with three or more but less than four years of net credited
service.
(d) Each subsequent group after the third length of service group specified
above shall be composed of employees in each next successive year of net
credited service.
Section 5. Each regular employee with one or more years of net credited
service laid off under the provisions of Section 4 of this Article (including those laid
off in accordance with the terms of any further agreements reached with Union) shall
receive, in addition to any vacation payment to which he may be entitled, a layoff
allowance in accordance with the following:
Completed Net
Credited Service
1
2
3
4
5

Weeks* Basic Pay1

year........................................................................................................
years.....................................................................................................
years.....................................................................................................
years.....................................................................................................
years............................................................................................... #




24

1
2
3
4
5

5 years,
6 months.............................................................................
6
6 years.....................................................................................................
7
6 years,
6 months.............................................................................
8
7 y e a r s ,..................................................................................................
9
7 years,
6 months................................................................
10
8 years........................................................................................................ 11
8 years,
6 months................................................................................ 12
9 years........................................................................................................ 13
9 years, 6 months.......................
14
10 years.......................................................................................................15
10 years, 4 months................................................................................ 16
10 years,
8 months................................................................................ 17
11 year ......................................................................................................18
11 years, 4 months............................................................................. 19
11 years, 8 months....................................................................
20
12 y e a r s ..................
21
12 years, 4 months..............................................................
22
12 years, 8 months................................................................................. 23
1 3 y e a r s .......................................................................................................24
13 years, 4 months................................................................................. 25
13 years, 8 months,............................................................................ 26
14 years. ...................................................................................................... 27
14 years, 4 months............................................................................. 28
14 years, 8 months.....................
29
1 5 y e a r s ..........................................
30
Note: For each completed four months of net credited service beyond 15 years, one
additional week’ s basic wages will be added to the above. In cases where an
employee has more than fifteen years of net credited service, Company may,
in its discretion, make payments in addition to those provided above; such
additional payments to be determined by Company on an individual basis.
It is understood that Company may in its discretion pay a layoff allowance in
any of the above situations in an amount greater than that provided for herein.
If an employee receives a layoff allowance and is subsequently reengaged by
Company, and the number of weeks since the date of his layoff is less than the
number of weeks’ basic pay received as a layoff allowance, the amount paid to the
employee for the excess number of weeks shall be refunded to Company through
payroll deductions in each payroll period at the rate of ten per cent of the employee’ s
basic weekly wage.
An employee reengaged and again laid off after having former service accred­
ited shall be paid the difference between the amount of the layoff allowance computed
under the above schedule, and any former layoff payment which he may have received
as a result of the previous layoff and not refunded.
Section 6. The provisions of this Article shall not be construed to prevent
Company at any time from:
(a) Transferring employees from one job classification to another (either at
the same location or in another location) or transferring employees from
one location to another without change in job classification.




25

(b) Making layoffs or part-timing in any job classification and exchange on
account of the normal fluctuations of the business because of minor read­
justments of forces or because of changes inpractices, types of equipment,
or methods of operation.
(c) Engaging line construction or tree trimming crews on an independent con­
tractor relationship or engaging any person on a temporary or occasional
basis.
(d) Making layoffs or part-timing within any job classification, working force,
or exchange because of reductions in work volumes or force requirements
caused directly or indirectly by conditions resulting from a labor dispute.
(e) Retaining necessary employees in those job classifications
specialized pre-employment training.

requiring

Section 7. Section 5 of this Article shall also apply to regular full-time and
regular part-time employees in cases of individual layoffs because of lack of work.
#

^ ^ >< *
; ,
<

Article X - Termination Allowances
Section 1. Termination allowances in amounts computed in accordance with
Section 3 of this Article will be paid to regular full-time employees having three
(3) or more years of net credited service whose service is terminated by Company
under any of the following conditions as determined by Company:
(a) Dismissed (except for misconduct) - employees having completed three
(3)
or more years
of net credited service at the time of dismissal.
(b) Retired at the age of 65 without a pension.
Section 2. Termination allowances will not be paid to employees who are dis­
missed for misconduct, resign, or receive a Company pension, or who otherwise
leave the service under conditions not specified in Section 1 of this Article.
Section 3. The amount of the termination allowances paid in accordance with
this Article will be computed as follows:
Completed Net
Credited Service
3
4
5
5
6
6
7
7

Weeks' Basic Pay

years.
.......................................................................................... 3
years........................................................................................................ 4
years........................................................................................................ 5
years, 6
months............................................................................ 6
years........................................................................................................ 7
years, 6
months............................................................................ 8
years.....................................................................................................’ . 9
years, 6
months........................................................................ .1 0




26

8 years......................................................................................................
8 years, 6 months..................................................................................... 12
9 years.......................................................................................................... 13
9 years, 6 months....................................................................................14
I 0 years.......................................................................................................... 15
10 years, 4 months....................................................................................lo
10 years, 8 months..................................................................................... 17
II years.......................................................................................................... 18
11 years, 4 months..................................................................................... 19
11 years, 8 months..................................................................................... 20
12 years..........................................................................................................21
12 years, 4 months..................................................................................... 22
12 years, 8 months..................................................................................... 23
13 years..........................................................................................................24
13 years, 4 months..................................................................................... 25
13 years, 8 months....................................................................................26
14 years................................
27
14 years, 4months...................................................................................... 28
14 years, 8months......................................................................................29
15 years..........................................................................................................30
Note: For each completed four months of net credited service beyond 15 years,
one additional week’ s basic wages will be added to the above.
An employee qualified to receive a termination allowance under this Article
who leaves the service before receiving a vacation which he is eligible to receive
at the time of his separation shall receive vacation pay in addition to the termination
allowance.
Company may in its discretion pay termination allowances in amounts greater
than those provided in this Section 3, such amounts to be determined by Company on
an individual basis.
Section 4. If an employee received a termination allowance and is subsequently
reengaged by Company, and the number of weeks since the date of his separation is
less than the number of weeks’ basis wages received by the employee as a termina­
tion allowance, the amount paid to the employee for the excess number of weeks shall
be refunded to Company through payroll deduction in each payroll period at the rate
of 10 percent of the employee’ s basic weekly wage.
An employee reengaged and again separated from the payroll after having
former service credited shall be paid the difference between the amount of the
termination allowance computed in accordance with the provisions of this Article
and any former termination allowance which he may have received as a result of a
previous separation and not refunded to Company.

Section 3. “Regular employees” are persons whose employment is reasonably
expected to be permanent at the time they are engaged although it may be terminated
subsequently by action on the part of the Company or the employee.




27

Section 4. “Temporary employees,” as used in this agreement, shall be deemed
to mean those employees whose employment is intended to last more than three (3)
weeks but not more than one (1) year. Such employees shall be reclassified as
“regular employees” if their employment exceeds one (1) year of continuous service
since date of last engagement.

Section 6. The term “Traffic central office operating employees” shall be
deemed to mean Traffic operators and employee s engaged in the Traffic Department
as Service Assistants, Service Observers, Senior Central Office Clerks, and Central
Office Clerks.

Section 14. The term “net credited service” shall mean Bell System net
credited service as determined by Company and shown on Company’ s records.
Union Contract Provisions at Office C.
Article 25 - General Layoffs and Rehiring
Section 1. Whenever, in the judgment of the Company, there exists an occasion
for the adoption of a program of mass or general layoffs of regular full-time nonsupervisory employees of the Company, the Company agrees before proceeding with
such program to:
(a) In a sequence to be determined by the Company, lay off all occasional and
temporary employees and all regular employees with less than one (1)
year’ s net credited service engaged within the job classifications and
exchanges affected.
(b) Notify the Union of its intention to introduce such program and negotiate
with the Union in regard to the method or methods to be employed.
Section 2. The Company shall determine the extent of the reductions required,
the effective date or dates thereof, the exchanges, and the job classifications
involved.
Section 3. The Union agrees to meet with the Company and if an agreement as
to the method or methods to be employed in introducing such program is not reached
by the Company and the Union within thirty (30) days from the: date of notification
referred to in Section 1 (b), the Union agrees that the Company may then proceed
as hereinafter outlined in this Article.
Section 4. The order of layoff within any job classification and exchange
selected shall be by the length of service groups and in the sequence outlined below,
provided that all employees shall be laid off in the inverse order of their seniority.
(a) Employees with
credited service.




more than one (1) but less than two (2) years of net

28

(b)

Each subsequent group shall be composed of employees in each next suc­
cessive year of net credited service.

Section 5. Each regular full-time employee with one (1) or more years of net
credited service laid off under the provisions of Section 4 of this Article (including
those laid off in accordance with the terms of any further agreements reached with
the Union) shall receive, in addition to any vacation payment to which he may be
entitled, a layoff allowance in accordance with the following:
(a) One (1) week’ s basic pay for each completed year of net credited service
up to and including five (5) years.
(b) One (1) week’ s basic pay for each completed six (6) months of net credited
service beyond five (5) years and up to and including ten (10) years,
(c) One (1) week’ s basic pay for each completed four (4) months of net credited
service beyond ten (10) years.
(d) In cases where an employee has more than fifteen (15) years of net credited
service, the Company may, in its discretion, make payments in addition to
those provided under (a), (b), and (c) above, such additional payments to be
determined by the Company on an individual basis.
It is understood that the Company may, in its discretion, pay a layoff allowance
in any of the above situations in an amount greater than that provided for herein.
If an employee receives a layoff allowance and is subsequently reengaged by
the Company, and the number of weeks since the date of his layoff is less than the
number of weeks’ basic pay received as a layoff allowance, the amount paid to the
employee for the excess number of weeks shall be refunded to the Company through
payroll deductions in each payroll period attherate of 10 percent of the employee’ s
basic v/eekly wage.
An employee reengaged and again laid off after having former service accred­
ited shall be paid the difference between the amount of the layoff allowance computed
under the above schedule and any former layoff payment which he may have received
as a result of the previous layoff and not refunded.
Section 6. The provisions of this Article shall not be construed to prevent the
Company at any time from:
(a) Transferring employees from one job classification to another (either at
the same location or in another location) or transferring employees from
one location to another without change in job classification;
(b) Making incidental layoffs in any job classification and exchange on account
of the normal fluctuations of the business or because of minor readadjustment.s of force;
(c) Engaging line construction or tree trimming crews on an independent con­
tractor relationship or engaging any person on a temporary or occasional
basis;




29

(d) Laying off employees engaged for a definite time or for the duration of a
specific project or condition without regard to their Company service,
even though such employees may have been carried on the payroll as
regular employees;
(e) Retaining necessary employees in those job classifications
specialized pre-employment training.

requiring

Section 7. If, after a period of layoff, the Company again desires to increase
the number of its regular nonsupervisory employees within a job classification and
exchange in which there has been a mass or general layoff, the Company agrees to
offer reemployment, under the conditions hereinafter provided, to former regular
employees previously engaged in such job classification and exchange. Such reem ­
ployment shall be offered to employees in the inverse order in which they were laid
off, subject to the following conditions:
(a) The former employee had one (1) year or more of net credited service at
the time he was laid off.
(b) The period of time since the layoff of the former employee has not exceeded
one (1) year.
(c) The former employee is qualified, in the judgment of the Company, to per­
form the available work at the time the offer of reemployment is made.
(d) The former employee shall accept and be available for reemployment
within seven (7) days after the date of the mailing by the Company of the
offer of reemployment. It shall be the obligation of former employees to
keep the Company advised of their home addresses, and the Company shall
be deemed to have complied with the provisions of this Paragraph upon
mailing the offer of reemployment to the lastknown address of the former
employee.

Article 27 - Termination Allowances
Section 1. Termination allowances in amounts computed in accordance with
Section 3 of this Article will be paid to regular full-time employees having three (3)
or more years of ne,t credited service whose service is terminated by the Company
under any of the following conditions as determined by the Company:
(a) Dismissed (except for misconduct), for employees having completed three
(3)
or more years
of net credited service at the time of dismissal.
(b) Retired at the age of sixty-five (65) without a pension.
Section 2„ Termination allowances will not be paid to employees who are dis­
missed for misconduct, resign, or receive a Company pension, or who otherwise
leave the service under conditions not specified in Section 1 of this Article.
Section 3. The amount of the termination allowances paid in accordance with
this Article will be computed as follows:




30

(a) One (1) week’ s basic wages for each completed year of net credited
service up to and including five (5) years.
(b) One (1) week’ s basic wages for each completed six (6) months of net cred­
ited service beyond five (5) years and up to and including ten (10) years.
(c) One (1) week’ s basic wages for each completed four (4) months of net cred­
ited service beyond ten (10) years.
An employee qualified to receive a termination allowance under this Article
who leaves the service before receiving a vacation, which he is eligible to receive
at the time of his separation, shall receive vacation pay in addition to the termination
allowance.
The Company may, in its discretion, pay termination allowances in amounts
greater than those provided in this Section, such amounts to be determined by the
Company on an individual basis.
Section 4.
(a) If an employee receives a termination allowance and is subsequently reen­
gaged by the Company, and the number of weeks since the date of his
separation is less than the number of weeks’ basic wages received by the
employee as a termination allowance, the amount paid to the employee for
the excess number of weeks shall be refunded to the Company through
payroll deduction in each payroll period at the rate of 10 percent of the
employee’ s basic weekly wage.
(b) An employee reengaged and again separated from the payroll after having
former service credited, shall be paid the difference between the amount
of the termination allowance computed in accordance with the provisions
of this Article and any former termination allowance which he may have
received as a result of a previous separation and not refunded to the
Company.
Section 5. Questions arising under this Article may be referred to the griev­
ance procedure, but neithej the interpretation nor the application of the provisions
of this Article shall be subject to arbitration.

Section 3. “Regular employees” are persons whose employment is reasonably
expected to be permanent at the time they are engaged although it may be terminated
subsequently by action on the part of the Company or the employee.
Section 4. “ Temporaiy employees” are persons whose employment is intended
to last more than three (?) weeks but not more than one (1) year. Such employees
shall be reclassified as “ -egular employees” if their employment exceeds one (1)
year continuous service since date of last engagement.
Section. 5, “Occasional employees” are persons whose employment is intended
to last for a single period ol three (3) weeks or less, or intermittently for periods of
three (3) weeks or less.




31

Section 7. The term “ Traffic central office operating employees shall be
deemed to mean Traffic operators and employees engaged in the Traffic Department
as Service Assistants, Service Observers, and Routine Clerks.
Section 1 5. The term “net credited service” shall mean Bell System net cred­
ited service as determined by the Company and shown on the Company’ s records.




32

Appendix B. Selected Bibliography on Adjusting to
Technological Change
I. Publications Dealing Specifically with the Telephone Industry
Automation: Impact and Implications, prepared by the Diebold Group Inc.,
for the Communications Workers of America, AFL-CIO, April 1965.
Loewenberg, J. Joseph. Effects of Change on Employee Relations in the
Telephone Industry. Unpublished Doctoral Dissertation submitted to the
Graduate School of Business Administration, Harvard University, June 1962.
(Various pagings)
Technology and Manpower in the Telephone Industry. 1965-75. Manpower
Research Bulletin No. 13, U.S. Department of Labor, November 1966.
The Change from Manual to Dial Operation in the Telephone Industry, Women’ s
Bureau, U.S. Department of Labor, 1933.
Women Telephone Workers and Changing Technology,
Women’ s Bureau, U.S. Department of Labor, 1963.

Bulletin No. 286,

II. Publications Dealing with Technological Change and Adjustment in a Variety
of Industries
Adjusting to Technological Change, Edited by Gerald G. Somers and others,
Harper and Row, 1963.
Bok, Derek and Max D. Kossoris. Methods of Adjusting to Automation and
Technological Change. Appendix to the Report of the President’ s Advisory
Committee on Labor-Management Policy, U.S. Department of Labor, 1964.
Creative Collective Bargaining. Edited by James J. Healy, Prentice-Hall,
Inc., 1965.
Helfgott, Roy B. andR. Beaumont. Management Automation and People, Indus­
trial Relations Counselors, 1964.
Kennedy, Thomas. Automation
University P ress, 1962.

Funds and Displaced Workers,

Harvard

Manpower Implications of Automation. Manpower Administration, U.S. Depart­
ment of Labor, September 1965.
Seminars on Private Adjustments to Automation and Technological Change.
President’ s Advisory Committee on Labor-Management Policy, May-June,
1964. (Various pagings)
Shultz, George P. and Arnold Weber. Strategies for the Displaced Worker,
Harper and Row, 1966.




33

Technology and the American Economy. Report of the National Commission
on Technology, Automation and Economic Progress, Vol. I, February 1966.
Wedderburn, Dorothy. Manpower Planning for Technical Change at the Enterprise Level. Paper delivered at the International Conference on Methods of
Adjustment of Workers to Technical Change at the Plant Level, Organization
for Economic Cooperation and Development, Amsterdam, November
15-18, 1966.

III. Bureau of Labor Statistics Publications
Adjustments to the Introduction of Office Automation, Bulletin No. 1276, I960.
Case Studies of Displaced Workers, Bulletin No. 1408, 1964.
Impact of Office Automation in the Internal Revenue Service, Bulletin No.
” 7364, 1963.
~
Impact of Office Automation in the Insurance Industry, Bulletin No. 1468, 1966.
Labor Mobility and Private Pension Plans: Study of Vesting, Early Retire­
ment and Portability Provisions, Bulletin No. 1407, 1964.
Management Rights and Union-Management Cooperation, Bulletin No. 1425-5,
1966..
Manpower Planning to Adapt to New Technology at an Electric and Gas Utility,
Report No. 293, 1965.
The Operation of Severance Pay Plans, Bulletin No. 1462, 1966.
Severance Pay and Layoff Benefit Plans, Bulletin No. 1425-2, 1965.
Supplemental Unemployment Benefit Plans and Wage-Employment Guarantees,
Bulletin No. 1425-3, 1965.




34
* U .S. G O V E R N M E N T P R IN T IN G O F F IC E : 1 9 6 8 0 - 2 9 1 - 7 0 9

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