Full text of Monthly Labor Review : April 1945, Vol. 60, No. 4
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
APRIL 1945 IN THIS ISSUE A DD War—How Can We Prevent It? Employment Guaranties in Union Agreements Probable Post-War Demand for Public Construction Post-War Outlook in Air-Line Employment Trend of Child Labor, 1940-44 Extent of Collective Bargaining and Union Status, 1945 Earnings in Ammunition Loading, 1944 UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UNITED STATES DEPARTM ENT OF LABOR F rances P erkins , Secretary + BUREAU OF LABOR STATISTICS I sadob L u b in , Commissioner (on leave) A. F. H inrich s , Acting Commissioner H e n r t J. F itzg e ra l d , Chief, Business Management Branch Editorial and Research (vacancy) W al ter G. K e i m , Director of Field Operations H ugh B. K i l l ou gh , Chief, Em ployment and Occupational Outlook Branch N. A rnold T ol lé s , Chief, Working Conditions and Industrial Relations Branch A ry nes s J oy W i c k e n s , Chief, Prices and Cost of Living Branch J ohn H. S m it h , Acting Chief Statisti cian J ohn H. G. T i e r s o n , Consultant on Post-War Employment Policy F aith M. W illiams , Consultant on Costs and Standards of Living H er ma n B. B y e r , Assistant Chief, Employment and Occupational Outlook Branch L e s t e r K el l og g , Assistant Chief, Prices and Cost of Living Branch divisions Construction and Public Employment* Hersey E. Riley Consumer’s Prices, Ethel D. Hoover Cost of Living, Dorothy S. Brady Employment Statistics, Alexander Sturges General Price Research (vacancy) Industrial Hazards, Max D. Kossoris Industrial Prices, Jesse M. Cutts Industrial Relations, Florence Peter son, assistant chief, Working Condi tions and I ndustrial RelationsBranch Labor Information Service, Boris Stern Machine Tabulation, Joseph Diager Occupational Outlook, Charles Stewart Productivity and Technological De velopment, W. Duane Evans Wage Analysis, Robert J. Myers Copies of Bureau of Labor Statistics publications and further information may be obtained from the several field offices, a list of which appears on the inside back cover of this issue. The services of the Bureau’s Regional Directors and their technical staff« are available to labor organizations, management, and the general public for consultation on matters with which the Bureau deals, as, for example, employment, prices, wages, absenteeism, labor turnover, and industrial accidents. The M onthly L abor R e v ie w is for sale by the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C. Price, SO cents a copy. Subscription price per year in the United States, Canada, and Mexico, $8.60, other countries, $¿.75. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS > # # *w ***# *< N + + C O N T E N T S APR 28 JL Special articles: Ip / : - A P R IL 1945, Vol. 60, No. 4 LIBRA Building the peace______________________________________________ War—How can we prevent it?___________________________________ Guaranteed-employment and annual-wage provisions in union agree ments_______________________________________________________ Probable volume of post-war construction: Part 3.— Demand for public construction___________________________________________ P age 701 702 707 728 Occupational outlook: Post-war employment outlook in aviation occupations: Part 1.— Job prospects with air lines________________________________________ 739 Child labor: Trend of child labor, 1940-44____________________________________ 756 Employment conditions: Labor conditions in the Philippines______________________________ Working conditions and cost of living in Chile, 1937-44____________ Working conditions in the United Kingdom in 1944________________ 776 789 794 Wartime policies: Ruling on “fringe” wage adjustments_____________________________ Wartime salary control in Canada________________________________ 797 798 Post-war reconstruction: Reconstruction planning in India_________________________________ 800 Industrial injuries: Industrial injuries in the fourth quarter of 1944___________________ 805 Social security: Increase in unemployment benefits in Great Britain________________ Social insurance in Panama, 1943-44_____________________________ 809 811 Industrial relations: Extent of collective bargaining and union status, January 1945_____ Guaranteed-employment and annual-wage provisions in union agree ments________________________________________________________ 816 707 Industrial disputes: Strikes and lockouts in February 1945____________________________ Activities of U. S. Conciliation Service, January 1945______________ 63 6 3 7 2 - 45 - 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 823 825 CONTENTS IX Labor laws and decisions: Recent decisions of interest to labor------------------------------------------------ P age 826 Wage and hour statistics: Hourly earnings in the ammunition-loading industry, 1944---------------Trend of factory earnings, 1939 to January 1945------------------------------Canada— Increased efficiency and reduced hours in a Canadian enterprise____________________________________________________ Ireland—Employment, earnings, and hours, October 1943--------------- 837 852 853 853 Wage and hour regulation: New minimum rate for cotton-textile industry-------------------------------Wage order for sugar industry in Puerto Rico----------Minimum wage rates in Costa Rica, August 1944-June 1945-----------Minimum wage rates in New Zealand, 1944---------------------------------- 856 857 857 859 Cost of living and retail prices: Living costs in large cities, February 1945------------------------------------Retail prices of food in January 1945--------------------------------------------Retail prices of coal in 1944---------------------------------------------------------- 862 865 871 Wholesale prices: Wholesale prices in February 1945----------------------------------------------- 874 Labor turnover: Labor turnover in manufacturing, mining, and public utilities, January 1945__________ 880 Building operations: Probable volume of post-war construction, Part 3--------------------------Building construction in urban areas, February 1945--------------- ------- 728 886 Trend of employment, earnings, and hours: Summary of reports for February 1945-----------------------------------------Industrial and business employment--------------------------------------Public employment_________ Employment on shipbuilding and repair---------------------------------Construction employment___________________________________ Detailed reports for industrial and business employment, January 1945: Estimates of nonagricultural employment-------------------------------Industrial and business employment__________________________ Indexes of employment and pay roll--------------------------------Average earnings and hours_____________________________ Civilian labor force, February 1945----------------------------------------- 889 889 890 891 892 894 894 895 904 908 Labor chronology: Chronology of labor events, October-December 1944---------------------- 909 Labor conditions in Latin America __________________________ 789,811,857 Recent publications of labor interest_________________________________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 917 This Issue in Brief War—How can we prevent it? The Dumbarton Oaks conference agreed upon the advisability of an interna tional association of nations and made certain proposals by which it was thought such an organization could endeavor to prevent wars. These fall into two cate gories: Firm measures to deal with each dispute as it arises, and measures to , promote the well-being of all peoples. Six specific proposals for insuring peace are p discussed in an article on page 702. Employment and annual-wage guaranties in union agreements. Guaranteed employment or annual wages are assured to about 42,500 workers out of 8 million workers covered by employer-union agreements analyzed by the Bureau of Labor Statistics. Over 70 percent of the workers enjoying such guaran ties are employed by relatively small companies in the service and distributive industries. Although there are a few outstanding examples in manufacturing companies of considerable size, the total number of employees in manufacturing industries covered by guaranties in agreements totals only about 12,500. Most of the guaranty plans in effect are limited in scope; some restrict the guaranty to particular groups of workers; some provide less than a year’s guaranteed em ployment; and some permit the employer to cancel or reduce the guaranties under specified circumstances. A discussion of the types of plans provided in union agreements and a description of such plans in manufacturing and non manufacturing agreements are given in the article on page 707. Probable post-war demand for public construction. Although preparation for public construction is still unsatisfactory, it has im proved substantially during the past year and is likely to improve further. An average volume of about 3 billion dollars per year at 1940 price levels is expected on the basis of the assumptions made. The largest element of public construction will be highway work, estimated at 1.3 billion dollars per year, plus 600 million dollars in maintenance. A fairly extensive program of reclamation, conservation, and development is likely. Schools will be the largest item of building construc tion, slightly larger than all other types of public buildings combined. Sewer and water projects seem to be the most strongly felt need of local government units. Page 728. Post-war outlook for air-line employment. To provide information needed in vocational guidance of veterans and others, estimates have been made of the numbers of workers likely to be employed in different air-line jobs 5 years after the war, on the basis of conservative and also of relatively optimistic assumptions as to future air traffic. For pilots, the post-war employment figures arrived at would mean about 2,000 to 10,000 more jobs than at present. For mechanics and related personnel, the expansion in employment envisaged was from 6,000 to 26,000 above current levels. Comparable gains were found to be in sight for some but not all other occupational groups studied. Page 739. , Trend of child labor 1940-44. The years from 1940 to 1944 have radically changed the picture of child labor and youth employment in the United States. Employment and age certificate records as reported to the Children’s Bureau, which show the trend from year to year rather than a cross section of the actual number of young persons employed at any given moment, indicate that more than 7 times as many boys and girls 14 through 17 years of age entered the labor market in 1943 as in 1940 and went https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis hi IV THIS ISSUE IN BRIEF into work generally subject to Federal or State child-labor regulation. In States and cities reporting for each of these years, the number of minors 14 through 17 years of age obtaining certificates for full-time or part-time work increased from roughly 175,000 in 1940 to more than 1,320,000 in 1943. Preliminary data for 1944 in dicate that in general the high level of 1943 is being maintained. Page 756. Labor conditions in the Philippines. The great majority of the Filipinos, in 1939, lived under a primitive agricul tural system. Only 601,335 were employed in manufacturing and mechanical industries. The average daily wage for all occupations was about 30 cents in United States currency. Wages of more than 85 percent of the workers were fixed by customary contracts. Labor organizations, in 1938, had a membership of 46,456, and were under State control. Cooperatives, encouraged and super vised by the Government, had about 120,000 members. Social insurance was limited to accident compensation and a pension system for certain classes of civil servants. The Philippine economy was disrupted by the Japanese, with resulting unem ployment, inflation, and a lower standard of living. Page 776. , Extent of collective bargaining and union status January 1945. Altogether, 14^ million workers, or about 47 percent of all wage earners, were employed under the terms of union agreements at the beginning of 1945. Agree ment coverage included approximately 65 percent of the manufacturing and 33 percent of the nonmanufacturing wage earners. About 6% million workers were covered by closed- or union-shop agreements, and approximately 3% million by agreements requiring maintenance of membership; the remainder had no union membership requirements as a condition of employment. Almost 6 million work ers were covered by some form of check-off. Page 816. , Hourly earnings in the ammunition-loading industry 1944. Straight-time average hourly earnings of workers in representative key jobs amounted to 77 cents in shell- and bomb-loading plants and to 71 cents in bagloading plants. Women comprised nearly three-fifths of the entire labor force in the ammunition-loading industry and nearly two-thirds of the employees in bag loading. In contrast to other manufacturing industries, employment op portunities for women in ammunition loading are not limited to a few specialized jobs. A description of the industry and detailed wage data are given in an article on page 837. Earnings data for the explosives-manufacturing industries were published in the March 1945 issue of the Monthly Labor Review. , , , Employment earnings and hours in Ireland October 1943. Average hourly earnings of males in Ireland ranged from Is. O.ld. to 2s. 2.8d. in October 1943. Earnings of females were slightly over half those of males in the same industries. The range of hours worked during the week was 36.2 to 50.6 for males and 22.4 to 46.6 for females at that time. Figures are for indus tries employing a total of 142,855 persons. For further details on earnings, hours worked, and employment in those industries, see page 853. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V CURRENT LABOR STATISTICS Current Statistics of Labor Interest in Selected Periods 1 ____________________ [Available in reprint form]_________________ 1945 Item Unit 1944 Febru January Decern ary ber 1939: average Febru for year ary Employment Civilian labor force: Total (B C )____________ M ale_________________________________ Female_______________________________ Employed 3___________________________ M ale_____________________________ Female________ _____ _____________ Nonagricultural___________________ Agricultural_______________________ Unemployed, total________________ ____ Civilian employment in nonagricultural es tablishments: T otal3____________________ M anufacturing________1_______ _______ M ining_______________________________ Construction *_________________________ Transportation and public utilities______ Trade__________________________ ______ Finance, service, and miscellaneous______ Federal, State, and local government, ex cluding Federal force-account construc tio n ..____________ ______ ____________ M ilitary personnel____________ ____ _______ Wage-earner employment: Manufacturing________________________ Bituminous-coal mining________________ Class I steam railroads, including salaried employees (IC C )____________ ______ _ Hired farm workers (B A E )_____________ 51,430 33, 660 17, 770 50, 550 33,170 17, 380 43,760 6,790 880 50.960 33, 650 17, 310 50,120 33,160 16.960 43,430 6,690 840 51,250 33,720 17,530 50, 570 33, 320 17, 250 43, 480 7,090 680 51,150 34, 520 16,630 50,260 34, 010 16,250 43, 610 6,650 890 3 54, 230 2 40,950 2 13,280 2 46, 930 2 35, 600 2 11,330 2 37, 430 2 9,500 2 7, 300 _do. _do. .do. do. _do. -do. _do. 38,000 15, 537 802 564 3,764 7,044 4,356 37,997 15, 557 804 564 3,735 7,088 4, 356 38,888 15, 630 806 594 3, 771 7, 611 4, 304 38, 840 16, 735 858 715 3,704 6,867 4,131 30,353 10,078 845 1,753 2,912 6, 618 4,160 _do. _do. 5,938 12, 000 5,894 11,900 6,172 11,900 5,830 10, 600 3,988 362 .do. -do. 13,095 -338 13,112 338 13,190 338 14,254 370 8,192 371 do. .do. 1,413 1,494 1, 391 1,434 1,400 2,048 1,387 1,681 « 1,784 45.4 45.4 39.5 38.8 45.6 43.1 39.8 39.4 3 45.2 «44.0 « 40.0 37.6 37.7 27.1 43.0 32.4 $52.90 $47. 52 $54.25 $26.99 $52.98 $47.45 $50.39 $26.41 $53.48 $45.29 $52. 50 $25. 66 $48.77 $23.86 $23.88 $21.17 $30. 24 $1. 040 $1.187 $0. 728 $1. 359 $1.195 $0. 707 $1.297 0.886 $1. 359 $1.047 $1. 205 $0. 751 $1. 364 $0. 971 $0. 963 .931 $0. 622 $0. 894 $ 0. T housands... ___ d o ............ ___ do______ ___ do______ ___ do______ ___ do______ ___ do______ ___ do______ ___ do______ Hours of labor Average hours per week of wage earners: Manufacturing___________________ Bituminous-coal mining__________ Retail trade_____________________ Building construction (private)____ Hours. ___ do. ___ do. ___ do. Weekly earnings Average weekly earnings of wage earners: M anufacturing____________________ Bituminous-coal mining____________ Retail trade______________________ Building construction (private)_____ Hourly or daily earnings Average hourly earnings of wage earners: Manufacturing________________________ Bituminous-coal mining________________ Retail trade___________________________ Building construction (private) ............. Average straight-time hourly earnings in manufacturing, using— Current employment by industry___ Employment by industry as of Janu ary 1939_________________________ Quarterly farm wage rate, per day without board (B A E )______ ____________________ $ 1. 002 886 3$0. 850 $3. 50 $4. 15 0.633 0. 536 0.933 $0. 622 1$1. 53 Industrial injuries and labor turnover Industrial injuries in manufacturing, per mil lion man-hours worked__________________ Labor turnover in manufacturing: Total separations, per 100 employees____ Quits, per 100 employees____________ Lay-offs, per 100 employees_________ Total accessions, per 100 em p lo y ees...^ ... i 18.8 6.2 4.6 0.6 15.4 «6.7 «4.6 7.0 5.7 4.3 0.5 5.1 310 109 240 44 280 85 340 146 218 98 412 0.06 228 0. 03 380 0.05 459 0.06 1,484 0.28 « 0.8 « 6.5 (8) ( 8) ( 8) ( 8) - Strikes and lockouts > Strikes and lockouts beginning in month: Number______________________________ Number of workers involved____________ Thousands___ All strikes and lockouts during month—mandays idle: Number_______________________ _____ _ _do. Percent of available working tim e_______ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CURRENT LABOR STATISTICS VI Current Statistics of Labor Interest in Selected Periods 1—Continued [Available in reprint form] 1945 Item Unit 1944 1939: average Febru January D ecem Febru for year ary ber ary Cost of living Cost-of-living index (wage earners in large cities): All items 10______ ______ . . . ____ Food______ _ ______ _ . __________ _ Clothing.. _ . . . _ _ _____ ... ... . Rent . . . ___ . ... Fuel, electricity, and ice________ Housefurnishings_______________ _____ Miscellaneous__ . . . ____ __________ 1935-39=100.._ 1935-39=100... 1935-39 = 100... 1935-39=100 1935-39= 100. __ 1935-39= 100. __ 1935-39=100— 126.8 136.5 143.3 127.1 137.3 143.0 110.0 143.8 123.2 1935-39=100... 1935-39= 100. 1935-39 = 100... 1935-39=100. __ 1935-39=100... 1935-39= 100. 1935-39=100. __ 1935-39=100— 1935-39=100— 109.7 143.6 123.1 127.0 137.4 142.8 108 3 109.4 143.0 123. 1 123.8 134.5 135.2 108 1 110.3 128.7 118.7 99.4 95.2 100.5 104 3 99.0 101.3 100.7 136.5 108.7 130.7 133.5 153.1 168.9 124.5 123.5 126.3 137.3 108.7 130.2 133.5 169.6 168.9 124.4 123.4 126.4 137.4 108.6 129.9 133.5 188.5 164.2 124.3 123.3 126.4 134.5 108. 1 130.5 133.5 142.5 163.0 124.3 123.8 126.6 95.2 94.5 96.6 95.9 91.0 94.5 95.5 87.7 100.6 1926-100 1926=100_____ 105.2 100.2 104. 9 100.1 104.7 100.0 103.6 99.3 77.1 79.5 1926=100 . 1926=100_____ 1926-100 99. 2 127.0 104.7 99.1 126.2 104.7 98 9 125. 5 105.5 98. 0 122.5 104.5 81. 3 65.3 70.4 12, 739 13, 357 14,405 12,206 55,319 Retail food, prices (large cities) Retail price index: All fo o d s_______________ Cereals and bakery products___________ M eats____ . . . . ____ ___ . . . _____ Dairy products________________________ E ggs--------------------------------------------------Fruits and vegetables___________ . . . . . . Beverages ____ ______________________ Fats and o ils.. __________________ . . Sugar and sweets___ . . . _____ _ ._ ___ Wholesale prices Wholesale price index: All commodities . . All commodities other than farm products. All commodities other than farm products and foods__________________ . Farm products.. ____________________ Foods. ____ _ _________ __________ National income and expenditures National income payments, total (B F D C )__ Millions of dollars__ _ Consumer expenditures for goods and services, total (B F D C )___________________________ __ _do_______ Retail sales, total (B F D C ). _ ______ ______ ____do_ _____ 5,168 n 26,646 5,462 7,445 » 16, 651 4, 753 «2,749 Production Industrial production index, unadjusted (FR): T otal___ ____ . . . ________________ Manufacturing. _ __________ . . . _____ Minerals. . . . . . . . . . __________ Bituminous coal (BM ) . _________ _ . . . ._ 1935-39= 100... 231 1935-39=100... 249 1935-39=100... 135 Thousands of short to n s... 46, 900 52, 760 344 77 7,700 130 345 67 7,400 132 Construction expenditures, ail types (exclud ing maintenance, except in farm construc tion). _______ _ __ _________ _ _____ Millions of dollars__ _ Building construction started in urban areas.. ____do_ _ ___ N ew family-dwelling units in nonfarm areas.. Carloadings index, unadjusted (F R )________ 1935-39=100— 230 247 134 230 248 131 240 259 136 109 109 106 45, 774 52,817 32, 905 346 70 10, 800 128 350 73 13, 500 133 «408 (8) 30, 700 101 I Source: Bureau of Labor Statistics unless otherwise indicated. Abbreviations used: BC (Bureau of the Census); ICC (Interstate Commerce Commission); BAE (Bureau of Agricultural Economics); B FD C (Bureau of Foreign and Domestic Commerce); FR (Federal Reserve); BM (Bureau of Mines). M ost of the current figures are preliminary. 2 10-month average—March to December 1940. 3 Excludes employees on public emergency work, these being included in unemployed civilian labor force. Civilian employment in nonagricultural establishments differs from employment in civilian labor force mainly because of exclusion of such groups as self-employed and domestic and casual workers. 4 Includes workers employed by construction contractors and Federal force-account workers (nonmainte nance construction workers employed directly by the Federal Government). Other force-account non maintenance construction employment is included under manufacturing and the other groups. 5 February. 6 January. 7 Cumulative frequency rate, January to December 1944. 3 N ot available. 9 The same series as those formerly published in this table as “ Strikes.” 10 For the coverage of this index, see p. 863. II Data for fourth quarter. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW APRIL 1945 B uilding the Peace By F r a n c e s P e r k in s , Secretary of Labor IN THE following pages appears the first of a series of State Depart ment documents to be republished in the Monthly Labor Review. They are concerned with the issues of the forthcoming Conference of the United Nations and are being printed here because it is felt that every available medium should be used to place before the American people as much information as possible about the vast aims of the April Conference in San Francisco. One aspect of international organization concerns the Department of Labor and all persons having an interest in labor questions. The United States belongs to the International Labor Organization. Last September it was suggested that the ILO become a member of the large family of international institutions envisaged in the Dumbarton Oaks proposals. Recently, in London, the Governing Body of the ILO declared that the Organization welcomed the opportunity to be associated with the Dumbarton Oaks family on terms that would permit the ILO to make its best contribution toward a peaceful and prosperous world. The incorporation of the ILO into a general international organ ization for the maintenance of peace will strengthen both. Without peace there can be no genuine and permanent improvement in work ing conditions. Among nations constantly in dread of war, liberty and expanding standards of living for the worker or the employer will not long endure. The tripartite ILO has for more than a quarter of a century voiced the hopes of the working man. The hopes and aspirations of working people will always tend toward the establishment and maintenance of a fair and honorable peace. The ILO is the appropriate channel through which those hopes and aspirations not only can be voiced, but also can be translated into feasible programs of international and national action. Thus, a sound, developing, world-wide program of improved living standards and high employment levels may be both a cause and a result of stable international relations. Viewed thus, the ILO is a valuable tool in the making of the peace. The ILO, however, is no tool or cog in a huge international machine. It is a leaven of the whole, a great moral force, a benign social phenomenon, like conscience, shaping the whole toward social justice. The documents here reprinted seek to give our people full oppor tunity to study the issues of the San Francisco Conference. When they have read, pondered, and discussed “Dumbarton Oaks,” they will be ready to decide; and on their decision and on that of their elected representatives rests the fate of the world. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 701 W ar— How Can We P revent I t ? 1 Peace is everybody’s business. In the coming months the foundations of peace will be laid. We want to make the best possible start. This means that the peoples of the United Nations must understand what is at stake and what is proposed. The Foreign Affairs Outlines prepared by the Department of State set forth in simple terms what this Government is doing or proposing. These Outlines give factual information for American groups interested in studying and discussing these vital public policies in their own way. I hope every American will participate in discussion of these subjects during the coming months and will attempt to make up his mind about them. The State Department will be glad to receive individual and group expression' of opinions on these crucial problems. E d w a r d R. S t e t t i n i u s , Jr., Secretary of State. A Plan for Peace At Dumbarton Oaks—an estate in Washington, D. C.—experts from the United States, Russia, Great Britain, and China considered from every angle the problems of peace and security. They studied previous attempts to build and keep the peace. After long prepara tion and weeks of discussion they submitted proposals for an inter national organization which they believed would constitute a sound basis for a charter to be drawn up by a conference of all United Nations. These proposals, though not complete on all points or stated in final legal terms, were put before the peoples of the United Nations for their careful consideration. The experts, including our own, agreed that an international organ ization could try to prevent wars in two ways: 1. By dealing firmly and quickly with each dispute as it arises, using united force, if necessary, to prevent or stop armed conflict. (This is the subject of the present article.) 2. By promoting the well-being of all nations and peoples. (This part is dealt with in articles that will appear in succeeding issues of the Monthly Labor Review.) Secretary of State Stettinius has stated the following principles underlying the proposals for keeping the peace: 1. Peace can be maintained only if the peace-loving nations of the world band together for that purpose. In doing so, they have to recognize that each State has a right to a voice in the affairs of the family of nations; but also that nations are not equal in their power to prevent war. 2. War can be prevented only if the great powers employ their dominant physical power justly and in unity of purpose to that end. Hence the prominence given to the Security Council, in which the United States, Great Britain, and the Soviet Union, China, and France would hold permanent seats. i The first of a series of four Foreign Affairs Outlines on “Building the Peace,” prepared by the Depart ment of State, which w ill appear in the M onthly Labor Review. Thè other three Outlines deal with the following subjects: Prosperity—How Can We Achieve It?; Social Progress—How Can We Work For It?; and Freedom—How Can We Achieve It? Reprints of these Outlines may be obtained from the Department of State or from the Superintendent of Documents, Washington 25, D . C. 702 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAR— HOW CAN WE PREVENT IT? 703 3. To prevent and suppress wars is not enough. If we are to have lasting peace, we have to build peace. Hence the need for a General Assembly which, as the highest representative body in the wmrld, will extend the rule of law in international relations, and advance the material and cultural welfare of all men. 4. As peace becomes more secure, armaments can and should be reduced pro gressively on a world-wide basis. What is Proposed? Six main points are made in the proposals on the problem of keep ing the peace: 1. Renounce Use of Force We, and every other nation joining the United Nations Organiza tion, would obligate ourselves to settle our disputes only by peaceful means, and not by force or the threat of force. 2. Investigate Disputes Disputes between nations that might cause friction or lead to war would be thoroughly studied by the United Nations Organization. Any country, whether it is a member of the Organization or not, could bring a dispute to the General Assembly of all Member Nations or the Security Council of 11 Members (United States, Great Britain, Russia, China, and France are permanent members, and 6 nations are elected periodically by the Assembly). The Security Council would be on the job all the time. 3. Seek Peaceful Settlements Several ways of settling a dispute could be recommended by the Security Council or by the General Assembly: Urge the nations involved to get together and work out the prob lems to their mutual satisfaction. Propose some solution to them. Ask them to submit their differences to a third party for mediation, conciliation, or arbitration. Recommend that they take a dispute involving legal questions to the International Court of Justice. 4. Take Political and Economic Action Should the Security Council consider the above methods inadequate; the proposals further provide for the enforcement of peace by non military measures—diplomatic and economic. Diplomatic action might be taken, cutting off relations with nations threatening war. Communications might be broken—stopping trains, ships, letters, cables, or telegrams from going in or out of the nation threatening to break the peace. Economic boycott might be used to withhold certain important supplies or materials, or trade with an offending nation might be completely stopped. Conditions Necessary to Success of These Actions For such economic and political measures to be successful, the member nations, particularly the great powers, would have to cooper ate fully in applying them without delay. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 704 MONTHLY LABOR REVIEW— APRIL 19 45 Force to back them up would have to be organized and ready for immediate use in case the economic measures prove insufficient to stop an aggressor. 5. Take Military Action The Security Council would decide when and if united force should be employed. Force is considered the last resort, but in a crisis it might have to be used before other methods could be employed. This would depend on the nature of the threat to peace. A Military Staff Committee composed of the Chiefs of Staff of the five permanent members of the Security Council or their represent atives would advise the Council on military matters. This Com mittee would plan for effective use of the united forces pledged by the member nations. Why not an international police force? The military experts at Dumbarton Oaks felt that national contingents of land, sea, and air forces would be more practical than an international police force, for these reasons: Standing forces of member nations would be available at all times, near any place where they might be needed, to quell a disturbance of the peace. The United Nations have among them good military bases in all parts of the world. Effective action would depend on forces trained at widely distributed bases, ready for speedy movement. Effective military force requires national support—munitions, equipment, training, discipline, tactics, and the like. 6. Advise on Regulation of Armaments The organization would make plans for the reduction and regula tion of armaments to submit to the member nations. The General Assembly of all Member Nations, the Security Council, and the Military Staff Committee would work on this problem. A sense of security is probably necessary before nations will be willing to reduce armaments. It is assumed that peace-loving nations do not want to divert any more of their resources to arms than may be necessary. Successful cooperation in keeping the peace could pave the way for a general reduction of the burden of armaments. How the Security Council Votes 1. Each member of the Security Council, consisting of five perma nent and six elected members, would have one vote. 2. Decisions on matters of procedure would be made by an affirma tive vote of any seven members. 3. Other decisions would be made by an affirmative vote of seven members including all of the permanent members, except that in all matters regarding the investigation of disputes and their peaceful settlement, no party to a dispute would be entitled to vote. This means that where the Council is engaged in performing its function in the peaceful settlement of disputes, no nation, large or small, would be above the law. Where the Council is engaged in performing its political functions of action for maintaining or restoring https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAR— HOW CAN WE PREVENT IT? 705 peace, a unanimous agreement among the permanent members (United States, Great Britain, Russia, China, and France) would be required. Secretary of State Stettinius said regarding these proposals: Where the Council is engaged in performing its political functions of action for maintenance of peace and security, a difference is made between the permanent members of the Council and other nations for the practical reason that the per manent members of the Council must, as a matter of necessity, bear the principal responsibility for action. Unanimous agreement among the permanent members of the Council is therefore requisite. Will This Work? Because the previous attempt to keep the peace through the League of Nations did not prevent this war, people wonder whether the proposed Organization could succeed. This is a matter of opinion, but there are certain facts which should be considered in discussing it. How Does It Differ From the League? The United States was not a member of the League. It is proposed that we shall be a member of the new Organization. In contrast to the League Covenant, unanimity of all the members of the General Assembly and of the Security Council would not be required. We and all other nations would make special arrangement to supply certain types and quantities of armed forces to back up the decisions of the Security Council, whereas the League had neither armed force nor a Military Staff Committee.. The Security Council would be in continuous session. These are the main differences that bear on the problem of prevent ing the outbreak of war. Could It Prevent All Wars? No one can predict the future, but certain questions at this point may help clarify the discussion. Do you think the Security Council could enforce its decisions in cases where small nations may be involved? Would the Security Council be able to prevent a major power from going to war? Do you think that cooperation in an international organization and the force of world opinion would help to preserve peace among the major powers? What Is Needed To Make It Work? The President in his address to Congress on March 1, 1945, said: No plan is perfect. Whatever is adopted at San Francisco will doubtless have to be amended time and again over the years, just as our Constitution has been. No one can say exactly how long any plan will last. Peace can endure only so long as humanity really insists upon it, and is willing to work for it— and sacrifice for it. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 706 MONTHLY LABOR REVIEW— APRIL 194 5 The Choice Before Us The proposals put on paper at Dumbarton Oaks show a large area of agreement among the principal United Nations, and will form the basis of the discussion between all the United Nations at San Francisco. The Charter drafted at San Francisco will be presented to the nations for their decision. Each nation will decide for itself whether to adopt and support that Charter, or rej ect it, and seek its security and welfare in other ways. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G uaranteed-E m ploym ent and A nnual-W age Provisions in U nion A greem ents 1 IN RECENT years there has been great interest in various methods of increasing the job security of American wage earners. The unem ployment-compensation laws, public-works programs, and sections of the Fair Labor Standards Act represent governmental attempts to provide full employment or measures for alleviating unemployment. The various State unemployment-compensation laws not only provide a limited income, after a waiting period and for a maximum number of weeks, but some of them seek to encourage regularization by including merit-rating provisions under which the employer’s unemployment tax decreases in proportion to the increase in employment stabilization. The Fair Labor Standards Act grants a partial exemption from the overtime-pay requirements to those companies entering into agree ments with unions which guarantee continuous employment for 52 weeks and limit hours to 2,080 per year. Although a number of employers have made efforts toward regular izing employment within their plants, only a few have gone so far as to guarantee annual wages or employment to all or substantial por tions of their employees. The explanation of the infrequency of an nual-wage and guaranteed-employment plans in American industry today lies in the very problem which such plans are designed to cor rect. As a rule, the only companies which feel they can guarantee full-time employment or annual wages are those which have sub stantially solved the problem of regularizing employment. Some guaranty plans, after being in operation for a year or two, have been abandoned when the companies found they were unable to finance them during a prolonged decrease in production. Labor unions, of course, have always been keenly interested in all efforts, governmental and private, to secure regular and full employ ment. On occasion, they have cooperated with employers in plans for reducing seasonal fluctuations as well as programs for expanding the business of a particular industry or company. Faced with the stark fact of insufficient jobs for all, unions have sought to mitigate some of the effects of job insecurity through share-the-work plans, seniority rules, and dismissal pay for lay-offs. None of these measures, how ever, provides security of income or employment: Sharing work also means sharing unemployment; seniority rules merely decide who is to be laid off; dismissal pay only softens the blow from loss of job. To an increasing extent unions are seeking job security for their members through the inclusion of employment or wage guaranties in their contracts with employers. The present report is confined to a discussion of such guaranties in employer-union agreements.2 As will be seen in the following pages, very few of the agreements cur rently in force contain a guaranty of employment, and most of those which are in effect are limited in scope. Some restrict the guaranties to particular groups of workers; some provide less than a year’s guaranteed employment; some permit the employer to cancel or reduce 1 Prepared in the Bureau’s Industrial Relations Division by Abraham Weiss under the direction of Florence Peterson. 2 See M onthly Labor Review, August 1940, p. 283, for report similar to this one. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 707 708 MONTHLY LABOR REVIEW— APRIL 1945 the guaranty under specified circumstances. None of them provides guaranties of employment for prolonged periods of time, since they are necessarily limited to the duration of the contracts, most of which are in effect for only 1 year. Limited as they are, the existing employment-guaranty provisions in union agreements represent a partial fulfillment of workers’ quest for job security; they may also indicate the beginning of a more general adoption of plans which will provide some measure of security to an increasing number of workers. Extent and Characteristics of Guaranteed Plans Extent of plans.-—Guaranteed employment or annual wages are assured to approximately 42,500 workers out of 8 million workers covered by employer-union agreements analyzed (table 1). Most of these workers (approximately 30,000) are employed in the service and distributive industries, the agreements for which were negotiated with companies employing relatively small numbers of workers. Although there are a few outstanding examples in manufacturing companies of considerable size, the total number of employees in manufacturing industries who are covered by agreements providing guaranteed employment is very small—about 12,500. of Employment and Annual-Wage Guaranty Provisions in Union Agreements Agreements examined: N um ber. _______ ___ ___________________ __ _ Workers employed___ ______ . . . ____ Agreements providing guaranties: Number. ______ . . . . . . . Companies covered... . . . . .. Workers covered____ _________ _________ ____ _ All industries (>) 8,000,000 (9 0) 42, 500 Manufacturing Nonmanufac turing indus industries tries 6, 500 6, 000,000 O oo oo o Item 131 142 12, 500 oCO oo o T a b l e 1.—Extent 1 The exact number of agreements and companies covered cannot be estimated since many of the agree ments are uniform and are separately signed by an unknown number of individual employers, and some ■were negotiated through employers’ associations whose membership is not available. In such instances, available employment data for industries and areas are used for estimating the number of workers covered by the agreements. Types of plans.—Broadly, the plans provided in current employerunion agreements are of two kinds—those guaranteeing employment and those guaranteeing annual wages. The employment-guaranty plans specify the number of weeks or hours of work to be provided to employees each year, without specifying the amount of earnings to be received. In other words, what is guaranteed is a year’s job (or in some cases, a fraction of a year) with the total annual earnings left a variable. Under annual-wage plans, the employee is guaranteed a weekly income throughout the year, regardless of daily or seasonal fluctuations in employment. Actually, the distinction between guaranteed employment and annual-wage plans is one of emphasis only, for if the employer cannot furnish sufficient work to fulfill the contract, wages must be paid for the remainder of the time guaranteed. The significant differences among the several plans have to do with the relative completeness of the guaranty, that is, how closely the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 709 guaranty, whether expressed in wages or in work, comes to providing the equivalent of full employment at normal wages. Existing guaranty plans represent various arrangements and degrees of regularizing employment or income. In some instances the regular weekly wage is assured for a given number of weeks and a proportion of wages (half pay) is guaranteed during all or a specified number of the remaining weeks. Certain plans guarantee a specified number of hours’ or weeks’ work a year. Under the hour guaranty, weekly earnings fluctuate according to the actual hours worked in any week; under either plan, if less than 52 weeks or 2,080 hours are guaranteed, the worker has no assurance of a full year’s employment or earnings. Under some plans, full pay during weeks of less than full employ ment is compensated to the employer by extra work during peak seasons with no increase in the weekly pay during these overtime weeks; under others, the guaranteed wage represents a minimum to which overtime is added when worked. Somewhat similar to a guaranteed-wage plan is the wage-advance arrangement whereby an employer makes a cash loan to eligible workers in “short” weeks to bring their wages up to specified amounts, these advances being sub sequently repaid by automatic deductions from wages earned during full-time or overtime weeks. One well-known plan guarantees each eligible employee 52 pay checks per year regardless of business con ditions or regularity of employment, but the total annual wage fluctuates since the fund from which the pay checks are'drawn is a specified percentage of the company’s gross income. Restrictive and qualifying 'provisions.—The plans differ not only with respect to the proportion of a year’s normal income or work which is guaranteed, but also as to the inclusiveness of the labor force that benefits from the guaranties and as to the conditions, if any, which relieve the employer of fulfilling the guaranty obligations. For ex ample, if the guaranty applies to only a small number of key employ ees, the plan may involve no major effort toward plant-wide stabiliza tion but represent merely a contractual arrangement for employees who would in any case be fairly regularly employed. Even when the plan covers most of the employees within the plant, benefits are neg ligible if there are reservations attached which tend to reduce the guaranty as the hazards of unemployment increase. The contractual obligation under any plan included in a general employer-union agreement is necessarily limited to the effective period of such agreement. Although a few agreements, particularly in the trade industries, are in effect for 2 or 3 years, most of them are nego tiated for 1-year terms and the contractual guaranties therefore are automatically limited to seasonal or intermittent situations rather than to prolonged periods of business depression. The most extended coverage in existing guaranty plans includes all “regular” or “permanent” employees or all those who have completed a probationary period, usually designated as 6 months. Other agree ments specify “basic crew,” sometimes designated by name, or a fixed total number, with provision for new persons to become eligible if vacancies occur within the original group. The most restricted plans limit the coverage to a relatively few highly skilled craftsmen and foremen or particular groups, such as truck drivers. Some of the plans covering the greatest number of employees have no qualifying clauses; in other words, the employer is obligated to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 710 MONTHLY LABOR REVIEW— APRIL 19 45 fulfill the terms of the guaranty as long as the agreement is in effect, no matter what circumstances may develop. Several specifically re voke the guaranties in case of bankruptcy or sale of the business and reserve the right to suspend them in emergencies such as fire, flood, strikes, and other situations beyond the management’s control. Some plans go much farther and allow the employer to reduce or cancel his obligations in case of “serious decline of business” ; in most such cases, however, this cannot be done without permission of the union or after arbitration, and frequently dismissal wages are provided in lieu of payment of the guaranteed annual wage. Guaranty Plans in Manufacturing Agreements NUM BER AND C O V E R A G E OF P L A N S Out of a total of about 6,500 agreements analyzed in manufacturing industries, covering over 6 million workers, 131 provide some form of guaranteed-employment or annual-wage plan. These cover approxi mately 12,500 workers in 142 manufacturing companies.4 Eightyeight of these companies, employing about 5,850 workers, guarantee a full year’s employment or wages; the other 54 companies, employing about 6,500 workers, provide guaranties of less than 1 year. Unquali fied year-round guaranties to all or most workers in the plant are provided in only a few agreements, but these cover some of the largest companies having guaranty provisions. Most of the guaranties, both for the year and for shorter periods, have qualifying provisos which allow cancellation or modification under specified circumstances and limit the coverage to certain employees—to those on specified occu pations, to those in the company’s employ at the time the agreement was signed, to a specified number, or to employees with a specified period of service (table 2). Most of the employment or wage guaranties in manufacturing in dustries are incorporated in 1-year agreements, although one plan assures minimum annual wages for 5 years, subject to certain condi tions based on the employer’s financial ability. One plan, included in uniform agreements signed separately by 58 companies in the textile dyeing and finishing industry, is effective for approximately 2% years. In the agreements analyzed, annual wage guaranties for all or virtually all the company’s employees are provided by companies engaged in the meat-packing, shoe, dairy, and leather-products in dustries. Limited groups of workers are covered by wage guaranties signed by companies in the textile printing, finishing, and dyeing, ladies’ apparel, grain-milling, and ice industries. Employment guaranties, for both yearly and shorter periods, are provided by a varying number of agreements in the grain- and cereal-milling, dairy, syrups and preserves, electroplating, dress manufacturing, soap, tex tile refinishing and bleaching, fur designing, and millinery industries. Although the majority of these agreements containing employment or wage guaranties were signed by individual employers, most of them are of a standard or uniform type. Fifty-eight textile dyeing and finishing companies in the New York metropolitan area, and about 40 textile printing establishments are signatory to standard agree ments negotiated by unions with jurisdiction over skilled employees 4 Plans covering truck drivers only are considered under nonmanufacturing, even though the agreement may be signed by an employer in a manufacturing industry. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 711 EMPLOYMENT AND ANNUAL-WAGE GUARANTIES and foremen only. One of the standard agreements included in this study was with a local association of employers in the syrups and preserves industry. T a b l e 2 . —Characteristics of Guaranty Provisions in Collective Agreements in Manu facturing Industries Number of agreements Guaranty Number of companies covered Number of employees covered Total agreements analyzed, having guaranty provisions. 131 142 12, 500 Annual guaranty__ ______ _ ___ _ Covering all or most em p lo y ees...................... Unconditional____________________ Conditional____________________________ . . . Covering particular occupational groups _________ Unconditional__________________ . . . . C on d ition al_____ _ ... 76 7 5 2 69 10 59 88 6 4 2 82 23 59 5,850 5, 350 5,100 ' 250 500 75 425 Less than full-year guaranty. . . _______ ______ . Covering all or most employees___ _________ Unconditional______________________ „ Conditional__________ _ _______ _ Covering particular occupational groups__________ Unconditional. _________ _ Conditional_________ ________ 55 18 1 17 37 20 17 54 17 12 5 37 20 17 6,500 6, 300 50 6, 250 200 100 100 P L A N S PR O V ID IN G A N N U A L G U A R A N T IE S TO A LL E M P L O Y E E S Unconditional Guaranties Five of the seven agreements which extend annual wage or employ ment guaranties to virtually all plant employees have no qualify ing clauses permitting modification or cancellation during the life of the agreements. Two of these cover approximately 4,000 workers employed by a meat-packing company, one covers about 1,000 shoe workers, and two cover about 100 workers employed by dairy and hardware companies. One of the latter, an agreement with a small dairy in Wisconsin, pledges the employer to “maintain such weekly hours as will best serve its regular personnel maximum and continuous employment; such hours to average 50 per week over a 1-year period,” with time and a half for work over 40 hours in any 1 week.5 “Regular personnel” includes workers who have completed the 300-hour pro bationary period. A 1-year agreement with a southern hardware company6 assures each employee a guaranteed minimum weekly wage, equal to 40 times his straight-time average hourly earnings for the preceding year, each week during the life of the agreement. Time and a half is paid for all hours over 8 worked in any 1 day or over 40 worked in any 1 week. George A. Hormel & Co.—The Hormel annual-wage plan for all plant personnel, as incorporated in its agreements covering its Austin (Minn.) and East St. Louis (111.) plants,7 amounts to advances on wages during periods of unemployment and repayment of such ad vances through the working of extra hours, during peak periods, up to 53 hours. The hours of work fluctuate, but the weekly pay re mains unchanged. 8 The union involved is the Food, Tobacco, Agricultural & Allied Workers (C. I. O.). 6 Agreement negotiated by the United Steelworkers of America (C. I. O.). 7 The union at the Austin plant is the United Packinghouse Workers (C. I. O.) and that at the Easr St. Louis plant is the Amalgamated Meat Cutters & Butcher Workmen (A. F. of L.). 6 3 6 3 7 2 — 45 ---------- 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 712 MONTHLY LABOR REVIEW— APRIL 1945 Under the Hormel “straight time” plan each worker is employed on an annual basis and is assigned a regular weekly rate which is deter mined by budgeting over a 52-week period the estimated annual labor cost of the department.8 The total annual labor expenses for a department are estimated and one fifty-second part of this cost is allocated as a weekly wage cost, which is divided into equal weekly payments graduated according to occupation among the workers estimated as necessary to do the work, regardless of the number of hours worked in any particular week. In return, employees regularly attached to a department work as many hours as are required to turn out the production scheduled, without extra pay, up to a maxi mum of 53 hours during peak periods; however, when they are required to work more than 10 hours in any 1 day, overtime is paid for hours worked in excess of 48 in that week.9 The yearly wage is calculated on the basis of a 40-hour week in most departments, with an allowance for vacation and sick- leave. In other departments, in which the budget is insufficient to guarantee 40 hours’ pay or for which it is most difficult to forecast yearly pro duction accurately, the yearly wage is based on 38 or 36 hours’ pay as a safety margin. If at the end of the year employees in these departments have worked more than the hours paid for, they receive a year-end check for extra hours actually worked. Bonuses are paid to all plant employees (except a small group of engineers, maintenance men, and elevator operators) if actual produc tion exceeds the estimated volume. In general, the scheduled annual total of unit production divided by 2,000 constitutes one productionhour for the department. Each department is reimbursed for the excess of production-hours over total man-hours actually worked, and this money is thereupon allocated to the individual workers on the basis of their “hourly” rates.10 When members of a gang are absent, their wages are credited to the gang, and are divided among the employees in the gang at the end of the year. Nunn-Bush Shoe Co.—The Nunn-Bush plan, which was evolved as a part of the management-worker partnership ideal, guarantees 52 pay checks a year to practically all employees with at least 2 years’ service.11 A specified percentage of wholesale value of shoes sold, representing the ratio of labor costs to wholesale value of shoes as determined from past years’ experience, is put into a Share Production Fund from which all wage payments except those for overtime are made. Individual weekly drawing accounts are established for each eligible employee from this fund on the basis of one fifty-second of the indi vidual’s “yearly differential rate,” obtained by multiplying the worker’s present average hourly drawing by 2,080 (40 hours X 52). 8 Data are from union agreement on file in Bureau of Labor Statistics and report entitled “The Hormel Annual Wage, Wage Incentive and Joint Earnings Plans,” published by George A. Hormel & Co., Febru ary 1944. 8 Extra gang employees receive time and a half for work in excess of 12 hours a day or 56 per week, maximum straight-time hours permissible under Section 7(b)(2) of the Fair Labor Standards Act. At the East St. Louis plant, time and a half is paid to all employees for work over 10 hours per day or 53 per week. 1° The Hormel East St. Louis agreement provides that if at the end of the fiscal year production is less than the budgeted volume of work “the members of the group individually and collectively become indebted to the company for producing that much extra work at the first opportunity, without extra pay.” If pro duction has exceeded the yearly schedule, each member of the group receives a bonus on the basis of onefortieth of a week’s pay for each specified unit of production in excess of quota. 1* The plan now covers the company’s Milwaukee plant only. A somewhat similar plan for the com pany’s Edgerton, Wis., plant was discontinued at the outbreak of the war when most of the plant’s regular employees went into the armed services. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 713 Individual “differential rates” vary according to occupation. A reserve fund of 12H percent of the yearly differential rate is maintained to insure regularity of income. Full weekly drawings [(one fiftysecond of the individual's yearly differential rate) are issued unless the individual employee’s reserve falls below 5 percent of the annual estimated income. When an individual’s reserve account exceeds 12% percent of the annual estimated income, the excess is paid as a monthly (or adjusted compensation) check. The company pays the prevailing rate of interest on savings-deposit accounts on the reserve. Changes in the weekly drawing are made by increasing or decreasing the yearly differential rate; a downward revision in weekly draw ing may be made if continued payment of the regular weekly drawing would reduce the reserve below 5 percent of the annual estimated income. The plan covers all employees with 2 years’ service except handi capped workers. Eligible workers are classified into A, B, and DB members. Class A members, limited to 595, may not be laid off; the others may be laid off if work for the first group falls below 40 hours a week, but as long as employed they participate in the Share Pro duction Fund. Each month, the company furnishes the union with an estimate of the status of the Share Production Fund and at the end of the year union accountants are given access to the company’s records to check the wholesale value of the shoes packed during the life of the agreement and the wages paid out of the fund. m Conditional Guaranties Two of the 7 agreements which assure employment or wages on an annual basis, to all the plant’s employees, include certain limitations on the employer’s responsibility. These conditional guaranties cover about 250 workers. Under one of these, effective for 1 year with a grain mill,12the work guaranty is 48 hours for millers, machine tenders, and one millwright, and 40 hours each week for all other “regular employees” (i. e., those with at least 60 days’ service). Time and a half is paid for work over 8 hours per day or 40 per week. However, employees may be laid off regardless of the guaranty during any prolonged shut-down caused by an “act of God, lightning, fire, or explosion.” The other agreement, in effect for 5 years with a southern textile dyeing company 13 employing about 200 workers, provides minimum weekly wages ($18 for men and $15 for women)14to employees with 6 months’ service, but limits the company’s obligation to $8,000 per year. In the case of employees who fail to report for work when notified, the equivalent of the amount earned by workers in their department is deducted from their weekly minimum, but such deduc tions are applied only during slack periods when application for the weekly minimum is made. A N N U A L G U A R A N T IE S TO PA R T IC U L A R O C C U PA T IO N A L G R O U PS In 69 of the 131 manufacturing agreements providing continuous annual employment or a minimum annual wage, the guaranties are 12 Agreement negotiated by the American Federation of Grain Processors Council (A. F. of L.). 13 Agreement negotiated by the Federation of Dyers, Finishers, Printers, & Bleachers (C. I. O.). 14 During employment, the minimum hourly scale is 80 cents for men and 62 cents for women, or weekly mlnimums, on a full 40-hour basis, of $32 and $24.80, respectively. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 714 MONTHLY LABOR REVIEW— APRIL 1945 limited to a specified number of the plants’ employees or to those engaged in particular occupations. About 500 workers, employed by 82*different firms, are covered by these guaranties. In 10 of these agreements the guaranty is unqualified, but in the remaining 59 is subject to cancellation or modification in emergencies. Unconditional Guaranties to Limited Groups Seven of the 10 agreements which guarantee a minimum annual wage to a limited number of workers are subject to the provisions of section 7 (b) (2) of the Fair Labor Standards Act.15 Four of these, with individual textile printing firms, were negotiated with a union representing highly skilled printers only; the fifth, with 5 ice-manu facturing companies, was signed with a union consisting of only engineers-in-charge and operating engineers; the sixth, with a midwestern millinery firm employing about 300 workers, limits the guar anty to foremen and 1 head machinist; and the seventh, with a grain firm, is limited to maintenance employees and watchmen.16 Each of these seven plans restricts the annual hours to be worked— 2,000 hours under the textile-printing, ice-manufacturing, and grain milling agreements, and 2,080 hours under the millinery agreement. The millinery and the four textile-printing agreements specify time and a half for work over 40 hours per week, although the textile plans permit the workweek to be extended by mutual consent to a maximum of 48 hours. The ice-manufacturing and grain-milling agreements, in accordance with the exemption under the act, require overtime pay only after 12 hours per day or 56 hours per week. Under the textile printing agreements, employers unable to work as a result of physical disabilities arising outside the course of their employment receive pay for not over 2 weeks, with the understanding that the hours paid for shall be made up if possible. A discharged employee receives 1 full week’s pay. Vacancies caused by discharge must be filled im mediately, for the remaining period of the contract. The annual guaranties in 3 of the 10 agreements which limit the guaranty to particular employees, but carry no other qualifications, are not subject to the Fair Labor Standards Act. A Chicago dress manufacturer guarantees cutters, representing about 10 percent of the work force, a specified annual salary, exclusive of overtime.17 An association of 10 employers engaged in the manufacture of syrups and preserves, guarantees “permanent routemen [driver-salesmen] and cooks” 52 weeks of steady employment in each of the 2 years of the agreement.18 One company, engaged in electroplating and employing about 60 workers, guarantees 5 designated maintenance men 48 hours of work “or the monetary equivalent thereof” in every week during the 52-week period of the contract. The agreement does not mention overtime pay.19 1S Under section 7 (b) (2) of the Fair Labor Standards Act of 1938, employers may obtain partial exemption from the overtime requirements of the act by entering into agreements (with unions certified as bona fide by the National Labor Relations Board) that provide for employment on an annual basis and limit hours of work to 2,080 in any 52 consecutive weeks. F.mployees must be paid time and a half for hours over 12 per day or 56 per week. i» The unions signing these agreements are, respectively: Machine Printers Beneficial Association (Ind.); International Union of Operating Engineers (A. F. of L.); United Hatters, Cap & Millinery Workers (A. F. ofL .); and Food, Tobacco, Agricultural & Allied Workers (C.I.O.). While this last agreement does not specify annual employment or an annual wage, the guaranty is implied by virtue of the overtime tolerance. Agreement negotiated by International Ladies’ Garment Workers’ Union (A. F. of L.). i* Agreement negotiated by United Retail, Wholesale & Department Store Employees (C.I.O.). i9 Agreement negotiated by United Electrical, Radio & Machine Workers (C.I.O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 715 Conditional Guaranties to Limited Groups Of the 59 agreements providing conditional guaranties to limited numbers of employees, one is a 1-year grain-milling agreement coveringfewer than 15 employees.20 It guarantees annual employment to all those in the bargaining unit at the time the agreement was negotiated, but not to employees thereafter hired; the guaranty is void in the event of sale or liquidation. If it becomes necessary to lay off more than 2 employees on the_seniority list in order to maintain the 52-week guaranty to the senior employees, and no agreement on the lay-off is reached, the issue may be arbitrated. The guaranty provides a minimum weekly wage equivalent to 40 times an em ployee’s hourly rate for 52 consecutive weeks, with time and a half for all work in excess of 40 hours per week. Fifty-eight agreements in the textile dyeing and finishing industry in the Paterson (N. J.) and New York areas, negotiated by local unions of foremen, skilled employees, semiskilled employees, and assistant colorists, guarantee annual wages to these particular groups of employees; the guaranty is cancelled in the event any plant or department is shut down by “Government directive order.”21 An employee whose services are ended because of “job or department elimination” receives severance pay equal to 2 percent of his annual earnings for each year of service up to a maximum of 5 years, and any discharged worker is entitled to 2 weeks’ severance pay (discharges are not arbitrable). Pay on the basis of 52 weeks per year is provided for all skilled em ployees who have passed a 30-day probationary period and to all semiskilled employees and assistant colorists previously paid on a basis of 52 weeks per year, “provided, however, that this condition shall not be construed to mean that if the employee’s relations with the company are severed voluntarily or involuntarily, that such em ployee shall be entitled to the weekly wage based on the 52-week principle.” For semiskilled employees and assistant colorists not previously paid on the basis of 52 weeks per year, the agreement provides half pay up to 14 weeks if the plant or department shuts down for more than 6 weeks for lack of work. New employees, who replace those on the 52-week basis leaving the company’s services either because of discharge or by resignation, must be placed on the full-year basis. G U A R A N T IE S FOR PE R IO D S OF L E SS T H A N A Y E A R Employment or wage guaranties for periods of less than a full year are provided in 55 of the 131 manufacturing agreements studied which include guaranties. These cover about 6,500 workers and, with a few exceptions, the guaranties are limited to particular groups of employees and may be suspended by the employer either when specific contingencies occur or “at any time.” Fur-clothing industry.—Under 1 agreement, negotiated for a 3-year period with 12 employers employing a total of fewer than 50 fur de signers, patternmakers, and fitters,22 the annual guaranty amounts to 20 Agreement negotiated by the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers (A. F. of L.). s* These local unions aré affiliates of the Federation of Dyers, Finishers, Printers & Bleachers (C.I.O.). Agreement negotiated by International Fur and Leather Workers’ Union (C. I. O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 716 MONTHLY LABOR REVIEW— APRIL 194 5 46 full weeks of work (except for fitters, who are guaranteed 47 weeks), exclusive of vacation with pay or overtime. Dress manufacturing.—Under 2 dress-manufacturing agreements in Wisconsin, negotiated for 3-year terms, a specified number of permanent employees (about two-thirds of total plant employment) are guaranteed 45 weeks or 1,800 hours of work for each contract year.23 The employer, however, has the right to cancel the guaranty if present wages are increased by 5 percent or if he is “not * * * able to comply with the guaranty of the equivalent of 45 weeks of employment.” In the latter case the 5-percent increase in wages is automatically effective. The guaranty is exclusive of overtime but includes paid vacation time, the latter being credited on the guaranty on a pro-rata basis in case of cancellation. Vacancies among the permanent staff are auto matically filled by temporary workers “whose efficiency averages 87% percent of the base rate for three previous pay periods.” Permanent workers absent “for a legitimate reason or sickness for 2 months, or less,” are entitled to return to the permanent list, if vacancies are available at the time of the return. Employees absent from work without legitimate excuse and without notification to the company lose their permanent status, but determination of such status must be mutually agreed upon by the company and union. In the event the employer has been unable to furnish 1,800 hours’ work to the permanent employees during any contract year, he may either pay a refund (minimum rate for piece workers and hourly rate for time workers) for such hour deficit, or pay back 5 percent of the earnings of such permanent employees from the beginning of the yearly contract period. If the employer cancels the guaranty during the contract year, the refund is based on the proportion of hours worked to the prorated guaranty. In the event the employer complies with the conditions and penal ties established for cancellation or nonfulfillment of the guaranty, he is credited with State unemployment benefits received by the em ployees affected; but if employees find temporary employment else where, he is credited with such earnings against any hour or week deficit resulting from such cancellation or nonfulfillment. If, how ever, he elects to pay to the employees 5 percent of earnings from the date of any yearly contract period, in lieu of making up the hour deficit, he .is not credited with such unemployment benefits or earnings. Time lost as a result of plant shut-downs caused by “fire, tornado, explosion, or any other catastrophe beyond the control of the em ployer” or by voluntary absence from work or through sickness, is deducted from the guaranty. The employer is also relieved of obli gation in the event he discontinues business. All the terms and conditions affecting the guaranty are subject to arbitration. Cereal and grain companies.—The work-guaranty plan in a com pany making cereals24 includes a wage “loan” when less than 30 hours’ work is provided in any week. This company, operating on a normal 40-hour-week basis, guarantees a minimum of 1,704 working hours annually, including vacation time, to employees with 3 years’ seniority, provided such workers have reported and worked whenever work was available. The guaranty is subject to a deduction for time 23 Agreements negotiated by International Ladies’ Garment Workers’ U nion'(W F; of L.;). 24 Agreement negotiated by the American Federation of Grain Processors (A^ Ft of !..)■ • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 717 lost through sickness or accident or shut-down of the mill, caused directly or indirectly by fires, strikes, floods, and other causes beyond the company’s control. An employee with 3 or more years’ service who in any week earns wages for less than 30 hours, owing to lack of work, is paid for the actual hours worked plus (if he so requests) the difference between actual earnings and 30 hours’ pay. The money advanced is deducted, interest free, from the first week’s or weeks’ wages amounting to more than 30 hours’ work. When employment is terminated for any reason, all excess payments become immediately due and payable in full. Five agreements, covering separate plants of another company making cereals and other grain-mill products,25 with about 2,000 workers, contain a reference to the existing “guaranteed work plan.” Although the plan grants the company the right to modify or termi nate it at any time, 2 of these agreements provide that the plan shall continue during their term; 1 restates the company’s right, “in the event of changed conditions,” to change or terminate the plan; and the remaining 2 make no reference to this point. This “guaranteed work plan” assures 140 hours of work per month and provides a system of lay-off pay to hourly and piece workers with 6 months’ accumulated service within a continuous 12-month period. New employees are eligible to participate, after completing similar service requirements, upon approval of the plant management. Guaranteed time is calculated once a month and is included in the pay for the latter half of each month. Vacation time is included in the guaranty but time lost for personal reasons, sickness, and accident is deducted. In case of lay-off, a qualified employee is entitled to 70 hours’ pay per month at his regular rate for from 2 to 6 months, depending on his length of service, with a maximum of 6 months’ lay-off pay for 3 years’ service. Payments are discontinued, however, if full-time employ ment is obtained elsewhere or if an employee fails to return upon request, or if he quits, is discharged, or is laid off because of destruc tion of property or because of the permanent closing of a plant or department. An employee returning to work after a lay-off auto matically comes under the 140-hour guaranty for the calendar month in which he returns, unless he was off for more than 6 months, in which event he is considered as a new employee and not eligible for guaranteed employment for another 6 months. Procter & Gamble.-—Nine agreements covering plants of the Procter & Gamble Co.26refer to the company’s guaranteed-employment plan, reaffirming the company’s right to terminate or modify it at any time. The plan covers all hourly paid employees who have been in the company’s service for a period of 2 years, except workers hired to replace those in military service, who are considered temporary employees. Eligible employees are guaranteed work for 48 weeks per year, less time lost for holiday closings, disability because of sickness or accident, voluntary absence, and certain emergencies such as floods, fires, and strikes. The plan has certain protective clauses which permit the company to transfer employees to other work (even to that paid at a lower 28 Agreements negotiated by locals of the Food, Tobacco, Agricultural & Allied Workers Union (C. I. O.). 26 Agreements are signed by local unaffiliated plant unions. The guaranty applies at another plant of this company, but is not referred to in the agreement for this plant. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 718 MONTHLY LABOR REVIEW— APRIL 1945 rate), to change the number of hours constituting the established workweek to which the guaranty applies, and to reduce the hours of guaranteed work to 75 percent of the standard workweek in effect at each plant. Textile printing.—Wage guaranties amounting to less than a full year’s earnings are provided in 37 agreements negotiated by a union27 which includes only highly skilled textile printers. In 17 of these, covering silk-textile printing firms, printers and apprentices are guaranteed full pay from January 1 to July 15, and half pay for any period in the rest of the year during which they may be out of work, with the stipulation that if hostilities should terminate prior to a specified date or if Government orders or directives issued prior to that date “confront the industry with a curtailment of business which reduces operations,” either party may, on 15 days’ notice, request negotiations on the advisability of “maintaining or modifying the full-work guaranty.” 28 The other 20 agreements covering cotton-textile printing firms, provide no guaranty of full pay during specified periods but specify without any qualifications “one-half pay for any 17 weeks during which, at any time throughout the terms of this contract, a printer is not employed.” Under these agreements, employees receive a full week’s wages, whether or not they work a full 40 hours, if they report without previous lay-off notice from the company or if they work at any time during any calendar week; under the silk-textile printing agreements, they receive full pay if they report for work or if they work at any time during any 3 days of any calendar week. Under both plans, a printer who leaves a company’s employ, or who has been discharged, must be replaced by another journeyman printer for the remaining period of the agreement. Guaranty Plans in Nonmanufacturing Agreements N U M B E R A N D C O V ERAGE OF P L A N S Approximately 30,000 workers in nonmanufacturing industries, out of an estimated 2 million workers under the nonmanufacturing agreements included in this study, are covered by some form of employ ment or wage guaranty.29 Over 90 percent of these workers receive year-round guaranties, while the others are assured employment or wages for periods of less than a year. Most of these plans cover persons employed in retail and whole sale trade, chiefly in New York City. Others cover workers in service industries, such as cleaning and dyeing establishments, and in main tenance work in hotels, office buildings, and railroads, as well as publicutility employees, press wireless operators, and employees in social services, cemeteries, and custom tailoring. In several branches of retail and wholesale trade, the agreements examined were negotiated with employers’ associations and cover numbers of employers, while elsewhere identical agreements have been signed separately by individual employers. Owing to the nature and type of the industries involved, the normal size of establishment which these agreements cover is very small. J? Machine Printers Beneficial Association (Independent). 28 Foremen, under these agreements, “must be hired on an annual basis and shall receive an annual salary payable in equal weekly installments.” 22 See footnote to table 1, page 708. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 719 Iii addition, the guaranty most frequently covers only a portion of the working staff—a “basic crew” agreed upon at the time the agree ment was negotiated. According to some of the retail-trade agree ments—for example, those covering department or specialty stores-—only such skilled employees as custom tailors or furriers benefit from the guaranties. However, with few exceptions, replacements of covered employees are included in the plans, and there is no reduc tion, therefore, in the number of full-time guaranteed jobs. The majority of the agreements which contain guaranties are in effect for 2 years, and in one instance for 3 years. Most of them are voidable under certain specified conditions, among which are liqui dation or discontinuance of business, withdrawal of capital, “mate rial decrease in revenue,” “unforeseen catastrophe,” “conditions arising out of the national emergency,” situations “seriously affect ing either party,” etc. In the event of disagreement between the parties on the necessity for the modification or termination of the guaranty, arbitration is usually specified. Under a few plans, chiefly in trade but including a telegraph agreement covering press wireless operators, dismissal pay is granted to employees laid off. A N N U A L G U A R A N T IE S TO ALL E M P L O Y E E S Unconditional Guaranties Some of the nonmanufacturing plans guarantee year-round work to all employees without restrictions of any kind. Between 10,000 and 13,000 workers in over 2,400 retail establishments in New York City are covered by such guaranties in 2-year agreements negotiated with grocers, fur dealers, and men’s and boy’s clothing merchants and in 1-year agreements covering retail liquor dealers.30 The food and grocery store 2-year agreements, negotiated with several employers’ associations as well as with individual employers, specify that all employees “now or hereafter employed * * * are to be continued in such employ during the life of the agreement,” and no worker “employed * * * continuously for a period of one week or longer shall be discharged except with the written consent of the * * * union.” The entry of a new partner into the firm is not deemed cause for discharge. The fur and liquor agreements guarantee 52 consecutive weeks of work, exclusive of overtime, and the men’s and boys’ clothing agreements assure continuous employ ment to every “steady” salesman and stock clerk throughout the life of the 2-year agreement and thereafter, unless his employer gives him and the union at least 2 weeks’ notice of discharge prior to the expira tion of the agreement. Both the food and clothing agreements require that vacancies be filled immediately. Conditional Guaranties > A number of the other agreements in retail trade, both with em ployers’ associations and with individual employers, guarantee yearround employment to all employees but permit the guaranty to be cancelled under certain specified circumstances. About 375 firms, employing over 1,800 workers in men’s hats and furnishings and cigar 3° These agreements were negotiated by the Retail, Wholesale & Department Store Employees (C. I. O.), Fur & Leather Workers Union (C. I. O.), Amalgamated Clothing Workers (C. I. O.), and Retail Clerks International Protective Association (A. F. of L .), respectively. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 720 MONTHLY LABOR REVIEW— APRIL 1945 and luncheonette stores, subway newsstands, and alteration and tailor ing of fur garments, provide such conditional guaranties.31 Except for the fur and retail cigar and luncheonette store agreements which run for 2 years, these are 1-year agreements and the guaranties assure a minimum coverage through a provision that vacancies must be filled immediately or within a few weeks. The retail men’s wear agreements guarantee to each employee, after a 2-week trial period, “52 consecutive weeks of employment” but the employer retains the right to discharge employees, subject to arbitration, under the following specified circumstances: For good cause, such as insubordination or dishonesty; upon 2 weeks’ written notice to the union and with its written consent; in the event a store is discontinued; or when the employer is in need of “relief.” The last mentioned refers to a situation in which an employer’s business has changed permanently for the worse, so that it is financially im possible for him to continue to employ his full staff of regular em ployees. “Slack season” is expressly ruled out as a basis for discharge. The employer has the right at the expiration of the agreement to make changes in the labor force, provided the union is given 6 weeks’ prior notice, but no personnel changes may be made unless the union accepts the change within a week after notice. In disputed cases, however, the employer may seek arbitration. The agreements with retail cigar and luncheonette stores likewise guarantee 52 consecutive weeks of employment, including limited sick leave, for all employees retained after a 2-week trial period. Three weeks’ dismissal pay is provided for employees affected by “a lay-off or a store closing * * * where less than 4 employees are employed and where unemployment insurance is not being paid.” No employee may be discharged, suspended, or laid off pending an application to the union and a decision by the arbitrator, and the entry of a new or additional partner or stockholder is specifically mentioned as not being a sufficient cause for discharge. A 2-year agreement with an association of fur merchants in Atlantic City guarantees all employees 1,750 hours of work a year, which is the equivalent of 50 weeks based on the standard 35-hour workweek. Paid vacations of 1 or 2 weeks, depending upon length of service, are also provided. The guaranty may be invalidated only in the event of “ an unforeseen catastrophe which makes it phj^sically impossible” for the employer to furnish 1,750 hours of work and if the employer “actually does not have 1,750 hours of work for the particular year except that an employer who violates this agreement by sending work to outside contractors shall be deemed to guarantee 1,750 hours of work in any event.” Another agreement guarantees agents currently employed on sub way newsstands not less than 1 year’s employment, except for certain stands which are closed during the summer months, in which case the guaranty is for 9 months’ employment. However, the company reserves the right to discontinue the operation of any newsstand as a result of conditions beyond its control and arising out of the national emergency. In the event that the subways discontinue any present services, the company may lay off men in proportion to the number 31 Agreements for the men’s furnishings and luncheonette stores were negotiated by the Retail, Whole sale & Department Store Employees (C. I. O.); for newsstands, by the United Office and Professional Work ers (C. I. O.); and for fur shops, by the International Fur & Leather Workers’ Union (C. I. O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 721 of stands discontinued. Relief^from the guaranty clause in the event of any unusual conditions—■ “ including material decreases in the rev enue from the stand”—is also granted. A N N U A L G U A R A N T IE S TO PA R T IC U L A R O C C U PA T IO N A L G R O U PS About half (13,000) of the total workers in nonmanufacturing industries, covered by year-round guaranties, include special groups of employees who comprise only a part of the working force of about 2,000 employers. These workers include cemetery employees, truck drivers, railroad maintenance and repair workers, public-utility employees, social-service employees, inside cleaning and dyeing workers, retail and wholesale clerks, bushelmen, and fur workers in fur shops and department stores. The majority of these agreements permit the employer to modify or cancel the guaranty under speci fied circumstances. Two agreements for cemetery employees guarantee specified amounts of employment to their “regular” employees.32 One estab lishes 3 classifications of workers: “Casual employees” ; a basic crew of “regular employees Class A” who are paid regularly irrespec tive of weather conditions and may not be laid off; and a basic crew of “regular employees Class B” who are guaranteed a minimum of 33 weeks of employment during the 9 months between April and December. Basic Crews A and B have approximately the same number of employees and vacancies must be filled within 2 weeks ex cept vacancies in the Class B quota after November 15. Any season’s quota of Class B employees must include those in that classification during the previous season and any necessary replacements to main tain the minimum crew. The other cemetery agreement provides that no “regular” employee shall be laid off during its 2-year term. It establishes 6 days as the normal workweek but permits the employer to limit the workweek to 5 days every alternate week and specifies 3 months during which the workweek consists of 5 days only. Another type of guaranty is found in standard agreements signed by 448 companies in the retail and wholesale paper and paper-box industry in New York City, under which each employer agrees to employ “not less than one chauffeur or driver for the full time of 52 weeks per year.” 33 Drivers may be discharged only for justified cause, such as incompetence or failure to report an accident. Under 2-year agreements with an association of 23 employers and 3 inde pendent firms engaged in textile refinishing and clothing inanufacture, 90 drivers are guaranteed regular employment through a provision that each of the signatory employers is to employ a specified minimum number of drivers each working day.33 Bushelmen are guaranteed 40 hours of work per week, 52 weeks per year, under a 1-year agreement signed by an association of retail clothing merchants in New Haven, Conn.34 Five agreements, with Chicago fur and department stores, guarantee 52 weeks’ work, exclusive of overtime, to fur workers.35 In 3 of these cases, the guaranty includes 1 week’s vacation; in the other two, 2 weeks’ vacation. 32 Both agreements negotiated by the Food, Tobacco, Agricultural & Allied Workers (C. I. O.). 33 Agreements negotiated by the International Brotherhood of Teamsters, etc. (A. F. of L.). 34 Agreement negotiated by the Amalgamated Clothing Workers (C. I. O.). 33 Agreements negotiated by the International Fur & Leather Workers’ Union (C. I. O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 722 MONTHLY LABOR REVIEW— APRIL 194 5 Under a ‘‘continuity of employment” agreement between the Sea board Air Line Railway and various A. F. of L. shop-craft unions, the parties negotiate in December of each year the size of a minimum force (currently 2,300 employees) of “mechanics, apprentices, helpers and coach cleaners” who are guaranteed employment for 6 days per week during the ensuing 12-month period. In the event it is found necessary to close permanently any shop or engine terminal during the year, the company is not required to transfer the employees affected to some other terminal on the system, but the established minimum number of positions on the system must be maintained at all times. Reductions in the size of the minimum force are permissible under 2 conditions: (a) if the established minimum of coach cleaners is found excessive, and (b) if “any situation arises during the life of the agreement which would seriously affect either party.” Joint con ferences must be held before reductions are made and if no solution is reached either party may terminate the agreement on 10 days’ written notice. An agreement covering a public-utility company contains a “guar anteed annual income” plan for certain listed monthly and hourly paid employees.37 Those who are paid on a monthly basis are guaranteed against deductions from their regular monthly wage during the 1-year period of the contract “because of lack of work or inability on the part of the company to supply work.” Furthermore, no deduction is made for time off, not to exceed 1 week, for necessary personal reasons such as serious sickness or death in the immediate family, provided such time off is made up by working two-thirds of the hours lost. Listed employees who are on an hourly basis are given the opportunity to work a minimum of 2,080 hours during the year, including vacations and holidays. The guaranty is unconditional except for men released in the event that the company is required by the Government to institute a workweek in excess of 40 hours. Under a 1-year agreement with a social-service agency, visitinghousekeepers who had at least 1% years’ service when the agreement was signed are guaranteed an annual wage equal to 52 times their regular rates.38 However, all earnings, including regular, overtime, vacation, and sick-leave pay, are credited toward fulfillment of the annual guaranty. Each visit is to be paid for at the time made at the specified rate, and any balance due on the annual guaranty must be paid in a lump sum within 2 weeks after the end of the year. The wage guaranty is forfeited in the event of resignation or dismissal, except when dismissal is caused by retrenchment or reorganization, in which event the employee is entitled to payment of the proportion ate part of the guaranteed wage from the start of the 1-year period to the date of dismissal, plus dismissal pay amounting to 1 week’s pay for every year of service after 2 years’ service, up to a maximum of 6 weeks’ pay. Housekeepers on the guaranteed list are entitled to 2 weeks’ paid sick leave per year; other absences are deducted from the guaranty unless they total less than one-half day in any 1 day or an aggregate of 2 days in any 1 year. An agreement with a press wireless company guarantees “at least one-half pay of the full weekly wage in every week throughout the year” to a total of 43 Morse operators highest on the seniority list, 87 Agreement negotiated by International Union of Operating Engineers (A. F. of L.). 88 Agreement negotiated by United Office & Professional Workers (C. I. O.), https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 723 and to all “printer operators, maintenance men and radio operators of at least 1 year’s seniority standing.” 39 The company reserves the right to furlough the junior Morse operators on the guaranty list and to hire or use other operators if those on the list refuse a job pro viding 30 hours’ work per week after posting by the company. When the need for a particular job ends, the furloughed employee is restored to the list. In case of “jobs of local nature which are not required to be bulletined,” employees on half-pay basis must be available for duty should their services be required. The employer may elect to pay dismissal pay in lieu of half-time pay at the rate of 1 full week’s wages for every 6 months of service, up to a maximum of 26 weeks’ full pay. Retail and wholesale trade agreements in New York City.—Over 1,500 employers in New York operating wholesale, jobbing, textile convert ing, warehouse, and retail establishments (excluding department stores) have negotiated agreements which guarantee full-time employ ment to a “basic crew” or to “regular full-time workers” or to “per manent employees.” 40 It is estimated that 10,000 workers are covered by these guaranties, most of which are in effect for 2 years, although one with about 450 proprietors of retail furnishing and drygoods stores runs for 3 years. Under one of the plans covering about 400 shoe stores, regular part-time workers are guaranteed employ ment for at least 3 full days (or 3 nights and a Saturday) weekly for 52 consecutive weeks. The size of the basic crew is negotiated for each individual establish ment, and in most cases is frozen for the duration of the agreement. One association agreement provides for determination of the number to be included through the grievance and arbitration machinery; another stipulates that the size of the basic crew must equal the num ber of workers which the employer has continuously employed all year round for the 12 months preceding the signing of the agreement. Members of the basic crew are not subject to lay-off at any time during the life of the agreement and, in most cases, vacancies in the basic crew must be filled immediately. An exception is made in the dry-goods agreements if the employee leaving enters business within a 5-block radius of the employer’s store. According to this agreement, extra employees may be hired for not over 6 weeks, but if retained for periods in excess of a total of 12 weeks they become permanent em ployees. The number of extra employees is jointly determined by the employer and the union, with resort to arbitration if there is a difference of opinion. According to about four-fifths of these agreements the employer has recourse to arbitration, “should conditions arise during the term of the agreement which necessitate a reduction of [basic crew] staff.” Several, including an agreement covering retail shoe stores, state that the basic-crew guaranty shall not be subject to arbitration. A few of the agreements which permit arbitration specify the circumstances which warrant a request by the employer for a reduction or lay-off in the number of employees, e. g., permanent or substantial decline in business other than seasonal slack time, permanent withdrawal of capital, store closing, or “some unavoidable cause which will make it a« Agreement negotiated by Commercial Telegraphers’ Union (A. F. of L.). # « Some of these employers are covered by association agreements; some were signed individually. Since the latter contain virtually the same terms as the association agreements, the analysis is restricted to the association agreements. Likewise, if the union has a form contract which is separately signed by^individual employers, only one representative agreement is discussed. These agreements were negotiated by the United Retail, Wholesale and Department Store Employees (O. I. O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 724 MONTHLY LABOR REVIEW— APRIL 1945 impossible for the employer to continue employing all the workers of the basic crew.” Three agreements provide for termination of the guaranty on dissolution, liquidation, consolidation, sale, bankruptcy, or assignment for creditors, and one other specifies that no wages shall be paid when the place of business is closed because of fire. Employees who are affected by staff reduction are granted dismissal pay under 4 agreements, and preferential rehiring rights under one of these. In 3 cases the dismissal pay amounts to 2 weeks’ wages but in one instance applies only to lay-offs in stores where fewer than 4 workers are employed and which are not covered by unemployment insurance. In the fourth agreement the amount of dismissal pay varies with the length of service and depends on whether the dismissal was a result of sale or entry of a partner, or because of adverse business. The amounts range from the equivalent of 1 week’s pay for less than 1 year’s service to 6 weeks’ pay after 3 years’ service. G U A R A N T IE S FO R P E R IO D S OF L E SS T H A N A Y E A R Of the approximately 30,000 workers in nonmanufacturing industries protected by employment-guaranty provisions, 2,000 were covered by provisions guaranteeing less than a year’s employment or wages. Such guaranties were found in agreements with over 200 firms em ploying workers in custom tailoring of women’s garments and fur coats, maintenance painting in hotels and office buildings, selling and jobbing materials for the fur-manufacturing industry, cemetery work, and retail salesmen in women’s and children’s wearing apparel stores, truck drivers and chauffeurs, warehousemen, and polishers employed by furniture stores. Some of these guaranties, although applicable to only a fraction of the total force, are unconditional, while others permit cancellation of the plan, generally in the event of liquidation of the business. Unconditional Guaranties Two agreements negotiated with women’s specialty stores in Chi cago guarantee $1,900 per year to about 60 custom tailors; in one, tailors receive $55 per week for a 40-liour week and the guaranty therefore amounts to 34% weeks’ pay; in the other, the regular weekly wage is $52.50 for a 35-hour week and the guaranty amounts to slightly more than 36 weeks’ pay.41 Twelve agreements guarantee employment to approximately 200 workers engaged in fur repairing and custom tailoring in both fur and department stores in Cleveland and Chicago.42 In 8 of the agree ments, the minimum guaranty, exclusive of overtime, ranges from 38 to 44 weeks; in three agreements, in which the standard workweek is 35 hours, it is 1,650 hours; in the twelfth it runs from the start of the season on May 1 until February 1 (9 months) for cutters, operators, and nailers, and until the end of February (10 months) for finishers. In addition to the specified guaranty, 3 agreements provide 1 week’s paid vacation, and 1 agreement 2 weeks’ paid vacation. One agree ment includes the vacation week in the 38-week guaranty. A standard agreement, covering about 250 maintenance painters in a number of hotels and office buildings in Cleveland, provides a 41 Agreements negotiated by International Ladies’ Garment Workers’ Union (A. F. of L.). 42 Agreements negotiated by International Fur <fc Leather Workers’ Union (C. I. O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 725 guaranty of not less than 42 weeks’ work, at 40 hours per week, in cluding 10 days’ annual sick leave and 14 days’ vacation with full pay.43 The hourly rate for these workers is $1.25, whereas painters on general construction work, employed on a day-to-day basis, receive $1.55 per hour. An agreement covering cemetery workers in Milwaukee defines regular employees as “those employed regularly for 9 months, and * * * on call during the balance of the year” and contains the follow ing guaranty: “Regular employees shall be given an amount of employ ment between December 1 and April 1 that compares with the average amount of employment during the same period of the 3 pre vious years.” 44 Conditional Guaranties A plant-wide agreement covering a textile-bleaching firm guarantees weekly paid truck drivers and helpers 48 weeks of work, but the company reserves the right to lay off drivers “in the event of an unusual slack period or in a period of emergency where production materially decreases.” 45 Three 2-year association agreements covering 44 employers and 150 employees dealing in materials used in the fur-manufacturing industry guarantee full employment for 10 months each year, includ ing 7 days’ paid sick leave.46 During July and August, equal division of available work is practiced. An employer who finds himself overmanned during the guaranteed period of employment may submit his case to arbitration, and the arbitrator, after examining the employer’s records, may reduce the guaranteed period of em ployment, in which case the additional lay-off period is to be shared among the employees affected. In the event of a general strike or lockout among the wholesale fur manufacturers in New York City, the arbitrator is to rule whether a division of work shall be instituted. The agreement is automatically terminated when an employer liqui dates or discontinues his business. Under an association agreement covering 8 retail furniture mer chants in New York City, about 40 chauffeurs, warehousemen, and polishers are guaranteed work for a minimum of not less than 5 days per week during 21 weeks of the year, a minimum of 4 days during 1 week, and a minimum of 3 days per week during the remaining 30 weeks, at a wage scale proportionate to the minimum weekly wage scale.47 The agreement also provides 18 paid holidays and a minimum of 10 paid Saturdays during the summer months, even though no work is performed, but such holidays and Saturdays are not included in the computation of the annual guaranty. No lay-offs may be made “because of insufficiency of business” during the term of the contract, but the agreement is voided if the employer goes out of business. New York women’s apparel stores.—Under 2-year agreements with an employers’ association and a number of independent employers, both “steady” and “steady-extra” sales clerks in retail ladies’ and children’s apparel stores in New York City are guaranteed employment for specified periods each year.48 The association contract, covering 43 Agreements negotiated by International Brotherhood of Painters, Decorators & Paperliangers (A.F.ofL.). 44 Agreement negotiated by Food, Tobacco, Agricultural & Allied Workers (O. I. O.). 43 Agreement negotiated by Textile Workers’ Union (C. I. O.). 46 Agreements negotiated by International Fur & Leather Workers’ Union (C. I. O.). 47 Agreement negotiated by International Brotherhood of Teamsters, etc. (A. F. of L.). 48 Agreements negotiated by United Retail, Wholesale & Department Store Employees (C. I. O.). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 726 MONTHLY LABOR REVIEW— APRIL 1945 about 800 workers, insures “steady sales clerks” a minimum employ ment of 10% months in each year and “steady-extra sales clerks” 19 consecutive weeks starting October 1, and 12 consecutive weeks starting March 15.49 The standard agreement with nonassociation members provides the same guaranty to “steady employees''’ but 4 more weeks to “steady-extra employees.” Under both plans, “steady sales clerks” receive 2 weeks’ paid vacation and “steady-extra sales clerks” 1 week’s paid vacation in addition to the employment guaranty. In all these stores not more than 1 “steady-extra sales clerk” may be employed for every 2 “steady sales clerks,” except that 1 “steadyextra sales clerk” is permitted where only 1 “steady sales clerk” is presently employed. Vacancies among “steady” or “steady-extra” sales clerks, no matter what the cause, must be filled immediately. For new employees a 2-week trial period, which may be increased to 3 weeks at the employ er’s request, is specified in the association agreement while the inde pendent employer agreement provides for 1 week. Should any em ployee prove to be unsatisfactory during the trial period, a successor must be hired “so that there shall be no lapse of time between the termination of the trial period of the unsatisfactory employee and the employment of his successor.” Under the association agreement, the employer reserves the right to change his sales force either 2 weeks prior to the expiration of the first year of the agreement, or 2 weeks prior to the expiration of the agreement. Employees affected are to receive 2 weeks’ notice; if the change is desired after the first year of the agreement, the employer must also submit a written statement of the reason for such change to the union and the association. The association contract (but not the independent standard con tract) frees the employer of his obligations to furnish minimum em ployment in the event of a bona fide liquidation or if the employer discontinues his business. Should the employer reenter business prior to the expiration of the agreement, either individually or by entering into a partnership, he resumes his obligations from the date of reentry into business until the expiration of the agreement. Licensed officers on Great Lakes and inland waterways vessels.— Licensed deck and engine officers on Great Lakes and inland river vessels receive employment or wage guaranties under 22 agreements examined. Fourteen of these cover licensed engine officers and 8 cover licensed deck officers, although 2 of the latter cover pursers and stewards only.50 Under several agreements, a company may modify its guaranty and lay off affected personnel after a period of 7 days if vessel service is discontinued because of marine disaster, condemnation by the Bureau of Marine Inspection and Navigation, or sale, commandeering, or taking over by Government authority. In contrast, one agree ment provides that “suspension of operations—shall not relieve [the company] from its guaranty of the said 6 months’ continuous employ ment.” Guaranties for engine officers run from 6 months to a full year. Two plans guarantee employment for 12 months; six for 10 months; 49 In certain specified sections of the city “steady-sales clerks” must be employed for a minimum period of 10 months each year and “steady-extra sales clerks” for 18 consecutive weeks in the fall season and for 11 consecutive weeks in the spring season. i0 Agreements covering engine officers were negotiated by the Marine Engineers’ Beneficial Association (C. I. O.); those for deck officers, by the Masters, Mates & Pilots (A. E. of L .). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT AND ANNUAL-WAGE GUARANTIES 727 two for 9y2 months ;"and|three for 9 months. The fourteenth guaran tees 6 months’ pay when boats operate from 4 to 6 months in a year, 8 months’ pay when boats operate from 6 to 8 months, 10 months’ pay for from 8 to 10 months, and 12 months’ pay when boats operate more than 10 months. In 6 of the 14 agreements, junior officers on Class A vessels, and all officers on other than Class A vessels receive lesser guaranties, usually 1 month less, but amounting to 3 months less in one agreement. Under one agreement all engine officers on Class A vessels receive their regular monthly salary each month for the full period of the agreement, including 4 weeks’ vacation. On other vessels, the chief and first assistant engineer, though guaranteed 12 months’ work in each year, receive less pay during the lay-up season, which includes 6 weeks’ paid vacation at lay-up wages. Second assistant engineers on these vessels, who work a major portion of the operating season and who are still in service at the end of the season, are guaranteed 3 months’ work additional, including 4 weeks’ vacation at lay-up pay. Guaranties in the agreements analyzed covering deck officers run from 5 to 12 months. One provides 12 months, two provide 10 months, two provide 8 months, one provides 7 months, one provides 6 months, and the eighth, covering two groups of pursers, 5 and 7 months, respectively. 636372— 45- 3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P robable Volum e of Post-W ar C o n stru c tio n 1 P a r t 3.— D e m a n d for P u b lic C o n stru c tio n Summary THE average annual volume of construction started (exclusive of maintenance and minor repairs) during the first 5 years following defeat of Japan is expected to be 10.9 billion dollars at 1940 cost levels, with a maximum of 12.1 billion dollars in the fifth year. Pub licly financed construction will make up about 3 billion dollars of this average figure, increasing from about 2.1 billion dollars in the first post-war year to almost 3.5 billion dollars in the fifth. The largest single item will be private residential building, which with alterations and modernization will comprise more than a third of total construc tion, and which will consist primarily of detached houses built for sale. Apartment construction will be active, but will not approach its pre depression rate until a number of developments occur at a later time. The volume of commercial construction will be close to that of the 1920’s, but will consist more of modernization than of new buildings. Preparation for public construction varies extensively among the different government bodies. Although still unsatisfactory, it has improved substantially during the past year and is likely to improve further. On the whole, non-Federal bodies are basing their programs on expectation of Federal aid or new sources of tax revenue. The largest element of public construction will be highway work, estimated at 1.3 billion dollars per year plus $600,000,000 in maintenance. A fairly extensive program of reclamation, conservation, and develop ment is likely, for which both the U. S. Corps of Engineers and the Interior Department have working plans ready. Schools will be the largest item of building construction, slightly larger than all other types of public buildings combined. Sewer and water projects seem to be the most strongly felt need of local government units, as indi cated by the advanced state of preparation of working plans. Public Construction Situation The types and extent of public construction at any time are a reflection of current public policy. This construction is carried out by or for thousands of different bodies—the Federal Government, the State governments, counties, townships, municipalities, boards of education and park boards, sanitary and water districts, government corporations, and various others. Although traditionally a project is financed by the body by which it is to be maintained or operated, there have been exceptions. The earliest of these were the national roads constructed by the Federal Government, well over a century ago, because they were regarded as having national rather than merely local value. The recent grants to States and local bodies made under the Federal Works program, in 1 Prepared in the Division of Construction and Public Employment by Alexander C. Findlay. This is the final part of this article, of which the previous two appeared in the M onthly Labor Review for Feb ruary and March 1945. The first presented the general forecast, the basic conditions which will be present, and the assumptions made; the second discussed effective demand for privately financed construction. A later article will present an estimate of the site employment accompanying the predicted construction operations. 728 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PROBABLE VOLUME OF POST-WAR CONSTRUCTION 729 large part to stimulate employment and raise the level of business activity, were intended also to improve the national welfare through providing improved facilities for public services. This latter considera tion was one influence in the choice of activities for employmentproducing expenditures. What any State or local government unit spends for construction will be governed in part by its financial condition, but unquestionably will be influenced by the extent to which grants or nonlocal tax rev enues are available. The current financial condition of local govern ment units on the whole is very good, but this is principally the result of wartime conditions—unusually good tax collections because of wartime business and employment levels, combined with suspension of all but the most urgent capital expenditures. With few new bond issues to offset retirement of maturing bonds, a substantial margin of borrowing power has been built up, and in many cases liquid assets have been accumulated as well. This condition will permit an active start on post-war construction, but is regarded as merely temporary by numerous authorities on public administration and municipal finances. Preliminary schedules of post-war improvement programs presented by States and municipalities have in a large number of cases included the direct or implied statement that execution of the proposed work was dependent on some form of Federal grant. This viewpoint was expressed with the greatest frankness by Robert Moses in a memorandum, dated February 1, 1944, which he issued as chairman of the Triborough Bridge Authority of the City of New York.2 Obviously the volume of public construction which will actually take place will be governed by broad decisions on public policy which have not yet been made. If projects are to be constructed because of a recognized immediate need for the physical facilities to be provided, the volume during this period will be less than if projects which would otherwise have been postponed to a later date are advanced in order to provide employment. It has been assumed for the purpose of the estimate that the former of these policies will be adopted, but this as sumption may be incorrect. As a result, the estimates of specific types of public construction may be regarded as conservative and in most cases are below the potential programs of public bodies. Similarly it has been assumed that Federal grants will be provided for those State and local projects recognized as valuable to the Nation as a whole. This assumption would include grants for projects such as highways, schools or hospitals, and other institutions, but not for projects of primarily local benefit such as construction of public ad ministration buildings or paving of purely local streets. If this as sumption is not met and there are no grants other than those for the Federal-aid highway system, the local construction program will be delayed and the volume during the early post-war years will be sub stantially below that estimated. Conversely, appropriations to stimulate employment will bring an increase. It has also been assumed that some effective procedure of Federal loans will be established for revenue-producing local improvements, consisting largely of municipally owned utilities. These loans would be in the form of revenue bonds, secured by the operating revenue from 3 Function and Degree of Participation of the Federal Government in the Construction of Postwar Federal, State and Local Public Works (published by City of N ew York with a transmittal letter addressed to Hon. Fritz G. Lanham, Chairman of the Committee on Public Buildings and Grounds of the House of Representatives). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 730 MONTHLY LABOR REVIEW— APRIL 1945 the improvements. This procedure will be important for those gov ernment units whose bonds are not yet reapproved for fiduciary in vestment, because of defaults which occurred during the depression. It may be even more important for other government units in permit ting them to segregate the financing of these improvements in bonds secured only by operating revenue, which are distinct from the general bonds secured by the full faith and credit of the municipality and are exempt from the debt limit existing for these general bonds. Starting of public work is dependent not only on accessibility of funds and of land but also on availability of detailed working drawings with specifications. Obtaining needed land can be a time-consuming process, but in most cases need not be. If there is definite decision on the property needed, and if the purpose of the project is accepted as unquestionably a public use, in most States possession can be obtained with slight delay by condemnation, even though legal determination of the price to be paid may be in process and may, indeed, continue over a long period. Acquisition in this manner is likely to be more expensive than by negotiation in advance, because there is no oppor tunity to choose among a number of suitable sites on the basis of negotiations with their respective owners. It is, however,.an alter native to prolonged delay when site purchase has not been undertaken sufficiently in advance. Furthermore, information from a consider able number of government bodies indicates that a rather substantial part of the total land needed for contemplated public construction is already publicly owned. For preparation of drawings and specifications there are few short cuts, except for certain kinds of work. The time required varies with the type, size, and complexity of the project, but for a project of any magnitude is likely to be at least several months. Basic designs for some types of work are fairly well standardized, but other types require preliminary surveys and careful study of alternative designs before work on the final drawings can be started. Design preparation is somewhat meager, but has advanced during the past year and shows signs of further acceleration. Prepara tion has gone farthest for State highway work. For other work, it is improved but still spotty. Early in 1944, architectural sources re ported that little public work had reached the design stage, except that in and near New York City and Los Angeles. Since then, architects have been engaged for projects in many other parts of the country, but still there are some extensive areas and a great number of local political bodies for which this step has not yet been taken. The report on the subject,3 published jointly by the Federal Works Agency and the Bureau of the Census in September 1944, notes that there were 29,270 projects (other than Federal-aid and State highways) having a total estimated cost exclusive of land of $5,969,000,000, which were in at least a preliminary stage of preparation on July 1, 1944.4 Of these, plans were completed for not quite a fourth, having about a sixth of total cost; design was in progress for somewhat over a fourth, both in 3 Report of Proposed Post-War Public Works: Volume and Status of the Plan Preparation of Post-War Public Works Proposed by State and Local Governments, prepared at the request of the Special Committee on Post-War Economic Policy and Planning, House of Representatives, by the Federal Works Agency in collaboration with the Bureau of the Census. 4 That report summarizes data obtained from 1,480 government units—44 States, 731 counties, 593 cities, and 112 special districts. All information given is for those 1,480 units exclusively, rather than an estimate for all State and local government units in continental United States. Estimated expenditures are, in general, at the cost levels expected by the various units when the work is carried out. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PROBABLE VOLUME OF POST-WAR CONSTRUCTION 731 number and in cost; and the remainder were in a preliminary stage only. In addition, 27,513 projects with estimated cost excluding land of $5,665,000,000 were in what was termed the “idea stage” (i. e., being contemplated as possibilities). The seriousness of this situation is indicated by the concentration of plans in limited areas. New York City alone reported 29 percent of all completed plans, in terms of value, while the other 4 cities having populations over 1,000,000—Chicago, Philadelphia, Detroit, and Los Angeles—reported 9 percent of the total. These 5 cities reported almost 42 percent of all work currently in the design stage. Furthermore, almost a sixth of ’the 1,480 public bodies reporting— 237—had no plans in any stage of preparation. Of the remaining 1,243, only 600 had completed plans for any of their projects at the time of submitting their reports. Reports on ability to complete plans for their projects in the design, preliminary, and idea stage showed that 535 units would be able to carry plans to completion, while 689 would not. For this latter group there were two principal reasons—lack of funds, and legal restrictions which prevent numerous government bodies from spending money on plans for any project until its construction is officially authorized. With respect to construction funds, the current state of prepara tion is likewise incomplete. According to the same report, for the projects having completed plans, 31.4 percent of necessary funds were on hand or arranged for; for those on which design was in progress, .14.8 percent; for those in preliminary stages, 7.2 percent; and for those in the “idea stage,” 5.5 percent. Negotiations were currently under way for about 5 percent of necessary funds for the first 3 of these groups, and for about 3 percent of funds for the projects in the “idea stage.” Even for those projects for which plans were complete, little more than a third of the necessary funds was on hand, arranged for, or under negotiation. It is apparent that, with respect to both planning and financing, much remains to be done if public construction is to be started as early as needed. There are indications that this situation is being increasingly recognized. Public-Construction Situation H IG H W A Y S, R O A D S, A N D ST R E E T S The most important single element of public construction will be highway, road, and street work. It will be necessary ultimately to bring the entire street and highway system into conformity with traffic requirements, including, of course, the provision of access to new localities. This will mean work to improve the traffic flow and reduce the accident hazard on primary highways, extension of the all-weather mileage of minor roads, and relief for urban traffic con gestion. In many cases work will consist of improvements to exist ing highways, such as construction of additional lanes or replacement of sharp curves, excessive grades, and other localized defects. In other cases it will be necessary to replace outworn pavement, while in some cases it will be more satisfactory to construct new highway on new right of way, for the heaviest concentrations of traffic. Work on structures will also be important—new bridges and culverts, re https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 732 MONTHLY LABOR REVIEW— APRIL 1945 placement of bridges and culverts not meeting^modern traffic require ments, and grade separations. Work withinfpities is likely to emphasize|tlre arterial-street system and access portion of(intercity jhighways to a greater extent than formerly. In some cases satisfactory treatment will require widening or relocation of right-of-way, which may necessitate demolition of buildings. This procedure involves large expenditures for purposes other than construction, and thus will take place over a fairly long period. Other city paving is likely to be fairly small in volume, except for repairs and replacement and for work in new areas actually undergoing development. Difhcul tiesJin collecting special assess ments during the last 15 years have made city officials cautious about provision of improvements in undeveloped areas. The Federal Works Agency and Census Bureau report above cited shows that of Federal aid and State highway projects to cost almost $2,200,000,000, plans had been completed for 10 percent by July 1, 1944, and were in preparation for another 43% percent. It com mented on the rapid progress mrpreparation of plans, and expressed the opinion that plans would probably be available for at least the volume of work that could be financed for the first 3 post-war years. State highway revenues, balances in the various State highway funds, and probable Federal aid would permit expenditures of approximately $1,000,000,000 per year during this period, for construction plus en gineering and land acquisition. Highway, street, and road projects not in the State and Federalaid systems, which were in the preliminary planning stage or be yond, reported somewhat over $1,500,000,000 in estimated cost ex clusive of land, of which plans had been completed for about 15 percent and were in progress for another 25 percent. These figures include bridges, viaducts, and grade separations, as well as grading and paving. The total of all new highway and related construction may be estimated at an average of $1,300,000,000 per year, at 1940 price levels. In addition, there will be a large volume of maintenance. Defi nitions of maintenance vary somewhat between State highway de partments and other bodies carrying on road work, but in general it is regarded as meaning prevention and correction of deterioration by repairs, patching, and routine operations such as periodical scraping of gravel surfaces. Even during the curtailments of war years such maintenance has been above $400,000,000 in value per year. It is likely that an average annual expenditure will be $600,000,000 in the first 5 post-war years, in part for current needs and in part to over come the deterioration resulting from past curtailments and from heavy concentration of wartime traffic. PUBLIC H O U SIN G The construction rate for wartime public housing has been falling rapidly for almost 2 years, and it seems unlikely that any substantial number of dwelling units will be started during the final year before defeat of Japan. The number during that year is estimated at about 4,000, although this may be increased somewhat by unforeseen re quirements of war production. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PROBABLE VOLUME OF POST-WAR CONSTRUCTION 733 When the war is over, a fairly rapid increase may be expected in construction of permanent slum-clearance projects by local housing authorities, with an average of 50,000 dwelling units started annually during the first 5 years. It is estimated that about 30,000 units will be started during .the first year, most of these during the latter part of the year when difficulties of material supply are alleviated, and that the annual construction rate will increase to about 60,000 during the fourth and fifth years. Average construction cost during the period is estimated at about $160,000,000, at 1940 cost levels. It is recognized that public housing has been subjected to detailed criticism, and to some degree of attack. There is a widespread desire to give every opportunity, and in fact every reasonable assistance, to private operators to meet as much of the housing need as is possible. Nevertheless there is fairly general recognition that an acute need exists for housing of families unable to meet full commercial charges for decent accommodations, whether new or used. There is accom panying recognition that slum-clearance housing projects provided for such families have been civic assets, both in the physical facilities provided and in the accompanying removal of what was often the worst of the slum buildings. It is therefore believed that public housing will be constructed on a moderate scale, but with close observation of the results being achieved. In New York State approximately 18,000 public dwelling units are scheduled for construction within the early post-war period, most of these within New York City. Drawings and specifications are com pleted for many of these and well advanced for others, and numerous sites have been acquired. Because of State legislation, financing is not dependent on actions or available funds of the National Housing Agency. Elsewhere, preparations have been made through the stage of signed loan contracts between local housing authorities -and Na tional Housing Agency or its predecessors for some 25,500 dwelling units in slum-clearance projects still postponed because of the war. It seems likely that many of these will be built, although the increase in building costs since 1941 introduces financial and legal problems. It is also possible that a few local housing authorities having suffi ciently high credit will construct additional projects even without grants from other bodies. Apart from these, it is thought, from proposed legislation and published but unofficial expressions of legis lative opinion, that sufficient Federal financing will be provided to permit a total program of the size estimated. SCHOOL B U IL D IN G S Schools are the public buildings most urgently needed. One educational authority has estimated that there is extremely urgent need for capital expenditure of at least $3,000,000,000 within the first 5 years after the war for public schools and colleges, and that additional capital expenditure of $4,000,000,000 during this period would be highly desirable. About two-thirds of each figure is for construction proper, the remainder being for equipment, architectural services, and in some cases, land. The estimate includes rural schools, urban schools below college level, and public colleges and universities. Plans to date are not commensurate with such a program, but the situation in this respect is likely to be improved materially. Al https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 734 MONTHLY LABOR REVIEW— APRIL 19 45 though school design has been undergoing fairly extensive develop ment for more than a decade, this is an architectural field in which requirements are rather widely understood, and in which certain basic designs are applicable with minor modification to different localities of similar composition and similar climate. In fact, a-few cases are known in which architects specializing in school work have retained their staffs during dull periods to prepare tentative drawings for schools of common types and sizes in order to have plans ready, when needed, for modification and completion to fit individual requirements. An average volume of $400,000,000 per year is estimated for new work, additions, alterations, and improvements. This is expected to begin with $250,000,000 in work started during the 'first post-war year, and to amount to $450,000,000 annually during the third, fourth, and fifth years. Annual expenditure was above $400,000,000 at 1940 cost levels for 6 successive years ending with 1929, and was somewhat above $450,000,000 in 1925 and 1926, but this pre-depression period was marked by a combination of stimulating factors—spread of the junior-high-school system with its need for new buildings, movement of urban population from older residential areas to out lying and suburban areas, widespread realization that nonfireproof urban schools needed replacement, and of course the viewpoint of the period favorable to physical improvements of almost all kinds. H O S P IT A L S A N D IN S T IT U T IO N S Hospitals and institutional buildings, including sanitoria and mental hospitals, will probably be built to the extent of about $75,000,000 per year. The Veterans Administration plans an annual expenditure of $20,000,000 per year for veterans’ hospitals alone—probably replacement of temporary hospitals built during the war, for the most part. This figure includes equipment and other nonconstruc tion costs, and the remainder must be deflated to about $12,000,000 annually at 1940 price levels. In addition, States and local govern ment units have projects in various stages of preparation for general hospitals, mental and other specialized hospitals, sanitoria, training and custodial institutions for the handicapped, institutions for the aged,5 and establishments of numerous minor types. In part this proposed work will provide increased capacity in accordance with greater public recognition of the need present, and in part will replace existing buildings which—in some classifications especially—are badly suited to their purposes. Because of the greatly increased recognition of the value of hospitals especially, and of other public institutions to a lesser degree, it is expected that funds will be available for the volume of construction estimated. The present state of plan preparation indicates readiness for this volume. P U B L IC A D M IN IST R A T IO N B U IL D IN G S The Federal building program is directed by the Public Buildings Administration, which submits to Congress the building programs proposed. After Congressional approval and accompanying authori5 W hile old-age assistance and social-security benefits are supplanting institutional care for the ablebodied aged, they do not affect the need for such care for the infirm, chronically sick, or handicapped. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PROBABLE VOLUME OF POST-WAR CONSTRUCTION 735 zation of funds, a committee representing PBA and the executive agencies selects specific projects from the approved list, after which land is purchased, drawings are prepared, and contracts are awarded. This activity is divided between work in the District of Columbia and work elsewhere. For the former, a study of space requirements has been made by PBA on the basis of expected reductions in personnel, return of some agencies transferred from Washington, release and demolition of unsuitable buildings, and restoration of the space per employee to the figure found from experience to permit best efficiency. The proposed program based on this study calls for demolition of temporary and obsolete buildings with about 6,000,000 square .feet of space, release of about 3,400,000 square feet of rented space, and construction of new permanent buildings with about 6,000,000 square feet. Construction cost of this program would be about $15,000,000 per year for 5 years at 1940 levels of prices. For buildings outside of Washington, a tentative program consisting of 3,000 buildings throughout the country has been prepared by PBA for submission to Congress. In accordance with established procedure, this list will be approved with or without modification, and then annual or biennial appropriations will be made establishing the construction rate. Past appropriations suggest a rate somewhat over $50,000,000 per yearfcat 1940j3osplevels. These buildings will be of all types and sizes. Some will be simple, single-purpose buildings such as border-patrol stations or small post offices, while a few will be comparable to metropolitan office buildings. For a number of years it has been the policy, in designing custom houses, post-office buildings, and other specialized buildings, to provide space for those other Federal offices in the same cities which could use this space advantageously. This policy has been followed in preparation of the tentative program. If land is not already owned it can be obtained within 30 days if necessary, by a declaration of seizure. For smaller buildings needed in quantity, mainly small post offices, numerous standard designs have been in use for some years, which can be modified within 30 to 45 days to fit individual requirements. This could not be done, of course, in the case of larger buildings or those for less-standardized uses, for which preparation of drawings ordinarily requires 6 months to a year or more, depending on the size and characteristics of the building wanted. State and local government units are planning for buildings of many types. No comprehensive tabulation by type is available, but reports from individual government bodies indicate that most proj ects will be for operating departments—fire stations, shops for publicwork activities, and other strictly utilitarian structures. There will also, however, be both additions and new buildings for city halls, courthouses, and public offices, to overcome crowding and to replace obsolete buildings. Publicly financed industrial buildings have been important only under war conditions or when war was imminent, and commercial buildings have been minor at all times. It is expected that these will be few in number and small, limited to those built in conjunction with other types of work. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 736 MONTHLY LABOR REVIEW— APRIL 1945 M IL IT A R Y A N D N A V A L C O N ST R U C TIO N Military and naval construction in continental United States will probably be fairly small—about $60,000,000 per year—since cur tailment rather than expansion of the total military and naval estab lishment is expected. This work is likely to consist largely of improvement to existing establishments to make them better suited for post-war operation. A IR P O R T C O N ST R U C TIO N There will certainly be a large public construction program for aviation facilities, for which a tentative estimate is $75,000,000 per year. Large expansion of commercial aviation over pre-war levels may be expected, as well as some expansion of private flying. The wartime construction has been enormous, but with some exceptions military requirements meant location of new fields where they will have but limited value for post-war civilian use. The principal agency in this field is the Civil Aeronautics Adminis tration, but numerous States, counties, and municipalities have also carried out varying degrees of planning. Although no formal pro gram will exist until Congressional authority is given, the subject is being studied carefully and rather detailed programs have been pre pared for submission to Congress. Whatever the extent of the program authorized, it seems likely to consist of two principal types of facilities: (1) Metropolitan airports capable of accommodating the largest planes and the heaviest traffic volume, to be built close to the center of the city. Average construc tion cost will be about $20,000,000 each. Because of the area re quired, these can be built only in cities located on suitable bodies of water where land can be created by filling in. The cost of buying a sufficient area of improved property near the downtown section, on which it would be necessary to demolish all buildings, would obviously be prohibitive. (2) Smaller airports on natural land, in several size groups intended for corresponding classes of expected traffic volume. Preliminary estimate of construction cost for these is from $80,000 to $360,000 each, depending on size. It is expected that land will be provided and supplementary ex penses (such as those for legal services) will be paid by local sponsors, ordinarily municipalities. This preparation has lagged thus far and start of work will in many cases by delayed unless planning is accel erated. The preparation time required, including that for design, ranges from 9 months for the smallest airports up to 2 years for the metropolitan airports to be built on filled-in land. R E C L A M A T IO N , C O N SE R V A T IO N , A N D D E V E L O P M E N T Comprehensive plans for reclamation, conservation, and develop ment work have been prepared by the Corps of Engineers and by the Interior Department, and construction can therefore be started on short notice. Proposals affecting the contemplated programs of both of these agencies have been made for unified development, of the TVA type, for six major river systems. Other proposed projects https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PROBABLE VOLUME OF POST-WAR CONSTRUCTION 737 include the St. Lawrence Seaway, for which a large part of the construc tion would be performed in Canada. The purposes to be served include improvement of navigation; flood control, erosion control, and soil improvement; irrigation; the generation, transmission, and distribution of electric power; and the provision of recreational areas. Some projects will serve a single purpose, particularly improvement of navigation, while others will contribute to most if not all of those listed. All this work is heavy engineering, but includes a variety of types of construction, of which dredging, rock removal, moving of earth, and construction of dams, locks, piers, and facilities for generation and distribution of elec tricity will be the most important. Public policy on expenditures will affect the volume of work on projects within this general classification more than that on most others. There is seldom the immediate urgency that there is, for example, for relief of overcrowded schools or hospitals. Results of earlier development work, and particularly the value of many of the completed projects to the war production program, have been an effective demonstration that these undertakings augment the Nation’s resources and productive capacity. Hence there seems to be little chance that they will be regarded merely as means of creat ing employment and stimulating business. An average volume of $350,000,000 annually during the first 5 post-war years is estimated, with a range from $275,000,000 in the first year to $400,000,000 in the fourth and also in the fifth year. S E W E R A N D W A T E R F A C IL IT IE S Sewer, sanitation, and water-supply projects are local undertakings, except that in metropolitan areas they are not uncommonly con structed and operated by special districts for several municipalities and the intervening unincorporated territory. Their importance, par ticularly as regards sewage-treatment facilities, is considerably more than local because of the effect on other localities. After the war there will be extension of service to growing neighbor hoods, both those formerly dormant and those entirely new, and provision of public facilities—especially for sewage—in smaller municipalities formerly lacking such improvement. In cities already providing water and sewage service there will be development of new sources of water supply, increase of capacity for pumping stations and primary distribution mains, construction of water-treatment plants, and construction or enlargement of sewage-treatment plants. Considerably greater attention than in the past is likely to be given treatment of industrial wastes, with provision made in part through public plants and in part through private facilities at industrial estab lishments producing objectionable liquids. As might be surmised, sustained level for sewer and water construc tion was greatest during the pre-depression period when residential and other building was at its height and when urban subdivisions were being marketed in greatest number. From 1925 through 1929, aver age annual volume was about $180,000,000 for sewer construction and about $155,000,000 for water. The estimated averages during the first 5 years after the war are, respectively, $200,000,000 for sewage facilities and $150,000,000 for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 738 MONTHLY LABOR REVIEW— APRIL 1945 water. Widespread public recognition of the importance of such projects is indicated by the fact that they lead all other types of work reported to the Federal Works Agency by local government units, as regards estimated cost of work for which plans were completed on July 1, 1944, and also for which plans were in preparation on that date. There will of course be caution about proceeding in vacant new sub divisions and other vacant areas, but the influence of this factor is reflected in the estimate. Financing should present no difficulties for any justified project. Watei service is a revenue-producing utility, the rates for which in clude debt service as well as operating costs. A considerable part of the cost of sewer work will be paid from special assessments. Collec tion risks will commonly be avoided by requiring the property owners to pay the assessments prior to start of the work, when they desire construction in vacant areas or areas where property values are spec ulative. The several forms of “sewer rental” by which property owners or occupants are charged separately for sewage service have been adopted in relatively few cities, but in the course of time may become inportant as a source of funds for debt service. PA R K S A N D R E C R E A T IO N A L F A C IL IT IE S This work consists in part of buildings such as auditoriums, field houses, and shelters, and in part of grading, landscaping, construction of swimming pools and beaches, and other outdoor work. The ex penditure level for buildings alone rose rather consistently during the 1920’s to a peak of $56,000,000 in 1928 and then, after depression curtailment, increased again with somewhat less regularity through 1939. Recent newspaper accounts show strong public support for some proposed projects. Nevertheless, this is one of the smaller classes of public construction and one likely to be subordinated to schools, hospitals, and other types of work which are generally re garded as more urgent. Volume is estimated at $70,000,000 per year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Occupational Outlook Post-W ar Em ploym ent O utlook in A viation O ccupations 1 P a rt 1.—Job Prospects W ith Air Lines Summary TO MANY thousands of men in the military and naval air forces who will be looking for civilian jobs after the war, the post-war em ployment outlook in aviation is a matter of immediate and urgent concern. It is also of importance to young people leaving school, for whom the attraction of aviation jobs has no doubt been enhanced by the war. A study of air transportation and related fields was there fore undertaken by the Bureau to provide information needed in vocational guidance of both these groups. The present article, which is the first of a series, deals with employment prospects in the major branch of commercial aviation—the air lines. Gains in air-line traffic and employment after the war are widely and confidently predicted. Most carriers are already planning to make major additions to routes and schedules as soon as needed authorizations, aircraft, and personnel can be obtained. There is, however, great difference of opinion as to how large the increases will be. In studying post-war employment prospects, two forecasts of air traffic, one conservative and the other relatively optimistic, were therefore selected from among many different predictions by persons well acquainted with the industry. Rough estimates were then made of the numbers' of workers who would be needed 5 years after the war if these traific forecasts were realized. For pilots, the lowest post-war employment figure arrived at was little over 6,000, the highest not quite 15,000. This would be a gain of roughly 2,000 to 10,000 above present employment in com mercial and military-contract activities. For mechanics and related personnel, the range of employment possibilities envisaged was 20,000 to 40,000—6,000 to 26,000 more jobs than at present. Comparable gains were found to be in sight for stewards and stewardesses and for ground communications operators. In the other occupations studied—flight engineers, flight radio operators, navigators, dis patchers and meteorologists, and stock and stores employees— present employment is so large relative to probable post-war needs that a sizable gain in job openings may be expected only if the more optimistic forecasts of air-line traffic prove to be correct. 1 Prepared in the Bureau’s Occupational Outlook Division by Helen Wood, with the assistance of Hilda L. Pearlman. The Bureau wishes to acknowledge the generous assistance received in the preparation of this article from many members of the staff of the Civil Aeronautics Administration^ Civil Aeronautics Board, National Mediation Board, and Harvard Graduate School of Business Administration, and from officials of the Air Transport Association and of a number of companies and trade-unions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 739 740 MONTHLY LABOR REVIEW— APRIL 1945 To measure tlie chances of finding work in these occupations after the war, it is of course necessary to combine the figures on future air line jobs with estimates of job opportunities in other aviation fields and to relate both to figures on post-war labor supply. This will be done in a later article. Background and Scope of Study Three years of war, during which the airplane has been not only a major weapon of combat but a mainstay of supply lines to every conti nent of the world, have aroused hopes of a tremendous post-war expansion in commercial aviation. Before the war, the comparatively new and small air-line industry was growing much faster than any other branch of transportation. Wartime conditions have brought shortages of planes and other operating difficulties but have increased optimism as to the future. Because of their experience in transoceanic flying under the Air Transport Command and the Naval Air Trans port Service, the airlines are aiming higher than ever before in their plans for international operations. Both inside and outside this country, unprecedented volumes of cargo have been carried, and this has led to a new emphasis on the peacetime potentialities of air express and freight, as well as of passenger traffic. The strides made in the field of radar and in military aircraft and engine construction are also expected to benefit post-war flying. When applied to civilian planes after victory, these developments should mean even greater speed, safety, regularity, and economy of operations. Hand in hand with these technical advances has gone a rapid increase in public acceptance of air transportation. There can be no doubt that many people who regarded a trip by plane as a hazardous adventure only a few years ago now travel by air line as casually as by railroad. Persons with knowledge of the industry predict that this trend will continue after the war, though they emphasize that air transporta tion is likely to remain small relative to land and water transportation during the foreseeable future. It is generally agreed that, as fares and cargo rates are reduced, equipment improved, routes extended, and flying speed further increased, there will be a marked rise in the volume of both passenger and cargo traffic moving by air. Great increases in nonsclieduled flight services, in the use and ownership of airplanes by business establishments, and in recreational flying and the services necessary to maintain private aircraft have also been prophesied. What this expansion in commercial aviation is likely to mean in terms of employment, and how employment opportunities will com pare with the numbers of skilled workers seeking jobs as pilots and in other aviation occupations, are questions of obvious importance to hundreds of thousands of men in Army, Navy, and Marine Corps avi ation who will be entering the civilian labor market at the end of the war. They are also of concern to young people graduating from school, who may be expected to feel the lure of jobs in aviation more strongly after the war than in the past. To provide at least rough answers to these questions the Bureau undertook a study of the prospects for employment both with the air lines and in the other fields—fixed-base operations, airports, corporate and executive users of aircraft, and the Civil Aeronautics Authority. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 741 One important aviation industry—the manufacture of aircraft and aircraft engines and parts-—was excluded from the study. Because of the reduction in orders for military planes which victory will bring, drastic cuts in output and employment are known to be ahead for this industry. Many men and women now on the pay roll will have to be laid off, despite the efforts that will be made to convert plants to other types of production. It is evident that veterans with specific reem ployment rights and perhaps a few other individual ex-servicemen are the only ones not on the wartime staff for whom airplane factories hold hope of employment after the war. This article deals with post-war employment prospects in the largest branch of commercial aviation—the air lines or, as they are sometimes termed, scheduled air transportation. All members of flight crews— pilots, flight engineers, navigators, radio operators, and stewards and stewardesses—are considered separately. Certain technical ground occupations are also covered, among them dispatchers and meteorol ogists, communications operators, and mechanics and helpers. Later articles will discuss future employment opportunities in other fields and will also suggest what the chances of finding a job in each occupation are likely to be, by comparing the probable number of job openings with the air lines and elsewhere to the numbers of men in the armed forces having the specified types of skill. Data on duties, qualifications, training, licensing requirements, wages, and working conditions in aviation jobs will also be presented. The A ir Lines and Their Routes Domestic operations.—There are at present 16 air lines that act as interstate common carriers of passengers or property on regular schedules within the continental United States.2 As required under the Civil Aeronautics Act of 1938, all these companies hold certificates of public convenience and necessity from the Civil Aeronautics Board specifying the routes over which they may operate and the com munities they may serve. Four lines, known as the “ Big Four,” bulk large in the domestic industry. These are American Airlines, Transcontinental and Western Air, and United Air Lines, all of which offer transcontinental service over different routes, and Eastern Air Lines, which, as its name implies, operates mainly on north-south routes in the eastern part of the country. The Big Four have in recent years transported about four-fifths of the total volume of domestic traffic and employed two-thirds to three-fourths of the workers engaged in commercial operations. Three other carriers (Northwest, Pennsylvania Central, and Braniff) have accounted for over half of the remaining traffic and employment. One of the medi um-sized carriers (Northwest) was recently granted an extension of its routes which makes it the fourth transcontinental line. These companies’ routes, together with those of the smaller carriers, form an integrated transportation system reaching all States. There are now some 61,000 airport-to-airport miles of permanently certifi cated domestic routes, with authorized stops for passenger, mail, and cargo service at about 370 cities in the United States. Not all these cities and routes are served at present, because of wartime restrictions, but all will be served after the war. Moreover, applica3 Fifteen of these lines carry passengers, mail, and property. There is, however, one small company (All American Aviation) which is authorized to carry mail and property only. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 742 MONTHLY LABOR REVIEW— APRIL 194 5 tions for new or extended routes which the domestic carriers have on file with the Civil Aeronautics Board will, if approved, provide service to many additional cities. Whether great numbers of small com munities will be reached directly will depend, however, on the future of local feeder services, still in an early and experimental stage of development. There are already a few small intrastate carriers, and some of the major air lines have routes of feeder type. No specialized interstate feeder line transporting both passengers and cargo has yet been authorized, however. The CAB has received many applica tions for certificates to operate such lines but has announced that only those which show “ a justifiable expectation of success at a reasonable cost to the Government” will be authorized and that, as a safeguard, only temporary certificates will be issued.3 International and territorial operations.—Before the war, by far the greatest part of this country’s international and territorial air traffic was handled by the Pan American Airways System, including PanAmerican-Grace Airways.4 Pan American was the only United States carrier authorized to operate routes to Latin America, across the Atlantic and Pacific, and to and from Hawaii, the Philippine Islands, Alaska, and Puerto Rico. In addition, its foreign subsidiaries fur nished service within a number of foreign countries. Service by other companies outside continental United States was limited to a few short routes to Canada, operated by domestic air lines, and a minor intraterritorial service in the Hawaiian Islands.5 The greatest wartime change in this picture has been the spectacular and extensive transocean flying done by several domestic lines under contract with the War and Navy Departments. Other changes in clude temporary authorizations from the CAB, permitting American Airlines to serve Mexico City and Braniff Airways to cross the border to Nuevo Laredo. In addition, a small new company (American Export Airlines) inaugurated a trans-Atlantic route in 1942, but thus far has been granted a temporary certificate only. What the post-war situation will be is still uncertain. Stimulated by their experience in international flying with the Air Transport Command and Naval Air Transport Service, many domestic air lines have applied to the CAB for authorization to undertake international services. At least one carrier has proposed a round-the-world route. Several steamship companies have also asked permission to operate transoceanic air lines. At the time this report was written, no de cision had been rendered on the applications' for permanent interna tional routes.6 It may well be that the number of carriers offering 3 IT. S. Civil Aeronautics Board, Docket No. 857, Investigation of Local Feeder and Pick-up Air Service, Opinion by the Board, July 11, 1944, p. 4. The question of expense to the Government arises from the fact that, und er the Civil Aeronautics Act of 1938, the rates paid for air mail must be sufficient, together with all other reve nues, to enable air carriers “under honest, economical, and efficient management, to maintain and contin ue a development of air transportation to the extent and of the character and quality required for the commerce, of the United States, the Postal Service, and the national defense.” 4 Fifty percent of tile stock of Pan-American-Grace is owned by Pan American and the other 50 percent by th e W. R. Grace Co., which also owns the Grace steamship line. Pan-American-Grace connects at Cristo bal with the Pan American route between the United States and the Canal Zone, furnishing service along t he west coast of South America to Chile and thence across the Andes to Buenos Aires. 3 In addition, Caribbean-Atlantic Airlines, a Puerto Rican company operates an inter-island service in the Caribbean. There is also a network of local air services within Alaska, but these have thus far been classified as nonscheduled operations by the Civil Aeronautics Board. o Although no decisions on this subject have yet been announced by the Board, reports by the Board’s examiners with regard to the applications for North Atlantic and Latin American routes were recently issued. The first of these recommended that Pan-American Airways and American Export Airlines be authorized to operate North Atlantic routes and that applications for such routes from other air lines be denied. The report on Latin American routes recommends that certificates be granted to Pan American, Eastern, Braniff, American, and Western Air Lines, authorizing service between the United States and various points in Central and South America and the West Indies. Applications for South Atlantic and Pacific routes are also under consideration. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 743 service outside the Americas will eventually be decided by Congress rather than the CAB, because of the major questions of international policy involved. A ir-Line Traffic and Employment Before and During the War T R E N D S IN T R A F FIC A N D E M PL O Y M E N T The air lines of the United States had a total of only 22,100 em ployees at the end of 1940, the last “ normal” pre-war year. Of these workers 15,800 were employed by the domestic carriers and the re mainder by those engaged in international or territorial operations (table 1). With this comparatively small staff, the air lines handled 1,152 million passenger-miles of revenue traffic during 1940, of which 1,041 million passenger-miles was in domestic operations and 111 mil lion in operations wholly or partly outside the limits of continental United States. They also moved 14 million ton-miles of mail, express and freight over domestic routes and a smaller tonnage outside the United States. The railroads, on the other hand, accounted for 23,762 million passenger-miles of transportation and 373,253 million ton-miles of freight during 1940,7 and in December of that year had more than a million employees.8 T able 1.—Employment and Traffic in Domestic and in International and Territorial Air-Line Operations, 1936—43 1 Item 1936 1937 1938 1939 1940 1941 1942 1943 Domestic operations Number of employees (as of Dec. 31 of each year) . _____________ ______ _ 7,045 7,529 8,955 10, 509 15,800 18,984 26, 447 30,349 Revenue passengers carried (in thou sands)___ _ _ _______ ______ _____ 911.1 958.5 1,176. 9 1, 717.1 2, 727.8 3, 768. 9 3, 349.1 3,351. 5 Revenue passenger-miles (in millions) - _ 388.2 407.3 476.4 677.7 1, 041. 2 1,369.6 1,398.0 1,606.1 5.7 6.7 7.4 8.6 10.0 12.9 21.1 35.9 Mail ton-miles (in millions)__________ 2.2 2.2 5.2 Express ton-miles (in m illions)________ 1.9 2.7 3.5 15.1 11.7 International and territorial operations Number of employees (as of Dec. 31 of each year)______________ _ 5,414 6, 256 7,474 13, 214 2,950 4,063 4,354 Revenue passengers carried (in thou 161.2 216.8 311.1 383.9 sands) _______________ ___________ (2) (2) (2) 78.2 111.2 Revenue passenger-miles (in millions) __ (2) 179.0 264.0 (2) (2) 675.4 1,045. 4 1,637. 4 3,355. 5 M ail pounds (in thousands) 3___ _ _ _ 328.3 426.3 484.7 Express pounds (in thousands)3_______ 873.2 1,114.0 1,270.0 1,398.0 1,682.0 3,105.4 8, 509.4 (2) (2) (2) (2) « 1 Figures for domestic operations obtained from Statistical Handbook of Civil Aviation (Civil Aeronau tics Administration, Oct. 15, 1944); statistics for international and territorial operations, from Civil Aero nautics Journal (U. S. Department of Commerce), Jan. 15, 1944. 2 N ot available. £ 2 Ton-mile figures not available for international and territorial operations. ” Considered in the light of its brief history, the 1940 position of the air transport industry was very favorable. At that time the industry was only about a decade and a half old 9 and had been growing much 2 Statistics of Railways of Class I (Interstate Commerce Commission), 1929-42, sheet 3. Figures refer to revenue traffic only. 8 Wage Statistics of Class I Steam railways in the United States (ICC, Bureau of Transport Economics and Statistics), Statement No. M-300, 1940. 2 For all practical purposes, the transportation of passengers and property by air on a regular schedule and a commercial scale began in 1926. A number of private carriers opened contract mail routes during that year, under the provisions of the Air Mail (Kelly) Act of 1925. Before then the only extensive air service in this country was the Government-operated mail route between N ew York and San Francisco, initiated in 1919-20. 6 3 6 3 7 2 — 45— 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 744 MONTHLY LABOR REVIEW— APRIL 1945 faster than any other form of transportation. In the 4 years from 1936 to 1940, air-line employment more than doubled in both branches of the industry. Large gains were registered also by all classes of traffic during this period, although, as table 1 shows, the rate of increase was greater for passengers than for mail or other cargo. During 1941, the rise in business activity incident to the national defense program further accelerated the growth in air-line traffic and employment, but since then expansion has been restricted by shortages of planes. The domestic carriers had 359, the international and terri torial carriers 94 planes in service or reserve at the end of 1941. Shortly after the attack on Pearl Harbor, however, the armed forces took over many of these aircraft by purchase or lease. At the end of 1942, the domestic commercial fleet was left with 179 planes, only half its pre-war strength. A few urgently needed planes were re turned to the airlines for commercial operations in 1943, but the num bers released were small until mid-1944 and raised the domestic fleet to only 347 planes by the end of that year. The record of the air lines in maintaining traffic at high levels despite the shortage of equipment is a major achievement. Though there has been a drop in number of passengers carried, from the 1941 peak, passengers have averaged so many more miles per trip than before the war that total revenue passenger-miles have shown an increase. There has also been a substantial rise above 1941 levels in tonnage of mail and other cargo handled by both domestic and inter national carriers (table 1). The seeming paradox of increased service with decreased equipment has been made possible partly by higher pay-load factors and partly by an extraordinary increase in plane utilization. During 1943, the domestic carriers used, on the average, 88 percent of their passenger capacity per flight for revenue traffic, compared with only 59 percent in 1941. Whereas before the war average plane utilization in domestic operations was about 6 or 7 hours a day and in 1941 was 8% hours, since 1943 it has been 10 to 12 hours.10 A rise in labor requirements per plane has of course accompanied the intensified plane utilization. It has been estimated that about 4% crews are required for each aircraft in service under present operat ing conditions,11 although at the end of 1940 the domestic lines aver aged less than 3 crews per plane. In addition, an expanded ground and office force has been necessary to service the heavily taxed equip ment and handle the continued increase in traffic. The result has been a gain in personnel employed in domestic com mercial operations from the previously cited figure of 15,800 at the end of 1940 to 30,300 at the end of 1943 (table 1). In the inter national and territorial segment of the industry, employment more than doubled in an even shorter period, rising from 6,300 at the end of 1940 to 13,200 on December 31, 1942, the last date for which con siderations of military security have permitted release of employment figures. These statistics exclude, as far as possible, personnel employed full time in the special wartime activities undertaken by all air lines 1(1 The Airlines of the United States at War (Office of War Information); Statement by Colonel Edgar S. Gorrell, President, Air Transport Association, before the ninth Annual Meeting of the Association, Novem ber 29, 1944. 11 Air Facts (N ew York), August 1944 (p. 26): Air Line Flying for Post-War Military Pilots, by F. A. Spencer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 745 under contract with the War and Navy Departments. Most carriers have participated in transport operations for the ATC and the NATS, within this country and to all the major theaters of war. Some have conducted training programs for Army and Navy personnel, providing instruction in the operation and maintenance of multi-engined trans port craft. A number of lines have also had contracts for the main tenance and repair of military aircraft, engines, and instruments or have operated modification centers at which armed-force planes undergo changes needed to fit them for a specific task. The exact numbers of workers employed in these different activities’ are a military secret. Total air-line employment exclusive of per sonnel in modification centers was, however, about 45,000 or 50,000 at the end of 1944, according to information supplied by the Air Transport Association. E M P L O Y M E N T , B Y O C C U PA T IO N Though the total employment figures for air transportation pre sented above are important as a measure of the industry’s growth, they include many diverse occupational groups—-pilots, stewards and stewardesses, mechanics and helpers, and communications, adminis trative, and clerical employees—which may have quite different em ployment trends. Estimates of the numbers of employees in each of these fields of work and in some other occupations of special interest in this study are shown in table 2, for 1940 and later years. It is seen that pilots and other members of flight crews make up only a minor fraction of the industry’s work force. At the end of 1940, only 1,900 pilots and copilots were employed in domestic op erations, 12 percent of total personnel in all types of work. In international and territorial»- operations, there were then fewer than 400 pilots, 6 percent of all employees in that segment of the industry. The numbers of stewards and stewardesses employed were still smaller, and there was no appreciable employment of other flight personnel. By far the largest occupational groups were mechanics and helpers, office employees, and, in international operations, other hangar and field personnel; taken together, these three groups rep resented over two-thirds of the work force in each branch of the in dustry. According to the statistics for 1941-43, wartime developments have not greatly changée! this relative picture, although there has been a marked increase in employment for all occupational groups except stewards and stewardesses. Caution is necessary, however, in inter preting the figures for 1942 and 1943. As already mentioned, the statistics compiled by the CAA and CAB are, in general, limited to the air lines’ commercial activities, but it has not been possible to exclude workers engaged part time in commercial and part time in military-contract operations. For some occupational groups, there fore, the 1942 and 1943 figures in table 2 exaggerate the increase in employment in commercial activities during the period covered, but they no doubt understate present employment in all instances if all types of air-line activities are considered. In the case of pilots, for example, the most recent statistics show a total of 3,500 employed-—2,500 with the domestic lines at the close of 1943 and 1,000 with the international and territorial carriers as of December 31, 1942 (table 1). In comparison, a rough but apparently https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 746 M ONTHLY L A B O R R E V I E W — A P R IL 19 45 reasonable forecast made in the summer of 1944 placed the number of pilots likely to be flying in domestic commercial activities at the end of the year at 2,700 and estimated those engaged in military-contract T a b l e 2 . —Employment in Domestic and in International and Territorial Operations of Air Lines, by Occupational Group, 1940-43 1 Number of employees as of December 31 Occupational group 2 1940 1941 1942 1943 Domestic operations ------------- 15, 800 18, 984 26,447 30, 349 P i l o t s . , _______ . ____________ ____ ___ Captains and senior pilots___ . . . ----------------- . First pilots and copilots_____ ___ . . . . . . . - . . . Other flight officers and mechanics 3__________ ____ Stewards and stewardesses ._ . _________ . . Dispatchers and meteorologists 3________ ____. . . Mechanics and assistants------- --------- ------- . . . Stock and stores employees 3__ . . _______ _ ----------Communications operators, ground 3. . . . . . . ------- . Other hangar and field personnel.__ . . . . . . . . . . . . . Office emplovees ...... ................... . . All other employees- ______ _ . . . _______ ____. . . 1,894 893 1,001 16 910 237 3, 99,5 371 798 1,063 5,815 701 2,137 1,065 1,072 47 1,024 266 4, 333 503 892 1,293 7, 759 730 2, 277 974 1,303 112 788 383 7, 770 752 1,179 2,178 9,883 1,125 2, 516 1,005 1, 511 284 835 394 8,084 929 1,374 3,349 10, 800 1, 784 All groups_______________ . . . ----------- International and territorial operations All groups----------------------- ------------------------------------ 6, 256 7, 474 13,214 0) Pilots_______ . . . . . . . ______________ _______ - . Captains and senior pilots---------------------------------First pilots, copilots, and other flight officers.. ---Stewards and stewardesses 5. _______ . . . . -------------Mechanics and assistants 5 ._ . . . . . . . . -----Other hangar and field personnel 5_.------------ ------------Office em ployeess. . . . . . All other employees 5____ __________ _______ . . . 368 153 215 130 1,414 2,388 1,922 34 480 217 263 186 2,056 2,746 1,951 55 1,010 377 633 386 3, 649 4,477 3,473 219 0) G) G) G) G) G) G) G) 1 Except as indicated in footnotes, figures for domestic operations were obtained from Statistical Hand book of Civil Aviation (Civil Aeronautics Administration, October 15, 1944); statistics for international and territorial operations, from Civil Aeronautics Journal (U. S. Department of Commerce), January 15, 1944. 2 The figures for groups other than flight crews do not cover strictly comparable personnel for all carriers because of differences in reporting methods. 3 Figures for these occupations are estimates based upon data from the Civil Aeronautics Board’s Annual Airline Statistics. The estimates for “other flight officers’’ were subtracted from the C. A. A. figures for copilots; those for dispatchers and meteorologists and stock and stores employees from the C. A. A. figures for “other employees” (including dispatchers); those for communications operators from the figures for “other hangar and field personnel.” 4 Information not available. 3 Foreign personnel employed abroad are included, as well as personnel from the working population of the United States. operations at 1,300.1:1 If allowance had been made also for the com mercial activities of international and territorial carriers, the total of 4,000 thus arrived at would have been raised to at least 4,600 pilots and copilots.10 12 Spencer, op. cit., p. 27. The estimate of 2,700 for commercial operations was based on the assumption that about 300 planes would be in service at the end of 1944 and that 414 crews of 2 pilots each would be re quired per plane. Since somewhat more planes than this were actually in service by that time, the estimate may be slightly low. 13 At the end of 1943, about 590 pilots and copilots were employed by Hawaiian and Colonial Airlines and by Pan-American Grace and the Latin-Ameriean divisions of Pan-American Airways, all of which bavehad uninterrupted commercial operations though the system’s other divisions for a time operated exclusively on a naval contract basis. The Alaskan Division was returned to commercial operation in the summer of 1944, and the same change was made in the Atlantic Division at the beginning of 1945. The Pacific Division is still operating entirely on contract. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 747 Post-W ar Employment Prospects Unquestionably there will be marked gains in air-line traffic and employment after the war. As already mentioned, such increases are generally expected, and many signs point in that direction—the strong pre-war upward trend in the industry, the continued rise in traffic and employment during the war, despite the shortage of equipment, and the plans for major expansions in routes and schedules announced by most lines. There is, however, great disagreement as to the probable size of the impending increases. Forecasts of the volume of domestic pas senger traffic in the fifth year after the war, for example, range from less than 5 billion to more than 16 billion passenger-miles. Among the most careful and reasoned analyses of post-war air-line traffic and equipment are those given in an article by Dr. Edward P. Warner, Vice Chairman of the Civil Aeronautics Board,14 and a more elaborate study by the Business Research Department of the CurtissWright Corporation.15 The first study reaches considerably more optimistic conclusions than the second with respect to domestic traffic, but the results of both lie well within the range of expert opinion. Dr. Warner forecasts a yearly total of 12 billion and the Curtiss-Wright study one of 7 billion passenger-miles for about 5 years after the war.16 These estimates cover not only air-line operations of the conven tional type but also scheduled local feeder services. In both studies, the point of departure is a calculation of the lowest passenger fares and cargo rates that will be economically feasible for different classes of traffic a few years after the war. Forecasts are then made of the volume of traffic that will be newly created or diverted from other forms of transportation at the specified fares and of the numbers of planes of different sizes that will be needed to handle the estimated traffic. The conclusions reached thus rest in both instances primarily upon economic factors. Underlying them is, however, the assumption that the expansion in this country’s airport and airways system will keep pace with the need, and that, in the international field, post-war political arrangements will allow a free development of air transport. It is also implicitly assumed that the total volume of traffic will be relatively little affected by possible alternative decisions by the CAB on air-line routes, important as these decisions are to the individual companies involved. In considering how many flight personnel, mechanics, and other skilled workers are likely to be employed in post-war air transporta tion, the Bureau has relied heavily upon the Warrier and CurtissWright studies. By estimates of labor requirements per plane or per unit of traffic handled, the two sets of traffic and equipment forecasts shown in table 3 have been translated into numbers of workers. The resulting employment figures are of course subject to wide uncer tainties and possibilities of error, but they do illustrate, in broad terms, about how many air-line jobs may reasonably be expected under the given widely different assumptions regarding traffic and equipment. h Air Transport (N ew York), September 1944 (pp. 33-37) and October 1944 (pp. 79-89): Where Next?, by Edward P. Warner. is Air Transportation in the Immediate Post-War Period, by B. A. M cDonald and J. L. Drew. Buffalo, Curtiss-Wright Corporation, 1944. is The Curtiss-Wright forecasts cited in this report are for 1960, but were made on the assumption that the war would be over in all theaters in 1945. Dr. Wamer’s estimates are stated to be for 5 or 6 years after the war. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW-— APRIL 194 5 748 T a b l e 3 . —Forecasts of Air-Line Traffic and Planes for Fifth Post-War Year, Compared With 1940 1 Yearly traffic (in millions of ton-miles)2 Number of planes 3 Item Mail Cargo Total Passen ger Domestic operations: 1940 ___ Forecast, for 5th year after war, by— Curtiss-Wright Warner International and territorial: ___________ 1940 .. . Forecast for 5th year after war, by— Curtiss-Wright_________ Warner________________ 117.5 104.0 897.0 700.0 1, 200. 0 (9 Total 3.5 338 87.0 110.0 571 1, 200-1, 700 10.0 (9 (9 1.0 1.2 13.7 11.5 188.6 (4) 155.0 8.6 25.0 (9 (9 (9 124 158 (9 Feed er Small trunk 232 101 91 (9 Inter mediate Large trunk trunk 5 216 264 6600-900 600-800 39 70 60 (9 15 7 55 36 (9 (9 0) i Data are from Curtiss-Wright Corporation, op. cit. (pp. 14, 16, 22, and 23), and Warner, op. cit. in Air Transport, September 1944 (p. 37) and October 1944 (p. 83). 2 1 ton-mile is considered as equivalent to 10 passenger-miles. This assumes an average weight (including baggage) of 200 pounds per passenger. Statistics for 1940 are those given in the Curtiss-Wright report. It will be noted that the estimate of international passenger traffic is slightly higher than the CAA figure in table 1, reflecting differences in the definition of international operations. Figures on mail and cargo tonnage in such operations, for which no exact statistics have been compiled, are estimates by the Curtiss-Wright Corporation. 3 The classifications of planes given here are those used in the Curtiss-Wright report. The range in pas senger-seating capacity for each class of aircraft is as follows: Feeder, 10-15 seats; small trunk, 20-25; inter mediate trunk, 40-60; large trunk, 80-125. In both the Curtiss-Wright and Warner studies the aircraft estimates are in terms of combined passenger-cargo planes. Since it was expected that specialized cargo planes would be a very small part of the total fleet for at least 5 years after the war, no allowance was made for them in the above forecasts or in the Bureau’s employment estimates. 4 Information not available. Dr. Warner’s article includes an extensive analysis of air-cargo potentials but no definite forecasts of cargo traffic. Since he concluded that cargo operations would be, for the most part, incidental to carriage of passengers during the first post-war years, his estimates of future aircraft requirements in domestic operations are based on forecasts of passenger traffic only. In the case of inter national operations, his article gives a traffic estimate only for the United States and foreign-flag carriers combined. 5 Included with small trunk planes. 6 Includes feeder planes, also. An allowance of 300-600 planes of feeder or small-trunk sizes was made for local feeder operations and of 300 small planes for regular air-line use. FL IG H T C R EW S IN DOM ESTIC O P E R A T IO N S If the forecast of 1,200 to 1,700 planes in domestic operations made by Dr. Warner should be realized by 1950, this would mean a 250-400 percent increase within one decade in the numerical strength of the domestic fleet. The increase in its passenger- and cargo-carrying capacity would be much greater still, owing to the anticipated use of larger and faster planes, at least for long-distance and main trunk-line service. Similarly, the expansion in flight personnel would exceed that in numbers of planes. To man the Lockheed Constellations and Douglas DC-4’s and DC-6’s already ordered by the air lines, and future planes in the same ‘‘intermediate trunk line” class, a flight engineer will sometimes be necessary in addition to the two pilots carried on all domestic flights.17 At least two stewardesses (or a steward and a stewardess) will also be needed for the 40 to 60 passengers carried on these planes, though one is sufficient on “small trunk line” planes such as the present 21-passenger DC-3’s. On the even smaller feeder-type planes, where the copilot generally handles 17 The Civil Air Regulations require in effect that there shall be at least two pilots on all planes used in scheduled transportation of passengers or in any transport flying by instrument. In local feeder pick-up services handling mail and other cargo only and flying by contact, only one pilot need be carried, together with a crew member to operate the pick-up device; no allowance could be made for this deviation from usual air-line personnel practice, but it will probably not be widespread enough to have an appreciable effect upon the post-war employment situation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 749 ♦ the duties assigned to a stewardess on larger^craft, no one in this occupation will be required. In addition, the number of crews needed per plane will be larger after than before the war, though probably less than at present. Other things being equal, the number of crews required varies with the number of hours the planes are used per day. With the return to peacetime conditions, aircraft utilization is likely to decline somewhat frofti its present great intensity. More planes will then be available to the air lines, and since people will tend to be less willing than now to travel at any time they can get transportation, there will be pres sure to concentrate flights at convenient hours of the day and also to schedule additional flights at week ends and other periods of peak loads. It is, however, assumed in the Warner and Curtiss-Wright studies, as by others familiar with the industry, that the carriers will be successful in holding utilization above pre-war levels, which would be desirable in view of the relation to operating expenses. This line of reasoning obviously implies that the average number of crews em ployed after the war will be somewhere between the pre-war and the wartime figures, perhaps 3.5 or 4 per plane. Taking these various factors into consideration, it seems likely that the use in domestic operations 5 years after the war of 1,200 to 1,700 planes of the types indicated in table 3 would mean the employment of about the following numbers of flight personnel. Number of employees Total_____________ _______ 16,300-19,500 Pilots and copilots________ Flight engineers1_________ Stewards and stewardesses. 9, 500-12, 000 800900 6, 000- 6, 600 i In deriving these figures, one flight engineer was allowed for every 3 crews. This assumption tends if anything to overstate their probable future employment, since intermediate planes are not expected to require such personnel in domestic operations, except on long flights. These figures, which are illustrations rather than forecasts, of course take no account of factors now immeasurable or unforeseen that may nevertheless affect personnel requirements by 1950. The figures are approximately in line with confidential forecasts of total employ ment in domestic operations made by one major air line and low in comparison with rough estimates by another company. Nevertheless, they are believed to be an optimistic picture of post-war employment opportunities. If the estimates of numbers of planes in the CurtissWright study should prove to be correct, only about 5,000 pilots, 400 flight engineers, and 3,300 stewards and stewardesses are likely to have jobs in domestic operations in 1950.18 FL IG H T C R EW S IN IN T E R N A T IO N A L A N D T ER R IT O R IA L O P E R A T IO N S In the smaller international and territorial branch of the air transport industry, a marked expansion in traffic is also expected after the war, with a lesser increase in equipment and flight personnel. The Curtiss-Wright study predicts that United States carriers will move 189 million ton-miles of passenger and cargo traffic outside this country in 1950—13 times as much as in 1940. It is estimated, is To allow for the especially high assumption as to utilization of equipment made in the Curtiss-Wright study, a somewhat greater number of crews per plane (4^) was allowed in deriving these employment figures than in deriving those based on Dr. Warner’s equipment forecasts. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 750 MONTHLY LABOR REVIEW— APRIL 1945 however, that 158 planes, only about one-fourth more than at the end of 1940, are all that will be needed to handle this volume of traffic, owing to the increased size and speed of the aircraft, much higher pay-load factors, and more intensive utilization of equipment. These traffic and equipment estimates are the foundation of the illustrative figures on post-war employment in international opera tions presented below.19 In the Warner study, estimates for operations outside the continental United States are limited to a forecast of passenger-mileage for United States and foreign-flag carriers com bined, and this is of the same general magnitude as the comparable figure from the Curtiss-Wright report (2 billion compared with 2.4 . billion passenger-miles). The planes needed to handle post-war traffic outside this country are expected to include small feeder-type aircraft, for use in internal operations in foreign countries by American flag subsidiaries, small trunk-line types for short runs to Central American and Caribbean points and other short-haul operations, intermediate planes for inter continental, transocean, and trunk-line use, and a few giant planes such as the projected Lockheed Constitutions and Douglas DC-7’s for long-range transocean flights. Even among planes in the same size class, the composition and size of the crew are likely to vary with the nature of the route, the company involved, and the model of plane in use. In international flying, small and intermediate trunk line planes will often need radio operators and sometimes also navi gators, besides the crew members carried in domestic operations, though the need for these types of personnel will diminish as world wide radio direction-finding systems are established route by route. Some but not all lines plan to employ a captain in addition to two other pilots on intermediate-sized planes, and to carry relief crews on long flights. On the largest aircraft, which will accommodate 80 to 100 or more passengers, there is likely always to be a captain, besides the senior pilot, and other additional crew members such as a second flight engineer and a number of stewards and stewardesses. These prospective variations in the make-up of flight crews are one reason why assumptions as to personnel requirements are more un certain and difficult to make for the international than for the domestic carriers. Another reason is that, in the case of international opera tions, pre-war relationships are of little use as a guide in analyzing post-war labor requirements. Before the war, flights were made largely by day in services outside this country, but after victory, as during the war, flying will go on “around the clock” on many inter national routes. In consequence, utilization of equipment and crew requirements per plane will no doubt continue to be much above the low pre-war figures. In the Curtiss-Wright study, the conclusion is reached that the international carriers are likely to achieve in 1950 a level of aircraft utilization little below the high figure predicted for post-war domestic operations. In translating the Curtiss-Wright forecasts of numbers of planes into figures on flight personnel, nearly as many crews per plane (4) have therefore been assumed for international as for domestic opera tions, though the international and territorial carriers averaged only 19 Because of differences in the definition of international operations between the Curtiss-Wright study and other sources, post-war employment figures based on the Curtiss-Wright forecasts for such operations tend to have some upward bias in comparison with the available statistics on pre-war and wartime employ ment. No quantitative allowance could be made for the bias, but it is too small to affect substantially the conclusions as to employment opportunities and trends. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 751 about 2 crews per aircraft in 1940. Differences in crew composition have also been allowed for, roughly. The results are the lower figures in the tabulation on flight personnel given below. Despite the comparatively large number of crews assumed, these minimum figures are far below the emplojunent levels which are suggested by relating the Curtiss-Wright traffic forecasts to pre-war labor requirements per unit of international traffic, or even to the lower pre-war labor requirements of the domestic carriers. This is due to the great rise in volume of traffic carried per plane which the study postulates. Some idea of the number of employees that might be needed to handle the predicted traffic if there should be only a moderate decrease in equipment and personnel ratios compared with the past experience of international and territorial operators is provided, however, by the higher figures in the accompanying tabula tion. To derive these figures, actual 1940 statistics on numbers of pilots and of stewards and stewardesses employed per revenue pas senger-mile in domestic operations were related to the Curtiss-Wright forecasts of international passenger traffic (from table 3). Since the domestic carriers employed few if any flight engineers, navigators, or radio operators in 1940, comparable figures for these groups were approximated by means of ratios to numbers of pilots, based on recent data on the international operations of a major air line. The ranges of figures on flight crews in international and territorial operations 5 years after the war, thus obtained, are as follows: Number of employees Total___________________________________ 2, 950-7, 200 Pilots (including captains)________________ 1, 300-2, Flight engineers andmechanics____________ 300Navigators_______________________ ______ 250Radio operators_________________________ 400-1, Stewards and stewardesses________________ 700-1, 800 900 700 400 400 M E C H A N IC S A N D R E L A T E D O C C U PA T IO N S Skilled mechanics and mechanics’ helpers are employed by the air lines both at their main overhaul bases and in “line maintenance” or “servicing” of aircraft at stations along their routes. The greatest concentrations of both skilled and semiskilled men are of course at the maintenance bases, to which planes are taken for overhaul at regular intervals and where all major repairs and modifications in planes and engines are carried out. The total number of mechanics needed at air-line stations to inspect aircraft and make necessary adjustments and minor repairs is, however, considerable also. Future employment in this occupation will be influenced not oidy by the number, size, and complexity of the planes to be serviced at the major overhaul bases, but also by such unpredictable factors as the number of stations at which service mechanics will be needed, the frequency of plane arrivals at these stations, and the degree to which the mechanics’ working time is utilized. On lightly traveled routes, skilled maintenance men may have little to do in the intervals when there are no planes to be serviced, and they may thus be able to handle an increased number of aircraft and volume of traffic without a corre sponding increase in the working force. Under these circumstances, refined;estimates of future labor requirements are obviously impossible. A study of past trends in ratios of mechanics employed to volume of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 752 MONTHLY LABOR REVIEW— APRIL 1945 traffic, supplemented by data from a large air line as to workers needed at the repair base for each engine in service, has, however, provided a basis for rough illustrative figures on post-war employment opportunities in the occupation. For at least 7 years before the war, there was a steady decrease in the number of mechanics employed per million ton-miles of traffic handled by the domestic lines, as a result of increased traffic, improved equipment, and many other factors. The decrease was interrupted in 1942, owing to wartime equipment shortages and special militarycontract activities, but it was resumed in 1943 and there is reason to believe that it will be evident to some degree after the war. If so, the likelihood is that about 30,000 mechanics will be employed in domestic operations if Dr. Warner’s predictions as to passenger traffic come to pass, but only about 15,000 if the more conservative forecasts of the Curtiss-Wright study prove correct. For international and territorial operations, the most probable level of employment in the occupation would be 5,000 to 10,000, depending on the efficiency of operations, assuming a realization of the Curtiss-Wright forecasts with regard to international traffic in 1950. By no means all the jobs included in the latter figures would go to American workers, however, since carriers with stations in foreign countries will employ consider able numbers of foreign personnel. These figures cover not only all-round engine mechanics but also aircraft structural mechanics, specialists such as radio and instrument repairmen, and semiskilled helpers and line maintenance men. No figures on anticipated job opportunities for these different occupational groups can be given. The only available information on this subject is a percentage distribution of maintenance personnel by occupational specialties, based on estimates of personnel requirements by the Air lines War Training Institute, which is presented in the tabulation below. Since these estimates were made for very large wartime oper ations where there would naturally be more specialization of function than in many repair bases, they probably overstate employment opportunities for propeller,' instrument, and other specialists in the air transport industry as a whole. They do, however, set a useful upper limit on the proportion of mechanics’ and related jobs likely to be available to men with any of the specified types of specialized skills. Percent1 Airplane overhaul___ Metal workers_______ Welders_____________ Machine-shop workers Paint and interiors__ Hydraulic overhaul__ Engine overhaul___ Accessory overhaul__ Carburetor______ Magneto________ Generator______ 21. 5 8. 8 2. 3 3. 4 2. 3 0. 8 9. 2 8. 5 4. 6 .4 .4 Percent1 Accessory overhaul— Continued. Starter Control box. _ General _ Propeller overhaul ._ _ _ Radio maintenance. Instrument maintenance Riggers and cable splicers Line maintenance Total _ „ . 0. 4 .4 2. 3 1. 1 4. 4. 2. 30. 6 6 3 6 _ _ 100. 0 1 Based on unpublished estimates of the Airlines War Training Institute. OTHER GROUND PER SO N N EL Employment of stock and stores employees varies directly with the number of mechanics on the pay roll, to whom tools and other equip ment and supplies must be issued About one stock clerk or supply https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 753 man is needed for every 10 mechanics employed, according to the 1940-43 employment statistics for domestic operations as a whole (table 2). On the basis o'f this ratio, the numbers of stock and stores jobs implied by the figures on mechanics given in the preceding section would be 1,500 to 3,000 for domestic air transport and 500 to 1,000 for the international and territorial branch of the industry. The volume of work for dispatchers and meteorologists, on the other hand, is governed to a considerable extent by the number of flights through air-line stations. In the absence of forecasts with regard to such flights, the best available clue to post-war employment in this occupational gtoup is apparently the prospective increase in flight crews, which will also be related, though perhaps less directly, to the numbers of plane arrivals and departures. The same proportionate gains in employment above 1940 levels as had been arrived at for pilots were therefore assumed for dispatchers and meteorologists in domestic operations, yielding an estimate of from 650 to 1,500 jobs for such personnel with the domestic carriers 5 years after the war. Roughly comparable figures on post-war employment of dispatchers and meteorologists in international operations would be about 250 to 500. For communications operators, the expected volume of air traffic is probably the best guide to post-war labor requirements. Handling reservations and other messages with regard to traffic is a sizable part of air-line communications work, although employees in this group also transmit weather information and operations and general messages from station to station and ground to plane. It must be borne in mind, however, that sharp increases in traffic may not necessitate equal gains in indirect operating personnel such as communications em ployees. Also, because of the keen competition which the air lines will face both within the industry and from other branches of trans portation, they will be under continual pressure to reduce staff and thus cut operating expenses. In all probability, therefore, the number of communications operators employed per million ton-miles of traffic will be much lower by the fifth post-war year than in 1940—perhaps about one-half as great. Should this be correct, roughly 4,500 such employees would be required to handle the volume of domestic traffic forecast by Dr. Warner and only about 3,000 to handle that indicated by the Curtiss-Wright study, while 800 to 1,000 more might be em ployed in international and territorial services in view of the CurtissWright forecasts for this segment of the industry. In addition to the occupational groups so far discussed, there is of course a wide variety of other air-line employees—administrative and supervisory personnel, professional engineers, clerical workers (a very large group), ticket and passenger agents, cargo handlers, and many others. These workers have comprised about half of total domestic air-line personnel since 1940. In the international branch of the industry, they have bulked even larger, although no exact ratio to total personnel can be given because of the lack of separate employ ment data for certain occupations. As air-line traffic rises after the war, so will the numbers of em ployees in these different groups, but whether the rate of gain will be faster or slower than in the occupations for which post-war employ ment figures were arrived at is uncertain. Many of the workers not covered by post-war estimates are of course indirect employees, and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 754 MONTHLY LABOR REVIEW— APRIL 1945 experience in many industries has shown that the proportion of per sonnel in this category tends to fall as business rises. In air transpor tation, however, this tendency will be tempered by a sharp drop from pre-war levels in the numbers of direct operating personnel employed per unit of traffic. P R O S P E C T IV E IN C R E A S E S IN E M P L O Y M E N T A B O V E P R E -W A R A N D W A R TIM E LEVELS What do all these figures mean in terms of expansion in air-line employment? Compared with pre-war employment levels, the pros pective gain is obviously great. The lowest post-war figure arrived at for pilots was nearly 3 times, the highest figure more than 6 times, the number employed at the end of 1940, considering both branches of the industry together. For mechanics and related personnel, the range of employment possibilities envisaged was from 3% to 6% times the 1940 employment figure. In the other occupations covered, equal or greater relative gains were found to be in sight. As already in dicated, no definite statement can be made as to future prospects for the remaining large group of workers not studied in detail. For purposes of illustration let us assume, however, that these workers will continue to represent the same proportion of air-line personnel as in 1940. If this should be the case, the most probable minimum and maximum figures for total air-line employment 5 years after the war would be about 80,000 and 160,000, compared with 22,000 at the end of 1940 and more than twice that figure at the beginning of 1945. Iiow post-war employment is likely to compare with present per sonnel strength, occupation by occupation, is a still more important question to men who may be seeking aviation jobs. To provide some approximate answers, the most recent available employment estimates for commercial operations were adjusted as far as possible for personnel now engaged in military-contract activities, who will no doubt have a prior claim on the commercial jobs that will gradually be created after the war. The adjusted estimates were then sub tracted from the highest and lowest post-war employment figures for each occupation presented in preceding sections. (See table 4.) The variations in the range of employment opportunities indicated for different occupational groups of course result both from the differing total figures on post-war employment and from the varying numbers of workers estimated as employed in these occupations at present. In the case of navigators and flight radio operators, for example, employment especially in contract activities is now so large relative to probable post-war needs that there would be little gain, or an actual decrease in jobs, should the more conservative forecasts for international operations prove to be correct. Because of the incom pleteness of the available data on current employment, these figures tend to give an optimistic picture of the impending expansion in air line jobs.20 Moreover, many of the new employment opportunities in international operations, particularly for mechanics and other ground personnel, will go of necessity to foreign workers. On the other hand, the figures make no allowance for job openings created by deaths, retirements, quits, and dismissals. Some addi tional employment opportunities with the air lines will arise from such 20 See table 4, note 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OCCUPATIONAL OUTLOOK 755 T a b l e 4 . —Estimates of Air-Line Employment for Fifth Year After the War, Assuming Realization of Curtiss-Wright or Warner Traffic Forecasts Post-war employment Occupational group Domestic operations International operations All air-line operations Prospective increase above present employment in all air-line operations 1 M ini mum Maxi mum M ini mum M axi mum Minimum Maximum 58, 500 9,500 19, 700 38,350 78, 200 13, 250 53,100 12,000 1,300 300 250 400 700 5,000 500 2,800 900 700 1.400 1.400 6,300 700 250 400 4.000 14,800 1,800 700 1,400 1.700 10, 200 1,200 10,000 1,000 8,000 20,000 2.000 40,000 4,000 2.700 6,400 300 500 900 6, 700 26, 400 2,300 2,000 5,500 300 1,800 1,400 3, 500 Minimum Maxi mum Total, selected occupations__________ 28,850 Pilots_____________ ______ __________ Flight engineers____________________ Navigators___________________■_____ Plight radio operators.-..................... Stewards and stewardesses__________ Mechanics and assistants................... . Stock and stores em ployees.................. Dispatchers, meteorologists, and assistants__________________________ Communications operators, ground__ 5,000 400 900 3,300 15,000 1,500 6,600 30,000 3,000 650 3,000 1,500 4, 500 250 800 500 1,000 9003,800 100 50 ( 2) 1 In the case of pilots, the current employment estimate subtracted from the post-war employment figures was the previously cited estimate of 4,600 for the end of 1944, which is probably a little too low. For other occupations the figures deducted understate present employment somewhat more greatly, since only a partial adjustment could be made for military-contract activities and no adjustment was possible for employment trends since 1943 nor for certain other discrepancies. To the extent of this understatement, the prospective increase in employment above present employment levels is of course exaggerated. 2 A net decrease of 100 is indicated. causes, though the number of vacancies will tend to be smaller relative to total employment than in many other industries. Turnover is now said to be high—at least among ground personnel—but is prob ably not greater than in many factories, and the impending oversupply of trained personnel will tend to discourage quits after the return to peacetime conditions. Moreover, since most air-line employees are young, like the industry itself, death and superannuation rates are low and are expected to remain so during the immediate post-war period. Whether substantial numbers of veterans and other skilled workers now outside the industry will be able to find jobs there after the war, in the occupations for which they have been trained, clearly depends upon the fulfillment of the more optimistic predictions as to future air-line traffic. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Child Labor T rend of C hild Labor, 1 9 4 0 -4 4 B y E lla Arvil l a M e r rit t and F loy H e n d r ic k s , U. S. Children’s Bureau Summary THE war years from 1940 to 1944 have radically changed the picture of child labor and youth employment in the United States. In the two decades preceding 1940, the employment of boys and girls had been steadily decreasing. The number of working minors 14 through 17 years of age, as counted by the Census, fell from nearly 2%millions in 1920 to about 1 million in 1940.1 During the 4 years since 1940, urgent demands for workers of all ages, especially in war production centers, the opening up of new job opportunities for children and young persons, high wartime wages, patriotic pressures, and social restless ness have pushed the numbers of employed boys and girls of this age group up to unprecedented levels. This upward swing in the number of teen-age workers has been clearly reflected in the three major sources of data on national trends in child labor and youth employ ment—the reports sent to the Children’s Bureau on age or employment certificates2required for children going to work, the records of young persons under 18 applying for social security account numbers, and United States Census figures. Employment and age certificate reports, which show the trend in child labor from year to year rather than a cross section of the actual number of young persons employed at any given moment, indicate that more than seven times as many boys and girls aged 14 through 17 years entered the labor market in 1943 as in 1940 and went into work generally subject to Federal or State child-labor regulation. In States and cities reporting for each of these years, the number of minors 14 through 17 years of age who obtained certificates for full time or part-time work increased from roughly 175,000 in 1940 to more than 1,320,000 in 1943. Preliminary data for 1944 indicate that in general the high level of 1943 is being maintained. The record of applicants under 18 years of age for social security account numbers tells a similar story. From 1940 through 1943 the number of minors under 18 years of age applying for account numbers more than trebled, climbing from roughly 950,000 to 2,900,000. In 1944 there was a drop from 1943 to slightly over 2 millions; but 1 T he 1940 Census showed 872,314 minors 14 through 17 years of age employed in the last week of March, 1940—209,347 aged 14 and 15, and 662,967, aged 16 or 17. In addition it showed 132,214 minors of these ages classed as “experienced unemployed persons seeking work” . The total of these two groups—1,004,528—is roughly comparable to the total number of young persons 14 through 17 years of age (2,395,443) classed as “gainfully employed” in 1920. 2 Because both employment and age certificates are “employment papers,” differing only in certain requirements for issuance or return of the certificate to the issuing office, the term “employment” certificates will be used generally throughout this report to refer to both. 756 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHILD LABOR 757 despite this decrease the 1944 figure was more than twice as high as that for 1940.3 Census figures for 1940 and estimates based on Census sample surveys since that date show an increase from about r,000,000 in 1940 to nearly 3,000,000 in April 1944 in the number of young workers 14 through 17 years of age. During the summer months of 1943 and 1944 the number approached 5,000,000. This wartime increase in child labor has meant a loss of education for children and an increase in illegal employment. According to the U. S. Office of Education figures, high-school enrollment had reached a total of 7,244,000 in the school year 1940-41 (an increase of nearly 5.000. 000 since the school year 1919-20) whereas in 1943-44, three years later, the number of children enrolled had dropped by nearly 1.000. 0Q0.4 Large increases in the extent of illegal employment have been noted by both State and Federal labor inspectors. For instance, in one State (North Carolina) there were 14 times as many child-labor law violations found by State inspectors in 1943 as in 1940 and 22 times as many in the first half of 1944 as in the first half of 1940; in another (Illinois), more than 500 establishments were found to be in violation in the first 6 months of 1944 as compared with fewer than 40 in the corresponding period of 1941; in a third (New York), there was a rise of nearly 400 percent between 1940 and 1943 in the number of boys and girls under 18 found to be illegally employed. The figures for violations of the child-labor provisions of the Federal Fair Labor Standards Act, which are administered by the Children’s Bureau, tell the same story as the record of violations of State laws. Nearly five times as many children (8,436) were found by inspectors to be illegally employed in the year ended June 30, 1944, as in the year ended June 30, 1941 (1,761), and these violations occurred in more than five times as many establishments (2,938) in the latter as in the former year (579). These facts emphasize the need to reestablish and improve the legislative standards that help to give to the country’s youth oppor tunity for education and for normal physical and social development, and to strengthen the machinery for their enforcement. Extent of Child Labor and Youth Employment Y O U N G W O R K E R S O B T A IN IN G C E R T IFIC A T E S More than 2 million boys and girls 14 through 17 years of age obtained employment certificates in 1943 for full-time or part-time jobs, according to reports on certificate issuance received by the Children’s Bureau from nearly all the States. Of these young workers nearly a fourth were 14 or 15 years of age. The largest proportion of the boys and girls of 14 and 15 years—91 percent—entered vacation employment or employment outside school hours (table 1). Among 3 These numbers of applicants for social security account numbers give only a rough indication of the rate at which young persons have joined the labor force; they do not in all cases represent actual employment, since persons may obtain account numbers without having a job or even a prospect of one. On the other hand, they do not reflect employment in agriculture, domestic service or other occupations not covered by the Social Security Act. 4 This reduction is mainly due not to entrance into the armed forces nor to a decrease in population of school age—though these reasons account for some of the loss—but to the great increase in the number who left school for work, many cutting short their courses in mid-term. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 758 MONTHLY LABOR REVIEW— APRIL 1945 the 1% millions who were 16 and 17 years of age, however, a large majority obtained regular certificates allowing full-time jobs.5 For 1942 the reports received by the Bureau show roughly a million young persons 14 through 17 years of age as obtaining certificates for full-time or part-time work during the year. The areas for the 2 years are not strictly comparable and cannot be made the basis of numerical comparison, but it is significant that whereas in 1942 only 17 percent of the total number of young workers were 14 and 15 years of age, in 1943 there were 23 percent in this younger age group. T a b l e 1. —Minors Aged 14 Through 17 Years, Receiving Regular and Vacation and Outside-School-Hours Certificates, 1942 and 1943 1 [Areas reporting in 1942 and in 1943 not comparable] Year and kind of certificate Total Minors 14 and 15 years of age Minors 16 and 17 years of age ____________________ _____ _ _ _____ - _____________________ Regular 2 Vacation and outside school hours 2------- ---------- - 2,040,206 1,186, 987 853,219 466, 798 42, 518 424,280 1, 573,408 1,144,469 428, 939 ________________________________________ Rp,gnlar 2 a ________________________ Vacation and outside school hours 2---------------------- 1, 053, 041 620, 241 432, 800 178, 951 19, 830 159,121 874,090 600,411 273, 679 1943 1942 1 Numbers estimated for a few areas from which reports were not received or which were incomplete. 2 B y the term “regular certificate” is meant a certificate that permits a minor to leave school and go to work. A “vacation or outside-school-hours certificate” is one that permits a minor to work only during vacation or outside school hours during the school term. In a few States, for children 14 and 15, and in a larger number of States, for minors 16 and 17, a regular certificate is issued whether the minor leaves school for employment or continues to attend school. For this reason, figures for minors receiving regular certifi cates, especially in the 16- and 17-year-old group, include some minors who do not leave school for work. Preliminary and incomplete figures for 1944 give a total of 1,222,914 young workers 14 through 17 years of age entering full- or part-time employment, as compared with 1,238,078 in comparable areas in 1943, indicating that approximately as large a number of boys and girls of these ages went to work in 1944 as in 1943. These figures show not the total number actually at work at any given time, but only the minimum number of young persons of these ages in the country entering employment during the given year in work under the regulation of Federal and State child-labor laws. Certificate laws in many States still fall far short of covering the entire field of youth employment, even though much has been accom plished since the first such law was passed in Massachusetts in 1878. At the present time, in most States, certificates are not usually re quired, even for children as young as 14 and 15, for work in domestic service and agriculture, in which large numbers of children are em ployed, and in some States most nonfactory work outside school hours and during vacation is outside the scope of the certificate law. For young workers 16 and 17 years of age, about half of the States do not legally require certificates for any employment, although adminis tratively they are issued on request and are accepted as proof of age under the Fair Labor Standards Act. Furthermore, these reports obviously do not include the many thousands of young workers who, even though they may be old enough to be employed legally, go to s B y the term “regular certificate” is meant a certificate that permits a minor to leave school and go to work. A “vacation or outside-school-hours certificate” is one that permits a minor to work only during vacation or outside school hours during the school term. In a few States, for children 14 and 15, and in a larger number of States, for minors 16 and 17, a regular certificate is issued whether the minor leaves school for employment or continues to attend school. For this reason, figures for minors receiving regular certificates, especially in the 16- and 17-year old group, include some minors who do not leave school for work. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHILD LABOR 759 work without getting a certificate. Also, they do not include boys and girls who are below the legal age for employment and who are working in violation of State or Federal child labor laws—a situation which has been found increasingly during the war period. Never theless these certificate figures, corroborated as they are by other sources of information (see page 756), give a representative picture of the minimum extent of the flow of boys and girls 14 through 17 years of age into the labor market in the United States.6 C E N S U S C O U N TS O F Y O U N G W O R K E R S Federal Census figures provide two benchmarks for gauging the total numbers of young workers in the nation before and during the war. One was established by the decennial census taken in 1940.7 The second was fixed in April 1944, when, at the request of the Chil dren’s Bureau, the U. S. Office of Education, and other interested Federal agencies, the Census Bureau included supplementary ques tions on school attendance of boys and girls 14 through 19 years of age, in its sample survey for that month.* These Census data show an increase, in round figures, in the num ber of boys and girls 14 through 17 years of age in the labor force 9 from 1,000,000 in 1940 to 2,900,000 in 1944, a rise of nearly 200 per cent. This peak 1944 figure of youth employment amounted to roughly 30 percent of the estimated 9,200,000 young people in that age group in 1944, as compared with about 10 percent of that age group who were at work in April 1940. Like the employment-certificate reports, the Census figures show a much higher rate of increase in the number of 14- and 15-yeai-old boys and girls at work than in the number of 16- and 17-year-old workers. In the younger group the increase during the 4-year period in the numbers at work was nearly 300 percent, as compared with about 150 percent in the older group (table 2). The upward swing was marked among 14- and 15-year-old girls, of whom nearly 5 times as many were at work in 1944 as in 1940. However, the increase was proportionately greater among girls of all ages than among boys— 243 percent and 170 percent, respectively. In July of both 1943 and 1944, at the summer peak of seasonal employment, when youth employment was also at its peak, 5 million, or over half of the more than 9 million boys and girls between 14 and 18 years of age in the population, were at work. « Some duplications occur, but these are far outweighed by the large number going to work without cer tificates. (Duplications may occur because the reports received combine first and reissued vacation certificates, and because, at the end of the school term, a child may exchange a vacation certificate for a regular certificate permitting work during school hours.) 7 The information on employment status obtained in the 1940 Census was as of the last week in March 1940. 8 These sample surveys of labor supply and employment have been made monthly since April 1940. The population sample on which the Census estimates have been based consists of 30,000 scientifically se lected households in 68 sample areas, each area containing one or more counties (123 counties in all). These sample areas are in 42 States and the District of Columbia. See Teen Age Youth in the Wartime Labor Force, in M onthly Labor Review, January 1945 (p. 6), and Young Workers in the Wartime Labor Market, in The Child, November 1944 (p. 72). 9 As a basis for comparison of the young persons in the labor force in 1940 and 1944, it seemed desirable to use the total of two groups—(1) those at work during the census week, including those with jobs but not actually working during the census week, and (2) experienced workers seeking work. In 1940 the number of young persons 14 through 17 years of age actually employed, including those having jobs but not in fact working during the census week, was 872,314. In addition there were 132,214 classed as experienced unem ployed persons seeking work. In 1944 the labor force of this age group consisted of 2,900,000 young persons, of whom 2,800,000 were actually at work or had jobs during the census week. Only 100,000 (practically all 16 or 17 years of age) were experienced workers seeking work. 63 6 3 7 2 — 45 ---------- 5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 760 MONTHLY LABOR REVIEW-— APRIL 1945 T a b l e 2 . — Minors Aged 14 Through 17 Years, in Labor Force in the United States, 1940 and 1944 1 Age and sex _____ __________ ___ 14 through 17 years of ago ■Roys _____ _____________________ Girls_____________________ ___________ _____ ____ 14 and 1b years of ago Boys Girls _____ _________________ ___ __ ____ -- -----— __________________________ 16 and 17 years of ago _______________ ______ Boys _______________ ___________ Girls ______ _ _____________________ 1940 2 1944 3 Percent of in crease in 1944 over 19*0 1,004, 528 733, 506 271,022 2,900,000 1,950,000 950,000 189.7 169.9 243.1 225,116 179, 594 45, 522 850,000 650, 000 2C0,000 295.4 278.6 361.3 779,412 553,912 225, 500 2,050,000 1,300,000 750,000 159.2 134.7 219.3 i Those at work during the census week, those with jobs but not actually working during the census weeK, ana experienceu worK.ers sccKiug wui»-. T , „ 2 Compiled from Sixteenth Census of the United States: 1940, Population, Third Series, The Labor Force. 3 Compiled from data collected in the April 1944 monthly sample survey made by the Census Bureau. Neither the July nor the April estimates include working children under 14. Official reports from both State and Federal labor officials and from other sources show, however, that many children under 14 are employed. Y O U N G W O R K E R S IN A B O V E -N O R M A L LA BO R FO RCE Another illustration of the fact that children and young persons 14 through 17 years of age have made up a very large proportion of new workers in the labor force is found in estimates made by the U. S. Bureau of Labor Statistics of the excess of labor force over normal, as of April 1944. Of the 6,700,000 persons in the labor force and mili tary service over what would have been expected on the basis of proportions found in 1940, 1,730,000, or over a fourth, were boys and girls aged 14 through 17 years. Trends in Youth Employment The reports of employment certificates obtained by the Children’s Bureau may serve roughly as a barometer of the rise or fall from year to year in the numbers of young workers entering the labor market. When the Bureau began in 1920 to collect and analyze information on the numbers of “employment certificates”, “age or schooling cer tificates,” or “work permits,” as they have been variously called, reports were available only from certain cities. The area covered has steadily widened and in recent years information has been obtained from all 48 States, the District of Columbia, Hawaii, and Puerto Rico, although in some cases it is incomplete, or is not available for every year. The first Children’s Bureau report on numbers of employment certificates, covering the period from 1913 to 1920, reveals parallels to the present wartime period and the immediate past. Then also, child labor declined during pre-war years of low employment and rose as wartime needs for workers drew increasing numbers of children into the labor market. According to the incomplete reports then collected, a marked rise in employment of children 14 and 15 years of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHILD LABOR 761 age began in the fall of 1915 and reached a peak in 1918,10 when 125,974 children of 14 and 15 obtained regular certificates for work in 23 cities in 11 States and the District of Columbia.1’ No data for that period are available for young workers 16 and 17 years of age. In general, child labor during the nineteen-twenties rose or fell along with general business conditions, though there was a total decrease particularly for the 14- and 15-year-old group as a result of improve ment of child-labor and school-attendance standards. In the years between 1929 and 1943 new and more decisive factors entered into the situation. The period began with the onset of one of the worst depressions in this country’s history. It ended with a new peak of employment and production induced by the war. The 15-year record of the numbers of employment certificates issued to young workers 14 through 17 years of age shows that the trend of youth employment followed the trend of general employment with two important excep tions when, twice in the decade and a half, Nation-wide legislation was enacted drastically affecting the employment of children under 16 years of age. In 1933 and 1934 the NRA codes, practically all of which included a 16-year minimum age requirement, reduced very materially the employment of young workers 14 and 15 years of age during the 2 years they were in effect. The removal of the code restrictions in 1935 was followed by an upward swing for employment of this younger group, which continued until it was checked by the slight economic recession beginning in 1937 and continuing into the first part of 1938. In October 1938 the Fair Labor Standards Act established a basic 16-year minimum age in industries producing goods for shipment in interstate commerce, with the result that in spite of rising employment the number of 14- and 15-year old children going to work continued to drop. The permanent decrease which this legal standard might have been expected to bring about, however, was almost immediately reversed by the heavy wartime demands for workers, although the law has been an effective barrier against whole sale employment of children under 16 in manufacturing industries. (See page 773.) Table 3 and the accompanying chart, comparing for the years 1939 through 1943 the increase in employment of minors 14 through 17 years of age, as shown by certificates issued, with the increase in esti mated nonagricultural employment in the United States 12 show how much sharper the rise has been in the employment of young persons 14 through 17 years of age during the war than in the employment of persons of all ages. Using the year 1939 as a base, the index for total estimated nonagricultural employment rose from 100 to 131, whereas for minors 16 and 17 years of age obtaining employment cer tificates the index rose from 100 to 592 and that for children 14 and 15 years of age soared from 100 to 1,184. »» These figures are for the calendar year 1918 in case of 13 cities (Buffalo, Cincinnati. Jersey City, M ilwau kee, Newark, New York City, Paterson, Philadelphia, Pittsburgh, Providence, Rochester, Toledo, and Yonkers), and for the fiscal year 1918— ending June 30, July 31, or August 31—in case of 10cities (Akron, Chicago, Dayton, Detroit, Los Angeles, New Britain, Reading, Springfield, Mass., Washington, D . C., and Youngstown). i' Reports on employment certificates issued to young workers have been published periodically in the M onthly Labor Review since April 1921. 12 Estimated nonagricultural employment in the United States is used as a basis of comparison with employment certificate statistics because the latter are on the whole representative of nonagricultural employment only. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 762 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW— APRIL 194 5 3 - 10- 4 5 CHILD LABOR 763 T a b l e 3 . —Minors Aged 14 Through 17 for W horn First Regular Employment Certificates W ere Issued, and Persons of A ll Ages in Nonagricultural Employment, 1939—43 Children 14 and 15 years of age for whom employment certifi cates were issued 1 Year 1939_______________________ 1940_______________________ 1941_______________________ 1942_______________________ 1943_______________________ Number 2 Indexes (1939=100) 556 738 1,474 3,432 6,580 100.0 132.7 265.1 617.3 1,183.5 Minors 16 and 17 years of age for whom em p l o y m e n t certifi cates were issued 3 Number Indexes (1939=100) 52, 745 60, 894 131,381 214, 832 312,222 100.0 115.4 249.1 407.3 591.9 Estimated nonagricul tural employment in United States (all ages)4 Indexes (1939=100) Number 30, 353,000 31,784,000 35,668, 000 38,447, 000 39, 728,000 100.0 104.7 117.5 126.7 130.9 1 Figures based upon reports from 17 selected cities with 100,000 or more population (1940 Census) in which minimum age standards were not changed during the period 1939-43. Cities included are Atlanta, Baltimore, Birmingham, Detroit, Fort Wayne, Grand Rapids, Indianapolis, Kansas City (Mo.), Knoxville Nashville, Oklahoma City, Portland (Oreg.), South Bend, St. Louis, Tulsa, Washington (D. C.), and W ilm ington. 2 Figures for Detroit and Grand Rapids are for 15-year-old children; law does not permit issuance of cer tificates for 14-year-old children. 3 Figures based upon reports from 44 cities with 100,000 or more population (1940 Census). Cities included are Albany, ‘Atlanta, ‘Baltimore, ‘Birmingham, Boston, Buffalo, Charlotte, ‘Denver, ‘ Detroit, Erie, Fall River, ‘ Fort Wayne, Grand Rapids, Indianapolis, ‘Kansas City (M o.), Knoxville, ‘Louisville, Lowell, Nashville, New Bedford, New York City, Oklahoma City, ‘ Omaha, Philadelphia, Pittsburgh, Portland (Oreg.), Providence, Reading, Richmond, Rochester (N. Y.), Salt Lake City, Scranton, Somerville, ‘ South Bend, Springfield, St. Louis, ‘ Syracuse, Tulsa, ‘Utica, ‘Washington (D. C.), ‘Wichita, Wilmington, ‘ Worcester, and ‘Yonkers. For the cities with asterisk, “regular” certificates include certificates issued for vacation and outside-school-hours employment. 4 Source: U. S. Bureau of Labor Statistics, U . S. Department of Labor. The estimates presented here exclude officials, proprietors, and self-employed persons. Y O U T H E M P L O Y M E N T , 1 9 4 0 -4 3 The number of children 14 and 15 years of age obtaining certificates for full-time or part-time work in the 4-year period 1940-43, for the comparable areas from which yearly reports were received, rose from T a b l e 4 . —Minors Aged 14 Through 17 Years, Receiving Employment and Age Certifi cates for Full-Time or Part-Time Work, 1940-43 Age of minor and type of certificate 1940 1941 14 through 17 years of age __ ____________ 174,739 R egular1. . . . . . . . . . . . . . . . . . . . . 108, 694 Vacation and outside school hours 1___ 66, 045 385,465 252,320 133,145 14 and 15 years of age____________________ Regular____________________________ Vacation and outside school hours1___ 35,309 5, 205 30,104 60,955 8,306 52, 649 16 and 17 years of age_________________ . . Regular____________________________ Vacation and outside school hours >. 139,430 103,490 35, 940 324, 510 244,014 80,496 1942 1943 Percent of increase in 1943 over 1940 1941 706, 882 1,322,331 452,967 810,134 253,915 512,197 656.7 645.3 675.5 243.0 221.1 284.7 87.1 78.9 101.7 304, 458 34,311 270,147 762.3 559.2 797.4 399.5 313.1 413.1 155. 8 112.0 162.7 587,871 1,017,873 775,823 436,783 151,088 242,050 630.0 649.7 573.5 213.7 217.9 200.7 73.1 77.6 60.2 119,011 16,184 102,827 1942 1 A “regular certificate” is a certificate permitting a minor to leave school and go to work. A “vacation and outside-school-hours certificate” is one permitting a minor to work only during vacation and outside school hours during the school term. In a few States for children 14 and 15, and in a larger number of States for minors 16 and 17, a regular certificate is issued whether the minor leaves school for employment or con tinues to attend school. For this reason, figures for minors receiving regular certificates, particularly for the 16- and 17-year-old group, include some minors who do not leave school for work. 35,309 in 1940 to 304,458 in 1943, and the corresponding number of 16- and 17-year old entrants into the labor market rose from 139,430 to 1,017,873.13 (See table 4.) This was an increase of more than 13 These numbers are smaller than those previously quoted, because not all States and cities reported for each year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 764 MONTHLY LABOR REVIEW— APRIL 1945 700 percent for 14- and 15-year old workers and more than 600 percent for those 16 and 17 years of age. Children 14 and 15 years of age obtaining vacation and outside-school-hours certificates showed the largest proportionate increase of any one group—nearly 800 percent. The upward trend in employment of boys and girls of these ages is shown also in tables 5 and 6, which give for the individual States and cities reporting the number of first regular employment certifi cates issued for children 14 and 15 years of age and for those 16 and 17 years of age, respectively. T a b l e 5. —Number of First Regular Employment Certificates Issued for Children Aged 14 and 15 Years, 1940-43 State or city Alabama ____ _______________________ ____ Birmingham ...... ..................... .... ............ . Arizona ____________ -__ _______ Arkansas _ ________ _____ __________ California _____ -- ______ ___ _____ Los Angeles ____ _ _____________ ______ San Diego __ _____________________ San Francisco _ _ - - ________ _____ Colorado ________ - - _____________ Denver _ _ __ _ ______________ ________ ________ _____________________ Connecticut Delaware ______ - _______ -- _____ W ilmington _ _______ __________ ______ District of Columbia __ -- __ ___ _____ Florida3 _ _ _ _ _ _ __ ___ __ Georgia ______ -- -- _______ -Atlanta - - ___________ __ ____ H a w a ii3 - ______ _______ ____ __ Illinois ______ - -- ___ ________ Indiana .............. _ ............. Fort Wayne . _ _ _ ___ ___ Indianapolis . _ _ _ __ ______ ____ South B end-. ________ ____ _ _ . . ___ . . Iowa _ __ . . . ____ - Kansas ______. . . . Wichita ............... _____ __ ........................ Kentucky _____ . ____- ____ Louisville Louisiana3. . . . . . . . . _______ . New Orleans . . . _ . __ . M a in e6 .... ................................ Maryland ______ ____ ______________ Baltimore____ _______ .. . . __ Massachusetts . __ . . . . . . . __ Boston ______ . ........ ............ ...... Brockton .. _____ .. ___ Cambridge ____ . . . ... Fall River ............. ............ ........ Holyoke . _____ ______________ ___ . Lawrence___ ____. . ______ . . ___________ _ Low ell.. . . . ______ ______ Lynn ___________________ Malden . . .. _ . _______ .. _ Medford . _____ ____ _. _____ ._ . . . . New Bedford . . . __________________________ Newton...... ......................... ....... ........................ . .. Q uincy.. . . _____ . . . . ________ ___ ___ Somerville . ___ ______ . . _____ Springfield .. ________ . . . Worcester _ __. ________ _ M ichigan6. __ ____ _ _________ ____ ____ _ ___ Detroit__ ____ . ............................ . _ Grand Rapids . ________ _______________ Minnesota . _____________ ... M isso u r i___ . ______ ___ Kansas C ity. ______________ ________ St. Louis.. . _______________ ________ M ontana____ ___ _ . __ _ . . _______ Nebraska. . . . ___ ___________________ Omaha.. _________________________________ ____ See fo o tn o te s a t end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1940 124 57 3 419 128 11 1 3 51 3 41 236 36 35 28 37 0 0 i 128 32 28 0 14 0 3 1,639 8 0 3 157 3 124 3 193 1 371 339 581 36 7 11 7 5 29 12 8 8 3 87 2 9 7 25 15 514 132 19 85 51 4 32 0 3 117 3 81 1941 242 41 i8 19 573 281 6 2 3 164 3 152 278 45 45 69 3 110 3 27 2 12 235 145 23 1 7 0 3 1, 555 17 1 3 359 3 271 6 190 3 161 8 914 873 1,162 151 22 8 18 73 26 34 12 1 139 4 12 22 76 44 1, 266 211 28 77 62 0 38 0 3 270 3 205 1942 347 113 20 104 i 1,166 i 539 76 i7 3 508 3416 305 48 45 262 3 674 3 230 3 120 4 694 620 8 0 4 0 3 1, 771 164 46 3 715 3 466 3 1, 524 3 1,215 70 1,813 1,676 1, 752 330 14 i 10 7 9 109 42 65 30 9 101 4 33 46 258 54 1,467 362 18 398 483 89 295 0 3 952 2 575 1943 955 512 116 208 3 1,675 3 1,173 377 105 80 433 3 3, 293 3 478 3 172 295 1852 0 0 0 0 3 3, 245 685 253 3 1, 760 3 1,043 0 0 141 2,880 2,648 3,090 650 22 9 1 191 80 149 59 18 136 28 52 128 365 108 3,975 911 98 603 1,119 268 478 0 3 2, 226 3 1,139 CHILD LABOR 765 T a b l e 5. —Number of First Regular Employment Certificates Issued for Children Aged 14 and 15 Years, 1940—43—Continued State or city N evada_____ ___________ _ New Hampshire. ______ ______________ M anchester.. ______ . N ew Jersey3. _____________ . . Newark 3_____________ N ew Mexico________ ______ New York____ ____ ___ Albany. ________________ Binghamton. ______ Buffalo____________________ ___ . M ount Vernon_________ _______ _ N ew R ochelle.. ____ New York. . . . . . Niagara F alls.. ._ _____ R ochester..:_________ Schenectady- ___. . . . . __________ . Syracuse. . _____________ Troy________________ Utica ____________ Yonkers____ North Carolina. _____ Charlotte. ______ _______ North Dakota__ .. _ Ohio_______________ ._ Cincinnati_______ ________ Cleveland ____________________ Oklahoma__ ___ Oklahoma C it y ... „ . Tulsa____ __________ Oregon.. ____________ Portland_____________ Pennsylvania: Altoona ________ . Bethlehem . . . C hester.. ___ _____ . Erie____________________________ ____ Harrisburg_____________ Johnstown___________ Lancaster__________ McKeesport ________ . Philadelphia___________ Pittsburgh___________ Reading_____________ . Scranton______________ .. Wilkes-Barre__________ York______________ Puerto Rico 3 ___________ Rhode Island. ______ Providence_________ _______ ______ South Dakota______________ Tennessee_________ __ __ _ _ Knoxville______________ ________ . . . . . .. N ashville-. ________ __________ _ . _. . U tah_______ . . . . . Salt Lake C ity___ V erm ont.. ___________ ... Virginia. __________ __ _ _ _. Richmond. . . . . . . . Washington.. ________________ . ____ __ . . . Seattle_____________________ .. . . . ___ West Virginia_______________ _ Wisconsin_________________ Milwaukee ___ . _ . Wyoming___ ____ . 1941 1940 118 35 1,360 147 36 33 0 0 0 0 1 12 0 0 0 0 0 0 0 0 0 1 2 1 i 16 1 36 4 0 0 5 27 2 0 15 16 8 322 49 0 36 30 79 1942 i 155 i 32 3 0 22 88 2 0 0 0 0 37 2 0 0 0 0 0 0 0 0 1 94 8 3 56 5 44 22 12 0 0 0 67 37 4 44 0 0 2 561 2 90 0 4 30 6 0 22 28 5 327 92 0 23 49 77 153 0 0 0 151 82 6 30 1 0 2 913 3 179 14 1 0 0 51 0 0 0 1943 551 1 13 877 3 0 241 94 0 0 0 0 0 50 0 0 0 0 0 0 0 0 0 2 109 4 3 120 11 70 211 176 0 0 2 77 134 1 0 0 1 0 38 0 0 0 0 0 0 0 0 0 11 1 12 38 5 1 27 31 7 510 71 0 26 64 129 84 0 0 0 328 172 19 214 19 2 3 1, 967 3 444 7 736 7 215 39 30 0 27 46 32 4 53 65 24 601 123 0 30 51 136 o 0 0 0 848 238 48 212 41 38 2 3,147 3 767 7 3, 214 7 916 39 30 0 0 267 42 154 613 498 1 Data not complete for entire year. 5 Includes certificates issued for work outside school hours or during vacation. * 16-year minimum-age law went into effect in Hawaii in January 1940, in New Jersey in September 1940, in Florida in July 1941, in Louisiana in July 1942, and in Puerto Rico in August 1942. 4 Following Pearl Harbor, schools were closed until February 1942, and for some months thereafter school attendance in case of employed children was not enforced. Therefore, many children under 16 who would otherwise have stayed in school went to work. 5 Includes certificates issued for work outside school hours or during vacation. Data not complete for entire year. 9 In Maine and Michigan 15 years is the minimum age for issuance of regular certificates. 7 Includes reissued certificates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 766 MONTHLY LABOR REVIEW— APRIL 194 5 T a b l e 6. —Number of First Regular Employment Certificates Issued for Minors Aged 16 and 17 Years, 1940-43 1 Percent of change in 1943 as compared with— Number of certificates issued State and city 1940 Alabama 2___ _____________ Birmingham 2____________ Arizona2 ________ Arkansas___ ___ . ------California Los Angolas San Diego San Francisco. Colorado 2__________ _______ D enver2 __ . . . ___ Connecticut___ ________ . . D elaw are2 _ ______ W ilm ington2, ._ _____ District of Columbia 2________ Florida 2_______ ____ . -----Georgia 2_____ _______ ___ — Atlanta 2____ . ________ H aw a ii2 . . __ ___________ Idaho 2____ _________ _____ Illinois 2_______ . . -Indiana 2________ __________ Fort Wayne 2__ _________ Indianapolis 2____________ South Bend 2 __ . . . . Iowa 2_____________ - __ Kansas 2_____ ________ . . . . . . Wichita 2________________ Kentucky 2___ ______________ Louisville 2______________ Louisiana 2. N ew Orleans 2___________ Maine 2_________________ ._. Maryland 2__________________ Baltimore 2--------- --------Massachusetts Boston___________ _______ Brockton______ ______ Cambridge... _ .. Fall River_____________ _ H olyoke_________________ Lawrence . . . ...... L o w ell... ________ ____ L ynn_______________ ____ M alden2____ . . . _ _ . Medford_____ ______ . . . N ew Bedford____________ N ew ton_____ _______ _ Quincy 2________________ Somerville_______________ Springfield_______________ Worcester 2___ ____ Michigan D e tr o it8. . . ____ . . Grand Rapids________ . . ------ . . . -------M innesota2. . M ississippi2______________ . . M issouri2__________ _ _____ Kansas City 2____________ St. Louis 2_________ _____ M ontana_______ _____ _____ Nebraska 2__________________ Omaha 2___ ____ _______ New Hampshire 2_ . . . . . . N ew Jersey 5. _ _ ____. . ______ Newark *___ __ __ N ew Mexico 2__. . . . . _____ N ew Y ork. _______ . . . . . . A lb a n y .. _______________ Binghamton_____________ Buffalo______________ . . . M ount Vernon___________ N ew R ochelle.. . ______ N ew York _____ _____ Niagara Falls____ _ Rochester________________ 1942 439 878 4, 516 3,527 2, 636 332 22 193 * 1, 153 t 4, 054 681 < 1, 644 590 529 21, 634 1,360 644 6,317 8 1, 284 3,182 337 « 5, 635 114 9,286 11,911 975 1,922 469 499 158 79 1,240 954 4 1, 502 '861 3, 458 12, 585 10, 767 5,058 622 67 573 4 19,989 4 5,637 1,401 4 2, 564 837 527 30, 220 2, 753 1, 519 11, 753 3, 325 7, 834 663 6,487 752 16, 568 26, 403 1,829 4, 354 1, 226 993 800 264 2,009 1,387 8 4, 734 s 3, 316 5,944 20, 239 17, 059 3. 024 135 572 1,178 228 313 517 226 329 139 718 113 434 387 360 1,491 5, 328 2.071 656 344 264 651 70 304 0 11 2 1,180 6, 473 960 6 36, 837 370 119 1,970 128 59 24, 884 110 865 7,069 402 1,325 2,416 709 891 1,724 501 948 502 1, 541 291 1,063 894 1, 233 3, 502 19, 692 7, 505 1.348 1,391 392 3, 366 204 1,969 37 29 12 4, 048 20, 116 3 597 8 68, 782 633 366 3, 772 194 111 40, 077 402 2,407 9,964 570 4 2,127 2, 273 792 1,145 2, 837 739 1, 472 694 1,850 499 1,513 1,926 1,366 4, 575 44.045 23, 526 1,594 2, 711 659 7, 734 938 4,499 235 1,190 1,107 5,591 34,173 4 3, 303 30 106, 374 975 619 5, 594 334 168 55, 299 1, 477 5,180 1,625 178 89 5, 853 2, 241 312 664 233 214 7,202 715 237 2, 371 222 1,989 125 * 3,949 22 3,031 4, 615 281 1, 050 76 363 33 17 533 414 See fo o tn o te s a t end o f table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1941 1943 19, 855 1,849 398 1,142 2, 467 1, 864 34, 203 4,171 2,801 10, 050 11, 359 24, 241 2,290 5, 218 974 4 48, 643 68,129 3, 434 11.401 2, 250 4,681 7, 438 2,682 3,273 1,791 11,745 7, 718 8, 377 23,932 19, 944 10,247 488 1,232 542 1,058 1, 903 786 1, 593 1,219 877 529 1, 264 2, 322 806 3,682 78, 375 32, 751 3, 153 9,421 2, 480 25, 515 6, 584 12,343 1,653 4,298 3, 916 5,601 42,625 76 167, 525 1,113 904 8,620 625 372 84,912 3, 027 8, 377 1942 1940 1941 +1121.8 +938.8 +1658.1 +854.1 +429.9 +465. 5 +653. 2 +456. 9 0 +491. 7 0 0 0 0 +318.1 +252. 4 +58.1 +206. 7 +334. 9 +59.1 +784. 7 +661.8 +579. 5 -7 .4 +754.4 0 +472. 0 +252. 2 +493. 2 +379. 7 +838.1 +4607. 6 +3294. 9 +164. 0 +87.7 +682.0 +796.4 +142. 2 +90.2 +85.2 +292. 5 +197. 3 +494. 0 +99.3 0 0 . 0 0 4-194.7 +253. 7 +13.2 +51.5 +84.4 -1 4 .5 +241. 6 +209.4 + 245.4 -1 9 .6 +29.5 0 +158.0 +87.8 +161.9 +83.5 +371.4 +829. 8 +915.9 + 62.9 +29.1 +148.1 +132. 8 +40.9 +18.2 +16.9 +238.9 +261. 5 (3) + 4 .6 +137. 7 +238. 0 +268.1 +247. 8 + 384. 2 + 777. 0 +22.1 +368.1 +191. 2 +500. 0 + 123.9 +146.9 0 0 +380. 6 +2638. 7 +839. 4 +3819. 4 +9305.7 +3960. 2 0 0 0 +374. 7 +558. 5 0 0 +354. 8 +200. 8 +659.7 +337. 6 +388. 3 +530. 5 +241. 2 +2651.8 +868. 4 +45.0 +21.4 0 -4 9 .0 -2 3 .6 +18.7 +10.4 +56.9 +68.0 +142. 8 -4 3 .1 +81.8 +18.9 +159. 7 -3 4 .6 +5.1 0 0 +133.9 +577.3 +532. 7 +658. 0 +3127. 5 +526.9 0 0 0 +38.4 +111.9 0 0 +143. 6 +75.8 +147.0 +128.5 +222. 2 +235.1 +111.9 +653.0 +248.0 + 2 .8 -1 4 .4 0 -4 5 .8 -3 1 .6 -7 .6 -3 2 .9 + 6 .4 + 8.2 +75. 6 -5 2 .6 + 6 .0 -1 6 .5 +20.6 -4 1 .0 -1 9 .5 +77.9 +39.2 +97.8 +247. 5 +276.3 +229.9 +601.9 +174. 3 +603. 4 +261. 2 +253. 7 + 0 .2 +24.7 0 0 +57.5 +14.2 +46.0 +54.1 +87.1 +121.4 +53.6 +104.9 +61.7 +1183. Í (3) (3) 0 (3) +958.8 +771. 0 +374. 9 +483. 4 +1081.9 +323.9 +5016. 7 +1118.8 +1732. 0 +32.1 (3) (3) +1376. 3 +1122.1 +985.8 +2860. 5 +1189. 5 (3) (3) +514.1 +332.6 CHILD LABOR 767 T a b l e 6 . —Number of First Regular Employment Certificates Issued for Minors Aged 16 arid 17 Years, 1940—43 1—Continued Percent of change in 1943 as compared with— Number of certificates issued State and city 1940 New York—Continued. Schenectady..-_______ . . Syracuse2. --------- . . . . Troy 2_______________ ___ U tica2. . . . . . ___________ Yonkers_______ _____. . . North Carolina______________ Charlotte________________ Ohio___________ ______ _____ Cincinnati. . . . . _______ Cleveland_______________ Oklahoma---- ---------- ---------Oklahoma C ity________ _ Tulsa_______ _ . _____ Oregon____. . . . . . . . . . . . Portland________________ Pennsylvania: Altoona___________ _____ Bethlehem-------------- -------C hester... ------. . . . . . . Erie------------ ------------------Harrisburg-------- -- ------ . Johnstown________ . Lancaster-. . . . . . . . ___ M cK eesport------------- - . . Philadelphia_____________ Pittsburgh---------------------Reading___________ _____ Scranton---------- --------. . . Wilkes-Barre.. . . . ______ York____________________ Puerto Rico 2. . . . . . . . Rhode Island__________ _ . . Providence.. . . . . . ... South Carolina 2-------------------Tennessee.. ------------------Knoxville____ . . . ______ N ashville_____ . . . ______ Texas 2________ . _ ----------Utah______ ----- --------------Salt Lake C ity____ ______ V erm ont 2 ___________________ V irginia 2 ---------------- _ . Richmond 2__. . . . . . . . . Washington ________________ Seattle .... .............. ........ West Virginia 2 ----- . . . ______ Wisconsin ---. Milwaukee___ __________ Wyoming 2---------- ---------- -- 238 746 212 276 268 6,028 213 1, 630 4,222 4 167 62 169 405 241 85 246 285 104 148 79 186 76 6,170 953 414 296 174 147 1, 524 740 1, 768 311 29 120 4 399 434 63 281 1,361 86 141 3, 358 1,057 4 1941 1942 1943 414 2,187 623 470 531 10, 776 376 22,499 3, 086 7, 223 419 126 169 1, 105 602 771 2,439 1,154 1, 281 1, 352 17, 484 597 30, 347 3j 703 8, 355 722 158 247 10,120 7,830 1,400 4, 048 1,167 1,708 1,846 27, 999 842 202 557 422 311 406 121 413 142 14, 074 2,188 968 437 296 344 734 5,467 2, 340 3, 574 562 100 129 1, 362 594 217 746 2, 859 225 7 543 7 125 648 8, 198 2, 750 3 1940 1941 +488.2 +442.6 +450. 5 +518.8 +588. 8 +364. 5 +295.3 +238. 2 +85.1 +87.3 +263. 4 +247. 6 +159. 8 +123.9 (3) 1942 +81.6 +66.0 +1.1 +33.3 +36.5 +60.1 +41.0 (3 ) (3 ) ( 3) (3 ) (3 ) (3 ) (3 ) 2,668 498 1,096 14,940 11,061 +1497. 6 +703. 2 +548. 5 +3588. 9 +4489.6 +536. 8 +295. 2 +548.5 +1252.0 +1737. 4 +269. 5 +215. 2 +343. 7 +47.6 +41.3 305 610 551 859 951 200 644 357 22, 693 5,605 1,596 911 456 501 4 709 8,176 2,585 6,247 2,061 348 349 3, 599 2,199 860 911 5, 753 432 7 12, 078 7 3,646 1 , 959 18,171 1, 113 702 1, 736 2,091 801 563 779 883 26, 455 7,412 1, 319 2,529 725 778 1.022 IO] 115 4,217 10,016 10, 435 906 1,160 15, 640 3,479 1,131 3, 564 9,724 771 7 28, 096 7 10, 248 6Ì798 27, 965 +1209. 4 +185. 4 +509.1 +1910. 6 +441. 2 +612. 7 +318.8 +1061. 8 +328. 8 +677. 8 +218. 6 +754. 4 +316.7 +429.3 +451.0 +26.0 +311.4 +572. 3 +97.3 +365.3 +88.6 +521. 8 +88.0 +238.8 +36.3 +478.7 +144.9 +126. 2 -fm 2 +85.0 +80.2 +180. 2 +1756. 8 +806.0 +799. 2 +1048. 3 +485.7 +421. 2 +377. 7 +240.1 +242. 7 +5074. 2 +8098. 4 +949. 1 +241.1 +264. 9 +15.1 +215.1 +143. 4 -1 5 .8 +181. 5 +21.0 +147. 3 +16.6 +32.2 -1 7 .4 +177. 6 +59.0 +55.3 - f 44 1 +23. 7 +63.1 +60.3 +406. 3 +160. 3 +232.4 +334. 6 +58. 2 +31.5 +291. 2 +69.0 +78.5 +132. 6 +181 1 +247. 0 +53.9 241 458 (3) +563.7 +469.9 +466. 5 +3255. 3 ( 3) +866.7 +3819. 8 +701. 6 +1695. 2 +1168.3 +614.5 +796. 5 (3) (3 ) +4721. 3 +732. 8 (3) (3) (3 ) (3 ) (3 ) (3) +90.0 1 This table includes all States reporting and selected cities with 50,000 or more population (1940 Census) reporting 50 or more certificates in 1940, 1941, 1942, or 1943. 2 Regular certificates include certificates issued for work during vacation and outside school hours. 2 Percent not shown when number of minors was less than 50 in 1940, 1941, or 1942 or when figures were not available or not comparable. 4 Data not complete for entire year. 5 Employment or age certificates were required for minors 16 and 17 years of age during at least part of this year and in the following years. Previously they were required only for minors under 16 years of age and were issued only on request to minors 16 and 17. This change in the law became effective in New Jersey in 1940, in Florida and Hawaii in 1941, in Louisiana and Puerto Rico in 1942, and would naturally result in an increase in the number of certificates issued. f 6 Beginning in December 1941, regular certificates in Detroit include certificates issued for work during vacation and outside school hours. 7 Includes reissued certificates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 768 MONTHLY LABOR REVIEW--- APRIL 1945 Y O U T H E M P L O Y M E N T , 1 9 2 4 -4 4 All certificates.—Tlie all-time highs of war production and general employment that have been reached during the past 2 years have been accompanied by peaks in the number of young workers entering the labor market. Though the total of certificates issued for boys and girls 14 through 17 years of age going to work had already reached a high point in 1942, it climbed even farther during 1943. For 1944, preliminary and incomplete reports indicate for the country as a whole a leveling off in the number of these young workers similar to that which has taken place in general employment, with compara tively little change in the total numbers of employment certificates issued for young persons of this age group. Table 7 compares the situation in the 3 years 1942, 1943, and 1944, in the areas for which 1944 reports have been received, showing that the total of certificates for both full-time and part-time work was nearly twice as large in 1943 as in 1942 (1,238,078 as compared with 655,851) and, on the evidence of these preliminary reports, remained at approximately the 1943 level in 1944 (1,222,914). The rate of increase for 14- and 15- year-old workers, however, was much larger than for those of 16 and 17. Nearly three times as many of the younger group went to work in 1944 as in 1942 (322,391 as compared with 108,660). This group showed a 16-percent increase in 1944 over 1943; the number of 16- and 17-year-olds, on the other hand, showed a slight decrease of 6 percent for this period. T a b l e 7. —Employment Certificates Issued to Minors Aged 14 Through 17 Years, During 1942, 1943, and 1944 1 [Covers all areas for which reports for 1944 have been received by the Children’s Bureau] Age of minor and type of certificate 1942 1943 1944 Percent of change in 1944 as compared with— 1942 Total minors 14 through 17 years........._ - --------Regular and vacation and outside school hoursR e g u l a r . ---- -- ------ _ ___ . . Vacation and outside school hou rs... ---Reissued_______ . ------------- . . . . — 796,314 655,851 414,127 241,724 140,463 1,580,874 1,238,078 742,384 495,694 342,790 14 and 15 y ears.. . ______ _____ ____ . --------Regular and vacation and outside school hours. R eg u la r... . ___. . . . . -- --------- -Vacation and outside school hours___ ____ Reissued---------- -------------------------------- 110,059 108,660 11,653 97,007 1,399 282,237 278,118 25,028 253,090 4,119 16 and 17 years-------- ------ --------. ------- Regular and vacation and outside school hours. R e g u la r _____ ________ ... .. .. ... Vacation and outside school hours_______ Reissued____________________ ____ _________ 686,255 547,191 402,474 144,717 139,064 1,298,637 959,960 717,356 242,604 338,677 1943 1,583,591 +98.9 1,222,914 +86.5 679,959 +64.2 542,955 +124.6 360,677 +156.8 + 0 .2 - 1 .2 - 8 .4 + 9 .5 + 5 .2 +197.4 +196. 7 +150.9 +202. 2 +254.0 +16.0 +15.9 +16.8 +15.8 +20.2 1, 256,247 +83.1 900,523 +64.6 650,726 +61.7 249,797 +72.6 355,724 +155. 8 - 3 .3 -6 .2 - 9 .3 + 3.0 + 5 .0 327,344 322,391 29,233 293,158 4,953 1 Figures for 1944 are provisional and incomplete. In many States and cities, however, there was an increase in 1944 over 1943 (as well as over 1942) in the number of these teen-age children who went to work, as evidenced by the number of certificates issued for full-time or part-time employment during the 3 years (table 8). Although later reports will of course change the total figures, it is believed that the preliminary reports are representative and give a reliable picture of the situation in the country as a whole. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 769 CHILD LABOR T able 8 . —Minors Aged 14 Through 17 Years Receiving Employment Certificates in Selected States and Cities During 1942, 1943, and 1944 Regular and vacation and outside-sebool-hours certificates 14-17 years of age State or city 16-17 years of age 14-15 years of age Percent of in Percent of in Percent of in crease, 1944 over— crease, 1944 over— crease, 1944 over— 1942 1943 1942 1943 1942 1943 States Alabama......... ............ ........... Colorado.____ __________ Florida (11 months)______ Iowa (11 m onths)________ K a n sa s..________________ Kentucky_______________ M innesota_______________ Missouri_________ _______ Nebraska................... ............ N ew York (8 months). _ . . North Carolina................ Oklahoma_______________ Tennessee_______________ U tah______ _____________ Virginia___ _____________ West Virginia— _________ 292.2 400.6 472.2 392.4 956.5 136.0 328.9 254.0 313.1 124.7 59.4 152.7 504.1 90.3 89.9 480.8 20.5 62.6 41.3 78.0 33.5 27.7 34.9 7.1 35.6 4.5 8.7 3.2 27.6 9.4 13.9 70.3 349.1 414.2 408.4 910.9 1,129.0 83.4 373.8 233.7 367.6 95.3 41.9 172.3 561.5 85.3 85.0 501.8 14.4 74.5 32.4 121.1 32.2 12.6 36.4 1.2 29.5 1 2.9 2.5 4.1 31.0 9.4 9.5 73.4 138.4 378.1 788.0 102.4 400.0 283.8 71.5 387.9 245.0 223.9 131.5 104.5 311.1 107.5 104.3 365.6 65.0 45.0 17.0 15.2 44.9 55.9 15.5 46.2 47.5 23.7 28.1 .5 11.7 9.5 27.7 51.1 Cities Atlanta, Ga_______________ Birmingham, Ala__________ Kansas City, M o .____ _____ Lawrence, M ass................... Louisville, K y ................. ......... N ew York, N . Y . (8 months) Philadelphia, Pa___________ Salt Lake City, U tah........ . 497.1 441.2 623.3 43.0 92.3 166.9 64.4 53.6 89.9 123.5 11.9 26.6 25.8 9.6 8.0 2.5 526.8 652. 3 597.5 8.5 46.1 120.4 41.6 39.7 81.5 153.1 1.6 18.5 13.2 2.3 5.7 1 1.2 332.5 164.8 705.8 322.8 229.8 360.2 282.6 95.0 201.7 55.9 72.6 47.9 47.4 27.7 16.9 11.3 1 Decrease. Shifiting among jobs.—Under some State laws, an employment certificate is valid only for work for one employer, and must be re turned to the issuing office when the child leaves his employ. Subse quent certificates for the same child for other jobs are called “reissued certificates.” The certificates reported to the Children’s Bureau as “reissued” therefore indicate shifting from job to job by these young workers. In the areas for which reports for 1944 have been received the number of reissued certificates increased 157 percent between 1942 and 1944—from 140.463 in 1942 to 360,677 in 1944, or from 18 percent of the total number of certificates issued in 1942 to 23 percent of the total number issued in 1944. These figures however cannot be regarded as reflecting the total amount of turnover among young workers, because in many States the certificate, once obtained, is good for any employer, and because the reports as to whether the certificate is a “reissued” or a “first” certificate are not always reliable. Even the amount of shifting from job to job that is indicated by these figures, however, is significant, and is corroborated by other studies of teen-age workers. For instance, a report on employed minors in Pennsylvania covering the years 1939-43, stated that in many areas in 1943 more certificates were being issued to minors changing jobs than to those being employed for the first time. Employment and school attendance.—The trends in the number of regular and vacation and outside-school-hours certificates issued for children of the two age groups represent to some degree, though https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 770 MONTHLY LABOR REVIEW— APRIL 1945 more nearly for the 14- and 15-year-olds than for the 16- and 17-yearolds,14 the extent to which these young people are leaving school for work and the extent to which they are taking part-time or vacation jobs. In both age groups, though the number obtaining regular certificates rose rapidly, the rate of increase was greater for those obtaining certificates for work outside school hours and during vacation. The difference, as would be expected, was more marked for the 14- and 15-year-olds than for the 16- and 17-year-olds. Accord ing to the April 1944 Census sample survey (see page 759), of the 2,900,000 young persons 14 through 17 years of age in the labor force at that time, 1,400,000 were both attending school and working; of these, 14- and 15-year-olds accounted for about 600,000, and 16- and 17-year-olds for about 800,000. Many of these student workers, who comprised one-fifth of the total number in the age group 14 through 17 who were attending school, were carrying heavy loads. Forty percent of the 14- and 15-year-olds and 49 percent of the 16and 17-year-olds had carried more than 48 hours of combined school and work per week. Sex of Young Workers Receiving Certificates As has been the case in former years, .more boys than girls in the age groups 14 through 17 years obtained employment certificates, though the number of boys and girls of these ages in the population is approximately equal. In 1943, boys constituted 62 percent of all the young persons of these ages obtaining certificates for work. Among the younger group of 1.4- and 15-year-olds the proportion of boys was slightly higher, being 67 percent, as compared with 61 per cent among the 16- and 17-year-old workers. Several factors might account for this difference, one of which is that much of the employ ment open to 14- and 15-year-olds is in street trades, errand work, or other jobs traditionally held by boys. Nevertheless, between 1940 and 1943, the percentage of girls in the group obtaining certificates rose from 34 to 38 percent. This upward swing was marked among the 14- and 15-year olds who took jobs during vacation and outside school hours; in 1940 only 7 percent of this group were girls, as compared with 33 percent in 1943. School Grade Completed Sixty years ago the educational standards for working children had not advanced beyond the requirement of a few months of school ing in the year the child was employed. Photostatic copies of some old certificates issued in Connecticut in the 1880’s recently lent to the Children’s Bureau, show that boys and girls under 14 could be legally employed if they had attended school for 60 days out of the year, and of this period only 6 weeks had to be consecutive. Even such a standard was an advanced one at that time. Changes in public opinion and a realization of the need for more education have brought about a more widespread educational oppor tunity for teen-age children, and higher child-labor and schoolattendance standards. More than half of the States permitting employment of children 14 or 15 during school hours now require that 14 See footnote to table 4, p. 763. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHILD LABOR 771 children under 16 obtaining certificates for work must meet certain educational requirements, usually completion of the eighth grade, before they may legally be employed. In 1943, three-fourths of the children 14 and 15 years of age obtain ing first regular certificates, for whom data on grade completed are available, had finished the eighth or a higher grade (table 9). Roughly 37 percent, however, had gone no farther than the eighth grade, though 38 percent had continued through the first, second, or third years of high school. Although there has been a serious drop in school enrollment at the high-school level during the war, these reports indicate an increase in the proportion staying in school at least through the eighth grade, as between 1940 and 1943 the proportion of 14- and 15-year-olds who had failed to complete the eighth grade before getting their regular employment certificates fell from 30 to 25 percent. Nevertheless a fourth of the 14- and 15-year-olds who had obtained such certificates had less than an eighth-grade education and 11 percent had completed only the sixth grade or less. As already pointed out, not all children obtaining regular certificates actually leave school, but the picture is approximately the same for the States where regular certificates are issued only to children of these ages who do in fact leave school as for all the States from which this information on grade completed is available. Information on the schooling of 16- and 17-year-old minors receiving regular certificates is not available for 1943, but in the three previous years about 15 percent had completed high school before entering employment. T a b l e 9 . —Highest School Grade Completed by Minors Aged 14 Through 17 Years Receiving First Regular Employment Certificates, 1940-43 Number of minors Percent of minors Age and highest grade completed 1940 1941 1942 1943 1940 1941 1942 1943 5, 205 4,108 635 600 2,873 1,297 1,555 21 1,097 8,306 6,609 978 945 4,686 2,002 2,620 64 1,697 16,184 34,311 24', 545 2, 686 3,528 18, 331 8,954 9,238 139 9, 766 100.0 15.5 14.6 69.9 31.6 37.8 .5 100.0 14.8 14.3 70.9 30.3 39.6 1.0 100.0 12.5 14.5 73.0 31.5 40.4 1.1 100.0 10.9 14.4 74.7 36.5 37.6 .6 Minors Ifi and 17 vears of age 103, 490 Grade completed reported. ------85', 371 6,182 Grade 6 or lower 1___ 5,809 Grade 7___________________ 73, 380 Grade 8 or higher__________ 14, 641 Grade 8________ _ -----46, 333 Grade 9, 10, or 11______ 12,406 Grade 12 or higher_____ Grade completed not reported. __ 18,119 244,014 198; 641 11,511 11,851 175, 279 29,132 113,893 32, 254 45,373 436,783 330; 363 16,196 17,602 296, 565 46,128 201,106 49, 331 106,420 100.0 7.2 6.8 86.0 17.2 54.3 14.5 100.0 5.8 6.0 88.2 14.7 57.3 16.2 100.0 4.9 5.3 89.8 14.0 ■60.9 14.9 (2) Minors 14 and 15 years of age Grade completed reported-------Grade 6 or lower L . . --------Grade 7____________ ______ Grade 8 or higher__________ Grade 8_______________ Grade 9, 10, or 11______ Grade 12 or higher_____ Grade completed not reported n; 69i 1,444 1,687 8,460 3,649 4,684 127 4,593 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) 1 Includes ungraded classes. 2 Data not available. Industry and Occupation Entered War demands for labor and new types of job openings have brought about a great change in the industries and occupations entered by young workers obtaining certificates. In general the trend for 14and 15-year-olds has been away from the typical “children’s occupa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 772 MONTHLY LABOR REVIEW— APRIL 194 5 tions,” such as errand work, street trades, and housework as the major type of work, into employment in retail stores and wholesale establishments, and for the 16- and 17-year-olds away from the trade and miscellaneous service industries into various types of employment in manufacturing and mechanical establishments. A LL C E R T IFIC A T E S Information on the industries and occupations in which these boys and girls were working is not available for so many States and cities as furnish information on the total number of certificates issued. Many State and city offices have been unable to report on this point, either because the information was not called for on the certificate form used or because of added wartime pressure of work on issuing officers. The totals shown in tables 10 and 11, therefore, are lower than those in previous tables, which cover certificates issued in all States reporting. Also the totals for certain occupations, such as domestic service in private homes, agricultural wrnrk, and (to some extent) street trades, are not representative, because in many States certificates are not required for these types of employment. On the whole, however, the data available are believed to picture, for a large proportion of the young nonagricultural workers of the country, the kinds of work in which they have been engaged. Children 14 and 15 years oj age.—In 1940 nearly 40 percent of the 14- and 15-year-olds for whom regular certificates were issued were employed in domestic service in private homes, usually doing house work or caring for children; in 1943, however, only 8 percent were so employed (table 10). The proportion receiving regular certificates to enter employment in wholesale and retail trade, however, increased from nearly 30 to almost 50 percent, as more and more 14- and 15year-old boys and girls were hired for delivery or errand work, waiting on customers, as stock boys, as “ soda jerkers,” or for other jobs in stores and various trade establishments. This rise in employment in wholesale and retail trade was even greater among children obtaining vacation or outside-school-hours certificates. Another kind of work that seems to have lost its attraction for boys 14 and 15 is that of newsboy. Though under many State laws, em ployment certificates are not required for this work, 32 percent of the 14- and 15-year-old minors receiving certificates for employment in vacation or outside school hours in 1940 were newsboys, whereas in 1943, when other and more desirable jobs were available, only 2 percent were in newsboy jobs. A similar though much smaller de crease is noted for children 14 and 15 years of age obtaining regular certificates for employment at this occupation. Coincidently there has been an upward trend in the proportion of these younger workers taking jobs, both full time and part time, in other manufacturing industries—from less than 2 percent in 1940 to 7 percent in 1943. This increase has resulted from the great expansion in manufacturing during the war, and has occurred in spite of both Federal and State laws restricting such employment for young work ers. As already pointed out, under the child-labor provisions of the Fair Labor Standards Act, only work in establishments that do not produce goods for shipment in interstate commerce and a small amount of nonproductive work in interstate factories are legal for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 773 CHILD LABOR children 14 and 15 years of age. In addition, in 15 States there is a basic minimum age of 16 for work in factories, or for all work during school hours. These legal provisions have stood as a bulwark against any extensive employment of children under 16 in factories. Although in many parts of the country there is much seasonal employment of 14- and 15-year-old children for the harvesting of fruits and vegetables, most States do not require certificates for this type of work, and as a result the certificate figures give no adequate evidence of the extent or trends of employment of young people in agriculture. T a b l e 10.— Industry Entered by Minors Aged 14 and 15 Years Receiving Regular and Vacation and Outside-School-Hours Certificates in 1940 and 1943 1940 Industry Total 1943 Vacation Vacation Regular and outsideRegular and outsideschoolschoolTotal certifi certifi cates 1 hours cer cates 1 hours cer tificates 2 tificates 2 31, 058 2,572 28, 486 263, 690 20, 416 243, 274 Industry reported................................................... 30, 812 Manufacturing ______________ . . . . . . 9, 561 Publishing (i. e. newsboys) ________ 9,123 Other_______________________ ______ 438 Wholesale and retail trade ____________ 8, 557 Domestic service, private h o m e..________ 1,286 Personal, business, and recreational serv9, 036 ices 3____________________ ___________ Transportation, communication, and 411 other public utilities________ _______ O ther4_______________________________ 1,961 2, 536 181 116 65 705 990 28, 276 261,138 9,380 22, 434 9, 007 4, 065 373 18, 369 7, 852 154, 280 296 2, 611 20, 360 1,943 56 1,887 9,507 1,544 240, 778 20, 491 4, Q09 16, 482 144, 773 1,067 All industries. ___________________________ 216 8, 820 43, 604 2,064 41, 540 28 416 383 1,545 9,811 28, 398 1,642 3,660 8,169 24, 738 Percentage distribution Industry reported_________________________ Manufacturing___________ ___________ Publishing (i. e. newsboys). _______ Other_______________ . . . ________ Wholesale and retail trade.. ______ _____ Domestic service, private home _______ Personal, business, and recreational services 3________________________________ Transportation, communication, and other public utilities................................... O ther4. _____________ ____ ___________ 100.0 31.0 29.6 1.4 27.8 4.2 100.0 7.2 4.6 2.6 27.8 39.0 100.0 33. 2 31.9 1.3 27.8 1.0 100.0 8 6 1.6 7.0 59. 1 1.0 100.0 9.5 0.3 9.2 46.7 7.6 100.0 8.5 1.7 6.8 60.1 0.4 29.3 8.5 31. 2 16.7 10.1 17.3 1.3 6.4 1. 1 16.4 1.3 5.5 3.7 10.9 8.1 18.0 3.4 10.3 1 Includes 29 States, the District of Columbia, and 31 cities in 3 other States. 2 Includes 28 States, the District of Columbia, and 30 cities in 3 other States. 3 Excludes domestic service in private homes. 4 Includes agriculture, forestry and fishing, mining, construction and industries specified as “other” without detail. Minors 16 and 17 years of age.—During the 4-year period, the 16and 17-year-old workers were leaving store jobs and the service in dustries and were going into factories. Fifty-four percent of all the boys and girls of these ages going to work either full time or part time in 1943 went into manufacturing industries (table 11). Many went into war industries-—as riveters, painters, assemblers, or sheet-metal workers in aircraft factories, as shipfitters, pipefitters, boilermakers’ helpers, lay-out men, and special apprentice welders in shipyards, and in various types of work in plants producing textiles, wearing apparel, food products or other items for military uses. In the rail road industry considerable numbers of certificates were issued for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 774 MONTHLY LABOR REVIEW— APRIL 194 5 crew callers, baggagemen, and brakemen. At the same time there was a decrease in the number of 16- and 17-year olds going to work full time or part time as messengers in business offices, as cashiers, bus boys, waiters and waitresses in lunchrooms, as helpers and attendants in filling stations or garages, as pin boys in bowling alleys, and in miscellaneous work in service industries. The percentage in wholesale and retail trade, for instance, dropped from 34 in 1940 to 25 in 1943, and the percentage in the service industries dropped from 21 to 8. Relatively few minors of these ages were engaged in delivery work or in domestic service in private homes, which had been the occupations of a third to a half of this group before the war. T a b l e 11. — Industry Entered by Minors Aged 16 and 17 Years Receiving Regular and Vacation and Outside-School-Hours Certificates in 1940 and 1943 [Includes only States and cities issuing 10 or more certificates in either year] 1940 Industry 1943 Vacation Vacation and out-. outRegular and sidesideTotal certifi schoolschoolcates 1 hours hours certificates 2 certificates 2 Total Regular certifi cates 1 All industries._________ ____________ ____ 129, 289 94, 670 34, 619 901, 496 681, 321 220,175 Industry reported_____ _ ___________ . . . . . ___ Manufacturing______________ . Wholesale and retail trade . . . _ . . . . ___ Personal, business, and recreational services 3_____________________ _________ Transportation, communications, and other public utilities. . . _________ ____ Other 4 __________ _______ ________ 127, 622 38, 600 43,931 93, 568 35, 598 26, 956 34,054 884,334 669,331 3,002 477, 227 432, 699 16, 975 222, 290 118, 569 215,003 44, 528 103,721 26, 643 19, 421 7,222 69, 083 38,924 30,159 8, 635 9, 813 5, 866 5,727 2,769 4, 086 48, 875 66, 859 34, 943 44,196 13, 932 22, 663 Percentage distribution Industry reported_____ _____ ______________ Manufacturing___________________ ____ Wholesale and retail trade___ __________ Personal, business, and recreational services 3_____ ____ ______________________ Transportation, communications, and other public utilities_________________ O ther4_______________ ________ . . 100.0 30.2 34.4 100.0 38.0 28.8 100.0 8.8 49.9 100.0 54.0 25.1 100.0 64.7 17.7 100.0 20.7 48.3 20.9 20.8 21.2 7.8 5.8 14.0 6.8 7.7 6.3 6.1 8.1 12.0 5.5 7.6 5.2 6.6 6.5 10.5 1 Includes 34 States, the District of Columbia, and 30 cities in 3 other States. 2 Includes 10 States, and 27 cities in 3 other States. 3 Includes domestic service in private homes, as information is not available separately for the age group 16 and 17. 4 Includes agriculture, forestry and fishing, mining, construction, and industries specified as “other” w ithout detail. Among the 16- and 17-year-old workers who obtained certificates for employment only in vacation and outside school hours there were more who went into manufacturing in 1943 than in 1940; the propor tion going into trade remained nearly constant; and there was a drop in employment in personal, business, and recreational services. Sex of minors as related to occupation.— In 1940 nearly 90 percent of the girls 14 and 15 years of age who received regular certificates were employed in domestic service in private homes. By 1943, this pro portion had dropped to only 20 percent, showing the wider scope of work opportunities open to girls. That many had shifted over to jobs in ten-cent stores, drug stores, groceries, and other trade establishments https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHILD LABOR 775 is shown by the fact that the proportion in wholesale and retail trade rose from only 7 percent in 1940 to 54 percent in 1943. Among the girls 16 and 17 years old the proportion in manufacturing increased from 38 to 53 percent, while the percentages in trade stayed approx imately the same—roughly 28 percent in both 1940 and 1943. F E D E R A L C E R T IFIC A T E S The Federal certificates issued by the Children’s Bureau in Idaho, Mississippi, South Carolina, and Texas are primarily for workers covered by the Fair Labor Standards Act, that is, in industries produc ing goods for interstate commerce. Ak would be expected, therefore, manufacturing bulked large in the figures showing the industries entered by minors receiving Federal certificates. The proportion of 16- and 17-year-olds entering manufacturing during the years 1940 to 1943 was about 90 percent each year. The large percentage of all workers of these ages obtaining certificates for manufacturing is, however, not noticeably affected by this preponderance, since the number of certificates issued in these 4 States is a relatively small fraction of the total for the country.15 15 Data on evidence of age for all employment certificates issued will be published, together with the aterial in this article, in a forthcoming report. 6 3 6 3 7 2 — 45 6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Employment Conditions L abor C onditions in th e P hilippines 1 Summary AGRICULTURE is the chief source of livelihood of more than 80 percent of the inhabitants of the Philippines. Thus, out of a total population of about 16,000,000, according to the 1939 Census, 8,466,493 persons had gainful occupations and of these nearly 7,000,000 were in agriculture and in personal and domestic service. The majority of the latter group were employed on farms. Manufactur ing and mechanical industries, on the other hand, employed only 601,335 persons. Because of the agricultural economy and the close-knit Filipino family groups, their unemployment, in the occidental sense of the word, was neither so acute nor so extensive as it was in Europe and America. In 1939, only 215,246 persons with a gainful occupation were reported as unemployed, and of those 129,335 were usually engaged in agriculture. In 1939, the 8-hour workday was made general for all workers except farm laborers, employees on piece work, domestic servants, and members of the employer’s family. Overtime was to be paid for at the rate of time and a quarter. Wages were fixed largely by contract. In 1936, the Court of Industrial Relations (created in that year) was given control over the establishment of minimum wages and maximum rents. The average daily wage in 1939 was 0.61 peso (about 30 cents in United States currency). Agricultural workers had the lowest average wage, 44 centavos, and public-service employees the highest, 1.44 pesos. The lowest daily wage (0.12 peso) was paid to female agricultural laborers in Capiz, and the highest to mechanics in Davao, 9.50 pesos. Labor organizations were patterned after those in the United States, and from the year 1936 were closely regulated by the State. Their total membership in 1938 was 46,456. Collective bargaining was common in the unionized industries, but the membership of labor ^organizations included only a small portion of the working population. The settlement of industrial disputes was in the hands of the Court of Industrial Relations, established in 1936. Mediation, conciliation, and arbitration were provided for by a law of 1938. i Prepared in the Bureau’s Editorial and Research D ivision by James R. Mock. 776 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 777 Although the cooperative movement in the Philippines was not large, it included associations of all the principal types—credit, marketing, consumers’, and industrial. At the outbreak of the war, the agricultural credit cooperatives numbered 570, were in some 43 Provinces, and had a total membership of about 105,000. Social insurance provided consisted of accident compensation for workers in industrial and agricultural establishments employing not less than 30 workers, and old-age pensions for teachers, for officers or enlisted men in the Philippine constabulary, and for certain officers and employees of the Public Health Service. Situation under Japanese occupation.—The Japanese occupation severely disrupted the Philippine economy. The invader changed the emphasis given to various branches of agriculture, mining, and manufacturing. For example, sugar—previously one of the leading products—was deemphasized, and the hitherto unimportant cotton cultivation was stressed; and factory operation was brought to a standstill. As a result of the industry stoppages and the change in agricultural production, unemployment increased greatly. Instead of continuing the use of minimum wage rates, the Japanese provided a maximum wage. In July 1943 this wage was 1.30 pesos per day, which dropped to approximately 0.91 peso if the employer provided meals. Although there are no data regarding the specific number of hours of work, it is known that the number of hours of labor were increased substantially. For overtime, male workers in Manila were to receive payments of 12.5 percent in addition to their regular or basic wage rates. Pre-invasion labor unions were outlawed, and an organization, called the Central Labor Union, was established in Manila to cen tralize control of the Filipino labor force. To serve Japanese objectives, the cooperative framework, as it was under the Commonwealth, was expanded by the invaders with the addition of Japanese technical and financial assistance. With Nippon interested mainly in Philippine agriculture, the farmers’ or producers’ associations, by February 1944, had become the most numerous of the cooperatives, totaling 206, with a membership of some 87,000. In order to gain the support of the Filipinos, the Japanese likewise encouraged cooperatives in retail businesses which formerly had been controlled by the Chinese. Labor Conditions Prior to Japanese Occupation T H E LA BO R FO RC E In a population of about 16,000,000 in 1939, the Philippine census showed 8,466,493 persons as having gainful occupations, females outnumbering males by 27,937. In terms of occupations, the two largest groups were agriculture, which employed 3,456,370, and domestic and personal service, with 3,478,084 persons, of whom the majority were employed on farms. Of the domestic and personal service group, 3,147,320 or 90.5 percent were housewives or house keepers. Only 601,335 were employed in manufacturing and mechan ical industries. The distribution of gainful workers is shown in table 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 778 MONTHLY LABOR REVIEW— APRIL 194 5 T a b l e 1.—Gainful Workers 10 Years Old and Over, by General Occupation Group and Sex, in the Philippines, 1939 1 Percentage distri bution Number Percent of total Occupation group Both sexes T otal______________________________ Male Female Both Male Fe Fe sexes male Male male 49.8 50.2 40.8 41.1 1.2 .6 2. 1 .3 .6 70.7 2.9 1.6 1.2 4.2 .6 1.1 11.2 79.0 .9 0 . 1 (2) 0 86.3 3.6 63.3 98.7 97.4 92.9 99.2 13.7 96.4 36.7 1.3 2.6 7.1 .8 7.1 2.4 .6 3.2 7.9 4.8 1.1 4. 1 6.3 0 .1 2.3 55.5 99.4 91.8 63.2 44.5 .6 8.2 36.8 8,466, 493 4,219, 278 4, 247, 215 100.0 100.0 100.0 Agriculture________________________ 3,456,370 2,981,551 474,819 Domestic and personal service___ -3, 478,084 123,508 3,354,576 Professional service_____ _____________ 103,415 65,438 37,977 Public service (not elsewhere classified)-49,620 48,984 636 Fishing. - -_ _ _ ___ 180,569 175,841 4,728 Forestry and hunting--- - - - - - 24,903 26,820 1,917 Mining and quarrying_____ _____ 47,019 394 46, 625 Manufacturing and mechanical indust r i e s - .- - __________ ____ _____ 601,335 333,976 267,359 Transportation and communication203,596 202,449 1,147 44,904 Clerical___________ _ _ 48,899 3,995 171,099 Trade___________ _________ _-270,766 99,667 1 D ata are from Census of the Philippines, 1939, Vol. I, Manila, 1940. 2 Less than a tenth of 1 percent. IN D U S T R IA L D IS T R IB U T IO N O F W O R K E R S Among the 15 leading manufacturing and mechanical industries and occupations—employing more than 490,000 of the 601,335 persons in this category—embroidery and dressmaking (with 113,810), and carpenters (numbering 76,465), head the list. The distribution of Filipinos engaged in the leading manufacturing and mechanical industries appears in table 2. T a b l e 2 . —Gainful W orkers in the 15 Leading Manufacturing and Mechanical Industries of the Philippines, by Industry or Occupation, and Sex, 1939 Number of gainful workers Industry or occupation Both sexes Male Female __________ _______ ___ 490, 039 241,337 248. 702 Embroidery and dressmaking_______ _________ . Carpenters ______ ___ ___ _________ Native textile manufacture__ ___________ - _______ Laborers (industry not stated)_________ ______ ____ _ M at manufacture- ____ ___ _____ _______ ___ Tailor shops and necktie manufacture_____ __________ Hat manufacture --_ -Sugar centrals and muscovado m ills, - ________ _ -Sawmills and planing mills______________ -- _ ------Shoe and slipper manufacture______________ -- _ --Miscellaneous manufactures__________________ ___ --Nipa manufacture- - ___________ _____ Cigar and cigarette manufacture________________ ____ Bakeries____ ___ ____ ____________________ Rice and corn m il ls ____________ ______________ ____ 113, 810 76,465 55, 834 51, 504 27, 318 23, 723 23, 296 22. 044 21, 785 20, 271 12. 281 11,058 11, 027 10, 374 9, 249 2,630 76, 457 1. 047 48, 300 1, 120 15, 729 2.848 21, 762 21, 747 14, 523 7, 111 5,311 5, 272 9,509 7,971 111, 180 8 54, 787 3,204 26,198 7,994 20, 448 282 38 . 5,748 5, 170 5,747 5,755 865 1, 278 All groups___________ ____ -_ Source: Census of the Phillipines, 1939, Vol. II, Manila, 1941. E M P L O Y M E N T C O N D IT IO N S Unemployment.—In the Philippines, the unemployment problem was neither so acute nor so extensive as it was in Europe and America. This was due to the lack of widespread industrialization, and to the traditional policy of the Filipino family (which includes all individ uals related by blood or marriage), of taking care of its own relief https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 779 problems. In the census of 1939, only 215,246 persons with a gainful occupation were listed as unemployed. More than three-fifths (129,335) of that number were usually engaged in agriculture, and in the agricultural group 28,586, or 22.1 percent,'were farmers or farm owners. Below is given a distribution of the “ unemployed persons 10 years old and over” in 1939, by general occupation group. Number All groups___________________________________________ 215, 246 Agriculture__________________________________________ 129, 335 Manufacturing and mechanical industries______________ 36, 755 Transportation and communication_______________ 13,885 Fishing____________________________ 10,322 Trade_______ 8,760 Domestic and personal service_________________________ 8, 342 Professional service___________________________________ 2, 604 Mining and quarrying___ _____________________________ 2, 123 Forestry and hunting_________________________________ 1, 745 Clerical_____________________________________________ 851 524 Public service (not elsewhere classified)________________ In the years immediately preceding the attack on Pearl Harbor, several factors complicated the unemployment situation. There was an uneven distribution of land and people. Also, the unemployed tended to migrate to the cities and especially to Manila. Such mi gration, combined with the increasing desire among young persons for higher education and white-collar jobs, contributed to the over crowding of urban industry. Employment agencies.—An act of 1917 authorized the establish ment of .public employment agencies by the Bureau of Labor. It also provided that the Director of Labor should have authority to fix the amount of fees and to collect them from the employer, for services performed by the agency in securing workers. By 1938, the employment-service functions had been assigned to offices of public defenders (who were representatives of the Philippine Department of Labor) in 35 towns and Manila. Private employment agencies were not regulated by the State until 1932, when a law placed them under the supervision of the Director of Labor. The measure also prohibited the establishment of such agencies except under license from that official. Fees from applicants were limited to 20 percent of the first year’s wages. W A G E S , H O U R S , A N D W O R K IN G C O N D IT IO N S Hours of Labor An act of June 1939 made the 8-hour workday applicable to all industrial or occupational employees except farm laborers, workers on a piece-work basis, domestic servants, and members of the employer’s family. The law also directed that workers should receive time and a quarter for overtime and for work on Sundays and legal holidays. Also, in the event of a national emergency, the Government was authorized to establish rules and regulations for the operation of plants and factories and to determine wage rates therein. A statute of September 1939 authorized the President of the Philippines to suspend the 8-hour law, but he did not make use of that authority. Workers' Wages Fixing oj wages.—Philippine labor was overwhelmingly rural, and comparatively unacquainted with a money economy. Wages gen erally were fixed by “customary contracts” or by “the Pakiao system.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 780 MONTHLY LABOR REVIEW— APRIL 1945 The customary contract was a series of implied annual covenants, which were inferred from (a) limited verbal agreements, and (6) rela tions of one party to another which had existed for generations either in the community or on the estate involved. The Pakiao system was, in brief, a form of contract labor under which the employer agreed to furnish the employee with land, shelter, subsistence, and materials; the other party to the agreement contracted to obtain all the workers the employer needed. By 1926, the principle of wage fixing through collective bargaining was in operation in those industries and occupations in which the workers were organized. In 1932, the State began to intervene in matters dealing with wages. The employee was not to be compelled to purchase commodities from the employer, nor was any part of his wages to be paid in other than legal-tender currency of the Philippine Islands; in addition, the em ployer was to pay his workers on the fifteenth and last day of every month, or on every Saturday. (The principle of bimonthly payments was reaffirmed by a law of 1938, which further stated that no employee was to be compelled to purchase his commodities from his employer’s store.) In 1936, the Court of Industrial Relations was created, with power to determine the necessity and justice of fixing a minimum wage or a maximum rental. General level oj wages— In 1939, the latest period for which data are available, the average daily wage, all gainful occupations combined, was 0.61 peso (about 30 cents in United States currency), and the average monthly salary was 29 pesos (roughly $14.50 in United States currency). In the individual industries, average daily wages ranged from 44 centavos in agriculture to 1.44 pesos in public service. In domestic and personal service the average monthly salary was 9 pesos, and in professional service 74 pesos per month. The average daily wage and average monthly salary in 1939, of persons reporting from the various industry groups, were as follows: Average Average monthly daily wage salary J (in pesos) (in pesos) All in d u strie s_______________________________ 0. 61 29 A g ricu ltu re________________________________ .4 4 D om estic a n d personal service______________ .5 3 Professional service_________________________ _____ P ublic service (not elsewhere classified)_____ 1. 44 F ishing_____________________________________ .5 7 F o restry an d h u n tin g _______________________ .7 5 M ining a n d q u a rry in g ____________ ________ - 1. 22 M an u factu rin g an d m echanical in d u stries----- . 80 T ra n sp o rta tio n a n d com m u n icatio n_________ 1. 03 C lerical____________________________________ 1. 38 T ra d e ______________________________________ .6 6 14 9 74 50 16 24 56 30 36 58 37 Minimum daily wages in various Provinces of the Philippines, in April 1939, were as low as 0.12 peso 2for female agricultural laborers in Capiz and as high as 1.50 pesos for hemp classifiers and mechanics in Davao. Maximum daily wages for the same month ranged from 0.20 peso for female agricultural workers and for industrial and commercial workers in Capiz to 9.50 pesos for mechanics in Davao. The minimum, maximum, and average wages per day in these and other designated Provinces are shown’in table 3, which was compiled from data in the Philippine Labor Bulletin (Manila), May 1939. 2 Peso= about 50 cents. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 781 T a b l e 3.—D aily Wages in the Philippines, by Province, Industry, and Occupation, A pril 1939 Wages or earnings per day Province, industry, and occupation M inimum Albay, Sorsogon, and Catanduanes: Agriculture: Pesos Abaca strippers_____ _________________ ______ ________ _ 0.15 Rice planters__________ __________ . . Rice plowmen___________________ Industrial labor: Abaca___________ _ __________ . . 25 Abacâ classifiers___________________ _ _______ .80 Copra dryers__ ________________ .70 Copra load ers_______________ ________________________ Commercial workers..________________ ______ . ______ _ 8 9.00 Bataan: Agricultural laborers________ ___________________________ .50 Industrial laborers____________ ______ ___ _________ _ ... 1.00 Commercial workers_________________ .50 Batangas: Agricultural workers. . . . _____ . . . .60 Sugar centrals, common la b o r e r s ...______ . . . . . . . . . . . . . .70 Sugar centrals, skilled laborers________________ ___ _ _ . 1.45 Cagayan: Agricultural laborers. . . . _____ . . . ____________ _____ _____ .50 Industrial workers______________________________ _______ .72 Commercial laborers._____ _____ ______ _ ________ ____ 8 6.00 Camarines Norte (José Panganiban): Mining employees__________ 1.00 Camarines Sur: Agriculture: Abacâ cleaners____ __________ ___________________ .30 Coconut planters_____________________ _____ ___________ 4. 25 Rice-field common laborers: W ithout implements and water buffalo______________ 4. 25 With implements and water buffalo___ ______________ .50 Industrial workers: Lumber industry: Large enterprises, common labor_____ ___________ .80 Small enterprises __________________________________ .60 Mining industry: _________ _ ___________________ Surface labor. .. . 70 Underground labor.. . . _____________________________ 1. 00 Rice-mill laborers. _______________ _____________ _ . . 4. 50 Tobacco manufacture, laborers__________ _________________ .20 Capiz: Agricultural laborers, female________________________________ ». 12 ____________________ Agricultural laborers, male__________ ». 20 Industrial workers_________ _ ___________________ _________ . 15 Commercial laborers_____ ________________________________ 6. 10 Cavite: Agricultural workers______ ____________________ _____________________ .80 Industrial and commercial workers______________________________ ____ .70 Cotabato: Agricultural laborers___ _________________________ ____________ ______ _ . 40 Industrial workers_____________ ______ . _ __ . __________________ 8 12. 00 Commercial establishments, small, laborers________________ _______ 8 8. 00 % Davao: Common laborers______________________ ______ ___________ _ _______ _______ . 40 Industrial workers, mechanics ___________ . . ____________________ 1. 50 Commercial workers, hemp classifiers.. . . . ____________________ 1 . 50 Ilocos Norte: Carpenters, skilled __________________________ .. ... _______________ 4. 50 Construction workers (private)___ __ _____ ________________________ 4. 25 Iloilo and Antique: Agricultural workers . _ . . _ _. . _____________ . . . .40 Industrial workers____________ ______________________________________ ______ 1.00 Commercial workers___________________ __ . . __ ___________ .70 Isabela: Agriculture: Farm laborers . . . . . _____. . . . . 7. 50 Public works: Laborers on “pakiao” 8 system......... . _____ __ Lumber industry: Sawyers _____ _ _ _ _ _ _ . . . ___ .80 Lanaô: Industrial common laborers_________ _ _ . _____ ____ .67 La Union, Abra and Southern Ilocos S u r.. ____ __ . __________ ____ .40 Maximum Average Pesos 0.40 Pesos 0. 25 (l) (2) . 60 1.25 1.00 8 30. 00 40 1.00 .80 80 8 15.00 1.00 1.30 .90 .80 1. 10 .60 1.30 1. 20 3. 00 .80 1.00 2.00 8 45. 00 .70 1.00 8 15. 00 .80 4 .40 .50 4. 50 1. 00 1.70 4. 80 .70 1 20 .80 1 40 1. 40 .50 5. 20 5. 30 . 20 6 20 1.00 .80 .70 .75 . 80 8 30.00 8 35. 00 8 20. 00 8 15. 00 1. 00 9. 50 2. 50 4. 80 4. 35 .70 2.00 1. 50 .60 1.50 1.10 8 1. 00 . 80 1.00 1.23 1.00 .75 .60 1 Prevailing wage 0.15 peso per day with 2 meals. 2 Prevailing wage 0.50 peso per day with 0.25 peso additional if they use their own water buffalos (.carabaos). 8 Per month. 4 With 2 meals. 5 With freo board. 8 Per hour. 7 W ith subsistence. 8 Without subsistence. 2 Group contract. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 782 T able MONTHLY LABOR REVIEW--- APRIL 194 5 3.—D aily Wages in the Philippines , by Province, Industry, and Occupation, A pril 1939—Continued Wages or earnings per day Province, industry, and occupation Minimum M aximum Pesos 0. 30 .50 .50 Pesos 0.50 .70 .80 Pesos 0.40 .60 .65 .40 .50 .40 1.50 1.50 1.00 . 55 .70 .50 .35 .GO 1.00 .30 .75 1. 50 1.50 1.25 .65 1.00 1.20 1.00 .60 . 25 2. 00 2. 00 1.00 1.50 .20 .50 .50 io .85 .30 .70 .70 io 1. 20 .25 .60 .60 io 1.00 .30 .85 .80 .40 1.50 1. 00 .35 .85 .85 .40 .40 .50 1.00 1.20 1.00 .60 .80 .75 Leyte: Agriculture, private, laborers __ ____ - Industrial workers . _____ - - -_ _ - ___Commercial workers (laborers)____ Negros Oriental: Agricultural laborers . __ _______ __ __ Industrial laborers ____ ______ Commercial workers N ueva Ecijâ: Agricultural laborers __________ - ___ ____ _ Industrial laborers Government, project laborers _ _ _ ______ _ __ __ Pampanga- Common laborers male, and female Surigao and Agusan: Agriculture: Coconut huskers_______ - ___ Industrial laborers _____ ___ Commercial establishment small, laborers Romblon: _ __ _. Agricultural common laborers _____ _ Industrial workers _____ __ - _ _ _ Commercial workers ____ __ T ay abas: Laborers _ _________ _ ______ __ _____ Zambales: Agricultural common laborers____ _ _____ _ Industrial common laborers_____________ Commercial common laborers _ __ _ _ Zamboanga, City of: Agricultural laborers _______ _ _ _ _ _ Industrial laborers _ ______ _ __ Commercial laborers _ __ _ _ _ _ _ __ ________ ___ Average io Those receiving under 1 peso usually are provided with free board. VACATIONS WITH PAY There was no uniform practice concerning vacations with pay. Paid vacations were more commonly provided for salaried employees than for the wage earners, as the latter were usually employed in seasonal occupations in which regular vacations were not considered necessary. Among minor office employees, also, there were so many informal leaves of absence that regular vacations were not common. The upper clerical group, however, generally had annual vacations ranging from 15 days to a month, and usually with full pay, although some received half pay only. LABOR ORGANIZATIONS Prior to the Japanese invasion, labor unions in the Philippines were patterned after similar organizations in the United States, with higher wages and better working conditions as their objectives. In 1938, it was reported that four organizations accounted for most of the unionized workers. These were the Philippine Labor Federation, the Federación Obrera de la Industria Tabaquera de Filipinas, the National Labor Union, Inc., and the Philippine Labor Union. The membership of these was drawn, respectively, from the employees of the sugar centrals; the tobacco industry; the cordage, transportation, communications, iron works, lumber, embroidery, and general mer- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 783 EMPLOYMENT CONDITIONS chandising industries; and the sugar centrals, mining, coconut, embroidery, transportation, and cigar and cigarette industries. As of December 31, 1938, the membership and branches of the 80 registered labor organizations were as follows: Number of Total branches membership 'Total, all organizations________________________________________ 108 46, 456 C onfederated W orkers’ A lliance_______________________________ 1 9 F ederación O brera de Filipinas K M P _____________^____________ F ederación O brera de la In d u s tria T a b a q u e ra de F ilip in a s______ 6 K apisanan N g M ga M anggagaw a sa M anila R ailro ad C o_______ 14 N atio n al F ed eratio n of C hauffeurs_____________________________ 1 N atio n al L abor U nion, In c ____________________________________ 44 5 N atio n al W orkers’ B ro th e rh o o d _______________________________ Philippine L abor U n io n _____ __________________________________ 28 O ther in dependent unions (72 o rg an izatio n s)_______________________ 207 5; 626 2, 405 1, 104 320 8, 490 843 8 ,2 6 5 19, 196 Labor unions came under the supervision of the Philippine Govern ment in 1936. A law of that year required them to register, and to submit annually a list of their members and the minutes of their meetings, but provided that no employee was to be prevented from joining, or dismissed for having joined, any registered legitimate labor organization. The law also recognized the unions’ right of collective bargaining with employers to obtain better working and living condi tions, fair wages, shorter working hours, and the promotion of the material, social, and moral well-being of their members. INDUSTRIAL RELATIONS Collective Agreements Up to the time of the Japanese invasion, although collective bar gaining had developed at least moderately in the unionized industries, the labor organizations included only a small portion of the working population. Moreover, the collective agreements that were made did not necessarily apply to an entire union. They often were negotiated between an employer and a small group of workers in his plant, or between an employer and certain members of a union. Although there is no available record of the total number of collective agree ments, those that resulted from the settlement of industrial disputes in 1939 and 1940 were reported by the Philippines Department of Labor. During those years, 214 such agreements, affecting 19,725 workers, were concluded. Conciliation and Arbitration A law of 1938 related to disputes between landlords and tenants as well as to those between employers and employees. When no settle ment could be reached by the parties, special Government mediators were to invoke mediation and conciliation procedures. If this step failed, arbitration was the next resort—if the disputants were agree able to the idea. In that event, a board was created, which consisted of one of the special mediators as chairman, one representative of the landlords or employers, and one chosen by the tenants or employees. Board findings were to be submitted to the Court of First Instance of the Province in which the controversy arose, and the court was https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 784 MONTHLY LABOR REVIEW— APRIL 1945 given 10 days in which to render its decision. Appeal could be made to the Philippine Supreme Court. State action in industrial disputes was also provided for by an act of 1936, which created the Court of Industrial Relations. The presidentially appointed judges of this court were to be assisted by local boards of inquiry composed of not more than 6 members each from lists prepared by employer and employees, and not more than 3 ex perts in sociology, welfare work, labor problems, or industrial and agricultural economics and administration. Cases to be heard by the court had to be certified to it by the Philippine Department of Labor or by the party or parties concerned, and had to relate to such points as wages, hours, or conditions of work, involving more than 30 persons. Once a case had been submitted to the court—only after the failure of all efforts to bring about an extrajudicial accord—the parties involved were required to comply with all orders which the court issued. While a case was pending, the employer was not to hire substitute workers without permission of the court, and in the event of a strike, no strikebreakers were to be employed within 15 days after its incep tion. On the other hand, if a strike had not already occurred at the tune the case was taken by the court, employees were forbidden to resort to such action. Appeal from the court’s decision could be made to the Supreme Court. Labor Disputes From 1929 to 1940, strikes, threatened strikes, and lockouts that were registered in the Philippines totaled 900. The greatest number, 222, occurred in 1939, and involved 28,104 workers. Among causes for disputes, wages stood first, with 556 cases. Of the 900 industrial differences, 543 were settled in favor of the workers, 203 in favor of the employers, and 154 were referred to the Court of Industrial Relations. Labor disputes were on the increase prior to 1940, but in that year a noticeable drop occurred which may possibly be ex plained, in part, by a ruling of the Philippine Supreme Court. The Court held that workers did not have the right to strike; that the provisions of the Constitution for compulsory arbitration of labor disputes were for the purpose of avoiding strikes; and that the act creating the Court of Industrial Relations was intended to supply an “adequate instrumentality to forestall strikes.” COOPERATIVE MOVEMENT Cooperatives of the modern type have existed in the Philippines since early in this century, and were introduced from the States. The Philippine Government became interested and took the lead in pro moting and encouraging such associations. The principal types now found in the Commonwealth are, in order of the date of their intro duction, agricultural credit, farmers’ marketing, consumers’, indus trial, and credit. The Government has also encouraged the formation of private dealers’ cooperatives. In 1916, although the Bureau of Agriculture established agricul tural credit cooperatives for farmers, to help them get out of debt to their landlords and to the Chinese (who were the traders and who also controlled the transportation system), these organizations gradually https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 785 became inactive. The task of reviving the agricultural credit co operatives was delegated to the Bureau of Commerce in 1933. At the outbreak of World War II, the revitalized credit associations numbered 570 and were found in some 43 Provinces. They had a total membership of about 105,000 and a circulating capital of 3,300,000 pesos. The cooperative marketing movement was started in 1923, by the Bureau of Commerce and Industry. The Bureau’s efforts led to enactment of the cooperative marketing law of 1927, one of the chief purposes of which was to shorten the route of agricultural products between producer and consumer insofar as it could be done efficiently. The Bureau of Commerce and Industry was given supervision over cooperative marketing associations. Under the Bureau’s leadership, 185 such associations were registered from 1928 to 1940. Starting in January 1938, the Bureau of Commerce organized and promoted consumers’ cooperative associations and organizations of Filipino retailers for cooperative buying. Later, the Consumers Cooperative League of the Philippine Islands was formed. In 1940, consumers’ cooperative associations numbered 68, with a total mem bership of some 7,000. These cooperatives were largely urban, and were found especially in Manila and in Cavite. Among the more recent types of cooperatives organized by the Government were the Cooperative Association of Shoe Manufac turers in Mariguina, Rizal ; the associations among the abacà planters in the Bicol region; the Buena vista Cooperative Marketing Associa tion, composed of farmers and tenants of the Buenavista estate in the Province of Bulacan; and the various cooperatives organized by the Land Settlement Administration in Mindanao. There is a co operative college in the Philippines—Union College of Manila, established under the auspices of the Evangelical churches of the Philippines. The members of the college association elect the board of directors of the college, and they in turn elect the administrative officers of the institution. The Emmanuel Cooperative Hospital, the first medical cooperative in the Islands, was opened in Manila in 1936. Its primary object was to enable families of moderate means to obtain the best available medical care at rates they could afford, and to have access to medical advice at any time. The following reductions on operations and treatments were allowed to members: 10 percent on amounts less than 100 pesos, 15 percent on amounts from 100 to 150 pesos, and 20 percent on those of more than 150 pesos. Likewise, for members, bed fees were 15 percent less than the average in other hospitals of the same class. By 1940, the membership consisted of 644 families. The first credit union in the Philippines was organized by a mis sionary from the United States in 1938. By 1941, there were 23 parish credit unions with 1,800 members, 40,000 pesos in share capi tal, and 60,000 pesos outstanding in loans to members. There were also 2 educational credit unions, 2 Government employees’ credit unions, and 2 which had been formed by the members of consumers’ cooperatives. SOCIAL INSURANCE The economic, political, and social situation in the Philippines has not been conducive to the rapid growth of social insurance in many of its occidental forms. Traditionally, each family group has per https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 786 MONTHLY LABOR REVIEW— APRIL 194 5 formed those functions associated in western countries with pensions, insurance, and care of the aged and the sick. Consequently, the State confined itself to enacting laws governing accident compensa tion in industrial and agricultural matters and to providing pensions for certain classes of the population. Consideration of the possible effects of Philippine independence upon the economy and upon the Government revenue of the Islands has worked against the creation of social-insurance organizations dependent upon State support. According to reliable authority, the Government has preferred to postpone the enactment of such legislation until the national income has become adjusted to the post-independence influence of the world market. Workmen’s compensation.—By 1939, employers of 30 or more workers in any industrial, commercial, or agricultural establishment were required by law to provide free emergency medical and hospital facilities for those employees whose monthly salary or wage did not exceed 50 pesos. In the event of personal injury, illness, or death arising out of performance of duty, the employer paid compensation or death benefits, and provided the required medical, surgical, and hospital services and supplies during disability. Legislation required the employer, in event of the employee’s total disability, to pay compensation—after the first 7 days—of from 4 to 18 pesos, for not more than 208 weeks. Partial disability called for payment of up to 10 pesos weekly for not longer than 208 weeks. In the event of death resulting from the occupational activity of the employee, the employer was obligated to pay up to a maximum of 100 pesos for burial expenses, and pensions ranging from 25 to 50 percent of the average weekly wages of the deceased, to the latter’s surviving dependents. These pension payments were to continue for not more than 208 weeks. Pensions for public employees.—During the period 1916-29, the Philippine Government established pensions for certain classes of persons. Thus, teachers after 20 years of service were entitled to pensions ranging from 40 to 80 percent of their average compensation for the 3 years preceding retirement, but not to exceed 6,000 pesos. The fund from which these payments were made was supported by a contribution of 3 percent of the teachers’ monthly basic salaries and an annual State appropriation equal to 3 percent of the total annual appropriation for teachers’ salaries. Under the pension law of 1924, any officer or enlisted man of the Philippine Constabulary, 55 years of age and with 20 or more years of service, was entitled to an annual pension equal to 2.5 percent of the total pay received by him during his period of service, but not exceeding 75 percent of his annual salary at the time of his retirement. In 1924, the Government also provided a contributory pension plan for certain officers and employees of the Public Health Service, after 20 or more years of service and after completion of 10 full years’ contribution at the rate of 3 percent of salary. Such employees were to receive an annual pension equal to 2.5 percent of their salary, at time of retirement, for each year of active service, but not exceeding 75 percent of such salary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 787 Labor Conditions Under Japanese Occupation Because of Japanese control and censorship policies, very little detailed information is available regarding labor conditions in the Philippines since the Japanese occupation of the Islands early in 1942. However, a fairly good picture of the major trends in matters affecting labor can be formed from certain confidential sources and from a judicious interpretation of various Japanese-controlled broadcasts. GENERAL EFFECTS OF INVASION The Japanese occupation disrupted the Philippine economy severely. All Americans and nationals of other belligerent countries were in terned. Practically all business houses were closed. In addition, factory operation in the occupied areas was brought to a standstill because the invaders either stripped the factories of their supply of oils and basic m aterials or failed to grant perm its enabling the mill owners to obtain necessary materials. F urther economic dislocation resulted from the shift of emphasis, under the Japanese, among agri culture, mining, and m anufacturing industries. Sugar production (one of the leading industries of the Philippines) was relegated to the background and its place was taken by the cultivation of cotton. The mining of copper became more im portant than gold mining. The soap, tobacco, and liquid-fuel industries were stim ulated. Another unsettling factor of prime importance was the introduc tion of paper money. Japanese military notes (which were placed in circulation to an amount of 100,000,000 to 150,000,000 pesos) were decreed to be the legal tender of the Philippines, although the Philip pine peso was also allowed to circulate. The Japanese military peso has had a greatly depreciated value in purchasing power, in terms of the former Philippine peso (valued at 50 cents in United States money). EMPLOYMENT The invasion’s effects on labor were first evident in the field of employment. The stoppage of industry and changes in agricultural production resulted in throwing large numbers of persons out of work. As a result, m any government agencies, and various projects, were established by the Japanese to provide work. Relief projects, includ ing work on m ilitary construction and such industries as toothbrush m anufacture, were inaugurated. The authorities transferred from Japan to the Philippines machinery for the textile industry, and this action, according to the Japanese, provided considerable employment in the cotton-raising areas. In addition, m any Filipino prisoners of war were inducted into the Philippine Constabulary. In m any instances, when urban employment could not be found, the unem ployed were transported back to their original homes in the Provinces. Some idea of the extent of the employment problem can be gained from the fact th a t two agencies were said by the Japanese to have placed more than 117,000 persons during the period from the middle of 1942 to September 1943. There are many indications th a t these figures included not only the persons who were seeking employment, but also those who were forced to work. T h at the Japanese resorted https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 788 MONTHLY LABOR REVIEW---APRIL 194 5 to forced labor is evident from various sources, among them an item in the Manila Tribune of September 21, 1943, which stated that in the previous month more than 200 ex-soldiers and an equal number of war widows and orphans had been drafted into service in the relief projects. If employment was available, the Filipino was compelled to accept it. This practice was legalized in the constitution of the puppet Republic of the Philippines, which declared it to be the duty of every citizen to engage in a useful calling, occupation, or profession. WAGES AND HOURS It seems clear that it was a definite policy of Japan to reduce wage standards in the Philippines to the general level prevailing on the Continent of Asia. The Japanese reversed the wage and hour trend that the Philippine Commonwealth had inaugurated. Under the Commonwealth, a minimum daily wage of 1 peso in the Provinces and 1.25 pesos in Manila had been established, and the legal workday was 8 hours in length. The invaders repealed all laws which provided for minimum daily wages and maximum hours of labor. A maximum daily wage of 80 centavos for unskilled male workers was ordered for the city of Manila. In the Provinces the maximum was set at 64 centavos. Later (in July 1943), as a result of greatly increased living costs, the maximum wage for workers was raised to 1.30 pesos per day unless the employer provided meals. In that case, the wage was to be approximately 0.91 peso. It is known that the length of the workday was increased substan tially, both in private enterprise and in Government offices, but no data are available as to the exact number of hours per workday. For overtime, male workers in Manila were to receive time and an eighth. COST OF LIVING That the cost of living, by November 1943, was out of control, at least in Mamila, was indicated by statements made at that time by a radio commentator. Speaking from Manila, and alluding to the rise in prices, he was quoted as having said “ the main problem today is not how to live, but how to exist. This is what is happening to our middleclass people, and what the conditions of the poor people are is not difficult to imagine.” The Manila radio was, of course, Japanese controlled, and it is not clear how this statement escaped the usual censorship. Similar comments were made by an authoritative source late in 1943. It was stated that the position of workers and salaried employees was extremely bad. Even with increases dictated by the Government, the income of such persons was said to be insufficient to cover the cost of absolute necessaries. In the flourishing black market, by September 1943 the cost of living (measured in terms of the Japanese military peso) had increased to at least 5 times its pre-war level, while many commodities were priced at 10 times their pre-war prices. Attempts were made to control prices. The scale of rents in Manila was reduced, and all rents there were frozen at the lower level. Com modity after commodity was placed under “ control” at a fixed price; usually, the result was that such products became difficult to obtain. However, in the case of rice, which is the basis of the Philippine diet, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 789 the Japanese established both price control and rationing, and its distribution was placed under the control of the Filipino Rice Co., founded by the Military Administration. Later, the price of fish, the other principal food, was controlled, but in the meantime price increases of from 66% to 250 percent had already taken place. CONTROL OF LABOR As in other Axis-dominated countries, the Japanese placed all labor under the direct surveillance of the Government. Pre-invasion labor unions were outlawed, and all the activities generally associated with such organizations either were taken over by the authorities or were abolished. To take the place of the former unions and pave the way for centralized control of the labor force, a-“labor front”—the Central Labor Union— after the German model was created in Manila. COOPERATIVE MOVEMENT Im itating the Axis pattern employed in several other occupied lands, the Japanese m aintained the outward semblance of the Philipine cooperative movement. The cooperative framework, as it had existed under the Commonwealth, was continued and expanded, with the ad dition of Japanese technical and financial assistance b u t adapted to serve Japanese objectives. Cooperatives were encouraged in those lines in which increased production was especially desired by the m ilitary authorities. Thus, with the Japanese interested mainly in Philippine agriculture, by F ebruary 1944, the m ost numerous types of these organizations were the farm ers’ or producers’ cooperatives, of which there were 206, with a membership of some 87,000 farmers. Also, as a measure to gain the good will of the Filipinos, the Japanese encouraged cooperatives in retail businesses which formerly had been controlled by the Chinese. ♦ W orking C onditions and Cost of Living in Chile, 1 9 3 7 -4 4 1 ALTHOUGH employment conditions generally were satisfactory in Chile to the end of 1944, the Chilean Congress of that year considered a 6,600,000,000-peso public-works project to absorb post-war unem ployment, and in the autumn the General Labor Office released a study on possible unemployment after the war. Of 2,000 firms sur veyed by the Office, 24 reported that they expected to close down or decrease personnel when the war ends, the total of such estimated reductions in employment amounting to 16,000. Employment in the mining industry declined about 7 percent between July 1943 and July 1 D ata are from Chile, Dirección General de Estadística, Estadística Chilena (Santiago), vols 10, 12,14, 15, 16, and 17 (1937, 1939, 1941,.1942, 1943, and 1944); Censo industrial y comercial, año 1937, Santiago, 1939; Minería e industria, año 1938 (Santiago, 1940); Minería e industria, año 1939 (Valparaiso, 1942); Anuario de industria, año 1940, Valparaiso, 1943; Minería, años 1940 y 1941, Valparaiso (pp.68-70); Anuario de Comer cio Exterior, 1942, Santiago, 1944 (pp. xx-xxi, 136); Diario Oficial (Santiago), M ay 22, 1943; Muestras de Legislación Social Americana, Washington, Oficina de Información Obrera y Social, Unión Panamericana, 1943 (pp. 29-35); and report from Lee M . Hunsaker, United States vice consul at Concepción, December 6, 1944; and reports of the United States Embassy at Santiago, by Joel C. Hudson, April 24,1944, Sidney N . Milliken and Joel C. Hudson, October 23,1944; and Daniel L. Horowitz, attaché and labor reporting officer October 25, and December 5,19, 21, and 28,1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW— APRIL 194 5 790 1944, and discussion of the future of the copper and nitrate industries was appearing in the press. The Government’s figures on unemploy ment, which had reached an all-time low in 1942, increased in 1943 and 1944. Wages rose rapidly in the early 1940’s, as did also the cost of living. Employment and Wages 1937-43 Employment in the Chilean mining industry as a whole declined 13 percent from 1937 to 1943. The greatest increase (22.5 percent) was shown in coal mining, and copper mining increased its labor force by nearly 9 percent (table 1). Gold mining declined sharply and there was some decline in nitrates. In manufacturing, in all but 2 of the 10 industries for which data are available, the number of persons em ployed showed a rising trend, with some decreases in 1941 and 1942. During the 6-year period State railroad employment increased by 19.8 percent. Rapidly rising daily wages were shown in all of the 10 manufacturing industries. T able 1.— Workers and Wages in Certain Chilean Industries, 1937-43 1937 1938 1939 1940 1941 1942 1943 Industry Number of workers 68, 803 22, 390 18, 885 13, 518 405 13, 605 65, 487 20, 231 19, 395 13,909 432 11, 520 61, 837 19, 323 18, 674 14,416 485 8,939 62, 323 21, 383 18, 390 13, 758 417 8. 375 60, 506 19, 943 18, 327 14, 707 424 7,105 59,462 20, 672 19, 612 15, 634 296 3,248 59, 864 19, 949 20, 550 16,858 212 2,295 Selected manufacturing industries... ____ 17,914 Beer_______ . .. . . . _________ . 2, 466 Cement ... _ _. _ _ 1,484 Cotton goods_____________ ______ ____ 1, 664 Electricity________________ ________ 2,658 1,058 Gas, tar, and coke. ......... M atches__ . . _. . . . . . . . ____ 564 1,385 Paper and cardboard___ . . . . . . . . . . . . S u g a r ___ _ ... _____ . . . _ 1,179 Tobacco__ . . . . . . _______ _ _______ 1,572 Woolen goods_______ ________ . . . _ _ 3,884 19,456 2,412 1, 577 2, 762 2,656 1, 088 565 1, 655 1,228 1,815 3, 698 19, 645 2,417 1,664 2,900 2,646 970 560 1,554 1,369 1,441 4,124 22,093 2, 530 1,845 3, 043 3, 755 1, 238 655 1,710 1.664 1,340 4, 313 23, 606 2, 605 1,914 3, 373 4,623 1,339 600 1,784 1,588 1,329 4,451 22, 821 2, 457 1,850 3, 909 3, 578 1, 472 512 2, 051 1, 347 1, 086 4,559 22,814 2, 525 2, 000 4,423 3,281 1,425 508 1, 550 1,368 1,236 4, 498 16, 225 17,154 Mining industry______ ________ _ ------Nitrate mining_______ _ ___ Copper mining________ ______________ Coal mining______ ____ ____ _________ Iron mining. ... _ _ _ Gold mining, placer___________________ Railroads, State___ . ... ___________ . 14,834 17, 770 Average daily wages (in pesos) Selected manufacturing industries___ ____ Beer_____ ______ _____________________ Cement_______________ . ____ _____ _ Cotton goods______ _____ _ _ _______ Electricity___ _________________ ... . ____ Gas, tar, and coke__ . . . . . M atches____ . _____________ ______ Paper and cardboard___. . . . . . . ... . Sugar_________ _______ ______________ Tobacco____ ____________ _ Woolen goods_____________ ____ _______ 12. 60 11.40 18. 20 8.60 12. 90 16. 60 6. 90 18. 70 15. 40 8. 30 10.40 14. 35 12.80 22.00 11.08 14.18 17. 71 7. 62 21.78 16.51 8. 70 11.90 16. 61 14. 56 25.08 11. 34 16. 34 20.49 11.24 30. 25 17. 22 11.11 12.85 20. 20 17.46 28.95 13.83 19. 85 22.19 15.91 36. 63 20.86 11.88 17. 65 24. 98 19. 39 35. 85 17.65 25. 58 25. 08 15.80 39.13 30. 72 17. 64 23.02 32.67 25. 62 42.06 23.61 41.14 30.80 20. 00 46.70 36. 60 20.01 27.11 36. 35 30. 95 52.12 27.89 37.84 38. 23 25.47 54. 75 41.39 24. 53 32.09 The same rising trend that was evidenced in average daily wages took place in annual earnings as revealed by the industrial censuses. Average annual earnings for the various large industry groups are shown for the years 1938-40 in table 2, which also gives for the year 1937, the aggregate weekly pay rolls and employment for the 18,328 establishments covered. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 791 T a b l e 2.—Employment, Pay Rolls, and Average Annual Earnings in Chilean Industries in Specified Years Average annual earn ings 1937 Industry Number Number of estab of wage lish earners ments Amount of Aver age wpekly pay rolls weekly pay 1938 1939 1940 Total ___________________________ 18, 328 145,803 Pesos 12, 234, 226 Pesos 83.91 Pesos 3,933 Pesos 4,511 Pesos 5,192 Beverages________________ _____ . Chemicals___ ____ . ___________ . . Clothing__________________________ Food industries............................... ....... Glass_________ __________________ Hides and rubber.. . . . _____ . . . Metallurgy and mechanics______ . . Music and entertainm ent.. . . . ____ Paper and printing________________ Public utilities__________ : _________ Stone and earths. ________________ Textiles __________________ ____ Tobacco___ _____ . _ Woodworking________________ . . . 330 8G0 2, 657 4, 732 36 3,027 3, 427 31 700 453 393 372 23 1,287 3, 258 7,932 9, 474 24,126 2, 773 12,369 18,938 330 8,181 29,176 5,662 14, 410 1,757 7, 417 197, 554 438, 959 453, 718 1, 740,824 184, 546 750, 956 1, 708, 563 17, 731 778,026 4,025,136 478,339 895, 554 86,611 477, 709 60. 64 55. 34 47. 89 72. 16 66. 55 60. 71 90.22 53.73 95. 10 137. 96 84. 48 62.15 49.29 64. 41 3,661 3, 430 2, 742 4,286 3.131 3, 215 4,066 3, 946 5, 675 5,019 4, 566 3, 623 3,007 3,146 3,971 4, 018 3,299 4, 623 3, 407 3,992 4, 976 4, 984 6, 901 6,178 4,935 3,910 4, 372 3, 633 4, 587 4, 565 3, 790 5,302 4, 173 4, 982 5, 711 5, 397 8, 259 6, 975 5, 666 4, 322 5, 270 3,970 The nitrate industry.—A recent census of the Chilean nitrate in dustry showed that it supported, as of December 31, 1943, a total of 64,714 persons, or slightly less than 1.3 percent of the Nation’s popula tion, and that in 1942 it provided 12.8 percent of the total value of Chilean exports. Average employment in the industry in 1943 was 19,949 persons. The average for the first half of 1944 was 16,872. In the nitrate, as in the copper industry, however, the economic importance of the industry is greater than the numbers employed indicate. In 1942 exports of nitrate and of electrolytic copper in bars constituted 50 percent of the value of all exports from Chile. The number of establishments, operating and inactive, and total numbers of salaried employees and wage earners and of their depend ents supported by the nitrate industry of Chile, as of December 31, 1943, are shown by Provinces, in table 3. The average monthly salary in the nitrate industry in 1941, accord ing to one source, was 1,439.00 pesos, and the average daily wage 25.46 pesos—rates which represented increases of 5.0 and 17.2 percent over the rates of 1939. By 1942 the increases above 1939 were 56.6 and 48.0 percent, respectively. T a b l e 3 .— Total Numbers of Employees in Chilean Nitrate Plants, and Their Dependents as of December 31, 1943, by Provinces F mploymerIt N um ber of estab lish ments Total popu lation reported Total all establishments ____ . . . _ All operating establishments__________ All inactive establishments. ________ 25 18 7 64, 714 62. 920 1, 794 Tarapaea___________________________ — Operating__ _ . . __________ _____ Inactive_______________________ ____ Antofagasta------------ -------------------Operating________ . . . . . . . ________ Inactive_____ _______________________ 17 12 5 8 6 2 29, 051 28, 124 927 35, 663 34, 796 867 Province 6 3 6 3 7 2 — 45 -7 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Salaried employ ees Wage earners Depend ents of employ ees 20, 852 20, 131 721 2,181 2.117 64 18, 671 18, 014 657 43, 862 42, 789 1, 073 9, 538 9, 173 365 11, 314 10, 958 356 710 684 26 1, 471 1, 433 38 8,828 8, 489 339 9, 843 9,525 318 19, 513 18, 951 562 24, 349 23, 838 511 Total 792 MONTHLY LABOR REVIEW— APRIL 1945 Coyper industry.—The copper industry of Chile employed about 27,000 persons in 1943, with a pay roll of 489,000,000 pesos. The daily wage ranged from 20.00 to 68.00 pesos and averaged 49.50 pesos. In 1943 the copper industry employed 3.0 percent more wage earners than the nitrate, the next largest employer in the extractive industries. Table 4 shows the numbers of salaried employees and workers employed in the Chilean copper industry from 1937 to 1943. T a b l e 4 . —Employment in the Copper Industry in Chile, 1937-43 Y ear Salaried employees Total number Total For of workers num Chile ans eign ber ers 1937___________________________________ 22,020 3,135 3,010 1938___________________________________ 22,815 3, 421 3, 282 1939___________________________________ 22,196 3, 522 3, 391 1940___________________________________ 21, 943 3, 553 3,433 1941___________________________________ 21, 954 3, 627 3, 512 1942_________________ _____ ____________ 23, 502 3,890 3, 762 1943___________________________________ i 23,597 i 4, 047 3, 936 125 139 131 120 115 128 121 Wage earners Total num ber M etal Trans lurgical Mines porta tion plants 18,885 19, 394 18, 674 18, 390 18, 327 19, 612 20, 550 11, 315 11, 945 11,562 11,443 11,159 12, 284 12, 764 7,013 6,915 6,567 6, 438 6, 654 6, 738 7,147 557 534 545 509 514 590 639 i N ot the exact sum of items but as shown in source. The total pay roll for wage earners in the copper industry in 1943, according to one source (which places employment figures slightly above those in table 4), was 343,079,355 pesos. In a few regions the average daily wage was below 30 pesos, but elsewhere it ranged from 31 to 68 pesos. Payments to salaried employees amounted to 146,169,341 pesos, or about one-third of the total pay roll; these workers constituted about one-sixth of all persons employed in the industry. Unemployment in Chile The annual average of unemployment in Chile, as recorded by the General Labor Office, dropped from 9,416 in 1939 to 2,523 in 1942, but rose to 3,620 in 1943, and to 4,060 by November 1944. In the latter month, the percentage of applicants placed was 24.7, as com pared with 26.9 in October and 28.2 in November 1943. Unemployment statistics for Chile are compiled from records of work applications and placements in the offices of the Employment Department of the General Labor Office in Santiago and Valparaiso and from records in the offices of the ]abor inspectors in the Depart ments and Provinces. Although such records do not measure all unemployment, especially short-term unemployment, they do indicate trends over a period of time. Table 5 shows the number of applicants for work registered at the Government labor exchanges and the number of placements for the years 1932-43 and the months of 1944, by employment groups. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EMPLOYMENT CONDITIONS 793 T a b l e 5 . —Applications and Placements of Workers, Reported by Public Employment Offices in Chile, 1932-44 Number of applications Period Total 1932______ _______________ 107, 296 1933______________________ 71, 805 1934______________________ 30. 055 1935______________________ 10, 673 1936______________________ 6, 474 1937______________________ 3, 203 1938_________ ____________ 4,578 1939______________ ____ 9.416 1940______________________ 8, 551 1941______________________ 4,117 1942______________________ 2,523 1943______________________ 3, 620 1944: 4,175 January ____________ February_____________ 4,441 M arch... _ . 4,633 April. _______________ 4,662 M ay_________________ 4,667 June_________________ 4, 738 July------------------------ 4,480 August_______________ 4,310 September____________ 4, 094 October______________ 4, 194 November. __________ 4,060 Number of placements Wage earn ers Sal Do- aried mestic Total em em ployees ployees 86, 954 51, 957 20, 510 7, 181 4,836 2. 455 2, 233 4,951 4,876 2, 193 1, 011 1,462 15,162 14, 392 7,988 3, 058 1,374 520 1, 968 4, 246 3,289 1, 598 1.189 1,791 5,180 5,456 ■1, 557 434 264 228 377 219 386 326 323 367 1, 214 1,565 1, 653 1, 703 1, 870 1, 807 1,499 1, 384 1, 288 1, 323 1,243 2, 624 2, 584 2.696 2,683 2,526 2, 693 2, 729 2.689 2,613 2, 659 2,614 337 292 284 276 271 238 252 237 193 212 203 Per cent of appli cations Wage earn ers 4,765 5,401 3,495 1, 200 1, 539 900 1, 100 1, 093 1,243 906 665 867 4.4 7.5 11.6 11.2 23.8 28. 1 24.0 11.6 14.5 22.0 26.4 24.0 4,572 5.001 3, 078 1, 014 1. 279 740 918 692 745 514 321 420 30 180 211 30 110 39 18 285 434 320 255 342 163 220 206 156 150 121 164 116 64 72 89 105 1,128 961 1. 103 1, 293 1, 092 1, 297 1, 085 1.155 1, 006 1,129 1, 002 27.0 21.6 23.8 27.7 23.4 27.4 24.2 26.8 24.6 26.9 24.7 398 330 428 409 481 654 423 475 439 542 424 598 523 ■ 584 774 510 563 576 578 508 493 504 132 108 91 Sal Do aried mestic em em. ployees ployees no 101 80 86 102 59 94 74 After 1932 when the average number of applicants for work totaled 107,296, the average dropped annually by numbers ranging from 40,000 to 3,000 until in 1937 it was only 3,203. In 1942 registered unemployed averaged 2,523, a decrease of 21.2 percent from the figures of 1937. The average for 1943 was 3,620, and for the first 11 months of 1944 it was 4,408. In November 1944, salaried employees made 64.4 percent of all applications at the Government offices and received 50.3 percent of all placements. Cost of Living of Worker's Family in Santiago The cost of living of a workers’ family of 4 in Santiago, as recorded by the General Statistics Office, increased by 8.2 percent in the first 6 months of 1944 and by 12.3 percent in the following 4 months. Though the general index for October 1944 was 18.6 percent higher than that for October 1943, the greatest increase (25.4 percent) from one October to the next since the outbreak of World War II occurred from 1941 to 1942. The general index, which stood at 193.0 (1928=100) in October 1939, had reached 436.1 by October 1944. By December it had dropped to 412.7. Indexes of cost of living from 1939 to October 1944 for a worker’s family in Santiago, Chile, are shown in table 6. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 794 MONTHLY LABOR REVIEW— APRIL 1945 T a b l e 6.— Indexes of Cost of Living of Worker's Family in Santiago, 1939-September 1944 [1928 = 100] All items Period 1939___________________________________ 1940___________________________________ 1941___ _______________________________ 1942__________________________________ 1943__________________________________ 1944: January_______ _________________ M a rc h ____________ _ _ ------- -J u n e _____ _____________________ S e p tem b e r..__ ______ . . . . October_____ _ . . ______ _ . . N ovem ber.. _ _ . . . ____ ______ December_______ _________ _______ Food Housing Heat and Clothing light Miscel laneous 186.7 210.3 242.3 304.3 353.9 210.4 244.8 280.6 366.7 433.7 157.7 171.3 184. 1 224.8 246.7 162.6 181.9 218.1 252.3 292.1 199.9 218.3 277.5 350.4 395.6 146.1 155.8 170.0 182.6 225.4 364.5 367.9 388.2 419.9 436.1 435.5 412.7 438.7 441.7 442.3 504.1 538.8 524.4 470. 6 249.9 258.0 266.2 266.2 266.2 266.2 266.2 286.9 292.5 313.3 317.2 315.7 316.5 314,2 418.8 418.8 523.0 533.3 536.4 574.9 586.1 262.2 261.8 271.4 288.4 289.8 289.8 289.8 The index on which the above figures are based was constructed in 1928, to measure the expenditures of a workingman’s family of two adults and two children under 10 years of age (or of three adults), with an income of 600 pesos per month. The Commissariat General of Subsistence and Prices raised ceiling prices on certain living essentials in the autumn of 1944, an action which was followed by popular protests and threatened strikes by the butchers. The price-control authorities then established a National Food Council in the Ministry of Economy, to operate as a planning agency, and the Cabinet decided to place all departments dealing with food prices under the control of the Minister of Economy. W orking C onditions in the U nited K ingdom in 1944 CONTINUED need of industry for manpower in the United Kingdom resulted in a further reduction in the number of unemployed persons during 1944. Other notable developments in the labor situation were the increases in wage rates, cost of living, and industrial disputes. These facts are disclosed in a year-end survey by the Ministry of Labor and National Service.1 Unemployment The number of persons registered with employment offices as wholly unemployed averaged 85,392 in 1944, those persons classified as un suitable for ordinary employment being excluded. Persons tempo rarily out of work totaled 2,332 and unemployed casual workers 1,865 for the year. Volume of unemployment in each of these three cate gories was lower than in any previous war year, as shown in table 1, and much lower than in any year for which similar statistics are available. 1 Ministry of Labor Gazette (London), January 1945 (pp. 7-11). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 795 EMPLOYMENT CONDITIONS T a b l e 1.—Number of Unemployed Persons Registered With Employment Offices in the United Kingdom, 1939—44 Average number of— Year W holly unemployed 1939_______________________________________________ 1940_______________________________________________ 1941_________________________________________ . 1942_______________________________________________ 1943 i ______________________________________________ 19441______________________________________________ 1, 308, 212 829, 458 314, 507 a 125,311 a 93,408 a 85, 392 Temporarily out of work Unemployed casual workers 220,990 165,962 62,124 8,615 2, 825 2,332 60, 599 39, 252 14, 890 5, 346 2,842 1,865 1 For 1943 and 1944 the figures are averages for only 4 dates, at quarterly intervals, instead of for 12 dates at monthly intervals. aThe total excludes the number of persons classified as unsuitable for ordinary employment. Level of W age Rates In most industries for which data on wage rates are compiled by the Ministry, the rates continued to rise during the year. For example, agricultural labor in Scotland benefited from an advance in the minimum weekly wage rate from 60s. to 65s., under the Agricul tural Wages Regulation Act. Increases in pay were authorized for other classes of farm labor in Scotland and for agricultural labor in Northern Ireland. No change occurred in the statutory minimum in England and Wales, the minimum weekly rate for men engaged as ordinary agricultural workers having been raised to 65s. in December 1943. By an award issued in January 1944, minimum wages of men in the coal industry were raised from 83s. to 100s. a week for under ground workers, and from 78s. to 90s. for surface workers. In the cotton-textile industry, a general advance of 4s. weekly for those employed in adult occupations and 2s. a week for juvenile workers was authorized in January. For all industries and services concerning which statistics are col lected by the Ministry of Labor, the estimated net weekly increase in wages of workers averaged £1,870,000 in 1944, affecting 8,133,000 individuals. Certain large groups, notably agricultural workers, are not covered by the series from which the foregoing statistics were taken and therefore the totals may not be regarded as affording more than a general indication of the movement in wage rates. However, during the war period, 1939-44, the amounts of increase in weekly rates of wages were much greater than in any previous year between 1925 and 1938. Cost of Living The general level of working-class costs of living rose in 1944 to an index of 201 (based on July 1914 as 100) as compared with an average of 199 in 1943. Rents (including local taxes) remained stable in the 2 years, clothing declined, and costs of food, fuel and light, and other items advanced. The index numbers of living costs are shown by items in table 2 for the years 1939 through 1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 796 MONTHLY REVIEW— APRIL 1945 labor T a b l e 2 . — Index of Working-Class Cost of Living in the United Kingdom, 1939-44 Indexes (July 1914=100) of cost of— Year All items 1939______________________ ____ ____ 1940_______ ________ __ _________________ ________ 1941__ 1942___________________________________ 1943_____ _________________________ 1944___ 158 184 199 200 199 201 Rent (in cluding local taxes) Food 141 164 168 161 166 168 162 163 164 164 164 164 Cloth ing Fuel and light 214 285 369 399 351 345 184 210 227 235 244 256 Other items 179 208 227 255 282 291 Variation was slight in tlie composite cost-of-living index from 1941 through 1944, as rises in certain groups were counteracted by reduc tions in others. In the course of the entire war period through 1944, the advances in costs have been greatest for clothing. The downward trend in clothing costs, reflected in the reduction of the index from 399 in 1942 to 351 in 1943, was caused chiefly by the replacement of “ nonutility” clothing by “ utility” clothing which is tax exempt. In 1944, this process of substitution had ceased in.large part and the prices of such nonutility clothing as was on sale did not change radically, and the index dropped only 6 points during the year to 345. Industrial Disputes Industrial disputes in the United Kingdom in 1944 caused more stoppages of work and involved a larger number of workers and days of idleness than in any previous year of the war. Table 3 summarizes the statistics for the years 1939 to 1944. T a b l e 3. — Industrial Disputes in the United Kingdom, 1939-44 Stoppages beginning in year Year Number 1939_______________ : ___________ _______________ _ 1940 _________________________ .. 1941_______________________________ 1942___________________________________ 1943__________________ ____ _____ 1944.___ ____ ___________________ 940 922 1,251 1,303 1,785 2,185 Number of workers involved 337,000 299,000 360,000 457,000 557,000 J 820,000 Man-days of idleness, all stoppages 1,360,000 940,000 1,080,000 1, 530,000 1,810,000 3, 710,000 1 In addition, about 5,000 workers were involved in stoppages which began in 1943 and continued into 1944. After reaching a low point in 1940, industrial disputes increased in 1941 and continued upward through 1944, when the aggregate number of days of idleness caused ,by disputes was greater than in any year since 1932. The principal disputes in 1944 were in the coal industry, which accounted for over half of the stoppages and twothirds of the aggregate number of days of idleness; and in the metal, engineering, and shipbuilding industries which were responsible for more than a fourth of the total number of stoppages and of the man-days idle. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ Wartime Policies R uling on " F rin g e ” Wage A djustm ents THE Director of Economic Stabilization issued a directive to the National War Labor Board placing tight ceilings on major ‘‘fringe” adjustments,1or, in other words, on such matters as shift differentials, reclassifications and job evaluations, merit and automatic progression plans, and vacations. Previously, the Director had stated 2 that his office was working with the National War Labor Board to fashion a better means to attain the objective of the President’s “hold the line” order (Executive Order No. 9328, April 8, 1943). That order had established the policy of preventing inflation by stringent controls on most wage and price adjustments. Moreover, according to the Office of Economic Stabilization, in the particular matter of “fringe” wage adjustment, it established an objective in regard to the relation ship between wages and prices, by providing that reasonable “fringe” wage adjustments could be made only if they did not result in increases in prices. In issuing this latest directive, the Director of Economic Stabiliza tion stated that previously “there were no fixed ceilings on ‘fringe’ wage adjustments, but the price prohibition prevented or limited such adjustments in certain cases.” In emphasizing the price consequences in this type of case, the Executive order permitted some unevenness and instability in wage adjustments and it was therefore possible for some workers to receive wage adjustments that others could not receive because of the circumstances of their respective employer’s earnings. The present directive will accomplish the stabilization objective of the President’s order “by setting definite, firm ceilings on these fringe increases in all wage cases.” * * * In doing th is, we are following th e policy w hich has been th e practice in regard to basic w age-rate a d ju stm en ts. Basic w age-rate increases u n d er th e su b sta n d a rd criterion, th e “ L ittle S teel” form ula, an d th e m inim um sound and te ste d going ra te principle, are all controlled by definite stan d ard s. In regard to m inor “ fringe” a d ju stm e n ts th ere has n o t been sufficient experience o r th e problem s occur only in isolated an d special circum stances, so th a t a t p resen t it is n o t proper or wise to establish fixed ceilings. A ccordingly, these “fringe” a d ju stm en ts rem ain su b ject to th e price proh ib itio n in th e P re sid e n t’s E xecutive order. T he m ajo r “fringe” wage a d ju stm en ts, how ever, are covered by th is directive. 1 Office of Economic Stabilization, Press release (72120), March 8,1945. 2 idem , Press release'fOWI 4045), February 12,1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 797 798 MONTHLY LABOR REVIEW--- APRIL 1945 W artim e Salary C ontrol in C an ad a1 UNDER an amendment of December 21, 1944 (P. C. 9505), the war time control on salaries in Canada was eased to permit correction of “gross inequities,” thereby making the restrictions more similar in principle to wage control. The order stated that, because of the greater difficulties in defining and classifying established salary posi tions, wartime salary control proved more severe in its restriction than were the various measures controlling wages. In addition, persons subject to salary control were, in a number of cases, receiving only as much as and, in some instances, less than the wage earners whom they were supervising. The Minister of National Revenue was therefore authorized to permit specified increases. Under the amendment, all persons earning less than $250 per month were in cluded under the wage-control order. The December 1944 amendment provided for three major changes. An adjustment may be authorized in the salaries paid to supervisors of wage earners who have received a general increase in wage rates to the extent that the wage-salary relationship resulting from such in crease constitutes a gross inequity. Increases also may be authorized by the Minister of National Revenue within established ranges of salaries for the position which the official occupies. Finally, the Minister may in exceptional circumstances permit increases in salaries paid to individuals whose duties and responsibilities have changed substantially but who have not received formal promotions. P. C. 9505 amended an order of February 27, 1942 (P. C. 1549), which consolidated and amended previous salary-control orders.2 Under the 1942 controls as amended prior to December 1944, salaries (including those paid to directors) were frozen at the rates established and payable before November 7, 1941. If an individual was not em ployed before that date, the rate must be that of employees performing comparable work in the establishment or (if no such persons were employed) in a similar business; such new employees were to receive no increase above the rate first paid to them. A gratuity or share in profits which was provided for as a contractual right might be paid at the same percentage fixed for the position prior to November 7, 1941. Coverage of the 1942 order as amended included persons receiving $250 monthly or more. Before P. C. 9505 was issued, however, the War Labor Board decided whether persons receiving from $195 to $250 per month were under the jurisdiction of the salary-control order or the wage-control order. Before the December 1944 amendment, increases could be authorized only for salaried officials receiving a promotion on or after January 1, 1941. However, a specified num ber of periodic increases might be paid to persons newly appointed or promoted if the policy of the estab lishment was not 'to pay the full salary immediately. To prevent serious interference with and loss of production in war industries, special exceptions were made for employers producing, repairing, or servicing munitions of war or ships. Such employers might grant 1 Data are from Canada, Proclamations and Orders in Council Relating to the War, volumes 5, 6, and 7, Ottawa, 1942; Canadian War Orders and Regulations, volume I of 1944 and IV of 1945, Ottawa, 1944 and 1945; and Montreal Gazette, December 23, 1944. 2 For details of the salary-control order of November 27, 1941 (P. C. 9298), see M onthly Labor Review for January 1942 (p. 52). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WARTIME POLICIES 799 one increase to officials whose duties had increased owing to new or additional production for war, to officials whose pay was unduly low in relation to the prevailing rate for similar services, to officials en gaged between January 1, 1940, and January 1, 1941, at a proba tionary rate, and to foreigners in jobs requiring special qualifications. Cost-of-living bonuses were eliminated by a March 1944 amendment (P. C. 79/1385), although such a bonus established before February 15, 1944, was to be incorporated into the salary; persons whose salaries were under $3,000 had been entitled to such bonuses, and, if an em ployer paid a cost-of-living bonus to wage earners receiving over $3,000 (exclusive of the bonus), he might also pay it to salaried workers receiving from $3,000 to $4,200. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FQR.VICTORY BUY UNITED STATES WAR BONDS AND STAMPS Post-War Reconstruction R econstruction P lanning in India 1 CONSIDERATION of post-war reconstruction in India was ad vanced in 1944 through the publication of plans by a group of indus trialists and also by organized labor. Although the Government did not outline a definite program, public bodies were making studies on specified post-war problems and were publishing reports on progress and urgent needs. All groups have been directing their efforts toward raising agricultural output and extending industrialization as a means of raising national income, standards of living, and social welfare. The differences in the plans are in regard to the relative parts to be played by the State and private enterprise; the proportions of labor and capital that should be devoted to individual branches of produc tion; and the length of time required to develop the program, taking financing arrangements into account. Administrative Organization Problems connected with post-war development of India were first dealt with by a reconstruction committee of the Executive Council of the Government of India, assisted by a number of other committees having strong nonofficial representation. Specially appointed devel opment officers drew up plans for electrification, industries, roads, irrigation, and agriculture. In the spring of 1944, a member was appointed to the Executive Council tfp form a Department for Plan ning and Development. Being free from responsibility for the ad ministration of other governmental policies, he was in a position to concentrate on post-war problems. Formation of the Department of Planning and Development was announced on June 1, 1944, its func tion being to coordinate the activities of various departments of the Indian Government and of the Provinces regarding post-war planning and reconstruction. Thu Department superseded the post-war recon struction committee. Its work is carried out by expert committees for agriculture, civil aviation, education, hydroelectric development, public health, scientific research, telecommunications, and transport. Progress of Governmental Planning The findings in a general survey of reconstruction problems were presented by the reconstruction committee (of the Executive i Data are from Government of India, Reconstruction Committee of Council, First Report on the Program of Reconstruction Planning, March 1, 1944; Great Britain, House of Commons, Debates, July 28, 1944; Inter national Labor Review (International Labor Office, Montreal), September and November 1944; People’s Plan for Economic Development of India (Indian Federation of Labor Post-War Reconstruction Com mittee, N ew Delhi, 1944); report from Clayton Lane, secretary in charge, Office of the Personal Represent ative of the President, N ew Delhi (No. 963); and Public Policy Digest (Washington), September 1944. 800 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POST-WAR RECONSTRUCTION 801 Council) in its first report, issued March 1, 1944. The committee stated that it was too early to estimate the exact form and magnitude of India’s post-war problems and that world conditions (not only those in India) complicate the task. Nevertheless, financial and other implications of post-war planning should be assessed in advance as far as possible. According to the committee, two sets of problems will exist after the war, namely those directly arising from hostilities and, more important, the long-term problem of raising living condi tions which is not directly connected with hostilities. Reference is made to the effect of the war in creating probably the largest volume of employment ever attained in India. Even if em ployment is not reduced, a shift of labor will be inevitable when peace is restored. To furnish adequate statistical information for resettling and reemploying ex-service and other personnel, data concerning skills, etc., have already been collected regarding individual servicemen and workers. A questionnaire has been issued to all industries to enable the Government to estimate their labor force (by skills) which will become surplus when war orders cease. From the situation these industrial reports will disclose, it is expected that the Government will be able to prepare plans for the suitable employment of as many of the surplus industrial and technical workers as possible. A plan to es tablish employment agencies in larger towns is under consideration; some offices are already functioning and assisting in placement. According to the reconstruction committee, governmental policy in disposing of surplus war goods is to be directed, as far as possible, toward insuring that such commodities will be used to make up serious shortages in the civilian market. The success of the plan will depend upon the closest cooperation between countries. Preparation is being made to insure the termination of contracts and the change over to peacetime production with maximum speed. Consideration of public utilities and public works was still in the general planning stage when the report was issued. For example, study was being made of the coordination of road and rail transport ; the development of national, provincial, and district highways; irrigation; electric power; town planning; and slum clearance. A questionnaire was sent to industrial and commercial associations in India and to local governments to obtain information on the exist ing structure of industrial organization. Meanwhile, to expedite the development of industry and trade, estimates of post-wTar require m ents of heavy plant and machinery have been requested for sub mission as soon as possible. The importance of scientific and indus trial research is fully appreciated, and plans for a broadened program are under way. Assistance to agriculture will require long-term planning and State provision for conserving resources and securing greater efficiency. India must provide adequate nutrition for a growing population. In setting the target, technological possibilities of improved agricultural production must be kept in view, the committee stated. Several committees are making factual surveys of public education and social services, and are to recommend reorganization and expan sion in these fields. At the time the reconstruction com m ittee’s re port was prepared it was believed th a t the broad policy regarding the development of social services would be decided before the close of hostilities. The problem of education was expected to be simpler https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 802 MONTHLY LABOR REVIEW— APRIL 194 5 than those concerning the other social services. An educational plan had been worked out, based on long study by the central advisory board of education. In the field of health, special groups have been formed to inquire into the general problem and certain of its phases. Plan of Private Industry- In January 1944, eight industrialists issued the Bombay plan (also called Tata after the Tata Iron & Steel Co., one of whose officers signed it). The plan calls for a 15-year program of economic de velopment involving an estimated capital expenditure of Rs. 100,000 million.2 Proposals are based on the assumption that the plan would be executed by a National Government and that the country would be treated as a single economic unit. In the opinion of the authors, en forcement should be gradual over three 5-year periods of increasing intensity. Emphasis should be placed on mobilizing national re sources, labor, capital goods, and managerial ability, giving priority to certain types of development, and avoiding undue strain on the national economy in the early stages. The stated aim of the plan is to double the per capita income in India within the 15-year period. Accomplishment of this, allowing for a 5-million increase in popula tion annually, would require tripling the existing aggregate national income. To obtain such a rise in national income, the industrialists propose that net agricultural output should be a little more than doubled and industrial output (in large and small industry) should be increased by five times the existing amount. During the initial stages of operation, primary attention should be given to establishing industries for the production of power and capital goods. However, the plan stresses that the manufacture of the most essential consumers’ goods should not be neglected. Consolidation of land holdings, dealing with rural indebtedness and soil erosion, and extension of areas under cultivation are proposed to improve the yield per acre and increase agricultural output. Development of electricity is a prerequisite for industrial expansion and agricultural reorganiza tion. The industrialists support a 50-percent rise in railway mileage and a 100-percent increase in road mileage in British India. Funds to meet total expenditures would be obtained from the following sources: Rs. 3,000 million from the mobilization of privately held wealth in India; Rs. 10,000 million from sterling securities accumulated during wartime; Rs. 6,000 million from favorable trade returns; Rs. 7,000 million from external loans; Rs. 40,000 million from savings; and Rs. 34,000 million by tlie$ issue of currency. Means of raising capital will be more clearly^ indicated when the plan is ready for execution. Early in 1945, the Bombay industrialists, with the exception of the member who had become the planning and development member of the Government of India, issued a second part of their plan in which it was attempted to solve questions of the distribution of income and to determine the role of the State in economic activity. Conceding that the existing system of free enterprise had failed to bring about satisfactory distribution, it was advocated that the system 2 Average exchange rate of the British Indian rupee in first 8 months of 1944=30.1 cents. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis POST-WAR RECONSTRUCTION 803 should be changed to the extent necessary to insure a minimum income essential for a reasonable standard of living for everyone and to correct gross inequalities. Use of the price mechanism wate advocated as the chief method for allocating productive resources, subject to the follow ing limitations: Minimum wages; “cheap money” ; ceiling on profits that will not remove the incentive to efficiency; and taxes that will remedy gross inequalities in income. Lack of employment being the major cause of poverty, measures were suggested for providing the maximum employment volume, namely by a comparatively low rate of capital intensification, the encouragement of small-scale industry, and the organization of industrial cooperatives. As the idleness of agricultural labor for from 3 to 6 months annually is a large source of unemployment, the industrialists proposed mixed farming, cultiva tion of more than one crop a year, and subsidiary employment such as weaving, etc., for agriculturists. Emphasis was placed on the attain ment of the desired ends gradually. This was particularly stressed with respect to the institution of basic minimum wages, with wellestablished industries making a beginning and gradually revising the rates until a reasonable standard is reached. The scheme presented does not offer complete security of income and freedom from want, even for industrial workers. Additional protection is therefore recom mended under a comprehensive social-insurance program. In the opinion of the industrialists, the gulf between capitalism and socialism is steadily narrowing, and future organization will be a combination of the two. To preserve the scope of individual enter prise while at the same time adequately safeguarding community interests, the State must take a positive stand in the administration of controls. Temporary controls suggested were the control of (1) production through the allocation of resources and the prevention of overproduction, (2) distribution through priorities in the release of raw materials, (3) consumption in the early stages by means of rationing, (4) investment to prevent inflation, (5) foreign trade and exchange with the idea of preventing the wastage of exchange and of protecting domestic industries, and (6) wages and working conditions. After full employment is achieved, the role of the State would be centered around the nature and scope of its ownership, control, and manage ment of economic enterprises. State control was considered more important than ownership or management, as legal ownership would lose some of its essential attributes under such control. Plan of Federation of Labor The plan advanced by the Indian Federation of Labor laid greater stress on agricultural and social reform than does that of the Bombay industrialists. The Federation proposes an expenditure of Rs. 150,000 million in 10 years. Progressive improvements in the standard of living of the people during the operation of the plan would bring about a rise in per capita income in agriculture from Rs. 29 during the first year of operation to Rs. 121 during the tenth year; for the urban popu lation the corresponding improvement is calculated at from Rs. 57 to Rs. 172 a year. The net improvement would be over 300 percent for the rural population and 200 percent for the urban. As the existing level of per capita income is much lower for rural than for urban dwellers, the gap between the two groups would be reduced by the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 804 MONTHLY LABOR REVIEW— APRIL 1945 faster rate of increase in income for the rural than for 'the urban population. Combining the two sets of figures, the Indian Federation of Labor stated that the average per capita income would be Rs. 33 in the first year and Rs. 128 in the tenth, representing a fourfold improve ment as a result of the plan. The agricultural output, it was stated, would be increased by 400 percent and industrial production by 600 percent. In combination with the development of social services for health, housing, and education, the plan would be the foundation for the cultural development of the people. As agriculture is the main pursuit of the Indian people, on which nearly 70 percent of the total depend for subsistence, it is expected to provide employment for a major portion of the population, whatever may be the industrial development in a 10-year period. Therefore, the Federation’s report stated agriculture must be made more produc tive. Suggested m easures are the nationalization of land to remove it from the jurisdiction of noncultivators; payment of rural indebted ness to free the people from usurers; extension of the area under cultivation; introduction of modern machinery and soil conservation; and provision of adequate fertilizers and improved seeds. The authors believed that the success of their plans for increasing pro ductivity could be aided materially by introducing a system of collective farms, to replace the tiny holdings. Special stress was placed on building up the consumer-goods indus tries, among which are listed textiles, leather goods, sugar, paper, drugs and chemicals, tobacco, oil, furniture, and glass. Enlargement of such production would necessitate a substantial increase and de velopment of the basic industries in the country. During the 10year plan, it was suggested th a t priority should be given to hydro electric power, mining and m etallurgy, iron and steel, heavy chemi cals, machinery and machine tools, cement, and railway engines and vehicles. In every case the new industries would be financed by the Government to insure the fullest return to the people; privately owned industries would be under public control. As the development of both agriculture and industry would lead to a large increase in the m ovem ent of goods between urban and rural areas, extended railway and other transportation facilities would be needed. The plan includes educational, housing, and health facilities. Total recommended expenditures spread over 10 years are: Rupees (in millions) T o ta l--------------------------------------------------------------- 150,000 A g ricu ltu re-----------------------------------------------------I n d u s try ---------------------------------------------------------C om m un icatio n s_______________________________ H e a lth ------------------------------------------------------------E d u c a tio n _____________________________________ H ousing----------------------------------------------------------- 29, 500 56, 000 15, 000 7 ’ 600 10, 400 3 l ’ 500 Those presenting the plan assumed that financing would be covered in large part by reinvesting most of the surplus accumulation from operations. Approximately 2 years, it was estimated, would be spent in preparatory planning. For 3 years after commencement of the 10-year plan, the initial capital expenditure would total Rs. 16,000 million; thereafter the operations would be self-sustaining. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Injuries In d u strial In ju ries in the F o u rth Q uarter of 1944 THE volume of work injuries in manufacturing declined sharply during the last quarter of 1944. In comparison with an average frequency of 19.4 disabling injuries per million employee-hours worked during the first 9 months of the year, the all-manufacturing injuryfrequency rate for October was 17.8. For November the rate was 16.8 and for December it was 15.9. As a result of this sharp decline at the end of the year, which appears to have some seasonal aspects, the preliminary all-manufacturing injury-frequency rate for the year 1944 was 18.8,1 as compared with the final average of 20.0 for the preceding year. Injury reports for the last 3 months of 1944 were received from over 11,400 manufacturing establishments. On the basis of these reports it is estimated that 54,600 manufacturing workers were dis abled by injuries experienced in the course of their employment during October, 51,000 in November, and 47,800 in December. The full cost of these injuries in terms of manpower cannot yet be com puted because many of the disabilities will continue far into the future. The immediate losses during the fourth quarter of 1944, however, may be estimated conservatively as equivalent to 3,068,000 man-days of productive effort. This manpower loss is as great as would arise from the withdrawal of 117,000 workers from productive activity for a full month. The fourth quarter decline in injury-frequency rates was quite general among the individual manufacturing industries surveyed. Practically all of the industry classifications showed some frequencyrate reduction, and 46 of the 89 listed groups recorded their lowest monthly rates of the year during this period. Three industries had their lowest rates of the year in October, 18 reached their lowest point in November, and 28 were lower in December than during any other month of the year. In contrast, however, there were seven industries which had their highest monthly rates of the year during the last quarter. Three of these industries—small-arms ammunition, motor vehicles, and military tanks—were war industries in which there had been some curtailment of production in the earlier part of the year. The urgent demand for greater production in these indus tries, as a result of changed military conditions in the latter part of the year, may have had some bearing upon the rise in their frequency rates. Two of the other industries which had higher rates in the last quarter of the year—confectionery and canning and preserving—are strongly affected by seasonal factors and their trend to higher frei Subject to revision on the basis of the more comprehensive annual survey now in progress. The injuryfrequency rate represents the average number of disabling injuries for each million employee-hours worked. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 805 806 MONTHLY LABOR REVIEW— APRIL 1945 quency rates m ay also reflect expanded activities toward the end of the year. There was no indication, however, th a t the industries which achieved lower frequency rates in the last quarter had had any curtailm ent in their activities. Although the 12-month cumulative frequency rates for the various industry classifications must be considered as preliminary rates for the year, subject to revision on the basis of the more comprehensive annual survey now in progress, they do serve as good indicators of the general level of safety conditions prevailing in each industry dur ing the period and permit a tentative evaluation of the 1944 accident records of the different industry groups. The lowest of the 87 listed 12-month frequency rates was 5.7 for the women’s clothing industry. The rates of the explosives industry (6.1) and the rayon and allied products (chemical) industry (6.6), however, were only slightly higher. Other industries with 12-month rates of less than 10 were small-arms ammunition (7.7), sighting and fire-control equipment (8.0), radios and phonographs (8.2), aircraft (8.9), iron and steel (9.4), and soap and glycerin (9.4). The highest of the recorded 12-month frequency rates for 1944 was 54.5 for the sawmill industry. The wooden-container industry also had a rate of over 50 (51.6), while five other industries had rates of over 40. These were plate fabrication and boiler-shop products (48.2), planing mills (46.0), foundries (42.9), enameling and galva nizing (41.3), and sheet-metal work (40.9). Despite the fact that the 12-month cumulative frequency rate for all-manufacturing industries in 1944 (18.8) was 6 percent lower than the 1943 annual rate, comparison between the 1944 rates for the indi vidual industries and their corresponding 1943 rates reveals no sig nificant general trend. Nine of the individual industries had pre liminary 1944 rates which were 5 or more frequency rate points lower than their 1943 annual rates, while 9 others had 1944 rates which were five or more points higher than their 1943 averages. Most important among the reductions, from the standpoint of their effect upon the total volume of injuries, were those achieved in the slaughter ing and meat-packing and the shipbuilding industries. It is pertinent to note, in this connection, that intensive safety campaigns were con ducted in both of these industries during 1944. In the slaughtering and meat-packing industry the safety drive was sponsored by the division of Labor Standards of the LTnited States Department of Labor and was conducted through the cooperation of the meat in dustry, the National Committee for the Conservation of Manpower in War Industries, various State agencies, and the insurance companies which write workmen’s compensation insurance. In the shipbuilding industry an average reduction of about 25 percent in the injuryfrequency rate, as compared with the preceding year, was achieved through the continuing safety program, sponsored by the United States Maritime Commission and the Navy Department. In contrast to these industries which had pronounced frequencyrate reductions during 1944, it is significant that the group of indus tries for which the more substantial frequency-rate increases were recorded in 1944 included three of the ordnance industries, i. e., https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 807 INDUSTRIAL INJURIES ammunition, 20-millimeters and over; small-arms; and miscellaneous ordnance and accessories. The almost even balance between increases and decreases in fre quency rates was also maintained in the group of industries for which less important changes were recorded. Twenty-two of the individual industries had 1944 preliminary rates which were from 1 to 5 fre quency-rate points lower than their 1943 averages and 21 industries had similar increases in their 1944 rates. No significant groupings were observed among the industries which registered these changes in their frequency rates, except that 15 of the 22 which showed improve ment during 1944 had 1943 rates of less than 20, while only 9 of the 21 which showed increases had 1943 rates of less than 20. Industrial Injury-Frequency R ates 1 for Selected Manufacturing Industries, Fourth Quarter of 1944, With Cumulative Rates for 1944 Industry » Chemical products: Chemicals, industrial- _ . Drugs, toiletries, and insecticides__ Explosives________________ Paints and varnishes____ Rayon and allied products (chemical) Soap and glycerin______ _____ Synthetic rubber____ N ot elsewhere classified.. Food products: Canning and preserving... ___ Confectionery_________ _ Distilleries__________ Flour, feed, and grain-mill products Slaughtering and meat packing_______ ____ N ot elsewhere classified______ . Iron and steel and their products: Bolts, nuts, washers, and rivets____________ Cutlery and edge tools________ ________ Enameling, galvanizing, e tc .. _ Fabricated structural steel___ _____ Forgings, iron and ste el.. _______ ___ . Foundries, iron and steel____ __________ Hardware.. _______ . Heating equipment, not elsewhere classified... Iron and s te e l... . . . . . ._ _. _ Plate fabrication and boiler-shop products___ Plumbers’ supplies_____________ Screws and screw-machine products........ Stamped and pressed metal products___ Steam fittings and apparatus_________ Tin cans and other tinware___ . . . . Tools, except edge tools__________ ____ Wire and wire products___________ . N ot elsewhere classified__________ . . . Leather and its products: Boots and shoes, other than rubber....... Leather___________________________ Lumber, lumber products, and furniture: Furniture, except metal___________________ Planing mills___ __________________ Sawmills__________________ . . . . Wooden containers___________ ____ ________ Not elsewhere classified___ ____ ___________ 6 3 6 3 7 2 — 45 -----------8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fourth quarter of 1944 Frequency rate N um Frequency rate for 3— ber of estab lish ments, Octo N o D e Fourth. vem cem quar Decem ber ber ber ber ter 1944 Cumu lative, Janu1943: aryAn Decem- nual 4 ber 1944 s 288 69 62 73 22 11 11 67 14.5 20.4 5.7 14.9 7. 1 8. 1 3.1 14.5 11.8 16.4 4.9 14. 5 6.0 10.7 1.0 14.4 12.4 17.1 3.9 15. 2 5.4 10.2 2.1 13.7 12.9 18.0 4.8 14.9 6.2 9.6 2.0 14.2 14. 8 19. 5 6.1 18. 2 6.6 9.4 (!) 12.5 18. 3 18. 5 5.3 19.0 10. 5 11. 4 («) 17.1 43 7 39 8 547 33 19.5 20.5 20.4 30.0 40.7 25.8 24.8 18.8 28.0 14. 6 33.2 21.3 35.0 17.0 16.0 16.9 36.6 28.8 25.4 18.8 21.3 20.8 36.8 25.3 25.7 17.1 (5) 22. 7 36.0 26.6 25.3 19.4 (!) 30. 2 47.6 31.2 35 32 12 97 138 521 33 48 192 96 15 70 230 51 18 60 143 268 23.3 28.4 37.7 29.1 36.6 44.2 16.9 32.8 8.6 35.4 16.1 24.0 21.5 27.5 14.3 26.4 21.9 21.8 22.1 23.8 35.5 27.1 36.8 39.1 13.9 30.9 8.3 30.9 16.4 18.4 22.6 20.1 12.8 23.1 21.4 20.9 17.7 24.5 38.9 26. 2 33.2 37.4 11.6 22.5 8.4 27.7 16.2 19.9 20.8 17.6 11.8 23.7 16.9 20.9 21.1 25.5 37.4 27.6 35.5 40.3 14.1 28.7 8.4 31.5 16. 2 20.8 21.6 21.7 13.0 24.4 20.1 21.2 27.5 26.6 41.3 33.5 35.4 42.9 18.2 30.8 9.4 48.2 17.8 24.3 32.4 24.2 17.7 25.7 22.6 26.8 21. 7 25.9 36.1 34.7 40.8 43.4 20.2 36.3 10.0 44.3 21.9 19.2 28.8 30.5 17.3 25.5 21.4 26.4 274 27 12.4 29.6 12.4 27.7 10.6 27.3 11.9 28.2 14.1 29.2 11.8 29.4 56 43 40 42 43 27.2 42.8 50. 6 46.9 34.5 35.1 36.8 54.7 35.6 36.1 21.2 33.8 50.2 43.2 37.6 27.9 37.9 51.8 41.9 36.0 27.7 46.0 54.5 51.6 39.3 27.0 44.2 58.4 48.8 37.1 808 MONTHLY LABOR REVIEW--- APRIL 194 5 Industrial Injury-Frequency R ates 1 for Selected Manufacturing Industries, Fourth Quarter of 1944, With Cumulative Rates for 1944—Continued Industry 2 Machinery (not transportation): Agricultural machinery and tractors— .......... Commercial and household machines -------Construction and mining machinery. __ __ . . Electrical equipment and supplies................ _. Engines and turbines. _ ______ _____ ._ Food-products machinery_________________ General industrial machinery. ____ ______ _ Machine shops, general_____ . . . ______. . . Metalworking machinery___ _ _____ ___ Special industry machinery, not elsewhere classified.. ____ . . ___ . ................. . Textile machinery___________ ___________ Paper and allied products: Paper______ _______ ____ _______________ Paper boxes and containers__ ___ _ Paper and pulp (integrated)_____ ________ Pulp_____________________________________ N ot elsewhere classified.. ______ _____ ._ Printing and publishing: Book and job_____________________________ Rubber and its products: Rubber boots and shoes____ _ _____ Rubber tires___ _ _____ _______ _______ N ot elsewhere classified___________________ Stone, clay, and glass products: Concrete, gypsum, and plaster products____ Glass_________________ ______________ . . . Pottery__________________________________ N ot elsewhere classified_____ _______ _ . . Textile and textile-mill products: Clothing, men’s ________ _________________ Clothing, women’s _____ _________________ Cotton goods.. ___ _____________ Dyeing and finishing.______ ______________ Knit goods_______ -._ __________ _______ Silk and rayon products, not elsewhere classified. ____________ _ ____ ____ _ Woolen goods. __ _______________________ N o t elsewhere classified________ _ _ _ Transportation equipment: Aircraft__________________________________ Aircraft parts . . ______________ __ Motor vehicles_____________ _____ _ _ .__ Motor-vehicle parts_________________ —_ Railroad equipment__________________ ____ Shipbuilding_____ _____________________ Ordnance and accessories: Ammunition, small-arms__________________ Ammunition, 20-mm. and over____ _____ . . Guns and relatedjequipment. . _____ _ Sighting and fire-control equipment ___ Small arms. . . . . . . . . --------- __ . . . _ _ Tank parts, m ilita r y ____________ _ _ ____ Tanks, military_____________________ ____ N ot elsewhere classified.. . _____ . . . _ _ ___ Miscellaneous manufacturing: Nonferrous metal products__________ ____ _ Radios and phonographs _.------- ---------------Sheet-metal work_________________________ N o t elsewhere classified. _____ _ .__ ------- Fourth quarter of 1944 Frequency rate Frequency rate for «— N um ber of estab lish | Fourth No De ments, vem cem quar Decem Octo ter ber ber ber ber 1944 Cumu lative, Janu1943: aryAn Decem- nual 4 ber 1944 3 42 47 108 536 50 22 615 186 613 23.0 19.4 26.6 11.0 8.8 32.9 21.2 16.6 16.3 23.6 16.1 23.6 9.2 8.8 36.9 21.1 14.6 14.2 24.0 10.3 25.4 9.1 8.9 32.2 17.6 15.3 13.2 23.5 15.2 25.2 9.8 8.8 33.9 20.0 15.5 14.6 22.8 18.6 27.4 10.6 11.4 32.3 22.6 20.9 17.3 19.9 18.0 29.5 10.9 18.2 27.2 23.0 25.3 19.2 79 10 24.9 12.3 23.0 16.2 26.5 8.9 24.8 12.4 24.1 21.0 24.6 14.6 266 381 98 23 41 25.5 20.3 22.9 35.6 19.3 31.3 20.9 21.0 28.4 18.4 26.5 20.5 24.1 29.9 16.3 27.8 20.6 22.7 31.3 18.0 29.7 24.8 25.3 35.1 20.5 31.5 22.7 25.5 32.6 26.9 41 9.7 8.2 8.6 8.8 11.0 10.5 11 35 89 19.8 16.3 20.2 23.3 15.7 18.2 12.0 13.2 17.6 18.4 15.1 18.7 13.8 14.7 17.3 10.7 14.5 19.7 108 33 32 75 31.5 18. 7 16.7 15.9 25.0 12.2 15.0 15.4 34.0 15.2 15. 1 20.1 30.1 15.4 15.6 17.0 35. 2 17.5 17.9 15.8 40.8 20.2 19.5 19.3 474 349 196 44 71 10.1 4.9 15.3 14.0 9.9 9.5 4.8 13.4 13.4 7.2 8.4 6.1 10.8 16.4 9.1 9.4 5.3 13.1 14.6 8.8 10.7 5.7 14.7 22.8 11.0 7.6 4.6 16.7 23.6 8.3 50 152 151 12.7 19.3 17.1 13.5 18.3 14.4 15.4 15.7 16.2 13.9 17.8 15.9 14.3 18.9 18.3 13.9 19.8 20.6 40 249 84 73 47 228 7.4 11.2 22.8 22.6 19.2 20.6 7.7 11. 1 20.7 25.9 19.2 20.5 6.4 10.1 18.6 20.2 17.1 19.6 7.2 10.8 20.6 22.9 18.6 20.3 8.9 12.3 14.4 25.4 22.0 23.7 9.7 11.7 13.6 22.0 25.0 31. 5 14 320 89 32 56 38 14 35 20.7 23.1 18.0 7.7 14.5 25.0 18.0 22.9 12.1 22.6 17.9 5.8 13.4 23.6 15. 1 23.6 16.2 21.8 15.7 6.0 11.5 21.4 18.8 21.2 16.4 22.5 17.2 6.5 13. 1 23.3 17.3 22.5 7.7 24.3 17.1 8.0 14.1 21.0 14.5 22.7 5. 1 19. 0 15.5 9.3 8. 6 16.2 12.2 14.0 501 188 41 361 23.3 7.4 34.4 11.3 22.4 7.0 37.2 10.1 20.3 6.5 29.3 10.9 22.0 7.0 33.7 10.8 26.0 8.2 40.9 14.4 25.0 7.9 26.5 14.2 1 The frequency rate represents the average number of disabling industrial injuries for each million em ployee-hours worked. 2 A few industries have been omitted from this table because the coverage for the month did not amount to 1,000,000 or more employee-hours worked. 3 Computed from all reports received for the month; not based on identical plants in successive months. 4 Based on comprehensive annual survey. ‘ N ot available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Social Security Increase in U nem ploym ent Benefits in G reat B rita in 1 INCREASES in unemployment-insurance benefits went into effect in Great Britain on November 2, 1944, by the terms of the new Unemployment Insurance (Increase of Benefit) Act. The new legis lation, which was presented to Parliament by the Government on September 27 and received Royal assent on October 26, 1944, was immediately put into force by order of the Minister of Labor and National Service. This new act is designed merely as an interim measure to increase benefits under the existing acts (1935-40) in the transition period from war to peace. It is not a substitute for the unemploymentinsurance provisions contained in the Government’s comprehensive proposals for an enlarged and unified system of social insurance (outlined in its White Paper issued late in September 1944 and sub sequently presented to Parliament).2 The latter plan was conditioned upon a peacetime economy and was to be brought into operation under a Minister of Social Insurance, who would be responsible for the legislative and other preliminary work necessary for gradually implementing so extensive a system. Shortly after the new Unem ployment Insurance (Increase of Benefit) Act went into effect, the Ministry of Social (“National”) Insurance3 was created, and Sir William Jowitt became Minister to the post he had been holding without portfolio. During the debates on the bill, it was reported that the increased rates of benefit provided for in the new measure could be met if unemployment did not exceed 8 percent, and that an increase above this average was not anticipated during the first 2 years of its opera tion; also that employment conditions during the war had resulted in a steady increase of the Unemployment Fund, which currently stood about £290,000,000.4 The increased benefit rates were there fore passed without increasing the existing rates of contribution, “taking into account the short-term nature” of the legislation. Increased Benefits Under the New Law The new measure retains the categories of persons eligible for benefit under existing Unemployment Insurance Acts (1935-40). The various i Great Britain. Laws, statutes, etc. Unemployment Insurance (Increase of Benefit) Act, 7 and 8, Geo. 6 (Session 1943-44), ch. 42; M inistry of Reconstruction, Social Insurance, Parts I and II, London, 1944 (Cmd. 6550 and 6551); Parliamentary Debates, September 27 to November 17,1944; M inistry of Labor Gazette (London), November 1944; also, Economist (London), October 7,1944. 3 For a description of these provisions, see M onthly Labor Review, December 1944 (p. 1183). * The title of the M inistry was changed from Ministry of Social Insurance to M inistry of National Insur ance, during the passage of the bill creating the new office. * Average exchange rate of pound (20 shillings) in 1944=$4.035. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 809 810 MONTHLY LABOR REVIEW---APRIL 194 5 beneficiaries continue to qualify for insurance under one of two plans—the general scheme or the agricultural scheme. Under the general scheme, the weekly rates of benefit are increased by 4s. for men and single women who are over 21, and for those married women who are wholly or partly supporting invalid husbands, or who are living apart and can obtain no financial assistance from their husbands. In the case of other married women 21 and over, the increase is 2s. Under the agricultural scheme, m en receive 4s. increase and women 3s. Under both systems an increase of 3s. is granted to young men and young women from 18 to 20 years of age, and to boys and girls 17 years of age. An increase of Is. is granted to boys and girls aged 16. For a wife or other adult dependent an increase of 6s. is granted under the general scheme, and an increase of 5s. under the agricul tural system. For each dependent child, an increase of Is. is allowed under both systems. Under the agricultural scheme the maximum weekly benefit is raised 13s. (from 41s. to 54s.). The revised rates are as shown in the accompanying table. Unemployment Benefits in Great Britain Under Law of October 26, 1944 Weekly rate of benefit Class of beneficiary and of benefits Benefits: Men (aged 21 and over) __ __________ ___________ _J__ Single women (aged 21 and over) _ ___ __ ___ Married women (aged 21 and over, supporting invalid husband, or living ________________ _____________ apart without his support)__ __ Other married women (aged 21 and o v e r )_____________ _______ ______ Young persons: ________________ ________ Young men (aged 18-20) Young women (aged 18-20) _ _ ____ _________ - - -Juveniles: ______________________ ______ - - Boys (aged 17)___ Girls (aged 17) ___- __ ________ _____ _______ ____ Boys (aged 16) _ _ _ ____ ____ ___________ Girls (aged 16) ___ ___________________________ Dependents’ allowances: For adult dependent ______ _______________________ For first or second dependent child __ _ __ ___ For each additional dependent child __________ __ Maximum weekly benefit (including dependents’ allowances) payable under the agricultural scheme __ _______ ___ __ Agricultural scheme General scheme s. d. i 24 0 22 0 1 s. d.1 22 0 22 0 [ 20 0 18 C 19 0 17 0 18 0 15 0 12 10 7 6 10 9 6 5 j 0 6 0 0 16 0 5 0 4 0 6 0 0 0 14 0 5 0 4 0 54 0 1 Average exchange rate of shilling (12 pence) in 1944=20.2 cents. In accordance with the rates shown above, a married man with a wife and two children will receive 50s. instead of 38s. a week, under the general scheme, and 46s. instead of 35s., under the agricultural scheme. In the case of adult dependents’ allowances and the rates for men over 21 and “other married women,” the new rates, under the general scheme, reach the full standard of the social security proposals. How ever, those persons coming under the agricultural system have the most to gain by the passage of the social security proposals. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SOCIAL SECURITY 811 Social Insurance in Panam a, 1 9 4 3 -4 4 1 A SYSTEM of compulsory social insurance providing sickness, maternity, death, disability, and old-age benefits for all persons in public employment and certain persons in private employment was instituted in Panama by a law of March 21, 1941, and revised by a law of April 27, 1943. The system is administered through the Social Insurance Fund, under the direction of a manager and governing body, and is financed by an 8-percent tax on the remuneration of employed persons (payable 4 percent by the employed and 4 percent by the employer) and certain State grants and taxes, and other resources. During the first year of operations under the new act, receipts amounted to 3,070,872 balboas; and expenditures, mainly on benefit payments, to 610,964 balboas. The largest part (44.2 percent) of the payments went for 13,141 cases of sickness and maternity benefits, and the smallest part (1.6 percent) on 216 death benefits. Coverage of Social-Insurance System Insurance of the types named above is required for all persons employed by the State, the Provinces, municipalities, and autonomous and semi-autonomous public bodies, for persons employed by private individuals or enterprises (applicable to the districts of Panama and Colón), and for independent workers with annual income of less than 1,200 balboas. Wives, and children under 16 years of age, of com pulsorily insured persons may be insured in the system voluntarily, as may also persons working on their own account with an annual in come above 1,200 balboas, provided they prove that they are not suffering from any disease which may give rise to disability. The actual number of workers covered under the act of 1943 has been reported as 40,000 in May 1944. The number of public and professional workers in Panama, according to the census of September 1940, however, was some 10,000, and employment in the various commercial and industrial establishments in Panama and Colón was given as about 45,000, exclusive of the 25,000 persons employed in the Canal Zone who are not covered by the act. Benefits for Various Risks Sickness and maternity benefits.—Sickness and maternity benefits are payable, under the act of 1943, to persons who have contributed to the insurance fund for at least 39 weeks during the 12 calendar months preceding the claim. If contributions have been suspended because of involuntary unemployment for not more than a period of 2 months following the end of employment, or for as much as 26 weeks because of reasons of health, the insured person retains his eligibility for bene fits. Sickness benefits include medical attendance, medicaments, laboratory examinations, and surgical, dental, and hospital treatment, within cost limits which may be fixed by the governing body of the Fund in relation to the moneys available. In some cases, only part of the expenses is paid. The maximum period of 26 weeks for attend1 Data are from Estadística Panameña (Contraloria General de la República, Dirección General de Esta dística, Panama), M ay, August, and October 1944; and Social Insurance Act, No. 134, April 27, 1943, Re public of Panama [Laws, statutes, etc.]. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis # 812 MONTHLY LABOR REVIEW— APRIL 1945 ance and treatm ent m ay be increased to 52 weeks in individual cases with the consent of the governing body. In addition to the sickness benefits described, m aternity insurance provides 50 percent of the average weekly earnings for 6 weeks preceding and 6 weeks following confinement. Disability benefits.—An insured person is eligible for disability benefits (1) if he has paid into the Fund at least 156 weekly con tributions and has a contribution ratio of not less than half during the 3 years preceding the beginning of disability, (2) if, in consequence of sickness or accident, he is unable to earn by work suited to his strength, capacity, and occupational training remuneration equal to at least one-third of the remuneration habitually earned in the same district by a physically sound employed person of the same sex and similar capacity and training, and (3) if he has been declared disabled by a board of 3 medical practitioners appointed by the Social Insurance Fund. An applicant must be under 55 years of age when disability begins, if a woman, and under 60, if a man. A disability pension may not be paid to an insured person, even if he satisfies the con ditions above, if compensation by his employer is payable under statutory provisions relating to industrial accidents and occupational disease. The pension consists of 50 percent of the basic monthly wage, plus 2 percent of this amount for every 52 weekly contributions in excess of 1,040, but may not exceed 200 balboas per month. After a pro visional period of 5 years, the disability pension may become “defini tive.” This part of the plan is only beginning to go into effect, only 2 percent of the expenditures in 1943-44 having been for this purpose. Old-age pensions.—Old-age pensions are payable to women over 55 years of age and men over 60, at rates fixed in the same way as dis ability pensions, provided the recipient has made a t least 1,040 weekly contributions and has made not less than half of his normal contri butions during the 10 years preceding the beginning of the pension. For persons who cannot meet these requirements, the Fund provides for the granting of annuities based, with various restrictions, on total contributions paid. Death benefits.—Death benefits consist of a payment (fixed by the governing body) for funeral expenses, if the insured has made 26 or more weekly contributions in the year preceding death. Administration of Fund The Social Insurance Fund created by the act of 1941 and con tinued by the act of 1943 is an autonomous institution responsible for the m anagement of the insurance system under the guidance of a m anager and a governing body. The latter consists of the M inister of Finance and the Treasury, the Governor of the National Bank, the Comptroller-General of the Republic (without right to vote), and 3 other members representing respectively persons in public employment, those in private employment, and employers of persons in private employment. The members as well as the m anager are appointed for 6-year terms by the President of Panam a, subject to the approval of the National Assembly. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis « SOCIAL SECURITY 813 The act of 1943 provides for substitutes for the members of the gov erning body and for the remuneration of the manager, and specifies the duties of the governing body and the manager. In addition to other duties, the governing body is empowered to draw up and amend the general regulations for the Fund and to fix the mortality and in validity tables to be used for the assessment of annuities. The manager’s duties include general administration, imposition of penal ties, submission to the governing body annually of a detailed report on the year’s activities and estimates of expenditures for the next year, the management of investments, and the making of contracts and agreements to insure economical and efficient administration of sickness and maternity benefits. Financing the Fund The act of M arch 21, 1941, stipulated th a t the system of benefits should be financed by (1) a premium of 5 percent on the rem uneration of insured persons, (2) an initial contribution of 100,000 balboas from the Nation, (3) certain production, advertisement, and other taxes, fines and bequests, and (4) the assets and liabilities of the R etirem ent Pensions Fund created by Act No. 7 of 1935. Income from these sources proved to be insufficient to cover the benefits provided, as the pensions carried over from legislation between 1924 and 1935, alone, absorbed much of the total available. The Social Insurance Act of April 27, 1943, consequently provided th a t the old-age pensions granted under the act of 1941 and certain other pensions dating back to 1924 were to be paid by the N ational Treasury through the Social Insurance Fund. The resources of the Fund established by the act of 1943 consist of (1) contributions payable bj- employed insured persons and by employers, each equal to 4 percent of the rem uneration of the employed persons; (2) contributions payable by insured persons working on their own account, amounting to 5 percent of their income or profits; (3) a State subsidy equal to three-fifths of the contributions of persons working on their own account, and a State grant amounting to 0.8 percent of the rem uneration of employed insured persons and of the income or profits of persons working on their own account; (4) con tributions for family insurance, equal to 5 percent of the rem uneration of the head of the family; (5) a production tax on spirits, wines, and beers, as defined in legislative decree No. 4 of September 3, 1941; and (6) certain interest, bequests, and legacies, and the proceeds of certain fines and taxes. Disability and old-age pensions, under the act of 1943, are to be paid from a Joint Pension Fund (Fundo Común de Pensiones) which consists of a sum (allocated annually), equal to 7.6 percent of the remuneration of employed insured persons and of the income or profits of insured persons working on their own account, on which contribu tions have been levied during the year. Sickness, death, and mater nity and administrative expenses are paid from the resources of the Social Insurance Fund not allotted to the Joint Pension Fund, with certain exceptions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MONTHLY LABOR REVIEW— APRIL 1945 814 Operations Under the Fund Table 1 shows the receipts of the Social Insurance Fund anti expenditure on the various types of benefits and on administration for the year July 1, 1943, to June 30, 1944. T able 1 .—Income and Expenditures of Social Insurance Fund of Panama, July 1, 1943-June 30, 1944 Item Item Amount Amount B a lb o a s B a lb o a s Total receipts.................. ... .............. . __ 3,070, 872 Total expenditures_____ Contributions.. ___________ _______ Private employm ent___ _ ______ Governmental employm ent. . . ___ Taxes___ ____ ___ _ ... ... State contribution _ _ ______ . . Fines and refunds.. _ ______ . Interest__________ ____ _____________ 2, 696,829 1, 766,136 930, 693 227,056 103,401 10, 362 33, 224 General fu n d ... ___________________ Sickness. ______ . . ____ ______ Maternity ___________________ D eath_____ ________ _ Administration . . . _____ Joint Pension F u n d .. ________ ____ Invalidity_________ __________ Old age. . . . . . ________ Organization fund______ ______ . . . ________ 610,964 545, 571 269, 887 64, 778 9,920 200,986 51, 599 12, 729 38, 870 13,794 The table indicates that the newly established 8-percent quota on remunerations of employed persons provided 87.8 percent of the total income of the Social Insurance Fund, taxes levied under the act 7.4 percent of the fund, and the State contribution 3.4 percent. About two-thirds of the quota on remunerations came from persons employed in private enterprises and their employers. Sickness and maternity benefits.—The number of insured persons who received various forms of sickness and maternity compensation from the Social Insurance Fund during the year from July 1, 1943, to June 30, 1944, is indicated in table 2. On the basis of an insured coverage of 40,000, it appears that 1 of every 3 insured persons received sickness or maternity benefit during the year. T able 2.- —Sickness and Maternity Benefit Cases Under Social Insurance Fund, Panama, July 1, 1943—June 30, 1944, by Sex and Monthly Earnings Group Number of benefit cases Average monthly earnings of benefit recipients Total All groups_________ Under 25.00 balboas. 25.00-49.99 balboas. _. 50.0074.99 balboas,. 75.00-99.99 balboas... 100.00124.99 balboas. 125.00149.99 balboas 150.00174.99 balboas. 175.00199.99 balboas. Over 200.00 balboas.. Unclassified_______ Males Females 13,141 8,035 • 5,106 861 3, 267 4,088 2,387 800 550 271 239 366 312 323 1,609 2,441 1, 512 657 479 240 218 332 224 538 1,658 1,647 875 143 71 31 21 34 88 Types of illness treated.—An analysis of the data on the 13,141 med ical cases cared for during the first year of operations under the act of 1943 shows that men accounted for almost two-thirds of all cases, and in a distribution by class of illness accounted for similarly large https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SOCIAL SECURITY 815 proportions of all classes except three. According to the census of 1940, there are approximately 3 males to each female in the gainfully occupied population in the cities of Panama and Colón. Table 3 shows the number of cases treated in 1943-44, by sex of patient and type of illness. T a b l e 3 . —Number of Medical Cases Under Social Insurance Fund of Panama, July 1, 1943-June 30, 1944, by Sex and by Type of Illness Number of cases Class of illness i Total All classes of illness_________ _____________ ______ Infective and parasitic diseases.. ______ _ Cancer and other tumors _ __ . . . . _______ Rheumatism, diseases of nutrition, and of the endocrene glands, other general diseases, etc________ _ Diseases of the blood and chronic poisoning and intoxications..... ................ . ■ _____ . Diseases of the nervous system and organs of sense . . . Diseases of the circulatory system __________ ____ Diseases of the respiratiory system . _______ Diseases of the digestive system _____ _ ______ Diseases of the genito-urinary system, etc__________ Deliveries and complications of pregnancy, childbirth, etc_________ ________ _________ ________ Diseases of the skin_________ . _______ . Diseases of the bones and organs of m ovem en t... . . . . Senility and old age ________ _ ______ Injuries and accidents_____ _ ______ _ _________ Ill-defined and unindicated diseases__________________ Male Female 13,141 8,035 5,106 1,143 104 896 64 247 40 167 94 73 275 1,973 177 841 3, 310 560 119 1,343 137 552 1,959 239 156 630 40 289 1,351 321 537 252 148 6 22 3, 626 170 112 4 15 2,331 537 82 36 2 7 1,295 . 1 According to the International List of Causes of Death. The largest group of cases of an identified disease listed in the table (about one-fourth of all cases) consisted of those treated for diseases of the digestive system, the second largest group (more than one-sixth of all) diseases of the nervous system and organs of sense, and the third largest group (about one-twelfth of all) infective and parasitic diseases. In examining data on these cases, it should be borne in mind that the number of cases may be greater than the number of individuals receiving benefits, because one insured person may appear twice or more in the total of 13,141 cases. When an eligible, insured person applies for benefit, the Social Insurance Fund Office approves the case and provides payment on a scale already established for the different types of illness. In addition to these records, the Fund has issued details on the different types of orders granted in the care of the 13,141 cases. Of 25,787 such orders, more than one-quarter were for medical attention, more than one-quarter for medicines, about onetenth were for dental attention, slightly less than one-tenth for hospi talization, and the remainder for optical, surgical, laboratory, and other treatment. Death benefits.—During the year the Fund provided death benefits for 216 insured persons. Diseases of the circulatory system accounted for the death of 22.7 percent of the cases, and infective and parasitic diseases for'18.7 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Industrial Relations E x ten t of Collective B argaining and U nion Status, January 1945 1 Union Agreement Coverage SOME 14% million workers were employed under collective-bargaining contracts in January 1945. An analysis by the Bureau of Labor Sta tistics indicates that these workers included approximately 47 per cent of all workers employed in industries and occupations in which unions are actively engaged in obtaining written agreements with employers.2 During the year 1944 there was an increase in agree ment coverage of over half a million workers, which was equivalent to a 4.5-percent rise in the proportion of employed workers covered by agreements. Manufacturing.-—Approximately 65 percent (more than 8% million) of all production wage earners 3 in manufacturing industries were employed under the terms of union agreements at the beginning of 1945, representing an increase during the year of 8 percent in the pro portion of employees working under union agreements. The largest increases in the proportion of workers under agreement were in the tobacco and chemical industries and, to a less extent, in the canned and preserved foods industry. Agreements were negotiated for the first time with several large aircraft and petroleum-refining companies, as well as with a number of meat-packing, shoe, leather tanning, and rubber companies. The degree of union organization at the beginning of 1945 varied considerably among the manufacturing industries, although not so much as among nonmanufacturing industries and trades. Over 90 percent of the production wage earners were working under union agreements in the aluminum, automobile, basic steel, brewery, fur, glass, men’s clothing, rubber, and shipbuilding industries, in contrast to only a little more than 10 percent in the dairy-products industry. 1 For similar data for previous years see M onthly Labor Review, April 1944, February 1943, M ay 1942, and March 1939. 2 It is estimated that approximately 30M million workers were employed in occupations in which unions are actively engaged in organizing and seeking to obtain written agreements. In most industries this in cludes all wage and salary workers except those in executive, managerial, and certain types of professional positions. It excludes all self-employed, domestic workers, agricultural wage workers on farms employing fewer than 6 persons, all Federal and State government employees, teachers, and elected and appointed officials in local governments. It should be noted that the number of workers covered by union agreements is not the same as union mem bership. Except under closed- or union-shop conditions, agreements cover nonmembers as well as members employed within the given bargaining unit. On the other hand, some union members may be working in unorganized plants and many civil-service employees and teachers are members of unions but are not em ployed under the terms of bilateral written agreements. 3 Clerical, professional, service, and construction workers, foremen, and truck drivers connected with manufacturing are treated as occupational groups under nonmanufacturing employees. 816 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Proportion of Wage Earners Under Union Agreements in January 1945 MANUFACTURING INDUSTRIES 80-100 percent 40-60 percent 20-40 percent Book and job printing and publishing. Clocks and watches. Coal products. Electrical machinery, equipment, and appliances. Leather tanning. Machinery and machine tools. Millinery and hats. Paper and pulp. Petroleum refining. Railroad equipment. Rayon yarn. Tobacco products. Woolen and worsted textiles. Baking. Canning and preserving foods. Dyeing and finishing textiles. Flour and other grain products. Furniture. Gloves, leather and cloth. Hosiery, Jewelry and silverware. Knit goods. Leather luggage, handbags, novelties. Lumber. Pottery, including chinaware. Shoes, cut stock and findings. Steel products. Stone and clay products. Beverages, nonalcoholic. Chemicals, excluding rayon yarn. Confectionery products. Cotton textiles. Paper products. Silk and rayon textiles. Dairy products. Barber shops. Building servicing and maintenance. Cleaning and dyeing. Crude petroleum and natural gas. Fishing. Hotels and restaurants. Laundries. Nonmetallie mining and quarry ing. Taxicabs. Agriculture.1 Beauty shops. Clerical and profes sional, excluding t r a n s p o r t a t io n , c o m m u n ic a tio n , theaters, and news papers. Retail and wholesale trade. 1-20 percent NONMANUFACTURING INDUSTRIES Actors and musicians. Airline pilots and mechanics. Bus and street car, local. Coal mining. Construction. Longshoring. Maritime. M etal mining. Motion-picture production. Railroads—freight and passenger, shops and clerical. Telegraph service and maintenance. Trucking, local and intercity. Radio technicians. Theater—stage hands, motion-picture operators. Bus lines, intercity. Light and power. Newspaper offices. Telephone service and maintenance. in d u st r ia l relations Agricultural equipment. Aircraft and parts. Aluminum. Automobiles and parts. Breweries. Carpets and rugs, wool. Cement. Clothing, m en’s. Clothing, women’s. Furs and fur garments. Glass and glassware. M eat packing. Newspaper printing and publishing. Nonferrous metals and products. Rubber products. Shipbuilding. Steel, basic. Sugar, beet and cane. 60-80 percent i Less than 1 percent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 00 I— 1 ^1 818 MONTHLY LABOR REVIEW— APRIL 194 5 Nonmanujacturing.—About 33 percent (slightly more than 5% mil lion) of all nonmanufacturing workers were employed under the terms of union agreements at the beginning of 1945, representing an in crease during the year of 6 percent in the proportion of employees working under agreement. Over 95 percent of the coal-mining, maritime and longshoring, and railroad employees, including clerical and supervisory personnel, and over 90 percent of the employees in the iron-mining and telegraph industries were employed under union agreements. Nearly 25 percent of the employees in service occupations and slightly less than 20 percent of the clerical and professional employees were under union agreements. A major portion of the clerical and professional workers in the transportation, communications, and pub lic utilities industries and practically all actors and musicians were employed under collective-bargaining agreements. In manufacturing, financial, and business service establishments, and in wholesale and retail trade, only about 13 percent of the clerical and professional employees were under agreement. Union Status G E N E R A L T Y PE S The union-status provisions in employer-imion agreements can be classified into five general types according to their union-membership requirements and privileges, as well as to the presence or absence of check-off arrangements. The various degrees of union recognition or union security are commonly referred to as closed shop, union shop with or without preferential hiring of union members, maintenance of membership, preferential hiring with no membership requirements, and sole bargaining with no membership requirements. Check-off arrangements are of two kinds, usually referred to as automatic check off and check-off by individual authorization. Under closed-shop agreements all employees are required to be members of the appropriate union at the time of hiring, and they must continue to be members in good standing throughout their period of employment. Most of the closed-shop agreements require employers to hire through the union unless the union is unable to furnish suitable persons within a given period, in which case the persons hired else where must join the union before starting to work. In contrast to closed-shop agreements, a union-shop agreement provides that employers have complete control over the hiring of new employees and such persons need not be union members when hired. They must, however, become members within a specified time, usually 30 to 60 days, as a condition of continued employment. When a union-shop agreement, in addition to requiring that all employees join the union within a specified probationary period, states that union members shall be given preference in hiring, it differs very little in effect from the closed-shop agreement In a few cases, employees hired before a closed- or union-shop agreement is signed are exempt from the union-membership requirement. A maintenance-of-membership agreement requires all employees who are members when the agreement is signed, and all who choose later to join the union, to retain their membership for the duration of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INDUSTRIAL RELATIONS 819 the agreement. The maintenance-of-membership provisions estab lished by order of the National War Labor Board allow 15 days during which members may withdraw if they do not wish to remain members for the duration of the agreement. Some agreements provide for preferential hiring without unionmembership requirements. In other words, union members must be hired if available, but otherwise the employer may hire nonmembers and such persons need not join the union as a condition of continued employment. Some agreements include no membership requirements as a condi tion of hiring or continued employment. The union is recognized as the sole bargaining agent for all employees in the bargaining unit and is thus responsible for negotiating the working conditions under which all workers are employed, including those who do not belong to the union. This type of agreement, unlike the others, does not enable the union to rely on employment per se to maintain or increase its membership. Extent of various types of union-status provisions.—Although the proportion of workers under closed- and union-shop clauses remained about the same, the proportion under maintenance-of-membership clauses continued to increase during 1944. By January 1945, approx imately 27 percent (3% million) of all persons employed under union agreements were employed under maintenance-of-membership clauses, an increase during the year of almost 23 percent in the proportion of workers under such agreements. About 28 percent (4 million) of all workers under agreement were employed under closed-shop provi sions and about 18 percent (2% million) under union-shop agreements. (About 7 percent of the latter were covered by agreements which also specified that union members should be given preference in hiring.) Only 2 percent of all workers under agreement were covered by union preferential clauses, whereas 25 percent were under agreements which provided recognition only. The proportion of workers under agreement covered by various types of union status in January 1945 is shown by chart 1, for major industry groups. All clerical, professional, and service workers are included in the group “other workers.” All trucking and warehous ing workers are included in “transportation, communication, and public utilities.” Except for these occupational groups, workers have been included in the industry in which they are employed. Manufacturing.—In January 1945, closed-shop provisions covered approximately 23 percent of all workers under manufacturing agree ments, and union-shop agreements 20 percent—or together a total of about 3% million workers. Of the union-shop agreements, about 10 percent also provided that union members should be given prefer ence in hiring. Most of the wage earners under agreement in the bakery, brewery, men’s and women’s clothing, and printing and pub lishing industries were employed under closed- or union-shop clauses. Substantial proportions of those under agreement in the hosiery and canned and preserved foods industries, and a majority of those under agreement in the paper, shoe, shipbuilding, and silk and rayon in dustries, were working under closed- or union-shop provisions. About 3% million workers in manufacturing industries were employed at the beginning of 1945 under maintenance-of-membership clauses. They included 40 percent of all workers under manufacturing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 820 MONTHLY LABOR REVIEW— APRIL 1945 CHART I PROPORTION OF WORKERS UNION AGREEMENT https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UNDER BY UNION STATUS PROVIDED MAJOR INDUSTRY GROUPS INDUSTRIAL RELATIONS 821 agreements, representing an increase of about 14 percent during the year in the proportion employed under such agreements. The greatest increase over the previous year in the proportion working under maintenance-of-membership clauses occurred in the nonferrous-metals alloying, rolling and drawing industry (from less than 15 percent to over 50 percent), but there were very substantial increases in the machinery and machine-tool, nonferrous-metals smelting and refining, tobacco, woolen and worsted textile, and electrical-machinery industries. At the beginning of 1945 maintenance-of-membership clauses covered most of the employees under agreement in the basic steel industry, a substantial proportion of those in the agricultural and railroad equipment and meat-packing industries and a majority of those under agreement in the aluminum, automobile, electrical-machinery, machinery and machine-tool, rub ber, tobacco, woolen and worsted textile industries and in the non ferrous-metals alloying, rolling, drawing, smelting and refining industries. • . Only about 1 percent of all m anufacturing workers under agreement were employed under preferential-hiring provisions with no unionmembership requirements. In only one m anufacturing industry, pottery, were such clauses common. About 16 percent of the workers under agreement in all manu facturing industries were employed in plants which recognize the union as sole bargaining agent but do not require union membership as a condition of hiring or continued employment. In the rayonyarn industry slightly more than half of those under agreement were covered by such clauses and between a third and a half of those in the cotton textile, petroleum and coal products, nonferrous-metals alloying, rolling, and drawing, aircraft, and glass industries. Nonmanujacturing.—Approximately 36 percent of all workers under agreements in nonm anufacturing industries and occupations were covered by closed-shop provisions and about 16 percent bv union-shop provisions—a total of more than 2% million workers. Only a few of the union-shop agreements also provided th a t union members should be given preference in hiring. The closed shop was provided in almost all agreements in building construction and trucking and in m any of the agreements covering service and trade employees such as barbers and employees in building service, laundry, dry cleaning, and food establishments. Coal miners and a m ajority of the organized bus and street-railway employees were under unionshop agreements. About 6 percent of the nonm anufacturing workers under agreement were employed under membership-maintenance clauses. The greatest increase over the previous year in the proportion working under such clauses occurred in wholesale and retail trade, m etal mining, and crude petroleum and natural gas; in the two last-nam ed indus tries the m ajority of the employees were covered by such clauses. Only 4 percent of all nonmanufacturing workers under agreement were employed under agreements with preferential-hiring provisions but no union-membership requirements. Only in maritime and longshoring are such clauses common. About 38 percent of the workers under agreement in all non manufacturing industries and occupations were employed under contracts which recognized the union as sole bargaining agent but https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 822 MONTHLY LABOR REVIEW— APRIL 1945 included no membership requirements. More than half of these workers were employed in the railroad industry, where virtual unionshop conditions prevail, although the agreements do not provide for union-shop arrangements. Check-Off Arrangements During 1944 there was an increase of about 28 percent in the proportion of workers under agreements who were covered by some form of check-off provisions. Almost 6 million workers, or more than 40 percent of all employees under agreement, were covered by check-off provisions in January 1945. About half were covered by clauses providing for the automatic check-off of all members’ dues and the other half by clauses which provide for check-off only for those employees who file individual written authorizations with the employer. Under some of the latter agreements the authori zations, once made, continue in effect for the duration of the agree ment; under others they may be withdrawn whenever the employee desires. (If working under a closed- or union-shop or maintenanceof-membership agreement, however, the employee must personally pay his dues to the union if he cancels his check-off.) Although most of the check-off clauses provide that all dues and assessments levied by the union shall be collected, some specify “regular dues only” or check-offs not to exceed a given amount. Manufacturing.—Almost 4J4 million workers, or more than half of all workers under agreement in manufacturing industries, were employed at the beginning of the year under agreements which provide for’ check-off. Slightly fewer manufacturing workers were covered by automatic check-off arrangements than by provisions for check-off upon individual authorization. During 1944 the proportion of workers under check-off arrange ments increased about 38 percent. Most of the increase in the proportion under agreement with check-off arrangements took place in shipbuilding, although there were considerable increases in the railroad-equipment and nonferrous-metals alloying, rolling, and drawing industries. Over 90 percent of the workers under agreement in the basic steel, railroad-equipment, and hosiery industries were covered by check-off provisions, and the great majority of those in the cotton-textile, meat-packing, nonferrous-metals alloying, rolling, and drawing, shipbuilding, silk and rayon textile, and woolen and worsted textile industries. Nonmanufacturing.—About 1% million, or 26 percent of the workers employed under agreements in nonmanufacturing industries, were covered by some form of check-off arrangement. Most of these check-off clauses, including those covering coal miners, specify that the employer is to deduct the union dues and assessments from the wages of all members. The agreements for about a third of the nonmanufacturing employees covered by check-off clauses provided for check-off only upon authorization of individual employees. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In d u strial D isputes Strikes and Lockouts in F ebruary 1945 PRELIMINARY estimates of the Bureau of Labor Statistics in dicate 310 strikes and lockouts in February 1945, involving 109,000 workers and 412,000 man-days of idleness. Idleness was 0.06 per cent of the available working time. Strikes and Lockouts in February 1945, with Comparative Figures for Earlier Periods Strikes and lockouts beginning in month Man-days idle in month Month Number Workers involved Number Percent of available working time February 19451___ _________ ------------------------January 1945>-__ ___________ - - - - - - -------------- 310 240 109, 000 44,000 412, 000 228, 000 0. 06 .03 February February February February 340 200 181 257 146, 438 38, 841 58, 122 71,875 458,604 117. 279 357, 333 1,134, 531 .06 .02 .06 .20 1944_ _____________ _____ . . - ----------- 1943 _- - - ___ ___ - - - - - - ---1942 . . . ------ - - ------- 1941____________________ _ ----------------- _ i Preliminary estimates. Briggs and Chrysler strikes.—In the Detroit (Mich.) area two large strikes involved more than 20,000 workers and accounted for over 85,000 man-days idle. The first, at the Briggs Manufacturing Co., Detroit, involved a question of job classifications for certain workers, members of the U. A. W.-C. I. O. The second and largest strike in February occurred at the Chrysler Corporation. Dissatisfaction with increased production quotas was the underlying cause of the strike, although the immediate cause was the discharge of a small number of workers for alleged failure to meet these quotas. On February 23 a strike began at the Dodge main plant, and on March 2 workers at the DeSoto-Warren plant struck in sympathy. Officers of the International Union, U. A. W.-C. I. O., immediately took steps to get the men back to work. When these failed, as did efforts of the Detroit War Labor Board, union and company officials were summoned to a show-cause hearing on March 3 before the Nation al War Labor Board in Washington. At the hearing, agreement was reached to resume work—all striking employees to be returned to their jobs without discrimination, the question of discharges to be handled through the established grievance machinery, and that of production quotas to be submitted to arbitration. On March 4 the local union officially voted to return to work on March 5. Todd Galveston, Todd Pacific, and Ingalls shivbuilding strikes.— About 12,000 workers were involved in three strikes in the shipbuild63 6 3 7 2 — 45 -9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 823 824 MONTHLY LABOR REVIEW— APRIL 1945 ing and ship-repair industry and caused almost 60,000 man-days of idleness. A 6-day strike occurred at the Todd Galveston Dry Docks, Inc., Galveston (Tex.), when 8 workers were given notices of disci plinary action contemplated by the company. In addition, the unions involved, members of the Metal Trades Council, A. F. of L., claimed an accumulation of unsettled grievances. The men returned to work when the company agreed to take all workers back—disciplinary action to be taken up through regular grievance procedure—and when a joint company-union meeting was scheduled to consider all pending griev ances. ^ A strike involving 10 unions, members of the Pascagoula M etal Trades Council, A. F. of L., occurred at the Ingalls Shipbuilding Corporation in Pascagoula (Miss.) in late February. The under lying causes of the strike were a renewed demand for' a closed shop, which had been denied by the WLB Shipbuilding Commission several m onths earlier, and alleged difficulty in settling grievances through the established machinery. The workers returned on M arch 1, upon orders of their international union, pending a WLB hearing on all issues in dispute. A 17-day strike at the Todd Pacific Shipyards, Inc., and Todd Shipyards Corporation, Seattle (Wash.) Division, involved about 1,400 workers and caused nearly 12,000 man-days of idleness. The strike was precipitated when the company, which has a closed-shop contract with the Seattle Metal Trades Council, A. F. of L., covering all local union affiliates, discharged 6 welders not in good standing with the International Brotherhood of Boiler Makers, Iron Ship builders and Helpers of America. Members of the United Brother hood of Weldors, Cutters and Helpers of America, an independent union which had several times petitioned the NLBB for elections to determine jurisdiction over welders in the plants, went out in protest. They returned to work with the understanding that the National War Labor Board would make an investigation. Textile workers strike.—About 14,000 man-days of idleness re sulted from a strike of members of the United Textile Workers of America, A. F. of L., at the American Enka Corporation (Enka, N. C.) in protest against the company’s noncompliance with orders of the War Labor Board. On February 5 the company had filed a petition in the Federal Court in Asheville to restrain the union from taking any steps to make the orders effective; the court issued an order to that effect and the men struck. The NWLB assumed jurisdiction and when the strike continued referred the case to the President. The plant was taken over under Presidential order on February 18, and the men returned to work. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INDUSTRIAL DISPUTES 825 A ctivities of U. S. C onciliation Service, January 1945 DURING the month of January 1945, the U. S. Conciliation Service disposed of 1,957 situations, as compared with 2,042 situations in December 1944. During January 1944, 1,931 situations were closed. Of the 204 strikes and lockouts handled, 182 were settled success fully; 22 cases were certified to the National War Labor Board in which strikes occurred during negotiations, but in 15 cases a Com missioner of Conciliation had effected a return-to-work agreement prior to certification of the case. The records indicate that 169 situa tions were threatened strikes and 1,384 were controversies in which the employer, employees, or other interested parties asked for the assignment of a conciliator to assist in the adjustment of disputes. During the month, 473 disputes were certified to the National War Labor Board, and in no cases did agencies other than the National War Labor Board assume jurisdiction. The remaining 200 situations included 99 arbitrations, 10 technical services, 13 investigations, and 78 requests for information, consultations, and special services. Cases Closed by U. S. Conciliation Service, January 1945, by Type of Situation and Method of Handling All situations- ______________________ __ __ _ Settled bv conciliation .. _ Certified to National War Labor Board _ _ _ Referred to State and local agencies . . . _ __ Decisions rendered in arbitration . _______ Technical services com p leted __________ ___ __ _ Investigation, special services_________ - _______ i Of these, 15 were settled prior to referral. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Strikes and lockouts Threat ened strikes Contro versies 1,957 204 169 1, 384 1,284 473 182 l 22 145 24 957 427 2 Total Method of handling 99 10 91 Other situa tions 200 99 10 91 Labor Laws and Decisions R ecent Decisions of Interest to L a b o r1 Decisions on National Labor Relations Act NLRB’s grievance rules changed by court.—The Hughes Tool Co., in a review obtained by it from the Fifth Circuit Court of Appeals, procured alteration of the order of the National Labor Relations Board which had incidentally outlined the scope of a union’s duty and in terest in regard to grievances and the employer’s obligation toward the union in such m atters.2 The court drew a distinction as to a union’s right of exclusive representation between bargaining as to rates of pay, wages, hours, and other conditions of employment, which will fix for the future the rules of employment for everyone in the unit, and “grievances” which are usually claims of individuals or small groups for infringement of their rights under the existing bargain or agreement. The court said that while grievances are a part of the business of the union under section II (5) of the act, section 9 (a) does not give the union the ex clusive right to handle grievances. If the grievance involves only some question of fact or conduct peculiar to the employee and not affecting the unit, the union has no right of exclusive participation unless the questions raised involve bargaining for the unit or an inter pretation of the bargain. In general, the court continued, section 9 (a), in giving the individual employee or group of employees the right to present grievances, intended full presentation, including the taking of evidence and making argument. The court decided that an inexperienced worker may, as to his grievance, ask a more experienced friend to assist in presenta tion, but that such a worker may not present his grievance through any union except his elected representative. The designated union, when not asked to present the grievance but being on hand to safe guard its contract, cannot exclude the complaining worker, withdraw his complaint, or prevent consideration of his grievance. Specifically, the agreement of the certified union provided for an employee’s discussing trivial m atters directly with a foreman, with or w ithout the presence of the representative of the certified union or for his presenting his complaint to the grievance committee of the union. T h at committee then investigates the m erits and, if judged substantial, presents the grievance for adjustm ent. Appeals and 1 Prepared in the Office of theSolicitor, Department of Labor. The cases covered in this article represent a selection of the significant decisions believed to be of special interest. No attempt has been made to reflect ail recent judicial and administrative developments in the field of labor law nor to indicate the effect of particular decisions in jurisdictions in which contrary results may be reached, based upon local statutory provisions, the existence of local precedents, or a different approach by the courts to the issue presented. 2 For N . L. R. B. decision In re Hughes Tool Co. see M onthly Labor Review, October 1944, p. 800. 826 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR LAWS AND DECISIONS 827 further procedures as provided in the agreement were suitable whether the individual or the grievance committee presented the grievance. Under such an agreement there is no leeway for the employer to deal with a rival union on grievances. The court, however, did not con sider that this action of the employer in dealing with the rival union constituted a refusal to bargain. The outcome of the case was modi fication of the Board’s order so as to require the company in future to cease adjusting grievances through noncertified unions and to cease adjusting grievances not presented by the grievance representa tive of the certified union without notice to that representative; this will give the union opportunity to decide whether the grievance requires bargaining as to interpretation or change of the agreement and whether the union desires to participate. The special type of purely individual case in which the agreement provided for summary adjustment with the foreman was excepted from the requirement of notice. Order vacating representation election not appealable.—The United States Supreme Court refused an employer’s petition for review of a decision rendered in Onam v. National Labor Relations Board (145 Fed. (2d) 328), in which the Circuit Court of Appeals had decided that it was without power to review an order of the National Labor Relations Board, setting aside a representation election for unfair labor practices preceding an election. “Company union” properly excluded from ballot.—The Circuit Court of Appeals for the Fourth Circuit in Madden v. Brotherhood of Transit Employees3 reversed a United States District C ourt4 and approved the position of the National Labor Relations Board.5 The Board had held that it has the power to investigate employer domination in determining what unions may be on the ballot in a representation election; and that it is not necessary for the Board to delay an election to await a full-dress hearing and decision on a charge of unfair labor practice, consisting of the employer’s sponsoring, favoring, or dominating the objectionable union, or as an alternative leave such a union on the ballot. The court said that the Wagner Act gave the district court no authority to enjoin officers of the Board from carrying out their official duties and no power of review. In the field in which review is permitted, that of unfair labor practice, Congress placed jurisdiction upon the circuit courts of appeals. Anti-union letter to employees in the service called unfair.—An intemperate attack on unions, written by an employer to employees in the service, when considered with other improper efforts to influence an election, was held to have constituted illegal interference with the election. The men addressed remain employees, although in the armed services. Such employees are often included among eligible voters in representation elections; or certifications are made subject to review on the return of a sufficient number of servicemen to the employment. The principle of freedom of speech neither isolates the letters from other expressions or actions of the employer nor 3 ---------------- F e d .--------- January 29,1945. 4 For earlier decisions, analyzed under the name of the Baltimore Transit Co. see M onthly Labor Review, January 1945, p. 125. 3 Cf. Employees Protective A ssn, of Norfolk v. National Labor Relations B oard,------ Fed. (2d )------ (C. C. A. 4), January 29,1945, where the decision was that no court has power to review the proceedings conducted under section 9 (c) of the act except where a final order, under section 10 (c) is based in whole or in part upon facts certified following an investigation pursuant to section 9 (c). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 828 MONTHLY LABOR REVIEW— APRIL 1945 wipes out the essential bias and unfairness. (In re Shartle Brothers Machine Co., 60 N. L. it. B. , February —, 1945.) Board refusal to prejudge employer's conduct.—The National Labor Relations Board, during the period before an election, will not decide for the employer the legality of proposed conduct, such as taking a private poll as to the employees’ wishes on union representation. Such polls have under certain circumstances been violations of the act. The Board held that prejudgment would be useless, since the Board cannot prevent a union from preferring charges of unfair labor practies if the union thinks the charges warranted. (In re HiAlloy Castings Co., 60 N. L. R. B. , February —, 1945.) Election ordered to settle union affiliation.—When an existing union contract with a closed-shop clause fails to state the union’s affiliation and a dispute arising from an attempt to change affiliation has left the affiliation in doubt, an employer’s refusal to negotiate without a new certification raises a question as to the identity of the bargaining agent which the National Labor Relations Board will solve through an election.6 The Board said it was not disturbing or invalidating the agreement but was instituting a necessary proceeding to learn who should enforce it. Persons who may be included in “cease and desist order.'”—The Supreme C ourt of the United States, in Regal Knitwear Co. v. National Labor Relations Board,1 decided th a t the N ational Labor Relations Board in its “cease and desist order,” and a circuit court of appeals in enforcing such an order, may properly include the successors or assigns of an employer corporation. The result is not to enlarge the scope of the order b u t to describe persons who may actively participate in future violations. A dissenting opinion took the view that just as injunctions are con fined to prohibiting only violations of a type which occurred in the past, so these injunctive orders should be confined to the persons proved to have committed violations. This opinion further said that it is not the function of the Board or of the courts to make unwarranted threats against innocent third persons, i. e., the successors and assigns, or to impose the penalty of reducing the salability of the business. Economic strike becomes lockout.—The proved facts, in National Labor Relations Board v. St. Mary's Sewer Pipe Co.,8 were that a union had brought a charge of discrimination before the Labor Relations Board against an employer in regard to five employees who had been discharged. Before this could be heard, the union called a strike as to wages, which had no relation to the five employees. A settlement of the wage issue was reached, but after it was ratified by the union the employer refused to carry it out by taking back the strikers, unless the union withdrew its charge of discrimination. Imposing this con dition was held an unfair labor practice by the National Labor Rela tions Board. The court of appeals affirmed the Board’s order. National W ar Labor Board Decisions No escape clause in renewal contract if none in original.—A union had successfully bargained for maintenance of membership without any escape clause in its last prior agreement. An order of the Regional 6 In re Register de Tribune Co., —— X . L. R . B. — i ----- U . S. ------, January 29, 1945. 8 146 Fed. (2d) 995 (C. O. A. 3), January 19, 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 2, 1945. LABOR LAWS AND DECISIONS 829 War Labor Board, directing maintenance of membership with the usual escape clause in a new contract, was revised by the National War Labor Board by striking out the escape clause. The considera tions involved included the fact that the union had been found to be a responsible and democratic organization. (In re Conestoga Transp. Co. and Amalgamated Assn., Case No. 111-5159-D, December 15, 1944.) Preferential-hiring clause awarded.—In the seasonal fruit-packing industry, the Tenth Regional War Labor Board awarded a preferentialhiring clause in a first union agreement, because it found that excep tional circumstances made such a clause the equivalent of a maintenance-of-membership clause for an industrial union as to the protection afforded (California Citrus Packers, Case No. 111-9580-D, November 10, 1944). In L. S. Klatscher Co. (Case No. 111-9922, December 22, 1944), the Board weighed the facts—that the union’s membership had been dissipated by the employer’s unfair labor practices during the at tempts of the National Labor Relations Board to obtain compliance— and found the situation so exceptional as to justify a preferential-hiring clause in addition to maintenance of membership. Increases from substandard pay retroactive to expiration of prior agreement .—The National War Labor Board approved the expiration date of a prior agreement as the retroactive date for wage increases in a dispute case involving substandard wages. In this case {In re Pal Blade Co., Case No. 111-4208, December 21, 1944), the regional board had previously been ordered to work out brackets for sound and going wage rates for the area and to apply them to the individual employees. When this had been done, the employer appealed as to the retroactive date, arguing that the pay should go back no farther than the regional board’s order applying the bracket rates. In decid ing to the contrary, the Board distinguished this case from the mere revision by the Board of brackets previously established, a situation in which the date of revision is the proper starting date. Since the correction of substandard wages has been part of the stabilization program from the beginning, the increase here should be governed by the general rule as to a new contract, that the retroactive date of any adjustment directed by this Board should, in the absence of a differing agreement, be the expiration date of the prior contract. Certification of guard unit honored by War Labor Board in absence of court action.— The Sixth Circuit Court of Appeals in Cincinnati set aside the National Labor Relations Board certification of a union of plant guards in the Otis works of the Jones & Laughlin Steel Corpora tion on the ground that such a union was against public policy and violated the National Labor Relations Act. When a similar situation was brought before the National War Labor Board, it refused to re view the order of its regional board fixing employment conditions for a similar union at the employer’s Pittsburgh plant. In the appeal (In re Jones <&Laughlin Steel Corp., Case No. 111-6230-D, December 22, 1944), the War Labor Board distinguished between the union locals, the plants, and the issues (the Sixth Circuit case involved unfair labor practices) in justifying its refusal to disturb the action of the regional board. The W ar Labor Disputes Act requires th a t certification by the N ational Labor Relations Board of an exclusive bargaining agent for a specified bargaining unit m ust be accepted by the W ar Labor Board https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 830 MONTHLY LABOR REVIEW--- APRIL 194 5 for the purpose of its work in a dispute case. Only a court decision destroying the certification of the particular local as bargaining agent at the particular plant, or equivalent action by the National Labor Relations Board, could relieve the War Labor Board of its duty in this regard. As to the matter of public policy, the court noted that the War and Navy Departments have not officially opposed the organ ization of plant-protection employees who are auxiliary police, if they are represented by a bargaining union which does not include produc tion and maintenance workers. Decisions Relating to Fair Labor Standards Act Homework lawfully prohibited in embroidery industry.—On February 26, 1945, the Supreme Court of the United States, in an opinion by Mr. Justice Rutledge, upheld the power of the Administrator of the Fair Labor Standards Act to prohibit homework in a wage order for the embroideries industry, on the basis of his finding that the prohibi tion was a term and condition necessary to protect and safeguard the 40-cent minimum rate established by the wage order for that industry ( Gemsco, Inc. v. Walling).9 It was argued that the Administrator could not do this, as the act nowhere gave him explicit power to regulate or prohibit industrial homework, either generally or in connection with a wage order. The Court reasoned that the employer’s argument amounted to a conten tion that Congress intended the act to be a dead letter in any industry where homework happens to exist. To the argument that the pro hibition of homework was not a method of enforcement but a form of experimental social legislation, the Court answered that the Adminis trator’s duty to make the rate effective embraces all means found by him to be necessary for the purpose and does not exclude any means merely because they may have other social or economic consequences. Air. Justice Roberts filed a dissenting opinion which was concurred in by Mr. Chief Justice Stone. Mr. Justice Frankfurter filed a sepa rate opinion concurring with the result reached by the majority. Child labor no less illegal because unprofitable.—Violation of the child-labor provisions of the Fair Labor Standards Act by a bakery corporation must be terminated, and entry of an injunction against the employer is required as the only proper exercise of the court’s discretion, when the employer, after a warning that there are viola tions, continues or repeats the violation or fails to supply an assurance that the violation will not be continued (Lenroot v. Interstate Bakery Corp., 146 Fed. (2d) 325). The lower court had refused an injunction because it considered the violations “not seriously and injuriously” against the public interest and found the corporation gained no “ advan tage or special profit” from employing the children who were hired by agents in its branch plant, contrary to the “declared policy” of the employer. The appellate court said the duty of a large corporation does not end with issuing orders to its foremen; the management must inquire into conditions and must carry out its responsibility for avoid ing violation. The court’s discretion must be exercised in the light of the public interest, which is seriously involved, in putting an end to the evil of oppressive child labor. 9 65 Sup. Ct. 605, February 26, 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR LAWS AND DECISIONS 831 Subpena power oj Wage-Hour Administrator, as applied to news papers.—Two United States Circuit Courts of Appeals, the tenth in Oklahoma Press Publishing Co. v. Walling10 and the third in Walling y . News Printing Co., Inc.,n recently held (1) that it is not a violation of freedom of the press to require a newspaper publisher to produce his records of hours worked by his employees and wages paid to them, pursuant to an administrative subpena issued under the Fair Labor Standards Act and (2) that such subpena should be enforced by the court without requiring proof from the Administrator that the news paper is covered by the act. Both courts noted that Congress sup plied the Administrator with subpena power to aid him in the investi gation of what the newspapers erroneously claimed must be proved as a condition for use of the subpena. Mechanics of automobile service company within Wage and Hour Law.—Mechanics of a service company, who grease, repair, and main tain equipment of another business which uses this equipment for the interstate movement of automobiles and Army matériel, are within the Fair Labor Standards Act and are not exempt, according to the decision in Poutell v. Walling}2 They are not in an exempt service establishment, because the greater part of their work is not done in intrastate commerce. On the contrary, in servicing vehicles which move in interstate commerce, they are part of that commerce. On the other hand, in addition to being in interstate commerce, their work affects safety of operation; but as their employer is neither a common, contract, nor private carrier, the motor carrier exemption is inapplicable.13 The Interstate Commerce Commission has jurisdiction over workers doing such work only when they are emplojmes of carriers, and its jurisdiction fixes limits for the exemption. Effect of Wage and Hour Law on coal distributors.—A United States District Court in Tennessee, in Walling v. West Kentucky Coal Co. , 14 resolved a number of dubious points as to coverage and exemption in a complicated coal-distribution business. From coal mines in Ken tucky owned by the employer, coal is transported, on a railroad owned by it and barges operated by it, to other States, including a depot in Tennessee. The employees of that depot were involved in this enforce ment action of the Administrator of the Fair Labor Standards Act. The Court decided that— 1. Employees ordering, receiving, unloading, and screening coal coming from other States and doing equivalent work on coal before its out-of-State shipm ent are within the coverage of the act because they are engaged in interstate commerce. 2. Employees engaged in screening coal and in activities involved in supplying coal to consumers (even within the State), where the coal is consumed in producing goods for interstate commerce, are within the act as engaged in activities necessary to the production of goods for interstate commerce. 3. As to the retail establishment, the exemption of section 13(a) (2) was held inapplicable. The court so held (a) because the establish ment made a substantial amount of its domestic sales to nonretail purchasers, such as peddlers, commercial and industrial consumers, institutions, and Government agencies, and such sales were larger in i° — Fed. (2 d )----- , February 15, 1945. u ----- Fed. (2 d )------ , March 5, 1945. 12 _ Fed. (2d) — (C. C. A. 6), February 14, 1945. » 29 U. S. C„ sec. 213 (b) (1). ----- Fed. S u p p .------ , December 1, 1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 832 MONTHLY LABOR REVIEW— APRIL 1945 quantity and less in price than the retail sale to a domestic consumer, (b) because an establishment in which work is done on goods sold is not a retail establishment regardless of the nature of the sales, if the work is not merely incidental to such retail sales as are made there, and (c) because the application of the exemption to an establishment cannot be determined by the trade meaning given to “retail dealers’’ in the coal business or by Government agencies dealing with the coal business, as such, when to do so would produce a result peculiar to the coal industry, since retail establishments in all industries are equally to be exempt or nonexempt on the basis of uniform tests. 4. As to other exemptions, the court determined that during any workweek, truck drivers, although crossing State lines, if they spend the major portion of hours worked delivering coal intrastate to indus trial consumers who need the coal to produce goods for commerce, were engaged in “production” and not in “commerce” within the scope of the motor carrier exemption, section 13 (b) (1). However, employees of tugboats performing commercial tug service for boats and barge fleets in interstate commerce were seamen, exempt under section 13(a) (3). Employees generally, who perform covered work and ex empt or noncovered work during the same workweek, come within the act on a workweek basis. Refrigeration-truck mechanic within Fair Labor Standards Act.—An employee, whose work consisted entirely of servicing equipment used in the hauling and selling of ice cream and who did his work on the trucks moving across State lines and while they were at depots from which they would be sent across State lines, was engaged in inter state commerce and entitled to the benefits of the Fair Labor Stand ards Act. The exemption as to employees of motor carriers whose work affects safety of operation was held inapplicable because the connection between the refrigeration equipment and safety of opera tion of trucks is remote. Further, the exemptions for the first processing of milk or cream, the handling of agricultural commodities in their raw or natural state, and the making of dairy products were inapplicable. (Colbeck v. Fairyland Creamery Co., 17 N. W. (2d) 262.) Class action open for other employees.—After service employees brought suit for unpaid overtime for themselves “ and other em ployees similarly situated,”15 a California court had refused to permit an amendment by which 38 of their co-employees would be included in the action. The reason for refusal was that these new claimants might not be “ similarly situated” because the date of the original suit might be within the time limit for such actions but not the date at which the additional employees joined the proceedings. In revers ing the lower court, the Circuit Court of Appeals, in Culver v. Bell & Loffiand, Inc. (146 Fed. (2d) 29), decided that Congress intended to avoid a multiplication of suits and for this purpose a liberal construc tion of the law must be adopted. The new claims must be treated as if they had been expressly made in the action as originally brought. The same principle of liberal interpretation was applied in Distelhorst v. Day & Zimmerman (.58 Fed. Supp. 334) by the United States District Court in Iowa, which said that courts in considering who is “ similarly situated” should not be governed by how much or what degree of similarity there may or may not be but should permit class actions if there is any similarity. On this principle, the court per1» 29 U. S. C„ sec. 216 (b). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR LAWS AND DECISIONS 833 mitted an action by a building foreman to be joined by his fellowemployees who did very different classes of work, but each of whom was a foreman or the equivalent. Bonuses included in regular rate of pay.—In the business under consideration, in Walling v. Richmond Screw Anchor Co.,16the employer had, since 1933, paid a bonus of 10 percent on the base salary of employees, distributed monthly in accordance with a decision of its board of directors. The bonus was subject to discontinuance if the company’s finances became depleted. In the instant case the Ad ministrator of the Fair Labor Standards Act succeeded in enjoining, as a violation of law, the employer’s failure to include the bonus in the base pay upon which overtime was paid under that act. In granting the injunction, the court incidentally decided that the claims that the bonus is a mere gift and that there is no binding obligation on the employer to pay the bonus do not decide the case, because the bonus was actual and legal compensation. Regardless of exist ence of a legal right to claim the bonus, the test is whether the bonus regularly and actually reaches the employee’s pocket. The purpose of the act, to discourage overtime work by making it costly, is evaded if employer and employee can agree on compensation at a rate satis factory to both and then agree that overtime shall be based on a smaller scale. The court also decided that an incentive bonus paid in relation to production is part of the “ regular” rate of pay. Though the employer and employee had not intended to evade the act in this case, the court said that the situation was governed by the decision of the Supreme Court in Walling v. Helmerich <&Payne (326 U. S. 37)17 and not by Walling v. Belo Corp. (316 U. S. 624). New time limitation not applicable to employee suits.—In Iowa, an act passed in 1943 provided that “ in all cases wherein a claim has arisen pursuant to the provisions of any Federal statute, where no period of limitation is prescribed, the holder of such claim * * * may commence action within * * * 6 months after the accrual of such claims.”18 In Keen v. Mid-Continent Petroleum Corp.,19 it was decided that under Iowa decisions, contracts implied in law are re garded as “ founded on written contract” as far as the period of limita tion is concerned; that the action under the Wage and Hour Law is essentially contractual; therefore, either the Iowa statute relating to unwritten contracts or that relating to written contracts will control and not the new statute. Another district court in Iowa, in Kavlen v. Republic Pictures Corp.,29 dealt with this same 1943 statute of limitation,18 and held that it was not a general statute of limitations but one directed to the provisions of a Federal statute and therefore invalid. This court said that acts of Congress within the sphere of delegated authority of the United States are supreme and the Iowa Legislature has no right to add, to a Federal statute, provisions limiting rights granted therein by Con gress.21 This is true, said the court, though in the absence of a congressionally stated time limit, the general statute of the State guides is----- Fed. Supp.------ (D . C. N . Y .), January 13,1945. n For full discussion, see M onthly Labor Review, January L945, p. 121. 18 O. 267, 50 G. A. I. sec. 1. 19 _ _ Fed. S u pp.----- (U. S. D . C. Northern Iowa), January 11, 1945. 28----- Fed. S u p p .------ , February 8, 1945. 2i Compare decisions in Kurth v. Clarke Lumber Co. and Fullerton v. Lamm od the Oregon statute dis^ cussed in the M onthly Labor Review for March, 1945, p. 593. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 834 MONTHLY LABOR REVIEW— APRIL 1945 the court as to the period within which a litigant must commence action. Labor Decisions in State Courts I Union member's rights not hurt by union war fund against anti-closedshop amendment.—An injunction was asked by plaintiff in the Cali fornia State C ourt in the case of DeMille v. American Federation of Radio Artists,22 to prevent plaintiff’s suspension or expulsion by a local and national union of artists for nonpaym ent of an assessment. The suspension would prevent his fulfilling a radio contract because of a union rule under which other artists would not work with him if he were not in good standing with the union. The assessment which he refused to pay was one legally voted by the board of the local to finance opposition to a proposed constitutional amendm ent which would have outlawed the closed shop. Plaintiff had received due notice and explanation of the purpose of the assessment and he had refused to pay. In denying the injunction, the court applied the following reason ing: (1) The California courts have recognized the closed shop as a valued tenet of organized labor in furtherance of which it may law fully strike or picket; (2) the amendment which would have made it unlawful to “ abridge” the right to work by requiring the closed shop or maintenance of membership was of vital interest to the union; (3) it is well known that some persons who are union members under closed-shop agreements are anti-closed shop and even anti-union and pay dues merely to obtain work; (4) the union assessment did not interfere with plaintiff’s freedom of speech or his right to vote according to his individual views at the election; (5) the opposition to impair ment of trade-unionism by a constitutional amendment is not a polit ical activity like an attempt to elect or defeat a candidate for office; (6) the use of the money was not a violation of the Federal Corrupt Practices Act merely because the amendment was submitted in an election in which Federal officials were also being elected; (7) it was not beyond the power of the union to spend its ordinary funds in such cases for the betterment of its members; (8) the constitution and bylaws of the local union plus other fundamental documents constitute a contract binding on its later acquired members, and in this case they grant power to levy assessments and automatically operate to suspend a member who fails to pay such assessment, without any requirement of notice or hearing; and (9) this method of discipline, being part of the contract, infringes no rights and affords no ground for complaint. State court acts when National Labor Relations Board has not acted.— A candy m anufacturer who bought raw m aterials and sold his products m interstate commerce asked the court, under the S tate’s Declaratory Judgm ent Act, to determine whether he was bound by a closed-shop agreement. The employer claimed th a t he signed the agreement under threat of picketing, not only against him but against his customers for dealing with him, during the period when he shipped his Christm as stock. At the time the contract was signed, the union did not repre sent a m ajority of the employees. 22----- Pac. (2 d )------ (Calif. Sup. C t.), January 24, 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR LAWS AND DECISIONS 835 The court of appeals reversed the action of the court below and directed it to proceed to a hearing and decision of the case. (Pearson Candy Co., Ltd., v. Waits.)2* In the absence of a paramount act of the Federal Government depriving the State court of power, the power exists under the State Declaratory Judgment Act to consider the bind ing effect of the agreement. The union had itself applied to the Na tional War Labor Board which, suggesting that the question of representation was one for the National Labor Relations Board “ or other tribunal of competent authority/’ directed that the contract be carried out until its invalidation or normal end. The State court considered itself a competent tribunal such as the Board mentioned. Intra-union dispute decided under union-control law.—Members of a union local and its international, for the benefit of their fellow mem bers and the local, asked a Texas court for a receiver and audit for the union local, claiming that the following had occurred in violation of the union constitution and bylaws: (1) Local officials had committed financial irregularities and refused audit. (2) After informal com plaint the international president had made an informal inquiry and then taken over the property of the local and appointed as manager for it one of the suspected local officials. (3) The latter, acting as manager and claiming to have been ousted as an official, usurped the paid elective office of business agent, discharging the regularly chosen business agent. (4) As business m anager, he coerced and threatened to bar from employment union members, including the plaintiff, compelling them to submit to his domination. (5) Meetings and elections were prevented by the m anager, and the union had ceased to function under its basic laws and as a union. (6) Formal appeal to the international union had been rejected and, without court inter vention, any resistance by members would cost them their union standing and their jobs. The lower court had acted on the principle of noninterference in internal affairs of labor unions. However, the Texas Court of Civil Appeals, in Lundine v. McKinney 2i reversed the decision, saying that the noninterference doctrine has an exception when the members’ property rights or right to earn a living are involved; in that situation a court will inquire whether the proceedings within the union followed its laws and rules and whether they violated the laws of the land. The court will protect rights from damage by appointing a receiver if necessary, acting under the union-control law. Declaratory judgment not proper in representation case under State Labor Relations Act.—In regard to a representation election for chainstore employees, requested by a union which was challenged by a rival, the Supreme Court of New York decided25 that sections 704 and 706 of the State Labor Relations Law deal with “unfair labor practices,” an entirely different type of activity from the investiga tion under section 705 to certify representatives for collective bar gaining, and that the former but not the latter is subject to review (section 707). Accordingly, a declaratory judgment will not be rendered on a representation question. 23 154 Pac. (2d) 913 (Calif.), December 28,1944. —— S. W. (2d) —— , September 22, 1944. 25----- N . Y . Supp. ——, January 1, 1945. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 836 MONTHLY LABOR REVIEW— APRIL 194 5 Miscellaneous Decisions Roadhouse entertainers held in peonage.—In reviewing a conviction of peonage, which consists of holding a person in compulsory service based on a real or pretended debt, the F ifth Circuit C ourt of Appeals, in Pierce v. United States (146 Fed. (2d) 84), upheld the finding of guilty. The testim ony was th a t defendant procured the release from jail of young women convicted as “vagrants” by paying their fines, in some instances with an express agreement th a t they would repay him by working in his roadhouse. Shortly after their release and while they were working in the roadhouse, defendant bought clothing for the girls and thereafter refused to let them leave because they were in debt to him, telling them th a t they had to stay until the debt was paid. The girls tended bar, acted as waitresses and hostesses, and engaged in other activities a t the roadhouse. These facts were held to constitute the crime of peonage on the p art of the owner of the roadhouse. A dissenting opinion was filed as to those girls who had not actually agreed to work out debts but who remained because of fear of physical violence. The m ajority of the court, however, did not consider th a t the claim was related to the am ount of the debt or •the method of coercion. The crime exists when a person is held against his wTill and made to work to pay a debt. Employer liable for neglect of helpless and stricken worker.—A trackmaintenance worker had heat prostration on the job. The foreman told him to quit work and had part of the work gang take him home. There was no one at home and the worker was in no condition to summon help and died after he was left alone there. In Szabo v. Pennsylvania R. R. Co. (40 Atl. (2d) 562), an action to recover for the death caused by lack of due care, the Court of Errors and Appeals in New Jersey reinstated a jury verdict allowing recovery for the death, and rejected the defense that the employer had no duty toward the worker and that the foreman was acting on his own responsibility, so that the railroad was not responsible for what he did or left undone. The court said that although in the absence of a contract or statute, the employer has no duty to provide medical service or means of care to an injured employee even if the employer’s carelessness caused the injury, there is a recognized exception. When an employee at work suffers sickness or injury, whether or not through the master’s fault, to such an extent as to be helpless to provide for his own care, the master must put in his reach such medical care and other assist ance as the emergency requires. The duty arises out of strict neces sity and expires with the emergency. Whether adequate provision was made under all the facts is a jury question. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wage and Hour Statistics H ourly E arnings in th e A m m unition-Loading Industry, 19441 Summary A BUREAU of Labor Statistics wage survey in ammunition-]oading plants reveals that the straight-time average earnings of workers in representative key jobs amounted to 77 cents an hour in shell- and bomb-loading plants and to 71 cents an hour in bag-loading plants. Among occupations studied in shell- and bomb-loading plants, average earnings ranged from 51 cents an hour for janitresses to $1.47 an hour for class A tool and die makers. Occupations with average earnings ranging between 65 and 75 cents an hour accounted for well over half of the workers, while slightly less than a third were in oc cupations averaging between 75 and 90 cents an hour. In bag-loading plants, occupational earnings ranged from 48 cents for janitresses to $1.31 for class A pipe fitters. Nearly 87 percent of all the workers studied in this branch of the industry were employed in occupations in which the average hourly earnings ranged from 60 to 80 cents. The ammunition-loading industry is outstanding for the large per centage of women it employs. These workers accounted for nearly three-fifths of the entire labor force of the plants covered by the survey. The employment of women is somewhat greater in bag-loading plants than in bomb- and shell-loading plants. Nearly two-thirds of the employees in bag loading were women. In contrast to the situation in many other manufacturing industries, the employment opportu nities for women in ammunition loading are not limited to a few specialized jobs. Aside from certain indirect jobs which involve either very heavy work or long experience, women were found in nearly every occupation selected for study. Wartime Development of the Industry To supply the facilities needed for loading bombs and artillery am munition on a scale commensurate with other wartime operations has required the building of an entire industry in a period of less than 5 years. In this branch of the ordnance industry, unlike many others, private production facilities could not be converted from other in dustries because of the highly specialized type of plant and equipment needed. During peacetime, the few existing Government owned and i Prepared in the Bureau’s Division of Wage Analysis by Edith M . Olsen, under the supervision of Victor S. Baril. For comparison with earnings in the explosives manufacturing industries, see M onthly Labor Review, March 1945 (p. 603). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 837 838 MONTHLY LABOR REVIEW— APRIL 1945 operated manufacturing arsenals were able to load ammunition in sufficient quantity to meet the relatively smad requirements of the Army aud Navy. Although some expansion of these arsenals was possible, their production has been completely overshadowed by the large new plants built by the Goverument since September 1939. All of these new loading plants, although owned by the Government, are operated by private companies. Although many of these com panies had had no experience in either the explosives or the ammu nition industries prior to the war, they did have the managerial experience needed for large-scale production of war materials. The ammunition-loading industry is widely scattered geographically. Only five States—Illinois, Indiana, Texas, Massachusetts, and Pennsylvania—had more than two plants in operation at the time of the present survey. The few plants in the Northeastern States are relatively small. In line with the Government’s general policy of decentralizing the war industries for strategic reasons, the loading plants built during this war are scattered throughout the interior States of the country. Other factors which entered into the selection of plant sites for the new loading plants were reasonable proximity to other plants in the munitions program, such as those manufacturing the high explosives, gunpowder, and metal components of ammuni tion; availability of natural resources, transportation and housing facilities, and labor supply; and safety of surrounding communities. Consequently, these plants are typically located at some distance from already crowded industrial centers, and have normally been built on large tracts of land in isolated rural areas. Nature of the Industry The information contained in this report is based on a Bureau of Labor Statistics survey of privately operated plants loading aircraft bombs and artillery ammunition. The study included the loading into bags of propellent charges for large-caliber weapons, as well as the loading of component shell and bomb parts, such as fuzes, “boosters,” primers, and detonators. For the purposes of this study, artillery ammunition is defined as ammunition used in cannon of all calibers or, more specifically, in weapons of 20 mm. or more. The two basic types of explosives used in military ammunition are propellants and high explosives. The distinction between the two is made largely on the basis of the speed with which explosion occurs after the charge has been set off. Propellants are relatively mild explosives whose rate of combustion is comparatively slow and which build up pressure gradually. The principal function of the propellent charge is to exert enough pressure on the projectile to propel it from the gun at the required rate of speed. Smokeless powder is at present used almost universally as a propellant. High explosives burn with such extreme rapidity that they cause almost instantaneous reaction. There are numerous types of high explosives, and in military use they serve as bursting charges in shells and bombs and as initiators. The function of the bursting charge, which most have great shattering power and which is carried in the cavity or body of shells and bombs, is to shatter the metal case into fragments. Although several different kinds of high explosives are used, the most commonly used bursting charge is TNT or a mix https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 839 tore of TNT and ammonium nitrate, which is called amatol. Very sensitive high explosives, classified as initiators, are used in small amounts for setting off less-sensitive explosives and are usually loaded into the detonator, fuze, and booster. Since the bursting charge in shells and bombs is relatively insensitive to shock, these initiating explosives are loaded into a small detonator which is placed in the fuze, and into the booster which is generally assembled to the loaded fuze. Chief among the initiating explosives are mercury fulminate and lead azide, which are contained in the detonator, and tetryl, the typical booster explosive. The initial detonation, which is controlled by the fuze, explodes the tetryl charge in the booster, which in turn sets off the main or bursting charge of the shell or bomb. Bombs are explosive missiles designed to be released over the tar get from aircraft. There are many different types and models of bombs, each serving a specific purpose. In general, however, they consist of a metal casing filled with the main high-explosive charge, a booster, one or more fuzes, a fin assembly for stabilizing the fliglit , of the bomb through the air, and an arming-wire assembly to prevent the bomb from exploding prematurely. Artillery projectiles are in many respects similar to bombs. The obvious differences are in size and in the method of projection from the point of release to the target. Bombs, which are released from aircraft, need no propellent charge to send them to their target. Projectiles fired from guns, on the other hand, require a propellent charge of slow-burning gunpowder to force them from the bore of the gun. A complete round of artillery ammunition, which includes all of the component parts necessary to fire the cannon once, includes, ordinarily, the main bursting charge (which is enclosed in the body of the projectile), a fuze and booster assembly, a propellent charge, and a primer loaded with black powder which performs the function of setting off or firing the propellent powder. Depending upon the method of loading the propellent charge, artillery ammunition is classified as fixed, semifixed, or separateloading ammunition. In fixed ammunition the propellent charge is carried as loose powder in thé cartridge case, which is rigidly crimped to the projectile. In semifixed ammunition, the propellent powder is assembled in the cartridge case in bags or increments of varying sizes, and the projectile is easily separated from the cartridge case to allow removal of increments which may not be needed under certain firing conditions. In both fixed and semifixed ammunition the primer is rigidly pressed into the base of the cartridge case. Both types of ammunition are also loaded into the cannon with the primed cartridge case attached to the projectile. In separate-loading am munition, which is used for large-caliber cannon, the projectile and the propellent charge are loaded into the gun separately rather than as a unit. The propellent charge for such ammunition is usually contained in one or more cylindrical bags. Similarly, the primer, or igniter charge (which consists of a small amount of black powder), is contained in cloth bags and loaded into the gun separately. PR O C E SS OF M A N U F A C T U R E Both shell- and bag-loading plants require very extensive plant facilities. A typical loading plant built during thé present war covers many acres of ground, and the various operations are carried (536 3 72— 45------ 10 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 840 MONTHLY LABOR REVIEW— APRIL 194 5 on in widely separated buildings in order to minimize the hazard. The processes involved in the loading of bombs and large-caliber artillery shells are very similar and require the same general type of plant equipment. Bombs are, therefore, generally loaded in plants which also perform shell-loading operations. Shell and bomb loading.—The m anufacturing process carried on in a shell- or bomb-loading plant consists largely of the final assembly of component m aterials into complete ammunition. The explosives, shell or bomb casings, cartridge cases, fuzes, primers, boosters, and detonators are received from outside m anufacturers. They are then inspected and stored, until required, in the loading departm ents. The loading and assembling of these materials is carried on as an assembly-line process. Various departm ents or so-called “load lines” are m aintained for the processing of each particular type of ammunition. Thus, a plant m ay have, in addition to one or more shell- or bomb-load lines, separate lines for loading such component parts as detonators, fuzes, primers, and boosters. In some cases, however, these smaller components are received from other plants, already loaded w ith the explosive charge and ready for final assembly into the completed projectile. The main loading operation for shells and bombs is generally performed by either the melt-load or the press-load process. On the load line, the shell or bomb casings are cleaned, inspected, and painted. Large-caliber shells and bombs are usually filled by the melt-load process, the m ajor operations of which consist in screening, melting, and pouring the main explosive or bursting charge into the shell or bomb cavity. The most commonly used bursting charge is T N T , which is readily melted either alone or with ammonium ni trate. After the T N T has hardened, the booster and fuze are in serted. Some large-caliber shells are shipped to combat zones unfuzed, and the fuze is assembled in the field prior to firing the shell. In the case of fixed and semifixed rounds of ammunition, the projectile is assembled to the cartridge case, which contains the propellent charge and artillery primer. The final operations involve labeling and pack ing or crating for storage or shipment. Inspection is carried on continuously a t each stage of the operation. The operations performed on the lines loading shells by the press load process differ somewhat from those where the melt-loading process is used. The main explosive charge is loaded into the projectile in a dry, rather than molten state, and consolidated into the shell by means of a hydraulic press. Press loading is most generally applied to smaller-caliber shells, such as those used in 20-mm. and 40-mm. cannon. The process of loading such component parts as fuzes, boosters, detonators, and primers is largely confined to very simple assembly work. Artillery primers, the bodies of which are metal tubes filled with a specified am ount of black powder, are generally loaded on a volumetric loading machine. The heads, containing a small percus sion element which ignites upon friction from the firing pin, are staked to the loaded bodies. M ost of the operations on the prim er load lines are mechanized. The m ethod of loading detonators, fuzes, and boosters varies somewhat from plant to plant, b u t in general the operations involve a large am ount of bench assembly work. On the booster-loading line, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 841 for instance, each m inute task is performed a t long tables having numerous stations. Although most of the operations are performed by hand, small crimping and staking machines are used a t the tables to assemble the various parts. Bag loading.—The loading of propellent charges into ammunition bags for semifixed and separate-loading amm unition is a far more simple operation and requires equipment quite different from th a t found in bomb- and shell-loading plants. The m ajor operations involved in the bag-loading plants are the cutting and sewing of cloth bags of various _sizes and the loading of these bags with specific amounts of smokeless powder for propellent charges or black powder for igniter charges. In the hag-making department the cloth is spread and cut into specified sizes and shapes, depending upon the type of charge which is to be loaded. After identification of the charge has been printed on these pieces of cloth, they are sent to the sewing room to be made into bags by seaming on power sewing machines. An opening is left in the bag for pouring in the powder charge. The bag-loading lines are made up of the buildings for the actual loading of the gunpowder and a number of widely separated and barricaded storage magazines. The bag-loading buildings are divided into small rooms with thick concrete walls between them for safety of the operators. In these small rooms, each having only a limited number of operators, the explosive powder is carefully weighed and poured into the bags which have been transferred from the bag-making department. The bag is then closed on a sewing machine and is ready for final inspection and packing. For certain types of am munition, several bags are tied together before packing, to form a charge made up of several increments. Scope andrMethod of Survey This report is based on a survey of the earnings of workers in plants loading bombs and artillery ammunition and includes virtually all of the establishments which were engaged in the loading of these prod ucts during the summer of 1944. Data were obtained for 38 plants; 35 of these were loading bombs and shells or their component parts and employed a total of approximately 133,000 workers, and the 3 others were loading propellent powder bags for semifixed and sepa rate-loading ammunition and employed about 13,000 workers. Because of the many different types of shells, bombs, and com ponent parts processed in these ammunition-loading plants, wide variations existed from plant to plant in the scope of operations. Eight plants, for instance, were loading only such components as detonators, fuzes, boosters, or primers. A number of the plants were loading large shells and bombs by the melt-loading process, while others loaded smaller shells by pressing or consolidating the explosive charge into the shell cavity. Some component parts were also loaded in most of the shell- and bomb-loading plants. Operations in the three bag-loading plants, however, were in each instance confined to the making and filling of ammunition bags. The wage data were collected from plant pay-roll records by trained field representatives of the Bureau, who used written job descriptions in classifying workers in each plant studied. The duties performed by https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 842 MONTHLY LABOR REVIEW— APRIL 1945 workers included within the individual occupational groups are, therefore, closely comparable despite any interplant differences in operations which m ay have existed at the time of the survey. Unusual difficulty was encountered in ascertaining the exact numbers of workers w ithin each occupational group because of the frequent shifting of workers from one job to another as a result of changes in production schedules. The distribution of workers by occupation shown in this report, therefore, represents an averaging of different types of opera tions in these plants rather than an exact occupational distribution as of a particular time. The influence of this factor on the hourly earnings presented in the report is negligible, as the change from one job to another generally consists merely of a change of station within the same departm ent or to some other job for which the same wage rate obtains. Detailed wage data were obtained for 98,022 workers employed in the occupations selected for study. Somewhat more than two-thirds of all the workers employed by the 38 plants covered were classified in these selected occupations, which are believed to be representative of the various levels of skill and earnings in the industry. In each plant visited, the field representative also obtained such other items of information as scope of operations, number of shifts worked, extent of unionization, entrance rates paid to male common labor, methods of wage payment, and the plant policy with regard to premium pay ments for overtime and late-shift work. This general information was found helpful for interpreting the earnings data which constitute the chief objective of the study. The occupational wage data repre sent straight-time average hourly earnings, excluding premium pay ments for overtime work and for work on late shifts. In the main, the data relate to typical pay-roll periods in June 1944. The Labor Force The recruitm ent and training of workers was one of the most serious problems confronting the ammunition-loading industry in the early m onths of the war. As the industry has no real counterpart in peacetime, literally the entire labor force had to be trained by the few people already familiar with the operations. For a large per centage of the workers recruited by the loading plants, this employ m ent involved moving from rural areas and represented their first experience in a m anufacturing plant. Moreover, m any of the workers, particularly the women, were entering the labor force for the first time. The ammunition-loading industry is outstanding for the large per centage of women it employs. These workers accounted for nearly three-fifths of the entire labor force of the plants covered by the sur vey. The employment of women is somewhat greater in bag-loading plants than in bomb- and shell-loading plants. Nearly two-thirds of the employees in bag loading were women. In ammunition loading, unlike m any other m anufacturing industries, the employ m ent opportunities for women are not limited to a few specialized jobs. Aside from some of the indirect jobs which involve either very heavy work or long experience, women were found in nearly every occupation selected for study. Total plant employment varied widely in the plants studied. The actual range was from fewer than 200 workers in the smallest plant https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 843 to more than 10,000 in the largest. All but 13 of the plants employed over 2,000 workers. Nearly all of the operations in the loading and assembling of am munition involve unskilled or semiskilled work, and the training period is relatively short. In fact, most of the jobs require as little as one week of training. Undoubtedly, the most important feature in the training of new workers is that of impressing them with the importance of observing safety precautions and rules in the handling of explosives. Many other steps are also taken to reduce the accident hazard. The loading plants are so constructed as to provide every possible protec tion for the workers. The plants are spread over large tracts of land, and the individual buildings in which explosives are handled are widely separated so as to confine any accidents to only a small part of the plant and thus reduce to a minimum the possibility of endangering large numbers of workers. Safety regulations are of the strictest and apply to all persons entering the processing areas of the plants. Typical safety regulations are the prohibition against carrying matches or wearing shoes with exposed nails in the production areas. Only a specified number of persons and a limited quantity of explosives are allowed in any one building at a given time. Particularly hazardous operations are performed behind shields or barricades. The result of these and many other precautions is reflected in the low accidentfrequency record of the industry during the present war. For the most part, the operations involved in the loading and as sembling of ammunition have been divided into many small and simple tasks, each of which is assigned to a different operator. In most plants there is considerable shifting of workers from one job to another, caused principally by (1) an attempt to offset the monotony of routine and repetitive work and (2) the continual changes made in production schedules and in the size and type of ammunition being processed. Some steps in the loading process require that large numbers of workers be assigned to certain operations. Very considerable pro portions of the workers on the lines loading bombs, shells, and com ponent parts, for instance, are assigned to assembly work. Numerous operators are also required for the packing and crating departments on all load lines. On the melt-load line, the operators pouring the molten TNT into shell and bomb cavities comprise sizable groups. Relatively few workers, on the other hand, are employed as kettlemen and draw-off operators, whose duties are to tend the large units where the TNT is melted and to draw the molten TNT from these units into large tubs. Only a small crew of kettlemen and draw-off oper ators is needed to supply a large group of workers employed in the pouring room. Fifteen of the 38 plants studied, employing 34 percent of the work ers, had union agreements covering a large percentage of their em ployees. Nine additional plants, with 32 percent of the workers, had union contracts which covered only certain groups of employees, such as maintenance or other indirect workers, while the remaining 14 plants, which employed 34 percent of the wage earners, were not unionized. Nearly all union contracts were with the unions affiliated with the American Federation of Labor and with the United Mine Workers of America. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 844 MONTHLY LABOR REVIEW— APRIL 1945 Wage-Payment Practices Because of tlie hazardous nature of the industry, workers employed in ammunition-loading plants are typically paid straight hourly rates. Only 3 of the 38 plants studied employed any workers under incentive methods of wage payment, and most of these workers were in assembly occupations. Incentive workers constituted only about 3 percent of all the workers covered in the survey. Multiple-shift operations were reported by 35 of the 38 plants. Twenty-two of the plants were on a 3-shift schedule, while 12 were operating two shifts. Of the total number of workers employed by the establishments surveyed, approximately 54 percent were em ployed on the first shift, 31 percent on the second, and 15 percent on the third. Twenty-three plants reported periodic shift rotation of production workers. The payment of differentials for work of second and third shifts was reported by 12 plants. Four of these plants were operating only two shifts; and a differential of 5 cents an hour above the first-shift rate was paid to second-shift workers in all 4 plants. Of the 8 plants operating three shifts and paying shift differentials, 4 paid the same premium to both late shifts; in 2 of these 4 plants the differential amounted to 10 percent above the day-shift rate, in 1 plant to 5 per cent, and in another to 5 cents an hour. Two plants paid shift differ entials amounting to 5 percent more than the first-shift rate to secondshift workers, and 10 percent more to third-shift workers. One plant paid a premium of 5 cents an hour to second-shift workers and of 10 cents an hour to third-shift workers; the eighth plant paid no second-shift differential, but gave a premium of 5 percent for work on the third shift. Nearly all the plants studied were operating on a scheduled 48-hour workweek. All paid time and a half for work in excess of 40 hours a week or 8 hours a day. Work on the 6 holidays recognized by Exec utive order was paid for at the rate of time and a half in all but 3 plants. Special provisions were reported for work on the seventh consecutive day by all but 1 of the 38 plants; 36 plants paid double time, and one paid time and a half. Established entrance rates for male common labor were reported by 30 of the 38 plants. Starting rates for these workers ranged from 40 cents to 85 cents an hour, with 9 plants paying from 70 to 75 cents an hour and 12 plants paying less than 60 cents an hour. Occupational Earnings The basic wage data collected during the B ureau’s survey are shown for shell- and bomb-loading plants in table 1 and for the bag-loading plants in table 2. Straight-tim e average hourly earnings are shown, by plant departm ent, for a comprehensive group of occupations in each of these two branches of the ammunition-loading industry. SHELL AND BOMB LOADING The wage data obtained for the 35 plants loading bombs, artillery shells, and the related component parts cover 89,850 workers, classified into 106 selected occupational groups. About 58 percent of these https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 845 workers were women. In June 1944, straight-time average earnings amounted to about 77 cents an hour for all the workers for whom data on earnings by occupation were obtained. The general average for male workers employed in these plants was 88 cents an hour, and the corresponding average for women amounted to 70 cents an hour. This wide difference in average earnings for men and women workers is accounted for mainly by the fact that women were generally employed in large numbers in the lower-paid occu pations. In the maintenance departments, where the wage rates are relatively high, women were found in only two occupations— journeymen’s helpers and class B maintenance mechanics. T able 1.—Straight-Time Average Hourly Earnings of Workers in Selected Occupations, in Shell- and Bomb-Loading Plants, June 1944 United States Occupation Maintenance Blacksmiths____ _______ _______ ..... _______ Carpenters, class A ______ _ . ______________ Carpenters, class B ___ __ _____________ _ Electricians, class A ___ _ __ Electricians, class B.__ . . . ___ _ ... ... . .... _____ Helpers, journeymen_____ Helpers, journeymen, female___ _. . . . _________ . . Instrument repairmen___ ____ _ Machinists, class A _________ _____ _ ______ . M achinists, class B__ _ ._ ._ . . __________ _ . Mechanics, automotive. . _________ _ . ____ _ Mechanics, maintenance, class A . . . ..... Mechanics, maintenance, class B . . . . Mechanics, maintenance, class B, female . . ______ Millwrights, class A . . . . ________________ ____ Millwrights, class B__ . _______________________ Oilers___________ _____________________________ Painters... _____________ _________ ____ _____ Pipe fitters, class A . . _____ __ _ ______ _______ Pipe fitters, class B _______ _ _______ ______ Scale repairmen . . ________ Sheet-metal workers, class A .. _ . . . . Sheet-metal workers, class B _ Tool and die makers, class A ____ _ ________ . . . Tool and die makers, class B _____ ____ . . . ._ _. Welders, hand . . . ___ _ . . . . . . _ __ Northeast Central South N um A ver N um A ver N um A ver N um A ver age age age age ber hou ber ber r ber of of h ou r of h ou r of h o u r work ly work ly work ly work ly ers earn ers earn ers earn ers earn ings ings ings ings 35 $1. 20 686 1. 19 439 1.06 489 1.31 115 1.11 702 .83 22 .78 34 1. 24 330 1.26 216 1.13 406 1.15 404 1.17 535 1.02 14 .83 345 1.24 76 1. 14 84 .89 216 1.15 409 1.30 88 1.15 79 1.10 118 1.29 18 1.15 136. 1. 47 11 1.26 130 1. 25 Supervision Working foremen__________________ . . . . . . _____ 2,427 Working foreladies______ ______ _. ________ _ . . 1,490 .96 .83 6 $1.14 49 1. 20 20 1.04 14 1. 32 15 1.13 37 .87 1 0) 26 45 28 43 79 2 41 7 9 15 33 10 1 17 1. 18 1.16 1.16 1.11 1.06 (i) 1. 33 1.05 .91 1.04 1.23 1.16 (>) 1. 31 25 2 1 1. 46 (i) (•) 31 124 16 $1.23 384 1.22 57 1.02 334 1. 31 18 1.10 197 .93 3 .90 15 1 24 169 1. 30 52 1.13 191 1. 14 192 1.22 187 1.02 13 253 362 141 82 468 18 19 135 119 187 169 269 12 98 45 42 90 143 49 47 40 10 32 $1.19 1.15 1.07 1.29 1.11 .78 .76 71 1.23 943 908 .91 .80 552 . 86 . 78 1 323 . 89 72 22 . 98 20 203 . 70 . 91 109 . 78 40 (i) 57 (i) 126 .89 83 .84 110 .86 577 . 79 970 .96 76 .93 19 .98 198 . 71 68 . 77 76 . 88 . 71 . 83 . 69 77 . 77 .83 .72 .73 .62 .84 .84 .89 206 24 33 111 233 29 31 61 8 79 9 58 1.26 1.06 1.01 1.16 1.34 1. 11 1.17 1. 31 1 10 1. 51 0) 1.29 1.04 1, 453 .84 458 1. 00 .89 1.22 1.12 1.15 1.14 1. 01 (l) 1.17 1.19 .79 1.15 1.24 1.17 1. 06 1. 25 1 18 1.37 Processing Shell and bomb load lines: M elt load: 1,034 Assemblers __. . . 4, 042 Assemblers, female. . . . . . . 245 Booster-cavity drillers . . . .. . . . 78 Booster-cavity drillers, female 20 Cartridge-case fillers . . __ 779 Cartridge-case fillers, fe m a le .__. . . Cleaners, funnel and splash pan 263 291 Cleaners, funnel and splash pan, female 75 Cleaners, loaded bombs ___________ 156 Cleaners, loaded bombs, female . . . . 203 Cooling-tub operators ____ Cooling-tub operators, female .. _ 187 1,094 Craters _____________ . 1,796 Craters, female _____ . . . '252 Draw-off operators ________ . . . 51 Draw-off operators, fem ale... . . . . . 801 Insnectors.'______ ’_______________ _____ .78 .75 .86 .92 .88 . 71 .88 .77 .82 .78 .87 .77 . 79 .70 .92 .90 .96 482 2, 719 ' 173 56 576 154 251 18 30 120 77 517 826 176 32 603 ’Number of workers and/or plants too small to justify computation of an average. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 846 T able MONTHLY LABOR REVIEW— APRIL 1945 1.—Straight-Time Average Hourly Earnings of Workers in Selected Occupations, in Shell- and Bomb-Loading Plants, June 1944—Continued United States Occupation Northeast Central South ver N um A ver N um A ver N um Aage um A ver age age Nber age ber hou r ber hou r ber of of of hou r of h ou r ly ly ly work earn work earn work earn work ly ers ings ers ers ers earn ings ings ings Processing—Continued Shell and bomb load lin es- Continued. M elt load—Continued. Inspectors, female-----. - ------------------------ 1,089 $0. 75 ____ 293 $0. 79 796 _____ __ Kettlemen _ 435 . 91 297 . 94 138 Kettlemen, female _ _ _ ______ 130 .87 100 . 89 30 Packers 289 .78 114 . 89 175 Packers, female _____ _ _ _ __ _ _ 987 .72 731 .76 256 Pourers and puddlers__ ___ -------------------- 973 .88 .91 556 417 Pourers and puddlers, female _ _ _ ___ 2,066 . 82 680 1,386 . 87 Primer-press operators--- -------------------- _ 20 .80 ii .89 9 Primer-press operators, female__ __________ 125 .74 ___ 81 . 76 44 . 86 __ 165 .81 Salvagers _ 88 77 Salvagers, female___ 93 42 . 71 51 . 70 Screeners, powder ___ __ _ 718 . 86 462 . 90 256 Screeners, powder, female _ . 82 336 267 . 81 69 Set-up operators ____ 249 . 74 68 181 . 91 .83 Set-up operators, female___ _ _ __________ 193 134 59 .89 Split operators- ______ . ---------------------73 .86 54 19 .86 (i) 10 Split operators, female ___ __ .77 5 5 Spray painters __ - - _ _. __ 79 . 76 34 45 . 77 .79 Spray painters, female __ _ 100 24 . 80 Unpackers and cleaners. __ _ _ _ _ _ 121 435 . 77 314 . 78 .74 Unpackers and cleaners, female____________ 1, 269 969 .76 300 1 X-ray operators ______ 14 .84 13 . 86 X-ray operators, female 56 .77 33 . 88 23 Press load: .84 404 69 $1. 03 264 Assemblers_______ _____________________ 71 .83 .71 1,594 Assemblers, female ___ ___ _____ 4,108 .77 651 .69 1,863 .81 45 .82 Cartridge-case fillers 35 10 Cartridge-case fillers, female _ ___ 947 .67 129 .75 185 633 .60 .91 107 Consolidating-press operators_____________ 9 50 48 0) (i) Consolidating-press operators, female. _l____ 376 .82 247 .85 23 106 .77 .77 Craters______________________ __________ 237 8 .85 128 101 0) .62 9 Craters, female___ _ _ _______ _____ _ 219 36 . 72 174 0) Crimping-machine operators-_. _ _ ___ 126 .87 64 57 5 0) 0) Crimping-machine operators, female ___ _ 93 .83 93 .83 Facers and buffers __ _ 111 .88 65 .90 46 Facers and buffers, female________________ .65 289 36 .75 168 85 0) Inspectors.- _ _ _ _____ ___________ .85 121 260 .88 2 137 01 .68 Inspectors, female___ __ ________________ 1,060 .74 305 265 . 65 490 ____ ___ Loaders, projectile _ 349 .89 180 169 .90 Loaders, projectile, female ___________ .70 741 54 .81 180 507 0) Packers _ ____ _____ _ _ . 79 84 113 197 . 85 Packers, female____ __ _____________ 1___ 643 .69 171 .79 175 .68 297 Paint-machine operators__________________ 34 .86 17 .91 2 15 (*) Paint-machine tenders, female_____________ 248 .64 64 157 27 .78 .61 (i) Pellet-press operators . 84 14 27 13 Pellet-press operators, female. 114 .73 6 .76 213 93 0) Primer-press operators__ _ ______ 52 .76 16 16 .80 20 (i) 421 Primer-press operators, female_____________ 732 .65 75 236 .59 .78 Salvagers_______ _ _ ______________ 214 .86 96 .97 29 .82 89 Salvagers, female- ___ _ ________________ 426 .72 .74 247 173 6 (') Screeners and blenders _ __ _ ___ ___ 185 .88 63 76 .92 46 .93 Screeners and blenders, female _ . ___ __ 31 .71 31 Unpackers and cleaners__ __ ____________ 159 .87 79 .93 .87 44 36 Unpackers and cleaners, female____________ 278 .66 .67 .84 204 8 66 Component parts: Primer line: Craters. __ . . . _ _ ___ .70 43 47 2 2 0) 0) (i) 1 Dipping-room attendants._ 8 7 .87 Head-assemblv machine operators _ 3 8 .85 5 .96 Head-assembly machine operators, fem ale.__ .66 57 57 Head-assembly machine tenders, female __ . 221 .66 .74 197 9 15 (Ö Inspectors, female _ _ _ __ 687 .68 .64 .75 461 111 115 .92 Lacquering-machine operators. _ _ 8 5 3 .81 Lacquering-machine operators, female _ __ .66 14 66 80 0) Lacquering-machine tenders 13 13 . 61 Lacquering-machine tenders, female. _ „ .78 178 235 .68 38 19 0) Liner inserters, hand, female. 41 63 .71 66 170 .67 (>) .70 Liner inserters, machine, female___________ 102 29 .82 73 Loaders, hand. _ _ __________ _ __ _ .84 4 7 3 0) 1Number of workers and/or plants too small to justify computation of an average. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $0. 73 84 . 78 . 71 .64 .83 73 .70 .70 . 75 72 79 . 83^ . 68 .70 .85 (i) . 76 . 77 . 73 .68 (l) 0) .79 .66 . 78 .67 .89 0) .68 .59 0) . 85 .62 .82 .67 .88 .71 . 74 .65 .81 .63 . 81 .69 .79 .66 .76 .70 .81 .71 .75 .67 .69 (i) (i) .66 .65 .67 (i) .65 .61 .67 .64 .66 0) 847 WAGE AND HOUR STATISTICS T able 1.—Straight-Time Average Hourly Earning of Workers in Selected Occupations, in Shell- and Bomb-Loading Plants, June 1944—Continued United States Occupation N um ber of work ers Processing—Continued Component parts—Continued. Primer line—Continued. Oilers, female _ _. _. __ __ _ _ 5 Packers ................. 45 Packers, female . . . .. . _ 131 Salvagers_____ _________________________ 41 Salvagers, female. . . . . . 105 Screeners________________________________ 18 Screeners, female_________________________ 27 Tube-assembly machine operators, female. . 223 Volumetric-loading machine o p e r a t o r s , female. . . . . . . . 01 Fuze, booster, and detonator lines: Assemblers___________ . . 1, 529 Assemblers, fe m a le ___ ____ . . _____ . . . 15,918 Craters______ ________. . . . 253 Craters, fem a le... . . . _ . . . ____ ______ 52 Inspectors.. __ _______________ ____ 199 Inspectors, fem ale._ ........ ................ ........... . . . 2, 233 Inspectors, powder pellet . . . . . ____ 19 Inspectors, powder pellet, female______ . . . 171 Packers_________ . . . _ _______ _ _____ 199 Packers, female__ ______ . .. ... 483 Pellet-press operators____ _______ _. 167 410 Pellet-press operators, female . Salvagers___________ . . _ _____ ______ 159 310 Salvagers, fem ale.. _____ . . . ____ Screeners and blenders_____ . . . . . . ._ 403 Screeners and blenders, female ____ . 101 Powerhouse A s h m e n ............... . . . 25 Coal handlers . .. 39 Engineer, stationary______ 178 Firemen, stationary boiler________________ . _ 409 Pecording and control Magazine keepers__ ___ 163 Stock clerks. 415 Stock clerks, female____ . . . . 23 S tock m en ... . . . . . . . 443 Timekeepers. 333 Timekeepers, female . . . . . 328 Tool clerks........... ....... 127 Tool clerks, female________________ . 43 Material movement Brakemen. . . . . _____ 319 Conductors, yard__ _____ ___ 159 Conveyor tenders_____ _____ . . . 201 Convevor tenders, female_______ . . 100 Engineers, locomotive__________ . 206 Firemen, locomotive____ ______ 58 Loaders and unloaders _ . _____ 4, 538 Loaders and unloaders, female 413 Truck drivers_______ _ . . . . 2,013 Truck drivers, female____ 134 Truckers, hand_____ _. . 1, 743 Truckers, hand, female. __ 772 Truckers, power __ _____ . . . . ._ 146 Truckers, power, female____ . . . 254 Custodial Change-house attendants.. ______ _ . _________ 165 244 Change-house attendants, fem ale.. _____ Firemen, plant protection_____________ . . . _____ 669 Guards____ _____________________ _____ _ _ __ 2,986 181 Guards, female. ___ . . . _____ . . . . . . . . Janitors. . . ______ _ ___ . . . 1, 111 Janitresses_____ ______________________________ 1,771 Northeast Aver N um age hour ber of ly earn work ers ings Central Aver N um age hour ber of ly earn work ers ings $0.81 . 76 . 70 .70 .70 .93 .82 .69 1 (>) 26 36 3 (>) (>) (>) .73 18 (O 29 .83 30 106 13 60 S 12 200 14 Aver age hour ly earn ings $0. 77 .69 .77 .71 .94 (i) .67 (0 .81 1,176 .70 9, 930 185 .81 (i) 17 33 0) .77 1, 351 2 0) 129 .81 .81 170 .72 333 115 .95 190 .88 106 .87 .81 148 175 .82 94 .84 .66 .64 .66 .62 .75 .65 (>) .72 .64 .63 .90 . 74 .77 .61 .89 .87 .63 . 72 1.24 .95 5 18 5 63 (>) 0) 1. 17 .96 3 5 113 194 (>) .77 1.29 .96 17 16 60 152 .54 .59 1. 14 .92 .90 .90 .75 .82 .91 .75 .89 .75 16 8 3 110 16 101 4 O) .83 (i) .87 0) .78 .83 34 172 4 127 200 116 94 22 .90 .84 .76 .89 .95 .75 .89 .78 113 235 16 206 117 111 29 21 .92 .77 .77 .76 .83 .74 .92 .71 1. 09 1. 20 .80 . 71 1. 26 1. 10 .72 .62 .89 . 75 .74 . 75 .83 . 79 40 .94 40 .83 2 (0 165 99 95 50 136 45 2,650 141 939 41 416 271 121 215 114 1. 14 60 1. 22 .89 66 50 .85 68 1. 31 13 1. 13 .79 1, 633 .77 272 840 .91 93 .93 .89 1,163 484 .86 .85 23 . 78 39 1. 05 1.15 .65 .58 1.17 .99 .59 .55 .85 .66 .65 .69 .72 .82 34 .73 108 .66 269 .82 .84 996 .73 283 .73 .72 1,319 .62 .70 .79 .81 .71 .68 .81 .83 . 73 .69 .51 255 .80 234 .94 164 17 2 .93 .79 (0 5 17 24 389 13 166 55 126 .80 119 .65 .86 376 .84 1,601 .78 168 .75 662 .75 397 i Number of workers and/or plants too small to justify computation of an average. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Aver N um age hour ber of ly earn work ers ings 4 (') 15 $0. 76 25 . 75 2 (O 9 .89 7 .99 (i) 15 23 .82 .69 73 $0. 80 280 .66 3, 145 .70 2, 843 44 .70 24 .81 . 74 35 .81 .81 4 162 .69 113 769 .74 .82 .80 2 15 .74 .79 6 36 29 .66 .65 .63 80 70 .91 34 18 .93 .82 106 .89 114 29 .80 24 (■) .69 147 15 (>) .86 .89 27 201 .87 7 South- .57 .44 848 MONTHLY LABOR REVIEW— APRIL 1945 For all occupations studied, the average earnings ranged from 51 cents an hour for janitresses to $1.47 an hour for class A tool and die makers. The average earnings of the majority of the workers, how ever, fell within a much more limited range. Occupations with aver age earnings ranging from 65 cents to $1.00 an hour accounted for 90 percent of the workers. Average earnings in the 10-cent interval between 65 and 75 cents an hour accounted for well over half of the workers, while slightly less than a third were in occupations averaging between 75 and 90 cents an hour. The greatest concentration of workers within any 5-cent interval occurred in the 21 occupational groups with earnings between 65 and 70 cents, where fully threetenths of the workers were employed. Average earnings amounting to less than 65 cents an hour were paid to only six occupational groups and accounted for 3 percent of the workers studied. At the other extreme, about 7 percent of the workers were classified in the 27 occupational groups whose earnings amounted to an average of $1.00 or more an hour. These occupational groups were composed of male workers in indirect rather than processsing jobs. Workers employed in maintenance occupations were, in general, receiving the highest average rates of pay. With only two exceptions (oilers, earning 89 cents an hour, and journeymen’s helpers, earning 83 cents an hour), male workers in these occupations were paid well over $1.00 an hour. Women workers, employed in two maintenance occupations (journeymen’s helpers and class B maintenance mechanics) earned respective average rates of 78 cents and 83 cents an hour. Other numerically important groups of workers not employed in processing occupations were male loaders and unloaders, truck drivers, and hand truckers. The respective averages for these occupations were 72 cents, 89 cents, and 74 cents an hour. The large group of male guards averaged 83 cents an hour. Approximately two-thirds of the workers whose occupational earn ings were studied were employed in processing jobs on the various load lines. Average earnings for these workers on all the load lines combined amounted to 73 cents an hour. The average for male load-line operatives was 82 cents an hour and for women 70 cents an hour. The highest average rate earned by male workers was paid to inspectors on the melt-load line, who earned 96 cents an hour; the lowest rate for male workers (61 cents an hour) was paid to the small group of lacquering-machine tenders on the primer-loading line. Average hourly earnings for women on the load lines ranged from 62 cents an hour for shell craters on the press-load lines to 92 cents an hour for booster-cavity drillers on the melt-load lines. Somewhat more than nine-tenths of the women employed on the load lines were classified in the 42 occupational groups having average rates between 65 and 80 cents an hour. The largest concentration of male workers occurred in the 18 occupational groups whose average earnings ranged from 85 to 90 cents an hour. These occupations accounted for one-third of the male workers. On each line except the primer-loading lines, where most of the oper ations are mechanized, assemblers constituted the largest occupational group for women workers. This concentration is particularly great on the lines loading fuzes, boosters, and detonators, most of the opera tions of which involve the relatively simple assembly of small parts, and on which women constitute about 85 percent of all workers em https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 849 ployed. About 8 of every 10 women employed on these component loading lines were classified as assemblers and received an average hourly rate of 66 cents an hour. The average earnings of women as semblers on the melt-load line amounted to 75 cents an hour and on the press-load line, to 71 cents an hour. Male assemblers on the melt-load, press-load, and component lines earned average rates of 78 cents, 84 cents, and 69 cents an hour, respectively. Two other nu merically important groups of male workers were shell and bomb craters on the melt-load lines, who earned an average rate of 79 cents an hour, and pourers and puddlers, whose earnings averaged 88 cents an hour. In most of the occupations in which both men and women were employed, the averages shown appear to indicate a wage difference in favor of the male workers. In many cases, however, this differ ence actually reflects minor variations in duties. The male workers are generally required to do any heavy lifting which may be connected with the performance of a particular operation. The packing 4nd crating occupations on the shell- and bomb-loading lines furnish good examples of this difference in duties. Women are employed in these jobs, but the lifting of heavy shells and crates is usually assigned to male operators. Other differences in duties within the same general occupational groups may occur if male operators are responsible for the operation of equipment also used by women workers at the same station on the line. On the primer-loading line, for instance, the machine used for lacquering the primer bodies is usually started and maintained by a male operator who may also be responsible for keep ing the machine in good working order and supplied with the lacquer solution. In a few of the processing occupations the average hourly rate shown for female operators is higher than the average earned by male operators. This is generally a result of interplant differences in plants that did not employ both men and women in these particular jobs. Within individual plants, where both men and women were employed in these occupations, the rates paid to male workers were consistently as high as the rates earned by the women. Regional comparisons.—The 38 plants included in this study are in widely separated wage areas. Consequently there was a considerable range between the highest and the lowest rate paid to workers in many of the occupations. In order to reduce somewhat the effect of extreme locality differences on average hourly earnings reflected in the general averages discussed above, separate figures are shown for three broad regional groups of plants. Because of the relatively small number of plants studied in the survey, however, even these three regions represent plants in widely separated wage areas. Thus, figures shown for the Northeastern region represent plants located in Massachusetts, Delaware, Maryland, Pennsylvania, and New Jersey; the Central region includes plants in Illinois, Ohio, Kentucky, Indiana* Iowa, Kansas, and Nebraska; the Southern region includes plants scattered from Virginia to Texas, including Tennessee, Mississippi, North Carolina, Georgia, Louisiana, and Arkansas. Because of variations in products manufactured from plant to plant, not all occupational groups are represented in all three regions. For instance, in the Northeastern region none of the plants for which figures are shown were loading large shells and bombs by the melt https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 850 MONTHLY LABOR REVIEW— APRIL 1945 load process. However, a comparison of the averages appearing in all 3 regions reveals that plants in the Northeastern region paid, in general, slightly higher average rates for most occupations than those in either of the other two regions, and that plants in the Central and Southern States ranked second and third respectively. For the occu pations for which averages are shown in all three regigns, the averages for the South are lowest in 33 occupational groups, and highest in only 5 occupational groups. The Northeastern region had the highest averages in 25 occupations, and the lowest in 11, while the Central region ranked first in 22 occupational groups and third in 9. On the melt-load lines, where only the Central and Southern regions are represented, the plant averages for the South are lowest in all but 3 of the occupational groups for which averages are shown. A further attempt was made to measure and compare the general level of wages in the industry existing in each broad region at the time of the survey. The average hourly earnings of 73 occupations, all of which occurred in each region, were weighted for each region by the number of workers employed in the occupations for all regions com bined, thus giving each occupation the same relative importance in all regions. A general average for these occupations was then com puted for each region. The resulting average for the Northeast was 83 cents an hour; for the Central region, 81 cents; and for the South, 73 cents. The corresponding average for all regions combined (that is, for the same 73 occupations) amounted to 77 cents an hour, or the same as that for all the 106 occupations selected for study and men tioned earlier in the report. Constant employment weights were also used to compute a general average for the 102 occupational groups found in both the Central and Southern regions. This average was computed in order to com pare the two regions having plants loading large shells and bombs and also having representation in most of the occupations studied. The resulting average for the Central and Southern regions were 82 cents and 73 cents, respectively. Again, the corresponding average for all regions combined was 77 cents an hour. BA G L O A D IN G The wage data collected for the 3 bag-loading plants cover 8,172 workers, classified into 40 occupational groups. Slightly more than two-thirds of all the workers studied were women. Straight-time average earnings for all workers amounted to 71 cents an hour. The average for all male workers studied was 81 cents an hour and that for women workers 66 cents an hour. No women were employed in the maintenance occupations studied. With the exception of journeymen’s helpers, who earned 66 cents an hour, the averages for male workers in these occupations ranged from 90 cents an hour for oilers and scale repairmen to $1.31 for class A pipe fitters. Occupational earnings for women employees ranged from 48 cents an hour for janitresses to 78 cents for inspectors. Aside from main tenance occupations, the range in average rates for male workers was from 59 cents an hour for change-house attendants to $1.28 an hour for locomotive engineers. The highest average for processing workers was earned by the small number of male dyeing-machine tenders. Nearly 87 percent of all the workers were employed in occupations https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 851 whose average hourly earnings ranged from 60 to 80 cents. Roughly a third were concentrated in the four occupations with earnings from 60 to 65 cents an hour, and nearly a third were in five occupations whose average earnings fell within the range of 65 to 70 cents. The women sewing-machine operators making powder bags accounted for the largest occupational group, and were paid 63 cents an hour. The women performing the operation of closing the loaded bags on sewing machines earned 68 cents an hour. Three other numerically important groups of women operators were the powderbag loaders, the shadowgraph-scale operators, and the volumetric weighers. The respective averages for these occupations amounted to 65 cents, 69 cents, and 68 cents. Among male workers, the two largest groups were hand truckers and loaders and unloaders, with average rates amounting to 79 cents and 77 cents, respectively. The guards, constituting another impor tant group of male workers, earned 85 cents an hour. In the proces sing occupations, men were found in smaller numbers than women. The male powder-bag loaders earned 64 cents an hour, on the average, or 1 cent less than women in the same occupation. Within individual plants, however, these workers were paid rates amounting to as much as those paid women in the same occupation. T a b l e 2 . —Straight-Time Average Hourly Earnings of Workers in Selected Occupations in Ammunition Bag-Loading Plants, June 1944 Occupation N um A verage ber of hourly workers earnings 41 22 22 21 166 11 23 35 20 51 4 14 12 37 5 $1.16 1.12 1. 26 .98 .66 1.13 1.06 1.12 1.13 .98 .90 1.06 1.31 .90 1.15 Processing Clnth spreaders _ ________ ____ n utters machine P y ein £-m ach in e tenders. _ Inspectors Inspectors, female TiOaders, powder ba£T _ _____ Loaders, powder bag, female ----Packers --------------- ----- . -----Packers, female------------ --------Printers _____ ___ ______ Printing-press feeders, female __ Sewing-machine operators (bag Sewing-machine operators (bag closers) female Sewing-machine operators (bag makers), female----- ------- -- . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N um Average ber of hourly workers earnings Processing—Continued Maintenance Oftrpp/ntexs, class A ___ Carpenters, class B . Electricians, class A Electricians, class P Helpers, journeymen__________ Machinists, class A_. . ----------Machinists, class B . . . . . . -----Mechanics, automotive----------- _ Mechanics, maintenance, class A. Mechanics, maintenance, class B_ Oilers ____________ _______ _ -Painters___________ _________ pipe fitters, class A Scale repairmen Welders, hand-------- . . . --- . . . Occupation 5 31 6 63 321 217 791 141 283 8 199 .77 .89 1.06 .85 .78 .64 .65 .82 .75 .92 .63 75 .72 574 .68 2,170 .63 Shadowgraph-scale operators___ Shadowgraph-scale operators, female___ . _____ _____ _ Volumetric weighers___ _ _ Volumetric weighers, female. . . 15 $0. 79 470 40 547 .69 . 70 .68 16 1.00 32 108 . 94 .79 8 5 6 400 81 25 546 .92 1.12 1. 28 .77 . 76 .73 .79 15 9 77 254 67 83 .59 .58 .81 .85 .62 .48 Powerhouse Firemen, stationary boiler_____ Recording and control Stock clerks____ _____ _ . . . . . Stockmen_____________________ Material movement Brakemen___________ _____ . . . Conductors, yard. . _ . . . . Engineers, locomotive_____ . . Loaders and unloaders.. ________ Truck drivers _______________ Truck drivers, female___ _____ Truckers, h a n d _______ .. . Custodial Change-house a tten d an ts____ . Change-house attendants, female. Firemen, plant protection. ........ G u a rd s.___ __________ _____ Janitors___________ __________ Janitresses_____________________ 852 MONTHLY LABOR REVIEW— APRIL 19 45 T ren d of Factory E arnings, 1939 to January 1945 THE published average earnings of factory workers are summarized in the accompanying table for selected months from January 1939 to January 1945.1 The earnings shown in this table are on a gross basis (i. e., before deductions for social security, income and victory taxes, bond purchases, etc.). Weekly earnings in all manufacturing averaged $47.52 in January 1945—104.9 percent above the average in January 1939, 78.4 percent above January 1941, and 22.2 percent above October 1942. Such factors as longer hours of work, merit increases for individual workers, premium pay for overtime worked, changing composition of the labor force within plants, shifts in the distribution of workers among plants and among industries, as well as wage-rate increases, account for the rise in earnings. Gross hourly earnings in all manufacturing averaged 104.7 cents in January 1945—65.7 percent above the average in January 1939, 53.3 percent above January 1941, and 17.2 percent above October 1942. Earnings of Factory Workers in Selected Months, 1939 to January 1945 Average weekly earnings Month and year Jan____ Jan____ Jan____ Jan____ July___ Oct____ 1943: Jan. . . . Apr____ J u ly .... Oct____ D ec____ 1944: Jan A pr.. . . July___ Oct____ N ov___ Dec.3__ 1945: Jan.3___ Estimated straighttim e a v e r a g e hourly earnings i Estimated straighttime average hour ly earnings weight ed by January 1939 em ploym ent2 Non All Non All N on All All Non m an u Dura dura m an u Dura dura manu Dura dura manu Dura dura ble ble ble ble factur goods factur goods ble factur goods ble factur ble ble ing goods ing goods ing goods ing goods goods 0) 1939: 1940: 1941: 1942: Average hourly earnings (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) $23.19 $25. 33 $21.57 $0. 632 $0. 696 $0.583 $0. 623 $0. 688 $0. 574 $0. 623 $0. 688 24. 56 27.39 22. 01 .655 .598 .717 .703 .644 .589 .635 .697 26.64 30. 48 22. 75 .683 .749 .610 . 664 .722 .601 .648 .711 33.40 38. 98 26. 97 .801 .890 .688 .762 .835 .670 .729 .810 36. 43 42.51 28. 94 .856 .949 .725 .809 .885 .846 .701 .759 38.89 45.31 30.66 .893 .751 .919 .990 .839 .723 .782 .869 40 62 46 68 32 10 919 1 017 .941 .768 .859 .733 .794 .886 42.48 48. 07 33. 58 .944 1.040 .957 .790 .878 751 .808 .897 42. 76 48. 76 34.01 .963 1. 060 .806 .981 .899 .766 .919 .823 44. 86 51.26 35. 18 .988 1.086 .824 .916 .997 .781 .929 .836 44. 58 50. 50 35.61 .995 1.093 .832 .927 1.011 .788 .942 .846 45.29 51. 21 36. 03 1.002 1.099 .838 .931 1.013 .793 .945 .850 45. 55 51. 67 36.16 1.013 1.110 .850 .942 1.023 .806 .862 .955 45. 43 51.07 37. 05 1.018 1.116 .862 .950 1.035 .815 .874 .973 46. 94 53.18 37. 97 1.031 1.129 .878 .956 1.038 .829 .881 .969 46.85 53.04 37. 87 1.035 1.136 .877 .961 1.046 .828 .971 .882 47. 45 53. 68 38.41 1.040 1.139 .883 .963 1.047 .832 .975 .886 47. 52 53. 55 38.65 1.047 1.146 .890 .840 .894 .985 .971 1.055 (12) $0. 574 .589 .600 .667 .694 716 .724 .741 .750 .765 .773 .778 .792 .799 .815 .815 .818 .824 1 Average hourly earnings, excluding the effect of premium pay for overtime. 2 Average hourly earnings, excluding premium pay for overtime, weighted by man-hours of employment in the major divisions of the manufacturing industry for January 1939. 3 Preliminary. Straight-time average hourly earnings, as shown in columns 7 to 9, are estimated to exclude premium pay at time and a half for work in excess of 40 hours. The effect of extra pay for work on supplementary shifts and on holidays is included. For all manufacturing, the straighttime average in January 1945 was 97.1 cents per hour; this was 55.9 i Compare Trends in Factory Wages, 1939-43, in M onthly Labor Review, November 1943 (pp. 869-884), especially table 4 (p. 879). For detailed data regarding weekly earnings, see Detailed Reports for Industrial and Business Employment, January 1945, table 6 (p. 904), in this issue. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR STATISTICS 853 percent higher than in January 1939, 46.2 percent above January 1941, and 15.7 percent above October 1942. The shift of workers from relatively low-wage to relatively highwage industries since 1939 would have raised the average earnings of factory workers, even if no other influences had been present. The effects of such interindustry shifts have been eliminated from the averages shown in columns 10 to 12 of the table. If employment had been distributed between industries as it was in January 1939, the straight-tim e hourly earnings of factory workers would have averaged 89.4 cents in January 1945, or 43.5 percent above the corresponding average in January 1939, 38.0 percent above January 1941, and 14.3 percent above October 1942. Between December 1944 and January 1945 the increase in straight-tim e hourly earnings, after eliminating the influence of shifting employment, amounted to 0.9 percent. Even this latte r series of averages exaggerates the rise in wage rates, because it includes the influence of interplant shifts of employment, m erit increases for individual workers, and premium rates for work on extra shifts and on holidays. Increased Efficiency and Reduced H ours in a Canadian E n te rp ris e 1 INCREASED efficiency of labor has made possible the substitution of a 40-hour week for the 48-hour week in the factories and offices of Lever Brothers of Canada. In an experiment in a Toronto plant of the company, measures suggested by the joint labor-management committee resulted in an increased output per man-hour which reduced labor costs 20 percent during the 6-month trial period. This made it possible to reduce hours to 40 per week, with no loss in production. The National War Labor Board approved the ‘‘shorter hours” plan, authorizing incentive pay at the rate of 20 percent above the basic hourly rate. Weekly earnings, therefore, remained what they had been under the longer workweek. The decision of the Board is subject to review at the end of the first 6 months of 1945, during which time the increased worker productivity must be maintained. In this program, employers and employees recognized as of mutual interest the need for reducing hours of labor without raising produc tion costs. Em ploym ent, E arnings, and H ours in Ireland, O ctober 1 9 4 3 2 ACCORDING to preliminary figures of the 1943 census of industrial production in Ireland, average weekly earnings for males in October of that year ranged from 49s. 2d. in the butter, cheese, etc., industry to 100s. 5d. in the tobacco industry. Hourly earnings of males aver aged from Is. O.ld. to 2s. 2.8d. in the same two industries. Earnings 1 Data are from the Trades and Labor Congress Journal (Montreal), January 1945. 8 Data are from Irish Trade Journal and Statistical Bulletin (Department of Industry and Commerce, Dublin), June, September, and December 1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 854 T able MONTHLY LABOR REVIEW— APRIL 194 5 1.—Employment (Salaried Workers and Wage Earners) in Ireland, by Industry and Sex, Mid-October 1943 E m ploym ent1 Salaried workers Industry Wage earners Total Male Aerated and mineral waters------ ------ -------------------Bacon curing----------------------------------------------------Boots and shoes2_____ - _________________ ____ ___ Brewing----------- --------- ---------------- -------Brushes and brooms-------------------------------------------Chemicals, drugs, etc____________________________ Fellmongery and leather-------------------------------------Gas works establishments___________________.•------M alting2 ____________. __________________________ Oils, paints, and polishes---- ------ ------------ ------ -----Railways and tram w ays...— ........................................ Clothing: M en’s and boys’ readymades3 __________ _____ Women’s and girls’ readymades3-------------------M iscellaneous _________________________i... Distilling_______________________________________ Engineering and implements-------------------------------Hosiery___ _____ _______________ ________________ Laundry, dyeing, and cleaning---------1------------------Linen, cotton, jute, and canvas----------------------------Metals (excluding engineering)_________ _________ Papermaking and stationery_____________________ Shirtmaking2------------- --------------------------------------Soap and candles________________________________ Sugar, sugar confectionery, preserved fruit and vege tables, pickles, and sauces------- ------------------------Timber---------------------- --------- ----------------------------Tobacco____ _____ ___________________ ____ ______ Assembly, construction, and repair of vehicles-------Wood furniture and upholstery---------------------------Woolen and worsted------------ ----------------------- ------Bread, flour confectionery, and biscuits___________ Bricks, pottery, glass, cement, and monumental masonry__________________ ________________ — Building and construction.______________________ Grain milling___________________________________ Butter, cheese, condensed milk, and margarine------Canals, docks, and harbors______________________ Electricity--------------------------------------------------------Local authorities and Government departments___ Mines and quarries______________________________ Printing, publishing, and bookbinding_____ ____ _ Waterworks____________________________________ Miscellaneous industries__________________ ___ ,— Female Male Female 1,017 1,747 5,152 3, 822 426 858 1,660 2, 054 954 813 7,133 213 351 173 535 37 133 165 369 115 165 218 68 95 163 201 24 100 43 66 15 63 41 664 913 2,727 2, 942 179 257 3 1, 227 1, 590 818 396 6, 856 72 388 2,089 144 3 186 368 225 29 6 189 18 3,694 3, 980 1, 369 602 3,046 5,687 3,466 2,308 3,187 2, 203 1, 252 606 177 234 98 120 278 202 104 137 378 139 83 99 131 238 67 16 144 215 350 83 125 95 31 38 714 534 196 435 2, 047 778 3729 870 3 2, 272 870 80 210 2, 672 2, 974 4 1, 008 31 577 « 4,492 2, 283 3 1,218 412 1,093 « 1, 058 259 4,834 4, 355 2,161 1,898 1,976 3, 593 8,075 595 452 367 227 219 181 825 327 93 106 67 69 111 496 1, 501 3 3, 776 501 1, 570 3 1, 341 7 1, 580 5,105 2,411 34 1,187 3 34 3 347 3 1, 721 1,649 2, 306 10, 268 3, 421 3, 517 737 3,196 19, 201 3,204 6,019 945 6,113 296 987 657 826 51 836 736 207 1,167 140 696 82 197 169 94 2 167 111 26 380 10 276 3 1,720 9, 071 2,498 3 2, 213 682 2,123 18, 314 2, 962 3 3,100 794 3,506 208 13 3 97 384 2 70 40 9 1,372 1 8 1, 635 1 Including both workers under 18 years of age and those 18 and over. 2 Wholesale factories. 3 Including fewer than 15 outside piece workers. 4 Including 126 outside piece workers. 3 Including 1,537 outside piece workers. 6 Including 52 outside piece workers. 7 Including 35 outside piece workers. 8 Including 30 outside piece workers. of females were from 21s. Od. weekly in building and construction to 51s. 6d. weekly in the tobacco industry, and from Os. 7.8d. hourly in the bricks, pottery, etc., group to Is. 2.7d. per hour in the tobacco industry. Such earnings included overtime, bonuses, and other forms of payment in excess of normal weekly wage rates; National Health and Unemployment Insurance contributions, deducted by the employer; and income and other public taxes, also deducted by the employer. The range of total hours worked during the week (includ ing overtime) was, for males, 36.2 to 50.6 for boot and shoe workers and employees of gas works, respectively; for females the range was from 22.4 hours in gas works to 46.6 in the bacon-curing and butter, cream, etc., industries. The 1943 census covered a selected group of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 855 WAGE AND HOUR STATISTICS 41 industries employing a total of 142,855 persons. Of these groups, local authorities and Government departments employed the largest number of workers—19,201-—And the brushes and brooms industry accounted for the fewest—426. All the figures given were for a single week in October. Details of the census concerning employment are presented in table 1, and earnings and hours in table 2. T a b l e 2 . —Earnings and Hours of Wage Earners in Ireland, by Industry and Sex, October 1943 Average earnings of wage earners1 Industry Male Female d. 9.5 9.5 0.4 1.3 0.3 9.0 8.5 11.9 d. s. 59 7 69 8 64 5 84 9 91 7 63 3 63 5 82 3 59 10 65 11 68 8 s. d. 34 1 37 0 35 9 27 11 44 7 30 0 31 0 22 2 («) 31 6 30 7 45.7 47.3 36.2 43.2 45.0 43.0 46.5 50.6 48.5 44.0 48. 2 43.3 46.6 34.7 25.2 43.4 40. 1 43.9 22.4 (4) 42. 7 37.8 35 9 33 8 5 30 2 32 3 29 5 5 33 9 33 7 « 29 11 32 4 36 3 5 32 0 37 1 38.7 42.4 40.8 46. 1 46. 5 43.0 5 46.9 45. 4 5 45.9 46.1 38.1 40.1 37.1 38.4 5 40.4 42.9 38.9 5 41. 1 44.4 ‘ 43.3 42.4 42. 7 5 37. 4 40. 5 5 34 1 31 8 6 5 51 6 4 5 34 2 3 5 40 10 1 37 11 2 39 4 46.1 5 45. 9 45.0 44.7 5 44. 4 48.0 47.4 42. 2 39.3 42. 1 « 38.0 5 43. 4 44. 5 44.2 27 7 21 0 30 11 38 0 (4) 30 1 5 45.1 43.9 47.9 48.8 43. 6 45.8 41. 9 5 44.5 42. 2 24. 5 41. 3 46. 6 C) 26.9 s. 0 0 1 1 1 0 0 0 1 1 1 1 1 1 51 1 ■'1 1 1 1 10.5 9.5 6.7 5.7 5.4 6.6 6.4 3.0 5.5 8.1 7.7 8.5 0 0 50 0 0 30 0 50 0 0 30 0 11.6 72 5 10.5 75 10 9.0 63 8 68 3 9.0 67 5 9. 1 9.8 66 8 9. 1 5 72 0 56 10 8.3 9. 1 5 67 2 77 2 10. 2 62 6 10.3 68 7 11.0 1 51 2 1 51 1 1 6.1 3.5 2.8 8.5 6.7 3.3 7.6 0 0 1 50 50 0 0 9.7 9.7 2.7 10.8 11.3 10.5 10.7 51 1 1 1 1 1 1 Printing, publishing, and bookbinding--------------- 5 1 5. 5 7.5 4. 2 0.1 7.3 8.6 3.8 10.9 0 0 0 0 1 Aged 18 years and over. 2Wholesale factories. s Figures are for October 1942. 1 Less than 10 persons engaged. * Excluding outside piece workers. 6 3 6 3 7 2 — 45 11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7.8 10.3 9.0 9.8 :<) 1 1.4 0 9.7 Female Female d. 3.7 5.7 9.4 11.5 0.4 5.7 4.4 7.5 2.8 6.0 5.1 0 8.8 0 9.7 Male Male s. 1 1 1 1 2 1 1 1 1 1 1 Aerated and mineral waters_____ _____ _____ .. Bacon curing------ ----------- ------------------------------Boots and shoes 2__ ____ _ ___________________ Brewing--------------------- --------------------------------Brushes and brooms----------- ------------------------ . Chemicals, drugs, etc-. _ _____ ____________ Fellmongery and leather-------------------------------Gas works establishments_____________________ Malting L . ---------- ----------------- ------------- Oils, paints, and polishes ______ Railways and tramways------------------------ -Clothing: M en’s and boys’ readymades 2--------------------Women’s and girls’ readymades 2----------------Miscellaneous__ , ___ -------- - D istillin g.. .......... -------- --------------. . . Engineering and implements . . . . Hosiery. . ---------- ---- -Laundry, dyeing, and cleaning----------- ------------Linen, cotton, jute, and canvas.. . . -------- Metals (excluding engineering) — --- ---------------Papermaking and stationery----------------------------Shirtmaking 2-------- --------------------------------------Soap and candles. . . . . . ___ . . ... Sugar, sugar confectionery, preserved fruit and vegetables, pickles, and sauces.. . . . ------------Timber . . . . Tobacco------------ ------------------------------------------Assembly, construction, and repair of vehicles----Wood furniture and upholstery.-. ._ ------- -----Woolen and worsted__________________________ Bread, flour confectionery, and biscuits------ . .. Bricks, pottery, glass, cement, and monumental masonry_______________________ ___________ Building and construction. _____ ___ Grain m illing________________ _______________ Butter, cheese, condensed milk, and margarine. __ Canals, docks, and harbors. ______ . ----------E lectricity.. ----------- . . . . . . . . -------------------- Weekly Weekly Hourly Average hours of wage earners 1 69 » 59 100 76 5 69 61 77 5 65 11 71 3 64 6 49 2 70 3 78 10 1 » 84 9 36 4 44.8 Wage and Hour Regulation New M inim um Rate for Cotton-Textile In d u s try 1 T H E N ational W ar Labor Board has ordered a minimum rate of 55 cents an hour for 54 cotton-textile and rayon companies located in New England, in New York and Pennsylvania, and in the Southern States. This rate is to replace the former minimum of 50 cents per hour. According to its chairman, “the Board in these three textile orders is not only raising these substandard-of-living wage rates for the sake of the workers involved b u t is striving to increase production in a critical war industry.” To aid the parties (the companies and the workers) in negotiation of the wage agreements, the Board has set forth “guidepost” rates for certain key occupations, in order to insure a proper alignment of the wage schedules. These key-rate guides are not identical in all three cases, because they are based on the area rates. Thus, the lowest guide rate for the Southern and New York-Pennsyl vania areas is 55 cents an hour for common labor, while the lowest in the New England area is 57 cents for scrubbers and sweepers (a few employees in the New England mills receive a rate below the scrubber-sweeper category and thus are affected by the minimum rate). The top “guidepost” (for loom fixers) is $1.02 in the New England and New York-Pennsyl vania areas, while it is 90 cents in the Southern area. Having raised the minimum rate to 55 cents, the Board found it necessary to increase all rates above the previous 50-cent rate by 5 cents an hour, in order “to keep the minimum differentials between immediately interrelated job classifications necessary for the main tenance of productive efficiency.” The Board stated that it had found the wage-rate structure compressed close to the 50-cent minimum, because of gradual increases in minimum rates over a period of years and failure in the past to keep the proper differentials between jobs above the minimum. Three other provisions of the order should be noted. The Board ordered a retroactive paym ent equal to 5 cents per hour dating from October 1, 1944, unless otherwise agreed by the parties. A second provision (applicable only in the Southern area) orders paym ent of a prem ium of 5 cents an hour for work on the third shift, and effective as of the date of the B oard’s order. The third item pertains to 11 southern companies in which the m atter of vacations was an issue. The Board ordered 1 week’s vacation with pay for employees with 1 year of service unless a more liberal plan was contained in an expired contract in the company involved. The vacation allowance is to be computed as 2 percent of the individual employee’s total earnings during the previous year, and the employees are to receive vacation 1 National War Labor Board, Press release (B-1963) February 21, 1945. 856 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE AND HOUR REGULATION 857 pay in lieu of vacation time, if the company “requires their services in the interest of war production.” Wage O rder for Sugar In d u stry in P u erto Rico BY WAGE order effective on January 15, 1945, a wage rate of 35 cents an hour became effective in the Puerto Rican sugar industry under the terms of the Fair Labor Standards Act. The order applies to employees engaged in commerce or in the production of goods for commerce in the production of raw sugar, cane juice, molasses and refined sugar, and incidental by-products, provided that the indus try shall not include transportation by common carriers or any activity which is exempt under section 13 (a) of the Fair Labor Standards Act of 1938. M inim um Wage Rates in Costa Rica, August 1944 to June, 1 9 4 5 1 MINIMUM wage rates for a large number of industries in Costa Rica were established by decree of August 7, 1944, to be effective from Aug ust 11, 1944, until June 30, 1945. Such rates were to supersede any lower rates fixed by collective agreement, but were not to affect any higher rate so fixed nor any provisions relating to housing, land for cultivation by workers, the furnishing of implements for work, and medical and other benefits. In cases in which rates were not fixed by the decree, the rates being paid on the date of publication of the decree were to be considered the minima until replaced by officially estab lished rates. Monthly wages set for various occupations ranged from 15 colones 2 (with living) for cooks to 300 colones for certain supervisory nurses; weekly wages ranged from 6 colones for printers’ apprentices to 125 colones for newspaper editors; daily wages ranged from 2.50 colones (with food) for agricultural workers to 12 colones for sea captains; and hourly rates ranged from 25 céntimos for weavers’ helpers to 2.25 colones for master builders in the construction industry. Piece work rates were set in the shoe and tailoring industries. The table below shows the rates established for workers in agricul ture, bakeries, commerce, construction, and other industries common to different Provinces of Costa Rica. 1 La Gaceta—Diario Oficial (San José), August 11,1944, and October 6, 1944; and report of S. Walter Wash ington, chargé d’affaires, United States Embassy at San José, October 11, 1944. 2 Average exchange rate of colon (100 centimos), August 1944=17.6 cents. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 858 MONTHLY LABOR REVIEW— APRIL 1945 Minimum Wage Rates Established in Costa Rica, by Province and Occupation, August 11, 1944-June 30, 1945 Industry and occupation Unit Agriculture: Skilled workers (coffee, banana, etc.)_________ Hour____ Unskilled workers______ ___do_____ Bakeries: Foremen___________ . . . 8-hour day1 B akers________________ do Weighers.... ________ do Commerce: Salaried employees____. M onth.. Cashiers____ _______ Clerks_____ __________ Messengers___ _______ Construction: Master workmen (forem e n ) .____________ _ Cabinetmakers . . . . . . Carpenters____ ... Masons______ . . . . . . . Pipe layers... _________ Painters_______________ Helpers______ _____ . . . Laborers... _. _____ __ Domestic service: Cooks, laundresses, servants.. _____ Nursemaids______ ____ Metallurgy: Skilled metal workers Helpers........ ...................... Laborers____________ Sawmills: Filers_____________ Sawyers______________ Saw carriage m en____ Planers_______________ Wood salesm en... __ Sawyers’ or carters’ helpers_______________ L a b o r e r s .._____ Balsa workers______ . . . Soap factories: Soap makers________ Slabbers___ ___ Kettle workers___ Frame workers, slatters Helpers__________ Sugar mills: Mechanics _______ Tractor m en_______ Sugar boilers____ Centrifugal tenders Crusher operators Tanneries: F o r e m e n ...___ Scrapers. .. Laborers___ Transportation: Taxi d r i v e r s _____ Truck drivers__________ Bus drivers .............. Bus conductors____ _do do do San José M a juela Cartago Heredia Puntarenas Colones Colones Colones Colones 0. 46 ^ - 0. 53 0. 531/4- 0. 531/40. 62 H 0. 62H 0. 66H . 35- . 47 .40 . 40-, 47 . 40-, 50 .90 .75 Colones 0.75 Colones 0.62H-0. 70 .50 . 50 75 2 1.00 2 1.00 .95 .80 . 70 90 .75 .95 80 .70 96. 00 96.00 50. 00 96 00 96 00 50.00 96 00 96 00 50.00 100 on 100 00 5o! oo 50.00 75. 00150. 00 50. 00 Hour____ __ d o ._ ___ ___do_____ __do_. ___ _-_do___ _ ___do ___ do do 2. 25 1.35 1. 35 1. 25 1.00 . 80 .70 1. 25 1.00 1.00 1.00 1. 00 . 60 . 50 1. 25 1.00 1. 00 1.00 1.00 60 .50 1 25 1. 00 1. 00 1. 00 1. 00 60 .50 3 1. 25 3 1. 25 75 '.50 75 .50 M onth___ do 4 20.00 4 15. 00 4 15.00 4 10. 00 4 15.00 4 10.00 4 15. 00 4 10.00 4 20. 00 4 15.00 4 20.00 4 15.00 Hour____ ___do_ ___ ___do ___ 1.00-1. 50 .80 .60 1. 00-1. 50 . 75 .50 1 00-1 50 75 .50 ___do ___ ___do ___ ___do ___ ___do__ ___ __do_ 1. 25-1. 75 1. 20-1. 50 . 70-, 85 . 90-1. 30 1.00 1 50 1.25 1 50 1.25 1.10 1.00 1 10 1.00 80 . 65 .65- 75 80 65 . 65-. 75 1 00 . 85 . 75 .60 1 00 85 . 75 .60 __do ___ ___do_ ___ ___do ____ __.do ___do ___do ___do __ do ___ ___ ___ . _ ___do_ ___do_ ___do_ ___do_ ___do_ ___ ___ ___ ___ ___ 1.10 . 70 .60 .50 .50 1.10 . 70 .60 .50 .50 1 10 . 70 .60 . 50 . 50 .do ___do___ __-do_____ 3 7 50 3 6.60 5 5. 60 90 . 80 . 70 90 80 .70 1 25 90 .75 1 25 90 .75 ___do_____ __do__ ___do ___ __-do_____ 1.00 .80 .90 .45 1.00 . 80 . 90 .45 1 00 80 . 90 .45 1 00 80 90 .45 1 00 80 90 .45 1.20-1.45 . 75-1.05 . 65- 75 1 Rates for 6-hour night shift range from 0.90 centimo to 1.75 colones per hour. 2 For cake and biscuit makers 3 For skilled workmen. 4 W ith room and board. 6 Per day. 6 W ith commission. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Limón WAGE AND HOUR REGULATION 859 Province oj San José.—By far the greatest number of rates in any one Province were listed for the Province of San José, which includes about one-third of the population of Costa Rica. Among the indus tries covered were the following: For the textile industry, 45 different rates ranging from 25 centimos per hour for weavers’ helpers to 1.50 colones for mechanics and 1.80 colones for dyers; for carpentry and woodwork, 27 rates ranging from 50 centimos per' hour for varnishers to 1.50 colones for cabinetmakers, turners, and wood carvers; for aviation workers, 23 rates with a low of 60 centimos per hour and a high of 1.75 colones; for brewery workers, 8 rates ranging from 35 to 75 centimos per hour; and for nurses, 13 rates ranging from 50 colones per month for practical and student nurses to 300 colones for head nurses. The highest minima set in the Nation were also in this Province—7 colones per hour for occasional work by orchestra directors and pianists. Province oj Guanacaste.—The smallest number of rates for any one Province were set for the northwestern Province of Guanacaste, an area in which the main occupation is grazing. Hourly rates for con struction and wood workers were 50 centimos to 1.00 colon and for sugar-mill workers from 45 to 75 centimos. Agricultural laborers were to receive from 2.50 to 3.20 colones per day with food. Rates for cattle ranch workers were established by the month, with a low of 20.00 colones (food provided) and a high of 80.00 colones. Piece-work rates.-—Throughout all the Provinces except Guanacaste, piece-work rates were established for most processes in tailoring and shoemaking and for some occupations in other industries. For the sugar industry, some rates (not given in the table) were fixed (per 100 bundles) for processes involying bundles of sugarcane. M inim um Wage Rates in New Zealand, 1944 THE annual report of the New Zealand Department of Labor for 1944 included minimum wage rates in a number of principal industries. Such rates were established by awards issued by the Court of Arbi tration, and were in effect on March 31, 1944. With stated excep tions, all the wage rates are subject to an increase of 5 percent as from August 12, 1940, and an additional 5-percent increase from April 7, 1942. In addition, as shown in the table, further rises in specified rates have been authorized under the emergency regulations of December 15, 1942, which permitted the Court of Arbitration to increase rates in cases involving anomalies or in those already pending at the date of the regulations, and to grant increases up to £5 5s. a week for male workers or to £3 for females. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 860 MONTHLY LABOR REVIEW— APRIL 194 5 Minimum-Wage Rates in New Zealand, as of March 31, 1944 [With exceptions noted, all rates shown are subject to 5-percent increase from Aug. 12, 1940, and an addi tional 5-percent increase from Apr. 7, 1942] Minimum rate Per hour Per 40-hour week Increase from Dec. 15, 1942 s. d. £ s. d. 15 5 0 to 5 0 Occupational group Bacon workers_______________,____ 16 4 15 0 to 5 15 0 2 15 0 M ale_____ __________________ 2 6M 1 105H m 2 5 to 9 22 10 0 33 0 0 15 5 0 to 16 5 0 F em ale,...................... Butchers (retail)_______ 2 2 15 0 64 8 to 35 0 32 h to 3 2 15 Female______________ ____ _____ Clerical workers: M a le .______ ______________ ____ F em ale.____________ ________ _ Clothing-trade employees: M ale__________________________ Female________________________ Coach workers..___________________ Flour-mill employees. 0 7 4 16 6 to 76 0 6 4 16 to 5 8 «4 13 io 5 10 M otor. Engineering-trade employees. 0 6 5 2 6 2 15 0 Drivers: Engine drivers, firemen, and greasers: Drivers, first-class certificate_____ Drivers, second-class certificate___ Firemen and greasers____________ 4 85 10 0 63 5 0 Cheese- and butter-factory employees. Linesmen. 1 10 0 7 M a le ..___________ Horse_____________ Passenger transport. Electrical workers: Tradesmen................ 2 6 5 0 2 2 Canister workers: M ale______________ Female__________ Carpenters and joiners... Cleaners and caretakers: 10 0 1 5 15 0 Bakers__________________________ Biscuit and confectionery workers: Female____________________ .. Boot and shoe operatives: M ale________________________ F em ale,.......................................... Bricklayers_____________________ Brick, tile, and pottery workers: S. d. 2 2 to 8 0 0 0 0 a 2 4M ( 8) ( 8) M 2 to 2 11 2 4 to 2 8 6 6 5 6 6 5 16 4 16 6 11M 1 44-hour week. 2 Dunedin. 3 N ew Zealand Insulators, Timaru. 4 Allowed. 5 40- to 44-hour week. 8 Establishment hours. 7 Butter, 40-, 44-, or 48-hour week, according to season; cheese, 38-, 44-, or 52-hour week, according to season. * 5-percent increase for 42-hour week, 7M-percent increase for 43-hour week, and 10-percent increase for 44-hour week. 8 3s. increase per week for 2 horses, and 6d. per day extra for each additional horse. i° 88 hours per fortnight; 80 for omnibus drivers. h For storemen. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 861 WAGE AND HOUR REGULATION Minimum-Wage Rates in New Zealand, as of March 31, 1944—Continued W ith exceptions noted, ail rates shown are subject to 5-percent increase from Aug. 12, 1940, and an addit tional 5-percent increase from Apr. 7, 1942] Minimum rate Occupational group Per hour s. d. Fur workers: M ale__ _ ----Female --- _______________ ______________ Gas-works employees_________________ .. _____ Glove workers: ___ _ - - - --- £ - - - - - _______ - ___ . . . _________________ Furniture-trade employees, male___ Male Per 40-hour week -_ 2 to 2 2 to 2 4M 9 4M 9 ________________ - .- . . . . ... 1 J . - ( •! 1 4 17 to 5 10 2 15 15 5 6 Male _ - - - - - Female_____ . . . _______ _ _ . ................. . j ______ Painters and decorators. ................. Plasterers________ _ _ _ . _ . Plum bers... ___. . _ ____ ... .... __ _____ ... Printers’ machinists, etc_______________ . ________________ Rubber workers: ___________ _ _ ___ [ 4 1 M ale____________ _____ is 2 is 2 is 2 is 2 Female _ ... I ___ „ f 4 1 17 19 15 17 2 6 5 5 0 2 12 6 1 0 2 6 4 5 0 to 1_________ 5 15 0 f 5 0 2 6 2 4 to 1___________ 2 9 J 1 3M 1 44-hour week. 5 40- to 44-hour week. u 44-hour week. N ot subject to the 5-percent increase from Aug. 12,1940. 13 N ot subject to the 5-percent increase from Aug. 12, 1940. n 42-hour week. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 2 0 6 n5 H3 ................... . 4 10 0 to 1_________ 6 0 0 J 2 15 0 9.575 6.950 7.475 9.575 . .. . _____ . . . 4 10 0 1_________ to 5 7 6 1 2 4M 1 ....... to 3 0 1 1 Warehouse employees: Male _________ __________ Female Woolen-mill employees: .... 4 4 4 4 ____1____ f . . ______ \ 1 _________ _ 15 0 1_________ to 5 0 J 2 6 12 6 15 10 0 13 7 6 Tobacco workers: M ale. __________ ______ - _ . _______ Female. _ _ _____ _ _ _ . . . Tramway employees: Motormen (after first y e a r ) __ _ . ____ _ Conductors (after first year) . . . _ . . . . Conductors (after fifth year)____________ ___ __________ _ Motor-bus drivers. ________________________ . ______ Typographers__ ____ - __________ . . _ 2 5 1 to 2 11 f 2 9 2 10M 2 9M f ■j 1 - _ Female_______ ___ ._ . ______ Shop assistants: M ale. ____ . . . ____ _ ._ ______ ___ Female____ _ _________ _____ . __ _______ Storemen and packers: Wholesale ______________ _____ ___ - . . - . - .. . Oil stores__ __ ... Wool, grain, etc., s to r e s _______ . ____ ___ Fruit and produce_________ . _________________ Timber-yard and sawmill em ployees.-, 1_________ 0 I 2 6 0 0 1 1 f 34 4 [ « 6 «2 ............... ... M ale. __________ 2 4 to 2 7 ________ Motor-engineering-trade employees . . M 12 5 13 0 13 17 6 f 4 l ...................... 2 6 1 1 Female________ ______ ___________ Grocers’ assistants_____ . . . ________ . _________ .. Hairdressers: - - - - - Male . _____ _ . - . ________ Female__ ... . . ______ __________ Laborers____. . . s. d. s. d. 5 10 0 2 15 0 \ _ .. 4 1 f 4 1 Laundry workers: Increase from Dec. 15, 1942 Cost o f Living and Retail Prices L iving Co9ts in Large Cities, F ebruary 1945 ONLY minor changes occurred in retail prices of most staples pur chased by moderate-income city families during the month ending February 15, 1945. The continued seasonal decline in egg prices was the chief cause of a decrease of 0.6 percent in average food prices and 0.2 percent in prices of living essentials. The Bureau of Labor Statistics cost-of-living index for February 1945 was 126.8 percent of the 1935-39 average and 2.4 percent above the level of February 1944. Prices of the family food budget, with the exception of eggs, were comparatively stable. Prices were higher for onions, spinach, potatoes, and sweetpotatoes, while those of oranges, green beans, and cabbage were lower, as new crop shipments reached retail markets and “disaster” ceilings were removed from some crops. On the average, fresh fruit and vegetable prices declined slightly. Eggs, which represent about 6% percent of the average family’s food costs, dropped seasonally by 9.7 percent during the month. Clothing prices rose 0.2 percent between mid-January and midFebruary, with scattered advances for many clothing articles, result ing from continued short supplies of medium- and low-priced mer chandise. Women’s percale housedresses and rayon underwear and men’s cotton socks and woolen suits showed the largest cost increases during the month. Housefurnishings prices rose slightly (0.1 percent) as a result of some increases in prices of bedroom furniture, gas stoves, wool rugs, and sheets. February furniture sales were not so widespread as usual. The housefurnishings index for February reflects in some cities, in addition to the price movement of the month, a downward adjustment of costs of some goods of pre-war quality, especially spring-filled living-room furniture. These adjustments were based on additional price information which has become available as these goods have moved into retail stores in greater volume than at any other time since their reappearance early in 1944. Higher coal prices caused a 0.3-percent rise in average prices for the fuel, electricity, and ice group. Ketail coal and coke dealers, restricted to 1-ton deliveries by order of the Solid Fuels Administrator for War, in February were permitted by OPA to raise their delivery prices 25 cents a ton if this price increase had not already been imposed. 862 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 863 COST OF LIVING AND RETAIL PRICES Miscellaneous goods and services rose only 0.1 percent. Charges for haircuts were raised in two cities, and cigarettes cost more in two cities as customers could no longer buy more than one package at a time. Rents were not surveyed in February. In connection with the data shown in the following tables, it should be borne in mind that the Bureau of Labor Statistics index indicates average changes in retail prices of selected goods, rents, and services, bought by families of wage earners and lower-salaried workers in large cities. The items covered represented 70 percent of the ex penditures of families which had incomes ranging from $1,250 to $2,000 in 1934-36. The index does not show the full wartime effect on the cost of living of such factors as lowered quality, disappearance of low-priced goods, and forced changes in housing and eating away from home. It does not measure changes in total 1'living costs”— that is, in the total amount families spend jor living. Income taxes and bond subscriptions are not included.1 T a b l e 1.— Indexes of Cost of Living in Large Cities, Feb. 15, 1945, and Earlier Dates Indexes1 (1935-39=100) of cost of— Date 1939: 1941: 1942: 1943: 1944: 1945: Aug. 15__________________ Jan. 15. __ ______________ M ay 15__________________ M ay 15__________________ Feb. 15__________________ Jan. 1 5 __________________ Feb. 15_____ ____ ________ All items 98.6 100.8 116.0 125.1 123.8 127.1 126.8 Food 93. 5 97.8 121.6 143. 0 134.5 137.3 136.5 Clothing 100.3 100.7 126.2 127.9 135.2 143.0 143.3 Fuel, Houseelectricity, furnishings and ice Bent 104.3 105.0 109.9 108.0 108.1 (2) (2) 97. 5 100.8 104.9 107. 6 110.3 109.7 110.0 100.6 100.1 122.2 125.1 128.7 143. 6 143.8 M is cella neous 100.4 101.9 110.9 115.3 118.7 123.1 123.2 1 Based on changes in cost of goods purchased by wage earners and lower-salaried workers. 2 Bents not surveyed in this month. T a b l e 2 . —Percent of Change 1 in Cost of Living in Large Cities in Specified Periods Date All items Food Cloth ing B e n t2 Jan. 15, 1945, to Feb. 15, 1945___________ Feb. 15, 1944, to Feb. 15, 1945___________ M ay 15, 1943, to Feb. 15, 1945__________ M ay 15, 1942, to Feb. 15, 1945... ___ Jan. 15, 1941, to Feb. 15, 1945___________ Aug. 15, 1939, to Feb. 15, 1945_.._.......... - 0 .2 + 2 .4 + 1 .4 + 9.3 +25.8 +28.6 - 0 .6 + 1 .5 - 4 .5 +12.3 +39.6 +46.0 + 0 .2 + 6 .0 +12.0 +13.5 +42.3 +42.9 (3) + 0 .2 + .3 - 1 .5 +3.1 + 3 .8 Fuel, elec House- Miscel furnish laneous tricity, and ice ings + 0.3 -.3 + 2 .2 + 4.9 +9. 1 +12.8 +0.1 +11.7 +14.9 +17.7 +43.7 +42.9 +0.1 + 3 .8 + 6 .9 +11.1 +20.9 +22.7 1 Based oh changes in cost of goods purchased by wage earners and lower-salaried workers. 2 Changes through December 15, 1944. 3 Bents not surveyed in January and February. 1 For a description of the methods used in computing the index, see Description of the Cost of Living Index of the Bureau of Labor Statistics. For an appraisal of the factors enumerated above, see the report of the President’s Committee on the Cost of Living, November 17,1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 864 MONTHLY LABOR REVIEW— APRIL 1945 T a b l e 3 . —Percent of Change 1 in Cost of Living in Specified Periods, by Cities ‘Feb. 15, Aug. 15, Jan. 1, M ay 15, M ay 15, 1944, 1939, 1941, 1942, 1943, to Feb. 15, to Feb. 15, to Feb. 15, to Feb. 15, to Feb. 15, 1945 1945 1945 1945 1945 City Average: Large cities________. . . . _____ + 2 .4 +28.6 +25.8 + 9 .3 + 1 .4 N ew England: Boston. _ _______ M iddle Atlantic: Buffalo_________________________ N ew York___ _____ _ __________ Philadelphia... . . . . _____ . . . Pittsburgh________ _ ____________ East North Central: Chicago. . . . . . . _____ Cincinnati______ __________ Cleveland. . . . . ____ _ . . . D etroit____________ ._ _ ________ _ West North Central: Kansas C ity_______________ . . . _ _ Minneapolis . . . . ______________ __ St. Louis___________________________ South Atlantic: B a ltim o re... _____ _ ______ ____ _ Savannah___ _ . . . ______ __ Washington, D . C___________ ______ East South Central: B irm in gh am ............ W est South Central: Houston___________ Mountain: D enver_______ . . . . . . . _ Pacific: Los Angeles___________________ . San Francisco______________ ______ Seattle ___________ __ _ ________ + 2 .4 +27.0 +24.4 + 8 .7 +. 8 +2.1 + 2 .6 + 2 .8 + 3 .2 +29.5 +28.7 +29. 2 +30.1 +25.2 +26.1 +27.4 +26.5 + 5 .9 +12.4 +10. 2 +10.5 - .9 + 2 .6 + 1 .3 + 2 .5 + 2 .7 + 2 .6 + 1 .4 + 2 .5 +27.3 +30.1 +29.6 +29.4 +24.1 +27.1 +27.1 +26.2 + 7.8 + 9 .2 +9.1 + 7.3 + .9 + 2 .3 + 1 .2 + .2 + 2 .5 + 1 .7 + 2 .3 +26.8 +23.6 +27.5 +27.0 +21.0 +23.9 + 9 .6 + 6.3 + 8 .2 + 2 .0 +1.1 + .9 + 3 .5 + 2 .2 + 2 .5 + 2 .7 + 1 .5 + 2 .7 +31.6 +36.1 +27.8 +32.5 +23.9 +27.7 +29.0 +33.2 +26.1 +28.4 +22.4 +25.9 + 9.9 +11.7 + 9 .9 + 9 .9 + 7 .4 + 8 .9 + 1.3 + 2 .4 + 1 .9 + 3 .7 + 2 .2 + 3 .3 + 2 .3 +28.0 +32.1 +30.2 +25.5 +28.9 +27.9 + 8 .9 +11.6 + 7 .8 + 2 .2 + 2 .4 + .8 + 1 .2 1 Based on indexes of cost of goods purchased by wage earners and lower-salaried workers. T a b l e 4 . —Percent of Change 1in Cost of Living, Jan. 15, to Feb. 15, 1945, by Cities City Average: Large cities__________ _ . . N ew England: Boston_____ _ M iddle Atlantic: Buffalo_______ __ _____ _ N ew York____________ . Philadelphia __________ Pittsburgh___ . . East North Central: Chicago__________ Cincinnati- _______ _ Cleveland, _ ... . D etroit. - _____ West North Central: Kansas C ity___________ ____ . . . Minneapolis___ _ _ . _______ St. L o u is __ __________ South Atlantic: Baltimore_____ . . . ________ Savan nah___ . . ______ "Washington, D . C ________ . . . East South Central: Birmingham . . W est South Central: H o u s t o n - ..___ Mountain: D enver_________________ Pacific: Los A n g eles_____ _____________ San Francisco______________ Seattle_______ ____ All items Food Clothing Fuel, elec tricity, and ice Housefurnish ings Miscella neous 2- 0 .2 3 -0 .6 4+0. 2 s+0.3 <+0.1 -.2 -.5 + .2 + .3 -. 2 0 + .2 -. 4 + .4 -.1 + .6 - 1 .0 + .6 -.6 + .4 + .1 + .4 + .5 + .2 + .3 +1.1 0 6 -3 .2 + .1 + .9 + 2 .4 0 0 0 0 -.2 - .3 - .2 + .1 -.6 - .7 -. 5 - .5 + .1 + .8 + .2 + .1 0 0 + .2 + .4 6 -2 .3 8 -3 .3 + 1.1 + 5 .4 o o 0 0 -.1 0 7—.3 - .8 - .8 7—.6 + .6 + 1 .4 0 0 0 +. 1 0 + 1 .9 6 -1 .3 + .4 0 0 +• 2 8+.2 -.1 -.6 -.2 -.2 0 8+ . l -.4 - 1 .5 -.8 -.7 + .1 +.2 0 + .2 0 + .4 + .4 0 + .6 + .1 0 0 0 +.6 + .3 « - .6 6 -, 1 + .4 + .4 +.5 + -1 -. 1 o 0 - .4 - .6 -.3 - 1 .1 - 1 .1 - .8 + .1 0 + .4 0 0 + .1 + 2 .6 6-6. 5 5 6+0.1 0 0 0 1 Based on indexes of cost of goods purchased by wage earners and lower-salaried workers. 2 Rents not surveyed in February. 3 Based on prices for 56 cities collected on the Tuesday nearest the 15th of the month. 4 Based on data for 21 cities. 1 Based on data for 34 cities. e Revised, owing to downward adjustment for some housefurnishings of pre-war quality, based on addi tional information obtained after reappearance of these goods in retail markets in 1044. 7 Indexes for Jan. 15, 1945, revised: All items 125.5; Food 140.0. 8 Indexes for Jan. 15, 1945, revised: All items 134.8; Food 150.7. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 865 COST OF LIVING AND RETAIL PRICES T able 5.-—Indexes of Cost of Living in Large Cities, 1935 to February 1945 Indexes 1 (1935-39=100) of cost of— Year and month All items 1935 __ _________________ 1936_________________________ 1937 _______________________ 1938 - -- -- ____________ 1939 _____________________ 1940 ___________________ 1 9 4 1 ___ ______________ 1942_____ _________________ 1943 . . ______ ____________ 1944 . . ___________________ Jan. 15___________ _______ Feb. 1 5 ________________ Mar. 15________________ 4pr. 15______ ________ M ay 15______ _________ June 15________ _ ____ July 1 5 _________________ Aug. 15 ____ _ __ _ . Sept. 15________________ Oct. 1 5 _______ _________ N ov. 15_____ __________ Dec. 1 5 _______ _ _ ____ 1945: J a n .15_________________ Feb. 15________________ Food Clothing Rent 98.1 99.1 102.7 100.8 99.4 100.2 105.2 116.5 123.6 125.5 124.2 123.8 123.8 124.6 125.1 125.4 126.1 126.4 126.5 126.5 126.6 127.0 100.4 101.3 105.3 97.8 95.2 96.6 105.5 123.9 138.0 136.1 136.1 134. 5 134.1 134.6 135.5 135.7 137.4 137.7 137.0 136.4 136.5 137.4 96.8 97.6 102.8 102.2 100.5 101.7 106.3 124.2 129.7 138.8 134.7 135.2 136.7 137.1 137.4 138.0 138.3 139.4 141.4 141.9 142.1 142.8 94.2 96.4 100.9 104.1 104.3 104.6 106.2 108.5 108.0 108.2 108.1 108.1 108.1 108.1 108.1 108.1 108.2 108.2 108.2 (2) (2) 108.3 127.1 126.8 137.3 136.5 143.0 143.3 (2) (2) Fuel, electric ity, and ice Housefurnish ings 100.7 100.2 100.2 99.9 99.0 99.7 102.2 105.4 107.7 109.8 109.5 110.3 109.9 109.9 109.8 109.6 109.7 109.8 109.8 109.8 109.9 109.4 94.8 96.3 104.3 103.3 101.3 100.5 107.3 122.2 125.6 136.4 128.3 128.7 129.0 132.9 135.0 138.4 138.7 139.3 140.7 141.4 141.7 143.0 98.1 98.7 101.0 101.5 100.7 101.1 104.0 110.9 115.8 121.3 118.4 118.7 119.1 120.9 121.3 121.7 122.0 122.3 122.4 122.8 122.9 123.1 109.7 • 110.0 143.6 143.8 123.1 123.2 Miscel laneous 1 Based on changes in cost of goods purchased by wage earners and lower-salaried workers. 2 Rents not surveyed in this month. R etail Prices of Food in January 1945 PERCENTAGE changes in retail food costs on January 16, 1945, as compared with costs in the previous month and in January 1944, are shown in table 1. T able 1.—Percent of Change in Retail Costs of Food in 56 Large Cities Combined,1 by Commodity Groups, in Specified Periods Commodity group All foods ___ _____ Cereals and bakery products_________ _______ ____ Meats __ __ _ ____ __ ________ Beef and veal __ _ _____ Pork__ . ___________ __ _ Lamb ______ _ . . Chickens __ . . ___________ __________ Fish, fresh and canned______ _ _ _ ________ Dairy products____________ ______ _ _ ____________ ___ _______ Eggs".".. ___________ _________ Fruits and vegetables ______________________ F r e s h .____ ___ __________________ _ .. C a n n e d __ .. ____ -_ . . - ___ ____ Dried______ ______ ____ ___ _____ . Beverages . . _________ -. _ _ . ______• Fats and oils___________________________ _______ Sugar and sweets . -- . ___________ _ . __ Jan. 18, 1944, to Jan. 16, 1945 - 0 .1 + 0 .9 + 8 .5 +40.4 +46.8 - .6 - .8 -.3 + 1 .3 + 1 .5 - 6 .0 0 +10.1 + 1 .3 + 1 .5 0 + 2 .5 0 -.5 -.2 + 3.1 -.3 - 6 .0 - 9 .3 + 1 .3 +13.8 +24.9 + 4 .5 + 9 .3 +30.2 +36.5 + 4 .8 +16.4 + .5 + 2 .2 - .6 +14.5 + 28.8 + 8 .2 +30.7 +37.3 +56.6 +77.0 +27.0 +74.1 +81.0 +90.5 +41.9 +67.6 +36.9 +53.7 +32.5 +16.4 +36.1 +18.9 +27.8 +37.1 +60.9 +110.9 +43.4 +87.0 +82.8 +91.7 +41.6 +84.8 +31.1 +46.0 +32.1 + .1 + .2 +. 1 + .2 -. I + 1 .1 -.4 0 -1 0 .0 + 2 .9 + 3 .5 -.2 + .3 + .1 + .1 - .1 Sept. 15, 1942, to Jan. 16, 1945 Jan. 14, 1941, to Jan. 16, 1945 Aug. 15, 1939, to Jan. 16, 1945 Dec. 12, 1944,to Jan. 16, 1945 1 The number of cities included in the index was changed from 51 to 56 in March 1943, with the necessary adjustments for maintaining comparability. A t the same time the number of foods in the index was in creased from 54 to 61. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 00 O 05 RETAIL PRICES OF FOOD TO CITY WORKERS AVERAGE FOR LARGE CITIES ,NDEX MONTHLY LABOR REVIEW— APRIL 194 5 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 9 3 5 -3 9 = 100 867 COST OF LIVING AND DETAIL PRICES R ETA IL PRICES FOR GROUPS OF FOOD AVERAGE FOR LARGE CITIES > ____TO Y P ROD J C T Î A LL F 30DS J- 1929 19 3 0 1931 1932 1933 1934 UNITED ST A T E S DEPARTMENT OF LABOR BUREAU OF LABOR S T A T IS T IC S _____________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1935 1936 19 3 7 19 3 8 1939 1940 1941 1942 19 4 3 1944 1945 1946 868 m on th ly labor review — April T a b l e 2 . —Indexes 1945 of Retail Costs of Food in 56 1 Large Cities Combined,2 by Commodity Groups, on Specified Dates [1935-39=100] 1945 1944 1942 1941 1939 Aug. 15 Commodity group J a n .16 Dec. 12 J a n .18 Sept. 15 Jan. 14 All foods____ ____________ __________ 137.3 137.4 136.1 126.6 97.8 93.5 Cereals and bakery products______ M ea ts.. ___________________________ Beef and veal-. ________ _ _____ Pork_________ _ _____________ L a m b ____________________ ______ C hickens,-. ____ __ ___ ____ Fish, fresh and canned____ - - . . . Dairy products________ . _______ ____ Eggs--------------------------------------------------Fruits and vegetables________ _______ _ Fresh_____________________________ Canned__________ ______ __________ Dried- ____ ______ ____ ______ -Beverages______ _____ ____ . . - - ---- --Fats and oils........ ........ ............ Sugar and sw eets-, _______________ _ 108.7 130.2 118.4 112.5 135.5 152.2 210.1 133.5 169.6 168.9 177.9 129. 7 166.9 124.4 123.4 126.3 108.6 129.9 118.3 112.3 135.6 150.6 211.0 133.5 188.5 164.2 171.9 129.9 166.4 124.3 123.3 126.4 108.5 131.0 119.3 112.8 133.8 149.9 223.5 133.5 154.0 166.7 175.3 129.7 162.8 124.4 124.0 126.6 105.4 130.6 126.0 124.0 133.7 133.7 168.2 127.7 155.2 129.7 130.3 123.8 143.4 123.8 120.7 127.0 94.9 101.1 109.4 86.1 98.7 97.2 118.7 105.1 97.4 93.3 93.4 91.4 99.6 90.9 80.3 95.3 93.4 95.7 99.6 88.0 98.8 94.6 99.6 93.1 90.7 92.4 92.8 91.6 90.3 94.9 84.5 95.6 1 Indexes based on 51 cities combined prior to March 1943. 2 Aggregate costs of 61 foods (54 foods prior to March 1943) in each'city, weighted to represent total pur chases of families of wage earners and lower-salaried workers, have been combined w ith the use of popula tion weights. T a b l e 3 . —Average Retail Prices of 78 Foods in 56 Large Cities Combined,1 January 1945 Compared With Earlier Months 1945 1944 1941 1939 Aug. 15 Article Cereals and bakery products: Cereals: Flour, w heat______________ ___10 pounds. Macaroni_________________ . . . --.p o u n d .. Wheat cereal2____ ________ ____28 ounces.. Corn flakes___ ________ . _____8 ounces. _ Corn m eal........ ... .................. - _____ pound.. R ic e 2- - _______________ . . . ______ do____ Rolled oats___ _________ _____ do____ Flour, pancake2..................... ____20 ounces.. Bakery products: Bread, w hite____ _______ _____pound.. Bread, whole-wheat_______ _____ _do____ ______ do____ Bread, rye________ ____ Vanilla cookies____________ ______ d o ___ Soda cra c k e r s---_________ ______ do____ Meats: Beef: Round steak___________ ______ do____ Rib roast_____ ______ _____ _ __ ___do_ Chuck roast_______ . . . __ ______ do_ ___ Stew m e a t2_______________ ______ do__ __ Liver__________________ __ _____ do____ Hamburger_______________ ______do____ Veal: C utlets___________________ ______ do____ Roast, boned and rolled 2___ ______ do____ Pork: Chops_______ ____________ ___ __do____ Bacon, sliced__ __________ _ __ __do____ Ham, sliced_______________ ______ do......... Ham, whole______________ ______ do........ Salt pork__________________ ______ do____ Liver 2____________________ ______ do____ Sausage2 ________________ ______ do____ Bologna, big 2______________ ______ do____ Lamb: Leg...... .................. ............. ....... ______ do____ Rib chops____ ____________ ______ do____ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jan. 16 Dec. 12 Jan. 18 Jan. 14 Cents 64.2 15.7 23.2 6.5 6.4 12.8 10.2 12.3 Cents 64.1 15.7 23.1 6.5 6.4 12.8 10.2 12.3 Cents 64.6 15.5 23.3 6.5 5.9 12.8 8.7 11.9 Cents 41.4 13.8 23.5 7.1 4.2 7.9 7.1 0 Cents 35.8 14.0 24.2 7.0 4.0 7.5 7.1 (3) 8.8 9.6 9.9 28.8 18.9 8.8 9.6 9.9 28.9 18.9 8.9 9.8 10.0 28.8 18.7 7.8 8.7 9.0 25.1 15.0 7.8 8.8 9.2 40.5 32.8 28.1 30.1 37.3 27.4 40.6 32.9 28.2 30.4 37.3 27.5 42.0 34.0 29.2 31.7 37.2 28.7 38.6 31.5 25.2 (3) 0 0 36.4 28.9 22.5 (3) 0 (3) 44.5 35.5 44.8 35.9 46.0 35.4 45.2 (s) 0 37.3 40.9 50.0 35.3 22.2 22.1 38.2 33.6 37.3 40.9 50.0 35.2 21.9 22.0 38.5 33.9 37.6 41.4 51.6 35.6 22.6 22.2 38.4 34.4 29.1 30.1 45.1 26.2 16.7 (3) 0 (3) 39.9 45.4 40.1 45.7 40.1 45.3 27.8 35.0 0 14.8 42.5 30.9 30.4 46.4 27.4 15.4 0 0 0 27.6 36.7 869 COST OF LIVING AND RETAIL PRICES T a b l e 3 . —Average Retail Prices of 78 Foods in 56 Large Cities Combined,1 January 1945 Compared With Earlier Months—Continued 1945 1944 1941 1939 Aug. 15 Article M eats—Continued. Poultry: Roasting chickens____________ pound.. Fish: do____ Fish (fresh, frozen)__________ Salmon, pink_______________ 16-ounce can.. Salmon, r ed 2. _____ do____ Dairy products: Butter................ .pound .. Cheese_______ do___ .. M ilk, fresh (d elivered)........................... .quart.. M ilk, fresh (store)____________________ do......... M ilk, evaporated_____________ 14}^-ounce can.. Eggs: Eggs, fresh_________________________ dozen.. Fruits and vegetables: Fresh fruits: Apples___________________________pound.. B a n a n a s............. ................ .do____ Oranges----------------------- ---------------- dozen._ Grapefruit2____ each.. Fresh vegetables: Beans, green___ _____ pound.. Cabbage________________ Carrots_________________ ...b u n c h .. Lettuce________ .h ead .. O nions....................................... ............ pound.. Potatoes___ ______ ___________ 15 pounds.. Spinach ........ .......•_............................pound.. Sweetpotatoes__ ___________ ...d o ____ Beets 2_........... .b u n ch .. Canned fruits: Peaches.......................................... N o. 2Y can.. Pineapple_________________________ do___ Grapefruit juice...................... .........No. 2 can.. Canned vegetables: Beans, green..................... do____ C om ____________________ do____ P e a s ................................. do____ Tomatoes___ _____ do____ Soup, vegetable 2—............. ....... 11-ounce can .. Dried fruits: Prunes__________________pound.. Dried vegetables: N a v y beans______________________ pound.. Soup, dehydrated, chicken noodle2 .ounce. _ Beverages: Coffee__ ______ _____________________ pound. . Tea-------------pound.. Cocoa 2___ _____ ___________________Yt pound.. Fats and oils: Lard________________________________ pound.. Shortening other than lard— In cartons_______ do____ In other containers___________ do____ Salad dressing.____ _______ pint— Oleomargarine_______________________ pound.. Peanut butter________________ do____ Oil, cooking or salad2___________________ p in t.. Sugar and sweets: Sugar.____________ _______________ ...p o u n d .. Corn sirup____________________ ___ 24 ounces.. Molasses 2________ _____ ______ ____ 18 ounces.. Apple butter 2_____________ _____ ..16 ounces.. Jan. 16 Dec. 12 Jan. 18 Jan. 14 Cents 45.5 Cents 45.0 Cents 44.9 Cents 31.1 22.5 40.4 (5) 23.2 41.8 (5) 15.7 26.4 49.8 35.7 15.6 14.5 10.0 60.2 50.0 36.0 15.6 14.5 10.0 66.9 50.2 36.1 15.6 14.4 10.0 54.3 38.0 27.0 13.0 11.9 7.1 34.9 30.7 24.7 12.0 11.0 6.7 32.0 11.1 10.4 44.5 8.8 10.7 11.1 43.7 8.8 10.8 11.7 40.5 7.4 5.2 6.6 27.3 (9) 4.4 6.1 31.5 (9) 20.5 5.8 9.2 12.5 5.0 67.6 11.9 8.0 9.7 25.9 6.0 10.4 12.2 7.7 64.1 11.6 10.6 9.6 14.0 3.4 6.0 8.4 3.6 29.2 7.3 5.0 (3) 7.2 3.9 4.6 8.4 3.6 34.4 7.8 5.5 (3) 27.6 26.6 14.3 27.8 26.7 14.4 27.0 27.7 14.4 « 13.1 14.7 13.3 12.0 13.4 17.2 13.1 14.7 13.2 12.1 13.3 17.0 14.0 14.5 14.2 12.2 13.2 17.0 10.0 10.7 13.2 8.4 (?) 9.6 11.2 3.7 11.1 3.7 10.5 3.7 6.5 30.3 24.1 10.3 30.3 24.0 10.4 29.8 23.5 9.7 (!) 23.0 40.3 23.2 7.4 do_________ 8.7 11.8 5.3 72.0 11.6 8.8 9.7 (') 12.8 23.1 17.1 21.0 16.5 20.9 (9) (3) 10.0 10.4 13.6 8.6 (3) 8.8 5.8 (3) 22.3 17.2 8.6 20.7 17.6 9.1 18.8 18.8 18.8 9.3 9.9 20.1 24.7 25.7 24.1 28.4 30.7 20.2 24.8 25.8 24.2 28.3 30.7 20.0 24.8 25.5 24.0 28.9 30.7 11.3 18.3 20.1 15.6 17.9 (4) 11.7 20.2 (4) 16.5 17.9 (4) 6.7 15.8 15.8 13.5 6.7 15.8 15.9 13.5 6.8 15.9 15.9 13.2 5.1 13.6 13.4 (3) 5.2 13.7 13.6 1 Data are based on 51 cities combined prior to January 1943. 2 N ot included in index. 3 First priced, February 1943. * N ot priced. 5 Composite price not computed. • First priced, October 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis « Cents 30.9 (3) 870 MONTHLY LABOR REVIEW— APRIL 19 45 T a b l e 4 . — Indexes of Average Retail Costs of A ll Foods, by Cities,1 on Specified Dates [1935-39 = 100] 1945 1944 1941 1939 Aug. 15 City United States_______ N ew England: Boston_________ Bridgeport______ Pall River______ Manchester_____ N ew H aven_____ Portland, MaineProvidence_____ Middle Atlantic: Buffalo_________ Newark________ New York______ Philadelphia____ Pittsburgh______ Rochester_______ Scranton________ East North Central: Chicago_________ Cincinnati______ Cleveland_______ Columbus, Ohio.D etroit_________ Indianapolis_____ M ilwaukee______ Peoria_________ Springfield, 111 West North Central: Cedar Rapids A Kansas C ity____ Minneapolis_____ Omaha__________ St. Louis____ St. Paul_________ Wichita 2_______ South Atlantic: A tlanta__________ Baltimore___ Charleston, S. C_. Jacksonville...... . Norfolk 3_.......... . Richmond_______ Savannah______ Washington, D. C Winston-Salem 2 East South Central: Birm ingham ......... Jackson 2________ Knoxville 2______ Louisville_______ M em phis________ M obile__________ West South Central: Dallas___________ Houston_________ Little R ock______ New Orleans_____ Mountain: B utte___________ Denver__________ Salt Lake C ity___ Pacific: Los Angeles______ Portland, Oreg___ San Francisco____ Seattle___________ J a n .16 Dec. 12 J a n .18 Jan. 14 137.3 137.4 136.1 97.8 93.5 132.8 134.2 132.5 134.0 135.1 132.4 135.6 132.7 134.6 132.2 133.6 135.3 133.1 135.7 130.9 135.1 131.2 132.5 136.3 132.3 132.0 95.2 96.5 97.5 96.6 95.7 95.3 96.3 93.5 93.2 95.4 94.9 93.7 95.9 93.7 135.5 140.0 138.7 135.1 136.4 134.3 137.2 134.1 140.2 138.7 135.0 136.1 134.0 137.2 135.0 140.7 138.0 135.0 134.6 131.5 134.7 100.2 98.8 99.5 95.0 98.0 99.9 97.5 94.5 95.6 95.8 93.0 92.5 92.3 92.1 135.3 135.5 140.8 129.5 132.4 134.0 135.2 140.0 142.7 136.5 134.7 140.6 129.4 132. 7 133.8 135.2 140.5 142.0 132.5 135.1 140.8 128.1 132.8 133.3 130.5 138.4 138.7 98.2 96.5 99.2 93.4 97.0 98.2 95.9 99.0 96.2 92.3 90.4 93.6 88.1 90.6 90.7 91. 1 93.4 94.1 140.7 131.6 130.7 130.6 140.0 129.6 148.0 139.9 131.0 130.4 130.0 139.5 129.1 147.3 137.6 130.3 128.3 131.1 137.9 127.1 146.1 95.9 92.4 99.0 97.9 99.2 98.6 97.2 91.5 95.0 92.3 93.8 94.3 139.7 145.2 134.3 146.3 145.0 136. 5 150. 7 138.0 139.7 138.8 143.9 135.0 146.8 143.2 137.1 150.5 137. 1 138.7 138.0 142.5 134.2 145.8 145.1 134.7 151.1 136.4 136.9 94.3 97.9 95.9 98.8 95.8 93.7 100.5 97.7 93.7 92.5 94.7 95.1 95.8 93.6 92.2 96.7 94.1 142.8 152.9 160.2 131.9 147.1 143.8 142.3 151.3 158.3 132.0 145.6 144.6 140.6 142.9 154.3 132.6 146.0 145.5 96.0 105.3 97.1 95.5 94.2 97.9 90.7 92.1 89.7 95.5 133.7 136.5 137.3 150.6 133.4 135.9 137.0 150.3 134.5 137.5 134.7 149.9 92.6 102.6 95.6 101.9 91.7 97.8 94.0 97.6 134.8 137.8 140.4 134.3 137.9 141.9 135.3 136.0 138.6 98.7 94.8 97.5 94.1 92.7 94.6 143.4 147.0 146.9 143.4 143.9 148.1 149. 1 143.9 142.0 142.5 143.6 142.5 101.8 101.7 99.6 101.0 94.6 96.1 93.8 94.5 1 Aggregate costs o f 61 foods in each city (54 foods prior to March 1943), weighted to represent total pur chases of wage earners and lower-salaried workers, have been combined for the United States with the use of population weights. Primary use is for time-to-time comparisons, rather than place-to-place com parisons. 2 June 1940=100. 3 Includes Portsmouth and Newport News. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis COST OF LIVING AND RETAIL PRICES T a b l e 5.- —Indexes 871 of Retail Food Costs in 56 Large Cities Combined,1 1913 to January 1945 [1935-39 = 100] Year All-foods index 1913 ____________ 1914____________ 1915____________ 1916_____________ 1917_____________ 1918_____________ 1919_____________ 1920_____________ 1921 __________ 1922_____________ 1923_____________ 1924________ ____ 1925_____________ 1926_____________ 1927____ _________ 1 9 2 8 . __________ 79.9 81.8 80.9 90.8 116. 9 134.4 149.8 168.8 128.3 119.9 124.0 122.8 132.9 137.4 132.3 130.8 Year 1929 . 1930 . . . 1931 1932 . 1933 . 1934 . . . 1935 1936____________ 1937 1938 1939____________ 1940 . . . 1941 . 1942 1943____________ 1944 All-foods index 132. 5 126. 0 103. 9 86. 5 84.1 93.7 100.4 101.3 105. 3 97. 8 95.2 96. 6 105. 5 123.9 138.0 136.1 Year and month All-foods index 19U __ January February __ March April M ay _ June July____________ August September October_____ November December 136.1 134. 5 134 1 134. 6 135. 5 135. 7 137.4 137. 7 137. 0 136. 4 136. 5 137.4 1945 January 137. 3 1 Indexes based on 51 cities combined prior to March 1943. R etail Prices of Coal in 1944 RETAIL prices for coal to domestic consumers averaged between 3 and 5 percent higher in 1944 than in 1943. The extension by the Office of Price Administration of “area” retail ceilings to more cities, replacing individual retailer price ceilings, caused some small local adjustments in prices. Another type of local price adjustment was a uniform price increase of 10 cents per ton for all types of coal in Milwaukee, allowed by OPA in December to cover increased distri bution costs. Near the end of the 1943-44 heating season, the Solid Fuels Admin istration attempted to spread available supplies of coal by directing mines and mine representatives to supply retailers in an emergency. Local committees adapted this procedure to local needs. The de velopment in the industry which was most important to domestic consumers during 1944 was the extension of formal controls directly to them, stringently limiting the anthracite, Eastern byproduct coke, and bituminous coal available to consumers for the winter of 1944-45. Consumer problems were further complicated when, by mid-December 1944, production figures were considerably below those for correspond ing weeks in 1943, and an extensive period of inclement weather began. 6 3 6 3 7 2 — 45 - 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 872 MONTHLY LABOR REVIEW— APRIL 1945 Prices of Anthracite Anthracite prices, which had increased in November and December 1943, were at approximately the same levels in January 1944. For the month of February only, the OPA allowed special price increases at all levels of sale to cover the additional costs of the 7-day week production which the Solid Fuels Administration for War requested for that month. The general increase was 45 cents per ton. Prices in March reverted to about the January levels. Composite average prices in April and May were not affected by price increases by retailers in the Upper Lakes area, who for the first time received, by water, anthracite purchased at the higher f. o. b. mine prices initiated at the end of 1943. The higher anthracite prices allowed by OPA late in 1943, were sufficient to permit mine owners to recover, by the end of May 1944, back wage adjustments allowed the miners by the National War Labor Board. Ceiling prices were lowered in June. Following this decrease, which amounted to about 15 cents per net ton in all markets, prices remained practically unchanged to the end of the year. During the year higher price ceilings were allowed for the anthracite mines having exceptionally high production costs, and retailers han dling these coals were allowed to pass this increase on to consumers. The decline in anthracite prices from December 1943 to December 1944 averaged 7 cents a ton for stove and 3 cents a ton for chestnut. In the accompanying table average retail prices and indexes for these two sizes are shown by years from 1929 through 1944 and by month for 1943 and 1944. Bituminous-Coal Prices Between December 1943 and December 1944, the unweighted aver age retail price for bituminous coal in 35 cities rose 16 cents per net ton or about 1.5 percent. In the table following, average retail prices and indexes for all sizes of bituminous coal combined are shown by years from 1929 through 1944, and by month for 1943 and 1944. The advance was gradual and was caused principally by actions of OPA. Small increases were allowed in April in prices both at the mine and at retail for coal from certain high-volatile mines. In Minnesota and Wisconsin retail prices were advanced in the spring to cover the higher mine prices of late 1943. Local price adjustments also were made as area ceilings replaced individual dealer ceilings, or as local retailers were allowed to match increased costs with increased prices. The Petroleum Administration for War again allocated supplies of oil to the industry for dust treatment, in the second quarter of the year, and the majority of the dealers exercised their right to raise prices 10 cents per net ton for coal so treated. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis COST OF LIVING AND RETAIL PRICES 873 Average Retail Prices and Indexes for Coal in Large Cities, 1929-44 Average price per ton of 2,000 lbs. Year and month Bituminous (unweight ed average, 35 cities) 1 Indexes (October 1922-September 1925=100) of— Pennsylvania anthra Pennsylvania anthra cite (weighted aver Bituminous cite (weighted aver age, 24 cities)2 (unweight age, 24 cities)2 ed average, 35 cities)1 Stove Chestnut Chestnut Stove 1929_______________________ 1930________________________ 1931_______________________ 1932________________________ 1933_______________________ 1934_______________________ 1935________________________ 1936_______________________ $8.85 8.83 8. 33 7.71 7. 65 8.26 8.29 8.42 $14.14 14.03 13.68 12. 55 12.12 12.18 11.38 11.74 $13. 70 13. 66 13.65 12.45 11. 93 11. 92 11.14 11.61 91.5 91.3 86.2 79.7 79.1 85.4 85.7 87.1 100.5 99.7 97.1 89.2 86.2 86.6 80.9 83.5 97. 7 97.3 97.3 88.7 85.0 85.0 79.4 82.7 1937________________________ 1938________________________ 1939________________________ 1940________________________ 1941_______________________ 1942________________________ 1943________________________ 1944________________________ 8. 58 8.61 8.52 8.60 9.10 9.51 9. 94 10.27 11. 05 10. 96 10. 79 11. 33 11.92 12. 41 13.15 13.89 11.19 11.11 10.84 11.35 11. 97 12.47 13. 20 13.94 88.4 88.7 87.7 87.9 92.6 96.7 100.9 104.3 78.5 77.9 76.7 80.5 84.7 88.1 93.4 98.7 79.6 79.1 77.2 80.8 85.2 88.7 93.9 99.2 1943: January_______________ February____ _________ M arch________________ April—. _____________ M ay_________ ________ June__________________ July__________________ A u g u st__________ ____ September .. . October______ ______ November______ _ . . December__________ __ 9.63 9.68 9.82 9.86 9.99 9. 98 10. 01 10.02 10.02 10.03 10. 03 10.17 13.10 13. 10 13. 08 13.08 ]3. 09 13. 08 13.05 13.05 13. 05 13.06 13. 20 13.88 13.13 13.14 13.13 13.14 13.15 13.14 13.11 13.11 13.11 13.12 13.22 13.89 97.9 98.4 99.8 100. 1 101.4 101.4 101.5 101. 6 101.6 101. 7 101.8 103.2 93.0 93.0 92.9 92.9 93.0 92.9 92.7 92.7 92.7 92.8 93.8 98.6 93.4 93.5 93.4 93.5 93.6 93.5 93.3 93.3 93.3 93.4 94.1 98.9 1944: January__________ ____ February __ . . . _____ March________________ April___________ _ . M ay_________________ June_______________ _ July__________________ August_______________ September____________ October. ___________ . N o v e m b e r ____ _____ December____________ 10.19 10.22 10.22 10.24 10.27 10.28 10.29 10. 31 10.31 10. 31 10.32 10. 33 13. 90 14. 36 13.97 13.97 13. 93 13.80 13.80 13.80 13.80 13.80 13. 80 13.81 13.92 14. 37 14.04 14.04 13. 96 13. 85 13.84 13.84 13.84 13.85 13.86 13.86 103.5 103.8 103.8 104.0 104.3 104.4 104.5 104.6 104.6 104.7 104.7 104.8 98.7 102.0 99.2 99.2 99.0 98.0 98.0 98.0 98.0 98.1 98.1 98.1 99.1 102.3 99.9 99.9 99.3 98.6 98.5 98.5 98.5 98.6 98.6 98.7 1 38 cities prior to December 1940. 225 cities prior to July 1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wholesale Prices W holesale Prices in F eb ru ary 1945 LED by higher prices for agricultural products—particularly live stock and poultry and fresh fruits and vegetables—the Bureau of Labor Statistics index of commodity prices at the primary market1 level rose to a 24-year peak in February. The increase brought the all-commodity index up 0.3 percent during the month to the highest point reached since the inflationary period which followed World War I. At 105.2 percent of the 1926 average the combined level of prices for the nearly 900 series included in the index was 1.5 percent higher than in February of last year and more than 40 percent over the average for August 1939. Although prices have been edging gradually upward during the past 6 months the increases in all instances have been very moderate. In addition to a rise of 0.6 percent in farm product prices during February, average prices for miscellaneous commodities rose 0.4 percent; metals and metal products and building materials, 0.2 percent; and hides and leather products and textile products, 0.1 percent. The indexes for the foods, fuel and lighting materials, chemicals and allied products, and housefurnishing goods groups remained unchanged at the January level. Largely because of the increase in prices for agricultural commodi ties, raw materials rose 0.4 percent during the month, manufactured products advanced 0.2 percent, and semimanufactured products 0.1 percent. The rise of 0.6 percent in average prices for farm products in Feb ruary was similar to that in 1944. The increase was the result of an upward seasonal movement in the fruits and vegetables and livestock and poultry markets. Among the more important fruits and vege tables for which higher prices were reported were apples, oranges, onions, and sweetpotatoes. Lemons and white potatoes declined. Prices for all livestock items were higher, ranging from less than a half of 1 percent for hogs and steers to about 8 percent for cows and sheep. Live poultry in both the Chicago and New York markets rose approximately 2 percent. Led by slightly higher prices for wheat and No. 3 yellow corn at Chicago, average prices for grains advanced 0.4 percent in February. Quotations for most types of hay were higher than in January. Rye on the contrary declined 1.3 percent and No. 2 yellow corn quotations were 0.8 percent below the January level. Cotton also declined fractionally. A seasonal decrease of nearly 10 percent occurred in prices for eggs. 1 The Bureau of Labor Statistics wholesale price data for the most part represent prices prevailing in the “ first commercial transaction.” They are prices quoted in primary markets, at principal distribution points. 874 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WHOLESALE PRICES 875 Food prices in primary markets were unchanged during the month. Higher prices for fresh fruits, vegetables, flour, and dressed poultry were offset by lower prices for eggs. An increase of 2.5 percent in quotations for sheepskins brought the index for the hides and leather products group up 0.1 percent. No changes were reported in prices for leather and leather products, such as shoes, belting, and luggage. OPA action in granting an interim increase of 1 cent per pound to manufacturers of cotton rope together with higher producers’ ceilings on cotton flannel, in order to conform to the Stabilization Extension Act of 1944, accounted for the advance of 0.1 percent in the textile products group index. During February prices for coal, coke, and petroleum products remained steady, although a temporary increase in ceiling was granted for coal mined by Southern Appalachian producers on two Sundays in February. Sales realizations on gas were 1.5 percent higher while on electricity they were 0.3 percent lower. The index for metals and metalfproducts rose 0.2 percent to the highest level in nearly 20 years. The increase at the mill level in five basic steel products allowed by OPA in January and subsequently passed on to warehousemen and jobbers, together with a $1 per gross ton increase in basing point ceilings on pig iron, effective Febru ary 14, accounted for the rise. The mercury market continued strong with an increase of 4.7 percent recorded in February. Prices of mercury have risen about 69 percent or to about $170 a flask from the low point reached last July when the market dropped below $100. Increased ceilings early in the year on brick and cement in certain areas continued to be reflected in prices reported to the Bureau on these building materials. Slight increases were also reported in prices for western pine boards and shop lumber. In addition, prices were higher for turpentine and for lime. Quotations for butyl acetate, an important varnish material, were reduced nearly 2 percent in February. Average prices for chemicals and allied products remained steady in February. The index for this group at 94.9 is about 5 percent below the 1926 level. No changes were reported in prices for furniture and furnishings during the month. Average prices for housefurnishing goods have fluctuated between 4 and 5 percent over the 1926 average since early last year when higher ceilings were allowed by OPA on furniture. The increase of 0.4 percent in the miscellaneous commodity group index resulted from higher prices for paper and pulp products, which advanced 0.4 percent during the month, and for soap and certain tobacco products. Manufacturers ceilings on bleached and un bleached soda woodpulp were increased $4 per ton at the end of January. The result of this action by OPA and higher ceilings, effec tive January 20, on paperboard made from waste paper or straw and sold East of the Pocky Mountains were reflected in the February index. Prices for most commodities fluctuated within a very narrow range between February 1944 and February 1945. The largest increases were 8.5 percent for livestock and poultry, 5.8 percent for cement, 5.7 percent for cotton goods, 4 percent for hides and skins, 3.7 percent for lumber, 2.4 percent for paint and paint materials, 1.4 percent for hosiery and underwear, and 1.3 percent for paper and pulp. A few https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 876 MONTHLY LABOR REVIEW— APRIL 1945 commodities declined during the 12-month period ending in February. The most important decrease was 2.6 percent for anthracite. In February 1944 temporary price increases were granted to producers in order to cover the additional cost of Sunday production necessary to meet widespread fuel shortages. Fruits and vegetables declined 2.2 percent and cereal products, shoes, rayon, and chemicals declined less than 1 percent. In the past 5% years of hostilities, prices for most commodities have risen substantially over their levels in the late summer of 1939. The most outstanding increases have been for agricultural commodities and their products. Since August 1939 farm product prices have advanced 108 percent, led by increases of 152 percent for grains and nearly 103 percent for livestock and poultry. In February 1945 prices for fruits and vegetables were about 102 percent higher than before the war. Prices for dairy products rose 63 percent; for meats, more than 44 percent; and for cereal products, 32 percent. Of the commodity groups, fats and oils show the greatest increase, 151 percent. Cattle feed prices have advanced 133 percent; cotton goods, 83 percent; lumber, about 71 percent; hides and skins and woolen and worsted goods, over 49 percent; drugs and pharmaceu ticals, about 39 percent; paper and pulp, 35 percent; and clothing and anthracite, approximately 32 percent. Increases of from 20 to 30 percent have been recorded for shoes, leather, bituminous coal, coke, petroleum products, motor vehicles, brick and tile, paint and paint materials, fertilizer materials, furniture, and automobile tires and tubes. Prices for the following groups of commodities have advanced from 10 to 20 percent since the summer of 1939—hosiery and underwear, other leather products (including gloves, belting, harness, and luggage), nonferrous metals, plumbing and heating equipment, “other building materials’’ (including millwork items, wallboard, glass, and prepared roofing), chemicals, mixed fertilizers, and furnishings. During the war, prices for raw materials have advanced almost 3 times more rapidly than fully and partially pro cessed commodities, or 74 percent as compared to about 28 percent for semimanufactured articles and finished products. Percentage comparisons of the February 1945^'level of wholesale prices with January 1945, February 1944, and August 1939, with corresponding index numbers, are given in table 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WHOLESALE PRICES T 877 1.—Indexes of Wholesale Prices by Groups and Subgroups of Commodities, February 1945, Compared with January 1945, February 1944, and August 1939 able [1926=100] Group and subgroup Febru ary 1945 Janu Percent Febru Percent August Percent ary of ary of of 1939 1945 change 1944 change change All commodities__________________________ 105. 2 104.9 + 0 .3 103.6 + 1.5 75.0 +40.3 Farm products___;__________ _____________ Grains_______________________ ________ Livestock and poultry_________________ Other farm products..................................... 127.0 129.8 133.8 121.4 126.2 129.3 131.1 121.5 + .6 + •4 + 2.1 -.1 122.5 129.3 123.3 119.3 + 3.7 ~K 4 + 8 .5 + 1 .8 61.0 51.5 66.0 60.1 +108.2 +152.0 +102. 7 +102.0 Foods..................................... ....................... .......... Dairy products______ _______ ____ _ Cereal products_______________________ Fruits and vegetables_________________ M eats_____ ______ ___________________ Other foods____ _____________ ______ . . . 104.7 110.8 94.9 118.1 106.5 95.1 104.7 110.8 94.7 114.4 106.4 97.3 0 0 +• 2 + 3 .2 4". 1 - 2 .3 104.5 110.7 95.1 120.7 106.0 93.5 + .2 + .1 -.2 -2.2 + .5 + 1.7 67.2 67.9 71.9 58.5 73.7 60.3 +55.8 +63.2 +32.0 +101.9 +44.5 +57.7 Hides and leather products________________ Shoes________________________________ Hides and skins_______________________ L eather..____________________________ Other leather products___ _____ ______ _ 117.6 126.3 115.4 101.3 115.2 117.5 126.3 114.8 101.3 115.2 + .1 0 + .5 0 0 116.9 126. 4 111.0 101.3 115.2 + .6 -.1 + 4.0 0 0 92.7 100.8 77.2 84.0 97.1 +26.9 +25.3 +49.5 +20.6 +18.6 Textile products._____ ____________________ Clothing_____________________________ Cotton goods................ .................................. Hosiery and underwear________________ R a y o n ...___________ _________________ Silk__________________________________ Woolen and worsted goods.......................... Other textile products.._______________ 99.7 107.4 119.9 71.5 30.2 + .1 0 + .2 0 0 97.7 107.0 113.4 70.5 30.3 (i) 112.5 100.5 + 2.0 + .4 + 5.7 + 1.4 -.3 67.8 81.5 65.5 61. 5 28.5 44. 3 75.5 63.7 +47.1 +31.8 +83.1 +16.3 + 6 .0 112.7 100.9 99.6 107.4 119.7 71.5 30.2 (0 112.7 100.9 Fuel and lighting materials________________ Anthracite___________________________ Bituminous coal______________________ Coke_____ ____ _______ _____ _____ ____ Electricity____________________________ Gas_______ __________________________ Petroleum and products_______________ 83.3 95.3 120.5 130.7 (') 0) 64.3 83.3 95.3 120.5 130.7 (0 75.7 64.3 0 0 0 0 “K 2 - 2 .6 + .5 0 0 83.1 97.8 119.9 130.7 60.1 77.2 64.0 Metals and metal products________________ Agricultural implements_______________ Farm machinery__________________ Iron and steel_________________________ Motor vehicles________________________ Nonferrous metals_________________. . . Plumbing and heating_________________ 104.2 97.5 98. 7 98.0 112.8 85.9 92.4 104.0 97.5 98.7 97.7 112.8 85.9 92.4 + .2 0 0 + .3 0 0 0 103.7 97.0 98.1 97.1 112.8 85.8 91.8 Building materials________________________ Brick and tile_________________________ Cement____________ ____ ____ ______ _ Lumber______________________________ Paint and paint materials______________ Plumbing and heating_________________ Structural steel_______________ ________ Other building materials___________. . . . 117.0 110.5 99.0 153.9 106.4 92.4 107.3 103.6 116.8 110.4 97.4 153.8 106.3 92.4 107.3 103.5 + .2 4". i + 1 .6 + .1 + .1 0 0 + .1 113. 6 100.1 93.6 148.4 103.9 91.8 107.3 102.8 Chemicals and allied products_____________ Chemicals____________________________ Drugs and pharmaceuticals____________ Fertilizer materials______________ ____ _ Mixed fertilizers______________________ Oils and fats__________________________ 94.9 95.8 106.9 81.9 86.6 102.0 94.9 95.8 106.9 81.9 86.6 102.0 0 0 0 0 0 0 Housefurnishing goods_______ ____ ________ Furnishings__________________________ Furniture____________________________ 104.5 107.5 101. 5 104.5 107.5 101.5 Miscellaneous____________________________ Automobile tires and tubes____________ Cattle feed___________________________ Paper and pulp_______________________ Rubber, crude_______________ _________ Other miscellaneous___________________ 94.6 73.0 159.6 108.0 46.2 98.9 Raw materials____________________ ____ _ Semimanufactured articles_____ _____ ______ Manufactured products_________ __________ All commodities other than farm products__ All commodities other than farm products and foods_______________________ _____ _ 1 D a ta n o t available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 0 + .2 + .4 +49.3 +58.4 + .5 72.6 72.1 96.0 104.2 75 8 86.7 51.7 +24.4 + .5 + .5 + .6 + .9 0 + .1 + .7 93.2 93.5 94.7 95.1 92.5 74.6 79.3 +11.8 + 4.3 + 4 .2 + 3 .0 +21.9 +15.1 +16.5 + 3.0 + 5.8 + 3 .7 + 2.4 + .7 0 + .8 89.6 90.5 91.3 90.1 82.1 79.3 107.3 89.5 +30.6 +22.1 + 8.4 +70.8 +29.6 +16.5 0 +15.8 95.0 96.3 106.4 81.4 86.3 102.0 -.1 - .5 + .5 + .6 + .3 0 74.2 83.8 77.1 65.5 73.1 40.6 +27.9 +14.3 +38.7 +25.0 +18.5 +151. 2 0 0 0 104.2 107.1 101. 4 + .3 + .4 + .1 85.6 90.0 81.1 +22.1 +19.4 +25.2 94.2 73.0 159.6 107.6 46.2 98.2 + .4 0 0 + .4 0 + .7 93.4 73.0 159.6 106.6 46.2 96.7 + 1 .3 0 0 + 1.3 0 + 2.3 73.3 60.5 68.4 80.0 34.9 81.3 +29.1 +20.7 +133.3 +35.0 +32.4 +21. 6 115.6 95.0 101.5 100.2 115.1 94.9 101.3 100.1 + .4 + .1 + .2 + .1 112.8 93.4 100.4 99.3 + 2.5 + 1.7 +1.1 + .9 66.5 74.5 79.1 77.9 +73.8 +27.5 +28.3 +28.6 99.2 99.1 + .1 98.0 + 1 .2 80.1 +23.8 +14.7 +32.2 +25.5 +25.4 MONTHLY LABOR REVIEW— APRIL 194 5 878 , Index Numbers by Commodity Groups 1926 to February 1945 Index numbers of wholesale prices by commodity groups for selected years from 1926 to 1944, and by months from February 1944 to February 1945, are shown in table 2. T a b l e 2 . — Index Numbers of Wholesale Prices by Groups of Commodities [1926 = 100] Year and month Chem HouseHides Tex Fuel and Metals icals MisFarm and and Build furing light metal and celtile nishprod Foods leather prod ing mate allied laneing prod ucts mate prod rials prod ucts ous ucts ucts goods rials ucts All com modi ties 1926________________ 1929________________ 1932________________ 1933__________ _____ 1936________________ 1937________________ 100.0 104.9 48.2 51.4 80.9 86.4 100.0 99.9 61.0 60.5 82.1 85.5 100.0 109.1 72.9 80.9 95.4 104.6 100.0 90.4 54.9 64.8 71.5 76.3 100.0 83.0 70.3 66.3 76.2 77.6 100.0 100.5 80.2 79.8 87.0 95.7 100.0 95.4 71.4 77.0 86.7 95.2 100.0 94.0 73.9 72.1 78.7 82.6 100.0 94.3 75.1 75.8 81.7 89.7 100.0 82.6 64.4 62.5 70.5 77.8 100.0 95.3 64.8 65.9 80.8 86.3 1938________________ 1939_______________ 1940_______________ 1941_______ _______ 1942________________ 1943________________ 1944________________ 68.5 65. 3 67. 7 82.4 105.9 122.6 123.3 73.6 70.4 71.3 82. 7 99.6 106.6 104.9 92.8 95.6 100.8 108.3 117.7 117.5 116.7 66.7 69. 7 73.8 84.8 96.9 97.4 98.4 76.5 73.1 71.7 76.2 78.5 80.8 83.0 95.7 94.4 95.8 99.4 103.8 103.8 103.8 90.3 90.5 94.8 103.2 110.2 111.4 115.5 77.0 76.0 77.0 84.4 95.5 94.9 95.2 86.8 86.3 88.5 94.3 102.4 102.7 104.3 73.3 74.8 77.3 82.0 89.7 92.2 93.6 78.6 77.1 78.6 87.3 98.8 103.1 104.0 19U February___. . . . . . March__ ___ _ April______________ M ay_______________ June_______________ July_______________ 122.5 123.6 123.2 122.9 125.0 124. 1 104.5 104.6 104.9 105.0 106.5 105.8 116.9 116.9 116.9 117.0 116.4 116.2 97.7 97.8 97.8 97.8 97.8 98.0 83.1 83.0 83.0 83.2 83.3 83.2 103.7 103.7 103.7 103.7 103.7 103.7 113.6 114.2 115.2 115.7 115.9 115.9 95.0 95.0 95.5 95.5 95.3 95.5 104.2 104.3 104.3 104.3 104. 3 104.3 93.4 93.5 93.5 93.5 93.5 93.6 103.6 103.8 103.9 104.0 104.3 104.1 August _______ ___ September__ __ ____ October____________ November__________ December__________ 122.6 122.7 123.4 124.4 125.5 104.8 104.2 104.2 105.1 105.5 116.0 116.0 116.2 116.2 117.4 98.4 99.2 99.4 99.4 99.5 83.2 83.0 82.9 83.1 83.1 103.8 103.8 103.7 103.7 103.8 116.0 116.0 116.3 116.4 116.4 95.5 94.9 95.0 94.8 94.8 104.4 104.4 104. 4 104.4 104.4 93.6 93.6 93.6 94.0 94.2 103.9 104.0 104.1 104.4 104.7 1945 January____________ February_______ . 126. 2 127.0 104.7 104.7 117.5 117.6 99.6 99.7 83.3 83.3 104.0 104.2 116.8 117.0 94.9 94.9 104.5 104.5 94.2 94.6 104.9 105.2 The price trend for specified years and months since 1926 is shown in table 3 for the following groups of commodities: Raw materials, semimanufactured articles, manufactured products, commodities other than farm products, and commodities other than farm products and foods. The list of commodities included under the classifications “Raw materials,” “Semimanufactured articles,” and “Manufactured products” was shown on pages 10 and 11 of Wholesale Prices, July to December and Year 1943 (Bulletin No. 785). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WHOLESALE PRICES 879 T a b l e 3 . — Index Numbers of Wholesale Prices by Special Groups of Commodities [1926 = 100] SemiRaw manufacmate tured rials arti cles Year and month 1926_________ 100.0 1929_________ 97.5 1 9 3 2 ................ 55.1 56.5 1933_________ 79.9 1936_________ All All com com modi Man modi ties ufac ties other tured other than prod than farm ucts farm prod prod ucts ucts and foods 100.0 93.9 59.3 65.4 75.9 100.0 94.5 70.3 70.5 82.0 100.0 93.3 68.3 69.0 80.7 100.0 91.6 70.2 71.2 79.6 1937........ ........... 1938_________ 1939_________ 1940_________ 84.8 72.0 70.2 71.9 85.3 75.4 77.0 79.1 87.2 82.2 80.4 81.6 86.2 80.6 79. 5 80.8 85.3 81.7 81.3 83.0 1941_________ 1942_________ 1943________ 1944_________ 83.5 100.6 112.1 113.2 86.9 92.6 92.9 94.1 89.1 98.6 100.1 100.8 88.3 97.0 98.7 99.6 89.0 95.5 96.9 98.5 SemiRaw manufacmate tured rials arti cles All All com com modi Man modi ties ufac ties other tured other than prod than farm farm prod ucts prod ucts ucts and foods 112.8 113.4 113.2 113.0 114.2 113.6 112.7 112.8 113.2 113.8 114.6 93.4 93.7 93.6 93.7 93.8 93.9 94.1 94.7 94.8 94.8 94.8 100.4 100.5 100.8 100.9 100.9 100.9 100.9 100.9 101.0 101.1 101.1 99.3 99.3 99.6 99.7 99.6 99.6 99.7 99.7 99.8 99.9 100.0 98.0 98.1 98.4 98.5 98.5 98.5 98.6 98.6 98. 7 98.8 98.9 ms January___ 115.1 February... 115.6 94.9 95.0 101.3 101.5 100.2 100. 1 99. 1 99.2 Year and month 19U February..March. April______ M ay______ June______ July______ August____ September.. October___ November.Decem ber.. Weekly Fluctuations Weekly changes in wholesale prices by groups of commodities during January and February 1945 are shown by the index numbers in table 4. These indexes are not averaged to obtain an index for the month but are computed only to indicate the fluctuations from week to week. T a b l e 4 . —Weekly Index Numbers of Wholesale Prices by Commodity Groups, January and February 1945 [1926 = 100] Commodity group Feb. 24 Feb. 17 Feb. 10 Feb. 3 Jan. 27 Jan. 20 Jan. 13 Jan. 6 All commodities________ ________________ 104.8 105.0 104.. 9 104.7 104.7 104.8 104.7 104.6 Farm products_____ ______ ____ _____ _____ Foods___________________________________ Hides and leather products--........_________ Textile products_____ _________ _______ Fuel and lighting materials 126.4 104.1 118.0 99.1 83.8 127.2 104.8 118.0 99.1 83.8 126.8 104.9 118.0 99.1 84.0 125.7 104.3 117.9 99.1 84.0 125.8 104.4 117.9 99.0 83.9 126.6 105.0 117.9 99.0 83.9 126.3 104.7 117.9 99.0 83.9 125.9 104.6 117.9 99.0 83.6 M etals and metal products. __________ ___ Building materials__________ ____________ Chemicals and allied products........... .............. Housefumishing goods____________________ M iscellaneous--- _ __ _ ____________ ____ - 104.3 116.9 94.9 106.2 94.1 104.3 116.9 94.9 106.2 94.1 104.2 116.7 94.9 106. 2 94.1 104.2 116.7 94.9 106.2 94.1 104.3 116.7 94.9 106.1 94.0 104.2 116.7 94.9 106.1 94.0 104.0 116.4 94.9 106.1 94.0 103.9 116.4 94.9 106.1 93.9 Raw materials- . ___ _______ . ___ 115.7 Semimanufactured articles________________ 94.8 Manufactured products____ _____ _________ 101.6 All commodities other than farm products ,- 100.1 All commodities other than farm products and foods______________________________ 99.3 116.2 94.8 101. 6 100.1 116.0 94.8 101.6 100.1 115.3 94.8 101.6 100.1 115.3 94.8 101.6 100.0 115.8 94.8 101.6 100.0 115.6 94.7 101.4 99.9 115.4 94.7 101.3 99.9 99.3 99.3 99.3 99.3 99.3 99.2 99.1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor Turnover L abor T urnover in M anufacturing, M ining, and P ublic U tilities, January 1945 FOR every 1,000 workers on factory pay rolls in January, 61 either changed jobs or left manufacturing work. The rate of accession, 69 per 1,000, was considerably above the December low of 51 and slightly higher than in January 1944. The increased accession rate between December and January may be explained, in part, by the use of furloughed soldiers in the critical war industries. However, interindustry shifting of workers accounted for many of the additions. The machinery group profited most from these shifts, receiving workers from plants in the transporta tion-equipment, nonferrous-metals, ordnance, electrical-machinery, iron and steel, and automobile groups. Of these, only the ordnance and automobile groups received enough workers from other major groups to more than make up their losses. The greatest amount of shifting took place in the ordnance group. The lay-off rate for all manufacturing rose slightly, from 5 to 6 per 1,000, between December and January. The rate of lay-offs in the munitions group was almost double that in the nonmunitions, re flecting revised schedules in the production of war equipment. The highest group lay-off rate, 13 per 1,000 workers, was reported by the transportation-equipment group. An equipment shortage in ship building accounted, in part, for the doubling of the lay-off rate in that industry. The ordnance and nonferrous-metals groups each laid off 7 per 1,000 workers. The tanks industry of the ordnance group reported a lay-off rate of 26 per 1,000, occasioned by cut-backs in heavy tank production in some plants. Continued curtailment of production in aluminum and magnesium plants accounted for the high lay-off rate in the nonferrous-metals group. Of the 20 major manufacturing groups, 14 reported a higher dis charge rate in January than in December, which is reflected in the slight rise to 7 per 1,000 for all manufacturing. Discharges were higher in the munitions group. Reporting firms indicated that absenteeism was the main reason for discharges, while incompetence and infraction of rules were secondary causes. In manufacturing as a whole, 45 out of every 1,000 workers volun tarily left their jobs in January. The quit rate in three-fourths of the major groups was above the December level. A shifting of workers from food establishments to essential war industries to avoid being drafted accounted for the highest quit rate, 82 per 1,000. Dissatis faction with wages in the tobacco industry is reflected in the second 880 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 881 LABOR TURNOVER highest quit rate, 72 per'1,000 workers. At the same time, the greenleaf season, which opened in December, necessitated the hiring of a considerable number of workers in the tobacco group, raising the accession rate from 4.9 to 8.0 over the month. Accessions in all mining were above the December level. However, both total accession and separation rates for metal mining as a whole and for each of the coal-mining industries were lower than those for all manufacturing, in January. The total separation rate for women in manufacturing work was 73 per 1,000 as against 55 for men. The accession rate for both men ancl women more than offset their separation rates. T able 1.—Monthly Labor-Turnover Rates (Per 100 Employees) in Manufacturing Industries 1 Class of turnover and year Janu Feb March A pril May June ary ruary Total separation: 1945____________ 2 6.1 1944____________ 6.7 1943____________ 7.1 1939____________ 3.2 Quit: 1945____________ 2 4. 5 1944-............. ......... 4.6 4.5 1943................... 1939____________ .9 Discharge: 1945____________ 2.7 1944______ ____ _ .7 1943____________ .5 1939___________ .1 Lay-off:3 1945____________ 2.6 1944____________ .8 1943— . ............. .7 1939____________ 2.2 M ilitary and miscellaneous:4 1945____________ 2.3 1944____________ .6 1943____________ 1.4 Accession: 1945____________ 2 6.9 1944____________ 6. 5 1943____________ 8.3 1939................... 4.1 July Au gust Sep No- D e tem Octo cem ber vember .ber ber 6.6 7.1 2.6 7.4 7.7 3.1 6.8 7.5 3.5 7.1 6.7 3.5 7.1 7.1 3.3 6.6 7.6 3.3 7.8 8.3 3.0 7.6 8.1 2.8 6.4 7.0 2.9 6.0 6.4 3.0 5.7 6.6 3.5 4.6 4.7 .6 5.0 5.4 .8 4.9 5.4 .8 5.3 4.8 .7 5.4 5.2 .7 5.5 5.6 .7 6.2 6.3 .8 6.1 6.3 1.1 5.0 5.2 .9 4.6 4.5 .8 4.3 4.4 .7 .6 .5 .1 .7 .6 .1 .6 .5 .1 .6 .6 .1 .7 .6 .1 .7 .7 .1 .7 .7 .1 .6 .6 .1 .6 .6 .2 .6 .6 .2 .6 .6 .1 .8 .5 1.9 .9 .5 2.2 .6 .6 2.6 .5 .5 2.7 .5 .5 2.5 .5 .5 2.5 .5 .5 2.1 .6 .5 1.6 .5 .5 1.8 .5 .7 2.0 .5 1.0 2.7 .6 1.4 .8 1.2 .7 1.0 .7 .8 .5 .8 .4 .8 .4 .8 .3 .7 .3 .7 .3 .6 .3 .6 5.5 7.9 3.1 5.8 8.3 3.3 5.5 7.4 2.9 6.4 7.2 3.3 7.6 8.4 3.9 6.3 7.8 4.2 6.3 7.6 5.1 6.1 7.7 6.2 6.0 7.2 5.9 6.1 6.6 4.1 4.9 5.2 2.8 1 Month-to-montb employment changes as indicated by labor-turnover rates are not precisely com parable to those shown by the Bureau’s employment and pay-roll reports, as the former are based on data for the entire month while the latter refer, for the most part, to a 1-week period ending nearest the middle of the month. In addition, labor-turnover data, beginning in January 1943, refer to all employees, whereas the employment and pay-roll reports relate only to wage earners. The labor-turnover sample is not so extensive as that of the employment and pay-roll survey, proportionately fewer small plants are included; printing and publishing and certain seasonal industries, such as canning and preserving, are not covered. 2 Preliminary. 3 Including temporary, indeterminate, and permanent lay-offs. 4 Miscellaneous separations comprise not more than 0.1 in these figures. In 1939 these data were included with quits. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 882 MONTHLY LABOR REVIEW— APRIL 1945 T a b l e 2 . — Monthly Labor-Turnover Rates (Per 100 Employees) in Selected Groups and Industries,1 January 1945 2 Total separation Quit Discharge Lay-off Military Total and mis cellaneous accession Group and industry Jan uary 1945 D e D e Jan- D e Jan D e Jan D e cem uarv cem cem Jan cem cem Jan ber 1945 ber uary ber uary ber uary ber uary 1945 1945 1945 1944 1944 1944 1944 1944 1945 D e cem ber 1944 Manufacturing M unitions 3 ________________ ______ Nonmunitions 3_________ _____ __ . . . 5.6 6.8 5.2 6.4 Ordnance____ _____________ _____ Guns, howitzers, mortars and re lated eq u ip m en t..____________ Ammunition, except for small arms.. T anks_________________________ Sighting and fire-control equip m e n t.____ ___________________ 7.6 6.4 5.7 8.4 8.6 5.1 7.6 5.6 3.7 2.3 2.2 Iron and steel and their products_____ Blast furnaces, steel works, and rolling mills__________________ Gray-iron castings______________ Malleable-iron castings___ . . . Steel castings___________ _______ Cast-iron pipe and fittings_______ Tin cans and other tinw are........... Wire products__________________ Cutlery and edge tools______ . . Tools (except edge tools, machine tools, files, and saws)__________ Hardware______________________ Stoves, oil burners, and heating equipment___________________ Steam and hot-water heating ap paratus and steam fittings______ Stamped and enameled ware and galvanizing________________ __ Fabricated structural-metal prod ucts___________ _______ ____ Bolts, nuts, washers, and rivets__ Forgings, iron and steel_________ Firearms (60 caliber and under)__ 4.1 4.0 3.0 2.8 7.0 5.3 5.7 4.6 8.9 2.7 4.1 2.7 7.4 5.3 5.4 2.5 8.5 2.7 4.5 2.1 5.4 4. 1 4. 2 3.7 6.8 2. 1 2.9 4.7 3.9 4.1 3.5 3.4 3.2 7.3 8.5 4.6 4.6 7.1 3.7 5.7 0.7 .4 0.9 .4 0.7 .4 5.4 4.8 1.2 .9 .7 3.6 6.3 4.6 3.1 5.9 3.7 .8 1.4 1.1 .6 1.1 .9 1.0 .4 2.6 1.6 .5 .4 .8 .1 .2 .2 4.4 2.4 2.9 .4 .4 .3 .4 .4 .3 5.1 3.6 2.2 5.9 4.5 4.0 1.9 6.2 2.0 3.9 .2 1.1 .7 .8 .5 1.5 .3 1.0 .1 .9 .5 .8 .3 1.3 .3 .4 .2 .1 .2 .2 0) .3 w .1 .3 .1 .3 .1 .7 .2 (4) .3 .4 .3 .5 .4 .3 .3 .2 .3 3.6 .3 9.8 .2 7.4 .3 7.2 .2 4.2 .3 12.6 . 2 4.6 .2 7. 1 2.7 7.7 6.2 4.7 2.9 6.2 3.5 6. 1 3.2 2.4 .7 .3 .5 .4 .1 .1 .1 .5 .5 .3 .3 .2 7.6 4. 1 4.3 2.9 3.8 6.4 1.4 1.2 1.6 .6 .5 .3 9.0 8.2 3.7 3.2 .3 .3 .1 .8 .5 .3 4.7 2.9 5.6 5.3 4.4 .7 .6 .6 .3 .5 .3 8.1 5. 1 9.3 5.2 3.8 4.2 8.0 3.6 3.8 6.0 4.8 3.4 2.8 2.9 4.7 2. 1 2.8 3.0 .8 .7 .4 .5 .7 .4 .4 .8 3.2 .8 .3 .6 2.2 .8 .3 2.0 .5 .3 .3 .2 .4 .3 .3 .2 7.9 4.0 4.6 5.7 5.2 2.4 3.6 3.9 Fdectrical m achinery..._____________ Electrical equipment for indus trial use_______________ ______ Radios, radio equipment, and phonographs_____ ____ ______ _ Communication equipment, ex cept radios........... .......................... 4.4 4.3 3.2 3.0 .6 .5 .3 .5 .3 .3 4.9 3.1 3.4 3.3 2.7 2.5 .3 .3 .1 .3 .3 .2 3.8 2.6 5.5 4.8 4.0 3.2 .8 .7 .4 .6 .3 .3 7.1 3.6 2.8 3.8 2.2 2.7 .3 .3 .1 .5 .2 .3 2.5 2.4 Machinery, except electrical________ Engines and turbines_______ . . . Agricultural machinery and trac tors____ . . . _________________ Machine tools__________________ Machine-tool accessories____ ____ Metalworking machinery and equipment, not elsewhere classi fied_____________ _______ _____ General industrial machinery, ex cept pumps__________________ Pumps and pumping equipment _ 3.9 4.6 3.6 3.7 2.7 3.0 2.5 2.5 .6 .7 .5 .5 .3 .5 .3 .4 .3 .4 .3 .3 4.9 5.3 3.4 4.0 4.4 2.7 4.1 4.0 2.6 3.0 3.4 1.8 2.4 3.2 1. 7 2.0 .5 .5 .7 .4 .5 .6 .1 .2 .7 .1 .2 .1 .4 .2 .3 .3 .2 .3 5.2 4.5 4.1 4.4 2.6 2.8 (4.) 0.6 .5 0.3 .3 0.3 .2 6.5 7.6 .5 .3 .2 10.2 1.2 .4 .7 .3 .3 .3 .2 7.1 .2 11.8 .3 8.1 4.6 5.7 3.6 5.3 7.4 5.0 8.9 5.6 3.2 3.0 2.1 2.1 .6 .5 .1 .1 .4 .3 4.8 3.1 3.9 3.7 3.5 3.6 2.8 2.7 2.4 2.8 .6 .6 .5 .6 .2 « .3 (*) .3 .4 .3 .2 5.1 4.7 3.0 3.2 Transportation equipment, except automobiles_________ _________ _ 7.3 Aircraft____ _______ ___________ 4.9 Aircraft parts__________________ 4.7 Shipbuilding and repairs________ 10.4 6.6 4.5 4.7 9.0 4.3 3.7 2.6 5.7 4.3 3.5 2.5 5.9 1.4 .6 .7 2.3 1.1 .5 .5 1.8 1.3 .3 1.2 2.0 .9 .3 1.5 1.0 .3 .3 .2 .4 .3 .2 .2 .3 7.0 6.7 5.4 8.2 5.1 4.5 3.7 6.4 Automobiles_______________________ 5.7 Motor vehicles, bodies, and trailers 5.1 Motor-vehicle parts and accessories. 6.2 5.2 4.9 5.5 3.9 2.9 4.4 3.8 3.2 4.2 1.3 1.4 1.3 .8 .7 .9 .3 .5 .3 .3 .7 .1 .2 .3 .2 .3 .3 .3 7.3 6.5 7.7 5.3 5.0 5.5 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR TURNOVER 883 T a b l e 2 . —Monthly Labor-Turnover Rates (Per 100 Employees) in Selected Groups and Industries,1 January 1945 2—Continued Total separation Quit Discharge Lay-off Military Total and mis cellaneous accession Group and industry Januarv 1945 De Jan •De Jan D e D e D e Jan cem Jan D e cem uary cem cem Jan uary cem uary uary cem ber ber 1945 ber uary ber ber ber 1944 1944 1945 1944 1945 1944 1945 1944 1945 1944 Manufacturing—Continued Nonferrous metals and their products __ Primary smelting and refining, except aluminum and magne sium________________ ________ Aluminum and magnesium smelt ing and refining______________ Rolling and drawing of copper and copper alloys_____________ Aluminum and magnesium prod ucts_________________________ Lighting equip m ent,... Nonferrous-metal foundries, ex cept aluminum and magnesium- 5.5 4.9 3.8 3.3 3.4 0.6 0.6 0.7 0.7 0.4 0.3 7.6 5.0 3.0 3.5 2.7 2.7 .2 .2 .1 .1 .4 .5 3.7 7.8 11.7 5.8 5.8 .4 .5 1.0 4.9 .6 .5 7.8 6. 7 4.3 3.7 3.5 3.0 .4 .4 .2 .1 .2 .2 7.7 4.0 6.0 6.6 4.9 3.8 3.8 4.7 3.3 2.7 .7 1.0 .6 .7 1.0 .3 .7 .2 .5 .6 .3 .2 9.3 8.1 5.6 7.3 5.1 5.0 4.0 3.7 ,6 .6 .1 .3 .4 .4 6.1 5.1 Lumber and timber basic products.-. 8.6 10.3 Sawmills____________________ __ 8.5 10.0 Planing and plywood mills______ 6.6 9.3 6.8 6.9 4.6 7.6 7.2 6.9 .4 .3 .5 .4 .3 .5 1.0 .9 1. 2 2.0 2.2 1.5 .4 .4 .3 .3 .3 .4 9.6 9. 1 7.5 8.0 7.6 7.5 Furniture and finished lumber pro ducts __ Furniture, including mattresses and bedsprings......................... . 7.9 8.3 6.5 6.8 .6 .5 .4 .8 .4 2 9 fi 7.0 8.0 8.4 6.8 7.1 .6 .6 .2 .5 .4 .2 9.7 7.0 Stone, clay, and glass products______ Glass and glass products________ Cement____________________ . . . Brick, tile, and terra cotta______ Pottery and related products____ 5.2 5.5 5.1 6.2 5.9 4.9 4.7 7.3 6.0 4.6 3.9 3.9 3.5 4.8 4.6 3.6 3.4 2.9 4.8 4.0 .4 .5 .2 .7 .4 .3 .5 .3 .4 .2 .5 .5 1.1 .3 .5 .7 .5 3.8 .5 .1 .4 .6 .3 .4 .4 .3 .3 .3 .3 .3 5.3 5.9 3.7 6.7 5.2 4.1 4.3 2.5 5.6 4.5 Textile-mill products______________ _ Cotton ____ _______ ________ Silk and rayon goods___________ Woolen and worsted, except dye ing and finishing_________ ____ Hosiery, full-fashioned__________ Hosiery, seamless_______ _______ Knitted underwear.. _________ Dyeing and finishing textiles, in cluding woolen and worsted___ 6.0 7.2 6. 1 5.4 6.4 5.2 5.0 6.1 5.0 4.5 5. o 4.3 .4 .5 .6 .4 .4 .5 .3 .3 .1 .3 .2 .1 .3 .3 .4 .2 .3 .3 7.0 8.4 7.0 4.5 5.7 4.1 3.5 4.7 5.0 5.1 3.3 4.1 4.6 4.6 2.6 4.1 4.4 4. 7 2.2 3.4 4.0 4.3 .3 .2 .2 .2 .2 .1 .3 .2 .4 .2 .2 .1 .7 .5 .2 0) .2 .2 .2 .1 .2 .1 .1 .1 4.1 5.0 6.4 6.5 2.4 1.7 3.2 3.8 2.8 2.7 .3 .5 .1 .2 .4 .3 4.4 2.7 3.6 3.7 Apparel and other finished textile products______ _____ ______ _. 5.5 M en’s and boys’ suits, coats, and overcoats_____________ ___ . . . 4.2 M en’s and boys’ furnishings, work clothing, and allied garments__ 5.6 5. 1 5.0 4.2 .2 .2 .2 .6 .1 .1 6.0 3.2 4.3 3.8 3.4 .1 .1 .2 .8 .1 0) 4.8 2.3 4.7 5.1 4.2 .2 .2 .2 .2 .1 .1 5.7 2.7 Leather and leather products____. . 5.4 Leather... _____ . . . . . . _____ _ 3.6 Boots and shoes________________ 5.7 4.6 3.3 4.9 4.7 2.9 5.0 4.0 2.6 4.3 .3 .2 .3 .2 .2 .2 .1 .2 .1 .2 .2 .2 .3 .3 .3 .2 .3 .2 5.8 4.4 6.0 4.3 3.2 4.4 Food and kindred products_________ 9.7 10.6 Meat products_____ Grain-mill products________ ____ 8.4 8.5 8.6 7.7 8.2 8.8 6.9 7.5 7.5 6.7 .6 .6 .7 .5 .6 .5 .5 .7 .4 .2 .2 .3 .4 .5 .4 .3 9.7 .3 10.1 .2 9.9 8.9 11.2 7.1 Tobacco manufactures. 7.9 6.1 7.2 5.7 .3 .2 .3 .1 .1 .1 8.0 4.9 Paper and allied products________ . . 5.7 Paper and pulp_________ . 4.9 Paper boxes...I..................... ............ 8.1 ........ ............. 6.2 6.4 7.0 4.6 3.8 6.9 5.3 5.3 5.8 .5 .4 .7 .4 .4 .7 .2 .2 .1 .2 .3 .2 .4 .5 .4 .3 .4 .3 6.7 5.8 9.0 6.0 6.1 5.7 Chemicals and allied products_______ Paints, varnishes, and colors____ Rayon and allied products______ Industrial chemicals, except ex plosives. ........... . ................... . Explosives_____________________ Small-arms ammunition........ ......... 4.6 3.2 4.2 4.1 3.1 3.7 3.5 2.3 3.5 3.1 2.4 3.1 .7 .5 .3 .5 .5 .2 .1 .1 .1 .2 .1 .2 .3 .3 .3 .3 .1 .2 7.8 3.3 5.5 5.9 2.7 3.2 3.8 6.2 5.0 3.7 5.7 3.7 2.7 4.7 3.8 2.6 4.5 3.0 .6 1.1 .9 .5 .7 .5 .2 0) .1 .3 .1 .1 .3 .4 .2 .3 4.3 .4 10.0 . 1 12.7 3.2 7.8 11.3 Products of petroleum and coal______ 2.7 Petroleum refining____ _________ 2.7 2.8 2.9 1.9 1.9 2.0 2.1 .2 .2 .3 .3 .3 .3 .2 .2 .3 .3 .3 .3 See fo o tn o te s a t end o f table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3.8 3.8 2.5 2.5 884 MONTHLY LABOR REVIEW— APRIL 1945 T a b l e 2 . — Monthly Labor-Turnover Rates (Per 100 Employees) in Selected Groups and Industries,1 January 1945 2—Continued Total separation Group and industry Jan. uary 1945 Quit Discharge Lay-off De. Jan. D e Jan. D e Jan. cem- uary cem uary cem uary ber ber ber 1944 1945 1944 1945 1944 1945 Military Total and mis cellaneous accessioD D e Jan. cem uary ber 1944 1945 De Jan. cem uary ber 1944 1945 D e cem ber 1944 Manufacturing—Continued 5.5 5.2 4.9 4.8 4.4 4.0 4.1 3.9 0.6 .7 0.4 .5 0.2 .2 0.1 .1 0.3 .3 0.3 .3 7.3 7.6 5.3 5.7 6.4 5.8 5.6 4.9 5.9 4.8 5.0 4.2 .3 .4 .2 .3 (*) .3 .1 .1 .2 .3 .3 .3 8.1 6.7 5.2 4.8 Miscellaneous industries------ ------------ 4.3 3.3 3.0 2.4 .6 .3 .4 .4 .3 .2 5.9 3.0 4.5 2.8 5.2 4.5 4.4 3.4 4.7 5.0 3.1 1.9 3.9 3.3 3.1 2.0 3.7 3.8 .4 .2 .5 .5 .4 .1 .3 .5 .5 .4 .2 .2 .5 .9 .3 .4 .5 .3 .6 .5 .4 .4 .4 .3 4.5 2.1 5.7 6.6 3.5 1.4 4.7 5.1 6.7 5.5 3.6 3.8 .8 1.2 1.7 .2 .6 .3 4.9 4.2 Coal mining: Anthracite mining--------------- ----- 1.6 Bituminous-coal mining_________ 3.3 1.6 3.6 1.2 2.7 1.1 3.0 (4) .2 0) .1 .2 .1 .3 .3 .2 .3 .2 .2 1.3 3.5 1.1 2.8 Public utilities: Telephone_____________________ Telegraph__ _________________ 2.7 3.1 2.6 3.0 2.4 2.8 .2 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 3.2 2.9 1.9 2.5 Rubber products___________________ Rubber tires and inner tubes____ Rubber footwear and related products________________________ Miscellaneous rubber industries _. Nonmanufacturing Metal mining_____________________ Iron ore----------- ------------Copper ore_____________________ Lead and zinc ore. _ --------------M etal mining, not elsewhere classified, including aluminum ore______ ____ _______ ____ 3.0 3.3 1 Since January 1943 manufacturing firms reporting labor turnover have been assigned industry codes on the basis of current products. M ost plants in the employment and pay-roll sample, comprising those which were in operation in 1939, are classified according to their major activity at that time, regardless of any subsequent change in major products. 2 Preliminary figures. s The munitions division which replaces the Selected War Industries group, includes the following major industry groups: Ordnance; iron and steel; electrical machinery; machinery, except electrical; automobiles; transportation equipment, except automobiles; nonferrous metals; chemicals; products of petroleum and coal; rubber. The nonmunitions division includes lumber; furniture and finished lumber products; stone; clay, and glass; textile-mill products; apparel and finished textile products; leather; food and kin dred products; tobacco; paper and pulp; miscellaneous industries. Comparable data for 1943 and 1944 w ill appear in a forthcoming issue of the M onthly Labor Review. * Less than 0.05. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR TURNOVER 885 T a b l e 3 . —Monthly Labor-Turnover Rates (Per 100 Employees) 1for Men and Women in Selected Industries Engaged in War Production, January 1945 2 Total separa tion Industry group and industry Men A ll manufacturing, . ________ _______ _ W omen Quit Men Total accession Women Men Women 5.5 7.3 3.8 6.0 6.5 7.9 Ordnance, . . . ______ _ ______ Guns, howitzers, mortars, and related equipment Ammunition, except for small arms____________ T anks__________ ___ . Sighting and fire-control equipm ent,,. ____ .. 6.4 4.7 7.3 7.6 2.3 9.5 9.0 9.9 9.1 6.2 4.0 2.7 4.8 3.5 1.4 7.7 6.6 8.3 6.9 3.7 9.7 6.3 11.8 7.9 3.3 11.1 9.9 11.8 9.9 6.3 Iron and steel and their products______ Blast furnaces, steel works, and rolling mills___ Gray-iron castings____________________ Malleable-iron castings________ . Steel castings_______ ____ _____ Cast-iron pipe and fittings_________ Firearms (60 caliber and under), . . 3.8 2.6 6.8 5.2 5.6 4.4 3.5 7. 1 5.4 8. 1 6.2 6.7 6.0 7.1 2.6 1.9 5.1 3.9 4.2 3.6 2.2 5.4 4.6 6.0 5.7 4.7 4.8 5.0 4.9 3.4 9.5 7.6 7.2 3.5 4.8 8. 2 7.5 9.1 5.8 6.7 10. 7 8.2 ___ _ Electrical machinery _____ Electrical equipment for industrial use___ Radios, radio equipment, and p h o n o g r a p h s ,. . . Communication equipment, except radios___ 3.1 2.4 3.8 2.0 5.8 5.2 6.8 3.5 2.0 1.7 2.6 1.2 4.6 4.5 5.0 3.0 3.8 2. 6 5.5 2.4 6.1 5. 3 8.3 2.5 Machinery, except electrical,. __________________ _____ . . . Engines and tu rb in e s______ Machine to o ls.. . _______ Machine-tool accessories_________ Metal-working machinery and equipment, not elsewhere classified________________________ General industrial machinery, except pumps Pumps and pumping equipment__________ ._ . 3.3 3.9 2.5 3.4 6.0 6.7 4.9 6.1 2.2 2.3 1.6 1.8 4. 6 5.0 3.8 4.1 4.5 4. 5 4.1 3.8 6 6 7. 5 7.1 5.0 2.7 3.4 2.9 5.4 5.5 6.9 1.8 2.3 1.9 3.6 4.4 5.6 4.3 4.5 4.4 7.0 6.9 6.0 6.8 3.7 3.8 10.3 8.7 6.7 6.6 15.3 3.7 2.5 2.0 5.3 6.0 4.0 9.3 6.9 6.2 4.8 8.5 7.6 7. 5 6.7 8.8 4.6 6.6 3.4 5.4 7.3 9.0 3.3 7.5 3.6 5.8 5.3 10.3 7.0 6.7 2.6 5.6 2.8 3.5 3.9 7.7 6.3 5.2 3.6 7.8 7.2 8.9 4. 5 7. 5 9.8 11.2 Transportation equipment, except automobiles Aircraft-.. _________________ _ Aircraft parts _ _______________ Shipbuilding and repairs___________ Nonferrous metals and their products.. _ Primary smelting and refining, except aluminum and magnesium._____ . . . . Aluminum and magnesium smelting and refining. Rolling and drawing of copper and copper alloys.. Aluminum and magnesium products Nonferrous-metal foundries, except aluminum and m a g n e s i u m . . . . __ _ ____ 4.8 5.6 3.5 5.0 5.7 7.0 Chemicals and allied products Industrial chemicals, except explosives___. . . _ E xplosives... ______ ___ Small-arms am m unition... 4.1 3.6 5.7 4.6 5.8 4.6 7.9 5.7 2.8 2.4 4.0 2.9 5.0 3.7 6.7 4.9 7.0 4.3 9.2 12.6 9.4 4.7 12.0 12.8 1 These figures are presented to show comparative turnover rates and should not be used to estimate employment. 3 Data are preliminary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Building Operations B uilding C onstruction in U rban Areas, F ebruary 1945 BUILDING construction started in urban areas of the United States rose nearly 15 percent from January. The total value of all urban building construction started during February was approximately 77 million dollars, over three-fifths of which was for non-Federally financed work. New nonresidential building, two-thirds of it Federally financed, made up over half the building construction started this month. Practically all of the new residential building was non-Federal, which rose in value 18 percent from the previous month as compared with a 37-percent increase in new nonresidential building. Total valuations for additions, alterations, and repairs in the month de clined 13 percent from January. To meet a demand for additional industrial capacity, new non residential construction increased by one-half over February 1944, in both Federal and non-Federal work. On the other hand, new residential work declined almost two-fifths over the year because of the virtual completion of Federal war housing programs and because of wartime ceilings on nonessential building. Federal new residential building declined by 2.7 million dollars from a year ago, as compared with a drop of 8.3 million dollars in non-Federal residential construc tion. While new residential building decreased, additions, alterations, and repair work increased 7 percent over February 1944, with Feder ally financed work accounting for the largest proportion of the gain. T able 1.— Summary of Building Construction in all Urban Areas, February 1944 and January and February 1945 Number of buildings Class of construction February 1945 Value Percent of change from— Percent of change February from— 1945 (thou sands of January February dollars) January February 1945 1944 1945 1944 All building construction___________ 34, 342 - 0 .1 - 4 .8 76,932 +14.8 + 5 .0 New resid en tial____ _______ - N ew nonresidential. . . . _____ Additions, alterations, and repairs___ 4,623 4, 676 25,043 +7.1 - 3 .6 -.6 -4 0 .5 +28.0 + 1.6 17, 232 38, 547 21,153 +17.6 +36.9 -1 2 .7 -3 8 .9 +52.1 + 7 .2 There was a 6-percent rise over January in the number of new dwelling units begun during the month. The total of 5,324 units started in February 1945 and the 5,046 started in January were all privately financed. In February 1944, however, Federal contracts were let for nearly 1,200 units out of a total of about 9,000. 886 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 887 BUILDING OPERATIONS T a b l e 2 . —Number and Value of New Dwelling Units in all Urban Areas, by Source of Funds and Type of Dwelling, February 1945 Value Number of dwelling units Source of funds and type of dwelling Percent of change from— February 1945 (thousands January February of dollars) January February 1945 1944 1945 1944 Percent of change from— February 1945 All dwellings.................................... _ Privately financed___________ _____ 1fam ily______________ 2family 1_____________ Multifamily 2__________________ Federally financed.. ...... ................. . 5,324 + 5 .5 -4 1 .2 16,861 +18.9 -3 9 .9 5,324 4,326 366 632 0 + 5 .5 + 5 .6 +71.8 -1 4 .4 (3) -3 2 .3 -2 9 .8 -1 0 .5 -5 1 .0 (3) 16,861 13, 593 996 2,272 0 +18.9 +17.6 +71.7 +11.2 (3) -3 2 .9 -3 0 .4 -2 2 .4 -4 7 .2 « 1 Includes 1- and 2-family dwellings with stores. 3 Includes multifamily dwellings with stores. 3 Percent of change not computed since no contract award notifications were received during January and February 1945. Comparison of First 2 Months of 1944 and 1945 At the close of the first 2 months of 1945, the cumulative value of building construction started in all urban areas was approximately 144 million dollars, 10 percent below the aggregate for the same period in 1944. Non-Federal work was 9 percent and Federal work about 12 percent below the point where it was at the end of February a year ago. On the other hand, the new nonresidential building started was 11 percent higher in value by the end of February 1945 than in 1944, entirely because of greater non-Federal activity. Fur thermore, the values of additions, alterations, andjTepairs were 14 percent higher. T a b l e 3 .— Value of Building Construction in all Urban Areas, by Class of Construction, First 2 Months of 1944 and 1945 Value (in thousands of dollars) Federal construction Total construction Class of construction All construction_______________ ______ New residential------- ---------- --------------New nonresidential__________________ Additions, alterations, and repairs------- First 2 months of— 1945 1944 143, 968 160,401 31,889 66, 696 45, 383 60,480 60,125 39,796 Percent of change -1 0 .2 -4 7 .3 +10.9 +14.0 First 2 months of— Percent of change 1945 1944 47,131 53, 500 -1 1 .9 305 40,570 6,256 9,172 41,092 3,236 -9 6 .7 - 1 .3 +93.3 T a b l e 4 . —Number and Value of New Dwelling Units in all Urban Areas, by Source of Funds and Type of Dwelling, First 2 Months of 1944 and 1945 Number of dwelling units Source of funds and type of dwelling First 2 months of— 1945 All dwellings......................... ....................... Privately financed- ------- --------- --------1-fam ily------ ------------------------------2-family i___________________ _____ M ultifam ily3-----------------------------Federal______________________ ____ 1944 Percent of change 10, 370 20,066 -4 8 .3 10, 370 8,421 579 1, 370 0 16,082 12,418 1,386 2,278 3,984 -3 5 .5 -3 2 .3 -5 8 .2 -3 9 .9 (3) Value (in thousands of dollars) First 2 months of— 1945 1944 Percent of change 31.046 60,151 -4 8 .4 31.046 25,155 1, 576 4,315 0 51,150 39, 606 4,358 7,186 9,001 -3 9 .3 -3 6 .5 -6 3 .8 -4 0 .0 (?) i Includes 1- and 2-family dwellings with stores. 3 Includes multifamily dwellings with stores. , . . . 3 Percent of change not computed since no contract award notifications were received during January ana February 1945. 630372— 45----- 13 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 888 MONTHLY LABOR REVIEW— APRIL 1945 , Construction From Public Funds February 1945 The value of contracts awarded and force-account work started during January and February 1945 and February 1944 on all con struction proj ects, excluding shipbuilding, financed wholly or partially from Federal funds and reported to the Bureau of Labor Statistics, is shown in table 5. This table includes construction both inside and outside the corporate limits of cities. T a b l e 5. — Value of Contracts Awarded and Force-Account Work Started on Construction Projects 1 Financed From Federal Funds, February 1945 Value (in thousands of dollars) of contracts awarded and force-account work started Source of funds February 19452 January 1945 3 February 19443 _____________ 44,953 51, 743 94,114 War public works 4__ ______ _ ______ __ _________ ___ _ Regular Federal appropriations • _ _ _ _ _ ___ Federal Public Housing Authority. ________________ 2,113 42, 535 305 6,343 45,048 352 4,664 84, 645 4, 805 All Federal sources _______ _ i Excludes the following amounts (in thousands of dollars) for ship construction: February 1945, 893,191; January 1945, 333,661; February 1944, 109,764. 3 Preliminary; subject to revision. 3 Revised. 4 Public works financed under the Lanham Act, to provide facilities in crowded war districts. Coverage and Method Figures on building construction in this report cover the entire urban area of the United States which by Census definition includes all incorporated places with a 1940 population of 2,500 or more and, by special rule, a small number of unincorporated civil divisions. Valuation figures, the basis for statements concerning value, are derived from estimates of construction cost made by prospective private builders when applying for permits to build, and the value of contracts awarded by Federal and State governments. No land costs are included. Unless otherwise indicated, only building con struction within the corporate limits of cities in urban areas is in cluded in the tabulations. Reports of building permits which were received in February 1945 for cities containing between 80 and 85 percent of the urban population of the country, provide the basis for estimating the total number of buildings and dwelling units and the valuation of private urban building construction. Similar data for Federally financed urban building construction are compiled directly from notifications of construction contracts awarded, as furnished by Federal agencies. The contracts awarded and force-account work started on Federally financed building construction inside the corporate limits of cities in urban areas were valued at $27,518,000 in February 1945, $19,613,000 in January 1945, and $21,531,000 in February 1944. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trend o f Employment9 Earnings, and Hours Sum m ary of R eports for February 1945 E M PL O Y M E N T in nonagricultural establishments declined 840,000 between F ebruary 1944 and February 1945, during which period there was a net increase of 1% million in the armed forces. Nonagricultural employment stood at 38 million in February, about 3,000 more than in January. Industrial and Business Employment Wage-earner employment in all manufacturing industries combined declined 17,000 between January and February. There was no change in munitions employment. The falling off in munitions employment which started in December 1943 came to a halt in November 1944, since which time there has been a gain of about 40,000. The largest increase over the month, 12,000, was reported by the iron and steel group and was concentrated in the bag and shell load ing, heavy ammunition, and blast furnace industries. The chemicals group reported an increase of 10,000. Most of this gain may be attributed to plants manufacturing small-arms ammunition and explosives. Despite increases in employment in the aircraft and aircraft-engine industries, the transportation equipment group reported a decline of 32,000. The shipbuilding industry, in which the decline was localized, reported completion of some contracts, and cut-backs in production schedules as a result of cancellation of other contracts. The decline in nonmunitions employment reflected drops in the food and textile-mill products groups. The m ajor share' of the drop of 12.000 in the food group was brought about by a decrease in receipts of livestock, necessitating the laying off of employees in the slaughter ing and meat-packing industry. To a lesser degree, the decline in employment in the food industries may be attributed to seasonal lay offs in canning. The decline of 8,000 in the textile-mill products group was shared by almost all of the industries in that group. How ever, the only significant decrease was in cotton goods. The number of bituminous-coal miners remained at 338,000. With but three exceptions, employment in this industry has been declining each month since the last quarter of 1941 and is at present over 100.000 below the peak. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 889 890 MONTHLY LABOR REVIEW— APRIL 1945 Ta b l e 1.—Estimated Number of Wage Earners and Indexes of Wage-Earner Employment in Manufacturing Industries , by Major Industry Group 1 Estimated number of wage earners (in thousands) Wage earner indexes (1939=100) Industry group February January December February February January 1945 2 1944 1944 1945 2 1945 1945 All manufacturing______________ ______ _ _________ Durable goods____ Nondurable goods_____ __________ 13, 095 7, 785 5, 310 13,112 7, 796 5,316 13,190 7, 804 5,386 14, 254 8, 698 5, 556 159.9 215.6 115.9 160.1 215.9 116.0 Iron and steel and their products . _ Electrical machinery___ ____________ Machinery, except electrical_____ ____ __ Transportation equipment, except auto mobiles_____ _______________ _______ . . ______ Automobiles, . ________ Nonferrous metals and their products____ Lumber and timber basic products____ _ Furniture and finished lumber products __ Stone, clay, and glass products__________ 1, 669 697 1,167 1,657 698 1,163 1,651 702 1,159 1,730 769 1, 272 168.3 268.8 220.8 167.1 269.2 220.0 2, 050 683 404 451 339 325 2,082 682 398 450 338 328 2,096 677 397 452 340 330 2, 533 753 453 484 358 346 1291. 7 169.7 176.3 107.3 103.2 110.7 1311. 7 169.4 173.6 107.1 103.0 111.6 1,075 1, 083 1,092 1,163 94.0 94.7 835 310 1, 001 82 310 837 311 1, 013 82 309 851 312 1,054 85 312 909 317 1,013 87 320 105.8 89.3 117.1 88.0 .116.7 106.0 89.5 118.6 88.1 116.5 329 638 133 196 401 328 628 133 196 396 335 621 133 194 397 338 655 127 204 423 100.2 221.4 126.1 161.9 163.8 100.1 217.8 126.0 161.8 161.8 Textile-mill products and other fiber man ufactures___ _ _____ Apparel and other finished textile prod ucts__ _______ ______ _ ____ ____ Leather and leather products______ __ . . Food ____ ____ _ _______ ________ Tobacco m anufactures_______ Paper and allied products______________ Printing, publishing, and allied indus tries__ . . ______ _ . Chemicals and allied p r o d u cts.________ Products of petroleum and coal . . . . ... _ Rubber products. _ ___ Miscellaneous industries. _____________ 1 The estimates and indexes presented in this table have been adjusted to levels indicated by final data for 1942 and preliminary data for 1943 made available by the Bureau of Employment Security of the Federal Security Agency. These data are not comparable with data published in mimeographed releases dated prior to February 1945 or in issues of the M onthly Labor Review prior to March 1945. Comparable data from Januáry 1939 are available upon request. 2 Preliminary. Public Employment A 27,000 increase in employment in war agencies within continental United States in February 1945 represented the first sizable expansion since the summer of 1944. The N avy D epartm ent accounted for 19,000 of the rise, the W ar D epartm ent for 7,000, and the W ar Ship ping Adm inistration for 1,000. Other agencies showed a rise of 2,000 in February, which was mostly in the Treasury D epartm ent and Vet erans Adm inistration. The Tennessee Valley A uthority showed a decrease of 1,300 employees. War-agency employment outside continental United States is now over the half-million mark (552,000) and since April 1944 has been increasing at an average rate of almost 20,000 a month. In February 1945, Federal employment (including employment in the executive, legislative, and judicial branches, and in Government corporations) totaled 3% million, with war agencies constituting 75 percent. This represented an increase during the preceding year of 238,000, with a slight increase in the proportion of employees in war agencies. Source oj data .—D ata for the Federal executive service are reported through the Civil Service Commission, whereas data for the legislative and judicial services and Government corporations are reported to the Bureau of Labor Statistics. Force-account employment is also in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 891 TREND OF EMPLOYMENT, EARNINGS, AND HOURS eluded in construction employment (table 5), and navy yard employ ment is also included in employment on shipbuilding and repair projects (table 4). Data for pay rolls are now being revised and the revised series will be available shortly. T a b l e 2 . —Employment in Regular Federal Services and in Government Corporations, in Selected Months Year and month February February February February February February Total 1939... ............. .... 1940. ________________________ 1941. _ _ _ ____________ 1942.. . . . ......................... 1943______________________ . 1944_________________________ November 1944 _ _ . _______ December 1944______ . . . . . . . ... January 1945___ _______ _ ___ February 1945 3________________________ E xecutive1 Legislative Judicial Govern ment cor porations 2 917, 213 992, 856 1,232, 956 1,813,014 3,031,830 3, 263,016 885,021 958,319 1,196,876 1,773, 533 2,988, 636 3,217,941 5,234 5, 889 5,985 6,354 6,284 6,115 2,228 2,360 2, 507 2,584 2, 597 2, 668 24, 730 26,288 27, 58-! 30, 543 34,313 36, 292 3,400, 220 3,702, 940 3, 449, 802 3, 500, 573 3,356, 254 3, 659,220 3,406,672 3,457, 249 6,253 6,203 6,160 6, 561 2,646 2, 646 2, 638 2,643 35,067 34, 871 34,332 34,120 1 Includes employees in United States N avy yards who are also included under shipbuilding (table 4) and employees on force-account construction who are also included under construction projects (table 5). In cludes employees stationed outside continental United States. 2 Data are for employees of the Panama Railroad Co., the Federal Reserve Banks, and banks of the Farm Credit Administration, who are paid out of operating revenues and not out of Federal appropriations. Data for other Government corporations are included under the executive service. 2 Preliminary. T able 3 . —Employment in the Executive Branch of the Federal Government by War and Other Agencies, in Selected Months 1 War agencies2 Other agencies Outside conti nental United States 3 Total Total, war agencies Conti nental United States Outside conti nental United States 3 Total, other agencies Conti nental United States 1939 . . _ . ______ 1 9 4 0 ._____ _____ 1941_______ ____ 1942.. __ ______ 1943... _________ 1944_____________ 885,021 958,319 1,196,876 1, 773, 533 2, 988,636 3, 217,941 187,430 241, 249 433,197 930,853 2,173,311 2, 401, 552 161,092 204,848 368,860 793,172 1,929,862 2, 019, 816 26, 338 36, 401 64, 337 137, 681 243, 449 381,736 697, 591 717,070 763, 679 842, 680 815, 325 816, 389 689, 406 706,042 751,031 828,813 800, 510 800,157 8,185 11,028 12, 648 13,867 14,815 16, 232 November 1944 ‘____ December 1944 4 . January 1945 4___________ . February 1945 8 __________ 3,356, 254 3, 659, 220 3, 406, 672 3,457,249 2, 507,804 2, 541,176 2, 561,118 2,609, 505 2, 045, 720 2,046, 206 2,030, 351 2,057,409 462,084 494,970 530, 767 552,096 848, 450 832,492 118,044 1,101,161 845, 554 829, 327 831,432 847, 744 15, 958 16,883 16, 227 16, 312 Year and month February February February February February February 1 Includes employees in United States navy yards who are also included under shipbuilding (table 4) and employees on force-account construction who are also included under construction projects (table 5). 2 Covers War and N avy Departments, Maritime Commission, National Advisory Committee for Aero nautics, The Panama Canal, and the emergency war agencies. 3 Includes Alaska and the Panama Canal Zone. 4 Data incorporate revisions in War Department employment outside continental United States. 8Preliminary. Employment on Shipbuilding and Repair Employment on the Government’s shipbuilding program (including repair) decreased 46,000 in February 1945. All regions were affected, but the Pacific region was affected to the greatest extent (15,600) and the Great Lakes region to the smallest (600). In relative terms, the Inland region was affected most (13.2 percent) and the North Atlantic region least (0.7 percent). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 892 MONTHLY LABOR REVIEW— APRIL 1945 Employment in private shipyards” declined^270,600 in the year, February 1944 to February 1945, and 325,000 since the peak in November 1943. The steady decline in employment in private ship yards since the peak has been due to the gradual completion of contracts and to the fact that few new contracts have been let. The increase in repair work at the navy yards has tended to offset declines on new construction and has been responsible for the relative stability in navy yard employment since mid-1943. Data on employment and pay rolls on shipbuilding and repair projects are received monthly by the Bureau of Labor Statistics directly from all shipyards within continental United States. Em ployees in the navy yards are also included in data for the Federal executive service (tables 2 and 3). T a b l e 4 .— Total Employment and P ay Bolls in United States N avy Yards and Private Shipyards Within Continental United States, by Shipbuilding Region, February 1945 Employment (in thousands) Pay rolls (in thousands of dollars) Shipbuilding region February January February February January 1945 i 1945 1944 1945 i 1945 All regions, _____________ _____ ___ United States navy yards 2______ . _ Private shipyards__________________ 1,400. 0 327.3 1, 072. 7 1,446. 0 326.6 1,119.4 1, 673.4 330.1 1,343.3 398,932 94, 237 304,695 425,809 94,065 331,744 North Atlantic _____________ . . . . _ South A tla n tic ,_______ ______ _ Gulf__________________________________ P acific,, ___________________________ Great Lakes___ _ __ . Inland _ ______ ______________ _ , 512.6 123.8 177.5 490.7 50.1 45.3 516.1 128.8 191.9 506.3 50.7 52.2 608.5 151.7 228.7 562.0 64.0 58.5 155,183 32,907 50, 593 134, 604 13, 860 11,785 156,157 33, 769 55,893 151, 808 14, 023 14,159 February 1944 454,069 87,348 366,721 (3) (3) (3) (3) (3) (3) 1 Preliminary. 2 Includes all navy yards constructing or repairing ships, including the Curtis Bay (Md.) Coast Guard yard. 3 Break-down not available. Construction Employment Although site employment on construction projects financed wholly or partially from Federal funds showed no change in level between January and February 1945, increases occurred on the construction of additional facilities to existing plants for rocket and other ordnance manufacture and on electrification projects servicing these facilities. These increases were offset by decreases on other types of projects, resulting from seasonal factors and completion of war facilities. For non-Federal projects site employment showed a 20,000 increase on nonresidential building construction and a 2,200 increase on public utility construction. All other types of projects, except the miscellaneous group, showed declines during February 1945. Source oj data.—For construction projects financed wholly or partially from Federal funds, the Bureau of Labor Statistics receives monthly reports on employment and pay rolls at the construction site, directly from the contractors or from the Federal agency spon soring the project. Force-account employees hired directly by the Federal Government are also included in tables 2 and 3 under Federal executive service. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TREND OF EMPLOYMENT, EARNINGS, AND HOURS 893 Estimates of employment on non-Federal construction projects (except State roads) are obtained by converting the value of work started (compiled from reports on building permits issued, priorities granted, and from certain special reports) into monthly expenditures and employment by means of factors which have been developed from special studies and adjusted to current conditions. For State roads projects, data represent estimates of the Public Roads Adminis tration. T a b l e 5 . —Estimated Employment and P ay Rolls on Construction Within Continental United States, February 1945 Employment (in thou sands) Pay rolls (in thousands of dollars) Type of project Febru ary 1945 i N ew construction, to ta l2 ___________________ At the construction s i t e _____ _ ... ______ Federal projects 4________ __________ Airports_________________________ Buildings____ ________ ______ Residential________ ________ Nonresidontial8 _ _______ . Electrification____________________ R eclam ation______ ____________ River, harbor, and flood control___ Streets and highways __________ Water and sewer systems_________ Miscellaneous____________________ Non-Federal projects. . . . ___________ Buildings________________________ Residential__________________ Nonresidential_____________ . Farm__________________ _______ _____ _____ Public utilities____ Streets and highw ays. _ . . . . . . . . . State. ________ . _________ County and m unicipal... . . ._ Miscellaneous____ . ___ _ . . . . . Other A _________ ________ _________ Maintenance of State roads 7_________________ 662.3 550.9 165.9 7.0 111.5 10.8 100.7 .4 6.8 15.1 7.4 3.8 13.9 385.0 228.4 71.9 155.5 43 2 87.8 11.9 4.2 7.7 13.7 111.4 85.0 January Febru ary 1945 1944 Febru ary 1945 i 779. J 618.4 295.6 23.1 201.8 ' 35.8 166.0 .3 15.3 21.6 11.0 7.5 15.0 322.8 182. 5 116.4 66.1 38.8 74.6 15.6 6.6 9.0 11.3 160.7 79.7 (3) (3) 37,385 1.215 26, 541 2, 524 24,017 84 1,580 2.997 1,337 577 3,054 (*> 48, 878 (3) (3) (3) (3) (3) (3) (3) (3-, (3) (3) 651.8 537.6 165.9 7.9 107.4 11.2 96.2 .3 7.3 16.3 7.9 3.7 15.1 371.7 210.2 73.7 136.5 47.0 85.6 15.2 5.5 9.7 • 13.7 114.2 85.0 January Febru ary 1945 1944 (3) (3) 35,828 1,471 24, 231 2, 581 21,650 36 1,760 3,184 1, 379 574 3,193 (3) 48, 346 (3) (3) (3> (3) (3) (3) (3) (3) (3) (3) (3) (3) 58, 250 3, 688 41,548 7,163 34, 385 44 3,148 4,176 1,718 1,127 2, 801 (3) 35,953 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) 1 Preliminary. 2 Data are for all construction workers (contract and force-account) engaged on new construction, addi tions, and alterations, and on repair work of the type usually covered by building permits. (Force-account employees are workers hired directly by the owner and utilized as a separate work force to perform construc tion work of the type usually chargeable to capital account.) The construction figure included in the Bu reau’s nonagricultural employment series covers only employees of construction contractors and on Federal force-account, and excludes force-account workers of State and local governments, public utilities, and private firms. 3 Data not available. < Includes the following force-account employees, hired directly by the Federal Government, and their pay rolls: February 1944, 32,727, $6,308,242; January 1945,19,817, $3,964,793; February 1945,19,355, $3,729,396. These employees are also included under the Federal executive service (tables 2 and 3); all other workers were employed by contractors and subcontractors. 5 Includes the following employees and pay rolls for Defense Plant Corporation (RFC) projects: February 1944, 72,974, $17,234,891; January 1945, 12,368, $2,787,114; February 1945,10,064, $2,668,598. 6 Includes central office force of construction contractors, shop employees of special trades contractors, such as bench sheet-metal workers, etc., and site employees engaged on projects which, for security reasons, cannot be shown above. ’Data for other types of maintenance not available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 894 MONTHLY LABOR REVIEW— APRIL 194 5 D etailed R eports for In d u strial and Business Em ploym ent, January 1945 Nonagricultural Employment ESTIMATES of employment in nonagricultural establishments are shown in table 1. The estimates are based on reports of employers to the Bureau of Labor Statistics, on unemployment-compensation data made available by the Bureau of Employment Security of the Federal Security Agency, and on information supplied by other Government agencies, such as the Interstate Commerce Commission, Civil Service Commission, Bureau of the Census, and the Bureau of Old-Age and Survivors Insurance. The estimates include all wage and salaried workers in nonagricultural establishments but exclude military personnel, proprietors, self-employed persons, and domestic servants. Estimates of employees in nonagricultural establishments, by States, are published each month in a detailed report on employment and pay rolls. T able 1 . —Estimated Number of Employees in Nonagricultural Establishments, by Industry Division Estimated number of employees (in thousands) Industry division January 1945 Decem ber 1944 Novem ber 1944 Total estimated em ploym ent1_____ _____ _________________ 38,104 38,888 38,347 38,965 Manufacturing . ____ ________________ ______________ M in in g __ ___ _ Contract construction and Federal force-account construction... Transportation and public utilities_________________________ Trade_______________________ _____ ______________________ Finance, service, and miscellaneous______ ______________ ____ Federal, State and local government, excluding Federal forceaccount construction.. . . . ______ ______ _______________ 15, 557 804 563 3,735 7,088 4,463 15,630 806 594 3, 771 7,611 4,304 15,607 812 629 3, 771 7,299 4,315 16,825 858 764 3,664 6,919 4,128 5,894 6,172 5,914 5,807 January 1944 1 Estimates include all full- and part-time wage and salary workers in nonagricultural establishments who are employed during the pay period ending nearest the 15th of the month. Proprietors, self-employed persons, domestic servants, and personnel of the armed forces are excluded. Industrial and Business Employment Monthly reports on employment and pay rolls are available for 154 manufacturing industries and for 27 nonmanufacturing industries, including water transportation *and class I steam railroads. The reports for the first 2 of these groups—manufacturing and nonmanu facturing are based on sample surveys by the Bureau of Labor Statistics. The figures on water transportation are based on esti- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TREND OF EMPLOYMENT, EARNINGS, AND HOURS 895 m ates prepared by the M aritim e Commission, and those on Class I steam railroads are compiled by the Interstate Commerce Commission. The employment, pay-roll, hours, and earnings figures for manu facturing, mining, laundries, and cleaning and dyeing, cover wage earners only; but the figures for public utilities, brokerage, insurance, and hotels relate to all employees except corporation officers and execu tives, while for trade they relate to all employees except corporation officers, executives, and other employees whose duties are mainly supervisory. For crude-petroleum production they cover wage earn ers and clerical field force. The coverage of the reporting samples for the various nonmanufacturing industries ranges from about 25 percent for wholesale and retail trade, cleaning and dyeing, and insurance, to about 80 percent for public utilities and 90 percent for mining. The general manufacturing indexes are computed from reports sup plied by representative establishments in the 154 manufacturing in dustries surveyed. These reports cover more than 65 percent of the total wage earners in all manufacturing industries of the country and about 80 percent of the wage earners in the 154 industries covered. Data for both manufacturing and nonmanufacturing industries are based on reports of the number of employees and the amount of pay rolls for the period ending nearest the 15th of the month. INDEXES OF EMPLOYMENT AND PAY ROLLS Employment and pay-roll indexes, for both manufacturing and non manufacturing industries, for November and December 1944 and January 1945 and foi January 1944, are presented in tables 3 and 5. The figures relating to all manufacturing industries combined, to the durable- and nondurable-goods divisions, and to the major in dustry groups, have been adjusted to levels indicated by final data for 1942 and preliminary data for 1943 made available by the Bureau of Employment Security of the Federal Security Agency. The Bureau of Employment Security data referred to are (a) employment totals reported by employers under State unemployment-compensation programs, and (6) estimates of the number of employees not reported under the programs of some of these States, which do not cover small establishments. The latter estimates were obtained from tabulations prepared by the Bureau of Old-Age and Survivors Insurance, which obtains reports from all employers, regardless of size of establishment. N ot all industries in each m ajor industry group are represented in the tables since minor industries are not canvassed by the Bureau. Furtherm ore, no attem pt has been made to allocate among the sepa rate industries the adjustm ents to unemployment-compensation data. Hence, the estimates for individual industries within a group do not in general add to the total for th a t group. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 00 CO Oi EMPLOYMENT AND PAY ROLLS ALL MANUFACTURING INDUSTRIES in d e x 1 9 3 9 = 1 0 0 in d e x MONTHLY LABOR REVIEW— APRIL 1945 UNITED STA TE S DEPARTMENT OF LABOR BUREAU OF LABOR STATI ST ICS______________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WAGE EARNERS AND WAGE EARNER PAY ROLL 897 TREND OF EMPLOYMENT, EARNINGS, AND HOURS T a b l e 2 . —Estimated Number of Wage Earners in Manufacturing Industries Estimated number of wage earners (in thousands) Industry January 1945 All manufacturing 1---------- -------. ---------- — -------- 13,112 Durable goods1____ _______ _ . ------- ----- ------- -- 7, 796 5,316 Nondurable goods A - ------------------- -------------------- Decem ber 1944 Novem ber 1944 13,190 7,804 5,386 13,161 7,789 5,372 January 1944 14,338 8,765 5,573 Durable goods ___________ Iron and steel and their products 1----------- . . Blast furnaces, steel works, and rolling mills______ _____ Gray-iron and semisteel castings___ ______ _ _________ Malleable-iron castings... ______________ ____________ Steel castings------------- ------ ----------------------- -------Oast-iron pipe and fittings-------------- . . . . . . -------- . . . . Tin cans and other tinware__ _______________ ______ Wire drawn from purchased rods... _____ . ------ . . Wire work. . .'. ______ ___ ________________ ______ Cutlery and edge to o ls.. . . . ____ __________ . _____ Tools (except edge tools, machine tools, files, and saws)___ H ardware... . ------------------------ -------------- ---------Plumbers’ supplies... ______ __________ ___________ Stoves, oil burners, and heating equipment, not elsewhere c la ss ifie d ..____ .. .............................. Steam and hot-water heating apparatus and steam fittings. Stamped and enameled ware and galvanizing.. . ________ Fabricated structural and ornamental metalwork. ... Metal doors, sash, frames, molding, and trim------------------Bolts, nuts, washers, and rivets_________________________ Forgings, iron and steel. . . . . . . ______ ___ Wrought pipe, welded and heavy riveted___ . _________ Screw-machine products and wood screws___ . . . --------Steel barrels, kegs, and drums____ _ _. _ . ______ Firearms______ . . . . . . . _____ ____ ___ . . . . ____ 1,657 474.8 75.6 25.9 72.1 15.7 39.8 32.8 34.6 24.3 28.0 46.2 22.5 1,651 474.7 74.6 25.6 71.6 15.7 39.4 32.4 34.6 24.3 27.5 46.4 22.1 1,637 473.8 73.2 25.1 71.7 15.4 38.9 32.1 34.7 23.7 26.9 45.9 21.8 1,736 497.8 77.2 25.8 80.3 15.6 33.6 35.2 34.0 22.7 28.7 47.5 23.5 63.1 55.2 87.3 73.2 10.7 24.1 35.6 23.8 42.7 8.2 34.5 63.9 55.3 87.0 72.8 10.8 24.1 35.3 24.4 42.9 8.0 36.8 62.5 54.8 86.2 72.5 10.8 24.6 35.0 24.4 42.4 7.7 38.0 62.8 59.7 91.3 75.5 13.7 29.4 40.7 26.7 48.4 8.2 62.2 Electrical machinery 1___ _____________ ______________ Electrical equipment_______ .. ... ... . _____ Radios and phonographs. . ________________ ____ Communication equipment______________ _______ . ____ 698 429.3 118.1 104.9 702 431.8 119.2 105.8 707 433.0 121.4 107.2 765 465.2 131.2 118.8 Machinery, except electrical i ------------- ---------- ---------- -------Machinery and machine-shop products . _ . . . _____ ___ Engines and turbines__________________________________ Tractors______ _____________________ _______________ Agricultural machinery, excluding tractors . . . . . Machine tools____ . . . . . . . ---------------------- ---------Machine-tool accessories________________________ . . . Textile machinery______ _ . _ _ ______ . . . ______ _ Pumps and pumping equipment_______________________ Typewriters__ . . . ________________ .... . . . _____ Cash registers, adding and calculating machines. . . . _ . . . . Washington machines, wringers and driers, domestic_____ Sewing machines, domestic and industrial___ ____ _______ Refrigerators and refrigeration equipment______________ 1,163 451.8 68.1 57.5 44.6 74.3 65.0 26.7 73.8 12.8 30.6 12.0 11.0 52.6 1,159 449.6 67.8 57.3 44.6 74.3 65.0 27.3 73.9 12.6 30.8 11.7 10.7 52.6 1,149 445.5 67.5 56.6 44.0 74.0 64.5 27.3 73.6 12.3 31.1 11.4 10.5 51.8 1,284 498.6 70.7 59.1 44.1 88.9 78.3 28.5 83.6 12.4 35.6 14.8 10.0 59.0 Transportation equipment, except automobiles 1_____________ Locomotives. . . . . . _____________ . . . . . . . Cars, electric- and steam-railroad _. _________ ._ ___ Shipbuilding and boatbuilding. _____ ______ _____ __ Motorcycles, bicycles, and parts------------- . ____________ 2,082 34.0 58.0 1,020.6 9.4 2,096 35.5 57.6 1,034. 5 9.4 2,108 35.5 56.5 1,045. 7 9.2 2,560 36.4 60.5 1,249. 6 10.3 Automobiles 1______________________________________ ______ 682 677 669 766 Nonferrous metals and their products '. ___ _____________ Smelting and refining, primary, of nonferrous m etals.. Alloying and rolling and drawing of nonferrous metals, except aluminum------------------------------ -------- . . ____ Clocks and watches ... . ... _____ _____ Jewelry (precious metals) and jewelers’ findings__________ Silverware and plated ware . . . . . Lighting equipment___ . _ _______ _______________ _ Aluminum manufactures.._ ___________________________ Sheet-metal work, not elsewhere classified______ ________ 398 39.5 397 39.8 395 40.4 458 58.8 70.6 25.6 13.3 11.0 26.0 66.8 31.8 69.6 26.0 13.5 11.1 26.5 64. 5 32.4 69.0 25.9 13.4 11.1 26.3 64. 2 32.7 74.6 25.5 14.7 11. 5 26. 2 86.0 30.4 Lumber and timber basic products 1___ __________ : ______ Sawmills and logging camps__ _________________________ Planing and plywood m ills.. __________ . . . . . . _____ 450 219.1 70.4 452 220.5 70.5 459 226.1 69.4 487 235. 6 77.8 See footnote at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 898 MONTHLY LABOR REVIEW— APRIL 1945 T a b l e 2 . —Estimated Number of Wage Earners in Manufacturing Industries—Con. Estimated number of wage earners (in thousands) Industry January 1945 Decem ber 1944 Novem ber 1944 Furniture and finished lumber products 1...... ................................ Mattresses and bedsprings_______________ ____________ Furniture________________________ . ________________ Wooden boxes, other than cigar_______ ________________ Caskets and other morticians’ goods_______ _________ Wood preservings ______ . . . ___ _____ _______ _ ____ Wood, turned and shaped____ ________________________ 338 17.7 152.2 27.5 11.9 9.9 21.6 340 17.9 153.3 27.5 11.8 9.9 21.6 338 18.0 152.7 27.2 12.0 9.7 21.4 361 17.7 167.0 28.0 12.2 9.9 22.1 Stone, clay, and glass products 1__________ _ ______________ Glass and glassware____________________________________ Glass products made from purchased glass. _______ _____ Cement ... . . . . . . . . ___ Brick, tile, and terra cotta. ._ . . . _________ ____ Pottery and related products_____________________ ______ Gypsum ____ . . . ._ ______ . . . ___ ____ _____ Wallboard, plaster (except gypsum), and mineral wool___ L im e... . . . . . . . . . . Marble, granite, slate, and other products.. _________ . . . Abrasives ._ . _______ . . . . . . . . . . _____ ____ Asbestos produ cts_________________________________ . . 328 88.0 10.7 16.5 41.4 39.5 4.0 9.6 7. 7 13.8 21.3 20.3 330 87.8 10.7 17.2 41.8 40.0 3.9 9.7 7. 6 14.0 21.2 20.4 327 87.2 10.6 17.1 41.4 39.9 4.0 9.6 7. 7 13.9 21.1 19.9 348 91.9 10.8 18.9 45.8 40.9 4.6 10.7 8. 8 11.7 23.3 22.0 1,083 432. 7 13.5 88.8 1,092 433.7 13.6 89.8 1,081 428.8 13.5 89.2 1,162 459.3 14.7 93.4 146.6 100.7 10.3 28.5 34.4 148.3 102.4 10.4 29.4 34.6 146.8 102.0 10.2 29.2 34.4 158.2 110.9 11.4 30.7 38.7 59.9 20.3 9.4 3.2 15.1 60.3 20.4 9.5 3.3 15.4 59.3 20.3 9.4 3.3 15.1 65.3 20.8 9.8 3.5 16.6 Apparel and other finished textile products 1___________ _____ M en’s clothing, not elsewrhere classified _ ______ _____ Shirts, collars, and nightwear. _____________ ___ ____ Underwear and neckwear, men’s .. ________ 1 ___ ____ Work shirts ____ . ___ . . . Women’s clothing, not elsewhere classified____ __________ Corsets and allied g a rm en ts_________________ . ______ M illinery . . Handkerchiefs ____ __ _____ ______________ ______ Curtains, draperies, and bedspreads____________ _______ Housefurnishings, other than curtains, e tc ... ___________ Textile bags________________ . . . ___________________ 837 201.2 49.6 11.9 14.1 214.6 14.6 19.4 2.6 10.9 11.5 14.0 851 204.5 51.0 12.1 14.3 216.7 15.1 19.0 2.8 12.8 11.9 14.0 854 205.7 51.1 12.2 14.5 217.5 15.0 18.4 2.8 13.0 11.8 13.9 906 216.5 54.8 12.3 16.9 228.7 16.1 19.3 3.4 15.0 12.7 15.4 Leather and leather products 1_____ . ______ ____ . . . . . . _ ___ ______ ____________ L eather.. . . . . . . . Boot and shoe cut stock and findings_________ . . . ____ Boots and shoes_____ __ ____ ___________ . . . Leather gloves and m ittens. . . . _ . _______ _ . . . . _ Trunks and suitcases___________________ _______________ 311 39.5 16.0 173.1 12.3 12.9 312 39.6 16.2 173.4 12.6 12.9 310 39.2 16.2 172.3 12.8 13.0 315 40.8 16.4 175. 0 13.4 11.8 Food 1__ _ _________ ... _______________ ___ Slaughtering and meat packing_____________ . . . ______ Butter_________________ __ . . . _______ _______ ___ Condensed and evaporated m ilk. ____ _ _______ _____ Icecream ____ __________ _ __ _____. . . ______ ____ Flour_______ . . . . __________ Feeds, prepared. _ _________ _ _____ _______________ Cereal preparations____________________________________ Baking_____ __ .... ._ __________________ Sugar refining, cane___________________________________ Sugar, beet_____ _____________________________________ Confectionery_______ ________________________________ Beverages, nonalcoholic___________________ _________ _ Malt liquors____ ____ . . __________ _________ Canning and preserving____ _____ ______________________ 1,013 154.7 20.7 13.0 13.3 29.5 21.3 8.9 257.0 15.3 5.2 59.1 25.8 49.6 105.3 1,054 155.4 20.8 12.8 13.7 29.3 20.6 8.6 264.8 15.2 15.6 62.4 26.1 51.1 113.8 1,074 149.1 21.1 13.0 13.9 28.9 20.4 8.4 264.8 15.0 21.8 60.7 26.5 51.3 134.3 1,021 172.3 19.6 12.1 13.0 30.0 21.8 9.6 258.6 14.2 5.4 59.0 25.9 47.1 94.8 January 1944 Durable goods—Continued Nondurable goods Textile-mill products and other fiber manufactures 1__________ Cotton manufactures except small wares_________________ ___ Cotton smallwares____________ _______ ______ Silk and rayon goods.. . _____ _______ ______ ___ Woolen and worsted manufactures, except dyeing and finishing.......... . _ __ __ ___ ._ ___ . . H o siery ... . . . ________________________________ _____ Knitted cloth_____ _________ __ _____________ . . . __ Knitted outerwear and knitted gloves____________ _____ Knitted underwear______ ______ _____ Dyeing and finishing textiles, including woolen and worsted________ . . . ________ _ __________ . __ Carpets and rugs, wool_________________________________ Hats, fur-felt_______________ ________________ _____ Jute goods, except felts___ __________ . . . ______________ Cordage and tw in e.. . . . . . . . __________ _____ . . . . . . . . See footnote at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TREND OF EMPLOYMENT, EARNINGS, AND HOURS T a b l e 2 . —Estimated 899 Number of Wage Earners in Manufacturing Industries—Con. Estimated number of wage earners (in thousands) inuusiry January 1945 Decem ber 1944 Novem ber 1944 Tobacco manufactures 1----------------------------- -----------------------Cigarettes._____ _____________________________ ______ Cigars__________________ __________________ _________ Tobacco (chewing and smoking) and snuff------ . . . ______ 82 35.2 33.3 8.6 85 36.4 34.4 8.6 84 35.8 34.6 8.4 88 35.7 37.9 8.7 Paper and allied products 1_______________________________ Paper and pulp_____________________________ ______ Paper goods, other____________________ _____ _____ _____ Envelopes____________________ ____________ _____ Paper bags--------------- ------------------------ --------- ------------Paper boxes___________________________________________ 309 147.4 44.7 9.5 13. 2 77.7 312 147.2 45.6 9.7 13.3 79.1 308 145.0 44.8 9.7 13.2 78.8 321 149.4 47.4 10.2 13.2 84.0 Printing, publishing, and allied industries >_ ____ _________ Newspapers and periodicals... ---------- . . . -------------Printing, book and job. ______ . -------------------------------L ithographing________ __________________ . . . . . . . . . Bookbinding. . . . ______ . . . --------------- ---------- -------- 328 109.6 131.6 24.3 27.9 335 111.3 135.5 24.7 28.3 333 110.7 134.5 24.4 27.8 338 110.5 137.0 24.9 30.1 Chemicals and allied products 1____________________________ Paints, varnishes, and colors. _ ______ . . . . . . . . . . . . . . Drugs, medicines, and insecticides----------- -------------------Perfumes and cosmetics. . ---------. . . ------ -- . . . ---Soap __ __________ __________ Rayon and allied p r o d u c t s .._________________ . . . . . . . Chemicals, not elsewhere classified____________ _______ Explosives and safety fuses_____________________________ Compressed and liquefied gases--------- ----------------- ---------. _________ Ammunition, small-arms... ________ . . . Fireworks_______ . _______ . . . ---------- -------------------Cottonseed oil . . _______ ____ ________ _______ . . Fertilizers---- ----------------------- . . . ----------. . 628 29.7 49.2 12.3 13.6 54.1 115.2 95.1 5.9 61.0 25.9 19.7 23.1 621 30.1 49.8 12.7 13. 6 54.2 115.5 93.5 5.9 55.1 26.9 20.4 21.5 607 29.8 49.6 12.8 13. 5 53.7 115.2 90.3 5.6 50.4 26.6 21. 1 20.0 665 29.6 50.2 11.7 13 Ft 52.1 122.3 79.8 ' 6.1 96.3 28.6 20.4 23.5 Products of petroleum and c oa l1--------- --------------------------Petroleum refining. . . _. _______ ______ _______ _____ Coke and byproducts__________________________________ Paving materials________________________ . . . ---------- . . Roofing materials_____________________________ ______ 133 91.5 22.2 1.6 9.5 133 90.8 22.0 1.6 9.6 132 90.3 22.2 1.7 9.6 125 82.8 23.3 1.4 9.8 Rubber products >. ____________________ — -------------------Rubber tires and inner tubes . . . ... .... Rubber boots and shoes. _ ____________________________ Rubber goods, other------ ------------------------------------- ------- 196 95.3 17.8 71.3 194 93.0 18.3 71.4 192 92.8 18.3 70.3 204 94.2 21.3 76.7 Miscellaneous industries 1________________________________ . Instruments (professional and scientific), and fire-control equipment____________________ _________ . ----------Photographic apparatus---------- ----------- -----------------------Optical instruments and ophthalmic goods. . ----------------Pianos, organs, and p a r ts --------------------------------- . . . . Games, toys, and dolls_________________ ____ __________ B uttons--------------------- ---------------------------- ------------Fire extinguishers.. ___________ ________ . ------ 396 397 397 January 1944 Nondurable goods—Continued 58.8 28.0 23.6 7.3 16.5 9.2 4.9 59.0 28.0 23.5 7.1 16.8 8.8 5.0 59.2 27.9 23.4 7. 1 16.9 9.4 5.1 428 68.1 30.0 26.6 10.0 15.9 10.3 7.4 i Estimates for the major industry groups have been adjusted to levels indicated by final 1942 and prelim inary 1943 data made available by the Bureau of Employment Security of the Federal Security Agency. These data are not comparable with data published in mimeographed releases dated prior to February 1945 or the March 1945 issue of the M onthly Labor Review. Comparable data from January 1939 are available upon request. Estimates for individual industries have been adjusted to levels indicated by the 1939 Census of Manufactures, but not to Federal Security Agency data. For this reason, together with the fact that this Bureau has not prepared estimates for certain industries, the sum of the individual industry esti mates will not agree with totals shown for the major industry groups. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 900 MONTHLY LABOR REVIEW— APRIL 194 5 T a b l e 3 . —Indexes"of Wage-Earner Employment and of Wage-Earner Pay Roll in Manufacturing Industries [1939 average=100J Wage-earner employ ment Wage-earner pay roll Industry Jan. 1945 Dec. N ov. 1944 1944 Jan. 1944 Jan. 1945 Dec. Nov. 1944 1944 Jan. 1944 All manufacturing 1___ _____________________ 160. 161. 0 160./ 175. 330.3 331.8 327.8 345.1 Durable goods 1____ _________________ _____ 215. 216.] 215.7 242.'- 454.2 455.8 450.3 489.4 Nondurable goods 1___________ ... 116. t 117.6 117.3 121.7 209.2 210.5 207. 204.0 Durable goods Iron and steel and their products 1_____________ . Blast furnaces, steel works, and rolling mills _ ... Gray-iron and semisteel castings____ Malleable-iron castings._ •_____ . . Steel castings___ _______ ______ Cast-iron pipe and fittings___ Tin cans and other tinware_______ . . . . W ire drawn from purchased rods_________ Wirework____ _____ __________ _. . . Cutlery and edge tools____________ _____ ___ Tools (except edge tools, machine tools, files, and saws)______________ ________ Hardware____ __________________ Plumbers’ supplies___ ... _ Stoves, oil burners, and heating equipment, not elsewhere classified. _____ Steam and hot-water heating apparatus and steam fittin g s___. . . . . . ____ Stamped and enameled ware and galvanizing Fabricated structural and ornamental metal work __________ . . . Metal doors, sash, frames, molding, and trim Bolts, nuts, washers, and rivets Forgings, iron and steel.. . . Wrought pipe, welded and heavy riveted _ Screw-machine products and wood screws Steel barrels, kegs, and drum s._____ Firearms___________ ____ 206.1 138.2 168. 7 231.5 284.5 252.2 135.5 689.1 205.0 139.2 168.5 229.5 292.1 253.5 132.5 736.2 204.2 140.0 171.6 227.7 291.4 250.8 126.4 760.2 212.6 176.5 205.6 264.6 318.8 286.3 135.3 1244. 2 Electrical machinery 1______ Electrical equipment___ Radios and phonographs______ Communication equipment.. 269.2 237.5 271.3 326.5 271.1 238.9 274.1 329.5 272.9 239.5 278.9 333.7 295.2 257.3 301.5 370.0 504.8 504.3 454.4 452.0 534.4 537.3 541.3 ■548.1 498.7 443.8 541.7 549.5 521.1 464.8 569.7 562.9 Machinery, except electrical1__ Machinery and machine-shop products.. Engines and turbines _____ Tractors___________ ._ Agricultural machinery, excluding tractors Machine tools. Machine-tool accessories.. . Textile machinery. ._ Pumps and pumping equipment_________ Typewriters.. ____ _. Cash registers, adding and calculating machines Washing machines, wringers and driers, domestic______ . . . Sewing machines, domestic and industrial Refrigerators and refrigeration equipment 220.0 223. 3 365.0 183.7 160.4 202.8 258.3 122.0 304.5 79.1 155.6 219.2 222.2 363.2 183.3 160.4 202.8 258.3 124.8 304.7 77.9 156.3 217.5 220.2 362.1 180.9 158.1 202.2 256.3 124.4 303.8 75.8 158.2 243.1 246.4 378.9 188.8 158.5 242.8 311.3 130.2 345.0 76. 2 180.8 421.9 421.3 790.2 295.0 322.1 378.6 458.3 235.1 648.7 162.0 305.1 409.0 408.4 766.4 289.7 311.2 363.2 441.3 233.3 626.5 154.7 305.8 456.5 454.6 820.1 297,7 309.4 419.8 535.1 235.8 744.4 155.9 371.0 Transportation equipment, except automobiles i Locomotives___ _ Cars, electric- and steam-railroad Shipbuilding and boatbuilding . Motorcycles, bicyles and parts... 167.1 122. 129. 143. 239.7 95.: 125.2 149.' 113.! 157. ‘ 166.5 122.2 127.6 142.1 238. ] 95.: 123.! 147.6 113.7 157.3 165.2 122. C 125.3 138.9 238.: 93.2 122.4 145.9 114.3 153.8 175. 128.2 132. 142.8 266.7 94.3 105.8 160. 4 111.9 147.3 316.3 224.4 265. 305.5 457.3 193.5 219.3 260.8 236.4 336.6 316.7 225.5 261.7 305.6 454.9 192.1 215.6 257.1 235.8 333.0 308.8 221.9 251.7 291.9 448.6 187.9 205.4 251.2 229.7 320.4 320.9 223.6 257.8 291.2 488.1 173.4 179.5 267.2 226.6 301.9 180.5 177.2 175.4 187.2 353. 7 347. 1 332.0 351.1 129.5 130.3 128.9 133.2 273.6 275.! 266.4 270.3 91.4 89.8 88.4 95.4 173.4 168.0 161. 7 164.8 136.8 138.6 135. 5 136.1 267.2 269.4 260.9 252.8 182.3 182.6 180.8 197.0 356.1 353.6 351.0 350.3 157.2 156.6 155.2 164.3 336.7 332.3 313.4 322.0 395.1 266.0 329.2 477.0 571. 7 509.2 261.6 1509.2 401.7 274.5 333.4 467.3 583.4 498.7 270.4 1659.2 422.0 419.4 807.6 294.4 322.4 381.0 452.3 240.9 650.2 153.8 298.4 397.4 411.1 266.7 325.8 335.1 395.0 459.2 531.6 568.4 607.4 488.9 563.9 247.8 264.8 1758. 4 2896. 5 160.9 156.3 153.0 197.8 290. 7 298.0 268.3 343.2 139.8 136.7 134. 0 127. 7 300.3 289.4 282.3 274.0 149.7 149.6 147.3 167.9 267.2 287.3 265.6 306.6 1311.7 525.0 236.6 1473. 9 135.4 1320. 7 1327.8 548.7 549.0 234.7 230.2 1494.0 1510. 2 134.7 131.7 1613.1 2852. 5 2893. 7 2905. 9 3221.2 562 8 1169.0 1321.8 1256. 4 1289.2 246.5 486.1 510.7 467.7 480.2 1804.6 3311.9 3435.6 3497. 8 3599.4 148.2 258.2 254.7 241.7 273.3 Automobiles 1.......... 169.4 168.3 166.3 190.4 319.3 312.6 307.6 358.0 Nonferrous metals and their products i___ Smelting and refining, primary, of nonferrous metals_________ Alloying and roiling and drawing of nonferrous metals, except alum inum ... Clocks and watches.. Jewelry (precious metals) and jewelers’ findings Silverware and plated ware Lighting equipment Aluminum manufactures Sheet-metal work, not elsewhere classified" 173.6 173.1 172.1 199.6 337.7 336.2 326.9 373. 3 See footnote at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 142.9 143.9 146.3 212.8 264.2 263.5 266.8 377.8 181.9 126.4 92. 1 90.8 127.2 283.9 169.5 179.2 128.1 93.5 91.7 129.6 274.1 172.8 177.8 127.8 92.8 91.4 128.3 272.5 174.2 192.1 125.5 102.0 94.5 128.0 365.1 162.1 354.5 270.3 160.5 163.0 235.9 529.6 334.0 347.8 276. 9 168.7 168.9 238.6 512.4 341.0 333. 7 272.8 159.5 164.6 229.4 497.0 337.8 359.1 249. 6 160.2 169.0 226.3 657.0 308.6 TREND OF EMPLOYMENT, EARNINGS, AND HOURS 901 T able 3.—Indexes of Wage-Earner Employment and of Wage-Earner Pay Roll in Manufacturing Industries—Continued Wage-earner employ ment Wage-earner pay roll Industry Jan. 1945 Dec. Nov. 1944 1944 Jan. 1944 Jan. 1945 Dec. Nov. 1944 1944 Jan. 1944 Durable poods-—Continued Lumber and timber basic products 1 _____________ 107.1 107.6 109.2 115.8 192.9 193.7 199.3 196.2 76.1 76.6 78.5 81.8 137.7 138.3 143.8 139.0 - Sawmills and logging camps___________ ______ Planing and plywood m ills,. _ . . _ ------------- 96.9 97.0 95.6 107.0 167.4 167.9 167.3 174.0 193.6 178.0 179.9 211.3 172.0 187.5 178.9 194.0 180.2 179.8 219.6 169.6 185.6 178.2 190.7 174.0 177.2 215.0 163.1 185.7 176.4 189.1 158.0 181.3 197.6 162.5 157.6 171.2 188.6 201.8 185.3 107.3 118.0 184.5 142.6 192.2 203.8 186.5 114.1 118.9 193.6 140.4 189.5 200.8 179.6 116.2 119.8 190.9 143.0 189.8 207.4 170.2 110.2 119.7 176.7 160.5 118.5 119.3 118.5 132.0 218.6 81.0 80.9 81.4 93.4 153. 4 74.4 75.4 75.1 63.1 109.0 275.2 273.6 272. 5 301.5 482.8 127.7 128.4 125.6 138.2 264.9 217.8 156.0 114.2 490.6 266.0 217.2 157.7 113.9 473.6 255.0 233.0 168.9 87.1 492. 2 267.7 Textile-mill products and other fiber manufactures L Cotton manufactures, except smallwares_______ ______ Cotton smallwares ____ _____ . . Silk and rayon goods___ _ . . . . --------------Woolen and worsted manufactures, except dyeing and finishing_________ _ ______________ Hosiery___ ___________ . . . . . ---------------Knitted c lo t h ____ . . . ______ Knitted outerwear and knitted gloves_________ Knitted underwear. ___________ ___________ - Dyeing and finishing textiles, including woolen and w orsted... . . ---------------------- ---------Carpets and rugs, w ool.. . ._ ______________ Hats, fur-felt________ _________ ... . Jute goods, except felts_________________ _____ Cordage and tw ine___ . . . . ___________ 94.7 95.5 94.5 101.6 173.9 109. 3 109. 5 108.3 116.0 210.3 101.1 102.4 101.4 110.2 193.7 74.1 75.0 74.4 78.0 138.4 176.6 212.3 190.4 142.3 172.2 206.8 180.0 139.4 171.7 199.1 190.6 135.6 98.3 99.4 98.4 63.3 64.4 64.1 94.2 95.0 93.6 101. 2 104.4 103. 7 89.2 89.9 89.3 Apparel and other finished textile products 1_______ M en’s clothing, not elsewhere classified____ . Shirts, collars, and nightwear-------------------------Underwear and neckwear, men’s ______________ Work shirts .... . . ____ ____ Women’s clothing, not elsewhere classified-------Corsets and allied garments-------- M illinery__ . . . . ____________ . . Handkerchiefs-------__ . . ------------ . . . Curtains, draperies, and bedspreads___________ Housefurnishings, other than curtains, etc______ Textile bags____ _ __________ . . ------- -- 106.0 92.0 70.4 73.8 104.6 79.0 77.8 79.6 54.5 64.5 108.7 116.5 Leather and leather products L . . . . . . -------------Leather. ______________________________ ____ Boot and shoe cut stock and findings__________ Boots and shoes.. . _________ _. --------------Leather gloves and mittens________ _________ Trunks and suitcases________________________ Furniture and finished lumber products 1__________ Mattresses and bedsprings-----------------------------Furniture____________________ ______ _____ Wooden boxes, other than cigar____ _______ Caskets and other morticians’ goods. _________ Wood preserving_________ _ . . . . ----Wood, turned and shaped____ ___________ . . 103.0 103.6 103.1 109.9 96.4 97.8 98.0 96.6 95.6 96.3 95.9 104.9 108.3 108.4 107.3 110.3 95.6 94.7 96.0 98.3 87.9 87.8 85.9 87.7 98.1 98.4 97.5 100.5 Stone, clay, and glass products L . . . ______ _____ Glass and glassware.. . . ______________ . Glass products made from purchased glass____ Cement_________________ __________________ Brick, tile, and terra cotta . . . . . _________ Pottery and related products___ . _________ Gypsum ____________________________________ Wallboard, plaster (except gypsum), and minera lw o o l.. . ___________ . . . . _________ Lim e______________ . -. . . . . ____ ___ Marble, granite, slate, and other products______ Abrasives_______ . . . Asbestos products________ . . . ----------------- 111.6 126.1 106.7 69.1 73.0 119.3 81.2 112.3 125.8 106.9 72.1 73.6 120.9 80.0 111.4 124.9 106.3 71.7 72.9 120.5 80.6 118.6 131.6 108.0 79.2 80.7 123.5 92.5 Nondurable goods See fo o tn o te a t end o f tab le. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 106.0 69.7 104.5 109.2 100.3 193.5 102. 9 169.4 184.9 164.7 194.9 105.9 170.6 193.0 166.8 189.4 104.7 163.8 193.2 165.6 197.2 106.6 174.7 189.6 174.8 89.6 90. 1 88.7 97.7 79.4 79.7 79.4 81.3 64.4 65. 1 64.5 67.2 90.4 92.5 92.4 98.5 125.1 127.4 124.9 136.9 152.2 138.6 125.3 179.3 235.3 156.5 140.6 127.6 184.2 244.1 150.6 136.6 124.9 182.6 235.2 154. 8 135.3 122. 2 182.0 240.0 114.8 99.0 77.7 76.3 125.4 84.2 85.5 79.5 70.5 88.4 119.9 128.2 195.2 165.3 126.1 147.6 204. 1 149.1 135.5 131.0 100. 6 129. 2 204.0 204.2 191.8 164.5 128.0 150.6 204.4 143. 5" 138.9 113.2 107.0 150;7 215. 2 202.0 192.3 169.2 128.7 152.4 210.5 141.1 141.4 104.6 110.6 154.3 212.8 198.9 187.9 156. 5 129.1 140.0 223.1 141.4 139.9 113.8 115.1 163.8 219. 8 202. 2 89.5 89.8 89.4 90.8 162. 5 83.7 83.8 82.9 86.4 147.0 84.8 85.8 85.7 87.1 146.8 79.4 79.5 79.0 80.3 147. 9 123.1 125.6 127.7 134.0 208.9 154.8 154.7 156.1 141.9 252.5 160.8 145.5 146. 1 145.7 209.0 261.8 157.4 143.3 141.6 141.9 222.6 249.7 149.9 139.9 136.8 134.0 222.5 221.0 107.8 93.5 72.3 75.0 106.3 79.8 80.4 78.0 57.7 75.7 111.9 116.6 108.1 94.1 72.5 75.6 107.8 80.1 80.1 75.5 58.2 76.7 111.2 116.1 902 MONTHLY LABOR REVIEW— APRIL 1945 T able 3.—Indexes of Wage-Earner Employment and of Wage-Earner Pay Roll in Manufacturing Industries—Continued Wage-earner employ ment Wage-earner pay roll Industry Jan. 1945 Dec. Nov. 1944 1944 Jan. 1944 Jan. 1945 Dec. Nov. 1944 1944 Jan. 1944 Food L_______ _______ _______ ___________________ Slaughtering and meat packing_______________ Butter___________ __________ _____ ________ Condensed and evaporated milk___ Ice cream______ ___________________________ Flour______ . _____________ ____________ Feeds, prepared_____________________ . _ Cereal preparations______________ . . _____. __ Baking________ __ _____ _ ________________ Sugar refining, c a n e ___ . _________ __ _ __ Sugar, beet_. . _____________________________ Confectionery.. _ ___________ ______ ____ Beverages, nonalcoholic. _______ __________ M alt liquors . . . . . _ ________________ Canning and preserving________ ____________ 118.6 128.4 115.2 134.2 84.5 119. 2 138.1 119.6 111.4 108.1 49.6 118.7 121.2 137.4 78.3 123.3 129.0 116.0 132.1 87.1 118.3 133.7 115.9 114.8 107.4 149.5 125.5 122.7 141.5 84.6 119.5 143.0 109.3 124.5 82.8 120.9 141.2 128.9 112.1 100.3 51.5 118.7 122.0 130.5 70.5 195.8 221.9 180.8 219.7 122.0 206.0 231.3 215.9 168.2 179.3 66.6 198.6 157.3 194.0 153.9 205.0 227.6 181.4 213.1 125.8 198.8 229.4 210.3 176.5 184.0 189.4 210.8 162.7 204.8 162.9 203.8 211.4 180.1 211.4 126.5 195.1 219.3 197.3 174.5 164.4 298.6 205.1 166.2 204.1 188.7 191.5 243.2 162.9 188.7 111.5 200.0 230.2 224.5 160.6 156.4 75.9 187.9 151.9 178.2 131.8 Tobacco manufactures 1___________________ ____ Cigarettes__________ ____ ___________________ C ig a r s ..______ _____________ ____________ Tobacco (chewing and smoking) and snufl_____ 88.1 90.7 90.1 94.1 166.4 177.8 128.3 132.7 130.6 130.1 211.1 222.8 65.3 67.5 68.0 74.5 134.2 147.2 93.9 94.1 91.9 94.9 159.0 162.7 172.7 215.6 144.0 155.9 158.1 190.1 138.1 138.4 Paper and allied products1___ ___________________ Paper and pulp_______________________ ______ Paper goods, other ______ ___________________ Envelopes___________________________________ Paper bags_________ ___________________ _ _ Paper boxes__________ __________________ 116.5 107.2 118.9 109.7 118.8 112.4 194.0 182.0 195.1 171.9 205.8 183.3 188.6 173.2 193.6 175.1 196.6 184.6 Nondurable goods—Continued 117.4 107.1 121.1 111.4 120.3 114.3 125.7 123.7 117.6 134.3 88.8 116.8 132.3 113.3 114.8 106.2 209.3 122.0 124.7 142.2 99.9 116.0 105.5 119.0 111.4 119.1 113.9 121.2 108.7 126.0 117.7 119.5 121.4 195.6 184.4 197.6 175.5 206.3 181.9 197.6 186.0 197.8 178.0 211.6 185.0 Printing, publishing, and allied industries 1__ 100.1 102.3 101.4 103.2 141.2 144.1 142.2 134.6 Newspapers and periodicals___________________ 92.3 93.8 93.3 93.1 118.4 121.5 120.8 112.3 Printing, book and job________ _____________ 104.2 107.2 106.4 108.4 156.8 159.6 156.8 147.6 Lithographing____ _ ________ ____________ 93.6 95.1 93.7 95.7 133.5 136.2 136.5 130.3 Bookbinding____ _______________________ ____ 108.1 109.7 107.7 116.7 187.7 189.0 182.3 190.1 Chemicals and allied products1____ Paints, varnishes, and colors_________________ Drugs, medicines, and insecticides_____________ Perfumes and cosmetics_________________ . Soap. ________________ _ ____ Rayon and allied products ____ _______ _ Chemicals, not elsewhere classified__ Explosives and safety fuses___________ ____ _ Compressed and liquefied g a s e s ..._____ Ammunition, small-arms________________ . Fireworks_____ ______ _ Cottonseed oil____________ _____ _ . Fertilizers...... .......................... ............. 217.8 215.4 105.4 106.8 179.6 181.6 118.5 122.2 99.9 100.3 112.1 112.3 165.5 166.0 1311.3 1288.5 149.1 149.4 1431. 4 1291.8 2234. 6 2319.0 129.6 134.0 122.9 114.4 210.6 230.7 106.0 105.3 181.0 183.0 123.2 112.6 99.4 99.6 111.3 108.0 165.5 175.8 1244.3 1100.0 142.6 153.7 1182. 6 2257.9 2294.0 2468.3 139.1 134.4 106.5 125.1 384.2 377.8 366.2 169.4 170.7 167.0 271.8 272.1 269.7 163.8 172.3 182.6 169.4 172.9 168.2 182.0 180.1 179.0 293.2 291.1 289.2 1999.1 1969. 5 1865.1 269.6 267.8 254.2 2914.7 2632.5 2370.7 6280.7 6444.3 6231.8 274.9 289.3 300.3 269.1 249.8 233.6 395.7 159.5 267.6 150.3 159.8 168.6 297.7 1683.7 264.1 4509.2 6771.1 251.5 248.3 Products of petroleum and coal l___ Petroleum refining __________ . Coke and-byproducts________ Paving materials___ _____________ _ Roofing materials______________________ 126.0 125.6 102.4 63.8 117.8 125.3 124.7 101.2 66.8 119.5 125.1 124.0 102.1 69.5 119.7 118.3 113.6 107.6 55.5 121.5 220.1 213.4 189.0 131.6 211.5 220.4 214.9 182.0 141.5 217.5 219.2 214.2 179.0 137.6 217.6 196.7 185.0 185.8 95.0 210.3 Rubber products 1_______________ Rubber tires and inner tubes...... ............ Rubber boots and shoes________ . Rubber goods, other___________________ 161.8 176.1 320.2 137.8 160.3 171.7 123.8 137.9 159.1 171.4 123.3 135.9 168.6 174.1 143.6 148.1 318.1 338.8 220.1 262.2 303.6 316.1 228.5 256.7 289.9 298.2 219.6 250.6 291.0 288.9 248.9 260.1 Miscellaneous industries1____________ Instruments (professional and scientific), and fire-control equipment____ Photographic apparatus________________ Optical instruments and ophthalmic goods_____ Pianos, organs, and parts__________________ Games, toys, and dolls. _______________ B uttons_________ . Fire extinguishers____________ . 531.6 162.1 203.2 95.5 88.4 84.3 496.8 161.8 162.2 162.4 175.0 322.4 319.7 314.5 325.5 533.5 161.9 202.5 92.7 90.1 79.9 503.6 535.1 161.5 201.1 93.1 90.6 85.5 516.3 616.2 173.6 229.3 131.1 85.3 94.3 741.6 1057.1 277.5 353.5 187.3 182.7 178.0 1028.5 1058.2 258.9 346.0 170.1 188.6 163.4 1045.9 1013.9 271.2 346.6 177.4 186.7 166.5 1047.1 1138.4 277.3 373.3 246.2 156.9 178.0 1431.1 'Indexes for the major industry groups have been adjusted to levels indicated by final 1942 and preliminary 1943 data made available by the Bureau of Employment Security of the Federal Security Agency. These indexes are not comparable with those published in mimeographed releases dated prior to February 1945 or the March 1945 issue of the M onthly Labor Review. Comparable indexes from January 1939 are avail able upon request. Indexes for individual industries have been adjusted to levels indicated by the 1939 Census of Manufactures, but not to Federal Security Agency data. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 903 TREND OF EMPLOYMENT, EARNINGS, AND HOURS T able 4.—Estimated Number of Wage Earners in Selected Nonmanufacturing Industries Estimated number of wage earners (in thousands) Industry January 1945 Mining: Anthracite____________________________________ Bituminous coal_________ ______ _____ _____ M etal____ . . . _______ ____________________ Iron____________ ___________ _____________ _______________ Copper__________________ Lead and zinc________ ______________ ___ Gold and silver____________________________ Miscellaneous____________________ - ___ T elephone1.- __________________________ __ ______ Telegraph 2__________ . . . ____ ______ __ Electric light and pow er3______________ ____ ________ Street railways and busses3____ ___ Hotels (year-round)3. . __ . ______________ Power laundries__ . . . ___________________ _____ Cleaning and dyeing. . . . . . . _______________ ____ Class I steam railroads 4____ ___ _ . . . - ________ Water transportation 4________ _ . ------------------------ December 1944 November 1944 65.6 338 69.2 23.8 22.2 14.8 5.5 2.9 403 45.8 200 228 356 243 77.3 1,400 144 / 66.1 340 69.9 24.7 22.2 14.6 5.5 2.9 404 45.8 201 228 356 243 79.0 1,408 140 65.4 338 69.0 23.3 22.3 15.0 5.5 2.9 401 45.2 200 228 355 240 75.6 1,391 143 January 1944 69.1 370 89.4 28.9 30.6 18.7 6.4 4.8 406 46.3 205 230 350 248 75.1 1,357 104 1 Data from January 1937 are available upon request. Salaried personnel are included. 2 Data from January 1937 are available upon request. Excludes messengers, and approximately 6,000 employees of general and divisional headquarters, and of cable companies. Salaried personnel are included. 3 Data include salaried personnel. 4 Source: Interstate Commerce Commission. Data include salaried personnel. 4 Based on estimates prepared by the U. S. Maritime Commission covering employment on active deepsea American-flag steam and motor merchant vessels of 1,000 gross tons and over. Excludes vessels under bareboat charter to, or owned by, the Army or N avy. T able 5 .—Indexes of Employment and Pay Rolls in Selected Nonmanufacturing Industries [1939 average =100] Employment indexes Industry Mining: Anthracite___ ____________ - ___ Bituminous coal ____ . .... Metal _ * _ _______ Iron_________ _________ _ _ ____ Copper............... .................. Lead and zinc. - . - . . _____ Gold and silver________ __________ M iscellaneous . _______________ Quarrying and nonmetallic________ _____ Crude-petroleum production >_ . - _____ Public utilities: T elep hone2. . ____. . . . . . . . _______ Telegraph2. _____ . ___ ______ Electric light and power_____ ____ ____ Street railways and busses_____________ Wholesale trade___ _ . . . . . . _______ Retail trade ________ __________ _ Food . _ ------General merchandise___ . . . ______ Apparel. . . ____ __ __ Furniture and housefurnishings .. __ Automotive __ ____ Lumber and building material_________ Hotels (year-round)3. . . _______ _____ ____ Power laun dries_______ ___________ ____ Cleaning and dyeing . ____ ___ Class I steam railroads 4_ ________ _______ Water transportation 8 . . . . . _____ . . Pay-roll indexes Jan. 1945 Dec. 1944 Nov. 1944 Jan. 1944 Jan. 1945 Dec. 1944 Nov. 1944 Jan. 1944 79.0 91.3 78.2 115.6 93.4 96.6 22.3 73.2 75.6 82.1 79.2 91.3 78.5 118.3 93.2 95.2 22.4 73.5 79.6 82.1 79.9 91.8 79.2 123.2 92.9 94.1 22.0 72.5 82.2 82.1 33.4 99.8 101.4 143.5 128.6 120.3 26.0 121.9 83.7 81.1 137.7 215.5 125.1 177.1 156.6 183.3 30.3 122.8 135.8 132.2 148.8 199.8 127.7 183.4 163.8 179.7 29.9 122.1 144.3 131.7 137.7 197.7 125.0 192.5 152.7 174.3 28.0 119.3 153.8 130.9 146.0 228.9 157.4 218.9 209.9 214.4 33.8 187.1 139.6 126.2 126.1 120.2 82.0 117.7 95.7 98.3 107.2 114.2 106.1 62.4 67.7 88.9 110.2 106.3 112.0 140.8 272.6 126.7 121.7 82.0 117.7 97.1 111.9 110.2 152.2 131.3 67.5 68.9 91.4 110.5 107.8 114.5 141.8 274.5 127.1 121.7 82.1 117.7 96.8 103.2 109.0 127.4 118.4 64.4 67.2 91.2 110.3 107.6 117.1 142.5 267.7 127.9 123.1 83.8 118.8 95.1 97.5 106.8 110.4 105.7 64.6 65.9 89.1 108.6 109.9 111.2 137.4 198.9 157.8 172.3 115.2 175.0 139.1 130.7 141.4 144.3 145.5 87.4 100.9 129.9 166.8 161.5 175.2 158.6 174.0 114.6 173.5 142.3 146.8 145.0 190.7 178.9 97.0 102.8 132.4 169.5 162.3 176.6 156.9 172.1 114.2 170.1 140.0 134.2 141.9 155.9 159.5 90.1 99.3 130.5 164.6 160.7 181.9 150.2 171.9 112.9 161.4 131.2 122.2 132.7 132.1 134.9 84.9 91.7 123.4 148.9 155.0 163.5 ( 5) 685.2 ( 4) 672.9 ( s) 651.9 ( 5) 448.7 1 Does not include well drilling or rig building. 2 Data from January 1937 are available upon request. 3 Cash payments only; additional value of board, room, tips, not included. 4 Source: Interstate Commerce Commission. 4 N ot available. 6 Based on estimates prepared by the U. S. Maritime Commission covering employment on active deepsea Digitized for American-flag FRASER steam and motor merchant vessels of 1,000 gross tons and over. Excludes vessels under bareboat charter to, or owned by, the Army or N avy. https://fraser.stlouisfed.org Federal Reserve636372— Bank of 45 St. Louis -14 904 MONTHLY LABOR REVIEW— APRIL 1945 AVERAGE EARNINGS AND HOURS Average weekly earnings and hours and average hourly earnings for November and December 1944, and January 1945, where available, are given in table 6 for both manufacturing and nonmanufacturing indus tries. The average weekly earnings for individual industries are com puted by dividing the weekly pay rolls in the reporting establishments by the total number of full- and part-time employees reported. As not all reporting establishments supply information on man-hours, the aver age hours worked per week and average hourly earnings shown in that table are necessarily based on data furnished by a slightly smaller number of reporting firms. Because of variation in the size and com position of the reporting sample, the average hours per week, average hourly earnings, and average weekly earnings shown may not be strictly comparable from month to month. The sample, however, is believed to be sufficiently adequate in virtually all instances to indicate the general movement of earnings and hours over the period shown. The average weekly hours and hourly earnings for the manufacturing groups are weighted arithmetic means of the averages for the individ ual industries, estimated employment being used as weights for weekly hours and estimated aggregate hours as weights for hourly earnings. The average weekly earnings for these groups are computed by multi plying the average weekly hours by the average hourly earnings. T a b l e 6 . —Earnings and Hours in Manufacturing and Nonmanufacturing Industries MANUFACTURING Average weekly earnings ‘ Average weekly hours 1 Average hourly earnings i Industry Jan. 1945 Dec. Nov. 1944 1944 Jan. 1945 All manufacturing, _______ ____ ________ $47.a52 $47.45 $46.85 Durable goods_________________________ 53. 55 53.68 53.04 Nondurable goods_____________________ 38.65 38.41 37. 87 45.4 46.8 43.4 45.6 47. 1 43.5 51.65 51.85 50.98 46.9 47.4 46.8 110.1 109.5 108.9 55. 04 52.63 52. 76 53. 25 42. 80 41. 50 52.07 45.69 54. 55 51.72 51.88 52. 60 42. 64 39. 61 50.31 44. 31 46.2 47.7 48.8 46.6 47.4 45.2 48.4 46.6 47.0 47.7 48.9 46.9 47.2 45.3 48.5 46.4 46.6 47.2 48.5 46.3 47.4 44.3 47.3 46.1 47. 67 47. 42 45 93 47. 22 47. 24 46.15 49. 55 48.87 47. 72 47.8 47.6 46.9 47.8 47.6 46.6 46.7 99.8 99.3 98.6 47.0 99.1 99.3 98.1 46.2 105.7 104.8 103.3 48.78 48.67 48.05 46.6 47.2 46.9 104.3 103.1 102.5 50.69 50.06 50.05 47.8 48.1 48.1 105.6 104.1 104.0 49.12 48.98 46.66 46.8 46.8 45.1 105.7 104.6 103.5 53.47 54.63 54.19 47.1 48.1 48.2 113.6 113.6 112.5 52.20 49.95 61.69 52. 20 41.96 57.46 48.1 46.7 48.2 49.0 42.6 45.1 48.6 47.3 47.8 48.0 45.1 46.6 47.0 46.9 47.5 48.0 44.2 46.8 Dec. N ov. 1944 1944 Jan. 1945 Dec. Nov. 1944 1944 Cents Cents Cents 45.3 104.7 104.0 103.5 46.7 114.6 113.9 113.6 43.2 89.0 88.3 87.7 Durable goods Iron and steel and their products............ Blast furnaces, steel works, and rolling mills_______ _ _____________ ______ Gray-iron and semisteel castings________ Malleable-iron castings_________________ Steel castings__________________________ Cast-iron pipe and fittings______________ Tin cans and other tinware_____________ Wirework____ __________________ ____ Cutlery, and edge tools____________ _ Tools (except edge tools, machine tools, files, and saws)_____ _______ _________ Hardware______________________ .. Plumbers’ supplies__ _______ ___ ,, Stoves, oil burners, and heating equip ment, not elsewhere classified_________ Steam and hot-water heating apparatus and steam fittings____________________ Stamped and enameled ware and galvan izing________________________________ Fabricated structural and ornamental metalwork________ . ___ . . . Metal doors, sash, frames, molding, and trim ___________ ___________ . ______ Bolts, nuts, washers, and rivets_________ Forgings, iron and steel ________ ____ Screw-machine products and wood screws. Steel barrels, kegs, and drums___________ Firearms_________________ ____ ________ See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55. 33 52.65 53.31 53. 33 42. 48 41.03 51.82 44. 92 53.47 49.57 61.16 50.74 44,23 59.14 51.67 48.88 60.61 50. 25 42. 51 60.70 119.1 110.6 108.2 114.7 89.7 91.4 107.7 97.5 108.5 106.9 129.1 106.6 98.2 127.2 117.9 110.6 109.3 113.8 89.4 90.5 107.0 96.7 110 0 104.8 128.0 105.7 98.0 126.8 117.0 109.5 107.9 113.5 89.6 89.4 106.5 96.1 109.9 104.2 127.5 104.6 96.1 129.6 905 TREND OF EMPLOYMENT, EARNINGS, AND HOURS T a b l e 6 . —Earnings and Hours in Manufacturing and Nonmanufacturing Industries—Continued M ANUFACTURING-Continued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry Jan. 1945 Dec. Nov. 1944 1944 Jan. 1945 Dec. Nov. 1944 1944 $48. 54 50. 99 42.38 45.92 46.6 47.1 45.9 45.2 46.7 47.0 46.1 45.9 Cents 46.3 106. 8 46.6 111.8 46.0 93.2 45.5 101.2 Cents 105.9 110.7 92.7 100.7 Cents 104.9 109.5 92.0 100.3 54.72 53. 84 59. 81 54. 09 51.98 58.05 59.51 48.77 49.14 48.5 48.5 48.5 47.1 46.9 51.6 49.5 49.6 49.3 48.9 48.7 49.7 47.3 47.1 51.8 49.4 49.6 48.0 48.2 48.2 48.5 47.3 46.0 50.5 49.2 48.3 49.5 114.6 112.4 126.4 114. 7 113.2 117.3 122.3 101.3 99.1 113.4 111.6 123.5 114.4 113.0 115.0 121.2 101.0 99.2 Durable goods—Continued Electrical m a ch in ery ._____________________ Electrical eq u ip m en t__________________ Radios and phonographs. . . . . . _____ Communication equipment_____________ Machinery, except electrical___ . . . . . ____ Machinery and machine-shop products. _. . . . . . . .. Engines and turbines______ Tractors------ ----------- -------------------- . . . Agricultural machinery, excluding tractors. Machine tools_____________ _ _ ______ Machine-tool accessories________________ Textile machinery_____ ________________ Typewriters. ___ _ _____ _ _ ______ Cash registers, adding and calculating m achines._____________ ____ ______ Washing machines, wringers, and driers, d o m e s tic ..--------------. ---------- . . . Sewing machines, domestic and industrial. Refrigerators and refrigeration equipmentTransportation equipment, except automo biles_____ __________________________ —. Locomotives________________ . . . ______ Cars, electric- and steam-railroad. ____ Aircraft and parts, excluding aircraft engines__________ _____ _____________ Aircraft engines___________________ ____ Shipbuilding and boatbuilding__________ Mortorcycles, bicycles, and parts_______ $49. 76 $49. 43 52.45 52 06 43.27 42. 79 45. 90 46.35 55. 88 54. 92 61.18 54.23 53.40 60. 21 61.14 50. 33 49.27 56.05 54.76 62.82 54.24 53.35 60.81 60. 35 50.20 47. 53 Jan. 1945 115.1 113. 2 126.3 115.1 113. 7 117.2 123.5 101.6 100.0 Dec. N ov. 1944 1944 59.32 57. 77 58.48 48.7 47.8 48.2 123.1 121. 6 122.2 47.94 50.58 46.38 58.01 57.10 56.88 50. 57 54.42 51.21 46.3 51.7 45.4 47.2 51.5 48.0 44.8 103.4 107.2 103.5 51.4 113.3 112.2 111.7 46.0 111.6 113.4 111.2 62.73 63.29 63.04 63.44 68. 36 64. 94 54. 44 57.37 53. 57 47.9 47.1 45.6 48.4 49.6 47.7 47.8 130.8 130.9 131.8 48.3 134.7 137.7 134.4 45.9 119.4 120.2 116.7 55.64 59.90 68. 68 50. 79 47.7 46.4 48.6 49.0 47.6 46.0 49.3 48.5 47.2 45.2 48.8 47.7 45.5 131.4 127.9 128.0 57. 35 62. 63 66. 25 52. 83 56.45 61.23 68.17 52.31 120.3 134.8 137.1 107.9 118.7 132.9 138.4 107.9 117.8 132. 6 140.7 106.4 Automobiles_____________ ____ ______ ______ 59.38 58.41 58. 23 45.2 45.7 Nonferrous metals and their products_______ Smelting and refining, primary, of nonferrous metals_________________ . . . . . Alloying and rolling and drawing of nonferrous metals, except aluminum______ Clocks and watches____________________ Jewelry (precious metals) and jewelers’ findings . . . _________________________ Silverware and plated ware____________ Lighting equipment_____________ ______ Aluminum manufactures. ______ _____ 50. 80 50.83 49. 66 47,2 47.5 46.9 107.7 106.9 105.8 49.20 48.74 48. 52 45.8 46.0 45.9 107.4 105.9 105.8 56.14 55.92 54.11 44.64 45.05 44.49 48.7 46.3 49.0 47.1 47.9 115.0 114.1 113.0 47.0 96.3 95.6 94.7 45. 36 47.42 48.41 51.37 44.72 47.49 46.65 50.25 45.4 46.4 44.7 47.5 46.4 47.4 45.6 47.4 45.5 98.3 99.7 96.8 46.6 102.4 102.5 101.8 44.7 107.8 104.9 104.4 46.9 108.2 108.7 107.2 Lumber and timber basic products______ . . . Sawmills and logging camps____________ Planing and plywood mills_____________ 33.65 33.62 34. 00 32. 34 32. 26 32. 66 37.91 37.99 38.39 42.5 41.8 44.7 42.3 41.4 45.3 43.0 42.1 45.9 79.1 77.3 84.3 79.4 77.9 83.7 79.1 77.6 83.6 Furniture and finished lumber products_____ Furniture____ . _____________________ Caskets and other morticians’ goods___ Wood preserving_________ . . . ._ _______ 37. 57 38. 34 41.65 33.94 37.48 38.00 41.38 33. 60 36.97 37.51 39.27 34.52 44.4 44.3 46.5 43.8 44.5 44. 3 46.4 42.5 44.4 44.2 44.5 43.8 84.6 86.8 89.9 77.5 84.2 86.2 89.6 79.0 83.3 85.3 88.4 78.9 Stone, clay, and glass products_____________ Glass and glassware _________ _ _____ Glass products made from purchased glass. Cement________ . . . . . . ___ _______ Brick, tile, and terra cotta. ___________ Pottery and related products_________. . . Gypsum_________ ________ ______ Lim e____________ ___________ ______ _ Marble, granite, slate, and other products. Abrasives______ _______ ______________ _ Asbestos products_______ ________ ______ 39.80 40.35 40.32 40. 73 36.20 36. 38 41.61 42.66 33. 3£ 33.42 35.92 37. 27 45.47 45.53 37.17 37.87 38. 53 39.81 49.15 50.32 49.50 1 49.43 40.10 40.36 35. 23 43. 6C 34.04 36.88 46.03 38.01 39.92 48.76 48.49 43.4 42. C 44.0 44.6 41.1 40.7 48.5 47. C 42.7 48.2 49.7 44.2 42.8 44.4 45.9 41.4 42.2 49.1 47.2 44.1 49. C 49.2 44.1 91.7 91.4 91.0 42.6 96.3 95.5 95.0 43.7 82.3 82.1 80.4 46.6 93.4 92.9 93.6 42.1 80.9 80.4 80.3 42.1 89.5 89.5 88.9 49.6 93.8 92.7 92.8 48.6 79.5 80.6 78.4 43.7 88.3 88.8 90.9 47.7 102.1 102.7 102.2 48.5 99.7 100.4 99.9 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46. 94 48. 56 47.83 51.47 906 MONTHLY LABOR REVIEW— APRIL 194 5 T a b l e 6 . —Earnings and Hours in Manufacturing and Nonmanufacturing Industries—Continued MANUFACTURING—Continued Average weekly earnings 1 Average weekly hours 1 Average hourly earnings 1 Industry Jan. 1945 Dec. Nov. 1944 1944 Jan. 1945 Dec. Nov. 1944 1944 Jan. 1945 Dec. Nov. 1944 1944 Nondurable goods Textile-mill products and other fiber manufactu res________________ - ---------------Cotton manufactures, except smallwares___ Cotton smallwares____________ _______ Silk and rayon goods___________________ Woolen and worsted manufactures, except dyeing and finishing----------------- -----H o s i e r y ___________________________ Knitted cloth__________ ______________ Knitted outerwear and knitted gloves-----Knitted underwear. __ __ _ ______ ___ Dyeing and finishing textiles, including woolen and worsted__________________ Carpets and rugs, wool- .... . Hats, fur-felt-------- ------- ---------------- . . . Jute goods, except felts - . . . . ________ Cordage and tw in e____ . . . ---------------- Cents Cents Cents 72.8 72.5 72.2 65.3 64.8 64.6 80.7 79.5 77.5 71.0 70.8 70.7 $30.80 27. 81 35. 74 29.81 $30. 98 27.91 34 73 30.41 $30. 54 27.49 33.14 30.04 42.3 42.6 44.4 41.9 42.8 43.1 43.8 42.9 42.3 42.5 42.7 42.5 36.81 29. 78 33.38 30. 68 27.20 36.63 30.12 33. 32 31.05 27.42 36.00 29.90 32. 57 31.23 27.32 43.1 38.5 44.6 39.4 40.4 43.1 39 0 44.7 40.0 41.0 42.4 38.9 44.5 40.5 40.9 35. 38 40. 26 45.06 35. 33 33. 34 35.95 40.66 45.38 35.48 33. 97 35. 29 39.67 44.85 35.20 33.49 45.3 43.7 41.7 45.7 45.1 46.2 44.3 42.0 45.4 45.6 45.5 77.4 77.7 77.6 43.6 92.3 92.0 91.4 41.7 108.3 108.1 108.4 45.4 77.6 78.1 77.5 45.4 73.8 74.4 73.6 Apparel and other finished textile products___ M en’s clothing, not elsewhere classified-... Shirts, collars, and nightwear_______ . . . . Underwear and neckwear, men’s________ Work shirts________ _ ________________ Women’s clothing, not elsewhere classified. Corsets and allied garments_____________ M illinery___________________________ . Handkerchiefs______ ________________ Curtains, draperies, and bedspreads.----Housefurnishings, other than curtains, etc. Textile bags_____________ _____________ 32.43 34.08 24. 94 26. 77 21.17 40. 35 30.40 40.01 24.10 26.94 32.91 30. 81 31.35 33.25 24.68 26. 84 21.21 38.45 29.99 35. 29 24.19 26.83 33.47 30.26 31.34 33.95 24.61 26.96 21.58 37. 67 30.68 33.69 24.83 27.11 33.38 29. 95 38.2 39.0 36.6 36.8 36.8 37.0 40.2 34.0 37.6 36.7 41.1 42.4 37.7 38.3 36.4 37.4 36.6 36.7 40.5 31.2 38.3 37.0 42.2 42.2 38.0 84.9 83.1 82.4 39. 1 86.5 86. 1 86.4 36.7 67.9 67.3 67.0 37.1 72.8 72.0 73.0 37.4 56.3 56.8 55.8 36.4 105.4 101.7 100.1 41.3 75.3 74.2 74.4 30.3 97.5 92.9 92.4 38.1 64. 5 63.3 65.2 37.7 73.3 71.5 71.2 42.0 79.2 79.2 79.6 42.5 72.5 71.7 70 8 Leather and leather products............ ............ . Leather Boot and shoe cut stock and findings_____ Boots and shoes___________ . ____ ____ Leather gloves and m ittens_____________ Trunks and suitcases___________________ 34.75 43.93 35.16 33.12 29. 72 34.15 34.27 43.42 34. 59 32. 55 28. 98 35.28 33.70 43.07 33.57 31.87 30. 34 33.36 41.9 45.5 42.8 41.3 37.8 41.6 41.6 45. 3 42.9 40.9 37.1 42.6 41.2 45. 4 41.9 40.4 37.9 40.6 Food______ ____ _______________________ . . Slaughtering and meat packing_____ ___ Butter______________ _________ ____ _ Condensed and evaporated milk__ _____ Ice cream__________ ____ _ ___________ F lo u r... _____ _________________ ____ Cereal preparations____________________ Baking_________________________ _____ Sugar refining, cane. . . . . ____ . ... Sugar, beet____ _ . . . _____________ Confectionery_________________________ Beverages, nonalcoholic________________ Malt liq uors... . . . __________________ Canning and preserving. _____ _________ 39. 50 46.99 35.09 37.37 39. 71 43.37 45. 85 38. 51 39.58 33.70 30.81 34. 12 49. 96 31.73 39. 79 48.16 34.96 36. 83 39.70 42.18 46.07 39.24 40. 89 31.83 31.03 34.75 51.21 31.10 38.86 46.81 34.20 35. 93 38.94 41.88 44.22 38.86 36. 94 35. 84 31.03 35.00 50.86 30.49 45.6 51.2 46.9 49.0 46.2 50.0 47.5 45.2 46.1 34.5 41.3 42.2 44.2 40.3 46.0 51.9 47.1 48.9 46.4 49.1 47.2 46.0 47.8 37.6 41.9 43.3 45.2 40.0 45.2 86.6 86.6 85.9 50.3 92.5 93.3 93.3 46.8 74.0 73.5 72.5 47.9 76.4 75.3 75.0 45.8 82.2 81.8 81.2 48.7 86.9 85.9 86.1 46.3 96.6 97.6 95.5 45.4 84.8 85.4 85.5 44.2 86.2 85.9 84.0 45.2 97.7 84.7 79.3 42.0 75.1 74.1 74.0 43.0 80.5 80.4 80.6 44.9 113.4 113.2 113.3 39.7 79.5 78.6 77.3 Tobacco manufactures . . . . . . ____________ Cigarettes_____________________ _______ C igars.._ _ . . . _ . . . ______________ _ Tobacco (chewing and smoking) and snuff. 31.96 35.07 29.33 29.89 33. 20 35.77 31.13 30.41 32.49 35.18 30.29 29. 97 43.4 44.8 41.9 43.1 45.0 46.0 44.1 44.3 44.2 45.3 43.2 43.5 73.7 78.2 69.7 69.4 73.8 77.8 70.7 68.6 73.5 77.6 70. 2 68.9 Paper and allied products........................... ........... Paper and pulp________________________ Envelopes__________ _ _______________ Paper bags_____ . . . _________________ Paper boxes___________________________ 40.25 43. 55 38.23 35. 30 35.74 40.40 43.96 38.18 35. 76 35. 72 40.11 43.73 36. 85 35.13 35.57 46.3 48.1 45.3 44.4 43.9 46.6 48.8 45.5 45.5 44.0 46.5 48.6 44.6 45.2 44.0 87.0 90.5 84.3 79.7 81.6 86.7 90.4 83.8 79.3 81.4 86.3 89.9 82.5 78.3 81.0 Printing, publishing, and allied industries____ Newspapers and periodicals_____________ Printing, book and job___ ______ _____ Lithographing_________________________ 46.03 49.42 45.14 46.53 45.84 49. 85 44. 75 46.74 45. 56 49. 63 44. 52 47. 53 41.4 38.4 43.2 43.9 41.4 38.6 42.8 44.3 41.3 38.5 42.5 45.2 111. 1 126.5 104.9 106.5 110.8 126.8 104.2 106.0 110.4 126.8 103.7 105.6 See footnotes at end of table. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85.7 77.6 74.4 77.1 67.0 82.9 96. 5 83.2 79.9 78.4 81.4 85.2 77.1 73.8 77.0 66.8 82.4 95. 7 81.8 79.4 78.2 82.3 84.9 76.9 72.6 76.4 66.5 81.9 95.1 81.0 78.7 80.5 81.1 907 TREND OF EMPLOYMENT, EARNINGS, AND HOURS T a b l e 6 . —Earnings and Hours in Manufacturing and Nonmanufacturing Industries—Continued MANUFACTURING—Continued Average weekly earnings 1 Average wetkly hours 1 Average hourly earnings 1 Industry Jan. 1945 Dec. Nov. 1944 1944 Jan. 1945 Dec. N ov. 1944 1944 Jan. 1945 Dec. N ov. 1944 1944 Nondurable goods—Continued Chemicals and allied products____________ __ Paints, varnishes, and colors_______ . . . Drugs, medicines, and insecticides______ Soap______________ _________________ Rayon and allied products_______ ____ __ Chemicals, not elsewhere classified_____ Explosives and safety fuses_____________ Ammunition, small-arms_______________ Cottonseed o i l . . _ ___ . . . _____________ Fertilizers_______ _____ _____ __________ $44.33 $44.06 $43.70 46.86 46.59 46.03 36. 23 35.72 35.45 48. 63 49.11 48.19 39. 55 39. 08 39.20 53.31 52.64 52.48 47. 25 46. 79 45. 87 46.01 46.04 45.29 28.94 29.40 29.41 30.57 30.48 30. 83 45.6 47.4 43. 1 48.0 43.1 46.9 44.9 46.8 53.7 44.8 45.7 47.4 43.6 48.7 42.7 46.8 45.0 46.6 54.8 44.2 Cents Cents Cents 45.7 97.1 96.4 95.6 47.2 99.2 98.6 97.8 43.6 83.6 82.1 81.6 48.2 101.3 100.9 100.0 43.1 91.8 91.6 91.0 46.8 113.3 112.5 112.1 45.0 104.7 104.0 101.9 46.3 98.2 98.8 97.8 54.8 53.9 53.7 53.7 43.7 68.3 69.0 70.5 Products of petroleum and coal_____________ Petroleum refining_____ _______ ________ Coke and byproducts__________________ Roofing materials-_____________________ 55. 59 57. 70 50.59 46.19 55.95 58.50 49.31 46.87 55.61 58.66 48. 08 46. 75 46.3 45.8 47.7 48.5 46.9 46.4 47.5 49.5 46.9 120.0 119.4 118.6 46.7 126.4 126. 2 125.3 46.6 106.4 104.0 103. 1 48.9 95.2 94.7 95.7 Rubber products__________________________ Rubber tires and inner tubes___ ________ Rubber boots and shoes.___ ___________ Rubber goods, other___________________ 54. 51 64.29 41.22 44.68 52.63 61.71 41.57 43.68 50.59 58.30 40. 09 43.29 47.3 49.0 44.3 45.8 46.6 47.9 44.9 45.4 45.7 115.2 112.9 110.7 46.4 132.0 129.3 125.8 44.0 92.8 92.5 91.1 45.3 96.6 95.5 95.1 Miscellaneous industries____ ______________ 45. 54 45. 04 44. 40 Instruments (professional and scientific), and fire-control equipment____________ 57. 56 57.42 55. 03 Pianos, organs, and parts_______ ________ 47. 53 44.47 46.22 45.8 45.7 45.5 50.0 46.4 49.8 44.0 48.5 115.5 115.3 113.6 45.7 103.0 101.6 101.5 $44.81 $48. 39 $44.39 54. 25 50. 39 49.66 45. 07 45.89 44. 53 38.78 39. 39 40.65 54. 34 53. 97 53. 90 38.9 45.4 44.2 44.6 45.5 41.5 43.1 44.8 44.9 45.4 38.6 42.6 43.7 46.8 45.9 39.74 37. 02 48.84 49. 71 39.19 36. 63 48.89 48.68 42.4 45.0 43.4 51.5 42.7 45.4 43.3 51.8 42.3 93.4 93.5 93.0 45.3 82.6 81.5 80.9 43.4 112.2 111.9 111.6 50.8 96.0 95.5 94.6 43.15 43. 55 26.99 26.41 31. 49 31.50 22. 31 22. 07 29.07 28. 78 38.20 39.11 42.05 42.31 37.86 37. 40 23. 71 24. 04 28.10 27.83 31.68 31. 22 58. 52 58. 58 48.04 46. 23 52.98 • 53.48 42.91 26.20 31.13 21.32 28.44 38. 39 41. 49 37.07 23. 37 27.62 31.75 55. 76 45.45 53. 50 42.8 39.5 39.9 35.1 36.2 44.0 46.3 42.8 44.2 43.9 43.7 (4) (4) 38.8 43.3 39.8 40.3 36.3 36.7 43.9 46.8 42.9 44.4 43.5 43.4 (4) (4) 39.4 43.0 101.0 100.2 99.6 39.4 75.1 72.8 73.6 40.1 74.6 73.9 73.7 35.2 63.2 59.2 60.5 36.1 79.7 78.4 79.0 44.0 87.7 88.5 88.1 46.3 92.6 92.3 91.5 42.6 89.4 89.1 88.2 44.4 53.2 53.5 52.8 43.4 64.9 64.4 64.1 43.5 74.9 74.3 74.7 (4) (4) (4) (4) (4) (4) (4) (4) 39.7 136.4 135.9 134.9 99.4 98.6 97.5 NONMANUFACTURING Coal mining: Anthracite____________________________ Bituminous___ ______ _________________ Metal mining________ ___________________ Quarrying and nonmetallic mining_________ Crude-petroleum production______ _________ Public utilities: Telephone____________________________ Telegraph2- _____ Electric light and power_______ __ . . Street railways and busses______________ Trade: Wholesale_____________ . . . __________ Retail _____________________ Food_______ ______________ _____ ._ General merchandise. ____ _______ Apparel- ____ ______ ________ Furniture and housefurnishings_____ Autom otive. _____________________ Lumber and building materials_____ Hotels (year-round) 3______________________ Power laundries________________________ Cleaning and dyeing______________________ Brokerage _______________________ ______ Insurance. _ ____________________________ Private building construction.............. .............. 39.49 37.14 48.90 50.15 Cents 115.4 120.5 101.8 87.3 116.6 Cents 117.6 118.7 102.0 88.4 116.2 Cents 115.6 117.3 101.5 87.1 114.6 1 These figures are based on reports from cooperating establishments covering both full- and part-time employees who worked during any part of 1 pay period ending nearest the 15th of the month. As not all reporting firms furnish man-hour data, average hours and average hourly earnings for individual indus tries are based on a slightly smaller sample than are weekly earnings. Data for the current and immediately preceding months are subject to revision. 2 Excludes messengers and approximately 6,000 employees of general and divisional headquarters and of cable companies. 3 Cash payments only; additional value of board, room, and tips, not included. * N ot available. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 908 MONTHLY LABOR REVIEW— APRIL 1945 C ivilian Labor Force, F ebruary 1945 THE civilian labor force increased by 470,000 persons between January and February 1945 to a total of 51,430,000, according to the Bureau of the Census sample Monthly Report on the Labor Force. During the month interval, gains of 100,000 in agricultural employ ment and 330,000 in nonagricultural, combined to increase the em ployment total by 430,000. The volume of unemployment increased by 40,000 to a total of 880,000. Employment in February 1945—50,550,000—was 290,000 above the February 1944 total. The increase was about evenly divided between agricultural and nonagricultural industry. The number of women employed in February 1945 exceeded the total for February a year ago by 1,130,000—760,000 in nonagricultural employment and 370,000 in agriculture. On the other hand, employment of men in civilian activities, reflecting the growth in the armed forces during the year, was 840,000 lower than the level in the same month a year previous. The level of unemployment this February closely approximated that in February 1944. For the most part, the unemployment is that of persons between jobs who find work within a relatively short period of time. Civilian Labor Force in the United States, Classified by Employment Status and by Sex January and February, 1941-45 1 [Source: U . S. Department of Commerce, Bureau of the Census] Estimated number (in thousands) of persons 14 years of age and over2 Item 1945 1944 1943 1942 1941 Febru Janu Febru Janu Febru Janu Febru Janu Febru Janu ary ary ary ary ary ary ary ary ary ary Total civilian labor fo r c e ___ U nem ploym ent3_______ E m ploym ent, ________ N onagricultural____ Agricultural------------ 51,430 50, 960 51,150 51, 430 52, 540 52,720 53, 210 52, 970 52, 200 52,350 880 840 890 1,080 1,330 1,370 3, 650 3, 890 6, 370 6,800 50, 550 50,120 50, 260 50, 350 51,210 51,350 49, 560 49. 080 45, 830 45, 550 43, 760 43, 430 43, 610 43, 750 44,130 44, 240 42,060 41,750 38,360 38,000 6, 790 6,690 6, 650 6,600 7, 080 7,110 7, 500 7,330 7,470 7, 550 Males Civilian labor force_________ 33, 660 33,650 34, 520 34, 640 36,410 36, 850 39, 860 39, 720 39, 840 40,010 U nem ploym ent3„ ............ 490 490 510 650 770 810 2, 680 2, 810 4, 790 5,190 Employm ent___________ 33,170 33,160 34,010 33, 990 35, 640 36,040 37,180 36, 910 35,050 34, 820 N onagricultural_____ 27, 270 27, 230 27, 880 27, 970 29, 240 29,610 30,140 29, 990 27, 850 27, 550 Agricultural___ ____ 5,900 5, 930 6,130 6,020 6,400 6,430 7,040 6,920 7,200 7,270 Females Civilian labor force_________ 17,770 17,310 16, 630 16, 790 16,130 15, 870 13,350 13, 250 12,360 12,340 U nem ploym ent3_______ 390 350 380 430 560 560 970 1,080 1. 5S0 1,610 Em ploym ent__________ 17,380 16, 960 16, 250 16, 360 15,570 15, 310 12,380 12, 170 10, 780 10,730 Nonagricultural_____ 16, 490 16, 200 15, 730 15, 780 14, 890 14, 630 11, 920 11, 760 10, 510 10,450 Agricultural________ 520 280 890 760 580 680 680 460 410 270 1 Estimates for period prior to November 1943 revised April 24, 1944. 2 All data exclude persons in institutions. 3 Includes persons on public emergency projects prior to July 1943. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Labor Chronology Chronology of Labor Events, O ctober-D ecem ber 1944 O C TO BER 19U O ct. 1. T h e W ar P rodu ctio n B oard an nounced th a t its special T ask C om m ittee, ap p o in ted to w ork o u t th e details of th e W PB V -E D ay p lan for th e rem oval of controls over th e d istrib u tio n of m aterials, h ad already developed an d d istrib u te d a p relim in ary d ra ft w ith seven proposals for com m ent an d suggestions from v arious G overn m en t agencies. T h e proposals were in conform ity w ith th e following basic principles of th e V -E D ay policy unanim ously ad o p te d by th e W PB on S eptem ber 5, 1944: (1) im m e d ia te rem oval of con trols over m aterials im m ediately upon th e d efeat of G erm any, except those "necessary to assure w ar pro d u ctio n to d efeat J a p a n ; (2) assistance and encouragem ent to in d u stry in resum ing civilian p ro d u ctio n a n d m ain tain in g em plo y m en t; a n d (3) m ain ten an ce of W PB organization a n d pow ers "u n til it is certain th a t th e w ar p ro d u ctio n p rogram is a d e q u a te for v icto ry over J a p a n .” (Source: W ar P ro d u ctio n B oard, W P B -6588.) O ct. 2. T he N atio n al W ar L ab o r B oard announced th a t it h ad issued in stru c tions to its R egional B oards an d In d u s try Com m issions a u th o r izing th e m to approve a t req u est a new p lan of a u to m a tic w ageprogression schedules, as an a lte rn a tiv e to an y pro p erly existing plans. U n d er th e instructions, a u to m a tic progressions from th e m inim um to th e m axim um of each pro p erly established ra te range are ap p ro v ab le if “ th e speeds for such progressions are no fa ste r th a n 12 m o n th s for unskilled labor, 18 m o n th s fo r sem i skilled jobs, a n d 24 m o n th s for skilled jo b s.” In cases in w hich an em ployer an d a union agree on a u to m a tic progressions to th e m idpoin ts of established ra te ranges, such progressions will be ap proved if th e m idpoints are n o t reached in few er th a n 4 m o n th s for unskilled jobs, 6 m o n th s for sem iskilled jobs, a n d 8 m o n th s for skilled jobs. T he N W L B sta te d th a t, in general, th e low est th ird of an esta b lish m e n t’s jobs are to be considered to be u n skilled jobs, th e m iddle th ird to be sem iskilled, an d th e to p th ird to be skilled jobs. (Source: N atio n al W ar L abor B oard, B -1773.) On O ctober 5 th e B oard announced th a t it “has n o t fo rm u lated an y general policy of ordering eith er a u to m a tic length-of-service progressions or m e rit increases w ith in occupational ra te ranges irrespective of th e facts of a p a rtic u la r case.” (Source: B -1779.) O ct. 3. T he P resid en t a p p ro v ed an a c t establishing th e Office of W ar M obiliza tio n an d R econversion. (F or sum m ary of provisions, see M. L. R. Ja n . 1945, p. 120.) O ct. 3. T he P resid en t ap p ro v ed th e Surplus P ro p e rty A ct of 1944, providing for th e d istrib u tio n of G o v ern m en t surplus p ro p e rty in a m an n er th a t w ould aid th e reconversion from a w ar to a peace econom y. A surplus P ro p e rty B o ard of th ree m em bers was estab lish ed in th e Office of W ar M obilization, to supervise th e disposition of surplus p ro p e rty an d th e tra n sfe r of surplus p ro p e rty betw een G overn m en t agencies. (Source: P ublic Law 457.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 909 910 MONTHLY LABOR REVIEW— APRIL 1945 Oct. 6. The NWLB denied approval of a proposed voluntary plan of deferred wage payments for the Milwaukee Electric Railway & Transport Co., calling it a hidden wage increase. The proposed plan pro vided that for the year 1944 a fund amounting to 6 percent of the employees’ earnings, including monthly fixed bonuses and overtime, but not special cash payments such as year-end bonuses, “would be set aside by the employer in an irrevocable trust fund to be controlled and administered by an impartial trustee.” (Source: B-1780.) Oct. 13. The NWLB, in a case affecting Southwest lumber companies in Arizona and New Mexico, rejected as contrary to the principles of wage stabilization the demand of the Lumber and Sawmill Workers of America, A. F. of L., for an increase of 40 cents an hour in the basic rate, to eliminate interregional wage differences between the Pacific Northwest and Southwest lumber industries. How ever, the Board stated that the union had the right to renew its requests for wage increases “upon a certification by interested government agencies that these are ‘rare and unusual’ cases in which the critical needs of war production require the setting of wage rates above the minimum of the sound and tested area . rates.” (Source: B-1788.) Oct. 21. The NWLB announced the approval of the substitution of an equivalent basic wage increase for the full-workweek attendance-bonus plan in effect in the Corning Glass Work's, Wellsboro, Pa. The com pany stated that the bonus plan was difficult to administer and that it had not materially reduced absenteeism or increased production. (Source: B-1795.) Oct. 27. The WPB and the National Housing Agency jointly announced an expansion of the H -2 housing program (see Chron. item for July 19, M. L. R. Dec. 1944), to provide for the construction of larger and better-quality housing in congested areas through the estab lishment of higher sales and rental ceilings. The expanded program provides for top sales prices of $8,000 and rental ceilings of $65 a month, and extends occupancy (formerly restricted to resident war workers) to families of military personnel and return ing veterans. It was stated that new ceiling prices, together with the relaxation on the use of materials, will make it possible for builders to construct 3-bedroom houses approximating pre-war standards. (See also Chron. item for Dec. 2, this issue.) (Source: WPB-6743.) Oct. 29. The Federal Security Administrator, in emphasizing the economic impor tance of the rehabilitation program, announced that more than 75,000 persons previously unable to hold a job because of physical disability were placed in employment in 1944 as a result of assist ance provided under the Federal-State program for vocational training. This was a new annual record. (Source: Office of War Information, Federal Security Agency, OWI-3698.) NOVEMBER Nov. 1. The WPB announced an order outlining the organization and functions of the Office of Civilian Requirements. The OCR will (1) participate in the review of plans for cut-backs in the war pro grams and recommend the “facilities most suitable to release in order to resume or expand the production of goods and services * * * which are of the greatest benefit to the civilian econ omy,” and (2) continue to exercise the following functions-^ (a) See to it that sufficient supplies are available for essential civilian requirements; (b) assure the fair distribution of scarce consumer goods throughout the country; (c) certify to the OPA, after consultation with the industry divisions, those cases in which production is held up because of price ceilings; and (d) protect American consumers by watching claims for the export of goods ini short supply. (Source: WPB-6772.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR CHRONOLOGY 911 Nov. 1. The NWLB, with industry members dissenting, in a case concerning the Paul & Beekman Co., Philadelphia, upheld the denial of a 15-day escape period in a renewal of a union-security clause which had not contained an escape period. The Board stated that it would not reduce the degree of union security which had been agreed to voluntarily in collective bargaining. (Source: B-1808.) Nov. 2. The NWLB announced the adoption of General Order No. 38, specifying the kinds of new incentive-wage or piece rates, as well as changes or modifications in established rates, that might be made without approval of the Board. Thus a rate may be changed “to reflect a change in method, product, tools, material, design, or produc tion conditions,” provided the established relationship between earnings and effort is maintained. Under the same proviso, an incentive-wage or piece-rate plan in operation in a plan may be extended to a new production item introduced into the plant. (Source: B-1813.) Nov. 5. The NWLB denied the application of the Hunt Oil Co. (Dallas) for per mission to extend its workweek for trucking-department employees to 60 hours at straight-time pay, to replace the current 48-hour week with time and a half after 40 hours. The workers concerned had agreed to the longer week as it would increase their total weekly earnings. The Board, however, stated that the resultant reduction in overtime hourly earnings is not approvable under the wage-stabilization program. The Board declared that its ruling did not conflict with the Interstate Commerce Commission regulations which make the payment of straight time up to 60 hours permissive, but not mandatory. (Source: B-1817.) Nov. 6. The Chairman of the WMC announced the composition of an advisory committee to the National Roster of Scientific and Specialized Personnel, “to advise on the utilization of technically trained men and women in the war effort.” It was announced that this committee would be asked to contribute also to plans for a post war program, involving reconversion. (Source: OWI, WMC, PM-4705.) On December 5 the WMC announced that the National Roster of Scientific and Specialized Personnel had placed approximately 50,000 persons since its establishment in June 1940. (Source: PM-4723.) Nov. 11. The NWLB, with the industry members dissenting, upheld the order of its regional board in Boston which had directed the HoltzerCabot Electric Co. (Boston) to lay off or rehire workers accord ing to length of continuous service, “provided the employee has the skill and ability to do the work.” The Board stated that it was discretionary with regional boards whether the qualification of the rule of seniority shall be “skill and ability to do the work,” or “equal skill and ability.” (Source: B-1826.) On December 7, 1944, the Board directed that “promotion of operators within a district in the traffic department of the American Telephone & Telegraph Co.’s Long Lines Depart ment shall be made on the basis of seniority if other qualifications are substantially equal.” The Board also specified that the seniority status of employees of the Long Lines Department “is to be determined on the basis of their service with the Bell System and not exclusively on their service with the Long Lines Department.” (Source: B-1861.) Nov. 12. The WPB, in announcing that more than 5,000 labor-management production committees were operating throughout the country, an increase of 500 in the last 4 months, stated that it had asked all of these committees to redouble their efforts on safety pro grams. Subcommittees of these bodies encourage safety ideas as a part of their employee-suggestion systems, promote nutrition education, and provide in-plant feeding facilities. (Source: WPB-6792.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 912 MONTHLY LABOR REVIEW— APRIL 1945 Nov. 13. The WMC in making public a report of its Apprentice-Training Service, announced that “wages earned by veterans who qualify for apprentice training will be supplemented by the monthly allow ances provided by the ‘G. I. Bill of R ights/ ” to the extent of $50 to $75, depending on whether the trainee has dependents. There are more than 100 skilled occupations for which men are trained through apprenticeship agencies in the 26 States where such agencies have been established. The training usually requires 4 years. Apprenticeship programs have been established in more than 30,000 manufacturing plants, construction, and mis cellaneous industries. Standards for apprenticeship programs have been developed by the Federal Committee on Apprentice ship. (Source: PM-4708.) (See Employment Aids for Vet erans, M. L. R., Mar. 1945, p. 546.) To date about 600 veterans have entered apprentice training, but fewer than 100 have applied for and are receiving monthly allowances. It is expected that eventually as many as 200,000 will apply for apprentice training. (Source: PM-4708.) Nov. 15. The WMC announced reports from the U. S. Office of Education, that approximately 9,300 veterans of this war have taken advantage of war production training coordinated by the WMC’s Bureau of Training. Of the veterans, 7,346 enrolled during the first 8 months of 1944, in war production training courses in public vocational schools, and 1,453 enrolled in short courses in colleges and universities under the Engineering, Science, and Management War Training program, also administered by the Office of Educa tion. (See Chron. item for Nov. 13, this issue; see also M. L. R. Oct. 1944, p. 818.) (Source: PM-4711.) On December 23, 1944, the Veterans Placement Service Board announced the creation of an interagency committee to coordinate governmental activities in behalf of veterans. (Source: OWI-3872.) Nov. 16. The Maritime Commission ordered all Maritime Commission shipyards, despite their extremely high turnover, not to give employment to any experienced seagoing personnel applying for shore jobs. (Source: OWI-3772; WMC, PM-4699.) On November 20 the War Shipping Administration announced that the granting of a Nation-wide priority by the WMC for the recruitment of inex perienced men for merchant seamen training by the U. S. Mari time Service emphasized the urgent need for 8,000 trainees a month. Because of the long distances, there are required in the Pacific about three times the number of merchant ships used in trans-Atlantic shipping. (Source: OWI-3772.) On November 19 the WMC announced that officers and seamen released by the closing of the Great Lakes navigation season would be placed in Merchant Marine jobs for the duration of the Lakes off-season. (Source: PM-4712.) Nov. 16. The War Labor Board announced that by its interpretation of the Se lective Training and Service Act of 1940, a veteran returning to his job must be “reemployed at the level to which he would have been entitled if there had been no break in his service with the company.” This involves only automatic in-grade increases dependent solely upon length of service. (Source: B-1834 and B-1834a.) On December 8, 1944, the President approved an act extending the time in which veterans may make application for reinstate ment in their former jobs from 40 days after discharge from the armed forces to a period of 90 days. (Source: Public Law 548.) Nov. 17. The President’s Committee on the Cost of Living (see Chron. item for Nov. 5, 1943, M. L. R. Feb. 1944) transmitted its report to the President. (For summary, see M. L. R. Jan., 1945 p. 168.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR CHRONOLOGY 913 I\ov. 17. The NWLB announced a revision of its General Order 30, providing that voluntary wage and salary increases which do not bring rates above 50 cents an hour may be granted by employers with out prior approval by the Board. (Source: B-1836.) On December 23, 1944, the labor members of the Board submitted to the full Board tor adoption a resolution which declared that “a straight-time hourly rate of 72 cents per hour is the minimum below which the National War Labor .Board shall consider any wage rate substandard,” and that “voluntary applications to ^crease wage rates to 72 cents per hour shall be approved.” (Source: B-1893.) v Nov. 19. The WPB announced the completion of plans for the creation of 12 new labor advisory committees (in addition to the 19 already functionmg whose membership was given in detail) in order to assure labor a greater voice in advising on the expansion of war produc tion and on post-war reconversion proposals. These labor committees cover major industries as a whole, and thus differ from the 761 industry advisory committees of the WPB which deal with the various specialized segments of industry. (See also Chron Îooo 5838.)sfor June 17> 1944’ M- L- R - Sept- 1944.) (Source: W PBOn November 29, the WPB announced the establishment of the Production Readjustment Committee under the Production Executive Committee, to '‘develop policies designed to make certain that productive facilities and manpower released by readjustments in the war programs are used in essential war production.” (Source: WPB-6911.) N o \. ¿,0. The \\ MC announced that interviewers would be assigned from the U. b. Employment Service to assist Army-camp commanders )n j u sel®cl 1<yi °1 1)000 soldiers whose release had been author ized by the War Department for work in “must” forge and foundry shops. (Source: PM 4714.) On November 28 the Com mission issued a list of 18 “must” or critical industries, with a table showing the number of workers urgently needed in each of these industries. Altogether 90,000 critical workers were needed nnmediately in the 18 industries. (Source: PM-4719 and P M On December 9, the Director of War Mobilization and Reconver sion announced that the Army and Navy had already released several thousand men for critical war plants, that the demands or such releases were increasing, and that he had requested the belective Service to induct additional men in the higher age groups to replace men released by the Army and Navy. (SourceWhite House release of Dec. 9, 1944.) (See also M. L. R. Feb! 1945, p. 296.) Nov. 20-30. The American Federation of Labor held its sixty-fourth annual convention m Nevy Orleans. (For summary of proceedings, see M. L. R. Feb. 194o, p. 318.) Nov. 20-25. The Congress of Industrial Organizations held its seventh annual convenEon^-m ^dncagm ^ (F or summary of proceedings, see Nov. 21. The Social Security Board announced that upon request it will recalcu late the amount of old-age and survivors insurance benefits payable to once-retired workers who have returned to work and as a result have credit for wages received since the benefits were first claimed. Approximately 66,000 such once-retired workers were in war jobs. By law, benefits are suspended for any month m which the worker earns more than $14.99 in covered emplovment (Source: OWI-3774.) (See M. L. R. Mar. 1945, p. 561, for data on benefits under Social Security Act.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 914 MONTHLY LABOR REVIEW— APRIL 1945 Nov. 24. The War Labor Board authorized its regional board at Cleveland to appoint a tripartite panel to hear the dispute between the Ohio Bell Telephone Co. at Dayton and the Ohio Federation of Tele phone Workers (independent). (Source: B-1846 and B-1846a.) (See M. L. R. Jan. 1945, p. 116, for discussion of strike.) On December 22, 1944, the NWLB announced that a national telephone panel would be established to make recommendations to it on ail voluntary and dispute cases involving the telephone industry. (Source: B-1888.) Nov. 25. The NWLB announced its decision in the dispute involving 86 “Basic Steel” companies. (For summary, see M. L. R. Jan. 1945, p. 41.) Nov. 30. The War Manpower Commission announced that approximately 800 women were employed as apprentices in 18 skilled trades under procedures and methods developed by the Commission’s Ap prentice-Training Service. The trades include airline mechan ics, cabinetmakers, carpenters, coremakers, machinists, drafts men, instrument makers, radio technicians, dental mechanics, jewelers, printers, watchmakers, bookbinders, and meatcutters. Training methods suggested for women were like those for men except that additional practice and explanation is recommended to compensate for lack of industrial experience. (See Chron. item for Nov. 13, this issue.) (Source: PM-4720.) On December 3, the WMC announced that the enrollment of women in all «types of Federal-State war production training programs totaled 3,103,600 from July 1, 1940 to October 1, 1944. (Source: PM-4722.) DECEMBER Dec. 1. The WPB, the Army, the Navy, and the WMC issued a joint message to their field“representatives, reemphasizing the urgency of war production and that reconversion must not interfere with war production. This was essentially a restatement of the original policy underlying Priorities Regulation No. 25 (see Chron. item for Aug. 15, 1944, M. L. R. Dec. 1944); however, the issuance of “spot” authorizations was forbidden, except in unusual cases, for a period of 90 days in group I labor areas (see Chron. item for May 20 1944, M. L. R. Sept. 1944) and in certain other areas. (Source: WPB-6922.) On December 16 the WPB took further action to prevent recon version from interfering with war production, by announcing that WPB programs for the quantities of civilian items to be manu factured would continue, in general, to be on the same level as during the fourth quarter of 1944. Increases in civilian produc tion would be authorized only through the “spot authorization” procedure under Priorities Regulation No. 25. (Source: W PB7007.) Dec. 2. The National Housing Agency announced that more than 1,730,000 units of housing for the exclusive use of war workers had been completed since the start of the emergency, that 81,800 were under construction, and that an urgent need for an additional 50,000 accommodations had developed to permit recruitment of necessary workers and the keeping of workers on the job. The 107 war housing centers of the NHA reported that, “on the average, there are three applications for housing for every exist ing unit that is listed for war workers’ use,” and urged that citizens in scores of communities open their homes to war workers. (See also Chron. item for Oct. 27, this issue.) (Source: OWI-3793.) Dec. 3. The WMC announced that the total enrollment in all types of FederalState war production training for the period July 1, 1940, to October 1, 1944, was 14,034,666, divided among the following programs: Vocational Training for War Production Workers, 6,859,708; Engineering, Science, and Management War Training, 1,609,001; Food Production War Training, 3,315,944; National Youth Administration, 772,756; and Training Within Industry Service, 1,477,257. (Source: PM-4722.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LABOR CHRONOLOGY 915 Dec. 5. The Department of Labor issued a “Reconversion Blueprint For Women” adopted at a conference (Dec. 5, 1944) of the Women’s Bureau with officials of 30 national organizations. The Blueprint presented a program to promote full employment and equal treatment of women workers in the post-war period. (Source: U. S. Dept, of Labor, Women’s Bureau, release of Dec. 5, 1944.) Dec. 8. The Director of the Committee for Congested Production Areas an nounced that, with the exhaustion of Congressional appropri ations, the remaining 7 area offices of the original 18 offices of the committee, as well as the Washington office, would close on December 31, 1944. The committee, in existence since April 7, 1943, had no operating functions but directed its attention to the coordination and expedition of the work of Federal, State, and local agencies in the improvement of community facilities and services so as to reduce absenteeism and labor turnover. (Source: OWI-3807.) Dec. 8. The President, by Executive order, authorized the Secretary of War to take possession of and operate the plants and facilities of Cudahy Brothers Co. of Cudahy, Wis., processors of meat products re quired for the war effort. The company had refused to comply with the terms of a directive order of the National War Labor Board, and a strike was impending as a consequence of a strike vote conducted on November 22, 1944, by the National Labor Relations Board. (Source: White House release of Dec. 8, 1944.) Dec. 10. The WMC announced plans for an expanded employment-counseling service in local offices of the U. S. Employment Service. (See M. L. R. Mar. 1945, p. 546, for summary.) Dec. 11. The Supreme Court of the United States in the case Steele v. Louisville & N. R. Co., held that stipulations for racial discrimination in promotion in collective-bargaining agreements by railroad unions were a violation of the Railway Labor Act. (For discussion, see M. L. R., Feb. 1945, p. 339.) Dec. 12-14. The Eleventh National Conference on Labor Legislation took place in Washington. (For summary of proceedings, see M. L. R. Feb. 1945, p. 330.) Dec. 15. The WMC announced that a uniform Nation-wide system had been placed in effect for classifying manpower orders or requests of employers into five priority categories, ranging in importance from orders of exceptional national importance (Priority Cate gory 1) to orders from essential and locally needed establish ments (Priority Category 5). (Source: PM-4727.) (For details, see M. L. R. Feb. 1945, p. 295.) Dec. 16. The President approved an act continuing for the calendar year of 1945 the 1-percent tax, under the Federal Insurance Contributions Act, on employer and employees. The act provided that for the years 1946, 1947, and 1948 the rate shall be 2% percent, and after December 31, 1948, 3 percent. (Source: Public Law 495.) Dec. 17. The WMC announced more than 5,000 manpower-utilization sur veys had been made in the last year and a half and that about 500 were being made currently every month. As a result of such studies, conducted with the cooperation of both management and labor, many millions of man-hours per month were gained for the war effort. It was stated that “present production prob lems in many tight labor areas could be partly, if not wholly, solved by proper use of available labor.” Since the WMC could not conduct surveys in all war production factories, it has developed available procedures for self-analysis by managements. (Source: PM-4728.) On January 1, 1945, the Social Security Board announced that about 530,000 unemployed workers had collected unemployment benefits at some time during 1944. (Source: OWI-3885.) Dec. 20. The NWLB announced that it had, by a vote of 7 to 5, directed the Standard Fruit & Steamship Co., an American corporation which operated five merchant ships under the Honduran flag between https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 916 Dec. 21. Dec. 23. Dec. 26. Dec. 27. Dec. 27. Dec. 27. Dec. 30. MONTHLY LABOR REVIEW— APRIL 1945 the ports of the United States on the Gulf of Mexico and Central America, to pay unlicensed seamen on these five vessels the same pay that unlicensed seamen receive on ships flying the American flag. The seamen concerned were members of the National Maritime Union, C. I. O., but were receiving on the average about 17 percent less in pay than fellow unionists on ships flying the American flag. (Source: B-1883.) The National War Labor Board, in a case involving the Corn Products Refining Co., Argo, 111., ruled that its regional Board at Chicago could only recommend rather than order the company to negotiate with a union whose certification by the National Labor Relations Board the company had refused to recognize. The National War Labor Board stated that its policy is “not to direct employers and unions to negotiate terms of employment, which is a function of the National Labor Relations Board.” (Source: B-188G.) The WMC announced that “as a result of proposals of labor members of the Management-Labor Policy Committee of the "War Man power Commission, wider use of the facilities of organized labor will be made in order more effectively to approach critical inplant war production problems and to recruit workers for war industries.” The Committee, in stating that recruitment alone would not solve production problems, issued a 10-point program, and stressed the fullest use of workers already within a plant as the best solution in many cases. (Source: PM-4734) (For details of 10-point program, see M. L. R. Feb. 1945, p. 296.) The OPA, in explaining that civilian supplies of sugar, butter, and commercially canned fruits and vegetables were at the lowest point since the war began, cancelled all unused blue and red ration stamps (about 2% months’ supply) that had become good before December 1944, and tightened the rationing program. Five canned vegetables (peas, corn, green and wax beans, aspara gus, and spinach) were added to the ration list, and the rationpoint value of butter was increased. On December 28, the OPA announced that beginning December 31, 1944, about 85 percent of the civilian meat supply would require red points, as compared with 37 percent before that date. (Source: OPA-5126, OPA— 5129, and OPA-5135.) (See Chron. item for Sept. 6, 1944, M. L. R. Dec. 1944.) The NWLB announced the adoption of a resolution providing for treat ing as “rare and unusual” the case of any foundry or forge shop whose name appears on a “blanket certification list” of critical foundries and shops to be supplied to the NWLB Committee on Regional Instructions jointly by the WPB and the WMC. In such cases the NWLB stated it would approve or grant average wage increases up to 10 cents above the established approvable rate. (Source: B-1896.) The President, by Executive order, authorized and directed the Secre tary of War to take possession of and operate the plants and facilities of Montgomery Ward & Co. in Chicago, Detroit, St. Paul, Portland (Oreg.), and certain other cities. The company had “refused to put into effect the terms and conditions in the directive orders of the NWLB settling labor disputes.” (Source: Federal Register, Vol. 9, p. 15079.) (See Chron. item for April 25, 1944, M. L. R. Sept. 1944.) The WPB announced the issuance of a new regulation authorizing “the withdrawal or modification of material priorities or allocations when the War Production Board determines that materials or facilities are not being used most effectively as a result of failure to comply with war manpower programs.” (Source: PM-4735.) The WMC, at the request of the Director of War Mobilization and Re conversion, announced the withdrawal of all employment ceiling authorizations for race-track operators. All such operators were ordered to cease operations by January 3, 1945, and not to resume operations until war conditions permit. (Source: PM-4738, and PM-4740.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Recent Publications o f Labor Interest A pril 1945 Cooperative Movement Annual report of operations \of] Federal credit unions, December 81, 1943. Washing ton 25, Federal Deposit Insurance Corporation, 1945. 21 pp., charts. 10 cents, Superintendent of Documents, Washington 25. Balance sheet and details of operation of credit unions chartered under the Federal Credit Union Act. Data are given by States and by type of membership. Report of the Administrator of the Rural Electrification Administration, 1944• St. Louis, Mo., 1944. 20 pp. Gives operating statistics of REA-finaneed systems and of the loan record of borrowers, and reviews court decisions relative to REA organizations and develop ments regarding taxation. Besides making loans for the installation of power lines and generating plants, REA has made loans for the financing of 21 cold-stor age locker plants. The Administrator estimates that some 5J4 million farm and nonfarm rural establishments can be electrified after the war; as of July 1, 1944, the total number of electrified farms was 2,557,000. Cooperative contracting in New 'Zealand. By Anthony E. C. Hare. (In Interna tional Labor Review, Montreal, February 1945, pp. 167-190. 50 cents. Distributed in United States by Washington branch of International Labor Office.) Describes the workers’ cooperative associations which take contracts for jobs on construction of public works and in mining, sawmilling, and various other in dustries in New Zealand. “The employer provides the necessary tools and equip ment and a detailed plan or specification of the work to be done, but does not supervise the workmen apart from seeing that the work is carried out according to the specification.” The article describes the method of work in certain of the industries in which the cooperative contracting is found, and gives statistics of number of men engaged on cooperative contracts in public works. Cooperative living in Palestine. By Henrik F. Infield. New York, Dryden Press, 1944. .192 pp., bibliography, illus. $3. Account of the cooperative communities (Kvutza) of Palestine, in which there is no private property (everything belonging to the group as a whole) and in which all participate in all the tasks, however menial. The author, who lived in various of these colonies for many months, describes how the work is divided; the methods of social control in the group; the effect of communal living on the family; the psychological, practical, and social problems; and the remarkable accomplishments of these communities in the reconstruction of some of the most barren parts of the country. La organ!zación cooperativa en la República de El Salvador en 1948: El sistema del crédito rural. By Alfonso Rochac. (In Boletín del Instituto de Investiga ciones Sociales y Económicas, Panamá, July 1944, pp. 289-349.) Deals with the development of rural credit unions in El Salvador from 1938, ' including information on the variety of their functions as consumer, production, and sale cooperatives, etc., and on the laws of 1942 and 1943, with statistics of membership and funds as of June 30, 1943. E d i t o r ’ s N o t e .—Correspondence regarding the publications to which reference is made in this list should be addressed to the respective publishing agencies mentioned. Where data cn prices were readily avail able, they have been shown with the title entries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 917 918 MONTHLY LABOR REVIEW— APRIL 1945 Cost and Standards of Living The American standard of living: Earning and spending our money. By Faith M. Williams and Mary P. Keohane. Washington 6, National Education Association, National Association of Secondary School Principals and National Council for the Social Studies, 1944. 60 pp., bibliography. (Problems in American life, Unit No. 19.) 30 cents. Contains convenient summaries of information relating to meaning of terms, family budget studies, national income, distribution of families by income, occupational and regional differences in income, and intercity differences in living costs. There is a section on wartime conditions as affecting cost and standards of living. Since the study was designed primarily for use in schools, the second part consists of teaching aids. Classification of consumer expenditures by income-elasticity. By Louis J. Paradiso. (In Survey of Current Business, U. S. Department of Commerce, Bureau of Foreign and Domestic Commerce, Washington 25, January 1945, pp. 7-10; chart. 20 cents, Superintendent of Documents, Washington 25.) The study is an attempt to classify expenditures on the basis of their relation ship to changes in income during the period 1929-42. Under "household opera tion,” for example, various items, such as fuel and utilities, are classified as "insensitive” to changes in income; certain other items, such as refrigerators and washing and sewing machines, are described as "somewhat sensitive” ; and still other items, such as furniture and domestic service, are classified as "sensitive.” Family food consumption in the United States, spring 194%. Washington 25, U. S. Department of Agriculture, 1944. 157 pp. (Miscellaneous publication No. 550.) 20 cents, Superintendent of Documents, Washington 25. Published as part of the study of family spending and saving in wartime con ducted by the U. S. Bureau of Human Nutrition and Home Economics in co operation with the U. S. Bureau of Labor Statistics. Family income in wartime: Third survey of consumer requirements, conducted April 17-22, 1944. Washington 25, U. S. War Production Board, Office of Civilian Requirements, Civilian Surveys Division, 1944. 46 pp.; mimeographed. Brazil overhauls her diet. By Allen Haden. (In Inter-American, Washington, February 1945, pp. 26-28; illus.) Account of the operation by the Brazilian Government of low-cost restaurants in Rio de Janeiro. Employment and Rehabilitation of Veterans Post-war migration plans of soldiers; Soldiers’ plans to own businesses after they leave the Army; Soldiers’ plans for farming after they leave the Army; Soldiers’ plans for Government jobs after they leave the Army. Washington 25, U. S. War Department, Army Service Forces, Information and Education Division, 1944 and 1945. Four pamphlets, 14, 16, 52, and 14 pp., respectively. (Post-war plans of the soldier series, reports Nos. B-128, B-130, B-131, and B -i32.) Four reports based on replies to inquiries addressed to officers and enlisted men regarding the section of the country to which they intend to return, and plans for owning a business, farming, or entering Government service, after their release from the Army. Reemployment of veterans (developing a company program). Washington 6, L Petroleum Industry War Council, 1944. 35 pp. * Designed, the preface states, "to stimulate thinking and to present practical suggestions regarding the development of policies which will insure sound and equitable treatment of returning veterans.” What industry wants to know about veterans: 3, The plant’s obligation. (In Factory Management and Maintenance, New York 18, February 1945, pp. 82-88; illus.) This article, the last of three reports concerning the reemployment of veterans by private industry, reviews plant procedures and makes recommendations with respect to fitting the discharged serviceman into civilian employment. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 919 You and. Joe and his job. San Diego 12, Calif., Pacific Coast Electrical Association, 1944. 61 pp. $1. Compilation of information concerning the rights and problems of returning servicemen and the obligations of employers. Jobs for G. I. Joe in America's hotels. New York 19, American Hotel Association, Public Relations Committee, 1944. 26 pp. Presents a program to help discharged servicemen jand servicewomen obtain employment in hotels, with special emphasis on job description and job require ments. Also outlines basic provisions of the legislation protecting the veteran and the official machinery for veteran placement. Veteran employment program, RCA Victor Division, [Radio Corporation of America], Camden, N. J ., plant: In the interest of veterans of World War II. Camden, N. J., Radio Corporation of America, RCA Victor Division, [1944?]. 25 pp. and forms; processed. Sets forth policies and procedures for the reemployment of former servicemen and servicewomen and gives a brief interpretation of the Selective Service Act and a brief analysis of the G. I. Bill of Rights. Apprentice training for veterans. Washington 25, U. S. War Manpower Com mission, Bureau of Training, Apprentice-Training Service, [1945]. 10 pp.; processed. Explanation of apprentice training as it applies to returning veterans, with lists of the Apprentice-Training Service publications and State apprenticeship agencies. Adjustment and reemployment guide and directory (of facilities and program for the training, education, adjustment, and reemployment of war veterans and dis placed war workers in Connecticut). Hartford, Connecticut Reemployment Commission, 1944. 80 pp. While this pamphlet emphasizes facilities available in Connecticut, it describes the programs and functions of various Government and private agencies of national scope. Suggestions for organization and activities of local reemployment and veterans' advisory committees. Hartford, Connecticut Reemployment Commission, 1944. 46 pp. The [British\ Army education scheme (release period). By C. H. Philips. (In Adult Education, Quarterly Journal of the British Institute of Adult Educa tion, London, W. C. 1, December 1944, pp. 68-74. Is. 6d.) Discusses the methods to be used in continuing the education scheme in the British Army during the period when men are being released. Administration is to be by units, under a full-time education officer in each case. Training is to range from basic education to independent work by those who already have a high standard of education. Report of the New Zealand Rehabilitation Board for year ended March 31, 1944. Wellington, 1944. 43 pp. Is. Describes New Zealand’s administrative machinery and program for returning former servicemen and servicewomen to civilian status. The program covers education, training for employment in industry and agriculture, settlement on farms, financial assistance, housing, and special provision for the disabled. Family Allowances Mid-war developments in civilian family allowances. By Mary T. Waggaman. Washington 25, U. S. Bureau of Labor Statistics, 1944. 16 pp. (Bull. No. 803, reprinted from Monthly Labor Review, November 1944; supple ment to Bull. No. 754.) 10 cents, Superintendent of Documents, Wash ington 25. The fam ily allowances controversy in Canada. By Charlotte Whitton. (In Social Service Review, Chicago 37, December 1944, pp. 413-432. $1.25.) Critical analysis of the Canadian Family Allowances Act, 1944. 636372— 45- -15 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 920 MONTHLY LABOR REVIEW— APRIL 194 5 Health and Industrial Hygiene Health research in industry. London, Medical Research Council, Industrial Health Research Board, 1945. 27 pp. 6d. net. Proceedings of a conference on industrial health research held at London School of Hygiene and Tropical Medicine in September 1944. The improvement in nutrition as protection against industrial toxicity. By W. E. Crutchfield, Jr. (In Milbank Memorial Fund Quarterly, New York 5, January 1945, pp. 97-108.) Shows the importance of diet in the prevention and treatment of certain types of industrial poisoning. Protecting the health of the industrial worker: Nutrition. By Robert S. Goodhart, M.D. (In Milbank Memorial Fund Quarterly, New York 5, January 194A pp. 77-88.) Deals with the organization, accomplishments, and major tasks ahead in the Government’s industrial feeding program. Dermatitis in the fish industry. By Louis Schwartz, M.D., and Irving R. Tabershaw, M. D. (In Journal of Industrial Hygiene and Toxicology, Baltimore 2, Md., January 1945, pp. 27-30. 75 cents.) The article describes various dermatological, conditions and their causes as well as methods of treatment and prevention of dermatitis, said to be the chief occupational hazard in the fish industry. Lead poisoning. By Abraham Cantarow and Max Trumper. Baltimore, Williams & Wilkins Co., 1944. 264 pp. $3. Covers both medical and industrial aspects of lead poisoning, preventive measures, and treatment. Report on the quartz crystal industry. By Harry F. Schulte. (In Industrial Medicine, Chicago, January 1945, pp. 68-71. 50 cents.) Describes health hazards (and their control) in the manufacture of quartz crystals for radio oscillators, an industry which has expanded greatly due to the requirements of the armed forces for communications equipment. Industrial Accidents and Workmen’s Compensation Coke-oven accidents in the United States, calendar year 1943. By W. W. Adams and V. E. Wrenn. Washington 25, U. S. Department of the Interior, Bureau of Mines, 1945. 20 pp., chart. (Technical paper 675.) 10 cents, Superintendent of Documents, Washington 25. Developing safe employees. New York 10, Metropolitan Life Insurance Co., Safety Bureau, Welfare Division, [1945?]. 46 pp., illus. Based on a study of accident-prevention activities in various industrial plants. Industrial safety and health—a bibliography, 1945 edition. Chicago 6, National Safety Council, Inc., 1945. 54 pp.; processed. Twenty-eighth annual report of United States Employees’ Compensation Commission, July 1, 1943, to June 30, 1944■ Washington 25, 1945. 56 pp. 15 cents, Superintendent of Documents, Washington 25. Report of operations under the several laws providing workmen’s compensation for injury or death of persons engaged in employments coming under Federal jurisdiction. An appendix gives brief excerpts from the unpublished twentyseventh annual report. Industrial Relations Guide to \U. £.] National War Labor Board policy. By Sidney D. Podolsky. Washington 2, Bureau of National Affairs, Inc., 1944. 79 pp. Compendium and analysis of the Board’s decisions which, in the opinion of the author, indicate the essence of Board policies. Report and findings of a panel of the National War Labor Board in certain disputes involving supervisors. Washington 25, U. S. National War Labor Board, 1945. 175 pp.'; mimeographed. Free. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 921 Utilization of foremen and supervisors—bibliography. Compiled by Amy R. Jennings. Washington 25, ü . S. National Labor Relations Board, Library, February 1945. 7 pp.; mimeographed. R here we stand on collective bargaining for engineers. By V. T. Boughton. (In Engineering News-Record, Albany 1, N. Y., February 8, 1945,-pp. 142-144. 25 cents.) Industry Reports Program for regional development of industry. Washington 25, U. S. War Pro duction Board, Office of Production Research and Development, 1944. 27 pp.; mimeographed. One of the purposes for initiating the program was to render technical collabo ration to labor unions for improving working conditions and earning powrer of State industries. Contracts and proposed contracts are listed by State. Statistical handbook of civil aviation. Washington 25, U. S. Department of Com merce, Civil Aeronautics Administration, 1944. 86 pp., .loose-leaf, maps, charts. Limited free distribution. Includes statistics of operations by years an d m onths, th e personnel em ployed, accidents, certification of a irc ra ft an d airm en, etc., wdth some te x t discussion. Economic problems of préfabrication. By S. Moos. (In Bulletin of Institute of Statistics, Oxford, England, September 2, 1944, pp. 202-208. 2s. 6d.) Deals with the technical and economic sides and methods of coordinating prefabricated and other construction. Stabilizing the construction industry. By Miles L. Colean. Washington 6, National Planning Association, 1945. 38 pp., charts. (Planning pamphlet No. 41.) 25 cents. One of a series of reports on policy problems related to the attainment of full employment. A proposed policy in the general field of construction is outlined. There is a section on the problem of annual wages in the construction industry. Lumber and labor. By Vernon H. Jensen. New York, Farrar & Rinehart, Inc., 1945. 314 pp., bibliographies. $3. Story of the lumbering industry in the United States and of the efforts to unionize it. Describes the interunion conflicts, industrial struggles, and impact of the war upon this migratory, frontier industry. Fifth in the series on “Labor in Twentieth Century America” by the same publishers. Labor and Social Legislation Kentucky labor laws, revised 1944- Frankfort, Department of Industrial Relations, [1944?]. 35 pp. Compilation of Kentucky labor laws on emplo 3mr-employee relationships but not including legislation concerning unemployment or workmen’s compensation. Laws affecting veterans and their dependents, [Connecticut], Rocky Hill, Conn., Veterans’ Home Commission, 1944. 126 pp. [Addendum and second addendum to the code of Canadian labor laws of 1943. Edited by Gustave Francq.] Montreal, Mercantile Printing Co., Ltd., [1944?]. 78 and 28 pp. (In French and English.) Includes the Canadian National Selective Service Civilian Regulations as consolidated with amendments to December 2, 1943; the Wartime Wages Control Order of December 9, 1943; the Wartime Labor Regulations of February 17, 1944; and the Quebec Labor Relations Act of February 3, 1944. Ley del trabajo a domicilio {No. 12,713), [Argentina], By Carlos R. Desmar&s. Buenos Aires, Editorial Guillermo Kraft Ltda., 1942. 2 vols., 336 and 371 pp. Presents an analysis, article by article, of the Argentine law governing home work, parliamentary discussion and judicial interpretation of the measure, and pertinent regulatory decrees for its implementation. Direito Brasileiro do trabalho. By Arnaldo Sussekind, Dorval de Lacerda, and J. de Segadas Viana. Rio de Janeiro, Empresa “A Noite,” Livraria Jacinto, 1943. 2 vols., 627 and 743 pp. This treatise on Brazilian labor legislation, by the authors of the bill for the consolidation of laws for protection of labor, contains the text of the consolidation adopted in May 1943, with an annotated account of the legal background of each of its major topics and explanation of its provisions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 922 MONTHLY LABOR REVIEW— APRIL 1945 Aspectos teóricos y prácticos de los riesgos profesionales. By Oscar Barahona Streber and Harry Zurcher Acuña. San José, Costa Rica, [Banco Nacional de Seguros?], 1943. 152 pp. Commentary upon that section of the labor legislation of Costa Rica that deals with workmen’s compensation for industrial accidents and diseases.. A gvide to the law and legal literature of Cuba, the Dominican Republic, and Haiti. By Crawford M. Bishop and Anyda Marchant. Washington 25, U. S. Library of Congress, 1944. 276 pp. (Latin American series No. 3.) $1.75. First in a series of guides to the law and legal literature of the Latin American republics to be issued by the Law Library of the Library of Congress. Includes references to compilations of labor legislation and cites important labor laws of the three countries. Labor Organizations and Their Activities Democracy and the free labor movement. Washington 1, American Federation of Labor, [1944?]. 20 pp. Labor in America. By Harold U. Faulkner and Mark Starr. New York, Harper & Bros., 1944. 305 pp., bibliography, illus. $1.60. The aims, methods, and problems of American trade-unions are set forth in non technical language. The book is primarily intended for use as a high-school textbook. Report of proceedings at the 76th annual [British] Trades Union Congress, held at Blackpool, October 16-20, 1944- London, Trades Union Congress, [1944?]. 548 pp. In addition to the proceedings of the conference, the general council’s report is given. Appendixes contain reports on trade-union structure and closer unity, the Government’s White Papers on social insurance and a national health service, the Anglo-Soviet trade-union committee, and the Trades Union Congress’ interim report on post-war reconstruction. Report of the 17th national delegate conference of the Amalgamated Union of Building Trade Workers of Great Britain and Ireland, held at Morecambe, September 19-22, 1944- London, Amalgamated Union of Building Trade Workers, [1944?]. 263 pp. The unionization of foremen. New York 18, American Management Association, 1945. 36 pp., bibliography. (Research report No. 6.) $1.25. Part 1 of a study of the foreman’s role in industry. Occupations and Occupational Adjustment Classification of jobs in small companies. By Robert D. Gray. Pasadena 4, California Institute of Technology, Industrial Relations Section, 1944. 43 pp. (Bull. No. 5.) $1. How you can get a better job. By Willard K. Lasher and Edward A. Richards. Chicago, American Technical Society, 1945. 206 pp. $1.50. This popularly written volume is in four parts entitled, respectively, The human element, Self-management, Selling yourself, and Getting ahead. Vocational interests and job orientation— a ten-year review. By Harold D. Carter Stanford University, Calif., Stanford University Press, 1944. 85 pp. (Applied psychology monographs of American Association for Applied Psychology, No. 2.) $1.50. / Survey of the major psychological studies of the last 10 years dealing with problems of vocational orientation. A list of the 262 studies referred to in the report is appended. Industrial and occupational trends in New York State. By Edmund H. Crane. Albany, University of the State of New York, 1944. 45 pp., charts. (Bull. No. 1271.) Post-War Reconstruction Post-war planning. Washington 25, IT. S. Treasury Department, Library, November 30, 1944. 75 pp.; mimeographed. Bibliography of materials on economic, labor, social, and other topics relating to post-war reconstruction in the United States and foreign countries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 923 Post-war problems and policies. By E. A. Goldenweiser. (In Federal Reserve Bulletin, Board of Governors of the Federal Reserve System, Washington 25, February 1945, pp. 112-121. 20 cents.) Among the policies included in a proposed comprehensive program is the maintenance of the income of wage earners by wage adjustments to take account of increases in cost of living, with further increases as productivity rises. It is proposed also that the Government should guarantee to every American a mini mum standard by expanding the social-security program and by affording jobs to workers who are otherwise unable to obtain work. Post-war public works programs. Chicago 37, Council of State Governments, 1944. 31 pp.; mimeographed. (BX-243.) 50 cents. Summary of the accomplishments of the States in the preparing of advance plans, including financial plans, for a public-works reserve. Some legislation bearing on the subject is included. Reconversion policies and problems. New York 18, American Management Association, 1945. 31 pp. (Production series, No. 155.) Includes a discussion of the post-war labor outlook. Reconversion problems in the Buffalo industrial area. Washington 25, U. S. Bureau of Labor Statistics, 1945. 20 pp. (Bull. No. 804; reprinted from Monthly Labor Review, December 1944.) 10 cents, Superintendent of Documents, Washington 25. Reviews the wartime manpower and production situations as well as reconversion plans and prospects of industrial plants in the area. Report and recommendations, for the period ending December 31, 1944> of the Cali fornia State Reconstruction and Reemployment Commission. Sacramento 14, 1945. 122 pp. Describes the effects of the war on California, discusses economic problems and opportunities, including post-war employment and the raising of the standard of living, and outlines briefly the Commission’s pending studies and reports. Post-war reconstruction in New Zealand. Washington 25, U. S. Bureau of Labor Statistics, 1945. 9 pp. (Serial No. R. 1720; reprinted from Monthly Labor Review, January 1945.) Free. ( ) Social Security General Ninth annual report of the Social Security Board, fiscal year 1943-44. Washington 25, 1944. 82 pp., charts. (Section 5 of annual report of Federal Security Agency.) 15 cents, Superintendent of Documents, Washington 25. In presenting an analysis of the year’s work and of unmet needs in present systems of old-age and survivors insurance and unemployment insurance in the United States, the Social Security Board also recommended the adoption of disability and sickness insurance (including medical care), and of a single, com prehensive national system of social insurance (with decentralization of adminis tration at local levels) supported by contributions from employers, employees, and the Federal Government. Climbing tovjard security. By Rachel Rowe Swiger and Olaf F. Larson. Wash ington 25, U. S. Department of Agriculture, Bureau of Agricultural Eco nomics, 1944. 65 pp.; mimeographed. A study of experience, over a period of 4 years, in efforts to rehabilitate a group of needy rural families, who are described as having been too poor even to qualify for help under the regular program of the Farm Security Administration. Problems of labor health security in a tax-maintained system of health insurance—a workbook for the classroom and for discussion groups. By Alfred J. Asgis. New York 17, Health Council Institute, 1944. 54 pp., bibliographies; processed. The medical-care provisions of the Wagner-Murray-Dingell social security bill: An analysis of the report of the American Bar Association. (In Lawyers Guild Review, New York and Washington, November-December 1944, pp. 24-33. 50 cents.) Documented defense of the medical-care provisions of the bill, under the heads of need, constitutionality, the private practice of medicine and the authority of the Surgeon General under the bill, and other related subjects. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 924 m o n th ly labor review — april 1945 Sickness indemnification. A panel discussion by R. A. Hohaus and others. Pittsburgh 13, Industrial Hygiene Foundation, 1945. 55 pp., charts. (Transaction series, Bull. N o.’ l; Part II of proceedings of ninth annual meeting of Industrial Hygiene Foundation, November 1944.) 50 cents. Régimen jurídico de las jubilaciones, retiros y pensiones de la República Argentina. By Juan D. Ramírez Gronda. Buenos Aires, Editorial Ideas, 1943. 574 pp. Annotated text of Argentine legislation, through March 17, 1943, governing eight social-insurance schemes for the country as a whole and one each for the Province and the city of Buenos Aires, with pertinent court decisions and explana tions and comparisons of the various schemes. Legislagao Brasileira de previdencia social. (In Boletim do Ministério do Trabalho, Industria, e Comércio, Rio de Janeiro, September 1944, pp. 335-344.) List of the Brazilian law's and decrees through February 29, 1944, providing social insurance for workers in 9 industrial groups, chronologically arranged by industry, with the text of the first such Brazilian decree, that of January 24, 1923, for workers on privately owned railways. Income tax in relation to social security. By A. T. Haynes and R. J. Kirton. (In Journal of the Institute of Actuaries, Vol. LXXII, Part 1, No. 333, London, 1944, pp. 79-103; abstract of discussion, pp. 104-118. 6s. net.) Proposals for reform of the British personal-income-tax system and correlation of income taxes and social-security payments. Wages and Hours of Labor Clerical salary rales paid in October 1944- (In" Conference Board Management Record, National Industrial Conference Board, Inc., New York 17, Januarv 1945, p. 8.) Data by occupation for 20 cities of the United States. Wages and production costs. New York 18, American Management Association, 1945. 44 pp. (Production series, No. 159.) Discussions by representatives of management, wdth a union view of cost reduction presented by a representative of the International Ladies’ Garment Workers’ Union. Wage incentive practices. New York* 17, National Industrial Conference Board, Inc., 1945. 44 pp., charts. (Studies in personnel policy, No. 68.) Summary of developments in this field, including a discussion of U. S. National War Labor Board principles and decisions. The study is devoted mainly to a survey of the plans of selected companies. There is a section on union-contract provisions. Payment by results, essential work (building and civil engineering) order, 1942: Notes for guidance on the application of the system. London, Ministry of Works, 1944. 6 pp. Id. net. Written in question and answrer form, this pamphlet show's how the piece-rate system operates in the building and civil engineering industry of Great Britain. Women in Industry Changes in women’s employment during the war. By Mary Elizabeth Pidgeon. Washington 25, U. S. Department of Labor, Women’s Bureau, 1944. 29 pp. 10 cents, Superintendent of Documents, Washington 25. Employment opportunities in characteristic industrial occupations of women. By Elisabeth D. Benham. Washington 25, U. S. Department of Labor, Women’s Bureau, 1944. 50 pp. (Bull. No. 201.) 10 cents, Superintendent of Documents, Washington 25. Employment of women in Army supply depots in 1943. Washington 25, U. S. Department of Labor, Women’s Bureau, 1945. 33 pp. (Bull. No. 192-8.) 10 cents, Superintendent of Documents, Washington 25. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECENT PUBLICATIONS OF LABOR INTEREST 925 The outlook for women in occupations in the medical services: Physical therapists. Washington 25, U. S. Department of Labor, Women’s Bureau, 1945. 14 pp. (Bull. No. 203, No. 1.) 10 cents, Superintendent of Documents, Washington 25. Other reports in this series already published or in course of publication deal with the following occupations: Medical laboratory technician; medical record librarian; occupational therapist; practical nurse; and professional nurse. War and post-war employment and its demands for educational adjustments. New London, Conn., Institute of Women’s Professional Relations, 1944. 226 pp.; processed. $2. Proceedings of a conference, arranged by the Institute of Women’s Professional Relations, held in Washington, D. C., in May 1944. Women’s wages in wartime. Washington 25, U. S. Department of Labor, Women’s Bureau, November 1944. 10 pp. Supplement, February 1945, 10 pp. Mimeographed. Free. The job of the industrial counselor for women. By Frances W. Trigg. Washington 25, Federal Security Agency, Office of Education, 1944. 34 pp.; processed. Prepared to meet the need for a simple and orderly presentation of information for women’s counselors who are obliged to assume new responsibilities for which they have had little preliminary training. General Reports Improvement of labor-utilization procedures. Washington 25, U. S. Bureau of Labor Statistics, 1945. 44 pp. (Bull. No. 807.) 10 cents, Superintendent of Documents, Washington 25. Subjects discussed include absenteeism, labor turnover, employment of women, wage structure, supervision, employee morale, etc. Normal production, income, and employment, 19j5 to 1965. By Clark Warburton. (In Southern Economic Journal, Chapel Hill, N. C., January 1945, pp. 219245; charts. $1.) The author’s estimates of production, value of finished commodities, and the value of delivered final products, extending from 1879 to 1943, make use of the period from 1923 to 1928 as to production and prices, and the data for that period are projected backward, and also forward to 1965, by the use of average annual percentage increases. Estimates of “normal” employment are also given for the years 1945 to 1950 and for 1955, 1960, and 1965. The estimates are not predic tions but are based on certain assumptions, and it is argued that the actual achievement of “full employment” depends basically on monetary,policy, and the encouragement of investment and business venturesomeness. Index to publications and articles on Latin America issued by the United States Bureau of Labor Statistics, 1902-jS. Prepared by Eugene D. Owen. Wash ington 6, Pan American Union, 1945. vi, 39 pp.; mimeographed. (Biblio graphic series No. 31.) Latin America in the future world. By George Soule, David Efron, and Norman T. Ness. New York, Farrar & Rinehart, Inc., 1945. 372 pp., charts. _ $3.50. The writers examine Latin America’s basic economy and changes during the present war, and recommend policies and specific measures for the post-war period. Subjects given special emphasis include living levels, nutrition, health, and housing. There is a chapter on the social and political status of labor and one on labor and social-security legislation. Argentine riddle. By Felix J. Weil. New Aork, John Day Co., 1944. 297 pp. $3.50. Topics of labor interest include the standard of living of industrial and agri cultural workers, labor unions, and industrialization. Mensaje del Excelentísimo Señor Presidente de la Nación [Argentina], General Edelmiro J. Farrell, y memoria del primer año de labor. Buenos Aires, 1944. 252 pp. , . Report on operation of the Argentine Government in the year following the revolution of June 1943. The account of the Secretariat of Labor and Melfare cites activities and contemplated action in regard to workers’ housing, social_ wel fare, and legislation, with statistics of strikes and index numbers of cost of living and employment. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 926 MONTHLY LABOR REVIEW— APRIL 1945 Report to the Congress of Industrial Organizations on labor conditions in Bolivia By Martin I\yne. (In Bolivia, Vol. X, No. 21, 10 Rockefeller Plaza, New York, autumn-winter 1944, pp. 14-20; illus. 25 cents.) Summarizes findings of the commission of experts sent from the United States to Bolivia, at the request of the Bolivian ambassador, to study working conditions in that country and to work out jointly with Bolivian authorities methods of improving the situation of the workers. Informe a la nación, Junio y Julio de 1944, [del Ministro de Previsión Social y Trabajo, Ecuador], Quito, 1944. 75 pp. This report of the Ecuadoran Minister of Welfare and Labor for June and July 1944 (the first two months after the revolution of May 1944) includes a brief account of each of the principal labor disputes, with Government measures taken for their settlement, and information on workers’ organizations and the National Workers’ Congress. Axis rule in occupied Europe. By Raphaël Lemkin. Washington 6, Carnegie En dowment for International Peace, 1944. xxxviii, 674 pp. $7.50. Considerable space has been given to labor, including such aspects as control, procurement, and vrages. Administration report of the Controller of Labor, Ceylon, for 1943. Colombo, 1944. 46 pp. 95 cents, Ceylon currency. Contains information on labor organizations, industrial disputes, employment, wages, and related labor matters. Statistical report on prices, wage rates and hours of labor, unemployment, industrial accidents, etc., [in New Zealand], for the year 1941. Wellington, Census and Statistics Department, 1944. xiv, 137 pp. 5s. Report of the commission appointed to inquire into the administration and finances of native locations in urban areas of Northern Rhodesia. Lusaka, Government Printer, 1944. 53 pp. 2s. Summarizes census statistics of population and surveys the housing situation, as a basis for the concrete proposals offered respecting the future location and housing of natives. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U. S. GOVERNMENT PR IN T IN G O F F IC E : 1945