View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

AUGUST 1945

IN THIS ISSUE
>w

Health Benefits Under Collective Bargaining
National Budget and Full Employment
Wartime Productivity Changes in Airframe Industry
Wartime Employment in Cotton-Duck Manufacture
Earnings and Wage Practices in Municipal Employment
Wartime Developments in Workers’ Education

UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

UNITED STATES DEPARTMENT OF LABOR
L. B. S c h w e l l e n b a c k , Secretary
♦
BUREAU OF LABOR STATISTICS
I sador L u b in , Commissioner (on leave)

A. F. H in r ic h s , Acting Commissioner
H e n r y J. F itzgfrald , Chief, Business

Management Branch
Eitorial and Research (vacancy)
W alter G. K e im , Director of Field
Operations
H ugh B. K illo u g h , Chief, Em­
ployment and Occupational Outlook
Branch

N. A rnold T ollés , Chief, Working
Conditions and Industrial Relations
Branch
A r y n e ss J oy W ic k e n s , Chief, Prices

and Cost of Living Branch
J ohn H. S m ith , Acting Chief Statisti­

cian

J ohn H. G. P ie r s o n , Consultant on Postwar Employment Policy
F a ith M. WTlliam s , Consultant on Costs and Standards of Living
H erm an B. B y e r , Assistant Chief, Employment and Occupational Outlook Branch
L e st e r S. K ellogg , Assistant Chief, Prices and Cost of Living Branch
d iv isio n s

Construction and Public Employment,
Hersey E. Riley
Consumer’s Prices, Ethel D. Hoover
Cost of Living, Dorothy S. Brady
Employment
Sturges

Statistics,

Alexander

General Price Research (vacancy)

Industrial Relations, Florence Peter­
son, Assistant Chief, Working Condi­
tions and Industrial Relations Branch
Labor Information Service, Boris Stern
Machine Tabulation, Joseph Drager
Occupational Outlook, Charles Stewart

Industrial Hazards, Max D. Kossoris

Productivity and Technological De­
velopment, W. Duane Evans

Industrial Prices, Jesse M. Cutts

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 staffs 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 turn-over, and industrial
accidents.
The M o nthly L a bo r 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, $3.50, other
countries, $4.75.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS

C O N T E N T S

AUGUST 1945, Vol. 61, No. 2

Special articles:

Page

Health-benefit programs established through collective bargaining..
The national budget as an aid in reducing deficits under assured full
employment__________________________________________________
Wartime productivity changes in the airframe industry------------------

191
210
215

Employment conditions:
Wartime employment in cotton-duck manufacture-----------------------Wartime expansion in the labor force-------------------------------------------Betterment of conditions of migrant workers in New Jersey and
New York_____________________________
Employment conditions in Belgium in spring of 1945--------------------Employment conditions inDenmark, June 1945---------------------------Effect of war on labor and productivity in central and southeastern
France_______________________________________________________

226
234
236
237
240
240

Productivity of labor and industry:
Wartime productivity changes in the airframe industry-------------------

215

Wartime policies:
Price control in Canada_________________________________________
Extraordinary War Measures Act of Japan---------------------------------Increased flexibility of New Zealand stabilization regulations--------

243
254
255

Postwar reconstruction:
Australian full-employment policy----------------------------------------------National Economic Planning Commission for Brazil— ----------------

257
260

Discharged soldiers:
Aid to veterans returning to farms_______________________________

262

Social security:
Health-benefit programs established through collective bargaining. _
British unemployment insurance fund in 1944-------------------------------

191
263

Industrial injuries:
Work injuries in breweries during 1944----------------------------------------

264

Industrial relations:
Health-benefit programs established through collective bargaining. _
Peruvian agricultural-labor contract-------------------------------------------

191
273

Industrial disputes:
Strikes and lock-outs in June 1945---------------------------------------------Activities of U. S. Conciliation Service, May 1945------------------------

274
278

Labor organizations:
A. F. of L. antidiscrimination program---------------------------------------Fusion of labor organizations in Belgium_________________________
Labor-union membership in Bulgaria,May 1945----------------------------Worker and employer organizations in Ireland, 1938-44-----------------Policy of Italian General Confederation of Labor--------------------------
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

i

279
279
281
281
282

ir

CONTENTS

Labor laws and decisions:
State legislation on compensation for second injuries______________
Recent decisions of interest to labor____________________________
Labor law of Colombia, 1945___________________________________

Page
284
288
293

Women in industry:
Postwar employment prospectsfor practical nurses_________________
Wages and hours of women in retail trade in New York, 1944_____

298
299

Education and training:
Wartime developments

inworkers’ education____________________

301

Wage and hour statistics:
Earnings and wage practices in municipal governments of 15 cities,
1944--------------------------------------------------------------------------------------Trend of factory earnings, 1939 to May 1945______________________
India—Employment and annual earnings in selected factories, 1943__
Italy—Wage rates in central and southern regions, 1939-45________
New Zealand-—Wage rates and hours of railroad workers, 1945___
Venezuela—Earnings of foreign employees of oil companies in
Maracaibo, 1945______________________________________________

319
333
335
335
338
339

Wage and hour regulation:
Virgin Islands wage order under Fair Labor Standards Act________

340

Cost of living and retail prices:
Cost of living in large cities, June 1945__________________________
Retail prices of food in May and June 1945______________________
Supplies of food in independent retail stores, June 1945____________

341
348
352

Wholesale prices:
Wholesale prices in June 1945___________________________________

354

Labor turn-over:
Labor turn-over in manufacturing, mining, and public utilities, May
1 9 4 5 . . . . . . -----------------------------------------------------------------------------

360

Building operations:
Building construction in urban areas, June 1945__________________

366

Trend of employment, earnings, and hours:
Summary of employment reports for June 1945_______ __________
Industrial and business employment________________________
Public employment_________________________________________
Employment in shipyards___________________________________
Construction employment__________________________________
Detailed reports for industrial and business employment, May 1945:
Nonagricultural employment________________________________
Industrial and business employment__________________________
Indexes of employment and pay roll_____________________
Average earnings and hours______ ________________________
Trend of factory earnings, 1939 to May 1945______________________
Civilian labor force, June 1945________________________ 1 _________
Labor conditions in Latin America ______________________ 260, 273, 293,

Recent publications of labor interest______


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

370
37O
371
372
373
375
376
376
334
333
3gg
339
390

This Issue in Brief

Health-benefit programs under collective bargaining
During recent years labor unions in increasing number are seeking to have
health-benefit plans included in the terms of their agreements with employers.
Most of such plans now in effect are financed entirely by the employer, although
some unions favor the policy of having employees contribute toward the payment
of premiums. In a majority of cases the health-benefit programs are underwritten
by private insurance companies. A description of the plans provided in employerunion agreements covering more than 600,000 workers is given on page 191.

National budget and full employment
Cooperation between opposing schools of thought should be possible as long
as it is agreed that full employment should be definitely assured. The policies
required consist of (a) basic policies to minimize long-run deflationary tendencies,
and hence budget deficits, and (b) compensatory fiscal policies to “close gaps.”
Assuming existence of the latter policies, the problem is to reduce the need to rely
upon them by systematically developing basic policies. The full-employment
national budget invites attention to the specific points at which the effects of
a given basic policy would be felt and to the probable or possible order of magni­
tude of such effects. It thus provides a method whereby desirable basic policies
may be more easily identified. Since quantitative precision presumably is out
of the question even under the “laboratory” conditions suggested, compensatory
fiscal policies must still be available if full employment is not to be left to take
its chances. Page 210.

Wartime productivity changes in the airframe industry
Airframe output per man-hour tripled during the 3 years following entry of the
United States into the war. Most of the increase occurred in 1943, after effects
of many factors which impeded advance during 1942 had been reduced or elimi­
nated. " In 1944, a decline in productivity followed recessions in both employ­
ment and production. Specialization of labor, machinery, and tools characterized
the wartime expansion of the industry. In individual plants, man-hours required
per pound of airframe for given models declined on the average about 30 percent
with each successive doubling of cumulative production. When the huge pro­
duction of standardized models stops at the end of the war, productivity is expected
to decline from the wartime peak but remain above prewar levels. The industry
will undoubtedly provide more employment after the war than before, but since
a large part of postwar output will be light civilian aircraft, for which unit labor
requirements are much lower than for combat planes, it will probably be many
years before employment regains the wartime level. Page 215.

Wartime employment in cotton-duck manufacture
The movement in employment among the cotton-duck mills late in 1944 and
the first 3 months of 1945 suggests that mill labor forces may be fairly well stabi­
lized after more than 2 years of steady decline. The shift in the war’s emphasis to
the Pacific, however, will tend to increase rather than reduce military requirements
for cotton duck. Current estimates indicate that production for the first three
quarters of 1945 will fall 25 percent below stated requirements. Insufficient man­
power continues to be the major obstacle despite various expedients. Page 226.

Wartime expansion in the labor force
The increase in the labor force during the war has exceeded norma] peace­
time expectations by approximately 7,300,000 persons. Teen-age boys and girls
have been the largest single source of additional wartime labor supply. Most of


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

in

IV

T H IS ISSUE IN BRIEF

the increased labor-market participation among adult women occurred in the
group over 35 years of age, as the rise in marriage and birth rates exerted a strong
downward pull on the labor-market activity of young women. Young service
wives, however, have contributed a substantial number of extra wartime workers.
Among adult mec, extra workers have been recruited from persons past normal
retirement age, occasional workers, and men on the borderline of emplovabilitv
Page 234.

Migrant Labor Act of New Jersey
The New Jersey Legislature recently passed an act the purpose of which is to
improve the working and living conditions of migratory workers in that State
The resources of the various State agencies are to be coordinated to insure to
these workers improved living accommodations, health service, protection of
State labor legislation, education facilities for their children, and various welfare
aids. Page 236.

Full-employment policyr of Australia
The Australian Government has responsibility for providing a general frame­
work of a full-employment economy within which private operations of both
companies and individuals may be carried on. In the White Paper on full em­
ployment it was stated that, in peacetime, full employment is to be a fundamental
aim of the State. Improved nutrition, rural amenities, social services, more
housing, factories, and other capital equipment, and higher standards of living
are objectives that are generally agreed upon and toward which all governments
may strive to the limits of their resources. No place exists in the Australian fullemployment program for made work. Both Commonwealth and State govern­
ments should act when private spending is insufficient to sustain full emplovment. Page 257.
J

Work injuries in breweries during 1914
That accidents constitute a major problem in the manufacture of beer is
indicated by an analysis of work injuries in the industry by the Bureau of Labor
Statistics. For 1944 the injury-frequency rate in the industry was 46 2 per
million hours worked, as compared with a rate of 18.8 for all manufacturing in­
dustries combined. About 1 employee of every 10 workers employed in the
brewery industry sustained a disabling injury in 1944. Page 264.

State legislation on compensation for second injuries
Considerable progress was made, during the 1945 sessions of the State legisla­
tures, m the establishment of second-injury funds in connection with workmen’s
compensation legislation. These funds relieve the employer of part of the
compensation cost when an employee, who has previously sustained the loss
of a specific member of his body, incurs another injury resulting in permanent total
disability. Thus, under most of these laws, the employer is liable only for the
second ihjury, and the fund compensates the worker ‘for the balance due for
permanent total disability. As a result of legislation enacted this year 32 States
now have second-injury funds. Page 284.

Wartime developments in workers' education
Increases in the labor force and in labor-union membership since the beginning
of the war have posed new problems in workers’ education for labor organizations
Such organizations have broadened their programs and objectives in order to
assimilate and educate the new members and to improve the training of union
leaders. IVIany educational mediums have been utilized for these purposes
Some of these developments are given in the article on page 301.

Earnings and wage practices in municipal governments, 1944
An experimental study of earnings and wage practices was undertaken by the
Bureau of Labor Statistics in 15 cities, covering municipal employees in 74
occupations. Of these cities 12 had job-classification systems, and all but 3 had
civil service systems. Considerable variation in earnings was found, not only
between cities but between occupations in the same city. Page 319. ’


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]
1944

1945
Item

Unit or base
period

1939:
average
for
year

June

M ay

April

June

Thousands
____do_____
___ do_____
_ _ _do___ _
____do____ _
____do_____
___do. .
____do_____
_ ___do_____
____do___ _

53,070
34,350
18,720
51,990
33, 770
18,220
42,900
9, 090
1,080
37,495

52,030
33,790
18,240
51, 300
33,360
17,940
43, 350
7, 950
730
37, 632

51,930
33, 840
18, 090
51,160
33,410
17, 750
43,410
7, 750
770
37, 797

54, 220
35, 540
18, 680
53, 220
35, 040
18,180
43, 660
9,560
1,000
38,846

3 54,230
2 40,950
213, 280
2 46,930
2 35, 600
2 11,330
2 37,430
2 9, 500
2 7, 300
30,353

___ .d o _____
___do_____
_ __do_____
____do_____
___ do___ __
_ do__ __
___ do_____

14, 573
791
810
3,840
6, 968
4, 560
5,953

14,810
728
769
3,800
7, 023
4,496
6,006

15,102
761
699
3, 792
6,996
4,444
6,003

16,093
844
691
3,803
6,977
4, 542
5,896

10,078
845
1,753
2,912
6,618
4,160
3,988

___ do_____

12, 300

12, 200

12,100

11,400

362
8,192
371
988

Employment and unemployment
Mai ft
________________ —
Female
_______ _ ____ __
F m p lo v ed 3
________ _ _____
Malft
______ _______ - -Female
______ __________
"Notiagricultural
_________
Agricultural
___ __ ___ ____
Unemployed
_________ _____ _
Civilian employment in nonagricultural
establishments: Total.3
M armfact n ring
_______ _______
Mining
_______________ —
___
____
Construction *
Transportation and public utilities --Trade
______________________
Finance service, and miscellaneous
Federal,7State, and local government,
excluding Federal force-account
construction.
Military personnel
______________
Production-worker em ploym ent:5
Manufacturing
_______________
"Ritumi nous-coal mining
__ - __
Class I steam, railroads, including
salaried employees (ICC).
TTirod farm workers (B A E )____ - ___

___ do_____
do _____
____do. __ __

12, 201
330
1,454

12,405
329
1,427

12, 678
305
1,421

13, 610
356
1,447

____do_____

2,357

1,864

1, 660

2,440

3 3,099

40.7

44.1
41.7
39.4
39.3

45.1
36.6
39.8
40.0

7 45.3
7 44.0
7 39.9
40.2

37.7
27.1
43.0
32.4

$54.10

$46.03
$53.32
$27.56
$53. 64

$47.12
$43.44
$27.69
$54.42

7 $46.02
7 $51. 66
7 $26. 29
$52.21

$23.86
$23.88
$21.17
$30.24

$1,330

$1.043
$1,265
$0. 764
$1.366

$1. 044
$1. 183
$0. 764
$1.361

7 $1.017
7 $1. 175
7 $0. 729
$1.300

$0. 633
$0.886
$0. 536
$0. 933

$0. 977
$0.908

$0. 971
$0. 899

7 $0.944
7 $0.867

$0. 622
$0.622

$4.12

3 $4.06

3 $1. 59

* 17.0

9 19.3

15. 4

6.9
4.7
1. 2
4.9

0.6
4.8
0.8
4.7

7 7.1
7 5.3
7 0.5
7 0.4

7 3. 5
7 0.7
7 2. 7
7 3.3

485
292

425
310

450
285

441
145

218
98

1,725
0. 23

2,025
0.26

1, 330
0.18

727
0.09

1,484
0. 28

Hours and earnings
Average weekly hours:
Manufacturing
_______ - __Hours... . .
Bituminous-coal mining
____
do .
- ____ ____do____ .
■Retail tr a d e _________ _
Rnilding construction (private)______
do
Average weekly earnings:
Manufacturing
_____________ ___
Ri tn mi nous-coal mining
Retail trade
_ _________ ____
Ruilding construction (private)_____
Average hourly earnings:
M anufacturing..................... ......... ...........
Retail trade
_ _ __ . __ ______
Ruilding construction (private)_ - -Average“straight-time hourly earnings
in manufacturing, using— _
Current employment by industry.
Employm ent by industry as of
J anuary 1939.

3 $4. 48

out board (B AE).
Industrial injuries and labor turn-over
Industrial injuries in manufacturing, per
million man-hours worked.
Labor turn-over per 100 employees in
manufacturing:
Total separations
__ _
Quits
______ ___ _____
Lay-offs
___________ _ . ... ..
Total accessions
________
__
Strikes and lock-outs
Strikes and lock-outs beginning in month:
Num ber. .. . . . . ------- -- -----------Thousands.
. Number of workers involved__
All strikes and lock-outs during month:
___ do. . . .
Number of man-days idle
_
Man-days idle as percent of available
working time. „

See footnotes at end of table.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

VI

CURRENT LABOR STATISTICS
Current Statistics of Labor Interest in Selected Periods 1— Continued

Item

1945

Unit or base
period
June

M ay

1944
April

June

1939:
average
for
year

Cost of living and prices
Cost-of-living index (wage earners in large
cities): All items.'9
Food____ __________ . . . ................. ..
Clothing_______________ __ ______
R e n t.__ ___________
.. .
Fuel, electricity, and ice_____ ______
Housefurnishings.. . _ ______ . . . . .
M iscellaneous.___ _ . ______
Retail food price index (large cities): All
foods.
Cereals and bakery products___ . . . .
M ea ts.. ___ ______ _____ _
. _
Dairy products.. . _______________
Eggs---------------------------------------------Fruits and vegetables.. _______ ____
Beverages. _______________________
Fats and oils_________________ ____
Sugar and s w e e ts ... _. ________ . . .
Wholesale price index: All com m odities..
All commodities other than farm
products.
All commodities other than farm
products and foods.
Farm products___
.
. . .
Foods_________________________
__

1935-39=100.

129.0

128.1

127.1

125.4

99.4

1935-39 = 100.
1935-39=100.
1935-39=100
1935-39=100.
1935-39 = 100.
1935-39=100.
1935-39=100.

141.1
145.4
108. 3
110.0
145.8
124.0
141.1

138.8
144.6

136.6
144.1

110.0
145.4
123. 9
138.8

109.8
144.9
123.8
136.6

135.7
138.0
ms i
109.6
138.4
121.7
135. 7

95.2
100.5
104 3
99.0
101.3
100.7
95.2

1935-39=100.
1935-39 = 100.
1935-39=100.
1935-39=100.
1935-39 = 100.
1935-39 = 100.
1935-39 = 100.
1935-39=100.
1926=100...1926=100---.

109.1
131.6
133. 4
145.1
192.6
124.6
123.9
126.4
106.1
100.7

109.0
131. 7
133.5
140.7
182.5
124.6
123.9
126.5
106.0
100.6

108.9
130.8
133.5
139.9
173.3
124. 6
123.8
126.4
105.7
100.5

108.4
129.8
133.5
129.1
174.0
124.3
123.1
126.5
104.3
99.6

94. 5
96.6
95.9
91.0
94.5
95.5
87.7
100.6
77.1
79.5

1926 = 100 . . .

99.6

99.4

99.3

98.5

81.3

1926=100....
1926=100....

130.4
107.5

129.9
107.0

129.0
105.8

125.0
106.5

65.3
70.4

M illions- -- $14,340
_ _do_____ "$24,510

$12,835

$13,194

$6,037

$5,880

$5,460

National income and expenditures
National income payments (B F D C )____
Consumer expenditures for goods and
services (B F D C ).
Retail sales_______________________ _

$13, 573
«$6,024
11 $24,045 " $15,406
$5,710

«$3,574

Production
Industrial production index, unadjusted
(FR ): Total.
Manufacturing______ ______________
_______
________
Minerals__
Bituminous coal (B M )_________________

1935-39 = 100-

222

226

229

236

109

1935-39 = 100.
1935-39 = 100.
T housands
of sh o r t
tons.
Carloadings index, unadjusted (F R )_. . . . 1935-39=100.
Electric energy (FPC ): T otal_____ ___ Millions of
kw.-hrs.
Utilities (production for public u se).. ------do_____
Industrial estab lish m en ts........... .........

236
148
51,590

241
141
49,520

245
140
43,155

252
146
62,712

109
106
32,905

145
22,999

142
23,686

139
22,823

144
22,823

(12)

18,832
4,167

19, 409
4,277

18,640
4,183

18, 595
4,228

«10,329
(12)

$492
$144

$467
$135

$493
$119

$400
$116

fl $000
(12)

20,100

19,900

19,000

17,500

• 45,900

101

Construction
Construction expenditures _____________
Value of urban building construction ____do_____
started.
N ew nonfarm family-dwelling units_____

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 F D C
(Bureau of Foreign and Domestic Commerce); FR (Federal Reserve); B M (Bureau of Mines) - FP C (Fed­
eral Power Commission). M ost of the current figures are preliminary.
1 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 (nonmain­
tenance construction workers employed directly by the Federal Government). Other force-account non­
maintenance construction employment is included under manufacturing and the other groups.
* Reports in manufacturing and mining now relate to “ production workers” instead of “wage earners”
but with no appreciable effect on the employment estimates.
• June.
7 M ay.
8 July.
9 March.
10 For the coverage of this index, see p. 342.
II Second quarter.
11 N ot available.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

*■

MONTHLY LABOR REVIEW
AUGUST 1945

Health-Benefit Programs Established Through
Collective Bargaining1
PROVISION for health-benefit programs as a part of the contractual
relationship between employers and unions was almost unknown a
few years ago. Although a number of companies had provided
within-plant medical service to their employees for many years and a
few had established group health-insurance programs, these were
administered by the employer and were subject to alteration or dis­
continuance at his will. Many were started as a part of a general
welfare program designed to win employee loyalty and discourage
union organization. Organized labor, having no voice in their
administration and suspecting the motives for which they were estab­
lished, has never wholeheartedly endorsed company benefit plans.
In response to their members’ need for protection against total loss
of income during sickness, a number of unions have established benefit
programs of their own which are financed through membership dues
or special assessments.2 Many of these, however, cover permanent
disability and old age rather than short periods of illness.
During recent years an increasing number of unions have succeeded
in having health-benefit plans included in the terms of their agreements
with employers, and several international unions have established
special facilities for helping their locals negotiate such plans. Al­
though a number of the provisions in current agreements signify the
substitution of contractual arrangements for already established
employer-administered or union-administered benefit plans,3 many of
them are new; some of the latter have been negotiated in lieu of wage
increases which could not be obtained under the wartime wage
stabilization program.
To strengthen their case for employee participation in administra­
tion, some unions favor the policy of having employees contribute
toward the payment of premiums. On the other hand, some unions
have obtained virtual control of administration of programs which
are financed entirely by employers. In a majority of cases the healthbenefit programs are underwritten by private insurance companies;
such group policies usually include, in addition to the sick-benefit pro­
visions, accidental-death and dismemberment benefits, which are not
described in this report.
• Prepared in the Bureau’s Industrial Relations D ivision by Florence Peterson, Everett Kassalow, and
a Some of these were described in Bureau of Labor Statistics Bulletin N o. 465: Beneficial Activities of
American Trade-Unions.
> Recently an employer proceeded to install a group-insurance program after rejecting the union s request
to include such a plan in the union agreement. The union objected, and the case was appealed to an arbi­
trator, who upheld the union’s position; thereupon the company agreed to cancel the policy. Another
local of the same union is pressing charges of unfair labor practices against a company which is trying to
establish an insurance plan outside the union contract.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

191

192

MONTHLY LABOR REVIEW— AUGUST 1 9 4 5

General Characteristics of Health-Benefit Programs
The health-benefit plans described in the following pages cover
more than 600,000 workers employed under agreements negotiated
by unions in various industries. This coverage figure, however, is
not all-inclusive, being based on agreements and other material on
file in tie Bureau of Labor Statistics. No attempt has been made to
determine statistical^ the extent of such provisions in union agree­
ments. The purpose of this report is, rather, to present a brief
description of some of the more representative types of health-benefit
plans established recently by employer-union contracts.
Most of the plans described in this report have been negotiated by
the following unions: International Ladies’ Garment Workers’
Union (A. F. of L.), Amalgamated Clothing Workers of America
(C. I. O.), United Hatters, Cap, and Millinery Workers International
Union (A. F. of L.), Textile Workers Union of America (C. I. O.),
United Textile Workers of America (A. F. of L.), International Fur
and Leather Workers Union of America (C. I. O.), United Electrical,
Radio, and Machine Workers of America (C. I. O.), Upholsterers
International Union of North America (A. F. of L.), United Furniture
Workers of America (C. I. O.), Industrial Union of Marine and Ship­
building Workers of America (C. I. O.), Hotel and Restaurant Em­
ployees’ International Alliance and Bartenders’ International League
of America (A. F. of L.), Paper Workers Organizing Committee
(C. I. O.), United Retail, Wholesale and Department Store Em­
ployees of America (C. I. O.), and the Amalgamated Association of
Street, Electric Railway, and Motor Coach Employees of America
(A. F. of L.). The Trade Union Agency, a New York consultant
firm, acts as representative for several of these unions in their healthinsurance negotiations.
ADMINISTRATION OF PROGRAMS

Health-benefit programs provided by collective-bargaining agree­
ments may be divided into three types, according to their method of
administration: (1) Those administered solely by the union, (2) those
administered jointly by the union and employer, and (3) those ad­
ministered by a private insurance company which undertakes the
responsibility for determining eligibility claims and payment of
benefits. Under the third type of plan, the employer may pay
the premium directly to the insurance company, or he may make
payment to a special union fund from which premium payments are
made to an insurance company. Even when the plan is underwritten
by a private insurance company, the union and employer frequently
share in the responsibility of administration. For example, a joint
committee of union and company representatives may review all
claims and, when necessary, jointly sign drafts on the insurance
company. Under some insurance-company plans all claims are filed
through the union.
A little more than a third of the employees covered by health-benefit
programs included in this report are under plans which are jointly
administered by the union and employer. Another third are covered
by programs for which insurance companies assume the major admin­
istrative responsibility; and somewhat less than a third are under
those administered solely by the union.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING

193

F IN A N C IN G OF P L A N S

Most of the health-benefit plans included in this report are financed
entirely by the employer. This is true of all the union-administered
plans, almost all the jointly administered programs, and more than
half of those administered by insurance companies. Only a few of
the jointly administered plans and less than half of those adminis­
tered by the insurance company require both employees and the
employer to contribute to the financing of the health program.
Most agreements stipulate that the employer shall contribute a
specified percentage of his pay roll (usually 2 or 3 percent) to meet
his obligations under the benefit plan, although in some cases no
exact amount is specified.4 Under the latter arrangement the em­
ployer either defrays all the expenses on a current basis, or supple­
ments regular employee contributions with such money as may be
required from time to time.
B E N E F IT S P R O V ID E D

In the main, health-benefit plans provided under union agreements
include weekly cash benefits during periods of illness and of disability
caused by nonoccupational accidents, hospital and surgical expenses,
and, in some cases, payment of doctor bills. As might be expected,
benefits tend to be higher under plans negotiated in industries having
relatively high wage scales. Dental care and medical preventive
work, such as periodic examinations, are not commonly provided
under these plans, although many large companies maintain these
types of service.
An important exception among benefit programs established under
collective bargaining is found in the programs conducted by the
International Ladies’ Garment Workers Union, which include medi­
cal services and preventive medical work, such as X-ray examinations,
in addition to weekly cash-benefit payments. This work is carried
on through the union’s health centers in New York City, Philadelphia,
and Fall River.
Recently the St. Louis Joint Council of the United Retail, Whole­
sale and Department Store Employees negotiated a health-benefit
plan under which a health institute, designed to offer extensive medi­
cal services to employees and their dependents, will be established.
With the important exception of programs in the men’s and women’s
clothing industries (see pp. 204 and 207), most of the plans include
weekly disability benefits ranging from about 50 to 60 percent of an
employee’s regular earnings, or, where fixed benefits are stipulated,
from $10.50 to $20 per week. The maximum time allowed for re­
ceiving benefits usually ranges iron 13 to 26 weeks (6 weeks in case
of pregnancy) for any one continuous disability, although several
plans allow continuous coverage for 52 weeks. Under almost all
the plans the payment of benefits commences on the eighth day of
disability in case of illness, and on the first day in accident cases.
Payments for hospital services ranging from $4 to $5 per day for
31 days, are usually allowed for any one continuous disability, but
are limited to 12 or 14 days in maternity cases or cases involving any
* The cost of the life insurance or accidental-death and dismemberment benefits, where provided, absorbs
a substantial share of the employer’s contribution, but, as indicated previously, these features are not
discussed in this report.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

194

Mo n t h l y

labo r r e v ie w — a u g u s t

1945

condition resulting from pregnancy. Frequently an additional $25
is allowed for special hospital expenses. Payment for medical serv­
ice is not commonly provided, although a few plans allow specified
payments for doctors’ services up to a maximum of 50 visits for any
one disability, which usually begins with the first treatment in case
of accident, and the fourth in case of illness. Maximum surgical
benefits under most of the plans range from $100 to $175, and these
plans frequently furnish a schedule of surgical allowances for differ­
ent types of operations. Hospitalization coverage for dependents is
provided in some plans, but it sometimes entails additional contribu­
tions by the employee.
Many of the programs do not provide a fixed daily hospital payment,
but instead provide a service benefit through the Blue Cross Associ­
ated Hospital Service. This service generally furnishes semiprivate
hospital accommodations, plus unlimited use of operating rooms,
X-ray, anesthetics, special medications such as penicillin, etc., for
21 days in any year; thereafter half of the regular hospital expenses are
paid for an additional 180 days. Usual maternity hospital benefits
under the Blue Cross plan are $6 per day for 10 days, but in specified
types of cases the regular hospitalization benefits are paid.
ELIGIBILITY REQUIREMENTS

Disability caused by occupational accidents which are covered by
workmen’s compensation are excluded from coverage in virtually all
of the health-benefit plans.
Almost none of the health-benefit programs provided through
collective bargaining require the medical examination of covered em­
ployees, although pre-employment medical examinations may be in
operation in some of the plants. Except that disability payments
are frequently limited to 13 weeks for any single disability for persons
over 60 years of age, there are no age limitations.
Under the Blue Cross plan, no hospital benefits are allowed for
communicable diseases, pulmonary tuberculosis, and mental or
nervous disorders; also, in most cases the Blue Cross plan does not
cover maternity or preexisting physical conditions during the first
11 months after enrollment, although in some areas this provision
can be waived where a specified number (50 or 75 percent) of those
eligible participate in the plan.
Temporary employees usually are not covered; the group healthinsurance plans underwritten by private insurance companies ordi­
narily provide that new employees participate after having been con­
tinuously employed for a definite period of time, ranging from 1 to 6
months. Union membership in good standing is generally required
in all plans administered by the union alone or jointly with the em­
ployer, whereas membership is not required in most insurance-com­
pany programs, unless the agreement empowers the union itself to
contract with an insurance company.
The question of how long an employee should be covered during
periods of temporary lay-off, seasonal slack periods, and leaves of
absence is usually the subject of considerable negotiation in establish­
ing a benefit plan. Although it is during such periods that need for
protection is often greatest, employers and insurance companies fre­
quently oppose the covering of any employees who are not on the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING 1 9 5

active pay roll. Very few of the health-benefit plans established under
collective bargaining specifically include the length of time during
which coverage continues after lay-off, but there is increasing recog­
nition of this problem. Some unions contend that as long as thelaidoff employee has a “reasonable expectancy” of returning to the job,
he should be protected by the benefit program. The majority of
plans underwritten by private insurance companies simply state
that the insurance continues in force until the end of the policy month
in which the lay-off commences, provided the premiums are paid
during this time. Some insurance-company plans provide that, in
event of temporary lay-off or leave of absence, health and hospital
benefits continue for 1 or 2 months. Under one jointly administered
plan, group accident and health insurance continues for 4 months
after lay-off.
Under union-administered plans, protection of laid-off employees
is, to a considerable extent, a problem for the union alone to decide.
In practice, employees usually are eligible for benefits during slack
seasons and lay-offs if they maintain their union membership. One
union-administered plan provides that “unemployed members behind
in dues payments may be declared eligible by the benefit fund com­
mittee.”
TRANSFER AND CONVERSION OF POLICIES

The privilege of conversion to individual insurance policies upon
termination of employment or upon transfer to another job (either
in the same or another industry) is of considerable importance to
the individual worker. The industry-wide programs, such as exist
in various branches of the furniture, fur, textile, and women’s
apparel industries as well as in the New York hotel plan, permit
transfer of coverage from plant to plant, sometimes with a proba­
tionary requirement with the new employer, during which time the
original employer continues the payment of premiums. Some grouphospitalization plans, such as the Blue Cross, may be transferred
upon termination of employment to an individual plan, with a slight
increase in cost.
SURPLUS FUNDS AND LIQUIDATION OF PLANS

Union-administered or joint plans, not underwritten by an outside
insurance company, usually provide for the conversion of surplus
funds into increased benefits; some of those jointly financed specify
that contributions required from participating employees be de­
creased. A few of the group-insurance plans which are jointly financed
include provisions for the sharing of dividends. Several such plans
in operation in some of the large shipyards provide that any declared
dividends shall be payable to the company, and that the employees’
proportionate shares shall be used for the workers as a group, to reduce
or waive contributions.
Several of the jointly administered and jointly financed benefit
programs provide for the distribution of remaining funds in the event
of termination of the program. Generally, any money on hand is to
be distributed to the general funds of the local union and the company,
in proportion to their respective contributions.^ One| jointly ad­
ministered, employer-financed plan states: “If the parties hereto

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

196

MONTHLY LABOR REVIEW— AUGUST 1 9 4 5

fail to renew this agreement at the expiration date, the board of
trustees created herein shall continue to function and carry out the
purposes of said fund until all monies will be exhausted/’
ENFORCEMENT OF PROVISIONS

Under some plans, particularly those administered by insurance
companies, benefits would be automatically discontinued if the em­
ployer failed to pay the necessary monthly premiums. To insure
continued coverage, one agreement covering a group of employers
provides a series of penalties against employers who default in the
payment of premiums; if, after notice, the employer fails to correct
such default, the union may demand a bond equivalent to onefourth of the annual premiums; and, furthermore, any employer who
fails to provide proper insurance coverage for an employee is personally
liable for the same benefits the worker would have received from the
insurance company. The agreement further provides that the union
may call a strike on 5 days’ notice if the employer fails to live up to
his health-insurance obligations.
Another agreement negotiated with an employers’ association
states that in the event any employer fails to meet his financial
obligations under the health-benefit plan, the union may take “ap­
propriate action to enforce such payment,” notwithstanding the
no-strike clause in the agreement. This same agreement also author­
izes the union to examine the employer’s records and papers, in order
to ascertain whether he is complying with the provisions of the
health plan. Another agreement with an employers’ association
states that failure to make proper remittances to the union’s health
fund “shall be deemed a violation of this agreement, for which a
member of the association shall forfeit all rights and privileges here­
under.”
In anticipation of Government-sponsored health-insurance legis­
lation which might involve duplication of costs to employers, some
agreements include “escape clauses.” For example, one agreement
provides that if either the State or the Federal Government enacts
health legislation whose benefits parallel any of those established
by the collective-bargaining agreement, the latter become “inop­
erative and canceled in the policy,” and the employer is “relieved
of the cost thereof, in order to avoid duplication of costs.”
Plans Administered by Insurance Companies
About a third of the employees covered by health-benefit programs
included in this report are employed under plans underwritten and
administered by insurance companies. Such arrangements occur
most frequently in the textile, street-and-electric-railway, ship­
building, furniture, and electrical-machinery agreements. Some are
also in effect in the rubber, paper, public-utilities, fur and leather­
tanning industries, nonferrous-metal mining, retail trade, and hotel
and restaurant agreements.
Once the benefits and coverage have been determined through col­
lective bargaining, the employer is free under some agreements to
contract for such insurance coverage with any company he chooses.
Other agreements specify that he pay his contribution directly to the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING

197

union, which in turn contracts for the insurance. Under some plans
the union and employer jointly select the insurance company.
Financing.—Most of the workers covered by programs included in
this report which are administered by the insurance companj^ are not
required to pay any of the costs. Employer-financed plans are pro­
vided in all the agreements studied in the rubber, upholstery, and
leather-tanning industries and in most of the textile and electricalmachinery agreements. Provisions for sharing of costs by employer
and employees are prevalent in the shipbuilding, street-and-electricrailway, and utilities agreements.
The size of the premiums under the systems financed exclusively
by the employer ranges from 1 to 5 percent of the weekly pay roll,
although some agreements merely state that the employer agrees to
bear all costs of the plan, without giving any indication of the amount.
In plans the cost of which is borne jointly, the employer’s share is
usually from 50 to 70 percent of the total premiums. In most in­
stances the employee’s share of the premium ranges from 30 to 50
cents weekly, but if benefits are graduated according to earnings,
employees who are entitled to weekly disability allowances of $35
or $40 contribute as much as $1.57 per week.
Administration.—Although the insurance company establishes the
rules and regulations and finally passes on the eligibility of claims,
it is quite common for unions to have a voice in the day-to-day
administration of health-benefit programs underwritten by insurance
companies. This is especially true in the filing of claims, adjustment
of complaints, and elimination of possible misunderstandings among
employees concerning benefit payments, coverage, and eligibility.
Agreements in the shipbuilding and electrical-machinery industries
frequently stipulate that the union is to have an equal voice with the
management in the administration of the insurance programs as well
as in the installation of new benefits. The American Federation of
Hosiery Workers has appointed shop committees in those companies
with which it has negotiated health-insurance programs, to adjust
individual complaints and grievances, prevent malingering, and see
that the employer is paying the necessary premiums to the insurance
company. In some industries the union, locals have established special
insurance departments to assist members in filing claims. In some
companies the personnel office is authorized to draw drafts for the
payment of benefits; in other cases, employees file claims directly
with an insurance adjuster’s office.
Upon proper evidence, usually in the form of a doctor’s certificate,
the insurance company authorizes the employer, or the employer and
the union jointly, to issue drafts to employees to cover the benefits
provided by the policy. In cases in which the Blue Cross hospitali­
zation plan is in effect, an official card is presented to the hospital at
the time of admission, and the Blue Cross pays the hospital directly.
If the employee is allowed a fixed daily benefit, he pays the hospital
bill himself and is later reimbursed by insurance company or union.
TEXTILE WORKERS UNION OF AMERICA

(c.

I. O.)

According to statements made by the Textile Workers Union of
America (C. I. O.), agreements including health-insurance plans have
been negotiated for more than 100,000 members in the various

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

198

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

branches of the textile industry. The agreements specify the benefits
which are to be provided, provisions for coverage during periods of
lay-off, eligibility requirements, and methods of enforcement. With
certain exceptions (including the plan of the American Federation
of Hosiery Workers, see p. 199), the employer is free to select the
insurance company as long as the benefits provided in the policies
adhere to the agreement provisions; the union reserves the right to
reject the policy if it does not correspond to the general plan for the
industry. Generally all claims are handled by the employer, who
transmits them to the insurance company.
Practically all the T. W. U. A. plans are employer-financed. With
slight variation in the benefits afforded, the insurance covers death,
sickness, and nonoccupational accidents, besides providing allowances
for surgical aid, hospitalization, and maternity care; under a few
agreements hospitalization coverage is extended to workers’ de­
pendents. This union also has negotiated a few plans, jointly
financed and administered, in the rayon-manufacturing industry, but
benefits under these plans are limited to payments for sickness and
nonoccupational accidents, with no provision for hospitalization.
Under the T. W. U. A. plans, a worker usually must be employed
in the industry for 6 months before he is eligible for coverage, and
coverage is retained by employees transferring to other plants in the
same industry where the insurance program is in effect. An em­
ployee on temporary leave of absence is covered for 3 months after
such leave commences. Should he obtain a job elsewhere in the
industry, however, he must wait 3 weeks before he is eligible for in­
surance protection.
Most of the plans provide for the following benefits:
Hospitalization allowance, usually $5 per day, for a maximum of 31 days for
any one illness (maternity cases 12 or 14 days). A few of the plans also provide
hospitalization benefits of $4 per day for dependents of the insured worker.
Extra hospital expenses up to $25 for employees ($20 for dependents, where covered)
and surgical aid up to $150, depending on the type of operation performed.
Weekly benefits for sickness and nonoccupational accidents ranging from
$10.50 to $17.00, up to 13 weeks (maternity benefits for a maximum of 6 weeks),
following a 7-day waiting period in cases of sickness, but none for accident cases.
Federation of Dyers, Finishers, Printers, and Bleachers of America (C. I. O.)

This division of the T. W. U. A. has negotiated individual agree­
ments, incorporating a uniform health-benefit plan, with companies
employing a total of about 20,000 workers in the textile dyeing, finish­
ing, and printing industry. The plan is on an employer-pay-all basis,
and management is free to select the insurance company under which
it is to be covered, as long as the benefit schedule stipulated in the
collective-bargaining agreement is followed. Benefits are paid
through the employer’s office, but the management is required to
furnish a monthly report, on a form provided by the union, to the
union office. This report details the benefits paid, expenses, etc.,
and enables the union to evaluate the plan from time to time.
New employees are “required to pass a probationary period of 6
months” before they are eligible to participate in the program.
Workers transferring from one insured shop in the industry to another
are covered after a 3-week probation with the new employer. Any
worker on a temporary leave of absence is covered for hospitalization

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING

199

and surgical insurance for 3 months, and for sickness and accident
insurance for 2 months. Hospitalization benefits are furnished to
dependents, without charge to the worker.
The plan provides the following benefits:
Weekly disability benefits (commencing on the eighth day in case of illness
and the first day for accidents) of $17 for 13 weeks for any one period of dis­
ability. (Employees 60 years of age and over are limited to a total of 13 weeks
in any consecutive 12-month period.)
Hospital benefits of $5 per day, for 31 days for any one period of disability.
An additional $25 is allowed for extra hospital charges such as X-rays, anesthetics,
laboratory, and operating and delivery-room charges. Maximum surgical
reimbursement is $150. In the event the policy is terminated, employees are
eligible for hospitalization and surgical benefits for a period of 3 additional months
in connection with a continuous disability sustained while the policy was still in
effect.
In maternity or any other case due to pregnancy the weekly benefit period for
the worker is limited to 6 weeks, and the hospitalization allowance is limited to
14 days. The plan provides for the payment of maternity hospital benefits for a
period of 9 months after the termination of the policy.
Hospitalization expenses for dependents (defined as a wife, but not a husband,
and unmarried children betjween 3 months and 18 years old) are reimbursed to a
maximum of $4 per day for 31 days. An allowance of $20 is made for special
hospital expenses. Dependents’ maternity hospital benefits are $4 per day for 10
days. If the policy is terminated, hospitalization coverage for dependents is
extended as in the case of the worker.
American Federation of Hosiery Workers

The health-insurance program of this branch of the T. W. U. A.,
covering an estimated 22,000 workers, differs somewhat from the other
plans in the textile industry. For example, under the agreement
entered into by this union and the American Federation of FullFashioned Hosiery Manufacturers of America, Inc., if the cost of the
policy exceeds 2 percent of the weekly pay roll, the difference is made
up by the employees.
Details of the hosiery-industry insurance plan, including the
selection of the insurance company, the nature and type of insurance,
coverage, and related matters, were worked out by a joint committee
appointed by the manufacturers’ association and the union, and
policies are issued in the joint names of the manufacturers’ association
and the union. Although the premiums are paid directly to the in­
surance company by the employer, adjustments are processed, not
through the employer’s office, but through an insurance adjuster’s
office authorized by the insurance company to handle claims and
extend such services as may be required. Although the insurance
company has final responsibility for administration of the plan, in­
surance shop committees, composed of workers appointed within the
local unions, check on the progress of the plan within their own shops
and adjust complaints regarding the payment of claims. The
union’s insurance committee also investigates cases of malingering.
The group policy establishes the following benefits:
Weekly sick and accident benefits equal to 60 percent of the employee’s average
wages, up to a maximum of 52 weeks, after a 7-day waiting period for sickness but
none for accidents. Benefits for disabilities or operations caused by diseases of
the female generative organs are provided only if the employee has been con­
tinuously insured for 6 months previous to such disability.
Payment of doctor bills of $3 per visit if such service is rendered at home, $2
if at office, up to 50 visits for any one disability, but limited to 3 in any 1 week'
Payments begin with the first treatment in accident cases, the fourth in sickness
cases.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

200

MONTHLY LABOR REVIEW— AUGUST 194 5

Hospital expenses up to $5 a day, for a period not exceeding 50 days, and sur­
gical benefits ranging from $5 to $175, depending upon the nature of the operation.
Maternity benefits up to 6 weeks, at 60 percent of the average weekly salary,
with hospital expenses up to 12 days, provided the employee has been continu­
ously insured for a minimum of 9 months.
UNITED ELECTRICAL, RADIO, AND MACHINE WORKERS OF AMERICA (c . 1. O.)

Group health-insurance programs are being negotiated by the U. E.
R. M. W. A. in increasing numbers in various branches of the in­
dustry,5 and at present, according to the union, they cover about
75,000 employees. The majority of them call for the assumption of
the entire cost by the employer, although joint union-management
reviews of employees’ claims are frequently provided. Booklets an­
nouncing the plan, as well as the insurance policies, contain the name
of the union and the employer. In some instances, special arrange­
ments have been made to extend the group-health benefits for a
maximum of 30 to 60 days during periods of lay-off. Plans of the
U. E. R. M. W. A. generally make provision for the conversion of
some of the benefits, like hospitalization, to an individual basis if the
employee should leave the shop where he is insured. In those in­
stances in which the employer and the employees share in the cost, the
agreements stipulate that there shall be a division of dividends, in
proportion to the amount of the premium each pays.
Payments for any one period of disability are usually limited to 13
weeks, but in a few cases they are extended to 26 weeks. Weekly
disability benefits for maternity are included in all agreements, but
are limited to 6 weeks. The amount of sickness and accident benefits
under most of these plans depends upon the employee’s regular (40hour week) earnings. For example, two typical plans in effect in
two electrical-machinery plants include the following schedules of
sickness and accident benefits, payable for 13 weeks:
P lant A
WeMy
P la nt B
WeMy
Weekly earnings:
benefit Weekly earnings:
benefit
Under $30__________________ $15
Under $25__________________ $10
$30 to $45__________________ 20
$25 and under $35__________
15
$45 to $55__________________ 30
$35 and under $50_______
20
$55 and over_______ ________ 35
$50 and under $65__________
25
$65fand under $75__________
35
$75 and over________________ 40

Under most of the plans surgical reimbursement is allowed up to
$150. Nearly all of the plans provide hospitalization benefits under­
written by the Blue Cross but several establish a flat hospitalization
benefit, usually $5 per day. Some of the union’s plans extend hos­
pitalization benefits to the insured employee’s dependents, but these
plans generally require the employee to contribute, in addition to the
premiums paid by the employer. While doctors’ bills are usually not
included among the benefits, one agreement provides for reimburse­
ment for medical service beginning with the doctor’s second visit at
home, in the hospital, or at his office.
INTERNATIONAL FUR AND LEATHER WORKERS UNION (C. I. O.)

Group-insurance programs of the I. F. L. W. U. are now in effect
in a number of cities, but most of the employees covered are in New
5 The international office has issued a bulletin of ¡instructions (U E Guide^toJGroup Insurance) which
has been of great assistance to its locals.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING

201

York and New Jersey. According to the union, I. F. L. W. U.
agreements covering approximately 15,000 employees include healthbenefit programs.
Most of the plans are employer-financed, through 2- or 3-percent
pay-roll contributions. This money is turned over to the local union,
which in turn contracts with a private insurance company—in most
cases, with the Blue Cross.
The plans in various locals of the union vary, depending upon the
amount of employer contribution in each instance. A typical plan
establishes a range in benefits from $16.50 to $25, depending upon the
employee’s regular earnings, for 13 weeks for any one period of
disability, with maternity benefits limited to 6 weeks. This plan also
provides daily hospital benefits of $5, payable for 31 days for each
period of disability, and a maximum allowance of $25 for miscellaneous
hospital expenses. Surgical reimbursement up to $150 is provided.
The agreement with the New York Joint Board of Fur Dressers and
Dyers, covering about 4,000 workers, has a similar plan, except that
hospital benefits are provided through the Blue Cross.
UPHOLSTERERS INTERNATIONAL UNION (A. F. OF L.)

The Upholsterers International Union has negotiated health-insur­
ance plans for more than 8,000 workers in a number of the larger
cities in the country. The employers finance these programs by con­
tributing 2 percent of their gross pay roll to the international union
which, in turn, purchases policies from an insurance company.
Claims are processed through the union.
Benefits are as follows:
W eekly allowances, am ounting to 60 percent of the em ployee’s average weekly
wage, for as long as the disability continues up to 52 weeks, w ith paym ent begin­
ning on the eighth day in case of illness and on the first day for accidents; hospital
expenses up to $4 a day for a period not exceeding 50 days; doctor bills up to
$3 per visit at home and $2 at the doctor’s office, to a total of 50 visits for any
disability, but lim ited to 3 visits per week, with paym ents beginning for the
first treatm ent in case of accident, and the fourth in case of illness; surgical
allowance up to $175. In case of maternity, weekly disability paym ents are
lim ited to 6 weeks, and hospital benefits are allowed only for 12 days.
UNITED TEXTILE WORKERS OF AMERICA (A. F. OF L.)

The United Textile Workers of America, through its woolen and
worsted department, has negotiated several health-insurance plans
covering workers in the New England area. The cost of these plans
is borne in shares of two-thirds for the employer and one-third for the
workers,6 with the workers sharing in the dividends in the same ratio.
The plan provides benefits of $14 per week for a maximum of 13
weeks for any one continuous disability resulting from nonoccupational accident or illness, hospitalization at $4 per day for 31 days (14
days in maternity cases), surgical expenses up to $100, and $20 for
special hospital expenses.
This union also has negotiated health-insurance plans in other
branches of the textile industry in the New England and Middle
Atlantic area which are financed entirely by the employer. Surgical
s The union “insisted on contributing toward the premium in this health program * * * thereby
making it part of their union contract and giving the union voice in the application of same. ” Officers
Report to the Eighth Biennial Convention of United Textile Workers of America (1944).
0 5 6 2 4 3 — 45 ------ 2


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

202

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

and hospital benefits are similar to those furnished to the woolen and
worsted workers, but weekly disability benefits are only $10. How­
ever, allowance is made for physicians’ calls at the rate of $3 for each
house or hospital call and $2 for each office visit, with a maximum of
3 calls per week and 30 calls for each separate disability period.
UNITED FURNITURE WORKERS OF~AMERICA (C. I. O.)

Several thousand workers are covered by a uniform health-insurance
plan negotiated by the United Furniture Workers of America. To
date, it covers employees in the New York and New Jersey area only;
however, the union is seeking to extend the program to other sections
of the country, and also expects to obtain coverage for nonunion
employees when the plans are extended to shops which are not
covered by'lclosed-!S,or union-shop contracts.
The plan is financed entirely by the employers, who pay 3 percent
of their weekly pay rollsTnto the union’s insurance trust fund, which
is governed by five trustees—all members of the union’s national
executive board. The union contracts with a private company for
the weekly accident and sickness benefits, surgical benefits, dis­
memberment benefits, and life insurance, and with the Blue Cross
for the hospitalization benefits. All claims are submitted through
the local union offices.
Weekly benefits for nonoccupational illnesses range from $10 to
$27.50 per week, based on the employee’s earnings. The maximum
for any one period of disability is 13 weeks, except that disability
benefits during maternity leave are limited to 6 weeks. Surgical
reimbursement is limited to $150. When the program was initially
instituted by the union on October 1, 1944, it provided hospitalization
benefits under the Blue Cross plan only for employees, but recently
the union extended the plan to provide hospitalization benefits for
the employees’ families as well,. The costs of the family-hospitaliza­
tion coverage, as well as all the other benefits of the program, are
being paid for by the employers’ contributions.
AMALGAMATED ASSOCIATION OF STREET AND ELECTRIC RAILWAY EMPLOYEES
(A. F. OF L.)

A substantial number of agreements negotiated by this union con­
tain group-insurance plans. Most of these are underwritten and
administered by private insurance companies and financed jointly
by the employer and employees, but several are financed entirely
by the employers.
Flat weekly benefits are provided in the various plans, ranging from
$10 to $30, generally for a maximum of 13 weeks for each different
period of disability, although some provide payments up to 26 weeks.
Hospitalization allowances are usually $4 or $4.50 daily, for 30 to 90
days. In some plans an additional sum, usually about $20, is allowed
for special hospital expenses. Several plans provide hospitalization
protection for the employee’s dependents, although not of the same
amounts nor generally for so long a period as for the employee. In
plans which include surgical benefits, the maximum allowance is
commonly $150.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING
INDUSTRIAL UNION OF MARINE AND SHIPBUILDING WORKERS

(c.

203

I. O.)

Health-insurance plans are included in some of the agreements
negotiated by the Marine and Shipbuilding Workers. Most of them
are jointly financed, with employees paying half of the cost. The
majority of the plans adjust weekly benefits to the employee’s regular
straight-time weekly earnings, and under this arrangement benefits
may vary from $10 to $40. Several, however, particularly those
negotiated during the past year, establish a flat weekly sickness and
accident benefit for all employees. One agreement, for example,
provides a flat weekly disability benefit of $21.
Benefits for nonoccupational accidents generally commence with
the first day of disability; sickness payments start on the eighth day
under some plans and on the fourth day in others. Daily hospital
benefits are usually $5 (a few plans allow $6) for a maximum of 31
days (70 days in one plan) for any one continuous disability. Most
of the plans allow an additional $25 or $30 for any special hospital
charges, such as X-ray, anesthetic, delivery room, etc. According
to a few plans, if an employee’s insurance ceases for any reason, his
hospitalization coverage continues for 3 months. Maximum surgical
benefits are $150.
HOTEL AND RESTAURANT EMPLOYEES’ INTERNATIONAL ALLIANCE ( a . F. OF L.)

The Hotel and Restaurant Alliance has not adopted a uniform
policy of obtaining health benefits in its collective-bargaining agree­
ments, but a few of the important sections of this union have secured
such benefits for their members. One of the most recently negotiated
plans is that with the Hotel Association of New York by the New York
Hotel Trades Council (A. F. of L.), of which the New York locals of
the Hotel and Restaurant Employees’ Alliance are members. This
program, which covers about 25,000 workers in 134 unionized hotels
and is financed entirely by the employers, was made part of the
city-wide hotel agreement, following the unanimous award of an
impartial three-man commission appointed to study the problem.
During the first 6 months of the plan’s operation employers were
required to contribute 6 percent of their weekly pay roll; at the end
of that period this was reduced to 3 percent. The contributions are
made to an insurance fund, which is administered by a board of
trustees composed of the executive board members of the Trades
Council, with an advisory committee consisting of the board of
governors of the Hotel Association. Benefit payments began on
March 1, 1945, after contracts were signed with a regular insurance
company to furnish disability benefits, and with the Blue Cross to
provide hospitalization.
Hospitalization benefits are provided for employees and their
dependents, in accordance with the Blue Cross plan. All benefit
checks are signed by a representative of the trustees.
To be eligible for the insurance benefits, the employee must be a
member of the union for 6 months and an employee of union-contract
hotels for 4 months. However, returning veterans who are honorably
discharged are insured immediately without a waiting period. Weekly
sickness benefits under the plan are $10 per week for female members
and $12 per week for male members, with a maximum of 26 weeks’

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

204

M ONTHLY LABOR REVIEW----AUGUST 1 9 4 5

benefits for any one period of disability, except that benefits for
maternity cases are limited to 6 weeks, and those for members over
60 years of age to 26 weeks in any one year.
PAPER WORKERS ORGANIZING COMMITTEE (c . I. O.)

A number of agreements negotiated by the Paper Workers Organ­
izing Committee establish employer-financed health-insurance plans.
These plans commonly provide daily hospital benefits of $5 for 31
days, up to $150 for surgical expenses, and $25 for additional hospital
fees. Weekly disability benefits, commencing on the first day in
case of accidents and on the eighth day in case of sickness, vary
according to the workers’ earnings as follows:
Weekly earnings:
Weekly benefit
Under $22.50________
$10
$22.50 to $29.99_________________ 15
$30.00 to $39.99_________________ 20
$40.00 and over_________________ 25

Union-Administered Benefit Plans
Of the health-benefit plans described in this report, those covering
somewhat less than a third of the workers require that the union
assume all, or the major share, of the responsibility for administering
the program.7 Plans of this type are found principally in the women’s
apparel industry, although more than 20,000 laundry workers in
New York City and a few fur and millinery shops are also covered
by union-administered benefit provisions.
These union-administered plans are financed entirely by the em­
ployer or a group of employers who agree to pay a stipulated amount,
usually a percentage of the weekly pay roll, to a benefit fund estab­
lished within the union. Rules and conditions under which benefits
are to be paid are adopted by the union, although usually subject to
the approval of the employers. In several agreements the employer
and union jointly determine the amount of benefits and the rules and
regulations which are ultimately to be administered by the union.
According to the New York laundry workers’ agreement,the employers’
association is permitted to examine the books of the insurance fund,
and some of the ladies’ garment workers’ health plans require the
union to submit periodic financial reports to contributing employers.
Others, however, specify that “neither the association nor any of its
employers shall have any right, title, or interest in and to said fund
or the administration thereof.”
IN T E R N A T IO N A L L A D IE S ’ G A R M EN T W O R K E R S ’ U N IO N (A . F . O F L .)

The benefit programs currently in effect for members of the Inter­
national Ladies’ Garment Workers’ Union are an outgrowth of the
union’s welfare and health programs formerly financed entirely by the
members. They now cover, according to the union, about 150,000
employees in the women’s apparel industry. With few exceptions,
they are financed entirely by employer contributions. These plans
7 All plans which are administered through insurance companies are covered in the preceding section,
including those in which the employers’ contributions are turned over to the unions which, in turn, take
out group policies with private insurance companies.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING

205

include vacation payments in addition to sick-benefit payments and
medical services; some also include retirement provisions, but none
provide death benefits. The employer usually contributes from 3 to
4 percent of his gross pay roll, but only part (from a third to a half) of
this amount is allocated for health benefits, the rest being used to
finance the vacation and retirement provisions (not discussed here).
Failure to pay the required contributions to the benefit fund, or
falsification of forms, or failure to file necessary forms is considered a
violation of the collective bargaining contract.
Employers’ contributions are turned over to the appropriate joint
boards of the union which are responsible for the administration of the
programs. According to several of the more important plans, the
amount of benefit, as well as the rules and regulations under which
claims are paid, is determined by a committee of employer and union
representatives. In other instances the determination of benefits and
other rules is entirely in the hands of the union. Under all the pro­
grams the actual payment of claims, as well as appeals from decisions
of the benefit committee, is handled through the union’s office,
Union health centers.—The I. L. G. W. U. programs stress medical
care, and the union has established health centers in most of the im­
portant clothing areas. The health center in New York City has been
in operation since 1912, the one in Philadelphia was established in
1943, and that in Fall River was opened in 1944. Until 1943, the
New York center was financed by local union contributions, any
deficits being met by the international. Since then, a large part of this
center’s financial support has been derived from funds paid to the
union under health-insurance programs included in union agreements.
The health center’s services have been expanded considerably during
the past year, and it now acts as an agency for the certification of
benefit claims, its physicians making recommendations approving or
disapproving cash-benefit payments under the insurance program.
The Philadelphia health center is an outgrowth of a collective-bargain­
ing agreement between the union and the women’s apparel manu­
facturers’ association which also established health benefits. The
Fall River center, also established under the terms of a collective
agreement, provides medical services to some 4,000 members in that
city and the surrounding New England area, including Providence,
New Bedford, West Warwick, Pawtucket, Warren, and Taunton.
Each member of the I. L. G. W. U. living or working in the vicinity
of New York, Philadelphia, or Fall River is entitled to free annual
medical examinations, as well as free X-ray, electrocardiographs, and
other medical services furnished at the centers. Members in the
New York dress industry also receive free optical examinations every
3 years, under a recently negotiated plan, and treatment or glasses,
when necessary, furnished without cost, at the union’s health center.
Health benefits 'provided.—To be eligible for benefits, the worker
usually must have been a member of the union in good standing for
at least 6 months (in some cases 9 months), with not more than 4
weeks’ dues unpaid.
Although some of the agreements recently negotiated do not contain
detailed provisions as to the amount of*benefits, the usual allowances
range from $6 to $15 weekly, for from 10 to 13 weeks in any year,
with payments beginning on the eighth day of illness. Hospitaliza­
tion benefits are $2 to $5 a day for 21 days, with some plans limiting

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

206

MONTHLY LABOR REVIEW— AUGUST 1945

hospitalization benefits to 12 days. Neither weekly disability nor
hospital benefits are paid in pregnancy cases, but one plan provides a
$25 cash benefit for postnatal care. In tubercular cases, the workers
are given the choice of a cash benefit payment of $200 to $250, or
treatment in a sanitorium for the entire period of illness.
N E W Y O R K C ITY L A U N D R Y W O R K E R S

(c. I .

O .)

The New York City Laundry Workers Division of the Amalga­
mated Clothing Workers of America and three laundry employers’
associations have negotiated a benefit plan which is financed by
employers, who contribute 1 percent of their weekly pay rolls. These
funds are administered by a seven-man union board, known as the
“benefit fund committee,” and sickness, nonoccupational accident,
and death benefits are provided. A benefit fund and claims office,
patterned after a regular insurance company office, has been estab­
lished by the union to take charge of the day-to-day administration
of the program; but appeals from decisions of the claims office may be
made to the benefit fund committee.
Weekly sickness and accident benefits of $8 per week are payable
after the first week of disability, up to a maximum of 12 weeks in any
year. In addition to the cash payments, visiting nurses are sent to
members’ homes when necessary, but hospitalization benefits are not
provided. Unemployed members are eligible for benefits upon
special arrangements with the benefit fund committee.
U N IT E D H A T T E R S , C A P , A N D M IL L IN E R Y W O R K E R S ( a . F . OF L .)

Cap and men’s hat locals of the United Hatters, Cap and Millinery
Workers in several cities, including New York, Chicago, St. Louis,
and Philadelphia, have recently negotiated union-administered health
benefit agreements. The employers contribute 2 percent of their
weekly pay roll to the local’s health benefit fund, which is administered
by a board of trustees. In some locals the board is chosen by the
membership only; in others the employers are also represented.
Under the New York cap makers’ plan, disability benefits amount to
50 percent of the members’ average weekly' earnings, up to a maximum
of $30 per week for 20 weeks during any year, with benefits starting
on the first day in accident cases and on the eighth day in sickness
cases. Hospitalization benefits are $4 daily for a maximum of 30
days during any 1 year; surgical benefits are not to exceed $50 for
any operation.
Jointly Administered Plans
There are two principal types of jointly administered health-bene­
fit plans provided in current union agreements—those which are
confined to a single company, and those which are negotiated on an
industry- or area-wide basis. Under the single-company plans in­
cluded in this report, a fund is built up by employees’ dues or pay-roll
deductions, with the employer either matching the employees’ pay^ment, or, at least paying the costs of administration. A committee
of union and company representatives is usually designated to admin­
ister the program. Unlike group-insurance plans underwritten by

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

h e a l t h - b e n e f i t p r o g r a m s u n d e r c o l l e c t iv e b a r g a i n i n g

207

private insurance companies, in which profits, if any, are returned
to policyholders in the form of dividends, the surplus in these plans is
used for increasing benefit payments or for reducing contributions.
Individual-company plans of this type are not very common, although
a few are in effect in the chemical industry.
Jointly administered plans which cover an entire industry or area
are more common and include more than a third of all the workers
under benefit plans included in this report. The largest single group
of employees covered by any benefit program established through
collective bargaining is the group covered by the jointly administered
program negotiated by the Amalgamated Clothing Workers with the
Men’s and Boys’ Clothing Manufacturers’ Association. Plans of
this type also exist in some branches of the women’s apparel industry,
in the millinery industry, and in a recently* negotiated agreement
covering retail and wholesale clerks in St. Louis.
Although these benefit programs are jointly controlled, day-to-day
administration is actually in union hands. The employers partici­
pate in establishing the general terms and policies and also exercise
veto power over proposals to modify existing benefit arrangements.
Most of the plans, including all those negotiated by the Amalgamated
Clothing Workers of America, place the entire cost upon the employer
AMALGAMATED CLOTHING WORKERS OF AMERICA INSURANCE PROGRAM

More than 200,000 workers are covered by the jointly administered
health-insurance programs negotiated by the Amalgamated Clothing
Workers of America (C. I. O.), about 125,000 of whom are employed
by companies under the Aden’s and Boys’ Clothing AJanufacturers
Association agreement. This latter plan is an outgrowth of negotia­
tions which were initiated by the A. C. W. A. in 1941, at which time
the association and the union agreed to conduct a study of the possi­
bility of establishing a health and insurance fund on a national basis.
In February 1942 the parties agreed on a plan, and a standard form
was drawn up, to be used as a supplement to the individual collectivebargaining agreements negotiated with all employers belonging to the
association. Contributions to the fund began at that time, but pay­
ment of benefits did not begin until February 1, 1944, by which time
sufficient reserves had been accumulated. This program now oper­
ates in 17 States, covering most of the important organized men’s
clothing markets. An additional 15,000 workers are covered under
a separate but similar insurance program in effect in Chicago.8
The A. C. W. A. national insurance plan is financed entirely by man­
ufacturers and contractors, who contribute 2 percent of their weekly
pay rolls into the Amalgamated Insurance Fund, which is adminis­
tered by a board of trustees composed of 12 members of the executive
board of the union. Before the trustees can “ enter into any insur­
ance contract, or purchase any insurance policy, or make any change
in any outstanding policy * * *” they must obtain the consent of
an advisory committee, composed of 11 members of the association
representing the employers. The resources of the Amalgamated
Insurance Fund are employed to operate the Amalgamated Life
8 In Chicago, in 1940, the clothing manufacturers and contractors and the A. C. W. A agreed to convert
a previously existing unemployment-benefit fund, made up by employer’s contributions into a health and
benefit plan. This benefit plan the first of its kind in tbehndustry, was institutedafier ¿ h e p a S ofthe
Federal Social Security Act had made this private unemployment-insurance program obsolete.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

208

M ONTHLY LABOR REVIEW-— AUGUST 1 9 4 5

Insurance Co., a capital-stock insurance company chartered under
the laws of New York State, with a board of directors composed of
union and employer representatives. This company issues policies
to eligible members of the A. C. W. A. employed by contributing
employers and pays the benefits.
All workers in the men’s clothing industry (including learners and
clerks, as well as production workers) who have been members in the
A. C. W. A. for at least 6 months, and who have worked for an em­
ployer at least a day in each of 6 different months, of which 1 month
must have been within the last 4 months, are automatically in­
sured. Employees in closely connected branches of the clothing
industry, such as single-pants shop workers, sportswear, and sheep­
lining and leather workers are also covered by the A. C. W. A. insur­
ance program. Employees are covered as long as they are employed
in any shop included in the plan, and for 4 months after lay-off from
the industry, but insurance terminates upon withdrawal, suspension,
or expulsion from the union. If a worker is disabled and eligible for
weekly benefits on the day insurance terminates, the insurance con­
tinues until the end of the period for which benefits are payable.
Weekly benefits for sickness and nonoccupational accidents are $12
for men and $8 for women, for a maximum of 13 weeks in any 12
consecutive months (rather than for any continuous disability).
For accidents resulting in disability of 7 days or more, payment of
benefits begins from the first day of such disability. In the case of
illness resulting in disability for 14 days or more, payment of benefits
begins on the eighth day of disability. Confinement to bed or at
home is unnecessary, but the member must be under a doctor’s care
and unable to work, and must have notified the office not later than
20 days after the first day of his disability. The plan includes hos­
pitalization benefits of $5 per day for 31 days in any one year, and $25
for additional expenses. No regular weekly or hospital benefits are
paid for disability resulting from pregnancy, but a flat $50 maternity
benefit is furnished.
U N IT E D

R E T A IL ,

W H O L E SA L E

AND

DEPARTM ENT

ST O R E

EM PLOYEES

OF

A M ER IC A (C . I . O .)

The St. Louis Council of the United Retail, Wholesale and Depart­
ment Store Employees of America and a number of employers recently
completed a plan to establish a health institute to be financed by the
employers, who will contribute at the rate of 3}£ percent of their total
pay roll, for all workers covered by the agreement.
The Labor Health Institute, as it is called, will be administered by
a board of trustees composed of 18 members of the union, 6 employer
representatives, and 3 representatives of community interests. An
advisory council, composed of a representative from each signatory
firm and a union member from each such firm, will advise on policy
and act as the connecting link between the trustees and the employees
in each plant. A medical director, empowered to select other pro­
fessional personnel, will be selected by the trustees, who are also
empowered to appoint a manager who will be responsible for the
administration of the institute.
The program does not provide cash weekly benefits, but offers the
following services, the details of which have not yet been formulated:

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HEALTH-BENEFIT PROGRAMS UNDER COLLECTIVE BARGAINING

209

Hospitalization; periodic health examinations; general practitioners’
and specialists’ care in the office, home, and hospital; maternity care;
surgery and deliveries; routine laboratory tests; X-rays, fluoroscopic
studies, and unusual laboratory tests; physiotherapy (sun lamp,
diathermy); injections (except unusual medicines); periodic dental
diagnosis; periodic eye diagnosis; orthopedic care; personal counseling
service; industrial-health and safety consultant service; health educa­
tion; health conservation (preventive measures, vaccinations, etc.);
revolving fund for new projects such as day nursery, rest camps;
reserve for institute functions during unemployment.
Workers who wish to do so, will be permitted to make their own pri­
vate payments to the institute for the purpose of extending some of
these services to their dependents. The plan specifically excludes
certain services; for example, preexisting chronic diseases which are
listed as exemptions when the initial examination is completed (no
exemptions to be applied to members in the union when the plan goes
into effect for any group), compensable accidents, and dental care.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FCmyiCTORY
BUY

UNITED

STATES

WAR
BONDS
AND

STAMPS

The National Budget as an Aid in Reducing Deficits
Under Assured Full Employment
By J ohn H. G. P ierson , U. S. Bureau of Labor Statistics

FORMERLY, the dominant opinion was that serious and prolonged
unemployment must be due to wage and price rigidities, creating
structural maladjustments in the economy; or to artificially easy
credit policies, generating boom and inflation inevitably followed by
recession and deflation—in short, to interferences with the free and
normal working of competition. In recent years the proponents of
fiscal policy have gained in prominence, paying scant attention to
such doctrines and gravitating toward the position that the only way
to avoid unemployment is to have the Government so regulate its
expenditures and revenues as to maintain an adequate volume of
demand for current output. Many adherents of the earlier school
remain unconvinced; in their view the new policies, not content with
moderation of the admitted instability of the system, unbalance the
budget continuously and evade the fundamental issues.
In view of the shortness of time, it is important that common
ground be found, if possible, between these two views, so as to advance
the practical work in behalf of a postwar America free from unem­
ployment and also free from major price distortions and other disequilibrating factors (such as excessive income inequality) which
interfere with a balanced use of resources and necessitate large,
continuing deficits in the Federal budget. It is believed that such
cooperation is possible if there is agreement that full employment
should be definitely assured. The suggested meeting ground is the
national budget—more specifically the full-employment national
budget.1
The policies required for a general program to assure full employ­
ment may be divided into (a) basic policies to minimize long-run
deflationary tendencies and hence the need for deficit-creating com­
pensatory fiscal measures to maintain employment opportunity, and
(b) policies to “close gaps,” i. e., to compensate remaining deflationary
tendencies or, on the other hand, inflationary tendencies when and if
these appear. In this discussion, it has been assumed that adequate
compensatory fiscal policies will be adopted.2 They are, of course,
essential. It is clear, however, that everything possible should be
done to reduce our reliance upon them. This requires placing
emphasis on basic policies. The urgency of the need furthermore
suggests the advisability of a systematic approach such, for example,
as modern industrial research has learned to employ.
i The “national budget,” as the term is here used, is a statement summarizing for a given year the various
types of expenditure for the goods and services currently produced by the economy—expenditures by busi­
ness, by Federal, State, and local government, and by consumers. A full-employment national budget
is one in which this total of expenditures is large enough to buy the volume of output produced when there
are employment opportunities available to all persons able and wanting to work. The magnitude of this
total depends, of course, on price and cost levels. It should not be so large as to induce price inflation.
3 Policies of this type are discussed in section IV of the author’s Fiscal Policy for Full Employment (National
Planning Association, Planning Pamphlets No. 45, Washington, M ay 1945); see also his The Underwriting
of Aggregate Consumer Spending as a Pillar of Full-Employment Policy, in American Economic Review,
March 1944.

210


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NATIONAL BUDGET AND FULL EMPLOYMENT

211

Organizing Effort and Pooling Information Toward Identifying
Desirable Basic Policies
Drawing upon experience, especially prewar experience, it is possi­
ble to prepare, as a working tool, a picture of how the national budget
might normally look in a postwar year, assumingllevels of business
capital expenditures, regular government expenditures, and con­
sumer expenditures consistent with the observed historical data, and
assuming that compensatory fiscal policies are applied to close any
remaining gap so as to maintain full employment. A good deal of
work along these lines has already been done both in and out of
government. This projected normal budget will, of course, vary in
accordance with assumptions as to year and price level, and also in
accordance with the way in which the data on trends are interpreted
and applied to the imagined postwar situation. The margin of un­
certainty thus introduced is not, however, of importance for present
purposes. Certainty would be needed only if it were a question of
trying to fill exactly a gap whose size was accurately known in advance.
That, of course, is not the situation. It is impossible to foresee the
size of the gap precisely, and the necessary instrument for final
adjustment when a measureable gap actually opens up is compensa­
tory fiscal action and not policies of the basic type. A so-called
'‘normal” estimate is therefore supposed to supply only a scaffolding
of reasonably adequate dimensions to which a variety of anticipated
“abnormal” developments and possible policy measures can be
attached experimentally, in the mind’s eye, for purposes of|a rather
systematic appraisal of their potential effects.
It is immediately apparent that any normal economic picture will
be modified in a favorable way, during the early postwar period, by
several unusual factors arising out of the war situation, notably
accumulated war savings and deferred demands both at home and
abroad. These effects will follow more or less automatically, assum­
ing that general confidence and prosperity are maintained. On the
other hand, other and more permanent favorable effects will wait
on the adoption of new policies with respect to taxation, competition
and monopoly, wages, social security, foreign investment, etc. As­
surances that employment, national income, and the total market
for the output of industry and agriculture will be sustained should
also be mentioned among these policies, since such commitments could
in themselves have a powerful effect in increasing private expendi­
tures and reducing the necessity for deficit financing. Thus, con­
sideration needs to be given to the following subjects, among others:
War savings and deferred demand:
Abnormal consumer demand.
War-caused deficiencies in plant, equipment, and inventories.
Foreign demand for relief and reconstruction.
Deferred public improvements.
Taxation.
Banking and currency.
Competition and monopoly:
Antitrust action.
Patents.
Monopoly regulation.
Cartels.
Special aids to new and small business (finance, research, etc.).

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

212

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

Wages:
Higher wage-price ratios.

Minimum wage.
Annual wage.
Agriculture:
Commodity-support programs.
Miscellaneous aids.
Social security:
Broader provisions.
Pay-as-you-go financing.
Foreign policy:
Foreign investment.
Commercial policy, etc.
Housing and urban redevelopment.
Health program.
Education program.
Conservation and regional development.
Employment service, etc.
General assurances:
Insured full employment.
Insured full employment plus insured consumer market.
Capital budget.

This list is, of course, merely illustrative and also incomplete in
other respects. The broad categories shown simply indicate certain
convenient points of departure. Clearly, before the effects of a
policy not yet adopted can even be guessed at, the content of the
policy must be specified in some detail.
Once specification is supplied, the main questions are: (1) Just
how—i. e., at what point—would each of these various developments
or policies be likely to affect the national budget as previously de­
scribed, and about how large an effect would it be reasonable to ex­
pect from each? (2) As far as any given change in policy is con­
cerned, would it require new legislation, an Executive order under
existing legislation, or merely a campaign of education and publicity?
Illustration of Analytical Procedure
How the first of these questions may be attacked is illustrated in
the accompanying table, which presents a hypothetical example
of how the national budget might react to the adoption of new policies
designed to promote competition and limit the restrictive effects of
monopoly. It must be emphasized that this illustration is purely
hypothetical, in that the indicated quantitative effects of the assumed
new policies A, B, C, etc.,3 have been arbitrarily chosen and do not
represent an attempt at actual evaluation or probabilities. The socalled estimated situation under present policies (column 1) repre­
sents a rough blocking in of magnitudes that might be reasonable
under certain assumptions but are here intended as illustrative only.
Other examples might equally well have been chosen. For in­
stance, it is evident that certain types of tax policy would increase
the relative share of disposable income in the hands of families and
individuals with small incomes, thereby increasing consumer ex­
penditure and reducing the tendency to save. Other forms of taxation
might especially encourage private capital expenditures; still others
might reduce undistributed corporate profit, etc. Anything that
increased the percentage of income going to wages would also tend
3 Content not specified; as is well known, we are still a long way from agreement on any such policies.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

213

NATIONAL BUDGET AND FULL EMPLOYMENT
HYPOTHETICAL EFFECT OF HYPOTHETICAL’ COMPETITION AND
MONOPOLY POLICIES ON "FULL-EMPLOYMENT NATIONAL BUDGET"
[Amounts in B illio n s of Dollars]
Estimated S ituation
S itu a tio n
Under
Under
Assumed
Present
New
P olicies P olicies
Gross national product assuming
1U11 employment......................................................
(a) Private gross c a p ita l expenditures 2 . .
(b) Government expense for goods and services
(c) Consumer expenditures:
1. assumed gross national product. . . .
2» deduct: business taxes .......................
3. deduct: depreciation e t c ......................
4. equals: net national income................
5. deduct: corp. undiv. p r o f i t ................
G. deduct: so cia l s e c u rity taxes. . . .
7a.add: so cia l se c u rity b e n e fits . . . .
7b.add: other tra n sfe r payments . . . .
8. equals: income payments.......................
9. deduct: personal taxes .......................
10. equals: disposable income...................
11. deduct: individual saving 3 ...............
12. equals: consumer expenditures . . . .
Total expenditures, (a) + (b) + (c) 12 . . .
D eflationary gap (cf. lin e 1 )...........................
Government d e f i c it required to close gap . .
Savings and investment:
Savings:
P rivate (3 + 5 + 11) .......................................
Government (6 - 7 a )...........................................
T o ta l......................................................................
P rivate investment (item (a)) ...........................
Savings-investraent gap .......................................

185.0
25.0
25.0

Sh ows e f f e c t 0 o f p o l i c i e s
A and B, w h ic h s t i m u l a t e
ne w i n v e s t m e n t b y f a c i l ­
i t a t i n g freedom o f e n t r y ,
use o f p a te n ts , e tc .

185.0
16.0

Sho ws e f f e c t ^ o f p o l i c i e s
C , 1), a n d E, w h i c h r e d u c e
t h e p r i c e s o f "monopoly"
produc t s , hence a ls o the
volum e o f e x p e n d i t u r e
n eed ed t o buy a f u l l em ploymen o u t p u t , and th e
amount o f t a x r e v e n u e n e e d ­
ed to co v er r e g u l a r expend­
i t u r e s o f governm ent (as
w ell a s , i n c i d e n t a l l y , the
ta x b a se in so f a r as de­
p e n d e n t on p r o f i t ) . 7

10.0

159.0
3.0
5.6
1.6

2 .8

154.8
11.8

143.0
15.6
127.4
177.4
7.6
4 7.6 *

Sho ws e f f e c t 6 o f p o l i c i e s
A - E, w h i c h r e d u c e m o n o p o l y
p r o f i t , in c re a se the re la ­
t i v e s h a r e o f t o t a l income
g o in g to low-income groups,
and t h u s r e d u c e s a v i n g by
creasin g th e "aggregate
p r o p e n s i t y to consum e." '

28.6
4.0
32.6
25.0
7.6

Government revenues and expenditures:
Taxes (2 + 6 + 9)
pxcluding d efi-”| 33.4
Government expense ((b) + 7a + 7bNci t operations
♦ (6 - 7a)) *
Lto close gap J 33>4

32.9
32.9

1 The y e a r m ig h t b e 19 4 8 , a s s u m i n g 1944 p r i c e s e x c e p t t h a t "m onopoly " p r i c e s a r e b y h y p o t h e s e s
i n co lu m n 2 ; s e e f o o t n o t e s 2 a n d 3 f o r assu med d e v i a t i o n s f rom " n o r m a l" t e n d e n c i e s .

reduced

2 Includes
15 b i l l i o n d o l l a r s i n p l a n t a n d e q u i p m e n t a n d . 2 b i l l i o n d o l l a r s i n i n v e n t o r y a c c u m u l a t i o n
on a c c o u n t o f d e f e r r e d de m and, a nd 2 b i l l i o n d o l l a r s i n n e t e x p o r t s w h ic h assum e s m o d e r a t e G overnm ent
encouragem ent•
3 Assum es 3 b i l l i o n d o l l a r s

less

s a v i n g t h a n " n o r m a l" on a c c o u n t o f a c c u m u l a t e d w ar s a v i n g s .

4 W i l l e x c e e d s i z e o f g a p ( s e e p r e v i o u s l i n e o f t a b l e ) b y a m o u n t o f ( a) r e d u c t i o n i n p r i v a t e c a p i t a l e x ­
p e n d i t u r e s i f g a p i s c l o s e d t h r o u g h s u p p l e m e n t a r y p u b l i c i n v e s t m e n t , o r (b) a d d i t i o n s to s a v i n g i f g a p i s
c l o s e d th ro u g h tax r e d u c t i o n s o r t r a n s f e r paym ents t h a t in c r e a s e consumer incom es.
5 A d d i t i o n s t o s o c i a l - i n s u r a n c e r e s e r v e s ( 6 - 7 a ) a r e i n c l u d e d w i t h G ove rnment e x p e n d i t u r e s t o i n d i c a t e
l e v e l o f t o t a l ta x e s r e q u i r e d t o b a la n c e the b u d g e t u nder p r e s e n t a c c o u n tin g m ethods.
6 A m ou n t o f e f f e c t

is a r b itr a r ily

a s s u m e d ; no a c t u a l e v a l u a t i o n

the

intended.

7 P a r t o f t h e r e d u c t i o n o f i n d i v i d u a l s a v i n g m i g h t by a t t r i b u t e d t o s m a l l e r d i s p o s a b l e in come r e s u l t i n g
f r o m p o l i c i e s C, D, a n d E ( i . e . , thte s a m e f o r m u l a a p p l i e d t o d i s p o s a b l e i n c o m e y i e l d s s l i g h t l y s m a l l e r
s a v i n g i n co lu m n 2 t h a n i n c o lu m n 1 ) ; f o r s i m p l i c i t y t h i s e f f e c t i s n o t shown s e p a r a t e l y b u t i s com bin e d
w i t h t h e e f f e c t b y w ay o f r e l a t i v e r e d u c t i o n o f t h e i n c o m e s h a r e g o i n g t o p r o f i t .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

214

MONTHLY LABOR REVIEW— AUGUST 1945

to increase consumer expenditure in relation to consumer saving
and would therefore reduce the need for deficits to sustain total
demand unless the measures in question cut into profit to the point
where private production was curtailed as a result. Pay-as-you-go
financing applied to the social-security system would expand total
income payments, and hence consumer spending, by reducing socialsecurity taxes without changing the established scale of benefits.
A public hospital-construction program would tend to narrow the
deflationary gap somewhat if financed through tax increases that
chiefly affected savings, unless private investment reacted adversely
to the higher taxes, and it would clearly increase disposable income
and consumer expenditure if a capital budget were set up so that only
interest and amortization were treated as current costs to be covered
by taxation. Similar or related considerations apply to any other
item on the list.
Naturally, in studying the problems in this field, it is not always
necessary to begin by taking a given policy and trying to determine
its several main effects (if there are several) upon the national budget.
There may sometimes be advantages in taking a given section of the
budget—such as, for example, the gap between national income and
income payments—and reviewing the several policies by which this
particular relationship might be improved.
Implications for Action
The purpose of the table here given, with its purely illustrative
quantities, is to show that it ought to be possible to narrow down
arguments over policies that are thought to have an effect on em­
ployment, by indicating how or where these effects are supposed to
appear in the national budget. How much then becomes the next
question. Many exact answers should not be expected, and some
persons will be tempted to assert that even the roughest approxima­
tions are out of the question. This need not be granted offhand,
however, especially in view of the practical importance of achieving
a better understanding than now exists of the relative quantitative
significance of some of the measures most widely advocated as means
of promoting expansion of private enterprise and limiting the tasks of
government.
In summary, the full-employment national budget, because of its
stability, provides the nearest thing to laboratory conditions the
appraiser of economic stimuli is likely to see. Doubtless it may be
impossible to show, in terms of this budget, that the assured or mini­
mum effect of the basic policies proposed and certain to be adopted
exceeds the maximum deficiency of expenditure and, finally, of em­
ployment, to be expected without them. This will not detract from
the necessity of framing and securing enactment of basic measures
that will at least greatly improve the self-activating power of our
economy. On the other hand, it will also demonstrate that those
who object to providing for the use of compensatory fiscal measures
in a supporting role are satisfied to let full employment take its
chances.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wartime Productivity Changes in the Airframe Industry1
Summary
THE phenomenal expansion of the aircraft industry after Pearl Harbor
was accompanied by a 200-percent increase in output per man-hour
in airframe plants. The initial rise during 1942 was relatively modest.
In that year the advance of production and productivity was impeded
by many factors, including the entry into production of several new
and, at the outset, relatively inefficient plants, imperfect balance with
suppliers, the necessity for training large numbers of new and inex­
perienced employees and integrating them into plant work forces, and
problems of organizing mass production of new models and new de­
signs. During 1943, with many of the earlier problems settled and
with new plants getting into full swing, production and man-hour out­
put both increased rapidly. Productivity continued to increase dur­
ing the first part of 1944, but late in the year a small decline followed
reductions in both production and employment. Early in 1945, a
rise in man-hour output accompanied an upturn in production.
The rise in productivity was made possible by a concentration of
effort on standard designs produced in large volume. Conversion of
the industry to a mass-production basis was characterized by minute
specialization of labor, machinery, and hand tools, and by the sub­
contracting of an appreciable part of the work. Line-production
methods were applied to varying degrees in the different plants. New
plants were designed for large-scale production of specified models.
Productivity data relating to individual plants and types of air­
craft suggest that unit labor requirements in all plants tended to de­
cline at fairly similar rates with increasing production experience.
For selected types of planes, labor requirements dropped by amounts
ranging from 27 to 35 percent with every doubling of cumulative
output. The absolute level of man-hours required per pound of air­
frame was somewhat higher for fighter planes than for standard 4engine bombers, but in general varied over a similar range for all com­
bat types and heavy transports. At comparable levels of production
experience, plants producing training, liaison, and light transport
planes reported unit labor requirements roughly a third as high as the
plants producing combat planes.
Immediately after the war, a sharp decline in aircraft production
is expected. A decline in productivity is also probable, since the
industry will lose some of the advantages of standardized production
in huge volume when output is reduced. On the other hand, pro­
ductivity should remain well above prewar levels, because of the sub­
stantial technical advances in manufacturing methods achieved dur­
ing the war. A gradual rise in productivity may commence after
facilities have been adjusted to the peacetime volume and type of
production, but for any given type of plane the wartime level may not
be reached for a considerable period. Liberal estimates suggest that
after 10 years the industry may again approach the wartime level of
i Prepared in the Bureau’s Productivity and Technological Development Division by Kenneth A.
Middleton.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

215

216

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

production in terms of numbers of planes. This can occur only if a
large part of the output is light private aircraft, for which labor re­
quirements are lower than for combat planes. The aggregate em­
ployment supported by the industry would thus fall short of the war­
time figure. It is generally agreed, however, that the industry will
provide employment for many more persons than were required be­
fore the war.
Significance and Scope of Study
During the past 4 years, aircraft manufacture has grown from
comparative unimportance to a position in the very first rank of the
Nation’s manufacturing industries.2 Figures on the production of
militar3r and large commercial aircraft indicate the extent of the in­
crease (table 1).
T able 1.—Production of M ilitary and Large Commercial Aircraft, 1940-44 1
Total airframe weight—
Year

1940
1941
1942
1943
1944 .

___________________________
___________________________ ______ ____
.
________________________ _______
___________ ________________ ______
.
______________________ ____ ___

Number of air­
planes

6,019
19,433
47,653
85, 405
95,237

Excluding spare Including spare
parts (in millions parts (in millions
of pounds)
of pounds)
23.1
81.4
275.8
654.2
961.1

90.5
314.7
758.3
1,099.7

1 This table includes the relatively small production of Canadian plants in the United States military
aircraft program. Canadian production and employment are excluded from table 2.

The introduction of mass-production methods has had far-reaching
effects on the relation of output to labor-input, as reflected in the
indexes and other data presented in this article. Records compiled
during the war provide the basis for conclusions concerning trends in
labor requirements for different types of plane as output rises. This
information is useful in preparing industry-wide production measures,
and it is also of value in forecasting future employment.
The present discussion refers to the airframe industry and subcon­
tractors only, excluding the production of gliders, aero-engines,
propellers, and certain other equipment. The airframe industry
proper is engaged in the assembly of complete airplanes and in the
manufacture of component parts for the airframe portion of the planes.
Airframe-assembly plants during the war have commonly subcon­
tracted a part of the work to other concerns, including other airframeassembly plants. Complete wing or tail units, for example, may be
made off site and shipped to the prime-contracting plant. Em­
ployment and hours data presented here have been adjusted to include
estimates for subcontractors. Employment in subcontracting for
airframe plants is estimated to have increased from about 10 percent
in 1941 to more than 20 percent in 1944, expressed as a percentage
of total employment in both prime and subcontracting plants. The
manufacture of engines, propellers, tires and tubes, radios, auxiliary
power plants, batteries, armament, and other parts not generally
manufactured in airframe plants is excluded.
■ See Wartime Development of the Aircraft Industry, in M onthly Labor Review, November 1944
(p. 909).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME PRODUCTIVITY CHANGES IN AIRFRAME INDUSTRY

217

Industry-Wide Measures
Output of airframe per man-hour approximately tripled during
the 3 years following the attack on Pearl Harbor. The greater part
of this increase occurred during the year 1943. Production declined
somewhat during the last half of 1944; employment diminished
steadily during the entire year 1944; and productivity also declined
during the latter part of that year, accompanying the general con­
traction in the industry. Early in 1945, when an upturn in production
occurred, productivity also increased.
T able 2.-—Indexes of Production, Employment, Man-Hours, and Productivity in the

Airframe Industry, January 1942-M ay 1945
Indexes (January 1942=100) of—
Month

Gross
Produc­ total
em­
tion
ployment

Man­
hours

Output
per em­
ployee

Output
per man­
hour

1942: January_____
________ - ___________ . . .
February_____
_________ . . . . . - ____
March______________________ _______ ____
April...... ...................- ..........................................- - ____
M ay___ ____,_______________ . .
June . . .
- __________ _____
July________________________________ ______
August__________ ________________ . . . .
September____. . . _____ ___________________
October... ---------- ------------------ ----------------N ovem ber.. . . . . . . . ___. . . . . . . . . . _
December . . . . . _____ . . .

100. 0
120. 0
148.1
146. 5
172.1
185.2
208.3
215.0
239.9
234.4
262.6
304.8

100.0
109.0
115.4
123.5
131. 3
142. 5
152.9
169.4
182.8
199.2
216.3
234.9

100. 0
105. 9
112.3
119. 7
125.4
134.4
142.6
159.3
171.2
186.2
203.9
222.9

100.0
110.1
128.3
118.6
131.1
130. 0
136.2
126.9
131.2
117.7
121.4
129.8

100. 0
113.3
131.9
122.4
137.2
137.8
146.1
135.0
140.1
125. 9
128.8
136. 7

1943: January_______________ . .
February___ _ ________ _ . . . . . . - - - --- --March_____ ____ ______ . . . ------- ------ _
April_____ _. _____________________ .
M ay__________________________ _______ .
June_________ _____ ___________ _____ .
July______________________________________
August. ________ ______________ ________
September.---------------------- -------------------------October... . . . . . . ------- -- . . . ------ -------November--------------- ---------- ------ ------------December _______ ________ ______ . . . .

277.7
333. 6
389.6
426.1
474.2
484.0
514.1
553.5
554.9
604.2
663.4
687.8

251.0
260.7
267.1
273.4
279. 0
287.0
293.3
295. 4
301.3
303.4
305.1
300.5

237.7
244.7
251.8
263.3
266.4
284.0
272.3
275.5
286.5
289. 2
290.7
280.3

110.6
128.0
145.9
155.9
170.0
168.6
175.3
187.4
184.2
199.1
217.4
228.9

116.8
136.3
154.7
161.8
178.0
170.4
188.8
200.9
193.7
208.9
228.2
245.4

1944: January. ------- -----------------------------------------February______________ . . . . -----------------March_______________ . . . . --------------------April__________________ . . ------------- .
M a y . . . ----------------- ------- ------------------June. _____ .
. . ---------------------- . . . .
July------------- ------ -------------------------------------A ugust____ _____ _ _____
. . . ----------Septem ber____ .
..
..
...
October____ ____ _ . . ............... .
. ..
November____________ _ . ...............
December ....* .---------- ---- ----------

746.8
769.7
842.3
786.9
841.1
791.3
754.1
739.0
730. 9
700.8
666.3
664.1

297.5
292.8
285.2
279.0
273.6
264.4
259. 7
250.5
241.4
235.0
233.0
232.4

289.6
283.2
273.0
265. 9
261. 9
253.6
246.9
239.7
225.6
223.5
223.9
224.8

251.0
262. 9
295.3
282.0
307.4
299.3
290.4
295.0
302.8
298. 2
286.0
285.8

257.9
271. 8
308.5
295.9
321.2
312. 0
305.4
308.3
324.0
313. 6
297.6
295.4

1945: January______
. ------ --------------- ------February------------------- --------------------March------------------ ----------------------------------April_________ . . . . ------- . . ---------- -----M ay........................................................... ..................

668.7
685.1
716.0
672.3
667.0

235.7
234.5
229.3
221.0
202.5

231.8
225.9
220.4
211.6
193.8

283.7
292.2
312.3
304.2
329.4

288.5
303.3
324.9
317.7
344.2

The indexes of production, employment, man-hours, and produc­
tivity for the airframe industry as a whole are presented in table 2.
The production measure is derived from airframe weight of complete
planes and spare parts accepted, divided into two categories: (1)
Combat planes and heavy transports and (2) trainers, liaison planes,
and light transports. The two groups were weighted by approximate
average man-hours required per pound of airframe in each category.
6 5 6 2 4 3 — 45—


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

3

218

MONTHLY LABOR REVIEW— AUGUST 1945

The employment index represents gross total on-site employment plus
estimated employment on subcontracted production. The man-hours
series was derived from the employment series and average weekly
hours of wage earners in prime contracting airframe plants. This
average-weekly-hours series is not strictly comparable with the em­
ployment series, since it refers only to wage earners rather than to all
employees, and does not include subcontracting. However, an
alternate series which does include many manufacturers of aircraft
parts and equipment but excludes plants converting to the production
of aircraft and parts since 1939 shows only minor deviations from the
series used here, and the latter is deemed accurate enough for the
present purpose of indicating general trend over the period. The
sources of the basic data used in the computations were the Army
Air Forces, the Aircraft Production Board of the War Department,
and the Bureau of Labor Statistics.
In these indexes, airframe weight accepted during a given month is
associated with the employment and man-hours data for the same
month. As a matter of fact, the labor involved in the acceptances of
a given month was actually performed only partly during the month
and partly during several preceding months. Various methods of
allowing for this lag are available, but it is clear from experimental
computations that such refinements do not alter the general impres­
sion given by the accompanying indexes as summarized above. The
main result is to attribute a small part of the indicated rise in pro­
ductivity to a slightly earlier period. The indexes are intended to
indicate only the general direction and extent of changes during the
period, and their month-to-month fluctuations are of little significance.
Factors Affecting Productivity
The tripling of output per man-hour which has accompanied the
wartime expansion of the aircraft industry is not surprisingly large,
since similar records have been shown by other industries in which
production has been greatly increased and massrproduction methods
introduced. It is the rapidity with which such developments have
occurred in aircraft that is remarkable.
The indexes show that a relatively small part of the rise in produc­
tivity occurred during the year 1942. During that year new plants
and additions to old plants were entering production and acquiring
staffs but in general had not attained optimum levels of production.
The entry of these new plants, reporting a fairly complete working
force but achieving only a small volume of output during their early
months, tended to depress industry-wide productivity.
The plants which ranked highest in volume of production during
1942 had generally not been designed for mass production of their
wartime product. Expansions and adjunct facilities had to be fitted
in as well as possible with the older part of these plants. The aircraft
models themselves were comparatively new, and production tech­
niques and plant arrangements were being evolved. During 1942
and 1943, subcontracting was gradually extended; scheduling of sub­
contracted and other parts was smoothed; and the total volume of
off-site production was increased. In the earlier part of the period,
however, production was sometimes delayed because essentia] com­
ponents were not on hand when needed. Design changes had to be

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME PRODUCTIVITY CHANGES IN AIRFRAME INDUSTRY

219

made in existing models to improve their effectiveness in operation or
to simplify; construction, temporarily impeding the development of
smooth production routines. Work on experimental types diverted
some labor from the main production models. Design changes and
experimental work were both probably more important, relative to
aggregate production, during the early stages of American participa­
tion in the war. During this difficult period, however, aircraft manu­
facturers cooperated effectively, both informally and through regional
associations. Scarce materials were shared, production information
disseminated, and research tasks parceled out to ensure competence
and avoid duplication.
In anticipation of labor shortages, the industry tended to hire new
employees as rapidly as possible, sometimes before they could be
set to work efficiently on production. A considerable amount of
time had to be spent by experienced employees in the training of the
new recruits. Both these factors worked against rapid rises in
productivity.
During the year 1943, the effect of many of the productivity-de­
pressing conditions was either eliminated or greatly reduced. The
major new plants had gotten under way during the year and in most
cases were rapidly approaching scheduled maximum output. These
plants had been designed for mass-production methods, often with a
specific plane model in mind, and were capable of achieving notably
high productivity levels. The models produced in the new plants
were in most cases identical with models already in production at
older establishments, where many special tools and techniques had
already been devised and difficulties overcome, paving the way for
rapid progress.
These mass-production techniques, so largely responsible for
doubling airframe output per man-hour between early 1942 and late
1943, are characterized by specialization of labor, machines, and
hand tools. The division of production into relatively simple jobs
would have been necessary to allow rapid training of a greatly enlarged
labor force, if for no other reason. Most prewar aircraft manufacture
was in small lots, and greater versatility of labor was therefore
necessary. The more minute division of labor was rendered practi­
cable during the war through the placing of large Government orders
for a standardized product. For similar reasons, a large capital invest­
ment in highly specialized machinery became feasible. Specialized ma­
chines for working with the light aircraft metals, complex contrivances
for riveting automatically large structural sections, subassembly lines
for making installations separately in four quarters of a bomber
nose—all became economical as a result of the demand for quantity
output of standardized models. Hand tools and gages were designed
for particular highly specialized uses. For example, at one plant
small tools were developed to install rubber insulation grommets over
fittings at the ends of cables. At another, a power-driven filing tool
was devised specially for smoothing the surface of the hood cowling,
an operation previously done by hand. These are random examples
of literally hundreds of developments.3
s Brief accounts of many technical innovations affecting the airframe industry have been brought together
in a recent monograph prepared by the Bureau of Labor Statistics for the TJ. S. Senate Subcommittee on
War Mobilization of the Committee on Military Affairs (79th Cong., 1st sess.), Monograph No. 2: War­
time Technological Developments (pp. 49-78).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

220

M ONTHLY LABOR REVIEW----AUGUST 1 9 4 5

Division of labor and specialization of machinery do not necessarily
imply line production with mechanical conveyors to move the work
through the plant. As a matter of fact, line assembly has been
employed to varying degrees in different plants, even in plants making
the same model. In one plant, much of the work may be done on a
single line, successive additions and installations being made to the
skeleton of the plane. In another plant producing identical planes,
a series of subassemblies may be built first, not being joined to form
a complete plane until rather late in the procedure. Man-hour out­
put may, nevertheless, be similar in the two plants. The production
technique actually adopted may depend on the nature of existing
buildings and equipment or the traditional methods of the company.
Critical surveys of procedures in older plants may suggest worthwhile
changes when production of similar planes is undertaken elsewhere.
Toward the end of 1944, a decline in productivity occurred. This
was preceded by a reduction in employment commencing at the end
of 1943 and a decline in production which started about the middle
of 1944. As production is reduced but not completely halted in an
appreciable number of plants, efficiency cannot be maintained and
the situation is reflected in industry-wide measures of productivit}n
When plants are entirely eliminated from the industry, however, the
change in industry-wide productivity depends upon the plant’s
efficiency relative to that of other plants as well as upon its relative
importance in total production. Early in 1945, an increase in pro­
ductivity accompanied a rise in production.
Measures for Specific Types of Aircraft
In the preparation of the industry-wide measures noted above it
was necessary to consult individual plant reports and compare the
levels of labor requirements for different types of planes. The results,
besides being helpful in constructing the industry-wide production
index, are of interest in themselves. In the first place, it was found
that every time a plant’s cumulative production of a given model
doubled, man-hours required per pound of airframe tended to decline
by a constant percentage. More specifically, after producing a
million airframe pounds of a given model, a plant might require 6
man-hours per pound; by the time it had produced twice as much,
or 2 million pounds, the labor requirements per pound of airframe
might drop 30 percent to 4.2 man-hours. As cumulative produc­
tion again doubled, reaching 4 million pounds, unit labor requirements
were likely to decline by another 30 percent, to about 2.9 man-hours
per pound.
Furthermore, the rate of decline in unit labor requirements was
found to be fairly uniform throughout the industry, the average for
different major classes of aircraft ranging from 27 to 35 percent.
Lines representing the course of unit labor requirements for these
major classes as production increases are shown in chart 1. Each
line represents the composite experience of several selected plants
producing the same class of plane. Charts 2, 3, and 4 illustrate the
use of individual plant data in arriving at the average lines. All of
the charts are on ratio scales, and a constant percentage decline in
unit labor requirements with successive doublings of cumulative
output appears as a straight line.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME PRODUCTIVITY CHANGES IN AIRFRAME INDUSTRY

221

1 1 1 chart 2 the plotted data and fitted lines are shown for a 1-engine
fighter plant and a 4-engine bomber plant. The plotted points are
based on monthly reports for each plant. For every point, the hori­
zontal scale indicates the total airframe weight of the model produced
in the plant up to the date of report, including spare parts. The
vertical scale measures the man-hours required per pound of air­
frame at that time, including an allowance for subcontracted parts.
Space limitations prohibit the showing of similar data for all plants,
but straight lines on the ratio scales were adequate representations
in all cases. In fact, the regularity and parallelism of the declines in
unit labor requirements, as production experience was gained in the
various plants, was remarkable. With each successive doubling of
cumulative production, man-hour requirements per pound of air­
frame fell at a fairly constant rate, averaging about 30 percent.
The derivation of average lines for standard 4-engine bombers and
for single-engine fighters is presented in charts 3 and 4. For each
class, several plants are represented by lines obtained in a manner
similar to that indicated in chart 2. An average line for each of the
two classes of aircraft is shown on the charts. Each point on this line
represents an average of the corresponding points on the component
lines, and the slope of the average line is also an average of the slopes
of the other lines. Similar composite lines were obtained for other
major types of aircraft.
In compiling information for individual plants, labor-requirement
data reported before December 1942 were excluded because of doubtful
comparability with subsequent figures. Some plants were excluded
from the averages because rough checks by means of supplementary
information cast doubt on the accuracy of reported figures; others
were excluded because at the time of the study they had not produced
enough planes to warrant comparison with other plants. Still others
were rejected because the scheduling of two or more similar models
made it difficult to ascertain what cumulative production figure
represented experience attributable to either one alone.
Lines representing the course of unit labor requirements as total
volume of output increases are a familiar device in the aircraft in­
dustry, where they are commonly called “learning curves.” A
general tendency for unit labor requirements to decline by a constant
percentage every time a plant doubles its cumulative production has
often been noted. However, it appears that earlier judgments of the
rapidity of this decline were unduly conservative. Some credence
had been given to a standard 20-percent reduction in unit labor
requirements with each successive doubling of output. The present
study indicates that a rate of about 30 percent would be a more
representative average.
In comparing levels of unit labor requirements, as distinguished
from the rate of change, it is necessary to choose some point which
places all plants as nearly as possible on the same footing with regard
to production experience. The standard here used has been the
cumulative airframe weight produced, as that is a better indicator
of the physical volume of work performed than is number of planes.
It should be emphasized that somewhat different results would be
obtained if the latter were used. A plant which has produced 500
4-engine bombers has produced about 12 million pounds of airframe;
but a plant which has produced 500 light liaison planes has turned


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

222

MONTHLY LABOR REVIEW— AUGUST 1945

REDUCTIONS IN UNIT LABOR REQUIREMENTS
WITH INCREASING PRODUCTION , AIRFRAME PLANTS
CHART 1

CHART 2

BASIC DATA FOR 2 SELECTED PLANTS

UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME PRODUCTIVITY CHANGES IN AIRFRAME INDUSTRY

REDUCTIONS IN UNIT LABOR REQUIREMENTS WITH
INCREASING PRODUCTION, AIRFRAME PLANTS
CHART 3

SELECTED PLANTS PRODUCING STANDARD 4-EN G IN E BOMBERS
M AN-HOURS PER POUND
OF AIRFRAME

M AN -H O U R S PER POUND
OF AIRFRAME

CHART 4

SELECTED PLANTS PRODUCING SINGLE ENGINE FIGHTERS
M A N -H O U R S PER POUND
OF AIRFRAME

UNITED STATES DEPARTMENT OF LABOR.
BUREAU OF LABOR STATISTICS


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M AN-HO URS PER POUND
OF AIRFRAME

223

224

M ONTHLY LABOR REVIEW----AUGUST 1 9 4 5

out less than 400,000 pounds. In order to reach 12 million pounds
of airframe, the latter plant would have to make some 16,000 airplanes.
Available information indicates, however, that it is possible to con­
tinue reducing unit labor requirements for small planes over a range
of output which is, in terms of airframe weight, comparable to that
attained in the manufacture of large planes.
Since the decrease in man-hours required per pound is similar for all
types, the relative positions are much the same at all points within
the range of cumulative output common to plants producing all types
of plane, that is, up to 8 million pounds of airframe (see chart 1).
Somewhat more man-hours per pound are required for 1-engine
fighters than for standard 4-engine bombers. The complexity and
compactness of a 1-engine fighter apparently present construction
difficulties that are greater in proportion to airframe weight than
those associated with the making of standard heavy bombers. Man­
ufacture of superbombers may entail additional problems, however,
since available data at the time of the survey indicated that the manhour-per-pound requirement is even higher for B-29 Superfortresses
than for 1-engine fighters. From supplementary statistics, not shown
here, it appears reasonable to conclude that composite learning curves
for light and medium bombers and for 2-engine fighters would lie within
the range demarked by the lines representing the other types of fighters
and bombers. Unit labor requirements in the manufacture of heavy
transports also lie in this range. Requirements per pound of air­
frame for trainer, liaison, and light transport planes, on the other
hand, are roughly only a third as high as for the combat and heavy
transport categories. This low level is probably partly attributable
to the relative simplicity of design of the lighter planes. Also, since
many of these light planes are adaptations of commercial types pro­
duced in quantity before the war, cumulative production on war
and immediate prewar contracts may in some cases be an inadequate
measure of total experience gained by the plants manufacturing
them.
As already pointed out, the results of this investigation of labor
requirements for different types of planes are useful in preparing an
industry-wide production measure. Since there is such a diversity in
size and complexity among the different types of aircraft, number
of planes is obviously inadequate as a production measure for the
whole industry, and airframe weight has been widely adopted instead.
It cannot be assumed that airframe weight is entirely adequate for
use in measuring productivity, however. More man-hours of labor
are usually required to produce a hundred thousand pounds of combat
planes than to produce a hundred thousand pounds of light training,
planes. Hence, a 100,000-pound increase in the production of bomb­
ers should be given more significance in the index than a similar in­
crease in the production of basic trainers. In other Amrds, a pound of
airframe in a bomber or fighter may represent more of a production
accomplishment than a pound of airframe in a trainer or liaison plane.
In the cumulative output range of 3 to 8 million pounds (a range
within which data were tabulated for all types of planes), the average
unit labor requirement per pound of airframe for combat planes and
heavy transports is about three times that for the lighter types of
aircraft (see chart 1). In preparing the industry-wide index, airframe
weight accepted was accordingly divided into two categories, with

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME PRODUCTIVITY CHANGES IN AIRFRAME INDUSTRY

225

combat planes and heavy transports included in one, and trainers,
liaison planes, and light transports in the other. The first category
was given a weight three times that of the second in computing the
production index. This procedure seemed adequate since unit labor
requirements for the light planes deviated materially from those for
the other types, which were not widely scattered. Moreover, the
trainer-plane group declined considerably in relative importance
during the period, and the establishment of its relative weight in the
index is therefore more important. Had there been no shift in the
proportion of any group in total production, the selection of weights
would have been of no practical significance.
Outlook for the Industry
It is generally accepted that aviation will be much more impor­
tant after the war than it was before, and that many more employees
will be required in aircraft manufacture than in prewar years. The
wartime expansion of the industry has been so great, however, that
an immediate postwar contraction is practically inevitable. At the
reduced level of output, the industry will probably lose some of the
efficiency attained at the wartime peak. Productivity will almost
certainly decline as plant operations fall below capacity. However,
the advantages conferred by wartime advances in production methods
and light-metal technology will persist, and productivity should re­
main above prewar levels. Later, after the industry becomes ad­
justed to the peacetime volume and type of construction, produc­
tivity should again move upward, but further developments in manu­
facturing techniques will probably be less numerous and far-reaching
than those of wartime. It may be several years before productivity
in the manufacture of some types of aircraft again reaches the war­
time level.
The composition of peacetime production may be more relevant to
the level of employment in the industry than is the course of produc­
tivity in making any one type of plane. The more optimistic fore­
casts suggest that at the end of the first postwar decade the industry
may approach the wartime production level in terms of numbers of
planes. This can be achieved in peacetime only if a very large part
of the total output consists of light private planes, for which labor
requirements are considerably lower than for combat types and heavy
commercial transports. Therefore, even if liberal estimates of post­
war aircraft demand prove correct, it is too much to expect that after
10 years the industry will support as much employment as it does at
present. Nevertheless, there is every reason to believe that employ­
ment in aviation after the war will be substantially greater than be­
fore the war, and this is perhaps the more important point.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Employment Conditions

Wartime Employment in Cotton-Duck Manufacture1
Summary
EMPLO YMENT in mills producing cotton duck and duck substitutes
began to rise as early as 1940, in response to expanded needs under
the national defense program. Peak employment was achieved late
in 1942, with mills more than meeting production requirements. A
15-percent cut-back in duck production in 1943, which followed Army
contract cancellations early in the year, was accompanied by a sig­
nificant drop in employment.
When military requirements, beginning in 1944, rose to unprece­
dented heights, duck mills found themselves without adequate labor
forces to produce the needed volume of goods. Other war industries
had expanded in the meantime to a degree that had virtuady exhausted
the local supply of labor, and were making inroads on duck mill
forces. The lower wage levels in the duck mills intensified the situa­
tion when the mills were confronted with greater and more pressing
demands and with constantly dwindling employment. The situation
became so serious that soldiers were furloughed to work in the mills;
prisoners of war were also utilized to some extent.
Military requirements for cotton duck will tend to be increased
rather than reduced by the victory in Europe. The heaviest demand
for cotton duck has always come from th 3 Pacific, partly because the
climate made the use of tents more prevalent in that theater of war
than in Europe. With the transfer of greater numbers of troops to
the Pacific, and the expanded needs for tents, hospital canvases and
supply coverings of all kinds, even greater production of cotton duck
will be required throughout 1945 than in 1944.
These developments make the supply problem even more serious
because of the continued inability of the industry to attain its produc­
tion goals. The output of duck and duck substitutes fell off 22 per­
cent from 1943 to 1944. Preliminary reports show that although
production during the first quarter of 1945 was almost a third greater
than during the fourth quarter of 1944, the total output was 30 percent
below requirements stated by the Army, Navy and other claimant
agencies. Estimated production for the second and third quarters of
1945, under present conditions, will fall about 25 percent below stated
requirements.
Production difficulties, which at one time arose from a shortage of
cotton yarn, have more recently been attributed to a shortage of labor.
Employment has dwindled as a result of such factors as Selective
1
Prepared in the Bureau's Occupational Outlook Division by Doris M . Graham and Evelyn W. Farber
under the supervision of Arthur W. Frazer.

226


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EMPLOYMENT CONDITIONS

227

Service withdrawals and the extensive migration of workers to other
industries. To measure this trend, to help in analyzing its causes,
and to provide a possible basis for remedial administrative action, the
Bureau of Labor Statistics undertook the present study.
Scope of Study
Previously the manufacture of cotton duck has not been classified
as a separate industry, and workers in plants engaged in this activity
have customarily been included in the Bureau’s estimates of employ­
ment in the cotton-manufactures industry, which produces all types
of cotton goods. From among the cotton-textile mills which cur­
rently report their employment to the Bureau, the reports of the 62
mills which manufacture cotton duck were selected for analysis. In
addition, 6 New York and Connecticut carpet mills, whose facilities
have been converted to the production of cotton duck and blankets,
were included in the study. These 68 mills produced 74 percent of
the cotton-duck output of the United States in the last quarter of 1944.
The mills, in their reports to the Bureau, indicate the number of
wage earners, and their total hours and earnings for a single week in
each month. Although most of the mills produce other items as well
as cotton duck, the employment data cannot be segregated by product,
and some workers included in the study were actually engaged in other
than cotton-duck production. However, the inclusion of such em­
ployees, does not particularly distort the movement of employment
nor obscure the other manpower problems of the duck mills.
In the present study, reports from the 68 mills were tabulated by
areas for selected months in 1942 and 1943, and for each month in
1944.2 Data for March 1945 represent the latest report on the current
situation.
National Trend of Employment in Cotton-Duck Manufacture
Duck was one of the first of the cotton textiles to go to war. The
demand for this product became urgent when England declared war
on the Axis and the United States began its national defense pro­
gram. Production doubled from 1939 to 1941. In 1942, tent twills
were added to the cotton-duck program, swelling the total output for
the year to 668 million yards—over three times the output in 1939.
Employment began to rise in 1940. By the time the peak was
reached late in 1942, total wage-earner employment in the 68 mills
studied was up to more than 69,000 workers. Recruitment of new
workers was comparatively easy. In addition, many workers within
the mills were transferred from the production of other types of cotton
goods to duck.
At the beginning of 1943, the Army began cancelling orders for goods
with which it was adequately supplied. A large volume of orders for
duck were cancelled, including principally shelter-tent duck and the
10%- and 12^-ounce duck used for pyramidal tents. The mill owners
affected by contract termination rediverted their looms to the manu­
facture of other priority items, or to civilian goods.3
2 A detailed table showing the data by months for each region, w ill be included in a forthcoming report.
3 Two mills, included in the sample, returned completely to the manufacture of cotton goods other than
duck. The first mill ceased manufacturing duck by October 1942; the second stopped duek production late
in 1943. Employment data were adjusted accordingly.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

228

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

With the slackening of demand, employment in the 68 duck mills
dropped to 66,000 in July 1943. Workers who had manned the duck
looms were, in many instances, transferred to work on other cotton
goods to replace labor lost either through Selective Service with­
drawals, which were beginning to take their toll from textile employ­
ment, or by the migration of textile workers to other industries—usually because of higher wage rates. Thus, the workers released in #
1943 by the termination of contracts for cotton duck helped to relieve
the growing manpower shortage in the production of other items.
In 1944, when the demand for duck became acute once more and
looms were again diverted to the manufacture of duck, there was no
source of labor upon which to draw. Weavers on carpet looms had
been transferred to duck looms with some success, but many such
emplojmes were unsuitable as duck workers. Older workers in
particular found it difficult to keep up the pace on duck production.
Declines in the number of wage earners continued unabated through
the first half of 1944, averaging nearly 1,000 workers a month. During
the summer months, the decline in employment slackened somewhat.
In September 1944, after other sources of supply of duck (substitu­
tions, conservation, reclamation, and salvage) had been exploited,
the War Production Board issued Directive No. 2 to Limitation
Order L-99. This directive sought the diversion of looms from lessessential items to duck manufacture. In further efforts to improve
the situation, a system of two 10-hour shifts instead of the usual
three 8-hour shifts was established in some mills. In addition, the
rapid expansion in production of high-tenacity rayon for use in tire
cord diverted some coarse cotton yarn, previously used for tire cord,
to canvas. In response to the L-99 directive, looms in the uphol­
stery and drapery fabrics sections of cotton mills were converted
to the production of duck tent twill. Although the order has netted
a substantial gain in production, it has also contributed much to the
problem of depreciation of machinery at a time when parts are hard
to replace. It is reported that some such looms were not suitable for
conversion. Looms on which light-weight goods are customarily
woven cannot be used efficiently on coarse fabrics and the hard wear,
when so utilized, threatens their later serviceability.
Considerable quantities of duck were being produced by carpet
manufacturers at the time of the study. From 75 to 90 percent of
the mills in the carpet industry were engaged in the production of war
material. It is estimated that operations on civilian merchandise
had fallen to about 10 percent of normal in the carpet mills.
Daring the closing months of 1944, employment in mills manu­
facturing cotton duck showed the first general increase after October
1942, rising by about 1,800 (or 3 percent) from September to De­
cember. This increase may have been the reappearance of a seasonal
fluctuation in labor supply which, before the war, was characteristic
of activity in cotton mills. Total wage-earner employment in De­
cember 1944 was 59,251, a drop of approximately 10,000 workers in
the 2 years from the peak in October 1942. Data for March 1945
indicate a decline of 1 percent in the number of workers from De­
cember. Since textile employment, especially that in the Southern
mills, customarily shows seasonal declines during this period of the
year, the drop from December to March is not alarming. In fact,
the absence of a larger decline in employment may indicate that the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

em ploym ent conditions

229

labor forces in duck mills are fairly well stabilized. If sucli a
stabilization of textile employment exists, it is at levels much below
that needed to meet current duck requirements.
Trend of Employment in Major Areas
The Northern mills, which employed about a fourth of the wage
earners in the 68 mills studied, began losing workers earlier than
those in the South, probably because of the wide variety of alternative
employment opportunities which expanding war industries offered
in the North. Although employment in the Southern mills increased
by about 10 percent during the first 10 months of 1942, the labor force
of Northern mills declined by about the same percentage. Pennsyl­
vania mills lost many employees to the shipyards around Philadelphia,
Maryland textile workers transferred to aircraft and shipbuilding,
and in New England employment declined in duck mills as workers
went into neighboring shipyards, munition plants, and foundries
and machine shops. Both the regular duck mills and the carpet
mills which had diverted their production to duck manufacture lost
labor, but the regular duck mills suffered the heaviest losses.
Subsequent declines in employment have been heavier in the
South. Employment in the North was fairly constant throughout
1944, but the Southern mills, between January and October, lost
more than 4,000 workers and by March 1945 had been able to raise
their employment only by about 1,100 above the low level reached in
October.
The South became increasingly industrialized during the war.
Munitions and airplane factories sprang up near textile mills, and
port areas became shipbuilding centers. Workers migrated to the
localities where these new industries, which offered higher rates and
greater take-home pay, were situated. Not only duck mills, but all
kinds of textile mills faced difficulties in retaining labor under such
conditions.
To recruit additional workers and reduce the high turn-over rates,
radio broadcasts and “spot” announcements before and after network
shows were channeled over Southern hook-ups, and local theaters
presented short films emphasizing the military needs for duck and
other textiles. In 1944, the War Department furloughed soldiers
to help relieve the manpower situation in cotton-duck mills, as had
been done in the rubber-tire industry and in the metal mines. A
survey of 77 mills throughout the South in February 1945 by the
War Manpower Commission indicated that 1,125 soldiers were man­
ning duck looms in Virginia, North and South Carolina, Georgia,
Alabama, and Mississippi. Prisoners of war were also being used to
some extent to relieve the manpower situation in duck mills.
Keen competition for labor developed in Georgia as wartime indus­
trialization began to have its effect in areas which before the war
either were textile centers or were principally agricultural. Tire-cord
mills in Georgia have also been competing for textile labor, and
average hourly earnings in the tire-cord mills have exceeded those in
duck mills in the same vicinities. As a result of these and other
factors, labor losses have necessitated a drop in the number of looms
in operation in the 18 duck mills in Georgia. It should be noted,
however, that only a little more than a fifth of all looms in operation
during the fourth quarter of 1944 in the 18 duck mills in Georgia

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

230

Mo n th ly

labor review —

AtiGtrsT 1945

were weaving cotton duck. Other looms were producing principally
coarse grey goods and colored yarn fabrics such as denims, chambrays,
and other essential goods.
South Carolina was the only State in which duck mills reported a
higher level of employment in December 1944 than in January 1942.
On the other hand, Texas duck mills, where employment is relatively
small, sustained proportionately heavier employment losses than
mills elsewhere, partly because of the competition with ordnance,
munitions, and aircraft factories in textile localities.
LANETT-LA GRANGE AREA 4

The Lanett-La Grange area, with mills in both Alabama and
Georgia, is the most important producer of cotton duck in the United
States, employing almost a fourth of all duck workers in the 68 mills
included in this study, and having the largest manufacturers.
There has been no precipitous drop in employment in this area,
but the mills have experienced persistent losses since October 1942.
Nevertheless, at the beginning of 1944, wage-earner employment was
still slightly above the January 1942 level. Thereafter, employment
dropped slowly until November 1944, at which point there was a
small increase in the number of wage earners over that reported the
previous month by the 8 establishments in this area.
ATLANTA AREA

Wage-earner employment in the duck mills in the Atlanta area
rose only 1.8 percent between January and October 1942, as compared
with an expansion of 18.5 percent in other cotton mills in the vicinity.
Beginning in October 1942, losses in employment were sustained in
all cotton-textile mills in this area, but the most precipitous declines
occurred in the 4 mills which did not manufacture cotton duck.
During the period October 1942-December 1944, employment in the
5 duck mills had declined by 26.4 percent, whereas the loss of wage
earners in the other cotton mills amounted to 40.8 percent. Houriy
earnings in the duck mills were somewhat higher than in the other
cotton mills.
T a b l e 1.—

Employment, Hours, and Earnings in Duck and Other Cotton Mills in Atlanta
Area, Selected Months January 1942-December 1944 1
Month

January 1942:
Duck mills____________________ _____
Other cotton mills____ . _ ____ . .
October 1942:
Duck mills________________ _____ __ ______
Other cotton mills____ ____ ______ _.
July 1943:
Duck mills______ ____________
Other cotton mills___ ______ _______ _
January 1944:
Duck mills_____________ ____ __ ____
Other cotton mills_____ ____ ____________________
December 1944:
Duck m ills.— _______________ _____ .
Other cotton mills___________________ ___________

Wage-earn­
er employ­
ment

Average
weekly
hours

Average
weekly
earnings

Average
hourly
earnings

4,316
2,866

38.2
39.2

$18.62
18.35

Cents
48.7
46.8

4,393
3, 396

40.4
40.2

22.71
21.93

56.3
54.5

3,991
2,780

37.8
40.0

22.68
22.17

60.1
55.4

3,854
2,368

40.1
41.5

24.13
23.42

60.1
56.5

3,235
2,010

44.0
44.2

28.19
27.27

64.0
61.6

1 Table based on 9 mills; 5 of these are producers principally of duck and the other 4 manufacture other
cotton goods.
* The Lanett-La Grange area discussed in this study is not identical with the Lanett-La Grange area in the
Bureau’s report: Cotton Goods Industry: Employment, Hours and Earnings and Turn-over Rates by
Areas, J anuary 1942-April 1944. The geographic coverage in the present study was extended to include
duck mills in the adjoining Columbus (Ga.) area.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EMPLOYMENT IN
SELECTED

MONTHS

68

COTTON DUCK MILLS

JANUARY 1942-DECEMBER 1944

EMPLOYMENT CONDITIONS

JAN

OCT

1942


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

JUL

'43

NORTH

JAN

OCT

1942

JUL

• '43

ALABAMA

DEC

'44

JAN

OCT

1942

JUL

'43

GEORGIA

JAN

OCT

1942

JUL

DEC

'43

'44

SOUTH CAROLINA

JAN

OCT

1942

JUL

DEC

'43

'44

TEXAS

to

CO

232

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

Although duck mills fared better with regard to labor than did
other cotton mills in the Atlanta area, manufacturers faced evermounting requirements for duck in 1944 and generally receding
mill forces. Labor shortages in the aircraft plants and in the iron
and steel mills in the Atlanta vicinity have made it almost impossible
to recruit the 1,350 workers which mills report as currently needed
for the production of cotton duck. Competing aircraft plants have
offered 50 to 75 cents per hour to prospective employees as compared
with 50 cents per hour offered by textile mills.
R O M E -C A R T E R SV IL L E -C E D A R T O W N A R E A

In contrast to events in the Atlanta area, employment in the 4
duck mills in the Rome-Cartersville-Cedartown area rose 12.7 percent
from January to October 1942. Between October 1942 and July
1943, however, employment declined in the duck mills despite the
fact that in the same locality employment increased in the other cotton
mills. Tire-cord mills, the principal employers of textile labor in
this area, continued to increase their mill forces even as late as January
1944. Since July 1943, duck mills consistently had lower average
hourly and weekly earnings and a shorter workweek than the other
mills, which probably explains their comparative difficulty in
recruiting workers.
T able 2 .— Employment, Hours, and Earnings in Duck and Other Cotton M ills in RomeCartersville-Cedartown Area, Selected Months January 1942-December 1944 1
Wageearner
employ­
ment

Month

January 1942:
Duck mills_________ __________
Other cotton m ills__ ____ . . . ._
October 1942:
Duck mills________ _______ _
Other cotton mills__________
July 1943:
Duck mills_______________ _____
Other cotton mills__ . . . .
January 1944:
Duck mills__________________
Other cotton m ills. ________ . . .
December 1944:
Duck mills_____ ________ .
Other cotton mills_____________

Average
weekly
hours

Average
weekly
earnings

Average
hourly
earnings

3, 022
11,032

42.0
40.7

$20.13
20.28

Cents
48.0
49.8

3,405
11,495

44.3
42.7

24. 21
24.07

54.7
56.4

3,156
11,850

42.1
44.3

22. 54
25.19

53. 5
56.8

3,068
11,644

42.3
44.5

23.14
25.74

54.6
57.9

2,953
10,818

42.0
45.6

26.15
29. 39

62.2
64.4

1 Table based, on 11 mills; 4 of these are producers principally of duck and 7 manufacture other cotton
goods.

Average Weekly Homs
A loss of 300,000 man-hours per week occurred between October
1942 (when employment was at its peak) and December 1944—a drop
of 10.7 percent in labor input for this period. The loss in man-hours
would have been even greater had not the rise in average weekly
hours per employee partly balanced the drop in employment. There
was an increase of 3.5 hours per week per eiAployee during the 3-year
period, as average weekly hours in the 68 duck mills rose from 39.7
in January 1942 to 43.2 in December 1944. In general, the average
weekly hours in duck mills were higher than hours in mills producing
other cotton goods.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

233

EMPLOYMENT CONDITIONS

Texas mills almost consistently held the lead in average hours
worked per week per employee. From January 1942, when an
average of 43.6 hours was worked per week, until December 1944,
when the average had risen to 47.0 per week, duck mills in the Texas
area led not only all of the cotton-duck segment, but also all of the
cotton-goods industry. At no time since January 1942 have average
weekly hours in the Texas area fallen below 44.0 hours per week.
Nevertheless, disproportionately high losses in employment occurred
in that area between 1942 and 1944, so that total weekly man-hours
declined continually after July 1943.
Average weekly hours were next highest generally in the mills in the
northern area. The carpet mills in the North reported lower weekly
hours than the neighboring duck mills, except in October 1942 and
April 1944.
The Alabama mills, which averaged 41.2 hours per week in December
1944, evidenced, on the wdiole, the lowest weekly hours in the cottonduck sample. In the Lanett-La Grange area hours worked have
continually averaged less than 40 per week.
Average Hourly and Weekly Earnings
The cotton-goods industry is characterized by a relatively low wage
scale, and average hourly earnings in the duck mills are only slightly
higher than the earnings received by workers in mills producing other
types of cotton goods. Average hourly earnings in duck mills in the
North exceeded those elsewhere, partly because of the higher prevailing
wage rates in the wool-carpet mills which undertook the production
of cotton duck. Earnings of employees in the converted carpet mills
averaged at least 20 cents an hour higher than those in the regular
duck mills (table 3).
T able 3.—Average Hourly Earnings in Cotton-Goods Industry and in Cotton-Duck

Sample, Selected Months, January 1942-December 1944
Average hourly earnings (in cents)
Cotton-duck mills
Month

January 1942__ __ _ _ _
October 1942_____
July 1943______________________________
January 1944
_ _ ... _ _
December 1944.. _ __

Cottongoods
industry

50.7
57.6
59.0
59.7
64.8

North
National
total

53.8
60.3
62.5
63.9
69.2

South
Total
48.4
53.9
55.2
56.7
62.5

69.1
79.8
84.2
85.3
88.3

Carpet
mills
75.5
85.7
90.7
91.1
93.9

Duck
mills
56.0
66.2
67.7
68.9
72.2

Average hourly earnings increased over 15 cents from January 1942
to December 1944. In January 1942, 39 of the 68 cotton-duck mills
studied reported average hourly earnings ranging between 40 and
50 cents. By December 1944 employees in 28 of these 39 mills had
increased their average hourly earnings to between 60 and 70 cents.
In the other 11 mills earnings had increased to between 50 to 60
cents per hour.
656243— 45 ------- 4


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

234

MONTHLY LABOR REVIEW— AUGUST 194 5

From among 17 of the remaining 29 mills, where employees in
January 1942 averaged between 50 and 60 cents per hour, workers in
9 mills in December 1944 were averaging 60 to 70 cents; in 4, they
were averaging 70 to 80 cents; and in 1, 80 cents or more. In the 3
remaining mills, increases were not large enough to take the average
hourly earnings out of the original 50 to 60 cent class.
The almost continuous increase in average hourly earnings is
attributable in part to a longer workweek, with resultant overtime
payments, and in part to the action of the National War Labor Board
in raising the minimum hourly rate.
As a result of the combined increases in average hourly earnings and
average weekly hours, average weekly earnings rose from $21.33 in
January 1942 to $29.85 in December 1944.
Duck mills in South Carolina had higher average hourly earnings
than mills elsewhere in the South—a factor which doubtless accounts
in part for the relatively minor losses in employment in those mills.
Average hourly earnings in the North rose to 88.3 cents in December
1944—an increase of over 19 cents in the three-year period. These
comparatively high earnings reflected primarily the wage rates in
the carpet mills included in the sample, for in addition to substantial
increases during the period studied, these mills in January 1942 had
a much higher rate of pay than any of the duck mills.

Wartime Expansion in the Labor Force1
THE labor force in April 1945 exceeded by about 7,300,000 persons
the normal labor force that would have been expected if peacetime
trends in the growth of the labor force had continued after 1940.2
This excess of the labor force over normal is made up of persons who,
in ordinary times, would be students, housewives, retired workers, or
other nonworkers.
Teen-age boys and girls have accounted for more extra wartime
workers than any other population group (2,800,000). During the
war unusually large numbers of youngsters have taken part-time jobs
while attending school, or have left school to take civilian jobs or
enter the armed forces. In addition, many young persons who would
normally be out-of-school nonworkers, particularly homemakers,
have entered the labor force in response to wartime labor demands.3
Women over 35 years of age have constituted the second largest
source of additional labor supply for the war (1,900,000). These
women were able to take advantage of unusual wartime job oppor­
tunities. In contrast to the case among younger women, the women
over 35 years of age are not usually responsible for the care of young
children, and the rise in marriage and birth rates during the war did
not limit their labor-market participation.4 Young married women
whose husbands were absent in the armed forces comprised the greater
part of the 600,000 extra women workers aged 20-34.
Only a small proportion of the able-bodied men aged 20-54, with
the exception of those attending school, are normally outside the
labor force. However, in response to a full-employment situation
during the war, men aged 20-54 accounted for about 1 million of the
1 Prepared in the Bureau’s Occupational Outlook Division by Lester M . Pearlman.
2 The labor force includes members of the armed forces as well as the civilian employed and unemployed.
s See Teen-Age Youth in the Wartime Labor Force, in M onthly Labor Review, January 1945.
* See Sources of Wartime Labor Supply, in M onthly Labor Review, August 1944.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

ESTIMATED EXCESS OF APRIL 1945 LABOR FORCE OVER "NORMAL"
CLASSIFIED BY AGE AND SEX
AGE

AGE

65

65

AND
OVER

55-64

5 5 -6 4

4 5 - 54

45-54

35-44

35-44

2 5 - 34

2 5-34

20-24

20-24

¡4

14-19

-19

4
UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EMPLOYMENT CONDITIONS

AND
OVER

M A LE

6

3

FEM ALE
to

CO

Cn

236

MONTHLY LABOR REVIEW— AUGUST 1 94 5

total excess. The extra workers from this group include men who in
prewar days sought work only occasionally or intermittently and
men on the borderline between employability and unemployability.
In addition, many of the extra workers in the 20-24 year group would
normally be attending college.
Reversing the long-run trend toward earlier retirement, men over
55 years of age in the labor force exceeded peacetime expectations by
nearly one million. Favorable employment opportunities during the
war brought many oldsters out of retirement and postponed retirement
for others.
Estimated Excess of A pril 1945 Labor Force Over " Normal' ’ Classified by Age and Sex 1
Estimated excess (in thousands)
Age group
Both sexes
Total, 14 years and over.
14-19 years____________
14-17 years.—. . . ___
18-19 years________
20-24 years____________
25-34 years____________
35-44 years.......................
45-54 years____________
55-64 years____________
65 years and over______

2

Males

7, 280

2 3, 620

2, 840
1,850
990
870
280
820
1,050
830
590

1,720
1,140
580
420
120
140
330
420
470

Females
2

3,660
1,120
71«
410
450
160
680
720
410
120

1 Based on comparisons between (1) estimates of actual labor force compiled from data on civilian labor
force from the Bureau of the Census M onthly Beport on the Labor Force plus unofficial estimates of armed
forces; and (2) estimates of “normal” labor force adapted from Census Bureau release P-44, No. 12.
eVc e ss’s slightly overstated, because the “normal” labor force estimates refer to the last week in
March, whereas the actual estimates refer to the second week in April. There is a seasonal rise between, the
two weeks.

Betterment of Conditions of Migrant Workers in New
Jersey and New York1
New Jersey Migrant Labor Act
UNDER the new Migrant Labor Act of New Jersey migratory workers
are to be provided with sanitary and comfortable living quarters,
health services, the protection of State labor legislation, educational
advantages for their children, and aid in welfare problems.
. This comprehensive program will be carried out through the inclu­
sion, in the administrative board, of all State agencies whose resources
and cooperation are required for successful functioning of the new
measure. The Division of Migrant Labor is created in the New Jersey
Department of Labor. This division consists of the Commissioner of
Labor and a Migrant Board having 6 ex-officio members—the Com­
missioner of Education, the Commissioner of Institutions and Agencies,
the Commissioner of Economic Development, the Secretary of Agri­
culture, the^ Superintendent of State Police, and the Director of
Health—-ana 5 members at large appointed by the Governor, 2 of
whom will represent farmers and 1 organized labor.
1 American Child (National Child Labor Committee, New York), M ay 1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EMPLOYMENT CONDITIONS

237

The implementation of detailed specifications for housing, sanita­
tion, and other services is made effective through interdepartmental
responsibility and cooperation. The Department of Health not only
will aid in establishing sanitation standards and preventive and reme­
dial health services, but also has the responsibility for making ade­
quate health services available where they are needed. The Depart­
ment of Agriculture will help in giving employers of migrant workers a
better understanding of the new division’s standards, methods, and
goals; educational facilities for the children of migrant workers will be
provided through the cooperation of the Department of Education;
the Department of State Police will act as a protective agency; the
Department of Institutions and Agencies will aid with welfare prob­
lems; and the Department of Economic Development will help to
determine “the need for camps, their location, construction, and
operation.” The combined responsibility in addition “should make it
possible to bring all migrant camps in the State up to the standards
which the act seeks to establish.”
An appropriation of $100,000 was made, expendable by June 30,
*945, or June 30, 1946.
cr
’
New York Conference on Improving Camps for Migrants
At a recent conference in New York State, sponsored by the Con­
sumers League and other State agencies, the matter of improving the
conditions in migrant labor camps was discussed. The Round Table
on Child Care Centers recommended several provisions concerning
child care, recreation for children and grown-ups, and the inducement
of communities to include migrants in their welfare and recreational
programs.
“If serious efforts are made in New York State to enforce the 14year age limit for employment in agriculture, some provision must be
made for the care and supervision of children under this age. In the
absence of such provision, children between 6 and 14 are found, not
in the child-care centers, but in the fields with their parents, who
naturally prefer to have them working with them than to leave them
unsupervised at the camp.” Recommendation was therefore made by
the round table that children up to 14 years of age be covered by the
provisions for care in the centers, and that two experimental centers
for older children be conducted in the summer of 1945 with a view to
increasing the number of centers next year if these trial ventures are
successful.

Employment Conditions in Belgium in Spring of 1945 1
AS A stabilization measure, wages in Belgium were frozen for 3 months,
by decree law of April 14, at levels 60 percent above those set by the
wage agreement of May 1940. In the week of May 13-19, employ­
ment by the Allied Military Authorities in Belgium stood at some
130,000, and unemployment rose slightly, to about 128,000. The
Ministry of Coal estimated that 17 days of unauthorized coal strikes
i Data are from reports of R. Smith Simpson, labor attaché, United States Embassy at Brussels, April
21 and 23 (enclosing translations of decrees of April 12,13,14, and 15), M ay 9, and June 4,1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

238

MONTHLY LABOR REVIEW— AUGUST 1 9 4 5

in May amounted to 3,200,000 man-hours. Legislation of April 12,
13, 14, and 15 provided for mobilization of certain essential industries.
Wages and Hours
Wage stabilization.—In an attempt to bring wages into line with the
cost of living and at the same time avoid uncontrolled inflation, the
Belgian Government, by decree law of April 14, 1945, froze all wages
for 3 months at levels 60 percent above those set in the wage agree­
ment of May 1940. Heavy fines for infractions of the wage regulation
were included. During April and May seven exceptions to the wage
freeze were authorized by the Minister of Labor and Social Welfare
under terms of the decree. Hourly wage rates given in 3 of the ex­
cepted cases were 13.8 francs 2 for construction workers in Seraing,
and 12.5 and 12.4 francs for metallurgical workers.
The Belgian Government has not maintained a system for recording
wage statistics, but in 1938 the hourly wage rates of male industrial
workers ranged from 5}i to 7 francs, and of unskilled workers from 4%
to 5 francs. After the wage freeze of May 1940, minimum gross rates
of hourly pay for male industrial workers were set at 5 francs. The
rates given in April 1945, therefore, were from two to three times as
high as prewar rates.
Hours o/ work.—The Belgian act of 1921 which provided for a basic
8-hour day and 48-hour week in mines and quarries, industrial plants,
commercial offices, public works’and utilities, building and construc­
tion, shipbuilding and repair, land transport, dairies and cheese
factories, and certain other types of industry, is still in force. Like­
wise in force is legislation of July 9 and December 22, 1936, requiring
a 40-hour week in industries involving dangerous or unhealthfui
conditions, and 4 shifts and a 42-hour week in certain continuous
operations of automatic sheet-glass works.
Since October 30, 1944, the Minister of Labor and Social Welfare
lias granted exceptions to the hours of work requirements of the act
of 1921, subject to the required payment of overtime, to companies
in specified essential industries—16 metallurgical, 1 food, 3 wood­
working, 5 building and construction, 3 laundry, and all textile
companies in Flanders.
Employment and Unemployment
Unemployment in Belgium, which stood at 308,953 in the week
January 28 to February 3, 1945, had dropped to 125,642 by the week
April 22 to 28. The return of deported workers from Germany and
the closing of plants because of the coal shortage, however, reversed
this trend. In the week May 13 to 19, unemployment rose to 128,095.
This figure was not so high as that recorded in 1939 (195,211), but it
exceeded the figure listed for 1941 (122,359).
The number of workers employed by the Allied Military Authorities
in Belgium reached some 130,000 in May 1945. Records of total
employment are not available, because the Government has not
maintained statistics of employment. Under a reporting system
being established by the Minister of Economic Affairs in the spring of
2 Exchange rate of franc, set September 1944 and in effe ct July 1945=2.28 cents.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EMPLOYMENT CONDITIONS

239

1945, companies in industries which are considered important to
economic recovery will furnish monthly figures on employment and
man-hours of work.
Industrial Relations
Statistics-on industrial disputes for Belgium are not available, but
the recently created Ministry of Coal estimated that the 17 days of
scattered strikes in the coal industry in May (all reported to have been
unauthorized strikes) resulted in a loss of 3,200,000 man-hours.
During May the National Mixed Commission on Mines (the commis­
sion paritaire, or joint council, created by royal decree of January 14,
1920) served as the agency for negotiations among the miners, opera­
tors, and Government.
The mixed commissions or joint councils (originally voluntary in
character) are the principal agencies in Belgium for the discussion of
industrial problems and the negotiation of disputes between workers
and employers. In legislation of 1936 and 1938, the Government
provided that decisions of the mixed commissions on hours of work
and holidays with pay might be enforceable by royal decree. When
the crisis in the coal industry developed in the spring of 1945, this
procedure of enforcement was carried farther by a decree law of
April 14, under which decisions of the Mixed Commission of Mines
relating to wages and working conditions could be made obligatory
by decree. The decree of April 14 contained regulations which gave
enforcing officers free access to places where mine workers are employed
and paid, and to certain records of the mine operators. Penalties
for violations of decisions and for impeding enforcement or giving
false information were included.
Belgium has 180 mixed commissions or joint councils. The crea­
tion of a joint commission or council for industry in general was under
discussion in the spring of 1945.
Mobilization of Labor and Industry
In an extensive program for the mobilization of the labor and
industrial resources of Belgium, the Government issued a series of
decrees on April 12, 13, 14, and 15, legalizing the registration of all
persons over 18 years of age, naming the industries subject to mobiliza­
tion, and freezing all personnel in designated industries. The legis­
lation was made possible by a law of March 20 giving the King
extraordinary powers for a limited time.
The industries designated for mobilization were coal mining (under­
ground and surface); manufacture of compressed coal products; gas
and coke plants, and enterprises distributing gas; electric-power pro­
duction, transformation, and distribution; distribution of water; flour
mills, bakeries, and yeast plants; and all enterprises engaged in trans­
portation by rail, water, and road. The workers in the above-men­
tioned enterprises were frozen in their jobs and positions, subject to
decisions of the National Placement and Unemployment Office.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

240

m o n th ly labor review -— august

1945

Employment Conditions in Denmark, June 19451
ECONOMIC conditions in Denmark were on the whole less serious
than elsewhere in Europe in June 1945. A shortage of fuel, however,
particularly of coal, is affecting employment, and difficulties will be
encountered unless sufficient fuel is obtained to keep -the Danish
industries in operation.
Unemployed persons in Denmark as of June 1, 1945, numbered
72,800,2 representing 13.0 percent of all organized workers, as com­
pared with 50,000 persons, representing 8.6 percent of all organized
workers, on May 1, 1945, and 23,300 on June 1, 1944. Most of the
unemployment is among unskilled workers in the building trades,
machinery manufacture, and the textile industry. Further unem­
ployment is anticipated next winter, particularly in the building and
construction industry.
The employment situation could be eased somewhat if agricultural
production and processing could be increased through use of more feed
and fertilizer. Farm employment gradually decreased during the
German occupation by 30,000, or 10 percent of the prewar total of
agricultural workers. No material changes occurred during the war
in the number of fishermen gainfully occupied, but the fishing industry
is much reduced because of a lack of supplies and of petroleum products
and the disruption of transport facilities. Employment in local
transportation, which increased during the war as a result of require­
ments of the German Army, has declined sharply.
Proposals made to the Government by a special commission under
the Minister of Finance, intended to check the increase in unemploy­
ment, would provide for private and cooperative building projects,
and for the expenditure of 600 million kroner for public works. Such a
program would furnish employment for some 65,000 persons for 2 or 3
years. These projects, however, are dependent upon the import of
fuel, wood, and other construction materials. If the importation of
these materials cannot be increased, the program necessarily will be
greatly curtailed.

*

*

**t

Effect of War on Labor and Production in Central and
Southeastern France
A SURVEY of seven industrial enterprises and one coal region of
central and southeastern France, made in the spring of 1945, indicates
a general reduction from prewar levels in the size of the labor force
and relatively high rates of absenteeism, regardless of whether or not
the plants were damaged from war activity.3 It was evident that
labor efficiency was low as compared with prewar years. The factors
cited as contributing to this decline were shortages of nourishing
food and the time consumed in obtaining supplies of any kind and
also the lack of suitable housing and transportation facilities. Scarcity
of raw materials, mainly coal, kept the volume of production small,
and the obsolescence of plant equipment hampered output. The
major factors in the situation are shown in the accompanying table.
1 Data are from confidential sources.
2 Includes persons unemployed for 7 days or less and persons over 60 years of age.
2 Information is from report by Rifat Tirana, assistant economic advisor, United States Embassy at
Paris, dated M ay 6, 1945 (No. 1854).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

•y

j
j

Effect of War on Labor and Production in Seven Enterprises and One Coal Region in France in Spring of 1945
Labor force
Enterprise and products

Company 1
equipment).

(electrical

War
damage

Output

Causes of reduction of output

Absenteeism
Prewar

None

1945

Total volume

1, 400

15 percent-

-- Reduction not given ........

j Volume per worker Age of equipment Replacements and upkeep
1
- - - 25 to 30 percent be­
low prewar.

Extensive

10, 000

5, 200

14 percent____ 160 units per month ______

Company 3 (chemical products).

Serious__

1,400

1,200

N one____

1,857

1, 300

10 percent (ill- 33 , 50, and 90 percent of prolib¡ra­
ness or accition, according to product.
dents alone).
- _ _ _
...
12 percent____ L ow .............. .........

Company 4 (chemicals and
pharmaceuticals).
Company 5 (artificial textile fibers).

N one__

-_ _

75 percent of preliberation; 20 per­
cally
cent of capacity for nylon.
short;
3,000.
17,600— - 25-30 percent-- 83 percent of 1939; 15 to 20 percent
more workers required to reach
1940 production.

40 to 50 percent
above rate dur­
ing occupation.
50 percent of pre­
war.

No new equipment; up­
keep neglected since 1938.

Company 6 (coal mines of
one region).

Degree not ‘19,200
stated.

Company 7 (steel and steel
products and locomotives).
Company 8 (iron and steel
and locomotives).

None......... i 4, 514

2,505

14 percent____ 30-60 percent of prewar, according
to product. ■

25 years old on the
average.

Degree not
stated.

9,000

Abnormal___

M ostly repairs; 6 to 7 locomotives
per month (estimate for August
1945); production 300 per year
in 1923.

15 years old on
the average.

11,000

No new equipment; up­
keep neglected in past
5 years.
Upkeep neglected in past
5 years.

Unchanged; 7 40
kilograms per
day in 1938 and
January 1945.

EMPLOYMENT CONDITIONS

Company 2 (trucks)___

Over 50 percent 15
years old and
over.
60 percent over 20
years old.

1 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

to

242

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

Effects on Labor
Company 2, a manufacturer of trucks, incurred more serious dam­
age than the others, and had the largest decline in employment (as
far as statistics are available), amounting to approximately 50 per­
cent. However, the loss in workers was nearly as great (44 percent)
in Company 7, an iron and steel and locomotive-manufacturing enter­
prise, which was damaged by neither Allied bombing nor enemy action
but was acutely short of all kinds of essential materials (principally
coal, pig-iron, various ingredients for the hardening of steel, elec­
trodes, lubricants, and tires); further, the age of plant equipment
averaged 25 years.
Labor shortages, particularly of highly skilled persons, were created
by the deportation of workers to Germany. Many of these workers
had not returned and some were not expected to do so. The French
military mobilization of various classes also reduced the labor supply
of the highly skilled. An equally important factor in certain plants
was the exodus of labor for other occupations in different lines of pro­
duction, which yielded higher pay and easier working and living con­
ditions.
The statements on absenteeism showed rates ranging from 10 per­
cent owing to illness and accidents alone in Company 3, a chemicals
works, to a rate of 25 to 30 percent in the coal mines. Absenteeism
of 14 or 15 percent was cited by three enterprises and a rate of 12 per­
cent by the other enterprise for which such statistics were obtained.
Effects on Output
For those companies that stated the percentage reduction in volume
of output or in output per worker the figures are, of course, rough ap­
proximations. The reductions from the prewar period to the spring
of 1945 were not uniform; even within a single plant, differences were
marked as between products. Compared with preliberation output,
total volume of production was lagging in early 1945, but in Com­
pany 2, producing trucks, output per worker was stated to be 40 to 50
percent above the rate during the enemy occupation of France. The
workers in the coal mines maintained their output per man-shift at
740 kilograms.
Over-age machinery and neglect of equipment in the preceding 5
years and longer reduced the effectiveness of the different plants.
For Company 7, engaged in making steel and steel products, it was
stated that the average age of plant equipment was 25 years and in
Company 2, producing trucks, 60 percent of the machinery was over
20 years old. Officials of three enterprises referred to the unfortunate
results of the neglect of equipment during the war, stating, for ex­
ample, that no replacements had been made and that wear and tear
were greater than under normal conditions, owing to the lack of
lubricating oils.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wartime Policies

Price Control in Canada1

^

THE Canadian economy lias been profoundly affected by the
economic disturbances of the war, but the dislocations have been
minimized by effective Government controls. Early mobilization of
the nation’s resources for war caused a serious strain on the civilian
economy while increased employment raised the national income and
purchasing power. A Government program was instituted, therefore,
for combating inflation and keeping down living costs. Compliance
with regulations appears to have been generally good. At a very early
date the Government enlisted the services of housewives in checking
compliance. There have been some black markets, but reports indi­
cate that the Government has received remarkably good cooperation
from industry and consumers. The cost of living advanced less than
18 percent from August 1939 to the end of 1944, as compared with
66 percent during a similar period of World War I. Wholesale prices
rose 42 percent between August 1939 and December 1944, compared
with 116 percent between July 1914 and November 1919. Despite
some criticism of the reliability of the price indexes as a measure of the
wartime price increase, general opinion in Canada credits the program
with remarkable success.
Many of the measures taken to assure price stability in Canada have
already been described individually in earlier issues of the Monthly
Labor Review. This article analyzes the program throughout the
war period and indicates some of the points of similarity and dissimi­
larity to controls in the United States. Although wartime disloca­
tions in Canada were on a much smaller scale than in the United States
the problems raised were fundamentally very similar. The methods
of control devised to solve them were also much alike in the two coun­
tries.
Basic authority for control of prices was provided in Canada even
before the outbreak of war. During the first 2 years of the war,
however, when the country was able to expand business activity
without decreased production of consumer goods, the Government
efforts were directed chiefly toward relieving the basic pressures for
higher prices by increasing supplies whenever shortages threatened.
Foreign trade was regulated to conserve domestic supplies and provide
essential imports. Industry was notified promptly of national re­
quirements. At the same time civilian demand was moderated by a
sharp increase in taxes. These measures were supplemented by wide
use of informal agreements with the trade to restrain prices. Very
few formal price controls were instituted.
In the fall of 1941, however, the outlook for continued success of
selective price controls and indirect methods was unpromising. The
i Prepared in the Bureau’s General Price Research Division by Doris P. Rothwell.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

243

244

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

economic pressures toward inflation had become very powerful and
were already bringing sharper and more widespread price advances.
Consequently, in October 1941, the plan for a general price and wage
ceiling was announced by Prime Minister Mackenzie King.
The general price ceiling, similar to the General Maximum Price
Regulation in the United States a few months later, froze prices for
most goods and services at the highest prices charged in the period
from September 15 to October 11, 1941. Wages and rents were simi­
larly frozen at levels prevailing in the fall of 1941 or earlier, except that
in the case of wages provisions were made for upward adjustments in
line with future increases in the cost-of living index.
Naturally many problems arose under the ceiling, the most serious
of which was that of the distribution squeeze arising from the pressure
of costs against ceilings. Various methods were used to reduce this
pressure and Government subsidies were used freely to keep down the
cost of living. However, it was not possible always to hold retail
prices to the levels of the basic period, and some adjustments were
made. Late in 1943 the stabilization program was seriously threat­
ened by pressure for general wage increases. This crisis was averted,
however, when cost-of-living bonuses were incorporated into the wage
scale; at the same_ time provisions for mandatory “ cost-of-living
bonuses/’ in effect since the fall of 1941, were eliminated.
Early Controls
Statutory authority for wartime price control existed in Canada,
even before the country entered the war, in the War Measures Act of
1914. Although provisions for extensive controls were made at a
very early date under this authority, informal and selective controls
were sufficient to maintain reasonable price stability during the first
2 years of hostilities.
CONTRO L M A C H IN E R Y

The Wartime Prices and Trade Board is now the supreme authority
on prices in Canada. Prior to August 1941, however, responsibility
for the direct control of prices, together with the control of supply,
was divided among several agencies. In principle, the Wartime
Prices and Trade Board had jurisdiction over raw materials or end
products chiefly required for civilian use while the Wartime Industries
Control Board had control over those chiefly required for war pur­
poses. A number of other agencies also exercised controls over
restricted commodity fields during the first 2 years of the war.
The Wartime Prices and Trade Board was originally established on
September 3, 1939, by Order in Council PC—
2516, to control the supply
and prices of “ necessaries of life.” The Board was empowered “ to
provide safeguards under war conditions against any undue enhance­
ment in the prices of food, fuel, and other necessaries of life, and to
ensure an adequate supply and equitable distribution of such commod­
ities.” Later,2 it was authorized to investigate costs, prices, and
profits; to fix maximum prices and mark-ups; to issue licenses and
otherwise regulate sale and distribution of necessaries of life; to buy
and sell goods and withhold stocks; and to recommend embargoes on
exports. Penalties of fine or imprisonment were authorized for
2 Order in Council PC-3998, December 5, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME POLICIES

245

infraction of the regulations. In September 1940,3 the Board was
also given the power to control rentals of housing accommodations.
Meanwhile, responsibility for the control of munitions and essential
war materials was vested in the Department of Munitions and Supply,
organized in April 1940.4 The Department assumed the duties of an
earlier organization, the War Supply Board, which had been estab­
lished in September 1939 5 with broad powers to mobilize the nation’s
resources for war. Beginning in June 1940 several controllers were
appointed, with virtually unlimited powers of control over their re­
spective commodity fields. At the same time the Wartime Industries
Control Board was organized to coordinate their activities.6
In August 1941, the Wartime Prices and Trade Board became the
final authority on prices, including those set by Controllers of the
Wartime Industries Control Board. New orders in council7 gave
the Board jurisdiction over prices of “goods and services” rather than
merely “necessaries of life.” It was also given jurisdiction over con­
sumer credit and installment buying. Although the Canadian organi­
zation is one of highly integrated control, by commodities, there has
been some jurisdictional overlapping between civilian and military
goods. Consequently, close cooperation between the Wartime Prices
and Trade Board and the Wartime Industries Control Board has been
provided for by means of an interlocking membership.
CONTROL OF SUPPLY

Unlike the United States, control of supply was deemed the proper
responsibility of the agencies concerned with price control. Major
emphasis during the first 2 years of the war was directed toward
relieving the pressure for higher prices by increasing the flow of sup­
plies rather than by direct price control. Great reliance was placed
upon voluntary cooperation and formal price controls were employed
in only a few cases.
Methods of supply control varied greatly—from simple publicizing
of estimates of national requirements to allocation and priority con­
trols and outright Government purchase. Exports were restricted
when necessary to conserve domestic supplies, and essential imports
were encouraged. Whenever shortages threatened to cause a serious
price rise, the Government actively sought and usually received the
cooperation of industry in maintaining existing prices, while efforts
were made to increase supply. Thus, the price of sugar was main­
tained at its prewar level, despite the consumer buying wave at the
outbreak of war and the rapid rise in the world price. Later the
Government purchased Canada’s total requirements at cost from the
British Government.
Foreign trade, which is of paramount importance in Canada’s total
economy, was brought under the control of a Government agency,
the Foreign Exchange Control Board, immediately upon the out­
break of war. Normally, Canada exported large quantities of farm
products and imported industrial articles. Although the war caused
the loss of some European markets, demands from Great Britain, at
first for foods and later for munitions, were greatly increased.
3 Order in Council PC-4616, September 11, 1940.
4 Order in Council PC-1435.
3 Order in Council PC-2629, September 15,1939.
« Order in Council PC-2715, June 24, 1940.
i Orders in Council, PC-6834 and 6835, August 28,1941.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

246

MONTHLY LABOR REVIEW— AUGUST 1 9 4 5

The new munitions program necessitated much heavier imports of
raw materials from the United States. However, Canada had a
serious shortage of dollar exchange and a surplus of sterling. Con­
sequently, it was necessary to reduce imports of nonessential goods
from the United States and other non-Empire countries and encourage
imports from sterling areas. In June 1940 a 10-percent tax was levied
on all imports from non-Empire countries. The War Exchange Con­
servation Act in December 1940 banned or reduced the importation
of many non essential consumer goods from non-Empire countries.
In addition, tariff adjustments were made to facilitate importation
from the United Kingdom.
Informal controls exercised by Controllers of the War Industries
Board or Administrators of the Wartime Prices and Trade Board
were successful, in part because there were relatively few firms in
many of the industries affected by the initial impact of the war.
Thus the prices of nonferrous metals, in great demand for munitions
production, were kept virtually unchanged between June 1940 and
December 1941 without any formal price control. Among other
commodities for which informal actions were taken to prevent price
increases were gasoline, iron and steel products, hides, millfeeds, and
men’s clothing.
S E L E C T IV E P R IC E CONTROL

The only formal price regulations up to December 1941 for con­
sumer goods and services were those issued for wool, bread, butter,
and rentals. Those for wool, bread, and butter were temporary
regulations, issued to meet emergency conditions, and were revoked
after short periods. The first specific order was issued on November
23, 1939, for raw wool; this was necessitated by a temporary scarcity
of crossbred wool, urgently needed for military uniforms. It was
revoked in mid-January when new supplies were received from New
Zealand. The maximum price order for bread and flour was in effect
only 1 month—from August 6, 1940, to September 6, 1940. The order
for butter was in force from December 27, 1940, to May 1, 1941.
The first maximum rent order was issued on October 1, 1940.
Rents of housing accommodations were frozen in 15 congested locali­
ties at the rates in effect on January 2, 1940. Many other areas were
brought under control by subsequent specific orders which remained
in effect even after the general rent order was issued.
During this period there were also few formal maximum price
orders by the Controllers of the War Industries Board for producers’
goods. An order on rubber was issued in November 1940, on iron
and steel scrap in February 1941, on lumber in April 1941, on silk in
August 1941, and on petroleum products in October 1941. In the
case of lumber, for example, maximum retail prices were frozen at the
level of April 1, 1941, and manufacturers’ and wholesalers’ prices at
the level of prevailing industry price lists.
Situation in the Fall of 1941
In the fall of 1941 it became apparent that serious price inflation
threatened and that selective price controls would no longer suffice to
restrain prices. Economic activity had expanded greatly. The slack
in labor reserves and industrial capacity, with which the country had

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

247

WARTIME POLICIES

entered the war, had largely disappeared. Wages and money incomes
had advanced much more rapidly than the supply of goods. The
nation was approaching full employment and it was expected that
40 percent of the national income would soon be devoted to war
purposes.
Significantly, prices were advancing much more rapidly than during
the previous 2 years, and the advances were more widespread. The
cost of living, as measured by the official index, rose 15 percent be­
tween August 1939 and October 1941, but the advance in the 7 months
from March to October 1941 was almost as great as in the preceding
19 months. The wholesale-price index rose 30 percent between
August 1939 and October 1941. A third of this advance occurred in
the 6 months between April and October 1941.
In a radio broadcast on October 18, 1941, announcing the adoption
of a general price freeze, Prime Minister Mackenzie King stated:
It is estimated that at no stage in the last war was more than 10 percent of our
national income devoted to war purposes; we expect, this year, to be devoting some
40 percent of the national income to the prosecution of the war. Most goods and
services are becoming increasingly scarce and will become scarcer still. We have
entered the period of full employment. The upward trend of prices has become
too widespread and powerful to be checked adequately by controlling the prices
of a few commodities. To continue to attempt to control the rise in prices,
piecemeal, might only serve to augment the very evil it is desired to avoid by
occasioning, through fear of the future, a precipitate rise in the prices of those
commodities which are not already controlled. The problem is a general problem,
and it calls for general treatment.

General Price Ceiling
The setting of the general price ceiling in Canada was not an isolated
measure but part of a broader anti-inflation program, which included
curtailment of public spending by taxation and by the flotation of
Government loans in small denominations to individuals, control of
supply including priorities, allocations, and rationing, wage and
salary control, and manpower control. Subsidies to increase agri­
cultural income and to cover higher costs without raising the cost of
living were resorted to on a broad scale, as an aid in the anti-inflation
program.
The general price ceiling became effective on December 1, 1941, by
Orders in Council PC-8527 (the Maximum Prices Regulations) and
PC-8528 (The Wartime Prices and Trade Regulations), dated
November 1, 1941. Maximum prices were established at the highest
prices in the “basic period”—September 15 to October 11, 1941—at all
levels of distribution. The regulations applied to all goods, with
certain exceptions, and to a wide range of services. The following
types of transactions were exempted: Sale of goods for export; sale to
the Department of Munitions and Supply; sale of personal or house­
hold effects; sale of goods or services by any person not in the business
of selling such goods or services; bills of exchange, securities, title
deeds, etc.; and sales at auction. Certain other exemptions were
made by subsequent orders, but even when prices were exempted,
sales were prohibited above “reasonable or just” prices.8 Some of the
more important later exemptions were as follows:
1. Sales, by the primary producer to manufacturer or dealer, of livestock,
poultry, fish, eggs, dairy products and honey.
facturers and distributors were not exempted.)
* PC -8528, section 7 (1), N ovem ber 1. 1941.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(Maximum prices of manu­

248

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

2. Sales by any person of fresh fruit and vegetables and greenhouse products.
(Ceilings were later reimposed on onions, potatoes, bananas, and oranges.)
3. Sales of fur skins and garments made wholly of fur.
4. Newspapers, magazines, and periodicals.
5. Books and other printed matter, philatelic specimens, paintings, and other
works of art.
The following services were covered by the original regulation:
Electricity, gas, steam heat, and water; telegraph, wireless, and tele­
phone services; transportation of goods and persons, and provision of
dock facilities; warehousing and storage; undertaking; laundry,
tailoring, and dressmaking; beauty-parlor services; plumbing, heating,
painting, decorating, cleaning, and renovating; repairs of all kinds;
supplying of meals or refreshments; and motion pictures. Other
services added later were manufacturing processes performed on a
custom or commission basis, services of optometrists or opticians, car­
pet laying, and developing and printing.
General Rent Ceiling
After announcement of the general price ceiling, the power of the
Wartime Prices and Trade Board to control rentals of housing accom­
modations, was extended to cover all real property except farm landcommercial as well as residential.9 The same general pattern of
control as in the earlier orders of the Board was continued. Maximum
rental for any commercial or residential accommodation (except
housing rentals already under control at other basic dates), was
established at the rate in effect on October 11, 1941.10 Landlords
were permitted to request increases in rentals under four conditions:
Substantial increases in taxes on the property, added services not
previously furnished, substantial structural alterations, or lower rent
than generally prevailing.
Wage and Salary Control
The feature of Canadian control of wages and salaries which makes
it of especial interest is the link between wage stabilization and price
stabilization by means of a cost-of-living bonus. Prior to the general
ceiling, control of wages in Canada was not particularly effective.
Wage rates on the average rose about 3 percent during f940 and 10
percent during 1941.11 The only Government control was an order
in December 1940, for the guidance of conciliation boards. Wage
rates prevailing from 1926 to 1929 or any higher rates attained up to
December 16, 1940, were judged generally fair and reasonable.12
However, this early order provided for upward adjustments of wages
in these industries by means of a cost-of-living bonus independent of
fixed basic wage rates.
As part of the general anti-inflation program in the fall of 1941,
increases in existing basic wage rates were prohibited,' except by
permission of the National War Labor Board for persons whose wages
were low in comparison with those paid for similar work. Not cov­
ered were agriculture and fishing, government, hospitals, and non8 PC-9029, The Wartime Leasehold Regulations, November 21, 1941.
io PO-8965, The Maximum Rentals Regulations, November 21, 1941.
it The Price Control and Subsidy Program in Canada, by Jules Backman (The Brookings Institution
1943).
PC-7440, December 19, 1940.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME POLICIES

249

profit religious, charitable, or educational associations.13 Payment of
a cost-of-living bonus was made mandatory for increases in the cost of
living subsequent to October 1, 1941. Adjustments were to be made
quarterly on the basis of the official cost-of-living index in January,
April, July, and October of each year. The amount of the bonus to
be paid was 1 percent of the basic weekly wage rates, but not more
than 25 cents per week, for each rise of 1 point in the cost of living.
Workers earning $3,000 or more annually were not entitled to a bonus.
The first bonus adjustment under the new regulations amounted to
60 cents or 2.4 percent per week. It was made as of August 1, 1942,
for a rise of 2.4 points in the cost-of-living index between October 1941
and July 1942. An additional bonus which would have been required
by the rise in the index to December 1942 was avoided by a deliberate
reduction in the price of certain foods through use of subsidies. A
second and final bonus of 35 cents per week was required in November
1943 because of an increase of over 1 point in the cost of living between
July 1942 and October 1943.
About this time there was very strong pressure by labor for a general
upward revision of wages, but a new order in council of December 9,
1943,K reaffirmed the Government wage-stabilization policy. The
cost-of-living bonus was abolished, effective February 15, 1944, and
prevailing bonuses were added to existing wage rates to form a new
basic wage structure. No further wage increases were to be permitted
for the duration of the war except to eliminate gross injustice. It
was hoped there would be no further increase in living costs but it was
provided that if the cost of living did rise more than 3 percent and
remain at this level for 2 consecutive months, the whole price- and
wage-stabilization program would be reviewed. No such review has
been required, however, because the official index remained slightly
below the level of December 1943 during all of 1944.
Experience Under the Ceiling
PROBLEMS ENCOUNTERED

Many of the problems which confronted. Canada under the general
ceiling are the same as those with which the U. S. Office of Price
Administration had to deal under the General Maximum Price
Regulation. The most serious of these has been the problem of the
distribution “squeeze” which arises from the pressure of higher costs
against fixed ceilings. This problem existed in part at the time the
general order was issued and it has been amplified by increasing costs
since then. In a rising market, such as prevailed in the fall of 1941,
retail prices usually lag behind wholesale prices. Therefore the
general order, in freezing prices, froze price inequities as well. Some
retailers’ base period prices were abnormally low in relation to those
of their competitors. The freeze took no account of seasonal price
movements for agricultural products. Still higher costs have arisen
since October 1941 from higher shipping costs, higher wages and labor
turn-over, and higher unit costs of operation resulting from reduced
volume of business in certain consumer-goods industries, irregularity
in the flow of supplies, and other difficulties. There were also the
is PC-8253, The Wartime Wages and Cost of Living Bonus Order, October 24, 1941.
h PC-9384, Wartime Wages Control Order, December 9, 1943.
6 5 6 2 4 3 — 45 ------- 5


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

250

MONTHLY LABOR REVIEW— AUGUST 1945

administrative problems of enforcing base-period ceilings which were
indefinite and which varied between sellers, and of establishing max­
imum prices for goods not sold in the base period.
Policies pursued in Canada in solving these problems were not un­
like those followed in this country. The underlying principle was to
hold retail prices to the level prevailing in the fall of 1941. Increases
in consumer prices were granted infrequently. Nevertheless some
modifications were necessary. These may be classified as (1) exemp­
tions (for some nonessential items, seasonal goods, and others for
which problems of administration were excessive), (2) seasonal
adjustments, (3) adjustments in cases of hardship or inequity, (4)
formulas for goods not sold in the base period, (5) substitution of
uniform maximum or formula prices for the base-period freeze, and (6)
adjustments to meet increased costs. Most of the inequities which
existed at the time of the freeze were largely corrected during the
first year of operations. Many base-period ceilings were replaced by
fixed prices for original suppliers with fixed mark-ups for distributors,
but the problems of rising costs and of new goods or higher-cost sub­
stitute goods not sold in the basic period have become increasingly
important.
Since the basic principle of price control was to prevent increases
in retail ceiling prices, major emphasis was placed upon reducing the
pressure of higher costs. This was done in three ways: (1) Simplifi­
cation, standardization, and other measures of cost reduction; (2)
“sharing the squeeze” between manufacturers and distributors; and
(3) Government financial aid to assure supplies or to cover higher
costs. The primary purpose of the simplification and conservation
program in Canada was to minimize the resources required for produc­
tion of the total supply, but by elimination of frills and concentration
of production on fewer types it also reduced costs.
The second method, that of “sharing the squeeze,” was widely used,
particularly during the first 12 to 15 months of the general ceiling.
This method attempted, by voluntary agreement or by Government
order, to divide the burden of increased costs among manufacturers,
wholesalers, and retailers, without increasing retail ceilings. How­
ever, the pressure of higher costs became more and more severe and
“a saturation point” was reached “in an increasing number of cases”
in the latter part of 1943.15
After all means of reducing costs or sharing the squeeze are ex­
hausted, consideration can be given to raising the ceiling (as on
luxury items) or giving Government financial aid (on essential con­
sumer goods), by reduction or remission of duties and taxes, by pay­
ment of subsidies, and by bulk purchasing.
REDUCTION OR REMISSION OF DUTIES

Because of rising costs abroad and Canada’s dependence upon
foreign sources for many products, it was recognized that aid in the
form of subsidies or other means would have to be given to Canadian
importers in order to maintain the price ceiling. For some imported
products, costs were reduced by decreasing or eliminating duties and
the war exchange tax or by changing the basis for assessment of
duties. Such adjustments were made upon the recommendation of
the Wartime Prices and Trade Board. “Dumping” duties were
u Report of Wartime Prices and Trade Board, April 1, 1943, to December 31, 1943.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME POLICIES

251

suspended in December 1941 on all imports except fruits and vege­
tables. Regular tariff duties, and in some cases the war exchange
tax and special excise tax, have been reduced or eliminated in many
cases, among them coal, sugar, pine lumber, oranges, dried fruits,
raw cotton, crude rubber, and many other products. In other cases
subsidies were employed.
GOVERNMENT SUBSIDIES

Subsidies and bulk purchases have been handled chiefly by a Crown
company, the Commodity Prices Stabilization Corporation Limited,
organized in December 1941 under the direction of the Wartime Prices
and Trade Board. However, certain important subsidies to primary
producers, such as those on milk and butterfat, have been handled by
the Department of Agriculture since May 1, 1943.
From the start it was recognized that “the payment of subsidies
is an integral part of the general policy of price and income stabiliza­
tion.” Nevertheless, subsidies were restricted to essential consumer
goods. It was stated officially: “We are prepared to permit some
nonessential supplies to disappear from the Canadian market rather
than permit either their prices to be increased above the ceiling or to
subsidize what are really nonessentials.” 16
Subsidies were resorted to on a small scale at first, but increasingly
as labor and material costs continued to rise. During the first 6
months after December 1941 they amounted to 4 million dollars.
In the next 6 months they were at an annual rate of 52 million dollars
and from December 1, 1942, to March 31, 1943, at a rate of 114 million
dollars. In the last-named period, subsidies amounted to 2 to 3 per­
cent of war expenditures11—proportionately larger than in the United
States—and they were even higher in 1944. The War Appropriation
Bill for the fiscal year ending March 31, 1945, provided 141 million
dollars for the Commodity Prices Stabilization Corporation and
allied agencies, 47.6 million dollars for the Agricultural Food Board
for subsidies to producers, and 8 million dollars for the Agricultural
Supplies Board for a subsidy on western wheat used exclusively as
feed for livestock. These subsidy estimates amounted to nearly
6 percent of the total appropriation requested.17
In December 1942, subsidies amounting to about 40 million dollars
annually and reduction of the war exchange tax and import duties
were used expressly to affect a reduction in the cost of living to about
the level of July 1, 1942, and to avoid the payment of a cost-of-living
wage bonus which would have increased the pressure on all prices.
The commodities on which prices were reduced were milk, oranges,
tea, and coffee. Prices of these foods had not advanced the most but
they are widely used and constitute a significant part of the cost-ofliving index.
1
1 1
Subsidies have been employed for both imported and domestic
products. Subsidies on imports have been paid on a great variety of
goods to relieve the squeeze arising from higher costs in the country
of origin or higher shipping costs. They have been utilized for many
foods, such as tea, rice, and oranges, for coal, petroleum and its prodn The Price Control and Subsidy Program in Canada, by Jules Backman.
i« Subsidies and Price Control, by Hon. J. L. Ilsley. (Speech delivered,in the House of Commons, April
23 1942.)

’« House of Commons Debates, February 11. 1944.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

252

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

ucts, fertilizers and chemicals, raw cotton and wool and their prod­
ucts, raw hides and skins and their products, and many other articles.
Subsidies on domestic goods have been paid on the following list of
commodities.18
Butter.
Chicken brooders, electric.
Coal and coke.
Cork for milk-cooling tanks.
Corn meal.
Cotton yarns and cotton underwear.
Eggs, frozen.
Fertilizers, eastern Canada.
Fishmeal.
Footwear.
Fruits and vegetables, canned.
Fruits, fresh (strawberries, peaches,
other tree fruits).
Fruits, processed (strawberries).
Furniture.
Groceries.
Jams and jellies.
Leather.
L

Lime.
Lumber.
Maple products.
Meat.
Milk.
Oils and fats.
Paper products (scribblers and counter
checks, waste paper).
Rubber, synthetic and crude, and scrap
tires.
Rye.
Tea and coffee inventories (December 7,
^ 1942).
Vegetables (beans and potatoes).
Woodenware.
Wood fuel.
Wool, raw, and worsted yarns and
fabrics.

BULK PURCHASING

The bulk-purchasing program also served to maintain price ceilings
in the face of rising costs, although its primary purpose was to facili­
tate the purchase of essential imports. For a number of key com­
modities, such as wool and sugar, Canada was dependent upon other
countries of the British Empire for the greater part of its supply.
For some imported commodities, Government purchase was the only
possible means of obtaining supplies under war conditions. This
was true for both sugar and wool, which were purchased from the
British Government. Other commodities, such as fats and oils, tea,
and dried fruits, were allocated under international agreements
which required purchase through a central agency, preferably for
government account. Commodities purchased by the Corporation
were resold at prices appropriate to the ceilings and any trading losses
were assumed by the Corporation. Losses on trading operations of
the Commodity Prices Stabilization Corporation, and associated com­
panies, amounted to nearly a million dollars per month in the latter
part of 1943 and one and a quarter million per month in 1944. Some
of the other items purchased were coffee, cocoa beans, bristles, spices,
fertilizers, horsehair, and certain types of cotton fabrics.
COMPLIANCE RECORD

Compliance with regulations appears to have been fairly good in
Canada. Between April 1 and December 31, 1943, for example,
there were only 4,258 prosecutions, of which 3,003 were for alleged
infractions of regulations of the Wartime Prices and Trade Board
and 1,255 for infractions of Controller’s orders.15 Of the 3,003 prose­
cutions under the Board’s regulations, 1,543 related to prices, 433 to
rentals, 591 to rationing, and the remainder to other miscellaneous
orders. On the basis of these figures, according to the Board, “it
seems to be a reasonable assumption that the great majority of the
15 Report of Wartime Prices and Trade Board, April 1, 1943, to December 31, 1943.
« Report of Wartime Prices and Trade Board, January 1, 1944, to December 31, 1944.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WARTIME POLICIES

253

people is in sympathy with these regulations and that the restric­
tions and controls are regarded as a wartime necessity.” There
have been few black markets on a serious scale.19 Those which
have occurred have been vigorously prosecuted by the Board with
the assistance of the Royal Canadian Mounted Police and Provincial
police.15
Enforcement has been easier than in the United States. The popu­
lation is less than 10 percent as large. The country is much less
highly industrialized and it is dependent upon imports of many
industrial articles and some foods (especially fresh fruits and vege­
tables). Subsidies have been more widely used in support of price
ceilings. For many industries, there is a high degree of concentra­
tion in a few large firms and in a few key cities. Compliance policy,
moreover, differs in several respects in the two countries. The
practice of posting ceiling prices has not been employed in Canada,
despite its apparent success in the United States. In general, the
texts of Canadian regulations are less detailed. The original ceiling
order for example, was much briefer than its counterpart in this
country, the General Maximum Price Regulation. Standards used
in the regulations are not always carefully defined. As an illustra­
tion, the phrase “reasonable or just” prices in the Wartime Prices
and Trade Regulations is not elaborated in any way.
Canadian officials have attributed the effectiveness of price control
in large part to insistence upon simplicity in the regulations estab­
lished. According to the Chairman of the Wartime Prices and
Trade Board, Canada has “refused to be drawn into any complicated
pricing formulas. * * * We have preferred simplicity to the theo­
retical perfection because we are convinced that no regulation can be
effective unless it can be expressed in terms that are readily under­
standable.” 5,0 In addition, Canada has relied to a very great extent
upon public opinion and voluntary cooperation from industry and
consumers. Prosecutions were avoided, except as a last resort. The
trade was freely consulted in the preparation of regulations, and
women’s organizations were formed as early as December 1941 to
assist in enforcement. Members were urged to make reports of eva­
sions. Public support of the Government’s program appears to have
been very good, at least during the first 2 years of the general ceiling.
PRICE MOVEMENTS

Based upon Canada’s official indexes, price increases during World
W,rar II have been moderate both at wholesale and retail in comparison
with World War I experience. During the entire period from August
1939 to December 1944, the cost of living rose 17.6 percent and whole­
sale prices 42 percent. During the same length of time from 1914 to
1919, the cost of living increased 66 percent and wholesale prices
116 percent.
Moreover, most of the price advance occurred prior to imposition
of the general freeze. The cost of living has increased only 2.6
percent and wholesale prices 9.2 percent since October 1941. Perm Report of Wartime Prices and Trade Board, April 1, 1943, to December 31, 1943.
i» Canada’s War against Inflation, by B. S. Keirstead, in Economic Record (National Industrial Con­
ference Board, N ew York), March 1944.
20 The Planning of Wartime Controls in Canada, by Donald Gordon..


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

254

MONTHLY LABOR REVIEW— AUGUST 1945

centage changes in the cost of living and in wholesale prices are given
in the accompanying table.
Percent of Change in Retail and Wholesale Prices in Canada, in Specified Periods
Percent of change—
Item

August 1939
to October
1941

October 1941
to December
1944

August 1939
to December
1944

Cost of living, total....................................... ...........................
Foods.____ _____ ______________________________
Fuel and lighting_______________________________
R ent___ _______________ _____ ________________
Clothing.____________________ __________ _____
Housefurnishings and services______ _____ ________
M iscellaneous...______________________ ____ _____

+14.6
+24.1
+13.2
+7.1
+19.5
+16.3
+ 5 .3

+ 2 .6
+ 5 .7
- 3 .6
+ .7
+ 1 .7
+ .9
+ 2.1

+17.6
+31.2
+ 9 .2
+ 7 .9
+21.5
+17.3
+ 7.5

Wholesale prices, total______________________________
Farm products________________ ___________ _____

+29.9
+26.9

+ 9 .2
+39.4

+41.8
+76.9

Even though there have been complaints in Canada that the costof-living index does not measure the wartime inflation of living costs
and that subsidies have been paid on heavily weighted commodities
in the index, price control is generally considered to have done a
creditable job. In an address on October 19, 1944, before the Canadian
Congress of Labor, Donald Gordon, Chairman of the Wartime Prices
and Trade Board, stated, “when you look at all previous experience
with prices in wartime, I think it must be admitted that price control,
with all its defects in detail, has worked and worked well in this
country.” Polls of the Canadian Institute of Public Opinion show
that a majority of the people believe that the price and wage ceilings
have been effective.19 The most serious criticism has come from labor,
with respect to the wage ceiling and the reliability of the cost-of-living
index. However, both trade-unions and the Cooperative Common­
wealth Federation (farmer-labor party) have publicly supported the
anti-inflation program in principle.

Extraordinary War Measures Act of Japan20
BY THE Extraordinary War Measures Act and a related enforcement
decree, effective June 23, 1945, the Japanese Government assumed
complete control over labor and industrial plant and production in
Japan proper and in Korea and Formosa. The legislation gave the
Government virtual power to rule by decree.
Under the act and the enforcement regulation, cabinet ministers,
regional superintendents general, and the governors general of Korea
and Formosa were vested with powers to issue orders and make dis­
positions in 10 specified fields of national life, with all speed and
irrespective of former stipulations of law. According to the radio
report of the legislation, the specified fields included the management,
establishment, and abolition of business bodies, and the adjustment
and expropriation of labor supplies and control of employment. Also
12 Canada’s War Against Inflation, by B. S. Keirstead.
20 Data are from Office of War Information, Foreign News Bureau, Items from the Wire File. June 21
and 22, 1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

*

WARTIME POLICIES

255

ncluded were the incorporation, merger, or dissolution of juridical
persons, the movements and domicile of persons, and contracts on
prices and wages.
W W W

Increased Flexibility of New Zealand Stabilization
Regulations1
UNDER amendment No. 5 to the New Zealand Economic Sta­
bilization Emergency Regulations, the Court of Arbitration may
authorize wage increases for the adjustment of inequalities in the
wage structure. The Prime Minister announced the order on Febru­
ary 13, 1945, and stated that wage disparities had arisen because some
groups had received pay increases while others had not. Therefore,
the Court of Arbitration, in considering any applications for wage
increase, was to take into account not only the general purpose of the
stabilization regulations, as already provided,2but also “the desirability
of so fixing rates of remuneration as to restore or preserve a proper
relationship with the rates of remuneration of other workers or classes
of workers.” To permit increases on this basis, the Court might also
amend awards, agreements, or other wage-fixing measures (including
those affecting apprentices) already in existence on February 13; such
changes could be made retroactive to any date which the Court
designated.
. . .
Amendment No. 5 also authorized the Court of Arbitration to issue
a “pronouncement” from time to time, specifying standard rates of
wages 3 for skilled, semiskilled, and unskilled workers, as a basis for
action under this order. Pronouncements might be made either on the
Court’s own motion or on application by any organization of workers
or employers. According to the Prime Minister, “This will enable
the Court, for its own purposes and as a guide to other parties when
they come before it on wages matters, to lay down principles rather
than leave the principles to be deduced from awards as they are
issued. Such pronouncements by the Court will also serve as a use­
ful guide in other negotiations on wages.” Unions would be enabled
to apply to the Court for a review of the wages portions of awards,
even during their currency, on the ground of disparity with other
workers, using a pronouncement of standards as a guide. In addition,
standard-wage pronouncements would be useful to the wages com­
missioners in adjusting wages of workers not under the Court’s juris­
diction. (The wages commissioners were empowered to approve
increases on the same basis as the Court—that of removing disparity.)
Following the announcement of the amendment, the President of the
Court of Arbitration stated that.no further awards or industrial agree­
ments would be approved for purposes of stabilization regulations
until a wages pronouncement had been made. Awards or agreements
made after the February 13 order could not be amended by the Court.
1 Data are from the Standard (official organ of the New Zealand Labor Movement, Wellington), Febru­
ary 22,1945, report from J. Jeflerson Jones III, third secretary, United States Legation, Wellington (No.
105, M ay 17,1945); and restricted sources.
»T
,
2 For details of earlier amendments to the stabilization regulations, see M onthly Labor Review, November
1944 (p. 970).
,
.
. .
.
s Such “standard rates” pronouncements do not of themselves increase or reduce wages, but merely serve
as a guide to the Court’s intentions; formerly they had no legal basis, and were issued to expedite settlement
of wage questions out of court.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

256

M ONTHLY LABOR REVIEW— AUGUST 194 5

The President’s action was taken to insure that any parties making
application would be able to take advantage of a standard-wage pro­
nouncement. Hearings on the question of rates to be fixed in the
wage pronouncement began March 5. The Federation of Labor and the
Employers’ Federation were invited to present the case for the
workers and the employers, respectively. On March 19, the Court
announced that standard wage rates for adult male workers would be
3s.^d. per hour for skilled workers, 2s.8^d. to 2s.lid. per hour for
semiskilled workers, and 2s.7^d; per hour for unskilled workers. The
Court stated that it did not intend to make any pronouncement
relating to standard rates for female workers or juniors. Both em­
ployers and workers accepted the Court’s decision without a great
deal of criticism.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Postwar Reconstruction

Australian Full Employment Policy1
FULL employment is a fundamental aim of the Australian Govern­
ment, according to a White Paper issued in May 1945, which also
states that, in peacetime, it is the State’s responsibility to provide a
general framework of a full-employment economy within which
private operations of both firms and individuals may be carried on.
Objectives agreed upon by all are improved nutrition, rural amenities,
social services, more houses, factories, and other capital equipment,
and higher standards of living. Achievement of these objectives can
be promoted by governments to the limit set by their resources. No
place exists in the Australian full-employment policy for made work,
but the White Paper endorses a program whereby the Commonwealth
and State governments would stimulate spending on goods and serv­
ices to the extent necessary to sustain full employment.
Benefits for Community
The prevention of waste in resources resulting from unemployment
is stressed as of prime importance in raising living standards. A
second contributing factor is efficient production. If these objectives
are fulfilled, all sections of the community will benefit; the demand
for goods will be so great that the tendency will be toward a shortage
of men and not of jobs. From the pursuance of a domestic policy of
full employment in Australia, other countries also will be benefited.
In the international field, the Australian Government has proposed
an employment agreement whereby each country would undertake to
do its utmost to maintain employment within its territory. In
addition, Commonwealth representatives are participating in dis­
cussions of other forms of cooperation to expand world trade and to
mitigate fluctuations in prices of raw materials and foodstuffs.
Capital Expenditure
The amount of available employment depends on the volume of
production, which, in turn, depends on the demand for goods and
services. Therefore, full employment can be maintained only while
total expenditure is sufficient to provide a market for all goods and
services turned out by Australians working with the available equip­
ment and materials.
Private capital.—Instability in private-capital expenditure and in
expenditure from overseas (i. e., expenditure on exportable Australian
goods and services) constitutes the chief threat to the Government’s
i Information is from Australian News Release, M ay 30, 1945. Australian News and Information Bureau,
New York.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

257

258

MONTHLY LABOR REVIEW— AUGUST 1945

full-employment policy. In securing the maximum possible stability
in private-capital expenditure, the Government believes that the
greatest single contribution will be made by assuring total spending
on a high and stable level. An essential condition is that public
expenditure should be sufficiently high to stimulate private spending,
so that, together, private and public spending will provide a demand
for the total output of which the Commonwealth economy is capable.
Special plans were being made, it was stated, to create opportunities
for private-capital expenditure. These are exemplified in plans for
house building, which is to be expanded as soon as the war permits.
The Commonwealth Bank, being the controller of the banking system,
will be in a position to insure the flow of capital required to promote
stability, and must prevent the banking system from initiating a
general contraction of Credit or from contributing to unemployment
through a decline in expenditure. These and other proposals are
expected to provide a firm basis for a steady expansion of privatecapital expenditure, and to confine the fluctuations of such expendi­
tures within a manageable range.
Changes in export values having been one major cause of fluctua­
tions in the total spending and employment of the country, the
Government outlined a correctional program. It is based on (1)
international agreements to maintain domestic employment, thereby
increasing the demand for internationally traded goods; (2) participa­
tion in other forms of international collaboration to expand world
trade and minimize price fluctuations; (3) preparation for develop­
ment and diversification of Australian export markets; and (4)
stabilization of incomes and hence expenditure of Australian export
producers to offset short-term fluctuations in demand for Australian
export; and (5) stabilization of total expenditures and employment
(by public-capital expenditure and other means) to offset any ex­
pected reduction in spending from overseas on Australian goods and
services.
Public capital.—Use of public-capital expenditure is the principal
means of readily offsetting other declines. It may be employed in
improving the collective capital equipment of the community. Ample
scope exists for such expenditure in many industries and many parts
of the country. To maintain and develop public-capital assets, the
level of expenditure must be substantially higher than before the war.
Among the important objects of this expenditure are housing, slum
clearance, community centers, hospitals, libraries, roads, railways,
bridges, harbors, airfields, power, irrigation, afforestation, water
conservation, and reclamation. When declines in spending threaten
to leave resources idle, the Government must be prepared to accel­
erate such work, and when private spending expands, the publiccapital expenditures should be reduced somewhat.
Aids to Maintenance of Expenditure
Administration of public expenditure to provide employment when
spending and employment tend to decline will require care and skill.
A full-employment economy must be responsive to changing wants
and technical progress. Workers who wish to change their jobs
should have means of discovering opportunities, and employers should
be able to get in touch with additional workers. For these reasons

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

POSTWAR RECONSTRUCTION

259

the Government is proceeding to establish a nation-wide employment
service on the general lines proposed by the International Labor
Conference in May 1944. It is up to businessmen chiefly to avoid
loss in enterprise and efficiency. Workers who need to leave posi­
tions when demand for goods they have been producing declines
should be furnished with employment-service training and financial
help to aid them in changing occupations. Trade-unions can help
substantially by cooperating with the Government in removing
impediments to labor mobility. Tariff protection is a privilege which
must be paid for by maintenance of the highest efficiency ; it should
not be utilized to protect inefficiency in methods or the utilization of
obsolete equipment.
Taxation for Public Expenditure
Wages in a full-employment economy must be adjusted so that real
wages rise and workers receive their fair share of the increases in
productivity. One section should not exert pressure for^ wage advances that will bring about a spiral of wages and prices without any
benefit to the workers. Taxation is the main instrument of Govern­
ment for bringing about a more equitable distribution of incomes
without creating an interest-bearing debt. Although the extent of
taxation on incomes has limits, the White Paper states that, when the
economy is fully employed, the yield can at least cover all public
expenditure on current items and make some contribution toward
public-capital expenditure. Financing by the Commonwealth Bank,
if carried beyond the limit of available men and resources, would result
in such unstable conditions that full employment could not be
maintained.
Imports and Exports and Balances
An increased demand for imports is involved in the full-employ­
ment policy, but the amount Australia can spend on imports will be
limited by' the yield from exports and the funds available overseas.
Therefore, the Government is taking measures to expand and stabilize
postwar export markets. Means under consideration include export
credit guaranty facilities and the negotiation of trade treaties.
Some fluctuation must be expected in the balance of overseas pay­
ments. As in the past, minor declines may be compensated for m
good years. However, if a deficit in the balance of payments is
caused by a permanent alteration in overseas demand for Australian
products that cannot be made up by a shift in productive resources,
positive action will be necessary. The exchange rate might be
altered or, if the fall in export income is prolonged and severe but not
permanent, the quantity of imports might be restricted.
,
Australia’s maximum contribution to world trade, according to tne
White Paper, is to maintain full employment at home and allow the
resultant high level of expenditure to become effective m her demand
for imports, to the limit of available overseas funds.
Plans for Transition Period
It is estimated that approximately a million men and women in the
armed services and in war industries will seek employment m tbe
transition from war to peace. Much of the peacetime employment

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

260

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

will not be available until production plans are prepared, machinery
is adapted, and skilled labor is located or retrained. The change-over
is not to interfere with prosecution of the war against Japan. Taking
into account these limitations, proposals for the transition period are
(1) a national housing program, to be carried out jointly by the
Commonwealth and the States; (2) a land-settlement plan for exservice personnel; (3) advance planning of public works; (4) wide
training of ex-service personnel; (5) establishment of an employment
service; (6) restoration or expansion of key industries which the war
particularly hampered; and (7) supply of materials and enforcement
of price controls. The highest priority is to be given to the housing
program. Direction of labor is not to be continued into the peace
years.
•

National Economic Planning Commission for Brazil1
THE National Economic Planning Commission, which was formally
installed in Brazil on October 3, 1944, is to have primary official
responsibility for planning the nation’s postwar economy. The
Commission was created by decree No. 6476 of May 8, 1944, as a part
of the Council of National Security, and before June 8 the President
had named 20 of its members, from leaders in Government, the
army, industry, and commerce.
According to regulations approved on September 29, 1944, the
Commission is to coordinate the planning activities of State and
municipal departments, commissions, and public councils, with those
of Federal organizations (including the National Council of Indus­
trial and Commercial Policy, the Federal Foreign Trade Council, and
other commissions), and to review all proposed economic legislation
and projects submitted by the President. The subjects of work out­
lined are all-inclusive, embracing problems in “agriculture, industry,
domestic and foreign trade, * * * transportation, currency’
credit, and taxation,” as well as economic problems connected with
defense.
Purpose and duties.—The basic principles drawn up for the Com­
mission’s guidance explain that the economic plan for the nation (1)
is founded on the combination of efforts between the State and
individuals, “it being the duty of the State to create * * * con­
ditions indispensable to the development of private enterprise, com­
plementing it where it shows deficiency,” (2) is to indicate the useful
employment of natural resources, workmanship, capital, and technical
capacity in such a way as to increase national production and improve
the standard of living; (3) is to include factors designed to stimulate
private economic initiative; (4) is to have for its main purpose (in
recommending measures) the equilibrium between production for
consumption and production for investment; and (5) is to give con­
sideration (when examining projects requiring investments) to the
cost of production and to the consumption capacity of home and
foreign markets.
1 Data are from report of Ivan B. W hite, second secretary, United States Embassy, Rio de Janeiro
October 5, 1944 (No. 908), enclosing translation of decree No. 16683, September 29, 1944, and Regulations of
the Economic Planning Commission; and from Boletim do Ministgrio do Trabalho, Industria e Comgrcio
(Rio de Janeiro), June 1944.
’


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

POSTWAR RECONSTRUCTION

261

The duties set forth for the Commission are to develop the
purposes mentioned above and are to include, in addition, collection
of the economic data necessary to guide the Commission’s action;
preparation of definite plans for the progressive development of
Brazil’s economic resources; examination of projects submitted by the
President; and (when not detrimental to national security) the publi­
cizing of preliminary projects of interest to the nation.
Organization and administration.—As provided in the decree of May
8, 1944, the Secretary General of the Council of National Security
acts as president of the Commission. He is also authorized to create
special sections of the Commission and enter into contracts with
technicians or with national or foreign institutions, for the promotion
of studies, projects, or services necessary to the work of the Com­
mission.
The membership of the Commission is unrestricted as to number.
Its component parts are a deliberative council of all the members, an
executive secretariat, and special departments for military and
general subjects. The council, which is to meet weekly, will be the
policy-making body and its members will serve as heads of the special
departments.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

t

Discharged Soldiers

Aid to Veterans Returning to Farms
AGENCIES in the U. S. Department of Agriculture are taking steps
to assist the veteran who wishes to make agriculture a career.
Recently, those agencies have made available to the returning service­
men loans for the purchase of farms. At the same time, veterans
have been given preference in the purchase of new farm machinery.
Loans for returning servicemen.1—Congress authorized the Farm
Security Administration of the Department of Agriculture to lend
$25,000,000 within 12 months to returning servicemen who wish to
buy family-size farms; the FSA started making such loans on July
2, 1945, through more than 2,000 county offices. Part of an addi­
tional $25,000,000, not restricted to the use of veterans, also may be
used to make loans to discharged servicemen.
The loans, made under terms of the Bankhead-Jones Farm Tenant Act of
1937, can cover the full purchase price of a farm and allow up to 40 years for
repayment. They bear interest at 3 percent on the unpaid balance. Appli­
cants must find for themselves the farms they wish to purchase. Each farm is
appraised, and a loan is made only when the purchase price is in line with the
farm’s actual value, based on its long-range earning capacity.
FSA has received applications from more than 2,000 discharged veterans
wanting to buy farms, and 60 have been financed in farm purchases. Some
veterans are becoming tenant farmers because they cannot find farms they can
buy at reasonable prices. Others are renting farms because they feel they lack
sufficient experience to embark upon ownership, because they do not know where
they want to settle permanently, or for other reasons. Despite the discouraging
land situation, FSA reports that veterans in large numbers continue to apply for
tenant purchase loans, and many others who would apply, do not do so after
investigating the land situation. Both with its tenant purchase and its rehabili­
tation programs, FSA provides retraining and on-the-farm vocational guidance.
This combination of credit and guidance has proved particularly suited to the
needs of returning war veterans and industrial workers who have been away from
farming for some time. More than 2,500 veterans have obtained rehabilitation
loans to finance the purchase of machinery, livestock, feed, and seed so they
could resume farming, most of them on rented land. All are being given assist­
ance in carrying out sound farming operations through FSA’s local offices which
serve every agricultural county.

Preference in purchase of new farm machinery.—Returning service­
men of World War II are given preference over nearly all other
prospective purchasers of new farm machinery. By an order effective
June 25, 1945, the War Food Administration ruled that veterans who
can show both the need for, and the inability to obtain, farm machinery
to establish or reestablish themselves in farming may obtain prefer­
ence certificates that require dealers to give priority to the veterans’
needs.
1 U . S. Department of Agriculture, War Food Administration, Press releases of June 19, 1945 (U SD A
1122-45) and June 22, 1945 (U SD A 1138-45).

262

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Social Security

British Unemployment Insurance Fund in 19441
BETWEEN December 31, 1943, and the close of 1944, the balance in
the British unemployment-insurance fund increased by 31 percent for
the general account and 18 percent for the agricultural fund. In the
general account, receipts were lower in 1944 than in 1943, owing to a
withdrawal of men and women from industry into the armed forces,
to normal wastage, and to the substitution of uninsured part-time
workers for insured full-time employees more than offsetting the influx
of persons who had not previously worked. The rise in total receipts
in the agricultural account accrued from an increased return on invest­
ments, employer and worker contributions having remained practi­
cally the same during both years. The effect of the increase in benefit
payments under the terms of the Unemployment Insurance (Increase
of Benefit) Act of 1944 was to raise the total of expenditures from the
general account. The rate of agricultural unemployment was, how­
ever, sufficiently low to reduce total expenditures from that fund in
1944, in spite of the adoption of a higher benefit rate.
Financial operations in 1943 and 1944 are shown in the accompany­
ing table, for both accounts.
Receipts and Expenditures of British Unemployment Insurance Fund, 1943 and 1944
Agricultural account

General account
Item
1943

1944

1944

1943

£75,917,433 £1,608,888

£1,624, 795

49,023,428
24, 510, 952
4,246, 073
1,831

47,063, 692
23, 531,121
> 5,320, 765
1,855

960,249
480,113
168,460
66

967, 736
483,865
1 173,158
36

Total expenditures________________ ___________
Unemployment benefit------------------------------Refund on contributions for noninsurable employm ent............ ............................. - ................ Grants toward authorized courses of instruction---------- ---------- ------ --------------------------Grants toward traveling expenses of insured
persons seeking em ploym ent.. ---------------Administrative expenses-----------------------------

5,306,435
2,709,000

5, 645,772
2,889,000

269,095
86,000

248,485
64,000

Excess of receipts over payments-----------------------Balance on January 1 -........ - .............-.........................
Balance on December 31___________ - ........ . --

Total receipts-..................... .................. ............ - .........Contributions from—
Employers and workers.. . . . ---------- -Exchequer--------- ------------------------------Interest on in v estm en ts---------------------- -----Miscellaneous receipts......... ...................................

£77,782,284

1

1,524

1,449

23

6

241,000

255,000

3, 000

3,000

14,970
2,339,941

14,970
2,485,353

30
180,042

30
181, 449

72,475,849
152, 265, 545
224,741,394

70, 271,661
224, 741,394
295,013,055

1,339,793
6,137,968
7,477,761

1,376,310
7,477, 761
8,854,071

No allowance was made for interest accrued but not received as of December 31, 1944.

i Information is from Twelfth Report on the Financial Condition of the Unemployment Fund (General
Account), and N inth Report of the Financial Condition of the Unemployment Fund (Agricultural Account)
as at December 31, 1944. London, Unemployment Insurance Statutory Committee, 1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

263

Industrial Injuries

Work Injuries in Breweries During 19441
Summary
INDUSTRIAL injury-frequency rates for breweries, as compiled by
the Bureau of Labor Statistics, indicate that accidents constitute a
major problem in this industry. In the year 1942, brewery workers
experienced an average of 38.2 disabling injuries in the course of every
million employee-hours worked, which was nearly double the average
of 19.9 for all manufacturing activities. Similarly, in 1943, the
average injury-frequency rate for the brewing industry was 35.3 as
compared with an average rate of 20.0 for all manufacturing. In
1944 the divergence became even more pronounced, as the volume of
recorded disabling injuries in the brewing industry climbed to an
average of 46.2 per million employee-hours worked, whereas pre­
liminary reports indicated a decline in the all-manufacturing average
to about 18.8.
The significance of the 1944 frequency rate becomes more apparent
when it is realized that it indicates the occurrence of about 1 disabling
injury for every 10 workers in the brewing industry during the year.
In actual numbers it is estimated that approximately 8,100 employees
of breweries experienced such injuries during 1944. About 15 of
these were fatal and approximately 660 resulted in some form of
permanent physical impairment; the remainder, or about 7,425
cases, were temporary disabilities.
Without any allowance for the continuing loss in production and
earning power arising from the deaths and permanent impairments,
it js estimated that the actual employment losses resulting from the
injuries experienced by brewery workers amounted to at least 162,000
man-days during 1944. On the basis of standard time charges for
deaths and permanent impairments, it is estimated that the future
economic loss accruing from the more serious injuries will eventually
amount to at least 900,000 man-days. The total employment loss
arising from the injuries which occurred in the course of brewery
operations during 1944, therefore, will be equivalent to over 1,000,000
man-days of work.
Broad industry figures, such as the foregoing, amply demonstrate
the existence of a safety problem in the brewery industry and, in a
general way, serve to indicate the magnitude of that problem. The
successful development of a safety program, however, requires much
more detailed information as to where, how, and why the accidents
occur. This survey was designed to supply some of those details.
1 Prepared in the Industrial Hazards Division by Frank S. M cElroy and George R .McCormack. A
subsequent report will summarize the causes of accidents in breweries.

264

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INDUSTRIAL INJURIES

265

In response to the Bureau’s request, 321 breweries submitted sum­
mary reports showing for each of their operating departments the
number of workers employed, the number of employee-hours worked,
and the number and types of injuries experienced by their employees
during 1944. From these data it was possible to make a number of
comparisons which indicate more specifically where the major
hazards of the industry are concentrated and thereby to point out
the most effective line of approach to the achievement of greater
safety.
On the basis of the 1944 record there is an apparent need for greater
attention to safety in each of the major operating departments of the
industry. The necessity for immediate attention is most apparent,
however, in the delivery departments. The delivery departments
had an average of 64.1 disabling injuries for every million employeehours worked, the bottling departments had an average of 52.5, and
the brewhouse departments had an average of 50.8. The most
hazardous type of delivery work was that of handling draught beer.
The workers in this particular operation had the extremely high
average frequency rate of 93.1. Pasteurizing, with an average fre­
quency rate of 59, was the most hazardous operation in the bottling
department, and loading, with an average frequency rate of 76.6, was
the most hazardous of the specific operations reported in the brewhouse departments.
Comparisons based upon the volume of employment in the report­
ing plants indicated that, on the average, breweries employing fewer
than 100 workers and those employing over 500 workers had better
safety records than the medium-size plants in which employment
ranged from 100 to 500. It is noteworthy, however, that the propor­
tion of serious injuries (that is, cases resulting in permanent impair­
ments) was greater among the plants employing 1,000 or more workers
than among those of any other size group. Generally speaking,
this pattern corresponds with the conditions found in other industries,
and reflects the greater attention devoted to safety by management
in the smaller plants and the existence of safety departments in the
larger plants.
The injury records of the participating breweries varied extensively.
About 17 percent of the plants reported that none of their employees
had experienced a disabling injury during the year. However, most
of these plants were quite small and none had over 150 employees.
In contrast there were 4 plants with injury-frequency rates of over
200. One brewery with an average employment of about 240 workers
reported 169 disabling injuries, which gave it a frequency rate of 289.6.
Regional comparisons indicated that, in general, brewery operations
were conducted most safely in the southeastern part of the country
and that the relative volume of accidents was greatest in the north­
eastern area. Regional average frequency rates ranged from 31.4
in the East South Central to 67.9 in the New England region. In
the areas which contain the greatest number of breweries the regional
averages were 46.0 for the East North Central and 52.6 for the
Middle Atlantic region. Among the 19 States for which separate
average frequency rates were computed, Florida had the lowest
(13.9) and Indiana had the highest (69.8). Both the highest and
the lowest of the 16 city averages were for Pennsylvania cities; in
Wilkes-Barre the reporting breweries had an average frequency rate
6 5 6 2 4 3 — 45 ------- 6


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

266

MONTHLY LABOR REVIEW— AUGUST 1945

of 23.3, and those in Pittsburgh had an average of 128.0. Various
factors enter into these regional, State, and city differences: State
safety laws and the extent to which they are enforced, the general
size of the plants in an area, and the general interest in safety as
evidenced by the safety activities of local associations.
Departmental Differences
The extent to which details were available concerning the experience
of workers engaged in particular operations varied greatly among the
reporting breweries. In many of the small plants there was very
little departmentalization, and most employees whose time could not
be broken down on the basis of specific operations were reported as
general workers. Practically all of the plants, however, were able to
report their experience in broad categories such as brewhouse work,
bottling operations, and delivery operations. Such break-downs help
to direct safety activities to the general divisions of the plants in
which injuries are most common. Most suited for the development of
an organized safety program, however, are those data which detail
the experience of workers in specific activities within the broad
operating divisions. About half of the reporting plants were able to
furnish detailed records of the latter type.
BREWHOUSE OPERATIONS

Brewhouse operations as a group had an average frequency rate of
50.8 disabling injuries for every million employee-hours worked.
Although this average is very high in comparison with the frequency
rates prevailing in most other manufacturing industries, it was lower
than the averages for the bottling and delivery departments of the
brewing industry. Temporary injuries in this division, as meas­
ured by the average amount of time lost, were generally more severe
than those of the other major divisions. This was balanced, however,
by the fact that there were proportionately fewer cases of permanent
impairments reported in the brewhouse units than were reported in
either the bottling or the delivery divisions.
The frequency rates of the individual departments of the brew­
house division were sharply divided into a “very high” rate group and
a “high” rate group. The group with the more favorable average
frequency rates was composed of the brewing, fermenting, and filter­
ing departments, while the higher rate group included the racking,
washing, and loading departments. It is significant that the operations
in which injuries were less common were those in which the work
involves comparatively little manual handling of heavy materials.
The filtering departments’ average frequency rate of 23.9 was the
lowest in the group. The brewing and fermenting departments had
nearly identical frequency rates, 32.4 and 32.8, respectively. All
three of these rates were higher than the average injury-frequency
rate for all manufacturing, but they were each substantially lower
than the rates for the washing, racking, and loading departments.
Loading operations, which involve the intraplant transportation
and storage of filled barrels and kegs, had an average frequency rate
of 76.6—the highest for any of the brewhouse departments. In
many of the loading departments much of the lifting and handling of

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INDUSTRIAL INJURIES

267

the heavy barrels is performed manually, and as a result strains and
sprains are relatively common. Permanent injuries, however, were
less common in these departments than in many of the other
operating units.
*
Washing operations constituted the second most hazardous
activity in the brewhouse division. In these units disabling injuries
were reported to have occurred at the average rate of 58.3 per million
employee-hours worked. In washing operations, empty barrels are
usually placed by hand upon an automatic washing machine. On the
machine, the barrels are mechanically rotated to place the bunghole
in line with a water nozzle and are then lowered over the nozzle.
Water is alternately sprayed into and drained out of the barrels
several times, after which they are removed for inspection. If the
coating of pitch on the interior of a barrel is found to be thin or
broken, the barrel is placed on a second machine which operates
similarly to the washer except that it sprays hot pitch into the barrel
instead of. water. The barrel is then rotated to insure that all inner
surfaces are coated, and the excess pitch is drained out. The pro­
portion of injuries resulting in permanent impairments was com­
paratively low in the washing departments. The average amount of
time lost for each temporary disability, on the other hand, was
very high.
In racking operations the empty barrel is placed, bunghole up,
under the nozzle of the beer pump. The nozzle is lowered into the
barrel and the beer is pumped in. When the barrel is full the bung
is placed by hand and driven in with a hammer. Then the filled
barrels are rolled from the rack to the loaders. The racking depart­
ments also had a very high frequency rate, their average being 51.8
disabling injuries per million employee-hours worked. The proportion
of injuries resulting in permanent impairments was comparatively
high, but the average time lost per case of temporary disability was
identical with the industry average.
BOTTLING OPERATIONS

The average frequency rate for the departments comprising the
bottling division was slightly higher than that of the brewhouse
division, but was substantially lower than that of the delivery de­
partments. As a group, the bottling departments had an average of
52.5 disabling injuries in every million employee-hours worked. One
in every 14 of these injuries was a permanent impairment, as compared
with averages of about 1 in 18 in the brewhouse group and about 1 in
8 in the delivery departments. Although there were 2 fatalities
among the 1,031 disabling injuries reported for the brewhouse units,
and 4 among the 1,172 injuries reported for the delivery departments,
there were no deaths among the 2,423 disabling cases reported in the
bottling departments. Temporary disabilities in the bottling
departments, on the average, required 14 days for recovery. This
time loss was identical with the corresponding average in the delivery
departments, but was substantially lower than the average of 18
days of lost time per temporary disability in the brewhouse units.
Bottling operations, other than casing and loading, are generally
highly mechanized and involve comparatively little physical exertion.
Consequently, these operations are now largely performed by women.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

268

M ONTHLY LABOR REVIEW— AUGUST 19 45

Lmpty bottles are loaded by band into an automatic washing ma­
chine from which they pass onto a conveyor on which they generally
remain until delivered to the casers. As they leave the washing
machine they are given their first inspection by a worker who sits
at the side of the conveyor and looks through each bottle as it passes.
At this stage the inspection involves little hazard. At the later
inspection points, however, there is continual danger that the filled
bottles may explode and that the inspectors or other conveyor at­
tendants may be struck by flying glass.
1 he conveyor carries the bottles from the washing machine successively to the filling machine, the capping machine, the pasteurizer,
and the labeling machine, and then delivers them to the casers, who
place them in cases or cartons. Casing is usually a manual operation, although a few breweries have installed machines to perform
this function. The filled cases or cartons are then taken by the
loaders to be stored or shipped out of the plant.
Bottle explosions are quite common at all stages of the. bottling
operations after the beer has been placed in the bottles. These
explosions present a double hazard in that the flying glass may strike
anyone in the vicinity, and the workers may receive hand cuts as
they remove the broken glass from the machines, the conveyor, or the
floor.
Inquiries addressed to a number of brewery safety engineers elicited
various reasons for the occurrence of these explosions. The pressure
used to speed the filling operations frequently is great enough to
burst weak or defective bottles. In the pasteurizer the beer is heated
and the gas contained in the liquid expands, thus increasing the
internal pressure which may then burst the bottles. Most of the
safety engineers were in agreement that the tendency for bottles to
explode is increased when they are roughly handled. Worn ma­
chinery and conveyors, which cannot now be replaced because of
wartime restrictions, add greatly to this hazard by causing the bottles
to be bumped and shaken as they pass along the line. The safety
engineers also agreed that the larger-size bottles are more likely to
explode than are the bottles of standard size.
A few breweries have placed wire-mesh guards over the conveyor
lines and have installed metal shields around the filling machines.
At the inspection points the mesh guards are replaced by panels of
shatter-proof glass. Most of the conveyor guards are constructed in
sections which may be raised to permit the removal of rejected or
broken bottles from the line. The use of such guards, however, is
far from universal. Instead of guards, some breweries provide
impact goggles^ for all bottling-department workers. These goggles
prevent eye injuries, but do not eliminate other cuts caused by the
broken glass.
At the present time very little beer is put in cans, because of the
wartime shortage of metal. It is pertinent to note, however, that
from a safety point of view the use of cans has a distinct advantage in
that it automatically eliminates all the hazards of bursting bottles.
Pasteurizing was the most hazardous operation in the bottling
division. These units had an average of 59 disabling injuries for
every million employee-hours worked. Casing operations, which
had an average frequency rate of 55.1, were only slightly less haz­
ardous. Loading operations in the bottling division had a frequency

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INDUSTRIAL INJURIES

269

rate of 47.9, which is high by most safety standards; nevertheless,
it was much lower than the average of 76.6 for the brewhouse loading
departments. Bottle washing (with the lowest frequency rate in
the bottling division) and the filling and capping units had average
frequency rates of 43.4 and 45.4, respectively.
In comparison with the average time loss for each temporary dis­
ability in the other divisions, the recovery time for temporary injuries
in the bottling units was generally low. The proportion of injuries
resulting in permanent impairments, however, was unusually high
in some of the bottling operations, ranging as high as 20 percent in
the filling and capping units.
DELIVERY OPERATIONS

In large measure the very high frequency rates of the delivery
departments reflect the considerable volume of heavy manual work
performed in these departments. The extremely high average fre­
quency rate of 93.1 for the units delivering draught beer is seldom
equaled in any of the operations of other industries. Similarly, the
high proportion of serious injuries, represented by 2 deaths and 73
permanent impairments out of a total of 403 disabling injuries re­
ported for this operation, is unusually high.
Although the units engaged in delivering bottle beer had a much
better record than those handling draught beer, their experience
nevertheless was considerably less favorable than that of most other
industrial activities. This operation had an average of 56.5 dis­
abling injuries per million employee-hours worked and, similarly, had
a very high proportion of deaths and permanent impairments among
the reported injuries.
MISCELLANEOUS OPERATIONS

Relatively few of the participating breweries reported any malting
operations. The few reports received, however, showed an average
frequency rate of 81.9, indicating a high degree of hazard in this
operation. The maintenance departments had a fairly highfaverage
frequency rate of 41.0, and the garage units had a relatively high
average of 32.9. The reporting power-plant units had an average
frequency rate of 28.1, and the refrigeration units had an average rate
of 22.0. The sales and the administrative and clerical units had
average rates of 4.2 and 1.9, respectively, which are comparable with
the experience of similar departments in other industries.
Regional, State, and City Differences
As brewery operations are largely standardized and follow much
the same pattern regardless of the geographic location of the various
plants, it is unlikely that the considerable variations in the average
injury-frequency rates for different areas represent differences in
inherent hazards. Primarily, the frequency-rate differences reflect
variations in safety activities. Many factors contribute to these
differences, and in particular instances it may be very difficult to
specify which is the controlling factor. Differences in State safety
requirements and in the degree to which the requirements are en­
forced have a very direct influence upon the frequency-rate levels in

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

270

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

different States. Similarly, safety activities, or the lack of such
activities, on the part of trade associations or other organizations
may have considerable effect upon the general accident record of an
area. The average size of the plants in different areas and the avail­
ability or lack of experienced personnel are also factors which may
influence the injury-frequency rate levels.
The 321 breweries participating in the survey were distributed
among 35 States. As there were a number of States from which
only one or two plants reported, representative State averages could
be computed for only 19 States. The totals were combined, how­
ever, to provide averages for each of the nine geographic areas cor­
responding to the regions used in the tabulations of the United States
Bureau of the Census.2 In addition, it was possible to compute
average frequency rates for 16 cities.
The highest of the regional average frequency rates was that of
the 10 breweries reporting from the New England States. These
plants reported an average of 67.9 disabling injuries for every million
employee-hours worked. As 8 of the 10 plants were located in
Massachusetts this rate primarily reflects the experience of that
State. The Massachusetts average frequency rate of 65.4 was ex­
ceeded only by the averages for Indiana and Colorado.
The East South Central region, with an average frequency rate of
31.4 based upon the experience of 6 plants, had the lowest of the
regional averages. The Kentucky average of 37.4, computed from
the reports of 4 of these breweries, was well below the national aver­
age. There were, however, 5 other States among the 19 for which
averages were computed, which had lower rates.
In the Middle Atlantic region reports were received from 78 brew­
eries. These plants had the high average frequency rate of 52.6, which
was exceeded only by the average of the New England region. Within
this region it was possible to compute separate averages for New Jersey,
New York, and Pennsylvania. The New Jersey frequency rate of
27.6, based upon the records of 6 plants, was among the lowest of the
State averages, and the Pennsylvania and New York averages (52.9
and 63.5, respectively), were among the highest. Separate city
averages were computed for three cities in Pennsylvania and for two
in New York. In Pennsylvania the 3 breweries reporting from
Pittsburgh had an average frequency rate of 128.0, the highest of all
the city averages. In the same State, three breweries in Wilkes-Barre
had an average rate of 23.3, which was lower than the average for
any other city. The Philadelphia average of 38.9, based upon the
records of 8 plants, was somewhat better than the industry average.
The 7 breweries reporting from New York City had a very high
average, 70.2, which was exceeded only by the rates for Pittsburgh
and Chicago. The Rochester (N. Y.) average, 40.0, covering the
experience of 3 plants, was close to the median in the range of city rates.
The largest volume of reports received from any of the regions came
from the East North Central States. The 136 reporting breweries in
3 The regional groupings and the States included in each region are as follows: New England—Con
necticut, Maine, Massachusetts, N ew Hampshire, Rhode Island, and Vermont. Middle Atlantic.—New
Jersey, N ew York, and Pennsylvania. East North Central—Illinois, Indiana, Michigan, Ohio, and
Wisconsin. West North Central.—Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and
South Dakota. South Atlantic.—Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina,
Virginia, and W est Virginia. East South Central.—Alabama, Kentucky, Mississippi, and Tennessee.
West South Central.—Arkansas, Louisiana, Oklahoma, and Texas. Mountain .—Arizona, Colorado, Idaho,"
Montana, Nevada, N ew Mexico, Utah, and Wyoming. Pacific.—California, Oregon, and Washington.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INDUSTRIAL INJURIES

271

this area had an average frequency rate of 46.0, which almost exactly
matched the national average for the industry. Among the separate
States comprising this region, Ohio had the lowest average frequency
rate, 37.3. At the other extreme, Indiana had an average rate of 69.8,
which was the highest State average computed. The rates of Michigan
(42.4), Wisconsin (44.4), and Illinois (51.1) were all in the upper range
of the State averages. Chicago had the highest city average in the
region, 72.4, while Cleveland had the lowest, 33.4. Cincinnati and
Columbus had average rates of 41.3 and 48.0, respectively; Milwaukee
had an average rate of 47.2; and Detroit had a rate of 43.5.
The 25 breweries reporting from the West North Central States
had an average injury-frequency rate of 39.2. These plants included
13 breweries in Minnesota for which the average rate was 35.6, and 9
breweries in Missouri, which had an average rate of 40.0. The 4 plants
reporting from Minneapolis and St. Paul had an average frequency
rate of 34.4, which was among the lowest of the city averages. The 4
breweries reporting from St. Louis had a slightly higher, but never­
theless better than average, rate of 38.9.
In the South Atlantic region the 11 reporting breweries had a rela­
tively low average frequency rate of 33.6. The 4 Florida plants
included in this group had an average rate of 13.9, which was the
lowest among the entire group of State rates. The average frequency
rate of 40.4 for the 3 breweries reporting from Maryland was relatively
high in comparison with the Florida average, but was the median in
the range of State rates.
In the West South Central region 10 breweries reported an average
of 49.1 disabling injuries per million employee-hours worked. The 4
plants in Louisiana, all of which were in New Orleans, had an average
rate of 51.4. The Texas average, based upon the experience of 5
plants, was 38.9.
For the Mountain States the regional average frequency rate,
computed from the records of 18 breweries, was 48.1. Three of these
plants (in Colorado) reported an average frequency rate of 67.1, which
was the second highest State rate recorded.
Reports were received from 27 breweries in the Pacific region. As a
group, these plants had an average frequency rate of 38.6, which
ranked in the lower half of the regional averages. The 9 plants in the
State of Washington, however, had a record substantially better than
the regional average. The Washington rate (29.4) ranked third among
the lowest of the State averages. In California the 14 reporting
breweries had an average frequency rate of 40.3. The Los Angeles
and San Francisco city averages of 37.2 and 37.4, respectively, were
both in the lower half of the range of city rates.
Comparisons by Size of Plant
In many industries analysis of the accident experience of various
plants has shown a direct correlation between the injury-frequency
rates and the size of the plants as measured by employment. The
most common findings have been that the small plants, in which the
owners are in close contact with actual operations, and the large
plants, which generally have safety engineers on their pay rolls,
usually have the lowest average frequency rates. The medium-size
plants, which are too large for intimate supervision by top management

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

272

MONTHLY LABOR REVIEW— AUGUST 194 5

and too small to have regularly established safety departments, com­
monly constitute the group which has the highest average frequency
rate. In the brewery industry the same general pattern prevailed,
although it did not appear to be so clear-cut as in some other industries.
Breweries employing from 100 to 499 workers had the highest
general level of injury-frequency rates. For those with 100 to 249
employees the average rate was 51.3 while those with 250 to 499
employees had an average rate of 50.7. The group with the lowest
average frequency rate (36.6) was composed of plants which employed
from 25 to 49 employees. The plants with 50 to 99 employees and
those with 500 to 999 employees, however, had only, slightly higher
averages, 37.7 and 38.7, respectively. The very small plants, with less
than 25 employees, had an average frequency rate of 43.5, and the
very large plants, with 1,000 or more employees, had an average of
48.3.
Comparisons among the various size groups revealed another in­
teresting relationship for which no positive explanation can be of­
fered. The disability distribution indicated that, as the size of the
plants increased, the proportion of permanent impairments also
tended to increase. In none of the size groups composed of plants
having fewer than 250 employees was the volume of permanent im­
pairments greater than about 4.5 percent of the total volume of in­
juries reported. In the larger plants this proportion increased con­
siderably, reaching 16 percent in the group made up of plants with
over 1,000 employees. A possible explanation of this may be found
in the fact that the larger plants frequently have medical service
available on the premises, whereas most small plants must send their
injured workers out of the plant for treatment. This means that
some minor injuries must be counted as disabling 3 in the small plants,
because the workers lose time in going outside for treatments, while
identical injuries are not counted as disabling in the large plants be­
cause treatments can be obtained without the workers’ taking time
off. This circumstance would not affect the volume of permanent
impairment cases, but would affect the volume of injuries counted as
temporary disabilities, and thereby would affect the relationship be­
tween the permanent impairments and the total number of disabling
injuries reported. A plant reporting a given volume of permanent
impairments, therefore, might show either a high or low proportion
of such cases, depending upon whether or not medical attention was
available on the premises.
3 A disabling injury is one which results in death or permanent impairment, or causes the loss of time
beyond the day of injury. Only disabling injuries are counted in computing the standard injury
frequency rate.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial Relations

Peruviai} Agricultural-Labor Contract1
THE Bureau of Indian Affairs of Peru has made public the details of
a labor contract between the proprietor of a farm in the highlands and
his Indian tenants. The tract was said to be 10,000 feet or more
above sea level and to consist of the farm proper and the pasture and
tillage grounds (“colonized land”) on the fringes of the landlord’s
estate. The contract was for the purpose of regulating “thenceforth
the use of the colonized land and the performing of agricultural labor
on the farm.”
Under the terms of the contract, the proprietor agreed to dismiss
his administrator. The farmers (colonos) on their part agreed to
pay 5 soles 2 for each 100-kilogram 3 sack of potato seed provided and
sown on land allotted by the farm. When the farm needed labor to
till the fields or to do other work, the farmers’ services were to be
used. Working hours were to be from 7 to 11 a. m. and 1 to 5 p. m.,
for which the standard pay was to be 1 sol per day. The Indian
farmers were not to be expected to work on Sundays, holidays, or
public election days, or on May 1. Farm laborers who were dis­
missed were to be indemnified.
The farmers were to be free to sell their potato crop to whomever
they chose, except that if the proprietor offered the market price, he
should have preference.
Under the contract, children under 14 were not to perform work;
minors over 14 and under 16 were to be allowed to work if they could
read and write; and their pay was fixed at 0.30 sol per day plus
evening meal. Persons over 16 and under 20 were to be permitted
to serve as shepherds on the farm, for which their pay would also be
0.30 sol plus evening meal.
Widows holding colonized land on the farm were to pay 2 soles per
sack of potato seed. If their services were needed as swineherds or
potato peelers, or in the making of chuño (a native food of frozen
potatoes), they were to work the 8-hour day for 0.50 sol plus eve­
ning meal.
Contracts such as that under review are said to have arisen from
the question of land tenure. The Indians feel that pasture and til­
lage grounds, especially those bordering the estates, have never
properly and justly been transferred from them or their forebears.
They consider much of it as communal land, whereas the landlord
may regard it as his private property.
1 D ata are from report prepared by William P. Snow, United States Embassy at Lima, Feb. 10, 1945
(No. 56).
2 Average exchange rate of sol in 1943 and 1944=approximately 15 cents.
3 Kilogram=2.2046 pounds.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

273

Industrial Disputes

Strikes and Lock-onts in June 1945
PRELIMINARY estimates indicate that there were 485 strikes and
lock-outs beginning in June 1945, with 292,000 workers involved, and
1,725,000 man-days idle—0.23 percent of available working time.
T

able

1.— Strikes and Lock-outs in June 1945, with Comparable Figures for Earlier
Periods
Strikes and lock­
outs beginning Man-days idle in month
in month
Month
N um ­
ber

W orkers
involved

Number

Percent of
available
working
time

June 1945 »............ ............... . . .
M ay 19451_____________________

485
425

292,000
310, 000

1,725, 000
2,025,000

0.23
.26

June
June
June
June

441
433
345
357

144,566
186, 677
109, 611
142, 689

726, 531
4,698, 796
586, 408
1, 504,056

.09
.62
.09
.24

1944_____________ ______
1943___ ____ __________
1942_________________ _ .
1941______________ _________

1 Preliminary estimates.

A relatively new development was a series of work stoppages pro­
testing shortages of meat and lard. These scattered stoppages began
in the bituminous-coal mines in late April and May, took on sizable
proportions in June, and continued in July. Lack of meat sandwiches
in factory lunch wagons caused a 2-day stoppage of over 5,000 workers
at the Briggs Manufacturing Co. in Detroit also.
A few isolated protests over inadequate meat rations occurred
among east coast fishermen early in 1945, and solution of this problem
was under consideration by the OPA. When the mine stoppages
occurred, eventually involving workers in Kentucky, Alabama, West
Virginia, Illinois, Indiana, Missouri, and Tennessee, the Government
made efforts to alleviate the situation by routing additional meat to
the areas of worst shortage. Under a new OPA policy, instituted early
in July, provision was made for extra red ration points for meat and
fats to be distributed to certain workers doing heavy manual labor,
and somewhat later in the month the Secretary of Agriculture au­
thorized Government purchase of local meat surpluses for distribution
to war-plant cafeterias.
Detroit dispute over reconversion work.—A dispute between A. F. of L.
and C. I. O. workers, which threatened to interfere on a broad scale
with reconversion construction work, resulted in a substantial work
274

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INDUSTRIAL DISPUTES

275

stoppage in the Detroit automobile industry during June, but as a
consequence the ground work was laid for the settlement, on a national
basis, of this and similar disputes. The issue was as to who should
perform the construction and alteration work and particularly who
should install machinery in newly constructed or reconverted plants.
The A. F. of L. Building Trades. Council in Detroit had demanded
that when a contractor using A. F. of L. workers is called in on a
reconversion job, such workers must be given the installation work
also. Maintenance workers affiliated with the United Automobile
Workers (C. I. O.) had countered with a demand that all avail­
able skilled C. I. O. workers in the plants must be utilized before
outside contractors and A. F. of L. workers are called in for recon­
version work.
Approximately 150 A. F. of L. workers stopped work on three large
construction jobs for the Chrysler Corp. about the middle of June,
because the company would not give assurance that A. F. of L. men
would do the installation work. Shortly thereafter U. A. W. mainte­
nance workers stopped work, protesting the employment of A. F. of L.
workers at plants of the Ford Motor Co., Budd Wheel Co., and
Packard Motor Car Co.; this made thousands of production workers
idle also. It is estimated that, altogether, nearly 40,000 workers were
idle and that idleness during the stoppage amounted to over 225,000
man-days.
As the stoppages continued and threatened to spread, representa­
tives of the parties involved were called to Washington where A. F. of
L. and C. I. O. officials, meeting with the Assistant Secretary of Labor,
signed an agreement providing that in each locality where local organi­
zations of the C. I. O. Automobile Workers and A. F. of L. Building
and Construction Trades Departments exist, a joint committee should
be created to adjust any disputes over reconversion work which might
arise. Disputes not settled locally would be referred to a national
committee composed of an equal number of representatives of the two
parties with a neutral chairman, the decision of this committee to be
final and binding. This agreement was submitted for ratification to
the national officers of the United Automobile Workers (C. I. O.) and
the A. F. of L. Building and Construction Trades Department.
The agreement further recommended that a joint committee be
formed immediately in Detroit to adjust the current dispute, that
striking workers return to their jobs, and that both organizations
hold in abeyance their demands relative to reconversion work pending
action of the joint committee.
On the basis of this agreement the stoppages were terminated and
most of the idle employees resumed work June 29.
Stoppage at Goodyear Tire & Rubber Co., Akron.—The first strike
in the Akron rubber industry to follow a strike vote under the SmithConnally Act, occurred at five Akron plants of the Goodyear Tire &
Rubber Co., about the middle of June 1945. It was called by officials
of Goodyear Local No. 2, United Rubber Workers of America (C. I.
O.) but did not have the approval of the international union officials.
Approximately 16,000 production workers were affected on June 16,
and on June 18 the general office workers remained away from work,
making a total of about 20,000 absent for a day.
Union and company representatives had been negotiating for 2
weeks on 32 separate points in dispute. Although agreement had

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

276

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

been reached on certain points, no progress had been made toward
settlement of the union’s demand for participation in setting wage
rates, a general wage increase for employees in several departments,
revision of the merit system in the engineering department, and
elimination of “quick shifts” to fill special orders.
The dispute was certified to the National War Labor Board after
officials of the local union refused a Regional Board request to order
the membership back to work. At a National Board hearing on
June 24 union officials declined to recommend ending the 8-day
stoppage, and when they reported to their local membership the latter
voted to continue on strike. On July 3 the Board referred the dispute
to the Director of Economic Stabilization and 2 days later the plants
were taken over, under Presidential order, for operation by the Navy
Department. Union officials immediately advised their members to
end the strike, although no agreement had been reached on the issues
in dispute, and within a few days operations were back to normal.
Glass workers' stoppage.—About 17,000 workers were involved and
170,000 man-days of idleness resulted from a stoppage after negotia­
tions on a contract between the Glass, Ceramic and Silica Sand Work­
ers of America (C. I. O.) and the Libbey-Owens-Ford Co. and Pitts­
burgh Plate Glass Co. broke down in June. The stoppage was pre­
ceded by a strike ballot under the War Labor Disputes Act, with
workers voting 10 to 1 in favor of a strike. The points at issue as
stated on the strike ballot were “breakdown in negotiations” and
“inability to reach a satisfactory agreement.” The union claimed that
the companies had proposed an incentive-pay plan which would de­
crease the workers’ earnings. Seniority issues were also involved.
The stoppage began at the Pittsburgh Plate Glass Co.’s plant at
Creighton (Pa.) on June 14, and on June 19 workers at the Ford City
(Pa.) plant went out. In an effort to prevent spread of the stoppage,
the National War Labor Board assumed jurisdiction on June 20 and
scheduled a hearing on the issues for July 10. In spite of this, on
June 21 the strike spread to the company’s plants at Crystal City
(Mo.), Mt. Vernon (Ohio), Clarksburg (W. Va.), and Henryetta
(Okla.). The same day Libbey-Owens-Ford workers in Toledo
(Ohio), Ottawa (111.), Shreveport (La.), and Charleston (W. Va.)
joined the stoppage.
On June 28 union officials appeared at a show-cause hearing before
the NWLB, and agreed to order the men back to work, with the
understanding that the expired contract would be extended pending
full disposition of the issues. On July 2 all but one plant, that at
Charleston (W. Va.), were in operation. Workers at the Charleston
plant returned on July 5.
Stoppage at Tennessee,• Coal, Iron & Railroad Co.—Ten thousand
workers and over 100,000 man-days of idleness were involved in a
stoppage beginning on June 1 at the Ensley Works and the Fairfield
plant of the Tennessee Coal, Iron, & Railroad Co. near Birmingham,
Ala. These are the two largest steel-producing plants in the South.
The stoppage was attributed principally to the delay of the National
War Labor Board in working out and installing an acceptable in­
centive-pay plan for the furnacemen. The original dispute had been
certified to the Board on July 19, 1943. Two strikes had occurred
over this issue in 1944. The Board’s order issued in November of
that year had not been satisfactory, and the question was still pending

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

277

INDUSTRIAL DISPUTES

when the strike occurred on June 1, 1945. The same day the matter
was referred to the Steel Commission of the NWLB set up on March
30, 1945. Local union officials were unsuccessful in getting the men
back to work, and on June 13 the international officers warned the
union that maintenance of membership provisions might be with­
drawn by the National War Labor Board, and the position of the
union throughout the Nation jeopardized, if the strike continued.
Work was resumed that night.
Strikes and Lock-outs in First Half of 1945
Idleness during strikes and lock-outs in the first 6 months of 1945
involved 0.15 percent of the available working time. There were
2,300 work stoppages during this half year, with 1,250,000 workers
involved, and 6,580,000 man-days of idleness. Not all of this time
was lost, however, as much of it was made up through overtime and
work on holidays. It is estimated that the approximately 9 million
workers in munitions industries alone, by remaining on the job on
New Year’s Day, Washington’s Birthday, Memorial Day, and the
Fourth of July, put in more than five times as many man-days of work
as were lost through strikes and lock-outs during the first 6 months of
this year. In fact, the time worked by munitions workers on these
four holidays quantitatively exceeded the idleness during all strikes
and lock-outs in the entire war period—from December 7, 1941, to
June 30, 1945. Over 35,000,000 man-days were worked by munitions
workers on these four holidays, as against 33,287,000 man-days of
idleness during strikes and lock-outs in the period since the attack on
Pearl Harbor.
The number of stoppages in the first 6 months of 1945 was smaller
than in the corresponding period of 1944 although greater than in the
preceding war years. The number of workers involved was greater
than in any corresponding half-year period since 1941, and the
amount of idleness, although greater than in 1944 and 1942, was less
than in 1943 and 1941. Figures for the first 6 months of each year
from 1939 to date are shown in table 2.
T a b l e 2 . —Strikes and Lock-outs in the First 6 Months of Each Year, 1939-45
First 6 months of—
1Q2Q
1Q4R
1Q41
1Q49
1043
1944
1945 l

_

____________________ _______
_ _________________________ -- ___ ____ ______________________
____
____________ ___ _
_________________ ____________
------------ ---------- -----------------_____________ _______ 2 ----------------

Strikes and
lock-outs
1,401
1,159
2, 068
1,478
1,869
2,539
2, 310

Workers
involved
717, 000
210,000
1, 258, 000
387, 000
1,167,000
1,024,000
1,250,000

Man-days
idle
11,093,000
2, 515, 000
14,145, 000
2,366, 000
7, 577, 000
4, 393,000
6, 580, 000

i Preliminary estimates.

During the first 6 months of 1945 the National Labor Relations
Board conducted 203 strike ballots under the War Labor Disputes Act,
an average of about 34 per month, compared with 317 ballots in the
12 months of 1944, or 26 per month. Up to June 30, 1945, there were
57 strikes following such ballots, compared with 69 such strikes in the
year 1944. These 57 strikes comprised 2.5 percent of all strikes and

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

278

MONTHLY LABOR REVIEW— AUGUST 1945

lock-outs during the period, compared with slightly more than 1 per­
cent in 1944. The number of workers involved in these strikes in
1945 was more than 20 percent of those involved in all stoppages (as
compared with 5 percent in 1944) and the idleness about 45 percent
(6 percent in 1944). Eliminating the large coal-mine stoppages in
April and May, which were preceded by strike ballots, the figures for
the first 6 months of 1945 represent slightly more than 7 percent of the
total workers involved and about 19 percent of the total idleness.

Activities of U. S. Conciliation Service, May 1945
DURING May 1945, the U. S. Conciliation Service disposed of 2,270
situations as compared with 1,921 situations in April. During
May of the previous year, 2,164 situations were closed.
Of the 264 strikes and lock-outs handled, 231 were settled success­
fully; 33 cases were certified to the National War Labor Board in
which strikes occurred during negotiations, but in 18 cases a Com­
missioner of Conciliation had effected a return-to-work agreement
prior to certification of the case. The records indicate that 260
situations were threatened strikes and 1,453 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 487 disputes were certified to the National War
Labor Board. The remaining 293 situations included 123 arbitra­
tions, 15 technical services, 32 investigations, and 123 requests for
information, consultations, and special services.
Cases Closed by U. S. Conciliation Service in M ay 1945, by Type of Situation and Method
of Handling

M ethod of handling

All m ethods-. -

_________ - ________________

Settled by conciliation........................ ...............................
Certified to National War Labor Board___________
Decisions rendered in arbitration__________ ______ _
Technical services completed................... ............... .......
Investigations, special services____________________
i Of these, 18 were settled lprior to referral.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Total

Strikes
and
lock-outs

Threat­
ened
strikes

Contro­
versies

2,270

264

260

1,453

1,490
487
123
15
155

231
133

232
28

1,027
426

Other
situa­
tions
293

123
15
155

Labor Organizations

A. F. of L. Antidiscrimination Program
THE president of the American Federation of Labor has called upon
all the federation's affiliated unions and individual members to combat
racial and religious bigotry and discrimination.
In the July 1945 number of the American Federationist, Mr. Green
emphasized the necessity of carrying out the mandate of the 1944
A. F. of L. convention for the establishment of “industrial equality.”
Organized labor’s important stake in the elimination of intolerance
was strongly stressed:
When and if organized labor predicates membership in any union upon race,
religion, or ancestry, it is helping to create a potential antilabor army that can be
used by labor baiters to fight labor unions, weaken labor’s collective-bargaining
power, and destroy its effectiveness.
Freedom is essential to the preservation of democracy. When we begin to limit
it by insisting that it be denied to some because of racial or religious differences,
the list of exceptions grows until finally freedom for all is ended.
For instance, the rights of the worker, his freedom to organize into a union of his
own choosing and to bargain collectively for wages and decent conditions of living,
are the first to be destroyed if we seek to establish limited freedom.

Fusion of Labor Organizations in Belgium1
»

MORE than 900 delegates of four important labor movements in
Belgium, who gathered at a Congress of Unity, in Brussels, April 28
and 29, 1945, voted to unite in a single General Federation of Labor
(.Fédération Générale du Travail de Belgique—F. G. T.). The congress
adopted a statement of basic principles for the federation and its con­
stituent unions, agreements on the structure and constitution of the
federation and on membership dues, and a program for immediate
action. In effect, the result of the union was to establish a labor
movement including Socialist, Communist, and some nonparty unions.
The Christian and Liberal labor unions (Confédération des Syndicats
Chrétiens and Confédération des Syndicats Libéraux) retained their
former organizations.
Objectives and Principles of Union
Although the free trade-unions of Belgium were dissolved by the
Germans and could operate only locally and clandestinely during the
occupation, within 6 months after liberation a series of meetings had
prepared the way for unification of the main fragments of the prewar
unions, with the exception of the Christian and the Liberal groups.
i Data are from reports of R. Smith Simpson, labor attaché, United States Embassy, Brussels, April 20
and 30, M ay 5, and June 4, 1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

279

280

MONTHLY LABOR REVIEW— AUGUST 1 9 1 5

In spite of differences, both old and young leaders saw less danger for
tlieir unions in combination than in continued separation. The
organizations which united to form the new federation were the
Confédération Générale du Travail de Belgique, (the prewar Socialist
union), the Confédération des Syndicats Uniques and the Mouve­
ment Syndical Unifié (both formed during the occupation), and the
Syndicat Général des Services Publics (union of civil servants).
The main objective of the new federation (F. G. T.) appears to be
the development of industrial democracy by winning for labor the
direction of the national economy. Unions in the F. G. T. must
remain independent of political parties, and then officials are forbidden
to hold political or party office. The fullest internal democracy,
freedom of discussion, public voting and decision by majority vote,
and the elimination of animosity between member groups are among
the basic principles enunciated. The labor unions are not to perform
social services, but, according to the statement of principles, they
should cooperate in the management of social insurance 2 under the
supervision of public authorities.
Structure and Constitution of the Federation
The General Federation of Labor is to consist of plant (enterprise)
and local sections, grouped by regions according to industry-—min­
ing, civil service, etc. The F. G. T. and its component regional or
plant sections may create technical commissions to study common
interests-and demands of their various member crafts or trades.
Distinction between Walloon and Flemish is forbidden.
The organs of the federation are the general congress and the direct­
ing bodies—the bureau and the national committee. Among duties
designated for the general congress (representation in which is pro­
rated according to number of dues-paying members) are the dis­
cussion and review of reports of the secretaries and certain decisions
of the national committee, the election of members of the bureau, the
fixing of dues (subj ect to certain changes by national unions), and the
distribution of funds.
The bureau consists of 2 1 members, 6 of whom serve as the secre­
tariat. As chosen by the Congress of Unity, the bureau included
representatives of all 3 regions of Belgium (Wallonia, Flanders, and
Brabant) and of all 4 of the groups participating in the fusion. Its
functions are management of the funds of the federation, preparation
of agenda, and convocation of the national committee and the congress.
The national committee is to approve (by a two-thirds vote) the
affiliation of organizations, delimit union jurisdiction, and select the
secretary general and assistant secretary general on the advice of
the bureau, and it may impose special dues to support conflicts which
involve trade-union principles.
Program of the F. G. T.
The program adopted for the F. G. T. sets forth the full-employment
concept in great detail. It stresses the duty of the labor movement to
obtain favorable working conditions including a minimum wage based
on “needs of contemporary civilization” ; limitation of working hours;
» See M onthly Labor Review, July 1945 (p. 67).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

281

LABOR ORGANIZATIONS

health and safety legislation and special protection for women and
youth; organization of apprenticeship with the collaboration of the
unions; comprehensive social security; grants sufficient to make pro­
fessional education available to all, a school-age limit of 16, technical
and cultural after-school education, and retraining schools to avoid
effects of technological unemployment. With unity achieved at the
top, efforts were being made to unify the local unions.

Labor Union Membership in Bulgaria, May 1945
AS OF May 1945, about 350,000 trade-union members were reported
for Bulgaria, representing about a third of all workers and employees
in that country . 1 In 1939, some 162,000 trade-union members were
reported .2 Labor organization received a great impetus after Sep­
tember 9 , 1944, when the government of the Patriotic Front came into
power. After that date new trade-unions began to spring up in vari­
ous enterprises and establishments, and helped to form the foundation
for the new Bulgarian General Federation of Labor. The secretary
of the Federation stated that Bulgarian industry was still in private
hands as before, except for enterprises whose owners had fled to Ger­
many or which were confiscated by court action.

Worker and Employer Organizations in Ireland,
1938-443
THE total number of worker and employer organizations registered
under the trade-union acts in Ireland rose from 71 in 1938 to 94 in
1943 and 96 in 1944. Membership during that period, however, de­
clined from 121,866 in 1938 to 112,200 in 1943; statistics of member­
ship were not available for 1944. Of the 1943 totals, 51 organizations
with 104,524 members were labor unions, representing approximately
54 percent of the groups registered and 93 percent of the member­
ship. Nearly half of the labor-union membership in that year was
in the transportation and communications industry, with the unions
in the distributive trades and public administration having relatively
large totals also. Forty-three employer organizations were regis­
tered, these groups having 7,676 members. The number of labor
and employer organizations registered at the end of each year 1938-44,
and their membership, are shown below.
1938
1939
1940
1941
1942

_

Number
registered

___________________________

71
77
82
83
95

19 4 3 _____________________________________

94

1944

96

___________________________

Membership

*

121,866
131, 157
127, 570
104, 273
113,331
112, 200
(9

1 N ot available.
1 £ ,ata are from pravda (Moscow), M ay 20,1945 (p. 4), which presented a summary of an interview with
George Tsankov, general secretary of the Bulgarian Federation of Labor.
2 See M onthly Labor Review, October 1943 (p. 681).
.
s D ata are from Report of the Registrar of Friendly Societies for the year ended December 31, 1944,
D ublin, 1945.
•7
6 5 6 2 4 3 — 45 
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

282

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

Policy of Italian General Confederation of Labor1
RESOLUTIONS of the executive committee of the Italian General
Confederation of Labor (C. G. I. L.) at the meeting of April 1 1 - 1 2 ,
1945, indicate that the executive committee favored (1) the adoption
of a sliding scale of wages based on the cost of living, (2 ) equal pay
for equal work for men and women, (3) labor representation on ad­
visory committees to be established to assist various ministries of
the Government, (4) proportional representation for labor in the
National Consultative Assembly, the deliberative body which the
Government was to establish, and (5) the continuance of the existing
social security agencies until a single organization can be created.
Suggestions made by the C. G. I. L. regarding the work of its affili­
ates stressed the development of democratic procedures, the organiza­
tion of agriculturalists, and the encouragement of a large membership
by the collection of small rather than large dues.
Resolutions of Executive Committee
The C. G. I. L. requested the Government to adopt a sliding wage
scale as early as December 1944. It has, however, also participated
in negotiations for wage increases based on fascist labor contracts.
The latter action appears to have been a temporary expedient de­
signed to provide a livelihood for workers until more stable conditions
would permit basic revision of collective agreements. The resolution
of April 1 1 - 1 2 pointed out that improvements gained by negotiated
wage increases would be “ cancelled out by further increases in the
cost of living,” which must lead to continued agitation for wage
increases. Consequently it was decided to establish a committee to
make concrete proposals for the adoption of a sliding wage scale
tied to the cost of living. The committee was also to request the
reduction of prices, suppression of speculation, better distribution of
rationed foods, and greater powers for the Food Commissioner.
Women took part in the Naples convention of the C. G. I. L.
(January 28 to February 1 , 1945). Their continuing activity in
organized labor was partially arranged for by providing that each
confederal chamber of labor of the C. G. I. L. should appoint an
advisory committee for women. At the April meeting of the exec­
utive committee, a resolution not only endorsed the principle of equal
pay for women for equal work, but also favored “ head of the family”
bonuses for women who supported dependents.
The resolution of the executive committee advocating labor repre­
sentation on consultative committees would require that workers take
part in all administrative and technical organizations of the State
which might be consulted by the Government before issuing regula­
tions concerning labor. Such a procedure of consultation was used
by the Ministries in prefascist times.
In a resolution on labor participation in the National Consultative
Assembly, the executive committee of the C. G. I. L. asserted labor’s
right to proportional representation in the Assembly. It based the
i Data from II Lavoro (Rome), April 12 and 13,1945, L ’Unità (Rome), April 13,1945, and La Voce (Naples)
April 13, 1945; and report of John Clarke Adams, labor attaché, United States Embassy Rome M ay 18
1945, enclosing pamphlet, A tutte le camere confederali del lavoro dell’Italia liberata, allé federazioni nazionali, Confederazione Generale Italiana del Lavoro, Segreteria Generale (Rome).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR ORGANIZATIONS

283

right to such representation on the numerical superiority of labor
over management and on labor’s importance in national reconstruc­
tion. The National Consultative Assembly, as provided for by a
decree of late March, was to be an advisory or consultative body,
created to assist the Government and prepare the way for a National
Assembly. The Consultative Assembly was to consist of a number
of commissions (one to consider labor matters) and all were to be
appointed by the Government on the advice of the major political
parties, the trade-unions, and other organizations.
Of other resolutions of the executive committee, one favored labor
representation in the social-insurance agencies and the eventual es­
tablishment of a single agency in that field; another advised that the
secretariat of the C. G. I. L. interest itself in emigrant groupsand
another created a commission to discuss the constitution of a regional
labor organization for Sicily.
Suggestions for Affiliates
In a pamphlet of advice issued for regional, provincial, and local
units ,2 the secretariat general of the C. G. I. L. urged members to
assume the responsibilities of free unions and express their opinions by
means of public meetings and delegations to the management or local
authorities. Unions were advised to settle their problems locally and
democratically rather than by appeal to bureaucracy. Elections
should be conducted by secret ballot. Unions should adopt pro­
portional representation, and give a fair share of representation to
women, technicians, and clerical workers. The line was carefully
drawn between the functions of factory committees (which should
represent all the workers in the factory) and of the labor unions.
Modification of general labor conditions was defined as the special
field of the unions and in it “ the factory committees should work
through the unions.”
Unity among workers was to be encouraged by avoiding clashes
between workers of differing religious and political faiths, and by
seeing that the three secretaries customarily chosen by labor chambers
were placed in charge of a specific function, such as social-security
assistance throughout all the unions, rather than in charge of a group
of commercial or other unions.
Two types of organization were suggested for the rural working
population: (1 ) Peasant leagues, to include sharecroppers, small renters,
and small independent proprietors who did not employ more than one
man, and (2 ) laborers’ unions to include all wage earners and tech­
nicians who were not shareholders in the agricultural enterprise.
Membership in the C. G. I. L. unions was to be encouraged by bringr
ing in autonomous unions and by keeping union dues low. Dues for
women, youths, and unemployed should be within their means.
2

For details of organization, see M onthly Labor Review, M ay 1945 (p. 1011).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Decisions

State Legislation on Compensation for Second Injuries1
WAR manpower needs have served to prove the skill and productivity
of physically handicapped workers. Industry’s favorable experience
with such workers during the war should make it much easier for
returning disabled war veterans to obtain jobs in the reconversion and
post-war periods.
In the past many employers hesitated to employ physically disabled
persons, lest they incur subsequent injuries and thus increase work­
men's compensation cost. Even before the war, however, many
States had reduced this problem by establishing second-injury funds,
relieving employers of at least part of the cost of total disability re­
sulting from a second injury.
State workmen’s compensation commissioners, employer and em­
ployee groups, and veterans’ organizations have agreed that secondinjury funds offer the best means of facilitating the employment of
disabled veterans and other handicapped persons. The most prac­
ticable and workable type of law provides that if previous loss of a
member of the body (such as an arm or leg) is followed by the loss of
another member, the employee is entitled to compensation for per­
manent total disability. The employer, however, is liable only for the
second injury, the remainder of the compensation being paid by
the second-injury fund.
Considerable progress has been made, since the beginning of 1945,
in the establishment of second-injury funds, and second-injury funds
are provided for in 32 States .2 The District of Columbia and Hawaii
also have second-injury funds, and similar protection is provided by
the United States Longshoremen and Harbor Workers’ Act.
As of January 1 , 1945, second-injury funds had been established by
law in the following 16 States: Arkansas, Idaho, Illinois, Maine,
Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New
York, North Carolina, Oklahoma, Rhode Island, South Carolina,
Utah, and Wisconsin. In 4 other States (North Dakota, Ohio, Wash­
ington, and West Virginia) there were “equivalent arrangements” for
the payment of benefits in the case of second injuries.
During the 1945 sessions of the legislatures, the following 13 States
enacted laws establishing second-injury funds: Arizona, California,
Colorado, Connecticut, Delaware, Iowa, Kansas, Maryland, Oregon’
Pennsylvania, Washington, and Wyoming. It will be noted that
one of these States (Washington), which previously provided for
second injuries by an “equivalent arrangement,” has joined the
group having a definite second-injury fund.
1 Prepared in the D ivision of Labor Standards of the Department of Labor by Alfred Acee.
2 At the time this article was written, second-injury legislation was pending in 2 States—Alabama, and
Ohio.

284

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAWS AND DECISIONS

285

The meeting of the International Association of Industrial Accident
Boards and Commissions, in September 1944, recommended a draft
bill relating to second injuries and the establishment of a secondinjury fund. The draft bill provides that if an employee who has
sustained one of certain specified losses—i. e., the loss (or loss of use)
of one hand, one arm, one foot, one leg, or one eye—becomes perma­
nently and totally incapacitated through the loss or loss of use of
another member or organ, the employer shall be liable only for the
compensation payable for the second injury, and the balance of the
compensation shall be paid out of the second-injury fund. The fund
is financed by payments of $500 by the employer in each case of death
if there are no dependents.
Provisions of 1945 Legislation
N E W L E G ISL A T IO N

In certain States the second-injury fund assumes the burden of
compensation for the second injury if the previous disability resulted
from a specific loss, as provided in the I. A. I. A. B. C. draft bill.
These States are Arizona, Colorado, Iowa, Kansas, Maryland, Oregon,
Tennessee, and Wyoming. In Colorado, the benefits payable from
the fund are limited to one-half of the average wage loss in case the
employee obtains employment while receiving benefits. In Iowa and
Kansas, the amount of benefits paid for the previously lost member or
organ is deducted from the amount of compensation due for permanent
total disability. In Oregon the law applies only to the actual “loss”
of a member, and does not cover “loss of use.” The Wyoming law
applies only to extrahazardous employments, and payments previ­
ously made for a permanent partial disability, or payments which
would have been made if the prior injury had occurred in an extrahazardous employment, are deducted from the award.
Financial and other provisions.—The injury-coverage provisions of
these laws are somewhat similar to the draft bill, but there are dif­
ferences in the methods of financing the second-injury funds. Thus,
in Arizona the payments for second injuries are made out of a special
fund which was previously used for rehabilitation awards and addi­
tional awards in special cases. To take care of second injuries, the
amount payable in death cases where there are no dependents was
increased from $850 to $1,150.
The California law provides that if an employee is permanently
partially disabled by the loss of, or loss of use of, a hand, arm, foot,
leg, or eye, and subsequently incurs an injury resulting in such addi­
tional permanent partial disability that the combined effect of the
last injury and the previous disability is a permanent disability equal
to 70 percent or more of total, he shall be compensated for permanent
total disability. In such case the employer is liable only for second
injury and the remainder is paid by the State treasurer. The law
appropriates $2 0 0 , 0 0 0 for the payment of these additional benefits.
The Colorado fund is financed by payments of $500 in death cases
where there are no dependents, as is proposed by the draft bill. The
same method of financing is used in Wyoming, but in that State there
is also provision for a State appropriation, the receipt of any sums
that may be contributed, and amounts recovered from a third party

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

286

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

causing injury of the employee. In Kansas the employer is required
to pay $500 in each case of death where there are no dependents, bu
in addition $25,000 is appropriated to finance the fund, which is
limited to a total of $50,000.
In Connecticut the law provides that if an employee has previously
incurred, by accidental injury, disease, or congenital cause, permanent
partial incapacity by means of the total loss of one hand, one arm,
one foot, one leg, or one eye, and sustains an injury resulting in per­
manent total disability by means of the loss, or loss of use of another
member or eye, he shall receive compensation for total disability.
The employer is liable only for the second injury and the remainder
of the compensation for total disability is paid by the second-injury
fund. Such payments are also required in the case of the reduction
of sight in one eye to one-tenth of the normal vision with glasses,
followed by a similar loss of sight in the other eye. The secondinjury fund is financed by payment of 1 percent of compensation paid
by insurance carriers and self-insured employers during the preceding
calendar year. Payments to the fund are suspended when it amounts
to $50,000 and resumed when the fund is reduced below $50,000.
The Delaware law provides that if an employee has sustained a
permanent injury from any cause and sustains a subsequent permanent
injury resulting in total disability, he shall receive compensation for
total disability for a period of 500 weeks. The employer is liable only
for the second injury, and the remainder of the compensation for to ta
disability is paid by the second-injury fund. This fund is finance»
by a tax of one-half of 1 percent on premiums received by insurant
carriers and an equivalent charge on self-insurers. Payments to the
fund are suspended when it amounts to $30,000, and are resumed when
the fund is reduced below $20,000. If the employer or insurer makes
payments to the employee for total disability, the second-injury fund
is required to reimburse the employer or insurer semiannually.
In Iowa, finances are obtained through (1 ) payment of $ 1 0 0 by the
employer or insurance carrier in death cases, (2 ) any sums contributed
by the United States, (3) payments due but not paid to nonresident
alien dependents, and (4) any sums recovered from a third party
causing the injury. The fund is limited to $50,000. In Maryland
the fund is financed by employer (or carrier) payments of $ 1 0 0 for
each death resulting from injury and of $ 1 0 in each case of injury
causing permanent partial disability, and by any Federal funds
received. Contributions are suspended when the fund amounts to
$1 0 0 , 0 0 0 and resumed when it is reduced to $50,000.
In Oregon the law provides for financing entirely by the Industrial
Accident Fund—through the transfer of $250,000 in a lump sum and
thereafter the transfer each month of 2% percent of total receipts, up
to a total limit of $200,000. The Industrial Accident Commission
is authorized to pay other compensation benefits from the secondinjury fund if the Accident Fund becomes exhausted. The Tennes­
see law provides for employer or insurance-carrier payments of $100
in each case of injury causing death, and $10 in each case of permanent
partial disability.
Under the Pennsylvania law, which becomes effective September 1 ,
1945, if an employee who has incurred permanent partial disability
through the loss or loss of use of one hand, one arm, one foot, one leg,
or one eye, incurs total disability through a subsequent injury causing

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAWS AND DECISIONS

287

Joss or loss of use of another hand, arm, foot, leg, or eye, the employer is
rliable only for the second injury, and the remainder due is paid by the
rCommonwealth. The law appropriates $100,000 for the payment
of these additional benefits.
The Washington law does not follow the draft bill, but instead
provides that if a workman previously disabled from an injury or
disease suffers a further injury or disease, and becomes totally and
permanently disabled from their combined effects, the accident-cost
rate of the employer at the time of the second injury shall be charged
only with the accident cost which would have resulted solely from
the second injury. The difference between the charge assessed to
the employer and the total cost of the pension reserve is assessed
against the second-injury fund. The newly established secondinjury fund is financed by transfer of funds, not to exceed $500,000,
from the Accident Fund to the second-injury fund. As already noted,
previous to the enactment of this law payments for second injuries
were taken care of by an “equivalent arrangement.”
A M E N D A T O R Y L E G ISL A T IO N

In five States (Minnesota, New Jersey, New York, North Carolina,
and Oklahoma) amendments to existing laws relating to second-injury
funds were enacted in 1945 sessions. The Minnesota law provides
that after maximum death benefits are paid to a widow with a depend­
ent child under 18, she is entitled to receive from the second-injury
.fund additional compensation up to $2,500, payable at a maximum
' rate of $15 per week, and a minimum of $8 . In New Jersey, the
maximum amount in the second-injury fund was increased from
$200,000 to $1,500,000.
The New York law changes the method of financing the special
liability fund, by assessing insurance carriers on a basis proportionate
to their share in the total compensation payments made by all carriers,
instead of requiring payments only in death cases where there are
no dependents. The amendment applies to employees who have
suffered a total or partial loss or loss of use of one hand, one arm,
one foot, one leg, or one eye, or have other permanent physical impair­
ment not resulting from a dust disease. In such cases, if the worker
incurs a subsequent disability, resulting in a permanent disability
substantially greater than that which would have resulted from the
subsequent injury alone, the employer or insurance carrier is required
to pay all awards and medical expenses but is reimbursed from the
special disability fund for such benefits subsequent to those payable
for the first 104 weeks. “Permanent physical impairment” is defined
to mean any permanent condition resulting from a previous accident
or disease or any congenital condition which is likely to be a hindrance
to employment.
The amendatory legislation adopted in North Carolina provides
additional money for the second-injury fund by requiring payment
of $25 in each case of loss or loss of use of a minor member, and $ 1 0 0
in each case of 50 percent or more loss, or loss of use, of a major member
(defined as foot, leg, hand, arm, eye, or hearing). The law specifies
that additional compensation for the second injury shall be paid
only if the original and the increased disability each accounts for the
loss of at least 20 percent of the entire member.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

288

M ONTHLY LABOR REVIEW— AUGUST 19 45

In Oklahoma, changes were made in connection with an injury to a
“physically impaired” employee, under the provision of the workmen’s
compensation law establishing a special indemnity fund. If a second
injury and previous injury together constitute a permanent total
disability, the employee is entitled to full compensation; if they con­
stitute only a permanent partial disability, the percentage of dis­
ability attributable to the employee’s condition as a “physically
impaired” employee is deducted from the award. The law appro­
priates $15,000 to supplement the second-injury fund.
Although Indiana did not establish a second-injury fund, the
provisions of its law relating to compensation in the case of second
injuries were liberalized. Under the amendment, handicapped
workers are no longer permitted to waive their rights to compensation.
The amendment provides that if the employee has sustained a per­
manent injury either in another employment (as under the former
law) or “from other cause or causes than the employment in which he
received a subsequent permanent injury by accident,” he is entitled
to compensation for the subsequent permanent injury in the same
amount as if the previous injury had not occurred. If the second
injury results only in aggravation of a previously sustained injury,
however, the employee is entitled only to compensation for the aggra­
vation or increase. The amendatory legislation also provides that
amputation of any part of the body or loss of any or all of the vision
of one or both eyes shall be considered as a permanent injury or
physical condition.

Recent Decisions of Interest to Labor1
Important Supreme Court Decisions on Labor Questions
E M P L O Y E R - U N I O N com bination in restraint o f trade .—-When

labor
unions, in order to further their own interests, aid and abet business­
men in procuring a monopoly, such unions become “copartners” in
restraint of trade and are, together with the employers, subject to the
Sherman Act.2 The’United ptatesj Supreme’’Court, in ’giving a brief
resume of the Sherman, Clayton, and Norris-LaGuardia Acts, said:
“We think Congress never intended that unions could, consistently
with the Sherman Act, aid nonlabor groups to create business mo­
nopolies and to control the marketing of goods and services.” An
employer and the union may lawfully agree that the employer will
not buy goods manufactured by companies which did not employ the
members of the union. In this case, however, there was a larger
program in which contractors, manufacturers, and union banded
together to monopolize the entire New York City area for the benefit
of the New York employees. Efforts of the union on its own behalf to
make the area a closed-shop area would not have been objectionable,
continued the Court; “it would have been the natural consequence
of labor-union activities exempted under the Clayton Act from cover­
age under the Sherman Act.” Since, however, the primary objective
1 Prepared in the Office of the Solicitor, 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
all 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 Allen Bradley Co. v. Local Union No. S, International Brotherhood of Electrical Workers,----- , U . S . -------June 18,1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAWS AND DECISIONS

289

of all antitrust legislation has been to preserve competition, a business
monopoly is no less such because a union participates. Such partic­
ipation, the Court said, violates the act and subjects the union and
the employer to the penalties provided for by the act.
Mr. Justice Roberts concurred in the results but disagreed on the
scope of the injunction as approved by the Court.
New York antidiscrimination law not in conflict with Federal em­
ployment statutes.-—-The United States Supreme Court affirmed the
decision of the New York Supreme Court holding that the State antidiscrimination law does not apply to the bylaws of the Railway Mail
Association (an affiliate of the American Federation of Labor) , 3
which limit membership to eligible postal clerks who are of the
Caucasian race or native American Indians. The Court found
as follows: (1 ) The statute placing a prohibition on discrimination
because of race, creed, or color does not violate the fourteenth amend­
ment to the Constitution, as the State has the right to protect minority
groups and organizations functioning under its sanction; (2 ) a'State
does not deny equal protection because it regulates the membership
of all organizations but fails to extend to organizations of Government
employees provisions relating to collective bargaining, as under
ordinary circumstances Government employees do not bargain
collectively with their employer; (3) such a State statute does not
interfere with congressional authority over postal matters, as there is
no interference with postal regulations orjiost roads and the immunity
of the Government from regulation by the State does not extend
beyond the Government itself and its governmental functions. The
State always regulates its own internal affairs and a State law such as
this tends, if anything, to parallel the rights of minorities under the
Federal Constitution.
Union’s refusal of workers, forcing company out of business, not viola­
tion of Sherman Act.—A union, admittedly to punish the owner of a
trucking company because of a former labor dispute in which one union
member was killed, refused to permit its members to work for the com­
pany and ref used to admit to membership in the union anyone who did.
The union also entered into closed-shop agreements with large com­
panies, including The Great Atlantic & Pacific Tea Co., whereby
all trucking and hauling companies had to employ union men. As
a result, the petitioner trucking company was put out of business.
The United States Supreme Court, in a 5-to-4 decision, 4 held that the
union’s activities were not in violation of the Sherman Act, since a
labor union has a right to sell its services where and when it pleases.
The dissenting opinion by Mr. Justice Roberts, in which he was joined
by Mr. Chief Justice-Stone, Mr. Justice Frankfurter, and Mr. Justice
Jackson, took the position that the dispute involved was not one
concerning hours, wages, or other labor conditions, but arose out of
the effort to drive petitioners out of business by frustrating every
attempt of the petitioners to obtain contracts with shippers, thus
reducing competition in interstate commerce. The minority viewed
this case as similar to the Allen Bradley case reported simultaneously, 5
in which it was held that a union’s combination with businessmen to
accomplish a business objective was not protected by the Clayton or
Norris-LaGuardia Acts.
s Railway M ail Assn. v. C o m ,----- U. S . ------ , June 18, 1945.
4 Hunt v. Crumbach,----- U . S . ------ , June 18, 1945.
t See p. 288, this issue.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

290

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

Decisions Relating to Fair Labor Standards Act
Building employees under Fair Labor Standards Act.—Two closely
related cases have been decided by the United States Supreme Court
to determine what office-building maintenance employees are subject
to the Fair Labor Standards Act. In the first case, 10 East 40th St.
Bldg. v. Callus,6 the building was rented to tenants pursuing a variety
of businesses and included executive and sales offices of manufacturing
companies, engineering and construction firms, advertising and
publicity agencies, and others. The court decided that, since the
building was devoted exclusively to miscellaneous office activities
and no manufacturing was carried on, the act did not apply.
The second case, Borden v. Borella,7affirmed a lower court decision 8
holding that even though the office building was devoted almost
entirely to housing the executive and administrative offices of a dairyproducts company, this was a circumstance of administration and did
not exclude application of the act. Since the executives were essential
to the proper conduct of an interstate business, housing them in one
building did not change their status, therefore the maintenance
employees were entitled to the benefits of the act.
Travel time of miners in oven-pit mine.—The same principle as that
laid down in the Tennessee Coal9 and Jewell Ridge Coal Corp.10 cases
was adopted in the case of Poe v. Phelps Dodge Corp. (D. Ariz.,
December 5, 1944.) Time spent by miners in an open-pit mine in
checking in and out, obtaining instructions, etc., is working time,
regardless of any industry practice previously in existence.
Manufacturing of cheese held “first processing"of milk.—In appar­
ently the first consideration of the question, the Supreme Court of
Arkansas in Sugar Creek Creamery Co. v. Walker (187 S. W. (2 d) 178),
ruled that “ flash” pasteurization was merely a step in the manufactur­
ing of cheddar cheese and bulk butter and that the entire operation
from milk to cheddar cheese and cream to butter was the “ first
processing” of milk or cream to a dairy product. Under this interpre­
tation of section 7 (c) of the Fair Labor Standards Act, the employees
do not come within the act.
Interpretation regarding piece rates and incentive earnings.—In com­
puting the regular rate for purposes of determining amounts due for
overtime, under the Fair Labor Standards Act, all forms of com­
pensation from whatever source, received by the employee in the work­
week, must be included. 11
The regular rate is not an arbitrary rate but an actual rate which
may be based on a mathematical computation. When the employees
actually earn more than their apparent basic hourly rates, the basic
rates lose their significance in determining the actual rate of com­
pensation.
The United States Supreme Court ruled that it made no difference,
for the purpose of computing overtime, whether the wages received
for work during the workweek are wholly or in part piecework prices,
6 65 Sup. Ot. 1227, June 11, 1945.
i 65 Sup. Ct. 1223, June 11, 1945.
8 Discussed in M onthly Labor Review for September 1944 (p. 582).
9 Discussed in M onthly Labor Review for M ay 1944 (p. 1021).
10 Discussed in M onthly Labor Review for July 1945 (p. 99).
11 Walling v. Youngerman-Reynolds Hardwood Co., 65 Sup. Ct. 1243, June 4, 1945; Walling v. Harnisch
feger Corp., 65 Sup. Ct. 1246, June 4, 1945; lower court decision discussed in M onthly Labor Review for
March 1945 (p. 594).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAWS AND DECISIONS

291

since the regular rate must reflect all payments which the parties
agreed should be received for such work. The Court distinguished
these two cases from that of Walling v. Belo (316 U. S. 624), saying
that the agreed rate in the Belo case was in fact the actual regular
rate at which the workers were employed. The Court emphasized
that freedom of contract did not include the right to compute the
regular rate in an artificial manner so as to negate the purposes of
section 7 (a) of the Fair Labor Standards Act.
Employees of plani cafeteria under Fair Labor Standards Act.—
Since such employees prepare, distribute, and serve the food to workers
in a plant engaged in interstate commerce, 12 their services are as
much a part of the integrated operation necessary to production as
are those of maintenance employees in such buildings. (Kirschbaum
Co. v. Walling, 316 U. S. 517.) The court, in reaching this conclusion,
relied on Armour <&Co. v. Wantock (323 U. S. 126) 13 in which private
firemen of the company were held to be within the act.
No closed shop for closed union.—In Blackeney v. California Ship­
building Corp.,u the Superior Court of California ruled that whether
or not a closed-shop union holds a monopoly of labor “in the locality/’
it must admit Negroes to membership or lose its closed-shop privi­
leges. This was a reiteration of the policy set forth in James v.
Marinship (155 P. (2 d) 329).15 The court does not require admission
of Negroes to the union, but it does demand a halt to discrimination
by requiring either full membership for Negroes or the waiver of
closed-shop benefits.
“Production” includes distribution as well as manufacture.—The
District Court for the Northern District of Illinois, in a 2 -to-l decision
in United States v. Montgomery Ward <&Co. (58 Fed. Supp. 408), had
held that the Smith-Connally War Labor Disputes Act does not apply
to the company’s mail-order business so as to authorize a Presidential
order of seizure. In reversing this decision, the Circuit Court of
Appeals for the Seventh Circuit held 16 that the term “production,”
as used in the War Labor Disputes Act, must be given the same
meaning as in the Fair Labor Standards Act and thus “distribution”
as well as manufacturing and other directly related production
activities are included in the term. The court held that the purpose
and background of the act as a war measure required a liberal con­
struction of its terms and that the use of this same term in analogous
statutes indicates a congressional intent that they are to have the
same meaning in the absence of specific evidence to the contrary.
The court found it was unnecessary to go into the question of the
scope of the President’s war powers under the Constitution, with
reference to his right to use them to seize Montgomery Ward, since
under the War Labor Disputes Act his power to take possession of
its properties in connection with a labor dispute was clear.
Decisions on National Labor Relations Act
Employees in armed forces cannot be added to current force to determine
majority status.—The National Labor Relations Board ruled that,
even though persons in the armed forces retained their status as
Basik v. General Motors Corp., 19 N . W. (2d) 142, Sup. Ct. M ich., June 5,1945.
Discussed in M onthly Labor Review for February 1945 (p. 337).
Superior Court of California, June 4,1945.
n Discussed in M onthly Labor Review, February 1945 (p. 337).
is United States v. Montgomery Ward & C o.,
Fed. (2 d )
(C. C. A. 7), June 8, 1945.

12
12

h


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

292

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

employees, they were not directly concerned in the choice of a bargain­
ing agent, and that to add such employees to the working groups
would destroy the union’s majority status and “deny to employees
presently working the right of collective bargaining. ” 17 The Board
pointed out that this ruling was not to be construed as a reversal of
the principle that employees on military duty retained their status
as employees. It meant only that a union’s majority status might
be determined without reference to employees on military leave.
Pickets restrained from carrying untruthful signs.—A defeated rival
union in an election has a right to picket peacefully in an attempt to
win to itself new members, 18 but this right of free speech does not
include the right to falsify the facts by carrying signs which imply
that the employer maintains a “company union.” Such activity may
be enjoined.
Irreparable injury no basis for injunction when election properly
conducted.—In Inland Empire District Council v. Willis,19 the union
contended that because the National Labor Relations Board had
failed to afford it an appropriate hearing prior to the election in a
representation proceeding, the union had been denied due process of
law. The United States Supreme Court held this contention un­
tenable, in that section 9 (c) of the National Labor Relations Act
requires only that the requisite hearing be held before the final order
becomes effective. The court pointed out that if the union’s interests
were harmfully affected by the outcome of the election this was
merely the inevitable result of losing the election. The conclusive
act in a representation proceeding is the certification of the selected
representative, and hearings may be held at any time before this
certification.
Illegal strike a good defense against reinstatement.—The Seventh
Circuit Court of Appeals in a unanimous decision20 ruled that
employees who go out on strike to compel a wage increase in violation
of the Wage Stabilization Act are not entitled to reinstatement under
the National Labor Relations Act. The court, denying enforcement
of the Board’s reinstatement order, held that as the strike was not
caused by a “labor dispute” (the strike being illegal), the strikers
could not retain their status as employees. However, the Board’s
order was enforced to the extent of preventing the employer from
continuing unfair labor practices.
The technique of picketing used by the workers, termed “circular
picketing,” whereby the plant entrances were blocked and workers
could not enter the plant, was likened to the sit-down strikes held
illegal in the case of National Labor Relations Board v. Fansteel Corp.
(306 U. S. 240).
Labor unions may not deny individuals the right to work.—Florida
amended its Declaration of Rights by adding the following: “The
right of persons to work shall not be denied or abridged on account
of membership in any labor union or labor organization; provided,
that this clause shall not be construed to deny or abridge the right of
employees by and through a labor organization or labor union to
bargain collectively with their employer.” This amendment has
u Supersweet Feed Co., Inc., 62 N . L. R . B. 9, Case No. 18-C-1069-1070, June 4, 1945.
¡8 Sachs Quality Furniture, Inc. v. Hensley, Sup. Ct. N . Y „ App. D iv., June 1, 1945.
is ----- U . S .------ , June 11, 1945.
2^National Labor Relations Board v. Indiana Desk C o .,
Fed. (2d)
(C. C. A. 7), June 15, 1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAWS AND DECISIONS

293

been declared constitutional by the district court of Florida 21 by a
special three-judge court. This court maintained that the statute did
not abridge the freedom of contract nor interfere with free speech,
but in fact permits a person to decide for himself whether or not he
will join a union in order to work. The court held that the blorida
action is a valid exercise of the police power. It further pointed out
that the wisdom or lack of wisdom in thus giving a “free ride’’ to
nonunion members was for the legislature and the people to determine,
not the courts.

Labor Law of Colombia, 194522
COLOMBIA’S law No. 6 of 1945, dealing with labor disputes,
employment contracts, professional and labor associations, and special
labor jurisdiction, became effective on March 14, 1945. The law
provides for benefits for work accidents, occupational and nonoccupational sickness, and burial, for severance pay, and for paid
vacations.
Employment Contracts
Individual contracts.—A contract is held to exist “between a party
rendering a remunerated personal service under continued subordi­
nation to another, and the party receiving such service.” Minors
“between the age of 18 and 2 1 ” may enter into such contracts without
authorization of their legal representative, but minors who are over
14 and under 18 must obtain permission from the judge or from the
sectional labor magistrate of the region in which they expect to work.
All contracts may be revised “whenever the economy of the country
undergoes an unexpected and serious change,” but a change of
employers does not invalidate a labor contract.
The maximum term of an employment contract is 5 years. When
termination has not been specified, or is not automatically determined
by completion of the work involved, the contract will be in force for
6 months, unless ended by mutual consent upon notice by one or
the other of the parties; in such case it remains in effect not longer
than 1 pay period following such notice. Final termination of the
agreement is dependent upon the cancellation of all debts, benefits,
and indemnities due.
Collective agreements.—When an agreement is entered into by one or
more unions with one or several management associations, for the
rendition of services or execution of a job, a copy must be filed with
the appropriate Ministry. The duration, revision, and termination
of such an agreement are to be governed by the general rules outlined
above. When collective agreements cover more than two-thirds of
the workers in an industrial field in a specific economic region, the
Government is empowered to extend the contract wholly_ or in part,
to other companies of the same industry in the region, which may be
of the same or of similar technical and economic capacity.
21 American Federation of Labor v. Watson (S. D . Fla.), June 11,1945.
_ . _ _ . _n 1A/lr
Data are from Dispatch No. 394 of the United States Embassy, Bogota, Colombia, March 22, 194o.

22


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

294

MONTHLY LABOR REVIEW— AUGUST 1 9 4 5

A p p ren ticesh ip contracts .—Unless it is otherwise stipulated, an
apprenticeship contract may be terminated by the worker upon 7
days’ notice or by the employer upon payment of 7 days’ wages.
However, the term of apprenticeship is not to exceed 6 months unless
the appropriate Government authority expressly permits an extension
of this period because of the technical nature of the work.

Hours of Work and Weekly Rest
Hours of work in general are not to exceed 8 per day or 48 per week.
However, certain classes, such as employees in managerial or con­
fidential positions, domestic servants, etc., are not covered by this
measure, and in agriculture, cattle raising, or forestry, a maximum
9-hour day or 54-hour week is permitted. In intermittent work, hours
may not exceed 1 2 per day, unless the worker resides at the place of
employment. A differential of 25 percent above the day rate is
provided for continuous work between the hours of 8 p. m. and
midnight, and a differential of 50 percent for such work between
midnight and 4 a. m. d ime and a quarter is to be paid to day workers
for overtime, and time and a half to night workers.
An obligatory weekly rest day is provided, for which the worker will
be paid if he has not been absent on any day in the week (or if absent
not over 2 days, provided the absence is for good reason or caused by
fault of the employer). Holidays are not to affect the workweek,
and the worker is to be paid for them as though he had worked upon
those days.
Wage Provisions
The law forbids the payment of wages in merchandise, in tokens,
or by other similar means, but partial remuneration in kind (paid
in food and living quarters) to wage earners living near the enterprise
is permitted. Company stores selling merchandise or groceries are
forbidden, unless the wage earner is free to make his purchases else­
where if he chooses, and unless the employer makes known the condi­
tions under which the goods are sold.
The Government is authorized to set minimum wages for any
economic region or for any professional, industrial, commercial, cattle­
raising or agricultural work of a specific region, in accordance with the
cost of living, methods of work, relative aptitude of the workers,
systems of remuneration, and economic capacity of the enterprises, as
disclosed by findings of commissions composed of management and
labor.
Workers' and Employees' Associations
The right of association into company, industrial, or craft unions,
is recognized (except for public employees). “ Company unions are
the base of union organization. They are to be preferred as the
representatives of their affiliates in all labor problems.” Only one
union will be recognized per enterprise. In an establishment in which
there is more than one union, the largest must accept into member­
ship the members of the other union or unions, on terms not more
onerous than those imposed on its own previous members.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAW S A N D DECISIONS

295

A company union, while it has legal representation, may require
the management to adopt the check-off system and turn over to the
union the dues of the union members.
Every union must give the appropriate Ministry, twice a year, a
detailed statement of its income and expenditures.
Labor Disputes and Labor Courts
Labor disputes in public services, which are not settled either
directly or by conciliation, are to be submitted for decision to a
special tribunal composed of 3 members—1 designated bv the workers,
1 by management, and the third by the appropriate ministry.
When
a strike or shut-clown in a company that is not of a public-service
character lasts more than 8 days, the Government wdll create a
tribunal of 3 members representing labor, management, and the
appropriate agency. This tribunal will investigate and propose a
solution; if no agreement is reached, “ the same procedure will be
repeated every 8 days.”
Jurisdiction over contract fulfillment, interpretation or execution
of labor contracts, collective agreements, or labor legislation, and over
premiums, bonuses, and other benefits, is to be permanently exercised
as follows: (a) By labor courts as courts of the first or only instance;
(b) by the sectional labor tribunals, as appellate courts; and (c) finally
by the Supreme Labor Court. The Supreme Labor Court is to be
composed of 3 members elected by the House of Representatives—
one from each of three lists submitted by the President of the
Republic (one prepared by himself, one by management, and one by
labor). Sectional tribunals are to have 3 members each, designated
by the Supreme Labor Court—one from each of the lists)provided by
Government, labor, and management. The sectional tribunals
will elect the labor judges of their respective jurisdictions.
Temporary Welfare Provisions for Private Industry
Pending the organization of a compulsory system of social insur­
ance, private employers are required to furnish compensation for
sickness and accidents, and to provide old-age pensions, dismissal pay,
and vacations with pay.
Vacations and severance pay.—Salaried employees and wage earners
of private employers are entitled to 15 continuous days of vacation,
with pay, for each year of service rendered, starting from October
16, 1944. “The vacation period is to be determined by the employer
within a year. It is forbidden to compensate vacations with money
before the expiration of existing contracts, but the parties may agree
to accumulate vacations up to 4 years.”
Private employers are to grant 1 month’s salary to the worker for
each year of service, in the event of dismissal not caused by miscon­
duct or failure to fulfill the contract. For every 3 years of service
(whether continuous or not) the worker acquires the inalienable right
of severance pay for that period, even though he retires voluntarily
or is dismissed in the subsequent 3 years. Generally, these provi­
sions and the vacation provisions do not apply in full to small industries
of a family character, to domestic servants, to companies witff capital

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

296

M ONTHLY

LABOR R E V IE W — AUGUST

1945

not exceeding 125,000 pesos,2 to cattle-raising enterprises with capital
of not more than 80,000 pesos, nor to agricultural and forestry enter­
prises having less than 125,000 pesos of capital or not more "than 50
permanent workers.
Compensation for sickness, accident, and death.—Private employers
are required to provide compensation for occupational illness and acci­
dents up to the equivalent of 2 years’ salary, plus medical, surgical,
and hospital assistance, and two-thirds of the salary or wage while
medical assistance is necessary, but not to exceed 6 months. Further­
more, employers, according to the nature and capitalization of their
business, are to furnish medical assistance for nonoccupational ill­
ness up to 180 days and two-thirds of the salary during the first 90
days, one-half during the remaining period. Essential funeral costs
up to the equivalent of the salary received for the last month prior to
the illness, must also be paid.
Tables of compensation scales for the various kinds or degrees of
injury sustained in industrial accidents and illnesses are to be formu­
lated by the Government and submitted to the 1945 session of the
Colombian Congress for approval. In the meantime, the previous
scales apply.
Old-age and invalidity pensions.—Payment of old-age pensions is
compulsory for every company whose capital exceeds 1 ,0 0 0 , 0 0 0 pesos.
Such pensions become payable after 20 years of service, provided the
worker is at least 50 years of age. Pensions are based upon the wage
scale and range from 30 to 200 pesos per month.
Benefits for Public Employees
Permanent employees or workers of the National Government (and
employees of Congress who have served during 2 0 legislative sessions)
are entitled to (1 ) compensation for nonoccupational sickness con­
tracted in performance of duties, up to 180 days of proved incapaci­
tation for work; (2 ) medical, pharmaceutical, surgical, and hospital
assistance not to exceed 6 months; and (3) in the event of death, an
amount equal to the dismissal pay to which they would have been
entitled, plus costs of burial.
Old-age pensions are payable to public employees under the same
terms as private employees. A pensioned employee may perform pub­
lic duties while receiving an old-age pension, provided the total of
salary and pension does not exceed 200 pesos monthly.
Government workers are also entitled to an invalidity pension equal
to the full amount of the last wage or salary earned, but not less than
50 nor more than 200 pesos per month.
The various political subdivisions of the comitry must, within 6
months following promulgation of the Labor Law, provide similar
benefits for their workers.
A Social Security Bank for Government employees, to be organized
before July 1 , 1945, was provided for. It would receive contributions
(a) from the Government, amounting to 3 percent of the “ Govern­
ment’s ordinary income,” (b) from the salaried employees, amounting
to 3 percent of their salaries plus one-third of their first month’s salary,
and (c) from wage workers, amounting to 2 percent of their wages.
Existing social-benefit institutions for public employees may elect
to become part of the bank.
2

A verage exchange rate of peso in M arch 1945=57.1 cents.,


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

LABOR LAW S AND D E C ISIO N S

297

Other Provisions
All sums (not in excess of 5,000 pesos) received as severance pay,
workmen's compensation, and death benefits under compulsory life
insurance are exempt from taxation.
À company with capital of over a million pesos must establish and
support primary schools for workers’ children, provided there are at
least 2 0 children of school age and the work place is situated more
than 2 kilometers 3 from the nearest town having a public school.
National or foreign companies in this capital class must also maintain
permanent specialized technical schools related to their field of busi­
ness, for workers and their children, at the rate of one school for every
500 workers or fraction thereof.
Infractions of any of the provisions of the present law, or any of the
legal norms in connection therewith for which a penalty is not already
provided, will be punishable with fines up to 1 , 0 0 0 pesos, imposed by
the judges and labor tribunals. For successive violations fines up to
the sum of 2 0 0 pesos each may be imposed, in addition to imprison­
ment up to 1 0 days.
s 1 kilometer«=0.621 mile.

65 6 2 4 3 — 45

•8


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Women in Industry

Postwar Employment Prospects for Practical Nurses
IT IS predicted by the Women’s Bureau of the U. S. Department of
Labor that there will be a vigorous postwar demand for trained prac­
tical nurses and trained licensed attendants who have met certain
standards .1 The increasing age of the population, the number of
veterans who will require treatment, the trend toward hospitalization
for mental, nervous, and chronic illnesses, and the present tendency
of hospitals to discharge patients at an earlier point in their convales­
cence are expected to be among the factors contributing to a high
level of employment among nurses and attendants. Also, these
workers can perform a variety of routine duties, and thus release pro­
fessionally trained nurses for work requiring more technical knowledge.
Wherever employed, practical nurses or attendants perform housekeeping and
errand functions in addition to assisting with feeding, bathing, dressing, toileting,
and certain treatments. In hospitals and other institutions they work under the
supervision of a graduate nurse or a physician; in homes they work alone but
frequently under the general direction of a physician. They may work in general
or in mental hospitals, or in institutions for tuberculous, orthopedic, convalescent,
chronic, or aged patients. Or they may be employed in a private home, doctor’s
office, public health agency, or an industrial establishment.
The wartime shortage of physicians and professional nurses has increased the
demand for practical nurses in hospitals and other institutions, and in public
health services, while the demand in private homes has “ skyrocketed.”

The present trend is toward more training for practical nurses. It
has been suggested that such nurses should be trained at least a year
and a half under hospital discipline.

Recently, practical nurses in several States have organized their own groups to
improve standards, while organizations such as the National Nursing Council for
War Service and the American Nurses’ Association have worked to stimulate
recruiting programs for approved schools and to promote State licensing of person­
nel. The Vocational Division of the United States Office of Education has called
the attention of State directors of vocational education to the need for practicalnurse training and to the fact that Federal funds allotted to the States for trade
and industrial education can be used for such programs.
During the war emergency both the Army and the Navy have trained enlisted
men and women for service in hospitals, while the United States Civil Service
Commission has recruited “ nursing assistants” for work in veterans’ hospitals.
Civil Service positions as hospital attendants are now open only to veterans.
Volunteer nurses’ aides, most of whom the Bureau expects will stop such work
after the war, are given much of the credit for saving the situation in civilian
hospitals.
Women with special employment problems may find practical nursing a likely
field for their services. Maturity and marriage are revealed to be more of an
1 U . S. W om en’s Bureau. Bulletin 203, N o. 5, T h e Outlook for W om en in Occupations in the M edical
Services— Practical Nurses and H ospital A ttendants, W ashington, 1945 (Other reports in the series deal
w ith the outlook for women as occupational therapists, physical therapists, medical laboratory technicians,
m edical record librarians, and professional nurses); Press release, M a y 28,1945.

298

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

W OMEN IN

299

IN D U S TR Y

asset than a handicap. Negro women, too, find job opportunities in this work.
Negroes made up 14 percent of the practical nurses or midwives reported in the
1940 Census. Most of them were employed in institutions in the North and by
white families in the South, but as the economic level of the Negro rises more will
be employed in the homes of their own race.
In 1940 practical nurses and attendants were second only to professional
nurses in terms of the numbers employed in the medical services. Slightly more
than half were attendants in hospitals or other institutions, while the others, as
practical nurses and midwives, cared for patients in their homes. Two-thirds of
them were women.

w w #«

Wages and Hours of Women in Retail Trade in
New York, 1944
VARIOUS investigations have shown retail trade in New York to be
a low-wage industry. It has been estimated that there are about
177,000 retail stores in the State, 54 percent of which were estimated
as having 430,000 workers, including 275,000 women and minors
(boys under 2 1 years of age), according to a summary of the report
made by the State Industrial Commissioner to the Retail Trade
Minimum Wage Board, in June 1945.
The trade is largely one of small establishments. Of those employ­
ing women and male minors, 81 percent have fewer than 1 0 workers.
The number of stores visited in the pay-roll survey of 1943 and in the
reinvestigation in 1944, and the number of employees for whom these
data were obtained, are given in table 1 .
T able 1.—Retail Stores Visited and Employees Covered in New York Pay-Roll Surveys,

1943 and 1944
1944
T y p e of store
Stores

A ll ty p e s_________

________

F ood ____ ________________________
D epartm ent____ -- .......... ......... ..........
V a rie ty _____________________ ____
A pp arel____ . _______
__________
A ll other______ ____ _ ___________

W omen
and male
minor em­
ployees

1943

M en

Stores

W omen
and male
minor em­
ployee»

1,005

7,844

4,950

6,157

35,381

198
20
48
359
380

820
1,818
1,278
2,343
1,585

496
1,570
141
992
1, 751

1,536
75
189
1,703
2,654

4,377
6,640
5,685
10,863
7,816

Images and Hours of Women Workers

Earnings of the workers varied with the occupation, the type of store,
and the wage policy of the employer. In 1943 and 1944 the range of
hourly wages for men, women, and male minors was from less than
2 0 cents to more than $ 1 .
Although hourly earnings rose from April
1943 to March 1944, many women workers were still being paid very
low wages in 1944 (table 2).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

300

M ONTHLY

LABOR R EV IEW — AUGUST

194 5

T able 2. —Distribution of Women in Different Types of Retail Stores in New York, by

Hourly Earnings, 1944
T y p e of store
H ourly earnings

A ll
stores
Pood

D epart­
ment

V ariety

Apparel

Percent of women earning—
U nder 30 cents ------ --------------U nder 40 cents _
_ ------ - -U nder 50 cents . . -------- ------U nder 60 cents ___
- ------- -----U nder 80 cents
.................
80 cents and over . -----------------

1.5
19.5
42.3
68.3
90.1
9.9

0.9
12.1
42.4
73.4
95.0
5.0

0.4
17.5
45.8
76.5
92.0
8.0

5.9
55.7
82.3
91.9
98.4
1.6

0.4
7.2
24.3
54.7
86. 0
14.0

M edian hourly earnings (in cents)-------.

52.4

51.8

51.0

39.2

58.2

The majority of the women were employed 40 hours or more per
week in 1943 and 1944. However, in 1944 some increase in parttime work was reported, also some reduction in the full-time work­
week.
The percentage distribution of women working specified hours per
w'eek is given below:
Percent
of women

Under 24 hours________________________________
24 and under 40 hours______________ i_.'________
40 hours______________________________________
Over 40 and under 44 hours_____________________
44 and under 48 hours__________________________
48 hours______________________________________
Over 48 hours____________________________

20.
16.
11.
11.
22.
16.
1.

7
5
5
1
3
6
3

According to the report under review, the earnings of most women
employed in retail trade do not meet the cost of adequate mainte­
nance and health protection in New York State. This was esti­
mated for 1944, for the average woman living as a member of a
, family, at $1,643.53 or $31.61 a week. Four out of five women with
a workweek of 40 hours or over earned less than this amount.
Many women earned less than the typical New York City relief
budget fixed by relief agencies for that locality.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Education and Training

Wartime Developments in Workers’ Education
Summary
WORKERS’ education under trade-union auspices has in many
cases not only gained momentum but broadened its objectives since
the beginning of the war.
Union membership rose from 10% millions in 1941 to an estimated
peak of 13% millions in 1944/ bringing new problems of assimilation
and education of many new workers, on the one hand, and of providing
opportunities for improved training for union leadership, on the other.
Organized labor has endeavored to meet this challenge in various
ways. Among these have been the creation of new educational and
research departments or the expansion of activity of existing agencies,
the holding of labor institutes and educational conferences in increas­
ing numbers, special training courses for union officers and leaders,
establishment of numerous new labor schools, and the holding o,
classes in a widening variety of subjects.
The workers’ education movement has adopted the most modern
educational devices—films and other visual aids, radio broadcasts,
project methods, pamphlets and leaflets with striking formats, posters,
and comic strips—and has continued to utilize art, music, dramatics,
and other cultural mediums.
The growing degree of university-labor collaboration, which is a
significant feature of the workers’ education movement, seems to be
a recognition not only by the workers themselves, but by high-ranking
educators, that the maintenance of democracy depends to a great
extent upon proper industrial relations.
The present article gives some of the developments in the workers,
education field, based upon data supplied to the Bureau of Labor
Statistics by workers’ education authorities and the unions themselves
and as revealed by examination of the proceedings of conventions,
current official organs, and other literature. The survey was far from
exhaustive. Nevertheless, the facts here presented do give some indi­
cation of the present scope and force of a dynamic movement.
American Federation of Labor
WORKERS EDUCATION BUREAU

The Workers Education Bureau of America, with headquarters in
New York City, is officially recognized as the educational agency of
the American Federation of Labor. It has pioneered in the field of
labor education since 1921. Some of the unions of the A. F. of L. are
i T h e Bureau of Labor Statistics issues no official figures on union m em bership. According to the various
union reports and other literature, th e Bureau estimates th at in 1944 approxim ately 13A
% m illion workers
belonged to international and national labor unions.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

301

302

M O N T H L Y LABOR R EVIEW — AUGUST

19 45

affiliated with the Bureau and support its activities by financial con­
tributions; in addition, the Federation grants it an annual subsidy.
In its annual report submitted to the A. F. of L. convention in 1944,
the Bureau pointed out that it was now entirely dependent on the
trade-union movement for support, since grants from educational
foundations had ceased; it stressed the importance of widening its
base of support so that its educational services might be extended to
all the unions actively affiliated with the A. F. of L.
The activities of the Bureau tend to fall into two groups—those
directed toward public education, and those primarily for the benefit
of officials and others in the labor movement.
In the broad field of adult education, it was pointed out at the 1944
convention of the American Federation of Labor, labor’s program
should be related to the whole field of adult education. The 1943
convention had approved a resolution that the Federation use its
influence toward the establishment of trade-union courses in high
schools and in extension work; the 1944 convention directed the
Federation’s permanent committee on education and the Workers
Education Bureau to cooperate in carrying out a “proposed expansion
of adult education.” At the same meeting it was emphasized that
labor’s educational work should relate to this larger movement and
should also take into consideration “the form and function of the
resident labor college or labor institute in the future; their relation to
international centers of training, their relation to rural educational
centers, and above all their relation to a continuous program of ‘public
information’ in a rapidly changing social order.”
In its activities directed toward the labor movement itself, the
Workers Education Bureau has continued during the war to promote
labor institutes in various parts of the country. These have usually
been sponsored by State federations of labor, in conjunction with
State universities or other educational institutions. The Bureau’s
success in this field was commended by the 1944 A. F. of L. conven­
tion.
In some cases the institutes have been held over a period of years.
Thus among those held in 1944, Kansas had its second, Colorado its
third, Indiana and Massachusetts their fifth' and New Jersey its
fourteenth such meeting. Montana held its first labor institute in
that year. Postwar labor problems were the main theme of these
meetings, at which attendance ranged from 150 to 250 persons.
In 1945, institutes were held in San Diego, Calif., Minnesota (the
third such meeting), Colorado (the fourth), and New Jersey (the
fifteenth). The San Diego meeting, sponsored by both A. F. of L.
and C. I. O. unions and an educational organization, considered as its
subjects the labor movement, past, present, and future; its oppor­
tunities and responsibilities; operation of collective bargaining; and
postwar problems. The Minnesota institute, sponsored by the State
university and labor organizations, dealt mainly with union prob­
lems incidental to the readjustment of veterans and war workers.
Winning the war and building the peace was the theme of the New
Jersey institute, sponsored by Rutgers University and the State
federation of labor.
The Workers Education Bureau in 1944 also took part in various
other conferences: Conference of the Massachusetts Division of Edu­
cation, University Extension Service; University of North Carolina

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATIO N A N D T R A IN IN G

303

Institute of Wartime Economy; University of New Hampshire Insti­
tute on Postwar Vocational and Adult Education; and Labor’s League
for Human Rights (in connection with the United Nations Relief and
Rehabilitation Administration and the American Labor Conference on
International Affairs).
Among the continuing activities of the W. E. B. is that of answering
the calls of city-central bodies and local unions for assistance with
their educational plans and for counsel in regard to forums, study
courses, public-relations programs, and related matters. At the 1944
A. F. of L. convention the Bureau announced its plans for a program
“ to assist State federations and city-central-body officials, together
with local business agents and international representatives, in pre­
paring for hearings before the numerous Government agencies—both
State and Federal—and to cooperate with them in meeting the ava­
lanche of new obligations and responsibilities which have recently
descended upon them.” One of the continuing and immediate prob­
lems, as regards rank and file unionists, was declared to be that of
impressing union members with the importance of attendance at and
participation in union meetings and programs.
In a move toward closer cooperation between public libraries and
labor groups, the Bureau met representatives of the American Li­
brary Association in 1944. Special exhibits of books of interest to
labor were given by the New Jersey Public Library Commission at the
Rutgers Labor Institute in 1944. Later the Chicago and Los Angeles
public libraries prepared similar exhibits during the week of Labor
Day. The Boston Public Library is issuing a bimonthly bulletin—
the Union Librarian.
The Bureau itself issues a monthly news letter, among the features
of which are a list of pamphlets and books of labor interest. Its own
publications include suggestions for a labor library, a manual for shop
stewards, and instructions on the carrying on of union meetings. It
announced, at the 1944 A. F. of L. convention, plans for electrical
transcriptions, available to labor groups, for education and radio
work. It also has equipment for projecting sound film strips, used in
visual education.
In the international field the Bureau entered into an arrangement
with the Workers’ Educational Association of Great Britain, at the
time of the visit of the latter’s representatives to the United States
in 1943, for a program of exchange lectures. The A. F. of L. executive
council stated in 1944 that “ this practical program in international
relations is reported to have done much to promote good will and
friendship between England and the United States.”
With a view to initiating in a smaller area the type of work carried
on in the national field, a workers’ education bureau was started in
Madison, Wis., in 1944. This step was taken as a result of the efforts
of the president of the American Federation of State, County, and
Municipal Employees. Similar bureaus are reported as planned in
other communities.
A. F. OF L. PRESS AND RADIO

Among the important means of carrying educational and informa­
tive material to unionists are the periodicals of labor organizations.
The American Federation of Labor has on its mailing list 325 such

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

304

M ONTHLY

LABOR R E V IE W — AUGUST

1945

organs. The Federation itself publishes the American Federationist
(monthly), Labor’s Monthly Survey, Weekly News Service, and
Noticiario Obrero Norteamericano (semimonthly).
On January 1, 1945, the Federation started a series of weekly
broadcasts in the form of forums on various topics, for the information
of both unionists and the public generally. The subjects covered,
up to April 1, were as follows: America united, Unemployment com­
pensation, Next 4 years, Nation’s health, Paying for the war, Whitecollar workers, Lifting Government controls, Threat of monopoly,
Housing, Wage policy, More T. V. A’s, and Tolerance. A new series
of weeldy news broadcasts was started in July, to continue throughout
the remainder of the year, under the title American Federationist, in
the course of which matters vital to labor are to be presented.
IN T E R N A T IO N A L L A D IE S ’ G A R M E N T W O R K E R S ’ U N IO N

The educational record of the International Ladies’ Garment
Workers’ Union is long and impressive and has served as a pattern for
many other labor organizations. The report of its educational de­
partment for 1941-42 pointed out that during the union’s quarter
century of existence the educational program had been expanded to
“meet the practical needs of the union and to provide learning for
living and a balanced program of fun and ideas.”
Since the beginning of the war a shift of emphasis has occurred in
the educational activities, with greater emphasis on wartime prob­
lems. The 1944 report of the educational department showed (1 ) an
increased emphasis upon training for union service and the preparing
of new members to assume their rights and responsibilities as trade
unionists, and (2) increased assistance for trade-union officers and
executive board members, to help them meet “the many complicated
problems which tax their attention and energy.” The educational
directors did more counseling than formerly, giving information to
individual members on social security and advice on rent and prices.
These activities have had to be carried on with a staff reduced by
losses to the armed forces.2
The educational department of the I. L. G. W. U. spent over
$392,000 during the 4 years ending on March 31, 1944; in addition,
various affiliates were reported as having spent over $515,000 for
educational work during that time.
Direct Educational Activities

One of the main activities of the department has been the promo­
tion of study classes, institutes, and group action in other lines (recre­
ation, music, art) having an educational value. The statement (p. 305),
from data contained in the report of the department for 1942-44,
shows the number of institutes and the attendance thereat, as well as
the scholarships provided by the union at labor schools.
s Before the w ar the union had 25 full-time directors and local education committees in addition to the
central office staff.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

305

EDUCA TIO N AND T R A IN IN G
Number of Students at
institutes institutes

19391940194119421943-

40________________________________
41________________________________
42________________________________
43________________________________
44________________________________

4
4
5
3
3

Scholarships
at labor
schools

205
230
264
185
220

3
5
4
8
6

One of the most successful of the institutes has been the annual
Wisconsin Summer School for workers, at which, in the peak year of
1943, there were in attendance 92 students from 35 States. One of the
features of these institutes consists of the courses in time and motion
study conducted by two staff members of the I. L. G. W. 1rs depart­
ment of management engineering. The duties of this department,
which was started in 1941, are (1) to assist in improving manufactur­
ing techniques and operating methods of all branches of the ladies’
garment industry, (2 ) to serve as a central clearing agency for informa­
tion on the level of “fair piece rates” and on production systems and
manufacturing technique under which these rates are paid, and (3)
to assist in training shop members and committees in distinguishing
bad from good time-study practice. The management engineering
department of the union also has held training sessions of its own,
especially on individual plant problems.
The number of activities of each type, carried on by I. L. G. W. U.
during the 5-year period, is shown in the accompanying table.
The figures show a natural decrease as wartime activities engaged
more and more of the energies of the people who would normally
have participated.
Summary of Classes and Activities, Educational Department of I. L. G. W. U.,
1939-40 to 1943-44 1
Classes and activities in—
T y p e of activity
1939-40

1940-41

1941-42

1942-43

1943-44

--

703

704

968

705

489

S tu d y classes__________________________
M u sic----------- ------------------------- -------------D ra m a tics.___ __________________ ____
A th letics_____________________________
G ym nasium ______ ___ _ _ ------------------- .
D an cin g_____________________ ________

261
120
80
50
142
50

290
103
42
41
172
56

494
102
30
116
168
58

418
56
19
126
52
34

265
45
10
107
39
23

17, 000
76

16,800
79

19,887
87

17, 235
82

11,878
72

A ll activities________________________

In d ivid ual participants------------------------------Local and joint boards participating________

i Report of Educational Departm ent, I. L . G. W . U ., June 1, 1942, to M a y 31, 1944 (N ew Y o rk [1944]),
p. 31.

The foregoing table does not cover “ radio broadcasting, theater
parties, movie shows, exhibits, trips to points of interest carried on in
New York City and other cities, and lectures and talks at unionmembership meetings. Local 91, for example, ran a popular forum
with well-known speakers, and Local 6 6 has used speakers and movies
at its mass membership meetings.”


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

306

MONTHLY LABOR REVIEW— AUGUST 1945

The subjects covered in the study classes conducted by the
I. L. G. W. U. in 1942-43 and 1943-44 are indicated in the following
tabulation.
Number of classes
1948-44
1942-43

All types of study classes__________________________ 265

418

New members'class____________________________
69
32
First aid______________________________________
Health_________________________________
22
Labor problems and trade-union methods and his­
tory------------------------------------------------------------29
Parliamentary law and public speaking. _•________
20
Current events____________________________
19
English_______________________________
14
Citizenship and problems of democracy__________
7
Arts and crafts_________________________________
li
Miscellaneous__________________________________ 1 42

57
130
76
25
22
27
17

13
12
39

1 Includes language classes (6), knittin g and sewing (6), art discussion (3), psychology (3), time and motion
stu d y (2), and correspondence clubs (2); there were also single classes in race problems and domestic arts.

Education for union officers.—Candidates for union office who have
not previously served as full-time union officers have been required,
since 1940, to complete an officers’ qualification course before becom­
ing eligible for election to any paid office in the union. In 1943-44
the course in New York City was attended by 50 members. The sub­
jects covered trade-union techniques (12-15 hours), structure and
operation of the I. L. G. W. U. ( 6 hours), history of the union ( 6
hours), economics of the garment industry ( 6 hours), and parliamen­
tary law (3 hours).
A new departure was made in the winter of 1943-44 with the in­
auguration of an officers’ institute in New York City. This was so
successful that the continuance of this type of training received the
endorsement of the president of the union. The speakers and sub­
jects listed on the program of the second officers’ institute held in New
York City, during January-March 1945, were as follows:
Prof. Selig Perlman— Will the 1944 political situation occur again?
Prof. Selig Perlman— Can government dominate industrial relationships?
Senator Joseph H. Ball— Trade-unions and freedom.
Henry J. Kaiser— Postwar job prospects.
Elmo Roper— Labor and public opinion.
Senator Robert F. Wagner—Labor’s needs in social security.
Dr. Michael A. Davis— Planning for health.
W. H. Davis—The future of the War Labor Board.
Eric A. Johnston— An industrialist looks at trade-unions.
George Meany—A trade-union leader looks at employers.
Isador Lubin—Labor and statistics.
Other Activities of Educational Value

An expanding educational program in cities of the Southwest was
announced on December 1 , 1944. Open forums have been organized
throughout the southwest district. Among other conferences and
classes held under the auspices of the union in the fall of 1944 were a
series of educational meetings in Detroit and Manistee, Mich., an
institute at Decatur, 111., a course in current events for the members
of the executive board of local No. 182 in St. Louis, and a 6 -week
“ personality” course in Chattanooga. Health education had a prom­
inent place in the union’s summer classes in 1944. Psychological
courses were being included in some recent I. L. G. W. U. educational

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATION AND TRAINING

307

programs. It was reported that some 5,000 persons participated in
the lectures and forums held at Unity House (vacation home of the
union) in June and July 1944.
Other activities having educational value included a panel discus­
sion on art, by distinguished artists, in New York City; an exhibit (the
third of its kind) of art work of members of New York City Local
No. 22; and concerts and dramatic activities sponsored by the union’s
cultural division.
The union has published numerous pamphlets dealing with such
subjects as the trade-union movement, the I. L. G. W. U. and its
history, the garment industry, the starting of classes, parliamentary
law, hints for trade-union speakers, etc. Its semimonthly periodical,
Justice, which appears in German, Italian, and Spanish as well as
English, carries in each issue a section on the union’s educational
activities. In addition 38 of its locals have their own periodicals.
AMERICAN FEDERATION OF TEACHERS

At the annual convention of the American Federation of Teachers,
held in Chicago in October 1944, the following recommendations of the
adult-education committee of that organization were among those
approved:
1. That an A. F. T. vacation seminar be sponsored again next year, since the
experiment at Madison, Wis., proved highly successful. * * *
2. That the A. F. T. locals organize workers’ education committees which would
have the particular responsibility of developing professional contact with the
labor movement.
3. That workers’ education committees be set up in State federations and that
in some cases regional committees overlapping State committees be set up.
4. That the A. F. T. develop effective educational materials to be used in tradeunions.
5. That in developing the program of workers’ education the assistance of the
Workers Education Bureau be obtained.
6. That more locals try to hold week-end institutes in which the teachers’
locals and the labor movement could cooperate, with the assistance of the Work­
ers’ Education Bureau.

The teachers’ vacation seminar, above mentioned, was scheduled
to be held July 22 to August 4, 1945, under the direction of the Uni­
versity of Wisconsin School for Workers. Among the subjects on
the agenda were the following: The teacher in the community;
The labor movement in a changing world; Postwar problems; and
World organization.
The director of the Workers Education Bureau has presented a
plan to the American Federation of Teachers for greater cooperation
between its locals and the bureau in promoting workers’ education
in the curriculum of the senior high schools.
AMALGAMATED MEAT CUTTERS AND BUTCHER WORKMEN

Because labor representatives with no economic training “ will be
misfits and unworthy to represent the workers,” the Amalgamated
Meat Cutters and Butcher Workmen of North America decided to
require some academic training for union organizers and officers. It
recently announced that it would send its more than 200 organizers
to a 2-week course at the University of Wisconsin school for workers
during August. Tuition would be paid by the international union.
In addition, two of the international vice presidents were to attend
Harvard University’s full-year labor course, beginning in the fall.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

308

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5
OTHER A. F. OF L. AFFILIATES

International and national unions.—During the war numerous
other international and national unions affiliated with the American
Federation of Labor have been carrying on workers’ education through
their official organs. A list (furnished by the Workers Education
Bureau, April 9, 1945 3) of some of the other affiliates which have
conducted workers’ education in additional ways, is given below:
American Federation of- State, County, and Muncipal Employees.
Brotherhoold of Railway Clerks.
Brotherhood of Sleeping Car Porters.
Building Service Employees’ International Union.
Hotel and Restaurant Employees’ International Alliance.
International Association of Machinists.
International Brotherhood of Electrical Workers of America.
International Brotherhood of Paper Makers.
International Brotherhood of Pulp, Sulphite, and.Paper Mill Workers.
International Glove Workers’ Union of America.
Laundry Workers’ International Union.
United Automobile Workers of America—A. F. of L.
United Hatters, Cap and Millinery Workers International Union.
Upholsterers’ International Union.

Central bodies and locals.—The examples below are illustrative of
workers’ education activities sponsored by many locals affiliated with
the American Federation of Labor.
A tri-city conference of trade-unionists from Buffalo, Rochester,
and Syracuse met in Rochester on February 11, 1944. A representa­
tive of the New York State federation made the arrangements for the
gathering.
A series offeclasses on current labor problems was sponsored by the
Portsmouth, N. H., Metal Trades Council.
It was reported in M arch 1945, that the Los Angeles Central Labor
Council was sponsoring a postwar study group which holds dinner
meetings at which a guest speaks on some vital labor subjects. Among
the recent topics on the agenda have been the health insurance bill
before the State legislature, and ways and means of streamlining
our Federal and State legislatures.
Early in 1945 the Glove Workers’ Union, Local 83, of Marinette
and Menomonie, Wis., held a series of four educational meetings.
The local’s committee on education has begun to publish its own
periodical—the Union Gazette.
The Dubuque (Iowa) Trades and Labor Congress is reported as
sponsoring weekly classes in public speaking, which are free to any
member of a union affiliated with the central body.
Congress of Industrial Organizations
The educational work of the C. I. O. is carried on through the edu­
cational division of its Department of Research and Education.
The purpose of the division is “to assimilate new members of the
C. I. O., to make them union-minded and conscious of the broad
objectives of their union. The central idea in the philosophy of the
workers’ education program is the belief that the American worker
3 The Workers Education Bureau cooperates more closely with central labor bodies and local unions
(and with State federations of labor in the holding of institutes) than with the national and international
A. F. of L. unions, and was unable to supply a complete list.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATION AND TRAINING

309

is more than an employee. He is a member of a family, of a church,
of other organizations, and of a community. Consequently the
emphasis on workers’ education stresses social, economic, and political
orientation.” Educational methods used include the holding of
institutes and conferences, the preparation of speeches and articles,
the publication of labor literature, and visual aids.
At the 1944 convention of the Congress of Industrial Organizations
it was stated by President Murray that the C. I. O. educational activ­
ities had stimulated some 20 colleges and universities to indicate
their interest in adult education and to put men on their staffs to
work with the American labor movement. The convention later
adopted a resolution endorsing a national adult-education program
and urging the Congress of the United States to make an appropri­
ation for such a program in cooperation with the States.
Early in 1945 a conference of C. I. O. educational directors was
held at which the uses of various mediums of expression were dis­
cussed. The importance of films was stressed in this connection and
attention was called to their extensive use by the United Automobile
Workers. Other suggestions included the issuance of a series of
posters on general union subjects, the allocation by affiliates of funds
to the C. I. O. to be used in the preparation of specific printed ma­
terials, and the holding of quarterly national conferences of educa­
tional directors with a single topic for each meeting. The first such
regional conference was held early in May 1945, in Chicago.
Relations with religious leaders and churches have been fostered,
and in October 1944 a religious and labor conference was held in
Pittsburgh, attended by 225 delegates.
The weekly Labor for Victory Program, under the joint sponsorship
of the C. I. O. and the A. F. of L., was discontinued in June 1944. But
arrangements were made for weekly 1945 programs over three of the
four principal networks. Many special network programs were also
arranged and greater use of the radio by C. I. O. affiliates has been
encouraged. America United is the title of a new 13-week series
beginning on July 8, 1945.
C. I. O. EDUCATIONAL COURSES

A number of schools have been conducted in which the C. I. O. has
participated. In Mobile, Ala., the C. I. O. and the Vocational
Education Department of the public-school system recently co­
operated in an educational program the primary purpose of which
was the training of shop stewards and other union officials. Attend­
ance was open to any interested person. Among the subjects to be
covered were labor history, labor legislation, union agreements, and
grievance procedures.
A school, the second conducted under the sponsorship of the C. I. O.
southern regional directors, was scheduled to begin May 7, 1945, at
the Highlander Folk School, Monteagle, Tenn. It was expected that
the time spent in the 1-month courses, by the 45 enrolled students,
would approximate that spent in 2 years’ attendance at regular union
meetings.
An Outline for an Industrial Area-Wide Labor Education Program,
prepared for the C. I. O. department of research and education by a
member of the United Steel Workers, proposes courses on the follow
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

310

MONTHLY LABOR REVIEW— AUGUST 1945

ing subjects: Your job, your union, and your pay; Industrial eco­
nomics; The worker as a citizen; The worker as a consumer;
Collective bargaining as consumers; The joint-production committee;
Government and labor; History of American labor; Industrial
unionism; Organizing the unorganized; The farmer and the
worker; Labor in politics; Labor and the community; Labor and the
veterans; Building a greater union; Orientation courses for teachers;
Training course for union counselors; International labor movement;
and Mass education and entertainment. The outline points out that
“The labor movement has in the past few years begun to achieve
organizational maturity. If it is to grow and develop as a vital
force, it must necessarily strive to broaden the outlook of all wage
earners as well as encourage the potentially capable to train for
leadership, without which progress is impossible.”
C. I. O. PUBLICATIONS

Periodical publications include the C. I. O. News (weekly), Union
News Service (weekly), and Economic Outlook (monthly).
Numerous pamphlets have been issued, dealing with various
economic problems affecting the wage earner (cost of living, full
employment, housing, etc.), company unions, the steel industry, war­
time union activities, legislation, and the labor movement and religion.
Among the publications planned for 1945 are a servicemen’s manual,
a Bible cartoon strip, discussions of substandard wages, the farm and
labor, and workers’ education, an educational flyer, posters relating
to price control, a C. I. O. bibliography, and a labor history. At the
March educational directors’ conference it was agreed that, in future,
the na tional office would act as a clearing house for publications; and
an exchange of publications between the national office and affiliates
was arranged for. Emphasis was laid upon the desirability of making
union papers attractive and readable and of the inclusion of educa­
tional material.
AMALGAMATED CLOTHING WORKERS OF AMERICA

The educational and recreational program of the Amalgamated
Clothing Workers of America has from its beginning been notable.
Through the years its cultural activities have reflected the member­
ship’s demands and changing times. While focusing its interest on
war efforts, this union has manifested a renewed concern with the
implications of democracy, the responsibilities of labor in national
and international affairs, the causes of war, and the requirements of a
program for enduring peace.
The report of the union’s committee on education and recreation to
the 1944 convention referred favorably to articles in The Advance
(official organ of the union), material in the Reader’s Packet issued
by the union, the correspondence courses carried on by it, the regional
conferences, and other activities of the publications and culturalactivities department.
Despite other wartime responsibilities, local officers have expended
much time and energy in promoting forums and furnishing leadership.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATION AND TRAINING

311

As was brought out at the convention, war demands have restricted
but not altogether diverted the educational and cultural program of
this organization.
Fully recognizing the immediacy of the demands of other activities on the time
of the union’s officers and members and with full appreciation of the high quality
of the educational work which has been carried out during the four years since the
last convention, your committee nonetheless recommends that the convention
direct the incoming general executive board to give careful consideration to the
possibilities of expanding the services afforded to constituent joint boards and
locals in carrying out an adequate educational program. It specifically recom­
mends exploration of the question of the desirability of requiring, as a matter of
policy, the establishment of educational committees in each local, with reports
from these committees to be made to a genera] educational department, and
material for the use of local committees to be supplied by such general department.
It further recommends that the general officers assure that, in whatever form the
union’s educational program is conducted, adequate attention be devoted to
promoting understanding of all phases of the fundamentals of democracy, in­
cluding the equality of all citizens, regardless of race, creed, or color.
INDUSTRIAL UNION OF MARINE AND SHIPBUILDING WORKERS

The first union to follow the example of the International Ladies’
Garment Workers’ Union in the matter of establishing officers’
qualification courses for candidates was the Industrial Union of
Marine and Shipbuilding Workers. The 1944 convention of this
organization (at Atlantic City) adopted a resolution expressing the
conviction that “the strength and progress of the trade-union move­
ment are dependent upon the degree to which workers understand its
policies, aims, and aspirations.” The general executive board was
directed to broaden the union’s educational program for the member­
ship in general and to provide a suitable study course as a qualifica­
tion, after January 1 , 1945, for election to any office. Authorization
was also given for establishing training courses for shop stewards and
committee members.
The activities and accomplishments of the union’s research de­
partment were reported on in detail, and the delegates gave their
approval to enlargement of its staff to meet the union’s expanding
research needs. The Shipyard Workers’ Union job-relations training
course for shop stewards and officers was reported as making wide­
spread progress, notably in New England, the Port of New York,
Baltimore, and the Philadelphia-Camden area.
NATIONAL MARITIME UNION OF AMERICA

The National Maritime Union provides a 1 -week course on tradeunionism, especially for new members. Each union member who
attends the classes is paid $40 per week by the union. Among the
students are persons of various grades of education. The union hopes
that sometime the teachers can be recruited from its own ranks.
The union announced the formation, early in 1945, of a class in St.
Louis for river boatmen, for the study of the boat delegate’s job, what
the boatmen’s contract means, how to run meetings, the river history
of the National Maritime Union, and education and political action
on boats.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

312

MONTHLY LABOR REVIEW— AUGUST 19 45

UNITED AUTOMOBILE, AIRCRAFT, AND AGRICULTURAL IMPLEMENT WORKERS

The United Automobile Workers (U. A. W.), with oyer a million
members, has been outstanding in its educational work, using a variety
of approaches.
The union’s second annual educational conference, held in January
1945, was attended by 400 delegates from various parts of the United
States. Among the subjects on the agenda were wages, standards of
living, health and safety, discrimination, shop papers, leadership
training, legislative objectives, political action, movie and slide films,
consumers’ problems, cooperatives, veterans’ problems, reconversion,
international affairs, and postwar planning.
Many regional week-end institutes have also been held in coopera­
tion with educational institutions, such as State universities, which
supply instructors and classroom facilities. About 10 different courses
are made available. The local union makes up to the student his
wage loss during the time he is in attendance at these classes. City­
wide institutes, dealing with specific problems, have been held during
the summer, the sessions being so arranged as to permit participation
by workers on different shifts. Occasionally also an institute is held
in an industrial establishment.
The union has been a pioneer in the use of radio in labor education,
and has been of assistance to other unions. A radio expert works in
consultation with the union’s educational department.
Distribution of printed material is carried on, on a large scale. The
educational director reported at the 1945 convention that in the
previous year his department had distributed over 3 million pamphlets
and had published a number of others written by its own staff. Discus­
sion outlines for local education committees and a revision of the
handbook for such committees were also to be distributed. In
addition to the union’s semimonthly publication, United Automobile
Worker, which carries a regular section on education, the education
department has its own monthly magazine. It. has been running a
contest, with awards made for the best news items, feature articles,
editorials, poems, pictures, and cartoons produced by the U. A. W.
members.
OTHER C. I. O. AFFILIATES

Marine Cooks’ and Stewards’ Association.—A report of the Marine
Cooks’ and Stewards’ Association, referred to in the C. I. O. News of
February 5, 1945, mentions a 6 -week course in baking which was to be
conducted by the San Francisco Marine Cooks’ and Bakers’ School.
Teachers Union oj New York.—Approximately 2,000 teachers,
supervisors, parents, and public officials were expected at the Ninth
Educational Conference of the Teachers Union of New York, C. I. O.,
scheduled to be held in New York City on April 2 1 , 1945. The
principal subject on the agenda was education for a world family of
democratic nations.
Textile Workers Union.—Much of the educational work of the
Textile Workers Union of America has been directed to the South.
Thus, it has held classes for international representatives there. It
has also been attempting to develop literature for new members, and
community programs, especially for that region. It is stated that, to
make the plan a success, a full-time trained community worker is
required.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATION AND TRAINING

313

The most signal accomplishment of the Textile Workers Union is
steward training.
Transport Workers Union of America.—This union was reported as
conducting a leadership training school in Philadelphia, in March 1945.
United Electrical, Radio, and Machine Workers.— In cooperation
with Minnesota Labor (official weekly of the Minnesota C. I. O.
Council) the Electrical, Radio, and Machine Workers of America are
sponsoring a course in labor journalism as part of an educational
program. Classes in trade-union subjects and practices and a series
of community forums are also included in this program.
United Packinghouse Workers of America.—Classes for shop stewards
are included in the educational work of District 1 of the C. I. O. Packing­
house Workers of Chicago.
United Transport Service Employees—A. committee on cooperative
activities has been formed to study programs for joint educational
action among the Transport Service Employees of America in the
Chicago district. Credit-union plans were to be studied and neighbor­
hood study groups sponsored. The educational and publicity director
serves as chairman of the committee.
Other organizations.—Among other affiliates of the C. I. O. that have
workers’ education and training programs, and publish books, brief
reports, and outlines for study, are the following:
American Communications Association.
American Federation of Hosiery Workers.
American Newspaper Guild.
Federation of Architects, Engineers, Chemists, and Technicians.
Federation of Glass, Ceramic, and Silica Sand Workers of America.
International Fur and Leather Workers Union.
International Longshoremen’s and Warehousemen’s Union.
International Union of Mine, Mill, and Smelter Workers of America.
International Woodworkers of America.
Oil Workers International Union.
State, County, and Municipal Workers of America.
United Cannery, Agricultural, Packing, and Allied Workers of America.
United Farm Equipment and Metal Workers of America.
United Federal Workers of America.
United Furniture Workers of America.
United Office and Professional Workers of America.
United Retail, Wholesale, and Department Store Employees of America.
United Rubber Workers of America.
United Steelworkers of America.

Michigan C. I. 0. Council— It was reported in March, 1945, at the
conference of the educational directors of the C.I.O., that the Michigan
C. I. O. Council’s 1 -week institutes are held in a State Conservation
Department camp, which is rented for a minimum figure. A con­
siderable amount of leadership training results from giving 7 days to
one subject. Funds to send members to the school are frequently
raised by the local union’s education committee through dances,
raffles, and other activities.
Included in the subjects taught are collective bargaining, educa­
tional leadership, etc. Each local union has been requested to place
a billboard for posters at the front of its headquarters. A committee
of Detroit’s outstanding advertising men was giving time without pay
to the making of posters.
6 5 6 2 4 3 — 45 -

9


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

314

MONTHLY LABOR REVIEW— AUGUST 1945

Industrial union councils.—The educational work of the 232 local
and 36 State industrial union councils was described as follows in the
departmental report of these councils to the 1944 C. I. O. convention:
As the responsibilities of labor organizations in government increased with the
war, and the need became sharper for qualified representatives in government
agencies, and as many council officers were inducted into the armed services,
our State and local organizations felt the need for personnel training facilities.
Accordingly, they established contact with State universities in a number of areas
and worked out systems and programs of training and education. The curricula
varied all the way from the mechanics of operating an office to the study of labor
law and labor history. The machinery set up for such training purposes differed
widely from one State to another. This machinery is under examination and
analysis by the Department of Councils of Education and Research with a view
to working out recommendations suitable for general application.

American Labor Education Service
American Labor Education Service, Inc., has been functioning under
its present title since 1940. It was previously known as the Affiliated
Schools for Workers, which included five of the seven resident schools
for workers (the Highlander Folk School, the Hudson Shore Labor
School, the School for Workers at the University of Wisconsin, the
Southern Summer School, and the Summer School for Office Workers).
Other labor groups desired assistance from the organization and it
developed into a service agency with various educational resources.
The Service is described by its director, in a letter of April 1 2 , 1945,
to the Bureau of Labor Statistics, as “a national labor organization
that offers advisory service to trade-unions and community organiza­
tions interested in the field of workers’ education.”
Over a long period of years, through experimentation and case testing, it has
studied techniques of carrying on programs with adult workers, and has made its
findings available to other workers’ education groups. Labor Education Service
regards itself as an educational arm of the labor movement, not functioning in an
isolated way but participating broadly in labor’s efforts to prepare itself for assum­
ing an ever-growing role in community life. Among its activities are advisory
services, including field work; publications; bibliography services; conferences;
and leadership-training institutes. New resources for workers’ education con­
tinually are being studied, and among those services which have grown rapidly in
recent years is that of strengthening understanding and establishing closer re­
lationship between the labor movement and various community groups. This
has resulted in the fact that many government and community organizations, as
well as trade-unions, turn to Labor Education Service for assistance in learning
how to adapt their programs to the needs of workers’ groups.

In the war years, labor has been faced with new duties in govern­
ment, in production planning, in the allocation of manpower, and in
community programs. As a consequence American Labor Education
Service is concerned with educational problems involved in these new
tasks as well as postwar employment and political activities. Such
questions as housing and child care constitute bases of study. The
problems of special groups recently affiliated with organized labor,
such as the white-collar workers, are also being given attention.
CONFERENCES AND SCHOOLS SPONSORED BY THE SERVICE

The fifth annual Midwest Workers Education conference was held
in October 1944, under the sponsorship of American Labor Education
Service. According to the directors’ report—
Delegates came from steel, electrical, rubber, clothing, textile, automobile,
transport-service, meat-cutting, bakery, paper, packinghouse, farm-equipment,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATION AND TRAINING

315

and metal industries, as well as from unions of teachers, bookbinders, novelty
workers, postal clerks, retail clerks, Federal workers, and State, county and muni­
cipal workers. * * * The delegates were labor officials, educational committee
members, educational directors, labor editors, and teachers of workers’ classes,
who were joined by government officials, community workers, and university
representatives interested in a workers’ education program.

In February 1945 a meeting of American Labor Education Service
and of A. F. of L. and C. I. O. agencies carrying on workers’ education
was held, to which were invited those in Government employment
interested in “servicing labor organizations.” The object of this
conference was to effect “more practical working relations between
representatives of these groups.” The meeting discussed the four
major needs of workers’ education: Use of mass-education techniques,
participation of workers in Government programs, communication to
Government agencies of labor’s reactions, and cooperation between
Government and labor in workers’ education. A permanent com­
mittee was created to continue the work of the conference.
The annual Washington’s Birthday meeting of the American Labor
Education Service was sponsored by its leadership training committee
on cooperation between labor education and university groups and
Local 189 of the American Federation of Teachers. Reports were
made of a survey of workers’ education under the auspices of universi­
ties and colleges, followed by discussions on curriculum, sponsorship,
control, source of leadership, and financing. Other subjects on the
agenda included Education and the community, The university and
labor education, The dynamics of workers’ education today, and How
to broaden workers’ education to meet current needs.
Conferences on vital problems of race and intercommunity relations
have been held and local field projects carried on, for the purpose of
developing educational plans involving a more extensive participation
in union and community activities by minority groups.
Every year American Labor Education Service conducts a resi­
dential summer school for white-collar workers. This program is
being supplemented by week-end institutes and winter study groups.
COOPERATION WITH OTHER EDUCATIONAL AGENCIES

Cooperative relations are maintained between American Labor
Education Service and other workers’ education schools and agencies
interested in trade-union leadership training. In addition to the
affiliated schools already mentioned, such relations were maintained
in 1944 with the Workers Education Bureau, the education and
research department of the C. I. O., the Inter-Union Institute, the
Workers’ Education Council of Louisville, Ky., the National Univer­
sity Extension Association, and certain community agencies _con­
ducting workers’ education (notably the Young Women’s Christian
Association).
In connection with a number of other workers’ education organiza­
tions, American Labor Education Service is collaborating with
university groups in a survey to ascertain the best services such groups
may render.
PUBLICATIONS

American Labor Education Service has been a pioneer in the prepara­
tion of material for workers’ education. Its present publication program
includes annotated bibliographies on important subjects and records


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

316

MONTHLY LABOR REVIEW— AUGUST 1945

of its special field projects, a pamphlet by the chairman of the com­
mittee on minority problems, and an annotated list of plays. During
1944, the Labor Education Guide was issued regularly, and the
Bulletin was published three times.
Workers' Education at Higher Educational Institutions
The joint sponsorship by universities and State federations of labor
of annual institutes and conferences, and the importance of this activity
have already been noted. As the new director of the Workers Edu­
cation Bureau declared, “at no time in the history of the trade-union
movement has it been more important for labor and education to work
together on their mutual problems.” In furtherance of the program
the director conferred with representatives of some universities on
continuing labor-education programs. Among these institutions
were the State Universities of Alabama, New Hampshire, North
Carolina, S.outh Carolina, Pennsylvania State College, Columbia
University, Washington University (St. Louis), and the City College
of New York.
In spite of the shortage of teachers, many colleges and universities
have been able to continue their courses for workers and have even
taken new steps in this direction. Some of these developments are
noted below.
California Labor School.—Ln 1944 an educational advisory com­
mittee was created by the California Labor School, San Francisco.
The membership of this new body includes leading California edu­
cators, the San Francisco State College, the San Francisco Junior
College, and the superintendent of schools of San Francisco.
Cornell University.—The New York State School of Industrial and
Labor Relations, the first State-supported and controlled school of its
kind in the United States, was scheduled to be permanently organized
at Cornell University during the summer of 1945. An appropriation
of $2 0 0 , 0 0 0 was made by the State legislature for the first year’s
expenses, effective July 1 , 1945. Three labor representatives were to
be elected to the board of trustees of Cornell University as a perma­
nent step in this organization, replacing a temporary board, to which
the president of the New York State Federation of Labor had been
appointed.
Tuition is to be free to residents of the State, and courses (and
research) are to be planned to promote cooperation between employers
and employees. Among the subjects to be taught are collective
bargaining, mediation, arbitration, workmen’s compensation, social
security, personnel management, union organization, economics, and
sociology.
Detroit University.—A 1 0 -week basic course on labor relations was
scheduled to begin April 1 0 , 1945, at the University of Detroit. The
Tuesday-night course was to be for members of labor unions only; the
Thursday-night course was to be open to the public. The course
for unions was to be devoted to collective bargaining, contract nego­
tiation and interpretation, and labor problems in American industry.
Duquesne University.—A labor school has been established at
Duquesne University, Pittsburgh. Special courses are available to
men and women interested in the fundamental principles of the labor
movement and its recent development. Classes were scheduled for
February 19 to May 31, 1945./

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EDUCATION AND TRAINING

317

Gonzaga University.—A new7- labor school, reported to be the first
of its type in the Northwest, has been launched at Gonzaga Uni­
versity," Spokane, Wash. This educational venture is the result of
the efforts of the C. I. O. Spokane County Council. Both C. I. O.
and A. F. of L. students were among the 35 registered.
Harvard University.—For several years, 8 -month fellowships have
been provided jointly by the trade-unions and Harvard University.
These fellowships are given to male union members with a good record
of service and potentiality for greater union activity.
Courses for ‘1943-44 were on the following subjects: Economic
analysis, Trade-union problems and policy, The supervisor and union
labor, and Personnel and management controls. Of 13 unionists who
were selected for fellowships, 1 0 were chosen and sent by sponsoring
unions, and the other 3 received their appointments from the uni­
versity with the approval of the unions.
Indiana University.—More than 1 0 , 0 0 0 questionnaires were dis­
tributed among labor unions in Indiana, by this university, for the
purpose of obtaining information upon which to plan a satisfactory
workers’ education program for the State.
John Carroll University.—This university, at Cleveland, opened a
free labor school for workingmen.
Marquette University.—The International Brotherhood of Electrical
Workers of America (A. F. of L.) has given an endowment to Mar­
quette University in order that it may provide intensive courses in
electronics for selected members of the union, 1 0 0 at a time. Other
members of the union will be trained in turn by these graduates.
Montana State University.—At the request of the unions at Missoula,
Montana State University, situated in that city, began in January
1945 a series of 1 1 weekly, 2 -hour evening classes in labor procedures.
Rhode Island State College.—A bill introduced into the Rhode Island
Legislature and endorsed by the Governor, would appropriate funds
for the salaries of a full-time director and personnel to conduct an
educational program in schools, community centers, and union halls
(when available), under the auspices of the Rhode Island State Col­
lege’s proposed department of workers’ education.
Santa Clara University.—It was announced early in 1944 that a
class in the principles of unionism and the techniques of collective
bargaining was being offered to union officials, for the first time, under
the direction of the university’s division of war training.
University of Chicago.—This university offers a seminar course for
labor leaders under the direction of the university and the Illinois
State Federation of Labor. The committee representing the federa­
tion has as its chairman the president of Chicago Local No. 1 of the
American Federation of Teachers.
University of Michigan.—The university has a new workers’ educa­
tion service which has recently started classes at its Detroit center.
In March 1945 this service was being extended from lower Michigan
to communities in the upper part of the State. Programs were in
course of development in Escanaba, Iron Mountain, Islipeming, and
Marquette.
The service, which constitutes a part of the experimental adulteducation program authorized by the State legislature, is adminis­
tered through the extension service of the university, with the aid of
an advisory committee of 6 persons ( 2 representatives of labor, 2 of
the public, and 2 of the university).

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

318

MONTHLY LABOR REVIEW— AUGUST 1945

University of Minnesota.—Announcement was made early in 1945,
by the University of Minnesota, that classes would be conducted in
trade-unionism, union administration, practical public speaking, and
parliamentary procedure, for trade-union members. A joint laboruniversity committee planned the classes, which have received the
endorsement of the St. Paul Trades and Labor Assembly, the Minne­
apolis Central Labor.Union, the Minnesota State Industrial Council,
and the Railroad Brotherhoods. The instructors include two from
the University of Minnesota, one from Edison High School, and the
legal and research director of the Minnesota Federation of Labor.
Lniversity of Wisconsin.—-The university was a pioneer in the field
of workers education. Workers’ summer schools at the university
date back to 1921, and have had far-reaching effects on the workers’
education movement.
Yale University.—This institution granted scholarships to tradeunion leaders to enable them to attend a 1943 graduate seminar. It
contemplates continuing this plan when the war ends.
Other institutions.—Among other universities and colleges recently
reported as conducting industrial-relations courses, special tradeunion courses, labor projects, or labor institutes or schools, are the
following: University of Connecticut, Holy Cross College (Wor­
cester, Mass.), New York University, San Diego State College, Rockhurst College (Kansas City), Temple University (Philadelphia), the
University of California, University of Scranton’s Hazleton Labor
College, University of Toledo, University of Virginia, Wayne Uni­
versity (Detroit), and Xavier University (Cincinnati).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I

Wage and Hour Statistics

Earnings and Wage Practices in Municipal Governments
of 15 Cities, 19441
Summary
AVERAGE hourly earnings of municipal employees in 74 occupations
in 15 municipal governments were obtained by the Bureau of Labor
Statistics for a single pay-roll period in 1944. On the basis of these
data estimates of annual earnings were made. The data revealed
considerable intercity variation in wages for identical occupational
groups as well as wide intracity differences in wages among groups
whose skills are comparable. The scheduled workweek varied some­
what less, both among cities and within any given city. An average
computed on the basis of data for all 15 cities showed that of 16 key
male occupations studied, senior civil engineers had the highest annual
salaries ($3,278) and janitors the lowest ($1,619). Secretaries showed
the highest salaries of 7 key female occupations ($2,007) and switch­
board operators the lowest ($1,510). The occupations included in
this survey did not include top professional and the higher-salaried
administrative personnel.
Oakland, Gary, and Portland (Oreg.) ranked highest with respect
to the general municipal wage level, while Atlanta, St. Louis, and a
southwestern city were the three lowest. The ranks of 7 cities with
respect to the wage levels of municipal employees and of employees
in private industry were observed to be substantially similar. It is
estimated that wages in the 15 cities increased approximately 10 to
15 percent between January 1941 and the date of the survey. This
resulted from upward revisions of wage scales and the payment of
cost-of-living bonuses.
Job-classification systems covering all or nearly all major groups of
municipal workers were in effect in 1 2 of the 15 cities. Five cities
had uniform pay plans that classify jobs by grades, with a uniform
salary range for all jobs within a grade. Plans providing a single
minimum rate for each job class, but with varying maximum rates,
were found in 6 other cities. Less formal wage plans were followed
in the remaining 4 cities. Although most municipal employees are
paid on a monthly or annual basis, substantial numbers, particularly
in the craft and laborer classifications, are paid hourly or daily rates.
All but 3 of the 15 cities had civil service systems covering all
departments. Tenure of office in most cities was provided after a
6 -month probationary period.
Large numbers of municipal workers
i Prepared in the Bureau’s Wage Analysis Branch by Carrie Glasser w ith the assistance of Marion R.
Callaham and Joseph H. Mayer. Mr. Mayer was also in charge of tabulations. The survey on which
this study was based was planned and directed by Margaret L. Plunkett.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

319

320

MONTHLY LABOR REVIEW— AUGUST 1945

were found to be members of unions but none of the municipal gov­
ernments had written contracts with unions.
Purpose and Scope of Survey
The primary purpose of this survey was to obtain information
regarding wages of municipal workers in selected occupational groups.
The need for comprehensive and reliable data in this field has long
been recognized by city governments, planning agencies, labor organ­
izations, and others interested in public administration. It was in
appreciation, of this need that the Bureau of Labor Statistics under­
took an experimental study in the summer of 1944. Information
regarding hours of work, merit systems, pension schemes and vacation
and sick-leave policies, was also collected in the course of this survey.2
Fifteen cities were covered in this survey; 5 of the 15 have popula­
tions between 100,000 and 250,000, 7 are in the 250,000 to 500,000
population group, and 3 have populations between 500,000 and
1 ,0 0 0 ,0 0 0 .
Municipal employment in these cities ranged from 1,400
to 14,600. Table 1 shows the cities studied, arranged by size groups,
the approximate total number of municipal employees in each city
at the time of the Bureau’s survey, and the percentage of the employ­
ment covered by this survey.
T able

1.— E s tim a te d M u n ic ip a l E m p lo y m e n t a n d P e r c e n t o f E m p lo y e e s C overed in 15
C itie s I n c lu d e d in B u r e a u ’s S u r v e y , S u m m e r o f 1 9 4 4

Size group and city

100,000-250,000 population:
Flint, M ich__ ____
Gary, In d ___________
Grand Rapids, M ich______
Hartford, Conn _________
Oklahoma City, Okla
250,000-500,000 population:
City X i___________
Atlanta, Ga_____ ____ . . .
Cincinnati, Ohio_________
1 A southwestern city.

E sti­
mated
total
munici­
pal em­
ploy­
ment,
summer
of 1944

Percent
of total
em­
ployees
studied

2,700
1,900
1,900
4, 300
1,400

41
19
34
25
54

4,600
4,100
8,600

25
43
33

Size group and city

250,000-500,000 population—Con.
Denver, Colo.-. _______
Oakland, Calif
Portland, Oreg_________
___
St. Paul, M in n ..
500,000-1,000,000 population:
Buffalo, N . Y __ . . . .
Pittsburgh, Pa
....
St. Louis, M o___________

E sti­
mated
total
Percent
munici­ of total
pal em­
em­
ploy­
ployees
ment,
studied
summer
of 1944

6, 200
4,400
3, 000
3, 300

50
22
50
15

10, 300
9, 200
14,600

38
41
40

B y request it is not identified by name in this study.

The selection of the 15 cities was guided by several considerations.
Because wages for the same occupation tend to vary among municipal
departments, cities with fairly diversified departmental organization
were desired in order to insure adequate coverage for the selected
occupational groups. This eliminated very small cities and accounts
for the concentration of the sample on cities of medium size.The very
largest cities in the country were omitted because of the experimental
nature of this survey. For each of the 15 cities selected, all regular
departments were included to the extent that they had the occupa­
tions selected for study. The major departmental divisions covered
were general government, public works, public-service enterprises,
3 Part of this additional information is summarized in this article.
forthcoming bulletin.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Further details w ill be provided in a

WAGE AND HOUR STATISTICS

321

parks and playgrounds, zoning and planning, sanitation, health, wel­
fare, protection, education, and libraries. It should be understood,
however, that certain functions were found in some city governments
but not in others. For example, Gary has no department of public
welfare but is serviced in this respect by the public welfare depart­
ment for Lake County. Likewise, Hartford and Oakland have no
municipal water departments of tlieir own but receive this service
from public bodies which have jurisdiction over several municipalities.
The present survey included only those selected groups of employees
in city departments which were administratively a part of the muni­
cipal structure .3
The cities surveyed were also chosen with regard for geographical
representation. Thus, of the 15 cities covered, there is at least one in
each of the major geographic regions of the United States. The
selection was greatly aided by conferences held with representatives
of Federal, municipal, and union organizations interested in the
salaries of municipal employees and related problems. The mayors
and other officials of the 15 cities cooperated by placing at the dis­
posal of the Bureau’s representatives the necessary pay-roll and other
official records. The information for most cities covers the pay-roll
period for June 1944.4
The proportion of municipal employees covered in this survey, as
shown in table 1, ranged from 15 percent to more than 50 percent for
individual cities. This wide variation in coverage is due to several
factors. First, the survey excluded certain large groups of municipal
employees such as teachers, firemen, and policemen, as well as top
professional and administrative personnel. While these groups are
numerically large in all cities, they account for a considerably greater
proportion of total municipal employment in some cities than in
others. Second, part-time 5 and temporary workers were also ex­
cluded and, as in the case of the first group, the proportionate import­
ance of these workers varied from city to city. Third, the occupa­
tions selected for study were those which were numerically important
in the majority of cities and/or were representative of the different
skills and wage levels. When an occupational group appeared to be
of numerical importance in only a small number of cities, the group
was excluded from the sample.6 This resulted in greater loss of cov­
ered employees in some cities than in others.
Because the sample upon which this survey is based is limited to a
small number of cities and to selected occupations which exclude the
highest-paid personnel, the data are not considered to be representa­
tive of wage and employment conditions of municipal employees
throughout the country. This experimental study does, however,
yield useful information for those cities and occupations covered and
should provide a helpful basis for planning broader studies in the
future.
3 An exception to this rule was made in the case of the education “department” of Portland, which is
administered independently of the Portland city government and is part of the Multnomah County School
4 Exceptions were as follows: Atlanta, January 1944; Gary, October 1944; Hartford, April 1944; Portland,
July 1944. As there were no general wage changes effective between these dates and June 1944, the pay-roll
periods are comparable for purposes of this study.
8 For purposes of this study a “part-time” worker was considered to be an employee who regularly worked
less than the full number of hours in the normal day or workweek.
,
. . .. .
.
e For example, ambulance drivers and seamstresses were numerically significant groups in Atlanta and,
similarly, cashiers in Denver. However, since the great majority of the cities covered did not show these
classifications, they were dropped from the sample.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

322

MONTHLY LABOR REVIEW— AUGUST 1945

Method of Analysis
The survey covered 74 occupational groups of municipal employees
but in no one municipal government were all of these occupations
found. The highest representation was 6 6 for Denver; the lowest
was 31 for Gary, the smallest of the cities surveyed. The job titles
used in this study are not necessarily the same as those appearing on
the pay rolls of the individual cities. The standard job descriptions
developed by the Bureau after examination of job classifications used
in several cities were taken as a basis for classifying the municipal
employees covered. For example, an employee designated as a junior
engineering clerk in some cities was classified as a “junior engineering
aide” if the functions and requirements of the job corresponded with
the standard job description used by the Bureau. Similarly, the desig­
nation “janitor” was used for many employees listed as cleaners or
building custodians. In some instances it was found necessary to use
broader occupational groupings than in others. For example, all
stenographers were classified into one group, but typists were sub­
divided into junior and senior grades. Clerks were divided into four
grades: (a) “General clerks” who perform simple routine tasks, (b)
“senior clerks” who have more difficult tasks requiring the application
of judgment based on established precedents, (c) “clerk supervisors”
who plan, assign and supervise the work of subordinate employees, and
(d) “principal clerks” who generally supervise larger groups and have
greater opportunity for exercising independent judgment. Despite
some discrepancies caused by differences in job descriptions in the 15
cities, it is believed that the employment of the standard job classifi­
cation as a basis for grouping yielded satisfactory results.
Two measures of wages were developed in this survey—average
hourly earnings and estimated average annual salaries, both based,
with few exceptions, on pay-roll records for June 1944. The wage
data include the base pay for the regular workweek, plus cost-of-living
bonuses and length-of-service increments, wherever these were in
effect. Overtime pay for emergency work beyond the usual workweek
was not included, nor was premium pay for extra-shift operation, the
latter a relatively unimportant factor in municipal employment.
Indirect additions to income provided in the form of meals, lodging,
laundry, or other payments in kind, were not taken into account.
An exception to this rule was made wherever the workers in an occu­
pation had the option of taking the cash value of full or part mainte­
nance. In those instances in which all or a part of the group exercised
the option, the average rate for the occupation was considered to be
the average base rate plus the cash value of the maintenance. The
occupational groups that received maintenance allowances not in­
cluded in the computation of earnings are designated in table 2 .
The statistics on annual salaries are estimates based on the single
pay period for each city. Although these figures are consequently
subject to some error, it is probably very small, since employment and
wage practices among municipalities show considerable stability.
The important salary-determining factors for which no allowance was
made include (1 ) overtime payments, (2 ) income received directly or
in kind for maintenance, (3) changes in base rates caused by individual
grade promotions, prior to or after the pay-roll period studied, or
other reasons, (4) seasonal lay-offs or other periodic reductions in time

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WAGE AND HOUR STATISTICS

323

worked, (5 ) labor turn-over during the year, which could increase the
weight of employment at the lower limits of rate langes within each
occupational group, and (6 ) reductions or extensions in the regular
workweek. Changes in the workweek would probably be of greater
significance for workers paid on an hourly basis, but would also affect
the earnings of some salaried employees.
The statistics of average hourly earnings and average annual
salaries for each occupation represent the average for that group in
all departments of a city in which the job was found. Since base rates
and weekly hours are often not identical in all departments of a city,
even for the same occupation, the city-wide averages do not necessarily
correspond exactly to the average wages in any particular department.
Average Hourly Earnings
Table 2 shows, by occupation, the average hourly earnings of male
and female employees in the 15 municipal governments for June 1944.
One outstanding characteristic is the wide variation among the 15
cities with respect to the earnings of the same occupational group.
For example, average hourly earnings of male laborers, an unskilled
p-roup ranged from 51 cents in Atlanta to 91 cents in Portland. For
mnitors, another unskilled group, City X (a southwestern city) had the
lowest hourly earnings, 43 cents, and Portland the highest, 95 cents.
It is of interest to note that despite the difference in range, the rank
of the cities is approximately the same for both unskilled occupational
groups, with the southern cities reporting the lowest earnings and the
far western cities the highest. Because the sample used is small and
the period studied limited to 1 month, caution should be observed
in o-eneralizing the relationships indicated by certain parts of the data.
Thus although the southern cities had the lowest hourly earnings for
certain unskilled occupational groups, they held a higher rank in the
case of some skilled occupations. Atlanta, for example, showed the
fourth highest hourly earnings for general repairmen, while fifth place
was taken by Portland. For the same occupational group, Oklahoma
City reported the lowest hourly earnings (72 cents) and the midwestern city of Gary the highest ($1.35).
Wide differences in average hourly earnings among occupations ot
similar skill grade within a given city are also indicated by the statistics
in table 2 . In three cities (Atlanta, Oakland, and St. Louis) janitors
received higher hourly earnings than laborers, while m i l cities the
opposite was true. In Hartford, laborers received on the average, 3
percent more in hourly earnings than janitors; and m Grand Bapids
the difference was almost 30 percent. With respect to certain skilled
categories, similar marked deviations from uniformity within the
same city were found.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

324

MONTHLY LABOR REVIEW— AUGUST 19 45

T able 2. — A v e r a g e H o u r ly E a r n in g s 1 o f E m p lo y e e s in 15 M u n ic ip a l G o v e rn m e n ts,
S e le c te d O c c u p a tio n s , B y S e x , J u n e 1944
Occupation and sex
Males
Account clerks ___ ___
Accountants (including supervisors)_______
Attendants, hospital, etc____ _ _ ______ _
Automotive mechanics.............. _ _
Blacksm iths-. _ _ ________ ______ . __ . .
...................
Brickmasons.
.
Building superintendents, school____ __ . . .
Carpenters, maintenance. ________________
Civil engineers, junior__________ _____ ____
Civil engineers, senior
___. . . _
Civil engineers, principal. __________ _ ___
Clerks, general___ _ __ __________ _ _ _ _
Clerks, senior________________________ ___
Clerical supervisors, except principal______
Clerical supervisors, principal. __ _____ _ _
Cooks____ _______ ____________________
Draftsmen, junior___ . . _
Draftsmen, senior_____ _ _
___ _
Electricians, maintenance _
_ _
Elevator operators ___ _ _ . _
Engineering aides, junior____ ______ _ _ __
Engineering aides, senior______ _____
Equipment operators, heavy __ ______ _
Equipment operators, light___ _ _ _
Food workers (except cooks)
_ __
Food workers, hospital. _ ____ ______ _
Food workers, other than hospital. _ __
Foremen, labor (shop and field) __ _ _ _ __
Guards and watchmen (other than prison) __
Guards_____ _ ______________________
W atchm en.. _______ _
Guards, prison _ _ _ _ _ _ _ _ ___
Helpers, any craft. _ _
Inspectors, field___ ___________ _ __
Janitors._
_______ ___ _
Laboratory technicians ________ __
Laborers (including gardeners) __ _ __ __
G ardeners._______________ _ __ _
Laborers ______
____ _ __ ___
Laundry workers___ _ _________ _
Librarians____________ _________ _
Library aides________ ______ ______
Linemen ______
Machinists, maintenance_____ ___
Mechanics, water works __ __ _
Office-machine operators________ __ _
Painters._ . ______ _____ _____
Plumbers_____________________
Pumping-plant engineers______ ____ _
Pumping-plant oilers ___ _____ ___
Recreational leaders_________________
Repairmen, general. _______ _
Sanitarians______ _ _______ ___
Secretaries...
__ __
_ __ _
Sewage-plant operators._ ________
Stationary engineers.__ _________
Stationary firemen _
Stenographers____ ___ __
Stock clerks__________ ____
Storekeeper supervisors___________
Switchboard operators ___ _
Tree surgeons______________
Tree trimmers___ _. ____
T y p is ts _______ ____
Typists, junior. __________
Typists, senior
Water-purification operators.
Water-service men __
Females
Account clerks_________________
Accountants (including supervisors).
Attendants, hospital, etc
Charwomen_____ ____ _
Clerks, general_____________
Clerks, senior___ __
Clerical supervisors, except principal.
Clerical supervisors, principal
Cooks. _______ _ _ _ _
D ietitians___ ________________
See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

At­
Cin­ Den­
lanta Buffalo cinnati ver

2$1.22
$1.19
1.53
4 .28
1.03
1.07
1.19
1.10
1.39
1.25
2 1.24
0
2 1.15 2 1.25
1. 41
1.03
1.38
1.78
2. 36
2.15
.91
. 78
2. 84
1.22
.89
1.16
1.59
1.08
k 43
4.66
1.05
1.37
1.52
2 1.27
.67
.69
.97
1.12
.77

1.53
.89

.95
.56
.60
. 54
.61
.75
1.24
.58
2. 99
.51

.94
2. 72
.80
2. 71

.51

.98
1.12
.70
2 80
2.78
.78
2.78
.67

.87
2 1.04
.78
(3)
2 1.06
2 1. 44
1.30
.85
2 1.06
.99
.90
.87
2 1.03
2.90
. 78
. 79
2 1.05
(3)
.62
.77
(3)
.89
.83
.84

1.13
1.10
.85
2 1. 30
2 1.51
1.13
(3)
.97
2.93
1. 02
1.38
.93
2 1.10
2.78
1.29
2.65
1. 03
.93
.81

$0. 96
1.42
.54
1.01
(3)
1.57
.78
1.38
1.26
1.52
1.85
.65

$0.80
1.06
4. 39
.91
.95
1.65
2. 78
2 1.14
(3)
1.49
(3)
2. 69

.94
1.17
(3)

.93
1.22
2. 76
.92
(3)
1.00
2. 60
. 75
1.08
.95
.80
4.41
4.41

1.00
1.36
(3)
.63
.93
.99
.82
4.65
4.65
.87
.63
. 70
.62
. 77
. 78
1.19
.60
.71
.71
.63

1.07
.91
1.38
1.40
1.41

Flint

Gary Grand Hart­
Rapids ford

$1.05
1.42
.66
1.12
(3)

$1.20
(3)

1.10
1.01

.90
1.50

1.24

1.56
(3)
. 90

.64
(3)
.85

(3)

(3)
(3)
(3)
1.08

1.50

.93
.83

1.20
1.00

.88
2.64

1.09
.78

.98

2. 64
.66
.87
1.01
2. 62
. 60
2. 72
2. 72
2. 72
4. 45
.69
.44

. 78

(3)
.79
.66
2 1.24
1.31
.95
.74

.84
1 03
(3)

.80
73
.92

1.28
.98
.94
. 91
1.10

2 1.10
2.91
. 68
2 .73
2.99

.88
1.22
2. 79
.84
.84
(3)

1.28
.81
.85
. 84
.85
(3)
. 58

.95

.87

2.86

4.62

2.60
4. 77

2.79
.81

4.45
2.84

.71

.70

1.42
.64
(3)
.82
m
.82

(S)
1. 53
.71
(3)
.73
78
.73

1 09
1 15
' 88

1.02

.94

1.35
1. 36

.87
1.02

.94
1.14

89

1 05
98
. 78

.88

79
. 89

84
91
(3)
(3)
.90

77
«
(3)
.80

98

(3)
1.10
. 98
.87

93
(3)
.55
62
.71
. 92
.78
1. 05
. 72
1.00

. 78
1. 26
4.37
2 .41
2.61

.99
.70

1.06
1.09

1.14
. 92

.49
. 50
.64

.98
.71

.82
1.00
1 12
89

. 84
.84

.94

1.26
95
(3)
1 10
.85
.80

1.50
1.50

.75
.90

1. 08

.97
(3)
(3)
(3)
.99
.86

1.01
(3)
1.07

.86
.87

2.56
66
2.83
(3)
1.14

$1 13
1. 38
60
.94
.91
1 01
1.08
1.07
1 37
1.78
2.23

.74

.87

«

1.16
2.31
.27
2.56
. 70
.67
.89

$1 03
(3)
(3)
1.01
(3)
(3)
.68
.88
1 29
1.41
1 92
82
99
.92
1.14

91
58
.81
.95
.94

86
(3)
4.51
53

.55

(3)
.59
.73

95

1 05

.82
.90

.93
1.18
.83

325

WAGE AND HOUR STATISTICS

T a b l e 2 .— A v e r a g e H o u r ly E a r n in g s 1 o f E m p lo y e e s in 15 M u n ic ip a l G o v e rn m e n ts,
S e le c te d O c c u p a tio n s , B y S e x , J u n e 1 9 4 4 — Continued
Occupation and sex

Cin­ Den­
At­
lanta Buffalo cinnati ver

Flint

Gary

Grand Hart­
Rapids ford

Females—C ontinued
Elevator operators________________________
Food workers (except cooks)..............................
Food workers, hospital___________________
Food workers, other than hospital_________
Graduate nurses (including Public Health
S ervice)..------ ---------------- --------- ------------ $0. 62
Graduate nurses (except Public Health
2.45
_____ ___ _______ ________
Service)
.73
Graduate nurses (Public Health Service)Graduate nurse supervisors------------------------ 4 94
2. 39
Housekeepers_________ ________ __________
Laboratory technicians_____ _____ ________ 2.96
42
Laborers (including gardeners)____________
2 34
Laundry workers________________________
2. 97
Librarians_______ _______________________
. 62
Library aides____ _______________________
.43
Matrons, park__________ ____ ___________ .
.61
Matrons, prison________ _________________
Office-machine operators........................... .........
.56
Recreational leaders__________ ___________
Sanitarians______________________ _____
2. 81
Secretaries____ __________________________
2. 66
Social workers, welfare__________________ _
2. 77
Stenographers______________ _____________
Stock clerks______________________ _______
2. 65
Switchboard operators______________ _____
.74
T ypists__________________________________
.54
Typists, junior_______________________
.75
Typists, senior_______________________

Occupation and sex

Males
Account clerks___________________________
Accountants (including supervisors)-----------Attendants, hospital, etc__________________
Automotive mechanics___________ ------------Blacksmiths______________________________
Brickmasons--_____ _____________________
Building superintendents, school----------------Carpenters, maintenance__________________
Civil engineers, junior________ _____ _______
Civil engineers, senior_____________________
Civil engineers, principal__________________
Clerks, general-----------------------------------------Clerks, senior____________________________
Clerical supervisors, except principal----------Clerical supervisors, principal--------------------Cooks_____________________________ ______
Draftsmen, junior___________ ____ _________
Draftsmen, senior_________________________
Electricians, maintenance_________________
Elevator operators________________________
Engineering aides, junior---------------------------Engineering aides, senior__________________
Equipment operators, heavy_______________
Equipment operators, light__________ - .........
Food workers (except cooks)_______________
Food workers, hospital____________________
Food workers, other than hospital--------------Foremen, labor (shop and held)-----------------Guards and watchmen (other than prison) - - _
Guards_______________________________
W atchmen___________________________
Guards, prison---- ------ ------ ------ ---------------Helpers, any craft________ _____ __________
Inspectors, field__________ _____ __________
Janitors______________ .----------------------------Laboratory technicians----------------------- -----Laborers (including gardeners)_____________
Gardeners----------- ------------------------------Laborers___________________ _____ ____
Laundry workers-------------------------------------Librarians____ - _____________ ______ ______
Library aides................................... ................. —
See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

$0. 52
. 53
.53

(3)
(5) 4$0. 38
4. 36
$0. 46
4. 51
4. 39

$0. 58
.57
.57

2.79

.78

(5)

.90

2. 68
.94
2. 84
2. 55
.74
.68
.61

.76
.82
1. 02
(3)
. 87

4.57
21.05
4. 66
4. 45

.89
.93
1.11
(3)
1.01

.80
.81
.98

(3)
4. 37
.73
2.39
.61
. 70
.64

. 54
.81
.60
.57
. 67
.65
.92
.82
.76

.96
.93
(3)
.86
.71
.64
.78

.60
.93
.74

2.87
.84
2. 67
. 50
2. 62
.66
.60
.76

.64
.68
.66
.86

$1.61

(5)

4$0.69
.90
1.61

$0. 79
.78
1.01
1.13
.63

.86
. 50
(3)

.99
.65
.59

.77

.92

.92

.96

.68

.74

.73

1. 13
.92
.85

.68
.63
.61
.70

.63

.75
.68
.58
.74

.74
.79
.72
.91

Oak­
land

Okla­
homa
City

Pitts­
burgh

Port­
land
(Oreg.)

St.
Louis

St.
Paul

$1.41
1.57

$0. 87
1.11

(3)
$1.31

1. 72

.85
(3)
(3)
.72
.92
(3)
1.22
(3)
(3)
.81
.98
1.16

$1.14
1. 48
2. 54
1.09
1.24
1. 75
1.29
2 1.48
1.27
1.59
2. 02
2. 77

(3)
$1.53

1.30
1.29

$1. 15
1.41
4.47
1.82
(3)
1.84
.78
1.75
1.52
1.50
1.77
.97
1. 23
1.35
1.50

1.69
1.55
. 85
1. 15

(3)
(3)
.89
. 53
.89

1. 11
1.16
1.40

1.61
1.09

1.76
.73

1.11
1.44
1.61
. 79
.94
1.75
1.48
.91

.96
1.13
1.14
.97

1.54
2.62
.83
.91
1.26
2.81
4.41
4.41

1.27
.93
.95
.92

.87
.55
.59
.45

.92
. 75
.90
2. 68

1.12
.85
.86
(3)

.82
(5)
4.75
2.62
.82

.96

1.56
.95
(3)
2.92
2. 93
.90

1.00
2. 57

1.24
.74
2 1.08
2.78
2. 86
2.78
(3)

1.02
2. 69
.65
.65
.68
.65
2.62
(3)
.46

1.31

1.08
.43

.81
.91
.80

.61
.62
.61

1.45
1.55
1.98
2.30
1.20
1.44

( 3)

(3)

.64
.71
.64

2

1.13
(3)
( 3)

.98
1.21
1.18
1.43
(3)
.94
1.07
1.05
1.41

.96
1. 10
.81
.94
.91
.96
.91

2. 97
2 1.06
2. 71
1.04

City
X

$1.09
1. 33
.92

1.02
1.44
1.65
1.89
1.10
1.10
1.23
1.53
1.50
1.31
(3)
.86

(3)
.71
.79
1.22
1. 52
1.81
.68
.89
.93
1.15
(3)
.94
1.12
.85
.55
1.05
.75
.70

.85
.60
.74
.46

.94

.83
.54

326

M O N TH LY

LABOR R EV IE W — AUGUST

19 45

T a b l e 2.—Average Hourly Earnings 1 of Employees in 15 Municpal Governments,

Selected Occupations, B y Sex, June 1944— Continued
Occupation and sex

Oak­
land

Okla­
homa
City

Pitts­
burgh

Port­
land
(Oreg.)

St.
Louis

$1.37
(3)
1.05

$0.82
.77

$1.40
1.75
.86

1.36
1. 70

.95
.95
.84

$1.30
1.22
1.12
(3)
1.32
1. 40
1.17

1.06
1.21
1. 41
(3)

.41
.72
. 96

$1.30
1.10
.86
0
2 1.55
1. 59
0
1. 05
.61
2 1.00
. 99

St.
Paul

City
X

Males—Continued
Linemen_________ . _ _________________
Machinists, maintenance____ ______ . __
Mechanics, water works__ _____ _ _____
Office-machine operators.. . . ____________
Painters____ _____ _ _ .
___ _
Plumbers. _ __ . . .
_ . ___
...
Pumping-plant engineers . . . . . ______
Pumping-plant oilers______ . . . . . . . .
Recreational leaders___ .
_
_
Repairmen, general___
. ________ ____ _
Sanitarians . . . _. _
. . . _____ __
Secretaries _____ ______ ________
Sewage-plant operators... ______ _ ______
Stationary engineers
_ _ _____ _
Stationary firemen
Stenographers . . . . .
Stock clerks.
. .. .
.
.
...
Storekeeper supervisors______ . . . _ _ . . .
Switchboard operators...
_. . . . . .
___
Tree surgeons__________ ______
Tree trimmers. . . .
_ ________ _______
T ypists_______________ ______
Typists, junior ______
....
Typists, senior_____ . . . ___________ . . . .
'Water-purification operators. __
_
Water-servicemen . . . . _ _____ _ _ _ _ _ _

1.25

.84
.90
.63
(3)

(3)

0

(3)
.97

(3)
.55

Females
Account clerks. _ __________________
1.20
Accountants (including supervisors)__ _ ._
Attendants, hospital, e t c ___
______
Charwomen____ . . . ____ _ _ _ . . .
.76
Clerks, general. _________ . . . _______ __
.91
Clerks, senior . . .
Clerical supervisors, except principal
0
Clerical supervisors, principal.__
1.45
Cooks_____ ____
_
. . . . .
Dietitians.
. . . . . _______
Elevator operators____
_
....
. 73
Food workers (except cooks). . . ______ _
Food workers, hospital. _______ _
___
Food workers, other than hospital... _
Graduate nurses (including Public Health
Service).. _________
______
1.19
Graduate nurses (except Public Health
Service)... _ __________ ____ ..
(3)
Graduate nurses (Public Health Service)____
1.19
Graduate nurse supervisors . . . . . .
Housekeepers . _ _____________________
Laboratory technicians... . ________
(3)
Laborers (including gardeners). . _________
.82
Laundry workers___________ . ________
Librarians. ._
. . ____
1.03
Library aides___________ _________
.80
Matrons, park_____ _
______ . .
Matrons, prison____ ____ _ ______ . . .
Office-machine operators . . . _______ . .
.89
Recreational leaders___________________
2 1.10
Sanitarians. _. _______________________ .
Secretaries____
______________________
1.17
Social workers, welfare _________________
Stenographers__________ _________ _ _.
.85
Stock clerks .
.. ..
„
.98
Switchboard operators________ ________
.85
T ypists. ______
____________ _______
.85
Typists, ju nior... ________ . . . _______
.84
Typists, sen ior... ________ . . . _______ .
(3)

1.63
1. 75
1.19
.96
1.09
2 1.15
1.10
1. 30
(3)
2.99
2.81
1.10
2. 83
2.81
.87
(3)
(3)

.83
.83

.79
.89

(3)
(3)
(3)
. 49
.68
.85
(3)

.87
.90
4. 43
2. 54
2.86

(3)

2. 60
4. 80
. 59
.52

.49

.79

.95
1.01
1. 11
1. 19
(3)
(3)
.92
1.18

(3)
(3)

0

2.76
2. 75
.78
2. 90
4. 55
2. 73

. 96

.80
.85

.69

.87
.91
1. 08
.99
1.49
.90

.57
.65
(3)
.66

2, 78
.71
.65
(3)

. 78
.76
.75
0

.74

2.92
2 1.02
2 49
2 97
. 56
2. 50
2. 50

.88

2 1.01
(3)
3. 48
.96
.78

(3)
.41

2. 54
2 50
2. 68

.86
.89

.80
(3)
.77
.58

.89
91
1.14

0

4 .50
.91
2 1.30

0

2. 52
2.84
. 51

.87
.81

.85

1.27
1. 06
2 84
2. 73
0
2. 75
. 78
. 67
2. 83
2 83

.97

2 .78
.81
(3)

.70

0

1. 05
. 85

.52
2.80

1.44

0

. 99

. 74
.77
96
.93
1.21
. 56

$1.04
.88

0

0

.84
76
.74
86
’ 78

0

89
1.10

(3)
.65

1.10

84
.73
.91

0

0
i in
1.10

47
38
.71
81
0

0

1.23

.75

1.23

.75
0
.74

.80
84
.58
.47

. 66
.81
. 63
2.93
2. 78
2. 75
2. 61
2.66
2.66
2. 66

$1.02
.95
.85
.87
.76
0
80

69
.54
( 3)

1.31

. 69
. 78
.95

.95

.74

.84
.67
1.07

. 63
.57
.55
.60

1 For some workers average hourly earnings are not straight-time but include overtime at premium rates.
Only a small number of workers are so affected.
2 Some workers receive additional compensation in the form of meals and/or lodging, or other payments
in kind, the cash value of which was not estimated. The earnings of such workers have been excluded from
the calculation of the average shown in order to avoid understating the average hourly earnings.
3 Too few workers to justify presentation of an average.
4 All workers receive additional compensation in the form of meals and/or lodging, or other payment in
kind, the cash value of which was not estimated. The earnings presented include no allowance for such
compensation.
6
A comparable average for this combination cannot be shown, since all the workers in one of the two
occupations receive additional compensation in the form of meals and/or lodging or other payments in kind.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WAGE A N D H O U R STATISTICS

327

Table 2 also permits comparison of hourly earnings of male and
female workers in the same occupational groups. Of the 1 2 cities
with data for general clerks of both sexes, Flint and City X were the
only cities in which male general clerks received lower hourly earnings
than the corresponding female group. In the 1 0 cities in which the
earnings of women were below those of men, the difference ranged
from only 1 percent in Cincinnati to almost 50 percent in Grand
Rapids. In 8 of these 10 cities the margin was greater than 1 0
percent. In the more highly skilled group of clerical supervisors
(except principal) none of the 1 0 cities reporting information for
both sexes showed female earnings above those of males. In St.
Paul both sexes received $1 .1 0 ; in the 9 remaining cities the difference
varied in favor of men from 2 percent in Buffalo to 70 percent in
Pittsburgh, but in 5 of these cities was under 1 0 percent. It is probable
that differences in length of time on the job and in the content of
job account in large part for the differentials between the sexes found
within any single city.
Estimated Annual Salaries
As in the case of average hourly earnings, there is a marked lack of
uniformity in the estimated annual salaries of identical occupations
in the 15 cities, and similarly, occupations requiring approximately
the same degree of skill show substantial variations in salaries within
any given city .7 The differences observed on an annual basis are
due both to differences in average hourly earnings and to variations
in average scheduled weekly hours of work.
A distribution based on the annual salaries of 16 key male occupa­
tions that appeared in most cities showed that in 1 2 cities half or
more of the classifications fell within the $2,000-$3,000 salary class.
In one city (City X) half of the key male occupations had salaries
under $2,000; in Gary and Pittsburgh the concentration was in the
salary bracket of over $3,000. With respect to 7 key female occu­
pations, no city reported salaries over $3,000; the majority of these
occupations in 1 0 cities were in the $1,500 to $2 , 0 0 0 bracket.* It is
important to bear in mind that the selected occupations do not include
certain higher-salaried employees, such as firemen, teachers, police­
men, and top administrative personnel. Moreover, the distribution
of occupations by salary classes is not necessarily indicative of the
distribution of municipal employees surveyed in this study, because the
former takes no account of the number of workers in each occupation.
Of the 16 key male occupations, the highest-paid group, based on
an average for all 15 cities, was senior civil engineers, with annual
salaries of $3,278; the lowest-paid workers were janitors, at $1,619.
Plumbers ($3,039), accountants ($3,032), and maintenance electricians
($2,920) were among the highest paid; laborers ($1,773) and lightequipment operators ($1,993) received the second and third lowest
annual wages. Among the 7 key female occupations, secretaries
were the highest paid ($2,007) and switchboard operators the lowest
($1,510).
7 Detailed tabular data on estimated annual salaries, by occupation and city, will be included in a forth­
coming bulletin.
8 See footnote 9 for enumeration of key occupations.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

328

M O N TH LY

LABOR R EVIEW — AUGUST

194 5

Scheduled Weekly Hours of W ork
The scheduled workweek was not uniform either among all 15
cities or within any single city. The majority of office employees
were scheduled to work 38 hours in 4 cities (Gary, Hartford, Oakland,
St. Louis), more than 38 but less than 40 hours in 3 cities (Buffalo,
St. Paul, Pittsburgh), 40 hours in one city (Grand Rapids), 44 hours
in 4 cities (Cincinnati, Denver, Flint, Portland), and 45 hours in
City X. The regular workweek was reported as 41.5 hours in Atlanta
and 44.5 hours in Oklahoma City. For nonoffice workers, scheduled
hours were generally longer and there was greater variation within
each city. Very few were scheduled to work less than 40 hours and
with the exception of some custodial and boilerhouse employees,
few were scheduled to work more than 48 hours. Hospital workers
in Atlanta, Cincinnati, Denver, and Pittsburgh were among those
for whom a 48-hour workweek was scheduled.
Intercity Comparisons of Wage Levels
The general level of municipal wage rates in the 15 cities is not
easily identified from an inspection of the occupational data, because
of the numerous classifications, the varying number of employees
covered in each group, and the great disparity in wages. To facilitate
intercity comparisons, two indexes of wage rates were constructed,
based on 23 of the 74 key occupational classifications 9 included in
this survey. All of these occupations appeared in at least 14 of the
15 cities, accounted for a substantial proportion of the employees
surveyed, and were representative of the range of wage rates and skills.
The indexes were constructed in the following manner: (1) The
number of employees in each city in each occupation was used as a
weight to obtain the average occupational rate for all 15 cities com­
bined; (2) the occupational rate in each city was expressed as a rela­
tive of the composite occupational rate; and (3) the resulting rela­
tives for each city were then weighted in proportion to the number of
workers in that occupation in all cities combined, yielding a compo­
site relative for each city. In analyzing the resulting indexes of
hourly rates and annual salaries presented in table 3, it should be
noted that they are based on a limited number of the occupations
surveyed and also exclude the higher-salaried personnel. Although
the indexes presented differ in some degree from those that would be
obtained if the coverage were more inclusive, it is believed that the
rank of the cities with respect to their municipal wage levels is
representative.
9
These include 16 male occupations: Account clerks, accountants (including supervisors), automotive
mechanics, blacksmiths, maintenance carpenters, senior civil engineers, maintenance electricians, heavyequipment operators, light-equipment operators, labor foremen, field inspectors, janitors, laborers, painters,
plumbers, and general repairmen. The 7 female occupations include clerical supervisors (except principal),
general clerks, graduate nurses of the public health service, secretaries, stenographers, switchboard operators,
and typists.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

329

WAGE AND HOUR STATISTICS
T

able

3 . — Indexes and Rank of 15 Municipal Governments, by Level of Annual and

Hourly Wage Rates in Selected Occupations, June 1944
Hourly rates

Annual rates
City

Oakland_____ _ ________ ________________________
G ary...
_
____ ____________________
Portland (Oreg.) _
_ _ _ __ _ _______________
St. P a u l....- 1 1_____ _____________________________
Buffalo ______ _ ____ ____________ ____ ____ __ _ __
Flint
_ _
_________ ____________________
Pittsburgh _______________________________________
Hartford_______
__ __________ ____________ ____
C in c in n a ti__ _________
_________________________
Grand Rapids _ .
_
_ _ _ _ _________________
D en v er.. _______ __________ __________ ________
Oklahoma C ity__ _________________________________
City X„_ __
_____________ _____ ____ _ ________
St. Louis ________ ■________________________________
Atlanta _____ _ ____ _ _ _______________________

Indexes
(averages
all cities=
100)
118
115
114
110
107
107
106
102
99
93
91
90
88
85
77

Rank of
city based
on index

Indexes
(averages
all cities=
100)

1
2
3
4
5.5
5.5
■7
8
9
10
11
12
13
14
15

124
113
113
108
105
104
109
100
94
99
92
84
82
93
82

Rank of
city based
on index
1
2.5
2.5
5
6
7
4
8
10
9
12
13
14.5
11
14.5

The relative position of each city with respect to both hourly rates
and annual salaries was found to be almost identical. Oakland, Gary,
and Portland had the three highest ranks measured by both indexes,
while Atlanta, St. Louis, and the southwestern City X had the three
lowest.
Seven of the cities surveyed were also included in a study of inter­
city variations in industrial wage levels made by the Bureau of Labor
Statistics in 1943.10 A comparison of the two sets of data revealed a
close similarity in the rank of wage levels of municipal employees and
of employees in private industry in the same cities. Portland showed
the highest municipal wage rates as well as the highest industrial
wage rates, and Atlanta ranked lowest in both respects. The remain­
ing 5 cities, ranked from high to low on the basis of the data from both
studies, were Pittsburgh, Buffalo, Cincinnati, Denver, and St. Louis.
Wage Increases Since January 1941
Wage rates of municipal employees increased substantially between
January 1941 and June 1944 in all 15 cities. Some of these increases
involved upward revisions of basic wage scales; others were given in
the form of cost-of-living bonuses. In several cities both types of
wage adjustments were made, but usually for different groups of
employees.
Wage scales were advanced in all or most of the departments in
Denver, Flint, Gary, Oklahoma City, Pittsburgh, and St. Louis.
In some of these cities a uniform sum was applied to the wages of all
or most employees, in others a uniform percentage increase was
awarded, while in the remaining cities graduated sums or graduated
percentage increases were applied to different salary brackets. In
Flint, for example, a uniform increase of $130 per year, or 6 cents per
hour, was granted in August 1943 to all municipal employees except
those in the Board of Education. In July 1944, employees of the
Board of Education were to receive a flat increase of $ 1 0 per month.
A uniform general increase of 5 percent was applied to the wages of
all salaried workers (except department heads) in Gary on January 1 ,
io See Intercity Variations in Wage Levels, in M onthly Labor Review, August 1944,
6 5 6 2 4 3 — 45 —— 10


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

330

M O N TH LY

LABOR' R EV IE W — AUGUST

1945

1942. In the same city all employees paid on an hourly basis received
a flat increase of 1 0 cents an hour on January 1 , 1942, and graduated
increases on January 1 , 1943, and January 1 , 1944. In the 4 other
cities where wage scales were adjusted upward both flat-rate and
percentage increases were granted to different groups of workers. In
some cities the amount of the increase varied with different salary
classes.
Cost-of-living bonuses form a part of the present salary of all or a
large proportion of the municipal employees in Atlanta, Buffalo, Cin­
cinnati, Grand Rapids, Hartford, Oakland, Portland, St. Paul, and
City X. The St. Paul and Portland wage plans call for an annual
adjustment of wages based on the U. S. Bureau of Labor Statistics
cost-of-living index. In the 7 other cities the cost-of-living bonus
was most commonly a variable sum applied to different salary
brackets. In Buffalo, for example, all employees earning less than
$1,200 a year received a bonus of $156. The amount of the bonus
decreased as the salary increased so that employees in the $3,600$3,899 salary class received a bonus of $97.50. In Cincinnati employ­
ees in the lowest salary class of $1,020 or less a year received $250.08,
but the amount increased with each salary class so that for those
earning $2,580 the bonus was $398.88; all employees above this salary
group received a uniform bonus of $400.08.
It is estimated that the wage increases and bonus payments had the
effect of raising wages by approximately 10 to 15 percent in most
cities.
Wage-Payment Practices
J O B -C L A SSIF IC A T IO N A N D SA L A R Y P L A N S

Job-classification systems covering all or nearly all major groups
of municipal workers were in effect in 1 2 of the 15 cities. Pittsburgh
had no similar system for any department but was engaged in a jobanalysis study at the time of the survey. In Gary classifications
were used only in the Police Department, and in Denver only in the
Departments of Education and Public Welfare. Of the 1 2 cities
having the more extensive systems, only Buffalo, Cincinnati, and St.
Paul covered nonteaching personnel in the Department of Education.
Four general types of salary plans were prevalent: (a) Uniform pay
plans that classify jobs by grades, with a uniform salary range for all
jobs within a grade, found in Buffalo, Flint, Grand Rapids, St. Louis,
and St. Paul; (b) plans that called for a single minimum rate for each
job class but with varying maximum rates, used in Atlanta, Cincinnati,
Hartford, Oakland, Portland, and City X; (c) salaries and wages fixed
annually for individual jobs, with no step rates and no rate ranges in­
dicated, found in Gary and Pittsburgh; and (d) the discretionary
fixing of salaries and wages by the appointing officer, practiced in
Denver. Denver, however, had established standardized wage rates
and ranges in the Board of Education and Department of Public
Welfare. Insufficient information was available to permit classifica­
tion of the wage plan of Oklahoma City.
All of the uniform pay plans provided step rates between the mini­
mum and maximum rates for a grade. These step-rate increases
were earned at stated service intervals, except in Grand Rapids where
they were granted on the basis of individual merit.
Salary increases within the range were also a feature of the (b) type
plans found in six cities. However, only in Atlanta were specific

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WAGE A N D H O U R STATISTICS

331

step-rate increases prescribed at certain time intervals; Cincinnati,
Hartford, Oakland, and Portland provided specific increments to be
awarded for individualfmerit. Inj|City X the amount of increase
within the salary range and the time interval were determined on an
individual basis.
Although a classification of jobs is common to both, the (b) type
plans typically provide for many more job classes and rate ranges
than do the (a) type plans. For example, the (a) type plan used in
St. Louis contained 32 job-classification grades, with a uniform salary
range and step rates at stated service intervals for all jobs within a
grade. There were 60 minimum rates with 150 rate ranges, and 33
flat rates with no rate ranges in Cincinnati which followed a (b) type
plan.
Workers paid hourly or daily rates were, in most cases, treated
differently from employees hired on a monthly or annual salary basis.
Among the 5 cities with uniform pay plans, only Flint extended classi­
fication by grade to all daily and hourly rate workers, with ranges and
step increases established for each grade. Buffalo set grade rates
but made no provision for ranges or step increases. St. Louis and St.
Paul incorporated daily and hourly rates for specific jobs in their plans,
but except for one job in St. Paul, no ranges or step increases were
provided. Grand Rapids had rates with prescribed ranges but no
step increases for maintenance employees in the Department of Edu­
cation. Of the 6 cities with (b) type plans, only Atlanta, Hartford,
and Oakland had ranges and step increases applicable to both daily
and hourly rates and salary rates. In City X daily and hourly rates
were set for specific jobs but the system of ranges was not extended
to include these rates. The Portland plan covered only monthly
rates, while Cincinnati included some hourly and daily rates with
corresponding ranges but no step increases.
M ETH O D S OF WAGE^ PA Y M E N T S

Municipal employees, like employees of the Federal and State Govern­
ments, are typically salaried workers whose wages are expressed in
terms of monthly or annual rates. However, substantial numbers of
workers, particularly in the craft, maintenance, and laborer classifica­
tions, are paid hourly or daily rates. Occupations in which approxi­
mately one-fourth to three-fourths of the employees are paid by this
method are the laborers, oilers, plumbers, lieavy-equipment operators,
carpenters, painters, brickmasons, electricians, stationary firemen,
general repairmen, light-equipment operators, tree trimmers, black­
smiths, tree surgeons, and automotive mechanics. In the first 7 of
the 15 enumerated occupations more than half of the workers were
paid hourly or daily rates. An appreciable number of mechanics in
waterworks, craft helpers, labor foremen, stationary engineers, guards
and watchmen, janitors, and stock clerks were paid by the day or
hour in two or more cities. Women workers paid daily or hourly
rates in two or more cities were employed as cooks, other food workers,
laborers, park matrons,'charwomen and maids, and nurses (other than
public health nurses). More than half of the women cooks, other
food workers, and laborers included in the study were found in this
category. Daily and hourly rate workers constituted about a fourth
of all the workers studied, and approximately the same proportion
in each of the seven cities City X, Cincinnati, Denver, Flint, Okla
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

332

M O N TH LY

LABOR R EV IE W — AUGUST

19 45

homa City, St. Louis, and St. Paul. More than half of the workers in
Pittsburgh and more than a third in Atlanta, Gary, and Hartford
were paid by this method.11
Administration of Municipal Employment Systems
C IV IL S E R V IC E SY ST E M S

All cities but Gary, Denver, and Hartford have civil service systems
covering all departments of the municipal government. In Denver,
the police and fire departments are the only departments covered by
a civil service system and in Gary, only the police department. In
Denver, however, the civil service commission has the power to re­
view appointments in other departments. Hartford has a personnel
system administered by the board of finance, but the board has no
powers of appointment; appointments are made by department heads,
and no competitive examinations are held.
In those cities where civil service systems are in effect, examinations
are open and competitive for most of the positions in the classified
service and are generally free. In Buffalo, however, fees range
from 50 cents for an examination for a per diem job or ona paying less
than $ 1 , 2 0 0 to $5 for a job paying more than $5,000 a year. The St.
Louis charter provides that fees may be charged.
T E N U R E OF O F FIC E

Tenure of office is in most cases attained after a 6 -month proba­
tionary period, but in three cities, (Cincinnati, Pittsburgh, and City
X) the period is only 3 months ; 12 in Oakland and Hartford it is
1 year, and in St. Louis it is “not more than 1 year/’
Information
regarding the probationary period in Gary is not available.
Seniority is recognized in determining lay-offs in all cities except
Atlanta, Cincinnati, Gary, and Pittsburgh. In St. Louis this rule is
observed for all but a small group of employees; Denver and Oakland
reported exceptions to the seniority principle in some departments.
Employees have the right of appeal from discharge “for cause1’
in most cities. There are no specific provisions for some departments
that are outside the merit system in Gary and Denver. In Okla­
homa City appeal is to the city manager, and there are no provisions
for public hearing.
Union Affiliation
Although none of the municipal governments had written con­
tracts with unions, in some cities entire departments were organized
and in others groups of employees were members of independent
unions or of unions affiliated with the American Federation of Labor
or the Congress of Industrial Organizations. Only two cities, Denver
and Oklahoma City, reported that no municipal employees were or­
ganized; for Flint, St. Louis, and City X, no information on unioniza­
tion was available.
The status of union affiliation in 7 cities may be summarized briefly.
In Atlanta mechanics were members of various unions affiliated with
the A. F. of L.; truck drivers belonged to a local of the Teamsters
11 T he proportion of nonsalaried workers in the labor force probably varies somewhat from season to
season.
12 In Cincinnati the probationary period for unskilled laborers is 2 months.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WAGE AND H O U R STATISTICS

333

Union, A. F. of L. In Buffalo employees of the division of streets, the
city hospitals, the park department, and the sewer authority belonged to
the State, County and Municipal Employees Union, C. I. O. Switch­
board operators in the police and fire departments and janitors in the
public library of Gary were members of the Building Service Em­
ployees Union, A. F. of L. In the Gary school department there was
a teachers’ local of the American Federation of Teachers, A. F. of L.;
service and maintenance employees in the same department belonged
to another A. F. of L. affiliate; a few municipal workers of Gary were
members of the Fire Fighters Union, A. F. of L.; while certain hourly
rate employees of the street, sewer and garbage department belonged
to unions not designated.
In Grand Rapids maintenance and operating employees of the
board of education and the public library were members of an A. F.
of L. affiliate; fire and police department members belonged to the
Metropolitan Club, sponsored by the A. F. of L. In addition the
Grand Rapids Council of Public Employees covered board of educa­
tion workers, and an unaffiliated municipal employees’ association
included city workers other than those in the public library, board of
education, and fire and police departments.
In Hartford employees of the street department belonged to the
Street Department Operatives Union, A. F. of L. Some of the
employees in the following departments in Portland were members of
unions affiliated with the A. F. of L.: Police, fire, bureau of parks,
bureau of water works, and bureau of street cleaning. In Portland’s
Multnomah School District many custodial and maintenance em­
ployees as well as teachers were reported to be unionized, but no
information concerning affiliation was available. While entire de­
partments in St. Paul were not unionized, workers in several occupa­
tions, including maintenance employees, teachers, truck drivers,
laborers, and firemen, were members of A. F. of L. unions.
Very little information is available concerning the extent of union­
ization in Cincinnati, Oakland, and Pittsburgh. It was reported,
however, that although there were no contracts, conferences were
held with union officials, and union rates were paid to municipal
building-trades employees in Cincinnati, dock clerks and laborers in
Oakland, and all journeymen in Pittsburgh.

Trend of Factory Earnings, 1939 to May 1945
THE published average earnings of factory workers are summarized
in the accompanying table for selected months from January 1939 to
May 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 $46.03 in May
1945—98.5 percent above the average in January 1939, 72.8 percent
above January 1941, and 18.4 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
1
Compare Trends in Factory Wages, 3939-43, 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
sind Business Employment, M ay 1946, table 6 (p. 385), in this issue.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

334

MONTHLY LABOR REVIEW— AUGUST 1945

and among industries, as well as wage-rate increases, account for the
rise in earnings.
Gross hourly earnings in all manufacturing averaged 104.3 cents in
May 1945—65.0 percent above the average in January 1939, 52.7
percent above January 1941, and 16.8 percent above October 1942.
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 May 1945 was 97.7 cents per hour; this was 56.8
percent higher than in January 1939, 47.1 percent above January 1941,
and 16.4 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 1 0 to 1 2 of the table. If employment had
been distributed between industries as it was in January 1939, the
straight-time hourly earnings of factory workers would have averaged
90.8 cents in May 1945, or 45.7 percent above the corresponding
average in January 1939, 40.1 percent above January 1941, and 16.1
percent above October 1942. Between April and May 1945 the
increase in straight-time hourly earnings, after eliminating the influ­
ence of shifting employment, amounted to 1 . 0 percent. Even this
latter series of averages exaggerates the rise in wage rates, because
it includes the influence of interplant shifts of employment, merit
increases for individual workers, and premium rates for work on extra
shifts and on holidays.
Earnings of Factory Workers in Selected Months, 1939 to M ay 1945
Average weekly
earnings
Month and
year

Average hourly
earnings

Estimated straighttime average
hourly earnings 1

Estimated straighttime average hourly
earnings weighted
by January 1939
em ploym ent2

N on­
All
All
on ­
All
Non­
All
Dura­ N on­ manu­
Dura­ dura­ manu­ Dura­ N
dura­
dura­
manu­ Dura­ dura­ manu­ ble
ble
ble
ble
ble factur­ goods
ble factur­ goods
ble
ble factur­ goods
factur­ goods
ing
goods
goods
ing
goods
goods
ing
ing
(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

1939: Jan____ $23.19 $25. 33 $21. 57 $0.632 $0. 696 $0. 583 $0.623 $0. 688 $0. 574 $0. 623 $0. 688
.697
.644
.703
.589
.635
.717
.655
.598
1940: Jan____ 24. 56 27.39 22.01
.722
.601
.711
.610
.664
.648
.683
.749
1941: Jan __ __ 26. 64 30. 48 22. 75
.762
.729
.810
.835
.670
.890
.801
.688
1942: Jan____ 33. 40 38.98 26.97
.846
.949
.885
.701
.759
.725
.809
.856
July------ 36. 43 42. 51 28. 94
.723
.782
.869
.990
.751
.839
.919
.893
Oct____ 38.89 45. 31 30.66
.941
.794
.886
.733
.859
.919 1.017
.768
40.62 46. 68 32.10
1943: Jan___
.897
.959
.751
.790
.808
.944 1.040
.878
Apr____ 42.48 48. 67 33.58
.919
.766
.823
.899
.981
.963 1.060
.806
July___ 42.76 48. 76 34.01
.929
.997
.836
.824
.916
.781
.988 1.086
Oct__ _ 44. 86 51. 26 35.18
.942
.788
.846
.832
.927
1.011
.995 1.093
D ec___ 44. 58 50. 50 35. 61
.793
.850
.945
.838
.931 1.013
1944: Jan.. . . 45.29 51.21 36.03 1.002 1.099
.862
.955
1.023
.806
1.110
.942
.850
Apr____ 45. 55 51.67 36.16 1.013
.874
.973
.950 1.035
.815
.862
July____ 45. 43 51.07 37.05 1.018 1.116
.969
.956 1.038
.829
.881
.878
Oct____ 46.94 53.18 37.97 1.031 1.129
.832
.975
.886
.883
.963 1.046
D ec____ 47.44 53.68 38.39 1.040 1.140
.984
.840
.894
1.144
1.053
.891
.970
1.046
1945: Jan ___ 47. 50 53. 54 38. 66
.982
.845
.896
.896
.969 1.049
Mar____ 47.40 53. 22 38.96 1.044 1.139
.985
1.050
.850
.899
.899
.971
1.044
1.138
52.
92
38.
80
Apr.3___ 47.12
.993
.908
.977 1.055
.859
.904
M ay 3_._ 46.03 51. 58 38.23 1.043 1.135

(12)
$0. 574
.589
.600
.667
.694
.716
.724
.741
.750
.765
.773
.778
.792
.799
.815
.818
.825
.830
.834
.843

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.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

335

WAGE AND HOUR STATISTICS

Employment and Annual Earnings in Selected Indian
Factories, 1939 and 1943
EMPLOYMENT increased approximately 50 percent and average
earnings per worker per year nearly 83 percent in selected Indian
factories between 1939 and 1943, according to an official survey. 1 Of
the 1 0 groupings covered, the textile industry had the highest volume
of employment, followed by engineering, in both years. The relative
order of the various industries as regards annual earnings shifted
considerably from 1939 to 1943. In 1943, the average for mints was
highest (574.4 rupees2), textiles were next (571.2 rupees), and engineer­
ing ranked third (529.0 rupees), with average wages in the ordnance
factories (527.4 rupees) closely approximating the level of earnings in
engineering. Employment and average annual earnings are shown
in the accompanying table, by industry, for 1939 and 1943.
Average Employment and Average Annual Earnings in Selected Factories in India, by
Industry, 1939 and 1943
1939
Industry

Textiles
. ______
_ _______
Engineering _
_ ___ _______ ____ _
Minerals and metals. . ____________ . . . .
Chemicals and dyes______ __________ . . . . . .
Paper and printing
___ . . .
__ _ _
Wood, stone, and glass _ __________ _
Skins and hides. . .
. _ . . . _______
Ordnance factories _____. . . _________ . .
M ints _
___
. ________ _
Miscellaneous_______ ____ ___________ ._ . . .

Average
number of
workers

7.957.000
1.050.000
599.000
512.000
513, 000
412.000
118.000
266,000
18,000
203,000

1943
Average
annual
earnings
Rupees
293.6
312.1
462.8
246.2
332.6
193.8
290.3
361.9
367.4
282.8

Average
number of
workers

10,157,000
2, 354,000
974.000
810.000
614.000
725.000
385.000
1,253,000
68,000
731.000

Average
annual
earnings
Rupees
571.2
529.0
502.7
398.8
413.4
303.0
410.7
527.4
574.4
392.0

Wage Rates in Central and Southern Italy, 1939-453
WAGE variations based on skill and region have tended to narrow in
central and southern Italy since the beginning of Allied operations
in that country. Money wages have risen greatly, but not at the
pace of prices.
Wage Rates by Skills
Gross daily wage rates, established by agreement, for skilled and
unskilled workers in representative private industries in liberated
Italy, in April 1945, ranged from 292.0 lire 4 for skilled printers and
259.0 lire for unskilled engineering workers in Rome, to 2 1 0 . 0 and
178.0 lire, respectively, for skilled and unskilled workers in the building
1 Information is from Indian Labor Gazette (Government of India, Department of Labor), April 1945
(p. 340).
2 Official exchange rate of rupee in United States currency was 33.3 cents in 1939 and 30.1 cents in 1943.
3 Data are from report (No. 1583) of Alexander Kirk, United States Ambassador at Rome, dated M ay 18,
1945, enclosing report from Labor Subcommission of the Allied Commission for April 1945; and reports
(Nos. 39 and 88) by William D . Grampp, vice consul, Rome, dated April 21 and June 6, 1945.
4 The Allied Military Government established, in July 1943, for the liberated portion of Italy, an exchange
rate of 1 lira for 1 cent; this became effective in the Rome area about the middle of 1944.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

336

MONTHLY LABOR REVIEW— AUGUST 1945

industry in Catanzaro. In Rome these rates for unskilled workers
were more than 8 times as high as those in September 1942.
Daily wage rates in four representative industries in 6 regions in
the southern and central parts of Italy for September 1942, November
1944, and April 1945, are shown in table 1 .
T a b l e 1.— D a i l y W a g e R a te s in R e p r e s e n ta tiv e I n d u s tr ie s in S o u th e rn I t a ly , 1 9 4 2 , 1 9 4 4 ,
a n d A p r il 1945
DaiP f wage rate (in lir e)
Province, and population in 1944

Industry

September 1942 November 1944
Un­
Skilled skilled

--------- Building___
Engineering.
Printing___
Naples (2,223,509 population)---- . ----- Building___
Engineering.
Food______
Taranto (356,723 population)................... Engineering.
Food.. ____
Terni (204,600 population 9 __________ Building___
Engineering.
Brindisi (274,602 population) _. _ --------- B uilding___
Catanzaro (628,443 population)------------ Building___
Rome (1,622,926 population)—

43
36
43
41
31
33
33
36
38
34
37
43

38
31
27
28
27
27
28
25
28
28
26
24

April 1945

U n­
U n­ Skilled
Skilled skilled
skilled
140
127
140
134
118
121
116
121
126
120
123
134

131
120
113
114
112
111
109
104
110
110
104
102

279
266
292
235
219
222
227
232
237
231
224
210

252
259
252
215
213
212
220
215
221
221
205
178

i In 1936.

Rates given in table 1 are for an 8 -hour day for a worker with 3
dependents, and include bonuses and allowances. Although the
Italian General Confederation of Labor has advocated the adoption of
a sliding scale for wages tied to the cost of living, various increases
in basic rates, cost-of-living bonuses, food allowances, etc., have from
time to time been negotiated .5 These emergency payments, being
the same for skilled and unskilled labor, have tended to decrease the
difference between wages for the two groups, and this difference has
been further decreased by the demand for unskilled labor. For ex­
ample, in Naples, the daily wage of the skilled worker in building in
September 1942 exceeded that of the unskilled worker by about 46
percent, but in April 1945 only by about 9 percent. In Brindisi, the
wage of the skilled worker in the same industry exceeded that of the
unskilled worker in September 1942 by 42 percent, and in April 1945
by 9 percent. In engineering, though the difference between the wages
of the two groups was smaller, it also decreased between September
1942 and April 1945.
Wage Rates by Regions
According to studies based upon data of the Central Statistical
Institute of the Italian Government, average daily wage rates in Rome
and Naples rose from 42.5 and 30.1 lire, respectively, in May 1939,
to 141.0 and 208.4 lire in November 1944.
Table 2 shows for specified months in 1939, 1943, and 1944, average
daily wage rates in seven regions in southern and central Italy.
s For details, see M onthly Labor Review, M ay 1945 (p. 1013).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

w age

and

hour

337

s t a t is t ic s

T able 2. — A v e r a g e D a i l y W a g e R a te s in S p e c ifie d R e g io n s o f I t a l y , 1 9 3 9 - 4 4
D aily wage rates (in lire)
Region
M ay
1939

M ay
1943

July
1944

N ov­
ember
1944

D aily wage rates (in lire)
Region
M ay
1939

May
1943

July
1944

N ov­
ember
1944
141.0
122. 8
141 0
189.5

Average___________

29.3

49. 5

107.8

167.6

Rome

42 fi

52 1

RO fi

Catania___________
Chiete_ ______ .
N aples_________ _

23.7
22.2
30.1

43.6
40.5
57.1

102. 2
79. 2
147.9

157.7
134.7
208.4

Taranto
Trapani

25 0
26.5

47 7
75.2

13L0

Average wage rates given for various parts of Italy in table 2 indicate
that great regional differences in rates which prevailed in Fascist days
have been somewhat reduced since the advent of the Allies—from 91
percent between the highest and lowest rates in May 1939, to 70 per­
cent in November 1944. The inflationary effects of Allied military
expenditures have been more noticeable in some regions than in others,
raising wage rates in Catania, Sicily, for instance, from the second
lowest in the seven regions in May 1939 to the third highest in Novem­
ber 1944, and shifting Rome from first to fourth place in average rates.
Although average wage rates were 2 or 3 times higher in November
1944 than in May 1943, the significance of this increase depends upon
comparison with increases in food prices and other costs. No satis­
factory index for all phases of cost of living is available. Indexes of
food costs and of wages, based upon data from the Central Statistical
Institute (1940=100), stood, respectively, at 210.7 and 113.6 in 1942,
457.1 and 145.9 in 1943, and 1870.5 and 541.3 by November 1944.
Between 1943 and November 1944, the indexes of both food costs and
wages rose about 300 percent. From 1940 to July 1943, however,
food costs had risen more than 6 times as fast as wages, and this
difference had not been made up before the end of 1944.
Indexes of average monthly income and of the cost of a fixed food
budget for a worker’s family of 5 in Rome, 1940-45, prepared by
the Rome Chamber of the Italian General Confederation of Labor,
are shown in table 3.
T able 3.— I n d e x e s o f A v e r a g e M o n th ly In c o m e , C o st o f F ix e d F o o d B u d g e t, a n d R e a l
W a g e s, in R o m e , 1 9 4 0 -4 5

Month

Average monthly
inco me 1
In lire

1940: N o v em b er _____________
.. .
1941: March___ __________ __ . _____
June____________________________ ._ .
1943: April. . . . . . ._ ______ . .
July_________________________________________
December................. ........... _ ...... ..............
1944: June________ ______________________
A ugust.. . . _. ____ ___________ __________ ._
1945: M a rc h .. . . .
. . . . . . . . _____ ________
April__________ ________________________ .
M ay
___________________ . .

923
950
1,100
1, 256
1,360
1,867
2,207
3,096
6,424
6,424
6,424

1 Data for income include the contractual wage plus all allowances.
and changes occurred only in the months given.
2 N o data.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Index
100
103
119
136
147
202
239
335
696
696
696

Index of
Index of
wages
cost of fixed real
in
terms
food budget
of food
100

100

410
537
2034
1572
2203
2150
1915

36
38
12
21
32
32
36

(2)
(2)
(2)

Legal wages change only by decree

338

MONTHLY LABOR REVIEW— AUGUST 19 45

According to the data presented in table 3, the average monthly
money income of a worker in Rome was 596 percent greater in May
1945 than in November 1940. In the same period of time, the cost
of a fixed food budget providing 2 , 2 0 0 calories daily per consuming
unit for a family of 3.73 units, increased 1815 percent—3 times as
much as the money income. When measured by the only price
index available, that for food, the real-wage index in Rome in May
1945 was equal to that in July 1943, the month in which Mussolini
was deposed. In the year from June 1944 to May 1945 the real
value of wages tripled.

Wage Rates and Hours of New Zealand Railroad
Workers, 1935 and 19451
ANNUAL wage and’rsalary'Tates”of New Zealand railroad workers
rose substantially in the 1 0 -year period from 1935 to 1945. The
rates of 10 occupational groups for 1935 and 1945 are shown in the
accompanying table. In the latter year, the range was from £126
Os. Od. for first-year cadets to £360 16s. 5d. (plus cost-of-living allow­
ances) for sixth-year engine drivers. Cost-of-living bonuses are
included in the 1945 figures, with the exception of earnings for sixthyear engine drivers and ninth-year firemen, as noted. Minimum
wages for adults in the latter period were £225 yearly, irrespective of
length of service; £235 after 5 years of service; £260 after 6 years;
£270 after 7 years; and £275 after 1 year at £270.
Y e a r ] y R a te s o f N e iv Z e a la n d R a ilr o a d W o r k e r s, 1 9 3 5 a n d 1 9 4 5
Occupation
Engine drivers:
First year___------ ------Sixth year____________
Guards, first year_______
Firemen:
First year____________
N inth year___________
Porters, traffic laborers,
and surfacemen:
Under 2 years________
2 years or more adult
service_____________

s. d.
1 10
(3)
250 8 0

d.
9
5
6

£
241

319 8 9
2319 10 5

221

£
5.
356 7
2360 16
341 3

299 17 61
304

4

Occupation

1935

1945 i

51

10
W

4

221 10

4

Junior porters, 20 years.-.
Draftsmen:
First year _.
___
Third year__
Apprentices, fifth year 5-.
Train examiners, first
year- _ ______ _ _ _ _
Clerks, first year 6. . - . Cadets:5
First y e a r ... ____ . .
Fifth year____________

1945 1

1935

s. d.
£
247 14 2

£
s. d.
183 15 2

356 7 9
356 7 9
234 13 4

241
247
145

1 10
0 4
7 5

332
271

9 7
0 0

219
183

4
7

2
0

126
226

0 0
0 0

77 4
149 11

0
6

1 1945 rates include cost-of-living allowances, except for instances noted.
Plus cost-of-living allowances.
3 Sixth-year earnings in 1935 not available; at that time, after 8 years’ service, engine drivers’ earnings
were £288 11s. 2d.
* Ninth-year earnings in 1935 not available; after 10 years’ service) firemen’s annual rate was £241 is. lOd.
8 Plus a lodging allowance, if living away from home.
6 Previously clerks’ salaries rose by annual increments until, in the sixth year, £269 14s. was reached; a
clerk then had to wait for a vacancy before he could be promoted. In 1945 the salary scale (excluding costof-living allowances) rose by annual increments until £380 was reached in the eighth year.
f
2

The 40-hour week was introduced in September 1936 and was
maintained during the war period. Only in special cases in which
essential war production demanded it were workers asked to work
longer hours. This 40-hour week replaced a normal 1935 workweek
of 44 hours for craftsmen, train examiners, and laborers; 48 hours for
guards, shunters, gangers, and surfacemen; and 56 hours for tablet
porters.
i Data are from “The Standard,” (official organ of New Zealand labor movement, Wellington), M ay 3
1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

339

WAGE AND HOUR STATISTICS

Earnings of Foreign Employees of Oil Companies in
Maracaibo, Venezuela, 1945
AVERAGE total monthly income of foreign employees of the three
principal oil companies in Maracaibo, Venezuela, in May 1945, ranged
from $583 to $632. The employees (married males) receiving those
incomes are classed as office clerks, semi-technical men, and semiexecutives. Nearly all have the equivalent of a high-school education,
and a few may have had some college training. The total income
of the employees consisted of a basic salary, with additional compen­
sation by one company to cover currency appreciation, by another to
cover expatriation, and by two of the companies to cover cost-of-living
allowances. The various items of income received by foreign employees
of these oil companies in May 1945, are shown below:
Company
N o .l

Total average income_____________________________ $632
Basic average salary (married males)______________ 400
Compensation to cover currency appreciation________ 232
Expatriation allowance___________________________
Cost-of-living allowance__________________________ ____

Company
No. 2

Company
No. 3

$583
330

$615
400

70
183

::::
215

The foreign employee also receives a completely furnished house
suitable to accommodate his family. Monthly rentals of $39, $45, and
$15 are charged for these by companies 1, 2, and 3, respectively.
Utilities, garbage removal, and total house maintenance are furnished
free by companies 1 and 2; utilities and garbage removal are furnished
for $1.50 a month by company No. 3. In the matter of vacations,
home leave plus travel time (with passage paid by the company) is
granted by companies 1, 2, ancl 3, respectively, to the extent of 90 days
every 3 years, 42 days every 2 years, and either 60 days every 2 years
or 90 days every 3 years. The foreign workers of each of the companies
are also entitled to free hospitalization, including medicines; com­
panies 2 and 3 make a charge of $3 per day for hospital room to
members of the employee’s family. Companies 1 and 3 make no
deductions from salaries for retirement purposes; company 2 equals
the employee’s contribution toward retirement up to 13 percent
of salary. Employees of company 3 may purchase staple articles—
potatoes, rice, cheese, beans, lard, milk, peas, and corn-—at 1940
price levels (market prices on these articles have doubled since 1940);
this company operates a commissary, which, for the employee, effects
an approximate saving of 30 percent on foodstuffs and drug-store
items.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wage and Hour Regulations

?

Virgin Islands Wage Order Under Fair Labor
Standards Act1
ONE wage order, effective on August 1, 1945, established minimum
wage rates for workers in the Virgin Islands, whose conditions of
employment are subject to regulation under the terms of the Fair
Labor Standards Act of 1938. Workers engaged in commerce or
the production of goods for commerce will benefit from the minimum
wage rates which range from 25 cents to 35 cents an hour.
W a g e O r d e r U n d e r F a ir L a b o r S ta n d a r d s A c t, fo r V ir g in
A u g u s t 1, 1945
Industry
Liquor

I s la n d s W o r k e r s, E ffe c tiv e

Definition

M inimum hourly wage rate

Manufacture and blending of spirituous liquors
and all operations incidental thereto.

35 cents in M unicipality of
St. Thomas and St. John;
30 cents in M unicipality of
St. Croix.
32 cents in Municipality of
St. Thomas and St. John;
30 cents in M unicipality of
St. Croix.

Transportation of passengers and cargo by water
and activities in connection therewith, in­
cluding (but without limitation) the opera­
tions of common or contract carriers; opera­
tion of piers, wharves, and docks, including
bunkering, stevedoring, and storage; and
lighterage operations.
Property motor carrier __ Industry carried on by any common or contract
carrier engaged in transportation by motor
vehicle of property in commerce or of property
necessary to production of goods for commerce.
Wholesaling.
Wholesaling, warehousing, and other distribu­
tion of commodities, including (but without
limitation) activities of importers, exporters,
wholesalers, public warehouses, brokers and
agents, insurance agents, manufacturers’
selling agencies, and other distributors.
Communications
Transmission of message^ by wire or wireless___
Electric power...
Industry carried on by any firm or company
engaged in generation and sale of electric light
and power.

Shipping.

Meat packing
Bay oil, bay rum, and
miscellaneous manu­
facturing.
Other industries_______

1

30 cents.

30 cents.

30 cents.
32 cents in M unicipality of
St. Thomas and St. John;
25 cents in M unicipality of
St. Croix.
25 cents in M unicipality of
St. Croix.

Slaughtering of meat animals and dressing and
packing of meat, and all operations incidental
thereto in M unicipality of St. Croix.
Manufacture of bay oil and bay rum, and any 25 cents in M unicipality of
other products (except liquor) in Municipality '
St. Thomas and St. John.
of St. Thomas and St. John.
A ny industry not covered by foregoing, except 25 cents in M unicipality of
St. Croix.
banking, in Municipality of St. Croix definitions.

Information is from U . S. Department of Labor, Wage and Hour Division, Press release No. D-106,
N ew York, June 21, 1945.

340


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cost o f Living and Retail Prices

Cost of Living in Large Cities, June 1945
RETAIL prices paid by wage earners and lower-salaried workers in
large cities rose 0.7 percent between mid-May and mid-June, and in
the latter month were 2.9 percent higher than in June 1944. Higher
prices for fresh fruits and vegetables and eggs, together with continued
increases for clothing and housefurnishings brought the living costs
in June 1945 to the highest level since the spring of 1921. Since
August 1939, the month before the outbreak of war in Europe, prices
of living essentials have increased 30.8 percent. The Bureau of Labor
Statistics cost-of-living index for June 15, 1945, was 129.0 percent of
the 1935-39 average.
The cost of the family food budget rose 1.7 percent between May 15
and June 15; this was the second consecutive month that food prices
had gone up by more than l){ percent. Fresh fruit and vegetable
prices continued to advance sharply (6.5 percent), as larger than sea­
sonal increases were reported for oranges, lettuce and sweetpotatoes,
and large contraseasonal movements were reported for cabbage and
onions. With a sharp increase in farm prices for cabbage (which is not
under price control) and the removal of OPA retail price control
margins, the average price rose from 5.8 cents in mid-May to 9.0 cents
in mid-June. Prices for onions rose 24 percent. Egg prices advanced
3.1 percent, beginning their usual upward seasonal movement. Al­
though prices of meats did not change during the month, meats were
found in fewer stores in mid-June than at any time in the past 15
months. More than 85 percent of the independent grocers had no veal
or pork, and three-fourths had no beef or lamb. (See p. 352.) The
average cost of all food at retail was 51 percent above the level of
August 15, 1939, but 1.3 percent lower than in May 1943, the highest
level for food during the war.
Clothing prices moved upward 0.6 percent between May and June,
the largest advance in any month so far this year. Stocks of medium
and inexpensive apparel were reported to be at the lowest point during
the war. There were sharp advances in the prices of tropical-weight
wool suits in some cities, reflecting both the disappearance of lowerpriced lines and the reappearance of prewar quality suits at prices
considerably higher than when last stocked. This season’s prices for
men’s cotton slacks and women’s cotton frocks followed the upward
movement of most cotton apparel. Average prices of business shirts,
pajamas, shorts and housedresses also increased but supplies were
limited, although some retailers in most of the large cities reported
receiving small supplies of low-price preticketed merchandise produced
under the WPB-OPA low-cost clothing program. Work clothing,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

341

342

MONTHLY LABOR REVIEW— AUGUST 1945

still hard to get, was higher in price and men’s straw hats cost more
than in June 1944.
Prices of housefurnishings rose 0.3 percent from mid-May to midJune. The effect of the new OPA formula (MPR No. 580) for estab­
lishing price ceilings at the retail level was again reflected, as in Alay,
in numerous changes in prices of housefurnishings. Average costs
for living-room and bedroom furniture, cook stoves and dinnerware
were higher, despite many small price decreases in a number of cities.
Fuel, electricity, and ice costs showed little change during the month
ending June 15. Rate reductions lowering the average cost of gas to
domestic consumers in Atlanta and a rebate on most June electric bills
in Portland, Oreg., were offset by price increases for bituminous coal
in a few cities.
On the average, there was no change in rents in large cities. How­
ever, rent costs varied slightly in a number of cities, with the largest
increase in Scranton (0.6 percent from December 1944 to June 1945)
where rents are not under OPA price control. Average rents in that
city were still below the 1935-39 average. The largest decrease
(0.6 percent) occurred in Portland, Oreg., for the corresponding period.
The shortage of bousing continued to be acute, especially in war
centers.
The cost of miscellaneous goods and services remained relatively
stable with a 0.1-percent increase. Prices for newspapers in Cleve­
land, Milwaukee, and Portland, Oreg., were raised and the cost of
medical services, men’s haircuts, and beauty shop services rose in a
few cities.
In connection with the tables here given 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 expenditures of families who
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 “living costs”-—that is, in the total amount
families spend jor living. Income taxes and bond subscriptions are
not included.
The indexes in the accompanying tables are based on time-to-time
changes in the cost of goods and services purchased by wage earners
and lower-salaried workers in large cities. They do not indicate
whether it costs more to live in one city than in another. The data
relate to the 15th of each month, except those for January 1941, in
tables 1 and 2. For that month they were estimated for January 1
(the date used in the “Little Steel” wage formula of the National
War Labor Board), by assuming an even rate of change from Decem­
ber 15, 1940, to the next pricing date. The President’s “hold-the-line”
order was issued April 8, 1943. The peak of the rise which led to
that order was reached in May, which is, therefore, used for this
comparison.
Food prices are collected monthly in 56 cities during the first four
days of the week which includes the Tuesday nearest the 15th of the
month. Aggregate costs of foods in each city, weighted to represent
food purchases of families of wage earners and lower-salaried workers

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

343

COST OF L IV IN G AND RETA IL PR IC E S

have been combined for the United States with the use of population
weights. In March 1943, the number of cities included in the food
index was increased from 51 to 56, and the number of foods from 54 to
61. Prices of clothing, housefurnishings, and miscellaneous goods and
services are obtained in 34 large cities in March, June, September, and
December. In intervening months, prices are collected in 2 1 of the
34 cities for a shorter list of goods and services. Rents are surveyed
semiannually in most of the 34 cities (in March and September, or in
June and December). In computing the all-items indexes for individ­
ual cities and the rent index for the average of large cities, because of
the general stability of average rents at the present time, the indexes
are held constant in cities not surveyed during the current quarter.
Prices for fuel, electricity, and ice are collected monthly in 3 4 large
cities.
T a b l e 1. — C o st o f L iv in g in L a r g e C itie s a s o f J u n e 1 9 4 5 a n d E a r lie r M o n th s
June
1945

May
1945

June
1944

M ay
1943

M ay 1942

Jan. 1941

Aug. 1939

HoldMax.
th e-line Gen.
order Price Reg.

“ Little
Steel”
decision

Month be­
fore war in
Europe

Group
This
Last
month month

Last
year

Indexes (1935-39=100.0)
All items________________ _ . . .
F o o d .. ___ _
. . . ______
Clothing____________ _ . _
Rent________ _ __________
Fuel, electricity, and ice
Gas and electricity.. . .
Other fuels and ice______
Housefurnishings__ ________
Miscellaneous. __________ .

129.0
141.1
145.4
108.3
110.0
95.2
124.5
145.8
124.0

i 128.1
138.8
i 144.6
110.0
95.2
124.4
i 145.4
i 123. 9

125.4
135.7
138.0
108.1
109.6
95.6
123.2
138.4
121.7

125.1
143.0
127.9
108.0
107.6
96.1
118.7
125.1
115.3

116.0
121.6
126.2
109.9
104.9
96.6
112.9
122.2
110.9

100.8
97.6
101.2
105.0
100.8
97.5
104.0
100.2
101.8

98.6
93.5
100.3
104.3
97.5
99.0
96.3
100.6
100.4

Percent of change to June 1945
All items______________________
Food________ _ . . . __ .
C lo th in g .__________ x ___
Rent.
Fuel, electricity, and ice..
Gas and e lectricity _____
Other fuels and ice .
Housefurnishings___________
Miscellaneous_____ ______ _
i Revised.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

+ 0 .7
+ 1 .7
+ .6
0
0
+ .1
+ .3
+ .1

+ 2 .9
+ 4 .0
+ 5 .4
+ .2
+ .4
- .4
+1.1
+ 5 .3
+ 1 .9

+ 3.1
- 1 .3
+13.7
+. 3
+ 2 .2
-.9
+ 4 .9
+16.5
+ 7 .5

+11.2
+16.0
+15.2
- 1 .5
+ 4 .9
- 1 .4
+10.3
+19.3
+11.8

+28.0
+44.6
+43.7
+ 3.1
+9.1
- 2 .4
+19.7
+45.5 *
+21.8

+30.8
+50.9
+45.0
+ 3.8
+12.8
- 3 .8
+29.3
+44.9
+23.5

344

M ONTHLY

LABOR R E V IE W — AUGUST

T a b l e 2 .— P e r c e n t o f C h a n g e in C o st o f L iv in g f r o m
b y C itie s

1945

S p e c ifie d D a te s to J u n e 1 9 4 5 ,

Percent of increase in June 1945 compared with—
May
1945

June
1944

. M ay
1943

M ay
1942

Jan.
1941

Aug.
1939

Last
month

Last
year

Holdthe-line
order

Gen. Max.
Price
Reg.

“Little
Steel’’
decision

M onth
before
war in
Europe

City

Average

__

_ _ __

__

0.7

2.9

3.1

11.2

28.0

30.8

1.5
.6
1.3
1.3
.2
1.1
.5
0
1.3
.4
.6
.2
.6
.9
.4
1.2
.8
.6
.4
1
.7

4.2
2.1
3.0
2.5
2.7
2.2
2.0
3.0
3.3
2.5
2.9
2.9
2.0
3.0
2.4
3.2
2.5
2.7
2.0
2.5
3. 3

3.7
5. 1
2.0
.5
3.0
4.5
3.4
3.2
2.7
1.8
3.8
3.7
2.3
4.4
2.4
4.5
2.7
3.0
3.4
1.9
3.9

12.4
11. 4
10.7
7.4
10.0
11.6
11.4
11.1
10. 1
9.0
11.4
10.5
7.5
14.5
11.4
12.7
10.2
12.8
12.8
8.9
12.0

32.0
30.1
26.6
27.0
26.7
29.9
29.7
28.4
29.5
24.2
29.2
27.3
22.4
28.4
28.8
29.0
20.1
30.4
34. 5
29.3
28.6

34.7
34.2
29. 2
31.4
29.9
33.0
32.3
30.2
32.8
25.8
28.9
29.9
25.0
31.0
30.7
32.6
29.9
33.6
37.4
31. 6
30.3

Baltimore, Md
__ _____ __
Birmingham, Ala
Boston, Mass
Buffalo', N . Y
__ _______
Chicago, 111
___ _____ - -Cincinnati, Ohio . _____
_ ___
Cleveland, Ohio _ ______________
Denver, Colo
_
Detroit, Mich
Houston, Tex
.
...
_
Kansas City, Mo
Los Angeles, Calif
Minneapolis, Minn
. .
N ew York, N . Y . ___ ___ _ , _
Philadelphia, Pa
___...
Pittsburgh, P a __ _
___ . . .
St. Louis, Mo
San Francisco, C a lif.. . . .
Savannah, Ga
___
Seattle, Wash
. _
Washington, D . C.
. ... .

T a b l e 3 .— P e r c e n t o f C h a n g e in C o st o f L iv in g M a y to J u n e 1 9 4 5 , b y C itie s
Percent of change, M ay to June 1945 in cost of—
City

Average______

_____________

Atlanta, Ga__
_ _ _________
Baltimore, M d.
Birmingham, Ala . . . . .
___
Boston, M ass____ _ . . . . . . .
Buffalo, N . Y ____ . . ---------Chicago, 111___
Cincinnati, Ohio______ _______
Cleveland, Ohio _____ ____
Denver, Colo________ ______
Detroit, Mich ______ _______
Houston, T ex ... ______ ______
Indianapolis, Ind
Jacksonville, Fla
Kansas City, M o_____________
Los Angeles, C alif.. ______ . . .
Manchester, N . H
Memphis, Tenn
Milwaukee, Wis
Minneapolis, M inn___________
Mobile, Ala
_
_____
N ew Orleans, La
N ew York, N . Y
__ ___..
Norfolk, Va
Philadelphia, P a ...
________
Pittsburgh, Pa ____________
Portland, M aine. ______ ___
Portland, O reg__
Richmond, Va _
__
St. Louis, Mo
. __________
San Francisco, Calif____ . . . .
Savannah, Ga_____ __________
Scranton, P a ___
Seattle, Wash_______________
Washington, D. C _ _ ____ ...

All items
+ 0 .7
+ 1 .5
+ .6
+ 1 .3
+ 1 .3
+ .2
+ 1.1
+ .5
0
+ 1 .3
+ .4
+ .6
+ .2

+ .6
+ .9
+• 4
+ 1.2

+ .8
+ .6
+ .4
-. 1
+ .7

Food
+ 1 .7
+ 1 .3
+ 3.1
+ 1 .6
+ 2 .9
+ 2 .3
+ .5
+ 2 .3
+ 1 .2
4*. 1
+3.1
+ .8
+ 1.7
+ .8
+ 1 .5
+• 2
+ 2 .6
+ 2 .0
+ 2.1
+ 1 .4
+ .7
- .4
+ 1 .8
+ .7
+ .8
+ 3 .0
+ 1.3
+ .3
+ 1 .2
+ 1.6
+ 1 .2
+ .9
+ 3.4
- .3
+ 1.4

Clothing
+ 0 .6
+1.1
+ .1
+. 7
+ 1 .8
+ .1
+ .5
+ .1
4”*1
+ 1 .0
+ .6
+ .1
+ .3

+ .4
+ 1 .0
-.3
+ .2

+ .4
+ .6
+ .2
+ .4
+ .8

Fuel, electric­
ity and ice

Housefurnishings

0.0

+ 0.3

+0.1

+ 1.1
0
+ .3
+ 1.9
+ .1
+ .6
0
+ .6
1 - 1 .2
+ .3

+ .1
0
-. 1
0
0
+ .2
+ .2
-.2
+ .1
0

+ 1.7
+ .6

+ .2
0

0

0

- 1 .1
+ .1
0
0
+ .2
0
0
0
0
-.1
0
+ .1
0
0
0
+ .2
0
+ .5
+ .4
+ .5
+ .2
0
0
+ .3
- .7
-. 1
+ 2 .6
0
+ .1
0
0
0
0
+ .4

Miscel­
laneous

+ .4

+ .5

+ .1
+ .1

+ .2
0

+ .4
+ .5
+ .1

0
+ .1
0

+ .1
+ .6

0
+ .2

i
Decrease reflects downward adjustment in costs of some housefurnishing articles of prewar quality,
based on additional information obtained after these goods returned to retail markets in 1944 and spring
of 1945.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

345

COST OF L IV IN G AND RETA IL PR IC E S

T able 4.-—P e r c e n t o f C h a n g e in C o st o f L iv in g , M a r c h to J u n e 1 9 4 5 , b y G r o u p s o f Ite m s
Percent of change, March-June 1945, in cost of—
City

Average___________________
Atlanta, Ga- ________ _____
Baltimore, M d . . . . . . . .
Birmingham, Ala_________
Boston, M ass______________
Buffalo, N . Y ______________
Chicago, 111.. . . . . _
.
Cincinnati, Ohio
Cleveland, Ohio________ _
Denver, Colo
_______ ____
Detroit, M ich______________
Houston, Tex
Indianapolis, I n d _________
Jacksonville, Fla . . . ______
Kansas City, M o. . . . . . . . .
Los Angeles, Calif_________
Manchester, N . H
Memphis, Tenn
Milwaukee, W is___ ________
Minneapolis, M inn_____ . . .
Mobile, Ala. . _______ ____
N ew Orleans, La___________
N ew York, N . Y ____ _____
Norfolk, Va________________
Philadelphia, Pa . . . . . . . . .
Pittsburgh, Pa_____________
Portland, M aine__________
Portland, Oreg_____________
Richmond, Va
St. Louis, Mo
San Francisco, Calif
Savannah, G a _____________
Scranton, Pa. _______ _____
Seattle, Wash
Washington, D . C __________

All
items

Food

Cloth­
ing

Pent

+L7

+ 3 .8

+ 1 .2

0

+ .9
+ 2 .4
+ 1 .5
+ 2.1
+ 1 .7
+1-7
+ 2 .3
+ 2 .0
+ 1.9
+ 2 .7
+ 1 .5
+ 1 .6
+ 1.5
+ 1 .6
+ 1.0
+ 1.9
+ 1 .7
+ 2 .3
+ 1.2
+ .7

+ 2 .3
+5.1
+ 2 .8
+ 4 .7
+ 3 .7
+ 3 .9
+ 4 .8
+ 4 .9
+ 3 .7
+ 5 .9
+ 3 .5
+ 4 .0
+ 3 .3
+ 3 .1
+ 1.5
+ 3 .5
+ 3 .7
+ 5 .4
+ 2 .9
+ 1.4
+ .9
+ 4 .2
+ 1.4
+ 3 .4
+ 5 .5
+ 2 .9
+ 3.1
+ 1.9
+ 4 .3
+ .9
+ 1.6
+ 6 .3
+ .7
+ 3 .5

+ 2 .0
+ .8
+ 1.4
+ 2 .3
+ 1.0
+ 1.7
+■ 9
+ 2 .0
+ .7
+ 3.1
+ .5
+ 2 .0

Fuel, electric­
ity and ice

+ .6
+ 1 .4
+ .2
+ .1
+ 1 .4 1 + .1
+ 2 .7
1 + .2
+ .6
i0
+ 1.4
i - .2
+ .3
i0
+• 1
+ 3 .0
‘ + •2
+ 1.1
i -. 1
+ .1
+ • ^ 1 +• 2
i -.2
+ 1.2
+ .9
‘ + •2
+ .9
+ .7
0
+ .1
+ .7
+ .3
‘ +■1
i -. 1
+ .3
10
+ 1.4
+ 1.7
> + .l
+ .4
1- . 1
+ .2
-. 2
+ .3
i -.6
+■4
-. 1
+ 1 .0
+ 1 .0
+ .5
1+ • 2
>+. 6
+ .7
+ 1.4
i0
+ 3 .8

Housefurnishings

Miscella­
neous

0

+ 0 .9

+ 0.3

-.5
-.5
+ 2 .6
-.5
-2 .2
+ .7
+ 1.1
+ 1.0
+ .3
+ .2
0
+ 1.1
+ .1
+ 1 .5
0
+ .3
+ .8
+ .5
+• 4
+ 1.0
+ .2
-.2
+ .5
- .9
- .1
- .8
+ 3 .2
+ .9
+ .5
+ .2
0
0
+ 1.0
-.1

+ 3 .4
+ 1 .9
- .4
+ 1 .3
+ 1 .9
+ .6
+ 1.5
+ 1 .4
+ .3
2-. 1
+■2
3 - 1 .4
+ 2 .3
+ 3 .3
+ 1 .3
+ 1 .5
+ 1 .2
+ .8
+ .1
+ •1
(3)
+ .9
0
0
+ 1.6
+ .1
+ .7
+ 1 .4
+ 1.5
+ .6
+ 2 .6
+- 8
+ 2 .0
+ .1

- .4
+ .2
+ 1 .2
- .2
0
+ .1
- .2
+■2
+ 1 .6
+■3
+■4
+ .6
+• 1
+ .2
+ 1.0
+ .3
+ .2
+ .4
+ .3
0
+ 1.5
+ .6
+■2
+ .3
+• 1
-. 1
+ 1 .3
0
0
+ .6
-.2
+.3
-. 1
+ .9

i Change from December 1944.
i Decrease reflects downward adjustment in costs of some housefurnishing articles of prewar quality, based
on additional information obtained after these goods returned to retail markets in 1944 and spring of 1945.
3 N ot available. Insufficient data.

T able 5 .— I n d e x e s o f C o st o f L iv in g , A p r i l , M a y , a n d J u n e 1 9 4 5 , b y G r o u p s o f I te m s
[Some indexes for April and M ay revised]
Indexes (1935-39=100) of cost of—
City

Average, large cities:
April
M ay
_______
June______________ ____
Atlanta, Ga.:
April
ATay
June
_____ _____
Baltimore, Md.:
April
May
Tunc
_____
Birmingham, Ala.:
April
______
M ay
_________
June
- ___ - ________
Boston, Mass.:
April
_ _________
TVTa,y
______ _
June___________________
See footnotes at end of table.
65 6 2 4 3 — 45------ 11


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

All
items

Food

Cloth­
ing

127.1
128.1
129.0

136.6
138.8
141.1

144.1
144.6
145.4

129.9

137.3
138.3
140.1

130.0
131.0
132.9

Rent

HouseFuel, electric­
furnishings
ity, and ice

Miscel­
laneous

109.8
110.0
110.0

144.9
145.4
145.8

123.8
123.9
124.0

141.5

115.9
116.6
115.3

145.3

130.8

144.9
146.9
151.4

147.2
148.2
149.8

108.7
108.7
108.8

150.1
150.7
152.3

123.4
123.4
123.5

131.0
131.4
132.2

141.1
141.4
143.7

141.6
141.7
141.8

122.6

104.8
107.5
107.5

126.6
126.7
126.7

123.0
123.9
125.5

130.8
133.0
136.8

140.8
141.7
142.7

105.1

120.2
120.1
120.1

139.5
139.4
139.4
O
143.8
144.4
144.9

108.3

117.7
117.6
117.5

346

M ONTHLY

LABOR R E V IE W — AUGUST

19 4 5

T able 5.— I n d e x e s o f C o st o f L iv in g , A p r i l , M a y , a n d J u n e 1 9 4 5 , b y G r o u p s o f I te m s —

Continued
Indexes (1935-39=100) of cost of—
City

Buffalo, N . Y.:
April
M ay. . . .
June------------------------Chicago, 111.:
April __ ____
M ay______
_
June.....................
Cincinnati, Ohio:
April___________ .
M ay______
...
June_____
Cleveland, Ohio:
A p r il_____
..
M ay____ . . .
June_______ _______
Denver, Colo.:
April_________
M ay_________
June. ._ . . .
Detroit, Mich.:
April___________
M ay___________
J u n e.. _____ .
Houston, Tex.:
April_____________
M ay_____________
J u n e.. . . .
_. _
Indianapolis, Ind.:
April__ . _____
M ay____________
J u n e ... _________
Jacksonville, Fla.:
April.
M ay. ______________
June_________ . . . ._
Kansas City, Mo.:
April. _ _ .
M a y ... ____________ .
June_____________
L.os Angeles, Calif.:
A pril... ____
M ay_______
June_____________
Manchester, N . H.:
April_______
M ay_________________
June__________________
Memphis, Tenn.:
April.
M ay____ _______
J u n e.. _.
Milwaukee, Wis.:
April_____________ ._
M ay______ . ________
June_____ _ . . .
Minneapolis, Minn.:
April__________
M a y . . . ___ _
June_____ . . .
Mobile, Ala.:
April__________________
M ay___ ____ _ . ___
June___ . . .
New Orleans, La.:
April____ . __________
M ay_______ _______
J u n e.. _____
New York, N . Y.:
April. _
___
M a y .. ______ _______
June______ _____ _____
Norfolk, Va.:
»
April. . . . . .
M a y ... ______ ______
June . . . _____
...
See footnotes at end of table


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

All
items

Food

Cloth­
ing

Rent

127.1
127. 8
129.4

134. 7
137.1
140.2

141.8
142. 2
144.8

115.0

106. 9
104 6
104. 8

138 7
138 8
141. 5

125 7
125 7
125!7

126. 5
127.9
128.2

136.2
139.5
140.2

139. 5
139. 7
139.9

114. 8

105. 2
105. 9
105.9

138 0
138 6
138.8

122 3
122 3
122]3

127.0
128.0
129.4

135.0
137. 5
140.6

146.4
146.8
147. 6

106. 2
107. 4
107. 4

142 3
142 9
143.8

125 n
124 8
125.0

130.1
131.7
132.3

140.7
144. 6
146.4

145. 5
145.4
145.5

115.7

112. 5
113. 6
113.6

144 3
145 9
145.9

122 0
122 0
122! 8

126.5
128.4
128.4

137.9
141.8
142.0

135.8
135. 7
135.9

109.5

104. 1
104.4
104.4

154 9
155. 0
155.8

122 0
124 3
124.1

127.8
129.1
130.8

132.1
135.0
139.2

141.6
142.6
144.0

115.1

112.8
113.4
113.3

157 1
158 0
i 156.1

129 0
129 8
129.9

125.6
126. 2
126.7

136.7
138.4
139. 5

139.6
139.8
140.6

91.1
91.1
91.1

144. 0
143 7
144.1

123 5
123 8
123.8

129.5

133.3
135.1
137.4

137.6

115.8

112.2
113.3
113.4

i 148.0

127.4

135.6

145.5
146.4
147.5

142.0

113.4

113.9
114.0
114.0

151.1

137.3

125.6
126.3
127.1

131.5
132.4
134.4

144. 4
145. 7
145.9

109.6

110.2
111. 9
111.9

132 2
133 3
135.5

120 4
120 5
126! 7

130.0
130.3
130.5

144.4
144.5
144.8

141.6
141.6
142.0

110.9

92.5
92. 5
92.5

144 0
144 1
145!0

120 7
127 5
1 2 7 !5

131.3

132.7
133.9
137.4

147.8

127.6
127. 7
127.9

148.4

1 2 2 .6

132.0

145.2
146.9
149.8

148. 7

105.5
106. 3
106.3

139.7

1 2 0 .2

127.0

134.3
138.1
141.0

135.9

109.5
109. 5
110.0

143.6

1 2 0 .0

123. 2
123.9
124.6

129.5
131.2
133.0

140.2
140. 5
141.1

102. 6
102 6
103.0

138 8
138 9
138.9

123 0
123 0
123.0

129.3

144.9
144.9
145.9

138.6

115.2

102. 7
103. 2
103.7

137.1

119.8

132.4

152.5
153.0
152.4

139.1

107.2

100.1
100. 0
100.2

(2)

121.8

127.4
128.5
129.7

136.8
139.6
142.1

149.8
150.1
151.6

103.5

114 1
113. 9
113.9

134 5
134 9
135.4

126 0
120 0
126. 6

132.3

140.1
142.4
143.4

143.8

ÌÒ9 2

119. 7
120.3
120.3

142.5

131.5

108.8

Fuel, electric­
House
ity, and ice
furnishings

Miscel­
laneous

347

COST OF L IV IN G AND RETA IL P R IC E S
T

able

5 .— I n d e x e s o f C o st o f L iv in g , A p r i l , M a y , a n d J u n e 1 9 4 5 , b y G r o u p s o f I te m s —-

C o n tin u e d
Indexes (1935-39=100) of cost of—
City

Philadelphia, Pa.:
April
M ay
June
Pittsburgh, Pa.:
April
M ay
June
Portland, Maine.:
April

_______

-

__

All
items

Food

Cloth­
ing

126.0
127. 3
127.8

134.2
137.7
138.8

145. 4
145.9
145.5

128. i
128.9
130.5

135.4
137.1
141.2

166. 0
166.4
166.7

126.7

131. 3
133.4
135.2

145. 6

135.5

147.4
149. 9
150.3

May

June
Portland, Oreg.:
April

- -

June
_ _ _ _
Richmond, Va.:
April

___

142.6

Rent

HouseFuel, electric­
furnishings
ity, and ice

Miscel­
laneous

109.4
109.2
109.5

144.7
144.1
144.2

121.0
120.8
121.1

107.5

112.0
112.7
111.9

145.7
147.6
147.8

120.0
120.0
120.0

106. 4

119.2
118.3
118.2

141.2

122.5

114.7

117.1
117.2
120.3

146.1

130.4

June
St. Louis, Mo.:
April
M ay
- - _ __
June
San Francisco, Calif.:
April
__

125.2

133.2
134. 5
136.1

144.4

108.6
109.6
109.6

144.7

118.9

125. 3
126.4
127.4

139.0
141. 7
144.0

140.1
140.5
141.0

107.3
107.7
107.8

125.8
126.5
127.0

119.9
119.9
119.9

June
Savannah, Ga.:
April
M ay
June
Scranton, Pa.:

132.8
131. 9
132.7

148.4
145. 7
147. 5

142.1
142. 7
143.5

92.6
92.8
92.8

130.5
130.7
131.3

133. 0
133.0
133.1

135.2
135.8
136.4

150. 8
151.7
153.1

143.9
144.2
144.5

115. 9

113.0
113.0
113.0

153.6
156.1
156.3

129.4
129.7
129.7

128.2

136. 4
139.8
144.5

147.9

97.8

111.0
111.0
111.0

141.7

115.6

131.4
132.1
132.0

143.0
144.4
144.0

144.5
145. 1
145.7

103.9
104.9
104.9

142.6
145. 1
145.3

132.3
132. 2
132.2

126.4
127.6
128.5

137.8
139.7
141.6

151.3
155.0
156.3

109.1
109.2
109.6

139.9
139.9
140.8

127.4
128.2
128.4

May

May

_____
_ __ _ _

M ay
June
____ _ ____ _
Seattle, Wash.:
April
May
June
Washington, D . C.:
April
__ --

M a.y

June __

__

100.3

i Decrease reflects downward adjustment in costs of some housefurnishing articles of prewar quality,
based on additional information obtained after these goods returned to retail markets in 1944 and spring of
1945.
'¿Not available. Insufficient data.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

/

348

M ONTHLY

LABOR R E V IE W — AUGUST

19 45

T able 6. — I n d e x e s o f C o st o f L iv in g in L a rg e C itie s , 1 9 3 5 to J u n e 1 9 4 5
Indexes 1 (1935-39=100) of cost of—
Year and month
All
items
1935_________________________
1936_________________________
1937_________________________
1938_________________________
1939_________________________
1940_________________________
1941_________________________
1942_________________________
1943_________________________
1944_________________________
J a n .15__________________
Feb. 15__________________
Mar. 15_
. ..
Apr. 15 ..
M ay 15___
....
June 15.._ ______________
July 15 ____ . . . _ _____
Aug. 1 5 _______ ________
Sept. 15________________
Oct. 15__________________
N ov. 1 5 . . .
. . .
Dec. 15_. . . .
_.
1945:
Jan. 15..
Feb. 15____________ ____ _
Mar. 15._ . .
_____ . . .
Apr. 15_____ ___________
M ay 15__________________
June 15 _______ ________

Food

Clothing

Rent

Fuel,
electric­
ity, and
ice

Housefurnish­
ings

Miscel­
laneous

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)
(?)
108.3

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

127.1
126.9
126.8
127.1
128.1
129.0

137.3
136.5
135.9
136.6
138.8
141. 1

143.0
143.3
143.7
144.1
144.6
145.4

(2)
(2)
108.3
(2)
(2)
108.3

109.7
110.0
110.0
109.8
110.0
110.0

143.6
144.0
144.5
144.9
145.4
145.8

123.3
123.4
123.6
123.8
123.9
124.0

1 Based on changes in cost of goods purchased by wage earners and lower-salaried workers.
2 Rents not surveyed in this month.

Retail Prices of Food in May and June 1945
PERCENTAGE changes in retail food costs in May and June 1945
as compared with previous months are shown in table 1 .
T able 1 .— P e r c e n t o f C h a n g e in R e ta il C o sts o f F o o d in 5 6 L a r g e C itie s C o m b in e d ,1
b y C o m m o d ity G r o u p s , in S p e c ifie d P e r io d s
M ay 15,
1945, to
June 12,
1945

Apr. 17,
1945,to
M av 15,
1945

June 13,
1944,to
June 12,
1945

___

+ 1 .7

+ 1 .6

Cereals and bakery products.. _ ___ ___
M eats. _______ _
_ _______ . . . . . .
Beef and veal.
_ . . . _________ _
Pork_______ ________ . ______ . . .
Lamb. . . . .
_
. . .
Chickens_____ _ _______________ . .
Fish, fresh and canned______________
Dairy products ___________ ____ . . . .
Eggs--------------------------------------------------Fruits and vegetables_________ _________
Fresh______ . . . ______ _________
Canned______________________ ____
Dried__________ ________________
Beverages__ _ ___________ ______
Fats and oils________ _____ ____________
Sugar and sweets______ _ . __________

+ .1
0
-. 1
+ .1
+. 1
+ .3
- 1 .4
-. 1
+3.1
+5. 5
+ 6 .5
-. 1
+ .2
0
0
-. 1

+• 1
+ .6
0
+ .1
0
+ 1 .3
+3. 2
0
+ .6
+ 5 .3
+ 6 .4
+ .2
+ .4
0
+ .1
+ .1

Commodity group

All foods_._ _______

._ _ _ . . .

M ay 18,
1943, to
June 12,
1945

Jan. 14,
1941,to
June 12,
1945

Aug. 15,
1939,to
June 12,
1945

+ 4 .0

-1 .3

+44.3

+50.9

+ .6
+ 1 .4
-.3
+ .5
+. 9
+ 1 .8
+ 9.6
-. 1
+12.4
+10.7
+12.5
+• 7
+ 2.9
+ .2
+ .6
-. 1

+ 1 .4
- 4 .8
- 9 .7
-1 0 .3
-4 .0
+ 6 .2
+ 7 .5
- 2 .6
+ 2.1
+ .9
+ .9
-.8
+ 6 .8
+ •1
- 1 .9
-.9

+15.0
+30.2
+8. 3
+30.8
+37.8
+61. 3
+81.6
+26.9
+49.0
+106. 4
+122. 4
+42.3
+69.5
+37.1
+54. 3
+32.6

+16.8
+37.5
+19.0
+28.0
+37.7
+65.8
+116.5
+43.3
+60.0
+108.4
+123. 8
+42. 0
+86.9
+31.3
+46.6
+32.2

1 The number of cities included in the index was changed from 51 to 56 in M ar+i 1943, with the necessary
adjustments for maintaining comparability. At 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

349

COST OF LIVING AND RETAIL PRICES

T able 2.-—Indexes of Retail Costs of Food in 56 1 Large Cities Combined, 2 by Commodity

Groups, on Specified Dates
[1935-39 = 100]
1941

1939

Jan. 14

Aug. 15

1943

1944

1945
(/om modity group

June 123 May 15 Apr. 17 June 13 M ay 18
All foods

_ - ________

Cereals and bakery products _ ____
M eats
. ________ ___ Beef and veal _ ____- - ___
Pork
.
_______ - . -Lamb
_ ______
- - ___
Chickens _ _ _____
- _____
Fish, fresh and canned
D airy products
. . ______ _ - __
E ggs .
.
. _______ ______
Fruits and vegetables
_ _________
Fresh
__ _
__ ____
Canned
_ _ _ _
. .
__
___
Dried __________
Beverages ________ _________ _ _ _ __
F ats and oils _ _ _ _ _______ _
Sugar and s w e e t s .,________________

141.1

138.8

136.6

135.7

143.0

97.8

93.5

109.1
131.6
118.5
112.6
136.0
156.8
215.6
133.4
145.1
192.6
207.7
130.1
168.8
124.6
123.9
126.4

109.0
131.6
118.6
112.5
135.9
156.3
218.7
133.5
140.7
182.5
195.0
130. 2
168.5
124. 6
123.9
126.5

108.9
130.8
118.6
112.4
135.9
154.3
211.9
133.5
139.9
173.3
183.3
130.0
167.9
124.6
123.8
126.4

108.4
129.8
118.8
112.0
134.8
154.1
196.7
133.5
129.1
174.0
184.6
129. 2
164.1
124.3
123.1
126.5

107.6
138.3
131.2
125.5
141.6
147.6
200.5
136.9
142.1
ISO. 8
205.8
131.1
158.0
124.5
126.3
127.6

94.9
101. 1
169.4
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 with the use of popula­
tion weights.
3 Preliminary.

T able 3. —Average Retail Prices of 78 Foods in 56 Large Cities Combined,1 M ay and

June 1945, Compared With Earlier Months
1944

1945

1941

1939

Article
June 122 M ay 15 Apr. 17 June 13 J a n .14 Aug. 15
Cereals and bakery products:
Cents
Cereals:
64.3
____10 pounds..
Flour, wheat____________
15.7
Macaroni________________ . . . .p o u n d _
23.3
Wheat cereal3 ___ ____ _____28 ounces _
6.7
C ornflakes,. _____ _ ___ ______ 8 ounces _
6.4
Corn meal ____
_ ____ ________ pound __
12.9
Rice 3_____ ___
__ ____________ do___
10.4
Rolled oats______ _______ __________ do___
12.3
Flour, pancake 3_______ _____ 20 ounces..
Bakery products:
8.8
________ pound __
Bread, white _ _ _ _ _ _
9.7
Bread, whole-wheat______ __________ do___
9.9
Bread, rye_______________ __________ do___
28.6
Vanilla cookies_________ ___________ do
18.9
Soda crackers__ __________ __________ do___
M eats:
Beef:
40.0
Round s te a k ____________ __________ do___
32.1
Rib roast________________ __________ do___
27.6
Chuck r o a s t______ __ ___ __________ do___
29.0
Stew m e a t3________
___ __________ do___
36.5
Liver____________________ __________ do___
27.2
Hamburger____________ __________ do____
Veal:
43.1
Cutlets________________ . __________ do___
34.3
Roast, boned and rolled 3__ __________do___
Pork:
36.8
C h o p s ..______________ __ __________ do___
41.0
Bacon, s lic e d ________ _ __________ do___
49.0
Ham, sliced______________ __________do___
34.4
Ham, w hole.. ___________ __________ do___
22.1
__________
do___
Salt pork______ _____ _
22.1
Liver 3___________ _______ __________ do___
38.4
Sausage3. . ---------------- . . . __________ do___
33.8
Bologna, b ig 3
----------- __________ do___
Lamb:
39.6
Leg____________________ . _________ do___
45.0
Rib chops________________ _________ do___
See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cents
64.2
15.8
23.3
6.6
6.4
12.8
10.3
12.3

Cents
64.3
15.8
23.2
6.5
6.4
12.8
10.3
12.3

Cents
64.9
15.7
23.2
6.5
6.2
12.9
9.4
12.1

Cents
41.4
13.8
23.5
7.1
4.2
7.9
7.1
«

Cents
35.8
14.0
24.2
7.0
4.0
7.5
7. 1
(4)

8.8
9.6
9.9
28.7
18.9

8.8
9.6
9.9
28.9
18.9

8.8
9.7
9.9
28.7
18.9

7.8
8.7
9.0
25.1
15.0

7.8
8.8
9.2
(5)
14.8

40.2
32.6
27.8
29.3
36.6
27.3

40.4
32.7
28.0
29.3
36.9
27.4

41.6
33.7
28.9
31.5
37.3
28.0

38.6
31.5
25.2
(4)
(5)
(4)

36.4
28.9
22.5
m
(*>

43.4
34.5

43.6
34.6

45.1
35.0

45.2
(4)

42.5
(4)

36.9
40.9
49.2
34.5
22.2
22.0
38.0
33.9

36.9
41.0
49.3
34.5
22.1
22.1
38.1
33.9

37.3
41.2
51.1
35.6
22.4
22.0
38.2
34.2,

29.1
30.1
45.1
26.2
16.7

30.9
30.4
46.4
27.4
15.4
(4)
(4)

39.7
45.1

39.9
45.4

40.1
45.3

27.8
35.0

«

(4)
6)

w

(4)

27.6
36.7

350

M O N TH LY

LABOR R EVIEW — AUGUST

19 45

T able 3.— Average Retail Prices of 78 Foods in 56 Large Cities CombinedJ Muy and
June 1945, Compared With Earlier Months— Continued
1944

1945

1941

1939

Article
June 123 M ay 15 Apr. 17 June 13 Jan. 14 Aug. 15
Meats—C ontinued.
Cents
Poultry: Roasting chickens. _________ pound _
47.3
Fish:
Fish (fresh, frozen)_____ ___________ do___
(•)
23.6
Salmon, pink___ ________ ____16-ounce can__
Salmon, red 3
___________ do___
40.3
Dairy products:
B utter_____________________ ___________ do_
50.0
Cheese . .
.
___
____ ___________ do___
35. 2
M ilk, fresh (delivered)
________ quart _
15.6
Milk, fresh (s to r e )._____ . . . ___________ do__ _
14.5
Milk, evaporated___________ ___14H-ounce can
10.1
Eggs: Eggs, fresh_______________ __ _______ dozen. _
51.0
Fruits and vegetables:
Fresh fruits:
Apples___________ _____ _______ .pound ..
12.9
___________ do___
Bananas__ __________
10.5
Oranges. _ __ ______ _ __ . . . _ _ dozen
52.2
Grapefruit 3__ ................... ___________ each..
11.0
Fresh vegetables:
Beans, green____________ _________ pound .
17.4
Cabbage_______ _______ ___________ do___
9.0
________ bunch __
Carrots __
9.2
Lettuce. _ ___ ________ ___________ head.
12.6
Onions
_ ___________ _________ pound.
8.8
Potatoes _______________ _____ 15 pounds..
88.7
Spinach __
___ _
. . . . . ..pound
11.3
10.9
S w e e tp o ta to es...___ ____ ___________ do___
B ee ts3_____ . . . _________ _________ bunch __
12.6
Canned fruits:
Peaches______ ____
_____No. IVi can;
27. 5
Pineapple_______________ ___________ do___
26.9
Grapefruit juice . . . __ ______ No. 2 can..
14.4
Canned vegetables:
Beans, green... ____ _ ___________ d o .. _
13.1
Corn___________________ ___________ do___
14.8
Peas_______ ___________ ___________ do___
13.3
Tomatoes________ _____ ___________ do___
12.1
Soup, vegetable 3________ __ _. 11-ounce ca n ._
13.4
Dried fruits: Prunes_________ ___. . . _ pound._
17.7
Dried vegetables:
N avy beans __ _ _________ ___________ do___
11.4
Soup, dehydrated, chicken noodle 3__ .ounce._
3.8
Beverages:
. _____ .pound
Coffee_____
_
_ .
30.4
'Pea____ __ _ ____________ ______ )4 pound..
24.2
Cocoa3 . __ _ _
_ ___ . . _. -Vi pound..
10.4
Fats and oils:
Lard_______________________
.pound..
18.8
Shortening other than lard—
In cartons__________ ____ ___________ do___
20.0
In other containers _______ ___________ do___
24.5
Salad dressing__________
25.3
_____ . ...p in t ..
Oleomargarine
_ _ _____ _________ pound..
24.0
Peanut butter___ ___________ ___________do___
28.5
Oil, cooking or salad 3 . . . ___ _ . . . . . . ...p in t ..
30.6
Sugar and sweets:
Sugar___________ ____ . . . .
_ . _ .pound
6.7
Corn siru p_________ _ _____ . .
15.8
.24 ounces __
15.8
Molasses 3___________ _ ____ ______ 18 ounces..
Apple butter 3_______ ____ _ ______ 16 ounces. _
13.9
1 Data are based on 51 cities combined prior to January 1943.
2 Preliminary.
3 N ot included in index.
First priced February 1943.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cents
30.9

Cents
47.0

Cents
46.5

Cents
46.0

Cents
31.1

(«)
23.5
40.2

(6)
23.4
40.8

(6)
23.7
42.3

(6)
15.7
26.4

49.9
35.5
15.6
14.5
10.1
49.7

49.9
35. 5
15.6
14.5
10.1
49.5

49.9
36.0
15.6
14.5
10.0
45.7

38.0
27.0
13.0
11.9
7.1
34.9

30.7
24.7
12.0
11.0
6.7
32.0

12.3
10.4
48.1
10.1

11.8
10.4
45.7
9.4

12.1
11.3
48.2
9.2

5.2
6.6
27.3
0

4.4
6.1
31.5
0

18.9
5.8
9.0
12.0
7.1
88.2
12.4
10.0
10.9

20.0
6.6
8.0
12.4
5.2
79.7
11.7
9.5
9.6

16.6
5.4
8.5
11.5
6.5
78.7
9.7
12.7
10.7

14.0
3.4
6.0
8.4
3.6
29.2
7.3
5.0
0

7.2
3.9
4.6
8.4
3.6
34.4
7.8
5. 5
0

27.4
26.7
14.4

27.6
26.9
14.4

27.5
27.5
14.4

16.5
20.9
0

17. 1
21.0
0

13.1
14.8
13.3
12.2
13.4
18.0

13.0
14.8
13.3
12.2
13.4
17.7

13.0
14.4
13.1
11.9
13.4
17.1

10.0
10.7
13.2
8.4
(4)
9.6

10.0
10.4
13.6
8.6
(4)
8.8

11.4
3.8

11.4
3.8

10.7
3.7

6.5
m

5.8
(4)

30.4
24.2
10.4

30.4
24.1
10.4

30.0
23.9
10.2

20.7
17.6
9.1

22.3
17.2
8.6

0

12.8
23.1

18.8

18.8

18.7

9.3

9.9

20.2
24.6
25.6
24.2
28.4
30.8

20.2
24.6
25.5
24.2
28.4
30.8

20.2
24.7
25.6
24.1
28.4
30.1

11.3
18.3
20.1
15.6
17.9
0

11.7
20.2
0
16.5
17.9
0

6.7
15.8
15.8
13.9

6.7
15.8
15.7
13.8

6.8
15.8
15.7
13.2

5.1
13.6
13.4
«

5.2
13.7
13.6
(4)

5 N ot priced.
« Composite price not computed.
7 First priced October 1941.
fRevised.

351

COST OF LIVING AND RETAIL PRICES

T able 4.— Indexes of Average Retail Costs of A ll Foods, by Cities,1 on Specified Dates
[1935-39=100]
1944

1941

1939

Apr. 17

June 13

J a n .14

Aug. 15

1945
City
June 12 2 M ay 15
___ ________________

141.1

138.8

136.6

135.7

97.8

93.5

Atlanta, Ga______ _____ _______ ____
Baltimore, Md ___________ .
Birmingham) Ala_________________ ____
Boston, MassV- . ____________________
Bridgeport, Cohn. _ ____
________
Buffalo, N . Y _________________________
Butte, M ont________________________ --

140.1
151.4
143.7
136.8
138.5
140.2
138.0

138.3
146.9
141.4
133.0
135.9
137.1
136.5

137.3
144.9
141.1
130.8
133.9
134.7
134.2

135. 2
141.2
139.8
130.4
131.4
134.6
132.8

94.3
97.9
96.0
95.2
96.5
100.2
98.7

92.5
94.7
90.7
93.5
93.2
94.5
94.1

Cedar Rapids, Io w a 3
Charleston, S. C ________ _ _ _ _ _____
Chicago, 111-------------- -- -------------- _
Cincinnati, O hio..- _ .
. . . . . ___
Cleveland, O h io ... ________ _
______
Columbus, Ohio________ _______ . . . .
Dallas, Tex___________________________

144.6
136.5
140.2
140.6
146.4
133.6
135.6

142.7
134.8
139. 5
137. 5
144.6
130.7
134.2

110.5
133.5
136.2
135. 0
140.7
128.4
134.4

137.3
130.6
135.4
138.4
141.3
127.1
130.8

95.9
95.9
98.2
96.5
99.2
93.4
92.6

95.1
92.3
90.4
93.6
88.1
91.7

Denver, Colo . . . . . .
. . . ______
Detroit, M ich. _________ _______ ______
Fall River, Mass ___ _____ _ _________
Houston, Tex_______________ . _______
Indianapolis, Ind . . . . . . . .
_______
Jackson, M iss.3
Jacksonville, Fla____ _________________

142.0
139.2
134.6
139. 5
137.4
149.0
147.5

141.8
135.0
131.9
138.4
135.1
147.4
146.4

137.9
132.1
130.1
136.7
133.3
148. 3
145.5

137.5
133.0
129.2
135.0
132.6
139. 3
142.9

94.8
97.0
97.5
102.6
98.2
105. 3
98.8

Kansas Citv, M o_______ _ _______ _.
Knoxville, Tenn.3
Little Rock, Ark . . . _________ . ____
Los Angeles, Calif. ____. . . . . . _____
Louisville, K y . . . . ________ _______
Manchester, N . H _____ . . _____ _ _ _ .
Memphis, T enn___________ _ ___ ____

134.4
159.0
140.3
144.8
134.1
137.4
149.8

132.4
157.8
138.0
144.5
5 131.2
133.9
146.9

131.5
156.5
137.6
144.4
130.6
132.7
145. 2

130.5
154.1
133.8
139.2
132.9
130.9
144.7

92.4
97.1
95.6
101.8
95.5
96.6
94.2

94.0
94.6
92.1
,94. 9
^89.7

Milwaukee, Wis . . . . ___ ______ . . .
Minneapolis, M in n .. _______________ _
Mobile, A l a _________ . . . . __________
Newark, N . J_____ _____ . _ ______ . . .
New Haven, C o n n ___________ __ ___
N ew Orleans, L a .. ___________ . .
N ew York, N . Y _ ._ _____________ _

141.0
133.0
145.9
145.3
139.9
152.4
142.1

138.1
131.2
144.9
139. 9
136.3
153.0
139.6

134.3
129.5
144.9
138.0
134.1
152. 5
136.8

135.5
129.0
142.1
137.7
132.6
146.9
136.8

95.9
99.0
97.9
98.8
95.7
101.9
99.5

91.1
95.0
95.5
95.6
93.7
97.6
95.8

Norfolk, Va.4__________ . .
_______
Omaha, N ebr_________ ________________
Peoria, 111 .
. . .
Philadelphia, Pa--------------- _ . . . ------ .
Pittsburgh, Pa____
. _________ . .
Portland, M aine— . . . _______ ______
Portland, Oreg---------------------- . . -------

143.4
133.5
144.6
138.8
141.2
135.2
150.3

142.4
133.9
142.1
137.7
137.1
133.4
149.9

140.1
130.3
140.9
134.2
135.4
131.3
147.4

142.0
131.1
138.2
134.5
135. 8
131.1
144.4

95.8
97.9
99.0
95.0
98.0
95.3
101.7

93.6
92.3
93.4
93.0
92.5
95.9
96.1

Providence, R. I
. _ ____ _____
Richmond, Va______ . . _____________
Rochester, N . Y ___ __________________
St. Louis, M o__ . _____________ . . . .
St. Paul, M inn___ ____________ ______
Salt Lake City, U ta h ..
San Francisco, Calif. ____ . . .

140.7
136.1
138.9
144.0
131.9
144.3
147.5

136.0
134.5
135.4
141.7
130.1
142.5
145.7

134.1
133.2
133.7
139.0
128.5
140.1
148.4

133.4
134. 0
131.3
138.7
128.1
139.5
142.5

96.3
93.7
99.9
99.2
98.6
97.5
99.6

93.7
92.2
92.3
93.8
94.3
94.6
93.8

Savannah, Ga_________ _ . ---------------Scranton, P a ___ _______ _ . . .
___
Seattle, W ash— . . ________ ________
Springfield, 111
Washington, D .C
.
______
Wichita, Kaos.3
Winston-Salem, "N”. O . 3

153.1
144.5
144.0
146. 3
141.6
150.0
141.4

151.7
139.8
144.4
144.3
139.7
151.7
139.9

150.8
136.4
143.0
142.0
137.8
149.9
138.0

150. 2
135.9
140.4
140.9
135.3
146.2
135.1

100.5
97.5
101.0
96.2
97.7
97.2
93.7

96.7
92.1
94.5
94.1
94.1

United States____

92.7
90.6
95.4
97.8
90.7
95.8
91.5

1 Aggregate costs of 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 w ith the use of
population weights. Primary use is for time-to-time comparisons, rather than place-to-place comparisons.
2 Preliminary.
2 June 1940=100.
* Includes Portsmouth and Newport News.
* Revised.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ì

352

MONTHLY LABOR REVIEW— AUGUST 1945

T a b l e 5.— Indexes of Retail Food Costs in 56 Large Cities CombinedJ 1913 to June 1945
[1935-39=100]
Year
1913_________
1914_________
1915_________
1916_________
1917_________
1918_________
1919_________
1920_________
1921_________
1922_________
1923_________
1924_________
1925_________
1926_________

All-foods
index
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

Year
1927________
1928____
1929 .
1930________
1931_______ _
1932_____
1933
1934 .
1935 .
1936________
1937________
1938________
1939________
1940________

All-foods Year and month All-foods
Year and month All-foods
index
index
index
132.3
130.8
132. 5
126.0
¡103.9
~ 86.5
84.1
93.7
100. 4
101.3
105.3
97.8
95.2
96.6

1941
1942
1943
1944

105. 5
123.9
138.0
136.1
19U

January... ___
February
March
April -_
M ay____
J u n e..
July___
A ugust..

136.1
134. 5
134.1
134.6
135.5
135. 7
137.4
137. 7

mu
Sept, em ber
October
November
December

137.0
136.4
136. 5
137.4

19^5
January
February
March
April
M ay
June

137 3
136. 5
135. 9
136. 6
138. 8
141.1

1 Indexes based on 51 cities combined prior to March 1943.

Supplies of Foods in Independent Retail Stores,
June 1945
MEAT was available in fewer stores in mid-June than at any
corresponding period in the past 15 months, according to independent
grocers reporting to field representatives of the Bureau of Labor
Statistics in 56 large cities. Granulated sugar, margarine, lard, and
some canned fruits and vegetables were becoming increasingly
difficult to obtain.
Both fresh and prepared meats were less available than in the
previous reporting period in mid-May. Over 85 percent of the
stores reporting had no veal or pork; approximately three-fourths no
beef or lamb; and 4 out of every 10 were without frankfurters and
bologna. Over half the stores surveyed had had no fresh meat for
5 or more days of the week preceding the survey. In June 1944,
beef was available in three-fourths of the stores, veal in more than
half, and lamb in almost two-thirds; pork, bacon, and prepared meats
were plentiful.
In June 1945 meat shortages were more widespread among the
different regions than in preceding months. The Rocky Mountain
area was still better supplied than other regions, but beef, lamb, and
pork were not so plentiful there as in mid-May. The Pacific Coast
region showed a greater decrease in supply between May and June
than any other area. On the other hand, there was more veal, pork
loins and hams in the Chicago region, and more lamb in the Middle
Atlantic area. The New England and Southeastern sections con­
tinued to have the smallest supplies, with beef, veal, and pork out of
stock in more than 90 percent of the stores. It should be borne in
mind that the survey was conducted before the OPA meat-distribution
order and other measures had become effective.
Supplies of butter were adequate in mid-June except on the eastern
seaboard, where 1 1 to 18 percent of stores were out of stock of this
commodity. Shortening was still not available in more than a third
of the^stores, and the number of stores having stocks of lard and cooking^and salad oils decreased in nearly all areas. Margarine was

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

353

COST OF LIVING AND RETAIL PRICES

unobtainable in more than half of the stores in the New England,
Rocky Mountain, and Pacific Coast regions.
Over half the reporting grocers did not have canned pears and
mixed fruits, and over four-fifths had no canned pineapple, indicating
smaller supplies than in mid-April when these canned fruits were
last included in the survey. Grapefruit juice and canned spinach
were available in practically all stores, but canned peas were not so
plentiful as in May and canned asparagus could not be bought in
more than a fourth of the stores. Supplies of evaporated milk were
adequate.
The number of grocers without stocks of granulated sugar increased
from 9 percent in mid-March to 2 1 percent in June, with the eastern
and southern regions experiencing the greatest decrease. Almost
one-third of the stores in the Middle Atlantic and more than onefourth in the Southeastern region were unable to supply their
customers at the time of the survey. Two out of every 1 0 grocers in
the Southwestern area had no sugar.
Independent Retail Stores Without Supplies of Specified Foods on M ay 15 and June 12,
1945, in 56 Large Cities
Percent of stores without supplies of specified foods 1
June 12,1945
Commodity

Meats:
Beef, steaks and roasts_________
Beef, all other_____ _ _______
Veal, steaks, chops, and roasts ___
Veal, all o th e r ________________
Lamb, chops and roasts________
Lamb, all other__________ _____
Pork, loins and hams..... ................
Pork, bacon___________________
Frankfurters and bologna_______
Fats and oils:
Butter.................................................
Margarine__________ __________
Shortening ................. ......................
Lard-- ------------- _ _ _________
Cooking and salad oils__................
Processed foods:
Pears, canned_____________ ____
____ ______
Pineapple, canned
Mixed fruits, canned_______ _ _
Grapefruit juice, canned _______
Asparagus, canned ____________
Peas, canned______________
Spinach, canned-- _______
M ilk, evaporated, canned______
Sugar, granulated______________

M ay 15
1945—
56
56
large large
cities cities

Region 2
I

II

III

IV

V

VI

VII

V III

69
72
84
86
68
67
84
82
31

73
75
86
88
71
72
84
85
41

3 90
3 90
3 90
3 90
89
89
3 90
3 90
39

73
73
390
3 90
65
65
85
88
58

68
71
76
77
79
79
83
78
50

3 90
3 90
3 90
3 90
3 90
89
3 90
3 90
20

77
79
79
81
67
70
78
84
25

82
85
76
81
83
85
81
76
39

36
47
81
84
38
52
68
72
2

34
44
90
3 90
42
46
77
85
16

9
26
36
34
12

9
32
35
38
16

18
60
39
30
14

17
33
46
52
16

3
16
25
18
13

11
12
28
23
14

1
11
10
32
8

40
39
41
30
19

40
57
6
29
40

2
52
24
38
28

5 50
5 72
«38
(«)
519
11
?2
6
«9

52
83
53
1
27
16
3
1
21

54
55
45
40
21
18
1
3
17

63
82
51
1
29
29
6
40
31

67
3 90
69
1
30
14
5
3
15

53
3 90
67
40
24
12
40
6
26

50
87
40
1
35
3
40
40
20

42
82
69
2
24
7
40
2
12

30
390
29
40
11
40
40
40
40

8
81
19
40
19
40
1
40
3

1 Data are weighted by the number of independent food stores in each city to derive regional and all­
region percentages.
2 Regions consist of the following cities: Region /.—Boston, Bridgeport, Fall River, Manchester, New
Haven, Portland, Maine., Providence. Region II.—Baltimore, Buffalo, Newark, N ew York, Philadelphia,
Pittsburgh, Rochester, Scranton, Washington, D . C. Region III.—Cincinnati, Cleveland, Columbus,
Detroit, Indianapolis, Louisville. Region IV .—Atlanta, Birmingham, Charleston, S. C., Jackson, M iss.,
Jacksonville, Knoxville, Memphis, Mobile, Norfolk, Richmond, Savannah, Winston-Salem. Region V —
Dallas, Houston, Kansas City, Mo., Little Rock, N ew Orleans, St. Louis, Wichita. Region VI.—Cedar
Rapids, Chicago, Milwaukee, Minneapolis, Omaha, Peoria, St. Paul, Springfield, 111. Region V II.—Butte,
Denver, Salt Lake City. Region VIII.—Los Angeles, Portland, Oreg., San Francisco, Seattle.
3 Over 90 percent out of stock.
4 Some size, quality, or variety of the commodity was available in all stores surveyed.
6 Apr. 17,1945, was last date surveyed.
6 N ot included in the survey this month. List of foods covered is changed from time to time.
1 Jan. 16, 1945, was last date surveyed.
8 Mar. 13,1945, was last date surveyed.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wholesale Prices

Wholesale Prices in June 1945
HIGHER prices for many agricultural commodities and for several
industrial products raised the Bureau of Labor Statistics index of
commodity prices at the primary market 1 level 0 . 1 percent during
June. The index stood at 106.1 percent of the 1926 average, a new
high for this war. During the 1 2 months before June 1945, primary
market prices rose 1.7 percent to a point 41.5 percent above August
1939.
Average prices for farm products rose 0.4 percent during the month,
while foods advanced 0.5 percent and metals and metal products 0.4
percent. Prices for fuel and lighting materials increased 0 . 2 percent,
and hides and leather products, building materials, and chemicals and
allied products each rose 0 . 1 percent. Average prices of textile prod­
ucts, housefurnishing goods, and miscellaneous commodities remained
unchanged at the level of the previous month.
Group indexes for raw materials and semimanufactured articles
each advanced 0.4 percent during the month. Average prices for
manufactured products remained unchanged.
Average primary market prices for farm products advanced 0.4 per­
cent during June, continuing the rise of previous months but at a
slower rate. The increase was caused by higher quotations for
grains, eggs, and fresh fruits and vegetables. Among the grains, rye
increased 8 percent on speculative buying resulting from a short crop
and heavy demands for lend-lease shipments and distilling. An
advance of more than 1 percent for wheat reflected the late harvest
and transportation difficulties which slowed movement of the crop to
markets. Barley was fractionally lower. Effects of the subsidy on
feeder cattle were shown during the month in higher prices for steers
and lower prices for cows and calves. Steers advanced 0 . 6 percent,
cows declined nearly 4 percent, and calves were fractionally lower,
reflecting the emphasis on feeding of steers. Lambs rose more than
1 percent as the result of short supplies with continued heavy demand,
while quotations for ewes and wethers declined seasonally. Live
poultry prices were lower following seasonal adjustments in ceiling
prices, and quotations for eggs were seasonally higher. Cotton prices
fell fractionally. Apples, oranges, and sweetpotatoes advanced
seasonally. Fresh milk prices declined, and lemon prices were lower
in expectation of a large crop. Prices for onions, which had been well
below ceiling, rose substantially on heavier demand. White potatoes
were generally lower in price as increased quantities from the 1945
crop came on the market.
i 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.

354

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

WHOLESALE PRICES

355

The increase of 2.5 percent in average prices for fruits and vegeta­
bles raised the group index for foods 0.5 percent during the month.
In addition, quotations for rye flour were substantially higher, con­
tinuing the advance of earlier months. Dressed poultry prices
declined, following the movement for live poultry.
Further advances in prices for sheepskins, as fewer lambs moved to
market, raised the group index for hides and leather products by 0 . 1
percent during June. Prices for leather and leather products, in­
cluding shoes, gloves, and belting remained steady.
WPB Regulation 388, allocating fabrics for the manufacture of
lower-priced clothing, and the Maximum Average Price Regulation of
OPA did not affect primary markets in June for the textile products
included in the index.
The index for fuel and lighting materials advanced 0 . 2 percent dur­
ing the month as the result of higher coal prices. Prices for anthracite
advanced 2 percent, as the result of ceiling increases averaging 75
cents per ton, to cover approved wage adjustments and restore 1942
profit margins to the industry. Bituminous coal rose again, reflecting
continued adjustments under higher ceilings permitted producers in
April to cover higher wage costs. Beehive coke prices rose more than
7 percent, as ceilings were adjusted to cover the higher costs of bitumi­
nous coal used in the manufacture of coke. Sales realizations for
electricity and for natural and manufactured gas were seasonally
lower.
Average prices for metals and metal products rose 0.4 percent
following price increases for some agricultural implements, in line
with ceiling adjustments permitted individual manufacturers, and
adjustment of prices for steel products. Mercury prices continued to
decline with market uncertainty as to the size of shipments being re­
ceived from foreign sources.
Among the building materials, refractory brick increased nearly
1 percent as higher prices were permitted by OPA to producers in
eastern States. Ceiling revisions to encourage production of Douglas
fir boards and dimension at the expense of timbers resulted in an
increase of nearly 2% percent for boards, and more than 1 percent for
dimension, and a decline of 2 percent in prices for timbers. Butyl
acetate rose 2 percent after a decline in the previous month, while
quotations for turpentine were seasonally lower. Minor advances
occurred in prices for common brick, sand, and gravel.
Higher prices for some chemicals and drugs more than offset lower
quotations for fertilizer materials, to raise the group index of chemicals
and allied products 0.1 percent. Logwood extract advanced as higher
ceilings were permitted for dyewoods. Higher quotations for glyc­
erin reflected a tight supply situation with continued heavy demand.
Prices for ergot were lower and potash declined seasonally.
No price changes were reported for housefurnishings. Household
appliances produced after many controls were revoked had not yet
reached the market, while furniture production continued at a low
rate because of tight supplies of materials and labor.
The all-commodity index has advanced each month for the past 1 0
months, but the rate of increase has been slower than during the early
part of the war period. Farm product prices have shown the largest
increase of any major group, with a gain of 4.3 percent during the 12
months ended in June 1945. This rise was attributable largely to

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

356

MONTHLY LABOR REVIEW— AUGUST 194 5

higher quotations for livestock. Group indexes for hides and leather
products, textile products, metals and metal products, building
materials, and miscellaneous commodities have risen from 1 to 2
percent. Average prices for chemicals and allied products declined
slightly, while other major groups increased less than 1 percent.
Prices for brick and tile, which were generally stable during the early
part of the war, increased more than 1 0 percent during the past year.
Most of this increase was the result of adjustments permitted by
OPA to cover increased unit overhead costs with low volume produc­
tion, and to avoid further closing of brick plants.
Prices in general have advanced much more slowly in this war than
during the First World War, with the major exception of farm prod­
ucts; the increase for this group of nearly 114 percent since August
1939, is comparable to that of World War I. Prices for iron and steel,
agricultural implements, cement, and rayon fibers and yarns generally
have been stable, rising less than 1 0 percent during the nearly 6 years
since the beginning of war in Europe. Increases of less than 2 0 per­
cent have occurred in a number of subgroup indexes, including indus­
trial leather products, nonferrous metals, plumbing and heating
equipment, and industrial chemicals. However, prices in a few fields—
grains, livestock, fresh fruits and vegetables, oils and fats, and cattle
feed—have more than doubled since August 1939.
Reflecting the advance in prices for agricultural commodities, the
group index for raw materials, in June 1945, was nearly 78 percent
higher than in August 1939, in contrast to advances of slightly more
than 28 percent in average prices for semimanufactured articles and
manufactured products.
T a b l e 1.— Indexes of Wholesale Prices by Groups and Subgroups of Commodities,

June 1945, Compared with M ay 1945, June 1944, and August 1939
Percent of change to
June 1945 from—

Indexes (1926=100)
Groups and subgroups

All commodities-,.

_ ___

June
1945

M ay
1945

June
1944

August
1939

M ay
1945

June
1944

August
1939

106.1

106.0

104.3

75.0

+ 0.1

+ 1 .7

+41.5

Farm products______________ Grains___________ __
Livestock and poultry__________
Other farm products________

130.4?
130.2
134.4í
127. 2jj

129.9
129. Y
135. 5
125. 9,

125.0
127.2
123.0
124.7

61.0
51.5
66.0
60.1

+ .4
+ .9
- .8
+ 1 .0

+ 4 .3
+ 2 .4
+ 9 .3
+ 2 .0

+113.8
+152. 8
+ 103.6
+111.6

Foods_____________________
Dairy products______________ ..
Cereal products______ ___ ___
Fruits and vegetables____________
M eats_________ ____ .
Other foods_____ _
....

107.5
110.5
95.5
134.7
108.3
95.1

107.0
110.6
95.4
131.4
108.6
94.7

106.5
110.3
94.7
137.7
106.1
93.0

67.2
67.9
71.9
58.5
73.7
60.3

+ .5
-. 1
+ 2 .5
-.3
+ .4

+ .9
+ .2
+ .8
-2 .2
+ 2.1
+ 2 .3

+60.0
+62. 7
+32.8
+130. 3
+46.9
+57.7

Hides and leather products _ _
Shoes______________ . . . .
Hides and skins______ . . . ____
Leather___ ___
Other leather products____ _ .

118.0
126.3
117.3
101.3
115.2

117.9
126.3
117.0
101.3
115.2

116.4
126.3
108.4
101.3
115.2

92.7
100. 8
77.2
84.0
97.1

+ .1
0
+ .3
0
0

+ 1 .4
0
+ 8 .2
0
0

+27.3
+25.3
+51.9
+20. 6
+18.6

Textile products_______________ ____
Clothing_____________________ .
Cotton goods_______________ .
Hosiery and underwear
R ayon______________________
Silk______________
Woolen and worsted goods___ ______ . .
Other textile products___________

99.6
107.4
119.7
71.5
30.2

99.6
107.4
119. 7|
71.5
30.2]

97.8
107.0
113.9
70.6
30.3

0
0
0
0
0

+ 1.8
+ .4
+ 5.1
+ 1 .3
- .3

+46.9
+31.8
+82. 7
+16.3
+ 6 .0

112.7
100.9

112. 7
100.9

112. 5
100.5

67.8
81.5
65.5
61.5
28.5
44. 3
75.5
63.7

0

+ •2

+49.3
+58.4

S ee fo o tn o te s a t end o f


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

table.

0

+.4

357

WHOLESALE PRICES

T a b l e 1.—Indexes of Wholesale Prices \by [Groups 'and \Subgroups of Commodities,

June 1945, Compared ivith M ay 1945, June 1944, and August 1939— Continued
Percent of change to
June 1945 from—

Indexes (1926=100)
Groups and subgroups
August
1939

M ay
1945

June
1944

August
1939

83.3
95.5
120.4
130.7
59.3
79.3
64.0

72.6
72.1
96.0
104.2
75.8
86.7
51.7

+ 0 .2
+ 2 .0
+ .5
+ .2

+ 0 .7
+2.1
+ 2 .8
+ .2

+15.6
+35.2
+29.0
+25.7

0

+ .3

+24.2

104.3
97.5
98.7
98.4
112.8
85.9
92.4

103.7
97.2
98.4
97.1
112.8
85.8
92.4

93.2
93.5
94.7
95.1
92.5
74.6
79.3

+ .4
+ .1
0
+ .7
0
0
+ .2

+ 1 .0
+ .4
+• 3
+2.1
0
+ .1
+ .2

+12.3
+ 4 .4
+4. 2
+ 4 .2
+21.9
+15.1
+16.8

117.4
110.9
99.4
154.9
106.3
92.6
107.3
104.3

117.3
110.7
99.4
2 154.9
106.4
92.4
107.3
104.1

115.9
100.6
96.4
2 154.8
105.7
92.4
107.3
103.0

89.6
90.5
91.3
90.1
82.1
79.3
107.3
89.5

+ .1
+ .2
0
0
-.1
+ .2
0
+ .2

+ 1 .3
+10.2
+3.1
+ .1
+ .6
+ .2
0
+ 1 .3

+31.0
+22.5
+ 8.9
+71.9
+29.5
+16.8
0
+16.5

Chemicals and allied products_____________
Chemicals . . . . .
. . . _____
Drugs and pharmaceuticals. __ _____ __
Fertilizer materials______ . .
Mixed fertilizers.
.. .
_. ...............
Oils and fats------------ ---------- -------------

95.0
95.9
109.5
80.4
86.6
102.0

94.9
95.8
106.8
81.9
86.6
102.0

95.3
96.2
112. 0
79.9
86.3
102.0

74.2
83.8
77.1
65.5
73.1
40.6

+ .1
+ •1
+ 2 .5
- 1 .8
0
0

-.3
-.3
-2 .2
+ .6
+ .3
0

+28.0
+14.4
+42.0
+22.7
+18.5
+151.2

Housefurnishing goods ---------------------------Furnishings______
. . . ___________
Furniture
............ .

104.5
107.5
101.5

104. 5
107.5
101.5

104.3
107.2
101.4

85.6
90.0
81.1

0
0
0

+ .2
+ .3
+ .1

+22.1
+19.4
+25. 2

M iscellaneous________ . ---------------------Automobile tires and tubes. .
Cattle fe e d ... . . . ______ ___ _____ .
Paper and pulp------- ------------------------Rubber, crude________________________
Other m iscellaneous... . _________ . .

94.8
73.0
159.6
109.0
46.2
98.9

94.8
73.0
159.6
109.0
46. 2
98.9

93.5
73.0
159. 6
107.2
46.2
96.7

73.3
60.5
68.4
80.0
34.9
81.3

0
0
0
0
0
0

+ 1 .4
0
0
+ 1 .7
0
+ 2 .3

+29.3
+20.7
+133. 3
+36.2
+32.4
+21.6

Raw materials__
_ _____
. ---------Semimanufactured articles------ ------ -----------Manufactured products. . . . . .
All commodities other than farm products__
All commodities other than farm products
and foods______________________________

118.2
95.4
101.8
100.7

117.7
95.0
101.8
100.6

114.2
93.8
100.9
99.6

66.5
74.5
79.1
77.9

+ .4
+ .4
0
+ .1

+ 3 .5
+ 1 .7
+.9
+ 1.1

+77.7
+28.1
+28.7
+29.3

99.6

99.4

98.5

80.1

+ .2

+ 1.1

+24.3

June
1945

M ay
1945

June
1944

..

83.9
97.5
123.8
131.0
(i)
0)
64.2

83.7
95.6
123.2
130.7
(0
76.4
64.2

Metals and metal products____ _ _ ........ .
Agricultural im plem ents.. . ___________
Farm machinery _________ . -----Iron and steel __________ . ______ .
Motor vehicles___________________ ____
Nonferrous metals______ ______ . -----Plumbing and h e a tin g ... _ -------------

104.7
97.6
98.7
99.1
112.8
85.9
92.6

Building materials____ ____________ ______
Brick and tile ___
Cement_______________________
____
Lumber______________________________
Paint and paint materials.
Plumbing and heating_________________
Structural steel__ ______________
Other building materials. . _ ________

Fuel and lighting materials_________ ______
____
Anthracite___
Bituminous c o a l..„ _ ___
Coke . . . . . .
.
_____ . . . . . ..
Gas
Petroleum and products__

1 No quotation.
2 Revised.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

_______

358

MONTHLY LABOR REVIEW— AUGUST 194 5

Index Numbers by Commodity Groups, 1926 to June 1945
Index numbers of wholesale prices by commodity groups for
selected years from 1926 to 1944, and by months from'June 1944 to
June 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
Hides Tex­ Fuel Metals
and
Build­ icals House- MisFarm
and
and
furlight­ metal
ing
and
celprod­ Foods leather tile
ing
mate­ allied nish- laneucts
prod­ prod­
prod­
ing
ucts
mate­
rials
prod­
ous
ucts
ucts
rials
ucts goods

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

19Jfi
June_______
July----------------------August___________
September_____
October___
November
December. __

125.0
124. 1
122.6
122.7
123.4
124.4
125.5

106.5
105. 8
104.8
104.2
104.2
105.1
105.5

116.4
116.2
116.0
116.0
116.2
116.2
117.4

97.8
98.0
98.4
99.2
99.4
99.4
99.5

83.3
83.2
83.2
83.0
82.9
83.1
83.1

103.7
103. 7
103. 8
103. 8
103.7
103.7
103.8

115.9
115.9
116.0
116.0
116.3
116.4
116.4

95.3
95.5
95.5
94.9
95.0
94.8
94.8

104.3
104.3
104.4
104.4
104.4
104.4
104.4

93.5
93.6
93 6
93.6
93.6
94.0
94.2

104.3
104.1
103. 9
104.0
104.1
104 4
104.7

126.2
127.0
127.2
129.0
129.9
130.4

104.7
104.7
104.6
105.8
107.0
107.5

117.5
117.6
117.8
117.9
117.9
118.0

99.6
99,7
99.7
99.6
99.6
99.6

83.3
83.3
83.4
83.5
83.7
83.9

104.0
104.2
104.2
104.2
104.3
104.7

116.8
117.0
117.1
117.1
117.3
117.4

94.9
94.9
94.9
94.9
94.9
95.0

104.5
104.5
104. 5
104.5
104.5
104.5

94. 2
94. 6
94.6
94.8
94.8
, 94.8

104. 9
105. 2
105. 3
105. 7
106.0
106.1

194.5
January.
February____
March_______
A p r il.._____
M ay_______ ____
June__

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 1 0 and 1 1 of Wholesale Prices, JulyDecember and Year 1943 (Bulletin No. 785.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

359

WHOLESALE PRICES

T a b l e 3 . — Index Numbers of Wholesale Prices by Special Groups of Commodities
[1926 = 100]
All
com­
All
com­
modi­
Semi- M an­ modi­ ties
other
ties
Raw manufac­
ufac- tured
other than
mate­ tured
farm
prod­
than
rials
arti­
farm prod­
ucts
cles
prod­ ucts
and
ucts
foods

Year

1926_______
1929
1932_______
1933
1936_______

100.0
97. 5
55.1
56.5
79.9

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
ir 2 .1
113.2

86.9
92. 6
92.9
94.1

89.1
98.6

88.3
97.0
98. 7
99.6

89.0
95.5
96.9
98.5

100. 1

100.8

Year and
month

19U
June________
July_________
August_____
September___
October ___
N ovem ber___
December____

SemiRaw manufacmate­ tured
rials
arti­
cles

All
com­
All
com­ modi­
M an­ modi­ ties
other
ties
ufac­
tured other than
prod­ than farm
farm prod­
ucts
prod­ ucts
and
ucts
foods

114.2
113.6
112.7
112.8
113.2
113.8
114.6

93.8
93.9
94.1
94.7
94.8
94.8
94.8

100. 9
100.9
100.9
100.9
101.0
101.1
101.1

99.6
99.6
99. 7
99.7
99.8
99.9
100. 0

98. 5
98.5
98.6
98.6
98.7
98.8
98.9

1945
January_____ 115.1
February____ 115. 6
March _ ____ 115.7
April____ . . . 116.8
M ay________ 117.7
J u n e - - - _____ 118.2

94.9
95.0
95.0
95.0
95.0
95.4

101.3
101.5
101.6
101.8
101.8
101.8

100.1
100.2
100.4
100.5
100.6
100.7

99.1
99.2
99.2
99.3
99.4
99.6

Weekly Fluctuations
Weekly changes in wholesale prices by groups of commodities
during May and June 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, M ay and

June 1945
[1926 = 100]
June
2

May
26

M ay
19

M ay
12

May
5

June
23

105.9

105.9

106.0

106.0

106.1

105.9

105.8

105. 7

105.7

130.1
107.3
118.5
99.1
84.8

130.0
107. 3
118. 3
99.1
84.7

131.0
107.7
118.3
99.1
84.5

130.7
107. 3
118.3
99.1
84.5

130.8
107.5
118.3
99.1
84.7

130.5
107.4
118.3
99.1
84.6

129.5
106.8
118.3
99.1
84.6

129.5
106.6
118.3
99.1
84.3

129.8
106.5
118.3
99.1
84.0

Metals and metal products ------------ 104.8
Building materials.
------------- 117.4
Chemicals and allied products______ 95.4
106.2
Housefurnishing goods.. ______ . .
94.6
Miscellaneous_____ _____ ________

104.8
117.3
95.3
106.2
94.6

104.8
117.3
95.3
106.2
94.6

104.8
117.3
95.3
106.2
94.6

104.8
117.3
94.9
106.2
94.6

104.4
117.2
94.9
106.2
94.6

104.3
117.2
94.9
106.2
94.6

104.4
117.2
94.9
106. 2
94.6

104.3
117.0
94.9
106.2
94. 6

Raw materials
------- . ---------- 118.7
Semimanufactured articles------ ----- 95.3
Manufactured products____________ 102.0
A ll commodities other than farm
products__________________ . . . 100.6
All commodities other than farm
products and foods.. ......................... 99.8

118.6
95.3
102.0

119.0
95.3
102.0

118.8
95.3
102.0

118.9
95.3
102.1

118.5
94.8
102.1

117.9
94.8
102.1

117.9
94.8
102.0

117.8
94.8
102.0

100.6

100.6

100.6

100.6

100.5

100.5

100.4

100.4

99.8

99.7

99.7

99.8

99.7

99.7

99.6

99.5

All com m odities..

. . . -- -------

Farm products. ______ _ ______
Foods__ _ _ ___________ ___
Hides and leather products____ ____
Textile products___________
___
Fuel and lighting materials_____ . . .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

June
16

June
9

June
30

Commodity group

Labor Turn-over

Labor Turn-over in Manufacturing, Mining, and
Public Utilities, May 1945
FOR every 1,000 workers on factory pay rolls in May 1945, 47 quit,
6 were discharged, 12 were laid off, and 4 left to enter the armed serv­
ices. The accession rate of 49 per 1 , 0 0 0 workers was slightly above
that of April, but almost 25 percent below that of May 1944.
The rise during the month was due to the increased rate of hiring
in the nonmunitions group. Workers laid off because of cut-backs
in munitions production are creating a labor supply for civilian-goods
industries which have suffered from a labor shortage since the war
began.
The lay-off rate of 1 2 per 1 , 0 0 0 was the highest since June 1942.
Although the nonmunitions lay-off rate remained the same as for
April, that for munitions increased from 1 1 to 17 per 1 ,0 0 0 . For the
fifth consecutive month, the highest rate for all major groups, 36 per
1 ,0 0 0 , was reported by the transportation-equipment group.
The shipbuilding industry, which has been laying off many workers
since January, still has a rate of 31 per 1 ,0 0 0 . The fighting of a onefront war is also reflected in the sudden rise in lay-offs from 14 to 51
in the aircraft industry and from 17 to 29 per 1,000 in the manufac­
ture of aircraft parts and engines. Among the major groups, the
second highest rate, 2 2 per 1,000, was in ordnance. A doubling of
the lay-off rate in this group was brought about by curtailed opera­
tions in tank, bomb and shell loading, shell case, and sighting and
fire-control equipment plants.
Workers were laid off at rates ranging from 14 to 10 per 1,000 in
the automobile, miscellaneous, and nonferrous-metals groups. In the
miscellaneous industries, cancellation of contracts in plants making
aircraft instruments accounted for the laying off of 1 2 per 1 , 0 0 0 as
against 3 in April. Wliile the rate of lay-offs for the iron and steel
group was not high compared with that for all manufacturing, the
increase over the month was significant. Industries within this
group that were forced to curtail operations at the close of the
European war were firearms, cutlery (reduction in bayonet depart­
ment), fabricated structural steel products, steel castings, and forgings.
Seven of the 1 0 munitions groups showed increased discharge rates,
although that for all manufacturing remained the same. Discharges
were highest in the ordnance and transportation-equipment groups,
upon which production cut-backs fell most heavily.
Total separations for anthracite and bituminous-coal mining
declined between April and May, reflecting a drop in the quit rate of
both industries. The signing of coal contracts undoubtedly did much
to slacken the rate of quits.
360

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

361

LABOR TURN-OVER

Although total separations for women were still considerably higher
than for men in all manufacturing, involuntary separations amounted
to about one-third of the total in each. A notable exception to this
is the tank industry, in which plants produce aircraft parts in addition
to tanks. Involuntary separations for women in these plants were
about 70 percent of the total while for meii it was only 50 percent of
the total.
T a b l e 1.— M o n th ly L a b o r T u r n -o v e r R a te s (p e r 1 0 0
I n d u s tr ie s 1
Class of turn-over
and year

Jan.

Total separation:
1945_____________
1944_____________
1943_____________
1939____________
Quit:
1945_____________
1944_____________
1943_____________
1939____________
Discharge:
1945____________
1944_____________
1943_____________
1939____________
Lay-off:3
1945_____________
1944_____________
1943_____________
1939_____________
M ilitary and miscellaneous:4
1945____________
1944__ __________
1943_____________
Accession:
1945_____________
1944____________
1943_____________
1939___________

Feb. Mar. Apr.

E m p lo y e e s ) in

May June July

Aug.

M a n u f a c tu r in g

Sept. Oct.

Nov. Dec.

6.2
6.7
7. 1
3.2

6.0
6.6
7.1
2.6

6.8
7.4
7.7
3.1

6.6
6.8
7.5
3.5

2 6.9
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
4.6
4. 5
.9

4.3
4.6
4.7
.6

5.0
5.0
5.4
.8

4.8
4.9
5.4
.8

2 4.7
5.3
4.8
.7

5.4
5.2
.7

5.0
5.6
.7

6.2
6.3
.8

6.1
6.3
1.1

5.0
5.2
.9

4.6
4.5
.8

4.4
4.3
.7

.7
.7
.5
.1

.7
.6
.5
.1

.7
.7
.6
.1

.6
.6
.5
.1

2 .6
.6
.6
.1

.7
.6
.1

.7
.7
.1

.7
.7
.1

.6
.6
.1

.6
.6
.2

.6
.6
.2

.6
.6
.1

.6
.8
.7
2.2

.7
.8
.5
1.9

.7.
.9
.5
2.2

. 8 2 1.2
.6
.5
.6
.5
2.6
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

.3
.6
1.4

.3
.6
1.4

.4
.8
1.2

.4
.7.
1.0

24
.7
.8

.5
.8

.4
.8

.4
.8

.3
.7

.3
.7

.3
.6

.3
.6

7.0
6.5
8.3
4.1

5.0
5. 5
7.9
3.1

4.9
5.8
8.3
3.3

4.7
5.5
7.4
2.9

4.9
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

5.1
5.2
2.8

2

1 Month-to-month employment changes as indicated by labor turn-over rates are not precisely compara­
ble 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 turn-over data, beginning in January 194.3, refer to all employees, whereas
the employment and pay-roll reports relate only to wage earners. The labor turn-over 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.

6 5 6 2 4 3 — 45 -

-12


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

362

MONTHLY LABOR REVIEW— AUGUST 19 45

T able 2. — M o n th ly L a b o r T u r n -o v e r R a te s (p e r 1 0 0 E m p lo y e e s ) in S e le c te d G ro u p s a n d
I n d u s tr ie s ,1 M a y 1 9 4 5

Industry

Total
separa­
tion

2

D is­
charge

Quit

Lay-off

Military
and mis­
cellaneous

Total
acces­
sion

May Apr. May Apr. May Apr. M ay Apr. M ay Apr. May Apr.
Manufacturing
M unitions3 . __ -__
-- -- - 7.2
Nonmunitions 3________ _____ ______ 6.6

6.4
6.9

4.2
5.5

4.1
5.8

0.8
.4

0.8
.4

1.7
.4

9.7

8.0'

5.9

5.5

1.2

1.1

2.2

6.9

6.6

3.8

3.5

.8

.7

1.9

10.7
12.0

8.8
6.7

6.8
5.4

6.2
4.8

1.4
1.7

1.2
1.1

2.1
4.4

Ordnance--- --------------------------------Guns, howitzers, mortars, and
related equipment____________
Ammunition, except for small
arms _
_
_
__ _
Tanks. _ _____ . . ------ --------Sighting and fire-control equip­
m ent________________ ,U--_-----

0.5
.3

0.4
.3

4.1
6.0

4.1
5. 6

1.0

.4

.4

5.5

6.1

1.9

.5

.5

3.4

4.5

1.0
.5

.4
.5

.4
.3

6.1
6.5

6.7
6.3

1.1
.4

4.9

3.5

2.7

2.1

.5

.5

1.3

.6

.4

.3

2.2

2.6

5.0

4.4

3.3

3.3

.5

.4

.8

.3

.4

.4

3.5

3.6

3.3 2.9
7.1 6.9
5.6 5.7
7.5 6.4
6.2 8.3
0) 10.1
3.2 2.9
10.6 6.9

2.4
5.4
4. 5
4.8
4.3
(9
2.3
6.8

2.3
5.5
4.7
5.1
5.9
7.3
2.1
5.7

.2
1.0
.6
.9
1.0
(9
.3
.4

.2
.7
.5
.8
1.6
2.2
.2
.9

.4
.4
.1
1.4
.4
(9
.l
3.0

.1
.3
.1
.1
.4
.2
.1
(9

.3
.3
.4
.4
.5
(9
.6
.4

.3
.4
.4
.4
.4
.4
.5
.3

2.5
6.1
4. 3
4.3
4. 9
(9
3.1
4.8

2.6
5. 4
4. 2
5. 2
6. 3

4.8
4.0

4.1
3.6

3.9
3.3

.4
.4

.4
.3

.2
.2

.1
.1

.3
.3

.4
.3

3.7
4.2

3.4
4.0

7.5

7.4

5.0

5.2

1.0

.8

1.0

.8

.5

.6

7.5

6.2

6.3

;5. 9

4.3

4.9

.6

.4

1.0

.2

.4

.4

3.9

4.9

7.5

6.5

5.8

4.9

.9

.7

.4

.3

.4

.6

8.0

6.8

8.8
4.0
5.6
10.4

8.7
4.5
4.9
6.0

4.9
2.6
3.5
3.3

5.3
3.5
3.4
3.2

.9
.6
.6
.6

.8
.5
.5
.6

2.3
.3
1.2
6.1

2.0

.6
.3
.4
.3

5.1
3.1
2.9
3.2

4.3

.6
1.9

.7
.5
.3
.4

Electrical machinery----------------------Electrical equipment for indus­
trial use. __________________
Radios, radio equipment, and
phonographs_________________
Communication equipment, ex­
cept radios___________________

4.7

4.3

3.3

3.2

.6

.5

.5

.3

.3

.3

3.5

3.6

3.8

3.5

2.6

2.6

.4

.4

.4

.2

.4

.3

2.7

2.8

3.9

3.9

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 equipm ent..

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 tinware__ ..
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
apparatus and steam fittings___
Stamped and enameled ware and
galvanizing___ . . . ___________
Fabricated structural-metal prod­
ucts . _______________________
Bolts, nuts, washers, and r iv e ts...
Forgings, iron and steel_________
Firearms (60 caliber and under)...

Transportation equipment, except
automobiles. _ _________________
Aircraft________________________
Aircraft parts, including engines..
Shipbuilding and repairs
___

5.0
4.5


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2.6
6.8

3.0
3.0
3. 2

5.2

4.6

3.7

3.5

.6

.6

.6

.2

.3

.3

5.6

4.5

4.0

3.5

1.0

.7

.3

(9

.3

.3

4.2

4.3

4.4
4.8

4.6
5.0

3.0
3.2

3.2
3.2

.6
.6

.6
.7

.4
.5

.3
.6

.4
.5

.5
.5

3.5
3.8

3.3
3. 4

4.1
3.6
4.4

4.6
3.6
3.6

3.1
2.1
2.5

3.7
2.2
2.3

.3
.6
.9

.3
.6
.7

.i

.5
.6

.1
.4
.3

.6
.4
.4

.5
.4
.3

3.6
2.3
3.2

3.2
2.3
3.1

4.0

3.9

2.6

2.8

.8

.5

.2

.2

.4

.4

3.4

3.5

5. 0
4.5

5.0
5.5

3.3
3.5

3.5
4. 1

.7
.6

.6
.8

.6
(9

.4
(9

.4
. .4

.5
.6

3.6
4.3

3.5
4.9

10.3 9.0
12.1 7.3
6.9 5.7
11.5 12.9

5.0
5.4
3.0
6.1

4.9
4.6
3.0
6.4

1.1
.8
.6
1.6

1.1
.7
.6
1.8

3.6
5.1
2.9
3.1

2.5
1.4
1.7
4.1

.6
.8
.4
.7

.5
.6
.4
.6

4.0
3.2
3.2
5. 2

3.9
3.2
3.2
4. 9

A u tom ob iles.____ . . _______ ____ 6.5
Motor vehicles, bodies, and
trailers___ . . . . .. __________ 6.2
Motor-vehicle parts and acces­
sories________________________ 6.7
See fo o tn o te s a t end o f tab le.

.2

n.

6.5

3.9

4.3

.8

.8

1.4

1.0

.4

.4

4.9

5.2

6.4

3.3

3.8

.7

.8

1.9

1.4

.3

.4

4.1

4.3

6.6

4.3 ! 4-7

.8

.8

1.2

-7

.4

.4

5.4

5.8

1

363

LABOR TURN-OVER

T able 2. — M o n th ly L a b o r T u r n -o v e r R a te s (p e r 1 0 0 E m p lo y e e s ) in S e le c te d G r o u p s a n d
I n d u s tr ie s ,1 M a y 1 9 4 5

2-—Continued

Total
separa­
tion

D is­
charge

Industry

Quit

Lay-off

Military
and mis­
cellaneous

Total
acces­
sion

May Apr. May Apr. M ay Apr. May Apr. M ay Apr. M ay Apr.
Manufacturing—Continued
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_____________

7.1

6.3

5.0

4.7

0.7

0.6

3.8

1.0

0.6

0.4

0.4

5.6

5.7
3.2

3.7

3.0

2.9

.3

.3

.•1

.1

.4

.4

3.6

8.3 10.4

7.2

7.7

.4

.3

.2

1.9

.5

.5

8.4

9.5

6.0

4.1

3.9

3.2

.7

.5

1.0

.1

.4

.3

2.8

3.3

Aluminum and magnesium products_________________________ 8.0
Lighting equipm ent____________ 5.7
Nonferrous-metal foundries, except aluminum and magnesium. 6.3

7.5
6.5

5.7
4.4

5.4
5.9

.8
.5

.7
.3

1.6
.5

.9
.1

.5
.3

.5
.2

6.4
4.9

7.2
5.2

5.9

4.4

4.3

.7

.7

.9

.6

.3

.3

5.3

4.3

Lumber and timber basic products__ 9.3
Sawmills
_______ _____ _ _ 9.6
Planing and plywood mills ____ 6.5

9.4
9.1
7.4

8.1
8.4
5.3

7.6
7.5
6.1

.4
.4
.6

.4
.3
.5

.4
.4
.2

.9
.8
.3

.4
.4
.4

.5
.5
.5

9.0
9.0
6.3

8.3
8.1
6.1

Furniture and finished lumber products _ ____ ____________________
Furniture, including mattresses
and bedsprings _____________

9.4

8.6

8.3

7.4

.5

.6

.3

.3

.3

.3

8.2

7.5

8.8

8.4

8.0

7.3

.5

.6

.1

.2

.2

.3

8.2

7.5

Stone, clay, and glass products______
Glass and glass products.________
Cement_________ .
____ .
Brick, tile, and terra c o tta .. . . .
Pottery and related products.._:

4.7
5.0
3.8
5.4
4.5

5.3
5.9
4.3
6. 1
5.8

3.8
3.8
3.0
4.7
3.8

4. 1
4.1
3.4
4.6
5.2

.4
.5
.3
.3
.3

.4
.6
.3
.4
.2

.1
.3
_2
.i
«

.3
.6
.2
.5
.1

.4
.4
.3
.3
.4

.5
.6
.4
.6
.3

4.9
5.0
5.7
5. 8
5.2

4.3
4.5
4.1
4.9
4.7

Textile-mill products_______ ______
___ _________ . . .
Cotton__
Silk and rayon goods___ ______
Woolen and worsted, except dyeing and finishing_____________
Hosiery, full fashioned__________
Hosiery, seamless_______________
Knitted underwear_____________
Dyeing and finishing textiles, ineluding woolen and worsted___

5.8
6.6
6.3

6.5
7.6
6.5

4.9
5.8
5.3

5.5
6.7
5.3

.4
.4
.5

.4
.4
.5

.2
.1
.2

.3
.2
.4

.3
.3
.3

.3
.3
.3

5.5
6.4
6.2

5.0
6. 0
5.2

3.9
4.7
5.4
4.8

4.1
4.2
6.3
5.4

2.8
3.5
4.9
4.2

2.9
3.6
5.8
4.3

.3
.2
.3
.2

.2
.2
.2
.2

.6
.8
.1
.3

.7
.2
.1
.8

.2
.2
.1
.1

.3
.2
.2
.1

3.6
3.3
5.0
5.2

3.2
2.7
4.8
4. 1

4.4

4.1

3.1

3.1

.5

.4

.3

.2

.5

.4

3.5

3.1

5.4

4.2

4.7

.2

.2

.2

.4

.1

.1

4.5

4.3

3.8

.1

.1

.1

.1

.1

.1

2.9

3.1

Apparel and other finished textile
products_________________________ 4.7
M en’s and boys’ suits, coats, and
overcoats____________________ 3.2
M en’s and boys’ furnishings,
work clothing, and allied garm ents______________ _
5.0

5.3

4.6

4.8

.2

.2

.1

.2

.1

.1

4.5

4.4

Leather and leather products. . .
Leather.. _____
... ... ...
Boots and shoes________________

5.6
4.2
5.8

4.5
2.6
4.8

5.0
3.7
5.2

.4
.5
.3

.2
.2
.2

.1
.1
.1

.2
(«)
.2

.2
.3
.2

.2
.3
.2

5.2
3.2
5.5

5.0
3.8
5.2

Food and kindred products_________ 8.5 8.7
Meat products__________ ______ 8.4 8.1
Grain-mill products_____________ 9.3 10.2

7.1
6.8
8.1

7.3
6.7
9.2

.5
.4
.5

.5
.5
.5

.5
.6
.3

.5
.5
«

.4
.6
.4

.4
.4
.5

7.5
6.7
9.0

6.8
4.7
9.8

Tobacco manufactures_________ ____

5.2
3.5
5.4

4.1

2.9

7.8

8.1

6.9

7.4

.5

.4

.3

.2

.1

.1

6.5

7.2

Paper and allied products... ___. . .
6.2
Paper and pulp________________ 5.5
Paper boxes________ ____ _______ 7.8

6.4
6.3
7.3

5.0
4.4
6.7

5.5
5.2
6.4

.5
.4
.5

.4
.4
.4

.2
.2
.2

.1
.2
.1

.5
.5
.4

.4
.5
.4

6.1
5.7
7.3

5.8
5.3
7.0

Chemicals and allied products_______
Paints, varnishes, and colors_____
Rayon and allied products______
Industrial chemicals, except explosives_________________ .____
Explosives_________ ________
Small-arms ammunition. _ . . . . . .

6.0
2.8
4.1

5.5
3.0
4.9

4.5
2.0
3.3

4.3
2.3
3.6

.7
.4
.3

.6
.3
.3

.4
(5)
.1

.2
0)
.4

.4
.4
.4

.4
.4
.6

5.0
2.7
4.2

5.2
2.3
3.9

4.6
8.4
8.0

4.0
6.9
7.2

3.1
6.2
6.3

3.0
5.6
5.7

.5
1.3

.5
.8
.9

.6
.6
.3

.2
(0
.2

.4
.3
.4

.3
.5
.4

4. 1
6.6
5.9

3.6
8.5
5.8

See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1.0

364

MONTHLY LABOR REVIEW— AUGUST 194 5

T able 2. — M o n th ly L a b o r T u r n -o v e r R a te s (p e r 1 0 0 E m p lo y e e s ) in S e le c te d G r o u p s a n d
I n d u s tr ie s ,1 M a y 1 9 4 5

2— Continued

Total
separa­
tion

D is­
charge

Industry

Quit

Lay-off

M ilitary
and mis­
cellaneous

Total
acces­
sion

May Apr. May Apr. May Apr. May Apr. May Apr. M ay Apr.
Manufacturing—C ontinued
Products of petroleum and coal______ 3.1
Petroleum refining_______________ 3.1

3.2
3.1

2.1
2.1

2.0
1.9

0.4
.3

0. 3
.3

0.2
.3

0.5
.5

0.4
.4

0.4
.4

3.5
3.5

2.9
2.9

Rubber products_______ __
___
Rubber tires and inner t u b e s ___
Rubber footwear and related prod­
ucts_______ _________________
Miscellaneous rubber industries.. .

5.6
5.4

5.6
5.4

4.4
4.4

4.7
4.6

.5
.5

.4
.4

.3
.1

.2
.1

.4
.4

.3
.3

4.9
4.9

4.3
4.0

6.0
5.7

6.2
5.9

5.5
4.2

5.6
4.7

.3
.6

.2
.5

(9

.5

.1
.4

.2
.4

.3
.3

5.1
4.7

4.7
4.8

Miscellaneous industries____________

4.9

4.2

2.8

2.9

.5

.6

1.2

.3

.4

.4

3.4

2.9

5.2
2.9
5.9
6.8

4.6
2.5
5.2
6.3

4.3
2.0
5.2
5.8

3.8
1.8
4.3
5.4

.3
.2
.3
.4

.3
.1
.3
.4

.2
.4
.1
.1

.2
.3
.2
.1

.4
.3
.3
.5

.3
.3
.4
.4

4. 0
2.9
3.7
5.4

4.8
4.0
5.4
4.7

.5

.3

5.2

5.6

.1
.2

.2
.2

.8
2.9

.9
2.6

.2
.1

.1
.1

3.4
2.9

3.3
2.6

Nonmanufacturing
Metal mining______________________
Iron ore____ ___________________
Copper ore_____________________
Lead and zinc ore___
___ _
M etal mining, not elsewhere
classified, including aluminum
ore____ _____ ______________

5.7

5.7

4.2

4.4

.8

.9

.2

.1

Coal mining:
Anthracite mining
_
_ _
Bitum inous-coalmining__ . . . . .

1.1
3.0

1.6
3.3

.8
2.4

1.2
2.8

(9

(9

.2

.2
.2

.2
.1

Public utilities:
Telephone_____________ . . . . .
T elegraph ...
_______ ______

2.9
,3

2.9
3.4

2.5
3.0

2.6
3.1

.1
.1

.1
.1

.1
.1

.1
.1

.2

'

1 Since January 1943 manufacturing firms reporting labor turn-over 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.
3 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; auto­
mobiles; transportation equipment, except automobiles; nonferrous metals; chemicals; products of petro­
leum and coal; rubber. The nonmunitions division includes lumber; furniture and finished lumber prod­
ucts; stone, clay, and glass; textile-mill products; apparel and finished textile products; leather; food and
kindred products; tobacco; paper and pulp; miscellaneous industries. Comparable data for 1943 and 1944
appeared in the July issue of the' M onthly Labor Review.
4 N ot available.
3 Less than 0.05.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

365

LABOR TURN-OVER

T able 3.-— M o n th ly L a b o r T u r n -o v e r R a te s (p e r 1 0 0 E m p lo y e e s ) 1 f o r M e n a n d W o m e n
in S e le c te d I n d u s tr ie s E n g a g e d in W a r P r o d u c tio n , M a y 1 9 4 5
Total separation

Quit

2
Total accession

Industry
Men
All manufacturing_______ ______________

Women

Men

Women

M en

Women

_____

6.0

9.2

4.1

6.1

4.4

5.8

Ordnance________ _____ ______ _____________ _ . . .
Guns, howitzers, mortars, and related equipment
Ammunition, except for small arms. . . . _______
T anks___ _ ______ . . . ________ . . . .
__ __
Sighting and fire-control equipm ent... _________

8.2
6.4
9.0
10.1
3.7

12.5
9.5
12.7
25.6
7.0

4.7
3.1
5.5
4.8
2.0

7.9
6.4
8.5
7.3
4.0

4.6
5.9
5.4
4.9
1.9

6.9
5.5
7.1
13.8
2.7

Iron and steel and their products _____ ___________
Blast furnaces, steel works, and rolling m ills_____
Gray-iron castings_______________ _ __________
Malleable-iron castings . . . ________________
Steel castings___ _ _ ___________ _______ _ . .
Cast-iron pipe and fittings___________ . ______
Firearms (6(1 caliber and under) . --------------------

4.4
3.0
6.9
5.6
7.2
6.1
9.6

8.8
7.5
9.9
6.6
11.1
6.6
18.7

2.9
2.1
5.3
4.5
4.8
4.2
2.7

5.8
4.8
7.1
4.7
4.1
5.4
5.6

3.1
2.3
5.6
4.5
4.4
5.0
2.0

5.7
4.1
8.3
4.1
3.3
3.9
4.5

Electrical machinery__ _
. . . . . . _____________
Electrical equipment for industrial use_________ ,.
Radios, radio equipment, and phonographs_____
Communication equipment, except radios_______

3.7
2.8
4.0
4.8

6.1
5.5
6.1
6.4

2.1
1.7
2.2
2.8

4.6
4.1
4.9
5.0

2.2
1.6
2.5
3.0

4.9
4.6
5.0
5.2

Machinery, except electrical_____ _ _ ___. . . ____
Engines and turbines_________________________
Machine tools. _ . . . . . . . . . . . . ___
_ . ..
Machine-tool accessories.. _ ___________ _______
Metalworking machinery and equipment, not
elsewhere classified__
_ _ _ _ ______ _____
General industrial machinery, except pumps . . .
Pumps and pumping equipment _____________

4.0
4.4
3.3
4.1

6.3
6.3
5.6
5.7

2.5
2.7
1.9
2.2

4.7
4.8
3.7
3.8

3.1
3.2
2.2
3.0

4.9
5.6
3.7
3.9

3.4
4.4
3.9

6.5
7.1
6.5

2.1
2.8
2.9

4.6
5.0
5.5

3.1
3.2
2.9

5.2
5.0
8.7

Transportation equipment, except automobiles______
Aircraft______________________ _______ _ ___
Aircraft parts, including engines_____ ______ ____
Shipbuilding and r e p a ir s ...____________ ______

8.8
8.3
5.8
11.2

15.0
18.1
9.9
15.2

4.4
4.2
2.5
5.9

6.8
' 7.3
4.2
9.7

3.9
2.6
2.5
5.5

4.7
4. 1
4.3
6.8

Nonferrous metals and their products.. _ . . . _______
Primary smelting and refining, except aluminum
and m agnesium ... _____________ ____ _______
Aluminum and magnesium smelting and refining.
Rolling and drawing of copper and copper alloys.
Aluminum and magnesium products . . . . . . . . .
Nonferrous-metal foundries, except aluminum
and magnesium ... --------------------------------------

6.7

8.7

4.7

5.8

5.2

6.9

3.7
8.5
5.4
8.0

4.9
6.5
10.0
10.7

3.0
7.6
3.7
5.4

3.3
3.8
5.6
6.6

3.6
8.4
2.7
6.0

4.0
8.6
3.5
8.0

6.2

6.9

4.0

5.6

4.4

7.4

Chemicals and allied products------.
------ -------Industrial chemicals, except explosives__________
Explosives------- ---------------------- . ------- -- ------Small-arms ammunition. _ ______ ____________

5.2
4.2
7.1
7.3

7.9
5.8
11.3
8.8

3.6
2.9
5.1
5.1

6.5
4.1
9.0
7.6

4.3
4.1
5.4
5.0

6.6
4.2
9.4
6.9

1 These figures are presented to show comparative turn-over rates and should not be used to estimate
employment.
2 These figures are based on a slightly smaller sample than that for all employees, inasmuch as some
firms do not report separate data for women.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Building Operations

Building Construction in Urban Areas, June 1945
THE value of building construction started in urban areas of the
United States during June 1945 reached a total of 144 million dollars,
gaining 7 percent over the previous month and 24 percent over June
a year ago. For the third consecutive month, non-Federally financed
work increased substantially while Federal construction experienced a
decline. This trend was especially pronounced in June when the
value of non-Federal building rose 23 percent and Federal contract
awards dropped 38 percent.
Both new residential construction and additions, alterations, and
repairs gained materially during the month, 14 and 33 percent,‘respec­
tively. New nonresidential building, on the other hand, fell off 17
percent because of a 52-percent decline in Federally financed work.
T able 1 .— S u m m a r y o f B u ild in g C o n stru c tio n in A l l U rb a n A r e a s , J u n e 1 9 4 5
Number of buildings

Valuation

Percent of change
Percent of change
from—
June 1945 (in
from—
thousands
■Tune 1945
of dollars)
M ay 1945 ■Tune 1944
M ay 1945 June 1944

Class of construction

______

73, 878

+7.1

+ 9 .9

144, 298

+ 6 .5

+24. 3

N ew resid e n tia l..---------- -- ----------N ew nonresidential_______________ Additions, alterations, and repairs___

12, 527
11.812
49, 539

+ 9 .3
+ 16.3
+ 4 .6

+24.6
+55.7
-. 1

53,120
43, 868
47, 310

+13.5
-1 7 .4
+33.0

+45.0
-1 2 .2
+60. 3

All building construction ___

There was an 8 -percent rise over May in the number of new dwelling
units begun during the month. The total for June was 13,586 units,
as compared with 12,530 in May. Privately financed units increased
from 1 1 , 2 2 2 to 11,988 and Federally financed from 1,308 to 1,598.
Comparison of June 1945 and June 1944
Chiefly responsible for the 28-million-dollar gain over the year in
building construction was the 60-percent increase in additions, alter­
ations, and repairs. This type of construction comprised one-third of
the total dollar volume during June 1945 as compared with one-fourth
in June a year ago, rising from 30 million dollars to 47 million dollars.
New residential construction, too, gained markedly, 45 percent, where­
as new nonresidential building dropped off 1 2 percent.
366


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

367

BUILDING OPERATIONS

T able 2.— N u m b e r a n d V a lu a tio n o f N e w D w e llin g U n its in A l l U rb a n A r e a s , b y
S o u rc e o f F u n d s a n d T y p e o f D w e llin g , J u n e 1 9 4 5
Valuation

Number of dwelling units
Percent of
change from—

Source of funds and type of dwelling
June 1945

June
1944

M ay
1945

Percent of
change from—

June 1945
(in thou­
sands of
dollars)

June
1944

M ay
1945

________

13,586

+ 8 .4

+17.5

52,610

+13.2

+45.8

Privately financed. ________________
1family __ ____ ____
2family 1 . . ________
M ultifam ily2 ______ _ . . . . .
Federally financed____ _________ . . .

11,988
10,437
550
1,001
1,598

+ 6 .8
+ 9 .7
-4 1 .1
+29.8
+22.2

+20.2
+38.2
-6 0 .5
-2 .4
+ .1

48,187
43, 551
1, 941
2,695
4, 423

+12.0
+15.6
-3 8 .5
+23.1
+28.2

+52.1
+83.8
-6 0 .5
-12. 3
+ .5

All dwellings

.. . ..

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

Comparison of First 6 Months of 1944 and 1945
By the end of the first half of 1945, the cumulative value of building
construction started in all urban areas was approximately 658 million
dollars, 17 percent above the aggregate for the same period in 1944.
All types of construction financed from other-than-Federal funds
reached higher levels in 1945 than in 1944, with the greatest increase,
51 percent, occurring in new nonresidential building. Although
Federally financed work as a whole increased slightly, new residential
construction declined 29 percent. Federal nonresidential building
remained the same, whereas additions, alterations, and repairs were
almost 3 times as great in 1945 as in 1944.
T able 3. — V a lu e o f B u ild in g C o n s tru c tio n S ta r te d in A l l U r b a n A i e a s , b y C la s s o f
C o n s tru c tio n , F ir s t 6 M o n th s o f 1 9 4 4 a n d 1 9 4 5
Valuation (in millions of dollars)

f

First 6 months
of—
1945

1944

Per­
cent of
change

Other than Federal

Federal

Total construction
Class of construction

First 6 months
of—
1945

1944

Per­
cent of
change

First 6 months
of—
1945

1944

Per­
cent of
change

All construction.. . . . . .

658

563

+16.9

183

179

+ 2 .2

475

384

+23.7

N ew residential.. . . ___. .
N ew nonresidential_______
Additions, alterations and
repairs__________ ______

202
260

197
221

+ 2 .5
+17.6

20
144

28
144

-2 8 .6
«

182
116

169
77

+ 7 .7
+50.6

196

145

+35.2

19

7 +171. 4

177

138

+28.3

1 Percentage change not computed since both periods report the same valuation.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

368

MONTHLY LABOR REVIEW— AUGUST 1945

T able 4.— N u m b e r a n d V a lu a tio n o f N e w D w e llin g U n its in A l l U rb a n A r e a s , b y
S o u rc e o f F u n d s a n d T y p e o f D w e llin g , F ir s t 6 M o n th s o f 1 9 4 4 a n d 1 9 4 5
Number of dwelling units
Source of funds and type of dwelling

All dwellings . . . . . . . __ .

______

Privately financed. ______ ______ _ _
1family_____ ________
2family 1______________
Multifamily 2____________________
Federally financed___________________

First 6 months of—
1945

1944

57, 946

64, 542

51,053
_.41, 761
___
3,828
5,464
6,893

53,346
40,232
5,903
7, 211
11,196

Percent
of
change

Valuation (in thousands
of dollars)
First 6 months of—

Percent
of
change

1945

1944

-1 0 .2

199, 517

195, 422

+ 2.1

- 4 .3
+ 3.8
-3 5 . 2
-2 4 .2
-3 8 .4

181,046
153, 583
11, 727
15, 736
18, 471

168,600
127, 354
20,181
21, 065
26, 822

+ 7 .4
+20.6
-4 1 .9
. -2 5 .3
-3 1 .1

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

Construction From Public Funds, June 1945
The value of contracts awarded and force-account work started
during June and May 1945 and June 1944 on all construction projects,
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 in urban areas of the United States.
T able 5. — V a lu e o f C o n tra c ts A w a r d e d a n d F o r c e -A c c o u n t W o r k S ta r te d o n C o n stru c tio n
P r o je c ts F in a n c e d F ro m F e d e ra l F u n d s , J u n e 1 9 4 5
Value (in thousands of dollars) of contracts
awarded and force-account work started
Source of funds
June 1945 1

M ay 1945 2

June 1944 2

All Federal sources_________________________________

67,185

89, 223

239,322

War public works. ____ . . . _______ ___________
Regular Federal appropriations 3_______ ____________
Federal Public Housing Authority____________
____

2,039
60,481
4,665

2,591
81,921
4, 711

9, 722
222, 296
7,304

1 Preliminary; subject to revision.
2 Revised.
2 Excludes the following amounts (in thousands of dollars) for ship construction; June 1945, 16,818; M ay
1945, 18,310; June 1944, 116,064»

[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 de­
rived 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 construction
within the corporate limits of cities in urban areas is included in the
tabulations.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BUILDING OPERATIONS

369

Reports of building permits which were received in June 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 build­
ing 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 $21,940,000 in June 1945, $35,548.000
in May 1945, and $34,086,000 in June 1944.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FCmyiCTORY
BUY

UNITED

STATES

WAR
BONDS
AND

STAMPS

,

Trend o f Employment, Earnings and Hours

Summary of Employment Reports for June 1945
THE total number of employees in nonagricultural establishments
was 37,495,000 in June, 137,000 less than in May 1945 and 1 y3million
less than in May 1944. The decline over the month was the first
May-to-June decline in 7 years. Normally, there are seasonal in­
creases in the nonmanufacturing industries. This year manufacturing
cut-backs more than wiped out any seasonal gains.
Industrial and Business Employments
Manufacturing production-worker employment declined by a little
more than 200,000. This was localized in the munitions group and
reflects contract cancellations and terminations. Declines of 1 0 , 0 0 0
or more were reported by the transportation-equipment, iron and steel,
automobile, machinery, electrical machinery, nonferrous, and chemical
groups.
The largest decline during the past year and a half was in the trans­
portation-equipment group in which there were 1,616,000 as compared
with a peak of 2,626,000 in November 1943. Although the ship- *
building, aircraft, aircraft-engine, and tank industries all contributed
to the over-all decline, the aircraft and aircraft-engine industry to­
gether accounted for the major share. This is the first month in 1945
that declines in aircraft were greater than in shipbuilding.
Almost all the major groups which comprise the nonmunitions
group of factory works reported employment increases. All but one
of these gains were less than 1 0 ,0 0 0 . The food group, which added
30,000, reported seasonal increases in most industries. The gain
in slaughtering and meat packing reflects an increase in the volume of
livestock.
Anthracite mines, operating with a new contract, reported 64,500
miners as compared with the strike-depi essed low of 9,000 in May.
The signing of the coal contracts brought employment back to ap­
proximately the level in April 1945 and only slightly below June of
last year.
370


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

371

TREND OF EMPLOYMENT, EARNINGS, AND HOURS

T a b l e 1.— E s tim a te d N u m b e r o f P r o d u c tio n W o rk e rs a n d I n d e x e s o f P r o d u c tio n -W o r k e r
E m p lo y m e n t in M a n u f a c tu r in g I n d u s tr ie s , b y M a jo r I n d u s tr y G ro u p

1

ProductionEstimated number of production worker
indexes
workers (in thousands)
(1939=100)
Industry group
M ay
1945

Apr.
1945

June
1944

June M ay
1945 2 1945

_________________________ ___ 12,201
All m anufacturings
7, 028
- ______
_________
Durable g o o d s ____-5,173
Nondurable goods____ _____________ _______

12,405
7, 255
5,150

12,678
7,471
5,207

13,610
8,246
5,364

148.9
194.6
112.9

151.4
200.9
112.4

Iron and steel and their products ------------ -------------Electrical machinery_______ _ ______ ____ ___
Machinery, except electrical___ . . . __________ ____ .
Transportation equipment, except automobiles______ Automobiles
_ ....
___ . . . . . . . ____ .
Nonferrous metals and their products_______ _______
Lumber and timber basic products___________________
Furniture and finished lumber p ro d u cts___ _____ _
Stone, clay, and glass products ............... .
.

1,564
656
1,090
1,616
606
391
447
330
328

1,606
670
1, 108
1,744
634
401
443
329
320

1,631
682
1.130
1,874
659
404
438
331
322

1,672 157.7
745 253.2
1,210 206.3
2, 334 1017.9
703 150.7
423 170.5
476 106.3
345 100.5
338 111.7

162.0
258.7
209.6
1098.9
157.5
174.9
105.3
100.2
109.1

Textile-mill products and other fiber manufactures____
Apparel and other finished textile products. . . . . . . .
Leather and leather products.. . _________________ . .
Food ______ . . ______
... .
. ____ . . .
Tobacco manufactures___________ _. _________ ____
Paper and allied products____________________ . . . . .
Printing, publishing, and allied industries. . . . . . . . .
Chemicals and allied products. _ . ________ . . . ----------Products of petroleum and coal______ ______ .
Rubber products________ _______ ________________
Miscellaneous industries.. ____________ _______ . . .

1,039
794
307
997
81
302
330
613
135
184
391

1,035
801
303
967
80
299
326
623
134
189
393

1,046
819
305
975
81
301
326
633
133
192
396

1,104
867
313
1,038
83
311
330
584
132
193
409

June
19452

90.9
100.5
88.5
116.7
86.3
114.0
100.5
212.8
127.3
152.3
160.0

90.5
101.4
87.4
113.2
85.4
112.6
99.5
216.3
126.3
155. 9
160.7

1 The estimates and indexes presented in this table 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. The term “production worker” has been substituted for the term “wage earner” which has
been used in our previous releases. This conforms with the terminology and standard definitions of classes
of workers in manufacturing industries formulated by the Division of Statistical Standards of the U. S.
Bureau of the Budget. The use of “production worker” in place of “wage earner” has no appreciable effect
on the employment estimates and indexes since there is very little difference in the definitions.
2 Preliminary.

Public Employment
An increase of 33,000 in employment of the Federal Government
outside continental United States in June 1945 was partially offset by
a decline on the continent, and resulted in bringing total employment
in all branches to 3,654,000. The decline on the continent was in
war agencies, mainly in the War and Navy Departments.
In reducing its staff by 4,300, the Treasury Department reversed its
previous generally upward trend. The Post Office Department did
likewise, with a staff cut of 1,400. The main offsetting increase,
among agencies other than war agencies, occurred in the Commerce
Department where the continuation of the agricultural census was
responsible for additional employment of 6 , 1 0 0 .
Source of data.—Data 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
included in construction employment (table 5), and navy-yard em­
ployment 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.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

372

MONTHLY LABOR REVIEW— AUGUST 1945

T able 2. — E m p lo y m e n t in R e g u la r F e d e ra l S erv ic e s a n d in G o vern m en t C o r p o ra tio n s,
in S e le c te d M o n th s

Executive1 Legislative

Total

Year and month

Judicial

Govern­
ment cor­
porations 2

1939____________________ . . . _____
________ _____
1 9 4 0 . _ . __ . . .
1941 _ _ ...... ...................... . . . _____
1942______________________________
... ...
1943.. ____ ________ ____
1944.._ . . . ___
__________

952, 441
1,036, 229
1, 400,168
2, 211,609
3, 268, 005
3, 294, 289

920, 053
1, 001, 591
1, 361, 404
2,170, 223
3,224, 068
3, 248, 966

5, 336
5,851
6, 055
6,464
6,146
6,154

2, 322
2,499
2,517
2, 653
2, 622
2,679

24, 730
26, 288
30,192
32, 269
35,169
36, 490

April 1945________________ _____ _ . . .
M ay 1945 3______ _____________ _______
June 1945 3______ . . ______
___ _

3,613,169
3, 638,147
3,653,765

3, 570, 080
3, 595, 249
3,611, 087

6, 346
6, 361
6, 349

2,626
2,617
2,613

34.117
33,920
33, 716

June
June
June
June
June
June

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).
Includes employees stationed outside continental United States. Beginning March 1945, data exclude
10,324 employees of the N a v y Department who had been held prisoners of war by the enemy since about
January 1942.
2 Data are for employees of the Panama Railroad Company, the Federal Reserve banks, and banks of
the Farm Credit Administration, who are paid out of operating revenues and not out of Federal appropria­
tions. Data for other Government corporations are included under the executive service.
3 Preliminary.

T able 3.— E m p lo y m e n t in th e E x e c u tiv e B r a n c h o f th e F e d e ra l G o vern m en t, b y W a r a n d
O th er A g e n c ie s , in S e le c te d M o n th s

1
Other agencies

War agencies 3
Y ear and month

Total

Outside
Continen­ continen­
tal
All areas
All areas tal United
United
States
States 3 4

Conti­
nental
United
States

Outside
continen­
tal
United
States 3

1939
______________
920,053
1940-. . . . . . . ___ 1, 001, 591
1941_________ ______ 1, 361, 404
1942_________________ 2,170, 223
3, 224, 068
1943_____ ____ ______
1944.. __ . . . . .
. 3, 248, 966

202, 752
261,027
570, 708
1, 308,029
2,410, 601
2,427, 696

173, 602
215,314
497, 059
1, 135,092
2, 131, 896
2,060, 680

29,150
45, 713
73, 649
172, 937
278, 705
367,016

717, 301
740, 564
790, 696
862,194
813, 467
821, 270

708,132
728,996
777,472
848,011
798, 336
805,662

9,169
11,568
13, 224
14,183
15,131
15, 608

April 1945________________ 3, 570,080
M ay 1945 s________________ 3, 595, 249
June 1945 5__________ _ . . . 3, 611, 087

2,689, 936
2, 702, 723
2, 716, 323

2, 056, 697
2, 038, 624
2,018, 847

633, 239
664,099
697,476

880,144
892, 526
894, 764

863, 565
876, Oil
878,174

16, 488
16, 515
16, 590

June
June
June
June
June
June

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
Aeronautics, The Panama Canal, and the emergency war agencies.
3 Includes Alaska and the Panama Canal Zone.
4 Beginning March 1945, data exclude 10,324 employees of the N a v y Department who had been held
prisoners of war by the enemy since about January 1942.
3 Preliminary.

Employment in Shipyards
Employment in shipyards continued to decline during June 1945,
although the net loss of 49,600 workers in June was less than the
77,600 decline in employment during May and the 77,000 decline
during April. During the first 6 months of 1945, shipyard employ­
ment declined 314,600. The June 1945 employment was 582,700 less
than the peak for the industry in December 1943.
During June 1945, employment in private shipyards declined
49,500, while United States navy yards showed a net loss of only 1 0 0
workers. Because of intensified recruiting by the Navy Department,
made necessary by the increased repair load, employment in the two
Pacific Coast navy yards and two naval drydocks increased by 3,100.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TREND OF EMPLOYMENT, EARNINGS, AND HOURS

373

In spite of the fact that total employment in shipyards declined,
the number of workers engaged in service and repair of all types of
naval and cargo vessels increased 14,600 in June. This increase on
repair work was offset, however, by a decrease of 64,200 in the number
of workers engaged in new construction. Of the total of 1,139',800
workers, 748,100 were engaged in new construction; the remaining
391,800 were engaged in service and repair work—34 percent of the
total as compared with 23 percent last December.
Shipyards in the North Atlantic region had the greatest numerical
loss in employment during June, 25,900, while Pacific Coast yards
were second with a loss of 9,400 workers. However, shipyards in the
Great Lakes region had the greatest percentage decrease in employ­
ment, 16.8 percent; Inland yards were next highest, with a decrease
of 15.4 percent.
Pay rolls of shipyard workers for June amounted to $327,558,000,
which was $14,415,000 less than pay rolls for May.
T able 4. — T o ta l E m p lo y m e n t a n d P a y R o lls in U n ite d S ta te s N a v y Y a r d s a n d P r iv a te
S h ip y a r d s W ith in C o n tin e n ta l U n ite d S ta te s, b y S h ip b u ild in g R e g io n , J u n e 1 9 4 5

Employment (in thousands)

Pay rolls (thousands of
dollars)

Shipbuilding region
June
1945 i

May
1945

June
1944

June
1945 i

M ay
1945

All regions-___United States navy yards 2 . . . _ . . .
Private shipyards__________________

1.139. 8
315.7
824.1

1,189.4
315.8
873.6

1,588.3
331. 2
1, 257.1

327, 558
93, 591
233,967

341,973
93, 571
248,402

North Atlantic____
. . . ..
South Atlantic . . . .
____________
Gulf__________________________________
Pacific. . _ . .
.
...
Great L akes.. . . .
.
.........
Inland.. . ______________ ____________

438.0
106.2
137.0
407.1
30.7
20.8

460.9
109.3
141.2
416.5
36.9
24.6

576.5
139.6
217.8
525.2
65.2
64.0

138,383
27,474
36,041
111,081
8,137
6,442

145, 665
28,263
37,151
113,499
9,784
7, 611

June
1944
442,648
90,987
351, 661
(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. Data are also included in the Federal executive service (tables 2 and 3).
3 Break-down not available.

Data on employment and pay rolls are received monthly by the
Bureau of Labor Statistics directly from all private shipyards. Data
for United States navy yards are received monthly from the Navy
Department. Employees in the navy yards arc also included in data
for the Federal executive service (tables 2 and 3 ).
Construction Employment
Employment on new construction rose to 967,200 in June 1945 from
a total of 918,000 in the preceding month and from 841,000 a year ago.
Gains for the month and over the year were entirely on non-Federally
financed projects, Federal construction employment having declined
slightly during both periods.
All types of non-Federal projects showed employment increases this
month, with by far the greatest (25,400) occurring in new residential
construction. This type of private work has been stimulated to a
large extent by the inauguration of a new building program by the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

374

MONTHLY LABOR REVIEW— AUGUST 1945

National Housing Agency, known as H-2 housing, designed to meet
conditions of general congestion impeding the war effort and to lay a
pattern which will enable the building industry to expand as rapidly as
additional materials and manpower become available. The total nonFederal employment gain for the month was 50,100 or 9 percent.
However, the increase over a year ago was even greater, 159,900 or
36 percent, primarily because almost two and a half times as many
persons were employed on new nonresidential building this June as
last (199,700 as compared with 83,000).
Federal construction employment, on the other hand, decreased by
3,600 from May 1945 and by 8,200 from June 1944. The decline
during the month was accounted for principally by a 2,500 drop on
new nonresidential building. In spite of the current drop, Federal
nonresidential work was one-third greater this June than last. Most
other types of Federal construction showed employment decreases
from a year ago.
T a b l e 5 . — E s tim a te d E m p lo y m e n t a n d P a y R o lls on C o n stru c tio n W ith in C o n tin e n ta l
U n ite d S ta te s , J u n e 1 9 4 5
Pay rolls (in thousands
of dollars)

Employment (in
thousands)
Type of project
June
1945 i

M ay
1945 2

June
1944

June
1945 i

M ay
1945 3

June
1944

N ew construction, total 3„-------------------------------At the construction site-----------------------------Federal projects 5--------------------------------Airports__________________________
Buildings-------------------------------------Residential-----------------------------N onresidential6-----------------------Electrification_____________________
Reclamation_______________________
River, harbor, and flood control------Streets and highways---------------------Water and sewer system s---------------Miscellaneous_____________________
Non-Federal projects---------------------------Buildings---------------------- --------------Residential____________________
Nonresidential-------------------------Farm dwellings and service buildings.
Public utilities____________________
Streets and highways---------------------State__________________________
County and municipal-------------Miscellaneous_____________________
Other *_____________________________ _____

967.2
831.1
224. 6
6.5
173.7

918.0
784.6
228.2

841.0
679.4
232.8
19.9
147.4
27.1
120.3
.5
14.3

(4)
(4)
54,149

16.7
17.0
136.1

(4)
(4)
52, 573
1,124
41, 552
3,042
38, 510
131
1,627
2,960
1,855
555
2, 769
(4)
72,353
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

(4)
(4)
45, 603
3,358
29, 673
5,811
23,862
104
3,128
4,086
3,087
845
1,322
(4)
44,962
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

Maintenance of^itate roads 8----------------------------

85.5

(4)

6.0
12
.6
6.6

1,212

12.0

176.4
.2
164.2

6.6
12.8
11.2
2.9
10.2

14.1
9.8
3.1

21.0

556.4
309. 2
111.5
197.7
102.5
106.9

9.0
13. 0
15.8
133. 4

446.6
197.2
114.2
83.0
110. 5
93.7
31.3
15.6
15.7
13. 9
161.6

43,874
2,959
40,915
136
1,631
2, 489
2,104
547
2,156
(4)
79, 438
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

84.2

91.1

(4)

161.7
.7

606. 5
336. 6
136.9
199.7
114.2

111.0
27.7
11.0

11.6

22.0

17.6
5.3

6.8

(4)

i Preliminary.
3 Data are for all construction workers (contract and force-account) engaged on now 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 con­
struction work of the type usually chargeable to capital account.) The construction figure included in the
Bureau’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.
* Data not available.
.
,
, ,, .
3 Includes the following force-account employees, hired directly by the Federal Government, and their
pay rolls: June 1944, 28,242, $5,654,000; M ay 1945, 18,684, $3,743,900; June 1945, 18,943, $3,596,300. These
employees are also included under the Federal executive service (tables 2 and 3); all other workers were
employed by contractors and subcontractors.
. , T
8 Includes the following employees and pay rolls for Defense Plant Corporation (RFC) projects: June
1944, 40,364, $9,002,200; M ay 1945, 16,184, $3,553,300; June 1945, 15,788, $3,771,200.
? 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.
8 Data for other types of maintenance not available.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

»

T R EN D OF E M P L O Y M E N T , E A R N IN G S, AND H O U R S

375

Source of data.—For construction projects financed wholly or par­
tially 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 sponsoring
the project. Force-account employees hired directly by the Federal
Government are also included in tables 2 and 3 under Federal executive
service.
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 Administration.

Detailed Reports for Industrial and Business
Employment, May 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 a b le 1.— E s tim a te d N u m b e r o f E m p lo y e e s in N o n a g r ic u ltu r a l E s ta b lis h m e n ts , b y
I n d u s tr y D iv is io n
Estimated number of employees (in
thousands)
Industry division
M ay
1945

April
1945

March
1945

M ay
1944

. . ------ . . . ____

37, 632

37, 797

38,062

38, 672

Manufacturing2
__ _____ _ _ __
- _____ _
__
Mining _ _ _
_
..
. _
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.
---- -- . . . .. ------- . . . . . .

14,810
728
769
3,800
7,023
4, 496

15,102
761
699
3,792
6,996
4,444

15,368
796
636
3,788
7,084
4, 394

16,122
839
686
3,768
6,962
4, 363

6,006

6,003

5, 996

5, 932

Total estimated em ploym ent1----------

_.

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.
2 Estimates for manufacturing have been adjusted to levels indicated by final 1942 data made available by
the Bureau of Employment Security of the Federal Security Agency. Since the estimated number of pro­
duction workers in manufacturing industries have been further adjusted to preliminary 1943 data, subse­
quent to December 1942, the two sets of estimates are not comparable.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

376

M ONTHLY

LABOR R E V IE W — AUGUST

194 5

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
mates prepared by the Maritime 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 produc­
tion workers only; but the figures for public utilities, brokerage, insur­
ance, and hotels relate to all employees except corporation officers and
executives, while for trade they relate to all employees except cor­
poration officers, executives, and other employees whose duties are
mainly supervisory. For crude-petroleum production they cover
production workers 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
supplied by representative establishments in the 154 manufacturing
industries surveyed. These reports cover more than 65 percent of
the total production workers in all manufacturing industries of the
country and about 80 percent of the production workers 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
nonmanufacturing industries, for March, April, and May, 1945, and
for May 1944, are presented in tables 3 and 5.
The figures relating to all manufacturing industries combined, to
the durable- and non-durable-goods divisons, 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 (b) 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.
Not all industries in each major industry group are represented in
the tables since minor industries are not canvassed by the Bureau.
Furthermore, no attempt has been made to allocate among the
separate industries the adjustments to unemployment-compensation
data. Hence, the estimates for individual industries within a group
do not in general add to the total for that group.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TREND OF EMPLOYMENT, EARNINGS, AND HOURS

377

T able 2. — E s tim a te d N u m b e r o f P r o d u c tio n W o r k e r s in M a n u f a c tu r in g I n d u s t r i e s 1
Estimated number of production workers
(in thousands)
Industry

All manufacturing-----Durable goods____
Nondurable goods.

M ay
1945

April
1945

12, 405
7,255
5,150

12, 678
7, 471
5, 207

March
1945

M ay
1944

12. 940
7, 661
5,279

13.652
8, 315
5, 337

Durable goods
1,606
473.8
72.2
24.5
69.3
16.2
41.5
31.7
32.6
23.5
26.3
45.2
22.5

1, 631
475.4
72.5
24.2
70.9
16.0
41.7
32.0
33.9
23.9
26.8
46.0
22.8

1, 658
478. 5
74.6
25.5
71.8
15.6
41.9
32.7
34.7
24.4
27.5
46.8
23.2

1, 669
481.5
73.4
24.6
75.6
15.1
37.5
33.5
34.6
22.9
27.8
45.8
23.0

60.6
53.3
85.0
63. 5
10.0
23.3
34.1
23.2
41.5
8.2
29.0

62.0
54.3
86.0
67.5
10.3
23.6
34.4
24.1
42.4
8.4
29.8

63.6
55.2
86.9
70.0
10.7
23.9
35.4
24.4
43.0
8.4
30.7

61.7
56.7
88.5
76.2
13.2
27.3
37.4
26.2
46.4
6.7
50.6

Electrical m achinery...........................................................
Electrical equipment.....................................................
Radios and phonographs..______ ______________
Communication equipment___________ ________

670
411.2
113.3
102.3

682
419.7
114.5
103.5

693
426.4
116.7
104.8

747
455.1
128.9
115.0

Machinery, except electrical............. .................................
Machinery and machine-shop products..................
Engines and turbines._________ ______________ _
Tractors--------------------------------------------------------Agricultural machinery, excluding tractors______
Machine tools............. ........................... .........................
Machine-tool accessories_____________ _________
Textile machinery..........................................................
Pumps and pumping equipm ent-..............................
Typewriters........... ............................................... ...........
Cash registers, adding and calculating m achines...
Washing machines, wringers and driers, domestic.
Sewing machines, domestic and industrial...............
Refrigerators and refrigeration equipment................

1,108
432.4
63.2
54.3
41.6
72.7
62.9
26.2
67.7
13.0
28.5
12.5
10.5
49.0

1,130
441.4
65.2
55.6
42.7
73.6
63.9
25.9
68.9
13.0
29.2
12.8
10.8
49.9

1,152
449.9
66.7
57.2
43.9
74.6
64.4
26.4
71.5
13.1
29.8
12.8
11.1
51.1

1,211
469.6
70.9
59.7
45.3
79.1
69.5
27.6
80.5
11.2
33.1
13.5
9.3
52.5

Transportation equipment, except automobiles______
Locomotives...................................................................
Cars, electric- and steam-railroad_______________
Aircraft and parts, excluding aircraft engines_____
Aircraft engines-------------- ----- --------------------------Shipbuilding and boatbuilding.._______________
Motorcycles, bicycles, and parts........................ .......

1,744
33.2
59.4
575.4
192.7
782.9
9.5

1,874
33.5
57.9
619.1
203.5
853.2
9.6

1,970
34.0
58.6
637.6
210.6
917.1
9.5

2,401
36.4
58.5
741.9
255.4
1,179. 3
9.3

A utom obiles.................................................. .........................

634

659

668

710

Nonferrous metals and their products...........................................
Smelting and refining, primary, of nonferrous metals_____
Alloying and rolling and drawing of nonferrous metals, ex­
cept 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.......... ..................

401
38.6

404
39.2

407
39.5

426
51.0

70.9
25.3
13.1
10.9
26.9
70.1
31.2

71.7
26.0
13.2
10.9
26.3
70.6
31.4

72.6
26.3
13.2
11.0
26.2
70.5
32.0

71.5
24.8
14.2
10.4
25.3
76.1
31.7

Lumber and timber basic products.............. .................................. .
Sawmills and logging camps.........................................................
Planing and plywood m ills.................... .............................. . . .

443
217.0
67.8

438
213.7
68.3

448
218.4
69.8

474
232.5
72.2

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....... ..................................................
Wire drawn from purchased rods...........................................
W irew ork......................................................................................
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 fittings..
Stamped and enameled ware and galvanizing____________
Fabricated structural and ornamental metalwork______ ..
M etal 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.....................................................
Firearm s................- ............ ..........................................................

See footnote at end of table.
6 5 6 2 4 3 — 45 ------ 13


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

378

MONTHLY LABOR REVIEW— AUGUST 1945

T able 2.— E s tim a te d N u m b e r o f P r o d u c tio n W o r k e r s in M a n u f a c tu r in g I n d u s tr ie s

Continued
Estimated number of production workers
(in thousands)
Industry
M ay
1945

April
1945

March
1945

M ay
1944

Durable poods—Continued
Furniture and finished lumber products.
Mattresses and bed springs.................
Furniture................... - ...........................
Wooden boxes, other than cigar____
Caskets and other morticians’ goods.
Wood preserving...______________
Wood, turned and shaped..................

329
17.1
147.8
26.2

Stone, clay, and glass products....................................................
Glass and glassware___ ____ ______________ ______ ___
Glass products made from purchased g la ss........... ..........
C em en t.._________ _________________ ____ __________
Brick, tile, and terra cotta...................................................
Pottery and related products----------- ------------ ----------G yp su m ......... ..........................................................................
Wallboard, plaster (except gypsum), and mineral wool.
Lime........................ ........................... .......................................
Marble, granite, slate, and other products........................
Abrasives................... ...............................................................
Asbestos products..................................................................

320

12.0
10.0
21.2
86.6

10.9
16.3
40.3
37.9
4.0
9.3
7.7
13.1

331
17.2
149.3
26.6

338
17.6
152.6
27.1

10.0
21.0

21.3

21.2

322
87.0

327
88.3

10.8

11.1

21.6

335
91.6
10.4
17.0
42.3
41.2
4.2
9.2
8.4
12.4
21.5

20.1

20.8

12.1

12.2
10.1

19.4

16.2
40.5
38.3
4.0
9.3
7.6
13.1
21.4
19.7

1,035
411.4
13.4
85.6

1,046
415.9
13.5
86.3

1,067
424.2
13.5

140.6
96.2

142.1
97.0

145.2
98.6
10.3
28.6
34.1
58.8

21.2

16.1
40.9
38.9
4.1
9.4
7.7
13.8

342
16.4
155.9
28.2
12.4
9.8

Nondurable goods
Textile-mill products and other fiber manufactures___________
Cotton manufactures, except smallwares..................................
Cotton smallwares........ .................. ................................................
Silk and rayon goods______________________ _____ _______
Woolen and worsted manufactures, except dyeing and
finishing...................._...................................................................
H osiery................................................ .................. - ................ .........
Knitted c lo t h .......................................... ......................................
Knitted outerwear and knitted g loves......................................
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.................................. .............. ....................

10.0

10.2

88.0

27.5
33.1
57.2
19.2
9.1
3.2
14.5

27.9
33.4
57.6
19.6
9.1
3.2
14.6

Apparel and other finished textile products___
M en’s clothing, not elsewhere classified__
Shirts, collars, and n ig h tw ea r.,_________
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.......................................................

801
195.6
47.9
11.9
14.3
200.3
14.1
16.8
2.5
10.7

819
198.0
48.5

14.8

10.7
14.6

Leather and leather products......................
L ea th e r.................... ..............................
Boot and shoe cut stock and findings.
Boots and sh o e s................................
Leather gloves and m ittens_________
Trunks and suitcases________ ______

303
38.6
16.1
169.7
11.6

305
38.8
15.9
170.6
11.7
12.1

12.6

Food........... ................. ................ ..........
Slaughtering and meat packing..
Butter................................................
Condensed and evaporated milk
Ice cream..........................................
Flour.................................................
Feeds, prepared..............................
Cereal preparations_______ ____
Baking..............................................
Sugar refining, cane.......................
Sugar, beet._________ ______ _
Confectionery____________ _
Beverages, nonalcoholic................
M alt liq u o r s..................................
Canning and preserving............. .

967
124.4
24.5
15.7
16.0
28.8
21.0
9.3
254.7
14.7
4.5
54.0
26.4
50.1
98.7

975
129.2
23.4
14.8
15.1
28.4
21.1
9.4
254.7
15.3
4.0
56.0
26.4
49.9
101.6

979
136.2

See footnote a t end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

11.2

11.9

12.0

20.0

9.3
3.2
14.9

1,110

437.9
13.5
89.6
152.1
106. 5
10.8

30.0
36.1
62.4
20.3
9.5
3.3
15.7

14.7

862
212.7
53.4
12.4
15.4
213.4
15.3
18.6
3.0
13.0
9.6
14.5

309
39.3
16.1
172.3
11.9

312
40.4
16.2
173.8
12.9

836
201.4
49.4
12.1

14.4
206.9
14.1
19.6
2.5

14.3
212.7
14.4

10.6

10.3

20.6
2.6

11.2

22.6

13.9
14.0
29.0
21.2

9.3
256.8
15.0
3.9
58.1
25.7
49.9
95.8

11.6

1,005
154.6
23.8
14.8
15.6
27.6
19.8
9.3
253.9
14.5
4.4
56.6
27.9
50.1
99. f

TREND OF EMPLOYMENT, EARNINGS, AND HOURS
T

able

2 . —Estimated

379

Number of Production Workers in Manufacturing Industries 1—

Continued
Estimated number of production workers
(in thousands)
Industry
M ay
1945

April
1945

March
1945

M ay
1944

Nondurable goods—Continued
Tobacco manufactures_______ _____________________________
Cigarettes_____ ______ _____ ____ ___ ______ ____________
Cigars____________ ______ _____________________________
Tobacco (chewing and smoking) and snuff. __________ _

80
33.9
32.5
8.3

81
34.4
32.9
8.6

82
34.8
33.2
8.7

82
33.3
36.2
7.7

Paper and allied products___________ __________ ___________
Paper and pulp_____ ___ ____ __________________________
Paper goods, other. ___________________________________
Envelopes___________________________ _____________
Paper bags_____________________________________ ____ _
Paper boxes_____________________________________ ____

299
142.7
43.1
9.2
12.6
75.3

301
143.8
43.8
9.3
12.6
75.8

' 307
146.1
44.8
9.4
12.9
77.4

311
144.9
46.8
9.7
13.5
79.2

Printing, publishing, and allied industries_____ ____ ___ _____
Newspapers and periodicals________ ______ _____________
Printing, book and job__________ __________ . ......... .
L ithograph ing___ ______ ______________ ___________
Bookbinding_______________________ _________________

326
109.2
131.3
24.1
27.2

326
108.8
131.4
24.0
27.1

329
109.3
132.4
24.5
27.6

329
110.0
130.9
24.6
28.3

Chemicals and allied products_____________________________
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 gases_______ __________
Ammunition, small-arms. ______ _________ .
Fireworks. _____________ ______ ____________ _____
Cottonseed oil_________________ ____ ____ ________
Fertilizers______________ _______ ______________________

623
28.8
50.0
12.2
13. 2
53.1
114.1
97.9
5.9
66.1
22.0
13.3
23.7

633
28.9
50.2
12.2
13 2
53.1
114.7
98.5
6.0
67.4
22.9
14.5
27.1

639
29.4
49.9
12.1
13 4
54.6
115.3
98.7
5.9
67.2
23.8
16.3
26.9

592
29.9
51.0
11.8

Products of petroleum and coal ______________ _______ _
Petroleum refining_______________ __________________ . .
Coke and byproducts_________________________ ______
Paving materials___________ ____ __________ ______
Roofing materials_________ ___________

134
92.2
21.8
1.7
9 2

133
91.8
21.8
1.6
9 5

134
91.8
22.0
1.5
9 R

130
87.4
22.9
1.6

Rubber products______________________________ _________
Rubber tires and inner tubes___________________________
Rubber boots and shoes___________________________ . . .
Rubber goods, other___________ ____ ___________ ____ _

189
91.6
16.8
69.4

192
93.2
16.9
71.3

197
95.7
17.4
72.6

195
90.1
20.7
72.9

Miscellaneous industries______________________________ ___
Instruments (professional and scientific) and fire-control
equipment________________________ _____ ____________
Photographic apparatus... _________ _____ ____________
Optical instruments and ophthalmic goods______ ________
Pianos, organs, and parts_________________ ____________
Games, toys, and dolls________ _________ _____ ____ ____
Buttons_____ ____ ________ ______ ______ _____________
Fire extinguishers____________________________

393

396

400

409

59.1
27.3
23.2
7.9
15.4
9.6
4. 5

59.7
27.4
23.3
7.5
15.6
9.6
4.6

59.9
28.0
23.6
7.4
15.9
9.7
4.7

51.7
120.0
69.9
6.1
54.8
30.9
13.4
22.6

63.0
29.2
24.9
7.9
15.4
9.7
6.1

1
Estimates for the major industry groups have been adjusted to levels indicated by the final 1942 and
preliminary 1943 data made available by the Bureau of Employment Security of the Federal Security
Agency. 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 estimates
will not agree with totals shown for the major industry groups. The term “production worker” has been
substituted for the term “wage earner” which has been used in our previous releases. This conforms with
the terminology and standard definitions of classes of workers in manufacturing industries formulated by
the Division of Statistical Standards of the U. S. Bureau of the Budget. The use of “production worker”
in place of “wage earner” has no appreciable effect on the employment estimates since there is very little
difference in the definitions.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

380

MONTHLY LABOR REVIEW— AUGUST 1945

T able 3. — I n d e x e s o f P r o d u c tio n -W o r k e r E m p lo y m e n t a n d P a y R o lls in M a n u fa c tu r in g
I n d u s tr ie s 1
[1939 average=100]

Employment indexes
Industry

Pay-roll indexes

M ay Apr. Mar. M ay M ay Apr. Mar. M ay
1945 1945 1945 1944 1945 1945 1945 1944

All manufacturing_______________________________ 151.4 154.8 158.0 166.7 302.8 317.2 325.5 334.3
Durable goods_______________________________ 200.9 206.9 212.2 230 3 407.2 430.7 444.0 470.9
Nondurable goods---------- -------------- ---------------- 112.4 113.7 115.2 116.5 200.8 206.1 209.7 200.7
Durable goods
164.5
122.4
124.0
134.3
235.5
97.0
131.3
145.6
111. 5
155.1

167.3
123.2
127.7
141. 2
238.7
94.2
131.8
148.6
114.1
158.1

168.3
124.0
125.7
136. 5
251.4
91.2
118.2
152. 3
113.8
148.3

304.1
227.1
251.0
279.1
421.8
193.5
214.4
239.6
208.9
308.2

314.2
228. 5
257.7
283. 5
451.2
193.4
227. 5
252.8
225.6
323.9

162.0
122.0
123.5
135.9
230.3
Cast-iron pipe and fittin g s............................- ......... 97.9
Tin cans and other tinware-------- ------------------ 130.6
Wire drawn from purchased rods--------------------- 144.2
___________________________ 107.2
Wire work
Cutlery and edge tools--------------------------- ------- 152.7
Tools (except edge tools, machine tools, files,
and saws)
__________________ ________ 171.7
Hardware _______________________ ________ 126.8
91.4
Plumbers’ supplies________________________ —
Stoves, oil burners, and heating equipment,
not elsewhere classified-------------------------------- 131.4
Steam and hot-water heating apparatus and
steam fit tin g s --- ------ -------------------- -- ----- 176.0
Stamped and enameled ware and galvanizing— 153.0
Fabricated structural and ornamental metalwork
-- ___________________ _______ 178.8
Metal doors, sash, frames, molding, and trim---- 128.6
Bolts, nuts, washers, and rivets----------------------- 163.0
Forgings, iron and steel . . . - --------------------- 221.6
Wrought pipe, welded and heavy riveted---------- 276.8
245.4
Screw-machine products and wood screws-----Steel barrels, kegs, and drum s.. --------------------- 135.3
Firearms------- --------- ------------- ------------ - - ........... 579.8

190.1
133.4
165.3
223.9
287.9
250.3
138.2
596.6

197.2
138.1
166.8
230.0
291.1
253. 9
138.9
614.4

214.4
170.1
190.9
243.0
313.3
274.0
110.1
1011.1

Electrical machinery------------ ---------------------------Electrical equipment______ . -----------------------Radio and phonographs---------------------------------Communication equipment-----------------------------

258.7
227.5
260.4
318.4

263.2
232.2
263.1
322.3

267.5
235.9
268.3
326.4

288.4
251.8
296. 2
358.0

476.8
425. 5
501.1
535.0

493.8
440.8
520.6
552.1

504.7
452.5
528.7
554.1

512.2
456.4
551.5
562.7

M achinery, except electrical.. .
------------------------Machinery and machine-shop products------------Engines and turbines . . . . --------------------------Tractors... _______________ _______________
Agricultural machinery, excluding tractors-------Machine t o o ls ------- ------------ ----------------------Machine-tool accessories---- ------------- --------- ----Textile machinery-. . . . . ----- ----------------------Pumps and pumping equipment---------- --------- Typewriters____________________ ________ ____
Cash registers, adding and calculating machines.
Washing machines, wringers and driers, do___________ _______ __________
mestic
Sewing machines, domestic and industrial--------Refrigerators and refrigeration equipm ent...........

209.6
213.7
338. 6
173.8
149.4
198.4
249.8
119.4
279.3
79.9
144.7

213.8
218.2
349.3
177.8
153.4
200.9
253.8
118.4
284.4
80.1
148.6

218.0
222.3
357.7
183.0
157.7
203.8
255.8
120. 6
295.0
80.6
151.4

229.2
232.1
380.2
191.0
162.7
216.0
276.4
125.8
332.2
69.0
167.9

385 8
386.4
682.9
272.0
288.7
347.6
429.9
223.9
576.2
166.0
273.8

407.0
409.8
732.4
278.4
312.5
370.9
448.7
228.8
593.2
164.4
287. 5

419.2
419.8
769.3
287.5
324.6
382.0
456.9
236.4
630.4
165.9
298.9

428.8
426.1
813.8
298.0
332.6
381.3
470.9
227.3
698.7
140. 2
329.7

Transportation equipment, except automobiles.........
Locomotives .
. . ______ — --------Cars, electric- and steam-railroad--------------------Aircraft and parts, excluding aircraft engines----Aircraft e n g in e s ____ ___ __________ -- -----Shipbuilding and boatbuilding-----------------------Motorcycles, bicycles, and parts----------------------

1098.9
512.5
242.2
1450.4
2167.0
1130.7
135.6

Iron and steel and their products--------------------------Blast furnaces, steel works, and rolling mills. — .
Gray-iron and semisteel castings----------- -------Malleable-iron castings_______________________

319.1
229.1
269.4
298.9
457.7
190.2
231.2
257.5
235.9
332.4

310.9
221.1
250.4
276.0
461.4
176.0
195. 5
252.7
225.0
308. 5

174.7 179.7 181.7 322.8 342.7 352.1 339.3
128.9 131.4 128.4 268.4 275.0 280.7 260.4
92.5 94.2 93.5 171.7 177.4 180.4 168.6
134.4 137.8 133.8 246.9 264.6 269.7 252.5
179.2 182.1 187.2 334.4 348.0 349.7 353.7
154.8 156.4 159.3 322.8 323.0 331.4 313.0
340.8 364.6 368.7 435.2
239.6 260. 2 273. 1 317.9
328.1 334.6 344.8 369.0
431.5 460.8 472.0 479.9
585. 5 614.1 609.3 605.6
476. 7 501. 4 515.3 528. 3
259.4 295.1 268.8 216.0
1299. 6 1299.3 1404. 6 2304. 3

167.3 171.7 171.4 180.6 287.7 327.0 315.4 322.0
134.4 137.3 142.1 119.1 270.7 292.1 304.7 258.5
139.4 141.9 145.3 149.5 249.9 260.2 266.0 258.6
1180.9 1240.9 1512. 7 2290.7 2502.8 2645.4 3127.3
518.0 525.7 562.7 1167.8 1194.1 1233. 2 1272. 9
236.3 239.1 238.4 485.4 487.1 506.4 483.0
1560. 4 1607.0 1869.9 2837. 0 3070. 7 3190. 3 3557.3
2288.8 2368.8 2872. 3 3703. 0 3957.0 4279.7 4946. 3
1232. 2 1324. 5 1703. 2 2447. 0 2724. 6 2906. 6 3645. 0
137.5 136.8 133.2 265.9 268.2 263.3 245.3

Autom obiles..----------------------------------------------------- 157.5 163.7 166.1 176.5 278.5 302.9 310.9 324.4
N onferrous 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------------------------------Sheet-metal work, not elsewhere classified-..........

See footnote at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

174.9 176.3 177.6 185.7 331.3 343.9 348.1 347.9
139.8 141.8 143.0 184.6 261.5 269.1 265.4 342.1
182.6
124.6
91.1
89.5
131.5
297.5
166.2

184.6
128.3
91.3
89.4
128.5
300.0
167.5

187.1
129.5
91.2
90.4
127.9
299.2
170.8

184.2
122.4
98.3
86.0
123.4
323.2
169.2

340.7
265.1
158.5
162.4
242.0
525.2
320.0

362.3
278.5
162.9
165.8
236.2
554.0
318.4

367.0
287.5
164.4
169.5
236.1
556.0
335.4

339.9
253.2
160.6
155.8
222.4
570.1
314.3

381

TREND OF EMPLOYMENT, EARNINGS, AND HOURS

T able 3. — In d e x e s o f P r o d u c tio n -W o r k e r E m p lo y m e n t a n d P a y R o lls in M a n u fa c tu r in g
I n d u s tr ie s

1— Continued
Employment indexes

Pay-roll indexes

Industry
M ay Apr. Mar. M ay M ay Apr. Mar. M ay
1945 1945 1945 1944 1945 1945 1945 1944
Durable poods—Continued
Lumber and timber basic products______ _______ 105.3 104.3 106.5 112.9 197.1 196.3 195.9 208.4
Sawmills and logging camps__________________
75.1 74.2 75.8 80.7 142.9 141.2 140.4 152.1
Planing and plywood mills . _ ___________ _ _.93.i 94. ( 96. ( 99. i 163.8 166.8 168. C 169.9
Furniture and finished lumber products. _. ______
____
Mattresses and bedsprings_________
Furniture___________________________________
Wooden boxes, other than cigar_____ ________
Caskets and other morticians’ g o o d s __________
Wood preserving__________________ ____ _____
Wood, turned and sh a p ed ... ________________

100.2 101.0 103.0 104.3 187.3 191.6 195.2 187.7
93.2 93.8 95.7 89. 7 168.5 165.9 172.4 154. 6
92.9 93.8 95.8 97.9 172.4 177.4 181.8 175.7
103.5 105.1 106.8 111.4 207.9 210.9 214.2 214.8
96.1 97.3 97. £ 99. £ 172.5 177.7 175.9 168.8
88.5 88.6 89.5 87. S 195.6 196.5 192.3 178.5
96.3 95.6 96.9 96.4 174.9 177.1 179.4 171.6

Stone, clay, and glass products____ _ ____________
Glass and glassware.. ________________ ______
Glass products made from purchased glass_____
C em ent___________________ _______________
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______
A b r a siv e s ............ ................................ ___ _ . . ..
Asbestos products___________________________

109.1
124. C
108.9
68.6
71. C
114.6
80.1

111.4
126.5
110.8
67.6
72.0
117.6
82.4

114.2
131.2
103.7
71.2
74.5
124.6
85.6

187.9
199.8
191.4
114.0
121.1
183.6
131.8

193.3
206.1
189.2
114.5
124.1
188.6
140.1

193.2
207.1
192.6
108.3
121.0
191.3
144.6

189.8
208.4
170.1
108.7
118.9
192.5
144.9

114.3 114.0 115.8 113.0
80.9 80.6 81.8 88.4
70.7 70.9 74.7 67.2
273.5 277.0 279.7 278.3
122.4 123.9 126.5 131.0

209.9
158.6
109.7
481.0
246.7

220.5
165.2
117.5
483.9
259.2

214.0
159.8
114.7
495.0
266.5

195.5
174.2
101.5
468.2
255.8

109.7
124.6
107.8
67.9
71.4
115.8
81.7

Nondurable goods
Textile-mill products and other fiber manufactures
90.5 91.4 93.2 97.1 164.3 168.3 173.0 171.0
Cotton manufactures, except smallwares____ . . 103.9 105.0 107.1 110.6 200.2 201.8 206.5 202.4
Cotton smallwares___________________________ 100.7 101.6 101.4 101.1 186.9 193.9 198.0 180.2
71.4 72.0 73.5 74.8 133.7 134.6 139.3 136.1
Silk and rayon goods.. ____________ . ______
Woolen and worsted manufactures, except dyeing
and finishing__________ ________ ________
94.2 95.2 97.3 102.0 178.9 186.8 193.4 192.9
Hosiery___________________ . . . _______ ____ 60.5 61.0 62.0 67.0 95.3 98.8 101.2 105.5
Knitted cloth______ _____________ _________
91.2 93.0 94.1 99.2 160.9 165.3 170.3 168.5
Knitted outerwear and knitted gloves______ . .
97.9 99.1 101.6 106.8 184.8 189.1 195.2 188.7
Knitted underwear. ______ . . . _______ . .
85.8 86.6 88.5 93.6 159.5 165.5 169.1 167.4
Dyeing and finishing textiles, including woolen
_______ _ _ _
and worsted . . . . . . . . .
85.5 86.1 87.9 93.3 141.1 147.5 151.3 152. 2
Carpets and rugs, w o o l__________ ____ ______ 75.2 76.4 78.0 79.2 126.3 137.4 140.0 132.3
Hats, fur-felt. . . .
. . . . . ____ .
...
62.3 62.7 63.7 65.3 122.7 115.9 128.2 120.5
Jute goods, except felts_______________________
88.9 88.8 90.1 92.1 175.4 174.9 178.9 173.9
Cordage and tw ine_______ ________________ . 119.6 120.7 123.3 130.1 227.8 231.6 236.1 236.8
Apparel and other finished textile products________
M en’s clothing, not elsewhere classified____ . _
Shirts, collars, and nightwear .
. . . . . . ___
Underwear and neckwear, m en’s _____ _________
Work shirts . . . . . ................... ...
......
Women’s clothing, not elsewhere classified_____
Corsets and allied garments______________ ____
Millinery _____ ______ _ . . . . _________ _
Handkerchiefs.. . . . . ___ ________ ___ _______
Curtains, draperies, and bedspreads___________
Housefurnishings, other than curtains, etc_____
Textile b ags.. .
___________ _______ _ _ .

101.4
89.5
68.0
73.6
106.5
73.7
75.0
69.0
50.7
63.5
105.5
123.5

Leather and leather products. . . _____ ___________
Leather______________________ ___ ________
Boot and shoe cut stock and findings__________
Boots and shoes . . . . . . . . . . ___. . . . . . .
Leather gloves and m ittens. . . . __________ _
Trunks and suitcases_________________________

87.4 87.9 88.9 89.9 158.9
81.7 82.1 83.3 85.5 147.3
85.2 84.5 85.2 86.0 147.1
77.8 78.2 79.0 79.7 143.2
116.5 117.2 119.5 129.4 207.9
142.4 145.2 151.8 139.8 242.8

164.7
148.3
150.5
150.4
210.6
245.8

167.7
151.1
150.1
153.6
215.1
254.8

156.1
146.8
142.3
139.8
218.8
226.9

Food______________________________________ .
Slaughtering and meat packing._______ _______
Butter. ______ _ ______
. . . ........ ..............
Condensed and evaporated milk______________
Ice cream_____________ ____________________
Flour_________________________ _______ ______
Feeds, prepared_____________________________
Cereal preparations___ _________________ ____ _

113.2
103.3
136.6
161.6
101.9
116.3
136.5
125.0

187.4
167.7
211.6
260.6
142.2
201.1
244.7
232.5

187.3
178.2
196.3
238.7
130.8
201.0
235.6
232. 6|

191.6
216.9
201.9
245.9
137.3
179.3
221.2
216.5

See footnote at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

103.7
90.6
68.8
74.1
107.2
76.2
75.4
80.7
51.8
62.7
100.3
122.2

114.1
107.2
130.3
152.7
96.0
114.5
137.1
125.7

'¡105.9 109.2 178.5 193.0 206.2 182.8
92.1 97.3 156.6 167.1 174.4 166.4
70.1 75.8 123.2 128.8 132.9 134.4
75.0 76.9 149.5 154.8 158.3 149.3
106.5 114.4 201.6 208.8 208.7 206.8
78.3 78.6 131.1 143.6 157.2 128.1
76.9 81.6 130.4 132.2 136.7 139.6
84.8 76.6 84.2 125.8 160.0 101.9
52.7 62.2 96.8 96.0 99.8 114.8
60.6 76.6 133.2 129.4 125.2 144.4
105.1 90.7 194.1 195.4 198.9 159.0
122.9 121.2 210.7 212.9 214.1 192.9

114.6
113.1
125.9
142.9
89.4
117.0
137.5
124.5

117.6
128.3
132.7
152.2
99.6
111.5
128.5
124.8

186.0
162.5
217.5
279.3
145.0
203.1
240.6
226.3

382

M ONTHLY LABOR REVIEW— AUGUST 1 9 4 5

T able 3.— I n d e x e s o f P r o d u c tio n -W o r k e r E m p lo y m e n t a n d P a y R o lls in M a n u f a c tu r in g
I n d u s tr ie s

1— Continued
Employment indexes

Industry

Pay-roll indexes

M ay Apr. Mar. M ay M ay Apr. Mar. M ay
1945 1945 1945 1944 1945 1945 1945 1944

Nondurable goods—Continued
Food—Continued.
Baking
. . ..................... - ..............................
Sugar refining, cane— ----------- --------- - - --Sugar, beet . ____ ____
-- — ...... ...........—
Confectionery.. . . . ------- -- . - ........ - - - -Beverages, nonalcoholic. ----------- . - -M alt liquors___ _____
____ ____
Canning and preserving____
------- ------ ------

110.4
104.0
43.6
108.5
124.1
139.0
73.4

170.4
182. 5
61.6
191.8
164.9
206.8
150.0

170.2
181.3
58.1
198.5
159.7
200.9
142.6

163.8
163.7
60. 5
183.3
168.9
201.9
143.2

Tobacco manufactures-------------------------------- ------Cigarettes________ _____________ - -- -- -Cigars------ ------------- . --- ---Tobacco (chewing and smoking) and snuff--------

85.4 86.7 87.6 88.3 156.4 160.4
123. 5 125.3 126.8 121.4 192.1 200.2
63.9 64.6 65.3 71.1 131.9 131.6
90.7 93.3 94.8 84.5 145.3 154.6

165.2
207.4
135.3
156.9

152.8
182.0
137.9
122.0

Paper and allied products_________ — -------------Paper and pulp ----------------------- -- ---------Paper goods, other----------------------- —- - -- -E nvelopes--. .
__________________ ______
Paper bags . ______ _______ _
Paper boxes____________ ____ ______ ______ -

112.6
103.8
114.5
106.0
113.3
108.9

192.8
182.0
194.0
170.6
199.6
180.3

195.2
183.4
198.2
170.0
208.3
182.3

188.8
177.2
194.6
169.1
198.5
177.2

99.5 99.4 100.2 100.2 141.8 141.1
Printing, publishing, and allied industries-------------Newspapers and periodicals______ _ _____ . - 92.1 91.7 92.1 92.7 122.4 120.7
Printing, book and job_________- ------------------- 103.9 104.0 104.8 103.6 154.4 155.5
92.6 92.4 94.2 94.5 135.5 133.1
Lithographing___ _________ _____ _______ ____
B o o k b in d in g ..-------------------------------------- - . . 105.5 105.2 107.2 109.8 180.3 178.9

142.4
120.2
157.2
136.9
186.0

134.9
116.1
144.8
132.9
180.9

Chemicals and allied products__________ ________
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 gases---------- . ------Ammunition, small-arms_____________________
Fireworks---- --------- ---------------- -------------------Cottonseed oil . . ____. . .
-- ---------- - Fertilizers_____________ . . ------- -----------------

110.4
108.2
38.3
112.6
124.1
138.3
75.5

113.6
104.6
116.5
107.5
113.4
109.5

111.3
106.2
37.6
116.7
120.8
138.1
71.2

115.7
106. 3
119.1
108.1
116.7
111.9

216.3 219.8 221.6
102.4 102.6 104.4
182.5 183.0 182.0
117.9 117.6 116.9
97.4 97.5 98.3
109.9 109.9 113.1
164.1 164.9 165.7
1349. 3 1357. 7 1361.1
149.2 151.3 149.7
1549.1 1581. 2 1576.2
1897. S 1975. 6 2059.2
87.5 95.2 107.1
126.2 144.6 143.4

110.1
102.7
42.1
113.7
131.2
138.9
74.3

117.1
105.4
124.3
111.3
122.1
114.5

171.9
168.8
65.6
184.8
167.2
205.6
144.4

187.4
177.5
185.5
167.9
192.5
175.2

205.4 388.9 391.3
106.3 166.6 167.8
186.1 282.0 277.1
113.5 163.0 166.7
99.4 164.7 165.9
107.1 183.2 181.2
172.5 295.2 295.6
964.2 2096.3 2075.7
154.5 268.1 274.7
1285.3 3185. 2 3149.9
2664. 5 5294.0 5490.6
88.3 183.6 202.5
120.4 292.6 351.3

394.1 358.7
169.5 167.2
280.2 270.7
168.0 158.8
170. 7 163. 6
181.8 173.5
296.7 296.5
2091.6 1499. 0
270.7 271.4
3167.0 2558.2
5759.0 7388. 9
224.5 170.3
340.5 266.8

Products of petroleum and coal-------------- ------ ----- 126.3 126.0
Petroleum refining_______ ____ _____ __ ........ 126.5 126.1
100.6 100.3
Coke and byproducts_____________ ______ _
Paving materials------- ------------------- ------------- 71.0 66.2
Roofing materials------------------------------------------ 114.8 117.8

126.2
126.1
101.5
62.8
117.7

122.7
120.0
105.6
66.8
119.5

226.9
222.6
187.2
133.5
209.2

230.6
227.2
184.6
124.7
222.3

223.9
220.6
182.2
119.5
213.9

212.4
205.2
183.0
133.3
212.2

159.1
172.2
114. 3
137.7

162.9
176.8
117.4
140.3

161.2
166.5
139.8
140.8

280.6
288.6
208.8
243.9

296.4
306.0
219.2
256.1

296.7
301.9
216.3
264.E

283.3
283.0
248.6
248.3

Rubber products------- -------- ---------------------------Rubber tires and inner tubes____ _ . . ----------Rubber boots and shoes_______________ _______
Rubber goods, other________ _____ . . . -------

155.9
169.2
113. c
134.1

Miscellaneous ind u stries_________________________
Instruments (professional and scientific) and
fire-control equipment
Photographic apparatus. . . . -----------------------Optical instruments and ophthalmic goods_____
Pianos, organs, and parts. ___ _________. . . ___
Games, toys, and dolls ______________________
Buttons
. - ____ _______ ___
Fire extinguishers----- -------------------- --

534.3
157. £
199.
103.
82.f
87.
454."

160.7 161.8 163.4 167.3 312.8 322.2 326.3 319.1
540.
158.7
200.5
99.
83.;
87.;
460.1

541.4
162.1
202.7
97.;
85.3
88.4
470.4

570.2
169.3
214.
103.1
82.
88.8
616.1

995.6
265.4
344.3
196.4
161.7
171.3
1028.

1070.4
270.1
347.
189.3
169.
175.
1065.

1068.
275.4
354.3
188.
178.3
180.
1076.

1091.7
273.5
355.1
196.8
159.5
174.3
1292.9

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. Indexes
for individual industries have been adjusted to levels indicated by the 1939 Census of Manufactures, but
not to Federal Security Agency data. The term “production worker” has been substituted for the term
“ wage earner” which has been used in our previous releases. This conforms with the terminology and
standard definitions of classes of workers in manufacturing industries formulated by the Division of Statis­
tical Standards of the U . S. Bureau of the Budget. The use of “production worker” in place of “wage
earner” has no appreciable effect on the employment and pay-roll indexes since there is very little difference
in the definitions.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TREND OP EMPLOYMENT, EARNINGS, AND HOURS

383

T able 4. — E s tim a te d N u m b e r o f P r o d u c tio n W o rk e rs in S e le c te d N o n m a n u fa c tu r in g
I n d u s tr ie s

1
Estimated number of production workers (in
thousands)

Industry
M ay 1945
Mining:
Anthracite_______
________ . . .
______ _
Bituminous coal...........................
. ..
M eta l..______ _______ _______ ________________
_________ _ „
I r o n ________________ ____ _
Copper___ . . . .. _____ ________________
Lead and zin c ...
.
............ .
Gold and silver_______ _____ ____________
Miscellaneous_____________________________ _
T elephone2. . .
_______ _______________________ ..
Telegraph 4
______
Electric light and power 2_ . ___ ____
Street railways and busses 2-_ ___________ . ______
Hotels (year-round)2_______ . .
_ _
.
......................................... . . . . . .
Power laundries
Cleaning and dyeing. _ _____ . . . . _ _____ . ____
Class I steam railroadsi-.. _____
.
_
Water transportation6__ _
....
. . .
_.

9.0
329
68.2
24.6
21.4
14.3
5.3
2.6
(3)
44.2
201
228
350
(>)
0)
1,427
159

April 1945 March 1945 M ay 1944

64.1
305
68.6
24.2
21.7
14.5
5.5
2.7
(3)
44.4
200
229
348
(>)
(i)
1,421
155

65.4
334
69.1
23.9
22.1
14.8
5.6
2.7
404
44.8
201
230
352
0)
0)
1,423
152

68.5
356
82.6
28.8
27.4
16.8
5.8
3.8
407
45.9
202
231
352
(0
(1)
1,425
122

1 The term “production worker” has been substituted for the term “wage earner” which has been used in
our previous releases. This conforms with the terminology and standard definitions of classes of workers
formulated by the Division of Statistical Standards of the U. S. Bureau of the Budget. The use of “pro­
duction worker” in place of “wage earner” has no appreciable effect on the employment estimates in mining
industries since there is very little difference in the definitions. In the power laundries and cleaning and
dyeing industries, the omission of driver-salesmen causes a significant difference. N ew series are being
prepared.
2 Data include salaried personnel.
3 N ot available.
4 Excludes messengers, and approximately 6,000 employees of general and divisional headquarters, and o
cable companies. Data include salaried personnel.
5 Source: Interstate Commerce Commission. Data include salaried personnel.
6 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.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

384
T

able

MONTHLY LABOR REVIEW— AtJGtJST 1945
5 .— I n d e x e s

o f E m p lo y m e n t a n d P a y R o lls
I n d u s tr ie s

in

S e le c te d

N o n m a n u fa c tu r in g

[1939 average=100]
Employment indexes
Industry

Pay-roll indexes

M ay Apr. Mar. M ay M ay Apr. Mar. M ay
1945 1945 1945 1944 1945 1945 1945 1944

Mining:
Anthracite____ ____________ ________________ 10.8 77.4 79.0 82.7 15.1 135.1 149.7 155.8
88.7 82.3 90.2 96.0 211.1 159.6 204.3 215.5
Bituminous coal_____________________________
77.3 77.8 78.4 93.6 128.6 131.2 130.9 148.5
M etal______________________________________
Iron_______________________ ____________ 121.7 120.7 118.8 142.4 215.1 213.0 213.1 229.4
89.9 90.9 92.8 115.1 151.3 155.5 153.2 187.7
Copper_________________________________
Lead and zin c.________ __________________ 92.0 93.1 95.0 108.4 172.0 177.7 180.4 196.5
21.5 22.3 22.6 23.6 27.3 29.8 29.5 30.4
Gold and silver____ ____ _________________
M iscellaneous_____ _______ ______ . . 66.6 67.2 69.2 95.7 110.4 113.1 114.4 158.6
78.3 77.7 76.6 84.5 150.8 151.2 142.5 157.4
Quarrying and nonmetallic_________ _______
Crude-petroleum production i _________________ 82.8 82.7 82.6 82.5 132.4 131.8 132.8 127.9
Public utilities:
127.1 128.2 (*>
Telephone___________________________________ <*)
(0
(2)
Telegraph____________________________ ______ 117.4 117.9 118.9 121.9 174.0 169.9
82.1 82.0 82.1 82.8 117.5 117.4
Electric light and power______________________
117.7 118.3 118.9 119.1 175.7 174.2
Street railways and busses___________________

162.4
170.8
116.8
175.7

153.5
176.1
112.9
168.5

Wholesale trade________
___________ _____
Retail trade________ ____ ____________________ Food_______________ ________________ _____
General merchandise________________
____
Apparel__________________ _____ _ ________
Furniture and housefurnishings 3______________
A utom otive_______________________ ________
Lumber and building material_____ ____ ______

94.5 94.9 95.3 94.4 140.8 144.4
96.9 96.8 99.3 96.9 131.0 132.0
103.0 103.6 105.9 107.3 139.3 139.9
113.3 112.4 117.4 108.5 144.0 143.5
107.6 106.7 111.0 110.4 148.7 148.2
61.6 61.1 62.0 63.2 89.0 88.7
67.9 68.5 68.6 64.8 102.9 106.2
90.7 90.4 89.4 90.4 135.2 135.6

141.4
133.0
141.2
147.6
153.4
88.6
104.3
131.5

133.4
124.2
135.2
132.4
144.5
86.3
94.4
128.3

Hotels (year-round)4____________ . . ____________
Power laundries__________ ____________ ___ _____
Cleaning and dyeing________ . . . ________________
Class I steam railroads s. . . . _ _ . . . . __________
Water transportation 6___ ________ ____ __________

108.5
104.9
119.8
144.4
303.5

166.7
162.2
192.3
(2)
724.7

155.3
161.3
194.2
(O
552.6

108.0
104.7
119.7
143.8
295.5

109.0
105.5
117.4
144.1
290.4

109.0
110.1
124.8
144.2
233.5

168.0
161.9
191.4
00
746.2

165.6
162.5
194.0
G)
729.2

1 Does not include well drilling or rig building.
2 N ot available.
2 Revisions have been made as follows in the data for earlier months:
Retail trade, Furniture and housefurnishings group—February 1945 pay-roll index to 88.2.
4 Cash payments only; additional value of board, room, and tips, not included.
5 Source: Interstate Commerce Commission.
« Based on estimates prepared by the U. S. Maritime Commission covering employment on active deepea 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.

AVERAGE EARNINGS AND HOURS

Average weekly earnings and hours and average hourly earnings for
March, April, and May 1945, where available, are given in table 6 for
both manufacturing and nonmanufacturing industries. (For trend of
earnings since 1939, see page 333 of this issue.)
The average weekly earnings for individual industries are computed
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
average hours worked per week and average hourly earnings shown in
this 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 indi­
cate the general movement of earnings and hours over the period
shown. The average weekly hours and hourly earnings for the man
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

385

TREND OF EMPLOYMENT, EARNINGS, AND HOURS

ufacturing groups are weighted arithmetic means of the averages for
the individual 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 com­
puted by multiplying the average weekly hours by the corresponding
average hourly earnings.
T a b l e . 6 . — E a r n in g s a n d H o u r s in M a n u f a c tu r in g a n d N o n m a n u fa c tu r in g I n d u s tr ie s
MANUFACTURING
Average weekly
earnings 1

Average weekly
hours 1

Average hourly
earnings i

Industry
M ay Apr. Mar. May Apr. Mar. M ay Apr. Mar.
1945 1945 1945 1945 1945 1945 1945 1945 1945

All m anufacturing_______ _____ ______ ____ $46.03 $47.12 $47.40
Durable goods-. ___________ ________ 51. 58 52. 92 53.22
Nondurable goods.. ____ _______________ 38.23 38.80 38. 96

44.1
45.5
42.3

45.1
46.5
43.2

Cents Cents Cents
45.4 104.3 104.4 104.4
46.7 113.5 113.8 113.9
43.5 90.4 89.9 89.6

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______________
T in 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 galva­
nizing______________ _______________
Fabricated structural and ornamental
metalwork_____ ______ . _______
Metal doors, sash, frames, molding, and
trim a____ _________________________
Bolts, nuts, washers, and r iv e ts ________
Forgings, iron and steel________ ___
Screw-machine products and wood screwsSteel barrels, kegs, and drums__________
Firearms___ _________________________

51. 22 52. 07 52.09

46.0

46.9

47.1 111.4 110.9 110.7

56.10
54. 00
52. 51
53.84
42.62
41.73
51.90
44. 97

46.6
46.9
46.0
44.7
46.5
42.9
45.7
44.5

47.0
48.0
47.5
46.8
47.0
45.1
47.2
45.9

47.0
48.4
47.4
46.9
46.4
45.6
48.1
46.1

45.66 47. 36 47. 35
47.48 47. 87 47.61
49.15 50. 07 49. 97

45.7
46.7
45.5

47.4
47.2
46.6

47.3 99.8 100.4 100.1
47.6 100.6 100.5 100.1
46.6 107.9 107.5 107.2

46. 83 49.09 48.76

44.3

46.5

46.6 105.9 105.5 104.7

48.80 49.87 49. 32

46.0

47.4

47.2 105.6 105.1 104.5

46.87 47. 93 48.71

44.6

45.7

46.2 105.0 104.8 105.4

53.18 53. 64 52. 29

47.2

47.4

46.5 112.4 113.2 112.5

50.25
50.99
58. 40
50.09
41.42
59.10

52. 58
51.13
61. 71
51. 73
46.13
57. 56

53.29
52.21
61.62
52.44
41.90
59. 96

45.3
47.9
45.9
47.0
41.6
45.6

47.3
48. 1
48.1
48.4
45.6
44.7

48.2
48.5
48.0
49.0
41.9
46.6

Elentrinal machinery
Electrical equipment___________________
Radios and phonographs.__ ____________
Communication equipment-------------------

48.72
51. 27
42. 03
46.56

49.61
51.91
43.22
47. 47

49.89
52. 53
43.04
47. 03

45.8
46.3
45.0
44.8

46.6
46.9
46.1
45.7

46.6 106.4 106.4 107.0
47.1 110.6 110.6 111.6
45.9 92.8 93.5 93.4
45.5 104.0 103.6 103.0

Machinery, except electrical________________
Machinery and machine-shop products..Engines and turbines__________________
Tractors. ____________________________
Agricultural machinery, excluding trac­
tors______ _____ _____ ______________
Machine tools _______________________
Machine-tool accessories..............................
Textile machinery_____________________
Typewriters
. . ____________ ______
Cash registers, adding and calculating
machines
________________________
Washing machines, wringers and driers,
domestic __________ ___________ Sewing machines, domestic and industrial
Refrigerators and refrigeration equipment

53. 62
52.69
56.48
52. 72

55.49
54. 82
58. 28
52. 73

56.07
55.06
59.91
52.98

46.6
46.6
45.9
45.1

48.1
48.2
47.4
45.7

48.6
48.7
48.0
45.9

115.1
112.9
123.3
116.8

115.3
113.5
123. 3
115.4

115.3
113.0
125.1
115.5

51.38
56. 50
58.86
48. 55
50.00

54.18
59.5S
60. 86
50. 3i
49.40

54. 68
60.41
61. 70
51.12
49.56

44.9
47.7
47.8
47.7
47.8

47.0
50.2
49.4
49. (
48.6

47.5
50.5
49.8
49.7
49.0

114.5
118. £
123.5
102.1
104.6

115.3
118.7
123.3
102.6
101.7

115.1
118.8
123. 2
102.8
101.1

57.40 58.70 59.91

46.8

48.0

48.7 123.4 122.9 123.7

45.37 50.24 48.4S
54.38 57.44 57. 9£
51.59 52.66 52.58

43.2
48.4
45.2

105.1 107.8 106.6
46.6 45.
51. C 51.4 112.8 •113. 2 113.6
114.2 114.2 113.9
46.
46.

See fo o tn o te s a t end o f ta b le.

6 5 6 2 4 3 — 45 -

44


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

56.24
51.64
50. 58
51.49
41.47
38. 82
48. 83
43.18

56. 32
53.18
52. 37
53.81
42.09
41. 19
50. 78
44. 69

120.8
110.9
110.9
115.1
89.9
90.4
106.8
97.4

111.0
106.6
127.3
106.5
99.9
129.5

119. 9
110.8
110.7
114.9
89.6
91.2
107.7
97.7

111.1
106.8
128.4
106.8
101.5
128.7

119.5
111.6
110.7
114.7
91.7
91.5
108.1
97.5

110.7
107.3
128.5
106.9
99.9
128.7

386

MONTHLY LABOR REVIEW— AUGUST 1945

T a b l e 6.

E a r n in g s a n d H o u r s in M a n u f a c tu r in g a n d N o n m a n u fa c tu r in g I n d u s tr ie s —

Continued
MANUFACTURING—Cominued
Average weekly
earnings 1

Average weekly
hours 1

Average hourly
earnings 1

Industry
May
1945

Apr Mar
1945 1945

Ma>
1945

Apr. Mar
1945 1945

M ay Apr. Mar.
1945 1945 1945

Durable goods—Continued
Transportation equipment, except auto­
mobiles...... .........
$59.6 $60. 7
Locomotives........
64.9 65.4
Cars, electric- and steam-railroad .
52.8( 54.3
Aircraft and parts, excluding aircraft
engines___ ____ _____
55. 2( 55. 6(
Aircraft e n g in e s .._____
58. 91 59. 61
Shipbuilding and boatbuilding..... .............. 63. 5C 64. 91
Motorcycles, bicycles, and parts. _____
54. 2f 53. 9"

$61.1
66. 5f
55.7

45.
47.
44.

46.
47.
45.

Cent
47.1 130.
48.
136.9
46., 119. "

Cent
129.
137.
119.

Cents
129.9
136.6
119.8

56. If
62.29
64. 56
53.26

46.
45.
45.
47.

46.8
45.
47.
48.8

47.1
47.
46.9
48.7

118.
130.
138.
110.

119.0
132 1
137.6
109.3

118.9
130.8
138.8
113.5

Automobiles_____

55.6C 58.2, 58.99

43.9

45.5

46.1 126.6 128.1 128.0

Nonferrous metals and their products
Smelting and refining, primary, of nonferrous metals____
Alloying and rolling 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___

49. 55 50.96 51.18

46. C 47.1

47.3 107.7 108.1 108.1

49. 93 50.56 49.61

46.

47.1

46.5 107.0 107.3 106.7

53.41 56. 39 56.40
44. 30 45. 28 46. 06

46.9
45.8

48.9
46.4

48.7 114.6 115.4 115 8
47.1 96.7 97.6 97.9

44.61
47.90
47.86
48.75

46. 07
49. 53
48. 27
51.20

44.9
46.
44.8
45.4

45.7
47.0
45.0
47.1

46.2 98.9 99.3 99 0
47.5 104.0 104.1 104.3
45.6 106.9 106. 3 105. 9
47.4 107.4 108.3 108.0

Lumber and timber basic products__
Sawmills and logging cam ps.. .
Planing and plywood m ills.. . . .

34. 99 35.18 34. 38
33. 98 34.05 33.15
38. 54 38.70 38. 27

43.0
42.5
44.7

43.6
43.1
45.2

43.1
42.5
44.9

81.4
80. 0
85.5

80.7
79.0
85.5

79.8
78.0
85.1

Furniture and finished lumber products
Furniture______
Caskets and other morticians’ goods
Wood preserving______

37.33
37.74
41.14
35.20

37. 90
38. 78
41. 32
34. 24

43.6
43.4
45.7
44.1

44.3
44.2
46.3
44.6

44.6
44.5
46.0
44.1

85.7
87.8
90.4
79.8

85.4
87.8
90.8
79.3

85.0
87.4
90. 2
77.7

Stone, clay, and glass products........
Class and glassware_________ _________
Glass products made from purchased
glass________ _
C em ent..
Brick, tile, and terra cotta.
Pottery and related products_____
Gypsum__________
Lime_______
Marble, granite, slate, and other products
A b ra siv es.___
Asbestos products__

40. 46 41.36 40. 77
40. 65 41.74 41. 27

43.6
41.7

44.5
42.8

44.2
42.8

92.9
97.7

92.9
97.8

92.3
96.8

36. 37
44. 38
34. 95
37. 34
42. 90
38.12
40. 45
49. 43
47.08

36. 27
43.10
34.69
37.78
45. 77
38.06
39. 95
49.74
48. 85

44.1
47.2
42.3
41.5
45.8
47.9
44.3
48.1
46.5

44.3
47.6
43.3
42.0
48.1
49.6
45.6
48.1
48.0

44.0 82.5 82.0 81.6
46.0 94. 0 95.0 93. 7
42.3 82.4 81.9 81.4
42.3 91.3 90.7 90. 7
48.5 93.3 92.6 94.4
48.1 79.5 80.8 79.1
43.5 91.7 94.6 91.7
48.5 102.8 101.8 102. 5
48.5 100.6 101.3 100.7

31. 07
27. 79
36. 21
30.33

40.8
41.3
42.4
40.6

41.9
42.3
43. 6
41.6

42.4
42.5
44.6
42.5

74.6
67.3
81.5
73.0

73.5
65. 5
81. 5
71.6

73. 3
65.4
81.4
71.3

36.95
30. 02
33. 61
32.28
28.10

40.7
36.9
42.3
38.9
39.5

42.2
38.0
43.3
39.6
40.8

42.9
38.6
44.0
40.0
41.4

86.9
78.4
77.9
79.9
69.0

86.5
78.4
76. 4
79.4
68.6

86.2
77.8
76.6
79. 5
67.7

35.81
41.39
46.94
35. 49
34. 06

43.6
40.5
41.0
44.5
44.7

45.4
43.7
39.7
44.9
45.2

45.7 78.5 78.5 78.4
44.1 95.7 95. 2 94.0
42.2 110.8 108.7 110.9
45.0 79.2 78.4 78.8
45.3 75.7 75.3 75.0

34.06
35. 53
26. 59
28. 21
21.25

36.4
37.1
36.5
36.2
35.6

37.9
39.0
37.9
37.7
36.8

39.0
40.0
38.7
38.1
37.0

38.70 41.27 43. 71
30. 23 30.38 30.92

35.3
39.3

36.4
39.6

37.8 107.6 110.2 112.2
40. 4| 77.0| 76.9 76.8

45.78
48. 98
47. 86
50.99

37.82
38. 67
41.94
35. 35

36.31
45.19
35. 90
37.81
44. 66
39. 55
43. 07
48. 96
48. 64

Nondurable goods
Textile-mill products and other fiber manufactures _____
30. 39 30. 82
Cotton manufactures, except smallwares. 27. 76 27.70
Cotton smallwares. ________
34. 52 35. 43
Silk and rayon goods_______ _
29. 72 29. 83
Woolen and worsted manufactures, except
dyeing and fin ish ing..____ ______
35. 38 36. 52
Hosiery. _ _____
28.97 29. 82
Knitted c lo th ______
32. 94 33.10
Knitted outerwear and knitted gloves__
31.58 31.91
Knitted underwear____ ___ ______
27.39 28.10
Dyeing and finishing textiles, Including
woolen and w orsted.. ..................
34. 27 35. 55
Carpets and rugs, w ool. _____
38. 76 41.48
Hats, fur-felt.. _____________
45. 98 43.18
Jute goods, except felts______
35. 26 35. 22
Cordage and twine____________
33. 87 34.13
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 classifled_______________________ ____
Corsets and allied garments.........................
See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

30. 88
33. 09
25. 45
27.34
20.52

32.64
34. 72
26. 29
27. 99
21.10

84.9
88.3
69.8
74.9
57.7

86.2
88. 6
69. 5
.73.8
57.2

87.4
88.6
68.8
74.0
57.3

387

TREND OF E M P L O Y M E N T , EAR N IN G S, A N D HOURS

T able 6 .— E a r n in g s a n d H o u r s in M a n u f a c tu r in g a n d N o n m a n u fa c tu r in g I n d u s tr ie s —

Continued
MANUFACTURING—Continued
Average weekly
earnings i

Average weekly
hours i

Average hourly
earnings 1

Industry
M ay Apr. Mar. M ay Apr. Mar. M ay Apr. Mar.
1945 1945 1945 1945 1945 1945 1945 1945 1945
Nondurable poods—Continued
Apparal and other finished textile products—
Continued.
M illinery______ _________________
Handkerchiefs______ ____________ __
Curtains, draperies, and bedspreads ___
Housefurnishings, other than curtains,
etc__________________________________
Textile bags _____ ____________ ______

Cents Cents Cents
93.2 99.0 104.5
66.9 65.7 65.8
75.0 73.5 73.6

$29. 73 $37.97 $45. 88
25.11 24. 37 24.8£
28.10 27.58 27.58

26.9
37.4
37.1

31.4
37.0
37.2

35.2
37.8
37.3

32.03 33. 68 32.70
29.96 30. 54 30. 51

39.3
41.1

41.9
42.4

40.7
42.3

80.5
72.9

80.4
72.0

80.4
72.1

Leather and leather products______________ _
Leather_________________ . .
Boot and shoe cut stock and findings. . . .
Boots and sh o es.. ________ _________
Leather gloves and m ittens________ ____
Trunks and suitcases.................................

34. 71
45. 02
35. 03
32. 6£
30. 73
35. 99

35. 74
45. 21
35. 94
34. 05
30. 74
35. 52

36.00
45. 45
35. 58
34. 46
31.03
35.15

40.4
46.1
41.7
39.2
36.7
41.2

42.0
46.4
43.6
41.1
37.6
41.8

42.5
46.5
43.0
41.8
38.2
41.9

85.9
97.9
84.2
83.0
84.0
85.7

85.1
97.5
83.7
82.3
82.0
84.9

84.8
97.7
83.8
82.0
81.4
82.6

Food ___________________
Slaughtering and meat packing_________
Butter_______________________________
Condensed and evaporated milk________
Icecream ____ ______ __ ______ . . _ .
Flour____________________________
Cereal preparations.___________________
Baking__________ _______________
Sugar refining, cane_______ ______ ______
Sugar, beet__________ _____ __________
Confectionery_________________________
Beverages, nonalcoholic______________ .
Malt liquors_________ ______ __________
Canning and preserving _______________

39. 05
42. 74
34. 94
39. 83
39.15
43. 80
46.01
39. 22
38. 78
37. 86
31.30
35. 48
52. 03
31.72

39.16
42.56
35. 74
39. 33
40. 54
44. 22
47.00
38. 87
40. 33
40. 37
31.29
35.08
52. 92
32.10

38. 94
42. 92
34.71
38. 51
40. 22
43. 3a
47. 45
38.51
40.81
38. 6£
31. 23
34. 90
51.45
32.28

44.5
45.7
46.7
51.5
45.2
49.6
46.7
45.2
45.6
39.1
40. 7
43.5
45.1
39.4

45.0
45.9
.a
51.2
47.2
50.1
48.1
45.5
46.5
39. £
41.0
43.6
45.9
40.9

45.1 87.7 86.9 86.4
46.3 93.7 92.9 92.9
46.1 73.9 73.6 73.2
50.6 77.4 76.8 76.1
46.8 82.5 82.7 82.5
49.7 88.4 88.4 87.3
48.0 98.5 97.7 98.8
45.5 86.3 85.3 84.6
47.7 85.0 86.6 85.5
39.5 96.8 101.2 98.0
41.5 77.0 76.5 75.3
43.4 81.5 80.4 80.2
44.9 114.9 115.0 114.2
41.3 81.1 79.1 78.8

Tobacco manufactures___________ . . .
C ig a rettes.._________ ____ ____________
Cigars_____ __________________________
Tobacco (chewing and smoking) and
snuff___________________________

30.91 31.22 31.80
33. 05 33.93 34. 73
29. 46 29.1C 29. 6C

41.5
41.8
41.4

42.3
43.2
41. 4

42.9
44.1
42.2

74.5
79.1
71.0

73.8
78.6
70.0

28. 05 28. 85 28.82

40.4

41.7

41.4

69.4

69.2

69.6

Paper and allied products__________________
Paper and pulp___________________ ____
Envelopes________________ ____
Paper bags____________________________
Paper b oxes.. ............................ ...................

39.78
43.14
38.14
34. 60
35. 48

40. 63
43.95
38. 04
35. 84
36. 30

40. 35
43. 60
37.66
36. 34
36. 01

45.4
47.8
44.6
42.2
42.6

46.5
48.8
44.9
43.8
43.7

46.3
48.5
44.6
44.5
43.6

87.6
90.2
85.4
82.3
83.3

87.4
90.1
84.8
82.3
83.1

87.1
89.9
84.4
82.0
82.5

Printing, publishing, and allied industries___
Newspapers and periodicals_______ ____ _
Printing, book and job___ _______ ____ _
L ithograph ing..._____________________ _

46. 63
51.09
44. 65
49. 36

46. 52
50. 60
44. 97
48. 40

46.61
50.15
45.18
48. 86

41.2
39.0
42.1
44.6

41.2
38.7
42.6
44.3

41.6
38.7
43.1
44.9

113.3
129.1
106.4
110.6

112.9
128.8
106.2
109.4

112.1
127.5
105.8
108.9

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 oil_________________________
Fertilizers................ ................................. .........

45.29
47. 30
36. 69
48.15
40. 66
54.03
47.91
46. 57
28. 57
32.02

44. 77
47.91
35. 89
48. 46
40.19
53.83
47.18
45.12
28. 88
33.07

44. 78
47. 51
36.44
49. 44
39.18
53. 78
47. 63
45. 51
28. 45
32.79

45.7
47.3
43.3
47.8
43.2
47.3
45.6
46.5
50.2
45.9

45.7
47.8
42.7
48.1
43.3
47.3
44.9
45.8
51.5
48.2

45.9
47.7
43.6
48.7
42.6
47.3
45.3
46.3
51.5
48.4

99.1 98.0 97.5
100.3 99.8 99.3
85.0 84.3 83.8
100.7 100.8 101.6
94.0 92.8 92.0
114.1 113.9 113.7
105.0 105. 0 105.1
100.1 98.6 98.3
56.9 56.1 55.3
69.7 68.6 67.8

Products of petroleum and coal_____________
Petroleum refining_____________________
Coke and byproducts__________________
Roofing materials............................................

57.23
59.80
50. 77
46 82

58.30
61.26
50. 25
48. 50

56. 65
59. 43
49.00
46. 72

47.5
47.5
47.9
48.2

48.5
48.4
48.4
49.9

47.4 120.4 120.3 119.5
47.3 126.5 126.8 126.0
47.1 105.7 104. 3 104.1
48.7 97.1 97.3 95.9

Rubber products__________________________
Rubber tires and inner tubes______ _____
Rubber boots and sh o es................................
Rubber goods, o th e r .....................................

50.09
57. 32
41. 32
42.68

51.93
59. 75
43. 07
43.63

50. 62
57. 29
41.42
44.26

44.2
44.6
43.6
43.9

45.7
46.3
45.6
45.1

45.3 113.2 113.6 111.7
45.3 128.4 129.4 126.0
44.0 94.8 94.5 94. 1
45.6 97.3 96.8 97.1

Miscellaneous ind ustries... _______________ 44.41 45.50 45. 65
Instruments (professional and scientific)
and fire-control equipment____________ 54.11 57.67 57.36
Pianos, organs, and parts______________ _ 46.13 46. 23 46. 62

44.8

45.8

46. 1

47.1
44.7

49.8
45.2

49.9 114.8 115. 9 115.1
45.5 103.0 102.6 102.8

See footnotes at end of table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

47

99.2

99.3

74.1
78.7
70.1

99.1

388

MONTHLY LABOR REVIEW— AUGUST 19 45

T a b l e 6 — E a r n in g s a n d H o u r s in M a n u f a c tu r in g a n d N o n m a n u fa c tu r in g I n d u s tr ie s —

Continued
NONM AN UFACTURING
Average weekly
earnings 1

Average weekly
hours 1

Average hourly
earnings i

Industry
M ay Apr. Mar. M ay Apr. Mar. M ay Apr. Mar.
1945 1945 1945 1945 1945 1945 1945 1945 1945
Mining:
Anthracite_________ _______ ________
Bituminous coal_______ _ ____________
Me t a l 3. -- - - - - - - _ - _ ____
Quarrying and nonmetallic_____________
Crude-petroleum production. ............... .......

Cents
103.9
126.5
103.8
87.9
117.3

Cents
115.3
118.3
104.0
87.4
119.1

Cents
117.9
119.7
104.2
86.8
117.5

$44.92 $48.76
43.44 52.26
47. 35 46.92
41.98 40. 26
53.89 54.31

36.4
41.7
45.0
47.2
46. 1

38.9
36.6
45.5
48.0
45.2

41.4
43.8
45.0
46.5
46.2

Public utilities:
Telephone___ ________________ _______
Telegraph s. _____ ______ ____ ______
Electric light and pow er.. _ ____________
Street railways and busses.
_____

40. 60
(9
CO
38. 35 37. 33 37. 20
50. 23 50. 08 49. 77
49. 30 48. 65 48.81

(4)
45.7
44.5
51.7

(9
44.8
43.7
51.0

95.1
42.8 (9
(9
44.7 83.9 83.3 83.2
44.2 112.4 113.8 112.3
51.2 95.4 95.6 94.7

Wholesale trade___________________________
Retail trade. _ ____________________________
Food ___
... .
...
. . ___
General merchandise 2___ . _______
Apparel_________________ _____________
Furniture and housefurnishings 2________
A utom otive2. . - _____
. ___________
Lumber and building materials_________

43. 83
27.56
32.19
22. 63
28. 90
39.46
42. 63
38.40

44. 51
27.69
32.14
22.83
29. 05
39. 54
43.63
39.04

43.51
27.21
31.76
22. 37
29.03
38. 65
42.80
38.05

42.9
39.4
40.1
34.9
36.3
43.6
46.2
43.1

43.2
39.8
40.1
35.3
36.2
44.1
46.6
43.8

42.9 101.8 103.1 101.6
39.7 76.4 76.4 75.2
40.0 75.5 75.4 74.6
35.7 63.6 63.4 62.3
36.4 80.3 80.7 80.3
43.9 90.5 90.9 88.7
46.1 94.6 94.8 94.5
43.5 90.2 89.8 88.9

Hotels (year-round)6_______ . . . _______ . .
Power laundries
________________________
Cleaning and dyeing '______ _______ ___ _
Brokerage________________________________
Insurance.. ___________ _ . . . . . . _____
Private building construction_______________

24. 21
28. 64
32.92
68.80
46.71
53. 82

23.99
28.98
33.41
64. 32
47.11
54. 42

23.97
28. 80
34. 03
66. 40
47. 39
54.49

44.4
43.4
43.1

44.3
43.8
43.9

(9
(9

(9
(9

44.8
43.8
44.3
(9

39.3

40.0

$38.10
53.32
46.69
41.52
54.16

(9

53.5
66.8
76.9

53.3
66.3
76.9

52.9
66.0
77.5

(9
(9

(9
(9

(9
(9

40.0 136.9 136.1 136.3

1 These figures are based on reports from cooperating establishments covering both full- and part-time
employees who worked during any part of one 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 industries
are based on a slightly smaller sample than are weekly earnings. Data for the current and immediately
preceding months are subject to revision.
2 Revisions have been made as follows in data for earlier months:
M etal doors, sash, frames, molding, and trim .—January and February 1945 average weekly earnings to
$51.30 and $53.03; February average hourly earnings to 110.4 cents and comparable January hourly
earnings to 108.9 cents.
General merchandise group.—January and February 1945 average weekly hours to 35.9 and 36.1, and
average hourly earnings to 61.6 and 61.8 cents.
Furniture and housefurnishings group.—February 1945 average weekly hours to 43.i6 and average hourly
earnings to 88.8 cents.
Automotive group.—February 1945 average weekly hours to 46.3.
3 Average weekly hours and hourly earnings for metal mining are weighted by the employment in metal
mining industries. Average weekly earnings are the product of average weekly hours and average hourly
earnings. Complete series from January 1939 available upon request.
4 N ot available.
5 Excludes messengers and approximately 6,000 employees of general and divisional headquarters and of
cable companies.
6 Cash payments only; additional value of board, room, and tips not included.

Civilian Labor Force, June 1945
INCREASES of 350,000 in unemployment and 690,000 in employ­
ment between May and June 1945 combined to raise the civilian labor
force to a total of 53,070,000 in June 1945, according to the Bureau
of the Census sample Monthly Report on the Labor Force.v
The considerable gain in the volume of unemployment between May
and June 1945 reflected two developments in labor-market activity
during the month. Large numbers of teen-age youths entered the
labor force at the close of the school term in many areas. As is usually
he case, many of these youngsters did not find jobs immediately so

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

TREND OF E M P L O Y M E N T , EAR N IN G S, A N D HO URS

389

that a seasonal increase in unemployment resulted. In addition, lay­
offs resulting from cut-backs in war production schedules contributed
to the unemployment increase, although many released workers found
other jobs or left the labor force.
During the month, a decline of 450,000 in nonagricultural employ­
ment took place, a large part of which occurred in munitions industries.
The number of women engaged in nonagricultural pursuits dropped
by 350,000, the number of men by 100,000. The level of nonfarm
employment in June 1945 was 760,000 below that in June 1944—a
decline of 790,000 among men was only slightly offset by a gain of
30,000 among women. During the year, however, the size of the
armed forces increased by nearly 900,000.
A seasonal upswing of 1,140,000 in agricultural employment
between May and June 1945 largely accounted’for the net increase in
the civilian labor force between these months. Farm employment in
June 1945, however, was about 470,000 below theVune 1944 total.
C iv ilia n L a b o r F o rc e in th e U n ite d S ta te s, C la s s ifie d b y E m p lo y m e n t S ta tu s a n d b y S ex ,
M a y a n d J u n e 1 9 4 0 —4 5 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

1942

1943

1941

1940

June M ay June M ay June M ay June M ay June M ay June M ay
Total civilian labor force..
U nem ploym ent2____
Em ploym ent________
Nonagricultural
Agricultural_____

53,070
1,080
51,990
42,900
9,090

52,030 54,220 52,840 55, 220 53, 550 56, 260 54, 340 56,130 53,880 55,560 53,890
920 ] 2,550 2, 310 5, 520 5,120 7, 720 7,490
880
730
51,300 53,220 51,960 54,000 52, 630 53,710 52,030 50, 610 48, 760 47,840 46,400
43, 350 43.660 43, 360 44,180 43, 720 43,480 42,980 40,510 39, 550 36,950 36,480
9,210 10,890 9,920
7,950 9,560 , 600 9,820 8,910 10,230 9,050

1,220

1,000

10,100

8

Males
Civilian labor force--------U nem ploym ent3____
Em ploym ent-----------Nonagricultural.
Agricultural_____

34, 350 33,790 35,540 34,910
420
500
580
430
33,770 33,360 35,040 34,490
26,810 26,910 27,600 27,400
6,960 6,450 7,440 7,090

36,880 36,260 40,790
660
530 1,610
36,220 35, 730 39,180
28,610 28,520 31,070
7,610 7,210

39,820 41, 790 40,270 41, 710 40,640
1,460 3,800 3,700 5,450 5,550
38, 360 37,990 36,570 36, 260 35,090
30, 740 29,480 28,610 27,090 26, 220
7,620 8,510 7,960 9,170 8,870

8,110

Females
Civilian labor force--------U nem ploym ent3____
Em ploym ent-----------Nonagricultural.
Agricultural-........

18, 720 18, 240 18,680 17,930 18, 340 17,290 15,470 14,520
850
560
390
940
50C
46C
300
500
18,220 17,940 18,18C 17,47C 17,780 16,900 14, 530 13,670
16,090 16,44C 16,06C 15,96C 15,570 15, 200 12,410 12,240
1,430
1,700
1,510
2,130 1, 500

2,120

2,210

2,120

1 Estimates for period prior to November 1943 revised April 24,1944.
All data exclude persons in institutions.
Includes persons on public emergency projects prior to July 1943.

2
2


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

14,340 13,610 13,850 13,250
1,720 1,420 2,270 1,940
12,620 12,190 11,580 11,310
11,030 10,940 9,860|10,260
1,590 1, 250 1,720 1,050

Recent Publications o f Labor Interest

August 1945
Cooperative Movement
Developments m consumers’ cooperative movement [of the United, States] in 1944.
Washington 25, U. S. Bureau of Labor Statistics, 1945. 16 pp. (Bull.
No. 821; reprinted from Monthly Labor Review, March 1945, with addi­
tional data.) 10 cents, Superintendent of Documents, Washington 25.
/ speak for Joe Doakes, for cooperation at home and among nations. By Roy F.
Bergengren. New York, Harper & Bros., 1945. 167 pp. $2.
Discusses, from the viewpoint of the common man, some of the ills of the presentday world, inequalities of income distribution in the United States, and possibil­
ities. for a permanent peace. In the author’s opinion, the only hope for a per­
manent peace is international cooperation based on a better economic life for all
people. To effect the latter, economic cooperation of the people themselves
through the various types of cooperatives—credit, consumers’, etc.—is advocated,
which would result in “ a more even distribution of those goods and services
which contribute so materially to human happiness.”
A century of Fochdale cooperation, 1844-1944. By Joseph Reeves. London,
Lawrence & Wishart, 1944. 202 pp., bibliography. 7s. 6d.
Described as “a critical but sympathetic survey of a significant movement of
the workers for economic emancipation,” this report examines various aspects of
the British cooperative movement. Separate chapters deal with cooperation in
other countries and with the International Cooperative Alliance. The author sets
forth the ways in which, in his opinion, the movement has missed its full oppor­
tunities, and the measures that should be taken. He favors increased social use
of earnings (reducing or eliminating patronage refund accordingly) and increased
political action by the cooperative movement, abolishing the Cooperative Party,
and working with the Labor Party. Points to the Russian movement as an
example of what could be done under a socialistic economic order.
World cooperation, 1844-1944. By N. Barou. London, Fabian Publications,
Ltd., and Victor Gollancz, Ltd., 1944. 52 pp., charts. (Fabian research
series, No. 87.) 2s.
Gives comparative statistics, showing development of cooperatives of various
types during their century of growth. Certain countries (United States, Soviet
Union, China, Palestine, India,'and British colonies) are discussed separately.
Other chapters deal with international organization, cooperation and politics, and
the war and the future.
Cooperation in France. (In Review of International Cooperation, London,
March-April 1945, pp. 33-39.)
Review of the present situation of the various types of cooperatives, with statis­
tics for the war period.
Cooperatives and taxation. By P. H. Casselman. A brief submitted * * *
to the Royal Commission on Cooperatives, Ottawa, February 16-17, 1945.
[Ottawa, Social Center of Universitv of Ottawa?], 1945. 41 pp.; mimeo­
graphed.
Arguments in favor of cooperatives presented^in the hearings held on taxation
of cooperatives in Canada.
E d it 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 on prices were readily
available, they have been shown with the title entries.

390

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RECENT PUBLICATIONS OF LABOR INTEREST

391

Employment and Rehabilitation of Veterans
The disabled veteran. (In The Annals of the American Academy of Political
and Social Science, Vol. 239, Philadelphia 4, May 1945, pp. 1-181. $2,
paper, or $2.50, cloth, to nonmembers.)
Collection of articles dealing with various aspects of the disabled veteran’s
return to civilian life. The articles cover such subjects as pertinent legislation,
physical and mental rehabilitation, retraining and reemployment, and individual
and social adjustment.
Psychology for the returning serviceman. By a committee of the National Re­
search Council; edited by Irvin L. Child and Marjorie Van de Water. Wash­
ington 6, Infantry Journal; New York, Penguin Books, 1945. 243 pp.,
illus. 25 cents.
Advice to servicemen designed to aid them, in readjusting themselves to civilian
life, a peacetime job, and a peacetime community.
Reemployment of war veterans. New York 10, Metropolitan Life Insurance
Co., Policyholders Service Bureau, [1945?]. 36 pp.
Designed to aid management in its planning for the postwar period by helping
to clarify the problem of reemploying returning veterans.
T' eterans’ reemployment rights under Selective Service interpretations. (In Yale
Law Journal, New Haven, Conn., March 1945, pp. 417-444. $1.25.)
Examines present legislation relating to reemployment rights of veterans, the
interpretation of that legislation by various Government agencies, and the present
and possible effects of those interpretations upon the economic well-being of the
veteran.
Your postwar career. Madison 3, Wis., U. S. War Department, Armed Forces
Institute, 1945. 144 pp., diagrams, illus. (Education manual 945; available
only to veterans.)
Textbook designed to introduce the soldier to the postwar job scene by acquaint­
ing him of facilities available to him in his job hunt and giving specific informa­
tion on the various occupational fields.
How reinstatement will work in Britain. By Sir Godfrey Ince. (In Labor and
Industry in Britain, British Information Services, New York 20, June 1945,
pp. 84-89.)
Discussion of problems that will arise, and methods for dealing with them,
under the British reinstatement legislation for ex-service personnel.

Employment and Unemployment (General)
Employment problems during reconversion and in the postwar period. By A. F.
Hinrichs, Acting Commissioner of Labor Statistics. Washington 25, U. S
Bureau of Labor Statistics, 1945. 10 pp.; mimeographed. Free.
Address at Fifteenth Annual Labor Institute, Rutgers University, New Bruns­
wick, N. J., June 4, 1945,
Impact of the war on employment in 181 centers of war activity. Washington 25’
U. S. Bureau of Labor Statistics, 1945. 32 pp. (Bull. Ño. S26.) Í0 cents’
Superintendent of D ocuments, Washington 25.
Public employment and pay rolls in the United States, 1929-89, and postwar implica­
tions. Washington 25, U. S. Bureau of Labor Statistics, 1945. 31 pp.,
charts. (Serial No. R. 1732; reprinted from Monthly Labor Review, Febru­
ary 1945, with additional data.) Free.

Guaranteed Employment and Annual Wages
Shall we guarantee fu ll employmentf By Stanley Lebergott. (In Harper’s
Magazine, Concord, N. H., February 1945, pp. 193-202.)
The author discusses various arguments in support of the “comfortable belief”
that direct public action will not be needed to assure postwar employment. He
expresses the view that in any event the Nation has a responsibility for guarantee­
ing security and an opportunity to work to all veterans and war workers. It is
stated that* the Government will find it necessary to spend public funds to deal
with mass unemployment, and that a guaranty of employment would tend to
maintain confidence in business activity and would thereby reduce public expendi­
tures forhandlingjmemployment.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

392

MONTHLY LABOR REVIEW— AUGUST 19 45

Guaranteed-employment and annual-wage provisions in union agreements, effective
January 19^5. Washington 25, U. S. Bureau of Labor Statistics, 1945.
26 pp. (Bull. No. 828; reprinted from Monthly Labor Review, April 1945,
with additional data.) 10 cents, Superintendent of Documents, Washing­
ton 25.
The guaranteed annual wage. (In Industrial Bulletin and Employment Review,
New York State Department of Labor, Albany 1, January-February 1945,
pp. 11-15; bibliography. 10 cents.)
Summarizes main features and leading arguments for and against.
The guaranteed annual wage. By Philip Murray. Pittsburgh, United Steel­
workers of America, 1945. 14 pp., bibliography.
Statement of the union’s case for an annual wage guaranty.

Housing and Nonresidential Construction
Proháble volume of postwar construction. Washington 25, U. S. Bureau of Labor
Statistics, 1945. 58 pp. (Bull. No. 825; reprinted from Monthly Labor
Review, February, March, and April 1945, with additional data.) Í0 cents,
Superintendent of Documents, Washington 25.
Public versus private housing: A review of the Washington slum clearance contro­
versy. New York 17, National Industrial Conference Board, Inc., 1945. 36
pp. (Studies in business policy, No. 6.)
Discusses the development of public housing in the District of Columbia and
compares costs and rents with those of privately constructed shelter.
»
Informe que a los sindicatos y cooperativas de Bogotá, rinde su representante en la
Junta Directiva de la Caja de la Vivienda Popular. By Alberto Figueredo
Salgedo. [Bogotá, Caja de la Vivienda Popular, 1945.] 31 pp.
Presents information on the creation, nature, and functioning of the LowCost Housing Fund of Bogotá.
Foundation for housing. Londoá, S. W. 1, Conservative and Unionist Party
Organization, Central Committee on Postwar Reconstruction, 1944. 32
pp. 3d.
Includes a brief historical survey of housing in Great Britain between the two
World Wars and a suggested policy for the future.
Ways and means of rebuilding. Report of the London conference of the Town and
Country Planning Association, 1943. Edited by Donald Tyerman. London,
Faber & Faber, Ltd., 1944. I l l pp. 8s. 6d. net.
One of the sessions dealt with the implications of a full-employment policy.

Income
Measuring and projecting national income. New York 17, National Industrial
Conference Board, Inc., 1945. 27 pp., charts. (Studies in business policy,
No. 5.)
Addresses and discussions at a round-table conference of the National Industrial
Conference Board on January 18, 1945, with additional papers. The work of
the U. S. Department of Commerce and other agencies in the field of national
income and national product is described as an attempt to summarize the^accounting transactions which actually appear in the combined books of the Nation—
the accounting records of business, Government, and consumers. The recent
development and applications of the concepts of gross national product and gross
national expenditure are described in some detail, with particular reference to
their uses in the analysis of actual and potential markets, consumer spending,
Government purchasing, business investment, output, and employment.
ecent studies on national income. By D. C. MacGregor. (In Canadian Journal
of Economics and Political Science, Toronto, February 1945, pp. 115-129;
May 1945, pp. 270-280. $1 each.)
Critical reviews of major studies, official and unofficial, of national income in
various countries.
County incomes and trade movement in Illinois: A suggested method for estimating
incomes of small areas. By P. D. Converse. Urbana, University of Illinois,
Bureau of Economic and Business Research, 1945. 16 pp., map. (Special
bull. No. 4.) 50 cents.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RECENT PUBLICATIONS OF LABOR INTEREST

393

National income and expenditure’ [GreatlBritain]. By J. E. Meade and Richard
Stone. London, Oxford University^Press, 1944. 36 pp. 2s.
Discussion of the purposes and content of the Government’s .annual White
Paper on national income and expenditure.
Size of family in relation to family income and age of family head. By T. J. Woofter
Jr. (In American Sociological Review, Washington 25 [Managing Editor,
U. S. Department of Agriculture], December 1944, pp. 678-684. $1.)

Industrial Accidents and Accident Prevention
Analysis of accidents in construction of 68 selected industrial plants and facilities,
January 1, 1942, to April 80, 1944. Washington 25, U. S. War Department,
Army Service Forces, Corps ,of Engineers, Safety and Accident Prevention
Branch, [1945]. 11 pp., illus.; processed.
What’s ahead for construction safety? By Lloyd A. Blanchard.
(In National
Safety News, Chicago 6, February 1945, pp. 10, 11, et seq. 40 cents.)
Accident-frequency rates on U. S. Army construction projects were substantially
reduced between 1941 and 1943, according to the writer, who describes measures
for the prevention of accidents in the construction industry and emphasizes the
need for trained construction safety engineers.
Coordination of dust suppression by water and roof control at^ the working face [o/ coal
mines]—-successful results obtained under adverse conditions. London, Ministry
of Fuel and Power, 1945. 7 pp., charts. (Safety pamphlet No. 15.) 2d. net,
His Majesty’s Stationery Office, London, W. C. 2.
Industrial medicine and accident prevention—the personal factors of accidents. By
Verne K Harvev, M.D., and E. Parker Luongo, M.D. (In Industrial
Medicine, Chicago, May 1945, pp. 377-381; bibliography. 40 cents.)
Since from 80 to 90 percent of all industrial accidents, according to the au­
thors, are due to personal factors rather than to mechanical causes, the physical
examination of a worker by an industrial physician should include a diagnosis of
personality as related to accident proneness.
Psychiatry in industrial accidents. By Lowell S. Selling, M.D. (In Advanced
Management, New York 7, April—June 1945, pp. 70-75. $1.50.)
Points out individual causes for accident proneness and the need for
psychologically trained personnel workers to assist the plant physician in
evaluating workers for specific jobs.

Industrial Hygiene
Control of welding fumes—why and how. By Morwick Ross and Philip Drinker.
(In Transactions, 33d National Safety Congress, Chicago, October 3-5,
1944, Vol. I, pp. 256-259. Chicago 6, National Safety Council, Inc., 1944.)
The safe handling of toxic materials and gases. By Elmer L. Schall. ^(In Public
Health News, State Department of Health, Trenton, N. J., April 1945, pp.
240-247, 250-253. Free to residents of New Jersey.)
Eyes right, for better production. (In Modern Industry, New York 17, May 15,
1945, pp. 33-37; illus. 35 cents.)
_
.
.
.
Account of the new techniques for correlating visual skills with visual require­
ments of jobs, for the purpose of placing workers more scientifically and increas­
ing production, and of union cooperation in such programs.
Labor-management relationships in industrial health problems. By J. J. Bloom­
field. (In Journal of the American Medical Association, Chicago 10, June
30, 1945, pp. 639-643. 25 cents.)
,
.
,
.
Evaluates the part played in plant health and safety by unions through col­
lective bargaining and by labor-management committees sponsored by the U. b.
War Production Board.
Official industrial hygiene services. By Victoria M. Trasko. (In Industrial
Medicine, Chicago, April 1945, pp. 277-283. Reprints of article are avail­
able free from the author, Industrial Hygiene Division, U. S. Public Health
Service, Bethesda 14, Md.)
■.
, . ,
, .. ,
Report on the major types of services rendered industrial establishments
throughout the United States by official State and local industrial-hygiene units,
from July 1942 through June 1944.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

394

MONTHLY LABOR REVIEW— AUGUST 194 5

Industrial nursing in Connecticut— an introduction to desirable 'practice.
dustrial Nursing, Chicago, January 1945, pp. 41-48.)

(In In­

Industrial Relations
Labor policy after the war. By Frank P. Huddle. Washington 5 (1013 Thirteenth
Street NW.), Editorial Research Reports, 1945. 16 pp. (Vol. 1, 1945, No.
19.) $1.
Concise analysis^ of labor policies in the United States and points of view of
public officials, union leaders, and representatives of management. Among the
questions discussed are unification of Federal labor agencies, postwar pro­
ductivity in relation to wages and purchasing power, and the principles that
should govern peacetime labor relations.
The National War Labor Board: Its significance. By Joseph Shister (In
Journal of Political Economy, Chicago 37, March 1945, pp. 37-56. $1)
The author discusses control by the U. S. National War Labor Board of the
wartime labor market and probable effects of the Board’s decisions on postwar
labor relations.
Protecting management’s rights in labor relations. New York 1, Internationa1
Statistical Bureau, Inc., 1945. 35 pp.
Summary of rules and decisions under the National Labor Relations Act
including court decisions, as affecting the rights and duties of management and
as defining unfair labor practices.
Sick-leave provisions in union agreements. Washington 25, U. S. Bureau of Labor
Statistics 1945. 7 pp. (Bull. No. 832; reprinted from Monthly Labor
Review, May 1945.) 5 cents, Superintendent of Documents, Washington 25.
Collective agreements in the pulp and paper industry in Canada, 1944. (In Labor
Gazette, Department of Labor, Ottawa, April 1945, pp. 539-554.)
First in a series of analytical studies of current agreements on file with the
Canadian Department of Labor. This initial article, dealing with mill operations
in the pulp and paper industry, analyzes various agreement provisions and lists
the labor unions operating in the industry together with their membership.
The rights of engineers. By Wal Hannington. London, Victor Gollancz Ltd
1944. 122 pp. 3s. 6d.
De scribes the rights of workers, operation of collective agreements, and develop­
ment of trade-unionism in the engineering industry of Great Britain.

Labor Organizations and Conferences
Judicial procedure in labor unions. By Philip Taft. (In Quarterly Journal of
Economics, Cambridge, Mass., May 1945, pp. 370-385. $1.25.)
Analysis of trade-union procedures in dealing with violations of union rules and
policies.
Recent trends in British trade unions. By Noel Barou. New York 3 League for
Industrial Democracy, 1945. 31 pp., bibliography. 15 cents. ’
&
In the first part of the pamphlet the importance of the British labor movement
is estimated in statistical and other terms; the second part contains a summary
of the British Trades Union Congress’ interim report on postwar reconstruction.
Report of 21st session of All-India Trade Union Congress, Madras, 1945 Bombay
4, All-India Trade Union Congress, 1945. 103 pp. 2 rupees.
Report of the second conference [of the Indian Federation of Labor], held at Jamshedpur
on December 24 and 25, 1944. Delhi, Indian Federation of Labor, [1945]
Variously paged.

Medical Care and Sickness Insurance
Health services for migrant farm families. By Frederick D. Mott M D
(In
American Journal of Public Health and the Nation’s Health, New York 19
April 1945, pp. 308-313. 50 cents.)
Hospital care of the indigent and medically indigent in New Jersey: A review of the
policies and legal resources for adequate hospital care. Trenton, New Jersey
Hospital Association, Welfare Committee, 1945. 46 pp.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RECENT PUBLICATIONS OF LABOR INTEREST

395

Medical care for everybody? By Maxine Sweezy. Washington 6, American
Association of University Women, 1945. 38 pp., bibliography, charts, illus.
15 cents.
Compulsory health insurance—arguments for and against. By George B. Mangold.
(In Sociology and Social Research, Los Angeles 7, May-June 1945, pp.
343-354. 60 cents.)

Migration, Migratory Workers, and Population Status
County variation in net migration from the rural-farm population, 1930-40. By
Eleanor H. Bernert. Washington 25, U. S. Department of Agriculture,
Bureau of Agricultural Economics, 1944. 44 pp.; mimeographed.
Cbservations on the sample censuses in ten congested production areas. By John
Webb. Washington 25, Committee for Congested Production Areas, 1944.
20 pp., maps.
Sample population censuses were taken in selected areas by the U. S. Bureau
of the Census at the request of the Committee for Congested Production Areas.
Some of the information obtained is summarized in this pamphlet, particularly
the increases in population from 1940 to 1944; the characteristics of the popula­
tion as to age, color, and sex; the farm and nonfarm origins of additions to thq
population; and the distance of moves made by migrants to the congested areas.
Wartime changes in regional concentration. By Elmer C. Bratt. (In Survey of
Current Business, U. S. Department of Commerce, Bureau of Foreign and
Domestic Commerce, Washington 25, March 1945, pp. 14-20; charts. 20
cents, Superintendent of Documents, Washington 25.)
A discussion of the wartime shifting of the working population of the United
States, based largely, with certain adjustments, on Bureau of Labor Statistics
data on State distribution of manufacturing and other nonagricultural employ­
ment. There is also some discussion of the effects of demobilization and of recon­
version on the regional concentrations of employment.
The Joads in New York. New York 10, Consumers League of New York, 1945.
26 pp. 15 cents.
Presents the results of an investigation in the summer of 1944 of 22 family
camps, housing approximately 2,000 migrant farm workers, in 9 counties in
New York State.
World population in transition. Edited by Kingsley Davis. (In The Annals of
the American Academy of Political and Social Science, Vol. 237, Philadelphia
4, January 1945, pp. 1-203; charts. $2, paper, or $2.50, cloth, to nonmem­
bers.)
The purpose of the volume was to give a broad picture of the demographic
situation throughout the world, the major problems in the situation,, and the
population possibilities of the future. The subject is dealt with on both a regional
and a topical basis.
Asia on the move: Population pressure, migration, and resettlement in Eastern Asia
under the influence of want and war. By Bruno Lasker. New York, Henry
Holt & Co., 1945. 207 pp. $3.

Negro in Industry
Full employment and the Negro worker. By Willard S. Townsend. (In Journal
of Negro Education, Washington 1, winter number 1945, pp. 6-10. Reprints
of article are available from National CIO Committee to Abolish Discrimina­
tion, Washington 6.)
The author contends that full employment in the postwar period will not abolish
race problems, but will prepare the way for effective educational programs for
reducing the frequency and intensity of economic depressions and the consequent
dearth of jobs—one of the fundamental causes of racial strife.
Legislation outlawing racial discrimination in employment. By Harold Dublirer.
(In Lawyers Guild Review, Washington 5, March-April 1945, pp. 101-109.
50 cents.)
The Negro war worker in San Francisco—a local self-survey. [San Francisco,
Young Women’s Christian Association], 1944. 98 pp. 50 cents.
One of the eight chapters of the report is devoted to housing and another to
industry and employment. Recommendations based on the findings of this survey
were issued in separate mimeographed form.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

396

MONTHLY LABOR REVIEW— AUGUST 1945

Occupations and Occupational Adjustment
Careers in safety: Choosing a vocation in the field of accident 'prevention. By
Herbert J. Stack, Charles C. Hawkins, and Walter A. Cutter. New York,
Funk & Wagnalls Co., 1945. 152 pp. $1.50.
Careers in the steel industry. By Burr W. Leyson. New York, E. P. Dutton &
Co., Inc., 1945. 191 pp., illus. $2.50.
Describes the various processes in the making of steel and indicates job oppor­
tunities in the industry, remuneration, and prospects for advancement.
J oh placement reference, with introduction to the job placement technique. By Keith
Van Allyn. Los Angeles, National Institute of Vocational Research, Inc.,
1945. 361 pp., bibliography. $10.
The principal purpose of the study is described as an aid in coordinating testing
procedures and job specifications and in providing a convenient method for use
by counselors or employers for accurately comparing individual qualifications with
occupational requirements.
Matching the physical characteristics of workers and jobs. By Bert Hanman. (In
Industrial Medicine, Chicago, May 1945, pp. 405-426 et seq. 50 cents.)
Evaluation of existing practices in the United States for matching the physical
characteristics of workers and jobs in selective-placement systems.
Occupational data for counselors: A handbook of census information selected for use
in guidance. Washington 25, U. S. Bureau of Labor Statistics, 1945. 36 pp.,
charts. (Bull. No. 817.) 10 cents, Superintendent of Documents, Wash­
ington 25.
Position classification—a selected list of references. Washington 25, U. S. Civil
Service Commission, Library, January 1945. 40 pp.; processed.
The references are grouped under three main heads: (1) Principles, method,
and description (including materials pertaining to several foreign countries);
(2) Position analysis and evaluation; (3) Selected classification plans, class speci­
fications, or job descriptions.

Postwar Reconstruction
Economic stability in the postwar world: The conditions of prosperity after the transi­
tion from war to peace. Report of the Delegation on Economic Depressions,
Part II. Geneva, League of Nations, 1945. 319 pp., charts. $3, Columbia
University Press, New York; $2.50 with paper cover, no index.
Part I of this report (noted in October 1943 Monthly Labor Review, p. 855)
discussed the period of transition from war to peace from the point of view of
policies designed to prevent depression. Part II discusses the nature and causes
of depressions and analyzes the policies, national and international, which the Dele­
gation on Economic Depressions recommends for preventing depressions. A
major theme is the dependence of employment on expenditures.
Impact of the war on the St. Louis area: Working notebook for use by local groups
studying recent economic developments and formulating plans for the postwar
period. Washington 25, U. S. Bureau of Labor Statistics, 1944. 61 pp.,
charts; mimeographed. (Industrial area study No. 27.) Free.
Problems for postwar Dallas relating to employment and the labor force. Dallas,
Tex., Chamber of Commerce, and Committee for Economic Development
1945. 90 pp.
Report prepared by director of regional office of U. S. Bureau of Labor Statis­
tics. The study contains an account of the wartime industrial expansion of Dallas
and an analysis of the war workers of the area as to where they came from, their
status in Dallas, and their postwar plans. It is stated that about 94,000 more
workers were employed in Dallas in June 1944 than before the war. The study is
designed to throw light on postwar planning for dealing with the problem of re­
leased war workers and returning veterans. The statistical section includes 54
tables relating to such subjects as employment, types of work, earnings, prewar
status, and postwar plans.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RECENT PUBLICATIONS OF LABOR INTEREST

397

Kansas manufacturing in the war economy, 1940-44• By L. L. Waters. Lawrence,
Kans., University of Kansas, 1945. 46 pp., charts. (Industrial research
series, No. 4.)
First in a series of reports intended to provide material basic to strengthening
the economy of Kansas. Wartime changes in various industries are described and
there is a discussion of the problems of conversion and reconversion.
M iami: Economic 'pattern of a resort area. By Reinhold Paul Wolff. Coral
Gables, Fla., University of Miami, 1945. 172 pp., charts. $2.
Designed to aid in economic and social planning for the Miami area in coor­
dination with development in southern Florida. There is a chapter on income
structure, including wages and salaries.
La France devant la reconstruction économique. By Robert Mossé. New York,
Brentano’s, 1945. 113 pp.
Discusses the development of the French economy before the war, the effects
of German tyranny, and the prospects of reconstruction.

Social Security (General)
How lucky is my social security number? New York 19, International Ladies’
Garment Workers’ Union, [1945?]. 20 pp.
Simple statements of the Federal old-age and survivors insurance provisions
and the status of unemployment compensation systems.
Industrial life insurance in the United States. By Malvin E. Davis. New York,
McGraw-Hill Book Co., Inc., 1944. 399 pp. $2.75.
Nontechnical account, by the associate actuary of the Metropolitan Life Insur­
ance Co., based largely on the practice of three companies which are said to handle
about three-fourths of the industrial life insurance in force in the United States.
The progress of social security in the Americas in 1944- By Arthur J. Altmeyer.
(In International Labor Review, Montreal, June 1945, pp. 699-721. Re­
prints of article are available at 10 cents each. Distributed in United States
by Washington branch of I. L. O.)
Review of social-insurance developments, including new programs made
operative and plans published but not yet adopted, in the countries of North,
Central, and South America during 1944.
Some basic readings in social security. Washington 25, Federal Security Agency,
Social Security Board, January 1945. 58 pp. 15 cents, Superintendent of
Documents, Washington 25.
Annotated supplement to 1942 edition of the bibliography (publication No. 28,
revised).

Vacations
Paid vacations in American industry, 1943 and 1944• Washington 25, U. S.
Bureau of Labor Statistics, 1945. 30 pp. (Bull. No. 811; reprinted from
Monthly Labor Review, January and February 1945, with additional data.)
10 cents, Superintendent of Documents, Washington 25.
Vacation policy in 1945. By Gertrude Reynolds. New York 17, National
Industrial Conference Board, Inc., 1945. 11 pp. (Supplement to Con­
ference Board Management Record, May 1945.)
A study of the vacation policies of companies, in a considerable variety of in­
dustries, reporting to the National Industrial Conference Board. The tables give
a wide range of information relating to such subjects as service requirements for
vacations, relation between vacations and other types of leave, and vacation
policies as affected by status of veterans.

Wages and Hours of Labor
A handbook on wage incentive plans. Washington 25, U. S. War Production
Board, Management Consultant Division, 1945. 39 pp., charts. 10 cents,
Superintendent of Documents, Washington 25.
The vice chairman for labor production of the War Production Board, in com­
menting on the results of wage-incentive plans, emphasizes the increased output


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

398

MONTHLY LABOR REVIEW— AUGUST 1945

“wherever labor and management prove themselves willing to agree on a workable
plan and demonstrate their good faith and willingness to carry out the operation
of the plan for their mutual benefit.” It is further stated that organized labor is
increasingly aware of the difference between a fairly administered wage-incentive
plan and “the outmoded and self-defeating speed-up systems.”
Substandard wages: An analysis of their extent and effect, and what must be done to
establish a higher wage level. Washington 6, Congress of Industrial Organiza­
tions, 1945. 32 pp., charts, illus. (Publication No. 121.) 15 cents.
Argument for an hourly minimum of 65 cents. It is stated that the two big
facts about substandard wages are that they are largely the result of insufficient
trade-union organization and that they are prevalent in occupations which will
expand most after the war.
Trends in southern wage differentials since 1890. By Richard A. Lester. (In
Southern Economic Journal, Chapel Hill, N. C., April 1945, pp. 317-344:
charts. $1.)
The differentials are derived in part from series of average hourly earnings and
in part from wage-rate series. The results show in some cases a widening and in
others, notably cotton textiles, a narrowing of differentials. It is stated that for
certain skilled trades average wages in the South have exceeded the average for
the North. Differentials between the South and the North and within both
regions are described as varying widely and irrationally from industry to industry
and locality to locality. One of the conclusions is that low -wage rates may be less
important as a factor in industrial location and expansion than is commonly
assumed.
Statistics relative to wages, hours of work, and employees in the various branches of
the lithographing industry, [Province of Quebec], 1988-43. [Quebec?], Litho­
graphing Industry Parity Committee for the Province of Quebec, [1944?].
79 pp.; mimeographed.
Zonal statistics relative to wages, hours of labor, and employees in the various trades
of the printing industry for Montreal and district, 1937-43. [Montreal?],
Printing Industry Parity Committee for Montreal and district, [1944?]!
163 pp.; mimeographed.
Salarios— régimen legal,_ tarifas mínimas. By Eugenio Pérez Botija. Madrid
Instituto de Estudios Políticos, 1944. 409 pp.
Covers such points as the; politico-social theory of the wage, legislative pro­
visions concerning wages and the regulation of labor, and the legally established
minimum wages for various industries, in Spain. The latest legislation included
was dated March 31, 1944.

Women in Industry
How the Army protects its women workers. By Dorothy Barker. (In Transactions,
33d National Safety Congress, Chicago, October 3-5, 1944, Vol. 1, pp. 36-4o!
Chicago 6, National Safety Council, Inc., 1944.)
Account, by a woman safety engineer, of the pattern of safety engineering
developed for the protection of women workers at U. S. Army Air Service Depots,
and discussion of causative factors in accidents.
Maternity-leave clauses in union contracts. By Jennie Mohr, Women’s Bureau
U. S. Department of Labor. (In The Child, U. S. Department of Labor!
Children’s Bureau, Washington, 25, May 1945, pp. 166-169. Reprints of
article are available free from Women’s Bureau.)
Wartime job opportunities for women household workers in Washington, D. C.
Washington 25, U. S. Bureau of Labor Statistics, 1945. 11 pp. ’ (Seriai
No. R. 1736; reprinted from Monthly Labor Review, March 1945, with
additional data.) Free.
Women’s emergency farm service on the Pacific coast in 1948. Washington 25,
U. S. Department of Labor, Women’s Bureau, 1945. 36 pp. (Bull. No. 204.)
10 cents, Superintendent of Documents, Washington 25.
A study of certified sickness absence among women in industry [in Great Britain].
By S. Wyatt. London, Medical Research Council, Industrial Health Re­
search Board, 1945. 34 pp., charts. (Report No. 86.) 9d. net, His Majes­
ty ’s Stationery Office, London, W. C. 2.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

RECENT PUBLICATIONS OF LABOR INTEREST

399

General Reports
Payers and -proceedings of the 57th annual meeting of the American Economic
Association. (In American Economic Review, Evanston, 111., Vol. XXXV,
No. 2, May 1945; 520 pp.)
Several subjects discussed at the annual meeting were of special interest as
affecting labor. A discussion of consumption economics emphasized the impor­
tance of the maintenance of an adequate flow of income into channels of consump­
tion as a basis of postwar employment. Papers on civilian production and
employment after the war included a general analysis of objectives and guides to
policy, an account of business plans for postwar expansion, and a discussion of
the possible role of Government in maintenance of full employment. Other sub­
jects of labor interest included price control and rationing during the period of
transition to peace and the relations between organized labor and the public.
The Argentine Republic. By Ysabel F. Rennie. New York, Macmillan Co.,
1945. 431 pp., bibliography, illus. $4.
Account of the political, economic, and social changes that occurred in Argentina
from 1853 to 1944.
Latin American periodicals currently received in the Library of Congress and in the
library of the Department of Agriculture. Edited by Charmion Shelby.
Washington 25, U. S. Library of Congress, 1944. 249 pp. (Latin American
series No. 8.) 45 cents, Superintendent of Documents, Washington 25.
Annotated list of periodical and serial publications, including those dealing
with labor and related subjects.
Plan for labor: Indian labor and reconstruction after the war. By Kanji Dwarkadas. Bombay, Thacker & Co., Ltd., 1945. 12 pp. 8 annas.
The author discusses the substandard living conditions of workers with respect
to housing and sanitation, as well as medical care, and recommends a 5-year
plan of legislative and administrative reforms.
Poland between two wars. By Ferdynand Zweig. London, Seeker & Warburg,
1944. 176 pp. 10s. 6d. net.
Critical study of social and economic changes in independent Poland up to the
outbreak of war in 1939. Part III, on ecomonic trends and developments,
includes chapters on national income and its distribution, industrial development,
the cooperative movement, and the Polish worker. The latter deals with social
legislation, collective agreements, employment, wages, and the standard of living.
The real Soviet Russia. By David J. Dallin. New Haven, Conn., Yale Univer­
sity Press, 1944. 260 pp., bibliography. $3.50.
Analytical examination of the political and social structure of the Soviet Union
and of the guiding ideas of the present regime. In a chapter on the working class,
the writer discusses the standard of living and the relationship of workers to the
Communist Party, and explains why he thinks the development of a labor move­
ment has proved impossible under the Soviet regime. There is also a chapter on
forced labor.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

U. S. GOVERNMENT PR IN TI NG O F F I C E : 1 9 4 5


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis