Full text of Monthly Labor Review : August 1945, Vol. 61, No. 2
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