Full text of Monthly Labor Review : February 1947, Vol. 64, No. 2
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MAR 0 1347
UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS
+
LAWRENCE
C O N T E N T S
R. K L E I N ,
Editor
-f-
FEBRUARY 1947, Vol. 64, No. 2
Special articles:
Page
Full employment patterns, 1950: Part 1-------------------------------------Union health and welfare plans________________________________
Collective-bargaining developments in health and welfare plans._
Trade-union welfare programs--------------------------------------------Wartime and postwar experiences of Connecticut small-arms workers.
163
191
191
201
215
Wage and hour statistics:
The hired farm work force in 1945--------------------------------------------New programs for farm labor statistics----------------------------------------
225
231
Economic policy:
President’s economic report to Congress-------------------------------------Labor policies and programs in Japan under the occupation------------
234
239
Industrial relations:
Labor recommendations in President’s message to Congress-----------Jobs covered by collective bargaining, U. S. offshore merchant marine,
February 1946_____________________________________________
255
257
Labor-management disputes:
Controversies and significant developments, January 1947-------------Review of work stoppages in 1946---------------------------------------------Activities of the U. S. Conciliation Service in December 1946---------Mediation experts accept service with U. S. Conciliation Service------
262
263
264
265
Labor laws and decisions:
Thirteenth National Conference on Labor Legislation-------------------Recent decisions of interest to labor-------------------------------------------
268
271
Prices and cost of living:
Index of consumers’ prices in large cities, December 1946--------------Retail prices of food in December 1946--------------------------------------Wholesale prices in December and year 1946--------------------------------
278
283
289
Construction:
Construction activity, November 1946-January 1947 and outlook for
year 1947_________________________________________________
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x
CONTENTS
II
Trends of employment and labor turn-over:
Employment in southern manufactures__________________________
Labor force, December 1946___________________________________
Summary of employment reports for December 1946______________
Industrial and business employment________________________
Public employment_______________________________________
Detailed reports for industrial and business employment, November
1946______________________________________________________
Labor turn-over in manufacturing, mining, and public utilities,
November 1946____________________________________________
Pilge
305
317
319
319
320
323
333
Trends of earnings and hours:
Summary of earnings and hours data for November 1946__________
Trend of factory earnings, 1939 to November 1946________________
338
343
Labor chronology:
Chronology of labor events, October-December 1946_____________
345
R ecent p ublications o f labor interest _______________________________
357
Editorial notes:
Addendum: The changing status of bituminous-coal miners, 1937-46_
Erratum: The physically impaired worker in industry_____________
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224
233
This Issue In Brief
Full employment patterns, 1950: Part 1
The present article is an attem pt to evaluate in quantitative terms what is
involved in achieving and maintaining high and stable levels of employment after
full adjustment to peacetime conditions. By 1950 the labor force may consist
of 62.5 million persons, of whom 59.0 million should be employed in civilian jobs
if full-employment conditions prevail. If past trends continue, labor produc
tivity will exceed the 1939 level by 20 to 30 percent, depending on the industry.
National income might equal 185 billion dollars, but one-sixth of all consumer
units might still have incomes below $1,500. Under such circumstances high
tax revenues would be yielded by moderate rates, and wage rates and rates of
return on investment above the 1946 levels could be maintained with prices
below those now prevailing. Consumer outlays are estimated on the basis of
prewar expenditure patterns, and a level of investment is assumed. All final
demand is translated into total output on a detailed industry basis by means of a
study of interindustry relationship. The resulting levels of output (based on
prewar patterns) produce an initial employment deficiency of 4.7 million. All
estimates are derived from stated assumptions and are not to be construed as
forecasts. Page 163.
Union health and welfare plans
The number of workers covered by health-benefit plans negotiated by collective
bargaining between trade-unions and management more than doubled since 1945,
according to recent estimates of the Bureau of Labor Statistics-—rising from a
minimum of some 600,000 to 1,250,000. The unions and industries involved,
the recent growth of the movement to include health and welfare provisions in
collective agreements, and its increasing importance are noted; sample contract
clauses and a selected list of references are added. This article starts on page 191.
A second article, by the secretary-tresaurer of the New York Dressmakeis’
Joint Board, describes the development of such provisions for the Ladies’ Garment
Workers, furnishes specific data on the types and costs of benefits currently paid
by the Joint Board of the Dress and Waistmakers’ Union, and discusses pivotal
problems of wider application in the administration of such funds. It follows on
page 201.
Wartime and postwar experiences of Connecticut small-arms workers
Employment in small-arms production in Connecticut declined more than 35
percent from the peak war period (summer of 1943) to the spring of 1945. Studies
made by the BLS in the spring of 1945 and the winter of 1945-46 showed that
20 percent of the war workers were unemployed and seeking work during the
later period. Six months later, the jobless represented only 7 percent of the
total. Slightly over a fourth of these workers were still with their same wartime
employers. Average weekly earnings declined from $69 in the spring of 1945 to
$46 in the winter of 1945-46. Page 215.
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IV
THIS ISSUE IN BRIEF
Employment in southern manufactures
Manufacturing employment in the South reached a maximum wartime expan
sion of 71 percent, only slightly below th at of the Nation as a whole. Despite sub
sequent contraction, employment 1 year after VJ-day was still 40 percent above
the prewar level. Although the relative position of the South in the Nation’s
economy has remained approximately the same, some of the diversification ac
quired during the war period has carried over into 1946. While all States in the
region participated in the wartime expansion, the Southwestern States and some
of the smaller industrial States of the Southeast have better maintained their
increased share in Southern manufacturing employment. Page 305.
Labor policies and programs in Japan under the occupation
According to the findings of the Advisory Committee on Labor in Japan, labor
organizations in th at country have developed since the defeat at a most spectacu
lar rate. Freedom of association and of collective bargaining have been assured
by the abrogation of prohibitive laws and regulations issued before and during the
war and by new progressive labor legislation, such as the Trade-Union Act of
December 1945 and the Labor Relations Adjustment Act of October 1946. A re
form of the Japanese protective labor legislation is under way; it may include a
scheme of minimum wage rates, put an end to wage discrimination against women,
and raise basic labor standards to a level compatible with the new status of labor
in Japan. As an important device of employment policies, the public employ
ment service in Japan must be expanded and strengthened. Page 239.
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V
CURRENT LABOR STATISTICS
Current statistics of labor interest in selected periods 1
[Available in rep rin t form]
1945
1946
Item
U n it or base
period
D e
cem
ber
N o
vem
ber
1939:
average
Decem for
year
ber
October
Em ploym ent and unemployment
C ivilian labor force (B C ): T o ta l------- ------ T housands---- 68,430
do_______ 41,990
M ale______________________________
16,440
.d o ____
Fem ale____________________________
56,310
_do____
E m p lo y ed 3________________________
40,300
.d o ____
M ale___________________________
16,010
_do____
Fem ale_________________________
49,100
do____
N onagri cu ltu ral-------------------------7, 210
do ____
A gricultural____________________
2,120
.d o .........
U nem ployed----------------------------------1,690
-do____
M ale___________________________
430
-d
o
____
Fem ale_________________________
.d o _______ 40, 795
C ivilian em ploym ent in nonagricultural
establishm ents: T o tal.3
15,048
-do_
M anufacturing____ _________________
819
-do.
M inin g____________________________
1,642
-do.
C onstruction 4______________________
3,977
-do_
T ransportation and public utilities----8, 610
_doT rad e----- ------------- —--------------------5,260
-do.
Finance, service, and miscellaneous—
5, 439
-do.
Federal, State, and local government,
excluding Federal force-account con
struction.
2,204
-do.
M ilitary p e rs o n n e l------------------------------Production-w orker em ploym ent:
12,
281
-do.
M anufacturing---------------------------- ---------------- ---------------- —
326
-do.
Bituminous-coal m in in g — ------------1,353
-do.
Class I steam railroads, including salaried
employees (IC C ).
2,060
_do_
H ired farm workers (B A E )-------------------Hours and earnings
Average weekly earnings:
$46.86
M anufacturing-------------------------------Bituminous-coal m in in g -------------------R etail tra d e ________________________
60.32
Building construction (p riv a te )--.........
Average w eekly hours:
40.9
M anufacturing--------------------------------- H ours,
Bituminous-coal m ining ---------- ------ - ___ doR etail tra d e ________________________ ___ do.
38.4
Building construction (p riv ate)--------- ___ do.
Average hourly earnings:
$1.145
M anufacturing-------------------------------Bituminous-coal m ining.......... ............ .
R etail tra d e ___________________ - —
$1.569
Building construction (p riv a te )--.-—
Average straight-tim e hourly earnings
in m anufacturing, using—
C urrent em ploym ent by in d u stry .
E m ploym ent by in d u stry as of
Jan u ary 1941.
’ $4.83
Q uarterly farm wage rate, per day
w ith o u t board (B A E).
Industrial injuries and labor turn-over
Industrial injuries in m anufacturing per
million m an-hours w orked.
Labor turn-over per 100 employees in
m anufacturing:
4.3
T otal separations- ------ -----------------2.9
Q uits__________________________
0.9
Lay-offs_______________________
4.1
T otal accessions_______________ ____
Labor-management disputes
W ork stoppages beginning in m onth:
N u m b e r___________________________
N um ber of w orkers involved------------- Thousands—
All w ork stoppages during m onth:
N um b er of m an-days idle----------------- ___ do______
M an-days idle as percent of available
w orking time.
See footnotes a t end of table
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58,970
41,950
17,020
57,040
40,430
16,610
49,140
7,900
1,930
1, 520
410
40,381
58,990
41,820
17,170
57,030
40, 270
16,760
48,410
8,620
1,960
1,550
410
40,178
53,130
35, 950
17,180
51,160
34, 450
16, 710
44,000
7,160
1,970
1,500
470
37,463
3 54, 230
3 40, 950
3 13, 280
2 46, 930
2 35, 600
2 11,300
2 37,430
2 9, 500
2 7, 300
3 5, 350
2 1,950
30, 353
14,967
828
1,808
4,005
8,259
5, 244
5,270
14, 763
827
2, 040
3,987
8, 040
5,208
5,313
13,059
802
1,042
3,896
7,959
4,936
5,769
10, 078
845
1,753
2,912
6, 618
4,160
3,988
2,441
2,477
8, 576
367
12,218
334
1,382
12,026
334
1,376
10, 519
333
1, 397
8,192
371
988
2,503
2,624
2,028
« 2,248
$45. 74
$61. 49
$33.04
$57.65
$45.68
$62. 54
$33.19
$59. 20
$41. 21
3 $56. 29
3 $28.88
$51. 85
37.7
27.1
43.0
32.6
40.2
41.9
39.6
37.2
40.4
42.9
40.0
38.8
41.5
8 44.9
«40.0
37.1
$23.86
$23.88
$21.17
$30. 39
$1.139
$1.473
$0.918
$1. 549
$1.130
$1. 459
$0. 908
$1. 526
$0.994
« $1. 263
8 $0.800
$1.397
$0.633
$1.104
$1.106
$1.093
$1.095
i $0. 951
*$0.949
$0. 622
$0.640
4.94
1 $4. 40
3 $1. 53
3 18.3
15.4
4.9
3.7
0.7
5.7
6.3
4.7
1.0
6.8
5.9
4.0
1.3
6.9
180
95
310
450
450
290
134
50
3,065
0.4
4, 750
0.7
4,500
7,718
1.4
0.6
$0.886
$0. 536
$0. 933
«3.5
«0.7
«2.7
«2.8
1,484
0.28
VI
CURRENT LABOR STATISTICS
Current statistics of labor interest in selected periods 1—Continued
1946
Item
U n it or base
period
1945
1939:
Decem average
for
year
O ctober
ber
D e
cem
ber
N o
vem
ber
1935-39= 100___
153.3
152.2
148.4
129.9
99.4
1935-39=100__
1935-39=100__
1935-39= 100. __
1935-39=100-__
1935-39=100-__
1935-39 = 100-.1935-39=100—
185.9
176.5
187.7
171.0
115.5
177.1
136.1
185.9
114.8
171.0
132.5
187.7
180.0
167.0
8 108.8
114.4
167.6
130.8
180.0
141.4
149.4
8 108.3
110.3
148.3
124.8
141.4
95.2
100.5
104 3
99.0
101.3
100.7
95.2
1935-39=100—
141.6
140.6
1935-39=100..- 197.8
203.6
200.9
1935-39 = 100—
198.5
1935-39 = 100__ 201.1
201.6
185.0
1935-39=100..
184.5
1935-39=100--. 176.2
167.8
1935-39 = 100-.. 207.3
244.4
1935-39 = 100-__ 175.3
170.5
1926 = 100___
» 140. 9 » 139. 7
1926=100.......... » 134.8 9 132. 9
138.5
190.7
202.4
214.6
176.5
166.5
147.9
167.5
» 134.1
» 127.1
109.2
131.2
136.2
193.2
177.3
124.9
125.1
126.6
107.1
101.6
96.6
95.9
91.0
94.5
95.5
87.7
100.6
77.1
79.5
1926 = 100. . . . » 124. 7 8 120. 7
»115.8
100.5
81.3
165. 3
157.9
131.5
108.6
65.3
70.4
M illions_____ $15,895 $14, 202 $14, 673 $14, 272
____do_______
*°$32,100 10$26 260
» $7, 005
____do_______ $10,282
« $4, 539
Prices
Consum ers’ price index (moderate income
families in large cities): All items.
F o o d ________ ____ _________________
C lothing___ ____ __________ ____ ___
R en t________________ _____ _________
Fuel, electricity, and ic e ,--................. . .
Housefurnishings___ _____ __________
M iscellaneous______________________
R etail food price index (large cities): All
foods.
Cereals an d bakery products____ ____
M ea ts______________________________
D airy pro d u cts_____________________
Eggs----------------------------------------------F ru its and vegetables________________
Beverages__________________________
F ats and oils________________________
Sugar and sw eets___________________
W holesale price index: All commodities___
All commodities other th an farm
products.
All commodities other th a n farm prod
ucts and foods.
F arm products______________________
Foods______________________________
National income and expenditures
N ational income paym ents (B F D C )_____
Consum er expenditures for goods and serv
ices (B F D C ).
R etail sales (B F D C )____________________
Production
Industrial production index, unadjusted
(F R ): Total.
M anufactures_______________________
M inerals___________________ ; _______
B itum inous coal (B M )__________________
Car loadings index, unadjusted (F R )_____
Electric energy (F P C ): T o tal____________
1926 = 100____
1926 = 100_____
1935-39 = 100...
168.1
160.1
169.8
165.4
$9, 086
$8.911
$8, 489
94.5
176
182
184
161
100
1935-39 = 100...
184
1935-39 = 100.-131
Thousands of 42, 320
short tons.
1935-39=100...
131
M illio n s of 24, 849
kw.-hr.
___do_______
20, 809
____do_______
4,040
191
135
37, 390
191
146
56, 000
167
126
46, 955
109
106
32,905
141
23, 943
149
24, 430
119
22, 014
(»)
19, 949
3,994
20 222
4, 208
3) 906
(»)
$1, 057
$226
$1,144
$268
$1, 237
$335
$552
$303
8 $527
(‘O
35, 200
46, 600
60, 200
29, 500
8 41, 200
U tilities (production for public use)___
Ind u strial establishm ents...... ................
Construction
Construction expenditures_______________ M illions____
Value of urb an building construction _ ___do_______
started.
New nonfarm family dwelling u n its______
101
i
Source: Bureau cf Labor Statistics unless otherwise indicated. A bbreviations used: BC (B ureau of
the Census); IC C (Interstate Commerce Commission); BA E (Bureau of Agricultural Economics); B F D C
(B ureau of Foreign and Domestic Commerce); F R (Federal Reserve); B M (B ureau of M ines); F P C
(Federal Power Commission). M ost of the current figures are prelim inary.
2 10-month average M arch to D ecember 1940—not comparable w ith later figures. Revisions are in
process.
Excludes employees on public emergency work, these being included in unem ployed civilian labor
force, civ ilia n em ploym ent in nonagricultural establishm ents differs from nonagricultural em ploym ent
in civilian labor force m ainly because of th e inclusion in the latter of such groups as self-employed and
domestic and casual workers.
includes workers employed b y construction contractors and Federal force-account workers (nonm ain
tenance construction workers employed directly b y th e Federal G overnm ent). Other force-account and
nonm aintenance construction em ploym ent is included under m anufacturing and other groups
8 December.
6 November.
7 January.
8 September.
»Includes current m otor vehicle prices. See footnote on page 292 of this issue.
18 T hird quarter.
11 N o t available.
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MONTHLY LABOR REVIEW
FEBRUARY 1947
F u ll E m p lo y m e n t P a tte rn s , 1 9 5 0 : P a r t l 1
By J erome Cornfield, W. D uane E vans, and M arvin H offenberg, of the Bureau of
Labor Statistics
The Problem of Full Employment
major economic problem of the United States in the decade pre
ceding the outbreak of war in Europe was unemployment. By 1933
one-fourth of the labor force was unemployed, and even at the height
of the subsequent recovery one out of every eight persons in the labor
force was on emergency work or was seeking work.
Large scale unemployment may be regarded from different points
of view—as under-utilization of human and material resources, as a
maldistribution of the necessities and comforts of life, or perhaps most
significantly as a cumulation of individual frustrations which may
affect the very fabric of society, leading to political and social instabil
ity. Regardless of viewpoint, the achievement of high and stable
levels of employment is clearly of paramount importance for the
United States, and, because of the inevitable repercussions of domestic
unemployment, for the rest of the world as well. Success in this
endeavor will determine whether the period after full reconversion
to peacetime production is to be one of expanding opportunity, security
for the individual, and rising standards of living both here and abroad,
T he
1 T h is a r tic le (p r e s e n te d in tw o p a r t s ; p a r t 2 w ill a p p e a r in th e M a rc h is s u e ) is a
s u m m a ry o f a b u lle tin , to be p u b lis h e d in th e n e a r fu tu r e , e n title d F u ll E m p lo y m e n t
P a t t e r n s , 1 950 : T h e S tr u c tu r e o f th e A m e ric a n E c o n o m y U n d e r F u ll E m p lo y m e n t C o n d i
tio n s , in w h ic h a m o re e x h a u s tiv e d is c u s s io n m ay be fo u n d . T h e s tu d y w a s p re p a re d in
th e B u r e a u ’s P r o d u c tiv ity a n d T e c h n o lo g ic a l D e v e lo p m e n t D iv isio n u n d e r th e d ire c tio n
of W. D u a n e E v a n s , C h ief. E x te n s iv e u se w a s m a d e o f d a ta a n d te c h n iq u e s d eveloped
in o rd e r d iv is io n s o f th e B u re a u . S p e c ia l m e n tio n s h o u ld be m a d e o f th e c o n trib u tio n s of
D o ro th y S. B ra d y , D o ro th y D u ra n d , A le x a n d e r F in d la y , C elia S t a r G ody, S ta n le y L e b e rg o tt,
L e s te r P e a rlm a n , a n d C h a rle s D. S te w a r t. T h e s tu d y o f i n t e r in d u s tr y re la tio n s h ip s , b a sic
to th e a n a ly s is , w a s p r e p a re d fo r th e B u re a u u n d e r th e d ire c tio n of P r o f. W a s s ily L e o n tie f,
of H a r v a r d U n iv e rs ity . D a ta a n d te c h n iq u e s d ev elo p ed by N e al P o t t e r of th e Office of
P r ic e A d m in is tra tio n , R ic h a r d M u sg ra v e o f th e B o a rd of G o v e rn o rs o f th e F e d e ra l R ese rv e
S y ste m , W y lie M. K ilp a tric k of th e B u re a u o f th e C en su s, G eorge B. G a llo w a y of th e
T w e n tie th C e n tu ry F u n d , a n d W e rn e r B a e r o f th e U. S. T a riff C om m issio n w e re u sed in
th e p r e p a r a tio n o f th e e s tim a te s . T h e u ses to w h ic h th e d a ta h a v e been p u t a n d th e
in te r p r e ta tio n s m a d e a r e th e re s p o n s ib ility o f th e a u th o r s .
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163
164
MONTHLY LABOR REVIEW— FEBRUARY 194 7
or one of insecurity, low and possibly declining levels of living, and
heightened tensions, both domestic and international. No more im
portant domestic problem faces the Nation.
The present article is a summary of a comprehensive study which
attempts to evaluate in quantitative terms what is involved in achiev
ing and maintaining high and stable levels of employment after full
adjustment to peacetime conditions. The year 1950 has been selected
as a reference period for the analysis, because, while not too remote,
it should nevertheless be relatively free of the present transitional
disturbances.
Before proceeding with the analysis itself, one thing must be clearly
stated. No unconditional forecasts for the year 1950 are presented at
any place in the text. Specific quantitative assumptions regarding the
size of various economic magnitudes in 1950 are made, and the purpose
of the analysis is to investigate the logical consequences of these
assumptions. As will appear, none of the assumptions is made arbi
trarily, but there are varying likelihoods that the conditions they
represent will actually prevail in 1950. Other assumptions may
appear more reasonable to some readers, and a later repetition of the
entire study, incorporating different assumptions, may be necessary to
throw light on other problems and possibilities. To assist the reader
in identifying the key assumptions as they appear in the text, they are
numbered and italicized.
Framework of Analysis
We may recognize at the outset that the most important factors deter
mining the characteristics of the American economy in the future will
continue to be the habits, preferences, and behaviour of the American
people. The present analysis is not concerned with any perfect or
ideal economy, but rather with the kind which could develop in 1950
as a result of free and unrestricted choice. The past behaviour of the
American people, as indicated by available statistics and studies, has
been used throughout as a guide. For example, estimates of the size
of the labor force in 1950 are based not on any preconceived notions
with respect to the desirability or undesirability of having married
women work, but rather on analysis of how many married women have
entered the labor market in the past. Similarly, the estimates of con
sumer expenditure embody no judgments with respect to the relative
virtues of thrift or extravagance; they are solely an attempt to appraise
objectively the future preferences of the American people in terms of
their past actions.
There are certain key aspects of our economic behaviour that will
have a crucial effect on the kind of economy we have in 1950. The num
ber of persons who are likely to be in the labor market seeking work
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FULL EMPLOYMENT PATTERNS, 1950
165
will obviously be of importance; the way in which their income is spent
will affect both the over-all level of production and its distribution
between industries. Another factor of importance is the level of pro
ductivity, which in turn depends to a considerable extent on the rapidity
with which different industries modernize their plant and equipment.
Working hours, the volume of foreign trade, and the level of govern
ment expenditures will each have their effect. The present study is
essentially an attempt to project these and other factors to 1950 on
the basis of past behaviour, and to put the separate analyses together
by use of a consistent framework of analysis.
Chart 1 provides a graphic summary of the basic analytic framework
used. At the beginning, the total number of jobs necessary to provide
full employment in 1950 is estimated. After assuming wage rates,
working hours, rates of taxation and other factor payments, estimates
of total purchasing power—that is, the income accruing to consumers,
business, and government—are obtained. The volume of purchasing
power so derived is one of the important determinants of the final
demand for goods and services.
From estimates of purchasing power, we proceed to estimates of
demand for specific goods and services. The amount that consumers
spend for the products of different industries will obviously be largely
determined by the amount of income they receive. Business expendi
ture for capital goods is, in sharp contrast, determined by a variety
of institutional and technological factors in addition to the volume
of purchasing power. Other important components of demand not
uniquely determined by current purchasing power are those of govern
ment and foreign countries Previous experience at various levels of
activity and trade furnishes some guide for making reasonable
assumptions on these points.
The estimates of demand obtained are in terms of final products.
They show the demand for automobiles but not for steel, for shoes but
not for leather, for residential construction but not for lumber. To
proceed from demand for final products to demand for raw and inter
mediate goods as well, a special technique relating the two is required.
By this means, estimates of total output of each industry implied by
the derived level of demand are obtained.2
2
T h e w a g e, ta x , a n d p ro fit r a te s o rig in a lly specified a r e f o r th e y e a r 1950. A c co rd in g ly ,
th e re s u ltin g e s tim a te s o f in co m e a n d d e m a n d f o r fin a l g o o d s a re a lso in te rm s of 1950
p ric e le v e ls. T o u se th e s e fig u res w ith o th e r d a ta , i t is n e c e s s a ry to c o n v e rt to a 1939
b a sis. T h is m ig h t a p p e a r to be a n in s u p e ra b le o b s ta c le , b u t a c tu a lly th e b a s is f o r th e
c o n v e rsio n is im p lic it in th e p re v io u s c o m p u ta tio n s .
I f th e w ag e, ta x , a n d p ro fit p o s itio n of a h in d u s tr y is fixed, i t s p ric e le v e l is d e te rm in e d
e x c e p t in s o f a r a s i t p u rc h a se s m a te r ia ls o r se rv ic e s fro m o th e r in d u s trie s . I f w a g e, ta x ,
a n d p ro fit le v e ls a r e specified f o r a ll in d u s trie s , th e n th e p i ice le v e ls f o r a ll a r e a lso d e te r
m in ed . T h e s tu d y of in te r in d u s tr y re la tio n s (p. 1 8 7 ) f u r n is h e s th e m a te r ia ls n e ed e d to
e v a lu a te th e p ric e re la tiv e s f o r th e s e p a r a te in d u s trie s .
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EM PLOYM ENT
UNEMPLOYMENT
ARMED FORCES
EMPLOYMENT
BY INDUSTRY
N.
P U R C H A S IN G
POW ER
WAGE RATES
TAX RATES
ETC.
's.
CONSUMER INCOME
CORPORATE INCOME
GOVERNMENT REVENUE
/
\ f
INCOME AND
EXPENDITURE
PATTERNS
PRODUCTIVITY
HOURS OF WORK
PRO D U CTIO N
D EM A N D
BY INDUSTRY
CONSUMER GOODS
CAPITAL GOODS
GOVERNMENT PURCHASES
EXPORTS BY INDUSTRY
INPUT
OUTPUT
•»»
MONTHLY LABOR REVIEW— FEBRUARY 194 7
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INTERRELATIONS OF EMPLOYMENT, INCOME. DEMAND,
AND PRODUCTION
FULL EMPLOYMENT PATTERNS, 195 0
167
Finally, the computed total outputs for the separate industries are
converted by means of estimates of productivity and working hours
into estimates of employment. Comparison of the volume of employ
ment so derived with the volume initially assumed provides a measure
of whether the level of demand may be expected to equal, fall short of,
or exceed the full-employment level of supply. If the employment so
derived falls short of full employment, a change must take place in the
basic relationships and institutional factors which together determine
the total volume of demand within the economy, or unemployment
will ensue.
The computations to this point do not yield full employment, so
one additional step is necessary to complete the framework of the
analysis. The effect of any changes necessary to attain full employ
ment will be to increase the estimated levels of consumption expendi
ture, of investment expenditure, or both. We may assume that the
necessary alteration has been achieved by one route or the other, and
bring the structure into balance by a partial repetition of the original
computations. The results will give patterns in detail for an economy
which is internally balanced, which provides 59 million civilian jobs,
and which has a basic structure similar to that of the United States.
The differences between these patterns and our position today repre
sent, subject to the limitations of the data used and the assumptions
incorporated in the analysis, the changes which may be expected to
take place if full employment is achieved in 1950.
Labor Force and the Composition of Civilian Employment
The labor force of the United States is subject to continuous long
term growth, partly because of population growth, and partly because
of increased rates of participation in the labor force for many groups
within the population. Thus, in 1900 only 19 percent of the women
aged 20 to 64 were in the labor force; by 1940, participation had
increased to 29 percent. Had the 1900 rate prevailed in 1940 the labor
force would have been smaller by almost 4 million persons.
An appraisal of the strength of all the forces that may influence
the size of the 1950 labor force has been undertaken by the U. S. Bureau
of the Census.3 This study indicates that the operation of normal
prewar trends would result in a labor force of 61.5 million persons
3
Normal Growth of the Labor Force in the United States : 1940 to 1950, U. S. Depart
ment of Commerce, Bureau of the Census, June 12, 1944, Series P-44, No. 12. The projec
tions given in the Census Bureau study refer to the last week in March, those in the text
to the average for the year. Because of seasonal variation in the size of the labor force,
the yearly average is about 1 million above that for March. Small adjustments have also
been made for off-continent armed forces not included in the 1940 enumeration. An addi
tional upward adjustment of 1 million to account for the effect of the Census Bureau’s
revision of procedures beginning in July 1945 has also been made.
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MONTHLY LABOR REVIEW--- FEBRUARY 194 7
by 1950, 6 million higher than in 1940. The effect of each of these
trends is summarized in the following statement.
N et change from 1940
(millions of persons)
Increase in population 14 years of age and over--------------------------------- +4. 5
Increasing age of schooling________________________________________ —. 3
Earlier retirement__________________________ _____________________ —. 2
Decreasing participation of males 20 to 64 years of age------------------------- —. 5
Increasing participation of females 20 to 64 years of age---------------------- +2. 5
Net change, 1940 to 1950_________________________________________ +6. 0
1940 labor force (actual)--------------------------------------------------------------- 55.5
1950 “normal” labor force (estim ated)--------------------------------------------- 61.5
These estimates are usually referred to as estimates of “normal”
labor force because they make no allowance for possible disturbances
introduced by the war. An appraisal of the wartime experience 4
suggests that 1.0 million workers may remain in addition to those
composing the “normal” labor force, if reasonably full employment
is attained by 1950. (I) Deducting an allowance of 1.5 million for
the size of the armed forces and 2.0 million for “minimum frictional”
unemployment, it is concluded that full employment in 1950 will
require about 59 million civilian jobs.5 (See tabulation following.)
Millions of persons
1950 “normal” labor force___________________________ 61. 5
Net wartime entries expected to remain (add)_____ 1.0
1950 labor force_____________________________________ 62. 5
Size of armed forces (deduct)____ -i______________ 1.5
Minimum unemployment (deduct)_______________ *_ 2.0
1950 civilian employment____________________________ 59. 0
Whether we actually attain this level of civilian employment de
pends on 1950 levels of production. The remainder of this analysis
is devoted either directly or indirectly to determining this level of
production. Before we proceed, however, we must note that there are
important segments of the economy in which employment is to a con
siderable extent independent of production. This is true for agricul
ture, for most categories of self-employment, and for several others
as well. The statement below summarizes estimates of the size of these
semi autonomous components of the labor force in 1950. The remain
ing component consists of wage and salary jobs in private nonagricul4 “Extra” Workers in the Postwar Labor Force, in Monthly Labor Review, November
1945 (p. 841).
5 For the convenience of the reader, major assumptions are italicized and numbered.
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169
FULL EMPLOYMENT PATTERNS, 1950
tural establishments.
million such jobs.
(II) Full employment will involve filling 39
Millions
of persons
Civilian employment---------------------------------------------------------------------Agricultural------------------------------------------Self-employed----------------------------------Unpaid family workers----------------------Wage and salary workers-------------------Nonagricultural--------------------------------------Self-employed-----------------------------------Unpaid family workers----------------------Wage and salary workers-------------------Domestics______________________
Government employees-----------------Adjustment for noncomparabilities1.
Employees in private establishments.
59. 0
8.0
4.6
1.7
1.7
51.0
6.0
.4
44.6
2.0
5.0
—1.5
39.1
1
E s tim a te s o f th e n u m b e r of em p lo y ees in d iffe re n t in d u s tr ie s a r e u s u a lly o b ta in e d fro m
re p o r ts o f em p lo y e rs. E s tim a te s o f th e size of th e la b o r fo rc e , c iv ilia n e m p lo y m e n t, a n d
u n e m p lo y m e n t, su c h a s th o s e u se d in th is s e c tio n , a r e b a se d on s ta t i s t i c s o b ta in e d by th e
C en su s B u re a u by d ire c t e n u m e ra tio n o f in d iv id u a ls . F ro m A p ril 1940 to A u g u s t 1945
th e n u m b e r o f e m p lo y e es in n o n a g r ic u ltu r a l e s ta b lis h m e n ts a s e s tim a te d by th e B u re a u of
L a b o r S ta tis tic s fro m e m p lo y e r re p o r ts a n d by th e C en su s B u re a u fro m d ir e c t e n u m e ra tio n
h a v e d iffered by s e v e ra l m illio n s. T o p ro c e ed fro m e s tim a te s of th e la b o r fo rc e to e s ti
m a te s o f e m p lo y m e n t in d iffe re n t in d u s tr ie s i t is th e re fo re n e c e s s a ry to u se a n a r b itr a r y
a d ju s t m e n t f a c to r w h ic h a llo w s f o r th o s e d ifferen ces.
Productivity in 1950
The level of production that must be attained if the economy is to
employ 39 million people in private nonagricultural establishments
will depend on how much each person produces, i. e., on productivity.
The past peacetime record on productivity is one of fairly continuous
small increases from year to year. In all manufacturing industries
combined, output per wage-earner man-hour increased at a rate slightly
above 3 percent per year during the period 1919-39. In mining, the
annual rate of increase was about 3 percent. The small year-to-year
gains in productivity resulted in an impressive advance for the 20year period. An annual rate of increase of 3 percent implies an in
crease in output per man-hour of 80 percent over a 20-year period.
The steady upward movement of productivity reflects the influence
of a large number of small changes—technical developments, the ac
cumulation of capital equipment, improvements in organization, better
management, improved working and living conditions, the reduction
in working hours, and the like. The most important of these factors
are technical developments and improvements in the character of
capital equipment. Thus, fundamentally, advance in productivity
arises from increasing technical knowledge and the application of
this knowledge to economic activity.
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MONTHLY LABOR REVIEW--- FEBRUARY 1947
The broad trends in productivity conceal important differences
among individual industries. In some industries, man-hour output
has not changed significantly over a long period of time. These are
generally the older industries with a mature technology, in which the
volume of output has not expanded or lias actually declined. In the
manufacture of bread and bakery products, for example, output per
man-hour in 1940 was only 3 percent higher than in 1924. Other
industries show rapid increases in productivity during the period
when production is expanding and new production techniques are be
ing evolved, but more modest progress thereafter. In the automobile
industry, output per man-hour increased strikingly during the twen
ties, with a total advance of 134 percent between 1919 and 1929. From
1929 to 1939, however, the increase was only 19 percent.8 It is of
interest to note that peak production for the entire period was achieved
in 1929. Still other industries have experienced rapid advances in
man-hour output which have continued up to the present and there is,
in these cases, no reason to assume any decline in the rate of progress
in the near future, once transitional adjustments are made. In rayon
manufacture, productivity doubled between 1929 and 1934 and very
nearly doubled again from 1934 to 1939.
It is clear that the past experience of individual industries should
be of considerable assistance in estimating future levels of productivity.
For example, it is reasonable to assume that man-hour output in rayon
manufacture will increase substantially by 1950, and that in the auto
mobile industry the gains will be more modest. Of course, estimates
can only be made of general levels, since short-term fluctuations can
occur for a variety of reasons. The actual level of man-hour output
achieved in an industry at any particular time will also depend on such
factors as the volume of production, degree of utilization of capacity,
composition of the work force, labor turn-over, hours and shift
arrangements, and the state of labor relations.
The estimates shown in table 1 are not forecasts of productivity for
1950. The figures for each group are uniformly based on an extra
polation of trends for the component industries. In particular, the
probable effects of new techniques developed as a result of the war may
not be fully taken into account. A forecast of productivity in 1950
for a particular industry would require, in addition to an examination
8 T h e v e ry s u b s ta n tia l im p ro v e m e n ts in q u a lity a r e n o t re fle c te d in th e p r o d u c tiv ity
in d e x . I t is c le a r t h a t if i t w e re p o ssib le to ta k e a c c o u n t o f q u a lity c h a n g e s, th e g a in fro m
1929 to 1939 w o u ld be c o n sid e ra b ly h ig h e r, f o r th e a v e ra g e c a r p ro d u c e d in th e la te th ir tie s
w a s h e a v ie r a n d in c o rp o ra te d m o re e x tr a e q u ip m e n t th a n i t s p re d e c e s so rs. N e v e rth e le s s,
th is f a c to r do es n o t a ffe c t th e c o n c lu sio n t h a t th e r a te o f p ro g r e s s d u rin g th e th i r t i e s w a s
slo w e r th a n in th e tw e n tie s , f o r th e im p ro v e m e n ts in q u a lity d u r in g th e tw e n tie s (lik e
w ise n o t re fle c te d in th e p r o d u c tiv ity iig u re s ) w e re , if a n y th in g , g r e a te r t h a n th o s e m a d e
in th e l a t e r p e rio d .
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171
FULL EMPLOYMENT PATTERNS, 1950
of earlier experience, a detailed analysis of possible changes in produc
tion techniques, probable amounts of reequipment, alterations in prod
ucts made, and the availability of new or better materials.
Table 1.—Estimated change in productivity, 1939-50, by industry group
In d u stry group
M anufacturing:
Iron and steel and their p ro d u c ts...
Electrical m achinery_____________
M achinery, except electrical--------Transportation equipm ent, includ
ing autom obiles-----------------------Nonferrous metals and their prod
ucts-------- ------------------------------L um ber and tim ber basic products.
F u rnitu re and finished lum ber
products______________________
Stone, clay, and glass products-----Textile-mill products and other
fiber m anufactures-------------------A pparel and other finished textile
products_____________________ Leather and leather products--------
O utput
per m an
hour, 1950
(1939=100)
124
130
128
136
114
121
118
126
In d u stry group
M anufacturing—C ontinued.
Food___________________________
T o b a c c o -----------------------------------Paper and allied p r o d u c ts .---- Printing, publishing, and allied
in d u stries.. ________________ -Chemicals and allied products ..
Products of petroleum and coal.
R ubber pro d u cts.. --------------------M iscellaneous-----------------------------
128
M in in g _____________________________
T ransportation--------------------------------Public utilities______________________
123
128
Finance, services, and miscellaneous. . .
C onstruction------------------------------------
O utput
per m an
hour, 1950
(1939=100)
119
117
134
124
144
138
128
123
125
142
141
119
115
109
i These estim ates are not forecasts for 1950. T he figures for each group are based on extrapolation of
trends for the component industries. In particular, probable effects of new techniques developed as a
result of th e w ar m ay not be fully taken into account. A forecast for a particular^industry w ould require,
in addition to an exam ination of earlier experience, a detailed analysis of possible changes in production
techniques, probable am ounts of reequipm ent, alterations in products made, and the availability ol new
or better materials.
( I ll) For most of the separate industries, the increase assumed
between 1939 and 1950 is from W to 30 percent. However, there is wide
variation among the estimates for the separate industries, reflecting
divergent trends in the past. In those few industries which show no
upward trend in recent years, it is assumed that productivity will be at
the 1939 level, and in several other industries the estimates imply only
small increases. On the other hand, increases estimated for other
industries range up to 90 percent.
The projections made for 1950 are felt to be quite “conservative,”
in the sense that the assumed productivity gains for 1939-50 are not
exceedingly large; the percentage increases are generally smaller than
those which occurred over the period 1929-39.
The National Income and Its Distribution
Production depends on demand, the most important component of
which is consumer demand. But consumer demand does not arise in a
vacuum; it depends on the level and distribution of consumer income.
Income is a monetary magnitude, however, and is dependent on the
wage rates (and consequently prices) in which it is expressed. (IV)
It has been assumed for convenience that wage rates in 1950 will be
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172
MONTHLY LABOR REVIEW— FEBRUARY 194 7
approximately 15 percent above their level in May 19461 (V) I t has
been further assumed that prewar working hours will prevail in 1950.
Together, these assumptions imply a full employment wage and salary
income of 122.8 billion dollars in 1950. Past relations between wage
and salary payments and other forms of income provide estimates of
the other components of national income. These estimates are sum
marized in table 2. Some of the components are at their wartime
level, others are well above it. In particular, total wage and salary
income exceeds the 1944 level by 11 percent, while dividends, because
Table 2.—National income and gross national product, 1950, 1945, and 19411
[In billions]
No.
Item
1
2
3
4
5
«
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Wages a n d salaries.-.
. . . . ___ ____ _______ ______
Supplem ents to wages and salaries___________________
T otal compensation of employees (1 + 2 )______ _____
Corporate net income (5+6)_________________________
D iv id en d s. ____________________________________
U ndistributed profits__________ _____ _ ________
E ntrepreneurial n et income (8+ 9)___________ . . ___
A griculture___ _____ ___________ ____ ___________
N onagriculture____________________ . . . . ______
Interest__________________________ ________________
N et rents and royalties____________ . . . __________ . .
N ational income (3+ 4+ 7+ 10+ 11)____________________
U ndistributed profits (deduct)___________________
Em ployers’ social security contributions (deduct)3. .
Em ployees’ social security contributions (deduct)3. .
Transfer paym ents ( a d d ) ___ . . . . ________ _..
Income paym ents (12—13—14—15+16)__________ . _.
Personal taxes (deduct)__________________ ______
Disposable income (17—18)_________ ____ _________ . . .
Depreciation and other reserves (add)__________ ______
Business taxes (a d d )_______________________ _________
In ventory revaluation_________________ . . . ________
A djustm ent for discrepancies___ ____ ___________ ._
Gross national product (12+20+21+22+23)___________
1950 2
1945
1941
$122.8
5.4
128.2
14.9
10.9
4.0
27.0
14.0
13.0
$111.4
3.1
114.5
9.0
4.5
4.5
25.6
12.5
13.1
184.8
4.0
5.1
3.1
5.4
178.0
16.1
161.9
11.6
19.1
161'. 0
4.5
$60.8
3.7
64.5
8.5
4.5
4.0
15.8
6.3
9.6
8.0
96.9
4.0
8.1
160.7
21.0
139.7
9.8
28.6
(4)
- 2 .0
197.3
2.5
92.7
4.0
88.7
9.1
18.5
- 3 .2
- 1 .1
120.2
215.5
1 Totals m ay no t add because of rounding.
2 See full stu d y for details of assum ptions. T h e relationship of the parts has been estim ated.
dollar m agnitudes should be regarded as assumed. T h ey are not forecasts.
3 Includes contributions to governm ent retirem ent funds.
The
* Less than $50,000,000.
of the removal of excess profits taxes, are more than double this level.
The total income, 185 billion dollars, exceeds the wartime peak by a
substantial margin.
The huge magnitude of the national income aggregates is likely to
conceal the fact that low incomes may be far from uncommon even
under full employment. It is necessary in any event to estimate the
distribution of consumer units (that is, families as well as single
individuals who do not pool their incomes or expenditures with
7 The actual wage level assumed is not of critical importance for the present study. A
higher wage level assumption would give a higher national income figure, but would also
increase the price levels in which it is expressed. Since the dollar magnitudes involved
in the analysis are reduced to 1939 price levels at a later stage in the analysis, the effect
on the final results of assuming higher or lower wage levels would be slight. The impor
tant assumption is that the difference between industries in average wage levels is the same
in 1950 as in May 1946.
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173
FULL EMPLOYMENT PATTERNS, 195 0
others) by size of income in order to examine the probable volume
and distribution of consumer expenditures, required at a later stage
in the analysis. But these same estimates, based on previous and
current experience, are also useful in appraising the human impact
of even the high levels of national income derived above. The esti
mates imply that one-sixth of all consumer units will receive incomes
of less than $1,500, and one-twelfth of them incomes below $1,000
(table 3). Even though the total volume of civilian goods for 1950
implied by the assumptions far exceeds that characterizing the most
prosperous prewar years, it appears that large numbers of American
families might still receive incomes which could not purchase the
goods and services required to maintain a satisfactory or desirable
standard of living.
T able 3.—Estimated distribution of consuming units by size of money income, 1950,
1942, and 1935-361
M illions of consuming units »
M oney income class
1950
(estimated)
1935-36 3
1942 2
All in c o m e s______________________________________
45.0
41.2
39.4
U nder $500
$500-$999
$1 000-$1,499
$l500-$lj999
$9 n00-$2'099
$3 000-$4,999
$5 000 qnd nvo,r
1.1
2.7
3.7
5.0
10.9
14.2
7.4
3.5
6.6
6.6
6.0
7.9
7.3
3.3
6.7
11.7
8.7
5.2
4.4
1.8
.9
-
-
___________________
--- _______________________
_______________ _______
_______
____ _________ _
___________________
______ - __________________
____________________
/
1 Consuming u n its are families whose members pool incomes a n d expenditures, and individuals who do
not pool income and expenditures w ith other persons.
2 Office of Price A dm inistration, Civilian Spending a n d Savings, 1941 and 1942.
2 N ational Resources C om m ittee, Consumer Incomes in the U nited States, W ashington, 1938.
Government Expenditures and Revenues
Normal government operations at all levels, Federal, State and local,
have an important effect on the level of employment. Government
wage and salary and “transfer” payments provide one of the sources
of demand for consumer goods and services. Purchases of materials
and finished goods for government purposes provide a market for the
products of many industries, and for some, like shipbuilding, aircraft,
and construction, a very important one. Taxes levied on business
enterprises enter costs and affect either selling prices, payments to
factors of production, or both. Taxes on individuals determine how
much of their income they are free to spend for goods and services.
Because of these effects, it is necessary to prepare detailed estimates
of probable levels of government expenditure and revenue. Even
tually, the decisions that will determine actual expenditure and revenue
in 1950 will be made legislatively. The present estimates are con
sequently neither forecasts, a statement of present government inten72S607— 47------2
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MONTHLY LABOR REVIEW--- FEBRUARY 194 7
tions, nor a model of an ideal structure of government revenue and
expenditure. They are best interpreted as an approximate picture
of wliat might happen under full employment conditions in 1950 if
there were no basic change in the scope of government activities from
the prewar period, except those alterations which are an aftermath of
the war itself.
(VI) Three assumptions are basic to the present estimates:
1. The scope of government activity in 1950 will be substantially
that prevailing in prewar years.
2. Government expenditures and revenues will be in balance.
3. No reduction in the size of the debt will be attempted during 1950.
These are neither forecasts nor statements of objectives which are
necessarily desirable. Essentially we wish to know the inflationary
or deflationary prospects for 1950 under these assumptions.
T able 4.—Estimated Federal, State, and local expenditures for calendar year 1950,
and actual expenditures, fiscal year 1941
[In billions]
Federal
T ype of expenditure
1950
State and local
1941
1941
1950
D e fe n s e --_______________ __________________ ____
Com pensation of em ployees2_____ __ ________ ____
Interest p aym ents________________ ______ _______
C onstruction_____________
__________
O ther paym ents for goods and services3______
. .
1 $5.6
4.7
5.6
2.0
.9
$5. 8
3.5
1.1
.9
.9
$8.5
.5
2.6
.9
$4.5
.6
2.1
.7
T otal entering gross national p ro d u ct___________
418.8
12.2
12.5
7.9
Social security________________________________ _
Benefits and public assistance..- _______ . . . .
A dm inistration___________________________
A dditions to reserves-..
_ ______ . . .
V eterans’ p aym ents________________________________
M iscellaneous__________________________________
6. 1
2.1
.1
3.9
2.0
.6
1.4
.6
.1
.7
.4
.6
2.3
1.0
.1
1.2
1.8
1.2
.1
.5
.4
1.2
T o tal not entering gross national p r o d u c t______
8.7
2.4
2.7
3.0
T otal outlays________________ ____ ___________
27.5
14.6
4 15.1
10.9
1 Includes $0.1 billion construction; excludes paym ents to civilian personnel of defense agencies b u t in
cludes paym ents to arm ed forces personnel.
2 Includes governm ent contribution to employee retirem ent funds and paym ents to civilian personnel of
defense agencies.
3 Includes farm benefit paym ents and purchases of private o utput.
4 Does not add exactly to detailed figures shown, because of rounding of data.
Retention of the prewar scope of government activities does not
mean that expenditures will remain at prewar levels. National defense
will cost more; interest on the national debt will have increased; pay
ments of social security benefits and additions to reserves will, under
existing legislation, be higher. Total outlays are estimated at 42.6
billion dollars—27.5 billion Federal and 15.1 billion State and local.
This compares with a total outlay of 17.8 billion dollars in 1939 and
25.5 billion in 1941 (table 4),
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FULL EMPLOYMENT PATTERNS, 195 0
The estimates imply that government will take for its own use a
smaller part of the private product than in any peacetime year since
1930. Excluding defense expenditures, the percentage is less than the
portion used by government in 1929. As a market for the private
segment, government purchases are set at approximately 5 percent of
private output, as contrasted with about 6i/2 percent in the thirties
and 4i/2 percent in the twenties.
Under full employment conditions, a Federal budget of 27 billion
dollars can be balanced with prewar tax rates. A first approximation
to total revenues, using the 1941 tax structure, yields a surplus of
about 4 billion dollars. (VII) A tax structure with 1939 excise rates,
191^0 corporate income tax rates, personal income tax rates between
19J/J and 1951 rates, and 1939 rates for all other taxes except social
security gives the required revenues. This tax structure has been
arbitrarily assumed to yield neither surplus nor deficit. The details of
the estimates are shown in table 5.
Table 5.—Federal, State, and local revenues, estimated for calendar year 1950, and
actual for 1942 fiscal and 1939 calendar years
[In billions]
State and local
Federal
Source of revenue
1950
1942
$27.5
$16.9
12.2
Personal income _
_ _ _ _ _ _____
.5
"Rstate and gift
________________ _ ____
5.1
Corporate income___________ _________ - - _____
Custom s
_ _________________ __
.7
P roperty
- - ________ _____ ___________
2.0
L iquor and tnhaceo
.5
Gasoline
_____________________________________
Goneral sales
_______________ _______ __
O ther excises
____________________ ______
Miscellaneous _ - _____ ____ - ________ ______ }
5.6
Social security. ________________ ______ _________
N ontax revenues
____ _____________
1 3.8
Total revenue
.............................................. .
-- - - -
-9
.4
17.6
.4
1.8 1
.4
(
1.2 J
1.2
1939
1950
1942
$5.5
$15.1
$10.7
$9.7
.9
.4
1.0
.3
.7
.1
.7
.3
.1
.3
.2
.1
.1
5.1
4.6
4.3
1.0
.6
.4
.8
.5
.4
1939
i ______
1.6
2.1
.8
\ 1-2
11 1.9
-7
1.7
1.3
1.0
1.1
1.4
1>
3.2
• Tax accruals for 1941.
In summary, even in the absence of any expansion in the scope of
government activity, expenditures may be expected to exceed prewar
levels by substantial margins. Given full employment conditions,
however, it should be possible to finance the increased expenditure
with a tax structure departing but little from that prevailing before
the war.
77^ 1950 Level of Prices
Consumer expenditure of one dollar will generate some employment,
but the amount depends (among other things) on the prices in which
that expenditure is expressed. These prices will in turn be determined
by prevailing levels of labor productivity, wage and salary and other
factor payments, and the level of output. The manner in which the
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176
MONTHLY LABOR REVIEW— FEBRUARY 194 7
1950 level of prices is determined by each of these variables, while not
without interest, is omitted from the present discussion. The results
are summarized in table 6. They show that at full employment levels
of output in 1950 the higher wage rates and higher rates of return
on investment that have been assumed could be maintained at a price
level no higher than that prevailing in the summer of 1946.
T able 6.—Price level, estimated for 1950, and actual for 1945, 1944, and 19411
[1939=100]
1950 2
Item
C onsum p In v estm en t
tion model
model
1945
(actual)
1944
(actual)
1941
(actual)
Consumers’ purchases-_ ___ ______ ___
Producers’ d u ra b le s-.. _________________
C onstruction___________________________
E xpo rts__________________ _______ ___
3 131
131
3 135
128
3 137
129
4 135
132
129
114
139
135
126
113
124
133
106
108
112
113
All item s_________________________
131
136
130
126
107
1 T he price level for 1950 is no t a forecast, b u t the level of prices im plied b y the income paym ents in table 2
and a full em ploym ent level of o u tp u t.
2 T he indexes for 1950 are no t strictly comparable w ith those for 1945 and prior years in respect to con
sum ers’ purchases and construction. T h e different models of a full em ploym ent economy have been in
vestigated, one obtained from an augm ented volume of consumer dem and, the other from an augm ented
volum e of in v estm en t dem and. F o r a more complete explanation see p a rt 2.
3 Includes price changes on expenditures by farm and small-city families which have been excluded by
th e B ureau of Labor Statistics Index of Consumers’ Prices for 1945 and prior years.
4 Includes m aintenance, w hich has been excluded from th e historical series for 1945 and prior years.
There are two reasons for this. First, at considerably higher levels
of output many fixed costs, such as depreciation and interest, can be
spread over a larger volume, thus reducing unit costs. Second, the
productivity advances assumed offset to a considerable extent the in
creases in wage rates incorporated in the analysis.
The results are not, of course, a forecast of the actual level of 1950
prices. The benefits of technological advance may take the form of
higher pay to workers, improvements in the quality of goods sold,
lower prices, or any combination of these. The price estimates may
thus be interpreted to show that in 1950, under full employment con
ditions, 1946 rates of remuneration will be compatible with lowered
prices, or 1946 prices will be compatible with increased rates of re
muneration, but they are not intended to suggest which outcome is
the more likely one.
Consumer Demand
The possibility of achieving full employment in the coming years
will be decisively affected by future levels of consumer demand. There
are two key facts that must be remembered in appraising the effect
of consumer expenditure on the level of employment. First, as con
sumer income increases, expenditure tends to increase - as well, but
usually not to the full extent of the income increase. Second, as in
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FULL EMPLOYMENT PATTERNS, 1950
177
come increases, expenditure for certain types of goods tends to in
crease less rapidly than for others. Expenditure for food, for ex
ample, does not increase as rapidly as that for passenger cars.
It is helpful in an initial consideration of the subject to inspect the
way in which families with incomes of different sizes divide that
income between expenditure and savings. The differences in this
division provide an indication of the effect of income on consumption,
although these differences at the different income levels are of course
affected by factors other than income. Chart 2 indicates the extent
to which the percent of income saved was itself a function of income
in the prewar period. Families with incomes below $1,250 incurred
deficits, but as income rose above that amount, savings increased quite
rapidly. At incomes of $2,500, 10 percent of that income was being
saved; at incomes of $5,000, 20 percent; and at $20,000, more than
40 percent.
These data strongly suggest that the high level of income to be
expected under full employment conditions is likely to be associated
with a very high level of savings, both relative and absolute, if the
prewar pattern of expenditure prevails. Thus, in 1950 more than 15
percent of all families will, under the present assumptions, have
incomes of $5,000 or more (table 3) and, if prewar expenditure
habits persist, will as a group save more than one-tliird of their
income. These savings rates, when combined with the estimated 1950
income distribution, imply that more than one-fifth of a full employ
ment income might be saved. This compares with 11 percent in 1929,
16 percent in 1941, and is only slightly below the abnormally high
wartime levels of 1943 and 1944. This calculation is only approxi
mate since it makes no allowance for several important factors. The
result, nevertheless, suggests that the problem of finding outlets for
expanded savings in the form of a high and continuing volume of
investment may become acute.
This conclusion assumes a continuation of prewar expenditure
habits into the postwar period. Expenditure habits have changed
in the past, however, and there is no compelling reason to believe
that they will not change in the future. Chart 4, for example, sum
marizes the rate of savings at each income level in four different
periods, 1901, 1917-19, 1935-36, and 1941. The income levels are
all expressed in constant 1935-39 dollars. The pattern of change
shown by these four studies is striking. In 1901 a family with an
income of $2,000 (measured in 1935-39 dollars) saved 20 percent of
that income; in 1917-19, about 14 percent; in 1935-36, about 4 per
cent; and in 1941, about 3.5 percent. The differences in percent of
income saved are particularly marked between the two earlier and
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MONTHLY LABOR REVIEW— FEBRUARY 1947
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FULL EMPLOYMENT PATTERNS, 1950
179
the two later periods. For all income levels taken together the
differences averaged well over 10 points.
Over shorter periods of time, however, the relationship between
consumer income and expenditure is remarkably stable. Studies of
family expenditures are not made at sufficiently frequent intervals
to study this short-run stability directly. I t is possible to study it
indirectly, however. If we assume that the division of income be
tween expenditure and savings was the same at each income level for
each year during the period 1929-41, then it is possible to estimate
(in conjunction with independent estimates of the number of families
at each income level in each of the years) the aggregate volume of
consumer expenditure implied by this assumption. But direct meas
urement of the aggregate volume of consumer expenditure has been
undertaken by the Department of Commerce. Comparison of the
actual volume of consumer expenditure with estimates of the volume
derived on the assumption of a constant income-expenditure relation
ship consequently provides a check on the accuracy of this assumption.
Chart 3 shows the results of this check. I t compares the actual
volume of consumer expenditure by years during the period 1929-41
with the expenditures which could have been inferred from the
known levels of consumer income and the patterns of consumer
expenditure by income level in 1935-36. The maximum discrepancy
between actual and estimated is less than 5 percent. The closeness
of the agreement affords strong evidence for the stability of expend
iture habits during this period.
Whether prewar expenditure habits will persist into the postwar
period or whether we will wdtness a resumption of the secular decrease
in the rate of savings at each income level is a subject on which no
unconditional forecast can be made. It is possible, however, to estimate
the volume of consumer expenditure in 1950 if there is no change in
prewar expenditure habits and to estimate its effects on the level of
employment. It is also possible to estimate the amount by which
expenditure must exceed this level if we are to have full employment.
(V III) The initial estimate of 1950 consumer expenditure is based
on the assumption that the prewar relation between income and ex
penditure will prevail in the postivar period.
As a measure of the prewar expenditure pattern the results of a
study of family expenditures in 1941 have been used.8 The data
have been retabulated, however, to show expenditures for the products
of the different industries, rather than expenditures within the usual
8 U. S. Bureau of Labor Statistics, Bull. No. 822 : Family Spending and Saving in War
time ; U. S. Department of Agriculture, Misc. Pub. No. 520 : Rural Family Spending and
Saving in Wartime, and Misc. Pub. No. 550 : Family Food Consumption in the United
States, Spring 1942.
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CONSUMER EXPENDITURE
ACTUAL AND EST IM A T ED
MONTHLY LABOR REVIEW— FEBRUARY 194 7
BUREAU OF LABOR STATISTICS
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Federal Reserve Bank of St. Louis
URBAN FAMILIES. 1901-1941
INCOME IN CONSTANT 1935-39 D O L L A R S
FULL EMPLOYMENT PATTERNS, 195 0
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Federal Reserve Bank of St. Louis
PERCENT OF INCOME SAVED IN RELATION TO INCOME
00
182
MONTHLY LABOR REVIEW— FEBRUARY 194 7
budgetary categories. They have also been adjusted for the 1950 level
of taxes and the estimated prices. Levels of consumer expenditures
for the products of each industry derived on this basis are summarized
in table 7. They indicate that even after correcting for change in the
price level, consumer demand would, with no alteration in basic
T able 7.— Consumer demand, by industry, 1939 and estimated for 1950 1
[In millions]
1950, estim ated in—
In d u stry
T otal consumer dem and..................... ........................ ..............
1939
1950 prices
1939 prices
$117,176
$89, 834
$60, 279
Agriculture and fishing_____________ ______ ____ _______
Food processing__ _______ ___ ______ __________________
Ferrous m e ta ls..______________ _______ _______________
S hipbuilding____ ______ _____________ ________________
A gricultural m achinery___________ ___________ ____ ____
Engines and tu rb in es__________ ____ __________________
M otor vehicles______ _____ ___________________________
T ransportation equipm ent, no t elsewhere classified______
5, 858
18,804
3
44
27
24
3, 264
78
3,799
14, 888
2
28
21
18
2,536
65
3,103
10, 491
1
11
• 12
10
1, 237
31
Industrial and heating equipm ent, n o t elsewhere classified
M erchandising and service m a c h in es............. .......................
Electrical equ ip m en t_____________ _____ _______________
Iron and steel, not elsewhere classified__________________
N onferrous m etals and their products_______ ___________
N onm etallic m inerals and their products_________ _____ _
Petroleum production and refining......... ...................... ..........
Coal m ining and m anufactured solid fuel....................... ........
307
153
1,058
117
59
281
3, 480
978
248
113
829
89
49
214
3,000
782
192
81
547
50
35
126
1,918
599
M anufactured gas and electric power_________ _______ ___
Com m unications____ ____ ____________________________
Chem icals___________________ _____ __________________
F u rn itu re and other m anufactures of wood______________
Wood pulp and p a p e r..____ ___________________________
P rinting and publishing.____ _____ ___________ _____ ___
Textile-mill products ______________ ___________________
A pparel and finished textiles___________________________
1, 742
905
1,633
1,164
228
1,193
1,268
7,089
1,742
814
1,466
831
182
907
957
4,896
1,043
547
985
586
128
609
810
3, 384
L eather and leather products__________________________
R u b b er________________ ____ _____ ___________________
All other m anufacturing_______________________________
M iscellaneous tran sp o rtatio n_____ ________ _____________
Steam railroads_______ _____ _____ ____________________
T rad e __________________ _____ ______________________
Business and personal services__________ _______________
E ating and drinking places___________ _________________
1,612
350
1,542
1,882
1,613
24, 039
27,103
9,279
1,143
312
1,203
1,543
1,405
17, 294
21,476
6,982
854
223
697
1,130
689
11,291
14, 707
4,152
1 Expenditures are m easured a t producers’ prices plus transportation costs.
th u s excluded, are entered as a purchase from trade.
T rade margins, which are
habits, exceed the 1939 level by 50 percent. The magnitude of the
increase varies, of course, from industry to industry. The demand
for agricultural products increases by only one-fourth, for services
by about one-half, but the demand for automotive products more
than doubles.
Investment Demand
Before we can estimate the volume and distribution of employment
occasioned by this level of consumer demand it is necessary to consider
one other type of demand, that for investment goods. In the present
analysis this is considered to be composed of four components, pro-
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183
FULL EMPLOYMENT PATTERNS, 1950
ducers’ durable equipment, construction, inventories, and all goods for
export. The characteristic that distinguishes this type of demand
from that for consumer goods is that the demand initially is not for the
goods themselves but for the services that they will render over their
entire period of life. A slight drop in the demand for services cur
rently rendered by capital goods is thus likely to result in a pronounced
drop in the demand for their current production. The well-known
contrast between the great instability in output and employment in the
capital goods industries and the relative stability in industries produc
ing consumer goods and services is a direct consequence of this fact.
Because the demand for capital goods is unstable, no simple set of
relations, such as those used for estimating consumer expenditure, will
provide a sound basis for estimating demand in 1950. The present
estimates are based upon a variety of sources and considerations.
PRODUCERS’ DURABLE EQUIPMENT
(IX ) The 'present estimate of nongovernment purchases of pro
ducers'’ durable equipment in 1950 is essentially that made in 1941, by
both public and private agencies. It excludes, however, public outlays
for military products such as aircraft, combat motor vehicles, and ships
made in that year, but includes both public and private outlays for the
facilities necessary to produce these end products. Table 8 shows the
estimated distribution of such outlays by industry of final fabrication.
T able 8.—Private demand for producers’ durable equipment, 1939 and estimated for
19501
[In millions]
1950, estim ated in—
1939
In d u stry
1950 prices
1939 prices
T o ta l........ ................. - ........................................— .............. ........
$12,160
$9,458
$4, 613
Shipbuilding..... .............. ....................... .............................- ........
A gricultural m ach in ery ...............................................................
Engines and tu rb in es........ ............ .......................... ...................
M otor vehicles......................... ................ ............ — ............ —
A ircraft----------- ------------ ------------------------------------ --------T ransportation equipm ent, n o t elsewhere classified---------Industrial and heating equipm ent, no t elsewhere classified
154
800
80
1,789
294
390
2,193
97
623
61
1,390
362
325
1,774
140
307
30
685
38
160
874
M achine tools---------------- ------ ------------------------------------M erchandising and service machines--------- --------- ---------Electrical equipm ent, no t elsewhere classified........ ............
Iron and steel, no t elsewhere classified-------------- -----------Nonferrous m etals and th eir products........... ......................... .
N onm etallic minerals and their products......... ............ ..........
C hem icals.......................................................................................
647
438
1,142
431
5
93
20
491
325
895
329
4
71
18
242
160
441
162
2
35
9
L um ber and tim ber p ro d u c ts.------- ---------------- --------- —
F u rn itu re and other m anufactures of wood------------------Textile-mill pro d u cts............ ....................... .............. .............. .
L eather and leather p roducts------- -------------------------------R u b b e r.___________________________ _________- ...........—
All other m anufacturing------------- --------- ---------------------T rad e.................................................................. - ...........................
11
594
73
74
116
424
2,394
8
424
55
53
104
331
1,721
4
209
27
26
51
163
848
1 Expenditures are m easured at producers’ prices plus transportation costs. T rade margins on producers’
durable equipm ent, which are th u s excluded, are entered as a purchase from trade.
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184
MONTHLY LABOR REVIEW— FEBRUARY 194 7
With the exception of aircraft and ships, the pattern is much the same
as that prevailing in 1939, but the total level is much higher. The
estimate for aircraft reflects the expectations of the aviation industry9
while that for shipbuilding is based on preliminary work done for the
Twentieth Century Fund’s study on postwar requirements for
transportation.
CO NSTRUCTION
The present estimates are based upon a study of the volume of post
war construction prepared in the Division of Construction and Public
Employment of the Bureau of Labor Statistics. They are best
described as “essentially an informed estimate based on information
from a wide variety of sources and on an analysis of controlling social
and economic conditions.” 10 The estimates obtained on this basis are
shown in table 9. (X) They provide for a 90-percent increase over
1939 and an almost threefold increase over the level prevailing in the
final war year. Such a level can be attained by 1950 only if the rate of
expansion of construction activity in the coming years exceeds that of
the period 1921-25.
T able 9.— Private demand for construction, 1939 and estimated for 1950 1
[In millions]
1950, estim ated in—
T ype of construction
1939
Total, all ty p es_____________________ ________
New construction_______________ . . . .
Residential nonfarm ________________ . _____
Commercial_____________________ . .
In d u strial___ ___________ . . . .
Other building___________ ______ ______
F arm _________________ . . .
U tility ___ _________ ______ . .
M aintenance_________
.
.
1950 prices
1939 prices
$14,329
$10, 584
$5,642
10,138
4,370
1,499
861
536
588
2,284
7,488
3, 228
1,107
636
396
434
1,687
3,794
1,860
300
234
228
425
747
4,191
3,096
1,848
1 These estim ates are based upon those given in Bureau of Labor Statistics B ull. No. 825 b u t will not
agree exactly because of differences in concept and definition.
EX PO R TS
The demand of foreign countries for domestically produced goods
is determined to a considerable extent by the volume of goods the
United States is willing to import. The volume of imports will in
turn be determined largely by the level at which the economy is oper
ating. In the past, fluctuations in the physical volume of imports have
closely paralleled fluctuations in the physical volume of industrial
production (chart 5). This similarity in fluctuation seems to have
9 L e t’s B e P r a c tic a l A b o u t P o s tw a r P la n e M a rk e ts , in A v ia tio n , D ecem b er 1945 (p. 1 1 5 ).
10 U. S. B u re a u o f L a b o r S ta tis tic s , B u ll. No. 825 : P ro b a b le V olum e of P o s tw a r C on
s tru c tio n .
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185
FULL EMPLOYMENT PATTERNS, 1950
persisted even during a period in which there were sharp changes in
tariff legislation and import prices, and in which reciprocal trade
agreements were being developed and extended.
Table 10 shows the level and composition of imports to be expected
under full employment conditions in 1950. (X I) It is derived by as
suming a continuation of the prewar relationship between imports and
domestic output for most commodities. The volume of commodity
imports derived on this basis is 6.1 billion dollars. (X II) An export
balance of £ billion dollars, more than twice that prevailing in the
twenties, has been assumed for 1950. After adjusting for the effects
T able
10.— Imports and exports of merchandise, 1939 and estimated for 1950
fin millions]
Exports ä
Im ports 1
In d u stry
1959, estim ated
in—
1950, estim ated
in—
1939
1939
1950
prices
1939
prices
1950
prices
1939
prices
-----------------------------
$6,112
$4,785
$2,827
$8,473
$6, 595
$3,205
Agriculture and fishing---------------------------------Food processing ____.
------------------- -----_ - --------- - ---------Ferrous m e ta ls - ____. .
869
1,780
52
564
1,410
41
337
824
22
Shipbuilding
.
________________
A gricultural m a c h in e ry ---- ----- -------------Engines and turbines- ------- -_ ------- ----M otor vehicles-.. - ____________________
5
2
6
4
2
5
2
1
2
1,317
644
406
19
13
172
30
599
854
510
317
14
8
134
23
465
415
248
154
7
4
65
n
226
145
179
87
22
387
301
97
278
178
19
313
228
72
218
136
9
152
111
35
106
66
Total, all industries----
Aire,raff.
_ _ _ _ ________ ____
T ransportation equipm ent, no t elsewhere classifled.
------- --------------- - -------- -------Industrial and heating equipm ent ------- - - - M achine tools ________ - - - ---------- - ---------
3
18
3
2
15
2
1
8
1
Electrical equipm ent ______________________
Iron and steel, no t elsewhere classified-------------
12
19
10
14
5
8
Nonferrous m etals and th eir products
--------N onm etallic minerals and their products -.
Petroleum production and refining
---------Coal m ining an d m anufactured solid fuel -----
712
108
83
9
52
304
57
14
331
63
40
5
27
161
35
8
389
162
998
175
321
123
860
140
156
60
418
68
Chem icals-------------- ----------------------------------Lum ber and tim ber p ro d u cts--------- -------------F u rn itu re and other m anufactures of wood-------
863
141
96
11
46
338
79
20
459
125
46
412
91
33
200
44
16
Wood pulp and paper ---------------------------------P rinting and publishing------ -------------------- -Textile-mill products ------------- -----------------A pparel a nd other finished textile p ro d u cts-----L eather and leath er p ro d u c ts.. ------- --------R u b b er____
- --------- - - ----------------All other m anufacturing----- . -- -----------
Í30
23
518
153
50
199
161
367
18
391
106
36
176
126
206
10
306
54
21
196
61
99
68
264
83
70
78
148
701
78
51
200
58
49
70
115
504
38
25
97
28
24
34
56
245
185
157
92
1 In m ost cases im ported commodities are allocated to th e domestic in d ustry producing similar com
m odities rather th a n to th e in d u stry using them . T hus, new sprint is allocated to wood pulp and paper
ra th e r th a n to printing and publishing. In a few specific cases this procedure has not been followed and
im ports have been allocated to th e using in dustry. Silk, rubber, and coffee are the only im portant examples.
T rade w ith Alaska, Hawaii, Puerto Rico, and other noncontiguous territories has been treated as foreign
commerce for this purpose. Im ports of m onetary gold and silver are excluded.
2 All entries are expressed a t producers’ prices plus transportation costs. T he entry for trade covers trade
m argins on goods handled by export firms. _ T rade w ith Alaska, Hawaii, Puerto Rico, and other non
contiguous territories has been treated as foreign commerce for this purpose.
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oo
05
CHART 5
PHYSICAL VOLUME OF IMPORTS AND OF INDUSTRIAL PRODUCTION
1923 - 25=100
IN D E X
IN D E X
MONTHLY LABOR REVIEW— FEBRUARY 194 7
UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LA80R STATISTICS
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FULL EMPLOYMENT PATTERNS, 195 0
187
of certain service transactions, such as shipping and insurance, an
estimate of 8.5 billion dollars for the 1950 volume of merchandise
exports is obtained. Even when expressed in 1939 prices this is
more than twice the 1939 export volume.
IN V EN TO RIES
(X III) A net inventory change of 2 billion dollars has been
assumed. In the years 1922-29 inventories increased by about 1 billion
dollars a year. Larger average annual increases would clearly be
required to sustain the higher annual volume of production in the
postwar years.
Interindustry Relations
If the preceding estimates of government demand, consumer de
mand, and investment demand are added together industry by in
dustry, we obtain the aggregate final demand for the products of each
industry in 1950. For some industries, e. g., apparel and eating and
drinking places, the 1950 demand of final purchasers will be substan
tially equal to the output of the industry. For other industries—
steel works and rolling mills, bituminous coal mines, and railroads—
demand of final purchasers will constitute only a fraction of total
output. Such industries produce goods and services primarily sold
to other industries and not to final purchasers. Some method is
required to estimate the output of raw materials, intermediate goods,
and services required to satisfy the demand for finished products.
Final demand for passenger cars, for example, implies a certain
level of steel output. Somewhat more than 2 tons of ingot steel must
be produced for one passenger car. Thus, 6 million passenger cars
would require more than 12 million tons of ingot steel. Similarly,
in 1939, 4 to 5 pounds of cotton were required for the average tire.
But it would require 30 million tires and hence 300 thousand bales of
cotton to satisfy the requirements for 6 million passenger cars
(exclusive of cotton requirements for upholstery, etc.).
If sufficient information were available on the material requirements
for each of the different final products, it should be possible to work
backward and so compute all the material requirements implied by
a given level of demand for finished goods. The basis for computa
tions of this character is provided by a study of interindustry relations
in 1939 prepared in the Bureau of Labor Statistics. It shows the
amount bought by each industry during that year from each of the
other industries. (XIV) To the extent that material requirements
per unit of output in 1950 will not be substantially different from those
prevailing in 1939 (with certain obvious adjustments in some special
cases), this study provides the basis for proceeding from demand by
final purchasers to the output of raw materials and intermediate goods.
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MONTHLY LABOR REVIEW— FEBRUARY 194 7
The Deficiency in Demand
If we can proceed from demand to output, we can, by use of the
productivity and working hours assumptions previously made, pro
ceed to estimate employment in each industry. The initial question
we must ask is whether the resulting level of employment is equal to
that with which we started.
There is no logical reason why the initially assumed and finally
derived employment totals should be equal. The estimates of final
demand are based on a series of assumptions with respect to the scope
of government activity, the pattern of consumer expenditure, and
the level of investment activity. These assumptions may or may not
be compatible with the existence of full employment. If they are
not, the finally derived level of employment should be less than or
greater than that initially assumed. For this reason, an employment
gap is something more than a summation of statistical errors. Essen
tially, it indicates the extent to which prewar consumption habits, the
estimated volume of capital formation, and the assumed level of gov
ernment operations are inconsistent with the achievement of full
employment.
The first column of table 11 summarizes the estimates of final de
mand in 1950 made up to this point. The second column shows the
comparable figures for 1939. The last two columns show the volume
of employment required to satisfy this level of final demand. Thus,
1939 consumer demand amounted to 60.3 billion dollars and required
the employment of 19.2 million persons. The most important result
in the table is that, within the stated assumptions, the volume of em
ployment required to satisfy the 1950 final demand (estimated pre
viously) is 34.4 million, as compared with 39.1 million required if full
employment is to be achieved (see p. 169). The assumed level of final
demand is not high enough to give us full employment. One or more
of the components of final demand must be increased if private nonagricultural enterprises are to furnish the required total of 39 million
jobs to wage and salary workers. Furthermore, sufficient additional
demand must be found to create almost as much employment as will
be generated both on and off site by the entire volume of construction
estimated for 1950.
The difference of 4.7 million does not at first sight appear excessive.
Even if we add to it the 2 million “frictionally” unemployed with
which we started, 6.7 million unemployed, while considerably higher
than most people would consider desirable, still might not appear
completely intolerable as measured against the experience of the
thirties. Actually, this gap is not a measure of the unemployment
which would result if all the assumptions were in fact realized. A
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FULL EM PLO Y M EN T PATTERNS, 1 9 5 0
T a b l e 11.— F in a l d e m a n d a n d e m p lo y m e n t, 1 9 3 9 a n d e s tim a te d f o r 1950
Final dem and (billions of
1939 dollars)
Em ployees (millions) in
private nonagricultural
establishm ents
T y p e of final dem and
1950, esti
m ated
1939, actual
1950, esti
m ated
1939, actual
T o tal dem and______________________________
128.4
81.2
34.4
26.4
C onsum ption
_ ____________________ ____
Producers’ durable equipm ent __ ___________
O onstrilotion 1 _ _____________ ____________
Exports 2
__ ______ ___________
________
Government, and miscellaneous 3__ __________
89.8
9.5
14.9
6.8
7.4
60.3
4.6
10.1
3.3
2.9
23.4
2.8
4.7
1.7
1.3
.5
19.2
1.7
3.7
1.0
.4
.4
i
G overnm ent and private, new and maintenance.
s Includes certain service item s in addition to m erchandise exports
a Includes governm ent nonconstruction purchases, consum ption expenditures of soldiers, and inventory
chRn?6
, 4 includes an adjustm ent for certain industries no t included in the interin dustry relations stu d y as well as
deductions for governm ent activities (such as the G overnm ent Prin tin g Office) classified with private enter
prises.
final demand of 128.4 billion dollars was derived on the assumption
that only 2 million workers would be unemployed. The present results
show that such a final demand actually implies 6.7 million unem
ployed. A recalculation of the entire analysis starting with this
unemployment would yield new results with lower total demand and
greater unemployment. Repeating the process, we would eventually
obtain initial and final figures which were in full agreement. There
is little point in carrying this process through. I t is enough to discover
that the institutional patterns incorporated in the analysis do not
provide economic equilibrium at the desired full employment levels.
This conclusion is, of course, based on a series of assumptions, some
of which, as we have seen, are surrounded by a considerable area of
doubt. There is no firm basis for forecasting the actual level of full
employment consumer demand. The volume of capital equipment
required to produce a full employment output cannot be accurately
determined. Other important determinants are also subject to a
greater or lesser error in estimation. Even with such statistical quali
fications, however, the results seem to provide a firm base for this
statement. The amount of investment activity which can reasonably
be anticipated for 1950 does not appear to be sufficient to absorb the
volume of savings to be anticipated under full employment conditions,
if the prewar schedule of consumer preferences remains unchanged.
This is by no means a trivial conclusion. Full employment in 1950
is not a foregone certainty. If full employment is to be achieved in
1950, the level of demand for either consumer goods or investment
goods, or both, must be higher. Planning by business, labor, and gov
ernment on the basis of prewar concepts of normalcy, may result in
serious unemployment.
728607—47------ 3
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
In the immediate reconversion period, none of the assumptions
which lead to this conclusion actually holds. Government expendi
ture is at considerably higher levels than has been assumed; consumers
are spending a higher percentage of their income than the prewar
pattern would indicate; demand for producers’ durable equipment, new
construction, exports, and inventories is reinforced by the shortages
accumulated during the war years; productivity is at lower levels than
have been assumed for 1950.
The assumptions are likely to become increasingly realistic with the
passage of time, however. Productivity will increase; the backlog
demand of both business and consumers will eventually be satisfied;
government expenditures will continue to decline. Unless some
change not embodied in the given assumptions is introduced into the
picture, the purely hypothetical results obtained may therefore ap
proach reality. Whether an acute problem is likely to arise in 1947,
1950, or 1955 cannot be decided on the basis of the present analysis.
It is a fair inference, nevertheless, that the present favorable levels
of employment and production should not lead to complacency with
respect to the future.
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U n io n H e a lth a n d W elfare P la n s
E
N o t e .— The following two articles discuss different aspects of
health and welfare plans for workers. The first article on collective
bargaining developments in this field brings up to date information
collected by the Bureau’s Industrial Relations Branch relative to
numbers of workers and industries covered and the unions involved.
It also notes several of the medical service plans entailing a health
center and the recently established United Mine Workers’ program.
The second article, written by Nathaniel M. Mink off, secretary-treas
urer of the New York Dressmakers’ Joint Board, International
Ladies’ Garment Workers’ Union (.AFL), treats principally of the
experience of that organization with its own program and emphasizes
some of the administrative problems which that union and all unions
must encounter and solve. Sample provisions from a few contracts
and a bibliography on the subject are appended to the first article.
Both articles will be jointly reprinted.
d i t o r ’s
C o l l e c t i v e -B a r g a in in g D e v e l o p m e n t s i n H e a l t h a n d
W e lfa r e P lans 1
o r k e r s covered by some type of health-benefit 2 plans negotiated
by employer and union more than doubled in number since 1945, as
revealed by recent estimates made by the Bureau of Labor Statistics.
In 1945, some 600,000 workers were so included; at present (early 1947)
approximately 1,250,000 are covered. Except for a few outstanding
instances, including coal mining, the plans were negotiated by the
same unions studied in the 1945 report, and are merely extensions of
their programs.3
The principal industries in which a large proportion of workers
(totaling approximately 1, 100 ,000 ) are covered by some type of
W
1 Prepared in th e B ureau’s In d u strial R elations B ranch b y L ucy M . K ram er, w ith the assistance of Rose
Theodore, u nder th e direction of Harold S. Roberts.
2 See H ealth-B enefit Program s Established Through Collective Bargaining, B ureau of L abor Statistics
B ulletin N o. 841 (reprinted from M onthly Labor Review, A ugust 1945).
3 M ost of the plans described in the 1945 B ureau of Labor Statistics report have been negotiated b y the
following unions: International Ladies’ G arm ent W orkers’ U nion (A FL ); Amalgam ated Clothing W orkers
of America (C IO ); U nited H atters, Cap, a n d M illinery W orkers’ International U nion (A FL ); Textile
W orkers’ U nion of America (C IO ); U nited Textile W orkers of America (A FL ); International F u r and
L eather W orkers’ U nion of America (C IO ); U nited Electrical, Radio, and M achine W orkers of America
(C IO ); U pholsterers’ International U nion of N o rth America (A FL ); U nited F u rn itu re W orkers of America
(C IO ); Industrial U nion of M arine and Shipbuilding W orkers of America (C IO ); H otel and R estaurant
Em ployees’ International Alliance and B artenders’ International League of America (A FL ); U nited
Paperw orkers (C IO ); U nited R etail, Wholesale, and D ep artm en t Store Em ployees of America (C IO );
A m algam ated Association of Street, Electric R ailw ay, and M otor Coach Em ployees of America (A FL ).
A dditional unions which have recently included health-benefit plans in their collective bargaining agree
m ents are: B uilding Service Em ployees’ International U nion (A FL ); Progressive M ine W orkers (Inde
pendent); U nited M ine W orkers (A FL); U nited Office and Professional W orkers (C IO ); B rotherhood of
P ainters, D ecorators, and Paperhangers (A FL ); and U nited Association of Plum bers and Steam fitters
A F L ).
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192
M O N T H L Y LABOR REVIEW---- FEBRUARY 1 9 4 7
health benefit plan are clothing (men’s and women’s), textiles, and
coal mining. Other industries in which a part of the workers are
covered (totaling over 100 ,000 ) are building trades; fur and leather;
furniture; hotel; laundry, cleaning, and dyeing; machinery (particu
larly electrical); office; paper; retail and wholesale trade; shipbuilding;
and street and electric railway.
Although extensive employee coverage is found at the present time
in only three industries, there are an increasing number and variety
of industries in which some proportion of the workers are covered.
Types of Health Benefit Plans
A D M IN ISTRA TIV E CONTROL
In the Bureau’s 1945 study of health benefit plans established
through collective bargaining agreements, it was found that there
were three types of benefit plans—(1) those administered by the
union solely, (2) plans administered jointly, and (3) programs ad
ministered by a private insurance company wherein the employer
pays the premium directly or into a special premium fund. Most of
the plans studied were financed entirely by the employer. This
was true of all union-administered plans, of almost all jointly ad
ministered programs, and of more than half the plans administered
by insurance companies.
Most of the agreements stipulate a specific percentage of the em
ployer’s pay roll (usually 2 or 3 percent) to be paid into the fund.
If the contribution is not specified, the employer either defrays all
expenses or supplements employee contributions as required. The
health-benefit plans included weekly cash benefits during illness and
disability caused by nonoccupational accidents, hospital and surgical
expenses, and sometimes payment of doctor bills. In most cases
dental care and preventive medicine were not usually included.
UNIO N HEA LTH C EN TER S
The first Union Health Center of the International Ladies’ Garment
Workers’ Union (AFL) was established in 1912 in New York City,
and still functions. In addition to furnishing medical care to garment
workers at the Center, it inspects sick-benefit plans and serves as a
health education center. It is concerned primarily with ambulatory
cases—in the nature of a clinic. It does not offer service to the
families, nor complete medical service to the members, and its financing
varies with the craft.4 In addition to cash benefit payments, and
clinical medical services, the program provides some preventive
4
H ealth Program of International Ladies’ G arm ent W orkers’ Union, b y L. Price, in M onthly Labor
Review, O ctober 1939; T h e Em ployee’s View point on G roup H ospitalization and M edical Care, by A.
H eld, A m erican M anagem ent Association (New Y ork, 1946, Insurance Pam phlet No. 65).
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U N IO N H E A L T H AND WELFARE PLA N S
193
medical care. The eye conservation plan, which provides that every
shop is to be visited and each worker examined, is unique.5 For 17
years the Center also provided dental care, but discontinued this
service for organizational reasons.
The New York Union Health Center, administered and financed
to some extent jointly by labor and management, was not the result
of collective bargaining originally. Similar health centers, however,
have been established recently, through such negotiations, in Phila
delphia, Fall River, Boston, and other smaller communities throughout
the country .6 Furthermore, when the joint labor-management health
programs were incorporated into collective agreements in the needle
trades in recent years, the health center became the central agency
for the administration of the health-benefit program. Until 1943
the New York Center was financed by local union contributions.
Since the incorporation of health-benefit f unds (financed by employer
contribution) into the agreements, however, a large part of the
Center’s financial support has come from these funds.
ST. LOUIS PLAN
A recent health-benefit plan negotiated by the St. Louis Joint
Council, United Retail, Wholesale, and Department Store Employees
(CIO), referred to as the St. Louis Plan, is of interest in that a health
institute was established, through employer contribution, which offers
complete medical services. Every medical bill of members and their
families, for service in the home, hospital, or clinic, is to be met by
the St. Louis Labor Health Institute. The organizational plans as
outlined in 1945 would open the institute not only to union members
and their nonvoting families, but also to outsiders as nonvoting ap
proved participants. This may result in a union health-benefit plan
that will include many unions jointly in the St. Louis area.
COAL M IN E R S’ W ELFARE FUNDS
In coal mining, both anthracite and bituminous, the coal miners
secured, as a result of negotiations in May and June 1946, provisions
in their current agreements whereby about 450,000 miners (375,000
bituminous, 75,000 anthracite) in 3,000 mines in 23 States are to
achieve a considerable measure of security through the operation of
three welfare funds.7
« Social Welfare T hrough Collective Bargaining, by Julius H ochm an (1945), in Collective Bargaining
Negotiations and Contracts (p. 13:101), B ureau of N ational Affairs, W ashington.
« A. Held, op. cit. (p. 25); J. Hochman, op. cit. (p. 13:106); Bureau of Labor Statistics B ulletin No. 841,
op. cit. (p. 15).
7 For a brief discussion of th e 1946 soft-coal negotiations and agreem ent, see T he Changm g S tatus of
B itum inous Coal M iners, by W itt Bowden, M onthly Labor Review, A ugust 1946 (reprinted as B ulletin
N o. 882). See also N ew York Times, June 27, 1946. T he provisions of the health and welfare program
of the contract are given in detail on pp. 197-199 of this issue.
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
In tlie soft-coal industry (Government operated), one fund, desig
nated as a “welfare and retirement fund,” is to be raised by levying
a tax of 5 cents on each ton of soft coal produced. It is to be admin
istered by three trustees—one appointed by the U. S. Coal Mines
Administrator, one by the union, and one jointly. A second fund,
designated as a “medical and hospital fund,” is to be accumulated
from wage deductions presently being checked off from miners’ wages,
or authorized in the future by the union. This fund is to be turned
over to the union, and is to be administered by trustees appointed
by the president of the United Mine Workers of America (AFL).
The agreement calls for cooperation between the trustees of the two
funds.
For the anthracite industry, a fund is to be raised similarly by a
tax of 5 cents on each ton. This is a welfare and retirement fund,
and is to be administered by three trustees—two to be appointed by
the president of the United Mine Workers and one by the operators.
The technique of levying a tax on coal produced for the establish
ment and maintenance of a welfare fund is one that has been in exist
ence in countries other than the United States for a number of years:
Great Britain has had such a practice since 1920, New Zealand since
1925, the Netherlands since 1936, and British India and Spain more
recently.8
Current Interest in Welfare Negotiations
Some voluntary prepaid medical-care plans,9 entirely employersponsored or sponsored entirely by unions (as consumers), were in
existence for many years prior to World War II—in at least one
outstanding case such a plan was included in an agreement as a result
of an arbitration award as far back as 1926.10 It was during the
recent war period, however, that the inclusion of health-benefit plans
in union agreements gained headway.
Whether it was the national wage stabilization policy primarily
which encouraged health and welfare benefits in lieu of wage increases
* Welfare Provisions for M iners in Six Foreign Countries, M onthly Labor Review, June 1946.
« V oluntary prepaid medical-care plans m ay be classified, according to M argaret C. Klein, Chief of the
M edical Economics Section of th e Social Security A dm inistration, into six types: industrial, medicalsociety, or consumer-sponsored plans, private group clinics, G overnm ent plans, and Farm Security
A dm inistration plans.
Indu strial plans, those established in connection w ith industry, and consumer-sponsored plans estab
lished b y labor organizations, are the two types pertin en t to the current analysis.
Industrial plans include those initiated by the employer alone, as well as plans p u t into effect b y col
lective bargaining. Of the 115 industrial medical-care plans studied in 1945 by M argaret C. K lein, in 19
the costs wore borne entirely by the employer, in 49 entirely b y employee pay-roll deduction, and in 47
b y the two jointly. (P repaym ent M edical Care Organizations, Social Security Board, W ashington, 1945,
B ureau M emo. No. 55, p. 4.)
10
In 1926, the A m algam ated Association of Street and Electric R ailw ay employees secured from the
Chicago R apid T ran sit Co. a clause requiring the latter to bear the entire sickness and life insurance for
its employees. (Beneficial A ctivities of American Trade-U nions, Bureau of L abor Statistics B ulletin
N o. 465, 1928, p. 31.)
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during this period, or the necessity to maintain and increase war
time production by reducing the loss of man-hours caused by illness,
or the heightened social awareness of the need for security for the wage
earner, the fact remains that at the present time an increasing number
of unions have such health and welfare clauses in their contracts, or
have indicated their desire to negotiate for such provisions.
The potential role of health and welfare plans in collective bargain
ing was apparent in the last convention of the American Federation
of Labor, held in Chicago in October 1946, when President Green,
in his keynote speech, stated:
I say to you * * * that that objective [the creation of welfare funds] will
now be the objective of organizations affiliated with the American Federation
of Labor; we must establish in this Nation security in every condition of life
old age, illness, and infirmity—and in addition w’e must provide hospitalization
and nursing facilities and medical care for every man and woman in the United
States.11
The Congress of Industrial Organizations, at its recent convention
held in Atlantic City in November 1946, adopted a broad resolution
on various aspects of security through collective bargaining, which
concluded:
The CIO intends immediately to develop a broad program so that workers
may be given a rounded protection in their living standards through collective
bargaining contracts providing for adequate pension plans, health insurance
plans, group hospitalization plans, and the guaranteed minimum annual wage.12
Current demands for inclusion of employee welfare clauses in union
agreements are recognized by management. Research services used
largely by employers 13 each have devoted considerable space in their
current loose-leaf publications on labor relations to employee welfare
and health-benefit plans in collective bargaining—the techniques of
bargaining, the types of plans, the coverage, etc .14
The March 1946 conference of the American Management Associa
tion devoted time to trends in employee benefits, and heard a detailed
report by Adolph Held, International Ladies’ Garment Workers’
Union official, on the Employee’s Viewpoint on Group Hospitalization
and Medical Care,15 based on his experience as director of the Inter11 R eport of Proceedings of the Sixty-fifth C onvention of the A merican Federation of Labor, for
October 7-17,1946 (p. 12).
12 See Resolution N o. 34, in D aily Proceedings of the E ig h th C onstitutional Convention of the C on
gress of In d u strial O rganizations, for N ovem ber 20,1946 (p. 6).
is See services of Research In s titu te of America (New York); B ureau of N ational Affairs (W ashington);
Prentice-H all (New York).
u T h e R IA L abor Coordinator (Vol. 2, p. 38,005) in its Em ployee Welfare section, rem inds m anagem ent
th a t “employee welfare plans are no longer fringe issues. You m u st be prepared w hen union dem ands
are m ade. W h at factors do you have to consider in evaluating a plan? Do you know the union argum ents
in favor of these plans, and, w h a t’s more, do you know th e answers? C an you include your nonunion
employees in a plan th e union w ants, and how is this done?”
See also footnote 5.
it Trends in W orkm en’s Compensation and Em ployee Benefits, A merican M anagem ent Association,
N ew Y ork, 1946 (Insurance Series N o. 65).
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M O N T H L Y LABOR REVIEW----FEBRUARY 1 9 4 7
national Ladies’ Garment Workers’ Union Welfare and Health
Benefits Department.
At the recent meeting of the American Medical Association on
industrial health, held in Boston, a panel discussion was devoted to
New Horizons in Industrial Health and Welfare, in which healthbenefit plans played a large part, particularly those achieved through
collective bargaining.16 The American Medical Association, in its
November 30, 1946, issue of the Journal, devoted to industrial health,
editorializes as follows:
In spite of impending legislation, health and welfare are likely to be important
factors in future collective bargaining. Labor may ask for greater direct partic
ipation not only in industrial medical service but in plans for general medical
care. Both the Council on Industrial Health and the Council on Medical Service
[of the Association] have been actively concerned with the medical implications
in the coal-mine wage agreement and the probable extension of similar contracts
to other occupational groups. Herein lie many opportunities for constructive
medical leadership.17
Outlook for Health Benefit Plans
There is no doubt, from past practice and current statements of
unions, from recent management concern with welfare funds and their
bargaining importance, from recent interest of the medical profession
in the role of labor and management in industrial health, from the
general interest of a considerable portion of the public in the Nation’s
health ,18 that welfare funds and health benefits will play an increas
ingly important role in future contract negotiations.
The increasing importance of welfare funds is generally accepted.
However, the trend in financing such funds is not so clearly defined
as to the relation of the employer-to-employee-contribution. The
establishment and extension of welfare funds through employer con
tributions were given impetus during the war years. In many
instances, these payments were made in lieu of wage increases,19 and
employers generally assumed full financial responsibility.
Postwar conditions may put a new emphasis, not so much on welfare
funds, but on their financing. With the elimination of the wage
stabilization policy, with an increased labor force, and with the
modification in tax exemption, the question which may receive greater
18 See Journal of American M edical Association, N ovem ber 30, 1916, for complete texts of the papers read
by R ear A dm iral Joel T . Boone on In d u strial H ealth; A ndrew Fletcher, of the Industrial Hygiene F o u n d a
tion, on M anagem ent in M edical Plans; Boris Stern, of th e U. S. B ureau of Labor Statistics, on L abor and
M anagem ent a t th e Conference Table.
11 Idem, p. 788.
18 W itness the wide interest in the M urray-W agner-D ingell national health bill in the last Congress, and
the activities of individuals and organizations interested in a Government-sponsored health-insurance
program.
19 See T he A dm inistration, U nder Collective Bargaining, of Welfare Plans Based on E m ployer C ontri
butions, b y D avid J. Farber, U . S. N ational Wage Stabilization Board, W ashington, 1946.
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197
attention in future negotiations may be the relative proportions in
employer-employee contributions to welfare funds.
Sample Welfare Clauses in Specific Agreements
PH IL A D ELPH IA B ED D IN G M ANUFACTURERS’ ASSOCIATION AND U PH O LSTER ERS’
IN T ER N A T IO N A L UNIO N OF N O RTH AM ERICA (AFL)
The employer hereby agrees to pay to the Upholsters’ International Union
Social Security Department, each and every month, in advance, between the
first and fifth day of every month, beginning w ith -------------- 19__; a sum equal
ing 3 percent of the gross wages earned by his employee-members of this union.
The said sum of 3 percent shall be calculated on the basis of the total aggregate
wages earned by said erfrployee-members during the pay periods of 4 or 5 weeks,
terminating during the preceding calendar month.
The above described sum of 3 percent shall be paid by the employer as a con
tribution to the Social Security Fund of the Upholsterers’ International Union
of North America above described. In consideration for the payment of said
contribution, the union agrees to extend, beginning the same date the employer’s
first contribution is due as set forth in the preceding paragraph, the benefits of
said fund to said employee-members, in accordance with the rules and bylaws
under which said fund is administered, and in accordance with the general laws
of the International.
The union has contracted or will contract for the issuance of a blanket-coverage
insurance policy or policies to provide for the payment of the various benefits as
therein provided; a policy now being in force with t h e -------------------- Co. I t is
agreed th at the premiums for the maintenance of a group policy or policies on
behalf of the employee-members shall be paid out of the periodic contributions
paid by the employer as above described. The rights and duties of all parties,
including the union, the employer, and the employee-members, shall be governed
by the provisions of said blanket coverage policy.
The union agrees th at the program of social security benefits hereinabove
described shall be maintained in full force and effect for the entire period of time
during which this supplemental agreement is in effect and the terms hereof fully
complied with in all respects by the employer.
The 3 percent contribution of the employer to the social security plan is not
to be increased during the life of this agreement; if the cost to the union is de
creased, then the contribution by the employer is to be reduced by an equivalent
amount. Two-thirds of the entire contribution is to go toward the payment of
accident and health insurance covered by the provisions of said policy, and the
remaining one-third of the entire contribution goes toward the payment of death
benefits as provided by the Social Security Department of the union and for the
administrative expenses of said department.
U. S. COAL M IN ES A D M IN ISTRA TOR AND U N IT E D M IN E W ORKERS OF AM ERICA (AFL)
[Bituminous-coal mines]
Health and welfare program
There is hereby provided a health and welfare program in broad outline—and
it is recognized th at many important details remain to be filled in—such program
to consist of three parts, as follows:
(a)
A welfare and retirement fu n d .—A welfare and retirement fund is hereby
created, and there shall be paid into said fufid by the operating managers 5 cents
per ton on each ton of coal produced for use or for sale. This fund shall be
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managed by three trustees, one appointed by the Coal Mines Administrator, one
appointed by the president of the United Mine Workers, and the third chosen by
the other two. The fund shall be used for making payments to miners, and their
dependents and survivors, with respect to (1) wage loss not otherwise compensated
at all or adequately under the provisions of Federal or State law and resulting
from sickness (temporary disability), permanent disability, death, or retirement,
and (2) other related welfare purposes, as determined by the trustees. Subject to
the stated purposes of the fund, the trustees shall have full authority with respect
to questions of coverage and eligibility, priorities among classes of benefits,
amounts of benefits, methods of providing or arranging for provision of benefits,
and all related matters.
The Coal Mines Administrator will instruct the operating managers that the
obligation to make payments to the welfare and retirement fund becomes effective
with reference to coal produced on and after June 1, 1946; the first actual payment
is to be made on A.ugust 15, 1946, covering the period from June 1 to July 15;
the second payment to be made on September 15, covering the period from July
15 to August 31; and thereafter payments are to be made on the 15th day of each
month covering the preceding month.
(b) A medical and hospital fund.—There shall be created a medical and hospital
fund, to be administered by trustees appointed by the president of the United
Mine Workers. This fund shall be accumulated from the wage deductions
presently being made and such as may hereafter be authorized by the union and
its members for medical, hospital, and related purposes. The trustees shall
administer this fund to provide, or to arrange, for the availability of medical,
hospital, and related services for the miners and their dependents. The money
in this fund shall be used for the indicated purposes at the discretion of the trustees
of the fund; and the trustees shall provide for such regional or local variations and
adjustments in wage deductions, benefits and other practices, and transfers of
funds to local unions, as may be necessary and as are in accordance with agree
ments made within the framework of the union’s organization.
The Coal Mines Administrator agrees (after the trustees make arrangements
satisfactory to the Coal Mines Administrator) to direct each operating manager
to turn over to this fund, or to such local unions as the trustees of the fund may
direct, all such wage deductions, beginning with a stated date to be agreed upon
by the Administrator and the president of the United Mine Workers: Provided,
however, that the United Mine Workers shall first obtain the consent of the
affected employees to such turn-over. The Coal Mines Administrator will cooper
ate fully with the United Mine Workers to the end that there may be terminated
as rapidly as may be practicable any existing agreements that earmark the ex
penditure of such wage deductions, except as the continuation of such agreements
may be approved by the trustees of the fund.
Present practices with respect to wage deductions and their use for provision
of medical, hospital, and related services shall continue until such date or dates
as may be agreed upon by the Coal Mines Administrator and the president of the
United Mine Workers.
(c) Coordination of the welfare and retirement fund and the medical and hospital
fund.—The Coal Mines Administrator and the United Mine Workers agree to
use their good offices to assure that trustees of the two funds described above will
cooperate in and coordinate the development of policies and working agreements
necessary for the effective operation of each fund toward achieving the result that
each fund will, to the maximum degree practicable, operate to complement the
other.
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Survey of medical and sanitary facilities
The Coal Mines Administrator undertakes to have made a comprehensive
survey and study of the hospital and medical facilities, medical treatment, sani
tary, and housing conditions in the coal-mining areas. The purpose of this survey
will be to determine the character and scope of improvements which should be
made to provide the mine workers of the Nation with medical, housing, and sani
tary facilities conforming to recognized American standards.
STANDARD CO NTRACT: M E N ’S AND BOYS’ CLO TH ING M ANUFACTURERS AND
AMALGAMATED C LOTHING W ORKERS OF AM ERICA (CIO)
Commencing on the pay day for the week of December 10, 1945, and weekly
thereafter, the employer shall pay to the trustees (hereinafter called the trustees)
designated under a new agreement and declaration of trust dated as of December
10, 1945 (a copy of which said new agreement and declaration of trust dated as of
December 10, 1945, has been exhibited to the employer and approved by the em
ployer) the terms and provisions of which new agreement and declaration of trust
are herein specifically incorporated by reference, sums of money determined as
follows:
(a) Two percent of the wages payable for the preceding pay period to all the
employees of the employer, plus
(b) Three percent of the wrages payable for the preceding pay period to those
employees of the employer who are members of the union.
All of the foregoing sums shall be administered and expended by the trustees pur
suant to the provisions of the said new agreement and declaration of trust (dated
as of December 10, 1945) for the purpose of providing benefits upon their retire
ment because of old-age, and life, accident and health insurance, and such other
forms of group insurance for medical care and hospitalization as the trustees may
reasonably determine, to members of the union employed by the employer, and
members of the union employed by other employers who are members of the group
embraced within the general plan in the men’s and boys’ clothing industry.
The employer shall furnish to the trustees, upon request, such information and
reports as they may require in the performance of their duties under any of the
agreements and declarations of trust. The trustees, or any authorized agent or
representative of the trustees, shall have the right at all reasonable times during
business hours to enter upon the premises of the employer and to examine and
copy such of the books, records, papers, and reports of the employer as may be
necessary to permit the trustees to determine whether the employer is fully com
plying with the provisions of paragraph 3 [above].
No employee shall have the option to receive instead of the benefits provided for
by any of the agreements and declarations of trust any part of the contribution of
the employer. No employee shall have the right to assign any benefits to which
he may be or become entitled under any of the agreements and declarations of
trust or to receive a cash consideration in lieu of such benefits either upon termi
nation of the trust therein created, or through severance of employment or other
wise.
In the event that the union receives written notice from one or more of the
trustees, designated by the trustees for that purpose, that the employer has
failed to pay in full any sum due the trustees under paragraph 3 and that such
failure has continued for 5 days, the union may direct its members to discontinue
work in the plant of the employer and to discontinue work upon clothing being
manufactured for the employer by contractors until all sums due from the employer
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under paragraph 3 above have been paid in full. The remedy provided for in
this subparagraph shall be in addition to all other remedies available to the union
and the trustees and may be exercised by the union, anything in the collective
bargaining agreement to the contrary notwithstanding.
The trustees, in their own names as trustees, may institute or intervene in any
proceeding at law, in equity, or in bankruptcy for the purpose of effectuating the
collection of any sums due to them from the employer under the provisions of
paragraph 3.
In the event that legislation is enacted by the Federal Government levying a
tax or other exaction upon the employer for the purpose of establishing a federally
administered system of life, health, accident, medical care, or hospitalization
insurance under which the employees of the employer are insured, the employer
shall be credited against the sums payable under paragraph 3 for each pay period,
with the amount of such tax or exaction, payable by him for such pay period,
provided th at the amount of such credit shall in no event exceed 2 percent of the
wages payable to the employees of the employer for such pay period.
ATLA NTIC COTTON FE L T CO., NEW ARK, N. J „ AND U N IT E D FU R N IT U R E W ORKERS
OF AM ERICA (CIO)
The employer hereby agrees, as long as this agreement remains in force, to
contribute monthly on or before t h e _________ day of each month, commencing
with the effective date of this agreement t o _____________ as trustees of United
Furniture Workers Insurance Fund, a sum equal to 3 percent of the previous
month’s production pay roll, to be used by said trustees for the sole benefits of
the employees covered by this agreement for the purchase of group life insurance,
group accidental death and dismemberment insurance, group accident and
health insurance, hospitalization insurance, and group surgical insurance, in
accordance with the schedule of such respective forms of insurance attached
hereto entitled "Schedule of Amounts of Insurance.” It is further understood
and agreed that these contributions to the above-mentioned trustees will be held
and managed by them under the terms of a trust agreement drawn between the
union and said trustees. (It is further understood and agreed that the employer
shall be under no obligation to see to the application of moneys paid to the trustees
pursuant to this paragraph for the purposes and uses above mentioned; but the
union, nevertheless, agrees to render reports at regular intervals to the employer
respecting application of the moneys received and benefits paid.)
The employer agrees to make available to the union or the trustees abovenamed any and all records of employees hired, classifications of employees, names,
social security numbers and amount of wages paid, and social security pay roll
records, that the union or the trustees may require in connection with the sound
and efficient operation of the trust fund above mentioned, or that may be required
by the insurance companies covering the employee.
Selected L ist of References
A m e r ic a n F e d e r a t io n o f L a b o r .
Health-Benefit Plans by Collective Bargaining. Collective Bargaining Series
No. 1. (901 Massachusetts Ave. NW., Washington 1, D. C.) May 1946.
A m e r ic a n M a n a g e m e n t A s s o c ia t io n .
Trends in Workmen’s Compensation and Employee Benefits.
Series No. 65. (330 West 42d St., New York, N. Y.) 1946.
Insurance
A m e r ic a n M e d ic a l A s s o c ia t io n .
Journal of the American Medical Association, November 30, 1946.
N. Dearborn St., Chicago 10, 111.)
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(535
U N IO N
F e d e r a t io n
of
H E A L T H
201
A N D W ELFARE PL A N S
D y e r s , F in is h e r s , P r in t e r s
and
B leachers
of
A m e r ic a
(TWUA-CIO).
t Health Insurance in the Textile Dyeing, Finishing, and Printing Industry.
(18 Church St., Paterson 1, N. J.) May 1945.
I n t e r - U n io n I n s t it u t e f o r L a b o r a n d D e m o c r a c y .
Royalties, Taxes and Assessments. Labor and Nation, August 1945, Part
Two. (112 East 19 St., New York 3, N. Y.)
N a t io n a l W a g e S t a b il iz a t io n B o a r d .
The Administration, Under Collective Bargaining, of Welfare Plans Based
on Employer Contributions. By D. J. Farber. September 1946.
P r in c e t o n U n iv e r s it y , I n d u s t r ia l R e l a t io n s S e c t io n .
Group Health Insurance and Sickness Benefit Plans in Collective Bargaining.
By Helen Baker and Dorothy Dahl. 1945.
Sickness Benefits and Group Purchase of Medical Care for Industrial Em
ployees. By Dorothy Dahl. October 1944.
S a n F r a n c is c o E m p l o y e r s C o u n c il .
Information on Voluntary Health Insurance.
cisco, Calif.) June 1946.
(114 Sansome St., San Fran
S o c ia l S e c u r it y B o a r d , B u r e a u o f R e s e a r c h a n d S t a t is t ic s .
Prepayment Medical Care Organizations. By Margaret C. Klem. Bureau
Memorandum No. 55. June 1945.
S t e r n , B e r n h a r d J.
Medicine in Industry. (The Commonwealth Fund, New York, N. Y.) 1946.
U . S. D e p a r t m e n t o f L a b o r , B u r e a u o f L a b o r S t a t is t ic s .
Health-Benefit Programs Established Through Collective Bargaining. Bul
letin No. 841. 1945. (Reprinted from Monthly Labor Review, August
1945.)
Health Program of ILGWU. By Leo Price, M. D. (In Monthly Labor
Review, October 1939.)
Welfare Provisions for Miners in Six Foreign Countries. (In Monthly
Labor Review, June 1946.)
T r a d e -U n io n W e l f a r e P r o g r a m s 1
By N athaniel M. M ink off , Secretary-Treasurer, Joint Board Dressmakers'
Union, International Ladies' Garment Workers' Union
Development of the Movement
G r o w in g p r e o c c u p a t io n o f u n io n s w it h h e a lt h a n d w e lfa r e p r o g r a m s
is n o t a n e w d e p a r tu r e in la b o r p o lic y ; th is p r e o c c u p a tio n d a te s b a c k
to th e e a r ly d a y s o f tr a d e -u n io n is m in th is c o u n tr y .
The first organizations of workers in the United States, as in Great
Britain, were generally mutual aid associations, such as loan, sick
benefit, or burial societies. Overt organization for collective bargain
ing was still forbidden by law, and these mutual aid groups, almost
from the start, assumed what today would be called “industrial
i
This article deals prim arily w ith the experience of the New York Dress Joint Board of the International
Ladies G arm ent W orkers’ Union.
T he views expressed are those of the author and are no t necessarily shared by the Bureau.
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functions,” in addition to the narrower tasks of providing the mutual
aid for which they were ostensibly formed. It was these mutual aid
groups which initiated the modern labor movement, and from them
the trade-unions of today have derived the habit of referring frater
nally to members as brothers and sisters, as well as some of the
ceremonials and rituals of initiation and procedure.
With time and favoring circumstance, the essentially industrial
character of these organizations became explicit. The Philadelphia
Typographical Society, for instance, organized in 1802, was incor
porated in 1810 as a benevolent society. In 1833 it gave way to the
Philadelphia Typographical Society whose “primary and paramount
intention” was “the determination and support of adequate wages
for journeymen printers.” The Pennsylvania Society of Journey
men Cabinetmakers of Philadelphia (1806) was likewise formed for
purely benevolent purposes. In 1829, the society constitutionally
established itself “as a criterion for workmen to endeavor to settle all
disputes arising between them and their employers.” The Brother
hood of Locomotive Firemen and Enginemen was formed as late as
1873 as a benevolent society, and it was not until 12 years later that
it assumed its role as a labor union. The Iron Molders’ Union,
established in 1859, operated an extensive benefit system before it
assumed industrial functions. Curiously enough, all benefits were
suspended by this union in 1880 on the ground that such features
interfered with the industrial tasks of the organization. After a
decade, however, the welfare program was resumed.
Other groups, organized in later years as labor unions in the modern
sense, soon expanded their activities to include welfare programs.
The Barbers’ Union, set up in 1887, initiated its benefit program in
1893. The Tobacco Workers, organized in 1895, established its sick
benefit program in 1896. The Plumbers’ Union (1889) established
its benefits in 1903. In one way or another, welfare and mutual aid
programs became a recognized feature of American trade-unionism
and helped greatly to give it a much needed stability in its early days.
By the end of the First World War, however, trade-union welfare
activities were definitely on the decline. The attitude of the top
most labor leadership was troubled and unfriendly. In 1930, Matthew
Woll stated:
Benefit systems, where they are still in operation, are a constant source of
trouble. They are encountering all of the troubles that beset unscientific insti
tutions. Their assessments must be raised constantly to meet rising ages, and
increases of assessments are always resented. All manner of complications
result. * * * Few union operations are today productive of as much woe
and uncertainty as the benefit systems that remain in operation.2
2
W hy Trade-U nion G roup Insurance R ath er T h an a Benefit Plan?
graver, A pril 1930.)
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Daniel J. Tobin, president of the Teamsters’ Union, said very much
the same thing in recent years:
Our advice to local unions is to keep away from the sick benefit and from the
unemployment benefit as much as possible. * * * Local unions should not
overload themselves with liabilities during these prosperous days. Build up
your treasuries. Remember there are lean years ahead of us.3
Welfare programs had come to be regarded as of little importance
when, in the early 1930’s, union leaders, in launching their campaign
to organize the mass-production industries, found to their dismay
that in many instances workers were reluctant to join bona fide unions
because their own “ company unions” were providing them with
various forms of health and welfare benefits and recreational facilities
which the bona fide unions could not match. Hence, those unions
which succeeded in organizing mass-production industries had to
promise their newly organized members, in addition to increased
earnings and shorter hours, the continuation of the welfare features to
which they had become accustomed. Thus, a number of labor
unions unexpectedly and sometimes unwillingly undertook social
welfare programs quite out of line with their general outlook.
Stimulus Under Little Steel Formula
At this point a basic change in the nature of “ union welfare pro
grams” took place. Hitherto, the term implied plans financed by the
workers themselves, through regular payments 01 assessments;
henceforth it was to mean funds and programs financed—in part at
least—by the employers, in accordance with an understanding
reached through collective bargaining and often embodied in the col
lective agreement. The limitation of wage increases during World
War II under the Little Steel Formula greatly promoted this develop
ment. Beyond the 15 percent increase above January 1941 levels
authorized for direct wage increases, it was possible to obtain indirect
increases in the form of “ fringe adjustments” including employerfinanced health, welfare, and vacation plans. As E. E. Witte, of the
National War Labor Board, explained:
It is clear from all these cases that the Board will not normally order an em
ployer to institute a group insurance plan or direct the liberalization of a plan in
existence. Each case, however, will be judged on its own facts, and where it is
clearly necessary in the interests of a fair and equitable disposition of the dispute
to require the employer to institute or liberalize a group insurance plan, the
Board will so direct.4
Under the pressure of the war, and in view of the high profits which
industry was earning, management was not averse to this directive.
3 International Team ster, A pril 1944.
* D aily R eport on Labor-M anagem ent Problem s, N o. 76 (Bureau of N ational Affairs), A pril 13, 1945,
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As a result, union welfare programs were initiated in many segments
of the trade-union movement.
Present-Day Types of Programs
The type of welfare program in operation today varies with the
circumstances in the particular industry or locality in which it func
tions. In some instances—for example, the erstwhile Kaiser ship
building enterprise on the West Coast—the program is financed
entirely by deductions from the workers’ earnings, but is managed
exclusively by the company. The Endicott Johnson Co. of Bing
hamton, N. Y., has a different approach: It not only assumes the
entire administration of the plan, but also furnishes all the finances as
well. A third type is that maintained by the Consolidated Edison Co.
of New York, whereby the program is financed by contributions from
both the employees and the employer, although administration is the
exclusive prerogative of the company. The fourth kind—which will
be discussed here in detail—is that of the International Ladies’
Garment Workers’ Union local unions. Here the programs are
financed entirely by management, but the day-to-day administration
is left to the union, subject to review of a council on which the em
ployers are represented.
Ladies* Garment Workers* Health and Welfare Programs
History.—The International Ladies’ Garment Workers’ Union
entered the field of welfare programs soon after the historic cloakmakers’ strike of 1910. Several local unions, notably Pressers’
Local 35 and Cloak Tailors’ Local 9, both of New York City, estab
lished tuberculosis benefit funds, to which each member contributed a
dollar a year. Workers found suffering from tuberculosis were eligible
to a cash benefit of $ 100 , or a sojourn in the country for a minimum
period of 10 weeks at the full expense of the union.
Not so long ago, it will be recalled, the needle trades constituted
a thoroughly sweated industry, giving rise to the term “sweatshop”.
Not much attention was paid to the plight of the workers except by
the weak and struggling unions (which, single-handedly, were unable
to do much), and by a few reformers. Most of the garment factories
in New York City were located in the tenement slums of the East
Side; building piled upon building without vacant space for admitting
sunshine, light, or air. Sanitary facilities were lacking. The long
hours of employment and low wages compelled many workers to use
the factory as a lodging. Employers did not object to this arrange
ment, because it saved them the expense of a watchman. There were
no factory laws to observe.
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Under these conditions, it was inevitable that tuberculosis should
become the chief occupational disease in the garment industry.
Such an environment also led to one of the most disastrous industrial
catastrophes known in our country, wherein 147 young women workers
lost their lives in a fire which broke out in the Triangle Waist Shop
in March 1911. It was definitely established, at the criminal trial
which followed, that the owners had the factory doors (including
those leading to the fire escapes) locked during working hours.
These startling facts came to light as a result of an industry-wide
investigation conducted by the United States Public Health Service
in 1912 in cooperation with the Joint Board of Sanitary Control.
This unique institution came into being as a result of the signing of
the “protocol of peace/’ which followed the prolonged and bitter
general strike of the coat and suit makers of New York in 1910. Its
main objectives were the elimination of dreaded sweatshop conditions
and of fire hazards.
Louis D. Brandeis, Louis Marshall, and Hamilton Holt were the
chief architects of this idea. The Board was originally administered
by representatives of the employers, the workers, and the public,
the latter consisting of Dr. William J. Schieffelin, Lillian D. Wald,
and Dr. Henry Moskowitz. Its medical director, the late Dr. George
M. Price, succeeded several years thereafter in interesting the parties
not only in the maintenance and observance of more desirable working
conditions, but also in the improvement of the health of the workers.
UNIO N H EA LTH C EN TE R
Thus, from a small beginning involving only a few thousand workers,
a huge institution today, known as the Union Health Center,5 was
created. It is owned and operated on a nonprofit basis by the
ILGWU. Housed at present in its own modern, fireproof 27-story
building, it is serving the needs of the 150,000 ILGWU members
located in the New York area. In 1945, it rendered no less than
164,636 medical services to 28,056 patients. During the same year,
it handled a total of 11,881 disability cases, to whom it rendered 24,652
services. The institution is at present under the diiectorsliip of
Dr. Leo Price, son of the founder and first administrator of the Center.
It has a medical staff of about 100 , with a lay staff of over 150.
From the public health standpoint, the Union Health Center is
unique. It was the first institution of its kind in the country, and
its director is frequently called into consultation by government
bureaus and other agencies interested in public health problems.
s See M onthly Labor Review, October 1939 (p. 811), for description of th e IL Q W U health program .
7286 0 7 — 47 ------ 4
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GROW TH OF PROGRAM
In the years that followed, local unions of the ILGWU began to
inaugurate first a tuberculosis benefit fund and later a limited form of
sickness insurance. Both of these benefits were financed by a 35 -cent
monthly stamp paid by the workers. The actual amount of benefits
varied, but the high point was reached in the payment of $150 to
tubercular members and a weekly sick benefit of $7 for a period of 8
to 10 weeks.
At the present time, the great majority of the ILGWU’s 350,000
members, distributed in 420 separate local unions in 275 communities
in 35 States and Canada, enjoy some form of health and welfare
benefit.
New York Dress Joint Board
The largest single unit in this integrated union welfare program of
the ILGWU is the New York Dress Joint Board, which includes three
local unions (22, 60, and 89), with a membership of approximately
60,000. (Cutters Local 10 , though part of the Joint Board, is for the
present not participating in the program.)
When the collective agreement between the Dress Joint Board and
the employers’ associations in the New York dress industry was re
newed on May 6 , 1944, a new clause was included providing for a
3 K-percent pay roll contribution by the employers to maintain a
health and welfare program. The funds, according to the terms of
the agreement, “ shall be used exclusively for the members of the
union and for the payment of the operating and administrative
expenses thereof.”
“ The health fund,” by further provision of the agreement, “ shall
be administered by the Joint Board, and the Joint Board shall de
termine what proportionate amount of the health fund shall be al
located for health benefit and what proportionate amount shall be
allocated for vacation benefit. With respect to health benefits, the
parties hereby create a council consisting of two representatives of
the Affiliated Association, two of the National Association, and two
of the Popular Association, and six representatives of the Joint Board
of the Dress and Waistmakers’ Union, which shall be presided over
by the Impartial Chairman. The council shall have the right to
determine the types and amounts of health benefits which the mem
bers of the union shall receive and which, however, shall not exceed
the total amount allocated by the union for health benefit. The Joint
Board shall file with the council any rules and regulations relating to
health benefits which it may adopt, and amendments which it may
make thereto, and shall report periodically to the council the accom
plishments of the health fund with respect to health and vacation
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benefits. With respect to vacation benefits, the parties agree that
the Joint Board shall have the right to adopt rules and regulations in
connection therewith and to establish the eligibility of members of
the union for benefits and the amounts of benefits to be paid them.”
TY P E S OF B E N E F IT S PA ID BY T H E BOARD
Benefits currently paid by the New York Dress Joint Board are as
follows:
(1) Cash benefit.—Members who are ill and unable to work are
entitled to a cash benefit of $15 a week for a period of 10 weeks each
calendar year. It is paid upon certification by the medical depart
ment of the union (Union Health Center), and continues as long as
the member is unable to work, up to 10 weeks.
(2) Hospitalization.—Members are entitled to a benefit of $5 per
day for each day of hospitalization up to 60 days in any calendar year.
(3 ) Surgery benefit.—The union pays every member undergoing a
surgical operation a sum varying from $10 to $50, depending upon the
nature of the operation.
(4 ) Medical credits.—In addition to all the above benefits, every
member of the union is entitled to $25-a-year medical service at the
Union Health Center for general medical examination, special labora
tory tests, or X-ray.
(5 ) Maternity assistance.—A $50 maternity benefit is paid members
upon presentation of a board of health birth certificate. The plan is
being enlarged to include stillbirths, etc.
(6 ) Eye conservation program.—Every member is entitled to free and
unlimited eye treatment and to free eyeglasses.
(7) Tuberculosis benefit.—Members who are found to have tubercu
losis are sent, at the expense of the fund, to any one of the many
tuberculosis sanitariums with which it is affiliated, and are kept there
until their health is fully restored. Those desiring to withdraw from
membership and take care of their health independently of the fund’s
provisions are allowed a cash settlement of $250. The obvious
difference in cost between an unlimited stay in a recognized health
institution with all costs (including regular sick benefit and personal
expenses) paid by the fund, and the alternative of $250 allowed a
sick member who undertakes his own cure, is intended to deter mem
bers from asking for cash settlements and to encourage them to enter
an institution where the chances for the arrest of the illness and its
ultimate cure are so much better.
(8 ) Vacation benefit.—Every member of the union, employed or
available for employment in the industry, is entitled to a cash vacation
benefit ranging from $33 to $48, depending upon the particular craft
of the worker. This sum is payable on the first of June of each year.
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Federal Reserve Bank of St. Louis
208
M O N T H L Y
L A B O R R E V IE W --- F E B R U A R Y
194 7
(9)
Death benefit.—In addition to the $150 lump-sum death benefit
paid by the home office of the ILGWU, for which the individual
member pays $1 a year, most of the local unions pay an additional $150
without any contribution from the members. Death benefits, it should
be noted, are not financed from the Joint Board Health Fund, but by
the members’ contributions supplemented by the local treasuries.
COST OF BOARD’S H EA LTH AND W ELFA RE PROGRAM
The size and scope of the New York Dress Joint Board health and
welfare system are indicated by the payment, during the first 8
months of 1946, of over $600,000 for seven kinds of health benefits
(as shown by the following table) and of more than 2 million dollars
in vacation benefits in 1946.
C o m p a r a tiv e a m o u n t o j h ealth ben efits p a i d d u r in g f i r s t 8 m on th s o f 1 9 4 5 a n d 1 9 4 6
F irst 8 m onths
Increase
T ype of benefit
T otal am ount paid.
________
Cash benefits____
______
H ospitalization b en efit.. _ •___
Surgery b e n e f it___ _________
_ __
M edical credit- ___ _
M atern ity assistance_______ _____
E ye conservation program - . . . ___
Tuberculosis benefit. ____________
___ _
1946
1945
A m ount
$624,199.42
$393,072. 37
$231,127.05
58.8
397,042. 50
82,168. 00
16,980.00
83,434.87
16, 725.00
32, 941.95
4,907.10
288, 224.05
40,015.00
108, 818.45
42,153.00
16, 980. 00
45,796.12
6, 725. 00
7, 333. 38
3, 321.10
37.8
105.3
100.0
121.7
100.0
28.6
209.4
37,638. 75
25, 608. 57
1, 586.00
Percent
Per capita costs.—On the basis of the foregoing figures, it is esti
mated that the average cost in health benefits alone, excluding medical
and general administration, is over $16 per member per year.
The cost is not uniform for the. three local unions involved in the
foregoing table. Thus, Local 22 , with a dues paying membership of
25,671, runs its various forms of benefits at an annual cost of $19.36.
Local 89, with a membership of 30,405, averages $12.69, and Local
60, with 2,766 members, averages $19.34. The wide difference in
costs between Local 89 and the other two locals is attributable largely
to the fact that the former is composed of a considerably jmunger
element; moreover, the whole benefit system is more recent in this
union than in the other locals, with the result that its membership is
not yet fully aware of what it has to offer, and so does not take the
same advantages of the program as do the other two unions.
Actual per capita costs in cash sick benefits, including the medical
fees involved in the examination of sick members, are as follows:
1946
Local 22----------------------------------------------- $11. 15
Local 60______________________________
10. 52
Local 89______________________________
8. 45
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Federal Reserve Bank of St. Louis
1945
$8.43
8.44
6.34
209
U N IO N H E A L T H AND WELFARE P LA N S
Cost oj medical benefits (on a per capita basis) are distributed as
follows:
1946
Local 22____________________
Local 60____________________
Local 89____________________
1945
$ 3 .. 29
3 . 43
$ 1. 64
1. 69
.9 9
.32
Claim rate per 1,000 (percent)
Local 22____________________
Local 60____________________
Local 89____________________
..
¡ 6%
16}3
-
10#
12J4o
122
/ io
8% o
General administration, including complete supervision as well as
audit of employers’ books, runs at the rate of 5 percent of gross col
lections.
A further examination of the foregoing table (p. 208) shows that as
the health fund becomes better known to the members, payments
increase correspondingly. This fact accounts for the 29 percent rise in
the eye conservation program, wherein no change in benefit rate was
made between the first and second year of operation.
Increases in the other parts of the program are due primarily to
the change in schedules which went into effect on April 1, 1946,
whereby the weekly rate of cash benefit was increased from $12 to
$15, the hospitalization benefit from $3 to $5 per day and from 20
to 60 days per year, and medical credits from $15 to $25 per year.
Two entirely new benefit forms were added—surgery benefit and
maternity assistance.
There was also a substantial increase in the vacation benefit paid
this year. From a preliminary report recently made available, it is
evident that, although the total amount disbursed for vacation benefit
for the full year ending May 30, 1945, amounted to $1,476,709.90,
the vacation benefit paid out for the year ending May 30, 1946,
amounted to at least $2,069,254.46, an increase of over 40 percent.
This advance is explained in part by the fact that vacation benefits
were increased by $ 10 , and in part by the rise in the number of claim
ants (51,077 to 53,503) for the benefit. The average cost of this type
of benefit was about $39 per member during the 1946 period indicated.
The administrators of the health fund are not disturbed by these
increases. The industry is still operating at a good pace and the
receipts in 1946 not only compared well with the previous year but
also showed an increase of 13.9 percent, as of August 1 , 1946. As
a result of the added income, the health fund has been in a position to
put away a substantial reserve, from which it expects to be able to
increase current benefits still further and gradually add new forms of
benefits.
The types of benefits herein described are determined by the ex
perience which the union has gained from the operations of similar
funds during the past 30 years and are also geared to the revenue
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Federal Reserve Bank of St. Louis
210
MONTHLY LABOR REVIEW— FEBRUARY 1947
derived during the past year. As already indicated, systematic up
ward readjustment is anticipated. Knowing the character of the
industry-—its sharp seasonal fluctuations and general instability—the
union administration is taking a most careful attitude with respect
to scales of payment since it does not want ever to be in a position
which necessitates reduction in benefits.
HOW B E N E F IT S ARE PA ID
We were faced with the problem of how to pay benefits. Instead
of establishing a completely new department, with an individual
record for each of the 60,000 dues-paying members, which would have
required continuous posting of the members’ records, we agreed to
utilize the already existing sick-benefit departments of the individual
locals and their records. Thus, members who take sick report di
rectly to the local to which they belong. The health fund department
of the locals, in accordance with uniform rules and regulations, then
notifies the Union Health Center of the case. The member is exam
ined within 3 days, and if disability is established, the first week’s
benefit is paid on the tenth day following the receipt of the report of
illness. Thereafter, weekly checks are mailed upon the seventh day.
At the conclusion of each month, the local health fund departments
submit detailed statements of disbursements to the secretary-treasurer
of the Joint Board Health Fund Committee, who reimburses such
amounts to the local health funds, subject to audit.
Any member who feels that he has been deprived of his rights or
that he has not been paid in full for his disability, has ample oppor
tunity to lay his grievance before his elected local officer. He can
explain, in a language which both understand, his particular claim.
He thus has the satisfaction of “ talking it out” with the chief adminis
trator of his local union, rather than having to be content with a mute,
stereotyped form reply.
If he is still dissatisfied, he has an opportunity to appear before a
committee on claims, which meets regularly in the office of the union.
This committee is composed of two rank-and-file members from each
of the affiliated local unions, and is presided over by the secretarytreasurer of the Joint Board. The rules and regulations of the health
fund empower this committee to make whatever adjustments the
facts would seem to justify.
In this fashion, we have established a machinery which allows for
a centrally controlled administration and at the same time offers
wide flexibility, giving the local unions a substantial degree of auton
omy and the individual member a feeling that he is not hopelessly
removed from the administration of his union and its funds.
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Federal Reserve Bank of St. Louis
UNION HEALTH AND WELFARE PLANS
211
Other Considerations
EM PLO YERS’ COOPERATION
Obviously the comprehensive health and welfare program here out*
lined could not have been undertaken without the security and strong
organization which the ILGWU has been able to develop in the past
30 years. When a trade-union must devote all of its energies and
resources in struggling for adequate wages and decent working condi
tions, it has neither the time nor the means to think in terms of social
welfare programs. Once it has achieved a substantial degree of
unionization and control over workers in the industry, it can under
take these “ extracurricular” activities, which then become a legiti
mate part of its industrial program.
In fairness to the employers in our industry, it should be said that
they, too, are entitled to credit for the inauguration and development
of our welfare program. In the course of the past 30 years of col
lective bargaining these employers have learned to recognize a
responsibility beyond providing adequate earnings and decent working
conditions to the men and women in their employ. They have become
acquainted at first hand with the social and economic value of human
welfare.
W ID E A C CEPTA N CE OF UN IO N W ELFA RE PROVISIONS
Encouraged by the success which the ILGWU has scored in the
field of social welfare, many other unions have, in recent years, suc
ceeded in incorporating similar provisions in their collective agree
ments. Among them are the Amalgamated Clothing Workers of
America (CIO), including its New York and Chicago divisions; Fed
eration of Dyers, Finishers, Printers, and Bleachers of America (CIO);
United Furniture Workers of America (CIO); United Hatters, Cap,
and Millinery Workers’ International Union (AFL); Upholsterers’
International Union of North America (AFL); New York Hotel
Trades Council; 6 Chain Service Restaurant Employees’ Union; 6
International Jewelry Workers’ Union (AFL); International Union
of Mine, Mill, and Smelter Workers (CIO); and International Print
ing Pressmen’s and Assistants’ Union of North America (AFL).
More recently this movement was spurred by the United Mine
Workers of America (AFL), which in a recent agreement has provided
for a minimum of social security for the hundreds of thousands of
coal miners. Because of the grave industrial hazards to which
miners are always exposed, this form of protection would have been
desirable even before the garment workers and others began to enjoy
it. Henceforth welfare benefits become an important issue in eme M em bers of the H otel and R estaurant Em ployees International Alliance (A FL ) in Greater New York.
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Federal Reserve Bank of St. Louis
212
MONTHLY LABOR REVIEW— FEBRUARY 194 7
ployer-employee negotiations. This was made clear by President
William L. Green in his report to the convention of the American
Federation of Labor held in Chicago in October 1946.7
E F F E C T OF PR O G R A M O N U N IO N
What has been the effect of this welfare program upon the organi
zation? Does it make for a stronger union? Definitely, yes. Among
the chief factors making for the strength and effectiveness of the
ILGWU have been its comprehensive benefit services, including, of
course, its highly developed educational and cultural program.
In the early stages of the ILGWU, its membership was in a con
stant state of flux. The industry in all its branches was sharply
seasonal. Shop strikes would break out on the eve of every season.
The workers would obtain some wage increases here and there, only
to see them disappear several weeks later. There was nothing to
bind the garment worker to his union. He would join and drop out
at frequent intervals. The turn-over in membership was tremendous.
With the introduction of the benefit system conditions changed
radically. Today the person who joins the ILGWU has every good
reason to maintain his membership even in slack periods. He no
longer drops his membership at the end of the busy season as he did
formerly, because today his membership is a form of security against
illness, unemployment, accident, and death. This makes for stabil
ity, organizational strength, and effectiveness on the industrial field
and gives the union real capacity for expansion.
N ew Programs Create New Problems
The administration of union health and welfare plans carries with
it certain new responsibilities and creates certain new problems which
are already beginning to make themselves felt.
L I should like to stress particularly the need for actuarial experi
ence and guidance in the operation of welfare programs. Heretofore,
unions have relied on whatever data they were able to obtain from
governmental and private sources, together with their own meager
information acquired in the course of experience. Benefit scales
have been fixed simply on the basis of availability of funds. Little
account has been taken of such facts as the increasing age of the
membership and the consequent higher incidence of illness. Will the
unions be in a financial position to pay the present benefits in the
years ahead, when the needs will become greater and the means more
limited? This is but one example of the kind of questions that must
be considered. So many factors are involved that, unless the actua
rial aspect is properly handled, the entire program may be jeopardized.
7See p. 195 of this issue for statem en t from M r. G reen’s report,
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Federal Reserve Bank of St. Louis
U N IO N H E A L T H AND WELFARE PLA N S
213
2 . It appears to me that the trade-unions ought to begin pooling
their experience with a view to setting up definite criteria to enable
welfare programs to stand the strains and stresses inevitable under
our present economic set-up. It is my feeling that the more efficiently
and the more scientifically our funds are administered, the more likely
we are to-preserve their voluntary character.
3. Another problem which has come to the fore is that of invest
ment. The profitable and secure investment of union health funds,
as well as of union funds in general, constitutes a tremendous responsi
bility upon union leadership. Because persons directly in charge of
union funds are free from the governmental restrictions to which
most of the nonprofit fraternal organizations, savings banks, and in
surance companies are subject, they have to use extreme prudence and
care. Investment is a study in itself, and few of the union officials
in charge of funds are trained in it. What may appear as a sound
proposition to one man may be discarded by another for the sake of
an additional fractional percent of interest. Most funds have met
the problem by limiting investment to the purchase of Federal, State,
and municipal bonds. This seems to be a fairly safe course to follow,
and one which will not subject the administrator to criticism in the
event the bonds drop in value. But even here there are elements of
danger. Some municipalities and States represent a better risk than
others. Standards should be set up as to types of investment. The
question of maturities is similarly important. Portfolios must be so
arranged that advantage is taken of changed financial conditions.
It is a mistake to think that, once a Government bond is bought, it
must be kept to maturity.
4 . The complete segregation of health and welfare funds from the
general funds of the union is not only desirable but absolutely neces
sary. It has already been noted that some unions were at times
compelled to suspend or entirely liquidate their health and sick benefit
programs because of industrial conflicts that completely drained their
resources. No union can consider itself forever immune from labormanagement clashes. Unless the health and welfare funds are prop
erly segregated, there is danger that they may be used, directly or
indirectly, for general union activity. I p this connection, there comes
to mind an incident in the course of one of our perennial strikes in the
late 1920’s. When I told the strike committee that the money to
which reference was made was the property of the sick-benefit fund
one of the strike leaders told me, “ If we don’t win this strike, there’ll
be no union and no sick fund.” To this I replied, “ As long as there is
this sick fund, something will always be left of the union.” Experience
not only in the ILGWU but in many other sections of the labor move
ment has proved these words correct.
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Federal Reserve Bank of St. Louis
214
MONTHLY LABOR REVIEW— FEBRUARY 1947
In the International Ladies’ Garment Workers’ Union and all its
affiliates segregation of funds is an established and fixed policy. Its
supreme governing body—the general executive board—has long ago
laid down the law that in no instance and under no circumstances are
funds to be intermingled.
Needless to say, trade-unions have entered the field of social welfare
out of sheer necessity. The attitude of some employers with respect
to the health and welfare of their workers and the past inadequacy of
governmental plans left them no other course. However, it is hoped
that the social security program of the Federal Government, which
now offers only a limited form of protection, will eventually embrace
all forms of sickness insurance and medical, mental, hospital, surgical,
dental, and prenatal care. When this happens, some unions will gladly
turn over their responsibilities to the Government and continue to
pioneer in other fields of social reform and economic justice.
How well the Government will run this program, no one can tell.
Some trade-unionists do not relish the idea of exposing their members
to the potential red tape of bureaucratic management. When we
reach that point, it may be well to rely upon the experience which the
European trade-unionists had in this respect. In pre-Hitler Germany
and Austria, as well as in the Scandanavian countries, welfare funds,
under the name of “ Arbeiter-Kranken und Sterbe-Kasse,” functioned
very satisfactorily on a tripartite basis—Government, industry, and
labor. It may be that we can do the same, and with our American
ingenuity, may be able to improve upon it. But I am not prepared
to formulate any definite program of administration. We lack suf
ficient experience to come to definite conclusions. We should, how
ever, endeavor to develop a workable and, above all, a humane ap
proach to the problem. In the administration of health and welfare
programs, we are constantly dealing with sick and disabled people.
To restore them to health and at the same time help them retain their
human dignity is a task worthy of our best talents and attention.
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Federal Reserve Bank of St. Louis
W a rtim e a n d P o s tw a r E x p e rie n c e s o f C o n n e c tic u t
S m all-A rm s W o r k e r s 1
C o n t i n u i n g its 150-year old tradition, Connecticut during World
War II was a leading producer of small arms. Not only has it sup
plied military weapons in large quantities in times of war, but in
peacetime it has been in the foreground as a manufacturer of service,
sporting, and target rifles and pistols. Times of war, of course,
brought about the most rapid expansion followed by sharp contrac
tions as the industry returned to filling peacetime market needs.
During World War II employment increased over 150 percent between
1939 and the summer of 1943, the peak period when about 40,000
workers (8 percent of the total employed in manufacturing in Con
necticut) were engaged in small-arms production. Between 1943 and
1945 there was a decline of more than 35 percent and further losses
followed thereafter.
Postwar Adjustments
In the spring of 1945 when the Bureau of Labor Statistics first
made its survey of 300 war workers employed by three large producers
of small arms in New Haven and Hartford ,2 the tide of wartime expan
sion had already turned. When the same workers were restudied in
the winter of 1945-46, 20 percent were unemployed and seeking work.
Six months later, the employment situation had improved consider
ably; the jobless represented 7 percent of the total which was still
higher than the corresponding rate, 5 percent, for the civilian labor
force as a whole. Slightly over a fourth of the wartime small-arms
workers were still with their same employers as in April 1945 (table 1).
Those 45 years of age or over were apparently having greater
difficulty than younger persons in finding suitable employment—9
, percent of the former in contrast with 6 percent of the latter were
unemployed in June 1946. It is interesting, however, that of those
employed, considerably more older than younger persons were re
tained by their wartime employers. This is probably attributable to
the fact that a relatively larger number of the older workers were
among the more highly skilled, some of them with long experience in
the industry.
Improved employment opportunities in June resulted in fewer
women being out of work and seeking jobs, while more had withdrawn
1 Prepared b y W illiam E . N orthey, Jr., of the Boston Regional Office of the B ureau of L abor Statistics.
All p lant departm ents
and occupations were considered in the selection and proportionate representation was given to m en and
women. Of the 300 workers covered in the spring of 1945, 247 or 82 percent were m en and 53 or 18 percent
were women.
2 This random sample of 300 w orkers included 100 from each of the three plants.
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Federal Reserve Bank of St. Louis
215
216
MONTHLY LABOR REVIEW--- FEBRUARY 194 7
T able 1.— E m p lo y m e n t s ta tu s o f 2 9 4 sm a ll-a r m s w o r k e rs , b y a ge a n d se x , J u n e 1 9 4 6
Percentage distribution of workers—
All
workers
U nder 45
W ith same em ployer as in spring 1945___________
W ith different em ployer__________ _____________
Self-employed. __ __ ________ _ _ _ _ _ ____
U nem ployed and seeking w o rk_____ _ __________
In arm ed forces . _ __
_ __ _____
N ot seeking w ork__
_______
_______
N ot reported
28
48
7
7
T o tal___ _ __________ ___ ___ _ _ ___ _____
N um ber of w orkers_____ _______
B y sex
B y age
E m ploym ent status
__
_ _____
45 and
over
17
59
8
6
W omen
M en
41
36
6
9
26
53
8
6
1
1
8
8
7
5
1
1
1
1
38
26
2
13
1
21
100
100
100
100
100
i 294
155
139
241
53
1 Of the original 300 workers, 3 had died since first interview ed in A pril 1945 and 3 others could not be
loca ed.
from the labor market compared with the situation 6 months earlier.
In January, approximately a fourth of the women reported they were
jobless compared to 13 percent in June. Withdrawals from the labor
market accounted for only 5 percent of the women in the beginning
of the year in contrast to 21 percent 6 months later. As might be
expected, more women than men were unemployed or had retired
from gainful employment.
With the end of war work, average weekty earnings declined from
about $69 to $46, a loss of a third, between the spring of 1945 and the
winter of 1945-46. Subsequent wage rate increases had the effect of
lifting weekly pay by approximately $1.60—an increase that was
probably nullified by the advance in the prices of living essentials
(table 2 ).
Workers who remained with their wartime employers fared con
siderably better than those who left to take jobs elsewhere. Based
on the figures given in table 2, a decline in weekly pay between April
1945 and June 1946 of nearly $7 (a 12-percent loss in earnings) is
T able 2.— A v e r a g e w e e k ly g ro ss e a r n in g s a n d w e e k ly h o u rs f o r 1 1 3 id e n tic a l sm a ll-a rm s
w o rk e rs in 4 p e r io d s
Item
N um
ber of
work
ers
1941
Gross
earn
ings
Gross
Hours earn
ings
W inter
1945-46
June 1946
Gross
Hours earn
ings
Gross
Hours earn
ings
H ours
49.2 $68.85
50.2 $45. 97
47.2 $47. 58
45.4
W ith same em ployer-__ __________
W ith different em ployer__________
30
83
41. 66
32. 97
47.4
49.9
56. 53
73.30
52.3
49.5
53. 61
43. 22
50.1
46.1
49.71
46.80
44.7
45.6
U nder 45 years____ _____ _ __ __
45 years and o v e r.__ ______ _ ____
61
52
32.81
38.18
49.5
48.9
73.06
63. 90
49.6
51.0
45.80
46.20
46.5
48.0
48.04
47.03
44.9
46.0
Total, identical w orkers_____ _
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Federal Reserve Bank of St. Louis
113 $35. 28
Spring 1945
217
CONNECTICUT SMALL-ARMS WORKERS
shown for the first group as against $26.50 (a 36-percent loss) for the
latter group. Obviously, the latter group included many workers
who found it necessary to transfer to other industries and to other
types of work in which compensation was much lower than in their
wartime jobs. Moreover, in these peacetime jobs, many workers
were not employed overtime or on late shifts and consequently did
not have their earnings augmented by premium pay.
Weekly earnings of the older men did not drop as much as those of
the younger, largely because more of the older men were retained by
their wartime employers and more of them held skilled jobs. A
little over a year after they were first interviewed, men 45 years of
age and over showed a 26-percent decline in weekly pay as against
a 34 -percent drop for those under 45.
One of the reasons for the postwar decline in earnings is indicated
by table 3 which shows the employment status of workers by industry
group. In June 1946, only 56 percent of the small-arms workers
were still in manufacturing. Agriculture and mining, which together
accounted for a little over 2 percent of the workers in January 1941,
had not as of June 1946 regained even this small prewar proportion.
Aside from these two fields, the distribution of workers among the
major industry divisions was essentially the same in June 1946 as in
January 1941.
The shifting of workers among occupational groups appears to
have been more marked than the interindustry movements. The
self-employed were a considerably larger unit (9 percent) after the
war than before (5 percent). White-collar workers doing clerical or
sales work showed a decline from 11 to 9 percent, but the professional
T able 3.— E m p lo y m e n t sta tu s o f sm a ll-a r m s w o r k e rs , b y in d u s tr y g r o u p , J a n u a r y 1941
a n d J u n e 1946
N um ber of workers
Percentage distri
bution
In d u stry group
Jan u ary
1941
300
W holesale and. retail trad e
_______
Finance insurance, and real e state____ _________________ . . . .
T ransportation communication aod pnhlio utilities ___
In arm ed forces
N ot seeking work
________ _______ — — - ______ - _______ ______
T T -n o r r v n ln v p r l
—
________________________ ________
1 Since first survey, 3 w orkers died and 3 could no t be located.
2 Less than a half of 1 percent.
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Federal Reserve Bank of St. Louis
7
1
21
17?
23
1
6
31
5
1
23
9
January
1941
June
1946
i 294
100
June
1946
100
2
18
164
20
6
7
25
5
2
22
21
4
(2)
(2)
(2)
7
57
8
2
10
2
8
3
6
56
7
2
2
9
2
1
7
7
1
218
MONTHLY LABOR REVIEW--- FEBRUARY 194 7
and semiprofessional group retained its proportional importance (1
percent). Craftsmen and manual workers accounted for 78 percent
of the workers studied before the war and 74 percent afterwards—
a relatively small change. However, within this group a fair amount
of shifting among skill levels is evident (see table 4). Comparing
June 1946 with the prewar situation, the skilled component remained
relatively constant, but there were fewer semiskilled and more un
skilled workers. Compared with the wartime situation, the align
ment after the war shows a small increase in the skilled group, a large
addition to the unskilled, and a diminution in the semiskilled.
T able 4.— P e rc e n ta g e d is tr ib u tio n o f c r a fts m e n a n d m a n u a l w o r k e rs , s p e c ifie d p e r io d s
Class of w orker
Skilled____________
Semiskilled_________
U nskilled______
T o tal________
Prew ar 1 W artim e2
37
57
6
27
68
5
Postw ar 8
33
49
18
_____ _
100
100
100
N u m b er of w orkers____ ____
225
279
180
1 Based on workers having em ploym ent experience prior to Jan u ary 1941.
2 As of A pril 1945.
8 As of June 1946; includes only em ployed workers.
Postwar movements out of Connecticut were even smaller than
wartime in-migration, despite the high unemployment rate (20 per
cent) in the winter of 1945-46. When the 300 small-arms workers
were first studied (April 1945), it was found that only 10 percent had
moved from one community to another after 1941 in order to seek
work or to obtain jobs already offered. Most of these workers came
from other States. More than a year later (June 1946), the migrants
accounted for only 6 percent of the total, and only about half (9
workers) left Connecticut. The fact that the great majority were
long-time residents of this State probably explains the absence of any
considerable out-migration. In addition, reconversion in this highly
industrialized area must have fostered the hope that alternative desir
able jobs would soon become available. From the improved employ
ment situation observed in June 1946 it would appear that, at least
temporarily, the workers’ expectations in this respect were not illfounded.
The Small-Arms Worker
In the spring of 1945 the average age of the men studied was 46; the
women were 13 years younger. About three-fourths of the men were
between 30 and 60 years of age and 16 percent were at least 60.
Among the women, approximately two-fifths were in the age group
35 to 55 and only 6 percent were older. The withdrawal of younger
men into the armed forces during the war years undoubtedly acted to
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CONNECTICUT SMALL-ARMS WORKERS
219
widen the age spread between men and women at home. Moreover,
many of the younger women, whose entrance into the labor market
would have come later under peacetime conditions, were attracted by
the opportunities afforded by war work. A relatively larger number
of older men than older women were probably also drawn into the
labor force during the war.
The financial responsibilities of these workers varied considerably.
More than 9 out of 10 men were the chief supporters of families having
2 or more persons; only 3 percent of the men, compared with 44 per
cent of the women, were living in families of which they were not the
heads. Only 63 of the 300 workers studied, chiefly women, reported
having no dependents. Among the men, over a third had 1 dependent,
a fourth had at least 2 dependents, and nearly 30 percent had 3 or
more. As might be expected, a larger number of men than women
were the only employed members of their families. Only one worker,
a man, reported that there were more than 4 employed persons in his
family.
Prewar and Wartime Work Experience
In the production of small arms, the great majority (two-thirds) of
the 300 workers held semiskilled jobs, while approximately a fourth
were skilled and about 5 percent unskilled. About a fifth of the
women but only about 3 percent of the men were employed in plant
clerical occupations, performing the work of production and stock
clerks, timekeepers, and similar groups.
Half the workers did not go beyond the eighth grade, about twofifths completed one or more years of high school, and only about 5
percent had some college education. When age was related to educa
tion, both men and women between the ages of 21 and 45 showed
longer formal schooling than those over 45.
Trade or vocational training taken prior to 1941 was reported by 27
percent of the men and 6 percent of the women. During the war less
than 5 percent of the workers received any formal vocational training
reflecting, in all probability, that a larger number had previous ac
quaintance with the type of work required in small-arms production
and that others were trained on the job.
For the most part it can be said that the small-arms worker was
prepared for his post through earlier experience in this or other indus
tries. Three-fourths of the men and moiA than four-fifths of the
women reported that in their usual peacetime employments they had
been craftsmen or manual workers. Within this broad group, approx
imately half the men and practically all the women usually held semi
skilled jobs. It is of interest that all but 10 workers (4 men and 6
women) had had employment experience before January 1941.
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MONTHLY LABOR REVIEW— FEBRUARY 194 7
T H E SH IF T TO WAR JOBS
Viewed in terms of broad levels of skill, a rough correlation was
apparent between the workers’ prewar usual occupations and those
adopted during wartime. Of the 95 men with experience in semi
skilled work prior to January 1941, 85 were employed in this grade
in a small-arms plant in the spring of 1945. Similarly, 30 out of 36
women showed no change of occupational skill. Of the 82 men
usually employed in skilled jobs, 61 showed no change, 20 moved
down into the semiskilled group, and 1 into the unskilled. It may
be pointed out that the acceptance of a job at a lower level of skill
did not always entail a reduction in earnings or even in hourly wage
rates. Workers who came from lower-wage industries often realized
higher wages even though they accepted a job which did not fully
utilize their acquired skills.
Four workers who had been farmers became semiskilled manual
workers in the factory while those who were normally small business
men became either skilled or semiskilled manual workers. Although
all the women who had been clerks performed the same type of work,
most of the men who had held the same type of job or who had been
salesmen took semiskilled manual jobs.
Manufacturing industries and, in particular, machinery and ord
nance producing establishments, were the sources from which the
greatest number of the workers were drawn. Wholesale and retail
trade yielded about 9 percent of the men but only one woman. The
service trades, including hotels, laundries, advertising, and other
personal and business services, were reported as areas of usual em
ployment by another 9 percent of the men, and by about 8 percent
of the women. Three men were normally employed in finance, insur
ance, and real estate, and one man had been a miner.
W A R T IM E CHANGES IN JOBS AND EM PLO YERS
During the war, workers changed jobs more frequently than they
changed employers. Of the 300 workers included in this survey,
almost 80 percent of the men and 87 percent of the women changed
jobs between January 1941 and the spring of 1945. By contrast,
only 56 and 53 percent of the men and women, respectively, changed
employers. The largest number of men (85) made one-job change,
while the largest number of women (15) made two-job changes. No
man changed jobs more than 5 times, and only one woman had held
as many as 7 jobs.
The reasons for the greater number of job than employer changes
are fairly well known. The shortage of experienced workers encour
aged upgrading of workers to an extent and at a rate uncommon in
peacetime. Changes in production schedules because of alterations
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221
CONNECTICUT SM ALL-A RM S WORKERS
in specifications and output called for reshuffling of the labor force in
many instances. Some workers, of course, changed jobs for personal
reasons—certain tasks were too fatiguing or too hazardous or simply
unpleasant.
Only men came to the production of small arms from the three
industrial groups comprising agriculture (in which 4 percent of the
men were usually employed), transportation and communication, and
other public utilities (another 4 percent), and construction (9 percent).
U N IO N IZATIO N
Among the new experiences undertaken by many wartime workers
was membership in a labor union. In April 1945, of the 300 workers
studied, 235 were union members but well over one-half had not
belonged to such an organization at any time prior to 1941. The
proportion of women with no union experience before the war was
only slightly higher than that of men. Of the 65 workers who at
the time of survey were not union members, 14 had previously had
such an affiliation.
Wartime Wages
In April 1945 straight-time hourly earnings, exclusive of premium
overtime pay, averaged at least $1.00 for two-thirds of the small-arms
workers, including over 70 percent of the men and 38 percent of the
women/ A fifth of all the workers, all but two of whom were men, had
hourly earnings of $1.50 or more. At the low end of the wage scale,
3 workers earned less than 60 cents. The sharp differences in pay
between men and women represent, in large part, differences in types
of work performed.
It was possible to measure the changes in hourly rates of pay from
1941 to April 1945 for 237 workers; 63 either did not report their earlier
earnings or they had entered the labor market at various times during
the war years. The changes in hourly rates were as follows:
Number
Decrease___________________
No change--------------------------Increase less than 25 percen t.._
Increase of 25 to 50 percent---Increase of 50 to 75 percent---Increase of 75 to 100 percent...
Increase of 100 percent or more
T o ta l___________________
Percent
19
13
50
20
29
17
79
8
5
21
13
12
7
34
. 237
100
.
.
.
.
.
_
.
Of the 19 workers who had their rates cut during the war, only 1
was a woman. Moreover, a proportionately larger number of women
than men had their rates increased, owing largely, to the compara728607—47------ 5
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
tively lower wage level of women at tlie beginning of the war. Threefourths of the men, who in January 1941 earned less than 70 cents,
earned $1.00 an hour or better in April 1945. Almost two-thirds of
the women with prewar rates of less than 60 cents earned between 90
cents and $1.30 at their small-arms jobs.
The average increase in straight-time rates for the 237 workers was
39 cents—40 cents for men and 35 cents for women. Despite the
greater percentage increase for women, their rates in April 1945 were
still considerably below those of men.
Approximately half of the 237 reporting workers showed at least a
50-percent advance in hourly rates compared with two-thirds who had
comparable gains in gross weekly earnings. The percentage increase
in gross weekly earnings was greater than the rise in hourly rates as a
result of the lengthened workweek and premium payments for over
time.
Gross weekly earnings in April 1945 averaged $66.75. The greatest
concentration of workers, 23 percent, was between $50 and $60 a week,
13 percent earned between $40 and $50, and an equal proportion be
tween $20 and $40. Only eight workers, all men, reported earnings of
$100 or more a week (table 5).
Income and social-security taxes and union dues deducted approxi
mated 14 percent of the worker’s average gross weekly earnings; the
income tax accounted for all but 1 percent of the total deductions.
Union members received larger gross and net weekly earnings than
nonunion workers, largely because women formed a greater proportion
of all nonunion workers in the plant than they did of all union workers.
Of the 235 workers who were union members, only 13 percent were
T able 5.— Classified straight-time hourly rales and gross weekly earnings of 300 small-
arms workers, April 1945
Straight-tim e hourly rate 1
Total .
U nder 60 cents _.
60 and under 70 cents_________
70 and under 80 cents_______
80 and under 90 cents_____
90 cents and under $1..
$1 and under $1.10 $1.10 and under $1.20,. _ ____
$1.20 and under $1.30__
$1.30 and under $1.40$1.40 and under $1.50___
$1.50 and o v e r... .
Total M en
300
3
9
26
24
38
42
31
27
17
20
63
247
2
22
16
27
33
25
24
17
20
61
W o
men
Gross w eekly earnings 2
53
T o ta l........................ ...................
300
247
3
7
4
8
11
9
6
3
U nder $25 . . .
..........................
$25 and under $ 3 0 ___________
$30 and under $35____________
$35 an d |u n d er $40_______ ____
$40 and’under $ 4 5 ______ ____
$45 and under $50____________
$50!and under $55____________
$55>and?under $60____________
$60 an d 'u n d er $ 6 5 _________
$65 and under $70...... ..................
$70ia n d 'u n d er $75____________
$75 and under $80...... ................ .
$80 a n d 'u n d er $85_________ . .
$85|and under $90 _ ________
$90’and un d er $95 ____ ______
$95 a n d 'u n d er $100. .
$100 and over________________
1
1
2
15
14
25
30
38
26
30
20
26
21
20
14
9
8
1
1
9
11
18
20
27
22
25
17
26
20
19
14
9
8
2
1 Excludes prem ium pay for overtim e and night-shift differentials.
2 P rior to deductions for social security and income tax and union dues.
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Total M en
W o
m en
53
1
1
6
3
7
10
11
4
5
3
1
1
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CO NNECTICUT SM ALL-A RM S WORKERS
women whereas of the 65 nonunion workers about 35 percent were
women.
Workers with two dependents, both men and women, had the
highest gross weekly earnings. Owing largely to the nature of the
income-tax deductions, net weekly earnings increased in direct pro
portion to the number of dependents. Thus, men with five or more
dependents, who grossed about $2 less per week than those with two
dependents, had about $7.40 more in net weekly earnings. Men with
no dependents received the smallest gross as well as net weekly earn
ings. While this was not true of women, the small number in the
sample limits any generalization.
The differential in gross weekly earnings between skilled and semi
skilled workers was approximately $2 for men and $2.50 for women.
Weekly earnings for unskilled, clerical, and service workers, however,
were considerably lower. Men in unskilled jobs averaged about $24
less than skilled workers, while women showed a differential of approx
imately $14 between the two grades. The percentage of deductions
for income taxes, social security, and union dues was approximately
the same for all grades of craftsmen and manual workers but some
what lower for clerical and service workers.
In nearly all cases gross weekly earnings included premium over
time payments for work performed after 40 hours a week or 8 hours
a day. For a fourth of the men and half of the women the normal
week in April 1945 exceeded 52 hours.
In general, on an annual basis, workers earned more in 1944 than
in 1943. Of the 281 workers for whom data were available, 76 per
cent averaged $2,500 or more in 1943 compared with 82 percent in the
following year. It may be noted, however, that more workers re
ported incomes of $5,000 or over in 1943 than in 1944 (table 6).
T a b l e 6 .—
Classified annual wage income of 281 small-arms workers, 1943 and 1944
M en
Total
W omen
Income class
1943
T otal w orkers reporting for both 1943 and 1944---------U nder $500
- _____________________________
$500 and under $1,000 _________________ - ______
$1,000 and un d er $1,500____________________________
$1,500 and under $2,000 . . . . ------------------- - $2,000 and under $2,500____
______ _ --- - --------$2,500 and under $3,000. ------- ------ ---------- -$3,000 and un d er $3,500____________________________
$3,500 and under $4,000______ ______
- ------- -- $4 000 an d u n d e r $4,500
_ _ _ ____ __ ___
$4 500 a n d u n d e r $5,000
_
______ _ ________
$5,000 and over
- _______ ________________ - i Inform ation unavailable for 7 m en and 2 women.
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i 281
1
4
6
13
44
50
57
49
24
17
16
1944
281
2
2
10
37
61
54
48
35
21
11
1943
232
2
5
7
22
40
53
46
24
17
16
1944
232
1
4
19
45
50
46
35
21
11
1943
49
1
2
1
6
22
10
4
3
1944
49
2
1
6
18
16
4
2
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
A d d e n d u m : T h e C h an g in g S ta tu s of B itu m in o u s -C o a l
M in e rs, 1 9 3 7 —4 6
Attention has been called to the fact that, in the August 1946
Monthly Labor Review, the article on the changing status of bitu
minous-coal miners did not, in the discussion on principal issues in
the 1946 contract negotiations (pp. 170-171), present the Operators’
Negotiating Committee counterproposals of March 25. Although
these proposals are listed in the subsequent Bulletin No. 882, based
on the Review article, they are repeated in this issue of the Review
as a matter of record. The counterproposals of that date included
increases in wages consistent with public wage-price policy; study of a
plan for a joint fund, to be independently administered, for mitigat
ing hardships resulting from accidents; acceptance of optional as well
as compulsory provisions of State workmen’s compensation laws;
joint study of State mining laws affecting safety; strengthening of
penalties against violation of agreements; and transfer to union agents
of all funds collected from miners for payment of medical and related
costs when the local unions are dissatisfied with existing administra
tion of such funds.
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Wage and Hour Statistics
T h e H ire d F a rm W o rk F o rc e in 1 9 4 5 1
T he h i g h l y f l u i d character of the hired farm labor force, owing
primarily to the seasonality of labor demands in farming, is indi
cated by the results of a sample survey made in January 1946 by
the Bureau of the Census for the Bureau of Agricultural Economics.
This survey, designed to provide information on the labor-force
characteristics and wages of all persons who had done any farm work
for wages during 1945, furnishes a cross-sectional view of the make-up
of the hired farm labor population.
Types of Farm Wage Workers in 1945
Full-time hired farm laborers, numerically, constituted a minor part
of the wage workers in agriculture in 1945. The majority of those
reporting farm work shifted from hired work on farms to low-income
nonagricultural occupations and more largely to farm operation
(especially in the case of share croppers and other tenants of the
South). In consequence, it is impossible to delineate the farm labor
population as a fixed group.
The survey was restricted to persons 14 years of age and over who
were in the noninstitutional civilian population in the United States
in January 1946. Among this group, 3.2 million had done some farm
work for wages during 1945. In addition, it is estimated that 0.8
million to 1 million other persons not covered in the survey 2 did farm
work for wages, raising the total to an estimated 4 million. This
total of 4 million or more persons exceeds greatly the 1945 average
number of 2.1 million hired farm workers, as estimated by the Bureau
of Agricultural Economics. Moreover, it is far above the year’s
seasonal peak figure, since not all these persons were employed at
hired farm work in any single week,
1 Prepared in the B ureau’s Labor Economics Staff by M arilyn Sworzyn. This article is a sum m ary of
the stu d y , Em ploym ent and Wages of the H ired Farm W orking Force in 1945 (U. S. D epartm ent of Agri
culture, Bureau of A gricultural Economics, June 1946; m im eographed). See New Programs for Farm Labor
Statistics, page 231 of this issue.
2 These included children under 14 years of age; persons inducted into the armed forces during 1945
who were still in service in Jan u ary 1946; persons who died during the year; prisoners of war; im ported
foreign workers who had left th e country by Jan u ary 1946; inm ates of institutions; and some m igratory
w orkers who m ay have been “ on th e move” during th e survey week.
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Farm wage and employment conditions are not adequately described
by over-all averages because of the diversity of the groups included.
It is important, therefore, to examine the characteristics of the various
groups who composed the 3.2 million farm wage workers included in
the survey. (See table 1.) It should be emphasized that the char
acteristics of the farm labor force in the wartime year 1945, when the
unsatiated demand for farm products and the shortage of farm labor
sent farm wages and income to record heights, are not necessarily
typical of the farm work force in an ordinary peacetime year.
The major portion of the hired farm labor force in 1945 was com
posed of small farmers, share croppers, and members of their families
who worked at times for wages on other farms; sons, daughters, and
wives of farm operators who paid cash wages to family members;
local school youths who did a few weeks or months of farm work in
summer; and persons in nearby villages and towns who worked most
of the year in nonfarm jobs. Migratory farm workers and regular
hired hands, the two major groups popularly viewed as the hired farm
labor force, together probably made up considerably less than a
fourth of the 1945 wage workers covered in the special survey.
T a b l e 1 . — Farm
wage workers in 1945 classified by employment status in January 1946 1
Males
B oth sexes
E m ploym ent status in Jan u ary
1946 of persons w ho w orked for
wages on farms in 1945
T otal farm wage workers________
Less than 150 150 or more
days w orked2 days w orked
Total
Females
N um
N um
N um
N um
N um
P er
P er
ber
P er
ber
ber
Per
ber
Per
ber
(thou cent (th o u cent (thou cent (thou cent (thou cent
sands)
sands)
sands)
sands)
sands)
3, 212
100
2,375
100
1,657
100
718
100
837
100
In the labor force_______________ 2,279
Em ployed in agriculture_____ 1, 640
563
Em ployed in n o n agriculture-_
U nem ployed________________
76
N o t in the labor force___________
933
71
51
18
2
29
2, 035
1, 548
413
74
340
86
65
18
3
14
1, 329
924
346
59
328
80
56
20
4
20
706
624
67
(3)
(3)
98
87
9
244
92
150
(3)
593
29
11
18
71
1 Source: U. S. D epartm ent of Agriculture, B ureau of A gricultural Economics, E m ploym ent and Wages
of the H ired Farm W orking Force in 1945, June 1946; mimeographed. Estim ates relate to persons 14 years
of age and over in th e civilian n oninstitutional population in Jan u ary 1946, who did farm work for wages
in 1945.
2 Includes 9,000 males for w hom inform ation on num ber of days worked was not obtained.
2 E stim ated as less th a n 50,000.
Only 935,000 of the 3,200,000 farm wage workers were still working
for wages on farms during the second week of January 1946, a month
in which hired farm employment is usually at its lowest level. The
largest single group of persons who had worked for wages in 1945,
but who were no longer so employed in January 1946, consisted of
589,000 farm operators (including sharecroppers) who reported that
they were self-employed in January on their farms (owned or rented).
In addition, 116,000 persons in farm operators’ households, who had
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WAGE AND H O U R STATISTICS
227
done farm work for wages in 1945, were doing unpaid work on the
family farm in January 1946.
Almost all the farm operators who reported having done some farm
work for wages had worked less than half the year at hired farm work
in 1945. The importance of the group which shifts from farm
operator to hired farm worker status in the course of a year is evi
denced by the fact that 24 percent of all men who did some work on
farms for wages in 1945 reported themselves as self-employed on their
farms in January 1946.
The second largest group among those who had been farm wage
workers during some part of 1945, but were not hired farm workers
at the time of the survey in January 1946, were the 563,000 employed
in nonagricultural pursuits. Of this total 150,000 were engaged in
manufacturing and 90,000 were employed in forestry, fishing, mining,
and construction combined; 90,000 in domestic service; and the same
number in trade. Very few of the workers who were engaged in
nonfarm occupations in January had worked as much as 6 months
at farm wage work in 1945.
Compared with the ages of most other occupational groups, the
hired farm working force of 1945 was relatively young. Children
between 14 and 17 years made up more than a fifth of all wage workers
covered in the survey. Forty-seven percent of all the females were
under 25 years of age, compared with 32 percent of all males. Approx
imately 37 percent were in the age group 14 to 24. Less than half
as many were in the next group aged 25 to 34, and in each succeeding
10-year age group the number became smaller. Only 18 percent of
the males were aged 35 to 44 years, the age group in which earnings
were the highest.
The greater proportion of those employed for wages on farms in
1945 worked for short periods, due in part to seasonal demands.
About two out of every five spent less than 25 days at hired farm
work. Only about 17 percent reported 250 days’ work or more (ap
proximately full-time work) and four-fifths of this group were males.
All told, only 25 percent spent as much as half of the year (150 days)
in hired farm work.
About 76,000 unemployed were among the 1945 farm wage workers
still in the labor force in January 1946. Although this group was
relatively small, it was undoubtedly larger in prewar years when the
level of unemployment nationally was appreciably above the 2,290,000
of January 1946.
Far greater in number than those unemployed in January 1946
were the 933,000 who had withdrawn from the labor force. Of these,
about 371,000 were women who were engaged in their own housework,
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
328,000 children who were in school, and 227,000 who for a variety
of reasons were neither working nor seeking work.
Seventy percent of the 3.2 million persons reporting some farm
work during 1945 were still living on farms in midwinter 1946. Per
sons living in nonfarm rural areas accounted for another 20 percent.
Only 44 percent of the farm wage workers in 1945 were heads of
households; a fourth of the total were women and girls. Veterans of
World War II comprised only about 5 percent of the total hired farm
working force in 1945, but the monthly surveys of the Bureau of the
Census indicated rapid increases in the employment of veterans on
farms during the first half of 1946.
About 31 percent of the 1945 agricultural wage workers did hired
work on more than one farm during the course of the year. Almost
a fifth reported working on three or more farms, but only 23 percent
of this group had more than 3 months of farm wage work. The
extent of migration was probably appreciably less in 1945 than in pre
war years, owing to the fuller utilization of seasonal workers made
possible by an extensive farm labor program of routing, transporting,
and placing approximately 250,000 prisoners of war and imported
foreign workers, not included in the survey.
Wages of Hired Farm Workers in 1945
The 17 percent of hired workers who worked on farms the full
course of the year (250 days or more) put in 57 percent of the total
man-days and received 54 percent of the total cash wages in 1945.
Although in terms of total wage costs the wages of this group were
the most significant, the survey is of special interest from the view
point of farm income and employment because of the light it throws
on the employment and wages of the seasonal and part-time workers.
The latter group constituted over four-fifths of the hired farm work
force in 1945.
Those who did hired farm work for only a short period during the
year averaged higher daily cash wages than those who worked the
year round (table 2). In 1945, the cash wage per day of those who
worked less than a month averaged $4.20, those who worked more
than a month but less than half the year averaged $3.35, while those
who worked 6 months or more averaged $2.75. Among the causes of
these differences are no doubt the seasonal rise in wage rates during
peak demands for labor and the relatively small value of perquisites of
seasonal workers. For example, for the group of year-round male
workers covered in the survey, the average value of perquisites more
than offset the relatively low average cash wage received by this group.
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WAGE AND H O U R STATISTICS
T able 2.— Days of work and cash wages earned by hired farm workers in 1945 1
D ays of farm work in 1945
Aver
age
days of
farm
wage
work
Average cash
farm wages
T otal
Females
M ales
B oth sexes
Per
day
worked
Aver
age
days of
farm
wage
work
Average cash
farm wages
T otal
Per
day
worked
Average cash
farm wages
A ver
age
days of
farm
wage
work
T otal
P er
day
worked
T otal *___________________
95
$284
$3.00
115
$353
$3.10
39
$93
$2.35
U nder 25 d a y s____________
25-149 days
................. .......
150-249 d a y s ..........................
250 days and over---- ---------
11
59
195
321
45
197
524
914
4. 20
3.35
2.70
2.85
11
62
199
321
54
220
571
923
5.00
3.55
2.85
2. 85
11
53
174
(3)
31
143
290
(3)
2.80
2. 70
1.70
(3)
Source: U . S. D epartm ent of Agriculture, Bureau of A gricultural Economics, E m ploym ent and Wages
of the H ired Farm W orking Force, in 1945, June 1946; m imeographed.
1 E stim ates relate to persons 14 years of age and over in the civilian noninstitutional population in January
1946, who did farm work for wages in 1945.
2 T otal covered in survey who reported both on tim e worked and on cash wages.
s Averages n o t shown because fewer th a n 50,000 female workers were estim ated as w orking 250 days
and over.
In spite of the fact that a greater proportion of the women worked
for very short periods, their average daily cash wage was only $2.40,
or 23 percent under the average of $3.10 for men. The disparity was
greater for short-time workers than for all workers. An important
factor in the lower national average for women is that women agricul
tural workers are heavily concentrated in the South, where farm wages
are lower than in other major regions.
Only 1 percent of the workers included in the survey earned as much
as $2,000 in cash wages in 1945. Two-fifths of the male workers and
nearly three-fourths of the female workers earned less than $100 in
cash farm wages. Those in the lowest brackets were mostly part-year
workers.
The annual earnings of the majority of full-year workers did not
even approach the $2,400 a year ceiling set in the general farm wagestabilization program. For example, half of the group working 250
days or more made less than $815 in cash wages during the year.
Only 6 percent made $2,000 or more.
Perquisites Received by Hired Farm W orkers in 1945
For many years prior to the survey under discussion, no new infor
mation had been obtained on a Nation-wide basis regarding the
frequency with which farmers furnish noncash wages or perquisites
and their value. This led to divergent opinions as to the importance
of such practices as they affect wages both as cost to the farmer and
as income to the worker.
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The survey of January 1946 throws light on the extent and size of
noncash as well as cash wages. One of the uses of such data is to aid
in comparisons of agricultural and nonagricultural wages.3
T a b l e 3 .— Average
uages and value of major perquisites received by farm uage uorkers
in 1945 i
Average farm wages of—
W orkers reporting major
perquisites
All workers
W orkers by sex and num ber of
farms worked on in 1945
T o ta l2
Cash
wages
Value of
major
perqui
sites
T o t a l2
Cash
wages
W orkers
reporting
no m ajor
Value of perqui
sites—
major
Cash
perqui
wages
sites
T otal w orkers_______________
$324
$284
$44
$622
$476
$146
$202
Males_______________________
Fem ales______________ ______
407
97
354
92
58
5
666
173
511
123
155
50
261
89
W orked on 1 or 2 farm s_______
W orked on 3 or more farm s____
336
262
292
249
50
14
653
390
497
324
156
66
196
229
1 Source: U. S. D epartm ent of Agriculture, Bureau of A gricultural Economics, E m ploym ent and Wages
of the H ired Farm W orking Force in 1935, June 1946; m imeographed. E stim ates relate to persons 14 years
of age and over in the civilian noninstitutional population in Jan u ary 1946, who did farm work for wages in
1945.
2 T otal farm wages as used here represent only th e sum of the cash wages and the value of the m ajor per
quisites (housing, lodging, meals, or farm products) furnished the w orker w ithout charge. T he total does
not include any earnings in 1945 from nonfarm work or self-employment. The averages shown in the first
colum n are not exactly equal to the sum of the averages shown in the next two columns because they are
based on slightly different num bers of w orkers reporting cash wages and value of m ajor perquisite items.
The January 1946 survey revealed that only 29 percent of the 1945
farm wage workers reported they were furnished at least one of three
major perquisites (housing, meals, and farm products) without charge
by farm operators who employed them (table 3). Seventy-one per
cent of all hired farm laborers who worked at least 250 days during
1945 reported receipt of one or more major perquisites, in contrast
to only 14 percent of those who worked for less than 1 month.
About 35 percent of the men reported receipt of perquisites in con
trast to only 10 percent of the women. Perquisites were less fre
quently given migratory workers than those who worked on one farm.
Housing and meals or one of the two were furnished an estimated
865,000 farm wage workers for a part of 1945. Of this group 200,000
were also provided food products by the operator without charge.
Another 50,000 workers who did not get housing were given food
products from the farm.
The 916,000 workers receiving one or more of the major perquisites
reported an average value of $146 for the perquisites provided during
the year. This amount was equal to 31 percent of their average
cash wages of $476 received for farm work.
2 T h e valuations of perquisites were obtained from the w orker or a person in the w orker’s household report
ing for the worker. T h e instructions specified th a t valuations of perquisites furnished should be m ade on
th e basis of rents or prices the w orker w ould have had to pay if he had rented or purchased the same services
or products of th e same quality in th e locality where he worked.
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231
When related to the total number of persons who did farm work
during the year, the average value of perquisites is far below $146.
On the aveiage, all persons who worked on farms for wages during
1945 received a noncash wage of $44 ($9 worth of farm products and
$35 in lodging and meals). The two together were only 14 percent
of the average wage of all workers, including both cash and perquisites.
The average cash wage of workers receiving perquisites ($476) was
more than twice as great as the average for workers not reporting
perquisites. This was mainly because most of those who receive per
quisites are regular workers. For example, although males who
worked as much as 250 days represented only about two-fifths of the
workers reporting perquisites, they received almost three-fourths of
the value of lodging, meals, and farm products.
w w w -
N ew P ro g ra m s fo r F a rm L a b o r S ta tistic s
1945 ¿he Bureau of Agricultural Economics inaugurated two new
types of farm labor surveys. These new programs make available for
the first time periodic farm wage and labor force statistics on a basis
that will facilitate comparisons not previously possible between farm
and nonfarm wages and employment. The new surveys are of special
importance in view of the attention being focused on the intenelationship between the employment and earnings of hired farm and
nonfarm workers. This increasing interest results broadly from
two factors.
First, there is growing recognition of the fact that the welfare of
farm and nonfarm workers is interdependent. In times of declining
industrial production and employment, for example, the reduced
demand for farm products and the decline in nonfarm employment
opportunities exert downward pressures on farm wages and income.
Nonfarm workers seeking farm employment intensify the competition
for farm jobs. The dearth of nonfarm employment opportunities for
farm workers in turn compels a greater proportion of the farm popula
tion to remain on the land, thus aggravating the unbalance between
farm population and resources. Second, the recent growth of laigescale commercialized farming, requiring sizable groups of hired
workers, has led to the concentration of the hired farm work force on
a comparatively small proportion of farms. This trend, accompanied
by growing unionization in agriculture, has brought into closer rela
tionship the employment and wages of certain segments of the farm
and nonfarm work force.
The historical farm wage rate series, published quarterly since 1923
and earlier on an annual basis by the Bureau of Agricultural ^Eco
nomics, are based on tabulations by a group of farmers known as “crop
In
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
reporters” who report through mail questionnaires the average wage
for their locality. Wage data in the historical series are limited to
rates per month and per day with and without board. Piece rates
are indirectly covered through an instruction to the crop reporter to
include average daily earnings of piece workers in reporting the daily
rate. The value of perquisites is not included in the wage rate.
In the new program, however, data are obtained on the time worked
and wages of individual workers, in addition to the wage rate. Data
are also available from time to time on perquisites or noncash wages.
These throw new light on the wage structure in agriculture.
It stands to reason that the farmer can report more accurately a
particular wage rate in a specified week for a worker whom he em
ploys than he can report the level of farm wage rates being paid on the
farms in his locality, as required in the historical series. Moreover,
wage data based on individual reports reveals wage variations as well
as averages. Similar information has been available for a long time
for nonagricultural industries, but not for agriculture.
In addition, in the new series the data on time worked and cash
earnings of each worker makes possible the conversion of any type of
wage rate into its hourly or daily hash equivalent wage. Thus, an
average wage can be computed for a group of workers doing different
types of work. In turn, this permits wage comparisons among
groups of hired workers classified according to age, sex, race, type of
work, and duration of employment, which are essential for the analysis
of wage differentials and for comparisons between agricultural and
nonagricultural wages and employment.
The new surveys are of two types. The first type, entitled “Survey
of Wages and Wage Rates in Agriculture,” covers two different kinds
of data, including (1) surveys, made at irregular intervals, of wages
and wage rates of seasonal farm workers in special crop areas in various
States; and (2) a quarterly national enumerative sample survey,
with regional break-downs, of wages and related data reported by
approximately 20,000 farmers for each hired worker in their employ
during the reporting week. The second type, an annual national
sample survey by the Bureau of the Census for the BAE, is made to
determine wages and labor-force characteristics of individuals who
have done any farm work for wages during the year.
The results of the first of the surveys of wages and wage rates of
seasonal farm workers in special crop areas were published in May
1945. By the end of 1946, surveys had been completed covering
various crop areas predominantly in California, but also in about 15
other States. No special crop area surveys are planned for 1947.
The three enumerative national wage surveys made in 1945 were
conducted in March, May, and September. A special study relating
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WAGE AND H O U R STATISTICS
233
to perquisites scheduled for release early in 1947, was made in con
nection with the May survey. Only one national survey was com
pleted in 1946 (July). Beginning in 1947, however, quarterly
national surveys are planned. Preliminary results of the July survey
appeared in the September issue of Farm Labor, a monthly release of
the Bureau of Agricultural Economics.
The first annual sample survey by the Bureau of the Census for the
BAE was taken in January 1946. Approximately 25,000 households,
the coverage used in the monthly survey of the labor force, were can
vassed for information on the employment, wages, and perquisites for
each person in the household who reported that he or she had done
some farm work for wages in 1945. The annual study, in contrast to
the surveys of wages and wage rates, is focused on important worker
characteristics such as age, sex, veteran status, residence, and employ
ment status. The data obtained from this survey casts new light on
the make-up of the entire farm working force during the course of a
year. The major results of this first annual survey are summarized
in the preceding article (page 225).
E r ra tu m : T h e P h y s ic a lly Im p a ire d W o rk e r in In d u s try
In the December 1946 issue of the Monthly Labor Review (p. 919,
third line), reference is made to World War I; it should be World
War II.
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Economic Policy
P r e s id e n t’s E c o n o m ic R e p o r t to C o n g ress 1
P r esid ent T r u m a n , in his first economic report to Congress,2referred
to the high employment level of 1946 and advocated measures for
the maintenance of the country’s unprecedented strength and pros
perity throughout 1947. He stated that economic collapse and
stagnation such as started in 1929 need not and must not happen
again.
Review of 1946
At the 1946 peak, the aggregate number in employment—58 mil
lion civilians and including the military over 60 million—substantially
met the objectives of the Employment Act. Total production also
reached a peacetime record volume in 1946—about 50 percent above
the 1939 predefense volume and 15 percent below the wartime high.
This indicates, the President stated, that once peacetime production
is in full swing, the standard of living will far surpass anything pre
viously experienced.
After price controls were eased and then dropped, the price level
rose substantially. The price rise in the second half of 1946 reduced
purchasing power, and commensurate increases in income were not
granted to the mass of the people. Business profits increased during
the year, and removal of the excess profits tax added further to
profits after taxes. Between industries and between firms, profits
were extremely uneven, and it must be remembered that the business
dollar, like the consumer dollar, shrank owing to the price rise.
Nevertheless, business generally is receiving exceptional profits.
Since the last predefense year of 1939, the economic budget (which
shows the distribution of income and expenditures among consumers,
business, and Government, and imports and exports) has been trans
formed. The significant feature is that the great increase in the
1 T he Economic R eport of th e President T ran sm itted to th e Congress on January 8,1947. W ashington,
1947.
2 U nder the term s of the E m ploym ent Act of 1946, Public Law N o. 304 (79th Cong., 2d sess.), the Pres
ident is required to m ake such a report; for discussion, see M o n th ly L abor Review, A pril 1946 (p. 186).
T he Council of Economic Advisers, which is to assist and advise the President in the preparation of the
report, issued its first report in D ecember 1946; a sum m ary of th is report appears in the M o n th ly Labor
Review, Jan u ary 1947 (p. 43)
234
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ECONOMIC POLICY
235
total economic budget reflects the change from an economy of sub
stantial unemployment and moderate production to one of unparalled
employment and production. Progress has been such that thinking
for the future cannot be based on the distant past. As a point of
departure, tentative estimates were cited of the rates of expenditures
and receipts in the economic budget at the end of 1946. At that
time Government expenditures had been reduced; business expendi
tures had been increased; consumer expenditures had been raised, but
largely because of the price rise; and consumer incomes which had
risen less than expenditures actually declined in real terms. Such
trends made the position of consumers of central impoitance in a
consideration of 1947 prospects, the President concluded.
Goals for 1947
The employment, production, and purchasing power needed to
carry out the policy of the Employment Act were stated to be as
follows: “The purposes of the act would be substantially achieved
if during 1947 we sustain employment at about the 1946 levels or
slightly higher . . .
It is not yet clear that our basic industries are
fully adjusted to a 200-billion-dollar peacetime economy . . . Per
haps an over-all increase of 5 percent might be a reasonable objective
for maximum production. . . . Only through adjustments both in
the price and pay structure, made with discriminating regard for
specific circumstances rather than on an over-all national basis, can
we achieve a sustained demand for the maximum output which the
American economy is able to produce this year.”
FAVORABLE AND UNFAVORABLE FACTORS IN 1947
Consumer demand has both favorable and unfavorable prospects.
A high demand for items that have been scarce—including housing,
automobiles, appliances, and many housefurnishings—is expected to
continue. Availability of such durable goods will result in a smaller
proportion of consumer expenditures for nondurable goods. This, in
turn, will have the favorable effect of tending to reduce prices for the
latter goods in 1947.
“Disposable” income (after taxes) was 145 billion dollars in 1946
an average of $1,026 per capita (compared with an average of $497 a
year in 1935-39). Even though higher prices absorbed a large part of
this increase, real purchasing power in 1946 substantially exceeded the
average in the prewar period, and the average family was buying
more "food, clothing, and other things than before. This and other
consumption—particularly of durable goods must be maintained
and expanded in 1947, if the year is to be one of maximum production.
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Disturbing trends in consumer purchasing power are the decline in
weekly take-home pay of the average factory worker, who could buy
only about as much with $46 in October 1946 as he bought with $35
in April 1942; the drop of savings by the end of 1946 to 10 percent of
disposable income (little more than the 1935—39 proportion) from 28
percent in the war year 1944; and the recent rapid increase in install
ment and credit buying.
Business investment at least equal to the annual rate prevailing in
the last quarter of 1946 is desirable to maintain maximum production
and employment in 1947. Abundant aggregate funds, including
ample bank credit, and the profit outlook favor the necessary invest
ment. The fear of a general drop in consumer demand and a re
currence of serious labor-management disputes could adversely affect
business confidence and thus business demand.
About the same net balance of international transactions is antici
pated in 1947 as in 1946. The intense demand of foreign countries for
United States goods has been a factor in the high level of employment,
production, and purchasing power in this country. Receipts from
foreign sources have run at about 15 billion dollars a year compared
with a 4-billion-dollar prewar average. If recession of domestic de
mand occurred, exports could be increased to meet unsatisfied foreign
demand. But, if fears increase concerning this country’s willingness
and ability to buy and lend abroad, foreign countries may stretch out
their dollar resources over a longer period. Such action would reduce
exports from the United States.
Revenue policies are designed to balance the budget and achieve a
surplus toward the retirement of the national debt. The President
anticipated a net reduction of about 5 billion dollars in governmental
expenditures in 1947.
Recommendations of the President
With the removal of emergency price controls, business, labor,
farmers, and consumers have the main responsibility for prices and
wages. “ The Government can point out dangers seen from the per
spective of the whole economy,” but others must apply the correctives
in large part. In the immediate future, price reductions are especially
needed, the President said, on many items of food, clothing, housefurnishings, and building materials, for which prices have risen out of line.
Timely and orderly reduction will sustain rather than destroy markets.
Farmers’ prices will fall somewhat from the high level of 1946, but
existing price supports afford protection against a severe decline.
Labor should refrain from demanding excessive wage increases—for
its own protection and that of the country. No uniform rule can
govern price or wage questions; adjustments of both must be made
with discrimination.
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ECONOMIC POLICY
237
The Government will help to maintain wages and prices in balance
by avoiding procurement policies that would stimulate price increases
or prevent reductions; by speedier disposal of surplus goods; and by
vigorous application of the antitrust laws. In addition, legislative
action was recommended to continue rent control, to raise wages under
the Fair Labor Standards Act, to adjust social-security benefits, and
to speed house construction. While the President urged retention of
1946 taxes, he asked for careful study in preparation for wise action
at a future time.
On labor-management relations, reference was made to the proposals
in the message of the President dealing with the state of the Nation.3
However, the need for labor-management cooperation and for sound
collective bargaining was reiterated.
Long-range programs should provide for utilization of the productive
potential to prevent this country from returning to an unstable 100billion-dollar economy when it has the possibilities and requirements
of a sustained 200-billion-dollar economy.
In making maximum use of the labor force—the Nation’s greatest
productive asset—the workers’ standards of health, education, secu
rity, and personal and political freedom must be protected. Skills
should be developed and used and discrimination of all kinds
abolished.
Under the free-enterprise system, private enterprise can be relied
on to expand the productive base of the economy. Nation-wide con
certed action is needed also to remove the fear that, periodically, de
mand will be inadequate to absorb maximum production. Govern
ment can furnish the greatest incentive by helping to prevent depres
sions. In the agricultural field, the Government’s aim should be to
use the resources effectively and to conserve them; to preserve the
family sized farm and to prevent another agricultural depression; to
encourage plenty and not scarcity; and to support farm incomes at
reasonable levels. The Government should examine the contribution
it can make toward regional development. Federal programs of
grants-in-aid to State and local governments have an important func
tion. Public works expenditures are large, but the President stated
that their value as a force for stabilizing the entire economy has been
overemphasized in recent years. On research and patents, he stated:
“The continuance of a research program of large magnitude for many
years to come, together with the fact that many of the inventions
resulting from it will be patentable, calls for action to protect the
public interest in inventions and discoveries resulting from expend
itures of public funds.”
3 For a sum m ary, see L abor R ecom m endations in P resid en t’s Message to Congress, p.255_of this issue.
728607— 47—
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Encouragement of free competitive enterprise is imperative, the
President stated, and urged extended legislation in this field as well
as for provision of increased appropriations to enforce existing anti
trust laws. Attention was also directed to the need for affirmative
action to enlarge the opportunities for efficient and enterprising small
businesses.
The recommended program for the promotion of welfare, health,
and security included increases in the amount and duration of unem
ployment benefits; extension of coverage of old-age and survivors’
insurance and extension of unemployment compensation to em
ployees of all establishments, regardless of size, in the industries now
covered; and a program of medical care and disability benefits. From
an economic standpoint, the President stated, it would be desirable
to finance a part of the social-security system from the general budget,
and he asked that Congress consider the economic and social aspects
of various methods of taxation for this purpose.
In the long run, the President stated, this country can sell to others
only if it buys from them or invests funds abroad. Both foreign trade
and foreign investment are vital to maintenance of a dynamic economy
at home. Many countries are fearful of economic depression in the
United States as a threat to themselves. Many might prefer economic
insulation and smaller trade to a close relation with an unstable United
States; however, closer relations with a stable American economy
operating at high levels would be chosen in preference to either of
the foregoing alternatives. Fostering of international cooperation
that has already started, he continued, will depend to a great extent
on this country’s attitude in connection with the reciprocal tariff
negotiations scheduled for 1947.
A blending of all practical programs in wise proportions is needed
for the successful stabilization of the economy at the highest feasible
levels. The foregoing long-range policies are designed to strengthen
the structure of the economy and reinforce it to resist economic
fluctuations. Continuing policy is necessarily of a long-term char
acter, stated the President, and, “ fortunately, we have time in which
to plan deliberately and wisely, and in which to secure the cooperation
of all our citizens in driving toward our common goal.”
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L a b o r P o lic ie s a n d P ro g ra m s in J a p a n U n d e r th e
O c c u p a tio n 1
basic objective of the new labor policy in Japan, as stated in
the Final Report of the Advisory Committee on Labor in Japan,2 is
the “development and consolidation of a new dignity and status for
labor.’’ This is regarded by the Committee as not only in the
economic interest of the millions of Japanese wage earners, but also
necessary to the evolution of a peaceful and democratic nation and to
safeguard against any future revival of militarism and autocracy.
The development of new labor programs and institutions in Japan
ranks with the other major political, economic, and social reforms
which are now being undertaken in that country, such as the realign
ment of political forces, the destruction of the monopolies, educational
reform, and land reform.
The Committee recognized the interconnection between these
various spheres as follows: “Labor policies and programs in Japan
cannot be isolated from the framework of social and economic institu
tions in which such programs must operate.” It was further stated
that in labor matters, as in all other fields, “laws and regulations,
policy statements, and operating procedures are no more than a blue
print from which a living and growing program can be constructed.”
In almost all of the proposals, emphasis was placed on the need
for education in labor matters of Japanese workers, employers, and
Government officials. The development of a complete and adequate
labor program is a long-range process. Any progress toward such
a goal should be viewed against the background of conditions in
Japan at the end of World War II:
T he
After a decade of suppression, there were no genuine labor unions in existence;
such basic rights as freedom of speech and self-organization were denied; prewar
labor leaders had been liquidated or silenced; and all normal means of expression
for workers had been blocked by police surveillance, repressive laws, and the
Government-sponsored “labor front” organizations. Employers and workers
were totally unprepared for democratic labor relations, and Government agencies
were ill-equipped for their new tasks. In such circumstances, neither a mature
and balanced labor movement nor a perfect system of labor laws and adminis
tration could be created overnight.
1 Prepared by Oscar W eigert of the B ureau’s Foreign Labor Conditions Staff.
2 Final Report of th e A dvisory Committee on Labor: Labor Policies and Programs in Japan.
Tokyo,
General H eadquarters, Supreme Com m ander for the Allied Powers, 1946. T he Com m ittee was recruited
by request of th e Supreme Com m ander for the Allied Powers in Jap an early in 1946 and made its investi
gation between F ebruary and Ju ly 1946. M em bers of the C om m ittee were Paul L. Stanchfield, chairm an;
B enjam in Aaron, John R. Abersold, Leonard Appel, Lyle S. Carlock, E dw ard D. Hollander, W illiam H .
M cPherson, H elen M ears, John J. M u rp h y , T illm an M . Sogge, Oscar Weigert, and J. Fletcher Wellemeyer.
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Under the new labor policy the destructive effects of war must be
overcome. It is even more important to do away with the whole
dead weight of a feudal tradition which survived in Japan underneath
the veneer of westernization and which was expressed in the growing
industrial segment of Japanese society in a peculiar paternalistic
ideology, based upon “the family system.” 3 The Committee recog
nized that the Japanese tradition in labor matters cannot simply be
replaced by a ready-made western scheme; the real issue is to find a
healthy balance between existing institutions and practices and the
standards and practices which the West has to offer. Accordingly,
“basic principles and objectives will be much the same—but the
precise form and institutional machinery for furthering these objectives
cannot be expected to be identical.”
In line with the general policies of the occupation the Committee
considered it particularly important that the Japanese themselves
should work out the details of future labor programs through demo
cratic processes. From the Occupation Forces the Committee
expected constant vigilance and detailed attention to assure that
desirable changes are not blocked by political forces related to the old
regime; that government labor agencies are properly organized and
adequately staffed; that unsympathetic personnel are excluded; that
adequate channels of education and opinion are kept open for workers
and employers; and that undemocratic tendencies in unions and man
agement do not reappear.
Beyond such measures of control and support of Japanese initiative,
the Committee considered it to be the function of the Occupation
Forces (1) to indicate the general direction which changes of labor law
and policy should take and (2) to intervene in emergency situations
necessarily arising under the unsettled conditions of the postwar
period. The primary concern of the Committee was to help in defin
ing long-range policies, but a challenge was also created by current
needs, resulting from such factors as the inflation of the currency, the
critical food situation, the lack of housing facilities, and the influx of
millions of repatriates. The menace of large-scale unemployment in
the future cannot even be estimated as long as no decisions have been
reached on Japan’s economic future.
When the Committee began its studies in February 1946, a great
deal of the ground work for new labor programs had already been laid
by directives issued in Washington and in Tokyo. Repressive laws
and other barriers to democratic labor organization had been removed;
the right of unionization and of collective bargaining had been estab
lished, for the first time in Japanese history, by the Trade Union Act
3
For a discussion of the family system (Kazoku Seido) and its application in industry, see Industrial
L abor in Jap an (International Labor Office, Studies and R eports Series A, No. 37, Geneva, 1933, p. 46).
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of December 1945; the growth of trade-unions and the practice of
collective bargaining had been encouraged by the Supreme Com
mander for the Allied Powers ;4 and prewar protective labor legislation
was reinstated. These early steps were a “sound basis” for the
Committee’s proposals.
A Program for Labor-Management Relations
Regarding labor-management relations, more than any other labor
field, basic policies had already been defined when the Committee
started its investigations. To carry out these policies, 11 major lines
of action had been initiated by the Occupation Forces and, at its
direction, by the Japanese Government. As summed up in the final
report, they are:
(1) Recognition of the freedom of self-organization of industrial
and agricultural workers.
(2) Provision of legal safeguards for workers’ organizations in
carrying out legitimate trade-union functions.
(3) Positive encouragement to the development of labor organiza
tions, in the employment and labor policies of the Occupation Forces.
(4) The right of free assembly, speech, and press and access to
broadcasting facilities for trade-unions.
(5) Abrogation of laws and regulations impeding the organization
of unions or their legitimate activities.
(6) Release of persons imprisoned because of activity or “thought”
in connection with trade-union activity.
(7) Dissolutior of nationalistic workers’ organizations, such as the
“Sampo” and the “Romu Hokoku-Kai.”
(8) Encouragement of collective bargaining between unions and
employers.
(9) Establishment of machinery for dealing with industrial disputes
which could not be settled by direct, voluntary negotiation.
(10) Recognition of the right to strike except when work stoppages
would interfere with military operations or security, or directly
prejudice the objectives of the Occupation.
(11) Abolition of Japanese Government agencies which had served
to obstruct free labor organization and legitimate union activities,
and elimination from labor administration of individuals who had
held responsible positions in such agencies.
Under these policies, there were two main developments: legisla
tion and growth of unionism. In both fields, the Committee analyzed
the accomplishments and made recommendations for further progress.
4
A report of General H eadquarters in Tokyo dated June 30,1946, on the treatm en t of w orkers’ organiza
tions in Jap an after th e surrender, is added as Appendix A to th e C om m ittee R eport.
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Trade-Union A ct and Labor Relations Adjustment Act
The principal piece of postwar labor legislation—intended to be a
Magna Charta of Labor-Management Relations—is the Trade-Union
Act, passed by the Diet on December 21, 1945, and placed in effect,
with its accompanying ordinance, on March 1, 1946. The chief pur
pose of this measure was to encourage the development of democratic
trade-unions by establishing the right of organization and collective
bargaining. Without doubt, it had been successful in attaining this
goal. In the Committee’s opinion, however, the law contains some
provisions which appear inadequate or undesirable in comparison with
corresponding legislation of other industrial countries. Such provisions
would indeed be dangerous in some cases if they were administered
by an unsympathetic Government. The Committee’s main criticisms
of the law are these:
(1) It does not fully prevent employer domination or influence over
unions, through financial assistance or other means.
(2) It does not positively affirm the principle that the employer
shall bargain collectively with his employees in good faith, in an honest
attempt to reach agreement.
(3) The enforcement powers and procedures available to the labor
relations committees—which are the tripartite bodies charged with
carrying out the law—are inappropriate and insufficient.
(4) The majority-rule principle, which is essential to effective col
lective bargaining, is not embodied in the present law.
(5) The law places disproportionate emphasis on Government
supervision and controls over trade-unions, and permits governmental
interference to an extent not paralleled in most democratic countries.
(6) It contains a number of provisions which are superfluous rather
than dangerous, but should be eliminated for the sake of simplicity.
These criticisms are based upon a theoretical evaluation of the law,
upon the experience of the labor relations committees, and upon sug
gestions they submitted to the Advisory Committee. The Committee
recommended therefore that amendments to the trade-union law
should be drafted in the near future. It appears from a recent official
Japanese statement that the Government has actually started the
preparation of such a draft.
Meanwhile, the Trade-Union Act has already been supplemented
by the Labor Relations Adjustment Act, passed by the Diet in Sep
tember 1946 and put into force by imperial ordinance in October.
The new act which supersedes the Labor Disputes Conciliation Act of
1926 5places the primary responsibility for settling labor disputes upon
the parties involved. The Government may be called in to assist
e See L abor Conditions in Japan, M o n th ly L abor Review, October 1945 (p. 118).
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them. Under the law machinery is provided for conciliation, media
tion, and arbitration; arbitration is to be employed if both parties
agree to it in advance, or if it is provided for in a collective agreement.
Policemen, firemen, prison guards, and Government employees
engaged in administrative or judicial work are forbidden to strike.
A cooling-off period of 30 days after application for mediation is
established for labor disputes in what is called public welfare work.6
Members of the Advisory Committee participated in the discussion
of the bill, and the passage of legislation of this nature was regarded
as desirable by the Committee. It expressed, however, the view that
“the scope of compulsory arbitration should be kept to a minimum.”
Unionism in Japan 7
Outstanding among the Committee’s findings was the spectacular
growth of labor organizations in Japan after the defeat. The country
had no genuine trade-unions in September 1945. Within 4 months,
union membership had surpassed the prewar peak of 420,589 in 1936,
as shown in official reports in the Japanese Labor Gazette. During
the Committee’s stay in Japan, total membership had risen to nearly
2.7 million persons in 7,357 registered unions.8 About 30 percent of
the nonagricultural workers were estimated to be organized at that
time, compared with a prewar peak of 7.9 percent in 1931. Organiza
tion originated mostly within the individual plant, generally on the
initiative of some of the employees, but sometimes or the initiative
of the employer who wanted conformity with the prevailing trend.
At the time of the Committee’s investigation, union federations
were still in the early stages of development. Two national federa
tions had Deen created on an interim basis—The National Federation
of Labor (Sodomei) of which member unions are for the most part
influenced by the Social Democratic Party, and the Japanese Congress
of Industrial Unions (Zew Nihon Zambetso Rodo Kumiai) which
includes among its members Communist-influenced unions. These
political ties are frequently reflected in union policies, but both
federations, according to the Committee’s findings, include many
unions which are not dominated by any political party, and member« Public Welfare W ork, according to the legal definition, includes no t only w ork in public utilities, b u t also
in transportation, com m unication, public health, a n d medical treatm ent. T he G overnm ent,'in accordance
w ith a body representing m anagem ent, labor, and the public can extend the definition to any work “ the
stoppage of which will seriously affect the national economy or seriously endanger the daily life of the general
public,” b u t only for a lim ited tim e.
7 For a short sum m ary of earlier phases of unionism in Jap an , see L abor Conditions in Japan, M o nthly
Labor Review, October 1945 (p. 660). For a detailed discussion see IL O , Industrial Labor in Japan, op.
cit (p. 86).
8 Figures are for M ay 1, 1946. T h e unions continue to grow. T h e latest available Sum m ation b y th e
Supreme Com m ander of the Allied Powers of N on-M ilitary Activities in Japan (No. 13 for October 1946,
p. 164) reports more th a n 3.9 millions in 13.662 unions on September 1,1946 (prelim inary figures). Among
them were 40,442 agricultural workers, organized in 230 unions.
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ship in a union is usually open to all workers, regardless of political
affiliation.
In August 1946, after the Committee had finished its work, both
national federations held their formal inaugural conventions. Ac
cording to an official United States report, Sodomei’s convention
reaffirmed its support of the Social Democratic Party and adopted a
brief 3-point program calling for better wmrking conditions, techno
logical improvement of industry, and industrial democracy. The
Congress of Industrial Unions in its convention stressed its political
independence and accepted an 11-point program including a 40-hour
week, an extensive social-insurance system, and rehabilitation of the
economy. Both conventions adopted resolutions seeking member
ship in the World Federation of Trade Unions.9 Subsequently, the
congress tried to create a common front with the federation in some
of the major labor disputes which at this time originated mostly with
unions belonging to the congress and, later on, even offered to merge
with the federation. The response of the national federation to all
these approaches was generally negative.
Recently a third national federation—the All-Japanese Council of
Unions (Zew Nippon Rodo Kumiai Toitsu Sodouni)—was formed and
is trying to bring together the great number of nonaffiliated unions.
Its program is reported as including unification of the labor move
ment, democratization of industry, autonomy in union administra
tion, and elimination of interference by political parties in the tradeunion movement.
In making recommendations on trade-unionism, the Committee
took into account that the internal strength of the new Japanese
unions is far below their external development. Most members, and
even their leaders, have had little or no former experience in union
activities. Many members of local unions continue to look to man
agement for guidance and support. Local unions therefore frequently
include high company officials in their membership, although such a
practice is discouraged by the Trade Union Act.
The Committee found that some unions accept substantial em
ployer contributions to their funds, to a point that such assistance
threatens their independence. They did so largely because the
genuine financial resources of the Japanese unions are almost every
where entirely inadequate. Monthly union dues are not being
adapted to keep pace with the strong inflationary trend. There
seems to be no chance for the union movement to attain financial
independence and stability without throughly revising its prevailing
financial structure.
* Sum m ation b y th e Supreme Com m ander of th e Allied Powers of N on-M ilitary A ctivities in Japan
(No. 11 for A ugust 1946, p. 170).
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Union independence seemed to be endangered also by a recent
tendency of Japanese authorities, observed by the Committee, to
revive police interference with labor organizations, particularly in
connection with labor disputes. This attitude of the Japanese
Government is a return to prewar practices but is clearly contradictory
to the fundamental policies of the Occupation Forces. The Com
mittee recommended that—
police surveillance over labor be discontinued except for that normally required
to police public meetings. The gathering of information with respect to labor
should be a function of the projected Labor Ministry rather than the police.
Except where violence to persons or malicious property damage is involved,
infractions by trade-unions should be dealt with by civil rather than criminal
action wherever possible.
On this issue, the Committee called for administrative action.
Other union problems might be solved by the amendments to the
Trade Union Act suggested by the Committee, and which are under
consideration, as already stated. Equally important, in the Com
mittee’s opinion, are changes of attitudes and policies. They cannot
be assured by amendments to statutes or by present administrative
arrangements; education is necessary for union officials and members
as well as for employers and Government labor administrators.
Quite in accordance with the general point of view of the Japanese,
the Committee found all these groups extremely eager for information
about the experience of other industrial nations in union matters and
prepared to learn from that experience. Considerable informational
work had already been done by the General Headquarters Staff of
the Supreme Commander. The expansion of this work and its closer
coordination with the general development of labor policies and
programs was strongly recommended, and the following warning note
was given:
The development of sound labor relations and mature and constructive organiza
tion of workers and employers will depend to a considerable extent on the slow,
day-to-day process of education, and “learning by practice.” Neither SCAP
nor the Japanese Government should undertake to dominate this field, since what
is needed is self-education rather than indoctrination from above. They should,
however, provide a positive stimulus and opportunity for private educational
activities and remove any obstacles which might impede the free dissemination of
information and ideas.
Collective Agreements
Lack of experience and need for information and education are
particularly evident in the field of collective bargaining, according to
the Committee’s findings. In prewar Japan, collective bargaining
had developed even more slowly than trade-unionism. The largest
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number of written collective agreements ever reported as being in force
simultaneously was 122 in 1936 for the whole country; of the 136,000
workers then covered, 117,000 belonged to one industry, ocean ship
ping.10 The lag between the growth of organizations and the number
of collective agreements is again evident in the present phase of indus
trial relations, although substantial progress has been made recently.
The Committee reported only 212 such agreements registered with the
Welfare Ministry as of May 30, 1946. According to the latest avail
able official Japanese statement, which has not yet been published,
this number had grown to 1,501 as of October 1946. These agree
ments were spread more equally throughout the various industries
than in the prewar period. The number of workers covered was
reported as 1,131,179—more than a fourth of the workers estimated
to be organized at this time.
The Committee found that, contrary to the practice in other coun
tries, negotiations frequently do not result in a written agreement.
Many unions are operating without any written agreement. Dis
pute settlement is often of an informal character and without specified
duration.
As regards written agreements, certain typical weaknesses were
observed which may be summed up as follows:
(1) All the agreements analyzed by the Committee covered only
those terms of employment regarding which the union has sought
some modification of existing practice. No comprehensive agree
ment covering all major terms of employment was found.
(2) The Committee noted a confusing tendency toward the con
clusion of separate agreements on different, but interrelated, subjects
by the same parties.
(3) Many agreements provide that the unions shall have a voice
in certain types of decisions, e. g., hiring, firing, and transfer, but fail
to set any definite standards with the result that negotiations become
necessary in each individual case.
An illustration of the lack of precision prevailing in collective agree
ments is found in the frequent provisions for some degree of joint
management of the enterprise. In most of these cases the agreement
establishes some kind of a joint labor-management committee and
gives an indication of the types of questions to be considered by such
a committee; but the definition of the issues that are within the juris
diction of the committee is usually vague, and in some cases it is not
even specified whether the decisions of the committee shall be advisory
or binding.11
10 See M onthly L abor Review, October 1945 (p. 662).
>i T he creation b y collective agreem ent of such joint committees, b u t also the confusion concerning their
functions and rights, were already characteristic of industrial relations in the prew ar period; see IL O ,
In dustrial L abor in Japan, op. cit. (p. 59).
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One of the most serious omissions in every labor agreement was
the complete absence of any provision for special procedure in the
peaceful settlement of disputes about the interpretation and applica
tion of agreements. This omission might be explained by a tradi
tional Japanese inclination to avoid formal decisions about right and
wrong in individual cases and to prefer the informal settlement of
conflicts. Under modern industrial conditions, however, greater use
of formal grievance machinery, established by the contract itself for
this purpose, would seem to be extremely valuable.
The Committee recommended that “ unions or employers be urged
to incorporate the solution of every dispute involving general terms
of employment in a signed agreement,” in the belief that compre
hensive agreements would gradually emerge from such limited agree
ments and that such a practice would “ expedite the development of
efficient labor relations.”
Labor Disputes
Aside from its proposals concerning the labor disputes adjustments
bill and the elimination of police activities in labor disputes, the
Committee limited itself to an analysis of the facts regarding industrial
disputes. Its main findings were (1) that “labor disputes have been
far fewer in number than would normally be expected during a period
of extensive unionization;” 12 (2) that those labor disputes that have
occurred have seldom resulted in any significant interruption of pro
duction; and (3) that where work actually has been stopped such
stoppages were usually only of short duration.
Instead of stopping work, unions have frequently used a unique
method known as “production control,” whereby the union tem
porarily operates the establishment and top management officials are
either directed by the union or locked out. Considerable controversy
has raged in Japanese circles about the legality of “production
control.” The Committee believed that the Japanese judiciary is
the only proper agency to determine the legality of the “production
control” technique under existing law; in the future its legality could,
of course, be determined by legislation. The Committee endorsed
the policy of the Occupation Forces in stating that 1the question of
government policy regarding the practice of production control as a
12
Sum m ation of N on-M ilitary A ctivities in Japan (No. 12 for September 1946, p. 154) shows 1,145 disputes,
Jan u ary through Ju ly 1946, d istributed b y in d u stry as follows: M ining, 121; M anufacturing, 533; T rans
p o rta tio n and C om m unication, 101; Teaching and liberal professions, 26; and O thers, 364. These disputes
involved 1 152,032 workers. A reliable, b u t no t y e t published, report indicates th a t a total of 1,900 labor
disputes occurred from A ugust 1945 through October 1946 w ith 1,744,428 workers involved. According to
the Sum m ation of N on-M ilitary Activities in Jap an (No. 13 for October 1946, p. 166) the m onth of October
1946 was “ m arked by th e m ost w idespread strike a ctiv ity since the surrender.” In N ovem ber, strikes fell
sharply in num ber and im portance.
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strike technique is a matter for exclusive determination by the
Japanese.” 13
A New Wage Policy for Japan
Proposals of the Committee as to wage policies in the present
emergency are not included in the final report. They were directed
toward the establishment of wage controls as part of a broader pro
gram which would combat all aspects of inflation and effectively
stimulate production. In the Committee’s opinion, fundamental
changes of the whole wage structure will become necessary as the
Japanese economy is stabilized. Preparatory to these changes, the
Committee proposed two immediate legislative actions: (1) It
recommended a legal minimum wage as part of the new protective
labor legislation which is now under consideration and of which more
will be said later on; and (2) it strongly urged a provision in the same
statute forbidding wage discrimination against women.
The low level of wages and salaries in Japan was a frequent subject
of international discussion in the prewar period. The average wage
of Japanese industrial workers for some years preceding World War II
was approximately 2 yen a day.14
Evidence exists, in the Committee’s opinion, that wage rates and
earnings were maintained at low levels in spite of relatively high
productivity. This was the policy of the dominant group in Japan
which sought to stimulate exports of Japanese products in order to
further its militaristic goals. The demand for armament production
led, on the other hand, to the establishment of minimum wage rates
in certain industries by wartime statutes which had not yet been re
pealed. However, no effort is being made to enforce these provisions.
Prices and costs of living have increased so considerably under the
impact of inflation that levels set in 1940 are now entirely unrealistic.15
No definite wage level can be established before the present inflation
is ended. Then, Japanese labor must be protected against a return of
the traditional policy of substandard wages, and a sound minimum
wage will be of vital concern. The legal authorization for the program
recommended by the Committee should be broad and flexible. Prepa
ration for application by the Japanese Government should include an
13 A rem arkable case of production control was reported in the Sum m ation of N on-M ilitary A ctivities in
Jap a n (No. 12 for Septem ber 1946, p. 156). In this case, th e employer had shut down operations as unprof
itable. After a period of “ production control,” th e com pany acknowledged th a t the union had demon
strated th e possibility of profitable operation. M anagem ent resum ed production under an agreement
providing for a joint managem ent-labor council.
14 See M o n th ly Labor Review, October 1945 (p. 655). This wage was roughly equivalent to $1.00 in
U uited States currency a t the prew ar p a rity rate.
15 According to th e Sum m ation of N on-M ilitary A ctivities in Japan (No. 13 for October 1946, p. 169)
“ wage earners’ incom e generally was still far below th e cost of living” in October 1946.
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intensive study of all the questions of method and of substance inherent
in a national minimum wage policy.
The general practice of paying lower wages to women than to men,
even when the duties of the job are identical, appeared to the Com
mittee as “ one of the worst features of Japan’s traditional wage
structure.” Up to about 1930, the number of women in factory em
ployment in Japan exceeded that of men; even in 1937, when the
armament industries already outranked the textile industries, more
than 40 percent of all factory workers were women. During all these
years, women’s wage rates and earnings were substantially lower than
those of men, not only in national averages, but also within individual
industries and occupations.16
Numerous economic and social reasons accounted for this pro
nounced discrimination against female workers. It is closely con
nected with the subordinate position which women traditionally have
in Japan. By asking for a statute establishing the principle of equal
pay, the Committee acted in accordance with the general objectives
of the occupation.
Basic wage rates in most Japanese industries also vary according to
age, marital status, and length of service. The basic wage rate, on
the other hand, often represents only a minor portion of total earnings,
because of the payment of several varieties of special allowances and
bonuses. Particularly frequent are family allowances for workers
who have large families to support; premiums for length of service;
payments for regular attendance at work; and, lately, also special
“ price allowances” designed to compensate for the increasing cost of
living. In addition, several types of quarterly or semiannual bonuses
are being paid, frequently not on any rational basis or in accordance
with any established plan, but—as stated by the Committee ‘ gov
erned by the whim of the employer.”
Other complicating factors are the frequent use of payments in
kind and the provision, especially in the textile industry, of board and
lodging as part of compensation.
The complexity of the Japanese wage structure is only partly the
result of wartime measures and of inflation. Wage supplements of
various forms were prevalent in the prewar period as were also pay
ments in kind and provision of board and lodging.17 The wage struc
ture reflects the feudal philosophy of wages, aiming not so much at
is M onthly Labor Review, October 1945 (p. 655), gives th e average daily wage of males as about $1.25 and
th a t of females as about 75 cents or less for some years preceding W orld W ar II; detailed figures of male and
female wages w ithin industries are given in table 5 (p. 656) and in IL O , Industrial Labor in Japan, op. cit.
(p. 200). In A ugust 1946, average daily wages in m anufacturing were 26.42 yen for male workers and 11.74
yen for female workers, according to Sum m ation of N on-M ilitary Activities in Japan (No. 13 for October
1946, p. 170). N o exchange rate has as yet been established for th e yen.
17 See IL O , In d u strial Labor in Japan, op. cit. (p. 196 if.).
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compensation for the productive effort as at assuring the subsistence—
on a very low level—of the employee and his family, and at rewarding
him for his loyalty to the employer. The complexities of this system
“ not only tend to confuse collective bargaining but also—especially
through age and sex differentials—to encourage excessive use of child
labor and women at substandard wages.’’
While the Committee left the details of the necessary reform to be
worked out after further studies, its general conclusions were stated
in the following way:
Two long-range goals—to be achieved mainly by means other than legislation—
should be (a) to simplify the wage and salary structure by minimizing the impor
tance of special allowances not included in the basic wage, and (b) to tie the
basic wage rate as closely as possible to the nature of the work performed, rather
than to personal characteristics such as age and sex, etc. It is recognized that
family allowances and other special payments may be necessary and useful during
the present emergency; but after the emergency, the Committee believes that
a sound economy will be best promoted by relating compensation as closely as
possible to individual productivity.
If the bonus system survives in some form—it seems to be partic
ularly rooted in the Japanese tradition—it should be regularized and
embodied in profit-sharing plans or in other contractual arrangements.
The Future of Protective Labor Legislation
The Committee found that the extensive and complex body of
protective labor laws and regulations evolved in Japan over a period
of several decades had been largely suspended during wartime. These
rules have been restored to their prewar status—on paper, at least.
Their provisions cover most of the subjects dealt with by protective
legislation in other industial countries, such as safety and hygiene,
standard clauses for labor contracts, hours of work, rest periods and
rest days, and special measures for the protection of working women
and children.
The scope of enterprises and workers covered is, however, limited.
Labor protection in manufacturing is better developed than in the
other broad segments of industry but applies (with some exceptions)
only to workers in factories employing 10 or more persons. Thus,
the large proportion of the Japanese labor force employed in small
workshops is excluded from protection. The labor standards estab
lished are very low, compared with those in western countries and in
the draft conventions and recommendations of the International Labor
Organization. The present Factory Act, for instance, fixes no limit
on working time except that women and young persons under the age
of 16 years may not do actual work for more than 10 hours a day in
the shops covered by the law. The weekly hours are not specifically
limited, and only 2 rest days are prescribed in every month.
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The limited scope and the low standards of protection reflect the
spirit and the social and economic conditions of prewar Japan:
the prevailing paternalistic philosophy, which based the worker’s
well-being upon his employer’s good intentions (Onjo Shugi, literally,
“warmheartedness”) ; the composition of the Japanese labor force,
recruited mostly from the rural population, largely girls and women,
accustomed to exacting working conditions and to frugal ways of
living; and an economic policy of low production costs in the interest
of fostering exports.
The Committee reached four general conclusions:
(1) Administration and enforcement machinery must be rebuilt from the ground
up, if the program is to exist in more than name. Inadequate even before the
war, the present machinery is hopelessly ineffective. More adequate budgets and
personnel, stronger enforcement powers, and fundamental administrative changes
are indispensable.
(2) Coverage should be extended to important groups of workers who are
now largely or wholly unprotected. Especially important is the present exclusion
of small factories and work shops, which include a large fraction of Japan’s
manufacturing workers; workers in many other important industries, also, now
lack protection.
(3 ) The basic human rights of workers have never, because of Japan’s feudal and
paternalistic background, been properly recognized or protected. The mobility
and dignity of labor should be assured by adequate standards covering such
matters as labor contracts, industrial discipline, apprenticeship, involuntary
servitude, and dormitories.
(4) Other basic standards—covering such matters as working hours, safety and
sanitation, child labor, and the protection of women workers—should be raised
to a level compatible with the new status of labor in Japan.
In its specific proposals, the Committee also dealt with amendments
to the existing laws which were prepared by the Japanese Welfare
Ministry and are intended to form the draft of a new Labor Standards
Act.18 In the Committee’s opinion, one of the main issues raised by
such legislation might be the maintenance of—
a proper balance between two somewhat contrary objectives . . . the goal of
extending protection to as many groups of workers as possible and the practical
problem of applying immediate measures to those enterprises in which effective
enforcement can be reasonably expected. Likewise, the program adopted must
be realistic in terms of the current economic emergency; there will be some
measures that are entirely practicable in the long run, but cannot be rigidly
enforced so long as acute shortages of materials, equipment, and supplies continue.
The Committee itself was divided in its attitude as to one of the
most important provisions of the proposed legislation—the legal
definition of maximum work hours. Regarding the establishment of
a standard workday and workweek, at least in manufacturing, the
members were in agreement. A majority considered the 8-hour day
n Public hearings on th e d raft were held in September 1946 according to Sum m ation of N on-M ilitary
A ctivities in Jap an (No. 14 for N ovem ber 1946, p. 163).
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MONTHLY LABOR REVIEW— FEBRUARY 1947
and the 48-hour week as immediately feasible; others believed a longer
workday might be necessary during the present emergency. The
Committee was unanimous again in favoring the legal requirement of,
at least, 1 day of rest a week; legal restrictions of child labor; more
extended protection of women; and other provisions which would
strengthen the status and the dignity of labor.
Employment Policies and the Future of the Public Employment
Service
Measures for labor protection—such as shortening of the work
hours, controlling and restricting the employment of women, and
raising the minimum age of child labor—also affect the size of the
labor supply and may be used continuously to limit the number of
persons in the labor force. In the Committee’s opinion, however,
they should be used for such a purpose only if no way can be found to
assure the productive use of all available manpower, and thus prevent
mass unemployment.
The Committee believed that Japan’s success in overcoming her
immediate economic problems and rebuilding a healthy economy will
depend largely on the constructive use of her labor resources. As the
Committee sees it, this goal can be reached only by careful planning,
flexibly adjusted to whatever limits are placed on the economy by
reparations policies, use of natural resources, and export-import
possibilities. Within these limits, the policy should aim at the highest
possible level of production consistent with the materials and facilities
available. A program of public works administered to dovetail with
fluctuations in private employment would be an important part of
such a long-range employment policy.
A public works scheme is also basic to the short-range employment
program recommended by the Committee. The exact extent of
unemployment, as of the spring of 1946, could not be determined,
because its volume was partly concealed (1) by the large exodus
from the cities which had swollen the farm population far beyond
agricultural labor needs, and (2) by the great numbers of people in the
cities formerly engaged in productive occupations whose incomes are
now derived from nonproductive trading. But unemployment was
already considerable, and the Committee expected it to become
dangerously high during the long postponed reconversion of Japanese
industry. It will be increased by the millions of repatriates who will
create an additional source of labor supply.19
lS According to th e Sum m ation of N on-M ilitary A ctivities in Jap an (No. 11 for August.1946, p. 174), the
Japanese M in istry of H ealth and Welfare estim ated th a t by the end of 1946 the num ber of unem ployed
w ould approxim ate 6,800,000. T h e highest prew ar unem ploym ent figure was officially reported as 471,000
in 1931. In 1939, it had dropped to 185,000 (M onthly Labor Review, October 1945, p. 654).
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E C O N O M IC P O L IC Y
253
It seemed evident to the Committee that private employment could
not absorb the available labor supply in the immediate future. The
Committee therefore called for “ an aggressive program of public
works to use idle labor in ways which will aid in the production or
distribution of essential commodities, especially food, clothing,
shelter, and fuel.” The Committee also developed principles for the
execution of such a program, based partly upon the American experi
ence of the 1930’s. In the meantime these principles have been
accepted by the Japanese Government. However, according to
available information, the program itself was delayed by financial
considerations but now seems to be getting into action.20
According to the Committee’s recommendations, the public employ
ment service should be important in any phase of the employment
program. The Japanese system of public labor exchanges dates back
to 1921. Its development was fostered by a growing public control
of private recruitment agencies.21 The final report states that mem
bers of the Committee found local employment offices to be operating
surprisingly well, considering the extremely difficult circumstances.
However, the existing organization of public employment offices
should be strengthened, both by more adequate budgets and by im
proved administrative control and supervision.
The Committee expressed its opposition to a placement monopoly
by the public employment offices which apparently existed during
wartime. It assumed that labor bosses and recruiting agents (the
traditional employment agents in Japan) would prove themselves
“ uneconomic and archaic” if the facilities of the employment offices
were sufficiently expanded in scope and efficiency, but that the way
should be left open for individual recruitment and job seeking.
The Committee’s detailed findings and recommendations on the
employment service were immediately placed in the hands of the
Japanese Government and are beingiusedjor developing and strength
ening this service.
Changes in Labor Administration
Labor programs of the importance and character indicated above
can succeed only if two forces are in operation: (1) Labor and man
agement must learn to develop indispensable initiative; and (2)
Government must be qualified and willing to support and control this
initiative within the framework of broader national policies. To
fulfill its functions, the Japanese Government should develop ade
quate machinery for labor administration. In the Committee’s
so Sum m ation of N o n -M ilitary A ctivities in Jap an (No. 12 for Septem ber 1946, p . 158).
si For details see IL O , In d u strial Labor in Japan, op. cit. (p. 159).
728607— 47------ 7
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
opinion, the present machinery is in “ need of thorough overhauling”
on the national as well as on the local level.
In every democratic modern industrial nation, effective labor administration
has required the establishment of a single agency, responsible for all functions
involved in a comprehensive labor program, and not required to deal with unre
lated functions. To assure th at labor considerations are effectively presented
and have adequate weight in the development of national policies, this agency
should be, and almost invariably is, of cabinet rank. Japan’s present adminis
trative structure does not meet this standard.
Nationally, most labor functions are located in two of the seven
bureaus of the Ministry of Public Health and Welfare. Certain
functions are, however, performed by other ministries in connection
with specific industries or groups of employees. The Transportation
Ministry, for example, is responsible for maritime workers and rail
road employees; the Ministry of Commei-ce and Industry administers
labor programs in coal mining and in Government monopolies. The
Committee strongly urged the establishment of a strong and inde
pendent Ministry of Labor to which the labor functions of the Minis
try of Public Health and Welfare and of the other ministries con
cerned should be transferred.
The Committee presented, at the same time, recommendations on
the internal organization of such a Labor Ministry, based upon dis
cussions in which Japanese officials participated. No decision appears
to have been made as yet on the creation of a Labor Ministry, which
was frequently demanded in the prewar period by Japanese liberals
and Japanese labor.22
The local administration of labor matters is handled at present by
units in the prefectural governments, which are administratively
controlled by the Home Ministry. The Committee recommends that
the local and intermediate levels of labor administration shall be part
of, and directly responsible to, the new Labor Ministry.
Finally, the Committee stated that “nationally and locally, some
provision should be made for the participation of representatives of
workers, employers, and the general public in the development and
interpretation of policies.” Such provision seems particularly needed
in a country like Japan with its pattern of bureaucratic direction and
centralization.
22 In d u strial L abor in Japan, op. cit. (p. 152). T h e C om m ittee considered such a step as “indispens
able if the present defects and weaknesses of Japanese labor adm inistration are to be corrected.”
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Industrial Relations
L a b o r R e c o m m e n d a tio n s in P r e s id e n t’s M essage
to C ongress
I n h is message to Congress on the state of the Union, the President
referred to the strife that had characterized labor-management rela
tions in 1946/ but “we must not, however, adopt punitive legislation.’'
Management shared with labor the responsibility for failure to reach
agreements whereby strikes wouM have been averted. For this
reason, it must bf realized that “industrial peace cannot be achieved
merely by laws directed against labor unions.” Collective bargaining
for the determination of wages and working conditions—which has
been established as a national policy in the past decade and a half—
should be continued and strengthened. To correct certain abuses
and to provide additional governmental assistance in the bargaining
process, legislation is needed. Attention should also be given to the
causes of labor-management difficulties.
Specifically, a 4-point program to reduce industrial strife was urged,
as follows: (1) The early enactment of legislation to prevent certain
unjustifiable practices; (2) the extension of facilities within the United
States Department of Labor for assisting collective bargaining;
(3) the broadening of social legislation to alleviate the causes of work
ers’ insecurity; and (4) the appointment by Congress of a temporary
joint commission to inquire into the entire field of labor-management
relations.
The President recommended legislation to prevent jurisdictional
disputes whereby the public and the employer are inj ured because of
“a collision between rival unions,” which he called indefensible.
Legislation is also desirable to prevent strikes by minority unions to
compel employers to deal with them, in spite of the legal requirement
under the National Labor Relations Act that employers must bargain
with the majority union. Provision must also be made for peaceful
and binding determination of questions as to labor-union jurisdiction
in the performance of particular tasks.
A secondary boycott which is used to further jurisdictional disputes
or to compel employers to violate the terms of the NLRA was pointed
* W hite H ouse release of Jan u ary 6,1947.
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256
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
out as being unjustifiable. However, the President stated that not all
secondary boycotts are unjustifiable and that there should not be a
blanket prohibition against boycotts. Legislation should prohibit
secondary boycotts in pursuance of unjustifiable objectives, but should
not impair the right of unions to preserve their existence and their
gains made through collective bargaining.
Regarding the practice of using economic force by either labor or
management to decide issues arising out of the interpretation of exist
ing contracts, the President stated, that should be corrected. Under
the most enlightened union-management relationships, disputes over
the interpretation of contract terms are settled peaceably by negotia
tion and arbitration between the parties. For the settlement of
disputes concerning the interpretation of existing agreements, ma
chinery should be provided by law ; either party could apply to such a
body for final and binding arbitration.
Lack of clear understanding by labor and management as to their
responsibility for settling disputes through their own negotiations was
cited by the President as one obstacle to the avoidance of labor strife.
Extension of facilities within the Department of Labor for aid in the
collective-bargaining process and integration of governmental ma
chinery would facilitate and expedite the settlement of disputes.
Such governmental machinery is needed to provide mediation, volun
tary arbitration, and finally, if appropriate, ascertainment of the
facts of the dispute and a report to the public.
A broadened program of social legislation to alleviate the causes of
workers’ insecurity in an industrial society would supplement laborrelations legislation in the solution of labor-management difficulties.
According to the President’s statement, “the Congress should consider
the extension and broadening of our Social Security System, better
housing, a comprehensive national health program, and provision for
a fair minimum wage.”
A commission to inquire into labor-management relations was recom
mended by the President, its membership to consist of 20 persons of
whom 12 would be chosen by Congress from the members of both
parties in the House of Representatives and the Senate and 8 would
be appointed by the President to represent the public, management,
and labor. The commission should be charged with investigating
and making recommendations upon (1) the special and unique prob
lem of Nation-wide strikes in vital industries affecting the public in
terest; (2) the best methods and procedures for carrying out the col
lective-bargaining process; and (3) the underlying causes of labor-man
agement disputes. The President recommended that this commission
should make its first report not later than March 15, 1947, and that
specific legislative proposals should be included.
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257
IN D U S T R IA L R E L A T IO N S
Jo b s C o v ered b y C o lle ctiv e B a rg a in in g , U . S. O ffsh o re
M e rc h a n t M a rin e , F e b ru a ry 1 9 4 6 1
p p r o x i m a t e l y 9 out of 10 jobs of licensed or unlicensed personnel
aboard vessels in the U. S. offshore merchant marine were covered by
collective bargaining agreements in February 1946, according to a
study of the extent of job coverage by collective bargaining on vessels
controlled by the War Shipping Administration. Since WSA ships
represented 94 percent of the total active U. S. merchant fleet of
vessels of 1,000 gross tons and over at that time, information on them
offers a fairly complete picture of the extent of collective bargaining
in the U. S. merchant marine. It is believed that complete data on
offshore merchant vessels would indicate a slightly lower figure than
91 percent, the estimated proportion of jobs on WSA-controlled ships
covered by signed union agreements or by certifications of unions as
bargaining agents. Ships under private operation at that time,
representing approximately 6 percent of the U. S. active merchant
fleet, were not as extensively organized as the WSA vessels.
The extent of collective bargaining on WSA-controlled vessels has
increased steadily in the past 2 years. The proportion of jobs
covered in February 1946, 91.3 percent, compares with 84.9 percent
in June 1945 and 80.5 percent in February 1944.
The total number of jobs on these vessels in February 1946 was
estimated at 164,900.2 Among the 150,600 jobs on which formal
collective bargaining was in effect, only 2 percent represented jobs
covered by certifications of unions as bargaining agents by the
National Labor Relations Board. The remaining jobs were under
union control through signed agreements with the shipping companies
acting as operating agents of the WSA.
Organization was more extensive on cargo types than on tankers, as
the following estimates for February 1946 show:
A
Total iobs on
W S A vessels
All classes of vessels- ___________ 164, 900
Cargo1 _ _ _ ___________ 141, 600
______ 23, 300
Tanker___
Jobs controlled by unions
Number
Percent
150, 600
134, 300
16, 300
91. 3
94. 8
69. 7
• Cargo vessels include passenger and combination passenger and freight vessels, used as troop and cargo
carriers.
1 Prepared b y H erm an M . Sturm in th e Planning and Control Office, Division of R ecruitm ent and
M anning, U. S. M aritim e Commission. Among sources utilized in preparing estim ates were All Vessels
under the Control of W ar Shipping A dm inistration (R eport 190-92, as of January 15, 1946), prepared by
the D ivision of Operations; Agents of W ar Shipping A dm inistration and their U nion Agreements as of
February 1, 1946, prepared b y the Labor Agreements Division; m anning tables derived from tabulations
of seamen engaged on U. S. flag vessels, prepared b y the Division of Economics and Statistics, U. S. M ari
tim e Commission.
a This does not include cadet trainees, who are n o t covered ip collective bargaining negotiations. T he
total num ber of m en actually engaged on U. S. flag W SA vessels in February was approxim ately 157,300.
T he difference is accounted for prim arily by vessels in process of being w ithdraw n from active service.
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Changes in the size and operating control of the merchant fleet
since February 1946 have been very considerable. Although the
number of ships remaining active has fallen off, private operations
have increased greatly, compared with the number of Governmentoperated ships; many vessels have been laid up, and others are being
converted into other types or scrapped. The resulting decline in
employment, however, will probably not seriously alter the over-all
extent of union job control in the offshore merchant marine, nor the
relative bargaining strength of individual organizations.
Principal Labor Organizations Represented
Licensed deck and engine officers.—The National Organization Mas
ters, Mates and Pilots of America (MMP) is affiliated with the
American Federation of Labor. Its membership is limited to licensed
deck personnel, and includes officers aboard vessels operating off the
Atlantic, Pacific, and Gulf coasts. The National Marine Engineers
Beneficial Association (MEBA) is affiliated with the Congress of
Industrial Organizations. Its jurisdiction covers licensed engine
department personnel aboard vessels operating off all three coasts.
The United Licensed Officers of the U. S. A. (ULO), which was unaffiliated in February 1946, includes both deck and engine officers,
and membership is concentrated mainly on vessels berthing at Atlantic
Coast ports. The ULO became affiliated with District 50 of the
United Mine Workers (AFL) in November 1946.
Radio officers.—The principal radio officers’ organizations are the
American Communications Association (Marine Division) and the
Radio Officers Union of the Commercial Telegraphers Union. The
former (ACA) is affiliated with the CIO; and the latter (CTU) is an
AFL affiliate. Both organizations have Nation-wide jurisdictions.
Pursers.—The principal union of pursers is the American Merchant
Marine Staff Officers Association (AMMSOA), affiliated with the
AFL.
Unlicensed personnel.—The National Maritime Union of America
(NMU) is affiliated with the CIO. The union has contracts mainly
with Atlantic and Gulf shipping companies; its jurisdiction includes
unlicensed deck, engine, and steward department personnel. The
Seafarers International Union (SIU) is an AFL affiliate covering sea
men in the unlicensed deck, engine, and steward departments. SIU
agreements cover mainly vessels in Atlantic and Gulf Coast shipping;
on the Pacific Coast the Sailors Union of the Pacific (SUP), affiliated
with the SIU, covers unlicensed deck personnel, and in a few com
panies, unlicensed members of the engine and stewards’ departments.
The National Union of Marine Cooks and Stewards (MCS) is a CIO
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259
IN DUSTRIAL RELATIONS
affiliate covering stewards, cooks, bakers, messmen, and similar
steward-department ratings, on vessels operated by Pacific Coast
companies. The Pacific Coast Marine Firemen, Oilers, Watertenders,
and Wipers Association (MFOWW) is an unaffiliated union covering
unlicensed engine department personnel, on vessels of Pacific Coast
shipping lines.
Subsequent sections present estimates comparing the extent of job
coverage or control by each of these organizations. In comparing
figures for organizations, it is essential to bear in mind that size is not
always the most important factor in analyzing particular collective
bargaining situations. Various other factors, such as the effect of
affiliated relationships, regional concentrations, and rival jurisdictions,
are often of equal or greater importance.
Of particular significance is the fact that representation is spread
among many organizations on a single ship. Vessels of some West
Coast steamship companies, for example, were manned by MMP
deck officers, MEBA engine officers, ACA radio officers, AMMSOA
pursers, SUP unlicensed deck personnel, MFOWW unlicensed engine
personnel, and MCS steward-department men. Vessels of other
operators may have the CTU as the representative of the radio officers,
or the NMU or SIU as the sole bargaining agent for unlicensed men.
In still other cases some of the occupational groups may be covered
by agreements with one of these organizations and others may be
completely without collective bargaining representation.
Union Coverage by Ratings
Union coverage of jobs through signed agreements or NLRB certi
fications varied among ratings groups from 34 to 96 percent; the
lowest coverage was among pursers and the highest among radio
officers.
Total jobs
All ratings groups, _
..
___________ ____ 164,900
Licensed deck and engine
__ __ _____ 31,
____
3,
Pursers__ _ _ — ----____
4,
Radio officers
_ __
____ 125,
Unlicensed deck, engine, and steward
800
100
300
700
Jobs covered, by 11
principal unions
Number
Percent
150, 600
91. 3
27,
1,
4,
117,
87.
33.
96.
93.
600
100
100
800
1
9
0
8
The proportion of each union’s coverage of ratings groups is shown
in table 1. It should be emphasized that these figures do not represent
the membership strength of the unions, but their job control or cover
age. The table, which compares percentage control of single depart
ment unions separately from those of multi-department unions,
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
illustrates the difficulty, because of overlapping, in making comparisons
of control among unions. This is especially true of unlicensed person
nel groups. For example, the NMU share of unlicensed deck, engine,
and steward jobs was 61,900, or 49 percent of the total of these groups.
In comparison, the SIU-SUP share was 32,000, or 25.5 percent of this
total. However, the MFOWW and MCS likewise represented sub
stantial proportions of the men in the engine and steward departments,
respectively, but the percentages are not comparable with figures for
the NMU or SIU-SUP, which include all three departments in their
jurisdiction.
T able 1.— J o b covera g e b y p r i n c i p a l u n io n s e n g a g ed in c o llective b a rg a in in g a n d b y
r a tin g s g r o u p s , W S A vesse ls, F e b r u a r y 1 9 4 6
Single-departm ent unions
N um ber
of jobs
R atings groups
All ratings___
.
. _
Licensed deck......... ................ .
Licensed engine.........................
P u r s e r s ....................... ....... .
R adio..........................................
Unlicensed deck____ _____
Unlicensed engine__________
Stew ard d e p artm e n t_______
M ulti-departm ent unions
Job coverage 1
N am e of
union
N um
ber
P e r
cent
Job coverage 1
N am e of
union
N um
ber
P er
cent
164,900
16, 200 M M P ______
15,600 M E B A _____
3,100 A M M S O A -C A _______
4,300 /A
Ì.C TU ..............
43,700
44.000 M F O W W ...
38.000 M C S _______
13.100
13.100
1,100
2,800
1,300
12,800
11,100
81.3 j u L O ........... .
84.0
33.9
64.8 j . ....................
31.2
29.1 Irns imu -us ______
u p ....
29.3
1,400
4.4
61,900
32,000
49.2
25.5
1 Figures for each organization are estim ates of the num ber of jobs covered both by signed union agreem ent
and by N L R B certifications.
Union Coverage (A ll Jobs) by Organization and Affiliation
The distribution of union coverage on all jobs, regardless of occupa
tional or department jurisdictional lines, is shown in table 2. In 1946,
the NMU had 37 percent as its share of the total jobs on WSA vessels,
followed by the SIU-SUP with 19.5 percent. The NMP and MEBA
each negotiated for about 8 percent of the jobs in the industry, and
other organizations represented smaller numbers of jobs.
T able 2.—- U n io n coverage o f a ll jo b s a b o a rd W S A vessels, b y o rg a n iz a tio n , F e b r u a r y 1 9 4 6
Organization
M M P _____________________
M E B A ____________________
U L O ______________________
A M M SO A ________________
ACA
C T U _______________
N M U _____________________
Jobs
13.100
13.100
1, 400
1, 100
2,800
1, 300
61,900
Percent
7.9
7.9
.9
.6
1.7
.8
37.5
Organization
S IU -SU P
M FO W W
M CS
O ther 1
T otal
i Includes m inor independent organizations and unorganized.
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Jobs
Percent
32, 000
12,800
11,100
14,300
19.5
7.8
6.7
8.7
164,900
100.0
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IN DUSTRIAL RELATIONS
As the following figures show, CIO unions controlled roughly twice
as many jobs as AFL groups in February 1946:
Percent
CIO (MEBA, ACA, NMU, MCS)______________________
AFL (MMP, AMMSOA, CTU, SIU -SU P)________ ____
Unaffiliated (ULO, MFOWW)_________________________
Other (including unorganized)_________________________
53. 8
28.8
8. 7
8. 7
Total_________________________________________ 100. 0
An estimated 14,300 jobs, or 8.7 percent of the total on WSA
vessels, were not covered by formal collective-bargaining procedures in
February 1946, [or were covered by agreements with 8 smaller
independent organizations, each of which, according to available
information, bad contracts with but one company. The number
of jobs for which these organizations had agreements on WSAcontrolled ships was approximately 2,400. The single-firm unions are
strongest on tanker vessels, a large proportion of which had been
returned to private-company operation in February 1946. Altogether
there are at least 15 separate unions of this type, 7 of which represented
employees of companies operating non-WSA vessels which were not
covered in the above figures. It is estimated that the total number
of jobs covered by the single-firm unions, including those on both
WSA and privately controlled vessels, was 5,000 in February 1946.
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Labor-Management Disputes
C o n tro v e rsie s a n d S ig n ific an t D e v e lo p m e n ts,
J a n u a ry 1 9 4 7
T h e d i s p u t e s picture in the first month of 1947 was in marked con
trast to that which existed in January 1946. Few strikes of more
than minor local importance occurred during January 1947. The total
number of workers involved in work stoppages at any one time during
the month seldom exceeded 60,000 as against a peak figure of approx
imately 1,600,000 at the convergence of the steel, electrical, auto
mobile, and meat-packing strikes of late January 1946. Idleness
occasioned by labor-management controversies this January was
only about one-fifteenth as great as in the corresponding month of
last year.
Perhaps even more significant was the tenor and temper of col
lective-bargaining negotiations manifested by labor and management
alike in January 1947. Outstanding in this category was the agree
ment, on January 24, of the United Steelworkers (CIO) and the United
States Steel Corp., to extend the contract provisions of their agree
ment from its original expiration date of February 15 to April 30.
This step was taken, company and union officials explained, in the
“ joint interest in maintaining peaceful industrial relations” and to
permit greater time to discuss proposed contract changes. Almost
simultaneously with the announcement that the steel negotiations
would take a more leisurely course, the United Automobile Workers
(CIO) stated that its contract with the Chrysler Corp. had been
extended for 1 month from its late January expiration date.
The American Federation of Labor, through statements of its
leaders, heralded 1947 as a “year of opportunity.” In the January
issue of the Federation’s Labor’s Monthly Survey, the AFL declared:
“ This is to be a year of promise and of danger for American workers.
Promise: Because wise policies can raise workers’ living standards to
the highest level ever reached. Danger: Because industry has a
difficult adjustment to make this year; hasty and irresponsible action
by unions or employers could bring about a depression with wide
spread loss of jobs and incomes for workers. Hasty action by Con
gress could destroy workers’ freedom and limit collective bargaining.
262
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LABOR-M ANAGEM ENT DISPUTES
263
If ever there was a year which called for good judgment and economic
statesmanship on the part of unions, employers, and Congressmen it
is 1947.”
President Truman, at a special press conference February 1, 1947,
declared that “ we have had good labor news during the past 10
days.” He followed this observation with an announcement of a
comprehensive plan to preserve industrial peace in the construction
industry developed by the Associated General Contractors and the
AFL Building and Construction Trades Department. A few days
earlier, Secretary of Labor Schwellenbach, testifying before the Senate
Committee on Labor and Public Welfare, stated that if labor and
management are given a reasonable opportunity to work out their
problems between themselves a repetition of the widespread controver
sies which prevailed in the final months of 1945 and early 1946 is not
likely to reoccur. In this connection, also, the Bureau of Labor
Statistics in releasing preliminary estimates of work stoppages in
1946 (see below) observed that if the industrial disputes pattern of
1919-20, following World War I, constitutes a parallel for the period
following the recent war, the Nation, during 1947, may expect some
what fewer work stoppages and a substantial drop in the number of
large strikes.
WWW
R ev iew o f W o rk S to p p ag es in 1 9 4 6
b o u t 4,700 work stoppages due to labor-management disputes
occurred in 1946, according to preliminary estimates of the Bureau of
Labor Statistics. These stoppages involved approximately 4,650,000
workers and resulted in about 113,000,000 man-days of idleness in the
plants or establishments directly affected by the controversies. For
the year as a whole, time lost as a direct result of stoppages amounted
to about 1.5 percent of the total estimated working time.
Wages were the paramount issue in most controversies. Preserva
tion of “ take-home” pay was emphasized in many reconversion wage
disputes while later in the year, after the easing and subsequent
abandonment of price controls, demands for pay increases to match
rising living costs became more frequent.
In the preceding year, 4,750 work stoppages, involving 3,467,000
workers, were recorded. Lost-time in 1945 was estimated at 38,025,000
man-days.
February marked the crest of reconversion labor-management dis
putes in 1946. During that month, the large stoppages in steel,
electrical manufacturing, and automobiles brought the lost-time figure
to approximately 23,000,000 man-days. Later stoppages, notably
bituminous coal in April-May and again in November-December, and
A
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the maritime disputes in the autumn, also contributed substantially
to the year’s total idleness.
Strike activity declined to its lowest level of the year in December
when only 180 new stoppages occurred. These disputes involved but
95,000 workers. Including disputes continued from earlier months,
a total of 400 stoppages involving approximately 525,000 workers
were in effect at one time or another during December. Idleness for
December was estimated at 3,065,000 man-days, less than any month
since the end of the war.
M o n th ly tr e n d in w o r k sto p p a g e s , 1 9 4 6 1
Stoppages beginning in
m onth
M an-days idle (all stop
pages)
M onth
N um ber
Jan u a ry ________________ _ _ ----------- ----------------------------------F e b ru a ry ------------------M a r c h ._ _______ . . .
-------------------------A pril_____ __________ _ . _ ___ ------ -- __
M a y ______ _________________ . . ---------J u n e ___ ______ _________ .
------- --------------J u ly ----------------------- ------ ---------------------------A ugust__________ _ _ . . . --------------------------Septem ber__________ ____ _
. . . ------ ------ -O c to b e r .___
______ . .
. . . ..
N ovem ber.......
.............................
........
D ecem ber____ _____________________________
325
275
420
495
380
375
525
515
450
450
310
180
W orkers in
volved
1,400,000
130,000
165, 000
575,000
560.000
175, 000
190, 000
240,000
380,000
290,000
450,000
95,000
N um ber
Percent of
estim ated
working tim e
(all indus
tries)
19, 750, 000
23, 000,000
13,825, 000
15,550, 000
12,360, 000
4. 475.000
3,300,000
3,425, 000
5,000,000
4, 500,000
4, 750,000
3,065,000
3.1
4.2
2.3
2.4
1.9
.7
.5
.5
.8
.6
.7
.4
1 D ata are prelim inary and subject to revision. Figures for some m onths have been adjusted on the basis
of later information received. The statistics include all known work stoppages, arising out of labor-manage
m ent disputes, involving six or more workers and continuing as long as a full day or shift. Figures on
“ workers involved” and “ m an-days idle” cover all workers made idle in establishm ents directlÿ involved
in a stoppage. T hey do not measure the indirect or secondary effects on other establishm ents or industries
whose employees are made idle as a result of m aterial or service shortages.
A c tiv itie s o f th e U . S. C o n c ilia tio n S erv ice in
D e ce m b e r 1 9 4 6
D u r i n g December 1946 the United States Conciliation Service termi
nated 1,021 disputes involving 373,118 employees—approximately 1
percent fewer than were closed in the previous month.
The number of threatened stoppages and controversies terminated
increased about 5 percent over November while the number of work
stoppages settled declined more than 15 percent. The latter decline
is a result of the comparatively few work stoppages which began dur
ing November and December.
In December more than 76 percent of all work stoppages terminated
involved the issue of wages. Stoppages caused by unresolved griev
ances accounted for 9.8 percent of the total stoppages terminated, as
compared with 11.1 percent in November and 18.4 percent in October.
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LABOR-M ANAGEM ENT DISPUTES
C a se s c lo s e d b y th e U . S . C o n c ilia tio n S e rv ic e in D e c e m b e r 1 9 4 6 , b y t y p e o f s itu a tio n a n d
ty p e o f d is p o s itio n
T otal
W ork
stoppages
Threatened
work stop
pages
controversies
O ther
situations
M ethod of handling
W ork Cases Work Cases W ork Cases Work
Cases Work
ers Cases ers
ers
ers
ers
All m ethods___ ______ __________ 1,221 409, 698
235 177, 993
446 135, 518
336 59. 404
841 315 533
70 20, 169
22 1, 571
200 172, 843
918
8
10 1, 232
375 90, 701
33 17,374
162
6
266 51, 989
29 1,877
6
177
Settled b y co n ciliatio n .--........ .......
D ispute called off_______________
Unable to a d ju st________________
Referred to N L R B and other
agencies. __ ___________ ____
Referred to a rb itra tio n -. _______
C onsent elections and union m em
berships _ . - ___ .
Decisions rendered in a rb itra tio n ..
Technical services com pleted____
M iscellaneous services__________
51 6 328
33 29,314
15
2
2.285
715
23 3.103
9 24,178
4
203
1 64 8, 036
33 3.960
103 24,584
13
22
204 36, 783
910
4,421
4
203
64 8 036
33 3,960
103 24,584
1 T his figure includes 3 arb itratio n cases in which settlem ents other th a n arbitration decisions were made.
M e d ia tio n E x p e rts A c ce p t S ervice W ith U . S.
C o n c ilia tio n S erv ice 1
T w e n t y - s i x nationally known experts in labor relations have con
sented to act as a panel of special conciliators in major industrial
disputes for the Conciliation Service of the U. S. Department of
Labor. Each conciliator will be assigned to a particular dispute in
accordance with his background and experience for handling the
problems in the particular industry or area in which the controversy
arises, and his work will supplement that of the regular Conciliation
staff. The appointees have agreed to leave their permanent pursuits,
on call.
Creation of the panel implements the first step of a four-point
program for expanding the Government’s voluntary mediation
machinery. This program was recently recommended to the Service
by its bipartite Labor-Management Advisory Committee, in a state
ment of policy which had been concurred in unanimously. The plan
also provides for the use of tripartite mediation, voluntary arbitration,
and emergency boards of inquiry.2
The special conciliation panel consists of the following members:
Aaron, Benjamin, Los Angeles, Calif., attorney. Formerly, Executive
Secretary, National War Labor Board, and Chairman, U. S. Secre
tary of Labor’s Fact-Finding Boards in Pacific Gas and Electric,
and Coos Bay cases.
1 U. S. D ep artm en t of Labor, Press release, Jan u ary 5, 1947 (S47-735).
2 See Labor-M anagem ent Policy for U. S. Conciliation Service, M onthly Labor Review, January 1947
(P. 81).
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New York, N. Y., attorney, and member, New
York City Board of Transportation. Formerly, Chairman,
National War Labor Board, and Director of Office of Economic
Stabilization.
Dewey, Ja m es, Chester, Pa., member, Pennsylvania State Mediation
Board. Former member of staff, U. S. Conciliation Service.
Feinsinger, N a th a n P ., Madison, Wis., professor of law, University of
Wisconsin Law School. Formerly, public member, National War
Labor Board, Chairman, President’s Fact-Finding Board for Steel
Industry, and Chairman, Secretary of Labor’s Fact-Finding
Boards in Pacific Gas and Electric, and Milwaukee Gas Light cases.
F ly, Ja m es Lawrence, New York, N. Y., attorney. Formerly, Chair
man, Federal Communications Commission, and Chairman, Secre
tary of Labor’s Fact-Finding Board for West Coast Longshore
Industry.
Fox, N oel, Muskegon, Mich., attorney. Former member of Michigan
State Mediation Board and of regular staff, U. S. Conciliation
Service.
Garrison, L lo y d K ., New York, N. Y., attorney. Formerly, Chair
man, National War Labor Board, dean of law school, University
of Wisconsin, and Chairman, President’s Fact-Finding Board in
General Motors case.
Graham, F ra n k P ., Chapel Hill, N. C., president, University of North
Carolina. Formerly, public member, National War Labor Board,
and Chairman, Secretary of Labor’s Fact-Finding Board for Oil
Industry.
H arbison, Frederick H ., Chicago, 111., executive officer, Industrial
Relations Center, University of Chicago. Formerly, public mem
ber, Chicago Regional War Labor Board.
H epburn, W illia m , Tuscaloosa, Ala., professor of law, University of
Alabama. Formerly, vice chairman, Atlanta Regional War Labor
Board.
H o p k in s, W illia m S ., Stanford, Calif., professor of labor economics,
Stanford University. Formerly, public member, San Francisco
Regional War Labor Board.
K eenan, Joseph, Chicago, 111. Formerly, Vice Chairman of War
Production Board.
K err, Clark, Berkeley, Calif,, professor, School of Business Adminis
tration, University of California, and Impartial Chairman, West
Coast Longshore Industry. Formerly, member, Secretary of
Labor’s Fact-Finding Boards for Meat Packing, Pacific Gas and
Light cases.
K estn b a u m , M eyer, Chicago, III., president, Hart, Schaffner & Marx.
Formerly, public representative, National War Labor Board panels.
D avis, W illia m H .,
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267
Washington, D. C., director, Labor Organiza
tion Study, with Johns Hopkins University. Formerly, member,
National Labor Relations Board, and Chairman, National Media
tion Board.
M cG rady, E dw ard F ., Camden, N. J., vice president in charge of labor
relations, R. C. A. Former Assistant Secretary of Labor (United
States).
M eyer, A r th u r S ., New York, N. Y., chairman, New York State Medi
ation Board.
M orley, F ra n k V ., New York, N. Y., publisher. Formerly, associate
public member, National War Labor Board.
Sew ard, R a lp h T ., Detroit, Mich., Umpire of General Motors Corp.
and United Automobile Workers of America (CIO). Formerly,
associate member, National War Labor Board.
S h u lm a n , H a rry, New Haven, Conn., professor of law, Yale University,
and Permanent Umpire, Ford Motor Co. and United Automobile
Workers of America (CIO).
S im k in , W illia m E ., Philadelphia, Pa., umpire and arbitrator for
various textile and shipbuilding companies. Formerly, Chairman,
Shipbuilding Commission, and Co-Chairman, Steel Commission,
National War Labor Board, and Chairman, Secretary of Labor’s
Fact-Finding Board in Greyhound Bus case.
Taylor, George, Philadelphia, Pa., professor of industrial relations,
Wharton School, University of Pennsylvania, and Chairman, Ad
visory Committee, Office of War Mobilization and Reconversion.
Formerly, Chairman, National War Labor Board.
W allen, S a u l, Boston, Mass., arbitrator. Formerly Chairman, Boston
Regional War Labor Board, Chairman, Secretary of Labor’s FactFinding Board in Western Union case, and member of Board_of
Greyhound Bus case.
W itte, E d w in E ., Madison, Wis., professor of economics, University of
Wisconsin. Formerly, public member, National War Labor Board,
and Chairman, Secretary of Labor’s Fact-Finding Board for Meat
Packing Industry.
W olf, H a rry D ., Chapel Hill, N. C., professor of economics, University
of North Carolina. Formerly, public member, Atlanta Regional
War Labor Board.
W o lf, D avid A ., Detroit, Mich., attorney; Umpire, Chrysler Motor
Corp. and United Automobile Workers of America (CIO); formerly,
Chairman Automotive Panel, Detroit Regional War Labor Board.
Leiserson, W illia m M .,
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Labor Laws and Decisions
T h ir te e n th N a tio n a l C o n fe re n c e o n L a b o r L e g isla tio n
F or the first time international as well as domestic labor standards
were high-lighted at the Thirteenth National Conference on Labor
Legislation called by the Secretary of Labor, L. B. Schwellenbach, in
Washington, December 2, 3, and 4, 1946.
The Conference was attended by representatives from 43 States
and by representatives from Alaska and the District of Columbia.
The delegates, numbering nearly 200, included State labor commis
sioners and other State officials, as well as representatives of organized
labor.
The Secretary of Labor, in his opening address, reviewed progress
during the past year in labor legislation and administration. He dis
cussed continuing problems of wage earners in our postwar- economy,
reported on the expanded activities of the United States Department
of Labor, and outlined the services available to States through the
Department’s various bureaus. In commenting on the increased
activities of the Department, the Secretary said:
International developments in the labor, economic, and social fields vitally
affect the American worker. Participation by the United States in all phases of
international relations is growing fast, as we all know. Consequently there has
been a substantial increase in the duties and responsibilities of the Department
of Labor in connection with international problems.
Assistant Secretary David A. Morse, who has assumed responsi
bility for the Department’s international affairs, discussed that pro
gram and especially the responsibility of the United States toward the
International Labor Organization. This Government has ratified few
international treaties or conventions of this Organization, largely
because the labor standards they embody are set in this country by
State rather than Federal law.
The Conference endorsed increased participation by States in the
ILO program as proposed in pending amendments to the ILO consti
tution. It urged the United States Department of Labor to bring
together a representative group of employers and workers with a com
mittee of State labor commissioners to determine which ILO con
ventions or treaties are appropriate for submission to the States and to
recommend ways and means of securing State action.
268
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L A B O R L A W S A N D D E C IS IO N S
269
Committee Reports
Recommendations for improving labor standards, which were made
by five committees, appointed at the Conference, are summarized
below.
Safety and health and workmen's compensation.—Increased accident
frequency rates since VJ-day have made it imperative that steps be
taken to reduce this accident toll which results in the loss of thousands
of lives and costs workers and employers an estimated 3)'i billion
dollars a year. It was recommended that State labor departments be
given sufficient personnel and adequate appropriations to render
effective service to industrial establishments. Specific recommenda
tions regarding safety and health included the development of a
uniform safety code for the expanding construction industry, where
accident rates are high, and the maritime industry, whose workers
generally are not covered by State or Federal safety codes.
The Conference urged States not having code-making authority to
seek it in 1947 legislative sessions; elimination of conflicts between
State codes and machine guarding at the source; and improvement of
industrial hygiene and sanitation services, to be administered by State
labor departments.
Although workmen’s compensation laws have been in effect more
than 30 years, 50 percent of the workers are still unprotected by this
tvpe of social insurance. The Conference proposed broader coverage
of workmen’s compensation laws and higher maximum benefits.
Lifetime payments to employees who have sustained permanent total
disability through work injuries, and payment of death benefits to
widows and to dependent children under 18, were urged. Other
recommendations were made for unlimited medical benefits, estab
lishment of second-injury funds, double compensation for injuries to
illegally employed minors, and correlation of the functions of work
men’s compensation and rehabilitation agencies.
Employment service and unemployment compensation.—The Confer
ence delegates recommended that reasonably uniform standards and
procedures should be strengthened by Federal-State cooperation in
order that this country shall continue to have a Nation-wide network
of public employment offices. The following recommendations were
made with regard to the employment service offices, whose principal
duties will be to maintain a high level of postwar employment:
Equal referral opportunities based on occupational qualifications,
without regard to sex, creed, or color; no referral to positions left
vacant by a labor dispute; and referral of workers to most suitable and
desirable jobs, regardless of State boundaries. It was also recom
mended that States having large minority group populations should
employ minority group personnel on their employment service staffs.
728607— 47------ 8
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Tt was recommended that unemployment compensation benefits be
increased to bring maximum weekly payments to $25, payable for 26
weeks, and that payments be extended to cover all employees now
excluded, including those of municipal, county, State, and Federal
Governments, and to provide temporary benefits for seamen previously
employed by the War Shipping Administration. The extension also
would cover persons voluntarily separated for good cause, provide for
payment of temporary disability insurance where State plans or laws
authorize, and remove experience rating provisions from State unem
ployment compensation laws.
Labor education.—Recognizing that labor education is one of the
most successful means of achieving intelligent industrial relations, the
Conference endorsed the Division of Labor Standards’ Labor Educa
tion Service—expanded after a recommendation made at last year’s
Conference—and recommended increased appropriations for the fiscal
year beginning July 1, 1947, for the operation of the service. This
service prepares basic teaching guides on labor legislation, history and
economics, grievance procedure, and other aspects of contract adminis
tration. It also assists universities, unions, and other groups engaged
in labor legislation to develop their own programs.
Migratory workers.—Seasonal labor demands of certain industries
require great numbers of workers at certain times of the year, but very
few at other periods. These migratory workers are in special need of
the legal protection denied them. Though their employment is
irregular and their wages low, they are not generally protected by
minimum-wage, wTage-payment, and wage-collection laws.
The Conference stated that migratory workers should have protec
tion under State and Federal law equal to that afforded other workers.
It was recommended that legislation be passed to give the necessary
authority to State labor departments and the United States Depart
ment of Labor to carry out a program of protective measures for
migratory workers.
Regulation of wages and hours.—Because delegates considered the
present 40-cent Federal minimum wage inadequate to cope with the
increased cost of living, the Conference recommended that the mini
mum be increased. The Conference also urged a Federal statute of
limitations on the filing of wage claims, with similar limitations in
State laws. It was further recommended that the Act be extended
to cover all children employed in establishments engaged in or pro
ducing for interstate commerce.
Other recommendations called for State wage and hour laws for all
workers, elimination of industrial home work, and provision for equal
pay for women. These recommendations called for limiting working
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LABOR LAW S AN D DECISIO NS
271
hours to 8 a day and 48 a week for women with special limitations for
minors. It was proposed that night work for both men and women
be reduced to the minimum necessary for essential processes and
services, and in industries where night work is practiced, it was
recommended that more desirable working conditions and shift differ
entials in pay rates be provided.
WWW
R e c e n t D ecisio n s o f I n te r e s t to L a b o r 1
District Court Rulings in United M ine Workers Case
On N o v e m b e r 18, 1946, the Federal District Court of the District of
Columbia, acting on an application by the Federal Government, is
sued a temporary restraining order 2 forbidding Mr. John L. Lewis
and the United Mine Workers from continuing in effect their notice
of November 15, 1946, purporting to terminate the so-called KrugLewis agreement as of midnight November 20, 1946. In its review
of the facts as they appeared in the complaint, the restraining order
emphasized the fact that it has been the practice of the United Mine
Workers to refuse to work in the mines while there is no contract in
effect, and that if such a stoppage of bituminous-coal production
should occur it would interfere with governmental functions and
adversely affect the public interest. The restraining order also
specifically forbade the defendants’ calling a strike.
On November 21, 1946, after the miners had walked out, the United
States filed a petition with the district court for a rule to show cause
why the defendants should not be punished for contempt, alleging
that they had willfully disobeyed the temporary restraining order.
The court ordered the defendants to appear on November 25, 1946.
After the defendants appeared, and the court found that their reply
had not purged the alleged contempt, it was ordered that the mattei
be set for trial on November 27, 1946.
On November 26, 1946, the defendants filed a motion to vacate the
rule to show cause, alleging, among other things, that under the Nonis
La Guardia Act the district court had no jurisdiction to issue an in
junction in a cause arising out of a labor dispute. The couit, how
ever, on November 29, 1946, denied the defendants’ motion.2 Speaki Prepared in th e Office of th e Solicitor, U . S. D epartm ent of Labor. T he cases covered in this article
represent a selection of th e significant decisions believed to be of special interest. No a tte m p t has been
m ade to reflect all recent judicial and adm inistrative developments in th e field of labor law nor to indicate
the effect of p articular decisions in jurisdictions in which contrary results m ay be reached, based upon local
statu to ry provisions, th e existence of local precedents, or a different approach by the courts to the issue
P * United States v. United M ine Workers o] America et al., U. S. D. C. D . C., N ov. 29,1946; Deo.3, 1946; and
Dec. 4, 1946.
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L A B O R R E V IE W — F E B R U A R Y
194 7
ing on the question of whether the Norris-La Guardi a Act was appli
cable in this case, the court referred to the legislative history of that
act, which, in the view of the court, discloses the fact that amendments
specifically omitting the United States Government from its operation
had been rejected because of the belief that the Government was amply
protected by one of the general principles of law with regard to the
interpretation of statutes. The principle is that when, in a piece of
legislation, the Government is not specifically mentioned or included
by necessary implication, the language of the act does not apply to
the Government. Therefore, the court held that it had the right to
enjoin a labor union which, in its opinion, was about to do something
against the public interest.
After a trial on the charge of contempt, the defendants were found
guilty and fined.2 In its findings of fact, the court reviewed the Gov
ernment’s seizure of the mines under the War Labor Disputes Act,
the subsequent Krug-Lewis agreement, the negotiations leading to
notice that the agreement was terminated, and the issuance by the
court of the restraining order. The court pointed out that the refusal
to terminate the notice that the contract was no longer in force had
perpetrated the work stoppages, and that these work stoppages if al
lowed to continue would result in irreparable injury to the public
interest. It held that the defendants had violated the restraining
order and had interfered with the exercise by the United States of its
sovereign functions.
On December 4, 1946, the temporary restraining order was made a
preliminary injunction 2 in an opinion patterned largely after the one
holding the defendants in contempt. At this writing, the United
States Supreme Court has agreed to review the case, including the
issue of whether the district court’s restraining order and preliminary
injunction violated the Constitution and the Norris-LaGuardia Act.
Fair Labor Standards Act
Executive exemptions.—A number of recent decisions have dealt with
the application of that provision of the Fair Labor Standards Act
which exempts from coverage by the act “any employee employed in
a bona fide executive . . . capacity.” In a case arising in a Wis
consin court,3 it was held that the exemption did not apply to an
employee in charge of plant guards, with the title of “lieutenant,”
as the facts indicated that this employee spent 50 percent of his time
in making inspectional tours, standing guard at gates, and other work
s United States v. United M ine Workers of America et at., U. S. I). C. D. C., N ov. 29, 1946; Dec. 3, 1946;
and Dee. 4, 1946.
3 Katchel v. Northern Engraving and M anulacturing Co. (Wis. Sup. C t., Dec. 18,1946.
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LABOR LAWS AND DECISIONS
273
of the same nature as that performed by the nonexempt guards work
ing under his direction.4
On the other hand, in a case involving a claim for overtime compen
sation by a highly specialized supervisor of a machine-tool operation,
the court held that the executive exemption was applicable even
though the employee in question did a considerable amount of manual
work.5 The court held that most of manual work involved the setting
up of machine operations and was an integral part of the employee’s
supervisory duties, and that the work performed of the same nature
as that performed by other workers in the department did not exceed
20 percent of the workweek. It was likewise held that the require
ments of the executive exemption were met in the cases of officers of
a company fire department6 and an assistant superintendent of
employees on a highway construction job.7
Home workers.—Two recent cases in a Federal district court in
Indiana, involving similar facts, held workers performing work in
their homes for a company producing goods in interstate commerce
to be employees and not independent contractors within the meaning
of the Fair Labor Standards Act.8 In these cases the companies
were engaged in the manufacture of paper novelties, tags, and other
converted paper products. The printing operations required were
done in the companj^’s plants. The folding, cutting, sewing, and
assembling, however, was done by workers who picked up the items
at the plant and worked on them at their homes, following the com
pany’s specifications, and using the company’s materials but their
own machines. On these facts the court ruled in both cases that the
workers were covered by the Fair Labor Standards Act, and the Wage
and Hour Administrator was entitled to an injunction requiring com
pliance with the minimum wage and maximum hour provisions of
that act.
Employees oj intrastate power company .—A circuit court of appeals
has upheld the ruling of a lower court in deciding that the employees
of an intrastate light and power cooperative supplying electrical
energy to local consumers, some of whom were producing goods for
interstate commerce, were engaged in the production of goods for
commerce and were therefore covered by the Fair Labor Standards
Act.9
4 U nder the regulations of the Wage and H our A dm inistrator, in order to qualify as an executive the tim e
spent in duties of th e same nature as those performed by nonexem pt employees m u st not exceed 20 percent
of the num ber of hours worked in the workweek by nonexem pt employees.
5 Langford v. Republic Drill and Tool Co., U. S. D. C. N . D. Til., Dec. 4, 1946.
* McOregcr v. Trojan Power Co., U. S. D . C. N . D. Ohio, Dec. 3,1946.
7 Burns v. Metcalfe Construction Co. ,U. S. D. C. W . D. Mo. N ov., 27, 1946.
8 Walling v. M uncie Novelty Co., U. S. D . C. S. D . In d ., Dec. 16, 1946; Walling v. A . B . C . Novelty C o .,
U. S. D . C. S. D „ Ind., Dec. 16, 1946.
8 Meeker Cooperative Light Corp. v. Walling, C. C, A, §th, P ec. 17, 1946,
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National Labor Relations Act
Post-election challenges.—The United States Supreme Court upheld
the National Labor Relations Board in its practice of refusing to
entertain post-election challenges to the eligibility of a voter who has
participated in a consent election.10
A consent election had been held to determine whether the em
ployees desired to be represented by the union. At the polling place
both the employer and the union had observers to challenge the
eligibility of any voter. The result of the election was a victory for
the union by a 1-vote margin. Thereafter, the company refused to
bargain with the union, contending that 1 of the votes was cast by a
person who was not an employee of the company at the time of the
election. The Board ordered the employer to cease and desist from
his refusal to bargain, but this order was reversed by the Circuit
Court of Appeals on the ground that an employer may refuse to
bargain with a union that has not been elected by a majority of those
who were in fact employees at the time of the election.
In reversing this decision, the Supreme Court held that the refusal
to accept post-election challenges is within the wide degree of discretion
entrusted to the Board under the National Labor Relations Act in
establishing the procedure for insuring fair and free choice of bargain
ing representatives. The court pointed out that the rule that once a
ballot has been cast its validity cannot later be challenged has been
widely followed in political and corporate elections, and it is par
ticularly appropriate in labor-representation elections because of the
great need for stability in industrial relations.
In a dissenting opinion, Mr. Justice Jackson contended that the
Board’s rule provided adequate protection for the employer and the
union, but no such protection for the employees who were opposed to
the union. The majority opinion stated that there was no evidence
that such employees had not been permitted to challenge the eligibility
of any voter. It pointed out that the representatives of the Board
were bound to perform their electoral functions on behalf of all em
ployees, including those with antiunion sentiments, and that “in the
absence of any evidence that such representatives discriminated against
the antiunion employees in preparing the eligibility list or in raising
timely eligibility issues, we cannot say that those employees were
inadequately represented.”
Closed shop and dual unionism.—The discharge of an employee, on
the demand of a union with which the employer has a closed-shop
contract, because the employee acted as an observer for a rival union
in a representation election and was therefore expelled from the union,
10 National Labor Relations Board v. A . J . Tower Co., U. S. Sup. C t., Dec. 2 3 .1M6.
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Federal Reserve Bank of St. Louis
LABOR LAWS AND DECISIONS
275
constitutes an unfair labor practice. Such was the holding of the
Circuit Court of Appeals at San Francisco in a recent case,11 which
upheld the view taken by the National Labor Relations Board in the
latest group of cases on this point. The court pointed out that the
sanction of closed-shop agreements provided in the act does not
permit arrangements which make it impossible for rival unions to
compete for representation. Dual unionism, in which an employee
maintains membership in the existing union in order to retain his
job under the closed-shop contract, but participates in the activities
of a rival union which he desires to see prevail in a representation
election, is frequently necessary and proper, the court stated. It held
that the Board’s interpretation of the closed-shop provision of the act
“in addition to confirming the democratic process in bargaining-agency
elections, prevents the use of the proviso for the perpetuation of a
particular union’s control of the employees once it enters into a closedshop contract with their employer.” It therefore ruled that the
discharge of an employee for dual unionism was discriminatory and
in violation of the act.
Status of informal committees— The question of whether a loosely
formed employees’ committee may constitute a labor organization
within the meaning of the act was raised in a recent circuit court case.12
In that case the employees had created a number of committees com
posed of foremen and nonsupervisory employees, for the purpose of
petitioning the employer for increased wages and improved working
conditions. There was no formal organization, constitution, bylaws,
or collection of dues. The court held that since these committees ex
isted for the purpose of representing employees and participating in
their behalf with the management in matters concerning wages, work
ing conditions, and grievances, they were labor organizations under the
National Labor Relations Act. As such the admitted domination and
support of these committees by the employer was held to violate
section 8 (2) of the act.
Selective Training and Service Act
Award oj arbitrator not effective.—It was held in^two recent cases
that an award of an arbitrator in grievance proceedings under a con
tract between the union and the company has no legal effect upon the
rights of veterans under the reemployment provisions of the Selective
Training and Service Act. In both cases the court set aside an arbi
tration award in which it was held that preference was to be given to
ii Local Lumber and Sawm ill Workers v. N . L . Ft. B ., U. S. C. C. A. (9), Nov. 22,1946.
L R B . v . American Furnace Co., U. S. C. C. A. (7) Dec. 4,1946.
it Koury v. Elastic Stop N u t Corp., U . S. D . C. N . J ., Oct. 1, 1946; DiMangio v. Elastic Stop N u t Carp.
11 N
U. S. D . C. N . J., Oct. 1,1946.
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Federal Reserve Bank of St. Louis
276
M O N T H L Y
L A B O R R E V IE W --- F E B R U A R Y
194 7
union officials under the contract between the union and the com
pany, in spite of the fact that such union officials had less actual
seniority than the veterans.
D eath o f owner and sale o f business. —The reemployment rights of a
veteran, a Federal district court ruled, do not survive the death of the
owner of the business and a bona fide sale of such business.14 In hold
ing that a veteran was not entitled to reemployment by the purchasers
of a business, who had abolished his position, the court distinguished
this case from one in which there is no change in ownership but a mere
transfer of certain operations, or one in which there is a mere change
in the form of the ownership for the purpose of depriving the veteran
of his reemployment rights.
Federal Communications Act
A m e n d m e n t o f 1946 declared unconstitutional.- —The act of 1946 15
which amends the Federal Communications Act of 1934 by making it
a criminal offense to use pressure upon a broadcasting business to
employ persons “ in excess of the number needed to perform actual
services” was declared unconstitutional by a Federal district court.16
The grounds upon which the court held the statute in conflict with
the Constitution were that the act (1) is so framed as to create indefi
niteness in the definition of a criminal offense, thus violating the fifth
amendment (the court specifically referred to the necessary vagueness
in the meaning of “ needed to perform actual services”); (2) makes
peaceful picketing, in order to enforce a request that more employees
be hired, unlawful, thus violating the first amendment (peaceful
picketing has been held to be protected by the free speech clause);
(3) contains a restriction on the employment of labor, thus violating
the thirteenth amendment; and (4) discriminates, without adequate
basis, against employees of broadcasting stations, thus violating the
fifth amendment.
Decisions of State Courts
P icketin g . —A number of recent cases arising in State courts have
dealt with the legality of various activities involving picketing in a
labor dispute.
Both the picketing of the employer in order to obtain a closed shop
and the picketing of the employer’s customers were held to be lawful,
in a decision by the Superior Court in Maine.17 In refusing to enjoin
14 McFadtlen v. Dienelt, U. S. D . C. N . D . Cal., Dec. 4, 1946.
15 Public Law 344, 79th Cong.
'« U. S. v. Petrillo, U. S. D . C. N . D. 111., Dec. 2,1946.
17 Twitchell-Champlin Co. v. Conary, M aine Sup. C t., Oct. 29, 1946.
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Federal Reserve Bank of St. Louis
LABOR LAWS A N D DECISIONS
277
this picketing, the court held that a closed shop is a proper objective
of concerted labor activities, even when undertaken by a union that
represents none of the employees of the employer. In addition the
court, relying on several decisions of the U. S. Supreme Court in
recent years, ruled that the picketing was protected under the free
speech clause of the Constitution. With reference to the picketing of
customers of the employer, the court held that union engaged in a
labor dispute with an employer may lawfully follow the subject matter
of its dispute by peacefully picketing the premises of third parties who
transact business with the employer.
In a case in which a labor union instituted the mass picketing of a
railroad in order to compel the railroad to refuse to handle the prod
ucts of lumber mills with which the union was engaged in a dispute, a
California court issued an injunction against the picketing.18 It held
that the means employed, namely mass picketing, was productive of
violence and hence unlawful. It further held that the objective of
the union activity was likewise unlawful in that it would result, if
successful, in a violation of the railroad’s statutory duty to handle
freight without discrimination.
Mass picketing was likewise condemned in a recent New Jersey
case.19 In granting an injunction restraining the number and place
ment of pickets, the court pointed out that “coercive” picketing is not
protected by free speech. In answer to the contention that the
injunction violated the State Anti-Injunction Act, the court ruled that
the act was purely procedural and did not change the substantive law
with respect to the issuance of injunctions in labor disputes.
In the first of a group of cases filed by various movie producers
against a carpenters’ union, seeking to enjoin violent picketing in
connection with a jurisdictional dipsute, a lower California court dis
missed a motion on the part of the union to dissolve a temporary
injunction that had been issued.20 The contention of the union was
that the company was not entitled to equitable relief in the form of
an injunction because of the doctrine that one cannot come into a
court of equity with “unclean hands.” The union alleged that the
company had formed a conspiracy with other companies in discriminatively discharging their members and refusing to bargain
collectively. The court held, however, that the alleged conspiracy
did not pertain to the subject matter of the injunction and did not
bar its issuance.
is Northwestern Pacific P. P . Co. v. Lumber and Sawmill Workers Union, Calif. Sup. C t. Sonoma C ounty,
N ov. 1, 1946.
is Westinghouse Electric Corp. v. United Electrical Padio and Machine Workers, N . J. C t. of E rr. and A pp.,
Dec. 5, 1946.
_
*
i
2o Warner Bros. Pictures v. United Brotherhood of Carpenters and Joinersf Calif. Sup. C t., Los Angeles
C ounty, N ov. 25, 1946.
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Federal Reserve Bank of St. Louis
Prices and Cost o f Living
In d e x o f C o n su m e rs’ P ric e s in L a rg e C itie s,
D ecem ber 1 9 4 6 1
R e t a i l p r i c e s of goods and services purchased by moderate-income
city families rose 0.7 percent between mid-November and mid-Decem
ber 1946—-the smallest monthly increase since June 15, 1946. This
over-all rise brought the consumers’ price index to 153.3 (1935-39 =
100) on December 15, 1946—15 percent higher than in mid-June 1946,
18 percent higher than a year ago, and 55.5 percent above the August
i T h e “ consumers’ price index for moderate-income families in large cities,” formerly know n as the “ cost
of living index,” measures average changes in retail prices of selected goods, rents and services, w eighted by
quantities bought by families of wage earners and moderate-income workers in large cities in 1934-36. T he
items priced for the index constituted about 70 percent of the expenditures of city families whose incomes
averaged $1,524 in 1934-36.
Since M ay 1944 a statem en t has been included in th e m onthly report on the consumers’ price index,
giving a brief explanation of the index. This statem ent pointed out th a t during the w ar changes in the
quality and th e availability of consumer goods, th e underreporting of over-ceiling prices, and the disap
pearance of special sales were not fully reflected in the indexes.
Beginning w ith the release of the A ugust 1945 consumers’ price index, this statem ent was enlarged to
summarize th e findings of th e P resident’s Com m ittee on the Cost of Living. T he committee had estim ated
in N ovem ber 1944 th a t the index understated the rise in retail prices between Jan u ary 1941 and September
1944 by a m axim um of 3 to 4 points, and th a t if small cities were included in the national average, another
point w ould be added. In D ecember 1945, the Stabilization Director, in connection w ith Executive
Orders 9599 and 9651, indicated th a t if account were taken of continued deterioration of quality and un
availability of merchandise between September 1944 and Septem ber 1945, the over-all allowance for the
period from Jan u ary 1941 to Septem ber 1945 w ould total approxim ately 5 points for large and small cities
combined.
A fu rth er statem ent on this subject will be available in the near future.
T h e indexes in the accompanying tables are based on time-to-time changes in the cost of goods and serv
ices purchased by wage earners and lower-salaried workers in large cities. T hey do not indicate w hether
it costs more to live in one city th an in another. T he d ata relate to the 15th of each m onth, except those for
Janu ary 1941, in tables 1 and 2. T h ey were estim ated for Jan u ary 1, 1941, the base date for determ ining
allowable “ cost of living” wage increases under the L ittle Steel formula and under the wage-price policy of
F ebruary 1946. Jan u ary 1,1941, indexes in tables 1 and 2 have been estim ated by assuming an even rate of
change from D ecember 15, 1940, to the next pricing date.
Food prices are collected m onthly in 56 cities during th e first 4 days of the week which includes the Tues
day nearest the 15th of the m onth. Aggregate costs of foods in each city, weighted to represent food pu r
chases of families of wage earners and lower-salaried workers, have been combined for the U nited States
w ith the use of population weights. In M arch 1943, th e num ber of cities included in the food index was
increased from 51 to 56, and th e num ber of foods from 54 to 61. Prices of clothing, housefurnishings, and
miscellaneous goods and services are obtained in 34 large cities in M arch, June, Septem ber, and December.
In intervening m onths, prices are collected in 21 of the 34 cities for a shorter list of goods and services. R ents
are surveyed sem iannually in m ost of the 34 cities (in M arch and September, or in June and Decem ber).
In com puting th e all-items indexes for individual cities and the ren t index for the average of large cities,
because of the general stab ility of average rents at present, the indexes are held constant in cities no t sur
veyed during the current quarter. Prices for fuel, electricity, and ice are collected m onthly in 34 large cities.
278
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Federal Reserve Bank of St. Louis
279
PRICES A N D COST OF LIVING
1939 level. Prices for food, the most important part of the family
budget, dropped 1.0 percent, but prices for all other major groups of
living essentials surveyed advanced sharply. In the first full month
after the end of price control, prices for clothing, housefurnishings, and
miscellaneous goods and services increased 3.0 percent on the average.
The food bill for city workers’ families declined 1.0 percent. Retail
prices for lard, oleomargarine, all red meats, cheese, citrus fruit, green
beans, and lettuce which were lower on December 15 than on Novem
ber 15, more than offset the continued advances in the retail prices of
cereal and bakery products, butter and milk, canned and dried fruits
and vegetables, coffee, and sugar.
T able 1 .— I n d e x e s o f c o n su m e r s’’ p r ic e s f o r m o d e ra te -in c o m e f a m ilie s a n d p e r c e n t ch a n g es,
D e c . 1 5 , 1 9 4 6 , c o m p a r e d w ith e a r lie r p e r io d s
Dec. 15,
1946
N ov. 15,
1946
Dec. 15,
1945
Aug. 15,
1945
Jan. 1,
1941
Aug. 15,
1939
This
m onth
L ast
m onth
Y ear
ago
V J-day
Wage
base date
M onth
before
w ar in
E urope
G roup
Indexes (1935-39=100)
All item s
----------- ------------- ------
Food _
__________________________
Clolhing _ __________ ________________
"Rent
__ ___
Fuel, electricty, and ice________________
Gas and electricity_________________
O ther fuels and ice_______ _ _____
H ousefurnishings _ _ _______________
Miscellaneous ____________ __________
153.3
R152. 2
129.9
129.3
100.8
98.6
185.9
176.5
187.7
R171.0
140.9
146.4
115.5
92.0
138.3
177.1
136.1
R114.8
91.8
R137.2
R171.0
R132. 5
141.4
149.4
108.3
110.3
94.0
126.1
148.3
124.8
97.6
101.2
105.0
100.8
97.5
104.0
100.2
100.8
93.5
100.3
104.3
97.5
99.0
96.3
100.6
100.4
111.4
95.2
127.2
146.0
124.5
Percent change to Dec. 15 1946
All item s.............. ..............................................
Food
Clothing
"Rent 1
_______________
_ _ ____________
F u e l, e lectricity , and ice
-
____
Gas and electricity. _______________
O ther fuels and ice___
______ ____
TTonsefnrnishings
M
iscellan eous
------------------------
_________
1 Percent change to Sept. 15, 1946.
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Federal Reserve Bank of St. Louis
1
0.7
18.0
18.6
52.1
55.5
1.0
3.2
31.5
18.1
31.9
20.6
.6
.2
.8
3.6
2.7
4.7
- 2 .1
9.7
19.4
9.1
3.7
-3 .4
8.7
21.3
9.3
90.5
74.4
3.1
14.6
-5 .6
33.0
76.7
33.7
98.8
76.0
3.8
18.5
- 7 .1
43.6
76.0
35.6
MONTHLY LABOR REVIEW— FEBRUARY 194 7
280
Clothing prices for moderate-income families rose 3.2 percent during
the first full month following the removal of price controls. Practically
all types of clothing and shoes increased in price. Leather footwear
led the upswing, with men’s and women’s shoes advancing 9 and 7
percent, respectively. Prices were higher for men’s overcoats and
suits, work clothing, and other cotton apparel and for most women’s
clothing items. Women’s rayon dresses and underwear prices had the
largest increases; retail prices of nylon stockings also advanced al
though supplies had improved markedly. Prices for women’s coats
dropped slightly in mid-December because of seasonal sales.
Housefurnishings prices advanced 3.6 percent between mid-Novem
ber and mid-December. Most items in this group were higher, and
increases were attributed to higher cost of merchandise for new stock.
Washing machines, electric and gas refrigerators, and other household
appliances advanced in price more rapidly than furniture, after the
removal of price controls.
T able 2.— P e r c e n t c h a n g e in c o n su m e rs' p r i c e in d e x f r o m s p e c ifie d d a te s to D e c . 1 5 , 1 9 4 6 ,
b y c itie s
N ov. 15,
1946
Dec. 15,
1945
Aug. 15,
1945
Jan. 1,
1941
Aug. 15,
1939
Last
m onth
Year
ago
VJ-day
Wage base
date
M onth
before war
in Europe
City
Average
-
___ __ ________________
_
A tlanta, Ga
_ . ____________________
Baltimore, M d
_ _____
__ ____
B irm ingham , A l a _______ _____________
Boston, M ass ______ _______ __ _____ ___
Buffalo, N . Y
..
. . ____________________
Chicago, 111 __ ___ _______ __
_________ __
C incinnati, Ohio _____ _____ _____________ _ ________
Cleveland, Ohio ______ ___ _ . _______
D enver, Colo ___ ________________________________
D etroit, M ich
____ __ ___________________
H ouston, T ex _____ _________________ _____
Indianapolis, In d _________________________ ___ _
Jacksonville, Fla _______________ Kansas City, M o ___ __ ____ ____ __ ___
Los Angeles, Calif__________ _______________
M anchester, N . H ___________________ . ______
M em phis, T e n n _________ _________ . ________
M ilwaukee, Wis._ _ _ ________
_ _ _ _____
M inneapolis, M inn _ _ _ _________ _ _ _ _ _ _ _
Mobile, A laJ ______________ ____________ _ _ _ _ _ _ _
N ew Orleans, L a _________ _ ___________________
N ew York, N . Y ___________________ ______________ .
Norfolk, V a _____________________________________________
Philadelphia, P a ______ _____ _
Pittsburgh, Pa__ ___________ _ _ ___________________ ^
Portland, M aine ____________________________ ___
Portland, Oreg___________ ______ _________
Richmond, Va ________ _ _ __
St. Louis, M o . _ _ . . . . . . _ ; _______
San Francisco, C a l i f . . . ................... _ ___________
Savannah, G a _____________________
______ __
Scranton, P a __________________ _______ ______________
Seattle, W ash __________________ _
_____
W ashington, D . C __________________ 1_________________
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Federal Reserve Bank of St. Louis
0.7
18.0
18.6
52.1
55.5
.5
.4
1.4
1.4
.3
18.6
17.5
18.7
18.7
16.9
19.5
18.7
17.4
18.4
17.9
17.2
19.6
56.1
54.6
56.0
49. 5
48. 9
51.2
59.0
57.8
60. 9
52.6
54.0
55.0
1
1.4
. 4
. 7
1.5
17.9
18.1
18.9
16.6
19. 6
18.3
15.6
18.1
18. 2
19.4
16. 7
19. 5
18.6
15.3
53.3
53.1
52. 5
51 6
49. 3
51.2
55.8
56.9
56.2
54.7
55.4
51. 2
57.3
61.2
1
14.8
15.6
19. 5
17.3
18.4
18. 7
17.2
15.2
17. 9
19.3
18.0
18. 7
19.9
16.5
49.4
50.7
56.2
56.6
51.8
47.1
53. 0
49.1
53.7
60.0
59.8
55.3
50.2
55.8
22. 2
18.4
17.6
18. 6
18.7
18.0
14.9
21.0
19.4
17.9
18. 8
19.4
17. 5
16.2
60.2
53. 7
56.7
53. 7
53.6
51. 5
54. 7
63.4
56.8
61.1
55.9
57.9
53.7
57.6
18.1
17.8
18.1
17. 8
20. 2
16. 7
17.0
18.4
18. 6
21.1
17.3
20.7
18.3
17.9
49.9
49.7
57.6
60.0
55.2
54.0
52.2
52.3
54.1
61.5
63.3
60.4
56.7
54.2
— .
.
0
.6
.
6
1.3
1 . 0
.4
.8
. 2
. 2
1.1
1
281
PRICES AND COST OF LIVING
Miscellaneous goods and services cost rose 2.7 percent, as the cost
of medical care, particularly hospital rates, continued to increase.
Higher prices for automobiles, newspapers, motion picture admissions,
barber and beauty shop rates, and tobacco also contributed to this
advance. Prices of laundry services and cleaning supplies jumped
sharply between mid-November and mid-December.
Fuel, electricity, and ice costs rose 0.6 percent on the average.
Retail prices of coal increased in most cities in advance of the January
freight rate increase and as supplies were reduced because of the coal
strike. Fuel oil prices moved up 2.4 percent following increases for
crude oil in November. The cost of gas to consumers in Portland,
Oreg., rose 9 percent after a rate change on December 5.
Rents were not surveyed in December 1946.
T able 3.— P e r c e n t ch a n g e in c o n su m e r s’’ p r ic e in d e x , N o v . 1 5 to D e c . 1 5 , 1 9 4 6 , b y c itie s
a n d g r o u p s o f ite m s
Fuel, electricity, and ice
C ity
A v e ra g e ......................
A tlanta, Q a _ ..............
B altim ore, M d -------B irm ingham , Ala----Boston, M ass---------Buffalo, N . Y - ..........
Chicago, 111— ..........
C incinnati, Ohio----Cleveland, Ohio-----D enver, Colo.............
D etroit, M ich ______
H ouston, T ex--------Indianapolis, In d ---Jacksonville, F la -----
Ail
items
0.7
.5
.4
1.4
1.4
.3
-.1
1.4
.4
.7
1.5
Food
-1.0
- 1 .7
- 1 .4
- 2 .5
4.0
4.0
1.6
1.4
.1
-
-.9
-
1.1
- 1 .3
-.1
6.2
2.6
3.7
4.7
1.6
2.2
- 2 .4
- 1 .3
.6
-.6
- 2 .4
-.8
-1 .4
-1.0
.1
- .4
.9
- .9
- 1 .3
-.3
- 1 .7
-.2
1.1
.7
-.4
.3
1.4
1.6
1.1
.3
0
.6
2.2
1.9
2.6
1.8
2.8
4.6
1.4
.7
.1
.5
.1
.2
.1
0
.1
- .1
.8
2.2
.6
1.2
.1
3.8
3.1
.2
N ew Orleans, L a ----N ew Y ork, N . Y ----Norfolk, V a . . . ..........
Philadelphia, P a ----P ittsburg h , P a ..........
Portland, M ain e----Portland, Oreg-------
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Federal Reserve Bank of St. Louis
6.4
2.2
.2
-1 .5
- 1 .5
R ichm ond, V a..........
St. Louis, M o ----- ...
San Francisco, CalifSavannah, G a-------Scranton, P a ........ .
Seattle, W ash -------W ashington, D . C —
0.6
- 1 .3
K ansas C ity, M o---Los Angeles, C alif.. .
M anchester, N . H —.
M em phis, T e n n ........
M ilw aukee, W is----M inneapolis, M in n ..
M obile, A la........... -
1.0
3.2
Total
0
1.0
-
1.3
C loth
ing
.4
2.4
3.2
3.0
2.0
4.4
0
.2
1.2
-.2
.8
.5
Gas
and
elec
tricity
0.2
.1
0
0
1.8
0
0
0
0
0
.4
0
0
0
0
0
-.3
0
- .1
0
0
0
0
0
0
-.1
.2
3.7
0
0
0
0
0
0
0
O ther
fuels
and ice
House- M iscel
furnish laneous
ings
0.8
9.4
.1
0
.7
.5
2.4
.1
2.9
1.9
.3
0
.1
.1
1.1
2.7
2.7
5.0
4.1
2.8
3.1
3.0
5.2
3.1
4.3
1.8
.3
5.2
1.9
3.0
4.7
3.2
2.5
2.5
4.1
1.3
3.7
3.9
3.9
4.9
3.2
4.0
4.6
5.2
4.8
2.0
1.5
1.8
2.0
1.1
1.6
.6
.9
.2
.8
.2
.5
.2
0
.1
0
1.0
1.2
.6
0
1.0
1.6
-.2
1.2
.8
6.5
4.8
1.4
1.5
282
MONTHLY LABOR REVIEW— FEBRUARY 1947
T able 4.— Indexes of consumers' prices for moderate-income families in large cities,
1935 to December 1946
Indexes (1935-39= 100) of cost of—
Y ear and m onth
All items
1935 _______ ____ ____ ______
1936 ______________________
1937 .
__________________
1938 ________________________
1939_________________________
1940 ________________________
1941 ________________________
______ ___________
1942
1943 ________________________
1944 ________________________
1945 ________________________
1945:
J a n . 15_________________
_________
Feb. 15
.
M ar. 15_____ _________
A pr. 15_________________
M ay 15 _ -- . - _______
June 15 . _______ ______
Ju ly 15-- ______ ______
Aug. 15 __ _____ ___
Sept. 15________________
Oct. 15_________________
N ov. 15__________ _____ Dec. 15
____ _______
1946:
Jan. 15_________________
Feb. 15_________________
M ar. 15________________
A pr. 15 ________________
M ay 15__ ______________
June 1 5 ______- ____ ___
Ju ly 1 5 ________________
A n?. 15
__
Sept. 15____
O ct 15
._
N ov. 15_____ _________
Dec. 15___ _ ___________
Food
Clothing
R ent
Fuel, elec Housetricity,
furnish
ings
and ice
M iscel
laneous
98.1
99.1
102.7
100. 8
99.4
100.2
105. 2
116.5
123.6
125.5
128.4
100.4
101.3
105.3
97.8
95.2
96.6
105. 5
123.9
138.0
136.1
139.1
96.8
97.6
102.8
102.2
100.5
101.7
106.3
124.2
129.7
138.8
145.9
94.2
96.4
100.9
104.1
104.3
104.6
106.2
108.5
108.0
108.2
108.3
100.7
100.2
100.2
99.9
99.0
99.7
102.2
105.4
107.7
109.8
110.3
94.8
96.3
104.3
103.3
101.3
100.5
107.3
122.2
125.6
136.4
145.8
98.1
98.7
101.0
101. 5
100.7
101.1
104.0
110.9
115.8
121.3
124.1
127.1
126.9
126 8
127.1
128.1
129.0
129.4
129.3
128.9
128.9
129.3
129.9
137.3
136.5
135.9
136.6
138.8
141.1
141.7
140.9
139. 4
139.3
140.1
141.4
143.0
143.3
143.7
144.1
144.6
145.4
145.9
146.4
148.2
148.5
148.7
149.4
(>)
(')
108.3
(0
(0
108.3
0)
(0
108.3
(i)
(>)
108.3
109.7
110.0
110.0
109.8
110.0
110.0
111.2
111.4
110.7
110.5
110.1
110.3
143.6
144.0
144.5
144.9
145.4
145.8
145.6
146.0
146.8
146.9
147.6
148.3
123.3
123.4
123.6
123.8
123.9
124.0
124.3
124.5
124.6
124.7
124.6
124.8
129.9
129.6
130.2
131.1
131.7
133.3
141.2
144.1
145.9
148.6
152.2
153.3
141.0
139.6
140.1
141.7
142.6
145.6
165.7
171.2
174.1
180.0
187.7
185.9
149.7
150.5
153.1
154.5
155. 7
157.2
158. 7
161.2
165.9
168.1
171.0
176.5
(0
(>)
108.4
(>)
0)
108.5
(')
108.7
108.8
(0
0)
110.8
111.0
110.5
110.4
110.3
110.5
113.3
113.7
114.4
114.4
114.8
115.5
148.8
149.7
150.2
152.0
153.7
156.1
157.9
160.0
165.6
168.5
171.0
177.1
125.4
125.6
125.9
126.7
127.2
127.9
128.2
129.8
129.9
131.0
132.5
136.1
(0
.
i K ents not surveyed in th is month.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
283
PRICES A N D COST OF LIVING
R e ta il P ric e s o f F o o d in D e c e m b e r 1 9 4 6
e t a i l prices of food in December 1946 in relation to those in selected
preceding periods are shown in the accompanying tables.
R
T able 1.— P e r c e n t o f ch a n g e in r e ta il p r ic e s o f fo o d in 5 6 la rg e c itie s c o m b in e d , byc 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
Com m odity group
All foods.............. ..................................................................
Cereals and bakery products. ___________________
TVfeats
______________________________
Ppef and veal
_ _____________________
Pork
______________________ ____
T,amb
_________ _____________
Chickens
_____________________________
Fish fresh and c a n n e d ___ _________________
D airy products
_______________________
F ires
_ ________________________
F ruits and vegetables _
______________________
Fresh
______________________ ______
_________________________
Canned
D ried
- __________ ____ _______________
___________________________
P ever ages
F ats and oils
___________________________
Sugar and sweets
_____________________________
N ov. 15,
1946, to
Dec. 15,
1946
Dec. 15,
1945, to
Dec. 15,
1946
Aug. 15,
1945, to
Dec. 15,
1946
Jan. 15,
1941, to
Dec. 15,
1946
1.0
+31.5
+31.9
+90.1
+98.8
+29.7
+50.8
+58.6
+71.7
+45.7
+ 23.7
+20.7
+47.5
+ 4.1
++3
- 4 .1
+32.5
+58.9
+41.1
+65.7
+38.5
+29.8
+50.1
+58.3
+71.7
+45.7
+20.4
+22.9
+50.6
+17.3
+ .8
- 8 .0
+32.5
+59.0
+41.3
+67.2
+38.5
+49.2
+95.6
+71.5
+124.5
+101.4
+94.9
+125.4
+91.2
+106. 5
+98.3
+93.4
+88.8
+169.1
+93.8
+158. 2
+83.9
+51.6
+106.7
+88.4
+119.7
+101.2
+100.2
+168.7
+115.8
+121.7
+100. 2
+94.6
+88.4
+196.8
+85.7
+145.3
+83.4
-
+ .7
- 2 .8
- 1 .8
- 6 .7
- 3 .2
+ .3
+ 1 .0
+ 1 .2
-.2
+ .3
-.9
+ 2 .9
+ 6 .5
+ 5 .0
-1 5 .2
+ 2 .8
Aug. 15,
1939, to
Dec. 15,
1946
T able 2.— In d e x e s o f r e ta il p r ic e s o f f o o d in 5 6 la rg e c itie s c o m b in e d f b y c o m m o d ity
g r o u p s , on s p e c ifie d d a tes
Com m odity group
Dec. 15,
1946
Nov. 15,
1946
Dec. 15,
1945
Aug. 15,
1945
Jan. 15,
1941
Aug. 15,
1939
This
m onth
Last
m onth
Year
ago
VJ-day
Wage
base
d a te 1
M onth
before
war in
Europe
Indexes (1935-39=100)
All foods..................................... - ....................-
185. 9
187.7
141.4
140.9
97.8
93.5
C ereals an d bakery p ro d u c ts ___________
141.6
197.8
187.6
193.3
198.8
189.4
267.6
200.9
201.1
185.0
180.6
172.6
268.0
176.2
207.3
175.3
140.6
203.6
191.0
207.1
205.4
188.9
265.0
198.5
201.6
184.5
182.3
167.7
251.6
167.8
8 244.4
170.5
109.2
131.2
118.3
112.6
136.4
153.1
221.7
136.2
193.2
177.3
188.4
130.3
168.7
124.9
125.1
126.6
109.1
131.8
118.5
112.6
136.4
157.3
217.8
133.4
171.4
183.5
196.2
130.3
168.6
124.7
124.0
126.6
94.9
101.1
109.4
86.1
98.7
97.2
118.7
105.1
97.4
93.3
93.4
91.4
99.6
90.9
80.3
95.3
93.4
95.7
99.6
88.0
98.8
94.6
99.6
93.1
90.7
92.4
92.8
91.6
90.3
94.9
84.5
95.6
M eats
______________________
Beef and veal ____________________
Pork
_______________
F a mb
__ _ __ __________
Chickens _ _______ ____________
Fish, fresh and canned _____ ______
D airy products __________________ ____
Eggs
_____ ____________________
F r u its and vegetables__________________
Fresh
____ ___ __________
C anned
____- ____________
Dried
________ __________
Beverages
_________________ ______
F ats and oils
______________________
Sugar and sweets______________________
1 Aggregate costs of 61 foods in each city, weighted to represent total purchases by families of wage earners
and lower-salaried workers, have been combined for the United States w ith the use of population weights.
2 T he wage formulas apply to Jan. 1,1941. Jan. 15,1941, is the nearest date for which data on retail prices
of individual foods have been com puted.
8 Revised.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
284
R E T A IL P R IC E S OF FOOD T O
A VER A GE
INDEX
FOR
1 9 3 5 -3 9
C IT Y W O R K E R S
LARGE C ITIE S
=
100
INDEX
MONTHLY LABOR REVIEW— FEBRUARY 194 7
UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
285
PRICES AND COST OF LIVING
RETAIL PRICES
FOR GROUPS OF FOOD
AVERAGE FOR LARGE CITIES
1935-39
220
«
100
220
we a t ;
200
200
J
180
180
/
160
160
140
140
120
120
ALL
FOOD
A
100
100
__ J___
80
220
D/ U R Y
80
220
PR O DUCT S
200
200
/
!
180
160
140
a.
120
120
100
100
80
1^
^ALL
FOODS
___
1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947
728607— 47----- 9
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
80
286
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
T able 3 .— A v e r a g e r e ta il p r ic e s o f 70 fo o d s in 5 6 la rg e c itie s c o m b in e d , D e c e m b e r 1 9 4 6 ,
c o m p a r e d w ith e a r lie r m o n th s
Dec. 15, Nov. 15, Dec. 15, Aug. 15, Jan. 15, Aug. 15,
1946
1946
1945
1941
1945
1939
Article
Cereals and bakery products:
Cereals:
Flour, w h eat___ - _______ _____ 5 pounds.
M acaroni_____ . ______ _________ p o u n d ..
C om flakes______________ ____ -.11 ounces .
Corn m eal______ ______ ___ _____ p o u n d ..
Rice 2___________________ -----------------do ___
Rolled oats____________ _ __________ do ___
B akery products:
Bread, w h ite .- .
_____ __________ do ___
Bread, whole-w heat______ ________ _do____
Bread, ry e______ . . .
----------------do___
Vanilla cookies___ __________ do___
----------------do___
Soda crackers___ - .
M eats:
Beef:
R ound steak ____________ _________ do ___
R ib ro a st,— __ _ ______ __________ do ___
Chuck roast________ ____ _ _________do ___
L iver_____________ __
. ________ do___
H am burger_____________ ___ _____ do___
Veal:
C u tlets________ _________ ----------------do___
R oast, boned and rolled 2— . ________ do___
Pork:
Chops__________________ -------------- do___
Bacon, sliced___ ________ _____ _ __do___
H am , sliced_____________ __________ do___
H am , whole_____ ______ ----------------do___
Salt p o rk ________________
_______ do___
Sausage 2__________ ____
________ do___
Lam b:
Leg------------------------------- ___ ___ ___ do___
R ib chops___________
------- --------do___
Poultry : R oasting chickens______ _________ do___
Fish:
Fish (fresh, frozen)________ . --------------- do ___
Salmon, pinK___________ . . . ___16-ounce can ..
Salmon, red 2__________
----------------do_-_
D airy products:
B u tte r .______ _ ___________
. . ___p o u n d ..
Cheese____________ _______ __ ------- _do.__
M ilk, fresh (delivered)______
_ ---------q u a rt..
M ilk, fresh (store)___. . . _____ --------------- do___
M ilk, evaporated____ _______ .14^-ounce can ..
Eggs: Eggs, fresh________________ . . . . . . . . dozen..
F ru its and vegetables:
Fresh fruits:
A pples__________________ ________ p o u n d ..
B ananas_____ _ _____ __________ do ___
Oranges_______________ . ------------- dozen..
G ra p e fru it2_____________ ----------------eac h ..
Fresh vegetables:
Beans, green_____________ . . . _____ p o u n d ..
Cabbage_________________ _________ do ___
C arrots______________ . . ________ b u n c h ..
L ettu ce___________ _____ ----------------h e a d ..
O nions__________________ ________ p ound.
Potatoes______ ________ _____ 15 pounds.
Spinach_________
________ p o u n d ..
Sw eetpotatoes___ ______ --------------- do___
Canned fruits:
Peaches__________________ . N o. 2)4 c a n ..
P in e a p p le ..____
______ . . . ---------- do___
G rapefruit juice__________ ---------N o. 2 c a n ..
C anned vegetables:
Beans, green_____________ ___ ___ __do___
C orn__________ .
----------------do ___
P e a s ........... ........ . .
----------------do ___
Tom atoes________________ __________ do ___
Soup, vegetable 2_________ . . . ll-ounee c a n ..
See footnotes a t end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
onth
Wage M
before
base
in
date 1 Ewuar
ro p e
This
m onth
Last
m onth
Y ear
ago
Cents
41.1
19.0
12.0
9.0
16.3
10.7
Cents
40.7
18.7
11.8
9.0
16.4
10.7
Cents
32 0
15.6
9.2
6.5
12.9
10.4
Cents
32.2
15.8
9.2
6.4
13.0
10.4
Cents
20.7
13.8
9.8
4.2
7.9
7.1
Cents
17.9
14.0
9.7
4.0
7.5
7.1
11.5
12.6
13.4
0
24.5
11.5
12.4
13.2
37.2
24.2
8.8
9.7
10.0
29.0
18.8
8.8
9.7
9.9
28.6
18.9
7.8
8.7
9.0
25.1
15.0
7.8
8.8
9.2
(3)
14.8
64.3
55.2
46.3
52.7
41.4
65.6
55.9
47.1
53.5
43.1
40.9
33.0
28.3
37.3
27.5
40.9
33.0
28.4
36.9
27.4
38.6
31.5
25.2
0
0
36.4
28.9
22.5
(3)
(3)
69.7
52.3
70.3
53.2
44.7
35.9
44.4
34.3
45.2
42.5
u (3)
(3)
57.7
75.2
83.7
65.3
50.3
55.0
66.5
76.1
84.8
67.3
52.8
57.4
37.3
41.2
49.8
35.0
21.9
38.8
37.2
41.2
49.4
34.5
22.0
38.7
29.1
30.1
45.1
26.2
16.7
(3)
30.9
30.4
46.4
27.4
15.4
(3)
59.4
65.6
57.2
62.3
66.6
57.0
40.3
45.6
46.9
40.5
46.0
47.6
27.8
35.0
31.1
27.6
36.7
30.9
0
0
0
0
31.1
52.1
0
23.2
40.9
0
23.4
39.7
0
15.7
26.4
91.5
65.8
20.3
19.4
14.0
69.8
88.6
69.6
20.0
19 2
13.9
69.9
54.7
35.5
15.6
14.5
9.9
68.2
49.9
35.7
15.6
14.5
10.1
60.6
38.0
27.0
13.0
11.9
7.1
34.9
30.7
24.7
12.0
11.0
6.7
32.0
12.4
14. 5
42.6
8.1
12.0
13.7
48.9
8.9
14.3
10.5
49.1
9.0
13.1
10.5
51.3
11.0
5.2
6.6
27.3
(3)
4.4
6.1
31.5
(3)
20.0
5.4
9.6
12.6
4.8
61.4
11.6
10.0
22.7
5.1
9.5
13.2
4.6
60.9
10.6
9.4
19.6
5.0
8.9
12.7
7.2
64.3
11.3
9.3
18.7
6.0
9.1
12.5
7.9
73.8
11.6
11.4
14.0
3.4
6.0
8.4
3.6
29.2
7.3
5.0
7.2
3.9
4.6
8.4
3.6
34.4
7.8
5.5
32.1
0
13.2
31.8
31.2
14.8
27.8
26.4
14.3
27.2
26.3
14.4
16.5
20.9
(3)
15.8
17.9
15.8
21.1
14.3
15.7
17.3
15.6
20.0
14.1
13.3
14.8
13.4
12.5
13.2
13.2
14.8
13.2
12.2
13.2
10.0
10.7
13.2
8.4
(3)
* VJday
0
12.8
23.1
17.1
21.0
0
10.0
10.4
13.6
8.6
0
287
PRICES AND COST OF LIVING
T able 3.— A v e ra g e r e ta il p r ic e s o f 70 f o o d s in 5 6 la rg e c itie s c o m b in e d , D e c e m b e r 1 9 4 6 ,
c o m p a r e d w ith e a r lie r m o n th s — Continued
Dec. 15, Nov. 15, Dec. 15, Aug. 15, Jan. 15, Aug. 15,
1939
1941
1945
1945
1946
1946
Article
F ruits and Vegetables—C ontinued
D ried fruits: P ru n es.............. ....... ..............p o u n d
D ried vegetables: N a v y beans------------------ do----Beverages:
Coffee..................... - ..............................._
d o . .. .
Tea
...........................- .- H p o u n d ..
Cocoa 2. ! ” . —.......... ................. - .............. H p o u n d ..
F a ts and oils:
L a r d ..------------------- --------------------- Pc
Shortening other th a n lard:
In c arto n s...................... ........................." ' 4 ° ----In other c o n ta in ers..---------- ---------------d o ...
Salad dressing.-----------------------------------... p i n t .
Sugar and sweets:
Sugar_____________ _______ - .........- ...........p o u n d Corn siru p _________________________ 24 ounces..
M olasses2..................................... — 16 fluid ounces.
M onth
Wage before
base
w ar in
date 1 E u ro p e
This
m onth
Last
m onth
Y ear
ago
VJday
Cents
25.6
21.1
Cents
23.8
20.2
Cents
17.4
11.3
Cents
17.4
11.5
Cents
9.6
6.5
Cents
8.8
5.8
44.1
24.1
12.5
41.9
24.1
12.1
30.7
24.0
10.4
30.5
24.2
10.4
20.7
17.6
9.1
22.3
17.2
8.6
35.1
52.6
18.7
18.8
9.3
9.9
(«)
44.3
39.3
42.5
35.4
48.3
41.3
44.9
38.3
42.5
35.2
46.6
19.8
24.5
25.6
23.7
31.0
29.8
20.0
24.5
24.2
23.9
28.6
30.5
11.3
18.3
20.1
15.6
17.9
(3)
. 11.7
20.2
(3)
16.5
17.9
(3)
9.4
19.4
21.0
9.1
19.8
20.8
6.7
15.7
20.4
6.7
15.8
20.4
5.1
13.6
17.3
5.2
13.7
17.6
1 T he wage formulas apply to Jan u ary 1, 1941. Jan u ary 15, 1941, is th e nearest date for w hich d ata on
retail prices of individual foods have been computed.
2 N ot included in index.
2 N ot priced.
< Composite price no t com puted,
s N o t available.
T able 4.— I n d e x e s o f a v e ra g e r e ta il p r ic e s o f a ll f o o d s , b y c itie s f o n s p e c ifie d d a tes
Dec. 15,
1946
N ov. 15,
1946
Dec. 15,
1945
Aug. 15,
1945
Jan. 15,
1941
Aug. 15,
1939
This
m onth
L ast
m onth
Y ear ago
V J-day
Wage
base
date 2
M onth
before
w ar in
Europe
C ity
Indexes (1935-39=100)
U nited S tates--------------------------------
185.9
187.7
141.4
140.9
97.8
93.5
A tlanta, G a .----- ----------------- --------Baltim ore, M d ___________________
Birm ingham , Ala-------------------------Boston, M ass------------------------- -----B ridgeport, C onn--------------------------
188.7
192.3
198.4
178.1
180.7
192.0
195.1
203.5
177.8
179.5
141. 6
148.1
145.2
134.5
136.8
142.1
149.1
147.5
135.7
137. 4
94.3
97.9
96.0
95.2
96.5
92.5
94. 7
90.7
93 5
93.2
Buffalo, N . Y . . . ------ --------------------B utte, M o n t.................... .......................
Cedar R apids, Iow a A ................ .........
Charleston, S. C -------- ------------ -----Chicago, 111.............................................
175.8
180.2
192.7
184.2
187.0
175.4
180.8
192.1
188.2
189.4
137.6
139.2
144.3
138.9
139.3
138.4
138.7
145.3
139.7
139.2
100.2
98.7
95.9
95.9
98.2
94.5
94.1
C incinnati, O hio.------- ------------ -----Cleveland, O h io .................... ..............
Colum bus, Ohio..............- .....................
Dallas, T e x .........................................Denver, Colo.........................—..............
184.0
191.4
174.0
187.1
190.6
187.0
193.1
179.4
188.7
192.7
138.7
144.8
133.5
137.5
141.7
140.0
145.6
134.0
138.9
139.3
96.5
99.2
93.4
92.6
94.8
90.4
93.6
88.1
91.7
92.7
D etroit, M ich .................................... —•
Fall R iver, M ass.........- ........................
H ouston, T ex— ....................... - ...........
Indianapolis, Ind............... ...............
Jackson, M iss.3—..................................
179.2
177.2
189.9
184.3
200.8
181.6
182.6
190.0
187.3
203.4
138.3
134.8
140.9
137.7
150.0
138.4
134.1
141.2
137.7
151.2
97.0
97.5
102.6
98.2
105.3
90.6
95. 4
97.8
90.7
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
95.1
92.3
288
M O N T H L Y LABOR REVIEW---- FEBRUARY 1 9 4 7
T able 4.— I n d e x e s o f a v e ra g e r e ta il p r ic e s o f a ll f o o d s , b y c itie s ,1 on s p e c ifie d d a te s — Con.
Dec. 15,
1946
N ov. 15,
1946
Dec. 15,
1945
Aug. 15,
1945
Jan. 15,
1941
Aug. 15,
1939
This
m onth
Last
m onth
Y ear ago
V J-day
Wagebase
date 1
M onth
before
w ar in
Europe
C ity
Indexes (1935-39=100)
Jacksonville, F la --------------- _ _ -------K ansas C ity, M o ... ___ _ __________ Knoxville, T en n .3 _
L ittle Rock, A rk ......... _ ...... ......................
Los Angeles, C a lif .._
.. -----------------
194.8
175.4
220.4
184.8
195.1
199.1
178.0
226. 5
186.3
198.1
150.7
135.3
159.8
139.8
150.9
152.0
135.4
160. 6
140.4
145.9
98.8
92.4
97.1
95.6
101.8
95.8
91.5
Louisville, K y . . .
_ ___________
M anchester, N . H _____
.
M em phis, T en n _________________ ____
M ilw aukee, W is. _______ . . ________
. ______ _
M inneapolis, M i n n ___...
178.6
186.7
206.0
179.7
180.2
184.9
185.6
207.3
184.1
181.7
135.2
137. 3
151.8
139.1
135.1
135.0
136.4
150. 9
139.4
133.2
95.5
96.6
94.2
95.9
99.0
92.1
94.9
89.7
91.1
95.0
M obile, A la----------------------------------------N ew ark, N . J __
____
_________
N ew H aven, C onn___ _ ___ ________
N ew Orleans, L a _____
__ _ _______
N ew Y ork, N . Y ______________________
191.0
ISO. 4
179.1
202.4
186.1
193.8
181.7
179.0
207. 4
188.6
148.9
144.0
135.8
152.7
143.3
152. 3
143.4
137.2
156. 5
141. 7
97.9
98.8
95.7
101.9
99. 5
95.5
95.6
93.7
97.6
95.8
Norfolk, V a___________ ______ . . . ____
Omaha, N eb r
..........
.....
Peoria, 111__________ . . . ___ _ _ ______
Philadelphia, P a ____ _ __ ____________
Pittsb u rg h , P a __ . _ . _________ . . .
195.0
182.9
186.2
181.8
187.7
197.0
184. 1
190.3
181.6
188.5
145.2
134. 5
145.7
138.7
140.3
146. 1
131.8
145. 9
138.9
141.3
95.8
97.9
99.0
95.0
98.0
93.6
92.3
93.4
93.0
92. 5
P ortland, M ain e___ __________________
Portland, Oreg___________________ ____
Providence, R. I
.. . .. ...
__________
_____
R ichm ond, Va._
Rochester, N . Y__ _________ _________
180.5
196.0
184.0
186.5
176.8
178.9
194.8
186.7
188.2
176.9
135.2
153.9
140.3
138.6
137.7
135.7
150.9
141.6
138.3
137.8
95.3
101. 7
96.3
93.7
99.9
95.9
96.1
93.7
92.2
92.3
St. Louis, M o _______ _ . . . _______ . . .
St. P aul, M in n ________________________
Salt Lake C ity, U ta h ...
...
. . . . ..
San Francisco, C alif__________________ .
Savannah, G a ___
_____ . .
189. 3
177.7
190.6
204.6
205.8
191.8
180. 1
191.9
205.2
209.4
144.1
133.7
146.5
154.1
154.4
144.0
132. 1
143.9
147.1
157.5
99.2
98.6
97.5
99.6
100.5
93.8
94.3
94.6
93.8
96.7
Scranton, P a ______ _
...
_______
Seattle, W ash ___ _
___ _
Springfield, 111_________________________
W ashington, D . C ___ _ ________ ____
W ichita, K ans.3 . . . .
.
.
_____
W inston-Salem , N . C.3
__________
185.2
195.9
191.6
186.1
195.5
195.3
185.6
194.6
194.9
186.8
198.5
200.0
141.3
149.6
146.5
140. 9
152.1
142.3
141.3
145.8
146.1
141.7
149.8
143.4
97.5
101.0
96.2
97.7
97.2
93.7
92.1
94.5
94. 1
94.1
94.0
94.6
1 Aggregate costs of 61 foods in each city, w eighted to represent to tal purchases b y families of wage earners
and low-salaried workers, have been combined for th e U nited States w ith the use of population weights.
2 T he wage formulas ap p ly to Jan u ary 1, 1941. Jan u ary 15, 1941, is the nearest date for w hich d ata on
retail prices of individual foods have been com puted.
s June 1940=100.
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Federal Reserve Bank of St. Louis
289
PRICES AND COST OF LIVING
T able 5.— I n d e x e s o f r e ta il f o o d p r ic e s in 5 6 la rg e c itie s c o m b in e d , 1 9 1 3 to D ece m b e r 1 9 4 6
[1935-39=lOOj
All
foods
index
Year
1913
1914
1Q1 5
1916
1917
1Q1K
1Q1Q
1Q?0
1921
1922
192.2
1924
192fi
1926
1927
1928
1929________
79.9
81.8
80 9
90. 8
116 9
124 4
149 8
168 8
128 .2
119 9
124 0
122 8
1.22 9
1.27 4
132.3
130. 8
132.5
Year
1930________
1931________
1932
1933 ______
19.24
1935
1936
1937
19,38
19.29
1940
1941
1942
1943
1944________
1945________
All
foods
index
Y ear and m onth
126.0
103.9
86.5
84.1
93. 7
100. 4
101.3
105. 3
97.8
95.2
96.6
105.5
123.9
138. 0
136.1
139.1
1945
Jan u ary __
F e b ru a ry — . . .
M a r c h . __
A pril __ _ _ M a y _____ ____
_____
J u n e. .
Ju ly ___________
A ugust.................
S ep tem b er,.
October . . . .
N ovem ber
,
D ecem ber____
All
foods
index
137.3
136.5
135.9
136.6
138.8
141.1
141. 7
140.9
139.4
139.3
140.1
141.4
Year and m onth
1946
Jan u a ry _______
F e b ru a ry ------M arch ______ A pril__________
M a y __________
J u n e .. ----------J u ly ---------------A ugust----- -----Septem ber. . .
O ctober______
N ovem ber__
D ecem ber...
.
All
foods
index
141.0
139.6
140.1
141.7
142.6
145.6
165.7
171.2
174.1
180.0
187.7
185.9
'
W h o lesa le P ric e s in D e c e m b e r a n d Y e a r 1 9 4 6
ADVANCES for nonagricultural commodities were responsible for an
increase of 0.9 percent in average primary market prices in December
1946. Prices of agricultural commodities declined from November
peaks. The Bureau of Labor Statistics general index of commodity
prices in primary markets reached a new postwar high—140.9 percent
of the 1926 average; this was 31.6 percent above December 1945 and
87.9 percent above August 1939 levels.
The advance over the year, most of which occurred in the last 6
months, was greater than in any year since World War I and many
times the moderate rises of the three preceding years. From June
1946 to December 1946, wholesale prices increased 24.8 percent.1
Average prices of all commodities other than farm products and
foods rose 3.3 percent in December, reaching a year-end level 55.7
percent higher than at the beginning of the war. Prices of farm
products and foods were lower. Raw materials declined fractionally,
while semimanufactured and manufactured products increased 5.5
and 0.7 percent, respectively.
Building materials led the price advance in December 1946 with an
average rise of 8.5 percent. Lumber prices (with sharp increases for
Southern pine, Douglas fir, and other types) rose 18.3 percent to a level
higher than their World War I postwar peak and more than
times
as high as in August 1939. There also were substantial advances,
reflecting higher costs, for pigments and mixed paints, plumbing and
heating fixtures, and other miscellaneous building materials, particu
larly metallic products.
i
A review of the year will be published in the M arch 1947 issue of the M onthly Labor Review and a brief
prelim inary statem ent, which is available upon request, was issued in mimeographed form on December 30,
1946.
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Federal Reserve Bank of St. Louis
290
MONTHLY LABOR REVIEW— FEBRUARY 194 7
Average prices of chemicals and allied products in December 1946
were 5.7 percent higher than in November, largely reflecting the sharp
increases for some scarce commodities which occurred in mid-Novem
ber, immediately after decontrol.
Price increases in all subgroups contributed to the 3.5-percent rise
for metals and metal products. Following their initial advance after
decontrol in November, there were further sharp increases for basic
nonferrous metals, with lead and tin prices reaching all-time peaks,
and antimony, copper, nickel, and zinc prices also advancing. Pig
iron prices increased, and a general readjustment of base prices and
extras in the steel industry caused increases of varying amounts for
major semifinished and finished steel products.
The rise of 2.3 percent in the index of miscellaneous commodities
was due primarily to higher prices for wood pulp, paper, and boxboard and soap. Higher domestic quotations for wood pulp followed
recent Canadian increases. Price advances for boxboard and paper
reflected increased costs. Acute scarcity combined with higher
production costs resulted in increases ranging from 4% percent to more
than 20 percent for soaps. Cattle feed prices dropped 8.1 percent,
with increased supplies of feed corn.
In the fuel and lighting materials group, which rose 1.7 percent in
December, bituminous-coal prices increased 1.1 percent as mines
raised prices of stoker coal, in heavy demand, to cover higher costs of
crushing. Higher crude oil prices were reflected in increased prices
for fuel oil, gasoline, and kerosene. Realized prices for natural and
manufactured gas were higher.
Except for raw silk, prices of most textile products a'dvanced in
December. New allotments of men’s underwear were made at sub
stantially higher levels. Price increases for rayon staple and filament
yarn immediately following decontrol in November resulted in higher
average prices for December. Cotton goods, clothing, artificial
leather, and woolen and worsted goods advanced in price, largely re
flecting higher manufacturing costs. Prices of burlap, raw jute and
jute yarn, and manila hemp increased. Lack of demand for manu
factured silk products, particularly hosiery, at prevailing high prices,
was responsible for lower raw-silk prices.
Small increases for a number of commodities, including furniture
and furnishings, accounted for the 1.7-percent rise for housefurnishings
goods, as manufacturers continued to adjust prices upward following
decontrol.
As a group, hides and leather prices rose 2.4 percent in December.
The increases for shoes and leather, reflecting earlier cost increases,
more than offset the continued declines for hides which amounted to
as much as 15 percent for cow hides.
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Federal Reserve Bank of St. Louis
PRICES AND COST OF LIVING
291
In contrast to the general upward trend, prices of agricultural com
modities declined in December. As a group, farm products were
down 1.0 percent. Ample supplies of the new crop were responsible
for lower corn quotations. Buyers’ resistance to high prices of meats
following decontrol brought general declines for livestock. Fresh
fruits and vegetables decreased on the average and egg prices weie
seasonally lower. Spot cotton prices increased and quotations for
domestic wool advanced as the Commodity Credit Corpoiation raised
its selling prices to cover parity. There also were increases in domestic
prices for foreign wools following advances in foreign markets. Since
August 1939 the index for farm products advanced 175.6 percent a
greater increase than for any other major group.
Foods were down 3.2 percent as a group to a level 47.4 percent above
a year earlier and 138.2 percent above August 1939. On the average,
meat prices dropped 7.2 percent reflecting good supplies. Poultry
prices advanced. Dairy products dropped 1.6 percent during the
month as fluid milk declined seasonally at Chicago and cheese prices
decreased substantially. Most cereal products increased during the
month, reflecting good export demand. Wheat flour prices averaged
4.5 percent higher and rye flour was up more than 9 peicent. Among
other foods, there were sharp price increases for cocoa beans and
certain fats and oils. Sugar prices advanced under the terms of an
agreement with Cuban producers linking prices to the Bureau’s retail
food index. Substantial declines from recent high levels occurred
for black pepper, lard, and edible tallow.
Index numbers of wholesale prices by groups and subgroups of
commodities and percentage changes for various periods are shown
in table 1. Annual index numbers for selected years are shown in
table 2.
T able 1.— I n d e x e s o f w h o le sa le p r ic e s b y g r o u p s a n d su b g r o u p s o f c o m m o d itie s,
D e c e m b e r 1 9 4 6 c o m p a r e d w ith p r e v io u s m o n th s ________________
Indexes (1926=100)
Groups and subgroups
F arm products
_________________
Grains
_________________
Livestock and p o u ltr y .- __ ____________
O ther farm products
- ________
£>airy products
_____- _________
Cereal products
____________ F ru its and vegetables
__________
M eats
--____________ —
O ther foods
_ _________ ____
Hides and leather products
____________
H ides and skins_______________________
T,pothor
_________ ________
O ther leather p ro d u cts........ ..........................
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
D e
N o
D e
cember vember cember
1945
1946
1946
• 140.9 2 139.7
169.8
168.1
165.4
163.0
197.4
194.7
153.3
152.5
165.4
160.1
182.9
180.0
136.1
139.5
139.5
134. 5
202.8
188.2
141.4
139.0
172.5
176.7
162.9
169.9
221.0
216.5
178.1
185.0
123.5
123.6
107.1
131. 5
133.2
129.6
131.3
108.6
113.8
95.7
128.7
107.9
100.6
118.9
126.9
117.6
104.1
115.2
Percent changes to
December 1946 from—
292
M O N T H L Y LABOR REVIEW---- FEBRUARY 1 9 4 7
T able 1 .— I n d e x e s o f w h o le sa le p r ic e s b y g r o u p s a n d s u b g r o u p s o f c o m m o d itie s,
D e c e m b e r 1 9 4 6 c o m p a r e d w ith p r e v io u s m o n th s — Continued
Percent changes to
D ecem ber 1946 from—
Indexes (1926=100)
Groups and subgroups
D e
N o
D e
D e
A ugust N o
cember vem ber cember
1939 vem ber cember August
1939
1946
1945
1945
1946
1946
____
134.7
Textile products _____ _____ _
C lothing_____ _____ ______ _ _____ 129.8
C otton g o o d s ____
____________
181.6
96. 9
Hosiery and underw ear
_ _ ___ __ __
R ay o n ______
_
_ ___ ___
_ _
33. S
Silk_____________
103. 2
Woolen and worsted goods _______ _ ___
119.0
O ther textile products _ _ ___ __ _ _____
168.1
96.1
Fuel and lighting m aterials___ _ ___ ____ _
_ ___ __
A n th ra c ite .,- ______
113.7
B itum inous coal______
_ _ _ _ _ _ __
138.9
Coke__ _ ___ __ _ __
147.5
E lectricity. ________
____ ___
(3)
G as_________________________ __
(3)
Petroleum and products____ ______ _
75.8
M etals and m etal p ro d u cts.__ _ _ _ ___ _ _ i 134. 7
A gricultural im plem ents. _.
__ _____ 117.1
F arm m achinery _
118.6
Iron and steel_______ _ __ ___________
117.4
M otor vehicles. _ _ ._ _ _ __ ___ ____
' 151.0
Nonferrous m etals___
_ __ 129.3
P lum bing and h eatin g . . _
..114.9
Building m aterials_____ _ _ _ _ _ _ _ __
157.8
__
_. . . . .
130.0
Brick and tile _____ _
C em ent_____
______ _
____
106.9
L um ber__ _________________________ 227. 2
P a in t and p ain t m aterials____ ________
155.4
Plum bing and heating. . . .
114.9
Structural steel__________________ __
..120. 1
Other building m aterials. __________ __ 131.8
Chemicals and allied products______ ______
125. 7
Chemicals.
111.8
Drugs and pharm aceuticals. __ _ _ ___ _ 181. 2
Fertilizer m aterials. _ ______ _______
95.1
Mixed fertilizer___ _ _______ _ ___ __
93.6
Oils and fats___ ____________________ _
203.0
Housefurnishings goods. __ .__ _______ _ _
120.2
Furnishings_____ ___
126.3
F u rn itu re_____
113.9
M iscellaneous. _
_____
_
108.9
Automobile tires-tubes
________ __
73.0
C attle feed_____________ ______ .
193. 8
Paper and pulp __. ____________ _.
136.4
Rubber, cru d e.__ ___
.
_____
46. 2
Other miscellaneous _ _
_ _
117.0
R aw m aterials___
153.2
Sem im anufactured products__ ___
136. 2
M anufactured p ro d u c ts_____ _
i 135. 7
All commodities other than farm p ro d u c ts.._ i 134. 8
All commodities other th an farm products
and foods________
___ _
i 124. 7
131.3
127.9
174. 7
89.3
30.2
115.0
117.7
161.3
94.5
113. 5
137. 4
147.5
(3)
84.4
73.4
i 2130. 2
112. 5
113.8
114.0
12148. 2
118. 4
107. 2
145.5
129.1
107.0
192.1
151.3
107.2
120. 1
125.3
118.9
106.9
152.8
96.3
91.1
191.0
118.2
124.4
111.8
106.5
73.0
210.8
127. 7
46.2
113.3
153.4
129.1
i 2134. 7
i 2132. 9
101.4
107.4
125. 5
73.5
30.2
(3)
112.7
101.9
84.8
103.4
125.0
134.9
68. 7
77. 7
61.6
105.6
98.1
99.1
101.0
112.8
85.8
95.0
119.5
116.7
100. 5
157.8
107.8
95.0
107.3
105. 9
96.1
97.1
112.3
81.9
86.6
102.0
104.7
107.9
101.6
94.8
73.0
159. 6
109. 3
46.2
98.9
119.2
97.6
102.5
101.6
67.8
81.5
65. 5
61.5
28. 5
44.3
75.5
63.7
72.6
72.1
96.0
104. 2
75. 8
86. 7
51.7
93.2
93. 5
94. 7
95.1
92. 5
74.6
79.3
89.6
90.5
91.3
90.1
82.1
79.3
107. 3
89.5
74.2
83.8
77. 1
65.5
73. 1
40.6
85.6
90.0
81.1
73.3
60. 5
68.4
80.0
34. 9
81.3
66. 5
74.5
79.1
77.9
+ 2 .6
+ 1 .5
+ 3 .9
+ 8 .5
+11.9
-1 0 .3
+32.8
+20.9
+44.7
+31.8
+11.9
+ 4 .2
+ 1 .7
+ .2
+ 1.1
0
+ 5 .6
+65.0
+13.3
-i-io.o
+ ii.i
+ 9.3
+98.7
4-59.3
+177.3
+57.6
4-18.6
+133.0
+57.6
+163. 9
+32.4
+57. 7
+44.7
+41.6
+ 3.3
+ 3 .5
+ 4.1
+ 4 .2
+ 3 .0
+1. 9
+ 9 .2
+7. 2
+ 8 .5
+ .7
-.1
+18.3
+ 2 .7
+ 7 .2
0
+ 5 .2
+ 5 .7
+ 4 .6
+18.6
- 1 .2
+2. 7
+ 6 .3
+ 1 .7
+ 1 .5
+ 1 .9
+ 2 .3
0
- 8 .1
+ 6 .8
0
+ 3.3
-. 1
+5. 5
+. 7
+ 1 .4
+23.1
+27.6
+19. 4
4-19.7
4-16.2
+46.6
+44. 5
+25. 2
+25.2
+23.4
+50.7
+20. 9
+32.1
+11. 4
+ 6 .4
+44.0
+44.2
+20.9
4-11. 9
+24. 5
+30. 8
+15. 1
+61.4
+16. 1
+8.1
+99.0
+ 14.8
+17.1
+12.1
+ 14.9
0
+21.4
+24.8
0
+ 18.3
+28.5
+39.5
+32. 4
+32.7
+73.3
4-44. 9
+76.1
+43.6
+17.1
+152. 2
+89. 3
+44.9
+11. 9
+47.3
+69.4
+33.4
+ 135.0
+45.2
+28.0
+400. 0
+40.4
+40. 3
4-40.4
+48.6
4-20.7
+183. 3
+70. 5
-1-32.4
+43.9
+130. 4
+82.8
+71.6
4-73.0
i 2120. 7
100. 5
80.1
+ 3 .3
+24.1
+55. 7
1 Includes current m otor vehicle prices.
Motor vehicles.—The rate of production of motor vehicles in October 1946 exceeded the m onthly average
rate of civilian production in 1941, and in accordance w ith the announcem ent made in the September release
the Bureau introduced current prices for m otor vehicles in the October calculations. D uring the war,
m otor vehicles were not produced for general civilian sale and the B ureau carried April 1942 prices forward
in each com putation through September 1946.
If April 1942 prices of m otor vehicles had been used after September 1946, the indexes for the groups of
which m otor vehicles is a com ponent would have been:
Indexes (1926=100)
N oDe- Year
vember cember 19!fi
All com m odities______________________ :_____________________ _____ __ 137.9 139.0 120.7
M etals and m etal products___________________________________ „_____ 117.0 120.5 112.3
M anufactured products__________________________ __________________ 131.7 132.5 115.4
All commodities other th a n farm p roducts_______________________ ____ 130.7 132.4 114.3
All commodities other th a n farm products and foods__________________ 117. 8 121. 6 108. 8
These special indexes will be published as long as the need for them continues.
2 Revised.
i N o t available.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
293
PRICES AND COST OF LIVING
T able 2 .— A n n u a l in d e x n u m b e rs o f w h o lesa le p r ic e s b y g ro u p s a n d su b g ro u p s o f
c o m m o d itie s
[1926=100]
1942
1941
1939
103.1
98.8
87.3
77.1
95.3
123.3
126.9
124.6
120.7
122.6
116.3
128.7
119.8
105.9
92.9
117.8
101.6
82.4
76.9
91.6
77.8
65.3
58.6
72.2
62.6
104.9
110.5
94.8
121.3
106.1
95.0
106.6
111.1
93.7
121.3
110.3
97.3
99.6
100.0
89.2
95.5
111.8
92.3
82.7
87.3
80.7
67.5
90.4
78.9
70.4
69.5
74.8
62.0
77.2
64.1
104.9
97.4
106.1
106.6
99.9
105.6
88.0
97.8
109.1
93.9
118.1
126.4
117.0
102.2
115.2
116.7
126.3
109.9
101.3
115.2
117.5
126.4
114.7
101.3
115.2
108.3
113.5
108.4
97.9
104.7
95.6
102.6
84.6
87.5
97.1
109.1
106.3
112.7
113.2
106.4
100.1
107.4
121.4
71.7
(2)
30.2
112.7
101.1
98.4
107.1
115.7
70.9
m
30.2
112.7
100.6
97.4
107.0
112.7
70.8
(2)
30.3
112.5
98.8
117.7
125.7
117.6
101.3
114.9
96.9
106.9
112.4
70.5
(2)
30.3
110.4
97.9
69.7
82.0
67.2
61.4
46.1
28.8
79.8
69.2
90.4
90.0
98.8
88.5
82.7
68.4
88.3
93.1
84.0
99.0
123.1
132.5
62.3
77.7
63.5
83.0
95.6
120.3
130.3
59.6
77.2
63.9
80.8
90.4
116.1
122.7
59.5
76.5
62.5
78.5
85.5
109.7
122.1
63.8
78.4
59.8
73.1
75.8
97.5
105.6
78.6
84.1
52.2
83.0
90.1
91.3
84.6
94.5
93.1
71.3
1115.5
105.5
106.7
110.3
0) (2)
99.7
103.8
Building m aterials . _.
------ - - - ------ 132.6
B rick and tile - - . . . ------------------ - 122.9
104.1
C em en t___
_.
----—
178.4
L u m b e r.. ----------- -------------------- . . .
P a in t and p ain t m aterials----118.5
Plum bing and heating-------- _ - .- --- - 103.8
Structural steel----------- - --------- 118.4
O ther building m aterials. -- ------------- 118.6
Chemicals and allied products------ - _ - - . 101.4
99.8
Chem icals. - - - - . ... D rugs and pharm aceuticals----------- -- . . 120.8
87.4
Fertilizer m aterials
..
88.2
M ixed fertilizers
------ _ ----------Oils and fats--------------- -. - --------- -- 119.1
104.7
97.8
98.8
99.2
112.8
85.8
93.4
103.8
97.3
98.4
97.2
112.8
85.8
92.2
103.8 103.8
96.9
96.9
98.0
98.0
97.2
97.2
112.8 112.7
85.7
86.0
95.4
90.7
111.4 110.2
99.1
98.0
93.8
94.0
3141.4 133.0
102.3 100.3
95.4
90.7
107.3 107.3
102.0 103.5
3 94.9 3 95.5
96.2
96.5
3106.2 3116.0
78.7
80.0
82.7
86.1
101.9 105.1
84.8
92.6
94.2
63.1
(2)
29.7
96.6
90.7
76.2
82.7
104.3
119.3
68.3
78.6
57.0
99.4
93.5
94. 5
96.4
103.3
84.4
84.8
103.2
93.7
92.0
122. 5
91.4
84.8
107.3
98.3
3 84.4
87.2
3102.6
73.5
76.0
77.6
94.4
93.4
94. (3
95.8
93.4
78.0
79.2
90.5
91.4
91.3
93.2
82.8
79.2
107.3
90.3
100.5
98.7
98.0
94.9
100.0
106.1
95.0
95.4
94.3
89.0
93.8
94.9
95.0
98.1
97.7
76.0
84.7
78.2
67.9
73.0
48.4
94.0
99.7
66.8
95.6
95.2
89.0
111.6
Housefurnishing goods ------- -- ------- -Furnishings________________________ - 116.6
106.4
F u rn itu re _______ ____ - -----------------
104.5
107.6
101.5
104.3
107.3
101.4
102.7
107.2
98.1
102.4
107.3
97.4
94.3
99.9
88.4
86.3
91.1
81.3
94.3
93.6
95.0
100.3
73.0
191.1
119.4
46.2
104.3
134.7
110.8
1116.1
1114.9
94.7
73.0
159.6
108.8
46.2
98.9
116.8
95.9
101.8
100.8
93.6
73.0
159.6
107.1
46.2
97.0
113.2
94.1
100.8
99.6
92.2
73.0
152.7
104.1
46.2
95.8
112.1
92.9
100.1
98.7
89.7
72.5
134.4
100.8
46.3
93.4
100.6
92.6
98.6
97.0
82.0
61.0
101.2
98.2
46.1
87.8
83.5
86.9
89.1
88.3
74.8
59.5
83.3
82.4
37.2
82.6
70.2
77.0
80.4
79.5
82.6
54.5
121.6
88.9
42.3
98.4
97.5
93.9
94.5
93.3
1109.5
99.7
98.5
96.9
95.5
89.0
81.3
91.6
1946
1945
1944
1943
121.1
105.8
104.0
128.2
129.7
132.5
124.3
106.2
111.1
95.2
122.8
107.8
96.6
137.2
141.7
147.4
128.6
117.0
Textile products----- — - - - - - ------ ---- 116.3
119.3
Clothing -- 150. 5
C otton goods
82.1
Hosiery and u n d erw ear.. ___ --------Silk_________________________________
(2)
30.7
R ay o n . .
- - - - - - - - - - - 115.7
Woolen and worsted goods
.
O ther textile products .
------------------ 122.8
90.1
Fuel and lighting m aterials-------- ----------109.0
A nthracite
- - ---B itum inous coal--------------------------------- 132.5
140.4
Coke ..........................
E lectricity - . ----------------------------------(2)
G as__
.
—
(2)
Petroleum p roducts. . . _ . . . . - --- -- 67.5
Groups and subgroups
All commodities
..............................
......
F arm p ro d u c ts .. ---------- ------ - - - - - - - --G rains . . . .
...
- - -- -Livestock and p o u ltry ----- ------ -- ------O ther farm products-------- . . . . ---------
148.9
155.6
155.6
142.0
F oods.- . . ___
-,------- --------D airy products, . . . ---------- ------ - -Cereal p ro d u cts. ------ . . . . ------------F ru its and v e g e ta b le s ------------- --------M eats . . .
.
.
O ther foods................ . . . --------- - --H ides and leather p roducts----------- . . . . . .
Shoes
.
__
H ides and skins. _. . . ----------- -----L eather. _ . . . .
O ther leather products
-------------
130.7
145.8
114.5
129.9
145.9
111.9
M etals and m etal products. _ --------- ------A gricultural im plem ents. ------- --------F arm m achinery------ ------- - ------ -Iron and steel. M otor vehicles--------- --------- - ------- Nonferrous metals _
P lum bing and heating---------- - _ -------
M isoellaneons
- ____
Automobile tires and tubes ________ ___
C attle feed
__
-_______
P aper and p u lp __
-- ___
C rude ru b b e r.
O ther miscellaneous. _ _____ _______
R aw m aterials
Sem im anufactured articles. _ ____________
M anufactured products _ ________ ____
All commodities other th a n farm p ro d u cts..
All commodities other th a n farm products
and foods---------------------- -------------- --i See footnote 1, table 1.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
117.8 115.5
112.4 101.7
99.4
95.8
155.1 3153.3
106.9 105.2
92.2
93.4
107.3 107.3
104.4 103.1
95.2 3 95.2
96.1
96.1
109.0 3108.8
81.3
81.6
86.4
86.6
102.0 102.0
2 D ata not available.
3 Revised.
1929
294
MONTHLY LABOR REVIEW— FEBRUARY 1947
Index Numbers by Commodity Groups, 1926 to December 1946
Index numbers of wholesale prices by commodity groups for selected
years from 1926 to 1945, and by months from December 1945 to
December 1946 are shown in table 3.
T able 3 .— I n d e x n u m b e rs o f w h o le s a le p r ic e s b y g ro u p s o f c o m m o d itie s
[1926=100]
H ides
and
Textile
leather prod
ucts
prod
ucts
Fuel
and
light
ing
m ate
rials
M etals
and
n etal
prod
ucís
B uild
ing
m ate
rials
100.0
109.1
72.9
80.9
95.4
104.6
92.8
95.6
100.8
108.3
117.7
117.5
116.7
118.1
100.0
90.4
54.9
64.8
71.5
76.3
66.7
69.7
73.8
84.8
96.9
97.4
98.4
100.1
100.0
83.0
70.3
66.3
76.2
77.6
76.5
73.1
71.7
76.2
78.5
80.8
83.0
84.0
100.0
100.5
80.2
79.8
87.0
95.7
95.7
94.4
95.8
99.4
103.8
103.8
103.8
104.7
100.0
95.4
71.4
77.0
86.7
95.2
90.3
90.5
94.8
103.2
110.2
111.4
115.5
117.8
100.0
94.0
73.9
72.1
78.7
82.6
77.0
76.0
77.0
84.4
95.5
94.9
95.2
95.2
100.0
94.3
75.1
75.8
81.7
89.7
86.8
86.3
88.5
94.3
102.4
102.7
104.3
104.5
100.0
82.6
64.4
62.5
70.5
77.8
73.3
74.8
77.3
82.0
89.7
92.2
93.6
94.7
100.0
95.3
64.8
65.9
80.8
86.3
78.6
77.1
78.6
87.3
98.8
103.1
104.0
105.8
108.6
118.9
101.4
84.8
105.6
119.5
96.1
104.7
94.8
107.1
107.3
107.8
109.4
110.8
111.5
112.9
140.2
149.0
131.9
157.9
165.4
160.1
119.4
119.6
119.8
119.8
120.4
122.4
141.2
138.9
141.6
142.4
172.5
176,7
101.6
102.2
104.7
107.9
108.8
109.2
118.1
124.0
125.7
128.6
131.3
134.7
84.9
85.1
85.0
86.0
86.1
87.8
90.3
94.4
94.3
94.2
94.5
96.1
105.7
106.6
108.4
108.8
109.4
112.2
113.3
114.0
114.2
125.8
130.2
134.7
120.0
120.9
124.9
126. 5
127.8
129.9
132.1
132.7
133.8
134.8
145.5
157.8
96.0
95.9
96.0
96.1
96.5
96.4
99.3
98.4
98.4
99.9
118.9
125.7
106.2
106.5
106.9
107.5
108.3
110.4
111.9
112.6
113.6
115.3
118.2
120.2
95.3
95.6
95.6
95.7
97.0
98.5
101.3
102.0
102.1
104.0
106.5
108.9
107.1
107.7
108.9
110.2
Y ear and
m onth
Farm
prod
ucts
Foods
1926............ .
1929________
1932_________
1933_________
1936_________
1937_________
1938________
1939_________
1940_________
1941________
1942_________
1943________
1944________
1945_________
100.0
104.9
48.2
51.4
80.9
86.4
68.5
65.3
67.7
82.4
105.9
122.6
123.3
128.2
100.0
99.9
61.0
60.5
82.1
85.5
73.6
70.4
71.3
82.7
99.6
106.6
104. 9
106.2
1945
D ecem ber___
131.5
1946
Ja n u a ry _____
F e b ru a ry ___
M arch ____
A pril______
M a y ___ ____
Ju n e ________
J u ly ________
A u g u s t .. ___
Septem ber__
October_____
N ovem ber__
D ecem ber___
129.9
130. 8
133.4
135.4
137.5
140.1
157.0
161.0
154. 3
165.3
169.8
168.1
C hem House
icals
fur
and
nish
allied
ing
prod goods
ucts
MisAll
cel- com
lane- m odi
ous
ties
111.0
112.9
124.7
129.1
124.0
134.1
139.7
140.9
The price trend for specified years and months since 1926 is shown
in table 4 for the following groups of commodities: Raw materials,
semimanufactured articles, manufaictured products, commodities other
than farm products and commodities other than farm products and
foods. The list of commodities included under the classifications
“Raw materials,” “Semimanufactured articles,” and “Manufactured
products” was shown on pages 10 and 11 of Wholesale Prices, JulyDecember and year 1943 (Bulletin No. 785).
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
295
PRICES AND COST OF LIVING
T able 4.— Index numbers of wholesale prices by special groups of commodities
[1926=100]
Y ear and
m onth
SemiRaw manufacm ate tured
rials
a rti
cles
All
com
M an modi
ties
ufac
tured other
prod th an
farm
ucts
prod
ucts
All
com
m odi
ties
other
th an
farm
prod
ucts
and
foods
1926 _______
1929
_____
1932
1Q33
IQSfi
1Q37
1Q3R
1Q3Q
1940
1941
_____
1942
1943
1944________
1945________
100.0
97.5
55.1
50 5
79 9
84 8
72.0
70 2
71. 9
83.5
100.6
112.1
113.2
116.8
100.0
93.9
59.3
65.4
75.9
85.3
75.4
77.0
79.1
86.9
92.6
92.9
94.1
95.9
100.0
94.5
70.3
70.5
82.0
87.2
82. 2
80.4
81.6
89.1
98.6
100.1
100.8
101.8
100.0
93.3
68.3
69.0
80. 7
86.2
80.6
79.5
80.8
88.3
97.0
98.7
99.6
100.8
100.0
91.6
70.2
71.2
79.6
85.3
81.7
81.3
83.0
89.0
95.5
96.9
98.5
99.7
1915
D ecem ber.
119.2
97.6
102.5
101.6
100.5
Y ear and
m onth
SemiR aw manufacm ate tured
rials
a rti
cles
All
All
com
com modi
M an m odi ties
other
ties
ufac
tured other than
farm
prod than
farm prod
ucts
prod ucts
and
ucts
foods
118.3
118.9
120.5
122.2
123.6
126.3
141.7
145.7
141.4
148.7
153.4
153.2
102.9
103.4
104.5
105.5
106.1
107.3
118.9
123.9
117.2
129.6
134.7
135.7
1946
J a n u a ry ____
F eb ru ary —
M arch —
A p ril______
M a y _______
J u n e _______
J u ly _______
A ugust___S eptem ber...
O ctober____
N ovem ber...
D e ce m b e r...
97.6
98.8
100.4
101.1
101.9
105.7
110.2
111.9
115.0
118.2
129.1
136.2
101.9
102.5
103.4
104.5
105.1
106.7
117.5
121.9
117.2
127.1
132.9
134.8
100.8
101.3
102.2
103.3
103.9
105. G
109.5
111.6
112.2
115.8
120.7
124.7
Weekly Fluctuations
Weekly changes in wholesale prices by groups of commodities
during November and December 1946 are shown by the index numbers
in table 5. 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 able 5.— Weekly index numbers of wholesale prices by commodity groups, November
and December 1946
[1926 = 100]
C om m odity group
Dec.
28
Dec.
21
Dec.
14
Dec.
7
N ov.
30
N ov.
23
Nov.
16
N ov.
9
N ov.
2
All commodities.
139.6
139.8
139.7
139.1
139.1
137.3
135.8
134.8
134.8
F arm pro d u cts........................
F o o d s .................................... H ides and leather products.
Textile pro d u cts__________
Fuel and lighting m aterials.
167.7
159.1
171.3
133.3
97.0
170.7
159.5
170.9
132.8
96.9
168.7
161.3
170.7
132.5
96.1
169. 2
161.7
166.9
131.7
96.0
170.3
163.6
165.0
130.7
95.8
172.1
165.0
158.6
129.6
94.9
167.3
164.1
159.2
129.5
94.8
166.0
162.5
158.7
130.2
94.7
166.5
165.9
143.3
127.3
94.8
M etals and m etal products----B uilding m a te ria ls.................
Chem icals and allied products.
Housefurnishing goods----------M iscellaneous...............................
133.9
154.6
126.1
120.5
107.7
133.3
151.9
125.6
120.5
108.1
132.7
151.1
125.4
120.0
107.9
132.2
145.2
124.0
118.7
106.9
131.8
144.3
123.7
118.3
106.7
117.2
142.0
123.1
118.0
106.1
116.3
140.4
122.3
117.6
104.6
114.4
140.0
110.2
117.5
104.9
114.4
137.4
103.5
117.3
105.4
R aw m aterials____________________
Sem im anufactured articles-------------M anufactured products-----------------All commodities other than farm
products........................................... —
All commodities other th a n farm
products and foods— ..................... .
154.2
135.0
134.5
155.5
134.4
134.2
154.3
133.7
134.8
154.4
131.6
134.0
154.8
130.2
134.1
155.3
128.2
131.1
152.6
125.9
130.4
152.2
122.4
129.5
150.9
120.6
130.4
133.5
133.0
133.4
132.5
132.3
129.7
129.0
128.0
127.9
121.6
121.1
116.9
116.2
115.5
114.0
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Federal Reserve Bank of St. Louis
123.9
123.4
122.9
Construction
C o n s tru c tio n A c tiv ity — N o v e m b e r 1 9 4 6 - J a n u a r y 1 9 4 7
a n d O u tlo o k fo r Y e a r 1 9 4 7
Progress of the Housing Program
o r e n e w permanent homes (58,000) were completed in December
than in any other month in 1946. By the end of the year completions
were nearing the half-million mark (about 454,000), and another third
of a million new permanent dwellings (344,000) were under construc
tion. Almost three-fourths of the units completed in 1946 were started
in the same year.
M
T a b l e 1.— N u m b e r o f f a m il y d w e llin g u n its o r e q u iv a le n t liv in g a c c o m m o d a tio n s
s ta r te d a n d c o m p le te d in n o n fa r m a re a s x, b y m o n th s, 1 9 4 6 , a n d ou tlo o k f o r 1 9 4 7
E stim ated num ber of units
S tarted
Completed
Y ear and m onth
Total
N ew per
m anent
family
dwellings 2
O ther 3 4
T otal
New per
m anent
family
dwellings 5
O ther 4 6
1946: T o tal_________________
1, 003, 600
670,900
332, 700
661,900
453,800
208,100
Jan u ary . .
F e b r u a r y ___ ___ ______
M arch __________ ______
A p ril_____. _
_______
May___ _______________
Ju n e __________ _______
J u ly ___________________
August- _ ._ _______
September_ ____ .
O c to b e r -.-______ ______
N ovem ber - _
...
D ecember . .
________
49, 500
56,100
86.400
97, 600
105, 600
93, 7C0
108,100
106, 500
103, 600
80, 200
63,900
52.400
36.100
43.100
60.400
66.100
67, 600
63, 600
64,300
64.400
57.100
58.100
49, 700
40, 400
13, 400
13.000
26.000
31, 500
38.000
30.100
43,800
42.100
46, 500
22.100
14, 200
12.000
24, 900
28,000
31, 200
35, 60C
39,900
46, 600
54.300
59.300
81, 200
84,800
82, 800
93.300
18,700
20.300
22,600
26,400
30.300
34,900
41.000
42,200
49,800
54, 500
55,100
58.000
6, 200
7, 700
8,600
9,200
9,600
11.700
13.300
17,100
31, 400
30.300
27.700
35.300
1947: O u tlo o k ..____
___
1,000,000
950,000
1 Excludes m ilitary barracks.
2 Includes 8,027 perm anent u n its started b y New Y ork H ousing A uthority, and 37,200 prefabricated
units (N ational Housing Agency estim ate).
3 Covers 64,500 privately financed converted units; 191,000 Federal (M ead-Lanham tem porary housing
programs) re-use un its (147,300 family dwellings and 43,700 dorm itory equivalents—Federal Public Housing
estim ates); 48,000 trailers (B ureau of the Census); and 29,200 family and dorm itory equivalent units financed
b y various State and local public bodies a n d educational institutions (not included under th e Federal
M ead-L anham tem porary housing program ).
4 A small proportion of new p erm anent un its provided in th e local emergency program now included
under “ other,” will be shown for all m onths in both th e started and completed columns for new perm anent
housing in future publications of this table.
{ Break-down no t available for conventional and prefabricated units.
6 Covers 45,300 conversion units, 101,900 re-use units, 48,000 trailers, and 12,900 local emergency units.
296
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Federal Reserve Bank of St. Louis
CONSTRUCTION
297
According to revised estimates, 40,400 permanent homes were
started in December, all of which were privately financed. This is
about 9,000 less than were begun in November.
A total of 670,900 new permanent dwellings (both publicly and
privately financed) were started during the year 1946, and it is antici
pated that 1947 starts will approximate 1 million. Completions in
the coming year are expected to reach 950,000. About a fifth of the
dwellings started in 1947 will be in multifamily structures (which
are usually built to rent), compared with less than a tenth last year.
The new permanent housing discussed here accounts for about twothirds of all the units begun and completed during the Veterans’
Emergency Housing Program. In addition to the new permanent
units, the VEHP includes conversion, trailer, dormitory, and tem
porary re-use accommodations.
Total Construction Activity
Construction activity continued to decline in January 1947, accord
ing to preliminary estimates. Total construction employment
(1,728,000 workers) and expenditures for all work put in place (976
million dollars) were both 8 percent below December 1946 levels.
All of the major categories of construction shared in the downtrend.
It is believed that January will be the low point in construction
activity in 1947. The 1,350,000 workers employed on the site of
new construction in the first month of the year is expected to increase
to over 2% million at the peak of the 1947 program next September.
This exceeds last year’s top on-site employment figure by threequarters of a million workers and approaches the high levels of the
twenties.
Probably more than half the workers at the job site this coming
September will be skilled (including foremen) and about 40 percent
of the skilled workers will be carpenters. Last summer there were
slightly more than 900,000 skilled workers employed on new construc
tion, compared with the million and a quarter expected at the 1947
peak.
About 35 percent of the manpower required for this year’s construc
tion peak will be used on nonfarm housing, 30 percent on nonresidential
building, and 35 percent on nonbuilding and farm construction.
Employment on the site of residential building, which demands a
larger proportion of skilled craftsmen than any other type of construc
tion, is expected to rise from a low of about 485,000 in January 1947
to around 925,000 in September; nonresidential building site employ
ment probably will range from 490,000 to 780,000.
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Federal Reserve Bank of St. Louis
to
T able 2.— E s tim a te d c o n str u c tio n e m p lo y m e n t 1 in th e U n ite d S ta te s, b y m o n th s, J a n u a r y 1 9 4 6 —J a n u a r y 1 9 4 7
CO
00
E m ploym ent (in thousands of persons)
1946 2
T ype of project
Jan.
1947 3
Jan.
Feb.
M ar.
Apr.
M ay
June
July
Aug.
Sept.
Oct.
N ov.
Dec.
All ty p e s____________________________________ ____ ____
1.890
1, 223
1,364
1,465
1,686
1, 912
2,079
2,181
2,308
2,277
2, 250
2,057
1, 875
1, 728
New construction_____________________________
_____
P riv ate construction_________________ _______ ___ _
R esidential (nonfarm) b u ild in g ___ __ __ _______
N onresidential b u ild in g ,..____________________ _
F a rm construction________________________ ___
Public utilities___________ ____________________
Public construction 4. _____________ . . . ___ . . . ,
R esidential building, _________ .
,
N onresidential building__________ _____________
R eclam ation____ . . . .
_________ , _________
R iver, harbor and flood control______. . _, .
Streets and highw ays____________________ ______
All o th e rs 8. ___ .
_
1, 621
1,285
511
557
63
154
336
65
65
10
24
106
66
1, 004
820
274
407
18
121
184
8
79
7
20
31
39
1,128
942
335
477
17
113
186
9
74
7
18
36
42
1, 226
1,036
385
489
31
131
190
15
65
7
18
41
44
1,424
1,200
475
533
44
148
224
23
62
8
18
62
51
1,631
1,359
558
581
65
155
272
35
66
9
20
87
55
1, 785
1,462
603
616
87
156
323
50
63
10
22
114
64
1,888
1, 504
612
628
107
157
384
70
59
10
22
140
83
2,019
1,577
636
642
128
171
442
94
66
10
26
156
90
1,990
1, 505
616
615
106
168
485
115
68
11
28
169
94
1, 952
1, 452
595
607
85
165
500
128
67
10
33
169
93
1,779
1, 327
548
560
42
177
452
127
60
12
33
146
74
1, 627
1, 233
495
537
21
180
394
113
50
13
29
122
67
1, 520
1,159
465
497
21
176
361
100
47
12
28
107
67
M inor building repairs_____ ____ _ _____ ___________ _
R esidential_______________________________________
N o n resid en tial,,, _________________ ______ _
F arm construction_________________ ______________
269
83
122
64
219
60
115
44
236
74
119
43
239
79
115
45
262
90
117
, 55
281
100
127
54
294
98
136
60
293
92
137
ft 64
289
87
132
70
287
84
126
77
298
82
125
91
278
75
114
89
248
67
102
79
208
52
102
54
1 Estim ates include wage earners, salaried employees, an d special trades contractors actively engaged on new construction, additions and alterations, a nd on repair w ork of the
ty p e usually covered by building perm its, w hether performed u n der contract or b y force-account. (Force-account employees are w orkers hired directly b y th e ow ner and utilized as
a separate work force to perform construction work of th e ty p e usually chargeable to capital account.) These figures should not be confused w ith those included in th e B ureau’s
nonagricultural em ploym ent series, which covers only employees of construction contractors a nd Federal force-account workers, and excludes force-account w orkers of S tate and local
governments, public utilities, and private firms.
2 Revised.
3 Prelim inary.
4 Includes th e following force-account employees hired directly b y th e Federal G overnm ent: D ecember 1945, 18,200: October 1946, 21,100; N ovem ber 1946, 20,000; D ecem ber 1946,
19,000.
8 Includes airports, w ater supply and sewage disposal systems, electrification projects, com m unity buildings, and miscellaneous public service enterprises.
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Federal Reserve Bank of St. Louis
MONTHLY LABOR REVIEW— FEBRUARY 194 7
Aver
age
for year
299
CONSTRUCTION
Expenditures for new construction, which amounted to 847 million
dollars in January, are also expected to reach peak (1.7 billion dollars)
in September. For the entire year 1947, they will probably total
close to 15% billion dollars—the greatest dollar volume for any 12month period in the country’s history. This does not mean, how
ever, that the physical volume of construction will also reach an
unprecedented high in 1947, since it will take more dollars than in
former years to pay for the necessary lumber, brick, wages, blue
prints, etc. The marked decline in the purchasing power of the
construction dollar is reflected in the fact that the same amount of
work estimated to cost 15.4 billion dollars in 1947 could have been
done in 1939 for approximately 9.3 billion dollars.
It is anticpiated that 1947 expenditures will be 15 percent above
the dollar volume in 1942—the previous peak year, when the war
construction program was at its height. However, if expenditures
in both years were to be deflated to the 1939 level of construction
prices, the 1947 program would be 10 percent below that carried out
in 1942.
The 1947 expenditures for new construction will be more than 50
percent above the 1946 figure. Almost all categories of construction
will share in the gain, but nonfarm home building will claim the
greatest number of dollars in the coming year—6 billion dollars.
Nonresidential building, at 5 billion dollars, will be a close second.
Each of these categories totaled 3% billion dollars last year. High
way construction is expected to advance from 829 million dollars in
1946 to 1.5 billion dollars, and public utilities construction from 851
million to 1.3 billion dollars.
T able 3 .— D is tr ib u tio n o f e s tim a te d o n -s ite e m p lo y m e n t o n n e w c o n str u c tio n , b y ty p e
o f c o n str u c tio n , se le c te d m o n th s, 1 9 4 6 - 4 7
E stim ated em ploym ent (in thousands)
1947
1946
T ype of construction
Jan u ary
(Low) 1
A ugust
(Peak) 1
January
(Low) i
September
(Expected
p e a k )1
All n6w construction
_____________________
P rivate
_______ ________________
Public ---------------------------------------------------
871
708
163
1,770
1,373
397
1,350
1,025
325
2,540
1,930
610
R esidential (nonfarm) building _ _______________
P rivate
_________________________
__________________________
Public
N onresidential (nonformI building
_______ ___
P rivate
____ ___________________
Public
_________________________
All other
__ - -- -- ____________
P rivate
_ _______________ ________
Public
_______ ________________
241
234
7
417
348
69
213
126
87
625
544
81
605
548
57
540
281
259
485
398
87
490
450
40
375
177
198
925
915
10
780
645
135
835
370
465
i Low and peak refer only to “all new construction,”
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
300
T able 4.— E s tim a te d c o n stru c tio n e x p e n d itu r e s ,1 b y m o n th s, J a n u a r y 1 9 4 6 —J a n u a r y 1 9 4 7
Expenditures (in millions)
T ype of construction
1946 2
Jan.
Feb.
M ar.
Apr.
M ay
Jan.
1947 3
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
T otal construction_____________________ ______ _________ $11,926
$591
$627
$728
$853
$975
$1,078
$1,162
$1, 236
$1, 238
$1, 237
$1,144
$1,057
$976
N ew co n stru ctio n 4 ______ . _ .
____
. . . _______ 10,122
_________
P riv ate construction
_
_
...
7, 868
Residential building (nonfarm) _ . . . ______ _ __
3,303
N onresidential_____
________________________
3, 355
In d u strial____ _____ ______________________
1,692
1,115
Commercial
______ ____ ______ ____ _ . . .
All o t h e r . . . _________ .
548
F arm co n stru ctio n ........... . . . .
. . . __ . . .
350
860
.
... ....
Public u tilities___ . . . .
Public c o n stru c tio n ._________
._ _____ ______
2,254
Residential building. . .
________ _ ____ _____
377
N onresidential building (except m ilitary and naval
facilities)_____ _ ______ _ . . . ____ . . . _ .
316
Industrial facilities 8. . .
_______ _ . _ . . .
81
All other_____ _ _ ___ _ _ _ _ _ _ ______
235
M ilitary and naval facilities _.
______
186
H ighw ay. _ . _
...
_
. . . .
. . .
822
O ther public___ _______ ____ . . . ___________ .
553
F e d e ra l6.....
................................... . .
272
State and lo c a l7 ______________ _ . . . . _.
281
M inor building repairs 8 ____. . . _____ ___ _
1,804
R esidential_______ ___________ _ _ _ _ _ _ _ _
521
N onresidentiaL. ____________ _ _ _ ____ _ _ _____
753
Farm c o n stru ctio n .._ . . . __________ ___ ____ _
530
476
387
136
189
100
59
30
8
54
89
3
510
430
159
212
108
71
33
8
51
80
5
601
499
195
231
113
82
36
14
59
102
9
710
586
244
255
119
96
40
20
67
124
11
822
669
288
280
127
109
44
30
71
153
20
916
734
317
305
138
118
49
40
72
182
23
999
773
329
318
149
117
52
50
76
226
31
1,069
809
345
322
160
107
55
60
82
260
41
1,067
787
340
317
168
96
53
50
80
280
53
1,064
770
330
320
172
93
55
40
80
294
63
980
732
320
309
171
87
51
20
83
248
63
908
692
300
297
167
80
50
10
85
216
55
847
648
275
280
161
71
48
10
83
199
50
25
9
16
18
18
25
12
13
115
30
55
30
21
7
14
13
19
22
12
10
117
35
53
29
23
7
16
13
28
29
15
14
127
40
56
31
22
6
16
15
42
34
18
16
143
46
59
38
23
6
17
14
57
39
20
19
153
51
64
38
26
6
20
14
73
46
21
25
162
52
68
42
30
6
24
14
94
57
27
30
163
48
70
45
32
7
25
18
105
64
30
34
167
47
70
50
35
9
26
16
108
68
32
36
171
47
69
55
31
8
23
20
115
65
32
33
173
47
66
60
26
6
20
16
88
55
28
27
164
43
63
58
22
4
18
15
75
49
25
24
149
35
60
54
21
4
17
14
65
49
25
24
129
32
57
40
1 E stim ated construction expenditures represent the m onetary value of work p u t in place in continental U nited States during the period indicated. These figures should not be
confused w ith the d ata on value of construction reported in the table on urban building construction (table 6).
sRevised.
2 Prelim inary.
4 Estim ates of new construction were prepared jointly b y the B ureau of Labor Statistics and the Office of Domestic Commerce (a successor to the B ureau of Foreign and Domestic
Commerce) and include expenditures for new construction, m ajor additions, and alterations.
5 Expenditures for floating dry docks and facilities for the production of atom ic bombs are excluded.
6 M ainly river, harbor, flood control, reclam ation, a n d power projects.
7 Includes w ater supply, sewage disposal, and miscellaneous public-service enterprises.
8 Covers privately financed structural repairs of the ty p e for which building perm its are generally required.
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Federal Reserve Bank of St. Louis
MONTHLY LABOR REVIEW— FEBRUARY 194 7
Total
301
CONSTRUCTION
Private funds used for new construction this year will amount to
11.7 billion dollars and public expenditures are expected to total 3.7
billion dollars. Comparable figures for last year were 7.9 billion and
2.3 billion dollars.
All figures on the outlook for construction activity in 1947 are
based on the supposition that an improved flow of materials will
result in more efficient building operations, including the better
utilization of labor. Thus, any further rises in material piices or
wage rates will be offset to a large degree, keeping construction costs
on the whole at about current levels. It is also assumed that nonresidential building construction will be allowed to increase substan
tially, and that no major business recession or important work
stoppages affecting construction will occur in 1947.
T able 5.— E s tim a te d e x p e n d itu r e s 1f o r n e w c o n str u c tio n , 1 9 4 6 a n d 1 9 4 7
E x p e n d itu re s (in m illions)
1947 o u tlo o k
T y p e of co n stru c tio n
N e w c o n s tru c tio n ---------------------------------------------P r iv a te c o n stru c tio n
__
_ _
R esid e n tia l fnnnfarm ') b u ild in g
N o n resid en tial (nonfarm ) b u ild in g
I n d u s tria l
C om m ercial
_
_ _
All o th e r
_ __ _ _
F a rm co n stru c tio n
__
__
_
P u b lic u tilitie s
_____ ____________
P u b lic co n stru c tio n
R e sid e n tia l (n o nfarm ) b u ild in g
N o n re s id e n tia l (nonfarm ) b u ild in g In d u s tria l 2
____________ ____ - —
P d u cation al
H o sp ita l and in s titu tio n _
O th e r
_ _
_
M ilita ry and n a v a l
__
__
TTi gh w a y
- -—
C o n serv atio n and d ev e lo p m e n t _
Sew age and w a te r
P u b lic service e n te rp ris e
__
_ _
M iscellaneous F e d e ra l
_ ______ ___ _____
F irs t
q u a rte r
Second
q u a rte r
T h ird
q u a rte r
$2, 545
$3,475
$4,900
1,950
855
820
485
195
140
35
240
595
120
85
20
30
20
15
40
200
75
45
20
10
2,605
1,275
935
520
260
155
100
295
870
45
165
25
55
55
30
60
360
100
75
30
35
3,690
1,885
1,235
595
430
210
180
390
1,210
20
260
30
85
90
55
80
525
125
95
50
55
F o u r th
q u a r te r
T o ta l
$4,480
$15,400
3,455
1,735
1,260
600
465
195
85
375
1,025
15
240
25
80
85
50
70
415
100
85
50
50
11, 700
5,750
4, 250
2,200
1,350
700
400
1,300
3,700
200
750
100
250
2ÓU
150
250
1,500
400
300
150
150
1946
e s ti
m a te
$10,131
7,868
3,303
3,364
1,699
1,115
550
350
851
2,263
379
317
82
101
85
49
185
829
242
194
87
30
1 See footnote 1, table 4.
.....
.
2 E xpenditures for floating d ry docks and for facilities to produce atomic bom bs are excluded.
Urban Building
In December 1946, permit valuations of urban building construction
(including the value of Federal construction contracts awarded)
amounted to 226 million dollars—one-fifth less than the November
total. Almost all of the 42-million-dollar drop during the month
occurred in home construction, which fell from 150 million to 109
million dollars. The 75 million dollars estimated for nonresidential
building was only slightly under the preceding month’s figure, and
728607— 4T------ 10
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Federal Reserve Bank of St. Louis
302
MONTHLY LABOR REVIEW— FEBRUARY 194 7
additions, alterations, and repair work, at 42 million dollars, was
practically unchanged.
Only 2 percent of the urban building valuations in December 1946
were made up of Federal contract awards (nonresidential building
claiming the major portion), compared with 15 percent last August
when the Federal Mead-Lanham temporary housing program was
at its height.
Urban building permit valuations for 1946 were more than double
the total for 1945. In fact, the cumulative total of 4.7 billion dollars
for the calendar year 1946 was the highest for any 12-month period
since the twenties. However, while non-Federal (private and State
and local government) work rose from 1.9 billion dollars in 1945 to
4.3 billion dollars, Federal building, at 381 million dollars, was only
a little above the 250 million dollars reported in 1945.
T a b l e 6 .— P e r m it v a lu a tio n 1 o f u rb a n b u ild in g c o n s tr u c tio n ,2 b y c la s s o f c o n str u c tio n a n d
b y so u rc e o f f u n d s , se le c te d m o n th s, 1 9 4 5 —4 6 , a n d y e a r s 1 9 4 5 —4 6
V aluation (in millions)
Class of construction
»
1946
D ecember
1945 4
1946 3
1945 4
D ecember 3 N ovem ber 4
Total
All building construction________________
$226
$268
$303
$4,658
$2,127
N ew residential A . _______________
N ew nonresidential____ __________
A dditions, alterations, and repairs____
109
75
42
150
77
41
102
. 152
49
2,442
1,451
765
769
848
510
N on-Federal
All building construction________________
221
263
301
4,277
1,877
New re sid en tial5___________________
New nonresidential___ ____
_ ____
A dditions, alterations, a n d ¡'repairs____
109
71
41
150
73
40
101
152
48
2,135
1,415
727
737
660
480
Federal
All building construction.......... ............ _•___
5
New residential A . __ _____________
N ew nonresidential_________________
A dditions, alterations, and repairs____
0
4
1
(7)
5
2
3 381
250
4
1
1
0
1
6 307
36
38
32
188
30
1 Includes value of Federal construction contracts awarded.
2 E stim ates of non-Federal (private, and State and local government) u rban building construction are
based upon building-perm it reports received from places containing about 85 percent of the u rb a n population
of the country; estim ates of federally financed projects are compiled from notifications of construction con
tracts awarded, which are obtained from other Federal agencies.
2 Prelim inary.
4 Revised.
s Includes value of dormitories and other nonhousekeeping residential buildings in addition to house
keeping units.
6 Includes $45,188,850, th e estim ated cost of 8,027 dwelling un its contained in the New Y ork C ity Housing
A uth o rity projects.
7 Less th a n $500,000,
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303
CONSTRUCTION
T able 7.— E s tim a te d n u m b e r a n d p e r m it v a lu a tio n 1 o f n e w d w e llin g u n its sc h e d u le d to
be s ta r te d in a ll u rb a n a r e a s ,2 se le c te d m o n th s 1 9 4 5 - 4 6 , a n d y e a r s 1 9 4 5 - 4 6
1946
D ecember
1945 3
Source of funds and ty p e of dwelling
1946 3
1
D ecem b er3 N ovem ber 4
N um ber of dwelling units
P rivately financed—
1- fam ily_____
2- fam ily 3-----M ultifam ily 6—.
Federally financed 7.
21,348
21,348
17,458
'971
2,919
0
28,661
28, 539
23,747
1, 594
3,198
122
19,906
520,922
162,175
19, 256
15,494
1,241
2, 521
650
426, 214
357,947
24,125
44,142
150,712
125,495
9,248
15,969
11,463
i
O
00
All dw ellings______
V aluation (in thousands)
All dw ellings______
P riv ately financed—
1-fam ily .......... 2- fam ily 3____
M ultifam ily 6—
Federally financed 7.
$108,130
108,130
92; 297
4,396
n;437
0
$149, 542
149, 298
126,949
7,397
14,952
244
$96,443
$2,387,906
3 $752, 571
95,040
80, 639
4,275
10,126
1,403
2,101,623
1,829, 203
102,056
170,364
7 286, 283
723, 229
636,616
31,728
54,885
29,342
1 Includes value of Federal construction contracts aw arded.
2 See table 6, footnote 2, for source of urb an estimates.
3 Prelim inary.
3 Revised.
3 Includes 1- and 2-family dwellings w ith stores.
« Includes m ultifam ily dwellings w ith stores.
_
.
.
,
7 For num b er of, and estim ated cost of, dwelling u n its contained m N ew Y ork C ity H ousing A uthority
projects, b u t included here w ith federally financed housing, see table 6, footnote 6.
Hours and Earnings
November marked the beginning of a seasonal drop in construction
workers’ weekly earnings on privately financed work, following the
6-year peak reached in October. The slight rise in average hourly
earnings over the month did not offset the general decline in the
average workweek which led to lower average weekly pay for all
except workers employed by excavation and foundation contractors.
Armistice Day fell within the week for which data were reported,
and its observance in many sections of the country contributed to
the curtailed workweek. Earnings and hours reported are for all
classes of workers—skilled, semiskilled, and unskilled.
Workers engaged on private building construction had a shorter
average workweek in November (37.2 hours) than at any time dur
ing 1946, while their average weekly pay decreased from the 6-year
peak of $59.20 in October to $57.65. Hourly earnings for these
workers continued to rise during November in the case of most trades,
reaching the highest level since January 1940, when monthly data
first became available. Although weekly pay declined from Octo
ber, it was still substantially more in November 1946 for all reporting
trades in building construction than for the same month in 1945.
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304
MONTHLY LABOR REVIEW— FEBRUARY 1947
For nonbuilding construction, fewer hours worked and reduced
weekly pay reflected the seasonal downtrend, although average
hourly earnings rose slightly.
T able 8.— A v e r a g e h o u rs a n d e a r n in g s o n p r iv a te c o n str u c tio n p r o je c ts f o r se lected
ty p e s o f w o rk , N o v e m b e r 1 9 4 5 , a n d O cto b er a n d N o v e m b e r 1 9 4 6 1
Average hours per
week
Average weekly
earnings 2
Average hourly
earnings
T y p e of work
N ov.
1946
Oct. Nov.
1946 1945
All types of w o rk__ . . ______ ______
37.6
39.2
(3)
Building construction__ - __________
General contractors _______ . . .
Special building trades 4__ _
P lum bing and heating________
P ainting and d e c o ra tin g ___ _
Electrical work
...
..............
M asonry_ ___ ___ _ . . . _
Plastering and la thin g_______C a r p e n tr y ______ . ___
Roofing and sheet m etal .
Excavation and foundation
N onbuilding construction__ . ..........
H ighw ay and s t r e e t ____ _______
H eavy construction-.
. . _______
O ther. ______ ........................
37.2
36.8
37.7
38.6
35.2
39.8
37.4
35.3
38.3
36.1
36.4
39.2
39.0
39.0
39.8
38.8
38.5
39.1
40.1
38.4
40.8
38.0
38.5
39.1
37.5
37.9
41.0
40.9
41.0
41.3
37.1
36.5
37.5
39.2
37.5
39.7
33.9
33.8
39.4
35.1
35.6
0)
0)
(*)
(3)
N ov.
1946
Oct.
1946
$57.38 $58. 93
57.65
54. 68
61.11
62. 62
57.39
69.63
57. 56
63.13
57.64
50.95
52.10
56.13
53.24
57.41
54.96
Nov.
1945
(3)
59.20 $51.64
56. 39 48. 77
62. 39 53.90
63. 89 55.41
62.16 55.45
70. 59 62.15
58. 70 48.04
66. 43 53. 22
59.95 54.26
54.33 46. 51
51.85 46. 56
57.59
(3)
54.41
(3)
59. 56
(3)
55.02
(3)
N ov.
1946
Oct.
1946
$1. 527 $1,505
1.549
1.485
1.622
1.620
1.629
1.750
1. 541
1.788
1. 504
1.413
1.431
1.433
1.366
1.470
1.381
1.526
1.463
1.596
1.593
1.620
1.732
1.544
1.727
1. 531
1.448
1.369
1.403
1.330
1.453
1.331
N ov.
1945
(3)
$1.391
1.336
1.437
1.413
1.480
1.565
1.418
1. 576
1.378
1.323
1.306
(3)
(3)
(3)
(3)
1 Includes all firms reporting during th e m onths shown (over 11,000) b u t not necessarily identical estab
lishments; covers all classes of workers—skilled, semiskilled, and unskilled.
2 H ourly earnings w hen m ultiplied by weekly hours of w ork m ay not exactly equal weekly earnings
because of rounding.
3 N o t available prior to F eb ru ary 1946.
4 Includes types not shown separately.
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Trends o f Employment and Labor Turn-O ver
E m p lo y m e n t in S o u th e rn M a n u fa c tu re s 1
W o r l d W a r II expansion and subsequent contraction of the number
of persons employed in manufacturing industries in the South closely
paralleled the movement of manufacturing employment in the United
States as a whole.2 In 1939, just as hostilities were beginning in
Europe and before the effect of lend-lease production was felt in this
country, factory employment in the South approximated 1,658,000
and in the United States as a whole, over 10,000,000 (tables 1 and 2).
By January 1943, at the end of 1 year of full-scale war production,
employment in the Southern States had increased 60 percent as com
pared with about a 64-perc.ent rise for the Nation. By November
1943—the wartime peak in manufacturing employment for both the
Southern region and the United States—those employed in the South
numbered 2,836,000. The gain was 71 percent as compared with a
national increase of about 76 percent over the prewar period.
An even greater similarity of trend was apparent in the later war
years. In August 1944, both the South and the United States as a
whole had an employment level 68 percent above that of 1939. By
VJ-day, in spite of cut-backs and contract cancellations, factory
employment for both the United States and the Southern States was
about 50 percent above the prewar level.
Immediate contraction of employment at the war’s end was not as
severe in the South as in the Nation as a whole. The 2,248,000
workers in the South in September 1945 represented a decrease of less
than 9 percent between August and September compared with a
national decline of over 12 percent. Also, at the time off the postwar
low, in February 1946, the South’s factory employment was 32 percent
above prewar as compared with only 24 percent in the Nation.
i Prepared in th e E m ploym ent Statistics Division of th e B ureau’s E m ploym ent and O ccupational O ut
look B ranch b y Eleanora H . Barnes under the direction of Clara F. Schloss.
:*For the purpose of this article “employment” is construed as total manufacturing employment; that is,
covering all production and nonproduction workers in private manufacturing industries.
T he term “ S outh” refers to th e 13 States of Alabam a, A rkansas, Florida, Georgia, K entucky, Louisiana,
M ississippi, N o rth Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. D etailed
estim ates of factory em ploym ent by State and by in d u stry are available on a m onthly basis as p art of the
B ureau’s expanded program in th e field of em ploym ent statistics.
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305
306
MONTHLY LABOR REVIEW--- FEBRUARY 194 7
Following the postwar low, the South did not gain as rapidly as
the Nation. August 1946 manufacturing employment of 2,315,000
was 40 percent above the prewar level, whereas the national increase
was 44 percent.
T able 1.— Estimates of total manufacturing employment in the South for selected months,
by State
[In thousands]
State
South: T o tal_________ __________
Prew ar em
ploym ent 1
Jan u ary
1943
N ovem ber
19433
A ugust
1945
September
1945
1, 657.5
2,656.3
2,836.1
2, 462.8
144.2
66.9
192.7
56.7
305.3
139.6
172.2
164.8
79.9
41.9
88.7
38.2
166.4
259.9
122.8
288.7
94.2
400. 2
190.7
242.2
234.2
122.4
75.0
151.3
84.9
389.8
256 1
140.8
314.4
96.4
393.7
189.1
265. 9
228.4
137.8
80.2
183.1
107.5
442.7
221.3
100.0
276.0
83.0
350.9
169.4
252. 0
200. 4
127.8
74.3
153.5
86.2
368.0
A labam a______ _ ____
_
__
Florida______
,
______
Georgia ______ _ _____ __ ___
M ississippi -__ ___________ _*__
N orth C a ro lin a ............. ______ __
South C arolina_____ __________ _ _
Tennessee______ ___ _
__ ____
V irginia_______ . . . _ _
K e n tu ck y ____ ________ _______
A rkansas ___ _______
_ _______
Louisiana___ _ ________ ______
O klahoma __ ______ _________
T ex as!_________ ______ ______ __ _
2, 247.9
199.0
82.8
248.4
79.9
340.7
165.5
233.9
187.6
115.5
69.4
143.2
62.0
320.0
1946
Ja n u
ary
F eb ru M arch
ary
April
M ay
June
Ju ly
South: T o tal. ___________________ 2,207. 7 2,183.8 2, 226. 6 2, 233.3 2, 238.0 2. 260.9 2, 280. 2
A labam a_________ ______________
Florida_________ __________
Georgia________________ _______
M ississippi____ _______ _________
N orth C aro lin a... __ ________ ___
South C arolina_________________ _
Tennessee__________ ______ __ ___
V irginia_____________ _____ ______
K entu ck y ___________ ____________
A rkansas_________________ _______
Louisiana___ . . . ______ ____ ______
Oklahom a________________________
Texas__________________ ______ . .
196.0
83.0
243.8
82.6
346.3
171.8
226.3
191.7
117.5
61.9
128.4
56.4
302.0
179.9
83.0
244.3
81.8
352.1
175.1
220.8
192.6
112.6
64.4
128.7
54.5
294.0
199.3
81.2
242.6
81.0
359.3
175.8
226.0
194.8
115.7
68.5
131.3
54.1
297.0
201.1
79.0
244.0
81.7
358. 5
176.6
229.7
195.1
118.3
66.2
132.8
52.7
297.9
201.3
77.9
245.7
81.4
357.5
178.4
232.1
193.5
119.8
66.0
132.9
51.7
299.8
202.4
76.8
247.1
83.4
360.9
179.8
235.0
197.3
121.9
65.5
132.9
52.8
305.1
208.3
73.9
253.4
83.7
358.1
180.0
240 2
200.2
123.6
65.6
132.4
52.5
308.3
August
2,315.3
210.3
74.3
259.5
87.0
358.9
183.9
244.8
205.0
125.4
67.8
128.0
54.7
315.7
1
Prew ar estim ates for A labam a, Florida, Georgia, M ississippi, N orth Carolina, South Carolina, and
Virginia are based on unem ploym ent compensation d ata of the B ureau of E m ploym ent Security of the
Federal Security Agency, average for the th ird q u arter of 1939. Prew ar estim ates for K entucky are based
on unem ploym ent com pensation d ata, annual average for 1939. Tennessee estim ates are based on unem
ploym ent compensation d ata, average for the th ird q u arter of 1940. Arkansas, Louisiana, O klahoma, and
Texas prew ar estim ates are based on Census B ureau d ata for 1939 and are not strictly comparable w ith data
for later periods.
3 M o n th of w artim e peak em ploym ent in th e South.
Position of the South in the N ation’s Economy
Despite the increase in industrialization during wartime, the rela
tive position of the South in the Nation’s economy 3remained approxi
mately the same (table 3). During the period of peak wartime em
ployment, southern industry expanded slightly less rapidly than in the
United States as a whole, but by 1945 it had again returned to the
prewar ratio where it remained. The South has not materially
* See section I—The rise of industry in the South, in forthcoming bulletin (No. 898) on Labor in the South.
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Federal Reserve Bank of St. Louis
307
TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
increased its share of the Nation’s total employment. However, the
anticipated 17-percent increase in the South’s labor supply from 1940
to 1950, coupled with the war-induced greater diversification of
industry, and larger reservoir of skilled workers, all give promise of
a brighter industrial future.
T able 2.— E s tim a te d e m p lo y m e n t 1 in m a n u fa c tu r in g in d u s tr ie s in th e U n ite d S ta te s,
b y in d u s tr y , f o r se le c te d p e r io d s
Percent of total
E m ploym ent (in thousands)
In d u stry
1939
1943
1944
1945
1946 2 1939
1943
1944
1945 1946 2
All m anufacturing............. ....................... 10,078 17,381 17,111 15,060 13, 695 100.0 100.0 100.0 100.0 100.0
Iron and steel and th eir products------- 1,171 2,034 2,015 1, 786 1,528
815
608
914
355
967
Electrical m achinery-. ...................... —
690 1,585 1, 553 1,385 1,259
M achinery, except electrical--------------T ransportatio n equipm ent, except
614
193 2,951 2,899 1,797
autom obiles___________________ ___
724
726
845
877
466
A utom obiles_______ _______ . . -407
525
513
450
283
N onferrous m etals and th eir p ro d u c ts..
627
569
562
465
589
L um ber and tim ber basic p r o d u c ts ___
F u rn itu re and finished lum ber prod
439
429
413
396
385
u c ts_________________ ____________
438
395
381
349
422
Stone, clay, and glass products_______
Textile-m ill products and other fiber
m anufactures______________________ 1,235 1,330 1,228 1,173 1,281
894 1,080 1,055 1,044 1,149
A pparel and other finished p ro d u c ts ...
391
356
353
383
378
Leather and leather products_________
F ood_______________________________ 1,192 1.418 1,455 1,440 1,451
97
96
95
105
103
T obaccom an u factu res-. ____________
431
387
320
389
388
P aper and allied p roducts. __________
P rin tin g , publishing, and allied indus
555
619
549
551
561
tries---------------------- --------------------769
633
873
810
421
Chem icals and allied products-----------191
208
170
183
147
Products of petroleum and coal______
243
270
231
247
150
R ubber p ro d u c ts___ _______________
543
513
523
563
311
M iscellaneous industries--------------------
11.6
3.5
6.8
11.7
5.0
9.1
11.8
5.7
9.1
11.9
5.4
9.2
11.2
4. 4
9.2
1.9
4.6
2.8
4.6
17.0
4.9
3.0
3.4
16.9
5.1
3.0
3.3
11.9
4.8
3.0
3.7
4.5
5.3
3.0
4.6
3.8
3.5
2.5
2.4
2.4
2.3
2.6
2.5
3.2
3.2
12.3
8.9
3.8
11.8
1.0
3.2
7.7
6.2
2.2
8.2
.6
2.2
7.2
6.2
2.1
8.5
.6
2.3
7.8
6.9
2.3
9.6
.6
2.6
9.4
8.4
2.8
10.6
.7
3.1
5.6
4.2
1.5
1.5
3.1
3.2
5.0
1.0
1.3
3.2
3.2
4.7
1.1
1.4
3.2
3.7
5.1
1.3
1.6
3.4
4.5
4.6
1. 5
2.0
3.8
i Since Ja n u a ry 1943, th e B ureau has been receiving em ployer reports covering total em ploym ent as well
as production workers. N onproduction worker estim ates for each group have been based on th e m onthly
changes show n b y th e nonproduction w orker segment of these reports. Before 1943, various estim ating
m ethods were used to obtain total em ploym ent from th e production w orker series. For this reason, the
series, in some groups, m ay not be consistent prior to 1943. B oth production and nonproduction w orker
series have been adjusted to em ploym ent d ata made available annually b y the Federal Security Agency,
s 8-month average.
M ajor Components of Southern Manufacturing
In the prewar period, the nondurable goods group, heavily weighted
by the textile industry, furnished over two-thirds of the employment
in the South. Expansion in war industries—primarily shipbuilding
and aircraft—increased the relative importance of employment in the
durable-goods group to about 46 percent of total in 1943; but by
1946 the prewar ratio was again approached. While the relatively
stable nondurable-goods industries employed more workers even dur
ing the war peak than the durable-goods industries, the more than
doubling of durable-goods employment and subsequent deflation
governed the over-all pattern of employment.
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308
MONTHLY LABOR REVIEW— FEBRUARY 194 7
Major Industry Groups— South Compared With the Nation
The similarity of industrial development in the South and the
Nation during the war years tends to minimize the possibility that
expansion of war facilities in the South resulted in a permanent rela
tive gain in manufacturing employment. There has, however, been
a broadening of the importance of southern industries in the Nation’s
economy. In 1939, almost half of the workers in the lumber industry
and over two-fifths of those in the tobacco and the textile-mill prod
ucts groups were in the Southern States (tables 2 and 3). The
southern sections of the petroleum, furniture, and chemical industries
each employed about a fourth of the United States total for these
industries. The only other really important industry was food
processing which employed over a sixth of the United States
total. At the 1943 peak, the South accounted for an even greater
share of those employed in each of these outstanding groups with
the exception of chemicals. In addition, such manufacturing groups
as transportation equipment and paper also had over 15 percent of
their employees located in the South and 8 of the remaining 11 smaller
groups increased in importance.
T able 3.— M a n u f a c tu r in g e m p lo y m e n t in th e S o u th a s p e r c e n t o f U n ite d S ta te s to ta l, b y
in d u s tr y g r o u p , f o r se lected p e r io d s
Percent of U nited States total
liLaustry
1939 i
South: All m anufacturing
__ ________________ ____ . . .
1943
1944
1945
1946 2
16. 4
15.9
16.1
16.4
16.4
Iron and steel and their p ro d u c ts.. ___ ______ ______ .. . _ .
Electrical m a c h in e ry ... _ . . .
___________ _____ . . .
M achinery, except electrical_________________________ .... ..
T ransportation equipm ent, except autom obiles_________ ____
A utom obiles..
_______________ . . . ______ ... _______
Nonferrous m etals and their p ro d u e ts.-i___________ ... . .. .
Lum ber and tim ber basic p roducts__________ . . . _______
F urnitu re and finished lum ber products
. . . . . . . . . . ..
Stone, clay, and glass products. _______ _________________
7.2
.6
4.2
9.3
1.8
5.7
47.2
25.2
14.8
9. 1
1.1
4.4
15.6
1.0
8.5
55.0
28.1
13.5
10.2
1.5
5.0
16.2
1.3
8.3
52.8
28.3
12.8
9.3
1.8
5.5
15.9
1.5
8.4
49.9
28.5
12.9
7.1
1.4
5.3
13. 7
1.6
9.6
47.2
27.9
12.9
Textile-mill products and other fiber m anufactures___ ______
A pparel and other finished textile p r o d u c t s .. . ____ . . ____
Leather and leather products___
_____________ ____ . . . .
Food. ____________ __ _________ .
.
_________
Tobacco m anufactures___________________ . . . ______ . . .
Paper and allied p ro d u c ts ... _.
_______ __________ . . . . ..
P rinting, publishing, and allied industries________ . _____
Chemicals and allied products___ ______ . . . __________ .
Products of petroleum and coal____
________ _
______
R ubber p ro d u c ts________
__________ _ . . _______ _
M iscellaneous industries___________ ______ . . . . . . ________
41.2
10.1
5.0
17. 1
44.7
12. 4
9.9
23.9
26.9
3.5
3 6. 4
47.5
12.5
6.0
19. 2
47.3
15.8
10.5
19.7
36.1
5.1
2.8
47.2
12.8
6.3
19.4
49.9
15.7
10.6
23.1
36.5
6.5
3.3
46.3
12. 5
6.6
19. 3
51.2
15.0
10.7
24.7
36.6
6.3
3.4
45.1
11.3
6.9
19.0
50.7
15.0
10.8
24.2
34.1
5.9
3.5
1 See table 1, footnote 1, for d ate of 1939 regional estimates.
States estimates.
2 8-month average.
3 N o t strictly comparable w ith later periods.
See table 2, footnote 1, for basis of 1939 U nited
Much of the diversification acquired during the war period was
carried over into 1946. Whereas in 1939, 5 of the 20 major manufac
turing groups had 5 percent or less of their employment in the South,
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TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
309
only 3 were in this position in 1946. The southern industry groups
that had always loomed large in the national economy continued to
hold their own; the increased importance of many of the other indus
trial groups makes the South less vulnerable to economic disturbances.
Such diversification makes for a healthier postwar situation.
Trend of Employment in the South, by Industry Group
War expansion caused many changes in the industry group pattern
within the Southern Region. The largest group was textile-mill
products which in 1939 furnished only slightly less than a third of all
factory employment (table 4). The lumber and food-processing
groups were next and together employed about a fourth of the total.
Chemical products, furniture, apparel, and the iron and steel products
groups accounted for another fourth.
By 1943, all groups showed aggregate increases in average employ
ment varying from a few hundred in the automobile industry to a
gain of 443,000 in the transportation-equipment group. The out
standing relative and aggregate increases occurred, of course, in
transportation equipment; this group rose to second place in 1943
when it accounted for one-sixth of all workers. Because of the ab
sorption of such a large part of the labor supply in transportationequipment manufacture, the only other increases in this period
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310
MONTHLY LABOR REVIEW— FEBRUARY 1947
were in such war-essential groups as iron and steel products,
the machinery groups, nonferrous metals, and chemical and rubber
products.
T able 4.— M a n u f a c tu r in g e m p lo y m e n t in th e S o u th , b y m a jo r in d u s tr y g r o u p s , f o r
se le c te d p e r io d s
E m ploym ent (in thousands)
In d u stry
P re
w ar 1
1943
1944
1945
P ercent of total
Pre 1943 1944 1945 1946»
1946 8 w
ar
All m an u factu rin g ___________________ 1,657.5 2, 769.8 2, 761. 8 2, 467. 0 2, 243. 2 100.0 100.0 100.0 100.0 100.0
D urable goods
________________ 526.7 1, 280. 9 1, 287. 3 1, 033.1 792.9 31.8 46.2 46.6 41.9 35.3
N ondurable goods_______________ 1,130. 8 1, 488. 9 1, 474. 5 1, 433. 9 1, 450. 3 68.2 53.8 53.4 58.1 64.7
Iron and steel and th eir products_____
Electrical m achinery_________________
M achinery, except e le c tric a l.________
T ransportation equipm ent, except au
tom obiles_________________________
A utom obiles. ______________________
Nonferrous m etals and th eir p ro d u cts..
L um ber and tim ber basic products____
F u rn itu re and finished lum ber prod
ucts ______________________________
Stone, clay, and glass products_______
Textile-m ill products and other fiber
m anufactures____________ _______ _
A pparel and other finished textile
products_____________ __________
L eather and leather products . ______
F ood_______________ _______________
Tobacco m anufactures............ ....... ...........
P aper and allied products________ . . .
Printing, publishing, and allied indus
tries______ ______
. ___________
Chemicals and allied products________
Products of petroleum and coal_______
R ubber products _ ________________
Miscellaneous industries_____________
84.7
2.0
29.3
185.4
10.3
69.2
204.9
14.7
78.3
165.9
14.3
76.2
108.0
8.8
66.1
18.0
8.5
16.0
219.5
461.0
8.8
44.6
323.9
468.4
11.2
42.7
300.7
285.5
11.1
37.7
280.3
83.9 1.1 16.6 17.0 11.6 3.8
.4
.4
11.4
.5
.3
.5
39.2 1.0 1.6 1.6 1.5 1.8
296.1 13.2 11.7 10.9 11.4 13.2
97.1
51.5
120.5
57.1
116.8
50.5
112.8
49.3
122.7
56. 6
509.5
631.2
580.1
543.4
578.3 30.7 22.8 21.0 22.0 25.8
90.5
19.0
204.3
46.9
39.6
135.3
22.5
271.7
48.7
61.3
135.1
22.5
281.6
47.9
60.9
130.4
23.2
278.2
48.6
58.1
129.4 5.5
27.0 1.1
276.4 12.3
49. 2 2.8
64.7 2.4
55.6
100.8
39.6
5.3
3 19.8
57.7
171.7
61.3
11.8
15.9
58.3
187.5
66.8
16.0
17.7
59.5
189.6
70.0
15.3
17.5
67.0
153.4
70.0
15.9
17.9
5.1
.1
1.8
5.9
3.1
3.4
6. 1
2.4
.3
1.2
6.7
.4
2.4
4.4
2.1
7.4
.5
2.8
4.2
1.8
6.7
.6
3.1
4.6
2.0
4.8
.4
2.9
5.5
2.5
4.9 4.9 5.3 5.8
.9 1.2
.8
.8
9.8 10.2 11.3 12.3
1.8 1.7 2.0 2.2
2.2 2.2 2.4 2.9
2.1
6.2
2. 2
.4
.6
2.1
6.8
2.4
.6
.7
2.4
7.7
2.8
.6
.7
3.0
6.8
3. 1
.7
.8
1 See table 1, footnote 1, for d ate of prew ar estimates.
2 8-month average.
s N ot strictly comparable w ith later periods.
In 1946, the aggregate average employment in all industry groups,
except miscellaneous industries, was above the prewar level and for 10
of the major groups was above the 1943 levels. As regards total
regional employment, the largest relative decrease between 1939 and
1946 was in textile-mill products—from 31 to 26 percent (chart 2).
Postwar Highlight in Southern Employment
A year after the war’s end, the employment total of 2,315,000 for
the South represented an over-all net decrease of 148,000 or 6 percent
(table 5). Only six major groups—transportation equipment, elec
trical machinery, iron and steel, automobiles, chemical products, and
machinery except electrical—employed fewer people in August 1946
than on VJ-day. Contractions in the shipbuilding and aircraft
industries alone accounted for almost 70 percent of the gross decrease.
Disregarding this expected sharp contraction in the transportationequipment group, the employment rise for the year is about 3 percent.
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311
TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
T able 5.— E s tim a te s o f to ta l m a n u fa c tu r in g e m p lo y m e n t in th e S o u th f o r se le c te d m o n th s,
b y in d u s tr y 1
[In thousands]
In d u stry
Prew ar em
ploym ent 2
Jan u ary
1943
N ovem ber
1943 3
September
1945
A ugust
1945
South: All m anufacturing_________
D urable goods------------------------N ondurable goods--------------
1,657. 5
526.7
1,130. 8
2,656.3
1,184. 9
1, 471. 4
2,836.1
1, 336. 3
1,499. 8
2,462.8
1, 044.1
1, 418. 7
2, 247.9
842. 9
1, 405. 0
Iron and steel and th eir p ro d u c ts .. . . .
Electrical m a c h in e ry .. __________
M achinery, except electrical --------T ransportation equipm ent, except
autom obiles_______ _. ----------- .
Automobiles . . . _________________
N onferrous m etals and their products.
L um ber a nd tim ber basic p ro d u c ts.. .
F u rn itu re and finished lum ber prod
u c ts .. . . . ______ _______ _____
Stone, clay, and glass p ro d u cts---------
84.7
2.1
29.3
187.5
8.5
62.0
192.1
12.3
74.6
161.0
1/. 1
76. 3
111.1
11.9
63. 9
18.0
8.5
16.0
219.5
365.4
6.7
42.5
333.5
508.7
11.1
46.7
319. 7
285.5
16.7
38. 5
286.6
174.8
11.0
30.1
279. 9
97.1
51.5
119.4
59.4
117.4
53.7
112.5
49.9
111.1
49.1
509.5
641.0
615.6
535.4
532.1
90.5
19.0
204.3
46.9
39.6
137.7
22.6
248.8
49.9
60.1
133.8
22.2
282.9
49.2
62.9
128.9
23.1
279. 7
47.8
57.1
124.9
21. 7
292.1
49. 4
57. 2
55.6
100.8
39.6
5.2
4 19.8
57.8
170.8
59.7
8.8
14.2
57.8
182.4
60. 7
15. 2
17.1
58.6
184.2
71.4
15.1
17.4
59.3
168.6
69. 0
14. 7
16.0
Textile-m ill products and other fiber
m anufactures__________ _______
A pparel a nd other finished textile
products . . . . . ----------------- -----L eather and leather products...............
F ood_____________________________
Tobacco m anufactures_____________
P aper a nd allied products_______ . .
Printing, publishing, a n d allied in
dustries . . ______
____ . . .
dhem icals a n d allied p ro d u cts______
Products of petroleum a n d coal... . . .
R ubber produ cts. _ . -----------------M iscellaneous industries------------ _.
Jan u
ary
South: All m anufacturing.
D urable goods_______
N ondurable goods-----Iron a nd sceel and th eir pro d u cts-----Electrical m achinery------------- -------M achinery, except electrical. .............
T ransportation equipm ent, except
autom obiles____________ ________
A utom obiles_____________________
N onferrous m etals and their products.
L um ber a nd tim b er basic p ro d u c ts...
F u rn itu re and finished lum ber prod
u c ts ------------- ------ ---------------------Stone, clay, and glass p ro d u cts------Textile-m ill products and other fiber
m anufactures-................................. . .
A pparel and other finished textile
products_______ _____ ______ ____
L eather a nd leather p roducts----------F o o d .........................................................
Tobacco m anufactures-------------------Paper and allied pro d u cts.------ -------P rinting, publishing, and allied in
dustries_______________ _________
Chem icals and allied products-------Products of petroleum and coal..........
R ubber prod u cts..................................
M iscellaneous industries................... ..
F eb ru M arch
ary
A pril
M ay
June
Ju ly
A ug u st
2, 207. 7 2,183. 8 2, 226. 6 2,233. 3 2, 238. 0 2,260.9 2, 280. 2
819.9
808.8
794.8
786.8
774.7
744.0
782.0
1,425. 7 1,439. 8 1,451.9 1,446. 5 1,443. 2 1, 452.1 1, 460. 3
2,315. 3
832.2
1, 483.1
107.4
8 4
67.2
79.9
8.5
63.8
107.2
8.3
64.1
112.1
8.8
64.7
112.2
8.6
66.4
111.8
8.9
67.4
115.9
9,2
66.8
117.2
9.6
68.3
99.7
10.2
35.4
281.9
91.4
10.1
30.3
285.4
83.3
10.4
37.2
287.3
81.7
11.3
38.6
291.1
81.8
11.6
39.9
295.6
78.8
12.4
42.8
303.4
78.2
12.6
44.6
309.8
77.1
12.5
45.0
314.2
119.1
52.7
120.0
54.6
120.9
56.0
121.9
56.6
122.7
56.0
125.2
58.1
124.8
58.0
127.5
60.8
559.8
570.9
576.6
578.1
578.8
585.4
585.1
591.6
125.7
25.5
277.8
48.1
61.8
129.3
26.5
274.9
48.3
62.3
130.5
26.8
276.9
48.2
63.4
128.1
27.5
273.3
48.7
64.5
127.8
27.4
274. 1
49. 2
64.8
130.8
27.5
272.3
50.1
65.8
130.1
27.7
278.1
50.5
66.9
132.7
27.5
284.4
51.3
67.5
64.4
159.3
69.9
16.1
17.3
65.7
158.0
70.1
16.0
17.8
66.8
159.0
69.8
16.0
17.9
67.1
155.1
70.5
15.8
17.8
67.7
148.5
71. 2
15.8
17.9
67.9
147.3
71.4
15.8
17.8
68.0
147.9
72.1
15.8
18.1
68.3
152.5
72.5
16.0
18.8
1 E stim ates for in d u stry groups are adjusted to levels indicated b y 1944 unem ploym ent com pensation
d ata of the B ureau of E m ploym ent Security of the Federal Security Agency.
2 See table 1, footnote 1, for date and source of prew ar data.
3 M onth of w artim e peak em ploym ent in the South.
4 N o t strictly comparable w ith later periods.
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312
M O N T H L Y
L A B O R R E V IE W --- F E B R U A R Y
194 7
Immediate reductions in employment in the 1 month following
VJ-day amounted to an over-all loss of 215,000 workers, or 9 percent
of all employment. The most severe cut occurred in the transpor
tation-equipment group in which almost 40 percent were laid off.
Employment was reduced by about one-third in the iron and steel,
electrical machinery, and automobile groups; the chemical-products
group declined by 15,000 or more than 8 percent. An offsetting
seasonal gain of over 4 percent in the food processing industry and
slight increases in the tobacco, paper, and printing industries were
the only upward tendencies.
Owing to the Nation-wide steel strike, employment in the South, as
in the Nation, reached a postwar low in February 1946 despite the
fact that many industries were already well established in their
reconversion adjustment. Only the iron and steel, machinery,
transportation-equipment, automobiles, chemical products, tobacco,
and the seasonally affected food groups continued at a lower employ
ment level than in the September 1945 cut-back period.
From the February low to August 1946, declines were limited to
the transportation-equipment and chemical-products groups. As
the employment drop for the chemical products group was partially
seasonal, the major single retarding factor in the recent employment
upswing in the South was the continuing contraction in shipbuilding
and aircraft.
Postwar Highlights—South and United States , by Industry Group
The employment changes in industry groups in the South in the
first year of peace were somewhat akin to those in the United States.
For both the United States and the South, iron and steel, the machin
ery groups, transportation equipment, and chemicals showed employ
ment losses. But most of the percentage decreases were less severe
nationally than in the region. In nine groups, national gains were
greater than those in the South. In five—nonferrous metals, leather,
miscellaneous, paper, and printing and publishing—the South showed
greater proportionate increases over the period than the Nation.
Although the South’s automobile industry was small, it was the one
industry in the region which showed an opposite trend to that in
the Nation.
Employment in Southern States
The manufacturing economy of component States of the Southern
Region was affected in varying ways by wartime expansion. Expan
sion of plant facilities in the less industrialized States brought later,
and for the most part, proportionately greater peak employment.
As the war ended, many of these shifts in importance and in industrial
pattern were not maintained.
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TRENDS OF EM PLO YM ENT AND LABOR TURN-OVER
313
T R E N D S—STATES COM PARED W ITH REG IO N
In the prewar period, North Carolina—with an average employment
accounting for about 18 percent of all manufacturing workers in the
Southern Region—was the most highly industrialized State. Georgia
with nearly 12 percent and Tennessee with over 10 percent were
next in importance. Texas with 10 percent was a close fourth (table 6).
T a b l e 6 .— M a n u f a c tu r in g e m p lo y m e n t in th e S o u th e rn S ta te s b y region a n d b y S ta te .
fo r se lected p e r io d s
Percent of total
Em ploym ent (in thousands)
Region and State
P re
war 1
1943
1944
1945
re 1943 1944 1945 19462
1946 2 Pwar
Southern States____________ _________ 1.657.5 2, 769. 8 2, 761.8 2, 467. 0 2, 243. 2 100.0 100.0 100.0 100.0 100.0
Southeastern States ..........- ________ 1,322.3 2,002. 5 1,980. 8 1, 790. 7 1, 690. 4
144.2 258.5 251. 7 223.4 199.8
A labam a. _
_______
_ __ _
78.6
66.9 136.0 135.3 103.2
Florida___ ___ ---------- ------------192.7 302.9 307.4 271.7 247. 5
Georgia___
_
______
95.6
85.1
95.1
82.8
56.7
M ississippi-----------------------N orth Carolina . . . ---- --------------- 305.3 399.9 383. 2 353. 0 356.5
139.6 191.8 180.0 170.5 177.7
South Carolina___ . . . . . . _ _ ..
172.2 255.9 271. 1 255. 5 231.9
Tennessee ______
164.8 231.9 220. 2 202.0 196.3
_____ ____ _______
Virginia. __
79.9 130.5 136.3 126.3 119.3
K e n tu c k y ______
________
Southwestern States. . . . . . . . . . . . .
A rkansas... . . .
. . .............
...................
Louisiana
O klahom a___________________ . .
Texas
. . .
335. 2
41.9
88.7
38.2
166.4
767.3
76.7
166.1
99.7
424.8
781.0
77.0
177.1
101.9
425. 0
676.3
71.3
153.9
86.6
364 5
79.8 72.3 71.7 72.6 75.4
8.7 9.3 9.1 9.1 8.9
4. 1 4.9 4.9 4.2 3.6
11.6 10.9 11.1 11.0 11.0
3.5 3.5 3.5 3.4 3.7
18.4 14.4 13.9 14.3 15.9
8.4 6.9 6.5 6.9 7.9
10.4 9.2 9.8 10.4 10.3
9.9 8.4 8.0 8.2 8.8
4.8 4.8 4.9 5.1 5.3
552.8 20.2 27.7 28.3 27.4 24.6
65.8 2.5 2.8 2.8 2.9 2.9
130.8 5.4 6.0 6.4 6.2 5.8
53.7 2.3 3.6 3.7 3.5 2.4
302.5 10.0 15.3 15.4 14.8 13.5
1 See table 1, footnote 1, for date and source of prew ar data.
2 8-month average.
By 1943, interstate relationships had changed. The average
number of persons in manufacturing in Texas had more than doubled,
and Texas was the leading manufacturing State in the region. With
an aggregate gain of even less than a third, North Carolina dropped
to second place. All States experienced some wartime expansion, but
increases were proportionately smaller in Georgia, Tennessee, South
Carolina, and Virginia (in addition to North Carolina) in the south
eastern group of States than elsewhere. For all these States, the
relative decrease in industrial importance was continued into the
postwar period.
In addition to Texas, all of the other Southwestern States—
Oklahoma, Louisiana, and Arkansas—and Florida and Alabama in
the Southeast, had a greater share of regional employment in 1943
than in 1939. Further gains for Texas, Oklahoma, and Louisiana
occurred in 1944, while in Arkansas the rise continued even in 1945;
Kentucky and Mississippi had a greater proportional employment in
1946 than at any other time.
The States of the Southwest were less industrialized before the
war than those in the Southeast. The influx of war facilities and
contracts raised the proportion of regional employment in the South-
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Federal Reserve Bank of St. Louis
314
MONTHLY LABOR REVIEW--- FEBRUARY 194 7
west from about 20 percent in 1939 to 28 percent in 1944. On the
basis of the record for the first 8 months of 1946, the Southwestern
States have declined from this peak position, but they still employ
a fourth of the South’s factory workers.
Based on the same 8-month average in 1946, each of the States
in the Southwest and Alabama, Mississippi, and Kentucky in the
Southeast showed proportional increases over the 1939 relationship.
It seems, therefore, that the Southwest and some of the smaller
industrial States of the Southeast have maintained their increased
share of southern manufacturing employment.
OUTSTA N D IN G IN D U ST R IES IN T H E SOUTH
The considerable importance of the textile-mill products group in
the manufacturing economy of the South is well known. Also
important are lumber, food processing, chemicals, apparel, furniture,
iron and steel, and—during the war and postwar period—transporta
tion equipment. Contrary to a general impression, the tobacco
industry in the South actually accounts for only about 2 percent of
total manufacturing employment. However, this industry is signifi
cant in furnishing work in such States as North Carolina, Virginia,
Florida, and Kentucky.
Textile-mill 'products.—The largest single industry group in the
South—textile-mill products-—employed about 30 percent of all
factory workers in the prewar period and about 25 percent of all
southern industrial workers in 1946 (based on an 8-month average).
Employment in the group increased 24 percent from 1939 to the peak
year of 1943 and, despite declines after 1943, rose over 13 percent
between 1939 and 1946; most States participated in the increase.
Little change occurred in the relative standing of the States in the
industry. In 1946, about 213,000 or well over one-third of the
employment waslocated in North Carolina. South Carolina with
120,000 ranked second and Georgia with 103,000 ranked third.
Although textile-mill products (with cotton textiles as the primary
industry) formed the largest single employing group in the entire
southern region, 96 percent of the group employment was concen
trated in only six States—Alabama, Georgia, North Carolina, South
Carolina, Tennessee, and Virginia.
Lumber and timber basic products.—Lumber—the second largest'
industry group in the’South—accounted for about an eighth of those
employed in the region both in 1939 and after the war. Distribution
was fairly even ¡among 11 of the 13 Southern States in 1939; Okla
homa and Kentucky had only small numbers in the group. Alabama
ranked ¡first in 1939 with 27,000 workers or about an eighth of the
industry total. North Carolina had 25,000 and Mississippi 23,000
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TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
315
persons so employed and the remaining 8 States had from 14,000 to
20 ,000 .
The industry—comprising primarily logging camps and sawmills—
increased almost a half in size by the peak year 1943 in spite of labor
recruitment difficulties; 1946 employment still exceeded the prewar
level by over a third. Only Florida and Oklahoma showed decreases
for the entire period. Alabama alone of all the States showed a gain
in 1946 over its war peak average. Employment in this State in the
lumber group totaled 42,000 workers, a slight relative increase. Geor
gia, which ranked eighth in 1939, had more than doubled its employ
ment and risen to second place in the industry in 1946. In the latter
year, 11 percent of the total lumber group workers were in Georgia.
Food.—Food processing was the third outstanding industry of the
South and a little over an eighth of all workers were in this group in
both 1939 and 1946. The group was of considerable size in all States
in the South. However, in 1939, one-fifth of its workers were con
centrated in Texas and one-eighth in Louisiana.
Between 1939 and 1946, food-processing employment had increased
one-third and all States shared in the gain. In Texas, the rise was
over a half to 59,400 and in Louisiana more than a third to 34,500.
Kentucky, Arkansas, and Louisiana each employed more food-process
ing workers on an average in 1946 than at any time in the entire
period.
Chemicals and allied 'products.—The chemical-products group ac
counted for 100,800 workers in 1939—slightly more than 6 percent
of regional employment. With many industries within the group
requiring new plant facilities for full war production, the peak of
189,600 did not occur until 1945. By 1946, employment had de
creased but was still 52 percent above the prewar level.
Owing to the diversity of the industries in the group,4 it is not
practicable to generalize on the causes of regional changes. How
ever, the changes in Tennessee and Virginia, which together com
prised about 45 percent of the regional group employment in 1939
and 52 percent in 1946, strongly influenced the over-all pattern.
Employment in the chemical group in Tennessee rose from 23,400
in 1939 to a peak of 61,500 in 1945. In 1946, the number was almost
double the prewar total for the State and had risen from 23 to 30
percent of the regional total for the group. The development of the
Oak Ridge atomic bomb plant and increases in the production of
industrial chemicals were mainly responsible.
In Virginia, the number rose to 34,000—about a 54-percent in
crease—between 1939 and 1946. Production of rayon fibers fur« Fissionable materials, explosives, industrial chemicals, synthetic rubber, rayon fibers, anim al and
vegetable oils, a n d fertilizer m ake u p the group.
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MONTHLY LABOR REVIEW— FEBRUARY 194 7
nished the largest segment of employment in the group throughout
the entire period, but its importance was reduced during wartime
when the production of industrial chemicals increased.
Apparel and other finished textile products.—The fifth largest indus
trial group in the South was apparel, which employed 129,400 workers
making up 6 percent of regional employment in 1946. The gain was
43 percent from the prewar level. Georgia accounted for about a
fifth of the South’s apparel workers in the prewar period, and only
about a sixth by 1946. Texas had first place in 1946 with an em
ployment total of 22,000, and Tennessee averaged 20,100 workers.
These three States together accounted for approximately half of the
total workers in the apparel group.
Furniture and finished lumber products.—The furniture products
group averaged 122,700 workers in 1946—only slightly fewer workers
than the apparel group. The 1946 level was about a fourth higher
than before the war and was the peak for the entire period covered.
In 1946 furniture plants in North Carolina (producing primarily
household furniture, mattresses, and bedsprings), with 28,300, em
ployed 23 percent of the southern group total. Virginia and Tennessee
ranked second and third in 1946 and with North Carolina comprised
nearly half of the furniture group.
Iron and steel products.—The iron and steel products group ac
counted for about 5 percent of total manufacturing employment in
the South in 1939; the percentage rose to 7 in 1944 when wartime
expansions more than doubled such employment. After the war
ended, iron and steel plants retained approximately the same pro
portion of workers as in the prewar period. The four States of Ala
bama, Tennessee, Texas, and Kentucky had over three-fourths of the
regional total in the iron and steel group in 1946. Alabama ranked
first, with almost 42 percent of the total, in 1939; but by 1946 the
percentage had dropped to 34. In Texas, the number of persons so
engaged more than doubled between 1939 and 1946, and the pro
portion increased from 7.7 to 14.5 percent of the regional group.
Transportation. equipment (except automobiles).—Employment in the
transportation-equipment group—primarily aircraft and shipbuilding
industries—amounted to only 1 percent of the total for manufacturing
in the South in 1939. Tremendous war expansion of these industries,
from 18,000 in 1939 to 468,000 in 1944, raised the proportion to 17
percent. By 1946, the total had receded to less than 4 percent of
regional employment.
In the prewar period, Virginia had the only sizable transportationequipment group in the South, employing 9,700 or over half of such
workers in the region. By 1944, the Virginia total had tripled, but
because of the tremendous expansions in all but one of the Southern
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TRENDS OF EM PLO Y M EN T AND LABOR TURN-OVER
317
States, Virginia ranked seventh, following Texas, Florida, Georgia,
Louisiana, Alabama, and Oklahoma. But in 1946, only Texas—with
27 percent of the total in this group—outranked Virginia.
CO N TIN U ED EM PLO Y M EN T EX PAN SIO N
Continued expansion in southern manufacturing employment is
indicated by estimates for both September and October 1946. Be
tween August and October 1946, 20,000 workers were added.
Florida, Virginia, and Alabama absorbed most of these workers by
adding about 5,000 or more each in this 2-month interval. Only 4 of
the 13 Southern States failed to share in the increase.
*********
L a b o r F o rc e , D e c e m b e r 1 9 4 6
WHO IS COUNTED IN THE LABOR FORCE
Labor force.—Persons 14 years of age and over who are
employed or unemployed during the census week (the
week containing the eighth day of the m onth).
Employed .—Those who, during the census week (1) work
full or part time for pay or profit; (2) work without pay
in a family enterprise (farm or business) at least 15 hours;
or (3) have a job but do not work because of illness, vaca
tion, labor-management dispute, bad weather, or lay-off
with definite instructions to return to work within 30 days.
Unemployed .—Those not working, but seeking a job.
The civilian labor force declined by 540,000 between November and
December 1946 to a total of 58,430,000, according to the Bureau of
the Census Monthly Report on the Labor Force. Employment
dropped by 730,000 during the month, while unemployment rose by
190,000 to reach 2,120,000.
Most of the increase in unemployment between November and
December occurred among veterans. This probably reflected delays
in hiring persons entering the labor market around the time of the
coal strike which ended just before the census week. The November
to December increase in the number of unemployed persons reversed
the downward movement of the past 5 months. Unemployment in
December 1946 was 150,000 above the year-ago level, but 580,000
below the March 1946 peak.
728607— 47------ 11
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
The decline in employment during the month took place primarily
in agriculture. A drop of 690,000 in the number of farm workers
between November and December was seasonal in character, as
farming activities slackened with the approach of winter. Agricul
tural employment in December—7,210,000—was 2,800,000 below the
seasonal high point of last June.
Nonagricultural employment declined by 40,000 during the month,
in contrast to the usual seasonal rise at this time of year. This
contraseasonal drop probably reflected (1) the depressing effects on
employment arising from the coal dispute and (2) the fact that hiring
for the Christmas season was carried on particularly early this year,
as indicated by an increase of 730,000 in nonagricultural employment
between October and November.
The level of nonfarm employment, 49,100,000, in December 1946,
was 5,100,000 above the level a year previous—an increase of 5,520,000
men was partially offset by a decrease of 420,000 women.
T o ta l la b o r f o r c 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 , h o u rs w o r k e d , a n d
se x , N o v e m b e r a n d D e c e m b e r 1 9 4 6 a n d D e c e m b e r 1 9 4 5
[Source: U . S. D epartm ent of Commerce, B ureau of the Census]
E stim a te d num ber of persons 14 years of age and over 1
(in thousands)
T otal, both sexes
Item
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o
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aa
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t-i
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pQ
as
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rH
©
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P
T otal labor force2_________________________ 60,980 60, 320 60, 920 43,940 43,860 43, 560 17,040 16,460 17,360
C ivilian labor force. . _____________________
U nem ploym ent________________________
E m p lo y m en t__________________________
N onagricultural____________________
W orked 35 hours or m ore.......... .
W orked 15-34 hours —.....................
W orked 1-14 hours 3 _______ . . .
W ith a job b u t no t a t work 4__ . . .
A gricultural_______________________
W orked 35 hours or more _______
W orked 15-34 h o u r s ____________
W orked 1-14 hours 3
________
W ith a job b u t not a t w ork 4. .
58,970
1,930
57,040
49,140
41, 800
4, 730
1,270
1,340
7, 900
6,020
1,560
160
160
58,430
2,120
56,310
49,100
42,120
4,290
1,350
1,340
7, 210
5,150
1,450
320
290
53,130 41,950
1,970 1,520
51,160 40, 430
44,000 34,050
36,330 30,140
4,460 2, 390
1,400
590
1,810
930
7,160 6,380
4,800 5,360
1,780
780
330 (*)
250
150
41,990 35,950
1,690 1,500
40,300 34, 450
34, 010 28, 490
30, 290 24,550
2,120 2, 090
600
580
1,000 1, 270
6, 290 5, 960
4,860 4,400
950 1,150
220
220
260
190
17,020
410
16,610
15,090
11,660
2,340
680
410
1,520
660
780
(*)
(*)
16, 440
430
16, 010
15, 090
11,830
2,170
750
340
920
290
500
100
(*)
17,180
470
16,710
15,510
11,780
2, 370
820
540
1,200
400
630
110
(’)
1 E stim ates are subject to sampling variation which m ay be large in cases where the quantities shown
are relatively small. Therefore, th e smaller estim ates should be used w ith caution; those under 100,000
are no t presented in th e table b u t are replaced w ith an asterisk (*). All data exclude persons in in stitu
tions.
2 T otal labor force consists of th e civilian labor force and th e arm ed forces. Estim ates of the armed
forces during th e census week are projected from d ata on net strength as of the first of the m onth.
3 Excludes persons engaged only in incidental unpaid fam ily work (less th a n 15 hours); these persons
are classified as not in th e labor force.
4 Includes persons who had a job or business, b u t w ho'didfnot w ork'during the census week because of
illness, bad w eather, vacation, labor dispute, or because of tem porary lay-off w ith definite instructions to
re tu rn to work w ith in 30 days of lay-oif. Does no t include unpaid fam ily workers.
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TRENDS OF E M PL O Y M E N T AND LABOR TURN-O VER
319
S u m m a ry o f E m p lo y m e n t R e p o rts fo r D e c e m b e r 1 9 4 6
An employment gain of 414,000 during December 1946 raised
employment in nonagricultural establishments to 40,795,000. In
mid-December the number of nonagricultural employees was only
44,000 below the wartime peak of December 1943. The Bureau’s
figures exclude self-employed persons and domestic servants.
A comparison with December 1943 reflects the return to a peace
time economy. While manufacturing and government have shown
substantial declines, contract construction, trade, and the financeservice-miscellaneous divisions have each added about 1,000,000 or
more workers.
The November-December 1946 rise of 414,000 employees reflects
primarily seasonal gains of 341,000 in trade and 169,000 in government,
the latter comprising chiefly Christmas post office “ temporaries.”
Lesser gains were also reported in the finance, service, and miscel
laneous group and in manufacturing. The only sizable drop was in
contract construction which decreased by 166,000 between Novem
ber and December, making a total decline of 461,000 for that group
in the last 3 months.
Industrial and Business Employment
Employment in manufacturing industries rose by 63,000 between
November and December, most of this rise taking place in the non
durable or light industry groups. The durable goods group of in
dustries showed a net gain of 10,000 in employment, despite a sub
stantial decline of 14,000 in iron and steel (blast furnaces) and a
slight drop in the automobile industry—both occasioned by the coal
shortage.
The largest single gain in manufacturing employment was in the
apparel group, reflecting the beginning of the spring season in plants
making higher-priced dresses and suits. The textile group, which
still has a heavy unsatisfied demand, reported the next largest em
ployment gain—12,000. The textile and apparel groups together
employed about 2,351,000 workers in December, about 19 percent
of the manufacturing production workers.
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T
able
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
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 in d u s tr y
d iv is io n
E stim ated n um ber of employees
(in thousands)
In d u s try division
Dec. 1946 N ov. 1946 Oct. 1946 Dec. 1945
....
40, 795
40, 381
40,178
37, 463
M an u factu rin g 2. ._
_
M ining - - - - C ontract construction and Federal force-account con stru ctio n ..
T ransportation and public u tilities___________ __ . . ____ . . .
T rade. ___ _ _
Finance, service, and m iscellaneous. . .
------Federal, State, and local governm ent, excluding Federal forceaccount construction
__
15,048
819
1,642
3,977
8, 610
5, 260
14,967
828
1,808
4, 005
8, 259
5, 244
14,763
827
2,040
3,987
' 8,040
5,208
13,059
802
1,042
3, 896
7, 959
4,936
5,439
5, 270
5,313
5, 769
T otal estim ated em p lo y m e n t1___
_________ . . .
1 E stim ates include all full- and part-tim e wage and salary workers in nonagricultural establishm ents
who worked or received p ay during th e p ay period ending nearest the 15th of the m onth. Proprietors,
self-employed persons, dom estic servants, and personnel of th e arm ed forces are excluded.
2 E stim ates for m anufacturing have been adjusted to levels indicated b y final 1944 d ata m ade available
b y the B ureau of E m ploym ent Security of th e Federal Security Agency and are com parable w ith the pro
duction-w orker estim ates shown in table 2.
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 rk e rs a n d 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 in m a n u fa c tu r in g in d u s tr ie s , b y m a jo r in d u s tr y g r o u p 1
In d u s try group
E s tim a te d n u m
b er of produc
tion w orkers (in
thousands)
Production-w orker
indexes (1939=100)
Dec. 1946 Dee. 1945 Dec. 1946 Dec. 1945
_____
____________
... ..
- - - - - - _____
_____ ________ ______
12, 281
6, 223
6, 058
10, 519
5, 097
5, 422
149.9
172.3
132.2
128.4
141.2
118.4
Iron and steel and th eir products _ - - ____ ____________ . .
Electrical m achinery
______
.
___ - - - - - - - - _____________
M achinery, except electrical____
T ransportation equipm ent, except autom obiles_____ _______
A utom obiles,
_
_
______________
_
N onferrous metals and th eir p ro d u cts______ __
L um ber and tim b er basic products
F u rn itu re and finished lum ber p ro d u cts______ _____ _ _ .
Stone, clay, and glass products. _____ _____ ______ . .
_
1,462
575
1,117
456
745
410
639
407
412
1,294
484
914
536
388
326
499
336
320
147.4
222.0
211.3
287.2
185.1
178.9
151.9
123.9
140.5
130.5
186.9
172.9
338.0
96.4
142.2
118.6
102.6
109.1
Textile-mill products and other fiber m anufactures___________
A pparel and other finished textile products- - _______ ___
L eather and leather p roducts___ ___________
_ _______
Food..
_______ _
_
Tobacco m an u factu res.. .
_______ - __________ _________
Paper and allied p ro d u c ts.. . . . . . .
______________________
Printing, publishing, and allied in d u strie s... ________________
Chemicals and allied p roducts___________ _____ __________
Products of petroleum and c o a l - .. _____
_ ____ ___ ____
R ubber products. ______ _
___________ . . . .
...
...
M iscellaneous in d u stries_______ . _________ ____________
1,252
1,099
360
1,121
92
383
403
504
150
248
446
1,113
938
330
1, 078
82
335
355
488
140
203
360
109.4
139.2
103.6
131 2
98.3
144.3
122.8
174.9
142.1
204.7
182.1
97.3
118.9
95.2
12fi 2
87.8
126.3
108.1
169.2
132.3
168.2
147.3
All m anufacturing. __ . . .
D urable goods
.
N ondurable goods____
. -
1 T he estim ates and indexes presented in th is table have been adjusted to levels indicated b y the final 1944
d ata m ade available b y th e B ureau of E m ploym ent Security of th e Federal Security Agency.
Public Employment
The down-trend which has characterized the movement of total
Federal employment thus far in the postwar period, was temporarily
interrupted in December 1946 by the hiring of temporary postal clerks
to handle the large volume of Christmas mailings. This increase, an
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TRENDS OF EM PLO Y M EN T AND LABOR TURN-OVER
321
estimated 236,000, augmented by smaller-than-usual monthly employ
ment gains on the part of the Veterans Administration and War
Assets Administration, was offset to the extent of 75,000 by declines
in other Federal departments and agencies, led by the War Depart
ment (with a decline of 47,000 employees) and the Labor Department
(which lost 23,000 employment-office employees to the State govern
ments on November 16).
The net increase of 161,000 resulting from these and smaller shifts
brought total Federal employment in December 1946 to 2.6 million,
of which the war agencies and Veterans Administration together
constituted 54 percent and the Post Office Department 26 percent.
The remaining 20 percent included employees of the executive depart
ments other than the War, Navy, and Post Office Departments,
employees of the Federal Security, Federal Works, and National
Housing Agencies, Federal Reserve banks, members of Congress and
their employees, the judges and other employees of the Federal courts,
and employees of a number of small independent peacetime agencies.
The year 1946 closed with an over-all employment decline of 870,000,
composed of a net decline of 986,000 in war agencies and of 16,000 in
peacetime agencies except the Veterans Administration, which in
creased by 133,000.
Although employment of veterans in the executive branch of the
Government in continental United States has declined somewhat from
its peak in August 1946 (whether for voluntary or involuntary reasons
is not known), it has increased almost 60 percent since December 1945.
This is in contrast with a decline of 38 percent in the nonveteran group
in the same year period.
Since February 1946 when a break-down of these veteran-andnonveteran employee figures by men and women first became available,
the employment of men veterans increased 31 percent and of women
veterans 57 percent, whereas the employment of nonveteran men
declined 32 percent and of nonveteran women 35 percent. Veteran
men now constitute 53 percent of all men employed in the executive
branch in domestic areas and veteran women constitute 7 percent of the
women.
Federal pay rolls, which have included two biweekly pay periods for
most employees each month since July 1945, except in December 1945
and June and November 1946 when they included three biweekly pay
periods, cover the calendar month beginning December 1946. A
method of adjusting the pay rolls to a calendar month basis for the
period July 1945-November 1946 is being worked out and the adjusted
figures will be available shortly.
Source of data.—Data for the Federal executive service are reported
through the Civil Service Commission, whereas data for the legislative
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322
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
and judicial services and Government corporations are reported to the
Bureau of Labor Statistics. Employment on Federal force-account
construction is included in both the executive branch (tables 3 and 4)
and in construction employment (table 2 in the section, Construction).
Military personnel and pay figures are reported monthly to the
Bureau of Labor Statistics but are published here only quarterly.
Mimeographed tables giving civilian employment and military per
sonnel and pay, monthly, 1939 to date, and civilian pay rolls, monthly,
1943 to date, are available upon request.
T able 3.— E m p lo y m e n t a n d p a y ro lls f o r r e g u la r F e d e ra l se rvices a n d f o r G overn m en t
c o r p o ra tio n s in se lected m o n th s
Executive 1
Y ear and m onth
C ontinental U nited
States
Total
Legislative
Judicial
All areas
W a s h in g
ton, D, C.,
area
T otal
Govern
m ent
corpora
tions 2
E m p lo y m en t3
December
D ecem ber
D ecem ber
December
December
December
December
1939 ______
1940.._ . . . . .
1941 _______
1942 ______
1943________
1944________
1945________
1,014,917
1,212,931
1,730, 850
3,020, 077
3,482,925
3, 702, 940
3,431, 746
981,404
1,178. 221
1, 691,833
2,977, 033
3,437,764
3, 659, 220
3,388, 037
937,391
1,106,162
1, 558, 071
2, 736, 555
3, 041, 577
3,147, 367
2,678, 565
127,174
153, 491
201, 390
287, 924
270,137
260,922
233, 762
5,583
5, 932
6,202
6, 353
6,116
6, 203
6,384
2,359
2,391
2,582
2,617
2, 655
2,646
2, 991
25, 571
26, 387
30, 233
34, 074
36, 390
34, 871
34,334
October 1946 4_________ 2,434,015
N ovem ber 1946 4 8______ 2,400, 500
December 1946 8............... 2, 561,362
2, 391, 478
2, 357,838
2, 519, 031
2, 084,103
2, 049, 287
2, 220, 561
225,862
224, 742
226, 460
6,902
6,896
6,806
3,061
3,079
3,061
32,574
32, 637
32, 464
P a y rolls (in th o u sa n d s)8
December 1943________
D ecem ber 1944________
D ecem ber 1945 8......... .
$703, 279
708,831
703, 503
$695,364
700, 870
695,089
$634, 338
643, 641
648,746
$55, 241
55,445
73,960
$1, 577
1,513
1,822
$767
779
1,135
$5, 571
5, 669
5,457
October 1946 5______
N ovem ber 1946 5_______
December 1946 5......... ..
544,105
627, 765
566,920
535, 074
617,845
557, 560
499, 545
578,343
521, 519
57,848
76,969
60,355
2,115
2, 364
2,169
1,083
1,488
1, 248
5,833
6, 068
5,943
1 Includes employees on force-account construction. Beginning Ju ly 1945, d a ta include clerks a t thirdclass post offices who were previously working on a contract basis. D a ta exclude su bstitute ru ral m ail
carriers.
2 D ata are for employees of the P anam a R ailroad Co., th e Federal Reserve hanks, and hanks of th e F arm
C redit A dm inistration. D a ta for o ther G overnm ent corporations are included under the executive service.
3 E m ploym ent is as of th e first of th e calendar m onth.
4 A dow nw ard revision of 6,000 to 37,000 in em ploym ent in the P ost Office D ep artm en t which affects data
for Octooer 1945-November 1946 has been tak en into account in the d ata for o ther agencies.
8 Subject to revision.
8 S tarting D ecem ber 1946, p ay rolls cover th e entire calendar m o n th . Previously, pay rolls were for all
pay periods ending w ith in th e calendar m onth, or 4 four weeks for m onths startin g Ju ly 1945, except for
D ecem ber 1945, Ju n e and N ovem ber 1946 w hen pay rolls included p ay for 6 weeks for m ost employees.
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323
TRENDS OF EM PLO Y M EN T AND LABOR TURN-OVER
T able 4.— E m p lo y m e n t a n d p a y ro lls f o r th e e x e c u tiv e b ra n ch o f th e F e d e ra l G o vern m en t
in se lected m o n th s 1
O ther agencies 3
W ar agencies2
Y ear a n d m onth
All
agencies
Total
C onti
nental
U nited
States
Outside
conti
nental
U nited
States *
T otal
C onti
nental
U nited
States
Outside
conti
nental
U nited
S ta te s4
■ E m p lo y m e n t8
D ecem ber 1939...
D ecem ber 1940...
D ecem ber 1941...
D ecem ber 1942...
D ecem ber 1943...
D ecem ber 1944...
D ecem ber 1945...
981,404
1,178,221
1, 691,833
2,977, 033
3,437, 764
3,659,220
3,388, 037
237,416
390,629
793,089
2,001,275
2,397,840
2, 541,176
2,162,351
204,048
330,948
673,036
1,775, 454
2,018,676
2,046,206
1,476,439
33,368
59,681
120,053
225,821
379,164
494,970
685,912
743,988
787, 592
898, 744
975, 758
1,039,924
1,118,044
1,225,686
733,343
775, 214
885,035
961,101
1,022,901
1,101,161
1,202,126
10,645
12,378
13,709
14,657
17,023
16,883
23, 560
O ctober 1946 6---N ovem ber 1946 6 :
D ecem ber 1946 7_.
2,391,478
2,357,838
2,519, 031
1,271,976
1, 229, 368
1,176,126
92,574
949,115
906,763
279,402
280,253
269,363
1,119, 502
1,128,470
1,342,905
1,091,529
1,100,172
1,313,798
27,973
28,298
29,107
P a y rolls (in thousands) •
D ecem ber 1943.
D ecem ber 1944.
December 1945 '
$695,364
700,870
695,089
$514,131
509,619
411,410
$456,601
455,993
369,946
$57,530
53,626
41,464
$181,233
191,251
283,679
$177,737
187,648
278,800
$3,496
3,603
4,879
535,074
617,845
557,560
275,644
283,897
258,882
245,917
252,969
229,189
29,727
30,928
29,693
259, 430
333,948
298,678
253,628
325,374
292, 329
5,802
8, 574
6,349
October 1946 7___
N ovem ber 1946 7.
D ecem ber 1946 7..
1 Includes employees on force-account construction.
. . . .
„
. „„
2 Covers W ar and N a v y D epartm ents, M aritim e Commission, N ational A dvisory C om m ittee for Aero
nautics, T h e Pan am a Canal, Price Decontrol Board, Philippine W ar D am age Commission, and the emerge31B ^^nninSg Jufy 1945, d ata include clerks a t third-class post offices who previously were working on a
contract basis. D a ta exclude su b stitu te rural mail carriers.
i Includes A laska and the P an am a C anal Zone.
6 E m ploym ent is as of the first of the calendar m onth.
, . ,
,c
e a dow nw ard revision of 6,000 to 37,000 in em ploym ent of th e P o st Office D epartm ent w hich affects
d a ta for O ctober 1945-November 1946 has been taken into account m th e d ata for other agencies.
s startln V D ecem b er 1946, p ay rolls cover the entire calendar m onth. Previously, pay rolls were for all
p ay periods ending w ith in th e calendar m onth, or for 4 weeks for m onths starting Ju ly 1945, except for D e
cem ber 1945, Ju n e and N ovem ber 1946 when pay rolls included pay for 6 weeks for most employees.
D e ta ile d R e p o rts fo r I n d u s tr ia l a n d B u sin e ss
E m p lo y m e n t, N o v e m b e r 1 9 4 6
o n t h l y reports on employment and pay rolls are presented below
for more than 150 manufacturing industries and for 27 nonmanu
facturing industries including water transportation and class I steam
railroads. Data for both manufacturing and nonmanufacturing
industries are based on reports of the number of employees and
amount of pay rolls for the period ending nearest the 15th of the
month.
M
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Federal Reserve Bank of St. Louis
324
T
M O N T H L Y LABOR REVIEW---- FEBRUARY 1 9 4 7
able
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 in m a n u fa c tu r in g in d u s tr ie s 1
fin thousands]
Nov.
1946
Oct.
1946
Sept.
1946
All m anufacturing____________ . . . . . .
_________ _____ _ 12, 218
D urable goods_________________________________________ 6, 206
N ondurable goods_______ _____ ______ __________ . .
6,012
12, 024
6,114
5, 910
12,018
6, 086
5,932
In d u stry group and industry
Nov.
1945
10, 503
5,180
5, 323
Durable goods
Iron and steel and th eir products-. . ________ . . .
Blast furnaces, steel works, and rolling mills___ ______
G ray-iron and semisteel c a s tin g s .._ . .
. . . . ___ .
M alleable-iron castings_________________ . _. ______ _
Steel castings___________________________ ________ .
Cast-iron pipe and fittin g s ...
__________ . _____
T in cans and other tinw are
_______
___ _____
______ .
W ire draw n from purchased rods_______ .
W ire w o rk .___ _ . . . _________ .
___
C utlery and edge tools. . . . _____ _ . . . __________
Tools (except edge tools, machine tools, files, and saw s)___
H ardw are_________ ___________ . . . ____________ . .
P lum bers’ supplies___ _ _____
______ _ _____
Stoves, oil burners, and heating equipm ent no t elsewhere
classified_________________ _______ . . . _______ . .
Steam and hot-w ater heating apparatus and steam fittings.
Stam ped and enameled ware and galvanizing___ ______ _
Fabricated structural and ornam ental m etalw ork____ .
M etal doors, sash, frames, molding, and trim ... . . . . .
Bolts, n u ts, washers, and riv e ts___ __ . . . ______ _
Forgings, iron and steel______ . . . . . . . . . . ____ __
W rought pipe, welded and h eav y -riv eted .. ____
Screw-machine products and wood screws .. . . .
Steel barrels, kegs, and d ru m s .._ ____ . . .
F irearm s._ _____ __________ ________ . . . .
Electrical m ach in ery .._ ________ ______________ .
Electrical e q u ip m en t.. . . . . . . . . _.
...
Radios and phonographs_______ ______ _
C om m unication eq u ip m en t. _ _ _____
M achinery, except electrical___ _ _______
M achinery and machine-shop products . .
Engines and turbines
__________________
Tractors
._
_______ _
A gricultural m achinery, excluding tra c to rs. . . ____
M achine tools____ __________ ________
M achine-tool accessories ____ ______
Textile m achinery _ ____ .
P um ps and pum ping equipm ent- _____ . . .
Typew riters . _ _______
Cash registers, adding and calculating m achines-.
W ashing machines, w ringers and driers, dom estic___
Sewing machines, domestic and industrial
Refrigerators and refrigeration eq u ip m en t___
T ransportation equipm ent, except automobiles
L ocom otives.. _____ _______
Cars, electric- and steam -railroad___
A ircraft and parts, excluding aircraft engines___
Aircraft engines____ _ . . . . .
Shipbuilding and boatbuilding_______
M otorcycles, bicycles, and p arts .
1,476
481.5
84.2
24.8
51.2
19.4
41.2
29.9
40.9
26.2
26.4
49.5
29.3
1,442
473.5
81.9
24.4
48.8
19.1
42.2
29.2
41.3
25.3
26.8
48.3
23.5
1, 456
480.1
82.1
24.4
50.7
18.7
44.8
29.8
41.3
25.9
26.4
47.4
28.1
1, 255
431.5
69.7
23.1
51. 1
14. 5
35. 2
27.9
30.6
22.3
22.3
34.5
18.9
62.0
51.4
83.4
56.9
10.1
21.0
26.7
13.8
29.3
6.3
14.2
60.3
50.2
81.8
55.1
9.9
20.6
26.4
13.1
29.0
6.3
14.2
59.4
48.9
81.5
56.1
10.2
20.4
26.2
13.4
28.5
6.2
14.2
48.6
42.2
64.1
42.4
7.3
20.2
24. 2
13.7
25.3
5. 9
11.7
568
310.9
92.1
92.2
558
307.6
88.7
90.6
543
300.1
85.2
89.0
479
300.3
57.3
66.7
1,107
377.7
45.4
53.7
43.5
59.7
52.8
34.7
58.3
22.2
36.4
12.6
10.5
64.1
1,091
370.3
44.6
53.7
42.3
62.0
52.2
33.9
57.4
21.3
35.4
12.0
10.3
63.5
1,070
363.2
45.3
52.0
41.2
62.0
51.5
33.4
57.5
20.5
34.6
11.9
10.1
60.2
911
325. 0
42.6
50.5
37.6
52.1
45.6
26.3
52.2
13.6
25.7
8.7
7.6
39.2
447
27.2
50.7
145.1
29.3
134.6
11.7
440
27.4
48.6
142.0
28.6
134.7
11.5
439
27.1
47.9
139.5
27.6
139.0
11.0
573
31.2
44.8
121.2
26. 7
286.0
7.8
A u to m o b ile s .___ ________
748
744
760
525
Nonferrous m etals and th eir products _
Smelting and refining, prim ary, of nonferrous metals
Alloying and rolling and draw ing of nonferrous metals, ex
cept alum inum . . .
___ _
Clocks and w atch es.. . ____
Jew elry (precious metals) and jewelers’ findings
Silverware and p lated ware
Lighting equ ip m en t___ . . .
A lum inum m an u factu res...
Sheet-metal w ork, no t elsewhere classified
406
39.3
402
38.6
396
37.5
319
33.8
61.7
28.5
17.4
15.1
31.2
50.9
27.5
61.5
28.2
17.5
14.7
31.2
50.6
26.8
61.7
27.8
17.9
14.6
30.6
49.7
26.1
53.3
21.9
14.9
10.8
22.0
38.4
21.2
L um ber and tim b er basic products . . _
Sawmills and logging camps
Planing-and plywood m ills.-. ___
642
234.0
76.8
633
233.1
75.6
627
233.0
74.6
484
193.1
61.0
See footnote at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
325
TRENDS OF EM PLO Y M EN T AND LABOR TURN-OVER
T able 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 r k e rs i n m a n u fa c tu r in g in d u s tr ie s 1
C ontinued
[In thousands]
In d u stry group and in d u stry
N ov.
1946
Nov.
1945
Oct.
1946
Durable soods—Continued
388
22.7
164.4
25.3
13.2
321
15.3
135.9
23.6
12.6
22.8
10.7
20.9
411
105.4
12.4
28.6
63.6
48.2
5.9
407
104.3
313
76.7
12.0
10.8
20.2
11.0
10.8
10.8
9.0
17.2
21.7
9.0
17.2
19.8
21.4
8.9
17.4
19.3
20.5
TPYt.iiP.-miH products and other fiber m anufactures----------------C otton m anufactures, except sm allw ares--------- ---------------C otton sm allwares-------------------------------------------------------Silk and rayon goods-------------------------------- ----------------- -W oolen and worsted m anufactures, except dyeing and
finishing_____________________________________ _______
H osiery___ ^ ----- ---------- --------- ----------------------------------K nitted c lo th -------------------------------------------------------------K n itted outerw ear and k n itted gloves----------------------------K n itte d u n d erw ear------ - ---------- ----------- ------- - ------- - - - D yeing and finishing textiles, including woolen and w orsted.
C arpets and rugs, wool------------------------------------- ----------H ats, fur-felt------- -------------------------------------------------------Ju te goods, except fe lts ..------- --------------------------------------Cordage and tw in e-------------------------------------------------------
1,240
465. 3
14.3
94.8
1, 224
459.5
14.5
93.8
162.2
117.5
160.5
115.8
F u rn itu re and finished lum ber products
M attresses and bedsprings------------F u rn itu re ________________________
W ooden boxes, other th a n cigar-----Caskets and other m orticians’ goods.
Wood preserving----------------------- -W ood, tu rn ed and shaped--------------
401
23.8
169.1
25.9
13.9
12.4
23.2
393
Stone, clay, and glass products-------------------- -----------------Glass and glassware------------------------- ---------------------Glass products m ade from purchased glass----------------C em ent------------------------------------------------------- -------Brick, tile, and terra c o tta -------------------- -----------------P o ttery and related p roducts------------------------------ ----G ypsum --------------------------- ------- ------ —7--------r ------W allboard, plaster (except gypsum ), and mineral wool
L im e-------------------------------------------------------------------M arble, granite, slate, and other p roducts--------------- -A brasives--------------------------------------------------- --------- -Asbestos p roducts-------------------■
411
104.5
12.8
28.7
62.3
48.6
6.3
20.0
22.8
166.7
25.5
13.1
12.5
22.9
28.9
63.4
48.0
5.9
12.0
46.9
39.7
4.6
9.5
7.7
13.2
16.3
14.5
Nondurable goods
1, 212
455.8
14.3
93.0
159.7
113.8
11.2
11.2
11.2
31.5
35.6
64.8
25.7
11.7
3.6
15.2
30.8
35.2
64.1
25.0
11.5
3.8
15.4
30.4
34.9
64.1
24.6
11.3
3.8
15.2
A pparel and other finished textile products---------------------------M en ’s clothing, n o t elsewhere classified------ -------------------Shirts, collars, and n ightw ear----------------------------------------U nderw ear and neckwear, m en’s-----------------------------------W ork sh irts___________________________________________
W om en’s clothing, n o t elsewhere classified----------------------Corsets and allied g a rm e n ts..---------------------------------------M illinery_________________ , __________ _______________
H andkerchiefs___ _____________________________________
C urtains, draperies, and bedspreads-------------------------------Housefurnishings, other th a n curtains, etc----------------------Textile bags----------------------------------------------------------------
1,083
204.3
56.8
12.7
13.6
208.9
16.6
16.5
2.4
14.6
10.4
14.4
1,085
199.6
54.8
12.7
13.4
216.9
16.3
19.0
2.4
15.1
1,068
197.1
54.4
12.4
13.5
216.5
15.9
19.2
2.3
14.0
L eather and leather products----------------------------------------------L eather_______________________________________________
Boot and shoe cu t stock and findings-----------------------------Boots and shoes------------------------------------------- --------- -----L eather gloves and m itten s-------------------------------------------T ru n k s and suitcases----------------------------------------------------
356
41.1
18.2
193.2
10.9
14.6
1,123
Food------------------- ---------------------------------------------------------138.9
Slaughtering and m eat packing-------------------------------------24.4
B u tte r____________________ 7----------------- --------------------13.1
Condensed and evaporated m ilk -----------------------------------16.8
Ice cream --------- ---------------------------------------- ------ ---------30.9
F lo u r------ ------------------------------------------------- ----------------21.8
Feeds, prepared--------------- ------------------------------------------11.0
Cereal preparations------------- ---------------------------------------249.0
B aking_______________________________________________
12.1
Sugar refining, cane-----------------------------------------------------21.9
Sugar, beet____________________________________ _______
57.1
Confectionery---------- ---------------------------------------------- 23.2
Beverages, nonalcoholic...--------------------------------------------53.3
M alt liquors----------------------- ------ --------------------------------131.9
Canning and preserving-------------- ------------- ------ - ............ ■
See footnote at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
11.2
11.0
14.1
13.5
352
41.6
17.8
190.4
355
42.1
17.8
193.5
11.0
11.0
1, 063
398.9
13.1
84.5
143.0
101.7
10.4
28.3
33.6
54.0
18.4
9.8
3.6
14.2
930
177.4
50.5
11.4
13.1
203.2
14.9
17.9
2.6
11.2
9.1
14.7
321
40.7
16.3
173.6
10.9
14.7
14.6
11.8
1,074
84.4
24.9
13.7
17.6
30.5
21.7
1,157
94.8
25.1
14.2
18.9
29.7
1,085
132.5
22.7
13.3
15.6
30.9
23.5
9.1
254.3
12.3
23.0
55.3
23.6
54.2
124.7
21.0
11.1
10.9
241.4
12.3
19.5
55.8
23.0
53.0
173.3 |
52.2
24.1
54.2
245.0
10.8
241.3
8.0
326
M O N T H L Y
L A B O R R E V IE W — F E B R U A R Y
1947
T able 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 r k e rs in m a n u fa c tu r in g in d u s tr ie s ^ C o n .
[In thousands]
In d u stry group and in d u stry
• N ov.
1946
Oct.
1946
Sept.
1946
N ov.
1945
Nondurable goods—C ontinued
Tobacco m anufactures_____________________________________
C igarettes__________________ _____________________ ____
Cigars____________________________ ____ _______________
Tobacco (chewing and smoking) and sn u fl_______________
91
34.5
42.3
8.0
89
33.9
41.4
7.8
87
33.7
40.0
7.6
83
34.9
34.5
8.4
P aper and allied products_____________ ____ ____ ___________
P aper and p u lp _______________________________________
P aper goods, o th er____ _____ ___________________________
Envelopes_______________ ___________________________
P ap er bags__________ ____ ______________ - ------ ------------P ap er boxes_____________________________________ _____
379
169.7
48.2
10.9
15.3
91.7
372
167.7
47.2
10.5
15.0
89.6
368
167.7
46.6
10.4
14.7
87.4
326
148.2
43.2
9.6
13.2
80.5
Printing, publishing, and allied industries___________________
N ew spapers and p eriodicals..______________________ ____
Printing, book and jo b ___________________________ _____
L ithographing____________________ __________________
Bookbinding________________________________ ______ . . .
399
135.0
165. 0
30.3
33.6
394
133.9
163.2
29.9
33.0
386
131.7
159.3
29.5
31.8
347
119.8
142.6
26.0
28.4
Chemicals and allied products______________________________
Paints, varnishes, and colors. ____________ _____________
Drugs, medicines, and insecticides_________________ _____
Perfum es an d cosmetics___________________ ____________
_____________________________________
Soap_____
Rayon and allied p roducts_________ _________________
Chemicals, not elsewhere classified________ ___________
Explosives and safety fuses__________________ __________
Compressed and liquefied gases_________________________
A m m unition, small-arms__________________ ____________
Firew orks_________________________________ __________
Cottonseed oil_________________________________________
Fertilizers________________ ____________________________
501
35.9
53.5
12.4
13.6
58.9
120.5
12.6
5.8
6.8
3.5
20.4
22.1
491
36.0
53. 1
12.6
13. 7
57.8
118.1
12.9
5.3
6.9
3.4
17.4
22.0
484
36.0
52.1
12.2
14.2
57.4
116.6
12.8
5.7
7.4
3.2
A 3.0
22.3
487
31.7
48.0
12.4
13.6
56.9
110.6
26.2
5.5
11.3
3.1
20.6
21.1
Products of petroleum and coal______________ ____ _________
Petroleum refining___ ______ ________ ______ ____________
Coke and b yproducts_____ __________________ ____ ______
Paving m aterials_______ _____________________ _____ ___
Roofing m aterials_________________________________ ____
151
99.1
25.8
1.8
12.7
151
99.2
25.8
2.0
12.6
152
99.8
25.9
2.3
12.6
139
95.1
22.4
1.8
9.8
R u b b er products____________________ _____________________
R u b b er tires and inner tu b e s.__________________________
R ubber boots and shoes.__________ _
_______________
R u b b er goods, o th e r._______ ___________________________
245
112.0
19.2
76.2
240
110.4
18.4
74.8
233
106.6
18.1
73.3
194
91.4
15.4
61.6
M iscellaneous industries________________________ __________
In stru m en ts (professional and scientific), and fire-control
e q u ip m en t................. ............. ........................ ............. ............
Photographic ap p aratus_____________________ _____ _____
Optical instrum ents and ophthalm ic goods_________ _____
Pianos, organs, and p a rts_______________________________
Games, toys, a n d dolls__________ _____ _______ ____ _____
B u tto n s__________ __________ __________ ______________
Fire extinguishers.____________ ________ ________________
444
438
430
348
20.7
25.4
21.6
9.9
25.2
10.2
2.1
20.7
25.3
21.5
9.7
24.3
10.6
2.0
20.9
25.3
21.2
9.4
23.6
10.6
2.1
22.4
21.5
19.4
5.6
15.9
9.2
2.3
1
N ovem ber 1946 estim ates are based on reports from 33,200 cooperating establishm ents covering 7,258,000
production workers. E stim ates for the major in d u stry groups have been adjusted to levels indicated by
final 1944 d ata made available b y the Bureau of Em ploym ent Security of the Federal Security Agency.
E stim ates for individual industries have been adjusted to levels indicated by the 1939 Census of M anu
factures b u t not to Federal Security Agency data. For this reason, together w ith the fact th a t this Burpau
has no t prepared estim ates for certain industries, th e sum of th e individual industry estim ates w ill not
agree w ith th e totals shown for th e m ajor in d u stry groups.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ALL MANUFACTURING INDUSTRIES
1939 =100
INDEX
400
350
300
250
200
150
100
50
WAGE EARNERS ANO WAGE EARNER PAY ROLL
TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
EMPLOYMENT AND PAY ROLLS
co
to
328
MONTHLY LABOR REVIEW— FEBRUARY 194 7
T able 2.— 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 ro lls in m a n u fa c tu r in g
in d u s tr ie s 1
[1939 average=100]
E m ploym ent indexes
In d u stry group and in d u stry
All m anufacturing_______________________________
D urable goods.__ _________________________ -.
N ondurable goods ___________
.- --- .-
Nov.
1946
Oct.
1946
Pay-roll indexes
Sept. N ov. N ov.
1946 1945 1946
Oct. Sept. Nov.
1946 1946 1945
149.1 146.8 146.7 128.2 291.4 286.0 284.1 222.9
171.9 169.2 168.5 143.5 320.8 317.7 313. i 241.8
131.2 129.0 129.5 116.2 262.7 255.1 254.9 204.5
Durable goods
Iron and steel and th eir p ro d u cts___
___ _
B last furnaces, steel works, a n d rolling m ills____
G ray-iron and semisteel c a s tin g s _____ ______
M alleable-iron castings------------------------ - -- _
Steel castings-. _______ _ _ ____ - _________
Cast-iron pipe and fittings ...............
T in cans and other tinw are-- -.
---------- ----W ire draw n from purchased rods__________
W irew ork. _
_
------C utlery a n d edge tools---- ----------- __ -Tools (except edge tools, m achine tools, files, and
saw s)________ ________
___ _
--- -H a rd w a re 2- - ________________
Plum bers’ supplies _____________ ___________
Stoves, oil burners, an d heating equipm ent, not
elsewhere classified
- - - - - - - .. ..
Steam and hot-w ater heating apparatus and
steam fittings- . . . _____ _ - ..................... .......
Stam ped and enameled w are and galvanizing___
F abricated stru ctu ral and ornam ental m etal
..................... - - - - - - ,
w o rk -,
M etal doors, sash, frames, molding, and trim ___
Bolts, n u ts, washers, and riv ets__ - ________
Forgings, iron and steel -- _______
W rought pipe, welded and heavy-riveted - ___
Screw-machine products and wood screws. _ __ _
Steel barrels, kegs, and d ru m s___________
Firearm s________ _____
____
- ____
Electrical m achinery.
_________________
___. . .
----Electrical e q u ip m en t__
Radios and phonographs 2-_- . _______ ______
Com m unication equipm ent
- ________
M achinery, except e le c tric a l______ . ___________
M achinery and machine-shop products________
Engines and tu rb in es_________________________
T ractors_________ _______ ___________________
A gricultural m achinery, excluding tracto rs. ___
M achine tools_______________________________
M achine-tool accessories__________________ .
Textile m achinery_____ „
______ _
___
P u m p s and pum ping e q u ip m en t___ ___________
T y p e w rite rs _____________ . . . _ ___________
Cash registers, adding and calculating m achines.
W ashingm achines, wringers and driers, dom estic..
Sewing machines, dom estic and in d u strial______
Refrigerators and refrigeration equipm ent ........
T ransportation equipm ent, except automobiles___
Locomotives__________________ __________
Cars, electric- and steam -railroad-.
A ircraft and parts, excluding aircraft engines___
A ircraft engines____ . . .
Shipbuilding and b oatbuilding____ _____
M otorcycles, bicycles, and p a rts ___________ _
A utom obiles-___ _______
N onferrous m etals and th eir products__
Smelting and refining, prim ary, of nonferrous
m etals......................
Alloying and rolling and draw ing of nonferrous
metals, except alum inum ________ ___ ___
Clocks and w atches____
Jew elry (precious m etals) and jewelers’ findings. _
Silverware and plated w a r e ___
Lighting equipm entA lum inum m anufactures
Sheet-metal w ork, n o t elsewhere classified______
See fo o tn o te s a t e n d of ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
148.9
124.0
144.1
137. 5
170.3
117.6
129.7
136.3
134.6
169.7
145.5
121.9
140.2
135.5
162.0
115.7
132.9
132.7
135. 9
164.1
146.9
123.6
140.5
135.1
168.5
113.4
141.1
135.7
136.0
167.7
126.6
111.1
119.3
128.1
170.0
87.7
110.8
127.1
100.8
144.3
270.0
208.7
298.7
294.4
314.1
262.4
230.4
240.7
261.7
384.7
263.2
203.2
294.0
292.5
289.6
253.5
248.8
231.3
265.1
369.5
263.2
206.3
291.7
287.5
297.5
239.9
274.1
231.8
270.9
364.6
210.4
173.6
221.1
242.6
281.7
170.3
185.5
191.3
190.5
283.5
172.4 174.9 172.2 145.9 348.8 355.8 340.8 253.9
139.0 135.5 133.0 96.7 281.5 278.3 266.6 |177. 8
118.8 95.3 113. 9 76.8 213.6 171.5 196.7 126.3
134.4 130.8 128.8 105.3 265.0 258.9 247.5 182.1
169.7 165.7 161.3 139.3 328.4 325.5 306.7 238.1
150.2 147.2 146.7 115.4 303.4 300.9 289.3 209.0
160.3
130.1
147.1
173.5
164.9
173.2
103.0
283.2
219.2
172.0
211.7
287.0
209. 5
186.7
243.2
171.6
156.3
162.9
209.8
158.5
240.6
137.2
185.2
169.0
133.6
182.2
281.5
420.9
206.6
365.7
329.0
194.3
168.1
185.9
177.3
155.2
127.4
143.8
171.8
156.3
171.6
103.1
284.3
215.2
170.1
203.8
282.0
206.5
183.0
239.0
171.8
152.1
169.2
207.5
154.7
237.0
131.6
179.9
160.3
130.8
180.6
277.1
423.6
198.1
357.8
321.8
194.5
165.0
185.0
175.4
157.9
131.3
142.9
170.1
159.9
168.3
102.7
284.1
209.4
166.0
195.7
277.0
202.5
179.5
242.6
166.4
148.1
169.2
204.8
152.3
237.1
126.6
175.8
158.7
128.3
171.2
276.3
419.4
195.4
351.6
310.5
200.8
158.0
188.8
172.9
119.5
94.2
141.3
157.3
163.6
149.5
97.0
233.2
184.9
166.1
131.8
207.6
172.4
160.7
228.6
161.3
135.3
142.4
181.2
120.2
215.3
83.6
130.5
115.9
97.0
111.5
361.3
482.6
182.8
305.6
300.3
413.0
112.3
130.5
139.3
275.3
246.0
270.3
318.5
294.7
349.6
243.8
571.2
400.6
308.3
426.7
521.3
375.5
336.8
490.6
269.9
280.7
282.7
341.6
301.1
451.1
279.0
352.0
292.5
260.5
300.9
510.7
852.1
411.2
671.8
477.6
338.2
318.4
310.9
333.2
273.9
241.2
253.9
313.4
261.9
349.0
229.5
553.2
393.1
303.7
406.4
521.5
373.5
333.5
480.1
269.0
277.2
291.9
341.5
298.3
452.8
261.6
336.0
301.2
255.0
311.4
520.9
895.6
387.9
672.6
530.2
355.2
317.5
307.5
326.3
274.8 187.7
250.1 155.9
246.2 259.4
301.1 261.9
279. 9 260.6
332.5 272.5
214.5 178.0
573.2 418.9
382.7 301.9
297.7 264.9
390.0 237.5
504.9 328.7
362.2 283.3
322.3 263.4
484.5 366.7
254.1 228.8
269.8 230.9
285.5 233.0
336.0 269.9
290.5 218.9
444.0 384.8
248.1 153.8
331.8 231.3
287.9 186.4
243.1 188.4
293.3 175.6
504.9 583.5
846.8 1021.8
364.5 302.5
663.9 506.6
507.8 389.7
346.6 637. 9
290.9 186.1
318.2 192.2
319.6 243.5
142.1 139.9 135.6 122.3 256.8 250.6 247.1 214.5
158.8
140.5
120.5
124.3
152.5
216.3
146.9
158.4
138.8
120.9
121.6
152.3
214.9
142.9
159.0
136.8
123.8
120.0
149.2
211.0
139.3
137.4
108.1
102.9
88.8
107.5
162.9
112.9
291.4
311.4
229.0
258.9
271.2
373.7
285.6
286.6
301.6
235.7
257.5
264.6
362.0
284.6
284.7
289.7
237.3
250.9
260.6
358.1
261.7
238.7
199.3
179.3
173.5
177.7
253.9
200.0
329
TRENDS OF EM PLO Y M EN T AND LABOR TURN-OVER
T able 2.— 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 rolls in m a n u fa c tu r in g
in d u s tr ie s 1— Continued
[1939 average=100]
Pay-roll indexes
E m ploym ent indexes
In d u stry group and ind u stry
Nov. Oct. Sept. Nov.
1946 1946 1946 1945
Durable goods—C ontinued
L um ber and tim ber basic products.
Sawmills and logging cam ps----Planing a n d plyw ood m ills------
152.8 150.7 149.2 115.0 305.4 313.5 306.9 194.8
81.3 80.9 80.9 67.1 162.5 168. 168.1 114.0
204.7 208.1 199.6 137.3
105.7 104.1 102.7 83
97.7
83.2
85.3
93.0
96.6
94.8
95.2
256.
258.6
223. 0
223.8
206.7
270.6
222.4
252.7
251.8
220.3
225.7
193.0
268.5
219.1
243.4 173.2
238.4 137.8
212.1 151.1
218.4 179.4
194.0 153.0
265.3 205.3
212.5 168.0
Stone, clay, and glass pro d u cts----------------------------- 140.0 139.9 138.7 106
Glass a n d glassware---------------- ------------------ --- 149.7 150.9 149.4 109.9
123.7 119.7 108.1
Glass products m ade from purchased glass-------- 127.
C em en t_____________________________________ 120.6 120.2 121.5 84.8
112.1 111.7 82.6
109.7
B rick, tile, and terra co tta-----------------------------P ottery and related products-------------------------- 146.8 145.5 145.1 119.
119.6 119.7 92.4
126.7
G ypsum ---------------------------------- ------ ------------W allboard, plaster (except gypsum ), and mineral
133.0 132. 117.7
135.6
wool--------------------------------------------------------95.2 94.7 94.1 81.4
L im e___________________ _____ ______________
92.8 94.1 71
93.2
M arble, granite, slate, a n d other products------A brasives_________________ ____ _____________ 259.0 256.2 249.7 210.7
129.0 91.1
134.7
136.6
Asbestos p ro d u cts-----------------------------------------
267.4
278.
253.2
206.7
222.3
262.5
240.7
264.0
274.2
239.6
205.4
228.0
262.0
232.1
259.8 175.9
268.9 170.3
184.8
212.5 135.4
224.1 139.1
257.7 188.1
231.0 155.1
289.7
221.4
155.3
440.
295.4
281
218.3
155.
407.
289.5
284.7
219.9
152.9
400.0
273.7
220.6
247. 242.9 237.2
293.5 285.4 281.7
220.6 228.7 222.0
189.3 180.9
191
174.8
199.9
178.2
142.0
242.7
143.7
216.1
234.0
199.4
184.0
109.0
180.1
192.5
161.5
F u rn itu re a n d finished lum ber products.
M attresses a n d bedsprings-------------F u rn itu re ______________ ...-----------W ooden boxes, other th a n cigar------Caskets a n d other m orticians’ goods.
W ood preserving--------------------------W ood, tu rn e d and shaped--------------
122.1 119.8 118.2
129.8 124.3 123.6
106.2 104.7 103.3
99.
102.0 100.6
105.6 106.0
111.3
105.6 104.2 103.9
112.0
110.6
111.
222.
167.5
105.3
328.8
175.9
Nondurable goods
Textile-m ill products a n d other fiber m anufactures..
C otton m anufactures, except smallwares---------C otton sm allw ares------- -------------------------------Silk and rayon goods-----------------------------------W oolen a n d w orsted m anufactures, except
dyeing and finishing-------------------------- -------H osiery------------------- -----------------------------------K nitted cloth___________________________ - —
K n itte d outerw ear and k n itte d gloves-------------Em itted u n d e rw e a r..._---------- ------- ---------- ---■
D yeing a n d finishing textiles, including woolen
and w orsted----------- --------- -----------------------C arpets and rugs, wool--------------------- -----------H ats, fur-felt_______________________________
Ju te goods, except felts---------------------------------Cordage an d tw ine------ ---------------------------------
108.4 107.0 106.0 92
117.5 116.0 115.1 100
107.5 108.8 107.5 98.5
79.1 78.3 77.6 70.5
A pparel and other finished textile products----M en ’s clothing, no t elsewhere classified----Shirts, collars, and nightw ear------------------U nderw ear and neckwear, m en’s -------------W ork sh irts-----------------------------------r - - -W om en’s clothing, not elsewhere classified.
Corsets and allied garm ents 2------------------M illinery______________________________
H andkerchiefs__________________________
C urtains, draperies, and bedspreads--------Housefum ishings, other th a n curtains, etc.
Textile bags------------------------------------------
137.2 137.4
93.4 91.3
80.6 77.
78.7
78
100.8 99.7
79.9
76.
88.3 86.8
67.8 78.4
50.2 48.
86.1 89.2
98.0 105.1
120.3 117.4
Leather and leather products...... ...........—
L eath er___________________________
Boot and shoe cut stock and findings.
Boots and shoes----------------------------L eather gloves and m itten s-------------T ru n k s and suitcases______________
102.5 101.5 102.4 92.5 201.0
160.8
87.0 88.1 89.1
96.5 94.6 94.2 86.4 170.9
87.3 88.8 79.6 178.
88.6
108.6 109.8 109.9 109.5
175.4 176.6 175.0 141.8 341.2
F o o d _____________________________
Slaughtering and m eat packing. _
B u tte r________________________
Condensed and evaporated m ilk.
Ice c ream ..---------- ------------------F lour------------------- ------------------
131.4
115.3
136.1
135.4
107.2
124.
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
242.7
108.7 107.5 107.0 95.
64.0 154.5
73.9 72.8 71
102.9 102.3 102.2 94.9 217.4
112.0 109.6 108.0 100.5 252.2
87.1 207.9
92.4 91.3 90
95.9 95.9 80.
97.9 96.1 72.0
79.1 78.0 67.4
101.2 106.4 105.7 100.0
125.8 127.2 125.5 117.2
96.
100.3
80.6
243.7
150.4
217.1
243.
203.9
182.5
181.3
237.4
266.2
142.6
124.6
140.6
198.8
220.4
288.2
186.8
167.6
191.1
219.3
176.0
166.2
147.1
100.7
176.1
200.2 218.1
224.1 210.0
208.0
136.9
132.1
146.9
188.7
136.4
142.7
110.4
98.3
129.6
149.9
206.1
201.6 195.2 186.
204.0
187.9
228
268.0
135.3 117.8 288.
90.2 81. 206.
77.3 71. 188.
76.8 70. 205.0
243.0
100.6 97.
154.2
79.7 74.
182.1
84.6 79.
100.4
73.
79.0
118.0
46.7 53.
66.2 191.2
82.
103.7 85.2 207.0
112.2 122.7 231.5
196.2
182.0
239.4
268.5
189.4
172.
197.2
224.4
170.5
177.1
138.7
108.8
196.9
165.3
146.4
138.0
145.7
188.9
333.6 256.7
198.1
158.7
170.0
175.4
219
346.1
203.3
160.2
170.5
182.4
125.7 135.4 127.0 248.1 228.6
70.0 78.6 110.0 215.7 110.5
243.4 256.1
138.5 139. 126
140.7 146.6 137.5 253.7 264.9
120.2 99.4 183.2 194.9
254.1 255.1
124.
123.3 119
242.7
118
258.7
279.9
204.0
249.1
86.2
211.
111
220.
214.9
185.2
203.5
223.5
151.6
212.3
330
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
T able 2.— 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 ro lls in m a n u fa c tu r in g
in d u s tr ie s 1— Continued
[1939 average=100]
E m ploym ent indexes
In d u stry group and industry
Pay-roll inuexes
N ov.
1946
Oct.
1946
Sept. N ov. Nov.
1946 1945 1946
Food—C ontinued
Fee is, prepared_____________________________
Cereal preparations__________________________
B aking. __ _____ _ ____________________ _____
Sugar refining, cane. . . . - _________________
Sugar, beet ______________________ ____. . .
Confectionery______ _________________ ______
Beverages, n o n a lc o h o lic .___ _______________ .
M alt liq u o r s ___ ______________ __________
Canning and preserving______________________
141.8
147.0
107.9
85.2
210.3
114.9
109.2
147.6
98.1
140.7
145.1
104.6
78.3
187.0
112.1
108.3
146.7
128.9
136.2
146.0
104.6
86.9
76.9
104.9
113.2
150.2
182.2
268.2
274.7
190.8
123.7
310.1
212.1
161. e
235.4
324.7
261.1
269.6
187.5
138.3
152.4
204.4
170.6
244.2
466.8
267.9
211.9
181.4
125.9
361.9
197.6
150.8
225.2
179.4
Tobacco m anufactures___________________________
C igarettes______ ____________________________
Cigars_______________________________ _______
Tobacco (chewing and smoking) and snuff_____
97.6 95.8 93.5 89.2 212.7 207.4
125.7 123.7 122. 9 127.1 247.1 238.9
83.0 81.4 78.6 67.7 194.3 191.7
87.0 85.6 82.8 91.5 166.7 160.0
196.0
226.7
180.9
150.7
172.2
207.8
148.7
150.5
P aper and allied p roducts______________ _____ ____
Paper and p u lp ____ ______ ___________________
P ap er goods, o th e r__________________ ____ ____
Envelopes.____. _____ _______________________
P ap er bags___ _______________________________
P aper boxes...................................................................
142.9
123.5
127.9
125.0
137.8
132.6
140.2
122.0
125.5
121.3
135.2
129.5
138.6
122.0
123.8
119.3
132 3
126.3
122.9
107.8
114.7
110.5
118.8
116.3
273.9
240.2
240.7
229.3
262.3
253.6
265.8
234.9
233.5
212.9
258.6
245.0
257.1
228.0
225.8
207.9
249.8
235.8
211.0
190.0
185.6
176.8
215.2
197.0
P rinting, publishing, and allied industries_________
N ew spapers and periodicals___________________
P rinting, book and job __________ ___________
L ithographing-____ _______________ __________
B ookbinding______________ ____ _ ___________
121.6
113.7
130.6
116.5
130.5
120.1
112.8
129.2
115.1
128.0
117.6
111.0
126.1
113.6
123.2
105.9
101.0
112.9
100.1
110.1
205.5
182.0
227.9
196.1
271.0
200.3
178.9
220.8
191.4
262.8
195.2
175.6
215.8
185.2
246.5
158.5
138.3
178.1
157.1
205.4
Chem icals and allied products_____
___________
P ain ts, varnishes, and c o lo rs _________________
Drugs, medicines, and insecticides_______ _____
Perfum es and cosmetics______________________
Soap________________________________________
R ayon and allied p roducts.......................................
Chemicals, not elsewhere classified____________
Explosives and safety fuses.......... .................. ..........
Compressed and liquefied g a se s _______________
A m m unition, sm all-arm s_________ _____ ______
Firew orks______________ ___________________
Cottonseed o il.____ __________________________
Fertlizers—.................................. ..................................
173.7
127.7
195.4
120.0
100.4
121.9
173.3
174.1
145.6
159.8
305.9
134.0
117.7
170.5
127.9
193.8
121.8
100.8
119.8
169.8
178.2
133.1
160.9
290.2
114.7
117.1
167.9
127.8
190.0
118.0
104.5
118.8
167.6
176.9
143.7
174.1
272.5
85.6
118.7
169.1
112.6
175.3
119.7
100.1
117.9
159.0
360.7
138.9
263.9
263.9
135.7
112.4
311.8
208.2
341.9
215.5
169.7
215.2
301.3
282.4
241.8
332.3
824.6
338.5
276.6
303.5
204.8
331.9
212.7
169.0
209.8
294.0
292.4
219.4
326.2
778.4
275.4
280.4
298.3
201.7
316.8
195.2
173.2
210.8
289.6
292.9
240.8
339.3
698.3
196.5
297.4
281.8
174.7
268.7
183.0
161.9
188.9
260.8
527.2
225.3
487.7
666.9
305.8
240.2
Products of petroleum and coal_____ ____ _________
Petroleum refining..................... ...............................
Coke and b y p ro d u cts..........................................
Paving m aterials.......... .................. .............................
Roofing m aterials...................... ...................................
142.6
136.0
119.1
72.4
157.2
142.8
136.2
118.7
82.6
157.1
143.8
137.0
119.3
95.5
156.6
131.3
130.6
103.1
72.4
122.2
245.7
226.9
217.1
135.2
313.8
245.8
228.2
215.0
150.5
303.5
250.3
232.7
220.0
190.6
298.6
222.9
215.5
181.0
134.3
219.3
R ubber products_________ _____ _____ _____ ______
R u b b er tires and inner tu b e s .________ _________
R ubber boots and shoes________ _____________
R u b b er goods, o th er___ ____ ______ ____ ______
202.9
207.0
129.6
147.1
198.7
204.0
123.9
144.5
192.8
197.0
121.9
141.6
160.1
168.9
104.1
119.0
385.1
360.3
253.7
292.4
368.5
346.1
214.8
288.5
370.9
348.9
245.8
282.4
257.8
240.2
193.5
208.8
M iscellaneous industries_________________________
Instru m en ts (professional and scientific), and
fire control e q u ip m en t___________ ____ ______
Photographic ap p aratu s______________________
Optical instrum ents and ophthalm ic g o o d s .___
Pianos, organs, and p arts___ ____ _________ . . .
Games, toys, and dolls.......................................
B u tto n s...........................................................
Fire extinguishers___ ________ __________
181.5 178.9 175.7 142.2 353.6 348.4 337.0 251.1
Oct. Sept. Nov.
1946 1946 1945
Nondurable goods— C ontinued
186.9
146.8
185.7
130.4
135.2
93.0
214.4
187.3
146.8
185.4
127.0
130.4
96.4
205.0
188.8
146.7
182.0
124.0
126.3
96.3
212.3
152.6
122 0
110. 2
87.1
220.9
111.3
111.2
150.2
92.7
202.3
124.6
167.0
73.8
85.3
84.3
229.8
272.3
271.6
199.0
141.0
424.9
226.9
163.7
236.9
212.9
331.9
253.4
337.1
273.0
289.7
211.3
435.1
332.0
246.6
332.8
250.5
275.4
211.0
399.6
330.7
239.1
322.1
241.1
260.4
214.1
414.7
324.6
198.0
281.2
117.9
153.8
167.5
459.3
1 These indexes are based on reports from 33,200 cooperating establishm ents covering 7,258,000 full- and
part-tim e production w orkers who worked or received pay during any p art of one pay period ending nearest
the 15th of N ovem ber 1946. Indexes for th e major ind u stry groups have been adjusted to levels indicated
by final 1944 d ata made available b y the B ureau of E m ploym ent Security of the Federal Security Agency.
2 Revisions have been m ade as follows in the indexes for earlier m onths:
Hardware.-—June and A ugust 1946 pay roll to 241.5 and 257.3, respectively.
Radios and phonographs.—A ugust 1946 pay roll to 369.8.
Corsets and allied garments.—June, July, and A ugust 1946 pay roll to 166.6,154.4, and 161.2.
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TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
331
T able 3.— Estimated number of employees in selected nonmanufacturing industries 1
E stim ated n um ber oj employees (in thousands)
In d u stry group a n d in d u stry
M in in g :2
A n th ra c ite .--__________________________________
Bitum idous coal- _____________________________
M eta l_________________________________________
Iro n _________ ____ _________________________
C opper. _________________________________
Lead and zinc______ - _______ _____
______
Gold and silver __________________________
M iscellaneous______________________________
T elephone. ___________ ___________________________
Telegraph 3_ ______________ . __________________
Electric light and pow er. _ _________________________
Street railw ays a n d busses . ___________ __________
H otels (year-round)________________________________
Pow er laundries_______
_ __________ . . _______
Cleaning and dyeing. _____________ _______________
Class I steam railroads s _________ ______ __________
W ater tra n sp o rta tio n 2 ____________________________
N ov. 1946
Oct. 1946
Sept. 1946
68.7
334
74.9
27.1
22.5
15.5
7.4
2.4
583
40.9
250
253
387
(*)
(*)
1,382
(7)
68.9
334
74.1
27.8
21.8
15.0
7.2
2.3
577
41.5
249
252
389
0)
(<)
1, 376
104
68.1
335
73.7
27.7
21.5
14.9
7.2
2.4
575
42.2
249
252
385
(4)
«
1, 363
m
N ov. 1945
64.8
327
64.6
23.7
19.0
13.7
6.0
2.2
443
47.0
215
236
376
(4)
(4)
1,406
165
1 See footnote 1, table 4.
2 D a ta are for production workers only.
3 Excludes messengers, a n d approxim ately 6,000 employees of general a nd divisional headquarters and
of cable companies.
4 T he change in definition from “ wage earner” to “ production w orker” in the power laundries and clean
ing and dyeing industries results in the omission of driver-salesmen. This causes a significant difference in
the data. New series are being prepared.
5 Source: In terstate Commerce Commission.
6 Based on estimates prepared b y th e U. S. M aritim e Commission covering em ploym ent on active deepsea American-flag steam and motor m erchant vessels of 1,000 gross tons and over. Excludes em ploym ent on
vessels under bareboat charter to or owned by the A rm y or N avy. Beginning w ith October 1946, d a ta re
late to the end of the preceding m onth. D ata for th e week ending nearest Septem ber 15th are not available.
1 N ot available.
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Federal Reserve Bank of St. Louis
332
MONTHLY LABOR REVIEW--- FEBRUARY 194 7
T able 4.— I n d e x e s o f e m p lo y m e n t a n d p a y ro lls in se le c te d n o n m a n u ja c tu r in g in d u s tr ie s
[1939 average= 100]
•
E m ploym ent indexes
Pay-roll indexes
In d u stry group and ind u stry
M ining:
A n th racite__ __________ ____ . . . . . . .
B itum inous coal_____ _ _ . . . _ ____
M e t a l _________ __ __ ____ __________
Iron_ _ _ ____ _ __________ . .
Copper___________________ _
Lead and zinc. ________ _ . . . __
Gold and silver _
. . . _________
M iscellaneous. __ _ . . . _________
Q uarrying and n o n m etallic.. . ______
C rude petroleum production 2__ ____
Public utilities:
T e le p h o n e ____________________ ______
T e le g ra p h ... . . . ___. . .
____
Electric light and pow er_______________
Street railw ays and busses_______ _____
W holesale trade ______
. _. ._ _______
R etail tra d e ___________ . . . _.
_______
F ood____ ____ ______. . . ___________
General m erchandise__________
A p p a re l.. . _ __________ _______ _
F u rn itu re and housefurnishings . . . . __
A utom otive. .
____________ ____ . .
L um ber and building m aterials. _____
Hotels (year-round) 3_. _______________ __
Pow er laundries___________ ____________
Cleaning and dyeing______ ____ __________
Class I steam railroads 4
W ater tra n sp o rta tio n 5 .. __
_______
Nov.
1946
Oct.
1946
Sept.
1946
N ov.
1945
N ov.
1946
Oct.
1946
Sept.
1946
N ov.
1945
82.9
90.0
84.9
134.9
94.4
99.4
29.7
60.9
101.2
93.0
83.2
90.1
83.9
138.7
91.2
96.3
28.9
59.2
101.7
93.4
82.2
90.5
83.5
138.1
90.0
95.6
29.0
60.4
102.5
93.9
78.2
88.2
73.2
118.0
79.7
87.9
24.3
55.8
85.0
86.7
182.3
233.1
147.8
241.9
170.7
192.1
44.2
99.9
222.4
155. 1
199.9
237.1
148.0
252.4
167. 1
188.5
43.0
99.9
227.6
150.1
194.0
234.9
147.0
253.3
163.1
188.0
42.5
98.0
227.9
147.9
144.5
212.8
117.2
191.8
129.6
167.6
31.7
84.7
163.2
140.0
183.4
108.7
102.5
130.6
112.7
117.2
108.6
144.8
124.3
85.5
97.6
115.2
120.0
109.9
123.0
139.9
(8)
181.6
110.3
102.0
130.3
110.7
112.2
103.7
132.1
120.1
83.1
96.6
113.8
120. 5
110.1
126.1
139.3
199.2
181.0
112.0
101.9
129.9
109.4
109. 8
103.5
125.4
116.7
81.5
95.5
113.8
119.5
109.9
125.6
138.0
(5)
139.4
124.8
88.1
121. 7
101.8
106.2
106.5
127.4
117.1
69.4
80.5
101.0
116.5
106. 7
120.6
142.4
315.1
273.0
194.2
157.6
210.9
189.7
191.5
185.6
225.0
207.9
148.6
168.5
191.9
218.2
191. 5
217.0
(«)
(6)
269.2
201.7
155.3
212.6
184.5
182.5
174.6
204.7
201.5
139.8
166.0
192.3
214.3
189 8
225. 7
(6)
422.6
265.0
177.3
153.3
207.9
182.8
180.8
173.6
199.0
197.8
139.1
164.8
190.0
209.5
188.7
225.6
(8)
(5)
200.3
177.9
126.7
179.1
155.2
151.9
154.9
172.4
175.2
103.8
126.6
150.7
190.6
168.9
193.5
(8)
582.1
1 These figures are based on reports from cooperating establishm ents covering both full- and part-tim e
employees who worked or received pay during any p art of 1 pay period ending nearest the 15th of N ovem
ber 1946, as follows:
M ining.—2,800 establishm ents, 338,000 production workers.
Public utilities.—2,800 establishm ents, 697,000 employees.
Wholesale trade.—11,800 establishm ents, 328,000 employees.
Retail trade.—39,000 establishm ents, 1,112,000 employees.
Hotels {year-round).—1,300 establishm ents, 137,000 employees.
Power laundries and cleaning and dyeing.—1,500 establishm ents, 72,000 production workers.
2 Does not include well drilling or rig building.
3 Cash paym ents only; additional value of board, room, and tips, not included.
4 Source: In terstate Commerce Commission.
5 Based on estim ates prepared b y the U. S. M aritim e Commission covering em ploym ent on active deepsea American-flag steam and m otor m erchant vessels of 1,000 gross tons and over. Excludes em ploym ent
on vessels under bareboat charter to or owned by the A rm y or N avy. Beginning w ith October 1946.
d ata relate to the end of the preceding m onth. D ata for the week ending nearest September 15th are not
available.
6 N ot available.
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TRENDS OF E M PLO Y M EN T AND LABOR TURN-OVER
333
L a b o r T u r n - O v e r 1 in M a n u fa c tu rin g , M in in g , a n d
P u b lic U tilitie s , N o v e m b e r 1 9 4 6
e v e r y 1,000 employees on factory pay rolls in November 1946,
37 quit, 7 were laid off, 4 were discharged, and 1 was separated for
other reasons. Despite over-the-montli declines in the quit and lay
off rates, they were still relatively high, indicating the continuation of
a comparatively tight labor market.
Each major manufacturing group showed a lower quit rate in Novem
ber than in October. Whereas in October, 5 industrial groups had
quit rates above 50 per 1,000, in November, only the lumber and
furniture groups (with rates of 61 and 55 per 1,000, respectively) were
at this level. These groups normally show the highest quit rates
among the manufacturing groups.
Transportation equipment and automobiles had lay-off rates of 36
and 17 per 1,000, respectively—the only manufacturing groups with
rates above 10 per 1,000 employees. Among the mining industries,
iron ore mines, seriously hampered by winter weather conditions,
showed a rate of 11 per 1,000.
The hiring rate of 57 per 1,000, although the lowest for November in
5 years, was considerably higher than the prewar rate. In automobiles,
iron and steel, and nonferrous metals, a reluctance to hire reflected
the coal strike.
Women continued to be hired at a higher rate than men in manu
facturing industries: 67 per 1,000 women; 53 per 1,000 men, but their
quit rates continued generally higher than for men. Involuntary
separation rates, representing mostly lay-offs and discharges were
lower for women than for men in 11 of the last 12 months. In Novem
ber involuntary separations were 10 per 1,000 women, and 13 per
1,000 men.
F or
i Turn-over rates reflect conditions only in plants which were in operation, and should be used with
caution because of the elimination from the over-all samples of plants involved in work stoppages.
728607— 47------ 12
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334
MONTHLY LABOR REVIEW— FEBRUARY 194 7
T able 1.— Monthly labor turn-over rates (per 100 employees) in manufacturing industries
Class of turn-over and
year
T otal separation:
1946_____________
1945_____________
1943_____________
1939_____________
Quit:
1946_____________
1945_____________
1943_____________
1939____________
Discharge:
1946____________
1945_____________
1943____________
1939____________
Lay-off:3
1946____________
1945_____________
1943____________
1939____________
M ilitary and miscel
laneous: 4
1946_____________
1945_____________
1943____ ________
Accession:
1946_____________
1945____________
1943_____________
1939........................ .
Jan.
Feb. M ar. Apr.
M ay June
July
Aug. Sept.
Oct. N ov. Dec.
6.8
6.2
7.1
3.2
6.3
6.0
7.1
2.6
6.6
6.8
7.7
3.1
6.3
6.6
7.5
3.5
6.3
7.0
6.7
3.5
5.7
7.9
7.1
3.3
5.8
7.7
7.6
3.3
6.6
17.9
8.3
3.0
6.9
12.0
8.1
2.8
6.3
8.6
7.0
2.9
24.9
7.1
6.4
3.0
5.9
6.6
3.5
4.3
4.6
4.5
.9
3.9
4.3
4.7
.6
4.2
5.0
5.4
.8
4.3
4.8
5.4
.8
4.2
4.8
4.8
.7
4.0
5.1
5.2
.7
4.6
5.2
5.6
.7
5.3
6.2
6.3
.8
5.3
6.7
6.3
1.1
4.7
5.6
5.2
.9
23.7
4.7
4.5
.8
4.0
4.4
.7
.5
.7
.5
.1
.5
.7
.5
.1
.4
.7
.6
.1
.4
.6
.5
.1
.4
.6
.6
.1
.3
.7
.6
.1
.4
.6
.7
.1
.4
.7
.7
.1
.4
.6
.6
.1
.4
.5
.6
.2
2.4
.5
.6
.2
.4
.6
.1
1.8
.6
.7
2.2
1.7
.7
.5
1.9
1.8
.7
.5
2.2
1.4
.8
.6
2.6
1.5
1.2
.5
2.7
1.2
1.7
.5
2.5
.6
1.5
.5
2.5
.7
10.7
.5
2.1
1.0
4.5
.5
1.6
1.0
2.3
.5
1.8
2.7
1.7
.7
2.0
1.3
1.0
2.7
.2
.3
1.4
.2
.3
1.4
.2
.4
1.2
.2
.4
1.0
.2
.4
.8
.2
.4
.8
.2
.4
.8
.2
.3
.8
.2
.2
.7
.2
.2
.7
2. 1
.2
.6
.2
.6
8.5
7.0
8.3
4.1
6.8
5.0
7.9
3.1
7.1
4.9
8.3
3.3
6.7
4.7
7.4
2.9
6.1
5.0
7.2
3.3
6.7
5.9
8.4
3.9
7.4
5.8
7.8
4.2
7.0
5.9
7.6
5.1
7.1
7.4
7.7
6.2
6.8
8.6
7.2
5.9
25.7
8.7
6.6
4.1
6.9
5.2
2.8
1 M onth-to-m onth em ploym ent changes as indicated by labor turn-over rates are not precisely compa
rable to those shown by the B ureau’s em ploym ent and pay-roll reports, as the former are based on d ata for
the entire m onth while the latter refer, for the m ost p art, to a 1 -week period ending nearest the middle
of the m onth. In addition, labor turn-over data, beginning in Jan u ary 1943, refer to all employees, whereas
th e em ploym ent and pay-roll reports relate only to production workers. T h e turn-over sample is not so
extensive as th a t of the em ploym ent 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.
F or th e m onth of October, rates are based on reports from 6,900 establishm ents, employing 4,470,000 workers.
2 Prelim inary.
3 Including tem porary (of more th a n 7 days’ duration), indeterm inate, and perm anent lay-offs.
4 M iscellaneous separations comprise no t more th a n 0.1 in these figures. In 1939 these d ata were included
w ith quits.
T able 2.— Monthly labor turn-over rates (per 100 employees) in selected groups and
industries,1 November 1946 2
T otal
separa
tion
Q uit
Discharge
Lay-ofE
M ilitary
T otal
a nd m is
cellaneous accession
In d u s try group and in d u stry
N o Oc N o Oc N o Oc N o Oc N o Oc N o Oc
vem to vem to vem to vem to vem to vem to
ber ber ber ber ber ber ber ber ber ber ber ber
M anufacturing
D urable goods_____________________
N ondurable goods_ _................................
Iron and steel a n d th eir products _ . _.
B last furnaces, steel works, and
rolling m ills__________________
Gray-iron castings________ . . __
M alleable-iron castings__ _______
Steel castings_________________ !
Cast-iron pipe and fittings_______
T in cans and other tin w are_____
W ire p roducts__________________
C utlery and edge tools__........ .
;
Tools (except edge tools, machine
tools, files, and saws) _______
H ard w are_____ ____ ___________
Stoves, oil burners, a n d heating
equ ip m en t..................._..................
£ e e fo o tn o te s a t en d of ta b le .
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Federal Reserve Bank of St. Louis
5.1
4.6
6.5
5.7
3.6
3.8
4.6
4.6
0.5
.3
0.5
.4
0.9
.4
1. 2
.6
0. 1
.1
0.2
.1
5.3
6.0
6.9
6.7
4.4
5.3
3.4
4.1
.4
.4
.5
.6
.1
.2
4.5
5.7
3.2
7.0
3.7
9.3
7.9
5.5
2.6
.2
.2
.3
.2
.9
.5
.5
.4
1.5
.3
1.3
2.9
.2
.3
.3
.2
.3
.1
8.2
.5
.7
.3
1.3
.3
6. 2
.7
.5
.3
.3
1.5
.3
1.5
.2
.6
.2
.8
.1
4.4
4.6
3.4
4.1
3.1
7.5
6.9
4.0
5.6
6.4
3.6
4.7
4.0
9.6
8.9
5.8
7.2
7.4
5.1
4.6
5.6
5.2
7.5
3.6
4.6
4.2
5.7
.5
.4
.7
.5
.3
.5
5.8
7.2
4.5
5.6
.7
.7
.5
6. 1
3.7
5.1
7.4
4.2
5.8
6. 8
9.7
5.1
5.5
4.9
2.6
.6
.2
.5
1.7
1. 0
.1
.2
.1
.1
(3)
7.4
3.2
6.3
6.9
3.4
7.1
.2
.2
(3)
.1
1.1
.2
.1
.2
.2
6. 0
.7
.1
.2
7.7
.1
5.2
10.6
7.0
7.7
335
TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
T able 2.— Monthly labor turn-over rates (per 100 employees) in selected groups and
industries,1 November 1946 2—Continued
Total
separa
tion
Discharge
Q uitt
M ilitary
T ot
and mis
cellaneous accès
Lay-off
In d u stry group and in d u stry
N o Oc N o Oc- No- Oc- No- Oc- No- Oc- No- Oc
vem to vem to- vem- to- vTem- to- vein- to- vem- to
ber ber ber ber ber ber ber ber ber ber ber ber
M anufacturing—C ontinued
Iron and steel and th e ir products—Con.
Steam and hot-w ater heating ap
p aratu s and steam fittings------ Stam ped and enam eled ware and
galvanizing------- --------------------Fabricated stru ctu ral m etal produ c t s . . . _________ - -------- --------Bolts, n u ts, washers, and riv e ts ._.
Forgings, iron a n d steel--------------
6.4
5.0
5.3
0.7
0.5
0.3
0.4
0.1
0.2
8.6
8.0
9.5
4.9
6.5
.5
.6
.6
2.0
.2
.4
7.2
8.4
6.8
4.4
4.4
3.8
2.9
2.3
5.0
3.7
3.5
.5
.3
.3
.6
.2
.2
.7
.3
1.4
1.0
.2
.5
.3
.2
.1
.2
.3
.2
6.3
4.4
3.4
Electrical m achinery *--------------------Electrical equipm ent for indus
trial use--------------------------------Radios, radio equipm ent, and
phonographs------------ ------------Com m unication equipm ent, ex
cept radios.......................................
5.3
3.5
4.0
.4
.4
.5
.7
.1
.2
5.6
6.7
3.8
2.0
2.7
.2
.2
.5
.6
.2
.3
3.0
4.6
6.2
4.2
4.9
.7
.8
.7
.4
.1
.1
7.7
8.3
3.4
0
2.8
0
.2
0
.2
0)
.2
0
4.9
M achinery, except electrical------------Engines and tu rb in es----------------A gricultural m achinery and trac
to rs------- ------------------------------M achine tools------------ --------- —
M achine-tool accessories.. . .......... .
M etalw orking m achinery and
equipm ent, no t elsewhere classi
fied________ - ................ ................
General industrial machinery,
except p u m p s------- ----------------P um ps and pum ping eq u ip m en t.
4.4
4.4
2.7
2.7
3.4
2.9
.4
.6
.5
.6
.5
.3
.4
.7
.1
.1
.1
.2
4.3
5.8
5.3
5.9
4.7
3.0
4.5
2.9
1.9
2.7
3.8
2.3
3.3
.3
.3
.4
.5
.2
.6
.3
.6
.7
.2
.4
.5
.1
.1
.1
.2
.1
.1
3.8
2.5
4.4
4.8
3.2
5.2
3.8
.4
.3
.1
.1
.1
.1
3.8
5.1
3.6
3.3
.5
.6
.5
.9
.5
.3
.3
.1
.1
.1
.1
.1
3.9
5.3
5.1
5.3
.4
.3
.5
.6
.5
.4
.4
.7
3.6 4.9
3.0 2.4
.9
1.3
6.8 10.4
.1
.1
0
.1
.1 7.8
.1 6.0
5.7
0
.1 11.5
T ransportation equipm ent, except
a u to m o b ile s...------------- --------------
8.2
4.5
4.8
8.0
7.4 9.1
6.5
Aircraft parts, including engines. 4.4 4.0
Shipbuilding and re p a irs.............. 11.7 15.2
3.3
3.1
2.6
4.2
3.6
3.9
2.7
4.0
9.5
3.2
5.1
.6
.7
1.7
3.5
.1
.2
4.1
6.9
3.3
5.5
.7
.7
1.7
3.6
.1
.1
3.7
6.4
A utom obiles._____________________
M otor vehicles, bodies, and trail
ers__________________________
M otor-vehicle parts a nd acces
sories____________ __________-
6.8
5.6
5.8
7.5
6.4
9.6
5.6
8.4
3.1
4.3
.4
.6
1.9
3.2
.2
.3
4.9
7.8
N onferrous m etals and th eir products. 4.5
P rim ary smelting and refining, ex
cept alum inum and magnesium 3.4
Rolling and draw ing of copper and
copper alloys........ ......................... 2.9
Lighting equipm ent------ ----------- 4.7
Nonferrous-metal foundries, ex
cept alum inum and m agnesium . 4.3
5.9
3.3
4.7
.5
.6
.6
.5
.1
.1
5.3
7.2
3.8
2.5
3.0
.6
.5
.1
.1
.2
.2
4.4
5.8
4.4
7.6
2.5
3.7
4.0
5.9
.2
.3
.3
.3
.1
.6
0)
1.2
.1
.1
.1
.2
3.5
6.1
5.1
6.7
5.9
3.4
4.9
.3
.5
.4
.3
.2
.2
5.1
6.9
9.0
8.9
6.1
6.1
3.6
8.0
8.0
5.3
.4
.5
.4
.5
.4
.5
.6
.6
.5
.4
.4
.6
.1
.1
.1
.1
.1
.2
7.7
7.4
5.3
10.5
10.7
7.2
.6
5.5
7.2
.6
.7
.5
.6
.1
.1
8.2
9.5
6.6
.6
5.3
7.1
.7
.8
.5
.6
.1
.1
7.7
9.7
4.3
4.0
4.9
6.5
3.5
5.3
5.2
5.3
7.2
4.8
4.2
3.6
4.5
6.2
4.1
.5
.6
.6
.8
.2
.4
.5
.5
.4
.3
.5
.7
.1
.3
.3
.5
.8
.2
.5
.3
.2
.2
.1
0
.1
.2
.3
.1
.1
.1
4.4
3.8
5.1
7.2
4.2
L um ber and tim ber basic p ro d u c ts.. . 7.2
Saw m ills.........................................— 7.3
Planing and plyw ood m ills........... 4.6
F u rn itu re and finished lum ber prod
u c ts......... .................................. .............
F urnitu re, including mattresses
and b e d sp rin g s-...........................
Stone, clay, and glass products-------Glass and glass products...... ........
C em en t.----- ------- -----------------Brick, tile, and terra c o tta ...........
P o ttery and related p roducts----See fo o tn d te s
at
e n d o f ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6.7
6.6
6.0
5.8
5.6
7.4
6.3
336
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
T able 2.— M o n th ly la b o r tu rn -o v e r ra te s (p e r 1 0 0 e m p lo y e e s ) in se le c te d g ro u p s a n d
in d u s tr ie s ,1 N o v e m b e r 1 9 4 6 2— Continued
Total
separa
tion
Q uit
Discharge
Lay-off
M ilitary
a nd mis
cellaneous
T o tal
accession
In d u stry group and in d u stry
N o Oc N o Oc N o Oc N o Oc N o Oc N o Oc
vem to vem to vem to vem to vem to vem to
ber ber ber ber ber ber ber ber ber ber ber ber
M anufacturing—C ontinued
Textile-mill p ro d u cts_______________
C otton__ _____________ ________
Silk and rayon goods__ . __ . .
Woolen and w orsted, except dyeing and finishing_____________
Hosiery, full-fashioned__________
Hosiery, seamless_______________
K n itted underw ear_____________
D yeing and finishing textiles, ineluding woolen and w orsted__
A pparel and other finished textile
products...... ........ __ .
......
M en ’s and boys’ suits, coats, and
o v e rc o a ts...
J_________ . .
M en ’s and boys’ furnishings,
work clothing, and allied garm en ts______
. . . ____ . . .
4.8
5.8
4.1
5.5
6.5
5.2
4.1
5.1
3.5
4.8
5.8
4.5
0.4
.4
.2
0.4
.4
.3
0.2
.2
.3
0.2
.1
.3
0.1
.1
.1
0.1
.2
.1
5.8
6.9
4.6
6.5
7.6
6.0
3.9
2.6
4.2
4.5
4.8
3.7
5.4
5.6
3.2
2.3
3.7
4.0
3.8
3.2
5.2
5.1
.4
.2
.2
.4
.4
.3
.2
.3
.2
.1
.3
.1
.4
.1
0
.1
.1
0
(3)
0
.2
.1
(3)
.1
4.3
3.5
5.5
6.0
5.0
4.3
6.8
6.1
3.6
3.8
2.3
2.6
.7
.6
.4
.4
.2
.2
5.1
5.0
4.8
5.9
4.4
5.3
.2
.2
.2
.3
0
0
6.4
7.1
3.6
3.7
3.4
3.4
.1
.2
.1
.1
0
0
5.0
5.0
4.9
6.5
4.6
5.9
.2
.2
.1
.4
0
0
6.4
7.2
3.9
2.7
4.1
5.4
4.6
5.5
3.3
2.1
3.5
4.6
3.5
4.8
.2
.2
.2
.2
.2
.2
.3
.3
.3
.5
.8
.4
.1
.1
.1
.1
.1
.1
4.7
4.2
4.8
5.0
3.9
5.3
Food and kindred products. _______ 6.1
___________ 8.3
M eat products. ..
Grain-mill products_____________ 5.9
7.9
7.4
8.0
4.7
6.0
4.3
5.5
3.2
6.2
.6
1.0
.5
.4
.3
.4
.7
1.1
1.1
1.8
3.5
1.2
.1
.2
0
.2 9.4
.4 19.3
.2 6.6
9.4
35.4
7.3
Tobacco m anufactures______________ 4.9
5.6
3.9
4.7
.3
.5
.5
.2
.2
.2
5.3
7.8
4.7
4.0
7.2
5.8
5.1
8.2
3.8
3.1
6.1
4.9
4.1
7.2
.5
.5
.8
.5
.5
.7
.2
.2
.1
.2
.3
.1
.2
.2
.2
.2
.2
.2
5.1
4.2
7.8
6.7
5.4
10.2
Chemicals and allied products.
2.6
Paints, varnishes, and colors.. . . 2.4
R ayon and allied products
___ 2.5
In d u strial chemicals, except explosives______________________ 2.7
3.3
3.3
2.7
1.8
1.8
1.5
2.4
2.4
1.9
.2
.2
.2
.3
.4
.2
.5
.4
.6
.4
.4
.4
.1
0
.2
.2
.1
.2
2.8
3.0
2.1
4.1
3.0
2.5
3.2
1.9
2.5
.2
.3
.5
.2
.1
.2
3.1
5.1
Products of petroleum and coal. . . . . 1.5
Petroleum refining______________ 1.4
1.8
1.7
.9
.8
1.2
1.1
.1
.1
.1
.1
.4
.4
.3
.3
.1
.1
.2
2
1.4
1.2
2.0
1.8
R ubber pro d u cts____ . ______ _ _ .
R ubber tires and inner tu b e s. _
R ubber footwear and related
products___ ____ _ _ _____
Miscellaneous ru b b er in d u stries...
4.0
3.0
5.1
3.7
3.2
2.5
4.4
3.2
.3
.2
.3
.2
.3
.2
.2
.1
.2
.1
.2
.2
4.6
3.2
6.2
4.6
5.2
5.2
6.7
7.0
4.4
4.1
6.1
5.9
.3
.5
.2
.6
.4
.4
.3
.4
.1
.2
.1
.1
6.6
6.6
7.0
8.7
Miscellaneous industries____. . . . . .
Nonmanufacturing
M etal m ining >____________________
Iron-ore_______________________
Copper-ore__ ________________ .
Lead- and zinc-ore_______ ______
3.6
5.2
2.7
4.0
.3
.5
.5
.5
.1
.2
4.7
5.7
4.8
3.5
5. 2
4.9
5.4
2.8
6.8
5.6
3.7
1.8
4.5
3.9
4.4
1.8
6.0
5.0
.3
.2
.4
.3
.4
.1
.5
.4
.6
1.1
.2
.6
.4
.6
.2
.1
.2
.4
.1
.1
.2
.3
.1
.1
6.0
2.9
7.4
6.9
6.4
3.1
9.1
6.9
Coal m in in g :«
A n th racite_____ . . . ______. . .
B itu m in o u s ..._____ _________
1.5
0
2.0
3.9
1.1
0
1.4
3.3
(3)
(5)
.1
.2
.3
0
.4
.2
.1
0
.1
.2
1.7
0
2.2
3.7
Public utilities:
T elephone____ .
___ . . ____
T elegraph___ ._ _____ ______
0)
0
o
0
0)
0
0)
0
0
(6)
0
0
(9
0
0)
0
(9
0
(•)
0
(9
0
0
0
L eather and leather products________
Leather. .
Boots and shoes________________
Paper and allied products__________
Paper and p u lp ____. . . _________
Paper boxes____________________
1 Since Jan u ary 1943 m anufacturing firms reporting labor turn-over have been assigned industry codes on
the basis of current products. M ost plants in the em ploym ent and pay-roll sample comprising those which
were in operation in 1939, are classified according to their major activity a t th a t tim e, regardless of any sub
sequent change in major products.
2 Prelim inary.
s Less th a n 0.05.
4 N ovem ber rates based on incomplete returns.
5 N ot available.
6 For the m onth of October rates for mining industries are based on reports from 500 establishm ents em
ploying 231,000 persons.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
337
TRENDS OF EMPLOYMENT AND LABOR TURN-OVER
T able 3.— M o n th ly la b o r tu rn -o v e r ra te s f o r m en a n d w o m e n in a ll m a n u fa c tu r in g a n d
se lected g r o u p s ,1 N o v e m b e r 1 9 4 6 2
M en (per 100 men)
In d u stry group
T otal
separation
Q uit
W omen (per 100 women)
T otal
Accession separation
Q uit
Accession
Nov. Oct. Nov. Oct. Nov. Oct. Nov. Oct. Nov. Oct. Nov. Oct.
All m anufacturing_________________ 4.6
D urable goods__________________ 5.0
N ondurable goods........................... 3.9
5.8
6.3
4.8
3.3
3.5
3.0
4.3
4.6
3.7
5.3
5.3
5.3
6.5
6.7
6.0
5.7
5.7
5.6
6.9
6.6
7.1
4.7
4.2
4.9
5.7
5.1
5.9
6.7
5.7
7.0
7.6
7.7
7.6
Iron and steel and th eir pro d u cts____
Electrical m ach in ery ... . . .
----M achinery, except e lectrical.. . . . .
T ransportatio n equipm ent, except
autom obiles______________________
Automobiles
Nonferrous m etals and th eir products.
L um ber and tim b er basic products. _.
F u rn itu re and finished lum ber produ c ts__ _________________________
Stone, clay, and glass p ro d u c ts... .
Textile-m ill p ro d u cts_______________
A pparel and other finished textile
p roducts_________________________
L eather and leather products ______
Food and. kindred pro d u cts...............
Tobacco m anufactures . . . . _______
P aper and allied p ro d u cts.. . . . _ . . .
Chem icals and allied p ro d u c ts .. . . .
Products of petroleum and c o al..
R ubber p ro d u cts___________________
M iscellaneous in d u stries____________
4. 5
3.4
3.6
5. 5
4.4
4.3
3.5
2.6
2.5
4.2
3.0
3.2
4.8
4.5
4.1
5.9
5.3
5.0
5.7
6.6
4.0
6.6
7.0
4.9
4. 5
5.1
2.9
4.8
5.8
3.8
5.4
7.6
4.6
7.0
9.0
5.9
7.7
5.2
4.2
7.3
9.1
7.6
5.9
9.2
3.4
3.2
3.1
6.1
3.7
5.0
4.5
8.2
8.3 7.9
3.9 6.5
5.2 7. 1
8.0 10.9
5.3
6.5
5.2
6.2
6.7
7.8
6.1
6.1
2.7
3.1
4.1
5.1
3.8
4.3
5.1
5. 5
4.4
4.4
5.6
3.2
6.4
8.6
7.7
5.9
6.6
4. 1
4.5
8.8
5.2
5.2
5.5
3.0
3.7
7.2
4.1
4.4
8.2
4.4
5.7
9.6
5.9
6.3
7.0
4.8
6.1
8.5
5.6
5.9
5.6
3. 5
4.5
7.2
4.7
5.4
7.7
4.2
5.8
9.4
6.6
6.8
2.7
3.1
5.2
3.7
4.2
2.4
1.4
3.6
3.2
3.9
4.4
6.2
4.6
5.3
3.0
1.7
4.8
4.8
2.4
2.6
3.8
2.6
3.3
1.6
.8
2.9
2.3
3.6
3.8
4.3
3.6
4.3
2.2
1.1
4.0
3.6
5.0
4.3
7.9
3.6
4.9
2.6
1.3
4.3
4.5
4.6
4. 5
8.7
6.6
6.2
4.0
1.8
5.9
5.0
5.3 6.2
4.7 6.5
8.9 12.3
5.7 6.1
6.2 7.6
3. 5 4.7
3.5 4.1
4.9 6.2
4.4 6.2
4.8
4.1
7.7
4.7
5.2
2.5
2.7
4.0
3. 4
5.6 6.4
5.9 5.2
8.7 14.3
5.4 6.2
7. 1 6.0
3.4 3.7
3.1 3.4
5.5 5.5
4.8 5.0
7.4
6.0
11.3
8.4
8.2
4.6
4.4
7.4
6.9
1 These figures are based on a slightly smaller sample th a n th a t for all employees, inasm uch as some firms
do no t repo rt separate d a ta for women. R ates for October are based on 6,800 reports covering 4,242,0C0
employees.
2P relim inary figures.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Trends o f Earnings and Hours
S u m m a ry o f E a rn in g s a n d H o u rs D a ta fo r
N ovem ber 1946
W e e k l y e a r n i n g s in manufacturing industries averaged $46.83 in
December 1946, only 64 cents below peak wartime earnings (January
1945), according to preliminary estimates. Hourly earnings, which
have risen to $1.15 are primarily responsible for maintaining this
high level of weekly earnings. The average workweek was 40.9
hours, the longest since January 1946, but 4% hours less than in
January 1945.
Preliminary averages for December are as follows:
All manufacturing___
Durable goods__
Nondurable goods
Weekly
earnings
Weekly
hours
$46. 86
49. 51
44. 14
40. 9
40. 8
41. 0
Hourly
earnings
(in cents)
114. 5
121. 2
107. 6
Final figures for November indicate that despite plant closings on
Armistice Day, and time out in some plants on election day, average
weekly earnings in manufacturing as a whole were slightly higher
than in October. In the durable goods group, the drop of one-half
hour in the workweek was offset by wage increases and premium
pay for holiday work.
Among the nondurable goods industries, outstanding increases
in weekly earnings occurred in plants producing pianos, organs, and
parts, and in the slaughtering and meat packing industry. November
weekly earnings in the pianos, organs, and parts industry averaged
$51.09, an increase of $2.78 over the month. Hourly earnings in
this industry advanced almost 6}£ cents since September, reflecting
in part additional overtime work as production schedules were
stepped up to meet increased demand for the industry’s products.
In slaughtering and meat packing plants, which reported one of
the largest over-the-month increases in weekly earnings of all manu
facturing industries, earnings rose to $51.15, a gain of $8.09. Hours
also rose from 37.5 in October to 44.9 in November, marking, in addi
tion to the normal seasonal upturn, the full effect of the removal of
OPA controls.
338
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Federal Reserve Bank of St. Louis
339
TRENDS OF EARNINGS AND HOURS
Brokerage, and bituminous and anthracite coal mining averaged
the highest weekly earnings in November among the nonmanu
facturing industries ($62.00, $61.49, and $56.57, respectively).
These levels were lower than in October, due to the decline of com
missions on brokerage sales, holiday shut-downs in coal mines on
Armistice and election days, and the persistent shortages in some
areas of railroad cars for transporting coal.
The most significant increase in hourly earnings among nonmanu
facturing industries was reported by the telegraph industry where
earnings jumped from 91 cents an hour in September to $1.06 in
November. While this rise reflects wage rate increases granted in
October, further gains are pending.
E a r n in g s a n d h o u rs in m a n u fa c tu r in g a n d n o n m a n u fa c tu r in g in d u s tr ie s
M AN U FAC TUR IN G
Average weekly
earnings 1
Average weekly
hours 1
Average hourly
earnings *
In d u stry group and ind u stry
All m anufacturing........
D urable goods........
N ondurable goods.
Oct. Sept. Nov.
1946 1946 1946
Oct. Sept.
1946 1946
Nov.
1946
Oct. Sept. N ov.
1946 1946 1946
$45.74
48. 53
42.86
$45. 39
48. 36
42.34
40.2
40.1
40. 2
49.90 49.90 49. 29
40.0
40.3
39.7 124.7 123.9 124.1
50.28
52. 58
51. 50
49.28
43.67
46. 22
49.89
45.83
38.7
41.8
40.4
39.9
43.0
39.0
40.6
43.5
38.7
42.8
40. 9
38.8
42.3
40.8
40.9
43.7
38.0
42.3
40.7
38.3
40.7
41.9
41.3
43.0
49.03 49.01 47.59
45. 59 46.24 45.11
47. 51 48.88 45.63
42.4
41.0
40.1
42.9
41.9
41.2
42.5 115.8 114.1 112.1
110.5 109.5
41.2
39.4 118.0 117.9 115.7
Durable goods
Iron and steel and th eir p roducts--------- B last furnaces, steel works, and rolling
m ills__________ _____ ___ r ------------------Gray-iron and semisteel castings-------------M alleable-iron c astin g s.................................
Steel castings.................................................—
Cast-iron pipe and fittin g s......... - ................
T in cans and other tin w a re .........................
W irew ork______________ __________ ___
C utlery and edge tools------------ -------Tools (except edge tools, machine tools,
files, and saw s)......................... - .................
H ardw are 2----------------- -----------------------Plum bers’ supplies.............. .................... .
Stoves, oil burners, and heating equip
m ent not elsewhere classified-------------Steam and hot-w ater heating apparatus
and steam fittings-----------------------------Stam ped and enameled ware and galva
nizing........................ ........—..................---F abricated structural and ornam ental
m etalw ork............. ....... ............ - - ..........- - M etal doors, sash, frames, molding, and
trim --------- ------ -------------------------------Bolts, nuts, washers, and riv e ts ..................
Forgings, iron and steel------------------------Screw-machinie products and wood screws.
Steel barrels, kegs, and d ru m s.....................
Firearm s_______________________ ______
50. 72
52.80
51.74
51.91
45. 92
42.58
48. 85
47. 65
50. 39
53. 36
52.27
50.25
45.23
44.68
49. 09
47. 45
130.9
126.3
128. 2
129.6
106.7
109.1
119.8
109.7
1303
124.8
127.7
129.1
106. S
110.0
132.5
124.3
126.6
128.6
107.1
111.1
119.4 120.7
108.5 106.5
111.0
47.36
40.6
41.0
40.2 119.8 119.2 117.8
50.69 51.45 49.72
40.7
41.1
40.8 125.1 125.2 121.9
46. 58 47.15 45.49
39. 9
40. 9
39.6 116.4 115.5 115.0
48.06 49.74 48. 85
39.6
41.0
40.6 121.3 121.4 120.3
48.73 48.
51. 70
48. 87
55. 51
51.50
51. 54
53.17
51.68
46. 89
55.16
52.13
48.46
51.10
52.13
45.70
53. 52
50. 57
45.46
53.30
41.0
41.0
39.9
42.5
43.3
40.8
41.6
39.7
40.2
43.3
42.1
40.7
41.1
38.
39.5
42.3
39.8
42.3
126.8 125.0 126.9
118.9 117.6 116.7
139.8 138.0 136.3
121.2 120.4 119.6
119.1 115.0 114.3
130.4 125.6 125.9
48. 36
49. 42
43.12
50.71
48. 34
49. 21
42.66
51.46
48. 31
49.24
42. 63
50.60
40.6
40.3
39.9
42.1
40.7
40.4
39.8
42.7
40.8
40.5
40.0
42.2
119.2 118.7
122.2 121. 5
108.0 107.1
120.1 120.4
51.96 52.47 51.74
M achinery, except electrical-------------- ---M achinery and machine-shop p roducts— 51.38 51.91 51.05
Engines and tu rb in e s .................................... 55.90 55.43 55.26
Tractors
____________________ __ _ 52.53 52.28 51.21
51.00 51.09
50.09 01.00
A gricultural m achinery, excluding tractors. OU.O»
M achine tools-------------------------------------- 55.631 55.61 54.45
40.9
41.1
40.6
40.3
39.8
42.5
41.5
41.6
41.1
40.2
40.4
42.6
41.1
41.2
40.5
39.3
40.4
41.9
127.1
124.9
137.2
130.4
126.8
131.7
Electrical m achinery------------------ -------Electrical equ ip m en t............ - ..................
R adios and phonographs 2----------------Com m unication equipm ent-------- ------
See footnotes at end of table.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
126.
124.
136.
130.
126.
130.
118.5
121.4
106.6
119.9
126.0
123.8
136.5
130.2
126.9
130.0
340
MONTHLY LABOR REVIEW— FEBRUARY 194 7
E a r n in g s a n d h o u rs in m a n u fa c tu r in g a n d n o n m a n u fa c tu r in g in d u s tr ie s — Continued
MANUFACTURING—Continued
Average weekly
earnings 1
Average weekly
hours 1
Average hourly
earnings i
In d u stry group and industry
Nov.
1946
Durable goods—C ontinued
M achinery, except electrical—C ontinued
M achine-tool accessories ______________
Textile m achinery__
_ _ _ _ ______
Typew riters.
. ____ _______________
Cash registers, adding and calculating
m achines. _ . . . . . . _______ . .
W ashing m achines, w ringers and driers,
___ ______
dom estic.. . . . _
Sewing machines, domestic and industrial.
Refrigerators and refrigeration equipm ent.
T ransportation equipm ent, except automobiles___________ ____________________
Locomotives____ ____________ ______
Cars, electric- and steam-railroad
_ . .
A ircraft and parts, excluding aircraft
engines___________________ _______ _
A ircraft engines________________________
Shipbuilding and boatbuilding__________
M otorcycles, bicycles, and p a rts ________
A utom obiles. ________________________
Nonferrous m etals and their products____ .
Sm elting and refining, prim ary, of nonferrous m etals____________ _______ _
Alloying and rolling and drawing of nonferrous m etals except alum inum _______
Clocks and w atch es... . . . . . . _____ _ _
Jew elry (precious metals) and jewelers’
fin d in g s ._____ ____________ _______
Silverware and p lated w are. .
______
Lighting eq u ip m en t.
___ . . .
A lum inum m anufactures___ _ _______
L um ber and tim ber basic pro d u cts__
Sawmills and logging cam ps _______
Planing and plywood m ills_____________
F u rn itu re and finished lum ber products
F u rn itu re _______ . . ______ _____
C askets and other m orticians’ goods. ___
Wood preserving .
_ _____ _
Stone, clay, and glass products__________
Glass and glassware . . . . . . . . . . . . . .
Glass products m ade from purchased glass.
C em en t...
Brick, tile, and terra c o tta _____
P o ttery and related products.
G y p su m ____ ____ _
_____
L im e. . . . . . .
M arble, granite, slate, and other products.
Abrasives . . ________
Asbestos products . _____
Nondurable goods
Textile-m ill products and other fiber m anufactu res..
. . _ __ ___
C otton m anufactures, except sm allw ares..
C otton sm allw ares. . . . _
Silk and rayon goods___
Woolen and worsted m anufactures, except
dyeing and fin ish in g ... _ . .
H osiery__________ _____
K n itted c lo th .. . . . . .
K n itte d outerw ear and k n itte d gloves___
K n itted underw ear __.
D yeing and finishing textiles, including
woolen and w orsted___
C arpets and rugs, wool
H ats, fur-felt_________
Ju te goods, except felts___
Cordage and tw in e_______ .
See fo o tn o te s a t e n d of ta b le .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Oct. Sept. N ov.
1946 1946 1946
Oct. Sept. Nov.
1946 1946 1946
Oct. Sept.
1946 1946
$55.87 $56.47 $56.28
49.60 50. 26 49.43
48.98 47.89 47.19
41.2
41.8
42.1
41.7
42.9
41.9
Cents Cents Cents
41.5 136.4 136.2 136.0
42.6 118.6 117.3 116.1
41.7 116.5 114.3 113.2
58.42 57.34 57. 91
41.8
42.3
42.6 140.2 136.6 137.0
45.68 49.60 47.87
52.63 52. 63 51.15
47.67 49. 71 49. 54
39.8
40.8
38.3
42.7
41.2
40.2
41.7 115.2 116.1 114.7
40.4 129.1 128.2 127.4
40.1 124.3 123.7 123.5
52.35 54.24 52.65
58.05 60.63 57.92
52. 68 51.81 49.38
38.4
40.5
41.3
40.0
41.6
41.8
38.8 136.2 135.7 135.6
39.6 143. 2 145.6 146.2
39.9 127.7 124.1 123.8
52. 53
50.81
51.42
52.39
53.73
56.93
50.91
50.95
39.6
37.0
35.7
41.2
40.5
42.1
37.7
42.6
40.6
41.9
35.7
41.2
52.99 52.63 53.37
49.35 48.97 48.55
38.0
41.1
38.2
41.0
38.5 139.5 137.7 138.5
40.7 120.2 119.4 119.2
48.09 47.81 48.65
40.0
40.1
40.3 120.9 119.7 120.8
52. 56 51.94 51.39
45. 73 44.81 43.68
41.0
41.6
40.7
41.6
40.7 128.3 127.5 126.4
41.0 109.9 107.8 106.4
48.49
55.47
46.77
48.21
37.68
36. 26
41.79
41.78
42.31
42. 82
39.35
44. 94
46. 75
41.26
46.18
42.08
41.57
49.68
45.69
42. 76
48. 54
50.18
49.95
56. 42
45.85
46.90
39.16
37.87
43.19
41.88
42.59
42. 62
38. 68
44. 48
45.71
40.29
46. 02
42. 25
41.89
50. 75
45.12
44.18
45.11
49.81
48.93
55.48
46.10
47.32
38.73
37. 69
42.04
40. 86
41.62
42. 74
38. 01
44.03
45.29
38.88
47. 03
41.28
41.33
50.46
45.66
42. 64
45.35
49.19
42.6
44.9
39.7
40.3
40.5
40.1
41.9
41.7
41.4
41.9
42. 4
40.3
39.0
41.1
42.2
40.3
37.9
45.4
46.2
41.7
39.9
41.9
43.7
46.1
38.9
39.7
41.9
41. 5
43.1
42.2
41.8
42.5
42.1
40.6
39.4
40.9
42.4
40.9
38.4
47.0
46.6
42.9
38.1
42.0
43.5
45.9
39.1
39.5
41.4
41.2
42.2
41.8
41.6
42.8
41.5
40.5
39.5
40.5
42.9
40.3
38.2
46.6
46.9
41.6
38.0
42.9
115.2
123.2
118.1
119.4
93.0
90.5
100.2
100.1
102.8
102.4
93.2
111.6
120.0
97.6
109.5
103.5
110.0
108.8
98.8
103.2
121.1
119.8
114.9
122.2
117.9
118.1
93.5
91.3
100.1
99.3
101.9
100.2
91.9
109.6
116.1
96.4
108.5
102.7
109.6
107.9
96.6
102.6
118.5
118.9
112.4
121.0
'117.8
119.7
93. 5
91. 5
99.5
97.7
100. 2
100. 2
91.7
108.7
114.7
93.8
109.7
102. 0
108.6
108.4
97. 4
102. 2
119. 4
114.5
38.38
36.14
38.09
38.69
38.09
35. 57
39. 00
38. 67
37. 54
35.35
38. 33
37. 20
40.2
40.3
39.7
41.1
40.2
39.9
40.6
41.6
40.0
39.8
40.5
40.4
95.5
89.8
96.1
94.1
94.8
89.2
96.1
93.1
94.0
88.8
94.7
92.2
41.67
38.22
39. 61
37.14
33.16
42. 40
37. 65
39. 94
36. 69
33.05
42. 44
36. 65
39. 85
35. 84
32. 70
40.1
38.4
40.8
39.5
38.7
40.9
38.3
41.7
39.4
38.4
41.1 103.8 103.7 103. 4
37.7 99.5 98.2 97.4
41.9 96.7 95.7 95.1
38.6 93.0 92.2 91. 8
38.1 85.5 85.5 85.2
43.54
46. 83
53.77
39. 68
37. 94
42.69
46.01
52.92
39. 52
37. 63
40. 72
43. 72
53.25
39.47
37. 86
42.2
41.2
40.2
43.8
40.3
42.3
41.1
40.6
43.7
40.9
41.4 103.3 100.8 98.3
41.3 113.9 112.2 106.1
40.9 130.9 130.2 130.0
44.0 92.0 91.8 91.2
41.4 94.3 92.2 91.4
53.50
57.46
54.01
53.24
132.0
137.3
144.1
127.0
131.9
136.4
143.2
125.0
132.3
135.7
142.6
123.8
341
TRENDS OF EA R N IN G S A N D HOURS
Continued
E a r n in g s a n d h o u rs in m a n u fa c tu r in g a n d n o n m a n u fa c tu r in g in d u s tr ie s
MANUFACTURING—Continued
Average weekly
earnings 1
Average weekly
hours 1
Average hourly
earnings 1
In d u stry group and industry
Oct. Sept. Nov.
1946 1946 1946
Nov.
1946
Oct. Sept. Nov.
1946 1946 1946
Nondurable goods—C ontinued
A pparel and other finished textile p r o d u c ts .., $36. 55
M en’s clothing, no t elsewhere classified... 41. 39
Shirts, collars, and n ig h tw ear----------------- 31.83
U nderw ear and neckwear, m en’s------------ 34. 59
W ork sh irts___________________________ 25. 97
W om en’s clothing, no t elsewhere classified. 43. 21
Corsets and allied garm ents 2------------------ 35. 36
M illinery_____________________________ 36.09
30.88
H anderchiefs------------------------------------- ---------C urtains, draperies, and bedspreads-------- 29.88
H ousefurnishings other th a n curtains, etc. 36.69
Textile bags_________________ __________ 33.96
Oct. Sept.
1946 1946
¡>36. 68 $37. 25
38.89 39.14
30. 32 29. 62
33.46 33.13
24.28 23. 55
46.25 47.82
35.02 33.72
43.15 45. 40
29. 44 28. 36
29. 73 28.31
33.06 36.36
33.68 33.03
36.6
37.8
37.6
38.9
36.4
34.8
38.5
28.8
36.9
35.9
40.0
40.2
36.8
37.7
37.5
37.7
35.1
35.5
38.7
32.3
36.0
36.5
36.4
40.0
Cents Cents Cents
36.9 99.9 99.7 101.0
37.7 108.6 102.4 102.7
37.0 84.5 80.6 79.9
37.9 89.2 88.5 87.5
34. 5 71.6 69.4 68.2
35.8 120.9 126.6 130.0
38.2 91.9 90.7 88.5
33.2 104. 5 110.9 112.2
35.0 83.9 81.9 81.2
35.8 82.3 81.6 79.9
38.9 91.3 90.3 93.6
39.7 84.4 84.1 83.1
L eather and leather products----------------L eather___________________________
Boot and shoe cu t stock and findings.
Boots and shoes-------------------------—
L eather gloves and m itte n s-------------• T runks and suitcases----------------------
37.19
45. 98
35. 80
35.85
32. 73
40. 56
37. 07
44. 78
36. 24
35. 65
33.71
40. 85
37. 49
44.60
36. 48
36.18
33.68
39. 56
37.1
40.2
37.4
36.2
35.8
39.9
37.5
39.7
38.7
36.8
37.0
40.0
38.2 100.4 98.7 98.2
39.5 114.4 112.9 112.9
39.0 96.1 93.6 93.8
37.9 97.8 96.0 95.5
37.0 92.8 91.9 91.9
39.3 101.6 102.0 100.2
F ood_____________________________
Slaughtering and m eat p a ck in g ..
B u tte r________________________
Condensed and evaporated m ilkice cream -------------------------------F lo u r_________________________
Cereal preparations------- ---------B aking _______________________
Sugar refining, cane-----------------Sugar b e et----------- — -------------Confectionery_________________
Beverages, nonalcoholic-----------M alt liquors---------------------------C anning and preserving------------
44.83
51.15
39.91
43.16
46.86
51.18
47.12
46.01
39.92
49. 78
36. 79
39. 75
56. 84
35. 31
43.85
43.06
41.40
43. 41
47. 54
52.01
48.28
45. 45
38. 38
40.86
35. 04
39.30
56. 57
40.82
43.59
41.11
41.38
43.95
46.48
52.21
47.15
44.60
38. 35
48.87
36.14
39.87
57. 45
41. 50
42.8
44.9
44.3
46.3
46.0
47.8
40.7
44.0
39.4
48.6
39.8
42.4
42. 5
37.2
42.4
37.5
46.2
46.7
47.6
48.5
42.0
43.6
37.7
40.5
39.5
42.4
42.5
41.7
43.0
35.9
46.7
47.6
46.8
49.1
42.4
44.5
37.9
42.8
40.0
43.9
42.7
43.5
104.7
113.7
89.9
93.3
97.6
107.3
115.7
104.5
101.2
102.1
90.5
92.5
133.0
95.3
103.5
114.7
89.4
92.9
96.8
107.4
114.9
104.2
101.7
100.9
87.4
91.8
133. 0
98.3
101. 3
114.4
88.2
92.4
95.6
106.4
111.2
100.3
101.2
114.1
87.3
90.4
134.4
96.0
Tobacco m anufactures____________________
C igarettes____________________________
C igars_______________________________
Tobacco (chewing and smoking) and snuff
36. 66
41.74
33.27
33.58
36.47
41.08
33.48
32.66
35. 25
39. 25
32. 69
31.87
39.7
41.1
38.6
39.2
40.3
41.6
39.6
38.7
39.5 92.4
40.3 101.5
39.0 85.7
38.0 85.7
90.5
98.8
84.4
84.4
89.3
97.4
83.4
83.9
P aper and allied products.
P aper and p u lp _____
Envelopes__________
P aper bags--------------P aper boxes--------------
46.06
49.48
44.25
38.32
42.55
45. 58
49.05
42.15
38.52
42.02
44.57
47. 55
41.60
37.89
41.53
43.3
44.5
42.6
40.1
42.3
43.4
44.5
42.6
40.8
42.5
43.0
43.8
42.6
40.9
42.2
106.4 105.0 103.7
111.1 110.2 108.5
102.8 98.1 97.6
95.7 94.6 93.1
100.7 99.0 98. 5
P rinting, publishing, and allied industries.
N ewspapers and periodicals----------. . .
P rinting , book and jo b -------------------Lithographing--------------------------------
55.04
60.81
52.61
_ 55.76
54.30
60.28
51.50
55.08
53.96
60.04
51.50
53.99
41.0
39.2
42.0
42.9
41.0
39. £
41.7
43.4
41.0
39.4
42. C
42.9
134.2
152.5
125.9
129.9
132.5
151.1
123.8
127.0
131.5
149.5
123.2
125.8
Chemicals and allied p ro d u cts-----------Paints, varnishes, and colors--------D rugs, medicines, and insecticides..
Soap____________________________
R ayon and allied products---- -----Chemicals, n o t elsewhere classified.
Explosives and safety fuses---------A m m unition, sm all-arm s------------Cottonseed oil___________________
Fertilizers----------------------------------
45.88 45.49 45.41
_ 48.16 47.07 46. 52
. 41.06 39.91 39.05
. 48.20 47.85 47.30
43.31 42.98 43. 55
52.96 52.87 52.61
49.49 50. 26 50. 98
. 46.98 45.80 44.05
. 35.14 33.30 31.93
. 33.02 33.87 35.62
41.2
41.8
40.2
40.9
39J
41. ]
40.0
40.9
52J
40.1
41.3
41.6
40.2
41. (
39.2
41.'
40.7
40. '
51.3
41. C
40.9
41.4
39.5
40.5
39.3
41. 1
41. £
39.1
49.9
42.3
111.3
115.4
101.9
117.8
110.7
128.8
124.3
114.8
67.2
82.3
110.3
113.4
99.0
116. f
109.7
127.8
123.4
113.3
64.9
82.7
111.0
112.4
98.7
116.7
110.7
128.1
123.3
112.7
64.0
84.2
Products of petroleum and coal.
Petroleum refining-----------Coke and b y products-------Roofing m aterials...............
54.47
. 57.11
46. 2Í
_ 51.0'
54.36
57.32
46.06
49.46
55. 2E
58.3E
47.0'
48.82
40.3 40.4
40. C 40.
39. £ 39.
44. £ 44.
40.4
40.2
39.'
43. (
135. C
142.
117.4
114.
134.7
142.8
117.4
112.
136.8
145.3
119.1
112.0
R ubber pro d u cts_________________
R ubber tires and inner tu b e s. _.
R ubber boots and shoes----------R ubber goods, oth er----------------
52.9£
58.8"
43.8(
. 46.8(
51. 72
57.36
38.91
47.06
53.66
59.86
45.2"
47.0
40.1
39.
40.
41.51
40.
39. €
41.,
41.
132.2
150. £
108.£
113.
131.;
149.2
104.£
113.
132.3
150.7
109.1
112.5
See footnotes at end of table.
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Federal Reserve Bank of St. Louis
39.
38.
37., •
41.
342
MONTHLY LABOR REVIEW— FEBRUARY 194 7
E a r n in g s a n d h o u rs i n m a n u fa c tu r in g a n d n o n m a n u fa c tu r in g in d u s tr ie s — Continued
MANUFACTURING—Continued
Average weekly
earnings 1
Average weekly
hours 1
A verage hourly
earnings *
In d u stry group and in d u stry
N ov.
1946
Oct. Sept. N ov.
1946 1946 1946
Oct. Sept. N ov,
1946 1946 1946
Oct. Sept.
1946 1946
Nondurable goods—C ontinúen
M iscellaneous industries___________________ $44.97 $45.03 $44. 25
In stru m en ts (professional and scientific),
and fire control equ ip m en t____________ 51.08 51.23 50.43
Pianos, organs, and p a r ts ... ....................... 51.09 48.31 47.73
41.0
41.4
Cents Cents Cents
41.1 109.7 108.8 107.6
40.1
43.0
40.4
42.0
40.3 124.9 124.6 124.3
42.2 119.8 115.1 113.4
35.7
41.9
40.2
39.2
41.9
39.4
45.2
41.7
39.2
42.9
41.0
40.3
42.3
40.2
46.1
41.2
37.7
41.8
40.6
39.8
41.9
40.3
46.1
39.9
Cents
158.2
147.3
122.0
120.8
121.7
123.5
105.2
133.6
Cents
159.3
145.9
121.0
119.3
122.0
122.4
104.7
130.8
NONM ANUFACTURING
M ining:
A nthracite_____ ______________________
B itum inous coal_______________________
M etal____ ____________________________
Iro n ____ ____ ____ _________________
C opper____ ____ __________ _ _ ____
. Lead and zinc______ _
- ________
Q uarrying and nonm etallic_____________
C rude petroleum production____________
Public utilities:
T elephone______ ______ _______________
Telegraph 3____________________________
Electric light and pow er_________ ______
Street railw ays and busses______________
Trade:
W holesale_____ ____ ___________________
R etail-----------------------------------------------F ood___________________________ __
General m erchandise....................... .......
A p p arel_______ ___________________
F u rn itu re a n d housefurnishings_____
A utom otive_____ _____ ___
______
L um ber and building m aterials______
Hotels (year-round)4. . _______ . . ______
Power laundries_________________ ________
Cleaning and dyeing_______________________
Brokerage___ ______ ______________________
Insurance......... .......................... .........................
$56. 57 $61. 82 $60. 67
61.49 62.54 61.65
49.01 49.63 49.53
47. 35 48.06 48.45
51.01 51.66 51.09
48. 48 49.23 49.47
47. 52 48.28 47. 97
55. 78 53. 72 53.19
Cents
161.1
148.1
122.0
121.9
122.1
122.7
104.2
133.4
44.40
46. 25
53.61
55.06
44.30
47.37
53.18
55.62
44.10
40.98
52. 78
54. 50
39.3
43.5
41.6
47.3
39.1
44.4
41.9
47.6
38.5
44.8
41.0
47.5
113.1
106.3
130. 2
113.8
113.7 114.8
106.7 91.4
128.4 129.1
113.2 111.0
49. 80
33.04
40.42
27.63
34. 74
47.26
49. 06
43.32
27. 77
31.05
35. 32
62.00
51.24
49.44
33.19
40.16
27.65
34.98
45.84
48.82
43. 70
27.17
30. 52
35.81
62. 24
51.20
49. 54
33. 76
40.08
28. 57
35.26
46. 59
49.15
43.60
26.98
30.45
35.81
63. 50
50.63
41.6
39.6
40.3
35.1
36.3
43.6
46.1
42.3
44.5
42.6
41.9
Q)
(8)
41.9
40.0
41.0
35.5
36.5
43.3
46.1
43.1
44.1
43.0
42.2
(»)
«
41.8
40.8
41.0
36.7
37.2
43.9
46. 5
43.1
43.5
42.9
42.9
(8)
«
118.6
91.8
97.0
76.4
96.7
110.1
108.6
104.1
62.9
72.9
85.4
(8)
(5)
117.2
90.8
94.4
76.0
96.0
107.4
107.9
103.3
61.9
70.8
85.4
(8)
(5)
117.9
90.8
94.0
75.6
95.4
108.0
107. 7
102.4
62.0
70.8
83.9
(8)
(8)
1 These figures are based on reports from cooperating establishm ents covering both full- and p art-tim
employees who w orked or received pay during any p art of 1 pay period ending nearest the 15th of N ovem
ber 1946. T h e figures shown below relate to firms reporting m an-hour d ata in all cases except brokerage
a nd insurance, weekly earnings are based on a slightly larger sample (see footnote 1 in tables 1 and 4).
Manufacturing.—32,100 establishm ents, 7,119,000 production workers.
M ining.—2,600 establishm ents, 302,000 production workers.
Public utilities.—6,400 establishm ents, 649,000 employees.
Wholesale trade.—8,900 establishm ents, 245,000 employees.
Retail trade.—27,700 establishm ents, 769,000 employees.
Hotels (year-round).—900 establishm ents, 83,000 employees.
Power laundries and cleaning and dyeing.—1.300 establishm ents, 61,000 production workers.
Brokerage and insurance.—3,800 establishm ents, 164,000 employees.
For m anufacturing, mining, power laundries, and cleaning and dyeing industries, the d ata relate to
production workers only. For the remaining industries the d ata relate to all employees except high
paid executives a n d officials. D ata for th e current and im m ediately preceding m onths are subject
to revision.
2 Revisions have been m ade as follows in the d ata for earlier m onths:
Hardware.—Ju n e and Ju ly 1946 to $42.79 and $43.75; June to 40.8 hours.
Radios and phonographs.—A ugust 1946 to $41.54 and 39.8 hours.
Corsets and allied garments.—Juno and Ju ly 1946 to $33.67 and $32.68; 87.4 and 86.7 cents. N ew series
beginning A ugust 1946; not comparable w ith previously published data. N ew A ugust data are
$32.99 and 85.8 cents. Comparable Ju ly d ata are $32.21 and 85.2 cents.
3 Excludes messengers, and approxim ately 6,000 employees of general and divisional headquarters, and
of cable companies. October d ata are revised to reflect wage-rate increases.
4 Cash paym ents only; additional value of board, room, and tips, not included.
8 N ot available.
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TRENDS OF EARNINGS AND HOURS
343
T r e n d o f F a c to ry E a rn in g s , 1 9 3 9 to N o v e m b e r 1 9 4 6
THE published average earnings of factory workers are summarized
in the accompanying table for selected months from January 1939 to
November 1946.1 The earnings shown in this table are on a gross
basis (i. e., before deductions for social security, income taxes, bond
purchases, etc.).
Weekly earnings in all manufacturing averaged $45.74 in November
^946 —97.2 percent above the average in January 1939, 71.7 percent
above January 1941, and 17.6 percent above October 1942. Weekly
earnings for November 1946 increased 12.2 percent above November
1945, however, the average weekly earnings are still below the war
time peak of $47.50 in January 1945, as the result of shorter working
hours and shifts of workers from the high paid war industries to the
lower paid consumer goods industries.
Gross hourly earnings in all manufacturing averaged 113.9 cents in
November 1946—80.2 percent above the average in January 1939,
66.8 percent above January 1941, and 27.5 percent above October
1942.
Straight-time average hourly earnings, as shown in columns 7 to 9,
are weighted by man-hours of employment in the major divisions of
manufacturing for January 1941. These earnings are estimated to
exclude premium pay at time and a half for work in excess of 40 hours.
However, the effect of extra pay for work on supplementary shifts and
on holidays is included. For all manufacturing, the straight-time
average in November 1946 was 110.6 cents per hour; this was 72.5
percent above January 1939, 66.6 percent above January 1941, and
37.1 percent above October 1942.
i C om pare Trends in Factory Wages, 1939-43, in M o n th ly Labor Review, N ovem ber 1943 (p. 869), espe
cially table 4 (p. 879). F o r detailed d ata regarding weekly earnings, see preceding table.
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344
MONTHLY LABOR REVIEW— FEBRUARY 194 7
E a r n in g s o f f a c to r y w o rk e rs in se lected m o n th s, 1 9 3 9 to N o v e m b e r 1 9 4 6
Average weekly
earnings
M o n th and year
E stim ated straight-tim e
average hourly earn
ings 1 weighted by
Jan u ary 1941 em ploy
m ent
Average hourly
earnings
All
m an u
factur
ing
D u
rable
goods
N on
du
rable
goods
All
m an u
factur
ing
D u
rable
goods
N on
du
rable
goods
All
m anu
factur
ing
D u
rable
goods
N on
du
rable
goods
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
$25. 33
27.39
30.48
$21. 57
22.01
22.75
$0. 632
.655
.683
$0.696
.717
.749
$0. 583
.598
.610
$0. 641
.652
.664
$0. 702
.708
.722
$0. 575
.589
.601
1939: Jan u a ry ___ ________ $23.19
1940: Jan u a ry _____________ 24. 56
1941: Jan u a ry ______ ______
26.64
1942: J a n u a ry .. _ _____ _
J u ly ________________
O ctober. _ ________
33.40
36. 43
38.89
38.98
42.51
45.31
26.97
28.94
30. 66
.801
.856
.893
.890
.949
.990
.688
.725
.751
.751
.783
.807
.826
. 863
.888
.668
.696
.718
1943: Jan u a ry ________ ____
A p ril... ____________
Ju ly ________________
O ctober___ ______
D ecem ber_______ . . .
40.62
42.48
42.76
44. 86
44.58
46.68
48. 67
48. 76
51.26
50. 50
32.10
33. 58
34.01
35.18
35.61
.919
.944
.963
.988
.995
1.017
1.040
1.060
1.086
1.093
.768
.790
.806
.824
.832
.819
.833
.850
.863
.873
.905
.916
.939
.950
.962
.726
.742
.753
.768
.775
1944: Jan u a ry _____________
A pril__
_________
Ju ly ________________
October __
D ecem ber___________
45.29
45. 55
45.43
46. 94
47.44
51.21
51.67
51.07
53.18
53.68
36.03
36.16
37.05
37. 97
38.39
1.002
1.013
1.018
1.031
1.040
1.099
1.110
1.116
1.129
1.140
.838
.850
.862
.878
.883
.877
. 8S9
.901
.908
.912
.965
.976
.993
.991
.997
.780
.794
.802
.817
.820
1945: Jan u a ry ___. . . . ____
A pril______ _______
Ju ly ________________
O ctober_____ . . . . . .
D ecem ber_______ . . .
47. 50
47.12
45.45
40.97
41.21
53. 54
52. 90
50.66
44.23
44.08
38.66
38.80
38.59
37. 76
38. 52
1.046
1.044
1.033
.985
.994
1.144
1.138
1.127
1.063
1.066
.891
.899
.902
.909
.927
.920
.925
.933
. 9i2
.957
1.005
1.007
1.017
1.014
1.028
.827
.836
.842
.863
.880
1946: Jan u a ry _____________
A pril_______________
Ju ly ________________
S ep tem b er.. _______
October 2____________
N o v e m b er2. .
. _
41.15
42. 88
43.38
45. 39
45. 68
45.74
43. 67
45. 71
46.24
48. 39
48.81
48.53
38. 75
40.13
40.46
42.34
42.44
42. 86
1.004
1.058
1.093
1.126
1.130
1.139
1.070
1.131
1. 177
1.201
1.202
1.210
.941
.988
1.009
1.050
1.055
1.065
.970
1.027
1.067
1.094
1.095
1.106
1.037
1.102
1.155
1.172
1.169
1.181
.895
.946
.970
1.008
1.013
1.023
1 T he m ethod of estim ating straight-tim e average hourly earnings makes no allowance for special rates of
pay for w ork done on m ajor holidays. Estim ates for the m onths of January, July, September, and No em
ber, therefore, m ay no t be precisely comparable w ith those for the other m onths in which im portant holi
days are seldom included in the pay periods for which m anufacturing establishm ents report to the B ureau.
This characteristic of the d ata does not appear to invalidate the com parability of the figures for Jan u ary
1941 w ith those for the preceding and following m onths.
Prelim inary.
2
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Labor Chronology
C h ro n o lo g y o f L a b o r E v e n ts, O c to b e r-D e c e m b e r 1 9 4 6
i n ,r.
ly^o
OCTOBER
Oct. 1. The second maritime strike within a month started when the contracts
expired between ship operators and the National Marine En
gineers Beneficial Association (CIO), the International Long
shoremen’s and Warehousemen’s Union (CIO), and the Masters,
Mates and Pilots of America (AFL) (see Chron. items for Aug. 24
and Sept. 30, 1946, MLR, Nov. 1946). (Source: CIO News,
Oct. 21, 1946, p. 8.)
On October 22, the MEBA and the Atlantic and Gulf Coast ship
owners signed an agreement which granted preferential hiring,
maintenance of membership, a requirement that all engineers
must be union members, and a 15-percent general wage increase.
(Source: CIO News, Oct. 28, 1946, p. 10.)
On October 28, the MMP (AFL) announced the ratification of an
agreement with Atlantic and Gulf Coast operators, whereby
wages were increased 15 percent, provision was made for prefer
ential hiring, and the union was recognized as the sole representa
tive of licensed deck officers. Maintenance of membership was
applied to mates, but masters were excluded from the require
ment th at they be members of the union.
On November 19, the International Longshoremen’s and Ware
housemen’s Union (CIO) ratified an agreement with the M est
Coast operators, whereby w'ages were increased 11 percent for
longshoremen and 15 percent for engine room officers.
On November 20, the members of the MMP (AFL) picketed West
Coast ships to “protect the interests” of the deck officers until the
membership voted on the latest offer made by the Pacific Ameri
can Shipowners Association.
On November 23, the members of the MMP (AFL) voted to re
turn to work, thus removing the last barrier to settlement of the
54-day West Coast maritime strike. The agreement provided for
a 15-percent wage increase and a union-security clause stipulating
seniority rights, nondiscrimination, and consideration of union
members in the hiring of deck officers for offshore vessels.
(Source: Daily press; for discussion, see MLR, Nov. 1946, p. 777,
and Dec. 1946, p. 968.)
Oct. 7. The AFL opened its sixty-fifth convention. Action included a demand
for termination of the National Wage Stabilization Board; a re
quest for a special session of Congress to enact the WagnerEllender-Taft housing bill; and reaffirmation of support to the
5-day, 30-hour week. (Source: American Federationist, Nov.
1946, p. 3.)
345
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346
MONTHLY LABOR REVIEW— FEBRUARY 1947
1946
Oct. 8. The NWSB, in connection with the case of Parke, Davis and Co. and
United Gas, Coke and Chemical Workers of America, Local 176
(CIO), and United Automobile Workers, Local 114 (CIO), an
nounced the broadening of its policy in specific cases involving
correction of gross inequities between wage rates in plants in the
same or related industries. I t was decided to consider "the
general picture of related wage movements which had occurred
before June 30, 1946,” even though the increases used for com
parative purposes had not received approval in whole or in part
for price-relief purposes. Previously, the Board limited its com
parisons of gross inequities in specific cases to wage increases in
other segments of the industry or related industries which it had
already approved. The change in interpretation was made
necessary by three developments that took place after February
14 (see Chron. item for Feb. 14, 1946, MLR, May 1946). These
were (1) "Progressive decontrol” of industries, which auto
matically obviates approval of wage increases; (2) granting by
controlled industries of wage increases which were absorbed in
whole or in part by the employer; and (3) a recent amendment to
the Office of Economic Stabilization regulations, recognizing the
principle that, in Government cost cases, consideration should be
given to increases already in effect in other segments of the in
dustry (see Chron. item for Aug. 24, 1946, MLR, Nov. 1946)
(Source: NWSB-101.)
Oct. 14. The President stated: "There is only one remedy left—that is to lift
controls on meat.” A meat shortage had occurred after the
Price Decontrol Board (see Chron. item for July 25, 1946,
MLR, Nov. 1946) restored price controls on August 20, as a
result of a hearing which indicated a necessity for price ceilings,
following a 2-month period in which meat was free from control.
Decontrol of meat, the President added, would necessitate
acceleration of the program for lifting controls on other com
modities. (Source: White House release of Oct. 14, 1946.)
On October 15, the Administrator of the Office of Price Admin
istration announced the decontrol of prices of livestock, meat,
and food and feed products thereof. (Source: OPA-6884.)
On October 23, the OP A Administrator announced that the prices
of most foods would be decontrolled the following day. At the
same time price controls were lifted from all sales of food and
beverages by restaurants and other sellers. Sugar and sugar
solutions (including syrup and molasses), corn sugar and corn
syrup, rough and finished rice, and all oils, edible and inedible,
remained under control. (Source: OPA-6905 and 6905a.)
On October 29, the OP A Administrator announced that an
extensive list of consumer durable goods would be decontrolled
at midnight. Included were radios, lamps, small electrical appli
ances, kitchenware, and glassware. (Source: OPA-6917.)
On October 30, the OPA Administrator added shoes, hides,
skins, and leather to the list of commodities freed from price
control. (Source: OPA release of Oct. 30, 1946.)
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LABOR CHRONOLOGY
347
Oct. 14 (con.) On October 31, approximately 10 percent, by dollar volume, of
total clothing was released from price control. Most widely
used types of apparel affected were men’s and women’s hats,
neckties, bathing suits and trunks, some fabric gloves, handbags,
and men’s and boys’ scarfs and mufflers. (Source-. OPA—6922.)
The OPA Administrator announced th at 1,642 local price-control
boards would be closed on November 4, 1946. (Source: OPA6924.)
On November 9, the President announced the decontrol of
prices with the exception of the controls on rents, sugar, and
rice. The decontrol was to become effective on the following
day (see MLR, Dec. 1946, p. 977, for discussion). (Source:
White House release of Nov. 9, 1946.)
On November 14, the Price Decontrol Board (see Chron. item
for July 25, 1946, MLR, Nov. 1946) advised the President of
plans to maintain only a skeleton force, in view of the President’s
action of November 9 in decontrolling practically all commodities.
(Source: White House release of Nov. 14, 1946.)
Oct. 15. The brakemen and ticket collectors, represented by the Railroad Workers
Industrial Union (division of District 50, United Mine Workers
of America), reached an agreement with the Long Island Rail
road whereby a compromise was reached in settlement of a
dispute which threatened to end in a strike (see Chron. item
for Aug. 22, 1946, MLR, Nov. 1946). The agreement provided
for an increase of 18)4 cents an hour in pay, which had been
established as a pattern for railroad wage-rate increases (see
Chron. item for May 25,1946, MLR, Aug. 1946), and for a number
of changes in working rules governing purely local conditions.
(Source: Labor, Oct. 19, 1946, p. 3.)
Oct. 15. The Preparatory Committee of the International Conference on Trade
and Employment held its first meeting in London. In general,
a “Suggested Charter for an International Trade Organization
of the United Nations,” which the United States Government
published in September 1946, formed the basis for discussion.
The draft covered employment, commercial policy, cartels,
commodity arrangements, and organizational matters, a chapter
on economic development was added at the London meeting.
About 85 percent of the provisions which it was anticipated might
be included in a charter were agreed upon. However, this does
not constitute a final commitment. The remaining provisions
were not agreed upon owing to time limitations, and were referred
to an interim drafting committee (to meet in New York in
January 1947) and to the second meeting of the Preparatory Com
mittee scheduled to convene in Geneva in April 1947. When
established, the International Trade Organization will be an
intergovernmental specialized agency having a relation to the
Economic and Social Council of the United Nations similar to
th at of the International Labor Organization (see Chron. item
for Nov. 14, this issue). (Source: BLS records.)
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Federal Reserve Bank of St. Louis
348
MONTHLY LABOR REVIEW— FEBRUARY 194 7
1946
Oct. 21. The president of the UMWA (AFL) asked for a conference with the
Secretary of the Interior, to be held on November 1, 1946. He
stated th at the Government had not lived up to its part of the
contract with the UMWA (see Chron. item for May 29, 1946,
MLR, Aug. 1946), in th at (1) pro rata vacation provisions were
not applied retroactively, and (2) the 5-cent royalty payment
was improperly based on salable coal and not upon gross mined
tonnage. The request was made that negotiations should be
reopened on wage and other issues, in accordance with the
provision for 10 days’ notice of a new negotiating conference.
(Source: American Federation of Labor Weekly News Letter of
Oct. 22, 1946, and NAM Law Dept. Weekly Digest of Labor
Rulings and Decisions of Oct. 26, 1946.) He also held that the
old contract with the operators, which expired March 31, 1946
(see Chron. item for Mar. 31, 1946, MLR, May 1946) remained
effective with respect to termination of the agreement with
the Government; i. e., th at after 15 days of negotiation, either
party might terminate it by giving 5 days’ notice. (Source:
United Mine Workers Journal of Nov. 1, 1946, and daily press.)
On November 15, President Truman issued a statement urging
the president of the UMWA to reconsider their rejection of the
proposal of November 14 by the Secretary of the Interior for
negotiation during a 60-day truce. The UMWA again rejected
the proposal and gave notice of termination of contract effective
5 days later. (White House release of Nov. 15, 1946, and U. S.
Dept, of the Interior release 9462.)
On November 16, the Coal Alines Administrator issued an order.
It stated th at the Government had lived up to the contract with
the UMWA and would continue to do so. The formal opinion of
the Attorney General was quoted in which he ruled that said
contract cannot be terminated or modified except by mutual
consent under section 5 of the War Labor Disputes Act. The
order also stated: “The Coal Mines Administrator has not con
sented to termination or modification nor has a petition been
presented under section 5 of the War Labor Disputes Act.”
(Source: Federal Register, Vol. 11, p. 13,630.)
On November 18, the Judge of the District Court of the United
States for the District of Columbia issued an order restraining
the defendants (the UA1WA and its president) from issuing or
•publicizing any notice “that or to the effect that the Krug-Lewis
agreement has been, is, or will at some future date be termi
nated * *
The restraining order was to expire on Novem
ber 27, 1946, unless extended, and hearings were to be held on
that date (for discussion, see p. 271, this issue).
On November 21, the miners remained away from their wmrk.
The Judge ordered the UMWA, an unincorporated association,
and John L. Lewis, individually and as president of the UMWA,
to appear before that court on November 25, 1946, to show cause
why they should not be punished for contempt of court.
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Federal Reserve Bank of St. Louis
LABOR CHRONOLOGY
Oct. 21 (con.)
349
On November 25, the Judge ordered the president of the UMWA
and the UMWA to stand trial for contempt of court on Novem
ber 27.
On November 27, hearings began. The Judge extended for
10 days the order restraining the president of the UMWA.
On December 3, the Judge found the president of the UMWA
and the UMWA guilty of civil and criminal contempt of court.
On December 4, the Judge levied a fine of $3,500,000 on the
UMWA ($250,000 a day for the 14 days of the work stoppage)
and of $10,000 on the UMWA president, and also signed a
temporary injunction whereby the same restraints contained
in the temporary restraining order were continued indefinitely.
On December 6, the Federal Government asked the Supreme
Court for immediate review of the contempt case.
On December 7, the president of the UMWA directed all miners
to resume work until midnight of March 31, 1947, under the
wages, working hours, and conditions of employment in existence
on and before November 20, 1946. He stated that the injunction
had reached the Supreme Court and th at the fitting respect due
the dignity of this high tribunal imperatively required th at
during its period of deliberation, the Court should be free from
public pressure. He added that the country needed coal during
this period. (Source: United Mine Workers Journal of Dec.
15, 1946, and daily press. For summary, see MLR, Dec. 1946,
p. 967.)
Oct. 28. The United States Bureau of Labor Statistics and the Division of
Statistical Standards of the Bureau of the Budget convened a
conference on productivity in Washington, D. C. The conference
was devoted to discussion of productivity concepts and measure
ments, the current state of knowledge regarding productivity,
the adequacy of present research programs, the needs for addi
tional productivity measures, the presentation of productivity
measurements, and related questions. Participants emphasized
th at many different factors affect output per man-hour and th at
many different types of productivity measures are needed for
different purposes. The participants agreed that the work of
the conference should be continued in some form and referred
details to the executive committee which planned the conference.
(Source: BBS records.)
Oct. 28. The 58-day New York City trucking strike ended when the International
Brotherhood of Teamsters (AFL) and several employers who
held out against the pattern settlement on September 17, 1946
(see Chron. item for Sept. 17, 1946, MLR, Nov. 1946), signed
agreements whereby drivers were granted a wage increase of 31
cents an hour and a 40-hour week. (Source: AFL Weekly News
Letter of Oct. 29, 1946, and daily press.)
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19^6
Oct. 28 (con.) On November 3, the 51-day strike of United Parcel Service truck
drivers in New York City, which affected deliveries of 375 depart
ment stores, was ended. The plan for settlement presented by
the New York City Division of Labor Relations (see Chron.
item for Sept. 22, 1946, MLR, Nov. 1946) was accepted, whereby
the workweek was reduced to 40 hours from 45 and weekly pay
was increased by $5.50. Local 804 of the International Brother
hood of Teamsters (AFL), having 2,500 members, was the largest
of the 4 unions involved in the dispute. (Source: AFL Weekly
News Service of Nov. 5, 1946, and daily press.)
Oct. 30. The Women’s Bureau of the U. S. Department of Labor called a con
ference to discuss current matters of importance regarding
women’s employment and conditions of work. In addressing
women union leaders at the conference, the Secretary of Labor
stated: “ Now is the time to push for elimination of discrimination
against women workers and to gain headway in improving their
wages and wmrking conditions.” (Source: U. S. Dept, of Labor
releases WB47-92 and WB47-95.)
Oct. 31. The Secretary of Labor announced the selection of arbitrators in the
dispute between the Duquesne Light and Power Co. of Pitts
burgh and the Independent Association of Employees. (Source:
Daily press.)
On September 10, the Pennsylvania Common Pleas Court in
Pittsburgh, Pa., had issued an injunction against the Independent
Association of Employees representing 3,600 employees of the
Duquesne Light Co., to call off their scheduled strike. The
officers of the parent Standard Gas and Electric Co. were ordered
to enter bona fide negotiations with the union and to work out
a sound and permanent labor policy which will prevent the
recurrence of disputes between them and their employees.
(Source: Conference Board Management Record of Oct. 1946,
p. 350.)
On September 24, when the union went on strike in spite of the
restraining order, the president of the union was sentenced to a
year’s imprisonment.
On September 26, the Common Pleas Court withdrew the tempo
rary injunction at the city’s request and the union president was
set free. (Source: Newsweek of Oct. 7, 1946, pp. 31 and 32; for
discussion, see MLR, Oct. 1946, p. 593.)
On October 15, the Independent Association of Employees won
an election (supervised by the National Labor Relations Board)
which established it as the bargaining agency for the employees
of the Duquesne Light Co.
On October 20, the 27-day strike of the Independent Association
of Employees against the Duquesne Light Co. ended with a
decision to arbitrate the dispute. (Source: Daily press.)
NOVEM BER
Nov. 5. The closed shop was outlawed by referendum vote in the States of
Arizona, Nebraska, and South Dakota. (Sourer: Labor Rela
tions Reporter 19 LRRM, pp. 3003-3004.)
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LABOR CHRONOLOGY
351
1946
Nov. 6. The NWSB announced the approval of hourly wage increases of from
10 to 16% cents for 7,000 New York City employees of the Western
Union Telegraph Co., as agreed upon by the company and the
American Communications Association (CIO). The approval
followed joint submission by the two parties concerned of an
application based upon recommendations of a fact-finding board.
The increases were 10 cents an hour for messengers and 16%
cents for nonmessengers, of which 12% cents is to be applied
across the board and 4 cents will be used to correct inequities.
(Source: NWSB-108.)
On October 7, the NWSB approved wage increases affecting
53,300 employees, which were agreed upon by the Western Union
Telegraph Co. and the National Coordinating Board (AFL). By
the terms of the agreement an additional across-the-board increase
of 13 cents an hour was granted for all nonmessenger employees,
and a 3)4-cents-an-hour fund was established for these employees
to enable the parties to correct inequities within the rate struc
ture; for some 12,000 messengers employed by the firm, an
increase of 10 cents hourly was provided. The agreement varied
from the recommendations of the fact-finding board for the
industry only in respect to the distribution of the increase to non
messengers. (Source: NWSB-100.)
On July 11, the Secretary of Labor issued two orders whereby
a fact-finding board was established to investigate wage disputes
between the Western Union Telegraph Co. and its employees
represented by the National Coordinating Board (AFL) and the
American Communications Association (CIO), respectively.
(Source: U. S. Dept, of Labor release of July 11, 1946.)
On August 30, the fact-finding board recommended a general
wage increase of 12% cents an hour for all nonmessenger em
ployees (plus a sum averaging a 4-cents-an-hour allowance to
correct inequities) and 10 cents an hour for messengers. (Source:
U. S. Dept, of Labor release of Aug. 30, 1946.)
Nov. 9. The President, by Executive Order No. 9801, provided for the termina
tion of all controls for the stabilization of wages and salaries
under the Stabilization Act of 1942, as amended (see Chron.
item for July 25, 1946, MLR, Nov. 1946), including any Execu
tive order or regulation issued thereunder. Decontrol did not
affect “the statutory provision governing changes in terms and
conditions of employment in plants operated by the Government
pursuant to the War Labor Disputes Act.” (Source: White
House releases of Nov. 9, 1946; for summary see MLR, Dec.
1946, p. 977.) The President stated that the removal of price
controls left no basis or necessity for the continuation of wage
controls, which operated, in most industries, only as an adjunct
to price controls (see Chron. item for Oct. 14, this issue). (Source:
White House release of Nov. 9, 1946.)
On November 10, the chairman of the NWSB announced plans
for speedy liquidation of the Board and its field offices, owing
to the President’s action in discontinuing all wage and salary
controls. (Source: NWSB-110.)
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1946
N ov. 9
(con.) On November 20, the NWSB announced that enforcement of
wage violation cases by tripartite regional wage stabilization
boards would end on January 15, 1947. The responsibility for
completion of the program with respect to offenses committed
prior to November 9, 1946, the date of the Executive order
removing wage controls, -was to be lodged in an agency other
than the NWSB, after the dead-line date. (Source: NWSB-109.)
Nov. 14. The Veterans Administration announced the denial of readjustment
allowances under the Servicemen’s Readjustment Act (GI bill
of rights) (see Chron. item for June 22, 1944, MLR, Sept. 1944)
to certain veterans who were out of work during the General
Motors strike (see Chron. item for Mar. 13, 1946, MLR, May
1946). The law provides that a veteran is disqualified for a
readjustment allowance on account of unemployment which
results from a stoppage of work because of a labor dispute, if he
is directly interested or participating in the dispute or belongs
to a grade or class of workers so involved. The VA decision
covered 3 employees of a GM plant in Michigan, who “contended
th at the primary cause of their unemployment was material
shortages and other circumstances for which they had no respon
sibility.” (Source: Veterans Administration release of Nov. 14,
1946.)
Nov. 14. The International Labor Organization’s Industrial Committee on Tex
tiles met at Brussels, Belgium.
On November 25, the ILO’s Internal Committee on Building,
Civil Engineering and Public Works met at Brussels, Belgium,
(Source: ILO press releases.)
On December 14, the United Nations General Assembly voted
approval of an agreement bringing the ILO into official relation
ship with the UN. (Source: United Nations Weekly Bulletin
of Dec. 14, 1946, p. 49.)
Nov. 16. The 26-day strike of 1,400 members of the Air Line Pilots Association
against the Transcontinental and Western Air, Inc. (also known
as Trans World Airline) ended when the parties agreed to arbitrate
their differences. (Source: Labor, Nov. 23, 1946, p. 1.)
On May 7, the President, by Executive Order No. 9719, had
created an emergency board to investigate disputes between
TWA and 12 other carriers, and certain of their employees
represented by the Air Line Pilots Association, International
(AFL) (Source: Federal Register, Vol. 11, p. 5053), thereby
averting a strike of air line pilots. (Source: Daily press.)
On July 8, the emergency board recommended a schedule of
wage increases. (Source: White House release, Report to the
President by the Emergency Board, July 8, 1946.)
On October 21, the strike of 1,400 members of the Air Line Pilots
Association, International (AFL), against TWA, was called on
the issue of higher wages for pilots and co-pilots (for discussion,
see MLR, Nov. 1946, p. 779). (Source: Labor, Oct. 26, 1946, p. 3,
AFL Weekly News Service, Oct. 22, 1946, p. 1; and daily press.)
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Federal Reserve Bank of St. Louis
LABOR CH RO NO LO G Y
353
1946
Nov. 18. The eighth annual convention of the CIO opened. Resolutions were
adopted calling for a continued battle against the use of injunc
tions in labor disputes, and for repeal of the Smith-Connally
Act, and expressing opposition to efforts of the Communist Party
or other political parties and their adherents to interfere in the
affairs of the CIO. (CIO News, Nov. 25, 1946.)
Nov. 24. The Secretary of Labor announced the formation of a Joint TradeUnion Advisory Committee on International Affairs. Member
ship consists of 10 union officials—4 representatives each of the
AFL and the CIO, and 1 each from the Railroad Brotherhoods
and the Railway Labor Executives’ Association. (Source: U. S.
Dept, of Labor release S47-551.)
On December 12, the Department of Labor convened an organiza
tion meeting of its Joint Trade-Union Advisory Committee on
International Affairs. A standing committee of 4 members was
named to assist the Department through monthly meetings
and to be available for day-to-day advice as problems arise.
Meetings of the Joint Committee are to be held 4 times a year.
(Source: U. S. Dept, of Labor release S47-646.)
DECEM BER
Dec. 2. The Secretary of Labor convened the Thirteenth National Conference
on Labor Legislation. (Source: U. S. Dept, of Labor release
S47-614; for discussion, see p. 268, this issue.)
Dec. 4. The President, in appraising the success of the housing program of the
National Housing Expediter (see Chron. item for Feb. 7, 1946,
MLR, May 1946), stated: “It has now become clear that 1,000,000
dwelling units will have been put under construction and some
700,000 completed by the end of 1946.” (Source: White House
release of Dec. 4, 1946.)
On December 14, the President announced the relaxation of
restrictions on home building. Veterans’ preference was retained
for every dwelling unit constructed for sale or rent. However,
any person who wishes to build a home for his own use may do so,
subject to restrictions. House construction will be authorized
by Federal permits. The proposed dwelling must be designed for
year-round use; total floor area will be restricted; and for rental
housing projects, the maximum rents, excluding charges for
services, will not exceed $80 per unit as a project average.
Rentals will also be established for individual houses built for
rental purposes. (Source: White House release of Dec. 14, 1946;
for discussion, see MLR, Jan. 1947, p. 119.)
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1946
Dec. 5. The Board of Directors of the National Association of Manufacturers
passed and submitted to the membership for approval a state
ment of basic principles for good labor relations and sound
collective bargaining. Included are high wages based on high
productivity; working conditions th at safeguard the employee;
as great a degree of employment stabilization as possible; and
'
a spirit of management-labor cooperation. The Association ad
vocates provision of obligation by law for employers and employ
ees to bargain collectively in good faith (provided a majority of
the employees in an appropriate unit wish to be represented by
the union) and to adhere to the terms of collective-bargaining
agreements. Monopolistic practices were condemned; collective
bargaining between employers and foremen and compulsion upon
an employee either to join or refrain from joining a union, were
opposed; and certain limitations on strikes were advocated.
(Labor Relations Reporter, Vol. 19, p. 73.)
Dec. 5. The President, by Executive Order No. 9808, established the President’s
Committee on Civil Rights, consisting of 15 members. “The
Committee is authorized on behalf of the President to inquire
into and to determine whether and in what respect current lawenforcement measures and the authority and means possessed by
Federal, State, and local governments may be strengthened and
improved to safeguard the civil rights of the people.” After
making a written report of its studies to the President and making
recommendations for the protection of the civil rights of the
people of the United States, the Committee is to cease to exist,
unless otherwise determined by further Executive order. (Source:
Federal Register, Vol. 11, p. 14153.)
Dec. 11. Robert R. Nathan Associates, Inc., released a report on “A National
Wage Policy for 1947,” which was prepared at the request of the
Congress of Industrial Organizations. The conclusion was
reached by the authors of the report, that “on the average, in
all manufacturing, an increase of about 21 percent in weekly
earnings—without any increase in prices—would have been re
quired in October 1946, to bring real weekly earnings back to
the January 1945 level. By the end of 1946, with the present
trend of prices, an increase of about 23 percent will be required.
. . . In manufacturing industries alone, the end of 1946 level of
corporate profits after taxes will support a 21 'percent increase in
the earnings of production workers, without any further increase
in productivity, without anj^ further expansion in volume, and
without reducing the return after taxes on net worth to a rate
below that of 1936-39. In total corporate enterprise . . . it
may reasonably be conjectured that total corporate business can
support a 25 percent increase.” (Source: Robert R. Nathan
Associates, Inc., A National Wage Policy for 1947, Washington,
December 1946.)
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Federal Reserve Bank of St. Louis
LABOR CHRONOLOGY
355
1946
Dec. 11 (Con.)
On December 18, the director of the economic research depart
ment of the United States Chamber of Commerce stated that,
through use of selected statistics, an attem pt was being made to
convince the public that profits and prices have overtaken wages.
He denied this premise, and added that marginal producers
might be squeezed out by the cost of higher wages, and this
would help to bring about the very concentration of wealth into
fewer companies “which we all oppose.” (Source: Business
Action of Dec. 23, 1946, p. 4.)
On December 30, the chief economist of the National Associa
tion of Manufacturers stated th at a second round of general
wage increases would mean a proportionate rise in prices which
would check the decline in cost of living that had already started.
He predicted a substantial decline in cost of living “if wages are
held at their present level and if reliance is put on competition
and buyer resistance.” (Source: Daily press.)
Dec. 12. The President, by Executive Order No. 9809, created the Office of
Temporary Controls, to be headed by the Temporary Controls
Administrator. The order provided for immediate consolida
tion of the Offices of War Mobilization and Reconversion, of
Economic Stabilization and of Price Administration (see Chron,
item for July 25, 1946, MLR, Nov. 1946), and the Civilian Pro
duction Administration, into the Office of Temporary Controls,
Provision was made for the National Wage Stabilization Eoard
• (see Chron. item for Jan. 2, 1946, MLR, May 1946) to be termi
nated on February 24, 1947, and for the transfer of any pending
enforcement matters and any violation cases which may subse
quently be' disclosed, to the Bureau of Internal Revenue of the
Department of the Treasury. (Sources: White House release
of Dec. 12, 1946; Federal Register, Vol. 11, p. 14281, and NWSB
47-1067.)
Dec. 12. The Director of the United States Conciliation Service named the
members of a labor-management assembly for the Philadelphia
area (eastern Pa., southern N. J., Del., and most of Md.). The
assembly, established to aid in maintaining industrial peace, is
to work with the Philadelphia office of the Conciliation Service.
Of the 24 members, 10 represent management and 5 each the
AFL and CIO; and 4 are attorneys, 2 each representing man
agement and labor.
On December 23, the assembly held its first meeting in Phila
delphia, and pledged support to the program of the Conciliation
Service in minimizing work stoppages and in ending strikes in
vital industries. (Source: U. S. Dept, of Labor release of Dec.
23, 1946; and daily press.)
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1947
1946
Dec. 15. The Director of the United States Conciliation Service made public a
statement of policy adopted unanimously by the Service’s 8-man
Labor-Management Advisory Committee (see Chron. item for
Aug. 21, 1946, MLR, Nov. 1946) in which the faith of labor and
management in the American system of free collective bargain
ing is reaffirmed, and the development of 4 mediation techniques
is recommended. (Source: U. S. Dept, of Labor release S47-648;
for discussion, see MLR, Jan. 1947, p. 81.)
Dec. 23. The Supreme Court in the case of National Labor Relations Board v.
A . J . Tower Co. decided that the NLRB may refuse to accept an
employer’s post-election challenge to eligibility of a voter who
participated in a consent election to determine the bargaining
agent of employees, although such voter’s ballot may have been
essential to result of the election. (Source: U. S. Law Week, of
Dec. 24, 1946, 15 LW 4093.)
Dec. 31. The President proclaimed the cessation of hostilities of World War II
to be effective at 12 o’clock noon. By this action, Government
powers under some 20 statutes was terminated at once; such
terminations included the plant-seizure provisions of the War
Labor Disputes (Smith-Connally) Act (see Chron. item for June
25, 1943, MLR, Aug. 1943; for discussion, see MLR, Aug. 1943,
p. 305). Government powers under some 33 other statutes are
to be terminated at a later date, generally at the end of 6 months
from the date of the proclamation. (Source: White House
releases of Dec. 31, 1946.)
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Federal Reserve Bank of St. Louis
Recent Publications o f Labor Interest
F e b ru a ry 1 9 4 7
Child Labor and Youth Employment
Child labor— in the first year after the war. Annual report of National Child Labor
Committee, for year ending September 30, 1946. New York, 1946. 17 pp.
(Publication No. 397.)
Children in migratory agricultural families. By lone L. Clinton. Washington,
Federal Security Agency and U. S. Department of Labor, 1946. 13 pp.,
illus. Free.
Brings together four articles originally published in The Child. One deals with
child labor in agriculture.
Age certificates are the employer’s protection under the Fair Labor Standards Act.
Washington, U. S. Department of Labor, Division of Labor Standards, Child
Labor and Youth Employment Branch, 1946. Folder. (Child-labor series,
No. 28.) Free.
16-year minimum age for employment— a postwar goal for protection of the Nation’s
children. Washington, U. S. Department of Labor, Division of Labor
Standards, Child Labor and Youth Employment Branch, 1946. Folder. 5
cents, Superintendent of Documents, Washington.
Educational and employment opportunities for youth. Report and recommenda
tions of the Interagency Committee on Youth Employment and Education.
Washington, U. S. Department of Labor, Division of Labor Standards, Child
Labor and Youth Employment Branch, 1946. 15 pp.; processed. Free.
Occupational hazards to young workers, Report No. 7: The operation of hoisting
apparatus. Washington, U. S. Department of Labor, Division of Labor
Standards, Child Labor and Youth Employment Branch, 1946. 37 pp. (Childlabor series, No. 11.) 10 cents, Superintendent of Documents, Washington.
Cooperative Movement
It happened in Taos. By J. T. Reid. Albuquerque, University of New Mexico
Press, 1946. 118 pp., illus. $2.50.
Account of a project operated among, and largely by, the Indians and Spanish
speaking people of Taos County, New Mexico, to raise working and living stand
ards through cooperative planning and action. One of the phases of this project
was the health work carried on through an organization formed for the purpose,
the Taos County Cooperative Health Association, characterized in the report as
“by far the most elaborate and important accomplishment of the project.”
So shines a good deed: Cooperatives in Edenton inspired by success of Tyrrell.
Charlottesville, University of Virginia, 1946. 7 pp. (Extension Division
bull., New Dominion series, No. 81.)
Describes cooperative activities among Negroes in Edenton and Tyrrell County,
North Carolina.
E ditor' s N ote.—Correspondence regarding the publications to which reference is m ade in this list
should he addressed to the respective publishing agencies m entioned. W here data on prices were readily
available, th ey have been shown w ith th e title entries.
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358
M O N T H L Y
L A B O R R E V IE W — F E B R U A R Y
194 7
Annual report of the [Massachusetts] Commissioner of Banks, for the year ending
December 81, 1945, Part IV , relating to credit unions. Boston, Department
of Banking and Insurance, 1946. 52 pp. (Public document No. 8.)
Organizing and incorporating a cooperative. By Lyman S. Hulbert. [Washington,
U. S. Department of Agriculture], 1946. 13 pp.; mimeographed.
Danish consumers’ cooperative societies during five years of occupation. Copen
hagen, Danish Cooperative Wholesale Society, 1946. 10 pp.; processed.
Details the conditions under which cooperatives had to work during the Ger
man occupation of Denmark and how they were met, and gives statistics of opera
tion, mostly for the 6-year period 1940-45.
Economic and Social Problems
Industrial progress and economic research. Philadelphia, University of Penn
sylvania, Wharton School of Finance and Commerce, Industrial Research
Department, 1946. 40 pp., charts.
The first part of the report outlines a series of studies of conditions of economic
progress at the industrial level, to be made by the Industrial Research Depart
ment. The second part reviews its 25 years of research accomplishment and
lists the publications (the majority on labor subjects) in which most of the results
have been published.
Labor policies of the National Defense Advisory Commission and the Office of Pro
duction Management, May 1940 to April 1942. By Richard J. Purcell.
Washington, U. S. Civilian Production Administration, Bureau of Demobili
zation, 1946. 247 pp.; processed. (Historical reports on war administra
tion: War Production Board; Special study No. 23.)
Labor problems. By W. V. Gwen. New York, Ronald Press Co., 1946. 570
pp., bibliography. $4.50.
Using the labor-market approach, the author surveys the principles and prob
lems of labor economics. The book, largely analytical rather than descriptive,
is intended as a college text.
Nationalization of key industries in eastern Europe. By Samuel L. Sharp. Wash
ington, Foundation for Foreign Affairs, 1946. 81 pp. (Pamphlet No. 1.)
25 cents.
Discussion of the reasons for and the extent and results of nationalization
measures in eastern Europe, primarily in Czechoslovakia and Poland.
The Japanese war economy, 1940-45- By Jerome B. Cohen. {In Far Eastern
Survey, Institute of Pacific Relations, American Council, New York, Decem
ber 4, 1946, pp. 361-370. 25 cents.)
Reviews economic developments in Japan during the prewar decade and in
wartime, with some attention to the structure of the Japanese labor force.
Education and Training
Training for industrial employment. London, Institute of Labor Management,
[1946?]. 65 pp. 2s. 6d.
Training for the catering industry. London, Ministry of Labor and National
Service, 1946. 12 pp. 3d. net, H. M. Stationery Office, London.
Un aspect essentiel de l’éducation ouvrière: La formation des cadres syndicaux. By
Jean Bruhat. {In Revue Française du Travail, Ministère du Travail et de la
Sécurité Sociale, Paris, November 1946, pp. 645-657.)
Survey of workers’ training carried on by the French General Confederation of
Labor (C. G. T.), including an outline of subjects covered in the courses for
training labor members of works committees in industrial and other enterprises,
and information on the policy for short-term training courses for technicians and
foremen given in a number of local federations and unions.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
R E C E N T P U B L IC A T IO N S O F L A B O R IN T E R E S T
359
Employment, Unemployment, and Employment Services
Employment outlook in foundry occupations. Washington, U. S. Bureau of Labor
Statistics, 1946. 55 pp., charts, illus. (Bull. No. 880; reprinted from
Monthly Labor Review, December 1945 and April 1946, with additional data.)
15 cents, Superintendent of Documents, Washington.
Fordndringarna i sysselsattningen dren 1940-46. By Per Holm. (In Sociala
Meddelanden, Nr. 11, Socialstyrelsen, Stockholm, 1946, pp. 831-844.)
Shows changes in employment in Sweden, 1940-46.
I was one of the unemployed. By Max Cohen. London, Victor Gollancz, Ltd.,
1945. ‘244 pp. 7s. 6d.
Introduced with a foreword by Sir William Beveridge, this personal account of
the vicissitudes of a young worker thrown on the labor market in 1932 vividly por
trays the varied evils of unemployment, including effect on family relations, loss of
self-respect, effect on habits of work, etc. It also gives an individual’s experience
with the operation of the system of unemployment compensation then in effect in
Great Britain.
Labor exchanges abroad. (In Employment Service Review, U. S. Department of
Labor, Employment Service, Washington, January 1947, pp. 3-15. 10 cents,
Superintendent of Documents, Washington.)
Brief descriptions of the employment services, and their history, in five coun
tries—Canada, Chile, Germany, Great Britain, and Japan.
Housing
National housing emergency, 1946-41• By L. B. Wheildon. Washington,
(1205 19th Street NW.), Editorial Research Reports, 1946. 20 pp. (Vol. II,
1946, No. 24.) $1.
The Truman housing program is discussed against the background of the
W yatt housing program and its achievements and failures.
The Detroit plan: A program for blight elimination. Detroit, Detroit Housing
Commission, 1946. 18 pp., plans, illus.
Simplified outline of Detroit’s current experiment in clearing slums.
Elapsed time and cost in residential construction. Washington, U. S. Bureau of
Labor Statistics, 1946. 9 pp. (Serial No. R. 1849; reprinted from Monthly
Labor Review, September 1946.) Free.
Conversion of existing houses [in Great Britain]. Report of the subcommittee of
the Central Housing Advisory Committee, [Ministry of Health]. London,
II. M. Stationery Office, 1945. 52 pp., plans. Is. net.
Immigration
The Immigration laws of the United States— an outline. By Albert E. Reitzel.
(In Virginia Law Review, Charlottesville, November 1946, pp. 1099-1162.
$
1.)
Immigration of refugees. By Kendrick Lee. Washington (1205 19th Street
NW.), Editorial Research Reports, 1946. 14 pp. (Vol. II, 1946, No. 22.)
$ 1.
Review of proposals for liberalizing the immigration policy of the United States
or further restricting immigration, and of the respective attitudes of labor unions
and other organized groups.
Report of the [Australian] Commonwealth Immigration Advisory Committee. Can
berra, 1946. 50 pp.
This report, by a Government-labor-employer committee, describes the trends
toward migration to Australia from Great Britain and northern Europe, and
submits recommendations of Australian labor and employer groups concerning
immigration into their country.
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M O N T H L Y
L A B O R R E V IE W — F E B R U A R Y
1947
Industrial Accidents and Accident Prevention
Injuries and accident causes in the brewing industry, ID44- Washington, U. S.
Bureau of Labor Statistics, 1946. 70 pp., charts. (Bull. No. 884.) 15
cents, Superintendent of Documents, Washington.
Studies on explosives and explosions, fiscal year 1945. By Wilbert J. Huff. Wash
ington, U. S. Department of the Interior, Bureau of Mines, 1946. 57 pp.,
bibliography, charts; processed. (Report of investigations, No. 4031.)
Free.
Annual summary of injuries in the petroleum industry, for 1945. New York,
American Petroleum Institute, Department of Accident Prevention, 1946.
20 pp., chart.
Petroleum safety orders— refining, transportation, and handling— effective July 13,
1946. San Francisco and Los Angeles, California Department of Industrial
Relations, Division of Industrial Safety, 1946. 49 pp.
Summary and analysis of accidents on steam railways in the United States subject
to the Interstate Commerce Act, calendar year 1945. Washington, U. S. Inter
state Commerce Commission, Bureau of Transport Economics and Statistics,
1946. 118 pp. (Accident bull. No. 114.) 40 cents, Superintendent of
Documents, Washington.
Surface construction without accidents. Boston, American Mutual Liability In
surance Co., 1946. 81 pp., bibliography, forms, illus.
Accident-prevention guide prepared for the use of contractors on various types
of street and road jobs or airport runway construction.
Industrial Relations
Arbitration of grievances. By William E. Simkin and Van Dusen Kennedy.
Washington, U. S. Department of Labor, Division of Labor Standards, 1946.
39 pp. (Bull. No. 82.) 15 cents, Superintendent of Documents, Washington.
Labor relations and the public. Edited by Herman Feldman. {In The Annals,
Vol. 248, American Academy of Political and Social Science, Philadelphia,
November 1946, pp. 1-198. $2 (paper) or $2.50 (cloth) to nonmembers.)
Selected reading list on industrial relations for supervisors. Pasadena, California
Institute of Technology, Industrial Relations Section, October 1946. 8 pp.
Single copies free.
Union-management cooperation in production. Princeton, N. J., Princeton Univer
sity, Industrial Relations Section, November 1946. 4 pp. (Selected refer
ences, No. 12.)
When employees organize: What employers shoidd know and how they can utilize
National Labor Relations Board procedures. Deep River, Conn., National
Foremen’s Institute, Inc., 1946. 33 pp.
Review of labor-management disputes, 1946. Washington, U. S. Bureau of Labor
Statistics, 1947. 11 pp.; mimeographed. Free.
Labor participation in industrial management in European countries. Washington,
U. S. Bureau of Labor Statistics, 1946. 14 pp. (Serial No. R. 1866; re
printed from Monthly Labor Review, November 1946.) Free.
Conflits du travail en France pendant le 2e trimestre de Vannée 1946. {In Revue
Française du Travail, Ministère du Travail et de la Sécurité Sociale, Paris,
October 1946, pp. 624-629.)
Second of a new series of reports compiled from information which labor in
spectors are required to furnish to the Ministry of Labor and Social Security.
Shows the number of labor conflicts, number of establishments affected, total
workers employed in the establishments and number participating in the conflicts,
and the number of work-days lost, with considerable detail on duration, origin,
and results of the strikes.
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By Beatrice G. Reubens. {In Far Eastern
Survey, Institute of Pacific Relations, American Council, New York, Novem
ber 6, 1946, pp. 344-347. 25 cents.)
Discusses a new technique in labor disputes, recently developed by the Japanese
labor unions, under which the workers seize and operate the establishments until
the disputes are settled. »
“ Production control” in Japan.
Industry Reports
{In Revue du Travail,
Ministère du Travail et de la Prévoyance Sociale de Belgique, Brussels,
July-August 1946, pp. 729-738, charts.)
Study of manpower, production, and other problems, and of achievements, in
the “ battle of coal” in Belgium.
Board of Trade working party reports: Furniture. London, H. M. Stationery
Office, 1946. 209 pp., charts. 3s. 6d. net.
The report gives some attention to labor matters, such as employment, produc
tivity of labor, and welfare and labor standards, in the furniture industry.
M inistry of Fuel and Power, statistical digest, 1945. London, Ministry of Fuel and
Power, 1946. 114 pp. (Cmd. 6920.) 2s. net, H. M. Stationery Office,
London.
This issue of the digest contains much material not included in earlier issues,
particularly on output and labor force in coal mining. The section on coal
mining includes data on size of mines, output, number of workers employed, recruit
ment and wastage of manpower, age and occupational distribution of workers,
attendance and absenteeism, persons killed and injured, overtime, earnings per
man-shift and per week from 1938 through 1945, colliery canteens, and pithead
baths. Other sections of the report deal, in less detail, with gas and electricity,
coke ovens, and petroleum products.
Le problème de la rnain-d’œuvre dans les charbonnages belges.
Labor Legislation
Wash
ington, U. S. Department of Labor, Division of Labor Standards, 1946.
78 pp. (Bull. No. 79.)
Labor and the law. By Charles O. Gregory. New York, W. W. Norton & Co.,
Inc., 1946. 467 pp. $5.
Deals with the development of labor-relations law in the United States and the
problems involved, with particular reference to the activities of trade unions,
collective bargaining under the National Labor Relations Act, and decisions of
the U. S. Supreme Court. Each chapter has detailed citations of cases on the
topics discussed. The final chapter points out problems of the immediate future.
Federal labor laws and agencies— a guide for shop stewards and supervisors.
The law governing labor disputes and collective bargaining [in the United States]— 1946
cumulative supplement. By Ludwig Teller. New York, Baker, Voorhis &
Co., Inc., 1946.
In 3 parts, 132, 323, 202 pp.
$15.
Résumé of the proceedings of the thirteenth National Conference on Labor Legislation,
[ Washington ], December 2-4, 1946. Washington, U. S. Department of Labor,
Division of Labor Standards, 1946. 42 pp. (Bull. No. 85.) 10 cents,
Superintendent of Documents, Washington.
Économie et legislation industrielles. By Robert Mossé. Aubier and Paris,
Éditions Montaigne, [1940]. 402 pp., bibliographical footnotes.
A well-organized study of labor legislation in France in its relation to general
economic life, sufficiently comprehensive to form a reference handbook on con
temporary social law. Covers relations between employers and employees, in
cluding wages, individual labor contracts, etc.; relations between labor groups;
employment and unemployment; Government regulation of labor, including hours
of work; and certain aspects of social insurance. Contains sections on collective
agreements, industrial disputes, and conciliation and arbitration which are of
significance today.
A guide to the provisions of the Factories Act, [Great Britain, 1937] regarding hours
and holidays of women and young persons. London, Ministry of Labor and
National Service, 1946.
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12 pp.
2d. net, H. M. Stationery Office, London.
362
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Labor Organizations and Activities
Forty-fourth annual directory of labor organizations in Massachusetts, 1946 (with
statistics of membership, 1941-45 ). B oston , Department of Labor and Indus
tries, 1946.
116 pp.
(Labor bull. No. 192; Public doc. No. 15.)
By Leo Wolman. (In Yale Review, Vol.
XXXVI, No. 2, New Haven, Conn., winter 1947, pp. 231-241. $1.)
Critical discussion of trade-union policies and of the causes of present-day labor
troubles th at stem, in the author’s opinion, largely from the National Labor Rela
tions Act. Amendment of this Act and of certain other laws are steps which he
believes would lead to improvement in labor relations.
Unionization of professional engineers and chemists. By Herbert R. Northrup.
New York, Industrial Relations Counselors, Inc., 1946. 50 pp. (Industrial
relations monograph No. 12.) $1.50.
In addition to examining the union movement among professional engineers
and chemists, the author attem pts to clarify issues involved in collective bargain
ing with these groups.
Problemas de la unidad obrera en America. By Juan Arévalo and others. Habana,
Instituto de Estudios y de Acción Social, 1946. 62 pp. 20 centavos.
Discussion of the proposed inter-American labor organization to be affiliated
with the American Federation of Labor.
Vida sindical y vida económica en la República Dominicana. By Juan Arévalo
and Felipe Zapata. Habana, Instituto de Estudios y de Acción Social, 1946.
50 pp.
The first part of this pamphlet is a report on the labor movement in the
Dominican Republic as of late 1945.
The general council’s report to the 78th annual [meeting of the British Trades Union ]
Congress, Brighton, October 21-25, 1946. London, Trades Union Congress,
1946. 254 pp.
Im portant sections of the report deal with trade unions and the postwar period,
education, wages councils, and international developments. The part played
by the Trades Union Congress in shaping the new legislation on social insurance
and workmen’s compensation is told in a section on safety and welfare. The
varied and inclusive program of workers’ education carried on by the trade unions
is described, and a memorandum for the Central Advisory Council for Education
(England), submitted by the Trades Union Council, and dealing with trade-union
attitudes towards general education, is reproduced in full. Measures taken by
the unions on problems arising out of the transition from war to peace, both
in Britain and abroad, are discussed.
The labor movement in Italy. By Humbert L. Gualtieri. New York, S. F. Vanni,
1946. 326 pp., bibliography. $5.
Detailed and documented history of the origin and growth of labor organization
in Italy from the beginning, in the middle of the nineteenth century, to 1904,
covering, among other phases, the work of the early leaders and the evolution of
workmen’s mutual aid societies, chambers of labor, and farmers’ leagues.
Labor unions and labor policy.
Rapport van de commissie tot onderzoek van het vraagstuk van de bedrijfstaksgewijze
organisatie der werknemersvakbeweging. Utrecht, Raad van Vakcentralen,
1946. 39 pp.
Report of a committee appointed to study the regrouping of Netherlands trade
unions on an industrial basis, which has received "the concurrence of the three
trade-union federations in th at country.
Report of 16th annual conference of South African Trades and Labor Council,
Durban A pril 22-26, 1946. Johannesburg, South African Trades and
Labor Council, 1946. 52 pp.
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Medical Care and Health Insurance
By Nathan Sinai, Odin W. Anderson,
Melvin L. Dollar. New York, Commonwealth Fund, 1946. 115 pp.,
bibliography. $1.50.
The authors trace the movement for health insurance in the United States since
1910, and the attitudes of government, professional, and lay groups. Character
istic features and problems of voluntary plans, as exemplified by the Blue Cross
hospital plans and plans sponsored by medical societies, are analyzed and the
question raised as to whether such programs can face and overcome their difficul
ties rapidly enough to meet the demand for a national health-insurance program.
Cash sickness benefits. Fourth report of the New Jersey State Commission on
Postwar Economic Welfare. Trenton, 1946. 68 pp., charts.
The commission was instructed to make a study of an unemployment-sickness
compensation program for the State and to consider a proposed act for a publicly
“operated” system as a starting point. In this report it recommends a publicly
“supervised” plan instead, and submits draft bills and other data. A statutory
minimum scale of benefits would be established within the framework of private
enterprise.
Medical care for the people of New York State. Report of New York State Legisla
tive Commission on Medical Care. [Albany], 1946. 504 pp., maps; processed.
Contains majority and minority reports and recommendations of commission
members; reports on studies of medical care and medical insurance, conducted by
the director of the survey—a comprehensive body of factual material in both
public and private fields; and the results of a survey of public opinion on medical
insurance, by Surveys, Inc.
A reasonably comprehensive system of compulsory health insurance, to be
supported by contributions of from 3 to 4 percent or individual oi family income,
was regarded by the commission as feasible.
Study shows prepay plan coverage. (In Medical Economics, Rutherford, N. J.,
December 1946, pp. 69-73, charts. 25 cents.)
Enrollment in 51 prepayment medical-care programs approved by medical
societies in the United States was over 4 million, and participating physicians
numbered 75,000, as of September 1, 1946, according to this study by Medical
Economics. Individual plans are listed by location, year of organization, enroll
ment, and doctor participation.
Health insurance in the United States.
Occupations and Occupational Adjustment
Changing your work?
By J. Gustav White. New York, Association Press, 1946.
210 pp., bibliography. $2.50.
Against a background of extended experience as a vocational counselor, the
author discusses the various factors that should be considered by those desirous of
changing jobs, and makes suggestions as to methods of procedure. Many illustra
tive case histories are given throughout the book.
Job education: Finding and getting a job through planning. By Warren E. Benson.
Boston, Bellman Publishing Co., Inc., 1946. 32 pp., bibliography. (Voca
tional and professional monographs, No. 75.) $1.
Concluding number in this series of monographs.
Ohio State and occupations. By Occupational Opportunities Service, Ohio State
University. Columbus, Ohio State University Press, 1945. 198 pp. $1.50.
The duties of each of a long list of occupations in a wide range of fields are
described, to assist students in planning their future training and careers.
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M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Office Workers
New York, American Management
(Office management series, No. 116.)
Incentives and, work standards in the office. New York, American Management
Association, 1946. 30 pp. (Office management series, No. 115.)
One of the three articles in the pamphlet is on “The impact of wage rates on the
labor market,” by A. Ford Hinrichs, formerly Acting Commissioner of the U. S
Bureau of Labor Statistics.
Know your white-collar worker. New York, Labor Relations Institute 1946
Administering the office union contract.
Association, 1946. 30 pp.
5 ! pp.
Lists grievances and reasons for discontent among white-collar workers and
makes suggestions looking toward good employee relations and efficient office
procedure.
Vacations for office workers. New York, Metropolitan Life Insurance Co., PolicyHolders Service Bureau, Group Insurance Division, [1947?]. 44 pp.
Based on a survey of vacation policies in 1946 for office employees of 102
companies in a wide range of fields.
Wages of office workers in metalworking industries, January 194.5. Washington,
" U. S. Bureau of Labor Statistics, 1946. 7 pp. (Bull. No. 886; reprinted from
Monthly Labor Review, July 1946.) 5 cents, Superintendent of Documents,
Washington.
1
Production and Productivity of Labor
The facts of productivity. By Ewan Clague. Washington, U. S. Bureau of Labor
Statistics, 1946. 11 pp.; mimeographed. Free.
Address by U. S. Commissioner of Labor Statistics at annual meeting of Society
for the Advancement of Management, New York, December 6, 1946.
Productivity and progress. New York, National Industrial Conference Board
Inc., 1946. 35 pp., charts.
Productivity is discussed in relation to its effects on national well-being, partic
ularly on the wages, working hours, and living standards of workers. The
study emphasizes the view th at rising productivity has been a product of a
“free” economy.
Social Security
Proposals for health, old-age, and unemvloyment insurance— a comparison of the
1948 and 1945 \\ agner-Murray bills. By Earl E. Muntz. New York and
Washington, American Enterprise Association, Inc., 1946. 87 pp. (National
economic problems, No. 418.) 50 cents.
Contains also a comparative summary of the two bills and the Social Security
Act.
J
Social insurance financing in relation to consumer income and expenditures. By
S. J. Mushkin, Anne Scitovszky, Leila N. Small. Washington, Federal
Security Agency, Social Security Board, Bureau of Research and Statistics,
1946. 105 pp., charts; processed. (Bureau memorandum No. 63.)
Analysis of the financial effects on the national economy of insurance programs
under the present Social Security Act (prior to amendment in 1946) and under a
more comprehensive plan (proposed in the Wagner-Murray-Dingell bills of 1943
and 1945). Under various assumptions of employment, national income, and
wages, estimates are made for an early year in the 1950’s and for a later period.
Contributions and benefits are distributed by income class, etc.
A guide to the National Insurance Act, [Great Britain ], 1946. By Alban Gordon
London, Labor Party, 1946. 36 pp. 6d.
Simple explanation of the principal provisions of the new social-security system
in Great Britain, showing coverage, types of benefits, contributions, and methods
of financing and administering the Act. A historical section reviews the develop
ment of such legislation since the Elizabethan Poor Law.
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By Oscar Barahona Streber and J.
Walter Dittel. Ciudad de Guatemala, 1946. 215 pp., charts.
Detailed study of social-security development in Guatemala.
Bases de la seguridad social en Guatemala.
Social security monetary benefits and war pensions in New Zealand (1946 edition).
Wellington, Social Security Department, 1946.
51 pp.
México, D. F.,
Universidad Nacional, Instituto de Derecho Comparado, 1946. 203 pp.
International action toward social security for seamen. By Ida C. Merriam. (In
Social Security Bulletin, Federal Security Agency, Social Security Administra
tion, Washington, August 1946, pp. 17-28. 15 cents, Superintendent of
Documents, Washington.)
Discusses minimum standards for social security for seamen adopted (m con
ventions and recommendations) by the maritime session of the International
Labor Conference at Seattle in June 1946. Existing provisions for seamen on
United States ships are also considered.
Codigo de seguridad social, [México], comentado y concordado.
images and Hours of Labor
By Ewan
Clague. Washington, U. S. Bureau of Labor Statistics, 1947. 11 pp.;
mimeographed. Free.
.
Address by U. S. Commissioner of Labor Statistics at joint meeting of Chicago
Chamber of Commerce and Chicago chapter of American Statistical Association,
January 9, 1947.
The significance of current trends in prices, wages, and productivity.
The Nathan report'. A n appraisal of Robert R. Nathan s A national wage policy
for 1947.” New York, National Association of Manufacturers, Research
Department, December 1946. 32 pp.; mimeographed
.
A brief note on the Nathan report was carried in the Monthly Labor Review
for January 1947 in the section on “Recent publications of labor interest” (under
wages and hours of labor).
A second round of wage increases— prelude to price increases: The fallacies of the
Nathan-CIO ‘assertions. By Emerson P. Schmidt. (In Business Action,
Chamber of Commerce of the United States, Washington, December 23, 1946,
pp. 4-6.)
Reconversion and the Fair Labor Standards Act. Annual report of Wage and Hour
and Public Contracts Divisions, U. S. Department of Labor, fiscal year 1946.
Washington, 1947. 9 8 pp., charts; mimeographed
_
, .
Review of the problems and work of the Divisions, during and since the war,
in administering the Fair Labor Standards and Public Contracts Acts, with recom
mendations by the Administrator. One of his specific recommendations, of par
ticular interest at this time, is th at the Fair Labor Standards Act be amended to
include a 3-year statute of limitations with respect to employee suits for back
wages and damages.
Average hourly earnings in selected industries and occupations, by region, 1945-46.
Washington, U. S. Bureau of Labor Statistics, 1946. 80 pp.; mimeographed.
Free.
Trends in urban wage rates, A pril 1946. Washington, U. S. Bureau of Labor
Statistics, 1946. 12 pp., charts. (Bull. No. 891; reprinted from Monthly
Labor Review, November 1946.) 5 cents, Superintendent of Documents,
Washington.
Union wages and hours in the baking industry, Ju ly 1, 1945. Washington, U. S.
Department of Labor, Bureau of Labor Statistics, 1946. 64 pp. chart.
(Bull No 871; reprinted from Monthly Labor Review, March 1946, with
additional data.) 15 cents, Superintendent of Documents, Washington.
Emvlovment and earnings in the Philadelphia knitted-outerwear industry, 1944 and,
1945 Washington, U. S. Bureau of Labor Statistics, 1946. 6 pp. (Bull.
No. 887; reprinted from Monthly Labor Review, August 1946.)
Superintendent of Documents, Washington.
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366
M O N T H L Y LABOR REVIEW— FEBRUARY 1 9 4 7
Wages and employment in the public utility industries. By Edward Neuner, Jr.
(In Journal of Land and Public Utility Economics, Madison, Wis., November
1946, pp. 363-380, charts. $1.50.)
Data on hours, earnings, and employment in a group of industries subject to
regulatory commissions as to rates charged consumers. The author emphasizes
the effects of the relative inflexibility of wages.
Salaries, as of August 1, 1946, in St. Louis social and health agencies, according to
standard job descriptions. St. Louis, Social Planning Council of St. Louis and
St. Louis County, Research Bureau, 1946. 189 pp., charts; processed. $1.
Data on salary changes in major fields of work since January 1, 1941, are
included.
Salaries and working conditions of firemen in various Virginia fire departments,
[1946]. Richmond, League of Virginia Municipalities, 1946. 13 pp.; mimeo
graphed.
(Report No. 296.) 50 cents (free to Virginia municipal officials).
Ottawa, Department of Labor,
1946. 105 pp. (Report No. 27; issued as a supplement to Labor Gazette!
October 1946.)
Index numbers show the trend of wage rates for certain major industry groups
from 1901 to 1944. Money wage rates are given for occupations in manufactur
ing, mining, logging, construction, transportation, and telephone communication,
1943 and 1944, and in retail and wholesale trade and certain services, 1944, to
gether with data on hours of labor in 1944. An appendix gives wages in agri
culture, 1943-45.
Wage rates and hours of labor in Canada, 1944•
General Reports
New York, Dryden Press, 1946. 480 pp. $12.
The first issue of a new labor who’s who, containing authorized biographies of
the men and women who lead labor in the United States and Canada and of those
who deal with labor, together with a glossary of labor terminology, a chronology
of labor legislation, a directory of the labor press, a list of educational directors,
a list of the international labor unions, and the constitutions of the American
Federation of Labor and the Congress of Industrial Organizations.
Basic statistics on Puerto Rico. Compiled and edited by S. L. Descartes. Wash
ington, D. C., Office of Puerto Rico, 1946. 103 pp.
Includes statistics, for various dates, of employment, wages and hours, family
incomes and expenditures, prices, and food supply and consumption.
Who’s who in labor.
Mensaje del Excelentísimo Señor Presidente de la Nación, Gral. Edelmiro J . Farrell,
y memoria del segundo año de labor, segundo aniversario del gobierno de la revo
lución, 1943-4 de ju n io -1945, República Argentina. [Buenos Aires, 1945?]
477 pp.
Contains a summary of the Farrell regime’s achievements in the fields of labor
and social welfare.
National economy of Argentina. By John F. Hennessey, Jr. Washington, Pan
American Union, 1946. 98 pp., bibliography. (Commercial Pan America,
July-August 1946.)
Index numbers of employment and wages paid in leading industries, 1941-45,
of cost of living, 1938-45, and of wholesale prices in Buenos Aires, 1938-45, are
among the data presented.
Labor report, [Australia ], 1944■ Canberra, Bureau of Census and Statistics, 1946.
161 pp. (No. 34.) 3s.6d. net, Commonwealth Government Printer, Can
berra.
Covers employment and unemployment, wages and hours, unemployment and
sickness benefits, retail and wholesale prices, industrial disputes, industrial acci
dents, and labor organizations. Some of the index numbers of retail prices and
data on employment and unemployment are brought down to 1945.
Anuario general de estadística, Colo?nbia, 1944■ Bogota, Contraloria General de la
República, Dirección Nacional de Estadística, 1946. 642 pp.
This general statistical yearbook includes data on cost of living in Bogotá and
Medellin, cooperatives, industrial production, immigration, and emigration, and
indexes of prices and wages.
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By Jean de la Roche
and Jean Gottman. Montreal, Éditions de l’Arbre, 1945. 642 pp., illus.
Comprehensive survey of the overseas areas of the French nation, covering
geographic and human characteristics, economic life, administrative organization,
and political and social problems. Includes much data not available elsewhere
within two covers.
Medical science and physical education in industry. Fourth part of interim report
by Research Board for the Correlation of Medical Science and Physical
Education, [London?]. London, Ling Physical Education Association, 1946.
88 pp. 2s.
Deals with various questions pertaining to industrial workers in Great Britain,
such as nutrition (canteens, etc.), vocational orientation, recreation, health services,
and rehabilitation of substandard and disabled workers.
Memoria de labores, septiembre de 1945— agosto de 1945. México, D. F. Secretaría
del Trabajo y Previsión Social, 1946. 347 pp.
Yearbook of the Mexican Department of Labor detailing accomplishments of
its various branches and giving labor statistics.
Report of New Zealand Department of Labor for year ended March SI, 1946. Well
ington, 1946. 45 pp. Is.
Information given includes minimum-wage rates for various occupations, opera
tions under different labor laws, new legislation, and names of registered employer
and worker organizations.
La Fédération Française— contacts et civilisations d’outre-mer.
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